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CT

COMMUNITY TRUST BANCORP INC /KY/ (CTBI)·Q1 2025 Earnings Summary

Executive Summary

  • EPS of $1.22, up 17% YoY and down 2% QoQ, beat Wall Street consensus by ~$0.03; S&P Global consensus EPS was $1.1867 and actual EPS $1.22 (beat). Revenue missed S&P consensus ($64.92M* vs $62.60M* actual), driven by lower deposit- and loan-related fees; company “total revenue” rose QoQ and YoY on NIM expansion *.
  • Net interest margin expanded 14 bps QoQ and 34 bps YoY to 3.57% (tax-equivalent), lifting net interest income 3.5% QoQ and 17.6% YoY; efficiency ratio held ~52% .
  • Loan growth was robust (+3.3% QoQ, +11.4% YoY), deposits rose (+0.9% QoQ, +6.8% YoY); asset quality mixed with higher NPAs YoY but stable QoQ NPLs; provision increased to fund growth .
  • Dividend maintained at $0.47 per share; no formal guidance provided. Near-term stock narrative: margin expansion and loan growth vs fee-pressure and elevated NPAs/NPL trajectory .

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expansion to 3.57% drove net interest income growth (+3.5% QoQ, +17.6% YoY); average earning assets and loan-to-deposit ratio increased, supporting spread and volume .
  • Strong loan growth across commercial, residential, and indirect consumer pushed total loans to $4.64B (+$150M QoQ; +$475M YoY), fueling revenue momentum .
  • Capital and equity strengthened: shareholders’ equity rose to $784.2M (+$26.6M QoQ); unrealized securities losses improved QoQ, enhancing tangible equity metrics .

Management quote (press release narrative): “Net interest income for the quarter of $51.3 million was $1.7 million, or 3.5%, above prior quarter and $7.7 million, or 17.6%, above prior year same quarter, as our net interest margin increased 14 basis points from prior quarter and 34 basis points from prior year same quarter.”

What Went Wrong

  • Noninterest income fell 7.8% QoQ, primarily from lower deposit-related fees (-$0.8M) and loan-related fees (-$0.5M) as mortgage servicing rights valuation declined .
  • Provision for credit losses rose to $3.6M (+$1.0M QoQ), with $2.0M to support loan growth; net charge-offs increased QoQ to $1.6M (0.14% annualized) .
  • Asset quality pressure YoY: NPLs and NPAs higher vs prior year; although NPLs were slightly down QoQ, NPAs ticked up QoQ to $31.3M .

Financial Results

Core Financials vs prior quarters

MetricQ3 2024Q4 2024Q1 2025
Total Revenue (Company, Net Interest Income + Noninterest Income) ($USD Millions)$62.76 $65.69 $66.16
Net Interest Income ($USD Millions)$47.20 $49.53 $51.27
Noninterest Income ($USD Millions)$15.56 $16.16 $14.90
Diluted EPS ($USD)$1.23 $1.25 $1.22
Net Interest Margin (Tax-Equivalent, %)3.39% 3.43% 3.57%
Efficiency Ratio (Tax-Equivalent, %)51.75% 51.60% 51.86%
ROAA (%)1.50% 1.47% 1.44%
ROAE (%)11.77% 11.77% 11.50%

Note: Company “Total Revenue” is defined here as net interest income + total noninterest income from primary disclosures.

Estimates vs Actuals (S&P Global)

MetricQ1 2025 ConsensusQ1 2025 ActualSurprise
EPS ($USD)$1.1867*$1.22 +$0.0333 (beat)*
Revenue ($USD)$64.92M*$62.60M*-$2.32M (miss)*

Values retrieved from S&P Global.*

Segment and Mix

Loan Portfolio Breakdown ($USD Millions)

CategoryQ3 2024Q4 2024Q1 2025
Commercial Nonresidential RE$834.99 $865.03 $913.24
Commercial Residential RE$485.00 $508.31 $535.43
Hotel/Motel$453.47 $458.83 $475.58
Other Commercial$440.64 $440.51 $433.38
Residential Mortgage$1,003.12 $1,043.40 $1,066.97
Home Equity Loans/Lines$163.01 $167.43 $172.69
Consumer Indirect$816.19 $850.29 $888.64
Consumer Direct$154.06 $152.84 $150.61
Total Loans$4,350.47 $4,486.64 $4,636.54

Deposits and Repurchase Agreements ($USD Millions)

CategoryQ3 2024Q4 2024Q1 2025
Noninterest Bearing Deposits$1,204.52 $1,242.68 $1,235.54
Interest Checking$156.25 $167.74 $158.97
Money Market Savings$1,658.76 $1,781.42 $1,828.05
Savings Accounts$501.93 $511.38 $516.38
Time Deposits$1,316.81 $1,366.98 $1,372.36
Repurchase Agreements$233.32 $240.17 $246.56
Total Deposits + Repos$5,071.59 $5,310.36 $5,357.86

