Community Trust Bancorp, Inc. Reports Record Earnings for the 4th Quarter and Year 2025

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

Earnings Summary

(in thousands except per share data)

2025

2024

Year

2025

Year

2024

Net income

$27,276

$23,911

$22,493

$98,058

$82,813

Earnings per share

$1.51

$1.33

$1.25

$5.44

$4.61

Earnings per share – diluted

$1.51

$1.32

$1.25

$5.43

$4.61

Return on average assets

1.63%

1.46%

1.47%

1.53%

1.41%

Return on average equity

12.71%

11.53%

11.77%

12.07%

11.31%

Efficiency ratio

48.70%

50.86%

51.60%

50.48%

52.57%

Tangible common equity

11.94%

11.65%

11.29%

Dividends declared per share

$0.53

$0.47

$2.00

$1.86

Book value per share

$47.26

$45.91

$41.95

Weighted average shares

18,025

18,019

17,971

18,013

17,950

Weighted average shares – diluted

18,064

18,053

18,009

18,044

17,977

Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved record earnings for the fourth quarter 2025 of $27.3 million, or $1.51 per basic share, compared to $23.9 million, or $1.33 per basic share, earned during the third quarter 2025 and $22.5 million, or $1.25 per basic share, earned during the fourth quarter 2024. Total revenue for the quarter was $3.2 million above prior quarter and $9.0 million above prior year same quarter. Net interest revenue for the quarter increased $2.6 million compared to prior quarter and $8.6 million compared to prior year same quarter, and noninterest income increased $0.7 million compared to prior quarter and $0.4 million compared to prior year same quarter. Our provision for credit losses for the quarter decreased $1.0 million from prior quarter but increased $0.3 million from prior year same quarter. Noninterest expense decreased $0.3 million compared to prior quarter but increased $2.7 million compared to prior year same quarter. Earnings for the year 2025 were a record $98.1 million, $15.2 million, or $0.83 per basic share, above prior year.

4 th Quarter 2025 Highlights

Net Interest Income

Percent Change

(%)

4Q 2025

Compared to:

($ in thousands)

2025

2024

2025

2024

Year

2025

Year

2024

Percent Change (%)

Components of net interest income:

Income on earning assets

$89,532

$88,562

$81,979

1.1%

9.2%

$345,719

$313,443

10.3%

Expense on interest bearing liabilities

31,415

33,008

32,452

(4.8%)

(3.2%)

126,741

127,448

(0.6%)

Net interest income

58,117

55,554

49,527

4.6%

17.3%

218,978

185,995

17.7%

TEQ

323

301

273

7.6%

18.7%

1,180

1,139

3.6%

Net interest income, tax equivalent

$58,440

$55,855

$49,800

4.6%

17.4%

$220,158

$187,134

17.6%

Average yield and rates paid:

Earning assets yield

5.64%

5.73%

5.66%

(1.7%)

(0.4%)

5.71%

5.65%

1.1%

Rate paid on interest bearing liabilities

2.78%

3.01%

3.18%

(7.6%)

(12.5%)

2.95%

3.30%

(10.6%)

Net interest spread

2.86%

2.72%

2.48%

4.8%

15.2%

2.76%

2.35%

16.9%

Net interest margin

3.67%

3.60%

3.43%

1.8%

7.0%

3.62%

3.36%

7.8%

Average balances:

Investment securities

$1,076,245

$1,006,259

$1,075,698

7.0%

0.1%

$1,032,728

$1,102,434

(6.3%)

Loans

4,821,223

4,736,104

4,399,291

1.8%

9.6%

4,690,521

4,247,762

10.4%

Earning assets

6,321,901

6,151,134

5,779,438

2.8%

9.4%

6,077,559

5,569,948

9.1%

Interest-bearing liabilities

4,485,186

4,353,313

4,059,061

3.0%

10.5%

4,299,232

3,867,733

11.2%

Net interest income for the quarter of $58.1 million was $2.6 million, or 4.6%, above prior quarter and $8.6 million, or 17.3%, above prior year same quarter, as our net interest margin, on a fully tax equivalent basis, increased 7 basis points from prior quarter and 24 basis points from prior year same quarter. Our quarterly average earning assets increased $170.8 million, an annualized 11.0%, from prior quarter and $542.5 million, or 9.4%, from prior year same quarter. Our yield on average earning assets decreased 9 basis points from prior quarter and 2 basis points from prior year same quarter, while our cost of funds increased 23 basis points from prior quarter and 40 basis points from prior year same quarter. Net interest income for the year 2025 at $219.0 million was $33.0 million, or 17.7%, above prior year.

Our ratio of average loans to deposits, including repurchase agreements, was 84.9% for the quarter ended December 31, 2025 compared to 85.6% for the quarter ended September 30, 2025 and 84.4% for the quarter ended December 31, 2024.

