Community Trust Bancorp, Inc. Reports Increased Earnings for the First Quarter 2003.Business Editors PIKEVILLE Pikeville may refer to:
Community Trust Bancorp, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CTBI CTBI Churches Together in Britain and Ireland ) is pleased to report first quarter 2003 earnings of $7.0 million or $0.57 per share. Earnings per share increased 14% or $0.07 per share compared to the $0.50 per share or $6.3 million earned during the same period in 2002. First quarter 2003 earnings were positively impacted by $0.6 million or $0.05 per share due to gains on the sale of securities. The increase in earnings is reflected in the Company's performance ratios. Return on average assets was 1.15% for the three months ended March 31, 2003 compared to 1.02% for the three months ended March 31, 2002. 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 13.38% for the quarter ended March 31, 2003 as compared to 13.00% for the same period in 2002. CTBI's efficiency ratio was 61.8% for the quarter ended March 31, 2003 compared to 58.0% for the same period in 2002. Balance Sheet Review The Company's assets remained relatively flat at $2.5 billion on March 31, 2003 compared to December December: see month. 31, 2002 and March 31, 2002. The Company's balance sheet reflects the state of the U.S. economy during the past year with weak commercial loan demand and continuing high levels of residential mortgage loan refinancing Refinancing An extension and/or increase in amount of existing debt. due to record low interest rates. The loan portfolio remained relatively flat to prior quarter at $1.6 billion and decreased 3.0% from the $1.7 billion at March 31, 2002. Total deposits remained relatively flat to prior quarter and prior year at $2.1 billion. The Company continues to have a high level of liquidity due to the weak loan demand and low yielding investment options. With limited investment opportunity and high liquidity, the Company has continued its policy of pricing interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits at the mid-range
Nonperforming loans decreased 27.9% from prior year, but increased 12.4% from prior quarter. Nonperforming loans on March 31, 2003 were $25.6 million compared to $22.7 million at December 31, 2002 and $35.4 million at March 31, 2002. The significant decrease in nonperforming loans compared to the same period last year is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the Company's continuing focus on asset quality during this weak period in the economy. The increase in nonperforming loans from prior quarter is primarily the result of the 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 of one 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 . 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. Foreclosed properties on March 31, 2003 were $3.7 million, an increase from the $2.8 million at December 31, 2002 and the $2.2 million reported at March 31, 2002. The increase is primarily comprised of 1-4 family residential real estate. Net charge-offs for the quarter ended March 31, 2003 were $1.8 million, 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. rate of 0.5% of average loans, compared to the $2.9 million or 0.7% of average loans for the same period in 2002. Our reserve for losses on loans as a percentage of total loans outstanding remained flat to prior quarter at 1.42% and increased slightly from the 1.40% at prior year. The increase in reserve for losses on loans from prior year is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of currently weak economic conditions. With a current dividend yield of 3.33%, the Company continues to grow its shareholders' equity. Shareholders' equity of $211.1 million on March 31, 2003 is an 8.7% increase from the $194.1 million on March 31, 2002. Net Interest Income Our net interest margin of 3.74% is a 28 basis point or 7.0% decrease from the 4.02% for the quarter ended March 31, 2002 and a 14 basis point or 3.6% decrease from the 3.88% for the quarter ended December 31, 2002. Management expects continuing pressure on its net interest margin during this period of historically low interest rates. Noninterest Income Noninterest income for the quarter ended March 31, 2003 of $8.5 million was a 52.8% increase from the $5.6 million earned during the same period in 2002. The increase in noninterest income from prior year is primarily the result of increased deposit service charge revenue due to the implementation of our Overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers Honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. program, increased gains on sales of residential real estate loans due to increased refinancing activity, and increased gains on sales of securities. While the increase in residential real estate loan refinancing activity, due to the low interest rate environment, resulted in higher noninterest income from the gains on sales of loans, noninterest income was negatively impacted by a charge to our valuation reserve for capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights of $0.4 million for the quarter ended March 31, 2003 compared to $0.2 million for the quarter ended March 31, 2002. Noninterest Expense Noninterest expense for the first quarter 2003 increased 6.5% from $16.5 million for the first quarter 2002 to $17.6 million for the first quarter 2003. The increase in noninterest expense from prior year was primarily attributable to an increase in personnel expense due to the filling of budgeted key positions within the Company and annual merit increases in employee salaries. 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 Corporation'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, the performance of coal and coal related industries, 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; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements revenue enhancement An increase in revenues, especially by way of increased taxes. Revenue enhancement includes reducing taxpayer deductions and eliminating tax credits. or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the adoption by the Corporation 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 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 Corporation undertakes no obligation to update any forward-looking statements made. Community Trust Bancorp, Inc., with assets of $2.5 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 69 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, 2003
