Executive Summary

Solid quarter: EPS $1.25 grew 1.6% q/q and 20.2% y/y on higher net interest income and better fee mix; NIM expanded to 3.43% (+4 bps q/q, +24 bps y/y) while the efficiency ratio improved to 51.60% .
Balance-sheet growth accelerated: loans +3.1% q/q (+$136M) and deposits +4.7% q/q (+$239M), with loan-to-deposit ratio at 84.4% on average .
Credit normalizing: provision $2.6M (slightly lower q/q), net charge-offs 0.09% annualized; however, nonperforming loans rose to $26.7M and reserve coverage moderated to 206% as unrealized securities losses increased with higher long rates .
Versus estimates: EPS beat consensus by $0.05 ($1.25 vs $1.20). Revenue (as reported by Zacks methodology) was $65.96M, +3.06% above consensus, indicating a clean beat; SPGI (S&P Global) consensus was unavailable via API at time of analysis .
Dividend maintained: Board declared $0.47 per share on Jan 28, payable Apr 1—consistent capital return amid stable profitability .

What Went Well and What Went Wrong

What Went Well
- Net interest income rose 4.9% q/q (+$2.3M) and 15.2% y/y on earning asset growth and lower funding costs; NIM (TE) up to 3.43% as cost of funds fell 18 bps q/q despite a 6 bps decline in asset yields .
- Noninterest income increased 3.8% q/q and 17.7% y/y, led by higher loan-related fees (MSR valuation) and trust revenue; securities gains reflected Visa Class B valuation .
- Operating efficiency held: efficiency ratio improved to 51.60% (from 51.75% q/q and 55.74% y/y), underpinning better operating leverage alongside growth .
What Went Wrong
- Credit quality mixed: nonperforming loans rose to $26.7M (from $25.1M in Q3 and $14.0M y/y); nonaccrual loans rose $10.4M q/q, partly due to an $8.0M credit 80% USDA-guaranteed .
- Equity impacted by AFS marks: shareholders’ equity fell $3.2M q/q as net unrealized losses on securities increased to $98.4M amid higher long rates .
- Expenses ticked up: total noninterest expense +3.9% q/q and +6.8% y/y, driven by personnel (higher bonuses/benefits) and data processing costs .

Financial Results

Metric	Q4 2023	Q2 2024	Q3 2024	Q4 2024
EPS ($)	$1.04	$1.09	$1.23	$1.25
Net Interest Income ($M)	$42.975	$45.678	$47.199	$49.527
Noninterest Income ($M)	$13.725	$15.708	$15.563	$16.160
Net Interest Margin (TE) (%)	3.19%	3.38%	3.39%	3.43%
Efficiency Ratio (TE) (%)	55.74%	52.17%	51.75%	51.60%
ROA (%)	1.30%	1.35%	1.50%	1.47%
ROE (%)	10.98%	11.03%	11.77%	11.77%

Components and drivers: yield on earning assets 5.66% (−6 bps q/q, +23 bps y/y); rate on interest-bearing liabilities 3.18% (−18 bps q/q, −9 bps y/y) .
Provision for credit losses: $2.587M (down $0.1M q/q); $1.6M allocated to fund loan growth .

Segment/Portfolio Detail – Loans outstanding ($000s)

Category	Q4 2023	Q3 2024	Q4 2024
Commercial nonres. real estate	778,637	834,985	865,031
Commercial residential real estate	417,943	485,004	508,310
Hotel/motel	395,765	453,465	458,832
Other commercial	391,390	440,636	440,506
Total commercial	1,983,735	2,214,090	2,272,679
Residential mortgage	937,524	1,003,123	1,043,401
Home equity	147,036	163,013	167,425
Total residential	1,084,560	1,166,136	1,210,826
Consumer indirect	823,505	816,187	850,289
Consumer direct	159,106	154,061	152,843
Total consumer	982,611	970,248	1,003,132
Total loans	4,050,906	4,350,474	4,486,637

Deposits and Repurchase Agreements ($000s)

Category	Q4 2023	Q3 2024	Q4 2024
Noninterest-bearing deposits	1,260,690	1,204,515	1,242,676
Interest checking	123,927	156,249	167,736
Money market savings	1,525,537	1,658,758	1,781,415
Savings accounts	535,063	501,933	511,378
Time deposits	1,279,405	1,316,807	1,366,984
Repurchase agreements	225,245	233,324	240,166
Total interest-bearing + repos	3,689,177	3,867,071	4,067,679
Total deposits + repos	4,949,867	5,071,586	5,310,355

KPIs and Asset Quality

KPI	Q4 2023	Q3 2024	Q4 2024
Average loans ($M)	$4,022.5	$4,300.7	$4,399.3
Average earning assets ($M)	$5,377.8	$5,570.2	$5,779.4
Net loan charge-offs ($M)	$0.991	$1.524	$0.979
NCOs (% of avg loans, annualized)	0.10%	0.14%	0.09%
Provision for credit losses ($M)	$1.815	$2.736	$2.587
Nonperforming loans ($M)	$14.0	$25.1	$26.7
Accruing 90+ DPD ($M)	$9.920	$19.111	$10.317
Nonaccrual loans ($M)	$4.048	$5.980	$16.369
ACL/NPL coverage (%)	354.7%	212.7%	206.0%
ACL/Loans (%)	1.22%	1.23%	1.23%
Total assets (period-end, $M)	$5,769.7	$5,963.0	$6,193.2
TCE/TA (%)	11.16%	11.79%	11.30%

