Community Trust Bancorp, Inc. Reports Record Earnings for the Third Quarter 2005 of $9.1 Million or $0.61 Per Share.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 ):
Earnings Summary
3Q 2Q 3Q
2005 2005 2004
---------------------------------
Net income (in thousands) $ 9,083 $ 8,478 $ 8,014
Earnings per share (basic) $ 0.61 $ 0.57 $ 0.54
Earnings per share (diluted) $ 0.60 $ 0.56 $ 0.53
Return on average assets 1.26% 1.21% 1.26%
Return on average equity 14.50% 13.96% 13.83%
Efficiency ratio 55.27% 57.86% 59.35%
Dividends declared per share $ 0.24 $ 0.24 $ 0.21
Book value per share $ 16.77 $ 16.46 $ 15.73
Community Trust Bancorp, Inc. (NASDAQ:CTBI) is reporting record earnings for the third quarter 2005 of $9.1 million or $0.61 per share compared to $8.0 million or $0.54 per share earned during the third quarter of 2004 and $8.5 million or $0.57 per share earned during the second quarter of 2005. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings for the nine months ended September September: see month. 30, 2005 were $25.5 million or $1.71 per share compared to $23.1 million or $1.56 per share for the nine months ended September 30, 2004. Third Quarter and Year-to-Date Highlights --The Company's basic earnings per share of $0.61 for the third quarter 2005 reflects an increase of 13.0% over prior year. Year-to-date earnings per share increased 9.6% over prior year. --The Company's net interest margin of 4.08% for the third quarter 2005 was flat to prior year but an increase of 13 basis points from prior quarter. --Deposit related fees for the third quarter 2005 increased 4.3% from prior quarter and 5.9% from the third quarter 2004. Loan related fees for the third quarter 2005 increased 5.5% from prior quarter and 9.0% from the third quarter 2004. --The Company experienced growth in its loan portfolio, including the 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. acquisition, at a rate of 12.8% from September 30, 2004 and 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 6.7% from the second quarter 2005. Total loan growth for the third quarter 2005 was $34.9 million. Total loans have grown $239.1 million from September 30, 2004, with $165.4 million being internal growth. --Total 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. , grew by $23.5 million during the third quarter to $2.4 billion. Total deposits have grown by 10.8% or $229.7 million, including the Danville acquisition, from the $2.1 billion on September 30, 2004, with $159.9 million being internal growth. Return on average assets for the quarter ended September 30, 2005 was 1.26% compared to 1.26% for the third quarter 2004 and 1.21% for the second quarter 2005. Return on average assets for the first nine months of 2005 was 1.22% compared to 1.24% for the first nine months of 2004. 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 September 30, 2005 was 14.50% compared to 13.83% for the quarter ended September 30, 2004 and 13.96% for the quarter ended June June: see month. 30, 2005. Return on average equity for the nine months ended September 30, 2005 was 14.00% compared to 13.54% for the first nine months of 2004. CTBI's efficiency ratio for the nine months ended September 30, 2005 was 57.36% compared to 58.75% for the nine months ended September 30, 2004. Net Interest Income Our net interest margin of 4.08% for the quarter ended September 30, 2005 was flat to the quarter ended September 30, 2004 but was a 13 basis point increase from 3.95% for the quarter ended June 30, 2005. The increase in the net interest margin was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to our increased yield on interest 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 from prior quarter. Noninterest Income Noninterest income of $8.7 million for the quarter ended September 30, 2005 was a 1.1% increase from the $8.6 million earned for the quarter ended September 30, 2004, and a 1.5% increase from the quarter ended June 30, 2005. The following table displays the quarterly activity in the various significant noninterest income accounts.
Noninterest Income Summary
(in thousands) 3Q 2Q 3Q
2005 2005 2004
----------------------------------------------------------------------
Deposit related fees $ 4,723 $ 4,460 $ 4,525
Loan related fees 1,408 1,292 1,334
Mortgage servicing rights 81 (94) (200)
Trust revenue 750 740 638
Gains on sales of loans 440 347 368
Securities gains 0 3 588
Other revenue 1,266 1,790 1,322
----------------------------------------------------------------------
Total noninterest income $ 8,668 $ 8,538 $ 8,575
Noninterest income for the third quarter 2005 was positively impacted by increases in both deposit and loan related fees. Deposit related fees for the third quarter 2005 increased $0.2 million or 4.3% compared to prior year third quarter and $0.3 million or 5.9% compared to the second quarter 2005. Loan related fees for the third quarter 2005 increased $0.1 million or 5.5% compared to prior year third quarter and $0.1 million or 9.0% compared to the second quarter 2005. The increase in loan related fees primarily consisted of increases in consumer lending Consumer lending or consumer loans refers to any type of loan product that is not a mortgage; such as a car, boat, manufactured home, home equity loan, home equity line of credit, signature loan, signature line of credit, recreational vehicle, or Certificate of Deposit loans. fees. Noninterest income for the quarter ended September 30, 2005 was also positively impacted by $0.3 million compared to the third quarter 2004 and by $0.2 million compared to the second quarter 2005 because of the improvement in the fair value of our 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. Noninterest Expense Noninterest expense of $19.8 million was a 4.6% increase from the $18.9 million for the third quarter 2004 and a 0.5% increase from the second quarter 2005. The increase in noninterest expense 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 the additional 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. , primarily personnel, associated with the three new branches and two new loan production offices which have been opened in the past 12 months, as well as the two recently acquired branches. Included in the three new branches is the Allen, Kentucky Allen is a city in Floyd County, Kentucky. The population was 150 at the 2000 census. Geography Allen is located at (37.613421, -82.725826)GR1. branch which opened on October October: see month. 3, 2005. Balance Sheet Review The Company's assets were $2.8 billion at September 30, 2005, an increase of 6.7% from prior year. Total assets decreased $10.8 million from June 30, 2005 as a result of the payment of $40 million in FHLB FHLB Federal Home Loan Bank advances which matured in September. The Company's loan portfolio grew $239.1 million or 12.8% from prior year as growth occurred in all three major loan categories, commercial, residential real estate, and consumer loans. Loan growth, excluding the Danville acquisition which occurred in June 2005, totaled $165.4 million. Total deposits and repurchase agreements of $2.4 billion at September 30, 2005 represent an increase of 10.8% from September 30, 2004. Deposit growth excluding the Danville acquisition totaled $159.9 million. Shareholders' equity of $250.3 million on September 30, 2005 was a 7.5% increase from the $232.9 million on September 30, 2004. The Company's annualized dividend yield to shareholders as of September 30, 2005 was 2.98%. Asset Quality Nonperforming loans at September 30, 2005 were $21.8 million, or 1.0% of total loans, compared to $21.4 million, or 1.1% of total loans, at September 30, 2004 and $21.4 million, or 1.0% of total loans, at June 30, 2005. The increase in nonperforming loans was minimal with respect to the increase in the loan portfolio; therefore, the percentage of nonperforming loans to total loans decreased. The mix of nonperforming loans changed, however, as nonaccrual loans decreased $2.0 million from prior quarter and loans 90 days past due