8-K
COMMUNITY TRUST BANCORP INC /KY/ (CTBI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
September 30, 2025
Commission file number 001-31220
Community Trust Bancorp, Inc.
(Exact name of registrant as specified in its charter)
| Kentucky | 61-0979818 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
| P.O. Box 2947<br><br> <br>346 North Mayo Trail<br><br> <br>Pikeville,<br> Kentucky | 41502 |
| (Address of principal executive offices) | (Zip code) |
| (606)<br> 432-1414<br><br> <br>(Registrant’s telephone number) | |
| Securities registered pursuant to Section 12(b) of the Act: | |
| Common Stock<br><br> <br>(Title of class) | |
| CTBI | The NASDAQ Global Select Market |
| --- | --- |
| (Trading symbol) | (Name of exchange on which registered) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Securities Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐
Item 2.02 – Results of Operations and Financial Condition
On October 15, 2025, Community Trust Bancorp, Inc. issued a press release announcing its financial results for the quarter and nine months ended September 30, 2025. A copy of this press release is being furnished to the Securities and Exchange Commission pursuant to Item 2.02 – Results of Operations and Financial Condition and Item 7.01 – Regulation FD Disclosure of Form 8-K and is attached hereto as Exhibit 99.1. The information in this Form 8-K and in Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits
The following exhibit is filed with this report:
| 99.1 | Press Release dated October 15, 2025 |
|---|
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| COMMUNITY TRUST BANCORP, INC. | ||
|---|---|---|
| Date: | October 15, 2025 | By: |
| /s/ Mark A. Gooch | ||
| Mark A. Gooch | ||
| Chairman, President, and Chief Executive Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
October 15, 2025
FOR ADDITIONAL INFORMATION, PLEASE CONTACT MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229
Pikeville, Kentucky:
COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE 3^RD^ QUARTER 2025
Earnings Summary
| (in thousands except per share data) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | YTD<br><br> <br>2025 | YTD<br><br> <br>2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income | $ | 23,911 | $ | 24,899 | $ | 22,142 | $ | 70,782 | $ | 60,320 | |||||
| Earnings per share | $ | 1.33 | $ | 1.38 | $ | 1.23 | $ | 3.93 | $ | 3.36 | |||||
| Earnings per share - diluted | $ | 1.32 | $ | 1.38 | $ | 1.23 | $ | 3.92 | $ | 3.36 | |||||
| Return on average assets | 1.46 | % | 1.58 | % | 1.50 | % | 1.50 | % | 1.38 | % | |||||
| Return on average equity | 11.53 | % | 12.51 | % | 11.77 | % | 11.84 | % | 11.15 | % | |||||
| Efficiency ratio | 50.86 | % | 50.70 | % | 51.75 | % | 51.12 | % | 52.91 | % | |||||
| Tangible common equity | 11.65 | % | 11.72 | % | 11.79 | % | |||||||||
| Dividends declared per share | $ | 0.53 | $ | 0.47 | $ | 0.47 | $ | 1.47 | $ | 1.39 | |||||
| Book value per share | $ | 45.91 | $ | 44.57 | $ | 42.14 | |||||||||
| Weighted average shares | 18,019 | 18,012 | 17,962 | 18,009 | 17,942 | ||||||||||
| Weighted average shares - diluted | 18,053 | 18,036 | 17,991 | 18,037 | 17,965 |
Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2025 of $23.9 million, or $1.33 per basic share, compared to $24.9 million, or $1.38 per basic share, earned during the second quarter 2025 and $22.1 million, or $1.23 per basic share, earned during the third quarter 2024. Total revenue for the quarter was $1.3 million above prior quarter and $8.7 million above prior year same quarter. Net interest revenue for the quarter increased $1.5 million compared to prior quarter and $8.4 million compared to prior year same quarter, and noninterest income decreased $0.2 million compared to prior quarter but increased $0.4 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $1.8 million from prior quarter and $1.1 million from prior year same quarter. Noninterest expense increased $1.1 million compared to prior quarter and $4.2 million compared to prior year same quarter. Earnings for the nine months ended September 30, 2025 were $10.5 million, or $0.57 per basic share, above prior year.
