Executive Summary

Q3 2025 headline: revenue of $71.5M and diluted EPS of $1.32, with EPS missing consensus ($1.38) and revenue slightly below consensus ($71.9M). Net interest margin eased 4 bps q/q to 3.60% while remaining 21 bps above prior year; net interest income rose 2.8% q/q and 17.7% y/y to $55.6M .
Credit costs rose: provision for credit losses increased to $3.9M (+$1.8M q/q) and net charge-offs rose to $2.75M, driven in part by a $1.0M charge-off on a single $8M commercial credit .
Balance sheet expansion continued: loans +2.0% q/q to $4.79B and deposits +3.9% q/q (including repos) to $5.67B; time deposits grew 10.5% q/q as funding mix continued to reprice .
Quarterly dividend maintained at $0.53/share (raised in July); Board declared the Q4 payout on Oct 28 .
Setup/catalysts: modest top-line softness vs estimates combined with higher credit costs is a near-term headwind, while strong loan/deposit growth and stable coverage ratios support the medium-term outlook .

What Went Well and What Went Wrong

What Went Well

Net interest income grew to $55.6M (+2.8% q/q; +17.7% y/y) on higher average earning assets; NIM remains 21 bps above prior year despite a 4 bps q/q dip .
Broad-based loan growth: total loans +$92.1M q/q (+2.0%) with commercial +$42.3M and residential +$51.9M; y/y loans +10.2% .
Efficiency remained tight at 50.86%, improving y/y from 51.75% (though slightly worse q/q) .
Dividend maintained at the higher $0.53 level; in July management stated, “We are pleased to have increased the cash dividend to our shareholders for the 45th consecutive year” (context for dividend policy durability) .

What Went Wrong

EPS miss vs Street: diluted EPS $1.32 vs $1.38 consensus; revenue $71.5M vs $71.9M consensus; both modest shortfalls, and EPS down sequentially from $1.38 .
Higher credit costs: provision rose to $3.9M (+$1.8M q/q), net charge-offs increased to $2.75M, including a $1.0M charge-off on a single commercial credit .
Expense pressure: noninterest expense rose to $36.7M (+3.0% q/q; +13.0% y/y) on higher repossession, data processing, and marketing costs, partially offset by lower annual incentive accrual .

Financial Results

Quarterly trend (oldest → newest)

Metric	Q3 2024	Q2 2025	Q3 2025
Net Interest Income ($M)	47.199	54.040	55.554
Noninterest Income ($M)	15.563	16.171	15.946
Provision for Credit Losses ($M)	2.736	2.094	3.866
Noninterest Expense ($M)	32.512	35.663	36.744
Diluted EPS ($)	1.23	1.38	1.32
Net Interest Margin (TE, %)	3.39%	3.64%	3.60%
Efficiency Ratio (TE, %)	51.75%	50.70%	50.86%
ROAA (%)	1.50%	1.58%	1.46%
ROAE (%)	11.77%	12.51%	11.53%

Headline results vs consensus (Q3 2025)

Revenue: $71.5M actual vs $71.9M consensus* → slight miss .
Diluted EPS: $1.32 actual vs $1.38 consensus* → miss of $0.06 .
Consensus inputs (S&P Global): EPS $1.383* (3 ests), Revenue $71.9M* (2 ests) [Values retrieved from S&P Global].

Loan portfolio mix (period-end, $000s)

Category	Q3 2024	Q2 2025	Q3 2025
Commercial Nonresidential RE	834,985	913,463	921,682
Commercial Residential RE	485,004	559,906	573,270
Hotel/Motel	453,465	477,175	483,833
Other Commercial	440,636	432,021	446,125
Total Commercial	2,214,090	2,382,565	2,424,910
Residential Mortgage	1,003,123	1,112,672	1,157,540
Home Equity	163,013	177,135	184,191
Total Residential	1,166,136	1,289,807	1,341,731
Consumer Indirect	816,187	878,506	877,555
Consumer Direct	154,061	150,915	149,719
Total Consumer	970,248	1,029,421	1,027,274
Total Loans	4,350,474	4,701,793	4,793,915

Deposits & repos (period-end, $000s)

Category	Q3 2024	Q2 2025	Q3 2025
Noninterest-bearing Deposits	1,204,515	1,258,205	1,248,573
Interest Checking	156,249	173,795	194,327
Money Market Savings	1,658,758	1,820,230	1,815,111
Savings Accounts	501,933	508,467	501,189
Time Deposits	1,316,807	1,472,311	1,626,261
Repurchase Agreements	233,324	225,075	284,863
Total Int.-bearing + Repos	3,867,071	4,199,878	4,421,751
Total Deposits + Repos	5,071,586	5,458,083	5,670,324

