Community Trust Bancorp, Inc. Reports Record Earnings for the 2 nd 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

$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

$0.47

$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.

2 nd Quarter 2026 Highlights

Net Interest Income

Percent Change

2Q 2026

Compared to:

($ in thousands)

2026

2025

2026

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%

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.

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)

2026

2025

2026

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

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.

Noninterest Expense

Percent Change

2Q 2026

Compared to:

($ in thousands)

2026

2025

2026

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.

Balance Sheet Review

Total Loans

Percent Change

2Q 2026 Compared to:

($ in thousands)

2026

2025

2026

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)

2026

2025

2026

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)%

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%

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

Ending balance

$63,001

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 $7.0 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.

91,238

87,755

85,571

178,993

167,625

30,349

28,973

31,531

59,322

62,318

60,889

58,782

54,040

119,671

105,307

2,771

2,311

2,094

5,082

5,662

112

124

7,657

7,155

7,350

14,812

14,172

4,724

4,462

4,092

9,186

8,073

1,146

1,039

1,249

2,185

2,214

924

(488)

150

436

630

3,087

3,195

3,253

6,282

5,855

17,599

15,414

16,171

33,013

31,068

23,220

22,105

21,654

45,325

41,772

3,367

3,699

3,172

7,066

6,612

2,851

2,955

3,326

5,806

6,185

751

744

688

1,495

1,377

7,181

7,034

6,823

14,215

13,925

37,370

36,537

35,663

73,907

69,871

38,347

35,348

32,454

73,695

60,842

8,724

8,156

7,555

16,880

13,971

29,623

27,192

24,899

56,815

46,871

91,542

88,072

85,854

179,614

168,181

18,064

18,049

18,012

18,056

18,004

18,099

18,080

18,036

18,090

18,029

1.64

1.51

1.38

3.15

2.60

1.64

1.50

1.38

3.14

2.60

0.53

0.47

1.06

0.94

5,051,165

4,934,257

4,668,001

4,993,034

4,600,919

6,464,479

6,327,329

5,983,093

6,396,283

5,915,965

6,817,407

6,669,401

6,313,922

6,743,813

6,245,536

5,793,767

5,661,967

5,387,923

5,728,231

5,332,715

4,610,459

4,494,829

4,215,573

4,552,963

4,177,225

886,914

873,726

798,536

880,356

786,787

1.74%

1.65%

1.58%

1.70%

1.51%

13.40%

12.62%

12.51%

13.01%

12.01%

5.68%

5.65%

5.76%

5.66%

5.73%

2.64%

2.61%

3.00%

2.63%

3.01%

3.80%

3.79%

3.64%

3.79%

3.61%

47.99%

48.72%

50.70%

48.35%

51.26%

2,112

2,686

2,528

4,798

5,250

(1,195)

(1,368)

(1,175)

(2,563)

(2,322)

917

1,318

1,353

2,235

2,928

73.22

65.79

53.82

73.22

56.96

60.40

56.05

44.60

56.05

44.60

72.36

60.72

52.92

72.36

52.92

5,124,931

4,990,821

4,701,793

(63,001)

(61,321)

(57,825)

5,061,930

4,929,500

4,643,968

345

1,051,681

1,088,205

994,990

4,578

3,666

4,410

10,412

10,087

14,440

452,627

269,178

320,830

63,815

91,572

76,556

53,065

53,114

52,118

14,957

14,999

15,210

65,490

210,816

215,284

202,581

6,989,371

6,741,168

6,390,938

188,978

190,769

173,795

2,460,505

2,426,062

2,328,697

1,107,635

959,996

875,835

641,281

594,558

596,476

4,398,399

4,171,385

3,974,803

1,259,364

1,262,835

1,258,205

5,657,763

5,434,220

5,233,008

297,094

298,721

225,075

64,448

64,512

64,705

16,000

15,995

16,087

62,239

56,475

45,194

6,097,544

5,869,923

5,584,069

891,827

871,245

806,869

6,989,371

6,741,168

6,390,938

18,164

18,156

18,105

20,301

24,800

20,055

18,951

9,599

8,449

10,794

11,132

15,937

3,517

3,348

4,857

13.89%

13.91%

13.80%

11.93%

12.07%

11.72%

970

974

937