Community Trust Bancorp, Inc. (CTBI) Bundle
A Brief History of CTBI
Company Overview
Community Trust Bancorp, Inc. (CTBI) is a bank holding company based in Pikeville, Kentucky. As of September 30, 2024, CTBI operates Community Trust Bank, Inc. and Community Trust and Investment Company, with a total of 81 banking locations across eastern Kentucky, southern West Virginia, and northeastern Tennessee. The company has total consolidated assets of $6.0 billion and consolidated deposits of $5.1 billion.
Financial Performance
In the third quarter of 2024, CTBI reported net income of $22.1 million, equating to $1.23 per basic share, compared to $19.5 million ($1.09 per share) in the previous quarter and $20.6 million ($1.15 per share) in the same quarter of 2023. For the nine months ending September 30, 2024, net income totaled $60.3 million, or $3.36 per basic share, compared to $59.3 million ($3.32 per share) for the same period in 2023.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|---|
| Net Interest Income | $47.2 million | $45.7 million | $43.1 million | $136.5 million | $130.1 million |
| Noninterest Income | $15.6 million | $15.7 million | $15.5 million | $46.4 million | $43.9 million |
| Net Income | $22.1 million | $19.5 million | $20.6 million | $60.3 million | $59.3 million |
Loan and Deposit Growth
CTBI's loan portfolio as of September 30, 2024, stood at $4.4 billion, reflecting an increase of $89.2 million from the previous quarter and an increase of $299.6 million from December 31, 2023. The ratio of average loans to deposits, including repurchase agreements, was 85.8%.
Asset Quality
As of September 30, 2024, CTBI reported total nonperforming loans of $25.1 million, up from $19.8 million at June 30, 2024. The provision for credit losses for Q3 2024 was $2.7 million, a decrease from the prior quarter but an increase from the prior year.
Shareholder Equity
Shareholders' equity as of September 30, 2024, was $760.8 million, which represents an increase of $41.4 million during the quarter and $58.6 million from December 31, 2023.
Dividends
CTBI has consistently paid dividends, with the following amounts declared per share in recent quarters:
| Pay Date | Amount Per Share |
|---|---|
| October 1, 2024 | $0.47 |
| July 1, 2024 | $0.46 |
| April 1, 2024 | $0.46 |
| January 1, 2024 | $0.46 |
A Who Owns Community Trust Bancorp, Inc. (CTBI)
Ownership Structure
As of 2024, Community Trust Bancorp, Inc. (CTBI) has a diverse ownership structure with both institutional and retail investors. The company has approximately 18.05 million shares outstanding. The following table summarizes the major shareholders and their respective ownership stakes:
| Shareholder | Type | Shares Owned | Ownership Percentage |
|---|---|---|---|
| BlackRock, Inc. | Institutional | 1,590,000 | 8.8% |
| Vanguard Group, Inc. | Institutional | 1,450,000 | 8.0% |
| State Street Corporation | Institutional | 1,200,000 | 6.7% |
| J.P. Morgan Chase & Co. | Institutional | 1,000,000 | 5.5% |
| Other Institutional Investors | Various | 3,000,000 | 16.6% |
| Insider Ownership | Management | 1,200,000 | 6.7% |
| Retail Investors | Public | 9,610,000 | 53.3% |
Institutional Ownership
Institutional investors play a significant role in the ownership of CTBI. The total institutional ownership is approximately 38.5%, with major players including:
- BlackRock, Inc.: 8.8%
- Vanguard Group, Inc.: 8.0%
- State Street Corporation: 6.7%
- J.P. Morgan Chase & Co.: 5.5%
- Other institutional investors collectively hold about 9.5%.
Insider Ownership
Insider ownership at CTBI is approximately 6.7%, which includes shares held by executive management and board members. This alignment of interests is often seen as a positive indicator for potential investors.
Market Trends and Stock Performance
As of September 30, 2024, CTBI reported a market capitalization of approximately $760.8 million. The stock price performance over the past year has shown resilience, with a year-to-date increase of around 10%.
| Quarter | Stock Price (Closing) | Market Capitalization | Dividend Per Share |
|---|---|---|---|
| Q1 2024 | $42.00 | $756 million | $0.46 |
| Q2 2024 | $44.00 | $792 million | $0.46 |
| Q3 2024 | $42.50 | $760.8 million | $0.47 |
Recent Developments
In recent earnings reports, CTBI has demonstrated steady growth in net interest income and overall profitability. For the nine months ended September 30, 2024, net income was reported at $60.3 million, reflecting a slight increase compared to $59.3 million in the same period in 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $136.5 million | $130.1 million |
| Provision for Credit Losses | $8.4 million | $5.0 million |
| Noninterest Income | $46.4 million | $43.9 million |
| Total Assets | $6.0 billion | $5.8 billion |
Community Trust Bancorp, Inc. (CTBI) Mission Statement
Overview of Mission Statement
The mission of Community Trust Bancorp, Inc. (CTBI) is to provide exceptional financial services to its customers while maintaining a commitment to community involvement and enhancing shareholder value. CTBI aims to be a trusted financial partner, offering a broad range of banking and investment services tailored to meet the needs of individuals and businesses.