Noninterest Income

Percent Change

(%)

4Q 2025

Compared to:

($ in thousands)

2025

2024

2025

2024

Year

2025

Year

2024

Percent Change (%)

Deposit related fees

$7,537

$8,131

$7,619

(7.3%)

(1.1%)

$29,840

$29,824

0.1%

Trust revenue

4,422

4,277

3,961

3.4%

11.6%

16,772

14,921

12.4%

Gains on sales of loans

107

19.3%

114.9%

320

294

8.7%

Loan related fees

932

897

1,472

3.8%

(36.7%)

4,043

4,957

(18.4%)

Bank owned life insurance revenue

1,179

1,144

915

3.1%

28.8%

4,460

5,236

(14.8%)

Brokerage revenue

522

588

536

(11.2%)

(2.5%)

2,130

2,272

(6.3%)

Other

1,904

820

1,607

132.2%

18.5%

6,052

5,061

19.6%

Total noninterest income

$16,603

$15,946

$16,160

4.1%

2.7%

$63,617

$62,565

1.7%

Noninterest income for the quarter ended December 31, 2025 of $16.6 million was $0.7 million, or 4.1%, above prior quarter and $0.4 million, or 2.7%, above prior year same quarter. The variance quarter over quarter was primarily the result of increases in net securities gains ($0.6 million) and net gains on the sale of fixed assets ($0.5 million), partially offset by decreased deposit related fees ($0.6 million). Year over year increases for the quarter in trust revenue ($0.5 million), bank owned life insurance revenue ($0.3 million), and net gains on the sale of fixed assets ($0.5 million) were partially offset by decreases in loan related fees ($0.5 million) and securities gains ($0.3 million). Noninterest income for the year 2025 of $63.6 million was a $1.1 million, or 1.7%, increase from prior year. Primary factors in the year over year increase were increases in trust revenue ($1.9 million), insurance commissions ($0.4 million), net gains on the sale of fixed assets ($0.5 million), partially offset by decreases in loan related fees ($0.9 million), securities gains ($0.3 million), and bank owned life insurance revenue ($0.8 million). The decrease in loan related fees resulted primarily from the fluctuation in the fair market value of our mortgage servicing rights. The variances in securities gains primarily resulted from changes in the valuation of our equity securities.

In an attempt to modernize our delivery channel in the Mt. Sterling Market, we are in the process of consolidating two of our branches into a newly constructed modern branch. During the fourth quarter, we recognized the sale of one of the branch locations being closed, along with a parking lot, resulting in a $0.5 million gain on the sale of fixed assets. We are also donating one of the branch locations, which resulted in a $0.4 million contribution expense.

Noninterest Expense

Percent Change

(%)

4Q 2025

Compared to:

($ in thousands)

2025

2024

2025

2024

Year

2025

Year

2024

Percent Change (%)

Salaries

$13,981

$13,913

$13,310

0.5%

5.0%

$54,830

$52,757

3.9%

Employee benefits

7,952

7,861

6,883

1.2%

15.5%

30,649

26,670

14.9%

Net occupancy and equipment

3,373

3,261

3,015

3.4%

11.9%

13,246

12,204

8.5%

Data processing

2,877

3,575

3,181

(19.5%)

(9.5%)

12,637

11,172

13.1%

Legal and professional fees

1,019

1,045

1,039

(2.5%)

(1.9%)

4,290

3,873

10.8%

Advertising and marketing

776

953

821

(18.6%)

(5.6%)

3,167

3,130

1.2%

Taxes other than property and payroll

687

564

436

21.8%

57.5%

2,353

1,754

34.1%

Other

5,787

5,572

5,084

3.9%

13.8%

21,895

19,363

13.1%

Total noninterest expense

$36,452

$36,744

$33,769

(0.8%)

7.9%

$143,067

$130,923

9.3%

Noninterest expense for the quarter ended December 31, 2025 of $36.5 million was $0.3 million, or 0.8%, below prior quarter but $2.7 million, or 7.9%, above prior year same quarter. The quarter over quarter decrease primarily resulted from decreases in data processing expense ($0.7 million) and repossession expense ($0.7 million), partially offset by increases in personnel expense ($0.2 million) and contributions ($0.6 million). The year over year increase for the quarter included increases in personnel expense ($1.7 million), occupancy and equipment expense ($0.4 million), taxes other than property and payroll ($0.3 million), and contributions ($0.6 million), partially offset by decreases in data processing expense ($0.3 million) and repossession expense ($0.3 million). Noninterest expense for the year 2025 of $143.1 million increased $12.1 million, or 9.3%, from prior year. We experienced increased expenses year over year in personnel ($6.1 million), data processing ($1.5 million), occupancy and equipment ($1.0 million), taxes other than property and payroll ($0.6 million), legal ($0.5 million), and contributions ($0.7 million). The year over year increase in personnel expense included increases in salaries ($2.1 million), bonuses and incentives ($1.9 million), and other employee benefits ($2.1 million). The increase in contribution expense was primarily a result of the $0.4 million contribution expense resulting from a donation of one of our Mt. Sterling branch locations discussed above in the Noninterest Income section.

