Community Trust Bancorp, Inc. (NASDAQ:CTBI):
Earnings Summary
(in thousands except per share data)
1Q 2022
4Q 2021
1Q 2021
Net income
$19,728
$19,248
$23,618
Earnings per share
$1.11
$1.08
$1.33
Earnings per share – diluted
$1.11
$1.08
$1.33
Return on average assets
1.48%
1.41%
1.84%
Return on average equity
11.77%
10.94%
14.48%
Efficiency ratio
53.25%
55.40%
50.37%
Tangible common equity
10.93%
11.82%
11.27%
Dividends declared per share
$0.400
$0.400
$0.385
Book value per share
$36.53
$39.13
$37.14
Weighted average shares
17,820
17,796
17,774
Weighted average shares – diluted
17,832
17,820
17,787
Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved earnings
for the first quarter 2022 of $19.7 million, or $1.11 per basic
share, compared to $19.2 million, or $1.08 per basic share, earned
during the fourth quarter 2021 and $23.6 million, or $1.33 per
basic share, earned during the first quarter 2021. Noninterest
income remained relatively flat to prior quarter, but decreased
from prior year same quarter; however, our total revenue declined
from both periods, primarily as a result of a decline in interest
income on Paycheck Protection Program loans (PPP loans). Provision
for loan losses for the quarter was $0.9 million, compared to
provision of $0.5 million for the quarter ended December 31, 2021
and a recovery of provision of $2.5 million for the first quarter
2021.
1st Quarter 2022 Highlights
- Net interest income for the quarter of $40.0 million was $0.8
million, or 1.9%, below prior quarter and $0.2 million, or 0.5%,
below first quarter 2021.
- Provision for loan losses for the quarter was $0.9 million,
compared to provision of $0.5 million for the quarter ended
December 31, 2021 and a recovery of provision of $2.5 million for
the first quarter 2021.
- Our loan portfolio increased $106.7 million, an annualized
12.7%, during the quarter but was a decline of $23.3 million, or
0.7%, from March 31, 2021. Loans, excluding PPP loans, increased
$131.6 million during the quarter.
- Net loan charge-offs were $0.3 million, or 0.04% of average
loans annualized, for the quarter ended March 31, 2022 compared to
a net recovery of loan charge-offs for the fourth quarter 2021 of
$8 thousand and net loan charge-offs of $0.2 million, or 0.02% of
average loans annualized, for the first quarter 2021.
- Asset quality remains strong from prior quarter as our
nonperforming loans, excluding troubled debt restructurings,
decreased to $13.7 million at March 31, 2022 from $16.6 million at
December 31, 2021 and $21.0 million at March 31, 2021.
Nonperforming assets at $16.0 million decreased $4.1 million from
December 31, 2021 and $11.3 million from March 31, 2021.
- Deposits, including repurchase agreements, increased $67.5
million, an annualized 5.9%, during the quarter and $94.9 million,
or 2.1%, from March 31, 2021.
- Shareholders’ equity declined $44.8 million, or an annualized
26.0%, during the quarter due to a $58.1 million net after tax
increase in unrealized losses on our securities portfolio.
- Noninterest income for the quarter ended March 31, 2022 of
$15.0 million remained relatively flat to prior quarter, but
decreased $0.6 million, or 3.9%, from prior year same quarter.
- Noninterest expense for the quarter ended March 31, 2022 of
$29.4 million decreased $1.8 million, or 5.7%, from prior quarter,
but increased $1.0 million, or 3.7%, from prior year same
quarter.