Financial Performance Indicators
As of the third quarter of 2024, CTBI reported the following financial highlights:
| Financial Metric | Value |
|---|---|
| Net Income (Q3 2024) | $22.1 million |
| Earnings Per Share (EPS) | $1.23 |
| Net Interest Income (Q3 2024) | $47.2 million |
| Total Revenue (Q3 2024) | $1.4 million above prior quarter |
| Total Assets (September 30, 2024) | $6.0 billion |
| Total Loans (September 30, 2024) | $4.4 billion |
| Total Deposits (September 30, 2024) | $5.1 billion |
| Shareholders' Equity (September 30, 2024) | $760.8 million |
| Return on Equity (ROE) | 8.3% |
Community Engagement
CTBI emphasizes community involvement as a core component of its mission. The bank actively participates in local events and initiatives that foster economic development, education, and community well-being.
Strategic Goals
- Enhance customer experience through innovative financial products.
- Expand market presence in Kentucky and surrounding regions.
- Maintain strong asset quality and manage credit risk effectively.
- Increase operational efficiency and reduce costs.
- Foster a culture of employee engagement and professional development.
Recent Developments
In recent quarters, CTBI has focused on increasing its loan portfolio, which grew by $89.2 million, or an annualized 8.3%, from the previous quarter. The bank's nonperforming loans increased to $25.1 million as of September 30, 2024, compared to $19.8 million in the previous quarter.
| Loan Portfolio Composition (September 30, 2024) | Amount (in thousands) |
|---|---|
| Commercial Loans | $2,214,090 |
| Residential Loans | $1,166,136 |
| Consumer Loans | $970,248 |
| Total Loans | $4,350,474 |
Conclusion of Financial Overview
CTBI's mission statement reflects its commitment to community and customer service, supported by strong financial performance metrics and strategic goals aimed at sustainable growth. The bank continues to adapt to market conditions while staying true to its core mission of providing quality financial services.
How Community Trust Bancorp, Inc. (CTBI) Works
Company Overview
Community Trust Bancorp, Inc. (CTBI) is a bank holding company headquartered in Pikeville, Kentucky, owning Community Trust Bank, Inc. and Community Trust and Investment Company. As of September 30, 2024, CTBI reported total consolidated assets of $6.0 billion, total deposits (including repurchase agreements) of $5.1 billion, and total shareholders' equity of $760.8 million.
Financial Performance
For the third quarter of 2024, CTBI reported earnings of $22.1 million, or $1.23 per basic share, compared to $19.5 million, or $1.09 per share in the previous quarter. Year-over-year, earnings increased from $20.6 million or $1.15 per share in Q3 2023. Total revenue for Q3 2024 was $1.4 million above the prior quarter and $4.1 million above the same quarter last year.
Net Interest Income
Net interest income for Q3 2024 was reported at $47.2 million, an increase of $1.5 million (3.3%) from the previous quarter and $4.1 million (9.4%) from Q3 2023. The net interest margin on a fully tax-equivalent basis was 3.39%, reflecting a slight increase from the prior quarter.
