Community Trust Bancorp, Inc. (NASDAQ: CTBI):
Earnings Summary
(in thousands except per share data)
2Q 2019
1Q 2019
2Q 2018
6 Months 2019
6 Months 2018
Net income
$18,324
$14,939
$11,599
$33,263
$27,413
Earnings per share
$1.03
$0.84
$0.66
$1.88
$1.55
Earnings per share - diluted
$1.03
$0.84
$0.66
$1.88
$1.55
Return on average assets
1.69%
1.42%
1.11%
1.56%
1.33%
Return on average equity
12.45%
10.58%
8.56%
11.54%
10.26%
Efficiency ratio
62.22%
60.57%
66.05%
61.39%
62.67%
Tangible common equity
12.27%
12.05%
11.51%
Dividends declared per share
$0.36
$0.36
$0.33
$0.72
$0.66
Book value per share
$33.46
$32.50
$30.59
Weighted average shares
17,721
17,712
17,687
17,717
17,679
Weighted average shares - diluted
17,733
17,723
17,703
17,728
17,695
Community Trust Bancorp, Inc. (NASDAQ: CTBI) reports earnings
for the second quarter 2019 of $18.3 million, or $1.03 per basic
share, compared to $14.9 million, or $0.84 per basic share, earned
during the first quarter 2019 and $11.6 million, or $0.66 per basic
share, earned during the second quarter 2018. Earnings for the six
months ended June 30, 2019 were $33.3 million, or $1.88 per basic
share, compared to $27.4 million, or $1.55 per basic share, earned
during the six months ended June 30, 2018.
2nd Quarter 2019 Highlights
- Net interest income for the quarter of $36.0 million was flat
to prior quarter, but an increase of $0.9 million, or 2.5%, from
second quarter 2018.
- Provision for loan losses for the quarter ended June 30, 2019
increased $1.4 million from prior quarter but decreased $0.4
million from prior year same quarter.
- Our loan portfolio increased $2.5 million, an annualized 0.3%,
during the quarter and $23.2 million, or 0.7%, from June 30,
2018.
- Net loan charge-offs for the quarter ended June 30, 2019 were
$1.6 million, or 0.20% of average loans annualized, compared to
$1.1 million, or 0.14%, experienced for the first quarter 2019 and
$1.3 million, or 0.17%, for the second quarter 2018.
- Nonperforming loans at $24.0 million decreased $1.4 million
from March 31, 2019 but increased $2.0 million from June 30, 2018.
Nonperforming assets at $46.5 million decreased $3.9 million from
March 31, 2019 and $5.8 million from June 30, 2018.
- Deposits, including repurchase agreements, increased $49.8
million, an annualized 5.5%, during the quarter and $112.2 million,
or 3.2%, from June 30, 2018.
- Noninterest income for the quarter ended June 30, 2019 of $12.3
million was a $0.1 million increase over prior quarter, but a
decrease of $1.5 million, or 10.8%, from prior year same
quarter.
- Noninterest expense for the quarter ended June 30, 2019 of
$30.0 million increased $0.9 million, or 3.3%, from prior quarter,
but decreased $2.4 million, or 7.4%, from prior year same
quarter.
- In April 2019, Kentucky enacted HB458. HB458 allows for
combined filing of state income taxes with CTBI and its
subsidiaries, Community Trust Bank, Inc. and Community Trust and
Investment Company, Inc. CTBI had previously filed a separate
company return and generated net operating losses, in which it had
maintained a valuation allowance against the related deferred tax
asset. HB458 also allows for certain net operating losses to be
utilized on a combined return. CTBI expects to file a combined
return, beginning in 2021, and to utilize these previously
generated losses. The tax benefit recorded in the second quarter
2019 to reverse the valuation allowance on the deferred tax asset
for these losses was $3.6 million, or $0.21 per basic share.
Net Interest Income
Net interest income for the quarter of $36.0 million was
relatively flat to prior quarter, but an increase of $0.9 million,
or 2.5%, from second quarter 2018. Our net interest margin at 3.57%
declined 13 basis points from prior quarter and 4 basis points from
prior year same quarter, while our average earning assets increased
$102.8 million and $141.3 million, respectively, during those same
periods. Our yield on average earning assets decreased 8 basis
points from prior quarter but increased 32 basis points from prior
year same quarter, and our cost of funds increased 7 basis points
from prior quarter and 52 basis points from prior year same
quarter. Our ratio of average loans to deposits, including
repurchase agreements, was 87.3% for the quarter ended June 30,
2019 compared to 89.9% for the quarter ended March 31, 2019 and
88.1% for the quarter ended June 30, 2018. Net interest income for
the six months ended June 30, 2019 increased $2.3 million, or 3.3%,
from June 30, 2018.
