October 16, 2024

FOR ADDITIONAL INFORMATION, PLEASE CONTACT MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 434-4331

Pikeville, Kentucky:

COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE 3RD QUARTER 2024

Earnings Summary

Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2024 of $22.1 million, or $1.23 per basic share, compared to $19.5 million, or $1.09 per basic share, earned during the second quarter 2024 and $20.6 million, or $1.15 per basic share, earned during the third quarter 2023.  Total revenue for the quarter was $1.4 million above prior quarter and $4.1 million above prior year same quarter.  Net interest revenue for the quarter increased $1.5 million compared to prior quarter and $4.1 million compared to prior year same quarter, and noninterest income decreased $0.1 million compared to prior quarter but increased $0.1 million compared to prior year same quarter.  Our provision for credit losses for the quarter decreased $0.2 million from prior quarter but increased $0.9 million from prior year same quarter.  Noninterest expense increased $0.1 million compared to prior quarter and $1.7 million compared to prior year same quarter.  Net income for the nine months ended September 30, 2024 was $60.3 million, or $3.36 per basic share, compared to $59.3 million, or $3.32 per basic share, for the nine months ended September 30, 2023.

3rd Quarter 2024 Highlights

❖	Net interest income for the quarter of $47.2 million was $1.5 million, or 3.3%, above prior quarter and $4.1 million, or 9.4%, above prior year same quarter, as our net interest margin increased 1 basis point from prior quarter and 12 basis points from prior year same quarter.

❖	Provision for credit losses at $2.7 million for the quarter decreased $0.2 million from prior quarter but increased $0.9 million from prior year same quarter.

❖	Noninterest income for the quarter ended September 30, 2024 of $15.6 million was $0.1 million, or 0.9%, below prior quarter but $0.1 million, or 0.4%, above prior year same quarter.

❖	Noninterest expense for the quarter ended September 30, 2024 of $32.5 million was $0.1 million, or 0.3%, above prior quarter and $1.7 million, or 5.4%, above prior year same quarter.

❖	Our loan portfolio at $4.4 billion increased $89.2 million, an annualized 8.3%, from June 30, 2024 and $365.5 million, or 9.2%, from September 30, 2023.

❖	We had net loan charge-offs of $1.5 million, or an annualized 0.14% of average loans, for the third quarter 2024 compared to $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 and $1.2 million, or an annualized 0.12% of average loans, for the third quarter 2023.

❖	Our total nonperforming loans increased to $25.1 million at September 30, 2024 from $19.8 million at June 30, 2024 and $13.0 million at September 30, 2023.  Nonperforming assets at $26.4 million increased $5.0 million from June 30, 2024 and $11.3 million from September 30, 2023.

❖	Deposits, including repurchase agreements, at $5.1 billion increased $110.2 million, or an annualized 8.8%, from June 30, 2024 and $211.1 million, or 4.3%, from September 30, 2023.

❖	Shareholders’ equity at $760.8 million increased $41.4 million, or an annualized 22.9%, during the quarter and $107.7 million, or 16.5%, from September 30, 2023.

Net Interest Income

Net interest income for the quarter of $47.2 million was $1.5 million, or 3.3%, above prior quarter and $4.1 million, or 9.4%, above prior year same quarter.  Our net interest margin, on a fully tax equivalent basis, at 3.39% increased 1 basis point from prior quarter and 12 basis points from prior year same quarter.  Our quarterly average earning assets increased $100.3 million from prior quarter and $295.6 million from prior year same quarter.  Our yield on average earning assets increased 6 basis points from prior quarter and 47 basis points from prior year same quarter, while our cost of funds increased 6 basis points from prior quarter and 43 basis points from prior year same quarter.  Net interest income for the nine months ended September 30, 2024 was $136.5 million compared to $130.1 million for the nine months ended September 30, 2023.

Our ratio of average loans to deposits, including repurchase agreements, was 85.8% for the quarter ended September 30, 2024 compared to 84.5% for the quarter ended June 30, 2024 and 83.2% for the quarter ended September 30, 2023.