Balance Sheet Review

Total Loans

Percent Change (%)

4Q 2025 Compared to:

($ in thousands)

2025

2024

2025

2024

Commercial nonresidential real estate

$959,915

$921,682

$865,031

4.1%

11.0%

Commercial residential real estate

580,652

573,270

508,310

1.3%

14.2%

Hotel/motel

497,764

483,833

458,832

2.9%

8.5%

Other commercial

454,944

446,125

440,506

2.0%

3.3%

Total commercial

2,493,275

2,424,910

2,272,679

2.8%

9.7%

Residential mortgage

1,206,820

1,157,540

1,043,401

4.3%

15.7%

Home equity loans/lines

186,798

184,191

167,425

1.4%

11.6%

Total residential

1,393,618

1,341,731

1,210,826

3.9%

15.1%

Consumer indirect

862,458

877,555

850,289

(1.7%)

1.4%

Consumer direct

145,591

149,719

152,843

(2.8%)

(4.7%)

Total consumer

1,008,049

1,027,274

1,003,132

(1.9%)

0.5%

Total loans

$4,894,942

$4,793,915

$4,486,637

2.1%

9.1%

Total Deposits and Repurchase Agreements

Percent Change (%)

4Q 2025 Compared to:

($ in thousands)

2025

2024

2025

2024

Noninterest bearing deposits

$1,263,243

$1,248,573

$1,242,676

1.2%

1.7%

Interest bearing deposits

Interest checking

195,458

194,327

167,736

0.6%

16.5%

Money market savings

1,877,815

1,815,111

1,781,415

3.5%

5.4%

Savings accounts

499,276

501,189

511,378

(0.4%)

(2.4%)

Time deposits

1,553,266

1,626,261

1,366,984

(4.5%)

13.6%

Repurchase agreements

308,799

284,863

240,166

8.4%

28.6%

Total interest bearing deposits and repurchase agreements

4,434,614

4,421,751

4,067,679

0.3%

9.0%

Total deposits and repurchase agreements

$5,697,857

$5,670,324

$5,310,355

0.5%

7.3%

CTBI’s total assets at $6.7 billion as of December 31, 2025 increased $46.0 million, or 2.7% annualized, from prior quarter and $490.9 million, or 7.9%, from prior year. Loans outstanding at $4.9 billion increased $101.0 million, an annualized 8.4%, from prior quarter and $408.3 million, or 9.1%, from prior year. The increase in loans from prior quarter included a $68.4 million increase in the commercial loan portfolio and a $51.9 million increase in the residential loan portfolio, partially offset by a $15.1 million decrease in the consumer indirect loan portfolio and a $4.2 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio at $1.1 billion increased $82.9 million, an annualized 31.6%, from prior quarter and $65.4 million, or 6.2%, from prior year. Deposits in other banks decreased $135.6 million from prior quarter, as a result of funding our investment portfolio and loan growth, but increased $4.3 million from December 31, 2024. Deposits, including repurchase agreements, at $5.7 billion increased $27.5 million, an annualized 1.9%, from prior quarter and $387.5 million, or 7.3%, from prior year. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of December 31, 2025, two customers accounted for 3% each of our $5.4 billion in deposits. Only two customer relationships accounted for more than 1% each.

Shareholders’ equity at $856.1 million increased $24.7 million, an annualized 11.8%, during the quarter and $98.5 million, or 13.0%, from prior year end. Net unrealized losses on securities, net of deferred taxes, were $64.8 million at December 31, 2025, compared to $71.1 million at September 30, 2025 and $98.4 million at December 31, 2024. CTBI’s annualized dividend yield to shareholders as of December 31, 2025 was 3.75%.

Asset Quality

Our total nonperforming loans at $19.2 million at December 31, 2025 decreased $5.5 million from prior quarter and $7.5 million from prior year. Nonaccrual loans at $8.5 million decreased $7.1 million from prior quarter and $7.8 million from prior year. Accruing loans 90+ days past due at $10.6 million increased $1.6 million from prior quarter and $0.3 million from prior year. Accruing loans 30-89 days past due at $20.2 million increased $1.7 million from prior quarter and $3.3 million from prior year. 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 $1.8 million, an annualized 0.14% of average loans, for the fourth quarter 2025 compared to $2.7 million, an annualized 0.23% of average loans, for the third quarter 2025 and $1.0 million, an annualized 0.09% of average loans, for the fourth quarter 2024. Of the net charge-offs for the quarter, $1.0 million were in commercial loans, $0.6 million were in consumer indirect loans, and $0.2 million were in consumer direct loans. Net-charge offs for the year 2025 were $7.4 million, an annualized 0.16% of average loans, compared to $5.5 million, an annualized 0.13% of average loans, for the year 2024.

