Community Trust Bancorp, Inc. (NASDAQ-CTBI):
Earnings Summary
(in thousands except per share data)
1Q 2023
4Q 2022
1Q 2022
Net income
$19,313
$22,443
$19,728
Earnings per share
$1.08
$1.26
$1.11
Earnings per share – diluted
$1.08
$1.26
$1.11
Return on average assets
1.44%
1.64%
1.48%
Return on average equity
12.03%
14.42%
11.77%
Efficiency ratio
55.29%
51.81%
53.25%
Tangible common equity
10.82%
10.58%
10.93%
Dividends declared per share
$0.44
$0.44
$0.40
Book value per share
$36.54
$35.05
$36.53
Weighted average shares
17,872
17,848
17,820
Weighted average shares – diluted
17,884
17,872
17,832
Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings
for the first quarter 2023 of $19.3 million, or $1.08 per basic
share, compared to $22.4 million, or $1.26 per basic share, earned
during the fourth quarter 2022 and $19.7 million, or $1.11 per
basic share, earned during the first quarter 2022. Total revenue
was $0.9 million below prior quarter but $2.6 million above prior
year same quarter. Net interest revenue decreased $0.8 million
compared to prior quarter but increased $3.9 million compared to
prior year same quarter, and noninterest income decreased $0.1
million compared to prior quarter and $1.3 million compared to
prior year same quarter. Our provision for credit losses for the
quarter was $1.1 million compared to $1.5 million for the quarter
ended December 31, 2022 and $0.9 million for the first quarter
2022. Noninterest expense increased $1.6 million compared to prior
quarter and $2.5 million compared to prior year same quarter. Net
income was also impacted quarter over quarter by a $1.0 million
increase in income taxes as a result of tax credits taken in the
fourth quarter 2022.
As a result of the recent bank failures and turmoil in the
banking sector, management has thoroughly reviewed our financial
condition, liquidity position, and interest rate risk to ensure
there are no issues which raise concern. We are a conservative bank
holding company which prudently manages our risk profile to ensure
a safe and secure environment. We are very well-capitalized, and
our liquidity position is strong. Our bank has not seen a decline
in deposit balances as a result of the recent turmoil in the
banking industry, nor did we realize loan growth as a direct result
of the turmoil. Our deposit growth has remained strong. We are
focused on balance sheet strength and stability and intend to
maintain our portfolio by remaining competitive in loan and deposit
pricing. CTBI has no wholesale funding, and there has been no
change in our wholesale debt. We did experience loan growth during
the quarter; however, none of this growth could be directly
attributable to the current environment. There have been no changes
to our underwriting standards, yet we have seen a decrease in
delinquencies. We feel comfortable with the conservative nature of
our investment portfolio, and we do not expect to make significant
changes to the composition of our portfolio or the management of
it. The effective duration of our investment portfolio remains low
at 4.05 years compared to 4.11 years at December 31, 2022 and 4.16
years at March 31, 2022. We also see no need to raise capital, as
our liquidity position is strong, and we do not anticipate any
stock repurchases or change in our cash dividend policy in 2023.
CTBI’s CBLR ratio as of March 31, 2023 was 13.71% compared to the
required 9.00%.
The Bank Term Funding Program (BTFP) was created by the Federal
Reserve to support American businesses and households by making
additional funding available to eligible depository institutions to
help assure banks have the ability to meet the needs of all their
depositors. We have registered and are eligible to use the newly
created BTFP, but we do not intend to do so.
1st Quarter 2023 Highlights
- Net interest income for the quarter of $43.9 million was $0.8
million below prior quarter but $3.9 million above prior year same
quarter, as our net interest margin decreased 2 basis points from
prior quarter but increased 31 basis points from prior year same
quarter.
- Provision for credit losses for the quarter decreased $0.4
million from prior quarter but increased $0.2 million from prior
year same quarter.
- Our loan portfolio increased $68.1 million, an annualized 7.4%,
from December 31, 2022 and $261.8 million, or 7.4%, from March 31,
2022.
- We had net loan charge-offs of $414 thousand, or 0.04% of
average loans annualized for the first quarter 2023 compared to a
net recovery of loan charge-offs for the fourth quarter 2022 of $9
thousand and net loan charge-offs of $322 thousand, or 0.04% of
average loans annualized, for the quarter ended March 31,
2022.
