Community Trust Bancorp, Inc. (NASDAQ: CTBI) reports record Q2 2026 profit
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Community Trust Bancorp, Inc. reported record Q2 2026 earnings, with net income of $29.6 million and basic EPS of $1.64, up from $1.38 a year earlier. For the first six months of 2026, net income was $56.8 million, or $3.15 per basic share. Return on average assets reached 1.74% and return on average equity 13.40%, while the efficiency ratio improved to 47.99%. The quarterly dividend was $0.53 per share, and the annualized dividend yield was 2.93%.
Q2 net interest income was $60.9 million, up 3.6% from Q1 and 12.7% from Q2 2025, with a tax-equivalent net interest margin of 3.80%. Noninterest income rose to $17.6 million, 14.2% above the prior quarter and 8.8% above the prior-year quarter. Provision for credit losses was $2.8 million, higher than both comparison periods, and noninterest expense increased to $37.4 million, driven mainly by salaries and employee benefits.
Total assets were $7.0 billion at June 30, 2026. Loans totaled $5.1 billion, up 9.0% from a year earlier, and deposits including repurchase agreements were $6.0 billion, up 9.1%. Net loan charge-offs were $0.9 million for the quarter, an annualized 0.07% of average loans. Nonperforming loans increased to $29.7 million, and nonperforming assets to $33.3 million, while the allowance for credit losses stood at $63.0 million, providing 211.8% coverage of nonperforming loans.
Positive
- Record profitability: Q2 2026 net income reached $29.6 million with basic EPS of $1.64, and year‑to‑date net income rose to $56.8 million, or $3.15 per share, significantly above the prior‑year period.
- Strong core revenue and margins: Q2 net interest income was $60.9 million, up 3.6% sequentially and 12.7% year over year, with tax‑equivalent net interest margin improving to 3.80% and the efficiency ratio strengthening to 47.99%.
- Balanced balance‑sheet growth: Loans reached $5.1 billion, up 9.0% from June 30, 2025, while deposits including repurchase agreements rose to $6.0 billion, up 9.1%, supporting a larger earning‑asset base of $6.5 billion on average.
Negative
- Asset quality pressure: Total nonperforming loans increased to $29.7 million, and nonperforming assets to $33.3 million, both higher than the prior quarter and prior‑year quarter, while reserve coverage declined to 211.8% of nonperforming loans.
- Higher credit and operating costs: Q2 provision for credit losses rose to $2.8 million, above both comparison periods, and total noninterest expense increased to $37.4 million, driven largely by higher employee benefits and salaries.
Filing Explained
June 30, 2026 balance-sheet data show $891.8 million of shareholders’ equity, while a $8.7 million commercial relationship entered the 90-day-past-due category.
The July 15 8-K reports completed results for the quarter and six months ended
Form 8-K is used to report specified material events, and this report furnishes the results under Items 2.02 and 7.01; the filing says the information is not deemed filed for Section 18 purposes or incorporated by reference into other filings unless expressly stated.
The credit-quality detail is mixed: loans 90 days or more past due reached
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q2 2026: $29,623 thousand
Basic EPS Q2 2026: $1.64
Net interest income Q2 2026: $60,889 thousand
+5 more
8 metrics
Net income Q2 2026
$29,623 thousand
Three months ended June 30, 2026
Basic EPS Q2 2026
$1.64
Three months ended June 30, 2026
Net interest income Q2 2026
$60,889 thousand
Three months ended June 30, 2026
Noninterest income Q2 2026
$17,599 thousand
Three months ended June 30, 2026
Total assets
$6,989,371 thousand
As of June 30, 2026
Total loans
$5,124,931 thousand
As of June 30, 2026
Total deposits and repurchase agreements
$5,954,857 thousand
As of June 30, 2026
Nonperforming loans
$29.7 million
As of June 30, 2026; increased versus prior periods
Key Terms
net interest margin, efficiency ratio, provision for credit losses, nonperforming loans, +2 more
6 terms
net interest margin financial
"as our net interest margin increased 1 basis point from prior quarter"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
efficiency ratio financial
"Efficiency ratio | 47.99% | 48.72% | 50.70%"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
provision for credit losses financial
"Our provision for credit losses at $2.8 million for the quarter increased"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
nonperforming loans financial
"Our total nonperforming loans at $29.7 million at June 30, 2026 increased"
Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.
tangible common equity financial
"Tangible common equity | 11.93% | 12.07% | 11.72%"
Tangible common equity is the portion of a company’s net worth that belongs to ordinary shareholders after removing intangible items (like goodwill or patents) and any preferred claims; it’s often expressed on a per-share basis. Think of it as the hard, sellable value left for common owners if you removed non-physical assets and paid off debts—investors use it to judge how much real cushion a company has and whether the stock might be under- or over-valued.
community bank leverage ratio financial
"Community bank leverage ratio | | | | 13.89 %"
Community bank leverage ratio is a regulatory measure that compares a bank’s core capital (its safety cushion) to the size of its balance sheet, showing what share of assets is backed by tangible equity rather than borrowed money. Investors use it like a health check: a higher ratio means the bank has more buffer to absorb losses, support lending and dividends, and face fewer regulatory limits, while a lower ratio signals greater risk.