Allowance for Credit Losses

Our provision for credit losses at $2.9 million for the quarter decreased $1.0 million from prior quarter but increased $0.3 million from prior year same quarter. Of the provision for the quarter, $2.6 million was allotted to fund changes in loan volume and composition, $0.2 million was allotted based on quantitative and qualitative factors, and $0.1 million was allotted for unfunded commitments. Provision for credit losses for the year 2025 of $12.4 million was a $1.5 million increase over the year 2024. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2025 was 314.0% compared to 239.5% at September 30, 2025 and 206.0% at December 31, 2024. Our loan loss reserve as a percentage of total loans outstanding at December 31, 2025 remained at 1.23% from September 30, 2025 and December 31, 2024.

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 $6.7 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.

89,532

88,562

81,979

345,719

313,443

31,415

33,008

32,452

126,741

127,448

58,117

55,554

49,527

218,978

185,995

2,908

3,866

2,587

12,436

10,951

107

320

294

7,537

8,131

7,619

29,840

29,824

4,422

4,277

3,961

16,772

14,921

932

897

1,472

4,043

4,957

194

(449)

521

375

631

3,411

3,001

2,537

12,267

11,938

16,603

15,946

16,160

63,617

62,565

21,933

21,774

20,193

85,479

79,427

3,373

3,261

3,015

13,246

12,204

2,877

3,575

3,181

12,637

11,172

745

703

670

2,825

2,586

7,524

7,431

6,710

28,880

25,534

36,452

36,744

33,769

143,067

130,923

35,360

30,890

29,331

127,092

106,686

8,084

6,979

6,838

29,034

23,873

27,276

23,911

22,493

98,058

82,813

89,855

88,863

82,252

346,899

314,582

18,025

18,019

17,971

18,013

17,950

18,064

18,053

18,009

18,044

17,977

1.51

1.33

1.25

5.44

4.61

1.51

1.32

1.25

5.43

4.61

0.53

0.47

2.00

1.86

4,821,223

4,736,104

4,399,291

4,690,521

4,247,762

6,321,901

6,151,134

5,779,438

6,077,559

5,569,948

6,657,596

6,487,817

6,100,136

6,410,466

5,893,995

5,677,448

5,531,461

5,215,204

5,469,702

5,036,906

4,485,186

4,353,313

4,059,061

4,299,232

3,867,733

851,231

823,016

760,223

812,162

732,119

1.63%

1.46%

1.47%

1.53%

1.41%

12.71%

11.53%

11.77%

12.07%

11.31%

5.64%

5.73%

5.66%

5.71%

5.65%

2.78%

3.01%

3.18%

2.95%

3.30%

3.67%

3.60%

3.43%

3.62%

3.36%

48.70%

50.86%

51.60%

50.48%

52.57%

3,022

4,024

2,264

12,296

10,503

(1,267)

(1,276)

(1,285)

(4,865)

(4,977)

1,755

2,748

979

7,431

5,526

61.55

59.67

61.66

61.55

61.66

50.25

52.60

46.55

44.60

38.44

56.50

55.95

53.03

56.50

53.03

4,894,942

4,793,915

4,486,637

(60,169)

(59,135)

(54,968)

4,834,773

4,734,780

4,431,669

211

483

184

1,120,719

1,037,965

1,055,728

4,154

3,961

3,781

10,087

9,948

9,949

302,928

438,501

298,580

62,851

71,218

73,021

52,611

52,245

49,630

15,433

15,974

14,385

65,490

214,881

207,564

190,828

6,684,138

6,638,129

6,193,245

195,458

194,327

167,736

2,377,091

2,316,300

2,292,793

960,517

992,728

795,619

592,749

633,533

571,365

4,125,815

4,136,888

3,827,513

1,263,243

1,248,573

1,242,676

5,389,058

5,385,461

5,070,189

308,799

284,863

240,166

64,577

64,641

64,830

16,417

16,909

15,190

49,215

54,882

45,286

5,828,066

5,806,756

5,435,661

856,072

831,373

757,584

6,684,138

6,638,129

6,193,245

18,116

18,110

18,058

20,182

18,500

16,833

10,623

9,040

10,317

8,539

15,647

16,369

3,066

4,856

3,647

13.64%

13.68%

13.76%

11.94%

11.65%

11.29%

930

929

934