and still accruing interest increased $2.3 million from prior quarter. Loans past due 90 days or more must be well secured and in the process of collection to continue accruing interest. Foreclosed properties on September 30, 2005 were $5.7 million, relatively flat to September 30, 2004, but a decrease from the $5.9 million at June 30, 2005. Net loan charge-offs for the quarter ended September 30, 2005 of $1.9 million, or 0.4% of average loans, increased from the $1.3 million, or 0.3% of average loans for the third quarter of 2004 and the $1.8 million, or 0.4% of average loans for the second quarter of 2005. Year-to-date 2005 net loan charge-offs of $4.6 million, or 0.3% of average loans, was an increase from $4.1 million, or 0.3% of average loans, for the same period 2004. Our reserve for losses on loans as a percentage of total loans outstanding at September 30, 2005 was 1.41% compared to 1.41% at June 30, 2005 and 1.42% at September 30, 2004. 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 $2.8 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 75 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)
September 30, 2005
(in thousands except per share data)
Three Three Three
Months Months Months
Ended Ended Ended
9/30/2005 6/30/2005 9/30/2004
---------- ---------- ----------
Interest income $ 41,572 $ 38,598 $ 32,623
Interest expense 14,825 13,509 9,138
---------- ---------- ----------
Net interest income 26,747 25,089 23,485
Loan loss provision 2,470 1,700 2,045
Securities gains - 3 588
Gains on sales of loans 440 347 368
Deposit service charges 4,723 4,460 4,525
Trust revenue 750 740 638
Insurance commissions 112 120 118
Other noninterest income 2,643 2,868 2,338
---------- ---------- ----------
Total noninterest income 8,668 8,538 8,575
Personnel expense 10,816 10,613 9,959
Occupancy and equipment 2,808 2,690 2,377
Amortization of core deposit
intangible 159 145 145
Other noninterest expense 6,007 6,236 6,436
---------- ---------- ----------
Total noninterest expense 19,790 19,684 18,917
---------- ---------- ----------
Net income before taxes 13,155 12,243 11,098
Income taxes 4,072 3,765 3,084
---------- ---------- ----------
Net income $ 9,083 $ 8,478 $ 8,014
========== ========== ==========
Memo: TEQ interest income $ 41,964 $ 38,991 $ 33,021
Average shares outstanding 14,917 14,881 14,805
Basic earnings per share $ 0.61 $ 0.57 $ 0.54
Diluted earnings per share $ 0.60 $ 0.56 $ 0.53
Dividends per share $ 0.24 $ 0.24 $ 0.21
Average balances:
Loans, net of unearned income $2,085,841 $1,982,353 $1,842,208
Earning assets 2,638,037 2,590,466 2,331,175
Total assets 2,857,569 2,801,407 2,535,480
Deposits 2,250,172 2,196,635 2,076,493
Interest bearing liabilities 2,159,150 2,122,698 1,904,067
Shareholders' equity 248,594 243,568 230,522
Performance ratios:
Return on average assets 1.26% 1.21% 1.26%
Return on average equity 14.50% 13.96% 13.83%
Yield on average earning assets
(tax equivalent) 6.31% 6.04% 5.64%
Cost of interest bearing funds
(tax equivalent) 2.72% 2.55% 1.91%
Net interest margin (tax
equivalent) 4.08% 3.95% 4.08%
Efficiency ratio 55.27% 57.86% 59.35%
Loan charge-offs $ (2,593) $ (2,607) $ (2,145)
Recoveries 659 801 806
---------- ---------- ----------
Net charge-offs $ (1,934) $ (1,806) $ (1,339)
Market Price:
High $ 35.01 $ 33.78 $ 29.55
Low 30.77 27.94 26.56
Close 32.18 32.72 28.26
Nine Nine
Months Months
Ended Ended
9/30/2005 9/30/2004
---------- ----------
Interest income $ 116,668 $ 94,942
Interest expense 40,453 26,122
---------- ----------
Net interest income 76,215 68,820
Loan loss provision 5,537 5,963
Securities gains 3 589
Gains on sales of loans 1,092 1,237
Deposit service charges 13,230 13,224
Trust revenue 2,230 1,813
Insurance commissions 329 262
Other noninterest income 8,027 8,585
---------- ----------
Total noninterest income 24,911 25,710
Personnel expense 31,690 29,665
Occupancy and equipment 8,037 7,155
Amortization of core deposit
intangible 449 435
Other noninterest expense 18,505 18,628