3^rd^ Quarter 2025 Highlights
| ❖ | Net interest income for the quarter of $55.6 million was $1.5 million, or 2.8%, above prior quarter and $8.4 million, or 17.7%,<br> above prior year same quarter, as our net interest margin decreased 4 basis points from prior quarter but increased 21 basis points from prior year same quarter. |
|---|---|
| ❖ | Provision for credit losses at $3.9 million for the quarter increased $1.8 million from prior quarter and $1.1 million from prior<br> year same quarter. |
| --- | --- |
| ❖ | Noninterest income for the quarter ended September 30, 2025 of $15.9 million was $0.2 million, or 1.4%, below prior quarter but<br> $0.4 million, or 2.5%, above prior year same quarter. |
| --- | --- |
| ❖ | Noninterest expense for the quarter<br> ended September 30, 2025 of $36.7 million was $1.1 million, or 3.0%, above prior quarter and $4.2 million, or 13.0%, above prior year same quarter. |
| --- | --- |
| ❖ | Our loan portfolio at $4.8 billion increased $92.1 million, an annualized 7.8%, from June 30, 2025 and $443.4 million, or 10.2%,<br> from September 30, 2024. |
| --- | --- |
| ❖ | We had net loan charge-offs of $2.7 million, an annualized 0.23% of average loans, for the third quarter 2025 compared to $1.4<br> million, an annualized 0.12% of average loans, for the second quarter 2025 and $1.5 million, an annualized 0.14% of average loans, for the third quarter 2024. |
| --- | --- |
| ❖ | Our total nonperforming loans at $24.7 million at September 30, 2025 increased $0.3 million from June 30, 2025 but decreased $0.4<br> million from September 30, 2024. Nonperforming assets at $29.5 million increased $0.3 million from June 30, 2025 and $3.1 million from September 30, 2024. |
| --- | --- |
| ❖ | Deposits, including repurchase agreements, at $5.7 billion increased $212.2 million, an annualized 15.4%, from June 30, 2025 and<br> $598.7 million, or 11.8%, from September 30, 2024. |
| --- | --- |
| ❖ | Shareholders’ equity at $831.4 million increased $24.5 million, an annualized 12.0%, during the quarter and $70.6 million, or<br> 9.3%, from September 30, 2024. |
| --- | --- |
Net Interest Income
| Percent Change<br><br> <br>(%) | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2025<br><br> <br>Compared to: | ||||||||||||||||||||||||
| ($ in thousands) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | YTD<br><br> <br>2025 | YTD<br><br> <br>2024 | Percent Change (%) | ||||||||||||||||
| Components of net interest income: | ||||||||||||||||||||||||
| Income on earning assets | $ | 88,562 | $ | 85,571 | $ | 79,814 | 3.5 | 11.0 | $ | 256,187 | $ | 231,464 | 10.7 | |||||||||||
| Expense on interest bearing liabilities | 33,008 | 31,531 | 32,615 | 4.7 | 1.2 | 95,326 | 94,996 | 0.3 | ||||||||||||||||
| Net interest income | 55,554 | 54,040 | 47,199 | 2.8 | 17.7 | 160,861 | 136,468 | 17.9 | ||||||||||||||||
| TEQ | 301 | 283 | 280 | 6.4 | 7.5 | 857 | 866 | (1.1 | ) | |||||||||||||||
| Net interest income, tax equivalent | $ | 55,855 | $ | 54,323 | $ | 47,479 | 2.8 | 17.6 | $ | 161,718 | $ | 137,334 | 17.8 | |||||||||||
| Average yield and rates paid: | ||||||||||||||||||||||||
| Earning assets yield | 5.73 | % | 5.76 | % | 5.72 | % | (0.5 | ) | 0.2 | 5.73 | % | 5.64 | % | 1.6 | ||||||||||
| Rate paid on interest bearing liabilities | 3.01 | % | 3.00 | % | 3.36 | % | 0.3 | (10.4 | ) | 3.01 | % | 3.34 | % | (9.9 | ) | |||||||||
| Gross interest margin | 2.72 | % | 2.76 | % | 2.36 | % | (1.4 | ) | 15.3 | 2.72 | % | 2.31 | % | 17.7 | ||||||||||
| Net interest margin | 3.60 | % | 3.64 | % | 3.39 | % | (1.1 | ) | 6.2 | 3.61 | % | 3.34 | % | 8.1 | ||||||||||
| Average balances: | ||||||||||||||||||||||||
| Investment securities | $ | 1,006,259 | $ | 1,002,412 | $ | 1,091,258 | 0.4 | (7.8 | ) | $ | 1,018,062 | $ | 1,111,411 | (8.4 | ) | |||||||||
| Loans | $ | 4,736,104 | $ | 4,668,001 | $ | 4,300,652 | 1.5 | 10.1 | $ | 4,646,475 | $ | 4,196,884 | 10.7 | |||||||||||
| Earning assets | $ | 6,151,134 | $ | 5,983,093 | $ | 5,570,160 | 2.8 | 10.4 | $ | 5,995,216 | $ | 5,499,608 | 9.0 | |||||||||||
| Interest-bearing liabilities | $ | 4,353,313 | $ | 4,215,573 | $ | 3,859,978 | 3.3 | 12.8 | $ | 4,236,566 | $ | 3,803,491 | 11.4 |
Net interest income for the quarter of $55.6 million was $1.5 million, or 2.8%, above prior quarter and $8.4 million, or 17.7%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.60% decreased 4 basis points from prior quarter but increased 21 basis points from prior year same quarter. Our quarterly average earning assets increased $168.0 million, an annualized 11.1%, from prior quarter and $581.0 million, or 10.4%, from prior year same quarter. Our yield on average earning assets decreased 3 basis points from prior quarter but increased 1 basis point from prior year same quarter, while our cost of funds increased 1 basis point from prior quarter but decreased 35 basis points from prior year same quarter. Net interest income for the nine months ended September 30, 2025 at $160.9 million was $24.4 million or 17.9% above prior year.
Our ratio of average loans to deposits, including repurchase agreements, was 85.6% for the quarter ended September 30, 2025 compared to 86.6% for the quarter ended June 30, 2025 and 85.8% for the quarter ended September 30, 2024.
Noninterest Income
| Percent Change<br><br> <br>(%) | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2025<br><br> <br>Compared to: | |||||||||||||||||||
| ($ in thousands) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | YTD<br><br> <br>2025 | YTD<br><br> <br>2024 | Percent Change (%) | |||||||||||
| Deposit related fees | $ | 8,131 | $ | 7,350 | $ | 7,886 | 10.6 | 3.1 | $ | 22,303 | $ | 22,205 | 0.4 | ||||||
| Trust revenue | 4,277 | 4,092 | 3,707 | 4.5 | 15.4 | 12,350 | 10,960 | 12.7 | |||||||||||
| Gains on sales of loans | 89 | 77 | 80 | 15.6 | 11.3 | 213 | 244 | (12.7 | ) | ||||||||||
| Loan related fees | 897 | 1,249 | 813 | (28.1 | ) | 10.4 | 3,111 | 3,485 | (10.7 | ) | |||||||||
| Bank owned life insurance revenue | 1,144 | 1,102 | 1,214 | 3.8 | (5.8 | ) | 3,281 | 4,321 | (24.1 | ) | |||||||||
| Brokerage revenue | 588 | 526 | 563 | 11.8 | 4.5 | 1,608 | 1,736 | (7.4 | ) | ||||||||||
| Other | 820 | 1,775 | 1,300 | (53.8 | ) | (36.9 | ) | 4,148 | 3,454 | 20.1 | |||||||||
| Total noninterest income | $ | 15,946 | $ | 16,171 | $ | 15,563 | (1.4 | ) | 2.5 | $ | 47,014 | $ | 46,405 | 1.3 |
Noninterest income for the quarter ended September 30, 2025 of $15.9 million was $0.2 million, or 1.4% below prior quarter but $0.4 million, or 2.5% above prior year same quarter. The variance quarter over quarter was primarily the result of decreases in net securities gains ($0.6 million) and loan related fees ($0.4 million), partially offset by increased deposit related fees ($0.8 million). The decrease in securities gains was the result of a change in the valuation of our equity securities. The decrease in loan related fees was the result of the change in valuation of our mortgage servicing rights. Year over year increases in trust revenue ($0.6 million) and deposit related fees ($0.2 million) were partially offset by a decrease in securities gains ($0.7 million). Noninterest income for the nine months ended September 30, 2025 of $47.0 million was a $0.6 million, or 1.3%, increase from prior year.
Noninterest Expense
| Percent Change<br><br> <br>(%) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2025<br><br> <br>Compared to: | |||||||||||||||||
| ($ in thousands) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | YTD<br><br> <br>2025 | YTD<br><br> <br>2024 | Percent Change (%) | |||||||||
| Salaries | $ | 13,913 | $ | 13,667 | $ | 13,374 | 1.8 | 4.0 | $ | 40,849 | $ | 39,447 | 3.6 | ||||
| Employee benefits | 7,861 | 7,987 | 6,147 | (1.6 | ) | 27.9 | 22,697 | 19,787 | 14.7 | ||||||||
| Net occupancy and equipment | 3,261 | 3,172 | 3,072 | 2.8 | 6.2 | 9,873 | 9,189 | 7.4 | |||||||||
| Data processing | 3,575 | 3,326 | 2,804 | 7.5 | 27.5 | 9,760 | 7,991 | 22.1 | |||||||||
| Legal and professional fees | 1,045 | 1,001 | 1,024 | 4.5 | 2.1 | 3,271 | 2,834 | 15.4 | |||||||||
| Advertising and marketing | 953 | 765 | 876 | 24.5 | 8.7 | 2,391 | 2,309 | 3.5 | |||||||||
| Taxes other than property and payroll | 564 | 573 | 438 | (1.6 | ) | 28.7 | 1,666 | 1,318 | 26.4 | ||||||||
| Other | 5,572 | 5,172 | 4,777 | 7.7 | 16.6 | 16,108 | 14,279 | 12.8 | |||||||||
| Total noninterest expense | $ | 36,744 | $ | 35,663 | $ | 32,512 | 3.0 | 13.0 | $ | 106,615 | $ | 97,154 | 9.7 |
Noninterest expense for the quarter ended September 30, 2025 of $36.7 million was $1.1 million, or 3.0%, above prior quarter and $4.2 million, or 13.0%, above prior year same quarter. The quarter over quarter increase primarily resulted from increases in repossession expense ($0.4 million), data processing expense ($0.2 million), and marketing and promotional ($0.2 million). A $1.3 million increase in group medical and life insurance expense was partially offset by a $1.2 million decrease in the accrual for the annual incentive payment to employees, based on projected net income for the year. The year over year increase included increases in personnel expense ($2.3 million, data processing expense ($0.8 million), repossession expense ($0.4 million), and marketing and promotional ($0.2 million). The increase in personnel expense included a $1.2 million increase in group medical and life insurance expense, a $0.5 million increase in salaries, a $0.2 million increase in bonuses and incentives, and a $0.4 million increase in other employee benefits. Noninterest expense for the nine months ended September 30, 2025 of $106.6 million increased $9.5 million, or 9.7%, from prior year.
Balance Sheet Review
Total Loans
| Percent Change (%) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2025 Compared to: | ||||||||||||
| ($ in thousands) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | |||||||
| Commercial nonresidential real estate | $ | 921,682 | $ | 913,463 | $ | 834,985 | 0.9 | 10.4 | ||||
| Commercial residential real estate | 573,270 | 559,906 | 485,004 | 2.4 | 18.2 | |||||||
| Hotel/motel | 483,833 | 477,175 | 453,465 | 1.4 | 6.7 | |||||||
| Other commercial | 446,125 | 432,021 | 440,636 | 3.3 | 1.2 | |||||||
| Total commercial | 2,424,910 | 2,382,565 | 2,214,090 | 1.8 | 9.5 | |||||||
| Residential mortgage | 1,157,540 | 1,112,672 | 1,003,123 | 4.0 | 15.4 | |||||||
| Home equity loans/lines | 184,191 | 177,135 | 163,013 | 4.0 | 13.0 | |||||||
| Total residential | 1,341,731 | 1,289,807 | 1,166,136 | 4.0 | 15.1 | |||||||
| Consumer indirect | 877,555 | 878,506 | 816,187 | (0.1 | ) | 7.5 | ||||||
| Consumer direct | 149,719 | 150,915 | 154,061 | (0.8 | ) | (2.8 | ) | |||||
| Total consumer | 1,027,274 | 1,029,421 | 970,248 | (0.2 | ) | 5.9 | ||||||
| Total loans | $ | 4,793,915 | $ | 4,701,793 | $ | 4,350,474 | 2.0 | 10.2 |
Total Deposits and Repurchase Agreements
| Percent Change (%) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3Q 2025 Compared to: | ||||||||||||
| ($ in thousands) | 3Q<br><br> <br>2025 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | 2Q<br><br> <br>2025 | 3Q<br><br> <br>2024 | |||||||
| Noninterest bearing deposits | $ | 1,248,573 | $ | 1,258,205 | $ | 1,204,515 | (0.8 | ) | 3.7 | |||
| Interest bearing deposits | ||||||||||||
| Interest checking | 194,327 | 173,795 | 156,249 | 11.8 | 24.4 | |||||||
| Money market savings | 1,815,111 | 1,820,230 | 1,658,758 | (0.3 | ) | 9.4 | ||||||
| Savings accounts | 501,189 | 508,467 | 501,933 | (1.4 | ) | (0.1 | ) | |||||
| Time deposits | 1,626,261 | 1,472,311 | 1,316,807 | 10.5 | 23.5 | |||||||
| Repurchase agreements | 284,863 | 225,075 | 233,324 | 26.6 | 22.1 | |||||||
| Total interest bearing deposits and repurchase agreements | 4,421,751 | 4,199,878 | 3,867,071 | 5.3 | 14.3 | |||||||
| Total deposits and repurchase agreements | $ | 5,670,324 | $ | 5,458,083 | $ | 5,071,586 | 3.9 | 11.8 |
CTBI’s total assets at $6.6 billion as of September 30, 2025 increased $247.2 million, or 15.3% annualized, from June 30, 2025 and $675.2 million, or 11.3%, from September 30, 2024. Loans outstanding at $4.8 billion increased $92.1 million, an annualized 7.8%, from June 30, 2025 and $443.4 million, or 10.2%, from September 30, 2024. The increase in loans from prior quarter included a $42.3 million increase in the commercial loan portfolio, a $51.9 million increase in the residential loan portfolio, partially offset by a $0.9 million decrease in the consumer indirect loan portfolio and a $1.2 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $42.5 million, an annualized 16.9%, from June 30, 2025 but decreased $59.4 million, or 5.4%, from September 30, 2024. Deposits in other banks increased $117.7 million from prior quarter and $281.4 million from September 30, 2024, as a result of deposit growth outpacing loan growth. Deposits, including repurchase agreements, at $5.7 billion increased $212.2 million, an annualized 15.4%, from June 30, 2025 and $598.7 million, or 11.8%, from September 30, 2024. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of September 30, 2025, two customers accounted for 3% each of our $5.4 billion in deposits. Only two customer relationships accounted for more than 1% each.
Shareholders’ equity at $831.4 million increased $24.5 million, an annualized 12.0%, during the quarter and $70.6 million, or 9.3%, from September 30, 2024. Net unrealized losses on securities, net of deferred taxes, were $71.1 million at September 30, 2025, compared to $80.6 million at June 30, 2025 and September 30, 2024. CTBI’s annualized dividend yield to shareholders as of September 30, 2025 was 3.79%.