- Our total nonperforming loans decreased to $12.2 million at
March 31, 2023 from $15.3 million at December 31, 2022 and $13.7
million at March 31, 2022. Nonperforming assets at $15.0 million
decreased $4.0 million from December 31, 2022 and $1.0 million from
March 31, 2022.
- Deposits, including repurchase agreements, at $4.8 billion
increased $110.6 million, or an annualized 9.7%, from December 31,
2022 and $69.3 million, or 1.5%, from March 31, 2022.
- Shareholders’ equity at $656.8 million increased $28.8 million,
or an annualized 18.6%, during the quarter and $3.5 million, or
0.5%, from March 31, 2022.
- Noninterest income for the quarter ended March 31, 2023 of
$13.7 million was $0.1 million, or 0.6%, below prior quarter and
$1.3 million, or 8.6%, below prior year same quarter.
- Noninterest expense for the quarter ended March 31, 2023 of
$31.9 million was $1.6 million, or 5.4%, above prior quarter and
$2.5 million, or 8.6%, above prior year same quarter.
Net Interest Income
Percent Change
1Q 2023 Compared to:
($ in thousands)
1Q 2023
4Q 2022
1Q 2022
4Q 2022
1Q 2022
Components of net interest income
Income on earning assets
$60,995
$57,458
$43,528
6.2%
40.1%
Expense on interest bearing
liabilities
17,079
12,714
3,495
34.3%
388.7%
Net interest income
43,916
44,744
40,034
(1.9%)
9.7%
TEQ
298
249
233
19.5%
27.7%
Net interest income, tax equivalent
$44,214
$44,993
$40,266
(1.7%)
9.8%
Average yield and rates paid:
Earning assets yield
4.84%
4.51%
3.46%
7.5%
40.1%
Rate paid on interest bearing
liabilities
2.06%
1.52%
0.42%
35.7%
386.9%
Gross interest margin
2.78%
2.99%
3.04%
(6.8%)
(8.5%)
Net interest margin
3.49%
3.51%
3.18%
(0.6%)
9.9%
Average balances:
Investment securities
$1,251,948
$1,284,470
$1,486,799
(2.5%)
(15.7%)
Loans
$3,739,443
$3,662,221
$3,440,439
2.1%
8.7%
Earning assets
$5,131,385
$5,079,176
$5,134,150
1.0%
(0.1%)
Interest-bearing liabilities
$3,362,331
$3,321,914
$3,350,208
1.2%
0.4%
Net interest income for the quarter of $43.9 million was $0.8
million below prior quarter but $3.9 million above prior year same
quarter. Our net interest margin, on a fully tax equivalent basis,
at 3.49% decreased 2 basis points from prior quarter but increased
31 basis points from prior year same quarter. Our average earning
assets increased $52.2 million from prior quarter but decreased
$2.8 million from prior year same quarter. Our yield on average
earning assets increased 33 basis points from prior quarter and 138
basis points from prior year same quarter, and our cost of funds
increased 54 basis points from prior quarter and 164 basis points
from prior year same quarter.
Our ratio of average loans to deposits, including repurchase
agreements, was 79.8% for the quarter ended March 31, 2023 compared
to 78.2% for the quarter ended December 31, 2022 and 74.2% for the
quarter ended March 31, 2022.
Noninterest Income
Percent Change
1Q 2023 Compared to:
($ in thousands)
1Q 2023
4Q 2022
1Q 2022
4Q 2022
1Q 2022
Deposit related fees
$7,287
$7,411
$6,746
(1.7%)
8.0%
Trust revenue
3,079
2,959
3,248
4.0%
(5.2%)
Gains on sales of loans
121
174
597
(30.3%)
(79.7%)
Loan related fees
845
1,119
2,062
(24.5%)
(59.0%)
Bank owned life insurance revenue
858
572
691
50.0%
24.2%
Brokerage revenue
348
344
590
1.1%
(41.0%)
Other
1,144
1,192
1,031
(4.1%)
11.0%
Total noninterest income
$13,682
$13,771
$14,965
(0.6%)
(8.6%)
Noninterest income for the quarter ended March 31, 2023 of $13.7
million was $0.1 million, or 0.6%, below prior quarter and $1.3
million, or 8.6%, below prior year same quarter. The year over year
decrease was primarily the result of a $1.2 million decrease in
loan related fees due to the change in the fair market value of our
mortgage servicing rights. The primary driver in determining the
fair value is the change in interest rates, which resulted in a
$1.0 million increase in the first quarter of 2022 and a $0.2
million decrease in the first quarter of 2023.
