Community Trust Bancorp, Inc. Reports Record Earnings for the 2nd Quarter 2026

Community Trust Bancorp, Inc. Reports Record Earnings for the 2nd Quarter 2026 July 15, 2026 Community Trust Bancorp, Inc. (NASDAQ:CTBI): Earnings Summary (in thousands except per share data) 2Q 2026 1Q 2026 2Q 2025 YTD 2026 YTD 2025 Net income $29,623 $27,192 $24,899 $56,815 $46,871 Earnings per share $1.64 $1.51 $1.38 $3.15 $2.60 Earnings per share - diluted $1.64 $1.50 $1.38 $3.14 $2.60 Return on average assets 1.74% 1.65% 1.58% 1.70% 1.51% Return on average equity 13.40% 12.62% 12.51% 13.01% 12.01% Efficiency ratio 47.99% 48.72% 50.70% 48.35% 51.26% Tangible common equity 11.93% 12.07% 11.72% Dividends declared per share $0.53 $0.53 $0.47 $1.06 $0.94 Book value per share $49.10 $47.99 $44.57 Weighted average shares 18,064 18,049 18,012 18,056 18,004 Weighted average shares - diluted 18,099 18,080 18,036 18,090 18,029 Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved record earnings for the second quarter 2026 of $29.6 million, or $1.64 per basic earnings per share, compared to $27.2 million, or $1.51 per basic share, earned during the first quarter 2026 and $24.9 million, or $1.38 per basic share, earned during the second quarter 2025. Total revenue for the quarter was $4.3 million above prior quarter and $8.3 million above prior year same quarter. Net interest income for the quarter increased $2.1 million compared to prior quarter and $6.8 million compared to prior year same quarter, and noninterest income increased $2.2 million compared to prior quarter and $1.4 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $0.5 million from prior quarter and $0.7 million from prior year same quarter. Noninterest expense increased $0.8 million compared to prior quarter and $1.7 million compared to prior year same quarter. Earnings for the six months ended June 30, 2026 were $56.8 million, or $3.15 per basic share, compared to $46.9 million, or $2.60 per basic share, for the same period prior year. 2nd Quarter 2026 Highlights Net interest income for the quarter of $60.9 million was $2.1 million, or 3.6%, above prior quarter and $6.8 million, or 12.7%, above prior year same quarter, as our net interest margin increased 1 basis point from prior quarter and 16 basis points from prior year same quarter.Provision for credit losses at $2.8 million for the quarter increased $0.5 million from prior quarter and $0.7 million from prior year same quarter.Noninterest income for the quarter of $17.6 million was $2.2 million, or 14.2%, above prior quarter and $1.4 million, or 8.8%, above prior year same quarter.Noninterest expense for the quarter of $37.4 million was $0.8 million, or 2.3%, above prior quarter and $1.7 million, or 4.8%, above prior year same quarter.Our loan portfolio at $5.1 billion increased $134.1 million, an annualized 10.8%, for the quarter and $423.1 million, or 9.0%, from June 30, 2025.We had net loan charge-offs of $0.9 million, an annualized 0.07% of average loans, for the quarter compared to $1.3 million, an annualized 0.11% of average loans, for prior quarter and $1.4 million, an annualized 0.12% of average loans, for the second quarter 2025.Our total nonperforming loans at $29.7 million at June 30, 2026 increased $9.0 million for the quarter and $5.4 million from June 30, 2025. Nonperforming assets at $33.3 million increased $9.2 million for the quarter and $4.0 million from June 30, 2025.Deposits, including repurchase agreements, at $6.0 billion increased $221.9 million, an annualized 15.5%, for the quarter and $496.8 million, or 9.1%, from June 30, 2025.Shareholders’ equity at $891.8 million increased $20.6 million, an annualized 9.5%, for the quarter and $85.0 million, or 10.5%, from June 30, 2025. Net Interest Income Percent Change 2Q 2026 Compared to: ($ in thousands) 2Q 2026 1Q 2026 2Q 2025 1Q 2026 2Q 2025 YTD 2026 YTD 2025 Percent Change Components of net interest income: Income on earning assets $91,238 $87,755 $85,571 4.0% 6.6% $178,993 $167,625 6.8% Expense on interest