Community Trust Bancorp, Inc. Reports Record Earnings for the Year 2006.PIKEVILLE, Ky. -- 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 ): [TABLE OMITTED] Community Trust Bancorp, Inc. (NASDAQ: CTBI) is pleased to report record earnings for the year ended December 31, 2006 of $39.1 million or $2.59 per share compared to $34.4 million or $2.31 per share earned during the year ended December 31, 2005. Earnings for the fourth quarter 2006 were $9.5 million or $0.63 per share compared to $8.9 million or $0.59 per share earned during the fourth quarter of 2005 and $9.9 million or $0.65 per share earned during the third quarter of 2006. Fourth Quarter and Year 2006 Highlights * The Company's basic earnings per share for the year 2006 increased 12.1% from prior year. Earnings per share for the fourth quarter 2006 reflect an increase of 6.8% over the fourth quarter 2005. * The Company's year-to-date net interest margin remained flat from prior year at 4.02%. As anticipated by management, as interest rates stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. the Company experienced margin pressure which is reflected in the decrease in the quarterly net interest margin of 18 basis points from prior year and 14 basis points from prior quarter. * 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 year ended December 31, 2006 were a 4.5% increase over the year ended December 31, 2005. Average earning assets for the quarter ended December 31, 2006 increased 3.4% from the quarter ended December 31, 2005 and 0.7% from the quarter ended September 30, 2006. * The Company's investment portfolio increased 5.0% from December 31, 2005 to December 31, 2006 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. 7.2% from prior quarter. * The Company's loan portfolio grew at a rate of 2.9% from December 31, 2005 and at an annualized rate of 2.5% from prior quarter. * The Company's asset quality continues to improve as evidenced by nonperforming loans as of percentage of total loans at December 31, 2006 of 0.66%, a 36 basis point decrease from December 31, 2005 and a decrease of 7 basis points from prior quarter. * As a result of the improvement in credit quality trends, provision for loan losses for the year ended December 31, 2006 decreased to $4.3 million compared to $8.3 million for the same period last year. Provision for loan losses for the quarter ended December 31, 2006 was $1.2 million compared to $2.7 million for the quarter ended December 31, 2005 and $1.8 million for the quarter ended September 30, 2006. * Return on average assets for the year ended December 31, 2006 was 1.33%, a 9.0% increase from the 1.22% for the year ended December 31, 2005. Return on average assets for the quarter ended December 31, 2006 of 1.28% was an increase from the 1.23% for the same period 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 year ended December 31, 2006 of 14.51% reflects a 53 basis point or 3.8% increase from the 13.98% for the year ended December 31, 2005. Return on average shareholders' equity for the quarter ended December 31, 2006 was 13.45% compared to 13.94% for the quarter ended December 31, 2005 and 14.40% for the quarter ended September 30, 2006. * CTBI's efficiency ratio for the year ended December 31, 2006 improved 16 basis points to 56.67% compared to 56.83% for the year ended December 31, 2005. Our efficiency ratio for the quarter ended December 31, 2006 was 57.43% compared to 55.34% for the quarter ended December 31, 2005 and 55.35% for the quarter ended September 30, 2006. Net Interest Income Our year over year net interest margin remained flat at 4.02%. As rates stabilized in the latter part of the year, the margin compressed as expected. Our net interest margin for the fourth quarter 2006 was 3.94% compared to 4.12% for the fourth quarter 2005 and 4.08% for the third quarter 2006. Year-to-date net interest income increased 4.4% or $4.6 million from the year ended December 31, 2005. Net interest income for the quarter of $26.7 million was a decrease of 0.9% from the $27.0 million for the fourth quarter 2005 and a 2.7% decrease from the $27.4 million for the third quarter 2006. Average earning assets for the year ended December 31, 2006 increased 4.5% or $116.0 million over the year ended December 31, 2005. Average earning assets increased 3.4% from the quarter ended December 31, 2005 and 0.7% from prior quarter to $2.7 billion for the quarter ended December 31, 2006. Noninterest Income Year-to-date noninterest income decreased 2.7% to $32.7 million for the year ended December 31, 2006 from the $33.6 million for the same period last year. Noninterest income for the quarter ended December 31, 2006 increased 0.2% from the quarter ended December 31, 2005 and 4.6% from the quarter ended September 30, 2006. The following table displays the quarterly and year over year activity in the various significant noninterest income accounts. [TABLE OMITTED] The increase in recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenue sources year over year 2005 to 2006 in deposit related fees and trust revenue were offset by declines in gains on sales of loans due to the interest rate environment and loan related fees. Noninterest Expense Year-to-date noninterest expense increased 2.3% from $78.6 million to $80.4 million. The most significant components of this increase were a 3.8% increase in personnel expenses due to normal annual salary adjustments and health care costs and a 6.8% increase in occupancy and equipment due to expenditures for new branch locations and 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. . Noninterest expense for the quarter ended December 31, 2006 of $20.5 million was a 3.1% increase from the $19.9 million for the fourth quarter 2005 and a 2.8% increase from the $20.0 million for the third quarter 2006. Balance Sheet Review The Company's total assets grew $118.7 million or 4.2% during 2006 with $75.4 million of the growth occurring during the fourth quarter. Asset growth during 2006 was all organic and is inclusive of inclusive of prep. Taking into consideration or account; including. the reduction of $40 million in the investment portfolio during the third quarter to payoff a maturing Federal Home Loan Bank advance. Loans outstanding at December 31, 2006 of $2.2 billion grew $60.1 million or 2.9% during the year. Loan growth for the quarter was $13.3 million, an annualized growth rate of 2.5%. 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. , of $2.5 billion at December 31, 2006 were a 5.3% or $127.1 million increase from December 31, 2005 and an annualized 10.6% or $65.0 million increase from September 30, 2006. The deposit growth in excess of loan growth was invested in our investment portfolio and federal funds Federal Funds Funds deposited to regional Federal Reserve Banks by commercial banks, including funds in excess of reserve requirements. Notes: These non-interest bearing deposits are lent out at the Fed funds rate to other banks unable to meet overnight reserve sold. Federal funds sold almost doubled year over year and quarter over quarter with increases of $31.0 million and $37.7 million, respectively, while the investment portfolio increased 5.0% or $23.7 million year over year and an annualized 7.2% or $8.8 million during the quarter. Shareholders' equity of $282.4 million on December 31, 2006 was an 11.2% increase from the $253.9 million on December 31, 2005 and an annualized increase of 10.8% from the $274.9 million on September 30, 2006. Asset Quality Nonperforming loans at December 31, 2006 were $14.2 million, a 33.5% decrease from $21.4 million at December 31, 2005 and a 9.2% decrease from the $15.7 million at September 30, 2006. Nonperforming loans as a percentage of total loans at December 31, 2006 were 0.66%, a 36 basis point decrease from December 31, 2005 and a 7 basis point decrease from prior quarter. Foreclosed properties at December 31, 2006 were $4.5 million compared to $5.4 million on December 31, 2005 and $3.9 million on September 30, 2006. Net loan charge-offs for the year decreased 16.8% from $7.6 million, or 0.4% of average loans, to $6.3 million, or 0.3% of average loans. Net loan charge-offs for the quarter ended December 31, 2006 were $1.7 million compared to $2.9 million for the quarter ended December 31, 2005 and $1.6 million for the quarter ended September 30, 2006. 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 improvement in asset quality, our reserve for losses on loans as a percentage of total loans outstanding at December 31, 2006 decreased to 1.27% from the 1.40% at December 31, 2005 and the 1.30% at September 30, 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 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 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 74 banking locations across eastern, northeast, 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. , and five trust offices across Kentucky. Additional information follows. [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion