Community Trust Bancorp, Inc. Reports Record Earnings for the First Quarter 2006.PIKEVILLE Pikeville may refer to:
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 ):
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Earnings Summary
1Q 4Q 1Q
(in thousands except per share data) 2006 2005 2005
---------------------------
Net income $ 9,768 $ 8,890 $ 7,961
Earnings per share $ 0.65 $ 0.59 $ 0.54
Earnings per share (diluted) $ 0.64 $ 0.58 $ 0.53
Return on average assets 1.36% 1.23% 1.18%
Return on average equity 15.27% 13.94% 13.50%
Efficiency ratio 58.21% 55.34% 59.13%
Dividends declared per share $ 0.26 $ 0.26 $ 0.24
Book value per share $ 17.30 $ 16.93 $ 16.02
Weighted average shares 15,011 14,975 14,857
Weighted average shares (diluted) 15,252 15,225 15,148
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Community Trust Bancorp, Inc. (NASDAQ:CTBI) is pleased to report earnings for the first quarter 2006 of $9.8 million or $0.65 per share compared to $8.0 million or $0.54 per share earned during the first quarter of 2005 and $8.9 million or $0.59 per share earned during the fourth quarter of 2005. First Quarter Highlights --The Company's basic earnings per share for the first quarter 2006 reflects an increase of 20.4% over the first quarter 2005 and 10.2% over the fourth quarter 2005. --The Company's net interest margin for the first quarter 2006 of 4.02% was an increase of 5 basis points from the first quarter 2005 but a decrease of 10 basis points from prior quarter. The decline in net interest margin 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 our deposits growing faster than we were able to deploy them into higher yielding loans versus other investments. --The Company's 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 for the quarter ended March 31, 2006 increased 6.0% from the quarter ended March 31, 2005 and 2.0% from the quarter ended December December: see month. 31, 2005. --The Company's loan portfolio grew at a rate of 8.5% from March 31, 2005 but decreased 0.3% from December 31, 2005. Year over year growth included the acquisition of Heritage Bank of Danville Danville. 1 City (1990 pop. 33,828), seat of Vermilion co., E Ill., on the Vermilion River at the Ind. line; inc. 1839. It is a commercial and industrial center in a dairy, farm, and coal area. . New loan production was seasonally stable during the first quarter compared to prior quarter; however, payoffs and paydowns of existing loans accelerated. --Nonperforming loans decreased 10.9% from March 31, 2005 and 25.5% from December 31, 2005. --As a result of our continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. improving credit experience, the improvement in credit quality trends, and a reduction in overall losses, no 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 to the reserve for losses on loans was made during the quarter. The reserve for losses on loans as a percentage of total loans outstanding decreased to 1.34% at March 31, 2006 from the 1.42% at March 31, 2005 and the 1.40% at December 31, 2005. --Return on average assets increased to 1.36% for the quarter ended March 31, 2006 from the 1.18% for the quarter ended March 31, 2005 and the 1.23% for the quarter ended December 31, 2005. --Our 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. for the quarter ended March 31, 2006 of 15.27% reflects a 177 basis point increase from the quarter ended March 31, 2005 and a 133 basis point increase from the quarter ended December 31, 2005. --CTBI's efficiency ratio for the quarter ended March 31, 2006 was 58.21% compared to 59.13% for the quarter ended March 31, 2005 and 55.34% for the quarter ended December 31, 2005. Net Interest Income Our net interest margin for the first quarter 2006 of 4.02% was an increase of 5 basis points from the first quarter 2005 but a decrease of 10 basis points from prior quarter. Net interest income for the quarter ended March 31, 2006 was a 7.9% increase from the quarter ended March 31, 2005 but a 2.4% decrease from prior quarter as the 2.0% increase in interest income was offset by a 9.0% increase in interest expense as deposits grew faster than loans and funds were deployed into lower yielding investments. Noninterest Income Noninterest income for the quarter ended March 31, 2006 increased 1.6% from the quarter ended March 31, 2005 but decreased 9.1% from the quarter ended December 31, 2005. Noninterest income from deposits increased as expected from the first quarter of 2005 and, as expected, was less than the fourth quarter of 2005 due to the seasonality 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. The fair value of 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 increased during the quarter; however, since all previous temporary write-downs were recaptured in previous quarters, no recapture recapture n. in income tax, the requirement that the taxpayer pay the amount of tax savings from past years due to accelerated depreciation or deferred capital gains upon sale of property. (See: income tax) RECAPTURE, war. of prior write-downs was taken during the first quarter 2006. The decrease in loan related fees for the quarter ended March 31, 2006 resulted from reclassifications made relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Financial Accounting Standard No. 91, Accounting for Nonrefundable Nonrefundable Not permitted, under the terms of an indenture, to be refundable. Fees and Costs Associated with Originating or Acquiring Loans and Initial Direct Costs of Leases. The decrease in loan related fees along with a corresponding decrease in interest income were offset by a reduction in noninterest expense. The following table displays the quarterly activity in the various significant noninterest income accounts.
