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What changed in COMMUNITY TRUST BANCORP INC /KY/'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of COMMUNITY TRUST BANCORP INC /KY/'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+147 added−149 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in COMMUNITY TRUST BANCORP INC /KY/'s 2025 10-K

147 paragraphs added · 149 removed · 105 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeThese are funded through our Educational Assistance Program. As of December 31, 2024, CTBI and our subsidiaries had 934 full-time equivalent employees. Females comprise 75% of our workforce, and 60% of our managerial positions (supervisor or above) are held by females. This includes 66% of our branch managers, 27% of our market presidents, and 33% of our senior vice presidents.
Biggest changeThese are funded through our Educational Assistance Program. As of December 31, 2025, CTBI and our subsidiaries had 930 full-time equivalent employees. Females comprise 75% of our workforce, and 61% of our managerial positions (supervisor or above) are held by females. This includes 64% of our branch managers, 40% of our market presidents, and 39% of our senior vice presidents.
We are not dependent upon any one customer or a few customers, and the loss of any one or a few customers would not have a material adverse effect on us. See note 18 to the consolidated financial statements contained herein for additional information regarding concentrations of credit. We do not engage in any operations in foreign countries.
We are not dependent upon any one customer or a few customers, and the loss of any one or a few customers would not have a material adverse effect on us. See note 5 to the consolidated financial statements contained herein for additional information regarding concentrations of credit. We do not engage in any operations in foreign countries.
Our employees served over 1,000 hours throughout the year with organizations that provide affordable housing and other services to low and moderate income families and encourage economic development for small businesses and farms. COMPETITION CTBI’s subsidiaries face substantial competition for deposit, credit, trust, wealth management, and brokerage relationships in the communities we serve.
Our employees served over 990 hours throughout the year with organizations that provide affordable housing and other services to low and moderate income families and encourage economic development for small businesses and farms. COMPETITION CTBI’s subsidiaries face substantial competition for deposit, credit, trust, wealth management, and brokerage relationships in the communities we serve.
Employees are also offered the opportunity to complete periodic employee satisfaction surveys anonymously. We have actively supported our employees with a wellness program for the past 20 years. Since beginning the program in 2004, participating employees have experienced improvements in preventing cardiovascular disease, cancer, and diabetes.
Employees are also offered the opportunity to complete periodic employee satisfaction surveys anonymously. We have actively supported our employees with a wellness program for more than 20 years. Since beginning the program in 2004, participating employees have experienced improvements in preventing cardiovascular disease, cancer, and diabetes.
The community bank leverage ratio is the ratio of a banking organization’s Tier 1 capital to its average total consolidated assets, both as reported on the banking organization’s applicable regulatory filings. Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of December 31, 2024 was 13.76%.
The community bank leverage ratio is the ratio of a banking organization’s Tier 1 capital to its average total consolidated assets, both as reported on the banking organization’s applicable regulatory filings. Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of December 31, 2025 was 13.64%.
The commercial bank is Community Trust Bank, Inc., Pikeville, Kentucky (“CTB”) and the trust company is Community Trust and Investment Company, Lexington, Kentucky (“CTIC”). At December 31, 2024, CTBI had total consolidated assets of $6.2 billion and total consolidated deposits, including repurchase agreements, of $5.3 billion. Total shareholders’ equity at December 31, 2024 was $757.6 million.
The commercial bank is Community Trust Bank, Inc., Pikeville, Kentucky (“CTB”) and the trust company is Community Trust and Investment Company, Lexington, Kentucky (“CTIC”). At December 31, 2025, CTBI had total consolidated assets of $6.7 billion and total consolidated deposits, including repurchase agreements, of $5.7 billion. Total shareholders’ equity at December 31, 2025 was $856.1 million.
CTB’s community development lending totaled over $38 million for the year 2024. Also, during 2024, CTBI made contributions totaling over $450 thousand to aid low and moderate income families and communities and encourage economic development.
CTB’s community development lending totaled over $59.6 million for the year 2025. Also, during 2025, CTBI made contributions totaling over $719 thousand to aid low and moderate income families and communities and encourage economic development.
