On July 17, 2024, Community Trust Bancorp Inc (CTBI, Financial) released its 8-K filing for the second quarter of 2024. Community Trust Bancorp Inc is a bank holding company that owns all the capital stock of one commercial bank and one trust company, serving small and mid-sized communities in eastern, north-eastern, central, and southcentral Kentucky, southern West Virginia, and north-eastern Tennessee. Through its subsidiaries, the Bank is engaged in commercial and personal banking and trust and wealth management activities.
Performance Overview
Community Trust Bancorp Inc (CTBI, Financial) reported net income of $19.5 million for Q2 2024, or $1.09 per basic share, consistent with the $19.4 million, or $1.09 per basic share, reported in Q2 2023. This performance also marks an increase from the $18.7 million, or $1.04 per basic share, reported in Q1 2024. Total revenue for the quarter was $2.7 million higher than the previous quarter and $3.6 million higher than the same quarter last year.
Financial Achievements
CTBI's net interest income for Q2 2024 was $45.7 million, a 4.8% increase from Q1 2024 and a 6.0% increase from Q2 2023. The net interest margin, on a fully tax-equivalent basis, rose to 3.38%, up 15 basis points from the previous quarter and 3 basis points from the same quarter last year. The average yield on earning assets increased to 5.66%, reflecting a 2.0% increase from Q1 2024 and a 12.4% increase from Q2 2023.
Income Statement Highlights
| Metric | 2Q 2024 | 1Q 2024 | 2Q 2023 |
|---|---|---|---|
| Net Income | $19.5 million | $18.7 million | $19.4 million |
| Earnings per Share | $1.09 | $1.04 | $1.09 |
| Return on Average Assets | 1.35% | 1.30% | 1.41% |
| Return on Average Equity | 11.03% | 10.61% | 11.72% |
| Efficiency Ratio | 52.17% | 54.94% | 53.52% |
Noninterest Income and Expense
Noninterest income for Q2 2024 was $15.7 million, a 3.8% increase from Q1 2024 and a 6.4% increase from Q2 2023. This growth was driven by increases in bank-owned life insurance revenue, deposit-related fees, trust revenue, and brokerage revenue. However, these gains were partially offset by a decrease in securities gains.
Noninterest expense for Q2 2024 was $32.4 million, up 0.6% from Q1 2024 and 4.5% from Q2 2023. The year-over-year increase was primarily due to higher personnel expenses, including salaries, bonuses, and group medical and life insurance benefits.
Balance Sheet Review
CTBI's total assets stood at $5.8 billion as of June 30, 2024, reflecting a 5.1% increase from June 30, 2023. Loans outstanding increased by $100.1 million from Q1 2024 and by $331.6 million from Q2 2023. The commercial loan portfolio saw a significant increase, contributing to the overall loan growth.
Asset Quality
Total nonperforming loans rose to $19.8 million in Q2 2024 from $15.9 million in Q1 2024 and $11.7 million in Q2 2023. Accruing loans 90+ days past due increased by $3.2 million from the previous quarter and by $8.3 million from the same quarter last year. Despite these increases, CTBI's loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.
Allowance for Credit Losses
The provision for credit losses was $3.0 million for Q2 2024, up $0.3 million from Q1 2024 and $1.0 million from Q2 2023. The reserve coverage ratio decreased to 263.0% from 319.0% in Q1 2024 and 408.9% in Q2 2023. The credit loss reserve as a percentage of total loans remained steady at 1.22%.
Community Trust Bancorp Inc (CTBI, Financial) continues to demonstrate resilience and steady performance amidst a challenging economic environment. For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Community Trust Bancorp Inc for further details.
