Community Trust Bancorp, Inc. Announces First Quarter 2001 Earnings.Business Editors PIKEVILLE Pikeville may refer to:
Community Trust Bancorp, Inc. (Nasdaq:CTBI CTBI Churches Together in Britain and Ireland ) today reported first quarter 2001 earnings of $5,242,000 or $0.45 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, exceeding the $5,119,000 or $0.42 per diluted shared earned during the same period in 2000. Cash basis earnings, which excludes the amortization of goodwill and core deposit intangible, was $5,873,000 or $0.51 per share for the quarter ending March 31, 2001 compared to the $5,642,000 or $0.47 per share for the first quarter of 2000. The Company's continuing stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program contributed $0.02 per share to the increased per share earnings for the first quarter of 2001, compared to the first quarter of 2000 as 527,000 less shares were outstanding at March 31, 2001. Return on average assets was 0.90% for the three months ended March 31, 2001 compared to 0.95% for the first quarter of 2000. Return on average shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was 11.49% for the quarter ended March 31, 2001 as compared to the 11.82% for the same period in 2000. CTBI's efficiency ratio increased 110 basis points from 60.30% at March 31, 2000 to 61.40% reflecting the expenses associated with the acquisition of certain deposits, loans and fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → of The Bank of Mount Vernon Mount Vernon, estate, United States Mount Vernon, NE Va., overlooking the Potomac River near Alexandria, S of Washington, D.C.; home of George Washington from 1747 until his death in 1799. , Inc. which closed on January January: see month. 26, 2001. Management expects the efficiency ratio to show improvement during the remainder of 2001. Cash basis operating results for the first quarter of 2001 produced an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average assets and return on average equity of 1.03% and 12.88% compared to 1.08% and 13.03% respectively for the same period last year. CTBI's cash basis efficiency ratio was 59.29% an 81 basis point increase from the 58.48% for the first quarter of 2000. Corporate Activity On January 26, 2001, Community Trust Bank, N.A. acquired certain deposits, loans, and fixed assets of The Bank of Mt. Vernon Vernon, city, Canada Vernon, city (1991 pop. 23,514), S British Columbia, Canada, near the north end of Okanagan Lake. The center of a fruit-growing and dairying area, it has packing and dehydrating plants. , Inc. The offices acquired had deposits totaling $109.3 million and loans totaling $79 million. The addition of banking offices in Mt. Vernon, Somerset Somerset, cities, United States Somerset. 1 City (1990 pop. 10,733), seat of Pulaski co., S Ky., in a farm, coal, and limestone area of the Cumberland foothills; inc. 1810. , Richmond Richmond, cities, United States Richmond. 1 City (1990 pop. 87,425), Contra Costa co., W Calif., on San Pablo Bay, an inlet of San Francisco Bay; inc. 1905. , and Berea, Kentucky Berea is a city in Madison County, Kentucky, United States. In 2004, the city population was 12,738. Its most prominent institution is Berea College, which owns a substantial percentage of the city's land. A dry town, it is also one of the fastest growing towns in Kentucky. represents an in-market acquisition and should provide the corresponding synergies normally associated with this type of acquisition. The acquisition is expected to be accretive to shareholders during 2001. Balance Sheet Review The Company's assets grew 11.89% from March 31, 2000 to March 31, 2001 increasing from $2.174 billion to $2.433 billion. The loan portfolio grew 7.9% to $1.78 billion from the $1.65 billion of March 31, 2000. Most of the balance sheet growth is a result of the acquisition closed on January 26, 2001. Non performing loans at March 31, 2001 were $24.5 million, a 4.7% decrease from the $25.7 million at December December: see month. 31, 2000 but an increase of 11.9% from the $21.9 million for March 31, 2000. The increase in non performing loans is primarily the result of one large commercial relationship for which a specific reserve has been established. In the normal course of business, the Company maintains an allowance for loan losses at a level believed by management to absorb absorb To offset sell orders or a new security offering with buy orders. probable PROBABLE. That which has the appearance of truth; that which appears to be founded in reason. losses inherent in the loan portfolio. Specific reserves are established for all large loans where a loss may occur; therefore, no significant losses are anticipated except for those loans with specific reserve allocations. During the fourth quarter of 2000, a large commercial borrower BORROWER, contracts. He to whom a thing is lent at his request. 