Noninterest Income Summary
(in thousands) 1Q 4Q 1Q
2006 2005 2005
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Deposit related fees $4,552 $4,820 $4,047
Loan related fees 624 1,414 1,218
Mortgage servicing rights 0 94 226
Trust revenue 881 837 740
Gains on sales of loans 304 389 305
Other revenue 1,763 1,386 1,464
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Total noninterest income $8,124 $8,940 $8,000
Noninterest Expense Noninterest expense for the quarter ended March 31, 2006 of $20.1 million was a 4.5% increase from the $19.2 million for the first quarter 2005 and a 1.0% increase from the fourth quarter 2005. The increase in noninterest expense was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to increases in personnel expense associated with annual salary adjustments and staffing of new branches. Personnel expense was also impacted by $178 thousand related to the adoption in the first quarter 2006 of Statement of Financial Accounting Standard No. 123R, Share-Based Payment. Noninterest expense also increased due to expenditures for technology and communication upgrades to the Company's core operating systems Operating systems can be categorized by technology, ownership, licensing, working state, usage, and by many other characteristics. In practice, many of these groupings may overlap. . Additionally, an unfunded commitment provision expense was booked in March 2006 in the amount of $145 thousand. Balance Sheet Review The Company's total assets grew 7.3% from March 31, 2005 and 4.2% from December 31, 2005 to $3.0 billion at March 31, 2006. Loans outstanding increased 8.5% from March 31, 2005 but remained relatively stable compared to December 31, 2005 at $2.1 billion at March 31, 2006. The investment portfolio increased 5.8% from March 31, 2005 and 19.6% from December 31, 2005 to $531.0 million at March 31, 2006. Deposits including repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. increased 8.6% from March 31, 2005 and 4.0% from December 31, 2005 to $2.5 billion at March 31, 2006. The Company experienced growth in both noninterest bearing and interest bearing deposits during the first quarter. Total deposit growth, including repurchase agreements, for the quarter was $95.6 million with $17.2 million in noninterest bearing growth and $78.4 million in interest bearing growth. Shareholders' equity of $259.8 million on March 31, 2006 was a 9.1% increase from the $238.1 million on March 31, 2005 and an increase of 2.3% from the $253.9 million on December 31, 2005. The Company's 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. dividend yield to shareholders as of March 31, 2006 was 3.07%. Asset Quality During the first quarter of 2006, the Company continued its improvement in asset quality matrices. Nonperforming loans at March 31, 2006 of $16.0 million, or 0.8% of total loans was a 10.9%, or $2.0 million, decrease from March 31, 2005 and a 25.5%, or $5.4 million, decrease from December 31, 2005. Foreclosed properties at March 31, 2006 were $5.0 million compared to $5.0 million on March 31, 2005 and $5.4 million on December 31, 2005. Net loan charge-offs for the quarter ended March 31, 2006 were $1.4 million, or 0.3% of average loans annualized, compared to $0.9 million, or 0.2% of average loans annualized, for the quarter ended March 31, 2005 and $2.9 million, or 0.6% of average loans annualized, for the quarter ended December 31, 2005. Our reserve for losses on loans as a percentage of total loans outstanding at March 31, 2006 decreased to 1.34% from the 1.42% at March 31, 2005 and the 1.40% at December 31, 2005. The adequacy of the allowance for loan losses is reviewed quarterly by management using a methodology that includes several key factors. The Corporation utilizes an internal risk grading system for commercial credits, and those larger commercial credits identified through this grading system as having weaknesses are individually reviewed for the customer's ability and potential to repay their loans. The customer's cash flow, adequacy of collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although held for the loan, and other options available to the Corporation including legal avenues are all evaluated. Based upon this individual credit evaluation, a specific allocation to the allowance may be made for the loan. As a result of this evaluation, management determined that no additional provision expense was required for the quarter ended March 31, 2006. 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, 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 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 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 Company'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 $3.0 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 76 banking locations across eastern, northern, central, and south central Kentucky South Central Kentucky is a cultural region of 22 Kentucky counties located roughly between I-65 in the Bowling Green area and I-75 around the London area, but within three counties of the Tennessee border and south of the "Golden Triangle" (the areas around Louisville, Lexington, , five banking locations in southern West Virginia Southern West Virginia is a culturally and geographically distinct region in the U.S. state of West Virginia. Generally considered the heart of Appalachia, Southern West Virginia is known for its coal mining heritage and Southern affinity. , two loan production offices in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , and five trust offices across Kentucky. Additional information follows.