Asset Quality
Our total nonperforming loans of $24.7 million at September 30, 2025 increased $0.3 million from June 30, 2025 but decreased $0.4 million from September 30, 2024. Accruing loans 90+ days past due at $9.0 million increased $0.6 million from prior quarter but decreased $10.1 million from September 30, 2024. Nonaccrual loans at $15.6 million decreased $0.3 million from prior quarter but increased $9.7 million from September 30, 2024. Accruing loans 30-89 days past due at $18.5 million decreased $1.6 million from prior quarter and $2.1 million from September 30, 2024. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.
We had net loan charge-offs of $2.7 million, an annualized 0.23% of average loans, for the third quarter 2025 compared to $1.4 million, an annualized 0.12% of average loans, for the second quarter 2025 and $1.5 million, an annualized 0.14% of average loans, for the third quarter 2024. Of the net charge-offs for the quarter, $1.2 million were in commercial loans, $0.1 million were in residential loans, $1.2 million were in consumer indirect loans, and $0.2 million were in consumer direct loans. The primary increase in net charge-offs consisted of a $1 million charge-off on one commercial credit totaling $8 million. Net-charge offs for the nine months ended September 30, 2025 were $5.7 million, an annualized 0.16% of average loans, compared to $4.5 million, an annualized 0.14% of average loans, for the nine months ended September 30, 2024.
Allowance for Credit Losses
Our provision for credit losses at $3.9 million for the quarter increased $1.8 million from prior quarter and $1.1 million from prior year same quarter. Of the provision for the quarter, $3.8 million was allotted to fund changes in loan volume and composition, $0.3 million was allotted based on quantitative and qualitative factors, and $0.2 million was credited against the provision for unfunded commitments. Provision for credit losses for the nine months ended September 30, 2025 of $9.5 million was a $1.2 million increase over the nine months ended September 30, 2024. Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2025 was 239.5% compared to 237.1% at June 30, 2025 and 212.7% at September 30, 2024. Our loan loss reserve as a percentage of total loans outstanding at September 30, 2025 remained at 1.23% from June 30, 2025 and September 30, 2024.
Forward-Looking Statements
Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. CTBI’s actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of epidemics, pandemics, or other infectious disease outbreaks; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the resolution of legal proceedings and related matters. In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results. These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made.
Community Trust Bancorp, Inc., with assets of $6.6 billion, is headquartered in Pikeville, Kentucky and has 72 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.
Additional information follows.
| Community Trust Bancorp, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Financial Summary (Unaudited) | |||||||||||||||
| September 30, 2025 | |||||||||||||||
| (in thousands except per share data and # of employees) | |||||||||||||||
| Three | Three | Three | Nine | Nine | |||||||||||
| Months | Months | Months | Months | Months | |||||||||||
