Community Trust Bancorp, Inc. Reports Earnings for the 3 rd Quarter 2026

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

Earnings Summary

(in thousands except per share data)

2026

2025

YTD

2026

YTD

2025

Net income

$25,890

$29,623

$23,911

$82,705

$70,782

Earnings per share

$1.43

$1.64

$1.33

$4.58

$3.93

Earnings per share - diluted

$1.43

$1.64

$1.32

$4.57

$3.92

Return on average assets

1.46%

1.74%

1.46%

1.61%

1.50%

Return on average equity

11.49%

13.40%

11.53%

12.49%

11.84%

Efficiency ratio

45.90%

47.99%

50.86%

47.51%

51.12%

Tangible common equity

11.60%

11.93%

11.65%

Dividends declared per share

$0.71

$0.53

$1.77

$1.47

Book value per share

$48.29

$49.10

$45.91

Weighted average shares

18,069

18,064

18,019

18,061

18,009

Weighted average shares - diluted

18,114

18,099

18,053

18,098

18,037

Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings for the third quarter 2026 of $25.9 million, or $1.43 per basic earnings per share, compared to $29.6 million, or $1.64 per basic share, earned during the second quarter 2026 and $23.9 million, or $1.33 per basic share, earned during the third quarter 2025. Total revenue for the quarter was $1.2 million above prior quarter and $8.2 million above prior year same quarter. Net interest income for the quarter increased $0.2 million compared to prior quarter and $5.5 million compared to prior year same quarter, and noninterest income increased $1.0 million compared to prior quarter and $2.7 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $6.4 million from prior quarter and $5.3 million from prior year same quarter. Noninterest expense decreased $0.9 million compared to prior quarter and $0.3 million compared to prior year same quarter. Earnings for the nine months ended September 30, 2026 were $82.7 million, or $4.58 per basic share, compared to $70.8 million, or $3.93 per basic share, for the same period prior year.

3 rd Quarter 2026 Highlights

Net Interest Income

Percent Change

3Q 2026

Compared to:

($ in thousands)

2026

2025

2026

2025

YTD

2026

YTD

2025

Percent

Change

Components of net interest income:

Income on earning assets

$94,893

$91,238

$88,562

4.0%

7.1%

$273,886

$256,187

6.9%

Expense on interest bearing liabilities

33,837

30,349

33,008

11.5%

2.5%

93,159

95,326

(2.3)%

Net interest income

61,056

60,889

55,554

0.3%

9.9%

180,727

160,861

12.3%

TEQ

284

304

301

(6.6)%

(5.4)%

905

857

5.6%

Net interest income, tax equivalent (non-GAAP)

$61,340

$61,193

$55,855

0.2%

9.8%

$181,632

$161,718

12.3%

Average yield and rates paid:

Earning assets yield

5.63%

5.68%

5.73%

(0.9)%

(1.7)%

5.65%

5.73%

(1.4)%

Rate paid on interest bearing liabilities

2.78%

2.64%

3.01%

5.2%

(7.6)%

2.68%

3.01%

(11.0)%

Gross interest margin

2.85%

3.04%

2.72%

(6.3)%

4.7%

2.97%

2.72%

9.1%

Net interest margin

3.63%

3.80%

3.60%

(4.4)%

0.7%

3.74%

3.61%

3.6%

Average balances:

Investment securities

$1,126,360

$1,081,411

$1,006,259

4.2%

11.9%

$1,107,298

$1,018,062

8.8%

Loans

$5,175,712

$5,051,165

$4,736,104

2.5%

9.3%

$5,054,596

$4,646,475

8.8%

Earning assets

$6,704,985

$6,464,479

$6,151,134

3.7%

9.0%

$6,500,315

$5,995,216

8.4%

Interest-bearing liabilities

$4,832,747

$4,610,459

$4,353,313

4.8%

11.0%

$4,647,249

$4,236,566

9.7%

Net interest income for the quarter of $61.1 million was $0.2 million, or 0.3%, above prior quarter and $5.5 million, or 9.9%, above prior year same quarter, as our net interest margin, on a fully tax equivalent basis, decreased 17 basis points from prior quarter but increased 3 basis points from prior year same quarter. Our quarterly average earning assets increased $240.5 million, an annualized 3.7%, from prior quarter and $553.9 million, or 9.0%, from prior year same quarter. Our yield on average earning assets decreased 5 basis points from prior quarter and 10 basis points from prior year same quarter, while our cost of funds increased 14 basis points from prior quarter but decreased 23 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, for the quarter was 86.2% compared to 87.2% for prior quarter and 85.6% for same quarter prior year. Net interest income for the nine months ended September 30, 2026 at $180.7 million was $19.9 million, or 12.3%, above same period prior year.