2. The contract of loan confers rights, and imposes duties on the borrower' 1. In general, he has the right to use the thing borrowed, during the time and for the purpose intended between the with approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $7.2 million in loans with the Company filed bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . These borrowings were included in the Company's loans that are past due less than 90 days at March 31, 2001 and therefore are not included in the non performing loans noted above. We are pleased to report that these borrowings, including all expenses associated with collection, were paid in full to the Company on April 9, 2001. Net charge-offs for the period ending March 31, 2001 were $1.8 million, a 26% decline from the $2.4 million experienced during the first quarter of 2000. Our reserve for losses on loans and leases was 1.47% on March 31, 2001. The decline from 1.53% on March 31, 2000 is primarily the result of the addition of $79 million in loans from the Mt. Vernon acquisition. A comprehensive review of the loans prior to acquisition and the ability to put substandard substandard, adj below an acceptable level of performance. credits back to the seller resulted in no additional allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as for that portfolio. Foreclosed properties remained stable from December 31, 2000 at $4.6 million; however, they increased $2.6 million from March 31, 2000 primarily the result of one commercial property that is anticipated to be liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. during 2001 at no additional loss. While maintaining one of the highest dividend yields of financial service stocks of 5.04%, the company continues to grow its shareholders' equity. Shareholders' equity on March 31, 2001 of $185.3 million is a 6.01% increase from the $174.8 million on March 31, 2000. Net Interest Income As was anticipated during the third quarter of 2000, CTBI's net interest margin continues to be negatively impacted by the repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of assets quicker than liabilities as interest rates have declined and the continuing competitive pressures for deposits within the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industry. Our net interest margin for March 31, 2001 is 3.96% reflecting a decline of 49 basis points from the 4.45% of March 31, 2000. Some of the pressure on the net interest margin has been offset by a 133 basis point increase in our average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin as a percentage of total assets which were 92.16% on March 31, 2001 compared to 90.83% at March 31, 2000. Non-interest Income Non-interest income for the quarter ending March 31, 2001 of $5.3 million was a 13% increase from the $4.7 million earned during the same period 2000. The increase in non-interest income is primarily the result of gains on sale of residential real estate loans due to current refinancing Refinancing An extension and/or increase in amount of existing debt. activity and an increase in deposit account fees. Non-interest Expense Non-interest expense was $16.3 million for the quarter ending March 31, 2001, a 3% increase from the $15.8 million for quarter ending March 31, 2000. The increase in non-interest expense is primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the acquisition and operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. associated with the addition of the five banking offices acquired from The Bank of Mount Vernon, Inc. on January 26, 2001. The additional expenses are also reflected in our efficiency ratio, which increased 110 basis points to 61.40% on March 31, 2001 from the 60.30% of March 31, 2000. Management expects the efficiency ratio to improve during the year. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and . The Company's actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," and similar expressions or future or conditional Subject to change; dependent upon or granted based on the occurrence of a future, uncertain event. A conditional payment is the payment of a debt or obligation contingent upon the performance of a certain specified act. verbs such as "will," "should," "would," and "could." These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors' pricing policies, of changes in laws and regulations on competition and of demographic See demographics. changes on target market populations' savings and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against needs; the adoption by the Company of an FFIEC FFIEC Federal Financial Institutions Examination Council policy that provides guidance on the reporting of delinquent delinquent 1) adj. not paid in full amount or on time. 2) n. short for an underage violator of the law as in juvenile delinquent. DELINQUENT, civil law. He who has been guilty of some crime, offence or failure of duty. consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. and related matters. In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal Reserve Board, the Office of the Comptroller of Currency, the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. , and state regulators whose policies and regulations could affect the Corporation's results. These statements are representative only on the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company undertakes no obligation to update any forward-looking statements made. Community Trust Bancorp, Inc., with assets of $2.4 billion, is headquartered in Pikeville, Kentucky Pikeville is a city in Pike County, Kentucky, United States. The population was 6,295 at the 2000 census. It is the county seat of Pike CountyGR6. Pike County has a population of approximately 70,000. and has 63 banking locations across eastern and central Kentucky Central Kentucky is sometimes considered the Central and Southern part of the Bluegrass region, the Far Upper Western Eastern Mountain Coal Fields, and the Far Upper Eastern Pennyroyal regions. Its major cities include Lexington and Frankfort. , and 5 banking locations in West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. . Additional information follows.