| Ended | Ended | Ended | Ended | Ended | |||||||||||
| September 30, 2025 | June 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 | |||||||||||
| Interest income | $ | 88,562 | $ | 85,571 | $ | 79,814 | $ | 256,187 | $ | 231,464 | |||||
| Interest expense | 33,008 | 31,531 | 32,615 | 95,326 | 94,996 | ||||||||||
| Net interest income | 55,554 | 54,040 | 47,199 | 160,861 | 136,468 | ||||||||||
| Provision for credit losses | 3,866 | 2,094 | 2,736 | 9,528 | 8,364 | ||||||||||
| Gains on sales of loans | 89 | 77 | 80 | 213 | 244 | ||||||||||
| Deposit related fees | 8,131 | 7,350 | 7,886 | 22,303 | 22,205 | ||||||||||
| Trust revenue | 4,277 | 4,092 | 3,707 | 12,350 | 10,960 | ||||||||||
| Loan related fees | 897 | 1,249 | 813 | 3,111 | 3,485 | ||||||||||
| Securities gains (losses) | (449 | ) | 150 | 213 | 181 | 110 | |||||||||
| Other noninterest income | 3,001 | 3,253 | 2,864 | 8,856 | 9,401 | ||||||||||
| Total noninterest income | 15,946 | 16,171 | 15,563 | 47,014 | 46,405 | ||||||||||
| Personnel expense | 21,774 | 21,654 | 19,521 | 63,546 | 59,234 | ||||||||||
| Occupancy and equipment | 3,261 | 3,172 | 3,072 | 9,873 | 9,189 | ||||||||||
| Data processing expense | 3,575 | 3,326 | 2,804 | 9,760 | 7,991 | ||||||||||
| FDIC insurance premiums | 703 | 688 | 629 | 2,080 | 1,916 | ||||||||||
| Other noninterest expense | 7,431 | 6,823 | 6,486 | 21,356 | 18,824 | ||||||||||
| Total noninterest expense | 36,744 | 35,663 | 32,512 | 106,615 | 97,154 | ||||||||||
| Net income before taxes | 30,890 | 32,454 | 27,514 | 91,732 | 77,355 | ||||||||||
| Income taxes | 6,979 | 7,555 | 5,372 | 20,950 | 17,035 | ||||||||||
| Net income | $ | 23,911 | $ | 24,899 | $ | 22,142 | $ | 70,782 | $ | 60,320 | |||||
| Memo: TEQ interest income | $ | 88,863 | $ | 85,854 | $ | 80,094 | $ | 257,044 | $ | 232,330 | |||||
| Average shares outstanding | 18,019 | 18,012 | 17,962 | 18,009 | 17,942 | ||||||||||
| Diluted average shares outstanding | 18,053 | 18,036 | 17,991 | 18,037 | 17,965 | ||||||||||
| Basic earnings per share | $ | 1.33 | $ | 1.38 | $ | 1.23 | $ | 3.93 | $ | 3.36 | |||||
| Diluted earnings per share | $ | 1.32 | $ | 1.38 | $ | 1.23 | $ | 3.92 | $ | 3.36 | |||||
| Dividends per share | $ | 0.53 | $ | 0.47 | $ | 0.47 | $ | 1.47 | $ | 1.39 | |||||
| Average balances: | |||||||||||||||
| Loans | $ | 4,736,104 | $ | 4,668,001 | $ | 4,300,652 | $ | 4,646,475 | $ | 4,196,884 | |||||
| Earning assets | 6,151,134 | 5,983,093 | 5,570,160 | 5,995,216 | 5,499,608 | ||||||||||
| Total assets | 6,487,817 | 6,313,922 | 5,891,157 | 6,327,184 | 5,824,780 | ||||||||||
| Deposits, including repurchase agreements | 5,531,461 | 5,387,923 | 5,014,506 | 5,399,692 | 4,977,040 | ||||||||||
| Interest bearing liabilities | 4,353,313 | 4,215,573 | 3,859,978 | 4,236,566 | 3,803,491 | ||||||||||
| Shareholders' equity | 823,016 | 798,536 | 748,098 | 798,996 | 722,683 | ||||||||||
| Performance ratios: | |||||||||||||||
| Return on average assets | 1.46 | % | 1.58 | % | 1.50 | % | 1.50 | % | 1.38 | % | |||||
| Return on average equity | 11.53 | % | 12.51 | % | 11.77 | % | 11.84 | % | 11.15 | % | |||||
| Yield on average earning assets (tax equivalent) | 5.73 | % | 5.76 | % | 5.72 | % | 5.73 | % | 5.64 | % | |||||
| Cost of interest bearing funds (tax equivalent) | 3.01 | % | 3.00 | % | 3.36 | % | 3.01 | % | 3.34 | % | |||||