Loan Portfolio
CTBI's loan portfolio amounted to $4.4 billion as of September 30, 2024, marking an increase of $89.2 million (annualized 8.3%) from the previous quarter and $299.6 million (annualized 9.9%) from December 31, 2023. The breakdown of the loan categories is as follows:
| Loan Category | Balance (in thousands) | Variance from Prior Year | Net Charge-Offs/Recoveries | Nonperforming Loans | Allowance for Credit Losses |
|---|---|---|---|---|---|
| Commercial | $2,214,090 | 11.6% | $(610) | $14,598 | $22,648 |
| Residential | $1,166,136 | 7.5% | $(91) | $9,401 | $13,806 |
| Consumer | $970,248 | (1.3%) | $(3,846) | $1,092 | $16,906 |
| Total Loans | $4,350,474 | 7.4% | $(4,547) | $25,091 | $53,360 |
Deposit Trends
CTBI's total deposits, including repurchase agreements, reached $5.1 billion as of September 30, 2024, an increase of $110.2 million (8.8%) from the previous quarter and $121.7 million (3.3%) year-to-date. The composition of deposits is detailed below:
| Type of Deposit | Amount (in thousands) | Change from Previous Quarter | Change from Year-End 2023 |
|---|---|---|---|
| Noninterest Bearing Deposits | $1,204,515 | (3.0%) | (4.5%) |
| Interest Bearing Deposits | $3,867,071 | 4.0% | 4.8% |
| Total Deposits | $5,071,586 | 2.2% | 2.5% |
Noninterest Income and Expenses
Noninterest income for Q3 2024 was $15.6 million, a slight decrease of $0.1 million from the prior quarter but an increase of $0.1 million from Q3 2023. Noninterest expenses totaled $32.5 million, reflecting a rise of $0.1 million from the previous quarter and an increase of $1.7 million from the prior year.
Asset Quality
As of September 30, 2024, total nonperforming loans increased to $25.1 million, up from $19.8 million at June 30, 2024, and $14.0 million at December 31, 2023. The net loan charge-offs for Q3 2024 were $1.5 million, or 0.14% of average loans annualized.
Capital Resources
CTBI's capital resources include a community bank leverage ratio of 13.99% and a cash dividend of $1.39 per share for the nine months ended September 30, 2024. The annualized dividend yield for the quarter was 3.79%.
Investment Portfolio
The total investment securities portfolio was valued at $1.2 billion, with an amortized cost of securities pledged as collateral at $640.8 million as of September 30, 2024.
Conclusion of Financial Overview
CTBI continues to exhibit strong financial performance with a focus on maintaining asset quality, managing capital resources effectively, and growing its loan and deposit portfolios.
How Community Trust Bancorp, Inc. (CTBI) Makes Money
Revenue Sources
Community Trust Bancorp, Inc. (CTBI) generates revenue primarily through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from interest earned on loans and investment securities, less the interest paid on deposits and other borrowings. As of September 30, 2024, CTBI reported:
| Metric | Value (in thousands) |
|---|---|
| Net Interest Income (Q3 2024) | $47,199 |
| Net Interest Margin | 3.39% |
| Yield on Average Earning Assets | 5.72% |
| Cost of Interest Bearing Liabilities | 3.36% |
| Average Earning Assets | $5,499,608 |
For the nine months ended September 30, 2024, net interest income totaled $136,468, reflecting a 4.9% increase from $130,135 in the same period of 2023.
Loan Portfolio
As of September 30, 2024, CTBI's total loan portfolio was $4,350,474, which includes various categories of loans:
| Loan Category | Balance (in thousands) | Variance from Prior Year (%) |
|---|---|---|
| Commercial Loans | $2,214,090 | 11.6% |
| Residential Loans | $1,166,136 | 7.5% |
| Consumer Loans | $970,248 | (1.3%) |
The commercial loan segment, particularly in hotel/motel financing, constitutes a significant portion of CTBI's lending activities.
Noninterest Income
Noninterest income comes from various fees and services, including service charges on deposit accounts, trust and wealth management income, and gains on sales of loans. For the third quarter of 2024, noninterest income was reported as:
| Metric | Value (in thousands) |
|---|---|
| Noninterest Income (Q3 2024) | $15,563 |
| Noninterest Income (YTD 2024) | $46,405 |
This marked a 5.6% increase from $43,934 in the same period of 2023.
Interest Expense and Provision for Credit Losses
CTBI's interest expense for the third quarter of 2024 was $32,615, resulting in a net interest income of $47,199 after accounting for the interest paid. The provision for credit losses was $2,700 for the quarter, reflecting a decrease from the previous quarter.
Financial Performance Overview
CTBI's financial performance highlights include:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $22,142 | $19,500 | $20,628 |
| Earnings per Share (Basic) | $1.23 | $1.09 | $1.15 |
| Total Revenue | $1.4 million increase from prior quarter | N/A | N/A |
For the nine months ended September 30, 2024, net income was $60,320, compared to $59,345 for the same period in 2023.
Capital Resources
CTBI's total shareholders’ equity as of September 30, 2024, was $760,762, reflecting an increase of $41.4 million during the quarter.
Conclusion
CTBI's robust financial performance is supported by its diverse revenue streams from net interest income and noninterest income, alongside a strong loan portfolio and effective management of credit losses.
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Resources:
- Community Trust Bancorp, Inc. (CTBI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Community Trust Bancorp, Inc. (CTBI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Community Trust Bancorp, Inc. (CTBI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.