Community Trust Bancorp Reports 27.5% Increase in Net Income for Q2 2025

Community Trust Bancorp, Inc. (CTBI) reported a strong financial performance for the second quarter of 2025, with net income reaching $24.9 million, or $1.38 per share, compared to $19.5 million, or $1.09 per share, in the same quarter of the previous year. This marks an increase of 27.5% year-over-year. For the first half of 2025, net income totaled $46.9 million, up from $38.2 million in the prior year, reflecting a 22.8% increase. Total revenue for the quarter was $85.6 million, an increase of $8.8 million from the previous year, driven by a rise in net interest income and noninterest income.

The company’s net interest income for the quarter was $54.0 million, up $8.4 million or 18.3% from the same quarter last year, attributed to a higher net interest margin of 3.64%, which increased by 26 basis points year-over-year. The provision for credit losses decreased to $2.1 million, down from $2.9 million in the prior year, indicating improved asset quality. Noninterest income also saw a modest increase, totaling $16.2 million, which was $0.5 million higher than the previous year.

CTBI's loan portfolio grew to $4.7 billion, an increase of $65.3 million during the quarter and $215.2 million from the previous year, with notable growth in commercial and residential loans. The company reported a decrease in total nonperforming loans to $24.4 million, down from $26.5 million at the end of the previous quarter. The allowance for credit losses stood at $57.8 million, representing 1.23% of total loans, reflecting a stable credit quality environment.

In terms of operational developments, CTBI's total assets increased to $6.4 billion, up from $6.2 billion at the end of the previous quarter. Total deposits, including repurchase agreements, rose to $5.5 billion, an increase of $100.2 million during the quarter. The company also reported a significant increase in shareholders' equity, which reached $806.9 million, up $22.7 million from the previous quarter.

Looking ahead, CTBI remains optimistic about its growth trajectory, supported by a solid capital position and a diversified loan portfolio. The company plans to continue focusing on enhancing its customer service and expanding its market presence in Kentucky and surrounding areas. The management is also closely monitoring economic conditions and market trends to adapt its strategies accordingly.