Community Trust Bancorp Reports $82.8 Million Net Income for Fiscal Year 2024

Community Trust Bancorp, Inc. (CTBI) reported a solid financial performance for the fiscal year ending December 31, 2024, with net income reaching $82.8 million, or $4.61 per basic share, compared to $78.0 million, or $4.36 per share, in the previous year. Total revenue increased to $248.6 million, marking a $17.8 million rise from 2023, driven by a $12.9 million increase in net interest income and a $4.9 million rise in noninterest income. The provision for credit losses also saw a significant increase, rising to $11.0 million from $6.8 million in 2023, reflecting a proactive approach to managing credit risk amid changing economic conditions.

In terms of operational metrics, CTBI's total assets grew to $6.2 billion, up from $5.8 billion in 2023, while total deposits, including repurchase agreements, increased by 7.3% to $5.3 billion. The bank's loan portfolio expanded by 10.8%, reaching $4.5 billion, with notable increases in commercial and residential loans. However, the total nonperforming loans rose to $26.7 million, a 91.1% increase from the previous year, indicating a need for continued vigilance in credit quality management.

Strategically, CTBI has made significant organizational changes, including the appointment of Thomas E. McCoy as Executive Vice President of Operations effective February 1, 2025, following the retirement of the previous EVP. The company also adopted a new accounting standard (ASU No. 2023-02) aimed at improving the accounting and disclosures for investments in tax credit structures, which resulted in a cumulative effect adjustment that reduced retained earnings by $2.0 million. This change is expected to enhance transparency and provide better insights into the returns from tax credit investments.

CTBI's workforce remains stable, with 934 full-time equivalent employees as of December 31, 2024. The company continues to emphasize employee development, with a significant portion of its workforce participating in various training programs. The bank's commitment to community development is evident, with over $38 million allocated for community development lending in 2024 and contributions exceeding $450,000 to support low and moderate-income families.

Looking ahead, CTBI anticipates continued growth, with projected earnings per share for 2025 expected to range between $4.86 and $5.06. The bank's management remains focused on maintaining a strong capital position, with a community bank leverage ratio of 13.76% as of December 31, 2024, well above the regulatory requirement. The outlook reflects confidence in the bank's ability to navigate economic challenges while pursuing strategic growth opportunities in its core markets.