Net Interest Income
Percent Change
1Q 2022 Compared to:
($ in thousands)
1Q
2022
4Q
2021
1Q
2021
4Q
2021
1Q
2021
Components of net interest income
Income on earning assets, tax
equivalent
$43,762
$44,581
$44,428
(1.8)%
(1.5)%
Expense on interest bearing
liabilities
3,495
3,541
3,969
(1.3)%
(11.9)%
Net interest income, tax equivalent
$40,267
$41,040
$40,459
(1.9)%
(0.5)%
Average yield and rates paid
Earning assets yield
3.46%
3.45%
3.63%
0.3%
(4.9)%
Rate paid on interest bearing
liabilities
0.42%
0.42%
0.48%
0.5%
(12.3)%
Gross interest margin
3.04%
3.03%
3.15%
0.3%
(3.7)%
Net interest margin
3.18%
3.17%
3.31%
0.3%
(3.9)%
Average balances
Investment securities
$1,486,799
$1,498,781
$1,063,773
(0.8)%
39.8%
Loans
$3,440,439
$3,381,206
$3,548,358
1.8%
(3.0)%
Earning assets
$5,134,150
$5,133,843
$4,957,636
0.0%
3.6%
Interest-bearing liabilities
$3,350,208
$3,337,053
$3,335,206
0.4%
0.4%
Net interest income for the quarter of $40.0 million was $0.8
million, or 1.9%, below prior quarter and $0.2 million, or 0.5%,
below first quarter 2021. Our net interest income excluding PPP
loans for the quarter ended March 31, 2022 was $38.6 million
compared to $38.3 million for the quarter ended December 31, 2021
and $36.3 million for the quarter ended March 31, 2021. Our net
interest margin, on a fully tax equivalent basis, at 3.18%
increased 1 basis point from prior quarter but decreased 13 basis
points from prior year same quarter, as our average earning assets
increased $0.3 million from prior quarter and $176.5 million from
prior year same quarter. Our yield on average earning assets
increased 1 basis point from prior quarter but decreased 17 basis
points from prior year same quarter, and our cost of funds remained
unchanged from prior quarter but decreased 6 basis points from
prior year same quarter. As discussed more fully below, the impact
of the PPP loans to the net interest margin for the first quarter
2022 was 11 basis points.
The PPP loan portfolio had an annualized yield for the quarter
of 17.03% compared to 13.61% for the fourth quarter 2021. Interest
income on the portfolio was $86 thousand during the quarter, down
$98 thousand from prior quarter, while the amortization of net loan
origination fees from current outstanding loans and recognition of
net fee income from paid and forgiven loans was $1.4 million, down
$0.9 million from prior quarter. These fees are amortized over the
life of the loan with any unamortized balance fully recognized at
the time of loan forgiveness. The impact of the PPP loan portfolio
to the net interest margin was an increase of 11 basis points for
the first quarter 2022 compared to an increase of 15 basis points
for the fourth quarter 2021.
Our ratio of average loans to deposits, including repurchase
agreements, was 74.2% for the quarter ended March 31, 2022 compared
to 73.3% for the quarter ended December 31, 2021 and 79.9% for the
quarter ended March 31, 2021.
Noninterest Income
Percent Change
1Q 2022 Compared to:
($ in thousands)
1Q
2022
4Q
2021
1Q
2021
4Q
2021
1Q
2021
Deposit related fees
$6,746
$7,083
$6,022
(4.8)%
12.0%
Trust revenue
3,248
3,305
2,951
(1.7)%
10.1%
Gains on sales of loans
597
1,241
2,433
(51.9)%
(75.5)%
Loan related fees
2,062
1,254
2,270
64.4%
(9.2)%
Bank owned life insurance revenue
691
1,036
573
(33.3)%
20.5%
Brokerage revenue
590
432
457
36.5%
29.3%
Other
1,031
626
871
64.8%
18.4%
Total noninterest income
$14,965
$14,977
$15,577
(0.1)%
(3.9)%
Noninterest income for the quarter ended March 31, 2022 of $15.0
million was relatively flat to prior quarter, but a decrease of
$0.6 million, or 3.9%, from prior year same quarter. Decreases from
prior quarter in gains on sales of loans ($0.6 million) and deposit
related fees ($0.3 million) were offset by increases in loan
related fees ($0.8 million) and securities gains ($0.3 million).
The decrease from prior year same quarter included decreases in
gains on sales of loans ($1.8 million) and loan related fees ($0.2
million), partially offset by increases in deposit related fees
($0.7 million), trust revenue ($0.3 million), and securities gains
($0.2 million). Gains on sales of loans were impacted by the
slowdown in the industry-wide mortgage refinancing boom. Deposit
related fees were primarily impacted by debit card income. Loan
related fees were primarily impacted by the change in the fair
market value of mortgage servicing rights.
