Community Trust Bancorp, Inc. (NASDAQ: CTBI):
Earnings Summary | ||||||||||
(in thousands except per share data) | 3Q 2023 | 2Q 2023 | 3Q 2022 | YTD 2023 | YTD 2022 | |||||
Net income | $20,628 | $19,404 | $19,372 | $59,345 | $59,371 | |||||
Earnings per share | $1.15 | $1.09 | $1.09 | $3.32 | $3.33 | |||||
Earnings per share - diluted | $1.15 | $1.08 | $1.08 | $3.32 | $3.33 | |||||
Return on average assets | 1.46% | 1.41% | 1.40% | 1.44% | 1.46% | |||||
Return on average equity | 12.30% | 11.72% | 12.08% | 12.02% | 12.20% | |||||
Efficiency ratio | 52.66% | 53.52% | 53.70% | 53.82% | 53.58% | |||||
Tangible common equity | 10.55% | 10.90% | 9.93% | |||||||
Dividends declared per share | $0.46 | $0.44 | $0.44 | $1.34 | $1.24 | |||||
Book value per share | $36.30 | $36.71 | $33.66 | |||||||
Weighted average shares | 17,893 | 17,884 | 17,841 | 17,882 | 17,832 | |||||
Weighted average shares - diluted | 17,904 | 17,890 | 17,857 | 17,892 | 17,844 |
Community Trust Bancorp, Inc. (NASDAQ: CTBI) achieved earnings for the third quarter 2023 of $20.6 million, or $1.15 per basic share, compared to $19.4 million, or $1.09 per basic share, earned during the second quarter 2023 and $19.4 million, or $1.09 per basic share, earned during the third quarter 2022. Total revenue was $0.8 million above prior quarter and $0.4 million above prior year same quarter. Net interest revenue increased $0.1 million compared to prior quarter but decreased $0.4 million compared to prior year same quarter, and noninterest income increased $0.7 million compared to prior quarter and $0.8 million compared to prior year same quarter. Our provision for credit losses for the quarter decreased $0.1 million for the quarter and $0.5 million from prior year third quarter. Noninterest expense decreased $0.2 million compared to prior quarter and $0.6 million compared to prior year same quarter. Earnings for the nine months ended September 30, 2023 were $59.3 million, or $3.32 per basic share, compared to $59.4 million, or $3.33 per basic share for the nine months ended September 30, 2022.
3rd Quarter 2023 Highlights
- Net interest income for the quarter of $43.1 million was $0.1 million above prior quarter but $0.4 million below prior year same quarter, as our net interest margin decreased 8 basis points from prior quarter and 9 basis points from prior year same quarter.
- Provision for credit losses at $1.9 million for the quarter decreased $0.1 million from prior quarter and $0.5 million from prior year same quarter.
- Our loan portfolio at $4.0 billion increased $55.3 million, an annualized 5.6%, from June 30, 2023 and $354.4 million, or 9.8%, from September 30, 2022.
- We had net loan charge-offs of $1.2 million, or 0.12% of average loans annualized, for the third quarter 2023 compared to $0.7 million, or 0.07% of average loans annualized, for the second quarter 2023 and $0.3 million, or 0.04% of average loans annualized, for the quarter ended September 30, 2022.
- Our total nonperforming loans increased to $13.0 million at September 30, 2023 from $11.7 million at June 30, 2023 but decreased $0.7 million from the $13.7 million at September 30, 2022. Nonperforming assets at $15.2 million increased $1.4 million from June 30, 2023 but decreased $0.4 million from September 30, 2022.
- Deposits, including repurchase agreements, at $4.9 billion increased $114.8 million, or an annualized 9.6%, from June 30, 2023 and $95.3 million, or 2.0% from September 30, 2022.
- Shareholders’ equity at $653.0 million decreased $7.1 million, or an annualized 4.3%, during the quarter but increased $50.5 million, or 8.4%, from September 30, 2022.
- Net unrealized losses on securities, net of deferred taxes, were $141.4 million at September 30, 2023, compared to $121.3 million at June 30, 2023 and $139.4 million at September 30, 2022. Management has evaluated the unrealized losses and determined that they were primarily driven by market rates. Management has the ability and intent to hold these securities to recovery or maturity.
- Noninterest income for the quarter ended September 30, 2023 of $15.5 million was $0.7 million, or 5.0%, above prior quarter and $0.8 million, or 5.6%, above prior year same quarter.
- Noninterest expense for the quarter ended September 30, 2023 of $30.8 million was $0.2 million, or 0.6%, below prior quarter and $0.6 million, or 2.0%, below prior year same quarter.