Asset quality KPIs (oldest → newest)

KPI	Q3 2024	Q2 2025	Q3 2025
Accruing Loans 90+ DPD ($M)	19.111	8.449	9.040
Nonaccrual Loans ($M)	5.980	15.937	15.647
Net Charge-offs ($M)	1.524	1.353	2.748
ACL to NPLs (Coverage, %)	212.7%	237.1%	239.5%
ACL / Loans (%)	1.23%	1.23%	1.23%
Loans 30–89 DPD ($M)	20.578	20.055	18.500

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	2025	None provided	None provided	Maintained
Quarterly dividend per share	Q3/Q4 2025	$0.47 (pre-July)	$0.53	Raised in July; maintained in Oct

Earnings Call Themes & Trends

Note: We searched for a Q3 2025 earnings call transcript across filings and investor-relations aggregators but could not locate a published transcript; themes below synthesize quarterly press releases. Searches: Morningstar/Business Wire, Quartr, Yahoo/MarketBeat transcript resources .

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
Net interest margin	NIM rose q/q in Q1 to 3.57% and in Q2 to 3.64% on asset yield gains and slightly lower funding costs	NIM 3.60% (−4 bps q/q), still +21 bps y/y	Slight moderation q/q after two quarters of expansion
Credit costs	Q1 provision $3.6M; Q2 provision $2.1M as credit costs eased q/q	Provision up to $3.9M; NCOs rose to $2.75M with one $1.0M commercial charge-off	Higher provisioning and NCOs
Loan growth	Q1: +$150M; Q2: +$65M; diversified across commercial/residential	+$92M q/q; growth in commercial (+$42M) and residential (+$52M)	Continued healthy growth
Deposit dynamics	Q1/Q2 deposits grew; mix shift toward time deposits	Deposits +$212M q/q; time deposits +10.5% q/q; repos +26.6% q/q	Funding growth with higher-cost buckets
Operating efficiency	Efficiency ratio improved q/q in Q2 to 50.70%	50.86% (slightly worse q/q, better y/y)	Stable/tight cost control
Securities AFS/OCI	Unrealized losses improved to $80.6M in Q2	Improved to $71.1M at Q3	Favorable OCI trend

Management Commentary

Strategic emphasis: driving balance sheet growth with diversified loan expansion while maintaining strong reserve coverage (ACL/NPLs 239.5%) and stable ACL/loans (1.23%) .
Funding: deposit growth outpaced loan growth; management highlighted low customer concentration (two customers at ~3% each of deposits) .
Dividend policy: “We are pleased to have increased the cash dividend to our shareholders for the 45th consecutive year,” said Mark A. Gooch, Chairman, President, and CEO (July 22, 2025) .

Q&A Highlights

We could not locate a published Q3 2025 earnings call transcript despite searches on IR aggregators and newswires; therefore, Q&A themes and any verbal guidance clarifications are unavailable based on primary sources reviewed .

Estimates Context

Wall Street consensus (S&P Global): Q3 2025 EPS $1.383* (3 ests) and revenue $71.9M* (2 ests). Actuals: diluted EPS $1.32 and revenue $71.5M, implying a modest miss on both metrics .
Estimate inputs indicate a very small analyst sample size (2–3), so intra-quarter revisions could disproportionately affect consensus* [Values retrieved from S&P Global].

Key Takeaways for Investors

Modest headline miss: EPS of $1.32 vs $1.38 and revenue $71.5M vs $71.9M reflect slight underperformance, primarily from higher provision/NCOs rather than core spread compression .
Core engine still resilient: net interest income growth (+17.7% y/y) and NIM still +21 bps y/y underscore earnings power as earning assets expand .
Credit watch item: one $1.0M commercial charge-off drove higher NCOs; monitor any follow-through in Q4 on criticized/classified trends and sector exposures .
Funding traction with mix costs: deposit growth solid, but time deposits/repos rose, which could cap NIM upside; watch pricing discipline and deposit beta into 2026 .
Capital/coverage strength: ACL/NPLs at ~239.5% and TCE/TA ~11.65% provide buffers if credit normalizes at higher levels .
Dividend signal: July increase to $0.53 and October declaration suggest confidence in cash generation through cycles .
Near-term setup: Without formal guidance and lacking a transcript, Q4 will hinge on NIM direction, credit costs normalization, and continued loan/deposit momentum; estimate revisions may drift modestly lower on Q3 EPS shortfall* [Values retrieved from S&P Global].

S&P Global estimates disclaimer: Items marked with an asterisk (*) are from S&P Global consensus data. Values retrieved from S&P Global.

COMMUNITY TRUST BANCORP INC /KY/ (CTBI)·Q3 2025 Earnings Summary