bearing liabilities 30,349 28,973 31,531 4.7% (3.8)% 59,322 62,318 (4.8)% Net interest income 60,889 58,782 54,040 3.6% 12.7% 119,671 105,307 13.6% TEQ 304 317 283 (4.0)% 7.0% 621 556 11.7% Net interest income, tax equivalent (non-GAAP) $61,193 $59,099 $54,323 3.5% 12.6% $120,292 $105,863 13.6% Average yield and rates paid: Earning assets yield 5.68% 5.65% 5.76% 0.5% (1.3)% 5.66% 5.73% (1.2)% Rate paid on interest bearing liabilities 2.64% 2.61% 3.00% 1.0% (11.9)% 2.63% 3.01% (12.8)% Gross interest margin 3.04% 3.04% 2.76% (0.2)% 10.2% 3.03% 2.72% 11.0% Net interest margin 3.80% 3.79% 3.64% 0.2% 4.3% 3.79% 3.61% 5.1% Average balances: Investment securities $1,081,411 $1,113,988 $1,002,412 (2.9)% 7.9% $1,097,610 $1,024,062 7.2% Loans $5,051,165 $4,934,257 $4,668,001 2.4% 8.2% $4,993,034 $4,600,919 8.5% Earning assets $6,464,479 $6,327,329 $5,983,093 2.2% 8.0% $6,396,283 $5,915,965 8.1% Interest-bearing liabilities $4,610,459 $4,494,829 $4,215,573 2.6% 9.4% $4,552,963 $4,177,225 9.0% Net interest income for the quarter of $60.9 million was $2.1 million, or 3.6%, above prior quarter and $6.8 million, or 12.7%, above prior year same quarter, as our net interest margin, on a fully tax equivalent basis, increased 1 basis point from prior quarter and 16 basis points from prior year same quarter. Our quarterly average earning assets increased $137.2 million, an annualized 2.2%, from prior quarter and $481.4 million, or 8.0%, from prior year same quarter. Our yield on average earning assets increased 3 basis points from prior quarter but decreased 8 basis points from prior year same quarter, while our cost of funds increased 3 basis points from prior quarter but decreased 36 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, for the quarter remained at 87.2% from prior quarter compared to 86.6% for same quarter prior year. Net interest income for the six months ended June 30, 2026 at $119.7 million was $14.4 million, or 13.6%, above same period prior year. Provision for Credit Losses Our provision for credit losses at $2.8 million for the quarter increased $0.5 million from prior quarter and $0.7 million from prior year same quarter. Of the provision for the quarter, $2.6 million was attributable to the allowance for credit losses, with an additional expense of $174 thousand recognized in the provision for unfunded commitments. Provision for credit losses for the six months ended June 30, 2026 at $5.1 million was $0.6 million below same period prior year. Noninterest Income Percent Change 2Q 2026 Compared to: ($ in thousands) 2Q 2026 1Q 2026 2Q 2025 1Q 2026 2Q 2025 YTD 2026 YTD 2025 Percent Change Deposit related fees $7,657 $7,155 $7,350 7.0% 4.2% $14,812 $14,172 4.5% Trust and wealth management income 4,724 4,462 4,092 5.9% 15.4% 9,186 8,073 13.8% Gains on sales of loans 61 51 77 18.7% (21.0)% 112 124 (9.8)% Loan related fees 1,146 1,039 1,249 10.2% (8.3)% 2,185 2,214 (1.3)% Bank owned life insurance revenue 1,188 1,714 1,102 (30.7)% 7.9% 2,902 2,137 35.8% Brokerage revenue 528 520 526 1.5% 0.3% 1,048 1,020 2.8% Other 2,295 473 1,775 385.6% 29.3% 2,768 3,328 (16.8)% Total noninterest income $17,599 $15,414 $16,171 14.2% 8.8% $33,013 $31,068 6.3% Noninterest income for the quarter of $17.6 million was $2.2 million, or 14.2%, above prior quarter and $1.4 million, or 8.8%, above prior year same quarter. The variance quarter over quarter was primarily the result of increases in net securities gains ($1.4 million), deposit related fees ($0.5 million), and trust and wealth management income ($0.3 million). Year over year increases for the quarter included net securities gains ($0.8 million), deposit related fees ($0.3 million), and trust and wealth management income ($0.6 million). The variances in securities gains resulted primarily from changes in the valuation of our equity securities, as we converted a portion of Visa Class B stock to Class C. Noninterest income for the six months ended June 30, 2026 of $33.0 million was $1.9 million, or 6.3%, above prior year same