Company Announcements

Community Trust Bancorp, Inc. Reports Record Earnings for the Second Consecutive Quarter 2021

PIKEVILLE, Ky.--(BUSINESS WIRE)--Jul. 21, 2021-- Community Trust Bancorp, Inc. (NASDAQ:CTBI):

Earnings Summary

 

 

 

 

 

(in thousands except per share data)

2Q
2021

 

1Q
2021

 

2Q
2020

YTD
2021

YTD
2020

Net income

$

23,931

 

$

23,618

 

$

19,652

 

$

47,549

 

$

26,231

 

Earnings per share

$

1.35

 

$

1.33

 

$

1.11

 

$

2.67

 

$

1.48

 

Earnings per share - diluted

$

1.34

 

$

1.33

 

$

1.11

 

$

2.67

 

$

1.48

 

 

 

 

 

 

 

Return on average assets

 

1.76

%

 

1.84

%

 

1.63

%

 

1.80

%

 

1.14

%

Return on average equity

 

14.20

%

 

14.48

%

 

12.66

%

 

14.34

%

 

8.45

%

Efficiency ratio

 

53.17

%

 

50.37

%

 

55.17

%

 

51.76

%

 

57.12

%

Tangible common equity

 

11.39

%

 

11.27

%

 

11.42

%

 

 

 

 

 

 

 

 

Dividends declared per share

$

0.385

 

$

0.385

 

$

0.380

 

$

0.770

 

$

0.760

 

Book value per share

$

38.36

 

$

37.14

 

$

35.51

 

 

 

 

 

 

 

 

 

Weighted average shares

 

17,784

 

 

17,774

 

 

17,739

 

 

17,779

 

 

17,746

 

Weighted average shares - diluted

 

17,800

 

 

17,787

 

 

17,742

 

 

17,794

 

 

17,753

 

Community Trust Bancorp, Inc. (NASDAQ:CTBI) experienced record earnings for the second consecutive quarter as our loan portfolio quality and the industry outlook continue to see improvement, allowing a reduction in credit loss reserves. Earnings for the second quarter 2021 were a record $23.9 million, or $1.35 per basic share, compared to $23.6 million, or $1.33 per basic share, earned during the first quarter 2021 and $19.7 million, or $1.11 per basic share, earned during the second quarter 2020. Earnings for the six months ended June 30, 2021 were $47.5 million compared to $26.2 million for the six months ended June 30, 2020. Deposit growth as a result of the government stimulus, along with lack of loan growth, continues to put pressure on our net interest margin. Total revenue declined from prior quarter as a result of the continued pressure on our net interest margin, but noninterest income remained steady.

2nd Quarter 2021 Highlights

  • Net interest income for the quarter of $40.0 million was $0.2 million, or 0.6%, below prior quarter but $1.5 million, or 4.0%, above second quarter 2020.
  • We recovered $4.3 million of our provision for credit losses during the quarter ended June 30, 2021. The reduction to our allowance for credit losses was the result of continued positive credit metrics, the lack of pandemic related losses provided for in the first quarter 2020, and an improvement in the industry outlook for certain industries included in our concentrations of credit. We also recognized a recapture of allowance for credit losses in the first quarter 2021 and the second quarter 2020 with credits to the provision for credit losses of $2.5 million and $49 thousand, respectively.
  • Our loan portfolio decreased $90.3 million, an annualized 10.2%, during the quarter and $90.3 million, or 2.6%, from June 30, 2020.
  • CTBI experienced continued improvement in loan losses, as we saw a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021, compared to net loan charge-offs of $0.2 million, or 0.02% of average loans annualized, for the quarter ended March 31, 2021 and $2.8 million, or 0.32% annualized, for the second quarter 2020.
  • Asset quality remains strong from prior quarter as our nonperforming loans, excluding troubled debt restructurings, remained relatively flat from $21.0 million at March 31, 2021 to $21.1 million at June 30, 2021, down $15.0 million from June 30, 2020. Nonperforming assets at $27.0 million decreased $0.3 million from March 31, 2021 and $26.8 million from June 30, 2020.
  • Deposits, including repurchase agreements, increased $106.3 million, an annualized 9.3%, during the quarter and $426.0 million, or 10.0%, from June 30, 2020.
  • Noninterest income for the quarter ended June 30, 2021 of $15.5 million decreased slightly from prior quarter by $0.1 million, or 0.4%, but increased $2.6 million, or 20.5%, from prior year same quarter.
  • Noninterest expense for the quarter ended June 30, 2021 of $29.5 million increased $1.2 million, or 4.2%, from prior quarter, and $1.6 million, or 5.7%, from prior year same quarter.