Provision for Credit Losses

Our provision for credit losses at $9.2 million for the quarter increased $6.4 million from prior quarter and $5.3 million from prior year same quarter. Of the provision for the quarter, $5.8 million was attributable to the allowance for credit losses, with an additional expense of $0.6 million recognized in the provision for unfunded commitments. The increase in the provision was the result of the increase in net charge-offs in addition to the significant loan growth we experienced during the quarter. Provision for credit losses for the nine months ended September 30, 2026 at $14.3 million was $4.7 million above same period prior year.

Noninterest Income

Percent Change

3Q 2026

Compared to:

($ in thousands)

2026

2025

2026

2025

YTD

2026

YTD

2025

Percent

Change

Deposit related fees

$8,579

$7,657

$8,131

12.0%

5.5%

$23,391

$22,303

4.9%

Trust and wealth management income

4,885

4,724

4,277

3.4%

14.2%

14,071

12,350

13.9%

Gains on sales of loans

(46.2)%

(63.5)%

145

213

(31.8)%

Loan related fees

1,268

1,146

897

10.7%

41.3%

3,453

3,111

11.0%

Bank owned life insurance revenue

1,227

1,188

1,144

3.2%

7.3%

4,129

3,281

25.9%

Brokerage revenue

727

528

588

37.8%

23.6%

1,775

1,608

10.4%

Other

1,929

2,295

820

(16.0)%

135.2%

4,697

4,148

13.2%

Total noninterest income

$18,648

$17,599

$15,946

6.0%

16.9%

$51,661

$47,014

9.9%

Noninterest income for the quarter of $18.6 million was $1.0 million, or 6.0%, above prior quarter and $2.7 million, or 16.9%, above prior year same quarter. The variance quarter over quarter was primarily the result of a $0.9 million increase in deposit related fees. Increases in trust and wealth management income ($0.2 million) and brokerage revenue ($0.2 million) were offset by a $0.4 million decline in net securities gains, included in the “Other” row in the table above. Year over year increases for the quarter included net securities gains ($1.0 million), trust and wealth management income ($0.6 million), deposit related fees ($0.4 million), and loan related fees ($0.4 million). The variances in securities gains resulted primarily from changes in the valuation of our equity securities. Noninterest income for the nine months ended September 30, 2026 of $51.7 million was $4.6 million, or 9.9%, above prior year same period.

Noninterest Expense

Percent Change

3Q 2026

Compared to:

($ in thousands)

2026

2025

2026

2025

YTD

2026

YTD

2025

Percent

Change

Salaries

$14,252

$13,923

$13,913

2.4%

$41,804

$40,849

2.3%

Employee benefits

7,491

9,297

7,861

(19.4)%

(4.7)%

25,264

22,697

11.3%

Net occupancy and equipment

3,489

3,367

3,261

3.6%

7.0%

10,555

9,873

6.9%

Data processing

3,077

2,851

3,575

7.9%

(13.9)%

8,883

9,760

(9.0)%

Legal and professional fees

1,277

1,084

1,045

17.8%

22.1%

3,525

3,271

7.8%

Advertising and marketing

907

841

953

7.9%

(4.8)%

2,448

2,391

2.4%

Taxes other than property and payroll

667

619

564

7.9%

18.3%

1,903

1,666

14.2%

Other

5,320

5,388

5,572

(1.3)%

(4.5)%

16,005

16,108

(0.6)%

Total noninterest expense

$36,480

$37,370

$36,744

(2.4)%

(0.7)%

$110,387

$106,615

3.5%

Noninterest expense for the quarter of $36.5 million was $0.9 million, or 2.4%, below prior quarter and $0.3 million, or 0.7%, below prior year same quarter. The quarter over quarter decrease primarily resulted from a $1.7 million decrease in the cost of our group medical and life insurance, included in employee benefits, partially offset by increases in salaries ($0.3 million), data processing expense ($0.2 million), and legal and professional fees ($0.2 million). The year over year decrease for the quarter primarily resulted from a $0.5 million decrease in data processing expense offset by a $0.2 million increase in legal fees. The decrease in the cost of group medical and life insurance year over year was offset by increases in salaries and bonuses. Noninterest expense for the nine months ended September 30, 2026 of $110.4 million was $3.8 million, or 3.5%, above prior year same period.