KPIs and Asset Quality

KPIQ3 2024Q4 2024Q1 2025
Total Assets ($USD Billions)$6.00 $6.19 $6.28
Loans/Deposits (Avg) (%)85.8% 84.4% 85.9%
NPLs ($USD Millions)$25.1 $26.7 $26.5
NPAs ($USD Millions)$26.4 $30.3 $31.3
Net Charge-offs ($USD Millions)$1.52 $0.98 $1.58
Net Charge-offs (% avg loans, annualized)0.14% 0.09% 0.14%
Provision for Credit Losses ($USD Millions)$2.74 $2.59 $3.57
ACL / Total Loans (%)1.23% 1.23% 1.23%
Reserve Coverage (ACL / NPLs) (%)212.7% 206.0% 214.7%
90+ DPD ($USD Millions)$19.1 $10.3 $10.8
30–89 DPD ($USD Millions)$20.6 $16.8 $14.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNot provided Not provided Maintained
Margins (NIM)FY/QuarterNot provided Not provided Maintained
OpExFY/QuarterNot provided Not provided Maintained
Tax RateFY/QuarterNot provided Not provided Maintained
Dividend per ShareQ1 2025$0.47 (declared Jan 28, 2025) $0.47 (declared Apr 22, 2025) Maintained

Note: CTBI does not provide formal quantitative guidance in its earnings materials.

Earnings Call Themes & Trends

No Q1 2025 earnings call transcript was available; we searched the document catalog and transcripts and found none (earnings-call-transcript) for the April–June 2025 window.

TopicPrevious Mentions (Q3 2024)Previous Mentions (Q4 2024)Current Period (Q1 2025)Trend
Net Interest MarginNIM rose to 3.39% (+1 bp QoQ; +12 bps YoY) on higher earning asset yields; cost of funds up QoQ NIM rose to 3.43% (+4 bps QoQ) with lower cost of funds NIM expanded to 3.57% (+14 bps QoQ) with yields up and cost of funds down Improving
Loan GrowthTotal loans +2.1% QoQ; broad-based commercial/residential growth Total loans +3.1% QoQ; strong commercial/residential/indirect consumer Total loans +3.3% QoQ; strength across commercial, residential, indirect consumer Strong
Deposits & MixDeposits +2.2% QoQ; interest-bearing mix rising Deposits +4.7% QoQ; growth in interest-bearing products Deposits +0.9% QoQ; continued growth; interest-bearing balances up Stable to improving
Asset QualityNPLs increased to $25.1M; 90+ DPD elevated; NPAs $26.4M NPLs increased to $26.7M; NPAs $30.3M; USDA-guaranteed credit added to nonaccruals NPLs $26.5M (slightly down QoQ); NPAs $31.3M (up QoQ, up YoY) Mixed
Securities & Unrealized LossesUnrealized losses improved QoQ; AFS down YoY Unrealized losses rose QoQ; YoY improved; equity impacted Unrealized losses decreased QoQ; tangible equity stronger Improving QoQ
Fees & Noninterest IncomeFlat YoY; variability in BOLI and loan-related fees Up QoQ/YoY; MSR valuation helped; BOLI down QoQ Down QoQ; lower deposit-related and loan-related fees; MSR valuation headwind Soft

Management Commentary

  • Strategic focus: Management emphasized margin expansion and balance sheet optimization, noting NIM increased 14 bps QoQ and 34 bps YoY, which drove the $1.7M QoQ increase in net interest income .
  • Balance sheet actions: Investment portfolio runoff/maturities were reinvested into loans to support higher-yielding assets; AFS securities down $46.7M QoQ .
  • Credit provisioning: Provision increased to $3.6M, with $2.0M allotted to fund loan growth; reserve coverage rose to 214.7% .

Selected quote (press release narrative): “Our net interest margin, on a fully tax equivalent basis, at 3.57% increased 14 basis points from prior quarter and 34 basis points from prior year same quarter.”

Q&A Highlights

No Q1 2025 earnings call transcript was available; we searched the document catalog for earnings-call-transcript (Apr–Jun 2025) and found none.

Estimates Context

  • EPS: CTBI delivered $1.22 vs S&P consensus $1.1867; positive surprise ~$+$0.0333. Three estimates contributed to consensus; potential upward revisions if NIM expansion persists*.
  • Revenue: S&P “Revenue” actual $62.60M vs consensus $64.92M; negative surprise ~$-$2.32M. Note: Company “total revenue” (net interest income + noninterest income) was $66.16M, indicating definitional differences in S&P’s revenue taxonomy for banks*.
  • Implications: Models may raise NIM trajectory and net interest income while trimming fee-income assumptions (deposit and loan-related fees), and modestly lifting provision run-rate for growth*.

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Margin-led earnings quality: Continued NIM expansion to 3.57% is the central driver; monitor cost of funds trajectory and asset mix changes that sustain spread .
  • Volume momentum: Loans rose 3.3% QoQ, deposits 0.9% QoQ; reinvestment from securities to loans supports earnings power and ROA/ROE durability .
  • Fees variability: Noninterest income fell 7.8% QoQ on lower deposit-related and loan-related fees; MSR valuation sensitivity remains a swing factor for quarterly fee trends .
  • Credit normalization with growth: Provision increased to fund loan growth; NPLs stable QoQ but NPAs increased; watch consumer and hotel/motel exposures for charge-off trends .
  • Capital resilience: Equity improved QoQ; unrealized AFS losses down; tangible equity ratio 11.57%; supports dividend stability (maintained $0.47) .
  • Estimate adjustments: Expect modest EPS estimate raises on NIM strength and volume, offset by lower fee expectations and slightly higher provision run-rate*.
  • Trading lens: Positive catalysts include further NIM expansion and sustained loan growth; overhangs include fee softness and elevated NPAs/NPLs—even if contained QoQ—potentially tempering multiple expansion .