Actual vs Estimates (Q4 2024)

Metric	Actual	Consensus	Surprise
EPS ($)	$1.25	$1.20 (Zacks consensus)	+$0.05 / +4.17%
Revenue ($M, Zacks methodology)	$65.96	Not disclosed (beat by 3.06%)	+3.06%

Note: S&P Global consensus was unavailable via API during this analysis window.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Formal financial guidance	2025	None provided	None provided	Maintained (no formal guidance)
Common dividend	Next payable 4/1/2025	$0.47 (Q3–Q4 2024 run-rate)	$0.47 declared 1/28/2025, payable 4/1/2025	Maintained

Earnings Call Themes & Trends

Transcript was not available in our sources; MarketBeat listed a call on Jan 15, 2025 at 8:30am ET, but no transcript was found; themes below reflect press release disclosures.

Topic	Previous Mentions (Q2 2024, Q3 2024)	Current Period (Q4 2024)	Trend
Net interest margin and funding costs	NIM rose to 3.38% in Q2 (+15 bps q/q) with cost of funds down 5 bps; 3.39% in Q3 (+1 bp) with cost of funds up 6 bps	NIM 3.43% (+4 bps q/q) as cost of funds fell 18 bps; asset yields −6 bps q/q	Improving
Balance sheet growth	Loans grew $100M in Q2 and $89M in Q3; deposits mixed in Q2 then +$110M in Q3	Loans +$136M; deposits +$239M (incl. repos)	Improving
Asset quality	NPLs rose to $19.8M in Q2 and $25.1M in Q3; NCOs ~0.13–0.14% annualized	NPLs $26.7M; NCOs 0.09% annualized; one $8M nonaccrual 80% USDA-guaranteed	Mixed (elevated NPLs, lower NCOs)
Securities AFS marks	Net unrealized losses $107.1M in Q2; improved to $80.6M in Q3 on rates	Increased to $98.4M on higher long rates	Deteriorated q/q
Fee income mix	Q2: BOLI, trust, brokerage up; Q3: deposit fees up, BOLI down	Loan-related fees up on MSR valuation; trust, securities gains contributed	Stable to improving

Management Commentary

Strategic drivers (from press release narrative):
- “Net interest income for the quarter of $49.5 million was $2.3 million, or 4.9%, above prior quarter ... our net interest margin ... at 3.43% increased 4 basis points from prior quarter” .
- “Noninterest income ... $16.2 million was $0.6 million ... above prior quarter and $2.4 million ... above prior year ... increase in loan related fees ... primarily from the fluctuation in the fair market value of our mortgage servicing rights. ... securities gains ... valuation of our Visa Class B stock” .
- “Shareholders’ equity ... negatively impacted during the quarter by the increase in unrealized losses on securities driven by higher long-term interest rates” .

Q&A Highlights

The Q4 2024 earnings call transcript was not available via our document and web sources; no Q&A themes could be extracted. MarketBeat listed the call scheduling but did not provide transcript content .

Estimates Context

S&P Global (SPGI) consensus: Not available via API at time of analysis (system rate limit).
Third-party consensus (Zacks): EPS consensus $1.20; CTBI reported $1.25—beat by $0.05 (+4.17%). Zacks “revenue” printed $65.96M, +3.06% above consensus (Zacks methodology) .
Implication: modest upward bias to forward EPS models likely from NIM progression, deposit growth, and operating leverage, though macro rate path and AFS marks are swing factors .

Key Takeaways for Investors

Positive core spread momentum: NIM expansion alongside easing funding costs and strong balance-sheet growth should support near-term NII trajectory if rates stabilize .
Clean EPS beat: $1.25 vs $1.20 consensus on solid NII and better fee mix—supportive for sentiment; watch sustainability into 2025 as funding dynamics evolve .
Credit normalizing but watch nonaccruals: NCOs remain low; rising NPLs and a single large USDA-guaranteed credit drive optics—coverage still robust at 206% .
AFS mark sensitivity: Equity dipped q/q as unrealized losses widened on the long end; rate rally could reverse this—key medium-term book value lever .
Operating discipline intact: Efficiency ratio ~51.6% and continuing fee diversification (trust/MSR valuation) offer cushion against rate volatility .
Capital return steady: Dividend of $0.47 maintained; payout sustainability supported by mid-teens ROTCE profile implied by ROE/ROA and TCE levels .
Trading setup: Bullish near term on NIM/volume momentum and print versus expectations; risk skew from rates (AFS OCI) and any further nonaccrual migration in commercial buckets .

Citations
Press release and 8-K: .
Prior quarters for trend: .
Dividend PR: .
Third-party estimate context: .

COMMUNITY TRUST BANCORP INC /KY/ (CTBI)·Q4 2024 Earnings Summary