period. Noninterest Expense Percent Change 2Q 2026 Compared to: ($ in thousands) 2Q 2026 1Q 2026 2Q 2025 1Q 2026 2Q 2025 YTD 2026 YTD 2025 Percent Change Salaries $13,923 $13,629 $13,667 2.2% 1.9% $27,552 $26,936 2.3% Employee benefits 9,297 8,476 7,987 9.7% 16.4% 17,773 14,836 19.8% Net occupancy and equipment 3,367 3,699 3,172 (9.0)% 6.1% 7,066 6,612 6.9% Data processing 2,851 2,955 3,326 (3.5)% (14.3)% 5,806 6,185 (6.1)% Legal and professional fees 1,084 1,164 1,001 (6.9)% 8.3% 2,248 2,226 1.0% Advertising and marketing 841 700 765 20.1% 9.9% 1,541 1,438 7.1% Taxes other than property and payroll 619 617 573 0.3% 7.9% 1,236 1,102 12.2% Other 5,388 5,297 5,172 1.7% 4.2% 10,685 10,536 1.4% Total noninterest expense $37,370 $36,537 $35,663 2.3% 4.8% $73,907 $69,871 5.8% Noninterest expense for the quarter of $37.4 million was $0.8 million, or 2.3%, above prior quarter and $1.7 million, or 4.8%, above prior year same quarter. The quarter over quarter increase primarily resulted from an increase in salaries ($0.3 million) and employee benefits ($0.8 million), partially offset by a decrease in net occupancy and equipment expense ($0.3 million). The increase in employee benefits included increases in bonuses and incentives ($0.2 million) and the cost of group medical and life insurance expense ($0.8 million). The year over year increase for the quarter primarily resulted from increases in salaries ($0.3 million) and employee benefits ($1.3 million), including an increase in the cost of group medical and life insurance expense ($2.0 million) partially offset by a decrease in bonuses and incentives ($0.5 million). Noninterest expense for the six months ended June 30, 2026 of $73.9 million was $4.0 million, or 5.8%, above prior year same period. Balance Sheet Review Total Loans Percent Change 2Q 2026 Compared to: ($ in thousands) 2Q 2026 1Q 2026 2Q 2025 1Q 2026 2Q 2025 Commercial nonresidential real estate $1,005,462 $994,914 $913,463 1.1% 10.1% Commercial residential real estate 599,454 596,948 559,906 0.4% 7.1% Hotel/motel 528,697 507,243 477,175 4.2% 10.8% Other commercial 463,901 440,980 432,021 5.2% 7.4% Total commercial 2,597,514 2,540,085 2,382,565 2.3% 9.0% Residential mortgage 1,289,157 1,245,759 1,112,672 3.5% 15.9% Home equity loans/lines 195,270 191,178 177,135 2.1% 10.2% Total residential 1,484,427 1,436,937 1,289,807 3.3% 15.1% Consumer indirect 903,125 873,980 878,506 3.3% 2.8% Consumer direct 139,865 139,819 150,915 0.0% (7.3)% Total consumer 1,042,990 1,013,799 1,029,421 2.9% 1.3% Total loans $5,124,931 $4,990,821 $4,701,793 2.7% 9.0% Total Deposits and Repurchase Agreements Percent Change 2Q 2026 Compared to: ($ in thousands) 2Q 2026 1Q 2026 2Q 2025 1Q 2026 2Q 2025 Noninterest bearing deposits $1,259,364 $1,262,835 $1,258,205 (0.3)% 0.1% Interest bearing deposits Interest checking 188,978 190,769 173,795 (0.9)% 8.7% Money market savings 1,963,115 1,917,509 1,820,230 2.4% 7.8% Savings accounts 497,390 508,553 508,467 (2.2)% (2.2)% Time deposits 1,748,916 1,554,554 1,472,311 12.5% 18.8% Repurchase agreements 297,094 298,721 225,075 (0.5)% 32.0% Total interest bearing deposits and repurchase agreements 4,695,493 4,470,106 4,199,878 5.0% 11.8% Total deposits and repurchase agreements $5,954,857 $5,732,941 $5,458,083 3.9% 9.1% CTBI’s total assets at $7.0 billion increased $248.2 million, or 14.8% annualized, for the quarter and $598.4 million, or 9.4%, from June 30, 2025. Loans outstanding at $5.1 billion increased $134.1 million, an annualized 10.8%, for the quarter and $423.1 million, or 9.0%, from June 30, 2025. The increase in loans for the quarter included a $57.4 million increase in the commercial loan portfolio, a $47.5 million increase in the residential loan portfolio, a $29.1 million increase in the consumer indirect loan portfolio, and a $0.1 million increase in the consumer direct loan portfolio. CTBI’s investment portfolio at $1.1 billion decreased $35.6 million, an annualized 13.1%, for the quarter as management allocated investment maturities into the loan portfolio but increased $56.9 million, or 5.7%, from June 30, 2025. Deposits in other banks increased $183.4 million for the quarter and $131.8 million from June 30, 2025. Deposits, including repurchase agreements, at $6.0 billion increased $221.9 million, an annualized 15.5%, for the quarter and $496.8 million, or 9.1%, from June 30, 2025. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of June 30, 2026, two customers accounted for over 3% each (3.5% and 3.1%) of our $5.7 billion in deposits. Only these two customer relationships accounted for more than 1% each of our deposits. Shareholders’ equity at $891.8 million increased $20.6 million, an annualized 9.5%, for the quarter and $85.0 million, or 10.5%, from June 30, 2025. Net unrealized losses on securities, net of deferred taxes, were $68.4 million at June 30, 2026, compared to $68.0 million at March 31, 2026 and $80.6 million at June 30, 2025. CTBI’s annualized dividend yield to shareholders as of June 30, 2026 was 2.93%. Asset Quality Our total nonperforming loans at $29.7 million at June 30, 2026 increased $9.0 million for the quarter and $5.4 million from June 30, 2025. Nonaccrual loans at $10.8 million decreased $0.3 million from prior quarter and $5.1 million from June 30, 2025. Accruing loans 90+ days past due at $19.0 million increased $9.4 million from prior quarter and $10.5 million from June 30, 2025, as a well secured $8.7 million commercial relationship in the process of collection moved from the 30-89 days past due category during the quarter. Accruing loans 30-89 days past due at $20.3 million decreased $4.5 million from prior quarter but increased $0.2 million from June 30, 2025. 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 $0.9 million, an annualized 0.07% of average loans, for the quarter compared to $1.3 million, an annualized 0.11% of average loans, for prior quarter and $1.4 million, an annualized 0.12% of average loans, for the second quarter 2025. Of the net charge-offs for the quarter, $0.2 million were in commercial loans, $0.5 million were in consumer indirect loans, and $0.2 million were in consumer direct loans. Net loan charge-offs for the six months ended June 30, 2026 were $2.2 million, or an annualized 0.09% of average loans, compared to $2.9 million, or an annualized 0.13% of average loans, for the same period prior year. Allowance for Credit Losses Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2026 was 211.8% compared to 295.8% at March 31, 2026 and 237.1% at June 30, 2025. Our allowance for credit losses as a percentage of total loans outstanding at June 30, 2026 remained at 1.23% from March 31, 2026 and June 30, 2026. The table below shows the changes in components of the allowance for credit losses during the second quarter 2026: Beginning balance $61,321 New loan volume 5,097 Changes in existing loan balances (546) Loans exiting (2,904) Historical loss rate 245 Qualitative factors (246) Other changes 34 Ending balance $63,001 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 $7.0 billion, is headquartered in Pikeville, Kentucky and has 69 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)June 30, 2026(in thousands except per share data and # of employees)ThreeThreeThreeSixSixMonthsMonthsMonthsMonthsMonthsEndedEndedEndedEndedEndedJune 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025Interest income $ 91,238 $ 87,755 $ 85,571 $ 178,993 $ 167,625 Interest expense 30,349 28,973 31,531 59,322 62,318 Net interest income 60,889 58,782 54,040 119,671 105,307 Provision for credit losses 2,771 2,311 2,094 5,082 5,662 Gains on sales of loans 61 51 77 112 124 Deposit related fees 7,657 7,155 7,350 14,812 14,172 Trust and wealth management income 4,724 4,462 4,092 9,186 8,073 Loan related fees 1,146 1,039 1,249 2,185 2,214 Securities gains (losses) 924 (488) 150 436 630 Other noninterest income 3,087 3,195 3,253 6,282 5,855 Total noninterest income 17,599 15,414 16,171 33,013 31,068 Personnel expense 23,220 22,105 21,654 45,325 41,772 Occupancy and equipment 3,367 