Noninterest Expense
Percent Change
1Q 2022 Compared to:
($ in thousands)
1Q
2022
4Q
2021
1Q
2021
4Q
2021
1Q
2021
Salaries
$11,739
$11,982
$11,412
(2.0)%
2.9%
Employee benefits
5,799
7,486
5,421
(22.5)%
7.0%
Net occupancy and equipment
2,854
2,625
2,828
8.7%
0.9%
Data processing
2,201
2,099
2,159
4.8%
1.9%
Legal and professional fees
867
868
893
(0.1)%
(2.8)%
Advertising and marketing
752
676
722
11.2%
4.1%
Taxes other than property and payroll
426
542
370
(21.3)%
15.2%
Net other real estate owned expense
353
299
318
17.8%
11.0%
Other
4,368
4,572
4,187
(4.4)%
4.3%
Total noninterest expense
$29,359
$31,149
$28,310
(5.7)%
3.7%
Noninterest expense for the quarter ended March 31, 2022 of
$29.4 million decreased $1.8 million, or 5.7%, from prior quarter,
but increased $1.0 million, or 3.7%, from prior year same quarter.
The decrease in noninterest expense quarter over quarter was the
result of a decrease in personnel expense ($1.9 million), which was
primarily due to a lower accrual for bonuses and incentives. The
increase from prior year same quarter was primarily the result of
an increase in personnel expense year over year ($0.7 million) and
loan related expenses ($0.2 million). This increase in personnel
expense included increases in salaries, group medical and life
insurance expense, and other employee benefits.
Balance Sheet Review
Total Loans
Percent Change
1Q 2022 Compared to:
($ in thousands)
1Q
2022
4Q
2021
1Q
2021
4Q
2021
1Q
2021
Commercial nonresidential real estate
$774,791
$757,892
$732,978
2.2%
5.7%
Commercial residential real estate
337,447
335,233
305,079
0.7%
10.6%
Hotel/motel
274,256
257,062
258,974
6.7%
5.9%
SBA guaranteed PPP loans
22,482
47,335
254,732
(52.5)%
(91.2)%
Other commercial
394,875
359,931
348,721
9.7%
13.2%
Total commercial
1,803,851
1,757,453
1,900,484
2.6%
(5.1)%
Residential mortgage
780,453
767,185
770,026
1.7%
1.4%
Home equity loans/lines
107,230
106,667
101,595
0.5%
5.5%
Total residential
887,683
873,852
871,621
1.6%
1.8%
Consumer indirect
667,387
620,825
617,305
7.5%
8.1%
Consumer direct
156,620
156,683
149,394
(0.0)%
4.8%
Total consumer
824,007
777,508
766,699
6.0%
7.5%
Total loans
$3,515,541
$3,408,813
$3,538,804
3.1%
(0.7)%
Total Deposits and Repurchase
Agreements
Percent Change
1Q 2022 Compared to:
($ in thousands)
1Q
2022
4Q
2021
1Q
2021
4Q
2021
1Q
2021
Non-interest bearing deposits
$1,398,529
$1,331,103
$1,283,309
5.1%
9.0%
Interest bearing deposits
Interest checking
89,863
97,064
91,803
(7.4)%
(2.1)%
Money market savings
1,200,408
1,206,401
1,240,530
(0.5)%
(3.2)%
Savings accounts
666,874
632,645
574,181
5.4%
16.1%
Time deposits
1,072,630
1,077,079
1,043,949
(0.4)%
2.7%
Repurchase agreements
254,623
271,088
354,235
(6.1)%
(28.1)%
Total interest bearing deposits and
repurchase agreements
3,284,398
3,284,277
3,304,698
0.0%
(0.6)%
Total deposits and repurchase
agreements
$4,682,927
$4,615,380
$4,588,007
1.5%
2.1%
CTBI’s total assets at $5.4 billion increased $24.9 million, or
1.9% annualized, from December 31, 2021 and $83.0 million, or 1.5%,
from March 31, 2021. Loans outstanding at March 31, 2022 were $3.5
billion, an increase of $106.7 million, an annualized 12.7%, from
December 31, 2021 but a decrease of $23.3 million, or 0.7%, from
March 31, 2021. Loans, excluding PPP loans, increased $131.6
million during the quarter, with a $71.3 million increase in the
commercial loan portfolio, an $46.5 million increase in the
indirect consumer loan portfolio, and a $13.8 million increase in
the residential loan portfolio. The PPP loan portfolio declined
during the quarter $24.9 million as a result of SBA forgiveness.