Trust assets under management at December 31, 2024 were $3.7 billion, including CTB’s investment portfolio totaling $1.1 billion.
Trust assets under management at December 31, 2025 were $4.1 billion, including CTB’s investment portfolio totaling $1.1 billion.
CTB’s CBLR ratio as of December 31, 2024 was 13.29%.
CTB’s CBLR ratio as of December 31, 2025 was 13.19%.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs of December 31, 2024, consumer loans comprised approximately 22% of our total loan portfolio. As of December 31, 2024, approximately 85% of our consumer loans and 19% of our total loan portfolio were consumer indirect loans.
Biggest changeAs of December 31, 2025, consumer loans comprised approximately 21% of our total loan portfolio. Approximately 86% of our consumer loans and 18% of our total loan portfolio were consumer indirect loans.
As of December 31, 2024, hotel/motel loans comprised approximately 10% of our total loan portfolio. • Other Commercial Loans . Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.
As of December 31, 2025, hotel/motel loans comprised approximately 10% of our total loan portfolio. • Other Commercial Loans . Repayment is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business.
As of December 31, 2024, commercial real estate nonresidential loans comprised approximately 19% of our total loan portfolio. • Hotel/Motel . The hotel and motel industry is highly susceptible to changes in the domestic and global economic environments, which has caused the industry to experience substantial volatility due to the recent global pandemic.
As of December 31, 2025, commercial real estate nonresidential loans comprised approximately 20% of our total loan portfolio. • Hotel/Motel . The hotel and motel industry is highly susceptible to changes in the domestic and global economic environments, which has caused the industry to experience substantial volatility due to the recent global pandemic.
As of December 31, 2024, commercial real estate residential loans comprised approximately 11% of our total loan portfolio. • Commercial Real Estate Nonresidential . Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.
As of December 31, 2025, commercial real estate residential loans comprised approximately 10% of our total loan portfolio. • Commercial Real Estate Nonresidential . Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.
As of December 31, 2024, other commercial loans comprised approximately 10% of our total loan portfolio. Consumer loans may carry a higher degree of repayment risk than residential mortgage loans, particularly when the consumer loan is unsecured.
As of December 31, 2025, other commercial loans comprised approximately 9% of our total loan portfolio. Consumer loans may carry a higher degree of repayment risk than residential mortgage loans, particularly when the consumer loan is unsecured.
As of December 31, 2024, approximately 68% of our loan portfolio was secured by real estate, with approximately 41% of the portfolio consisting of commercial real estate (“CRE”).
As of December 31, 2025, approximately 70% of our loan portfolio was secured by real estate, with approximately 42% of the portfolio consisting of commercial real estate (“CRE”).

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Removed
Item 1C. Cybersecurity 15 Item 2. Properties 17 Item 3. Legal Proceedings 19 Item 4. [Reserved] 19 Information about our Executive Officers 19 PART II 20 Item 5. Market for the Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities 20 Item 6. [Reserved] 21 Item 7.
Added
Item 1C. Cybersecurity As referenced in the Operational Risks/Cyber Risks section of Item 1A. Risk Factors included in this Form 10-K, our organization may be materially affected by cybersecurity threats and incidents that target its internally managed information technology systems or our critical vendor systems.
Removed
Management’s Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 38 Item 8. Financial Statements and Supplementary Data 39 Notes to Consolidated Financial Statements 43 Reports of Independent Registered Public Accounting Firm 105 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 109 Item 9A.
Added
Our institution utilizes industry standard and regulatory approved assessment tools to identify cybersecurity risks and measure preparedness. The tools provide a repeatable and measurable framework for our organization to measure its cybersecurity preparedness over time.
Removed
Controls and Procedures 109 Item 9B. Other Information 111 PART III 111 Item 10. Directors, Executive Officers, and Corporate Governance of the Registrant 111 Item 11. Executive Compensation 111 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 111 Item 13. Certain Relationships, Related Transactions, and Director Independence 112 Item 14.
Added
The assessment process spans over five domains of interest: (1) cyber risk management and oversight, (2) threat intelligence and collaboration, (3) cybersecurity controls, (4) external dependencies, and (5) cyber incident management and resilience. All domains are currently assessed at an evolving maturity level which is in line with our organizations inherent risk assessment score.
Removed
Principal Accountant Fees and Services 112 PART IV 113 Item 15. Exhibits and Financial Statement Schedules 113 Item 16. Form 10-K Summary 115 Signatures 116 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS 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.
Added
Our institution has purchased and is using tools in the areas of endpoint security, Security Information Event Management (“SIEM”), Privileged Access Management (“PAM”), email and web browsing filtering and management, and user analytics. We also use a comprehensive third party 24-by-7 Security Operations Center (“SOC”) that monitors, detects, and remediates cybersecurity threats adhering to strict service response levels.
Removed
Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements.
Added
The internal assessment process and internal tools and SOC related key indicators are reported on a quarterly basis to the Security and Information Security Committee and the Enterprise-wide Risk Management Committee and annually to the Board of Directors. 15 Table of Contents The assessment process, internal tools, and corresponding SOC related services are also reviewed when new threats arise or when considering changes to the business strategy, such as expanding operations, offering new products and services, or entering into new third-party relationships that support critical activities.
Removed
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, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; the effects of epidemics, pandemics, or other infectious disease outbreaks; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal proceedings and related matters.
Added
Consequently, management shall determine whether additional risk management practices or controls are needed to maintain or augment the institution’s cybersecurity maturity. Our processes for assessing, identifying, and managing material risks from cybersecurity threats have been integrated into our overall risk management processes.
Removed
In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies, regulations, and enforcement actions could affect CTBI’s results.
Added
Our internal audit program executes a comprehensive and layered auditing approach including people, processes and technology in order to evaluate the effectiveness of existing controls and ensure that cybersecurity risk has been adequately mitigated within our institution.
Removed
These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made. PART I
Added
Periodic phishing tests, network and application security reviews, third-party vulnerability assessments and penetration testing are used to gauge the overall effectiveness of our cybersecurity defenses. The audit program and cybersecurity defense evaluations are key parts of our overall risk management processes.
Added
Our enterprise risk management program is designed to identify, assess, and mitigate risks across various aspects of our company, including financial, operational, regulatory, reputational, and legal. Cybersecurity is a critical component of this program, given the increasing reliance on technology and potential of cyber threats.
Added
Our processes and policies related to cybersecurity are focused on: (i) developing organizational understanding to manage cybersecurity risks, (ii) applying safeguards to protect our systems, (iii) detecting the occurrence of a cybersecurity incident, (iv) responding to a cybersecurity incident, and (v) recovering from a cybersecurity incident.
Added
Where appropriate, these processes and policies are integrated into our overall enterprise risk management systems and processes. For example, all of our employees with network access are required to complete information security and privacy training on an annual basis.
Added
We are continuously working to improve our information technology systems and provide employee awareness training around phishing, malware, and other cyber risks to enhance our levels of protection.
Added
Other aspects of our cyber and information security risk management program include: • Monitoring external and internal threats and events, managing access, facilitating use of appropriate authentication options, validating controls and programs by internal teams and independent third parties and testing various compromise scenarios that are overseen by our information security team; • Investing in threat intelligence platforms and participating in financial services industry and government forums which track and report on cyber and other information security threats; • Routinely performing vulnerability tests; • Engaging independent consultants and other third-parties to assist CTBI in establishing and improving its policies; and • Conducting “tabletop” exercises at least annually to test CTBI’s processes and policies and using feedback from those exercises to further improve our processes.
Added
CTBI also maintains insurance coverage for cybersecurity incidents as part of its overall insurance portfolio. In the event of a cybersecurity incident, CTBI maintains incident response plans to investigate, classify, respond to, and manage cybersecurity incidents that may compromise the availability or integrity of our information systems, network resources, or data.
Added
In accordance with the incident response plans, cross-functional management teams assess and assign a threat level t o each cybersecurity incident.
Added
A cybersecurity incident (or incidents, if aggregated together) determined to be at a critical threat level is escalated to a group consisting of CTBI’s Chief Executive Officer and certain other officers, including the Chief Legal Officer, Executive Vice President/Operations, Chief Risk Officer, and Chief Financial Officer for review.