Balance Sheet Review

CTBI’s total assets at $7.1 billion increased $72.2 million, or 4.1% annualized, for the quarter and $423.4 million, or 6.4%, from September 30, 2025. Loans outstanding at $5.3 billion increased $177.9 million, an annualized 13.8%, for the quarter and $509.0 million, or 10.6%, from September 30, 2025. The increase in loans for the quarter included a $80.9 million increase in the commercial loan portfolio, a $53.0 million increase in the residential loan portfolio, and a $46.8 million increase in the consumer indirect loan portfolio, partially offset by a $2.8 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio at $1.1 billion increased $60.1 million, an annualized 22.6%, for the quarter and $74.4 million, or 7.1%, from September 30, 2025. Deposits in other banks decreased $178.1 million for the quarter and $164.0 million from September 30, 2025.

Total Loans

Percent Change

3Q 2026 Compared to:

($ in thousands)

2026

2025

2026

2025

Commercial nonresidential real estate

$1,061,605

$1,005,462

$921,682

5.6%

15.2%

Commercial residential real estate

633,648

599,454

573,270

5.7%

10.5%

Hotel/motel

539,287

528,697

483,833

2.0%

11.5%

Other commercial

443,920

463,901

446,125

(4.3)%

(0.5)%

Total commercial

2,678,460

2,597,514

2,424,910

3.1%

10.5%

Residential mortgage

1,336,242

1,289,157

1,157,540

3.7%

15.4%

Home equity loans/lines

201,192

195,270

184,191

3.0%

9.2%

Total residential

1,537,434

1,484,427

1,341,731

3.6%

14.6%

Consumer indirect

949,929

903,125

877,555

5.2%

8.2%

Consumer direct

137,045

139,865

149,719

(2.0)%

(8.5)%

Total consumer

1,086,974

1,042,990

1,027,274

4.2%

5.8%

Total loans

$5,302,868

$5,124,931

$4,793,915

3.5%

10.6%

Total Deposits and Repurchase Agreements

Percent Change

3Q 2026 Compared to:

($ in thousands)

2026

2025

2026

2025

Noninterest bearing deposits

$1,254,885

$1,259,364

$1,248,573

(0.4)%

0.5%

Interest bearing deposits

Interest checking

193,714

188,978

194,327

2.5%

(0.3)%

Money market savings

1,862,607

1,963,115

1,815,111

(5.1)%

2.6%

Savings accounts

488,796

497,390

501,189

(1.7)%

(2.5)%

Time deposits

1,889,887

1,748,916

1,626,261

8.1%

16.2%

Repurchase agreements

351,105

297,094

284,863

18.2%

23.3%

Total interest bearing deposits and repurchase agreements

4,786,109

4,695,493

4,421,751

1.9%

8.2%

Total deposits and repurchase agreements

$6,040,994

$5,954,857

$5,670,324

1.4%

6.5%

Deposits, including repurchase agreements, at $6.0 billion increased $86.1 million, an annualized 5.7%, for the quarter and $370.7 million, or 6.5%, from September 30, 2025. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of September 30, 2026, two customers accounted for over 3% each (3.8% and 3.7%) of our $5.7 billion in deposits. Only these two customer relationships accounted for more than 1% each of our deposits.

Shareholders’ equity at $877.3 million decreased $14.5 million, an annualized 6.4%, for the quarter but increased $46.0 million, or 5.5%, from September 30, 2025. Net unrealized losses on securities, net of deferred taxes, were $96.7 million at September 30, 2026, compared to $68.4 million at June 30, 2026 and $71.1 million at September 30, 2025. CTBI’s annualized dividend yield to shareholders as of September 30, 2026 was 3.83%.

Asset Quality

Our total nonperforming loans at $22.5 million at September 30, 2026 decreased $7.3 million for the quarter and $2.2 million from September 30, 2025. Nonaccrual loans at $9.5 million decreased $1.3 million from prior quarter and $6.2 million from September 30, 2025. Accruing loans 90+ days past due at $13.0 million decreased $5.9 million from prior quarter but increased $4.0 million from September 30, 2025. Accruing loans 30-89 days past due at $23.1 million increased $2.8 million from prior quarter and $4.6 million from September 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 $6.6 million, an annualized 0.50% of average loans, for the quarter compared to $0.9 million, an annualized 0.07% of average loans, for prior quarter and $2.7 million, an annualized 0.23% of average loans, for the third quarter 2025. The increase in net loan charge-offs was primarily attributable to an $8.7 million commercial relationship previously reported as an accruing loan 90+ past due and in the process of collection. At June 30, 2026, management's analysis suggested that this loan was well secured. During September, the collateral was sold at auction, and we received a significantly lower amount at bid, resulting in a $4.3 million charge-off. Of the net charge-offs for the quarter, $5.0 million were in commercial loans, $1.3 million were in consumer indirect loans, and $0.3 million were in consumer direct loans. Net loan charge-offs for the nine months ended September 30, 2026 were $8.8 million, or an annualized 0.23% of average loans, compared to $5.7 million, or an annualized 0.16% of average loans, for the same period prior year.