CTBI’s investment portfolio increased $47.8 million, or an
annualized 13.3%, from December 31, 2021 and $348.1 million, or
30.1%, from March 31, 2021. Deposits in other banks decreased
$159.1 million from prior quarter and $250.3 million from prior
year same quarter. Deposits in other banks were used during the
quarter to fund loan growth and additional investments in
available-for-sale securities. Deposits, including repurchase
agreements, at $4.7 billion increased $67.5 million, or an
annualized 5.9%, from December 31, 2021 and $94.9 million, or 2.1%,
from March 31, 2021.
Shareholders’ equity at March 31, 2022 was $653.4 million, a
$44.8 million, or an annualized 26.0%, decrease from the $698.2
million at December 31, 2021 and an $8.7 million, or 1.3%, decrease
from the $662.1 million at March 31, 2021. The decline in
shareholders’ equity is due to a $58.1 million net after tax
increase during the quarter in unrealized losses on our securities
portfolio. CTBI’s annualized dividend yield to shareholders as of
March 31, 2022 was 3.88%.
Asset Quality
CTBI’s total nonperforming loans, not including performing
troubled debt restructurings, decreased to $13.7 million at March
31, 2022 from $16.6 million at December 31, 2021 and $21.0 million
at March 31, 2021. Accruing loans 90+ days past due at $4.9 million
decreased $1.1 million from prior quarter and $4.0 million from
March 31, 2021. Nonaccrual loans at $8.8 million decreased $1.8
million during the quarter and $3.4 million from March 31, 2021.
Accruing loans 30-89 days past due at $10.8 million remained
relatively stable from prior quarter but decreased $2.4 million
from March 31, 2021. Our loan portfolio management processes focus
on the immediate identification, management, and resolution of
problem loans to maximize recovery and minimize loss.
Our level of foreclosed properties at $2.3 million at March 31,
2022 was a $1.2 million decrease from the $3.5 million at December
31, 2021 and a $3.9 million decrease from the $6.2 million at March
31, 2021. Sales of foreclosed properties for the quarter ended
March 31, 2022 totaled $1.1 million while new foreclosed properties
totaled $0.1 million. At March 31, 2022, the book value of
properties under contracts to sell was $0.3 million; however, the
closings had not occurred at quarter-end.
Net loan charge-offs were $0.3 million, or 0.04% of average
loans annualized, for the quarter ended March 31, 2022 compared to
a net recovery of loan charge-offs for the fourth quarter 2021 of
$8 thousand and net loan charge-offs of $0.2 million, or 0.02% of
average loans annualized, for the first quarter 2021.
Allowance for Credit Losses
Provision for loan losses for the quarter was $0.9 million,
compared to provision of $0.5 million for the quarter ended
December 31, 2021 and a recovery of provision of $2.5 million for
the first quarter 2021. Our reserve coverage (allowance for credit
losses to nonperforming loans) at March 31, 2022 was 309.1%
compared to 251.2% at December 31, 2021 and 215.5% at March 31,
2021. Our credit loss reserve as a percentage of total loans
outstanding at March 31, 2022 was 1.20% (1.21% excluding PPP loans)
compared to 1.22% at December 31, 2021 (1.24% excluding PPP loans)
and 1.28% at March 31, 2021 (1.38% excluding PPP loans).
