10-Q 1 ef20034557_10q.htm 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 30, 2024
 
Or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _____________ to _____________

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.)
   
346 North Mayo Trail
P.O. Box 2947
Pikeville, Kentucky
41502
(Address of principal executive offices)
(Zip code)

(606) 432-1414
(Registrant’s telephone number)
 
Securities registered pursuant to Section 12(b) of the Act:
 
Common Stock
(Title of class)

CTBI
The NASDAQ Global Select Market
(Trading symbol)
(Name of exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☑
No

Indicate by check mark whether the registrant has submitted electronically every interactive data file required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☑
No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer
Accelerated Filer  ☑
Non-accelerated Filer 
     
Smaller Reporting Company
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.       

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes 
   No ☑

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Common stock – 18,057,923 shares outstanding at October 31, 2024



CAUTIONARY STATEMENT
REGARDING 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. Community Trust Bancorp, Inc.’s (“CTBI”) 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; and 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.
 
PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

The accompanying information has not been audited by our independent registered public accountants; however, in the opinion of management such information reflects all adjustments necessary for a fair presentation of the results for the interim period.  All such adjustments are of a normal and recurring nature.

The accompanying condensed consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Registrant’s annual report on Form 10-K.  Accordingly, the reader of the Form 10-Q should refer to the Registrant’s Form 10-K for the year ended December 31, 2023 for further information in this regard.

1

Community Trust Bancorp, Inc.
Condensed Consolidated Balance Sheets

(dollars in thousands)
 
(unaudited)
September 30
2024
   
December 31
2023
 
Assets:
           
Cash and due from banks
 
$
85,944
   
$
58,833
 
Interest bearing deposits
    154,996       212,567  
Cash and cash equivalents
   
240,940
     
271,400
 
                 
Certificates of deposit in other banks
   
245
     
245
 
Debt securities available-for-sale at fair value (amortized cost of $1,205,289 and $1,301,244, respectively)
   
1,098,076
     
1,163,724
 
Equity securities at fair value
   
3,266
     
3,158
 
Loans held for sale
   
115
     
152
 
                 
Loans
   
4,350,474
     
4,050,906
 
Allowance for credit losses
   
(53,360
)
   
(49,543
)
Net loans
   
4,297,114
     
4,001,363
 
                 
Premises and equipment, net
   
47,519
     
45,311
 
Operating right-of-use assets
   
11,712
     
12,607
 
Finance right-of-use assets     3,006       3,096  
Federal Home Loan Bank stock
   
5,173
     
4,712
 
Federal Reserve Bank stock
   
4,887
     
4,887
 
Goodwill
   
65,490
     
65,490
 
Bank owned life insurance
   
100,915
     
101,461
 
Mortgage servicing rights
   
7,091
     
7,665
 
Other real estate owned
   
1,344
     
1,616
 
Deferred tax asset
    21,172       28,141  
Accrued interest receivable
   
23,770
     
23,575
 
Other assets
   
31,133
     
31,093
 
Total assets
 
$
5,962,968
   
$
5,769,696
 
                 
Liabilities and shareholders’ equity:
               
Deposits:
               
Noninterest bearing
 
$
1,204,515
   
$
1,260,690
 
Interest bearing
   
3,633,747
     
3,463,932
 
Total deposits
   
4,838,262
     
4,724,622
 
                 
Repurchase agreements
   
233,324
     
225,245
 
Federal funds purchased
   
500
     
500
 
Advances from Federal Home Loan Bank
   
319
     
334
 
Long-term debt
   
64,074
     
64,241
 
Operating lease liability
   
12,088
     
12,958
 
Finance lease liability
   
3,442
     
3,435
 
Accrued interest payable
   
16,304
     
7,389
 
Other liabilities
   
33,893
     
28,764
 
Total liabilities
   
5,202,206
     
5,067,488
 
                 
Shareholders’ equity:
               
Preferred stock, 300,000 shares authorized and unissued
   
-
     
-
 
Common stock, $5.00 par value, shares authorized 25,000,000; shares issued and outstanding 202418,052,147; 202317,999,840
   
90,261
     
89,999
 
Capital surplus
   
233,263
     
231,130
 
Retained earnings
   
517,814
     
484,400
 
Accumulated other comprehensive loss, net of tax
   
(80,576
)
   
(103,321
)
Total shareholders’ equity
   
760,762
     
702,208
 
                 
Total liabilities and shareholders’ equity
 
$
5,962,968
   
$
5,769,696
 

See notes to condensed consolidated financial statements.

2

Community Trust Bancorp, Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
(unaudited)

    Three Months Ended     Nine Months Ended  
   
September 30
   
September 30
 
(in thousands except per share data)
 
2024
   
2023
   
2024
   
2023
 
Interest income:
                       
Interest and fees on loans, including loans held for sale
 
$
70,805
   
$
60,156
   
$
202,785
   
$
167,925
 
Interest and dividends on securities
                               
Taxable
   
6,025
     
6,831
     
19,087
     
20,400
 
Tax exempt
   
623
     
665
     
1,935
     
2,016
 
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
   
180
     
168
     
564
     
514
 
Interest on Federal Reserve Bank deposits
   
2,044
     
1,616
     
6,756
     
4,255
 
Other, including interest on federal funds sold
   
137
     
63
     
337
     
211
 
Total interest income
   
79,814
     
69,499
     
231,464
     
195,321
 
                                 
Interest expense:
                               
Interest on deposits
   
28,800
     
21,733
     
83,620
     
54,586
 
Interest on repurchase agreements and federal funds purchased
   
2,681
     
2,524
     
7,897
     
6,330
 
Interest on advances from Federal Home Loan Bank
    0       954       15       1,004  
Interest on long-term debt
   
1,134
     
1,148