Net Interest Income
Percent Change | ||||||||||||||||
3Q 2023 Compared to: | ||||||||||||||||
($ in thousands) | 3Q 2023 | 2Q 2023 | 3Q 2022 | 2Q 2023 | 3Q 2022 | YTD 2023 | YTD 2022 | Percent Change | ||||||||
Components of net interest income: | ||||||||||||||||
Income on earning assets | $69,499 | $64,827 | $51,405 | 7.2% | 35.2% | $195,321 | $140,284 | 39.2% | ||||||||
Expense on interest bearing liabilities | 26,359 | 21,748 | 7,869 | 21.2% | 234.9% | 65,186 | 15,926 | 309.3% | ||||||||
Net interest income | 43,140 | 43,079 | 43,536 | 0.1% | (0.9%) | 130,135 | 124,358 | 4.6% | ||||||||
TEQ | 298 | 298 | 240 | 0.0% | 24.1% | 894 | 707 | 26.4% | ||||||||
Net interest income, tax equivalent | $43,438 | $43,377 | $43,776 | 0.1% | (0.8%) | $131,029 | $125,065 | 4.8% | ||||||||
Average yield and rates paid: | ||||||||||||||||
Earning assets yield | 5.25% | 5.03% | 3.97% | 4.3% | 32.3% | 5.05% | 3.66% | 37.8% | ||||||||
Rate paid on interest bearing liabilities | 2.93% | 2.54% | 0.93% | 15.4% | 215.4% | 2.52% | 0.63% | 298.1% | ||||||||
Gross interest margin | 2.32% | 2.49% | 3.04% | (7.0%) | (23.7%) | 2.53% | 3.03% | (16.7%) | ||||||||
Net interest margin | 3.27% | 3.35% | 3.36% | (2.5%) | (2.9%) | 3.37% | 3.25% | 3.7% | ||||||||
Average balances: | ||||||||||||||||
Investment securities | $1,178,707 | $1,230,556 | $1,380,881 | (4.2%) | (14.6%) | $1,220,135 | $1,438,769 | (15.2%) | ||||||||
Loans | $3,952,096 | $3,836,446 | $3,568,174 | 3.0% | 10.8% | $3,843,441 | $3,516,114 | 9.3% | ||||||||
Earning assets | $5,274,542 | $5,189,716 | $5,163,624 | 1.6% | 2.1% | $5,199,072 | $5,146,251 | 1.0% | ||||||||
Interest-bearing liabilities | $3,567,343 | $3,435,072 | $3,359,242 | 3.9% | 6.2% | $3,455,666 | $3,361,097 | 2.8% | ||||||||
Net interest income for the quarter of $43.1 million was $0.1 million above prior quarter but $0.4 million below prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.27% decreased 8 basis points from prior quarter and 9 basis points from prior year same quarter. Our average earning assets increased $84.8 million from prior quarter and $110.9 million from prior year same quarter. Our yield on average earning assets increased 22 basis points from prior quarter and 128 basis points from prior year same quarter, and our cost of funds increased 39 basis points from prior quarter and 200 basis points from prior year same quarter. Our net interest income for the nine months ended September 30, 2023 was $130.1 million compared to $124.4 million for the nine months ended September 30, 2022.
Our ratio of average loans to deposits, including repurchase agreements, was 83.2% for the quarter ended September 30, 2023 compared to 81.2% for the quarter ended June 30, 2023 and 75.4% for the quarter ended September 30, 2022.
Noninterest Income
Percent Change | ||||||||||||||||
3Q 2023 Compared to: | ||||||||||||||||
($ in thousands) | 3Q 2023 | 2Q 2023 | 3Q 2022 | 2Q 2023 | 3Q 2022 | YTD 2023 | YTD 2022 | Percent Change | ||||||||
Deposit related fees | $7,823 | $7,513 | $7,629 | 4.1% | 2.5% | $22,623 | $21,638 | 4.6% | ||||||||
Trust revenue | 3,277 | 3,351 | 2,989 | (2.2%) | 9.6% | 9,707 | 9,435 | 2.9% | ||||||||
Gains on sales of loans | 105 | 115 | 235 | (8.8%) | (55.3%) | 341 | 1,351 | (74.7%) | ||||||||
Loan related fees | 1,283 | 1,197 | 1,589 | 7.2% | (19.3%) | 3,325 | 5,066 | (34.4%) | ||||||||
Bank owned life insurance revenue | 1,108 | 735 | 743 | 50.7% | 49.1% | 2,701 | 2,136 | 26.5% | ||||||||
Brokerage revenue | 452 | 388 | 453 | 16.5% | (0.2%) | 1,188 | 1,502 | (20.9%) | ||||||||
Other | 1,448 | 1,457 | 1,041 | (0.6%) | 39.1% | 4,049 | 3,017 | 34.2% | ||||||||
Total noninterest income | $15,496 | $14,756 | $14,679 | 5.0% | ||||||||||||