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; the effects of the COVID-19 pandemic on our
business operations and credit quality and on general economic and
financial market conditions, as well as our ability to respond to
the related challenges; 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, regulations, and enforcement
actions 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 $5.4 billion, is
headquartered in Pikeville, Kentucky and has 69 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) March 31, 2022 (in thousands except per
share data and # of employees) Three Three Three Months
Months Months Ended Ended Ended March 31, 2022 December 31, 2021
March 31, 2021 Interest income
$
43,527
$
44,357
$
44,211
Interest expense
3,495
3,541
3,969
Net interest income
40,032
40,816
40,242
Loan loss provision
875
533
(2,499
)
Gains on sales of loans
597
1,241
2,433
Deposit related fees
6,746
7,083
6,022
Trust revenue
3,248
3,305
2,951
Loan related fees
2,062
1,254
2,270
Securities gains (losses)
99
(208
)
(168
)
Other noninterest income
2,213
2,302
2,069
Total noninterest income
14,965
14,977
15,577
Personnel expense
17,538
19,468
16,833
Occupancy and equipment
2,854
2,625
2,828
Data processing expense
2,201
2,099
2,159
FDIC insurance premiums
355
339
326
Other noninterest expense
6,411
6,618
6,164
Total noninterest expense
29,359
31,149
28,310
Net income before taxes
24,763
24,111
30,008
Income taxes
5,035
4,863
6,390
Net income
$
19,728
$
19,248
$
23,618
Memo: TEQ interest income
$
43,762
$
44,581
$
44,428
Average shares outstanding
17,820
17,796
17,774
Diluted average shares outstanding
17,832
17,820
17,787
Basic earnings per share
$
1.11
$
1.08
$
1.33
Diluted earnings per share
$
1.11
$
1.08
$
1.33
Dividends per share
$
0.400
$
0.400
$
0.385
Average balances: Loans
$
3,440,439
$
3,381,206
$
3,548,358
Earning assets
5,134,150
5,133,843
4,957,636
Total assets
5,417,800
5,418,854
5,219,406
Deposits, including repurchase agreements
4,633,988
4,612,010
4,442,647
Interest bearing liabilities
3,350,208
3,337,053
3,335,206
Shareholders' equity
679,527
697,727
661,302
Performance ratios: Return on average assets
1.48
%
1.41
%
1.84
%
Return on average equity
11.77
%
10.94
%
14.48
%
Yield on average earning assets (tax equivalent)
3.46
%
3.45
%
3.63
%
Cost of interest bearing funds (tax equivalent)
0.42
%
0.42
%
0.48
%
Net interest margin (tax equivalent)
3.18
%
3.17
%
3.31
%
Efficiency ratio (tax equivalent)
53.25
%
55.40
%
50.37
%
Loan charge-offs
$
1,320
$
865
$
1,470
Recoveries
(998
)
(873
)
(1,293
)
Net charge-offs
$
322
$
(8
)
$
177
Market Price: High
$
46.30
$
46.21
$
47.53
Low
$
40.53
$
41.05
$
36.02
Close
$
41.20
$
43.61
$
44.03
As of As of As of March 31, 2022 December 31, 2021 March 31,
2021
Assets: Loans
$
3,515,541
$
3,408,813
$
3,538,804
Loan loss reserve
(42,309
)
(41,756
)
(45,346
)
Net loans
3,473,232
3,367,057
3,493,458
Loans held for sale
1,941
2,632
17,748
Securities AFS
1,503,165
1,455,429
1,155,195
Equity securities at fair value
2,352
2,253
2,243
Other equity investments
13,026
13,026
14,858
Other earning assets
108,222
267,286
358,529
Cash and due from banks
58,352
46,558
66,664
Premises and equipment
40,738
40,479
40,997
Right of use asset
11,941
12,148
12,787
Goodwill and core deposit intangible
65,490
65,490
65,490
Other assets
164,674
145,899
132,150
Total Assets
$
5,443,133
$
5,418,257
$
5,360,119
Liabilities and Equity: Interest bearing checking
$
89,863
$
97,064
$
91,803
Savings deposits
1,867,282
1,839,046
1,814,711
CD's >=$100,000
590,476
589,853
547,767
Other time deposits
482,154
487,226
496,182
Total interest bearing deposits
3,029,775
3,013,189
2,950,463
Noninterest bearing deposits
1,398,529
1,331,103
1,283,309
Total deposits
4,428,304
4,344,292
4,233,772
Repurchase agreements
254,623
271,088
354,235
Other interest bearing liabilities
58,711
58,716
58,731
Lease liability
12,796
13,005
13,549
Other noninterest bearing liabilities
35,328
32,954
37,763
Total liabilities
4,789,762
4,720,055
4,698,050
Shareholders' equity
653,371
698,202
662,069
Total Liabilities and Equity
$
5,443,133
$
5,418,257
$
5,360,119
Ending shares outstanding
17,884
17,843
17,826
30 - 89 days past due loans
$
10,838
$
10,874
$
13,204
90 days past due loans
4,858
5,954
8,816
Nonaccrual loans
8,832
10,671
12,223
Restructured loans (excluding 90 days past due and nonaccrual)
70,814
69,827
68,485
Foreclosed properties
2,299
3,486
6,224
Community bank leverage ratio
13.15
%
13.00
%
12.70
%
Tangible equity to tangible assets ratio
10.93
%
11.82
%
11.27
%
FTE employees
963
974
970
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220420005293/en/
Mark A. Gooch Vice Chairman, President, and CEO Community Trust
Bancorp, Inc. (606) 437-3229
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