COVID-19

We continue working with our customers through the COVID-19 pandemic. At June 30, 2021, the number of customers with CARES Act deferrals reduced to 60 for a total outstanding amount of $28.6 million. The majority of our CARES Act deferrals have been 90 day deferrals. Total outstanding deferrals include 21 commercial loan deferrals with a total outstanding amount of $26.0 million, 29 residential loan deferrals with a total outstanding amount of $2.4 million, and 10 consumer loan deferrals with a total outstanding amount of $0.2 million. These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans disclosed below.

At June 30, 2021, we had closed 6,312 Paycheck Protection Program (PPP) loans totaling $401.3 million, including $124.3 million stemming from the Consolidated Appropriations Act 2021. Through June 30, 2021, we have had $217.2 million of our PPP loans forgiven by the SBA.

Net Interest Income

Percent Change

 

2Q 2021 Compared
to:

($ in thousands)

 

2Q
2021

 

 

1Q
2021

 

 

2Q
2020

 

1Q
2021

 

2Q
2020

 

YTD
2021

YTD
2020

Percent
Change

Components of net interest income

Income on earning assets

$

44,105

 

$

44,428

 

$

45,149

 

(0.7

%)

(2.3

%)

$

88,533

 

$

90,017

 

(1.6

%)

Expense on interest bearing liabilities

 

3,868

 

 

3,969

 

 

6,506

 

(2.5

%)

(40.5

%)

 

7,837

 

 

14,961

 

(47.6

%)

Net interest income (tax equivalent)

$

40,237

 

$

40,459

 

$

38,643

 

(0.5

%)

4.1

%

$

80,696

 

$

75,056

 

7.5

%

 

Average yield and rates paid

Earning assets yield

 

3.41

%

 

3.63

%

 

3.98

%

(6.1

%)

(14.3

%)

 

3.52

%

 

4.18

%

(15.8

%)

Rate paid on interest bearing liabilities

 

0.45

%

 

0.48

%

 

0.85

%

(6.3

%)

(47.1

%)

 

0.47

%

 

1.01

%

(53.5

%)

Gross interest margin

 

2.96

%

 

3.15

%

 

3.13

%

(6.0

%)

(5.4

%)

 

3.05

%

 

3.17

%

(3.8

%)

Net interest margin

 

3.11

%

 

3.31

%

 

3.41

%

(6.0

%)

(8.8

%)

 

3.21

%

 

3.49

%

(8.0

%)

 

Average balances

Investment securities

$

1,223,123

 

$

1,061,304

 

$

711,336

 

15.2

%

71.9

%

$

1,142,660

 

$

681,094

 

67.8

%

Loans

$

3,495,655

 

$

3,548,358

 

$

3,461,505

 

(1.5

%)

1.0

%

$

3,521,861

 

$

3,362,217

 

4.7

%

Earning assets

$

5,184,923

 

$

4,957,636

 

$

4,559,670

 

4.6

%

13.7

%

$

5,071,907

 

$

4,326,752

 

17.2

%

Interest-bearing liabilities

$

3,424,218

 

$

3,335,206

 

$

3,094,931

 

2.7

%

10.6

%

$

3,379,958

 

$

2,971,064

 

13.8

%

Net interest income for the quarter of $40.0 million decreased $0.2 million, or 0.6%, from first quarter 2021 but increased $1.5 million, or 4.0%, from second quarter 2020. Our net interest margin at 3.11% decreased 20 basis points from prior quarter and 30 basis points from prior year same quarter, as our average earning assets increased $227.3 million and $625.3 million, respectively, during those same periods. Our yield on average earning assets decreased 22 basis points from prior quarter and 57 basis points from prior year same quarter, and our cost of funds decreased 3 basis points from prior quarter and 40 basis points from prior year same quarter. Net interest income for the six months ended June 30, 2021 increased $5.5 million, or 7.4%, compared to the six months ended June 30, 2020.