Added
In an effort to continually share threat intelligence and increase awareness of cybersecurity threats, routine communication to employees is conducted to highlight internal control requirements, common cybersecurity threats and schemes. Our incident response team members also participate in the annual Financial Services Information Sharing and Analysis Center tabletop cybersecurity tabletop exercises.
Added
Our comprehensive vendor management program and processes assess all new vendors and segments them into criticality tiers. Our most critical vendors (tiers 1 and 2) are evaluated annually based on requested vendor documents, such as Statements on Standards Attestation Engagements No. 18 (SSAE 18), financial statements, insurance, and due diligence questionnaires.
Added
The vendor management team also monitors all news alerts related to all critical vendors. 16 Table of Contents As of the date of this report, we are not aware of any cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect CTBI.
Added
However, future incidents could have a material impact on CTBI’s business strategy, results of operations, or financial condition. For additional discussion of the risks posed by cybersecurity threats, see the Operational Risks/Cyber Risks section of Item 1A. Risk Factors included in this Form 10-K.
Added
Management receives information on cyber activities, incidents, and risk assessments quarterly from the VP/Corporate Information Security, Resilience and Data Officer (CISRDO), the VP/Manager Client/Server and Network Computing Systems, and the EVP/Operations during the Security and Information Security Committee and the Information Technology Steering Committee meetings. This information is also shared and discussed quarterly with the Enterprise-wide Risk Management Committee.
Added
Various key risk measures related to cyber risk are tracked and reported quarterly to the Enterprise-wide Risk Management Committee. Our VP/CISRDO has been with CTBI for seven years and has extensive 30+ years of experience in information technology management roles in various industries. Our EVP/Operations has been with CTBI for 34 years and held various information technology leadership roles.
Added
Our VP/Manager Client/Server and Network Computing Systems has been with the company for 23 years and has over 36 years of experience in information technology. He is primarily responsible for the technical defense and response to cybersecurity threats for CTBI . The Board of Directors monitors cyber risk through quarterly reports from the Board’s Risk and Compliance Committee.
Added
This Board committee meets quarterly and receives information concerning cyber risk activities, including cyber risk assessments and incident reporting. The Board also receives an annual report covering cyber risk from the Chief Information Technology Officer.
Added
Controls over cyber risk are reviewed throughout the year by internal audit activities and third-party assessments whose reports are reviewed by the Board’s Audit Committee. 17 Table of Contents

Item 2. Properties

Properties — owned and leased real estate

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Biggest changePikeville (Pike County, Kentucky) (lease land at 1 owned location) 1 0 1 Total operational locations 1 0 1 Total locations 74 8 82 * Community Trust and Investment Company has leased offices in the main office locations in these markets. ** Land was purchased in Mt.
Biggest changePikeville (Pike County, Kentucky) (lease land at 1 owned location) 1 0 1 Total operational locations 1 0 1 Total locations 72 10 82 * Community Trust and Investment Company has leased offices in the main office locations in these markets. ** The South Ashland Branch and the Ashland Westwood Branch will close effective February 28, 2026. *** Two of our Mt.
Sterling Market 2 0 2 2 locations in Montgomery County, Kentucky Versailles Market (lease land at 2 owned locations) 3 2 5 1 location in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 2 locations in Scott County, Kentucky * Danville Market (lease land at 1 owned location) 3 0 3 2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky * Ashland Market (lease land at 1 owned location) 5 0 5 4 locations in Boyd County, Kentucky and 1 location in Greenup County, Kentucky Flemingsburg Market 3 0 3 3 locations in Fleming County, Kentucky Advantage Valley Market 3 1 4 2 locations in Lincoln County, West Virginia, 1 location in Wayne County, West Virginia, and 1 location in Cabell County, West Virginia Summersville Market 1 0 1 1 location in Nicholas County, West Virginia Middlesboro Market (lease land at 1 owned location) 3 0 3 3 locations in Bell County, Kentucky Williamsburg Market 5 0 5 2 locations in Whitley County, Kentucky and 3 locations in Laurel County, Kentucky Campbellsville Market (lease land at 2 owned locations) 9 0 9 2 locations in Taylor County, Kentucky, 2 locations in Pulaski County, Kentucky, 1 location in Adair County, Kentucky, 1 location in Green County, Kentucky, 1 location in Russell County, Kentucky, 1 location in Marion County, Kentucky, and 1 location in Hardin County, Kentucky Mt.
