Community Trust Bancorp Reports 19.5% Increase in Net Income for Q2 2026

Community Trust Bancorp, Inc. (CTBI) reported a strong financial performance for the second quarter of 2026, with net income reaching $29.6 million, or $1.64 per share, compared to $24.9 million, or $1.38 per share, in the same quarter of the previous year. This marks a 19.5% increase in net income year-over-year. Total revenue for the quarter was $91.2 million, reflecting a $5.7 million increase from the prior quarter and an $8.3 million increase from the same quarter last year. The bank's net interest income also saw a significant rise, totaling $60.9 million, which is $2.1 million higher than the previous quarter and $6.8 million higher than the same quarter last year.

In terms of operational metrics, CTBI's loan portfolio grew to $5.1 billion, an increase of $134.1 million, or an annualized 10.8%, from the previous quarter. This growth was driven by increases in various loan categories, including commercial loans, residential loans, and consumer loans. The bank's total deposits, including repurchase agreements, rose to $6.0 billion, up $221.9 million, or an annualized 15.5%, from the previous quarter. Shareholders' equity also increased to $891.8 million, reflecting a 9.5% annualized growth for the quarter.

The bank's provision for credit losses increased to $2.8 million for the quarter, up from $2.1 million in the previous quarter and $2.1 million in the same quarter last year. Nonperforming loans rose to $29.7 million, an increase of $9.0 million from the previous quarter, indicating a need for continued vigilance in credit quality management. The allowance for credit losses stood at $63.0 million, representing 1.23% of total loans, consistent with the previous quarter.

Strategically, CTBI continues to focus on enhancing its product offerings and expanding its geographic footprint. The bank operates 78 locations across eastern, northern, and central Kentucky, as well as parts of West Virginia and Tennessee. The management has indicated plans to further invest in technology and customer service enhancements to improve engagement and retention rates among its customer base.

Looking ahead, CTBI remains optimistic about its growth trajectory, supported by a strong capital position and a diversified loan portfolio. The bank's management anticipates continued revenue growth driven by both net interest income and noninterest income, while maintaining a focus on asset quality and risk management. The board of directors has also declared a quarterly cash dividend of $0.65 per share, reflecting the bank's commitment to returning value to its shareholders.