Noninterest Expense
Percent Change
1Q 2023 Compared to:
($ in thousands)
1Q 2023
4Q 2022
1Q 2022
4Q 2022
1Q 2022
Salaries
$12,633
$12,439
$11,739
1.6%
7.6%
Employee benefits
6,275
5,433
5,799
15.5%
8.2%
Net occupancy and equipment
3,028
2,576
2,854
17.6%
6.1%
Data processing
2,303
2,344
2,201
(1.7%)
4.7%
Legal and professional fees
816
931
867
(12.4%)
(5.9%)
Advertising and marketing
820
826
752
(0.7%)
9.0%
Taxes other than property and payroll
432
296
426
45.8%
1.3%
Net other real estate owned expense
119
18
353
554.7%
(66.6%)
Other
5,464
5,396
4,368
1.3%
25.1%
Total noninterest expense
$31,890
$30,259
$29,359
5.4%
8.6%
Noninterest expense for the quarter ended March 31, 2023 of
$31.9 million was $1.6 million, or 5.4%, higher than prior quarter
and $2.5 million, or 8.6%, above prior year same quarter. The
increase in noninterest expense quarter over quarter was primarily
the result of a $1.3 million decline in post retirement benefits
(included in employee benefits) during the fourth quarter 2022 and
a $0.5 million increase in occupancy and equipment during the first
quarter 2023. The year over year increase included a $1.4 million
increase in personnel expense and a $0.3 million increase in FDIC
insurance premiums.
Balance Sheet Review
Total Loans
Percent Change
1Q 2023 Compared to:
($ in thousands)
1Q 2023
4Q 2022
1Q 2022
4Q 2022
1Q 2022
Commercial nonresidential real estate
$750,498
$762,349
$774,791
(1.6%)
(3.1%)
Commercial residential real estate
385,328
372,914
337,447
3.3%
14.2%
Hotel/motel
348,876
343,640
274,256
1.5%
27.2%
Other commercial
393,136
390,838
439,839
0.6%
(10.6%)
Total commercial
1,877,100
1,868,858
1,803,851
0.4%
4.1%
Residential mortgage
846,435
824,995
780,453
2.6%
8.5%
Home equity loans/lines
124,097
120,541
107,230
2.9%
15.7%
Total residential
970,532
945,536
887,683
2.6%
9.3%
Consumer indirect
772,570
737,392
667,387
4.8%
15.8%
Consumer direct
157,158
157,504
156,620
(0.2%)
0.3%
Total consumer
929,728
894,896
824,007
3.9%
12.8%
Total loans
$3,777,360
$3,709,290
$3,515,541
1.8%
7.4%
Total Deposits and Repurchase
Agreements
Percent Change
1Q 2023 Compared to:
($ in thousands)
1Q 2023
4Q 2022
1Q 2022
4Q 2022
1Q 2022
Non-interest bearing deposits
$1,409,839
$1,394,915
$1,398,529
1.1%
0.8%
Interest bearing deposits
Interest checking
120,678
112,265
89,863
7.5%
34.3%
Money market savings
1,408,314
1,348,809
1,200,408
4.4%
17.3%
Savings accounts
642,232
654,380
666,874
(1.9%)
(3.7%)
Time deposits
962,361
915,774
1,072,630
5.1%
(10.3%)
Repurchase agreements
208,777
215,431
254,623
(3.1%)
(18.0%)
Total interest bearing deposits and
repurchase agreements
3,342,362
3,246,659
3,284,398
2.9%
1.8%
Total deposits and repurchase
agreements
$4,752,201
$4,641,574
$4,682,927
2.4%
1.5%
CTBI’s total assets at $5.5 billion increased $149.0 million, or
11.2% annualized, from December 31, 2022 and $86.2 million, or
1.6%, from March 31, 2022. Loans outstanding at March 31, 2023 were
$3.8 billion, an increase of $68.1 million, an annualized 7.4%,
from December 31, 2022 and $261.8 million, or 7.4%, from March 31,
2022. The increase in loans from prior quarter included an $8.2
million increase in the commercial loan portfolio, a $25.0 million
increase in the residential loan portfolio, and a $35.2 million
increase in the indirect consumer loan portfolio, offset partially
by a $0.3 million decrease in the consumer direct loan portfolio.