Noninterest Income
Noninterest income for the quarter ended June 30, 2019 of $12.3
million was a $0.1 million increase over prior quarter, but a
decrease of $1.5 million, or 10.8%, from prior year same quarter.
The decrease in noninterest income from prior year was primarily
the result of a $0.5 million decrease in loan related fees due to a
decline in the fair market value of our mortgage servicing rights,
along with a $1.0 million decrease in other operating revenue.
Other operating revenue for the second quarter 2018 included a gain
on the sale of a partnership interest resulting from a low income
housing tax credit recapture. Noninterest income for the six months
ended June 30, 2019 was a $2.6 million, or 9.7%, decrease from
prior year.
Noninterest Expense
Noninterest expense for the quarter ended June 30, 2019 of $30.0
million increased $0.9 million, or 3.3%, from prior quarter, but
decreased $2.4 million, or 7.4%, from prior year same quarter. The
increase in noninterest expense from prior quarter consisted of
increases in FDIC insurance ($0.2 million), net other real estate
owned expense ($0.3 million), operating losses ($0.2 million), loan
related expense ($0.2 million), and other direct expense ($0.4
million), partially offset by a $0.3 million decrease in
repossession expense. The $0.4 million increase in other direct
expense was the result of increased amortization expense related to
tax credits. The decrease from prior year was due to the previously
disclosed $3.6 million accrual in June 2018 for customer
reimbursements, partially offset by a $0.7 million increase in
personnel expense. The increase in personnel expense included a
$0.9 million increase in salaries, partially offset by a $0.3
million decrease in the cost of group medical insurance.
Noninterest expense for the six months ended June 30, 2019 was
$59.1 million, a $2.0 million, or 3.3%, decrease from the first six
months of 2018.
Balance Sheet Review
CTBI’s total assets at $4.4 billion increased $64.0 million, or
5.9% annualized, from March 31, 2019 and $172.1 million, or 4.1%,
from June 30, 2018. Loans outstanding at June 30, 2019 were $3.2
billion, an increase of $2.5 million, an annualized 0.3%, from
March 31, 2019 and $23.2 million, or 0.7%, from June 30, 2018. We
experienced increases during the quarter of $2.0 million in the
commercial loan portfolio, $7.1 million in the residential loan
portfolio, and $3.3 million in the direct consumer loan portfolio,
offset by a decrease of $9.9 million in the indirect consumer loan
portfolio. CTBI’s investment portfolio decreased $7.5 million, or
an annualized 5.0%, from March 31, 2019 but increased $7.5 million,
or 1.3%, from June 30, 2018. Deposits in other banks increased
$67.8 million from prior quarter and $120.3 million from prior year
same quarter, as the yield earned was favorable to other investment
alternatives. Deposits, including repurchase agreements, at $3.7
billion increased $49.8 million, or an annualized 5.5%, from March
31, 2019 and $112.2 million, or 3.2%, from June 30, 2018.
Shareholders’ equity at June 30, 2019 was $594.7 million, a
11.9% annualized increase from the $577.5 million at March 31, 2019
and a 9.7% increase from the $542.2 million at June 30, 2018.
CTBI’s annualized dividend yield to shareholders as of June 30,
2019 was 3.41%.
Asset Quality
CTBI’s total nonperforming loans, not including performing
troubled debt restructurings, were $24.0 million, or 0.75% of total
loans, at June 30, 2019 compared to $25.4 million, or 0.80% of
total loans, at March 31, 2019 and $22.0 million, or 0.69% of total
loans, at June 30, 2018. Accruing loans 90+ days past due decreased
$1.9 million from prior quarter but increased $3.9 million from
June 30, 2018. Nonaccrual loans increased $0.5 million during the
quarter but decreased $1.9 million from June 30, 2018. Accruing
loans 30-89 days past due at $30.6 million was an increase of $8.8
million from prior quarter and $7.1 million from June 30, 2018. The
increase in loans 30-89 days past due is primarily two credits,
both of which are well collateralized. Our loan portfolio
management processes focus on the immediate identification,
management, and resolution of problem loans to maximize recovery
and minimize loss. Impaired loans, loans not expected to meet
contractual principal and interest payments other than
insignificant delays, at June 30, 2019 totaled $54.6 million,
compared to $50.4 million at March 31, 2019 and $46.7 million at
June 30, 2018.
Our level of foreclosed properties at $22.5 million at June 30,
2019 was a $2.5 million decrease from the $25.0 million at March
31, 2019 and a $7.8 million decrease from the $30.3 million at June
30, 2018. Sales of foreclosed properties for the quarter ended June
30, 2019 totaled $2.1 million while new foreclosed properties
totaled $0.4 million. At June 30, 2019, the book value of
properties under contracts to sell was $1.6 million; however, the
closings had not occurred at quarter-end. Write-downs on foreclosed
properties for the second quarter 2019 totaled $0.7 million
compared to $0.4 million in the first quarter 2019 and $0.9 million
in the second quarter 2018. As disclosed in our Form 10-K for the
year ended December 31, 2018, CTBI is required to dispose of any
foreclosed property that has not been sold within 10 years. As of
December 31, 2018, foreclosed property with a total book value of
$2.4 million had been held by us for at least nine years. During
the first six months of 2019, we disposed of $1.8 million of this
total. At June 30, 2019, foreclosed property with a total book
value of $0.6 million had been held by us for at least nine
years.
Net loan charge-offs for the quarter ended June 30, 2019 were
$1.6 million, or 0.20% of average loans annualized, compared to
$1.1 million, or 0.14%, experienced for the first quarter 2019 and
$1.3 million, or 0.17%, for the second quarter 2018. Of the net
charge-offs for the quarter, $0.9 million were in commercial loans,
$0.2 million were in indirect consumer loans, $0.2 million were in
residential loans, and $0.3 million were in direct consumer loans.
Allocations to loan loss reserves were $1.6 million for the quarter
ended June 30, 2019 compared to $0.2 million for the quarter ended
March 31, 2019 and $1.9 million for the quarter ended June 30,
2018. Our reserve coverage (allowance for loan and lease loss
reserve to nonperforming loans) at June 30, 2019 was 146.0%
compared to 137.8% at March 31, 2019 and 162.6% at June 30, 2018.
Our loan loss reserve as a percentage of total loans outstanding at
June 30, 2019 and March 31, 2019 was 1.10%, down from the 1.13% at
June 30, 2018.
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; 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 and regulations 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 $4.4 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) June 30, 2019 (in thousands except per share
data and # of employees) Three Three Three Six Six Months
Months Months Months Months Ended Ended Ended Ended Ended June 30,
2019 March 31, 2019 June 30, 2018 June 30, 2019 June 30, 2018
Interest income
$
46,817
$
45,889
$
42,025
$
92,706
$
82,605
Interest expense
10,790
9,906
6,877
20,696
12,866
Net interest income
36,027
35,983
35,148
72,010
69,739
Loan loss provision
1,563
190
1,929
1,753
2,875
Gains on sales of loans
518
330
304
848
583
Deposit service charges
6,525
6,120
6,480
12,645
12,701
Trust revenue
2,765
2,575
2,856
5,340
5,814
Loan related fees
440
573
919
1,013
2,063
Securities gains (losses)
204
356
2
560
(286
)
Other noninterest income
1,800
2,216
3,179
4,016
6,175
Total noninterest income
12,252
12,170
13,740
24,422
27,050
Personnel expense
16,087
15,959
15,422
32,046
31,041
Occupancy and equipment
2,561
2,790
2,770
5,351
5,603
Data processing expense
1,789
1,763
1,634
3,552
3,270
FDIC insurance premiums
369
177
279
546
593
Other noninterest expense
9,224
8,394
12,334
17,618
20,613
Total noninterest expense
30,030
29,083
32,439
59,113
61,120
Net income before taxes
16,686
18,880
14,520
35,566
32,794
Income taxes
(1,638
)
3,941
2,921
2,303
5,381
Net income
$
18,324
$
14,939
$
11,599
$
33,263
$
27,413
Memo: TEQ interest income
$
47,009
$
46,109
$
42,253
$
93,118
$
83,057
Average shares outstanding
17,721
17,712
17,687
17,717
17,679
Diluted average shares outstanding
17,733
17,723
17,703
17,728
17,695
Basic earnings per share
$
1.03
$
0.84
$
0.66