The PPP loan portfolio had an annualized yield for the quarter of 6.04%, a one basis point increase from the 6.03% yield in the first quarter 2021. Interest income on the portfolio was $0.6 million during the quarter, down $0.1 million from prior quarter, while the amortization of net loan origination fees from current outstanding loans and recognition of net fee income from paid and forgiven loans was $3.0 million, down $0.3 million from prior quarter. These fees are amortized over the life of the loan with any unamortized balance fully recognized at the time of loan forgiveness. The impact to the net interest margin of the $3.0 million in fee income recognized was 23 basis points for the second quarter 2021, a 4 basis point decline from the 27 basis points for the first quarter 2021. While the PPP loan portfolio significantly impacted the net interest margin year over year, the decrease from prior quarter was primarily the result of a reduction in yield on our commercial real estate and indirect loan portfolios, along with an increase in our lower yielding financial assets due to the decrease in our loan portfolio and an increase in our investment portfolio.

Our ratio of average loans to deposits, including repurchase agreements, was 75.0% for the quarter ended June 30, 2021 compared to 79.9% for the quarter ended March 31, 2021 and 84.5% for the quarter ended June 30, 2020.

Noninterest Income

Percent Change

 

2Q 2021 Compared
to:

($ in thousands)

 

2Q
2021

 

1Q
2021

 

2Q
2020

1Q
2021

 

2Q
2020

 

YTD
2021

YTD
2020

Percent
Change

Deposit service charges

$

6,358

$

6,022

$

4,967

5.6

%

28.0

%

$

12,380

$

10,883

13.8

%

Trust revenue

 

3,349

 

2,951

 

2,569

13.5

%

30.4

%

 

6,300

 

5,453

15.5

%

Gains on sales of loans

 

1,907

 

2,433

 

1,753

(21.6

%)

8.8

%

 

4,340

 

2,236

94.1

%

Loan related fees

 

1,004

 

2,270

 

822

(55.8

%)

22.1

%

 

3,274

 

917

257.0

%

Bank owned life insurance revenue

 

581

 

573

 

564

1.4

%

3.0

%

 

1,154

 

1,137

1.5

%

Brokerage revenue

 

554

 

457

 

313

21.2

%

77.0

%

 

1,011

 

685

47.6

%

Other

 

1,768

 

871

 

1,891

103.0

%

(6.5

%)

 

2,639

 

3,089

(14.6

%)

Total noninterest income

$

15,521

$

15,577

$

12,879

(0.4

%)

20.5

%

$

31,098

$

24,400

27.5

%

Noninterest income for the quarter ended June 30, 2021 of $15.5 million was a slight decrease of $0.1 million, or 0.4%, from prior quarter but a $2.6 million, or 20.5%, increase from prior year same quarter. Increases from prior quarter in deposit service charges, trust revenue, and securities gains were offset by declines in gains on sales of loans and loan related fees. The increase in noninterest income from prior year same quarter was primarily the result of increases in gains on sales of loans, deposit service charges, trust revenue, and loan related fees. Noninterest income for the six months ended June 30, 2021 of $31.1 million was a $6.7 million, or 27.5% increase from the six months ended June 30, 2020.

Deposit service charges were impacted during the quarter and year over year by the continued increase in deposits due to the government stimulus, as gains on sales of loans have been impacted by the slowdown in the industry-wide refinancing boom. Loan related fees were primarily impacted by the change in the fair market value of mortgage servicing rights. As trust revenue is largely driven by the market value of the portfolios managed, it has benefited from an increase in equity market values, a larger volume of managed assets, and robust sales. Brokerage revenue has benefited from a change in sales mix moving more to fee based revenue and from the low interest rates driving some investors into annuities and out of lower paying deposit products.

Noninterest Expense

Percent Change

 

2Q 2021 Compared
to:

($ in thousands)

2Q
2021

1Q
2021

2Q
2020

1Q
2021

 

2Q
2020

 

YTD 2021

YTD 2020

Percent
Change

 

Salaries

$

11,706

$

11,412

$

11,481

2.6

%

2.0

%

$

23,118

$

23,011

0.5

%

Employee benefits

 

7,254

 

5,421

 

3,672

33.8

%

97.5

%

 

12,675

 

7,173

76.7

%

Net occupancy and equipment

 

2,668

 

2,828

 

2,624

(5.7

%)

1.7

%

 

5,496

 

5,330

3.1

%

Data processing

 

1,870

 

2,159

 

1,875

(13.4

%)

(0.3

%)

 