Sterling Market 0 2 2 2 locations in Montgomery County, Kentucky Versailles Market (lease land at 2 owned locations) 3 2 5 1 location in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 2 locations in Scott County, Kentucky * Danville Market (lease land at 1 owned location) 3 0 3 2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky *** Ashland Market (lease land at 1 owned location) 5 0 5 4 locations in Boyd County, Kentucky and 1 location in Greenup County, Kentucky Flemingsburg Market 3 0 3 3 locations in Fleming County, Kentucky Advantage Valley Market 3 1 4 2 locations in Lincoln County, West Virginia, 1 location in Wayne County, West Virginia, and 1 location in Cabell County, West Virginia Summersville Market 1 0 1 1 location in Nicholas County, West Virginia Middlesboro Market (lease land at 1 owned location) 3 0 3 3 locations in Bell County, Kentucky Williamsburg Market 5 0 5 2 locations in Whitley County, Kentucky and 3 locations in Laurel County, Kentucky Campbellsville Market (lease land at 2 owned locations) 9 0 9 2 locations in Taylor County, Kentucky, 2 locations in Pulaski County, Kentucky, 1 location in Adair County, Kentucky, 1 location in Green County, Kentucky, 1 location in Russell County, Kentucky, 1 location in Marion County, Kentucky, and 1 location in Hardin County, Kentucky Mt.
Following is a schedule of properties owned and leased by CTBI and our subsidiaries as of December 31, 2024: Location Owned Leased Total Banking locations: Community Trust Bank, Inc. * Pikeville Market (lease land at 3 owned locations) 9 1 10 10 locations in Pike County, Kentucky Floyd/Knott/Johnson Market (lease land at 1 owned location) 3 1 4 2 locations in Floyd County, Kentucky, 1 location in Knott County, Kentucky, and 1 location in Johnson County, Kentucky Tug Valley Market (lease land at 1 owned location) 2 0 2 1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia Whitesburg Market (lease land at 1 owned location) 4 1 5 5 locations in Letcher County, Kentucky Hazard Market (lease land at 2 owned locations) 3 0 3 3 locations in Perry County, Kentucky * Lexington Market (lease land at 3 owned locations) 5 2 7 6 locations in Fayette County, Kentucky, 1 location in Boone County, Kentucky 17 Table of Contents Winchester Market 2 0 2 2 locations in Clark County, Kentucky Richmond Market (lease land at 1 owned location) 3 0 3 3 locations in Madison County, Kentucky ** Mt.
Following is a schedule of properties owned and leased by CTBI and our subsidiaries as of December 31, 2025: Location Owned Leased Total Banking locations: Community Trust Bank, Inc. * Pikeville Market (lease land at 3 owned locations) 9 1 10 10 locations in Pike County, Kentucky Floyd/Knott/Johnson Market (lease land at 1 owned location) 3 1 4 2 locations in Floyd County, Kentucky, 1 location in Knott County, Kentucky, and 1 location in Johnson County, Kentucky Tug Valley Market (lease land at 1 owned location) 2 0 2 1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia Whitesburg Market (lease land at 1 owned location) 4 1 5 5 locations in Letcher County, Kentucky Hazard Market (lease land at 2 owned locations) 3 0 3 3 locations in Perry County, Kentucky * Lexington Market (lease land at 3 owned locations) 5 2 7 6 locations in Fayette County, Kentucky, 1 location in Boone County, Kentucky Winchester Market 2 0 2 2 locations in Clark County, Kentucky Richmond Market (lease land at 1 owned location) 3 0 3 3 locations in Madison County, Kentucky ** Mt.