---------- ----------
Total noninterest expense 58,681 55,883
---------- ----------
Net income before taxes 36,908 32,684
Income taxes 11,386 9,634
---------- ----------
Net income $ 25,522 $ 23,050
========== ==========
Memo: TEQ interest income $ 117,850 $ 96,114
Average shares outstanding 14,885 14,804
Basic earnings per share $ 1.71 $ 1.56
Diluted earnings per share $ 1.68 $ 1.53
Dividends per share $ 0.72 $ 0.63
Average balances:
Loans, net of unearned income $1,996,950 $1,793,171
Earning assets 2,587,734 2,287,959
Total assets 2,799,913 2,492,436
Deposits 2,202,204 2,065,159
Interest bearing liabilities 2,120,710 1,873,291
Shareholders' equity 243,797 227,382
Performance ratios:
Return on average assets 1.22% 1.24%
Return on average equity 14.00% 13.54%
Yield on average earning assets (tax
equivalent) 6.09% 5.61%
Cost of interest bearing funds (tax
equivalent) 2.55% 1.86%
Net interest margin (tax equivalent) 4.00% 4.09%
Efficiency ratio 57.36% 58.75%
Loan charge-offs $ (7,151) $ (6,749)
Recoveries 2,537 2,621
---------- ----------
Net charge-offs $ (4,614) $ (4,128)
Market Price:
High $ 35.01 $ 31.18
Low $ 27.94 25.16
Close $ 32.18 28.26
As of As of As of
9/30/2005 6/30/2005 9/30/2004
---------- ---------- ----------
Assets:
Loans, net of unearned $2,104,067 $2,069,167 $1,864,988
Loan loss reserve (29,699) (29,163) (26,488)
---------- ---------- ----------
Net loans 2,074,368 2,040,004 1,838,500
Loans held for sale 745 110 532
Securities AFS 419,205 473,717 508,870
Securities HTM 50,957 55,829 64,809
Other earning assets 27,684 20,076 13,269
Cash and due from banks 82,982 82,979 71,058
Premises and equipment 57,585 57,400 51,711
Goodwill and core deposit
intangible 68,398 66,976 63,516
Other assets 51,076 46,757 42,662
---------- ---------- ----------
Total Assets $2,833,000 $2,843,848 $2,654,927
========== ========== ==========
Liabilities and Equity:
NOW accounts $ 14,590 $ 15,472 $ 15,606
Savings deposits 611,217 594,819 589,916
CD's greater than=$100,000 414,811 414,651 366,141
Other time deposits 770,233 781,993 714,268
---------- ---------- ----------
Total interest bearing deposits 1,810,851 1,806,935 1,685,931
Noninterest bearing deposits 437,872 420,387 375,266
---------- ---------- ----------
Total deposits 2,248,723 2,227,322 2,061,197
Repurchase agreements 116,628 114,576 74,447
Other interest bearing liabilities 193,429 236,007 266,410
Noninterest bearing liabilities 23,933 20,897 19,942
---------- ---------- ----------
Total liabilities 2,582,713 2,598,802 2,421,996
Shareholders' equity 250,287 245,046 232,931
---------- ---------- ----------
Total Liabilities and Equity $2,833,000 $2,843,848 $2,654,927
========== ========== ==========
Ending shares outstanding 14,922 14,889 14,808
Memo: Market value of HTM
Securities $ 49,717 $ 54,703 $ 64,261
90 days past due loans $ 6,556 $ 4,237 $ 4,775
Nonaccrual loans 14,314 16,312 15,613
Restructured loans 894 876 1,051
Foreclosed properties 5,674 5,945 5,702
Tier 1 leverage ratio 8.68% 8.68% 9.14%
Tier 1 risk based ratio 11.34% 11.13% 11.75%
Total risk based ratio 12.59% 12.38% 13.00%
FTE employees 988 986 939
Community Trust Bancorp, Inc. reported earnings for the three and
nine months ending September 30, 2005 and 2004 as follows:
Three Months Ended Nine Months Ended
September 30 September 30
---------------------- ----------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
(in thousands except
per share information)
Net income $ 9,083 $ 8,014 $ 25,522 $ 23,050
Basic earnings per
share $ 0.61 $ 0.54 $ 1.71 $ 1.56
Diluted earnings per
share $ 0.60 $ 0.53 $ 1.68 $ 1.53
Average shares
outstanding 14,917 14,805 14,885 14,804
Total assets (end of
period) $2,833,000 $2,654,927
Return on average
equity 14.50% 13.83% 14.00% 13.54%
Return on average
assets 1.26% 1.26% 1.22% 1.24%
Provision for loan
losses $ 2,470 $ 2,045 $ 5,537 $ 5,963
Gains on sales of
loans $ 440 $ 368 $ 1,092 $ 1,237
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