4,029

 

3,853

4.6

%

Legal and professional fees

 

753

 

893

 

1,010

(15.7

%)

(25.4

%)

 

1,646

 

2,056

(19.9

%)

Advertising and marketing

 

710

 

722

 

568

(1.7

%)

25.0

%

 

1,432

 

1,202

19.1

%

Telephone

 

502

 

509

 

457

(1.4

%)

9.8

%

 

1,011

 

890

13.6

%

Other

 

4,035

 

4,366

 

6,222

(7.6

%)

(35.1

%)

 

8,401

 

12,615

(33.4

%)

Total noninterest expense

$

29,498

$

28,310

$

27,909

4.2

%

5.7

%

$

57,808

$

56,130

3.0

%

 

Noninterest expense for the quarter ended June 30, 2021 of $29.5 million increased $1.2 million, or 4.2%, from prior quarter, and $1.6 million, or 5.7%, from prior year same quarter. The increase in noninterest expense was the result of an increase in personnel expense. The increase in personnel expense quarter over quarter included a $1.5 million increase in bonuses and incentives as we increased the accruals for incentive payments based on our current projected earnings for the year. Noninterest expense for the six months ended June 30, 2021 increased $1.7 million, or 3.0%, compared to the six months ended June 30, 2020.

Balance Sheet Review

Total Loans

Percent Change

2Q 2021 Compared to:

($ in thousands)

2Q
2021

1Q
2021

2Q
2020

1Q
2021

 

2Q
2020

 

Commercial nonresidential real estate

$

979,760

$

732,978

$

772,537

33.7

%

26.8

%

Commercial residential real estate

 

309,627

 

305,079

 

257,517

1.5

%

20.2

%

SBA guaranteed PPP loans

 

175,983

 

254,732

 

266,951

(30.9

%)

(34.1

%)

Other commercial

 

356,359

 

607,695

 

609,004

(41.4

%)

(41.5

%)

Total commercial

 

1,821,729

 

1,900,484

 

1,906,009

(4.1

%)

(4.4

%)

 

Residential mortgage

 

762,649

 

770,026

 

780,632

(1.0

%)

(2.3

%)

Home equity loans/lines

 

102,551

 

101,595

 

108,531

0.9

%

(5.5

%)

Total residential

 

865,200

 

871,621

 

889,163

(0.7

%)

(2.7

%)

 

Consumer indirect

 

610,024

 

617,305

 

596,314

(1.2

%)

2.3

%

Consumer direct

 

151,540

 

149,394

 

147,284

1.4

%

2.9

%

Total consumer

 

761,564

 

766,699

 

743,598

(0.7

%)

2.4

%

 

Total loans

$

3,448,493

$

3,538,804

$

3,538,770

(2.6

%)

(2.6

%)

Total Deposits and Repurchase Agreements

Percent Change

2Q 2021 Compared
to:

($ in thousands)

2Q
2021

1Q
2021

2Q
2020

1Q 2021

 

2Q 2020

 

Non-interest bearing deposits

$

1,286,989

$

1,283,309

$

1,109,873

0.3

%

16.0

%

Interest bearing deposits

Interest checking

 

99,226

 

91,803

 

77,518

8.1

%

28.0

%

Money market savings

 

1,281,431

 

1,240,530

 

1,209,633

3.3

%

5.9

%

Savings accounts

 

596,426

 

574,181

 

487,172

3.9

%

22.4

%

Time deposits

 

1,059,630

 

1,043,949

 

1,088,113

1.5

%

(2.6

%)

Repurchase agreements

 

370,568

 

354,235

 