3,699 3,172 7,066 6,612 Data processing expense 2,851 2,955 3,326 5,806 6,185 FDIC insurance premiums 751 744 688 1,495 1,377 Other noninterest expense 7,181 7,034 6,823 14,215 13,925 Total noninterest expense 37,370 36,537 35,663 73,907 69,871 Net income before taxes 38,347 35,348 32,454 73,695 60,842 Income taxes 8,724 8,156 7,555 16,880 13,971 Net income $ 29,623 $ 27,192 $ 24,899 $ 56,815 $ 46,871 Memo: TEQ interest income $ 91,542 $ 88,072 $ 85,854 $ 179,614 $ 168,181 Average shares outstanding 18,064 18,049 18,012 18,056 18,004 Diluted average shares outstanding 18,099 18,080 18,036 18,090 18,029 Basic earnings per share $ 1.64 $ 1.51 $ 1.38 $ 3.15 $ 2.60 Diluted earnings per share $ 1.64 $ 1.50 $ 1.38 $ 3.14 $ 2.60 Dividends per share $ 0.53 $ 0.53 $ 0.47 $ 1.06 $ 0.94 Average balances:Loans $ 5,051,165 $ 4,934,257 $ 4,668,001 $ 4,993,034 $ 4,600,919 Earning assets 6,464,479 6,327,329 5,983,093 6,396,283 5,915,965 Total assets 6,817,407 6,669,401 6,313,922 6,743,813 6,245,536 Deposits, including repurchase agreements 5,793,767 5,661,967 5,387,923 5,728,231 5,332,715 Interest bearing liabilities 4,610,459 4,494,829 4,215,573 4,552,963 4,177,225 Shareholders' equity 886,914 873,726 798,536 880,356 786,787 Performance ratios:Return on average assets 1.74% 1.65% 1.58% 1.70% 1.51% Return on average equity 13.40% 12.62% 12.51% 13.01% 12.01% Yield on average earning assets (tax equivalent) 5.68% 5.65% 5.76% 5.66% 5.73% Cost of interest bearing funds (tax equivalent) 2.64% 2.61% 3.00% 2.63% 3.01% Net interest margin (tax equivalent) 3.80% 3.79% 3.64% 3.79% 3.61% Efficiency ratio (tax equivalent) 47.99% 48.72% 50.70% 48.35% 51.26% Loan charge-offs $ 2,112 $ 2,686 $ 2,528 $ 4,798 $ 5,250 Recoveries (1,195) (1,368) (1,175) (2,563) (2,322) Net charge-offs $ 917 $ 1,318 $ 1,353 $ 2,235 $ 2,928 Market Price:High $ 73.22 $ 65.79 $ 53.82 $ 73.22 $ 56.96 Low $ 60.40 $ 56.05 $ 44.60 $ 56.05 $ 44.60 Close $ 72.36 $ 60.72 $ 52.92 $ 72.36 $ 52.92 Community Trust Bancorp, Inc.Financial Summary (Unaudited)June 30, 2026(in thousands except per share data and # of employees)As ofAs ofAs ofJune 30, 2026March 31, 2026June 30, 2025Assets:Loans $ 5,124,931 $ 4,990,821 $ 4,701,793 Allowance for credit losses (63,001) (61,321) (57,825) Net loans 5,061,930 4,929,500 4,643,968 Loans held for sale - 73 345 Securities AFS 1,051,681 1,088,205 994,990 Equity securities at fair value 4,578 3,666 4,410 Other equity investments 10,412 10,087 14,440 Other earning assets 452,627 269,178 320,830 Cash and due from banks 63,815 91,572 76,556 Premises and equipment 53,065 53,114 52,118 Right of use asset 14,957 14,999 15,210 Goodwill and core deposit intangible 65,490 65,490 65,490 Other assets 210,816 215,284 202,581 Total Assets $ 6,989,371 $ 6,741,168 $ 6,390,938 Liabilities and Equity:Interest bearing checking $ 188,978 $ 190,769 $ 173,795 Savings deposits 2,460,505 2,426,062 2,328,697 CD's >=$100,000 1,107,635 959,996 875,835 Other time deposits 641,281 594,558 596,476 Total interest bearing deposits 4,398,399 4,171,385 3,974,803 Noninterest bearing deposits 1,259,364 1,262,835 1,258,205 Total deposits 5,657,763 5,434,220 5,233,008 Repurchase agreements 297,094 298,721 225,075 Other interest bearing liabilities 64,448 64,512 64,705 Lease liability 16,000 15,995 16,087 Other noninterest bearing liabilities 62,239 56,475 45,194 Total liabilities 6,097,544 5,869,923 5,584,069 Shareholders' equity 891,827 871,245 806,869 Total Liabilities and Equity $ 6,989,371 $ 6,741,168 $ 6,390,938 Ending shares outstanding 18,164 18,156 18,105 30 - 89 days past due loans $ 20,301 $ 24,800 $ 20,055 90 days past due loans 18,951 9,599 8,449 Nonaccrual loans 10,794 11,132 15,937 Foreclosed properties 3,517 3,348 4,857 Community bank leverage ratio 13.89% 13.91% 13.80% Tangible equity to tangible assets ratio 11.93% 12.07% 11.72% FTE employees 970 974 937 For additional information, please contact Mark A. Gooch, Chairman, President, and CEO, Community Trust Bancorp, Inc. at (606) 437-3229 Source: Community Trust Bancorp, Inc.