Vernon Market 2 0 2 2 locations in Rockcastle County, Kentucky * LaFollette Market 3 0 3 2 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee Total banking locations 73 8 81 Operational locations: Community Trust Bank, Inc.
Vernon Market 2 0 2 2 locations in Rockcastle County, Kentucky * LaFollette Market 3 0 3 2 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee Total banking locations 71 10 81 Operational locations: Community Trust Bank, Inc.
Sterling for a branch consolidation scheduled to open in the 3 rd quarter 2025. See notes 7 and 15 to the consolidated financial statements contained herein for the year ended December 31, 2024, for additional information relating to lease commitments and amounts invested in premises and equipment. 18 Table of Contents
See notes 6 and 7 to the consolidated financial statements contained herein for the year ended December 31, 2025, for additional information relating to lease commitments and amounts invested in premises and equipment. 18 Table of Contents
Added
Sterling locations were consolidated into a new branch location which opened in February 2026. Mt. Sterling North Branch was sold, and Mt. Sterling Main Branch was donated. The two original branches continued to operate under short-term lease arrangements until the new branch was opened. Land was purchased in 2024 for the new branch location.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

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Biggest changeNewsom became President of CTB on February 7, 2022. He previously served as President of the Eastern Region of CTB. (8) Mr. Smith was named Executive Vice President of CTBI and Executive Vice President/Chief Credit Officer of CTB effective January 2, 2024. He was previously Senior Vice President/Loan Review Manager of CTB. (9) Mr.
Biggest changeSmith was named Executive Vice President of CTBI and Executive Vice President/Chief Credit Officer of CTB effective January 2, 2024. He was previously Senior Vice President/Loan Review Manager of CTB. (9) Mr. Tackett became Executive Vice President of CTBI and President of the Eastern Region of CTB on February 7, 2022.
Dollins became Executive Vice President of CTBI and President of the Central Kentucky Region of CTB on January 3, 2023. She previously held the position of President of the Versailles Market of CTB. (4) Mr. Hancock became Secretary of CTBI on February 7, 2022. (5) Mr. Jameson is a non-voting member of the Executive Committee. (6) Mr.
Dollins became Executive Vice President of CTBI and President of the Central Kentucky Region of CTB on January 3, 2023. She previously held the position of President of the Versailles Market of CTB. (4) Mr. Hancock became Secretary of CTBI on February 7, 2022. (5) Mr. Jameson is a non-voting member of the Executive Committee. Mr.
Gooch; 66 Chairman, President, and Chief Executive Officer 1997 (2) Chairman, President, and CEO of CTBI Kevin J. Stumbo; 64 Executive Vice President, Chief Financial Officer, and Treasurer 2002 Executive Vice President/ Chief Financial Officer of CTBI Billie J. Dollins; 64 Executive Vice President 2023 (3) Executive Vice President/ Central Kentucky Region President of CTB C.
Gooch; 67 Chairman, President, and Chief Executive Officer 1997 (2) Chairman, President, and CEO of CTBI Kevin J. Stumbo; 65 Executive Vice President, Chief Financial Officer, and Treasurer 2002 Executive Vice President/ Chief Financial Officer of CTBI Billie J. Dollins; 65 Executive Vice President 2023 (3) Executive Vice President/ Central Kentucky Region President of CTB C.
Wayne Hancock; 50 Executive Vice President and Secretary 2014 (4) Executive Vice President/ Chief Legal Officer of CTB Steven E. Jameson; 68 Executive Vice President 2004 (5) Executive Vice President/ Chief Internal Audit & Risk Officer of CTB D. Andrew Jones; 62 Executive Vice President 2010 Executive Vice President/ Northeastern Region President of CTB Thomas E.
Wayne Hancock; 51 Executive Vice President and Secretary 2014 (4) Executive Vice President/ Chief Legal Officer of CTB Steven E. Jameson; 69 Executive Vice President 2004 (5) Executive Vice President/ Chief Internal Audit & Risk Officer of CTB D. Andrew Jones; 63 Executive Vice President 2010 Executive Vice President/ Northeastern Region President of CTB Thomas E.