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2001
(in thousands except per share data)
Three Three Three Twelve Twelve
Months Months Months Months Months
Ended Ended Ended Ended Ended
3/31/01 12/31/00 3/31/00 12/31/00 12/31/99
---------- ---------- ---------- ---------- ----------
Interest income $46,680 $45,962 $41,973 $175,749 $163,516
Interest expense 25,869 25,112 20,856 91,515 79,740
---------- ---------- ---------- ---------- ----------
Net interest
income 20,811 20,850 21,117 84,234 83,776
Loan loss
provision 2,075 2,580 2,450 9,217 9,105
Securities gains
(losses) -- 7 -- 60 --
Gains on sales
of loans 373 496 133 942 1,651
Deposit service
charges 2,473 2,447 2,341 9,670 9,581
Trust revenue 600 727 565 2,523 2,411
Insurance
commissions 134 134 167 685 977
Other noninterest
income 1,691 1,634 1,446 5,646 6,406
---------- ---------- ---------- ---------- ----------
Total noninterest
income 5,271 5,445 4,652 19,526 21,026
Personnel expense 7,833 7,302 7,754 29,686 30,453
Occupancy and
equipment 2,345 2,094 2,422 9,026 9,707
Amortization-
Goodwill/
Intangibles 868 778 778 3,113 3,147
Other noninterest
expense 5,285 5,056 4,894 20,102 21,081
---------- ---------- ---------- ---------- ----------
Total noninterest
expense 16,331 15,230 15,848 61,927 64,388
Net income before
taxes 7,676 8,485 7,471 32,616 31,309
Income taxes 2,434 2,731 2,352 10,270 9,464
---------- ---------- ---------- ---------- ----------
Net income $5,242 $5,754 $5,119 $22,346 $21,845
========== ========== ========== ========== ==========
Memo: TEQ
interest income $47,197 $46,504 $42,486 $177,858 $165,770
Average shares
outstanding 11,668 11,720 12,138 11,947 12,170
Basic Earnings
Per Share $0.45 $0.49 $0.42 $1.87 $1.79
Diluted Earnings
Per Share $0.45 $0.49 $0.42 $1.87 $1.79
Dividends per
share $0.20 $0.19 $0.18 $0.75 $0.72
Average balances:
Loans, net of
unearned income $1,754,894 $1,697,713 $1,630,319 $1,666,062 $1,557,703
Earning assets 2,184,810 2,063,314 1,968,687 2,004,686 1,976,679
Total assets 2,370,603 2,244,732 2,167,411 2,195,380 2,182,721
Deposits 2,030,364 1,927,961 1,860,449 1,886,198 1,882,364
Interest bearing
liabilities 1,907,516 1,796,886 1,726,999 1,751,519 1,741,780
Shareholders'
equity 184,967 179,828 174,124 176,911 169,467
Performance
ratios:
Return on
average assets 0.90% 1.03% 0.95% 1.02% 1.00%
Return on
average equity 11.49% 12.73% 11.82% 12.63% 12.89%
Yield on average
earning assets 8.76% 8.97% 8.68% 8.87% 8.39%
Cost of interest
bearing funds 5.50% 5.56% 4.86% 5.22% 4.58%
Net interest
margin 3.96% 4.15% 4.45% 4.33% 4.37%
Efficiency ratio 61.40% 56.76% 60.30% 58.53% 60.14%
Loan charge-offs $(2,927) $(3,331) $(3,946) $(13,447) $(15,305)
Recoveries 1,121 879 1,521 5,014 5,212
---------- ---------- ---------- ---------- ----------
Net charge-offs $(1,806) $(2,452) $(2,425) $(8,433) $(10,093)
Market Price:
High $17.00 $15.69 $19.77 $19.77 $22.16
Low 15.00 13.94 15.80 13.13 17.78
Close 15.88 14.88 18.00 15.88 18.18
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2001
(in thousands except per share data)
As of As of As of
3/31/01 12/31/00 3/31/00
----------- ----------- -----------
Assets:
Loans, net of unearned $1,776,565 $1,694,525 $1,647,178
Loan loss reserve (26,156) (25,886) (25,126)
----------- ----------- -----------
Net loans 1,750,409 1,668,639 1,622,052
Securities AFS 252,165 236,620 253,297
Securities HTM 46,170 48,976 57,619
Other earning assets 170,844 97,630 12,419
Cash and due from banks 67,150 72,085 88,419
Premises and Equipment 49,760 49,029 50,830
Goodwill and core
deposit intangible 63,552 56,320 58,655
Other assets 32,726 32,676 31,043