Earnings Snapshot
Net income Q2 2026: $29.6 million
Quarter and six months ended June 30, 2026
Net income Q2 2026
$29.6 million
Up from $24.9 million in Q2 2025
Basic EPS Q2 2026
$1.64
Up from $1.38 in Q2 2025
Net interest income Q2 2026
$60.9 million
3.6% above prior quarter and 12.7% above prior-year quarter
Noninterest income Q2 2026
$17.6 million
14.2% above prior quarter and 8.8% above prior-year quarter
Total loans
$5.1 billion
9.0% above June 30, 2025
Total deposits and repurchase agreements
$6.0 billion
9.1% above June 30, 2025
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
What were Community Trust Bancorp (CTBI)’s record Q2 2026 earnings?
Community Trust Bancorp (CTBI) reported Q2 2026 net income of $29.6 million, with basic EPS of $1.64. This compares with $24.9 million and $1.38 per share in Q2 2025, reflecting strong year‑over‑year profitability growth.
How did CTBI’s net interest income and margin perform in Q2 2026?
CTBI generated Q2 2026 net interest income of $60.9 million, 3.6% above Q1 and 12.7% above Q2 2025. Tax‑equivalent net interest margin was 3.80%, improving by 1 basis point sequentially and 16 basis points from the prior‑year quarter.
How are Community Trust Bancorp (CTBI)’s loans and deposits trending?
At June 30, 2026, CTBI’s loans totaled $5.1 billion, up 9.0% from June 30, 2025. Deposits, including repurchase agreements, were $6.0 billion, an increase of $496.8 million, or 9.1%, over the same date a year earlier.
What was CTBI’s asset quality and credit loss experience in Q2 2026?
Total nonperforming loans were $29.7 million and nonperforming assets $33.3 million at June 30, 2026, both up versus prior periods. Net loan charge‑offs were $0.9 million, an annualized 0.07% of average loans, with allowance coverage at 211.8% of nonperforming loans.
What return metrics did Community Trust Bancorp (CTBI) achieve in Q2 2026?
For Q2 2026, CTBI posted a return on average assets of 1.74% and a return on average equity of 13.40%. Year‑to‑date, return on average assets was 1.70% and return on average equity 13.01%, indicating solid profitability.
What dividend did CTBI pay in Q2 2026 and what was the yield?
CTBI declared a dividend of $0.53 per share in Q2 2026, matching Q1 and above the $0.47 paid in Q2 2025. The annualized dividend yield to shareholders as of June 30, 2026 was 2.93%.
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)
Commission file number 001-31220
(Exact name of registrant as specified in its charter)
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| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
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| Securities registered pursuant to Section 12(b) of the Act: | |
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| (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 July 15, 2026, Community Trust Bancorp, Inc. issued a press release announcing its financial results for the quarter and six months ended June 30, 2026. 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:
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99.1
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Press Release dated July 15, 2026
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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.
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COMMUNITY TRUST BANCORP, INC.
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Date:
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July 15, 2026
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By:
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/s/ Mark A. Gooch
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Mark A. Gooch
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Chairman, President, and Chief Executive Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
July 15, 2026
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 RECORD earnings for the 2nd quarter 2026
Earnings Summary
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(in thousands except per share data)
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2Q
2026
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1Q
2026 |
2Q
2025
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YTD
2026
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YTD
2025
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Net income
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$29,623
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$27,192
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$24,899
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$56,815
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$46,871
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Earnings per share
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$1.64
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$1.51
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$1.38
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$3.15
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$2.60
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Earnings per share - diluted
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$1.64
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$1.50
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$1.38
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$3.14
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$2.60
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Return on average assets
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1.74%
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1.65%
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1.58%
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1.70%
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1.51%
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Return on average equity
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13.40%
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12.62%
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12.51%
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13.01%
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12.01%
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Efficiency ratio
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47.99%
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48.72%
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50.70%
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48.35%
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51.26%
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Tangible common equity
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11.93%
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12.07%
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11.72%
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Dividends declared per share
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$0.53
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$0.53
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$0.47
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$1.06
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$0.94
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Book value per share
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$49.10
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$47.99
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$44.57
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Weighted average shares
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18,064
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18,049
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18,012
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18,056
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18,004
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Weighted average shares - diluted
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18,099
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18,080
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18,036
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18,090
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18,029
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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.
1
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 $85.0 million, or 10.5%, from June 30, 2025.