296,007

4.6

%

25.2

%

Total interest bearing deposits and repurchase agreements

$

3,407,281

$

3,304,698

$

3,158,443

3.1

%

7.9

%

Total deposits and repurchase agreements

$

4,694,270

$

4,588,007

$

4,268,316

2.3

%

10.0

%

CTBI’s total assets at $5.5 billion increased $134.0 million, or 10.0% annualized, from March 31, 2021 and $471.3 million, or 9.4%, from June 30, 2020. Loans outstanding at June 30, 2021 were $3.4 billion, a decrease of $90.3 million, an annualized 10.2%, from March 31, 2021 and $90.3 million, or 2.6%, from June 30, 2020. Loans, excluding PPP loans, declined $11.6 million during the quarter, with a $7.3 million decrease in the indirect consumer loan portfolio and a $6.4 million decrease in the residential loan portfolio, offset partially by a $2.1 million increase in the direct consumer loan portfolio. The commercial loan portfolio decreased as the result of a $78.8 million decline in PPP loans. CTBI’s investment portfolio increased $202.7 million, or an annualized 70.2%, from March 31, 2021 and $617.5 million, or 83.2%, from June 30, 2020 as we continued to deploy our increased liquidity in investments due to continued soft loan demand. Deposits in other banks increased $34.1 million from prior quarter but decreased $24.4 million from prior year same quarter. Deposits, including repurchase agreements, at $4.7 billion increased $106.3 million, or an annualized 9.3%, from March 31, 2021 and $426.0 million, or 10.0%, from June 30, 2020, due to the ongoing government stimulus.

Shareholders’ equity at June 30, 2021 was $684.1 million, a $22.0 million increase from the $662.1 million at March 31, 2021 and a $52.2 million increase from the $631.8 million at June 30, 2020. CTBI’s annualized dividend yield to shareholders as of June 30, 2021 was 3.81%.

Asset Quality

CTBI’s total nonperforming loans, not including performing troubled debt restructurings, were $21.1 million, or 0.61% of total loans, at June 30, 2021 compared to $21.0 million, or 0.59% of total loans, at March 31, 2021 and $36.2 million, or 1.02% of total loans, at June 30, 2020. Accruing loans 90+ days past due decreased $0.5 million from prior quarter and $13.5 million from June 30, 2020. Nonaccrual loans increased $0.6 million during the quarter but decreased $1.5 million from March 31, 2020. Accruing loans 30-89 days past due at $10.8 million decreased $2.4 million from prior quarter and $2.8 million from June 30, 2020. Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.

Our level of foreclosed properties at $5.8 million at June 30, 2021 was a $0.4 million decrease from the $6.2 million at March 31, 2021 and an $11.8 million decrease from the $17.7 million at June 30, 2020. Sales of foreclosed properties for the quarter ended June 30, 2021 totaled $0.4 million while new foreclosed properties totaled $0.4 million. At June 30, 2021, the book value of properties under contracts to sell was $0.3 million; however, the closings had not occurred at quarter-end.

CTBI experienced continued improvement in loan losses, as we saw a net recovery of loan losses of $0.6 million for the quarter ended June 30, 2021, compared to net loan charge-offs of $0.2 million, or 0.02% of average loans annualized, for the quarter ended March 31, 2021 and $2.8 million, or 0.32% annualized, for the second quarter 2020. For the six months ended June 30, 2021 we experienced a net recovery of loan losses of $0.4 million compared to net charge-offs of $4.2 million, or 0.25% of average loans annualized, for the six months ended June 30, 2020.

Allowance for Credit Losses

We recovered $4.3 million of our provision for credit losses during the quarter ended June 30, 2021. The reduction was the result of continued positive credit metrics, the lack of pandemic related losses provided for in Q1 2020 as well as an improvement in the industry outlook for certain industries included in our concentrations of credit.. We also recognized a recapture of allowance for credit losses in the first quarter 2021 and the second quarter 2020 with credits to the provision for credit losses of $2.5 million and $49 thousand, respectively. Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2021 was 197.2% compared to 215.5% at March 31, 2021 and 129.0% at June 30, 2020. Our credit loss reserve as a percentage of total loans outstanding at June 30, 2021 was 1.21% (1.27% excluding PPP loans) compared to 1.28% at March 31, 2021 (1.38% excluding PPP loans) and 1.32% at June 30, 2020 (1.43% excluding PPP loans).

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of the COVID-19 pandemic on our business operations and credit quality and on general economic and financial market conditions, as well as our ability to respond to the related challenges; 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 $5.5 billion, is headquartered in Pikeville, Kentucky and has 70 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)
June 30, 2021
(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, 2021 March 31, 2021 June 30, 2020 June 30, 2021 June 30, 2020
Interest income

$

43,875

 

$

44,211

 

$

44,968

 

$

88,086

 

$

89,667

 

Interest expense

 

3,868

 

 

3,969

 

 

6,506

 

 

7,837

 

 

14,961

 

Net interest income

 

40,007

 

 

40,242

 

 

38,462

 

 

80,249

 

 

74,706

 

Loan loss provision

 

(4,257

)

 

(2,499

)