| Net interest margin (tax equivalent) | 3.60 | % | 3.64 | % | 3.39 | % | 3.61 | % | 3.34 | % | |||||
| Efficiency ratio (tax equivalent) | 50.86 | % | 50.70 | % | 51.75 | % | 51.12 | % | 52.91 | % | |||||
| Loan charge-offs | $ | 4,024 | $ | 2,528 | $ | 2,736 | $ | 9,274 | $ | 8,239 | |||||
| Recoveries | (1,276 | ) | (1,175 | ) | (1,212 | ) | (3,598 | ) | (3,692 | ) | |||||
| Net charge-offs | $ | 2,748 | $ | 1,353 | $ | 1,524 | $ | 5,676 | $ | 4,547 | |||||
| Market Price: | |||||||||||||||
| High | $ | 59.67 | $ | 53.82 | $ | 52.22 | $ | 59.67 | $ | 52.22 | |||||
| Low | $ | 52.60 | $ | 44.60 | $ | 41.50 | $ | 44.60 | $ | 38.44 | |||||
| Close | $ | 55.95 | $ | 52.92 | $ | 49.66 | $ | 55.95 | $ | 49.66 |
| Community Trust Bancorp, Inc. | ||||||||
|---|---|---|---|---|---|---|---|---|
| Financial Summary (Unaudited) | ||||||||
| September 30, 2025 | ||||||||
| (in thousands except per share data and # of employees) | ||||||||
| As of | As of | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| June 30, 2025 | September 30, 2024 | |||||||
| Assets: | ||||||||
| Loans | 4,793,915 | $ | 4,701,793 | $ | 4,350,474 | |||
| Allowance for credit losses | (59,135 | ) | (57,825 | ) | (53,360 | ) | ||
| Net loans | 4,734,780 | 4,643,968 | 4,297,114 | |||||
| Loans held for sale | 483 | 345 | 115 | |||||
| Securities AFS | 1,037,965 | 994,990 | 1,098,076 | |||||
| Equity securities at fair value | 3,961 | 4,410 | 3,266 | |||||
| Other equity investments | 9,948 | 14,440 | 10,060 | |||||
| Other earning assets | 438,501 | 320,830 | 157,092 | |||||
| Cash and due from banks | 71,218 | 76,556 | 85,944 | |||||
| Premises and equipment | 52,245 | 52,118 | 47,519 | |||||
| Right of use asset | 15,974 | 15,210 | 14,718 | |||||
| Goodwill and core deposit intangible | 65,490 | 65,490 | 65,490 | |||||
| Other assets | 207,564 | 202,581 | 183,574 | |||||
| Total Assets | 6,638,129 | $ | 6,390,938 | $ | 5,962,968 | |||
| Liabilities and Equity: | ||||||||
| Interest bearing checking | 194,327 | $ | 173,795 | $ | 156,249 | |||
| Savings deposits | 2,316,300 | 2,328,697 | 2,160,691 | |||||
| CD's >=100,000 | 992,728 | 875,835 | 753,253 | |||||
| Other time deposits | 633,533 | 596,476 | 563,554 | |||||
| Total interest bearing deposits | 4,136,888 | 3,974,803 | 3,633,747 | |||||
| Noninterest bearing deposits | 1,248,573 | 1,258,205 | 1,204,515 | |||||
| Total deposits | 5,385,461 | 5,233,008 | 4,838,262 | |||||
| Repurchase agreements | 284,863 | 225,075 | 233,324 | |||||
| Other interest bearing liabilities | 64,641 | 64,705 | 64,893 | |||||
| Lease liability | 16,909 | 16,087 | 15,530 | |||||
| Other noninterest bearing liabilities | 54,882 | 45,194 | 50,197 | |||||
| Total liabilities | 5,806,756 | 5,584,069 | 5,202,206 | |||||
| Shareholders' equity | 831,373 | 806,869 | 760,762 | |||||
| Total Liabilities and Equity | 6,638,129 | $ | 6,390,938 | $ | 5,962,968 | |||
| Ending shares outstanding | 18,110 | 18,105 | 18,052 | |||||
| 30 - 89 days past due loans | 18,500 | $ | 20,055 | $ | 20,578 | |||
| 90 days past due loans | 9,040 | 8,449 | 19,111 | |||||
| Nonaccrual loans | 15,647 | 15,937 | 5,980 | |||||
| Foreclosed properties | 4,856 | 4,857 | 1,344 | |||||
| Community bank leverage ratio | 13.68 | % | 13.80 | % | 13.99 | % | ||
| Tangible equity to tangible assets ratio | 11.65 | % | 11.72 | % | 11.79 | % | ||
| FTE employees | 929 | 937 | 943 |
All values are in US Dollars.