Allowance for Credit Losses

Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2026 was 289.3% compared to 211.8% at June 30, 2026 and 239.5% at September 30, 2025. Our allowance for credit losses as a percentage of total loans outstanding at September 30, 2026 remained at 1.23% from June 30, 2026 and September 30, 2025. The table below shows the changes in components of the allowance for credit losses during the third quarter 2026:

Beginning balance

$63,001

New loan volume

6,146

Changes in existing loan balances

(882)

Loans exiting

(2,969)

Historical loss rate

(381)

Qualitative factors

240

Other changes

(96)

Ending balance

$65,059

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 $7.1 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.

94,893

91,238

88,562

273,886

256,187

33,837

30,349

33,008

93,159

95,326

61,056

60,889

55,554

180,727

160,861

9,171

2,771

3,866

14,253

9,528

145

213

8,579

7,657

8,131

23,391

22,303

4,885

4,724

4,277

14,071

12,350

1,268

1,146

897

3,453

3,111

515

924

(449)

951

181

3,368

3,087

3,001

9,650

8,856

18,648

17,599

15,946

51,661

47,014

21,743

23,220

21,774

67,068

63,546

3,489

3,367

3,261

10,555

9,873

3,077

2,851

3,575

8,883

9,760

750

751

703

2,245

2,080

7,421

7,181

7,431

21,636

21,356

36,480

37,370

36,744

110,387

106,615

34,053

38,347

30,890

107,748

91,732

8,163

8,724

6,979

25,043

20,950

25,890

29,623

23,911

82,705

70,782

95,177

91,542

88,863

274,791

257,044

18,069

18,064

18,019

18,061

18,009

18,114

18,099

18,053

18,098

18,037

1.43

1.64

1.33

4.58

3.93

1.43

1.64

1.32

4.57

3.92

0.71

0.53

1.77

1.47

5,175,712

5,051,165

4,736,104

5,054,596

4,646,475

6,704,985

6,464,479

6,151,134

6,500,315

5,995,216

7,049,781

6,817,407

6,487,817

6,846,923

6,327,184

6,008,105

5,793,767

5,531,461

5,822,548

5,399,692

4,832,747

4,610,459

4,353,313

4,647,249

4,236,566

894,271

886,914

823,016

885,046

798,996

1.46%

1.74%

1.46%

1.61%

1.50%

11.49%

13.40%

11.53%

12.49%

11.84%

5.63%

5.68%

5.73%

5.65%

5.73%

2.78%

2.64%

3.01%

2.68%

3.01%

3.63%

3.80%

3.60%

3.74%

3.61%

45.90%

47.99%

50.86%

47.51%

51.12%

7,724

2,112

4,024

12,522

9,274

(1,172)

(1,195)

(1,276)

(3,735)

(3,598)

6,552

917

2,748

8,787

5,676

79.92

73.22

59.67

79.92

59.67

70.60

60.40

52.60

56.05

44.60

74.22

72.36

55.95

74.22

55.95

5,302,868

5,124,931

4,793,915

(65,059)

(63,001)

(59,135)

5,237,809

5,061,930

4,734,780

150

483

1,111,268

1,051,681

1,037,965

5,093

4,578

3,961

11,176

10,412

9,948

274,493

452,627

438,501

59,170

63,815

71,218

53,143

53,065

52,245

14,531

14,957

15,974

65,490

229,249

210,816

207,564

7,061,572

6,989,371

6,638,129

193,714

188,978

194,327

2,351,403

2,460,505

2,316,300

1,208,796

1,107,635

992,728

681,091

641,281

633,533

4,435,004

4,398,399

4,136,888

1,254,885

1,259,364

1,248,573

5,689,889

5,657,763

5,385,461

351,105

297,094

284,863

64,383

64,448

64,641

15,621

16,000

16,909

63,239

62,239

54,882

6,184,237

6,097,544

5,806,756

877,335

891,827

831,373

7,061,572

6,989,371

6,638,129

18,168

18,164

18,110

23,149

20,301

18,500

13,022

18,951

9,040

9,465

10,794

15,647

5,212

3,517

4,856

13.60%

13.89%

13.68%

11.60%

11.93%

11.65%

968

970

929