Community Trust Bancorp, Inc.

What they do

Through Community Trust Bank, Inc. and Community Trust and Investment Company, CTBI accepts time and demand deposits and makes commercial, construction, mortgage, and personal loans, including lines of credit, term loans, and asset-based financing. It also provides cash management, letters of credit, safe deposit, funds transfer, full-service brokerage, and insurance services. The trust company acts as trustee for personal trusts and employee benefit trusts, as executor of estates, as paying and investment agent, and as securities depository. At June 30, 2026, CTBI operated 78 banking locations, four trust offices in Kentucky, and one trust office in northeastern Tennessee.

Revenue drivers

• Net interest income on loans — Interest and fees on loans, including loans held for sale, were $304.6 million in 2025 versus $274.6 million in 2024. The loan portfolio was $5.1 billion at June 30, 2026, up $423.1 million, or 9.0%, from a year earlier. Net interest income for the second quarter 2026 was $60.9 million.
• Securities interest income — Taxable and tax-exempt interest and dividends on securities contributed income in 2025, with taxable securities interest of $23.7 million and tax-exempt of $2.5 million for the year. Debt securities available-for-sale had an amortized cost of $1.21 billion and a fair value of $1.12 billion at December 31, 2025.
• Noninterest income — Noninterest income for the second quarter 2026 was $17.6 million, up $2.2 million, or 14.2%, from the first quarter 2026 and up $1.4 million, or 8.8%, from the second quarter 2025. The filing attributes this category to trust, wealth management, brokerage, insurance, and related services.
• Trust and wealth management — Trust assets under management were $4.3 billion at June 30, 2026, including CTB's investment portfolio of $1.1 billion, up from $4.1 billion at December 31, 2025. Community Trust and Investment Company operates from four Kentucky trust offices and one northeastern Tennessee office.

Recent performance

CTBI reported record second-quarter 2026 net income of $29.6 million, or $1.64 per basic share, compared to $27.2 million, or $1.51 per basic share, in the first quarter 2026 and $24.9 million, or $1.38 per basic share, in the second quarter 2025. Net interest income of $60.9 million rose 3.6% from the prior quarter and 12.7% from the prior-year quarter, while noninterest income of $17.6 million rose 14.2% and 8.8%, respectively. Noninterest expense of $37.4 million increased 2.3% from the prior quarter and 4.8% from the prior-year quarter. Six-month 2026 earnings were $56.8 million, or $3.15 per basic share, versus $46.9 million, or $2.60 per basic share, a year earlier. Annual 2025 net income was $98.1 million with diluted EPS of $5.43, up from $82.8 million and $4.61 in 2024.

Strategy

CTBI's stated business is community banking and trust and wealth management across small and mid-sized communities in Kentucky, southern West Virginia, and northeastern Tennessee. The company reported continued loan and deposit growth: loans increased $134.1 million, an annualized 10.8%, in the second quarter 2026 and $230.0 million, or 4.7%, from December 31, 2025, while deposits including repurchase agreements rose $221.9 million, an annualized 15.5%, in the quarter and $257.0 million, or 4.5%, from year-end 2025. Shareholders' equity grew to $891.8 million at June 30, 2026, up 4.2% from December 31, 2025, and book value per share was $49.10. The company also reported community development lending of over $59.6 million in 2025 and contributions of over $719 thousand to low- and moderate-income families and communities.

Risks

• Geographic concentration — CTBI states its performance is highly dependent on the business environment in Kentucky, West Virginia, and Tennessee and on the United States as a whole, so regional economic weakness could hurt credit quality.
• Credit quality deterioration — Total nonperforming loans were $29.7 million at June 30, 2026, up $9.0 million for the quarter and $10.6 million from December 31, 2025, while nonperforming assets rose to $33.3 million.
• Competition — The 10-K states CTBI faces substantial competition from state and national banks, thrifts, trust companies, insurance companies, credit unions, finance companies, brokerages, and non-bank providers, some with fewer regulatory constraints and lower cost structures.
• Economic and market conditions — Management lists declines in economic growth or confidence, higher inflation or interest rates, high unemployment, and natural disasters as conditions that could adversely affect CTBI's loan book and results.

Outlook

Management does not provide forward guidance in these excerpts; its commentary is limited to reported results and strategic direction. The second-quarter 2026 release characterizes the quarter as record earnings, with net interest income, noninterest income, loans, and deposits all growing from the prior quarter and prior-year quarter. The 10-K risk factors state CTBI may continue to be adversely affected by economic and market conditions and by ongoing weaknesses in its local markets.