Community Trust Bancorp Inc.

07/15/2026 | Press release | Distributed by Public on 07/15/2026 06:20

Community Trust Bancorp, Inc. reports RECORD earnings for the 2nd quarter 2026 (Form 8-K)

Community Trust Bancorp, Inc. reports RECORD earnings for the 2nd quarter 2026
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.
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 $85.0 million, or 10.5%, from June 30, 2025.
2
Net Interest Income
Percent Change
2Q 2026
Compared to:
($ 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.
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 $0.6 million below same period prior year.
Noninterest Income
Percent Change
2Q 2026
Compared to:
($ 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 $1.9 million, or 6.3%, above prior year same period.
4
Noninterest Expense
Percent Change
2Q 2026
Compared to:
($ 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 $4.0 million, or 5.8%, above prior year same period.
5
Balance Sheet Review
Total Loans
Percent Change
2Q 2026 Compared to:
($ 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
Community Trust Bancorp Inc. published this content on July 15, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on July 15, 2026 at 12:20 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]