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2006
(in thousands except per share data)
Three Three Three
Months Months Months
Ended Ended Ended
3/31/2006 12/31/2005 3/31/2005
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Interest income $ 43,967 $ 43,110 $ 36,203
Interest expense 17,991 16,504 12,119
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Net interest income 25,976 26,606 24,084
Loan loss provision - 2,748 1,367
Gains on sales of loans 304 389 305
Deposit service charges 4,552 4,820 4,047
Trust revenue 881 837 740
Insurance commissions 129 53 97
Other noninterest income 2,258 2,841 2,811
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Total noninterest income 8,124 8,940 8,000
Personnel expense 10,965 10,845 10,261
Occupancy and equipment 2,986 2,702 2,539
Amortization of core deposit
intangible 159 158 145
Other noninterest expense 5,967 6,183 6,262
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Total noninterest expense 20,077 19,888 19,207
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Net income before taxes 14,023 12,910 11,510
Income taxes 4,255 4,020 3,549
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Net income $ 9,768 $ 8,890 $ 7,961
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Memo: TEQ interest income $ 44,357 $ 43,503 $ 36,600
Average shares outstanding 15,011 14,975 14,857
Basic earnings per share $ 0.65 $ 0.59 $ 0.54
Diluted earnings per share $ 0.64 $ 0.58 $ 0.53
Dividends per share $ 0.26 $ 0.26 $ 0.24
Average balances:
Loans, net of unearned income $2,096,842 $ 2,107,267 $1,920,843
Earning assets 2,659,430 2,608,111 2,508,472
Total assets 2,910,413 2,862,499 2,739,463
Deposits 2,274,582 2,263,820 2,158,802
Interest bearing liabilities 2,184,278 2,140,972 2,079,406
Shareholders' equity 259,397 253,010 239,124
Performance ratios:
Return on average assets 1.36% 1.23% 1.18%
Return on average equity 15.27% 13.94% 13.50%
Yield on average earning assets
(tax equivalent) 6.76% 6.61% 5.91%
Cost of interest bearing funds
(tax equivalent) 3.34% 3.06% 2.36%
Net interest margin
(tax equivalent) 4.02% 4.12% 3.97%
Efficiency ratio 58.21% 55.34% 59.13%
Loan charge-offs $ (2,361) $ (3,817) $ (1,952)
Recoveries 979 876 1,077
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Net charge-offs $ (1,382) $ (2,941) $ (875)
Market Price:
High $ 35.90 $ 34.69 $ 32.90
Low 30.60 30.12 28.00
Close 33.90 30.75 28.81
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2006
(in thousands except per share data)
As of As of As of
3/31/2006 12/31/2005 3/31/2005
----------- ------------ -----------
Assets:
Loans, net of unearned $2,101,236 $ 2,107,344 $1,937,285
Loan loss reserve (28,124) (29,506) (27,509)
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Net loans 2,073,112 2,077,838 1,909,776
Loans held for sale 1,367 135 -
Securities AFS 484,323 395,572 442,134
Securities HTM 46,690 48,444 59,752
Other earning assets 76,466 32,279 90,061
Cash and due from banks 83,804 89,932 79,627
Premises and equipment 57,695 57,966 52,559
Goodwill and core deposit
intangible 66,550 66,709 63,226
Other assets 77,786 80,338 68,323
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Total Assets $2,967,793 $ 2,849,213 $2,765,458
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Liabilities and Equity:
NOW accounts $ 19,762 $ 19,542 $ 15,310
Savings deposits 634,302 598,280 601,424
CD's greater than=$100,000 417,464 411,749 402,508
Other time deposits 775,094 771,051 743,077
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Total interest bearing deposits 1,846,622 1,800,622 1,762,319
Noninterest bearing deposits 463,169 445,929 403,537
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Total deposits 2,309,791 2,246,551 2,165,856
Repurchase agreements 161,538 129,156 109,807
Other interest bearing
liabilities 214,210 199,820 231,710
Noninterest bearing liabilities 22,422 19,741 20,014
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Total liabilities 2,707,961 2,595,268 2,527,387
Shareholders' equity 259,832 253,945 238,071
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Total Liabilities and Equity $2,967,793 $ 2,849,213 $2,765,458
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Ending shares outstanding 15,015 14,997 14,863
Memo: Market value of HTM
Securities $ 44,531 $ 46,528 $ 58,379
90 days past due loans $ 4,148 $ 8,284 $ 3,870
Nonaccrual loans 11,072 12,219 13,101
Restructured loans 733 899 934
Foreclosed properties 4,962 5,410 5,049
Tier 1 leverage ratio 9.01% 8.94% 8.81%
Tier 1 risk based ratio 11.28% 11.52% 11.71%
Total risk based ratio 12.52% 12.76% 12.95%
FTE employees 1,007 1,003 967
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
March 31, 2006
(in thousands except per share data)
Community Trust Bancorp, Inc. reported earnings for the three months
ended March 31, 2006 and March 31, 2005 as follows:
Three Months Ended
March 31
------------------------
2006 2005
----------- ------------
(in thousands except
per share information)
Net income $ 9,768 $ 7,961
Basic earnings per share $ 0.65 $ 0.54
Diluted earnings per share $ 0.64 $ 0.53
Average shares outstanding 15,011 14,857
Total assets (end of period) $2,967,793 $ 2,765,458
Return on average equity 15.27% 13.50%
Return on average assets 1.36% 1.18%
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