$
1.88
$
1.55
Diluted earnings per share
$
1.03
$
0.84
$
0.66
$
1.88
$
1.55
Dividends per share
$
0.36
$
0.36
$
0.33
$
0.72
$
0.66
Average balances: Loans
$
3,178,903
$
3,195,348
$
3,131,964
$
3,187,080
$
3,121,610
Earning assets
4,069,323
3,966,483
3,928,066
4,018,187
3,899,314
Total assets
4,353,936
4,252,544
4,196,693
4,303,520
4,170,557
Deposits, including repurchase agreements
3,640,061
3,555,931
3,556,340
3,598,228
3,533,938
Interest bearing liabilities
2,883,586
2,813,957
2,818,168
2,848,964
2,800,410
Shareholders' equity
590,240
572,559
543,513
581,448
538,921
Performance ratios: Return on average assets
1.69
%
1.42
%
1.11
%
1.56
%
1.33
%
Return on average equity
12.45
%
10.58
%
8.56
%
11.54
%
10.26
%
Yield on average earning assets (tax equivalent)
4.63
%
4.71
%
4.31
%
4.67
%
4.30
%
Cost of interest bearing funds (tax equivalent)
1.50
%
1.43
%
0.98
%
1.46
%
0.93
%
Net interest margin (tax equivalent)
3.57
%
3.70
%
3.61
%
3.63
%
3.63
%
Efficiency ratio (tax equivalent)
62.22
%
60.57
%
66.05
%
61.39
%
62.67
%
Loan charge-offs
$
2,797
$
2,055
$
2,526
$
4,852
$
5,503
Recoveries
(1,228
)
(961
)
(1,179
)
(2,189
)
(2,248
)
Net charge-offs
$
1,569
$
1,094
$
1,347
$
2,663
$
3,255
Market Price: High
$
43.60
$
43.75
$
53.00
$
43.75
$
53.00
Low
$
39.45
$
38.03
$
43.95
$
38.03
$
43.00
Close
$
42.29
$
41.06
$
49.95
$
42.29
$
49.95
Community Trust Bancorp,
Inc.
Financial Summary
(Unaudited)
June 30, 2019
(in thousands except per share
data and # of employees)
As of As of As of June 30, 2019 March 31, 2019 June 30, 2018
Assets: Loans
$
3,192,207
$
3,189,732
$
3,169,042
Loan loss reserve
(34,998
)
(35,004
)
(35,771
)
Net loans
3,157,209
3,154,728
3,133,271
Loans held for sale
1,067
13,649
1,093
Securities AFS
591,586
599,299
585,764
Securities HTM
619
619
659
Equity securities at fair value
1,727
1,528
-
Other equity investments
16,247
17,148
22,814
Other earning assets
271,186
207,876
150,880
Cash and due from banks
52,545
49,302
54,987
Premises and equipment
44,404
44,554
46,483
Right of use asset
15,028
15,128
-
Goodwill and core deposit intangible
65,490
65,490
65,490
Other assets
160,149
143,972
143,745
Total Assets
$
4,377,257
$
4,313,293
$
4,205,186
Liabilities and Equity: NOW accounts
$
51,209
$
51,656
$
51,563
Savings deposits
1,445,166
1,366,093
1,156,601
CD's >=$100,000
569,829
578,043
694,641
Other time deposits
537,933
545,315
587,078
Total interest bearing deposits
2,604,137
2,541,107
2,489,883
Noninterest bearing deposits
833,044
841,996
819,525
Total deposits
3,437,181
3,383,103
3,309,408
Repurchase agreements
233,238
237,506
248,781
Other interest bearing liabilities
63,667
61,572
68,121
Lease liability
15,544
15,743
-
Other noninterest bearing liabilities
32,919
37,862
36,701
Total liabilities
3,782,549
3,735,786
3,663,011
Shareholders' equity
594,708
577,507
542,175
Total Liabilities and Equity
$
4,377,257
$
4,313,293
$
4,205,186
Ending shares outstanding
17,772
17,768
17,725
Memo: Market value of HTM securities
$
619
$
619
$
660
30 - 89 days past due loans
$
30,616
$
21,792
$
23,488
90 days past due loans
11,076
13,016
7,189
Nonaccrual loans
12,902
12,378
14,812
Restructured loans (excluding 90 days past due and nonaccrual)
60,713
57,553
56,814
Foreclosed properties
22,536
24,970
30,262
Other repossessed assets
-
-
83
Common equity Tier 1 capital
16.83
%
16.49
%
15.80
%
Tier 1 leverage ratio
13.61
%
13.62
%
13.11
%
Tier 1 risk-based capital ratio
18.67
%
18.34
%
17.67
%
Total risk based capital ratio
19.80
%
19.47
%
18.84
%
Tangible equity to tangible assets ratio
12.27
%
12.05
%
11.51
%
FTE employees
1,002
988
988
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190717005457/en/
Jean R. Hale, Chairman, President, and C.E.O., Community
Trust Bancorp, Inc. at (606) 437-3294
Community Trust Bancorp (NASDAQ:CTBI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Community Trust Bancorp (NASDAQ:CTBI)
Historical Stock Chart
From Jul 2023 to Jul 2024