Noninterest Income

Noninterest Expense

Balance Sheet Review

Total Loans

Total Deposits and Repurchase Agreements

CTBI’s total assets at $6.0 billion as of September 30, 2024 increased $158.6 million, or 10.9% annualized, from June 30, 2024 and $328.0 million, or 5.8%, from September 30, 2023.  Loans outstanding at $4.4 billion increased $89.2 million, an annualized 8.3%, from June 30, 2024 and $365.5 million, or 9.2%, from September 30, 2023.  The increase in loans from prior quarter included a $62.3 million increase in the commercial loan portfolio and a $33.7 million increase in the residential loan portfolio, partially offset by a $3.5 million decrease in the indirect consumer loan portfolio and a $3.3 million decrease in the consumer direct loan portfolio.  CTBI’s investment portfolio increased $8.0 million, or an annualized 2.9%, from June 30, 2024 but decreased $37.4 million, or 3.3%, from September 30, 2023.  Deposits in other banks increased $48.3 million from prior quarter and $5.0 million from September 30, 2023.  Deposits, including repurchase agreements, at $5.1 billion increased $110.2 million, or an annualized 8.8%, from June 30, 2024 and $211.1 million, or 4.3%, from September 30, 2023.  CTBI is not dependent on any one customer or group of customers for their source of deposits.  As of September 30, 2024, no one customer accounted for more than 3% of our $5.1 billion in deposits.  Only two customer relationships accounted for more than 1% each.

Shareholders’ equity at $760.8 million increased $41.4 million, or an annualized 22.9%, during the quarter and $107.7 million, or 16.5%, from September 30, 2023.  Net unrealized losses on securities, net of deferred taxes, were $80.6 million at September 30, 2024, compared to $107.1 million at June 30, 2024 and $141.4 million at September 30, 2023.  CTBI’s annualized dividend yield to shareholders as of September 30, 2024 was 3.79%.

Asset Quality

Our total nonperforming loans increased to $25.1 million at September 30, 2024 from $19.8 million at June 30, 2024 and $13.0 million at September 30, 2023.  Accruing loans 90+ days past due at $19.1 million increased $4.4 million from prior quarter and $11.0 million from September 30, 2023.  Nonaccrual loans at $6.0 million increased $0.9 million from prior quarter and $1.1 million from September 30, 2023.  Accruing loans 30-89 days past due at $20.6 million decreased $3.5 million from prior quarter but increased $8.5 million from September 30, 2023.  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 $1.5 million, or an annualized 0.14% of average loans, for the third quarter 2024 compared to $1.4 million, or an annualized 0.13% of average loans, for the second quarter 2024 and $1.2 million, or an annualized 0.12% of average loans, for the third quarter 2023.  Of the net charge-offs for the quarter, $1.2 million were in indirect consumer loans, $0.2 million were in direct consumer loans, and $0.1 million were in residential loans.  Year-to-date net loan charge-offs of an annualized 0.14% of average loans are in line with management’s expectations.

Allowance for Credit Losses

Our provision for credit losses at $2.7 million for the quarter decreased $0.2 million from prior quarter but increased $0.9 million from prior year same quarter.  Of the provision for the quarter, $1.1 million was allotted to fund loan growth.  Year-to-date provision for credit losses increased $3.4 million from the nine months ended September 30, 2023.  Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2024 was 212.7% compared to 263.0% at June 30, 2024 and 375.2% at September 30, 2023.  Our credit loss reserve as a percentage of total loans outstanding at September 30, 2024 was 1.23% compared to 1.22% at June 30, 2024 and September 30, 2023.

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; 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.

Community Trust Bancorp, Inc., with assets of $6.0 billion, is headquartered in Pikeville, Kentucky and has 72 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.

Additional information follows.

Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
September 30, 2024
(in thousands except per share data and # of employees)
		Three				Three				Three				Nine				Nine
		Months				Months				Months				Months				Months
		Ended				Ended				Ended				Ended				Ended
		September 30, 2024				June 30, 2024				September 30, 2023				September 30, 2024				September 30, 2023
Interest income		$	79,814			$	76,648			$	69,499			$	231,464			$	195,321
Interest expense			32,615				30,970				26,359				94,996				65,186
Net interest income			47,199				45,678				43,140				136,468				130,135
Loan loss provision			2,736				2,972				1,871				8,364				4,996
Gains on sales of loans			80				119				105				244				341
Deposit related fees			7,886				7,308				7,823				22,205				22,623
Trust revenue			3,707				3,736				3,277				10,960				9,707
Loan related fees			813				1,320				1,283				3,485				3,325
Securities gains (losses)			213				(474	)			355				110				738
Other noninterest income			2,864				3,699				2,653				9,401				7,200
Total noninterest income			15,563				15,708				15,496				46,405				43,934
Personnel expense			19,521				19,591				18,053				59,234				55,266
Occupancy and equipment			3,072				3,089				2,875				9,189				8,798
Data processing expense			2,804				2,669				2,410				7,991				7,096
FDIC insurance premiums			629				645				612				1,916				1,828
Other noninterest expense			6,486				6,428				6,897				18,824				20,774
Total noninterest expense			32,512				32,422				30,847				97,154				93,762
Net income before taxes			27,514				25,992				25,918				77,355				75,311
Income taxes			5,372				6,493				5,290				17,035				15,966
Net income		$	22,142			$	19,499			$	20,628			$	60,320			$	59,345
Memo: TEQ interest income		$	80,094			$	76,940			$	69,797			$	232,330			$	196,215
Average shares outstanding			17,962				17,939				17,893				17,942				17,882
Diluted average shares outstanding			17,991				17,959				17,904				17,965				17,892
Basic earnings per share		$	1.23			$	1.09			$	1.15			$	3.36			$	3.32
Diluted earnings per share		$	1.23			$	1.09			$	1.15			$	3.36			$	3.32
Dividends per share		$	0.47			$	0.46			$	0.46			$	1.39			$	1.34
Average balances:
Loans		$	4,300,652			$	4,191,992			$	3,952,096			$	4,196,884			$	3,843,441
Earning assets			5,570,160				5,469,813				5,274,542				5,499,608				5,199,072
Total assets			5,891,157				5,795,937				5,603,586				5,824,780				5,524,343
Deposits, including repurchase agreements			5,014,506				4,959,382				4,750,448				4,977,040				4,722,207
Interest bearing liabilities			3,859,978				3,776,362				3,567,343				3,803,491				3,455,666
Shareholders' equity			748,098				711,331				665,129				722,683				660,063
Performance ratios:
Return on average assets			1.50	%			1.35	%			1.46	%			1.38	%			1.44	%
Return on average equity			11.77	%			11.03	%			12.30	%			11.15	%			12.02	%
Yield on average earning assets (tax equivalent)			5.72	%			5.66	%			5.25	%			5.64	%			5.05	%
Cost of interest bearing funds (tax equivalent)			3.36	%			3.30	%			2.93	%			3.34	%			2.52	%
Net interest margin (tax equivalent)			3.39	%			3.38	%			3.27	%			3.34	%			3.37	%
Efficiency ratio (tax equivalent)			51.75	%			52.17	%			52.66	%			52.91	%			53.82	%
Loan charge-offs		$	2,736			$	2,836			$	2,012			$	8,239			$	5,730
Recoveries			(1,212	)			(1,441	)			(842	)			(3,692	)			(3,472	)
Net charge-offs		$	1,524			$	1,395			$	1,170			$	4,547			$	2,258
Market Price:
High		$	52.22			$	44.32			$	39.86			$	52.22			$	47.35
Low		$	41.50			$	39.28			$	33.48			$	38.44			$	32.68
Close		$	49.66			$	43.66			$	34.26			$	49.66			$	34.26

Community Trust Bancorp, Inc.

Financial Summary (Unaudited)

September 30, 2024

(in thousands except per share data and # of employees)

		As of				As of				As of
		September 30, 2024				June 30, 2024				September 30, 2023
Assets:
Loans		$	4,350,474			$	4,261,247			$	3,985,019
Loan loss reserve			(53,360	)			(52,148	)			(48,719	)
Net loans			4,297,114				4,209,099				3,936,300
Loans held for sale			115				350				-
Securities AFS			1,098,076				1,090,322				1,135,878
Equity securities at fair value			3,266				3,054				2,900
Other equity investments			10,060				14,022				12,557
Other earning assets			157,092				108,823				152,064
Cash and due from banks			85,944				54,935				69,291
Premises and equipment			47,519				47,178				44,962
Right of use asset			14,718				15,121				16,100
Goodwill and core deposit intangible			65,490				65,490				65,490
Other assets			183,574				195,945				199,390
Total Assets		$	5,962,968			$	5,804,339			$	5,634,932
Liabilities and Equity:
Interest bearing checking		$	156,249			$	138,767			$	125,107
Savings deposits			2,160,691				2,191,831				1,969,499
CD's >=$100,000			753,253				637,206				666,808
Other time deposits			563,554				524,480				552,289
Total interest bearing deposits			3,633,747				3,492,284				3,313,703
Noninterest bearing deposits			1,204,515				1,241,514				1,314,189
Total deposits			4,838,262				4,733,798				4,627,892
Repurchase agreements			233,324				227,576				232,577
Other interest bearing liabilities			64,893				64,954				65,136
Lease liability			15,530				15,880				16,801
Other noninterest bearing liabilities			50,197				42,808				39,492
Total liabilities			5,202,206				5,085,016				4,981,898
Shareholders' equity			760,762				719,323				653,034
Total Liabilities and Equity		$	5,962,968			$	5,804,339			$	5,634,932
Ending shares outstanding			18,052				18,026				17,991
30 - 89 days past due loans		$	20,578			$	24,099			$	12,098
90 days past due loans			19,111				14,703				8,069
Nonaccrual loans			5,980				5,127				4,916
Foreclosed properties			1,344				1,626				2,175
Community bank leverage ratio			13.99	%			13.90	%			13.78	%
Tangible equity to tangible assets ratio			11.79	%			11.39	%			10.55	%
FTE employees			943				930				951