----------- ----------- -----------
Total Assets $2,432,776 $2,261,975 $2,174,334
=========== =========== ===========
Liabilities and Equity:
NOW accounts $13,444 $14,544 $261,654
Savings deposits 521,824 485,454 252,308
CD's greater than or equal
to $100,000 389,429 367,494 312,095
Other time deposits 888,883 821,782 778,633
----------- ----------- -----------
Total interest bearing
deposits 1,813,580 1,689,274 1,604,690
Noninterest bearing deposits 266,189 254,642 258,783
----------- ----------- -----------
Total deposits 2,079,769 1,943,916 1,863,473
Other interest bearing
liabilities 144,488 120,337 120,844
Noninterest bearing
liabilities 23,203 15,819 15,213
----------- ----------- -----------
Total liabilities 2,247,460 2,080,072 1,999,530
Shareholders' equity 185,316 181,903 174,804
----------- ----------- -----------
Total Liabilities and Equity $2,432,776 $2,261,975 $2,174,334
=========== =========== ===========
Ending shares outstanding 11,605 11,701 12,132
Memo: Market value of
HTM Securities $ 46,335 $ 47,053 $ 55,386
90 days past due loans $ 2,926 $ 3,000 $ 2,204
Nonaccrual loans 21,601 22,731 19,708
Foreclosed properties 4,615 4,650 1,990
Tier 1 leverage ratio 6.66% 7.29% 7.29%
Tier 1 risk based ratio 8.59% 9.23% 9.01%
Total risk based ratio 9.84% 10.48% 10.27%
FTE employees 818 795 824
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2001
(in thousands except per share data)
Earnings/Ratios excluding Amortization of
Goodwill and Core Deposit Intangible
Quarter Ended
March 31, 2001
-------------------------------------
Amortization
----------------
Reported Core Deposit "Cash"
Earnings Goodwill Intangible Earnings
Income before income
tax expense $7,676 $ 723 $ 145 $8,544
Income tax expense 2,434 186 51 2,671
------ ---- ---- -----
Net income $5,242 $ 537 $ 94 $5,873
====== ==== ==== =====
Basic earnings per
common share $ 0.45 $0.05 $0.01 $ 0.51
Diluted earnings per
common share $ 0.45 $0.05 $0.01 $ 0.51
These calculations were specifically formulated by the Company and
may not be comparable to similarly titled measures reported by other
companies.
The ROA, ROE and efficiency ratios excluding goodwill and
nonqualifying core deposit intangible amortization and balances for
the quarter ended March 31, 2001 were calculated as follows:
Three
Months
Ended
3/31/01
ROA A(1)/(B-D) = 1.03%
ROE A(1)/(C) = 12.88%
Efficiency (E-F)/G = 59.29%
(1) - Annualized
Net income $ 5,873 (A)
Average total assets 2,370,603 (B)
Average common stockholders' equity 184,967 (C)
Average goodwill & core deposit intangible 62,408 (D)
Noninterest expense 16,331 (E)
Amortization expense for goodwill and core
deposit intangible 868 (F)
Net interest income plus noninterest income 26,082 (G)
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2001
(in thousands except per share data)
Community Trust Bancorp, Inc. reported earnings for the three
months ending March 31, 2001 and March 31, 2000 as follows:
Three months ending
March 31
2001 2000
---- ----
(in thousands except
per share information)
Net Income $5,242 $5,119
Net Cash Income $5,873 $5,642
Basic earnings per share $0.45 $0.42
Net cash earnings per share $0.51 $0.47
Diluted earnings per share $0.45 $0.42
Diluted cash earnings per share $0.51 $0.47
Average Shares outstanding 11,668 12,138
Total Assets (End of period) $2,432,776 $2,174,334
Return on Average Equity 11.49% 11.82%
Cash Return on Average Equity 12.88% 13.03%
Return on Average Assets 0.90% 0.95%
Cash Return on Average Assets 1.03% 1.08%
Provision for loan losses $2,075 $2,450
Gains on sales of loans $373 $133
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