2
Net Interest Income
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Percent Change
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|||||||
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2Q 2026
Compared to:
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($ in thousands)
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2Q
2026
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1Q
2026
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2Q
2025
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1Q
2026
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2Q
2025
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YTD
2026
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YTD
2025
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Percent
Change |
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Components of net interest income:
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||||||||
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Income on earning assets
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$91,238
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$87,755
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$85,571
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4.0%
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6.6%
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$178,993
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$167,625
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6.8%
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Expense on interest bearing liabilities
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30,349
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28,973
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31,531
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4.7%
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(3.8)%
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59,322
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62,318
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(4.8)%
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Net interest income
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60,889
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58,782
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54,040
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3.6%
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12.7%
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119,671
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105,307
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13.6%
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TEQ
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304
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317
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283
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(4.0)%
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7.0%
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621
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556
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11.7%
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Net interest income, tax equivalent (non-GAAP)
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$61,193
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$59,099
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$54,323
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3.5%
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12.6%
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$120,292
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$105,863
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13.6%
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Average yield and rates paid:
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Earning assets yield
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5.68%
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5.65%
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5.76%
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0.5%
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(1.3)%
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5.66%
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5.73%
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(1.2)%
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Rate paid on interest bearing liabilities
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2.64%
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2.61%
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3.00%
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1.0%
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(11.9)%
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2.63%
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3.01%
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(12.8)%
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Gross interest margin
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3.04%
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3.04%
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2.76%
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(0.2)%
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10.2%
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3.03%
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2.72%
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11.0%
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Net interest margin
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3.80%
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3.79%
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3.64%
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0.2%
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4.3%
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3.79%
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3.61%
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5.1%
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Average balances:
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Investment securities
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$1,081,411
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$1,113,988
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$1,002,412
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(2.9)%
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7.9%
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$1,097,610
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$1,024,062
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7.2%
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Loans
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$5,051,165
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$4,934,257
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$4,668,001
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2.4%
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8.2%
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$4,993,034
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$4,600,919
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8.5%
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Earning assets
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$6,464,479
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$6,327,329
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$5,983,093
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2.2%
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8.0%
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$6,396,283
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$5,915,965
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8.1%
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Interest-bearing liabilities
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$4,610,459
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$4,494,829
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$4,215,573
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2.6%
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9.4%
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$4,552,963
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$4,177,225
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9.0%
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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.
3
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 $0.6 million below same period prior year.
Noninterest Income
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Percent Change
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2Q 2026
Compared to:
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($ in thousands)
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2Q
2026
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1Q
2026
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2Q
2025
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1Q
2026
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2Q
2025
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YTD
2026
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YTD
2025
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Percent
Change |
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Deposit related fees
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$7,657
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$7,155
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$7,350
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7.0%
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4.2%
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$14,812
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$14,172
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4.5%
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Trust and wealth management income
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4,724
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4,462
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4,092
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5.9%
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15.4%
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9,186
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8,073
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13.8%
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Gains on sales of loans
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61
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51
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77
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18.7%
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(21.0)%
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112
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124
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(9.8)%
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Loan related fees
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1,146
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1,039
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1,249
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10.2%
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(8.3)%
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2,185
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2,214
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(1.3)%
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Bank owned life insurance revenue
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1,188
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1,714
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1,102
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(30.7)%
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7.9%
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2,902
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2,137
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35.8%
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Brokerage revenue
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528
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520
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526
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1.5%
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0.3%
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1,048
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1,020
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2.8%
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Other
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2,295
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473
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1,775
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385.6%
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29.3%
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2,768
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3,328
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(16.8)%
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Total noninterest income
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$17,599
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$15,414
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$16,171
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14.2%
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8.8%
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$33,013
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$31,068
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6.3%
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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 $1.9 million, or 6.3%, above prior year same period.
4
Noninterest Expense
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Percent Change
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2Q 2026
Compared to:
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($ in thousands)
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2Q
2026
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1Q
2026
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2Q
2025
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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 $4.0 million, or 5.8%, above prior year same period.
5
Balance Sheet Review
Total Loans
|
Percent Change
|
|||||
|
2Q 2026 Compared to:
|
|||||
|
($ 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%
|
|||
6
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
|
7
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.
8
| Community Trust Bancorp, Inc. | |||||||||||||||||||||
| Financial Summary (Unaudited) | |||||||||||||||||||||
| June 30, 2026 | |||||||||||||||||||||
| (in thousands except per share data and # of employees) | |||||||||||||||||||||
| Three | Three | Three | Six | Six | |||||||||||||||||
| Months | Months | Months | Months | Months | |||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | |||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||||||
| Interest 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 | |||||||||||
9
| Community Trust Bancorp, Inc. | |||||||||||||||||||||
| Financial Summary (Unaudited) | |||||||||||||||||||||
| June 30, 2026 | |||||||||||||||||||||
| (in thousands except per share data and # of employees) | |||||||||||||||||||||
| As of | As of | As of | |||||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||
| Assets: | |||||||||||||||||||||
| 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 | ||||||||||||||||||
10