 

(49

)

 

(6,756

)

 

12,658

 

 
Gains on sales of loans

 

1,907

 

 

2,433

 

 

1,753

 

 

4,340

 

 

2,236

 

Deposit service charges

 

6,358

 

 

6,022

 

 

4,967

 

 

12,380

 

 

10,883

 

Trust revenue

 

3,349

 

 

2,951

 

 

2,569

 

 

6,300

 

 

5,453

 

Loan related fees

 

1,004

 

 

2,270

 

 

822

 

 

3,274

 

 

917

 

Securities gains (losses)

 

280

 

 

(168

)

 

937

 

 

112

 

 

1,186

 

Other noninterest income

 

2,623

 

 

2,069

 

 

1,831

 

 

4,692

 

 

3,725

 

Total noninterest income

 

15,521

 

 

15,577

 

 

12,879

 

 

31,098

 

 

24,400

 

 
Personnel expense

 

18,960

 

 

16,833

 

 

15,153

 

 

35,793

 

 

30,184

 

Occupancy and equipment

 

2,668

 

 

2,828

 

 

2,624

 

 

5,496

 

 

5,330

 

Data processing expense

 

1,870

 

 

2,159

 

 

1,875

 

 

4,029

 

 

3,853

 

FDIC insurance premiums

 

323

 

 

326

 

 

294

 

 

649

 

 

441

 

Other noninterest expense

 

5,677

 

 

6,164

 

 

7,963

 

 

11,841

 

 

16,322

 

Total noninterest expense

 

29,498

 

 

28,310

 

 

27,909

 

 

57,808

 

 

56,130

 

 
Net income before taxes

 

30,287

 

 

30,008

 

 

23,481

 

 

60,295

 

 

30,318

 

Income taxes

 

6,356

 

 

6,390

 

 

3,829

 

 

12,746

 

 

4,087

 

Net income

$

23,931

 

$

23,618

 

$

19,652

 

$

47,549

 

$

26,231

 

 
Memo: TEQ interest income

$

44,105

 

$

44,428

 

$

45,149

 

$

88,533

 

$

90,017

 

 
Average shares outstanding

 

17,784

 

 

17,774

 

 

17,739

 

 

17,779

 

 

17,746

 

Diluted average shares outstanding

 

17,800

 

 

17,787

 

 

17,742

 

 

17,794

 

 

17,753

 

Basic earnings per share

$

1.35

 

$

1.33

 

$

1.11

 

$

2.67

 

$

1.48

 

Diluted earnings per share

$

1.34

 

$

1.33

 

$

1.11

 

$

2.67

 

$

1.48

 

Dividends per share

$

0.385

 

$

0.385

 

$

0.38

 

$

0.770

 

$

0.76

 

 
Average balances:
Loans

$

3,495,655

 

$

3,548,358

 

$

3,461,505

 

$

3,521,861

 

$

3,362,217

 

Earning assets

 

5,184,923

 

 

4,957,636

 

 

4,559,670

 

 

5,071,907

 

 

4,326,752

 

Total assets

 

5,450,182

 

 

5,219,406

 

 

4,837,293

 

 

5,335,432

 

 

4,609,851

 

Deposits, including repurchase agreements

 

4,661,615

 

 

4,442,647

 

 

4,096,647

 

 

4,552,736

 

 

3,863,536

 

Interest bearing liabilities

 

3,424,218

 

 

3,335,206

 

 

3,094,931

 

 

3,379,958

 

 

2,971,064

 

Shareholders' equity

 

675,727

 

 

661,302

 

 

624,111

 

 

668,555

 

 

624,261

 

 
Performance ratios:
Return on average assets

 

1.76

%

 

1.84

%

 

1.63

%

 

1.80

%

 

1.14

%

Return on average equity

 

14.20

%

 

14.48

%

 

12.66

%

 

14.34

%

 

8.45

%

Yield on average earning assets (tax equivalent)

 

3.41

%

 

3.63

%

 

3.98

%

 

3.52

%

 

4.18

%

Cost of interest bearing funds (tax equivalent)

 

0.45

%

 

0.48

%

 

0.85

%

 

0.47

%

 

1.01

%

Net interest margin (tax equivalent)

 

3.11

%

 

3.31

%

 

3.41

%

 

3.21

%

 

3.49

%

Efficiency ratio (tax equivalent)

 