CTBI’s investment portfolio decreased $14.9 million, or an
annualized 4.8%, from December 31, 2022 and $262.1 million, or
17.4%, from March 31, 2022. Deposits in other banks increased $97.7
million from prior quarter and $69.0 million from March 31, 2022.
Deposits, including repurchase agreements, at $4.8 billion
increased $110.6 million, or an annualized 2.4%, from December 31,
2022 and $69.3 million, or 1.5%, from March 31, 2022. Our uninsured
deposits, as defined by the FFIEC, were 27.6% at March 31, 2023
compared to 27.5% at December 31, 2022 and 25.3% at March 31,
2022.
Shareholders’ equity at $656.8 million increased $28.8 million,
or an annualized 18.6%, during the quarter and $3.5 million, or
0.5%, from March 31, 2022, as unrealized losses on our securities
portfolio have begun to decrease. Net unrealized losses on
securities, net of deferred taxes, were $112.4 million at March 31,
2023, compared to $129.2 million at December 31, 2022 and $63.0
million at March 31, 2022. Management has the ability and intent to
hold these securities to recovery or maturity. CTBI’s annualized
dividend yield to shareholders as of March 31, 2023 was 4.64%.
Asset Quality
Our total nonperforming loans decreased to $12.2 million at
March 31, 2023 from $15.3 million at December 31, 2022 and $13.7
million at March 31, 2022. Prior period nonperforming loans, as
previously reported, exclude troubled debt restructurings which
have been eliminated in the current period due to implementation of
Accounting Standard Update 2022-02. Accruing loans 90+ days past
due at $6.2 million decreased $2.3 million from prior quarter but
increased $1.4 million from March 31, 2022. Nonaccrual loans at
$6.0 million decreased $0.8 million from prior quarter and $2.8
million from March 31, 2022. Accruing loans 30-89 days past due at
$11.7 million decreased $3.6 million from prior quarter but
increased $0.9 million from March 31, 2022. 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 was $2.8 million at March 31,
2023 compared to $3.7 million at December 31, 2022 and $2.3 million
at March 31, 2022. Sales of foreclosed properties for the quarter
ended March 31, 2023 totaled $0.9 million while new foreclosed
properties totaled $0.1 million. At March 31, 2023, the book value
of properties under contracts to sell was $0.6 million; however,
the closings had not occurred at quarter-end.
We had net loan charge-offs of $414 thousand, or 0.04% of
average loans annualized for the first quarter 2023 compared to a
net recovery of loan charge-offs for the fourth quarter 2022 of $9
thousand and net loan charge-offs of $322 thousand, or 0.04% of
average loans annualized, for the quarter ended March 31, 2022.
Allowance for Credit Losses
Our provision for credit losses for the quarter was $1.1 million
for the first quarter 2023 compared to $1.5 million for the quarter
ended December 31, 2022 and $0.9 million for the first quarter
2022. Our reserve coverage (allowance for credit losses to
nonperforming loans) at March 31, 2023 was 382.3% compared to
300.4% at December 31, 2022 and 309.1% at March 31, 2022. Our
credit loss reserve as a percentage of total loans outstanding at
March 31, 2023 remained at 1.24% from December 31, 2022 compared to
1.20% at and March 31, 2022.