(in thousands except per share data)
Three Three Three
Months Months Months
Ended Ended Ended
3/31/2003 12/31/2002 3/31/2002
----------- ----------- -----------
Interest income $32,667 $34,761 $38,501
Interest expense 12,139 13,084 16,064
----------- ----------- -----------
Net interest income 20,528 21,677 22,437
Loan loss provision 1,547 1,670 2,741
Securities gains 979 - -
Gains on sales of loans 1,521 2,068 859
Deposit service charges 3,862 4,178 2,766
Trust revenue 613 798 580
Insurance commissions 102 190 42
Other noninterest income 1,469 971 1,347
----------- ----------- -----------
Total noninterest income 8,546 8,205 5,594
Personnel expense 9,061 9,049 8,457
Occupancy and equipment 2,300 2,357 2,271
Amortization- goodwill /
intangibles 145 145 145
Other noninterest expense 6,105 6,300 5,670
----------- ----------- -----------
Total noninterest expense 17,611 17,851 16,543
----------- ----------- -----------
Net income before taxes 9,916 10,361 8,747
Income taxes 2,923 3,393 2,425
----------- ----------- -----------
Net income $6,993 $6,968 $6,322
=========== =========== ===========
Memo: TEQ interest income $33,065 $35,209 $38,987
Average shares outstanding 12,306 12,348 12,565
Basic earnings per share $0.57 $0.56 $0.50
Diluted earnings per share $0.56 $0.56 $0.50
Dividends per share $0.21 $0.21 $0.19
Average balances:
Loans, net of unearned income $1,622,672 $1,639,304 $1,688,848
Earning assets 2,268,248 2,261,202 2,312,798
Total assets 2,468,156 2,461,482 2,515,256
Deposits 2,099,854 2,103,355 2,147,825
Interest bearing liabilities 1,915,509 1,913,392 1,989,194
Shareholders' equity 211,886 207,758 197,184
Performance ratios:
Return on average assets 1.15% 1.12% 1.02%
Return on average equity 13.38% 13.31% 13.00%
Yield on average earning assets
(tax equivalent) 5.91% 6.18% 6.84%
Cost of interest bearing funds
(tax equivalent) 2.57% 2.71% 3.28%
Net interest margin
(tax equivalent) 3.74% 3.88% 4.02%
Efficiency ratio 61.81% 58.86% 58.01%
Loan charge-offs $(2,837) $(2,893) $(3,803)
Recoveries 1,028 800 931
----------- ----------- -----------
Net charge-offs $(1,809) $(2,093) $(2,872)
Market Price:
High $26.64 $30.00 $23.50
Low 24.70 23.64 19.79
Close 25.25 25.14 23.30
As of As of As of
3/31/2003 12/31/2002 3/31/2002
----------- ----------- -----------
Assets:
Loans, net of unearned $1,625,475 $1,634,607 $1,675,713
Loan loss reserve (23,008) (23,271) (23,518)
----------- ----------- -----------
Net loans 1,602,467 1,611,336 1,652,195
Loans held for sale 4,151 2,279 2,710
Securities AFS 516,939 527,339 440,042
Securities HTM 43,279 51,243 73,919
Other earning assets 69,692 49,591 92,299
Cash and due from banks 77,153 92,615 72,200
Premises and equipment 50,171 50,767 51,027
Goodwill and core deposit
intangible 64,386 64,531 65,254
Other assets 41,614 38,210 45,573
----------- ----------- -----------
Total Assets $2,469,852 $2,487,911 $2,495,219
=========== =========== ===========
Liabilities and Equity:
NOW accounts $11,784 $16,177 $14,410
Savings deposits 623,757 628,040 617,689
CD's greater than=$100,000 354,942 354,007 376,431
Other time deposits 788,717 785,927 823,007
----------- ----------- -----------
Total interest bearing deposits 1,779,200 1,784,151 1,831,537
Noninterest bearing deposits 330,665 343,565 313,372
----------- ----------- -----------
Total deposits 2,109,865 2,127,716 2,144,909
Other interest bearing liabilities 129,227 134,652 141,084
Noninterest bearing liabilities 19,702 16,124 15,146
----------- ----------- -----------
Total liabilities 2,258,794 2,278,492 2,301,139
Shareholders' equity 211,058 209,419 194,080
----------- ----------- -----------
Total Liabilities and Equity $2,469,852 $2,487,911 $2,495,219
=========== =========== ===========
Ending shares outstanding 12,273 12,348 12,533
Memo: Market value of HTM
Securities $44,839 $52,673 $75,079
90 days past due loans $5,829 $2,814 $2,475
Nonaccrual loans 19,463 $19,649 $32,671
Restructured loans 268 $276 $300
Foreclosed properties 3,723 $2,761 $2,205
Tier 1 leverage ratio 8.62% 8.23% 7.63%
Tier 1 risk based ratio 11.45% 10.98% 10.70%
Total risk based ratio 12.70% 12.22% 11.95%
FTE employees 884 874 875
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2003
(in thousands except per share data)
Community Trust Bancorp, Inc. reported earnings for the three months
ended March 31, 2003 and March 31, 2002 as follows:
Three Months Ended
March 31
-----------------------
2003 2002
----------- -----------
(in thousands except
per share information)
Net income $6,993 $6,322
Basic earnings per share $0.57 $0.50
Diluted earnings per share $0.56 $0.50
Average shares outstanding 12,306 12,565
Total assets (end of period) $2,469,852 $2,495,219
Return on average equity 13.38% 13.00%
Return on average assets 1.15% 1.02%
Provision for loan losses $1,547 $2,741
Gains on sales of loans $1,521 $859
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