53.17

%

 

50.37

%

 

55.17

%

 

51.76

%

 

57.12

%

 
Loan charge-offs

$

948

 

$

1,470

 

$

3,809

 

$

2,418

 

$

6,224

 

Recoveries

 

(1,554

)

 

(1,293

)

 

(1,047

)

 

(2,847

)

 

(2,064

)

Net charge-offs

$

(606

)

$

177

 

$

2,762

 

$

(429

)

$

4,160

 

 
Market Price:
High

$

45.95

 

$

47.53

 

$

37.07

 

$

47.53

 

$

46.87

 

Low

$

39.76

 

$

36.02

 

$

26.45

 

$

36.02

 

$

26.45

 

Close

$

40.38

 

$

44.03

 

$

32.76

 

$

40.38

 

$

32.76

 

 
As of As of As of
June 30, 2021 March 31, 2021 June 30, 2020
Assets:
Loans

$

3,448,493

 

$

3,538,804

 

$

3,538,770

 

Loan loss reserve

 

(41,695

)

 

(45,346

)

 

(46,634

)

Net loans

 

3,406,798

 

 

3,493,458

 

 

3,492,136

 

Loans held for sale

 

4,912

 

 

17,748

 

 

28,987

 

Securities AFS

 

1,357,597

 

 

1,155,195

 

 

740,479

 

Equity securities at fair value

 

2,523

 

 

2,243

 

 

2,093

 

Other equity investments

 

13,915

 

 

14,858

 

 

15,295

 

Other earning assets

 

392,591

 

 

358,529

 

 

416,980

 

Cash and due from banks

 

63,917

 

 

66,664

 

 

63,194

 

Premises and equipment

 

40,391

 

 

40,997

 

 

42,810

 

Right of use asset

 

12,729

 

 

12,787

 

 

13,867

 

Goodwill and core deposit intangible

 

65,490

 

 

65,490

 

 

65,490

 

Other assets

 

133,300

 

 

132,150

 

 

141,510

 

Total Assets

$

5,494,163

 

$

5,360,119

 

$

5,022,841

 

 
Liabilities and Equity:
Interest bearing checking

$

99,226

 

$

91,803

 

$

77,518

 

Savings deposits

 

1,877,857

 

 

1,814,711

 

 

1,696,805

 

CD's >=$100,000

 

561,269

 

 

547,767

 

 

537,124

 

Other time deposits

 

498,361

 

 

496,182

 

 

550,989

 

Total interest bearing deposits

 

3,036,713

 

 

2,950,463

 

 

2,862,436

 

Noninterest bearing deposits

 

1,286,989

 

 

1,283,309

 

 

1,109,873

 

Total deposits

 

4,323,702

 

 

4,233,772

 

 

3,972,309

 

Repurchase agreements

 

370,568

 

 

354,235

 

 

296,007

 

Other interest bearing liabilities

 

58,726

 

 

58,731

 

 

59,246

 

Lease liability

 

13,529

 

 

13,549

 

 

14,550

 

Other noninterest bearing liabilities

 

43,555

 

 

37,763

 

 

48,882

 

Total liabilities

 

4,810,080

 

 

4,698,050

 

 

4,390,994

 

Shareholders' equity

 

684,083

 

 

662,069

 

 

631,847

 

Total Liabilities and Equity

$

5,494,163

 

$

5,360,119

 

$

5,022,841

 

 
Ending shares outstanding

 

17,831

 

 

17,826

 

 

17,795

 

 
30 - 89 days past due loans

$

10,847

 

$

13,204

 

$

13,666

 

90 days past due loans

 

8,283

 

 

8,816

 

 

21,799

 

Nonaccrual loans

 

12,863

 

 

12,223

 

 

14,358

 

Restructured loans (excluding 90 days past due and nonaccrual)

 

66,887

 

 

68,485

 

 

59,823

 

Foreclosed properties

 

5,848

 

 

6,224

 

 

17,675

 

 
Community bank leverage ratio

 

12.45

%

 

12.70

%

 

12.92

%

Tangible equity to tangible assets ratio

 

11.39

%

 

11.27

%

 

11.42

%

FTE employees

 

961

 

 

970

 

 

979

 

 

Community Trust Bancorp, Inc.
Jean R. Hale, (606) 437-3294
Chairman, President, and C.E.O.

Source: Community Trust Bancorp, Inc.

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