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) March 31, 2023 (in thousands except per
share data and # of employees) Three Three Three Months
Months Months Ended Ended Ended March 31, 2023 December 31, 2022
March 31, 2022 Interest income
$
60,995
$
57,458
$
43,527
Interest expense
17,079
12,714
3,495
Net interest income
43,916
44,744
40,032
Loan loss provision
1,116
1,539
875
Gains on sales of loans
121
174
597
Deposit related fees
7,287
7,411
6,746
Trust revenue
3,079
2,959
3,248
Loan related fees
845
1,119
2,062
Securities gains (losses)
218
117
99
Other noninterest income
2,132
1,991
2,213
Total noninterest income
13,682
13,771
14,965
Personnel expense
18,908
17,872
17,538
Occupancy and equipment
3,028
2,576
2,854
Data processing expense
2,303
2,344
2,201
FDIC insurance premiums
606
374
355
Other noninterest expense
7,045
7,093
6,411
Total noninterest expense
31,890
30,259
29,359
Net income before taxes
24,592
26,717
24,763
Income taxes
5,279
4,274
5,035
Net income
$
19,313
$
22,443
$
19,728
Memo: TEQ interest income
$
61,293
$
57,707
$
43,762
Average shares outstanding
17,872
17,848
17,820
Diluted average shares outstanding
17,884
17,872
17,832
Basic earnings per share
$
1.08
$
1.26
$
1.11
Diluted earnings per share
$
1.08
$
1.26
$
1.11
Dividends per share
$
0.44
$
0.44
$
0.400
Average balances: Loans
$
3,739,443
$
3,662,221
$
3,440,439
Earning assets
5,131,385
5,079,176
5,134,150
Total assets
5,458,067
5,412,752
5,417,800
Deposits, including repurchase agreements
4,688,103
4,682,014
4,633,988
Interest bearing liabilities
3,362,331
3,321,914
3,350,208
Shareholders' equity
651,008
617,338
679,527
Performance ratios: Return on average assets
1.44%
1.64%
1.48%
Return on average equity
12.03%
14.42%
11.77%
Yield on average earning assets (tax equivalent)
4.84%
4.51%
3.46%
Cost of interest bearing funds (tax equivalent)
2.06%
1.52%
0.42%
Net interest margin (tax equivalent)
3.49%
3.51%
3.18%
Efficiency ratio (tax equivalent)
55.29%
51.81%
53.25%
Loan charge-offs
$
1,765
$
1,995
$
1,320
Recoveries
(1,351)
(2,004)
(998)
Net charge-offs
$
414
$
(9)
$
322
Market Price: High
$
47.35
$
48.05
$
46.30
Low
$
37.31
$
40.81
$
40.53
Close
$
37.95
$
45.93
$
41.20
As of As of As of March 31, 2023 December 31, 2022 March 31,
2022
Assets: Loans
$
3,777,359
$
3,709,290
$
3,515,541
Loan loss reserve
(46,683)
(45,981)
(42,309)
Net loans
3,730,676
3,663,309
3,473,232
Loans held for sale
182
109
1,941
Securities AFS
1,241,080
1,256,226
1,503,165
Equity securities at fair value
2,380
2,166
2,352
Other equity investments
9,713
11,563
13,026
Other earning assets
177,209
79,475
108,222
Cash and due from banks
60,762
51,306
58,352
Premises and equipment
42,636
42,633
40,738
Right of use asset
17,037
17,071
11,941
Goodwill and core deposit intangible
65,490
65,490
65,490
Other assets
182,155
190,968
164,674
Total Assets
$
5,529,320
$
5,380,316
$
5,443,133
Liabilities and Equity: Interest bearing checking
$
120,678
$
112,265
$
89,863
Savings deposits
2,050,546
2,003,189
1,867,282
CD's >=$100,000
501,557
471,934
590,476
Other time deposits
460,804
443,840
482,154
Total interest bearing deposits
3,133,585
3,031,228
3,029,775
Noninterest bearing deposits
1,409,839
1,394,915
1,398,529
Total deposits
4,543,424
4,426,143
4,428,304
Repurchase agreements
208,777
215,431
254,623
Other interest bearing liabilities
65,254
58,696
58,711
Lease liability
17,619
17,628
12,796
Other noninterest bearing liabilities
37,425
34,371
35,328
Total liabilities
4,872,499
4,752,269
4,789,762
Shareholders' equity
656,821
628,047
653,371
Total Liabilities and Equity
$
5,529,320
$
5,380,316
$
5,443,133
Ending shares outstanding
17,976
17,918
17,884
30 - 89 days past due loans
$
11,728
$
15,303
$
10,838
90 days past due loans
6,218
8,496
4,858
Nonaccrual loans
5,993
6,813
8,832
Foreclosed properties
2,776
3,671
2,299
Community bank leverage ratio
13.71%
13.55%
13.15%
Tangible equity to tangible assets ratio
10.82%
10.58%
10.93%
FTE employees
945
985
963
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230419005297/en/
Mark A. Gooch Vice Chairman, President, and CEO Community Trust
Bancorp, Inc. (606) 437-3229
Community Trust Bancorp (NASDAQ:CTBI)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024
Community Trust Bancorp (NASDAQ:CTBI)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024