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Community Trust Bancorp Q1 Net Income Holds Steady at $27.2M

Community Trust Bancorp reported first-quarter net income of $27.2 million, essentially flat with $27.3 million in the fourth quarter of 2025, but up from $22.0 million a year earlier. Earnings per share held at $1.51, unchanged from the prior quarter and up from $1.22 in the first quarter of 2025.

Revenue moved slightly lower from the prior quarter but higher from a year ago. Net interest income rose to $58.8 million from $58.1 million in the fourth quarter and from $51.3 million in the first quarter of 2025. That improvement came as interest income on earning assets fell to $87.8 million from $89.5 million, while interest expense dropped more sharply to $29.0 million from $31.4 million. The net interest margin widened to 3.79% from 3.67% in the prior quarter and 3.57% a year earlier.

Noninterest income totaled $15.4 million, down from $16.6 million in the fourth quarter but above $14.9 million a year earlier. Deposit-related fees slipped to $7.2 million from $7.5 million, trust and wealth management income edged up to $4.5 million from $4.4 million, and bank owned life insurance revenue climbed to $1.7 million from $1.2 million.

Noninterest expense came in at $36.5 million, up slightly from $36.5 million in the fourth quarter and from $34.2 million a year earlier. Salaries fell to $13.6 million from $14.0 million, but employee benefits increased to $8.5 million from $8.0 million, and net occupancy and equipment expense rose to $3.7 million from $3.4 million.

The provision for credit losses declined to $2.3 million from $2.9 million in the fourth quarter and from $3.6 million in the first quarter of 2025.

Loans ended the quarter at $5.0 billion, up $95.9 million from the prior quarter and $354.3 million from a year earlier. Commercial loans increased $46.8 million quarter over quarter to $2.54 billion, residential loans rose $43.3 million to $1.44 billion, and consumer indirect loans grew $11.5 million to $874.0 million. Consumer direct loans fell $5.8 million to $139.8 million.

Deposits and repurchase agreements totaled $5.73 billion, up $35.1 million from the prior quarter and $375.1 million from a year earlier. Noninterest-bearing deposits were essentially unchanged at $1.26 billion. Money market savings rose to $1.92 billion from $1.88 billion, time deposits held at $1.55 billion, and repurchase agreements declined to $298.7 million from $308.8 million.

Asset quality showed mixed movement. Net charge-offs fell to $1.3 million from $1.8 million in the fourth quarter and from $1.6 million a year earlier. Nonperforming loans increased to $20.7 million from $19.1 million in the prior quarter, but were down from $26.5 million a year earlier. Nonperforming assets rose to $24.1 million from $22.2 million in the fourth quarter, while remaining below $31.3 million in the first quarter of 2025.

Shareholders’ equity climbed to $871.2 million from $856.0 million in the prior quarter and from $784.1 million a year earlier. Book value per share increased to $47.99 from $47.26 in the fourth quarter and from $43.32 a year earlier. Dividends declared per share held at $0.53, up from $0.47 in the first quarter of 2025. Today the company's shares have moved 0.81% to a price of $60.64. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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