Sparkman; 62 Executive Vice President 2002 Executive Vice President/ South Central Region President of CTB David Tackett; 59 Executive Vice President 2022 (9) Executive Vice President/ Eastern Region President of CTB Andy D.
Sparkman; 63 Executive Vice President 2002 Executive Vice President/ South Central Region President of CTB David Tackett; 60 Executive Vice President 2022 (9) Executive Vice President/ Eastern Region President of CTB Andy D.
McCoy; 56 Executive Vice President 2025 (6) Executive Vice President/Operations of CTB Richard W. Newsom; 70 Executive Vice President 2002 (7) Executive Vice President/ President of CTB Mark E. Smith; 54 Executive Vice President 2024 (8) Executive Vice President/ Chief Credit Officer of CTB Ricky D.
McCoy; 57 Executive Vice President 2025 (6) Executive Vice President/Operations of CTB Richard W. Newsom; 71 Executive Vice President 2002 (7) Executive Vice President/ President of CTB Mark E. Smith; 55 Executive Vice President 2024 (8) Executive Vice President/ Chief Credit Officer of CTB Ricky D.
Waters; 59 Executive Vice President 2011 President and CEO of CTIC 19 Table of Contents (1) The ages listed for CTBI’s executive officers are as of February 28, 2025. (2) Mr. Gooch was appointed Chairman of the Board effective with the retirement of M. Lynn Parrish on March 17, 2024. Mr.
Waters; 60 Executive Vice President 2011 President and CEO of CTIC 19 Table of Contents (1) The ages listed for CTBI’s executive officers are as of February 27, 2026. (2) Mr. Gooch was appointed Chairman of the Board on March 17, 2024. Mr.
McCoy was named Executive Vice President of CTBI and Executive Vice President/Operations of CTB effective February 1, 2025, following the retirement of James B. Draughn, former Executive Vice President of CTBI and Executive Vice President/Operations of CTB, effective January 31, 2025. Mr. McCoy previously held the position of Senior Vice President/Application Systems Manager. (7) Mr.
Draughn, former Executive Vice President of CTBI and Executive Vice President/Operations of CTB, effective January 31, 2025. Mr. McCoy previously held the position of Senior Vice President/Application Systems Manager. (7) Mr. Newsom became President of CTB on February 7, 2022. He previously served as President of the Eastern Region of CTB. (8) Mr.
Tackett became Executive Vice President of CTBI and President of the Eastern Region of CTB on February 7, 2022. He previously held the position of President of the Floyd, Knott, and Johnson Market of CTB. PART II
He previously held the position of President of the Floyd, Knott, and Johnson Market of CTB. PART II
Added
Jameson retired effective February 27, 2026. Tracy A. Wesley has been named his successor. Ms. Wesley has served as SVP/Internal Audit Manager since 2012. (6) Mr. McCoy was named Executive Vice President of CTBI and Executive Vice President/Operations of CTB effective February 1, 2025, following the retirement of James B.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeComparison of 5 Year Cumulative Total Return among Community Trust Bancorp, Inc., NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks Fiscal Year Ending December 31 ($) 2019 2020 2021 2022 2023 2024 Community Trust Bancorp, Inc. 100.00 82.72 100.87 110.12 109.47 137.01 NASDAQ Stock Market (U.S.) 100.00 121.27 152.67 122.55 154.93 192.86 NASDAQ Bank Stocks 100.00 87.20 119.74 99.06 109.02 146.80
Biggest changeComparison of 5 Year Cumulative Total Return among Community Trust Bancorp, Inc., NASDAQ Stock Market (U.S.), and NASDAQ Bank Stocks Fiscal Year Ending December 31 ($) 2020 2021 2022 2023 2024 2025 Community Trust Bancorp, Inc. 100.00 121.94 133.13 132.35 165.63 182.71 NASDAQ Stock Market (U.S.) 100.00 125.89 101.05 127.76 159.03 186.96 NASDAQ Bank Stocks 100.00 137.31 113.60 125.02 168.35 216.97
The graph assumes the investment of $100 on December 31, 2019 in CTBI’s common stock and in each index and the reinvestment of all dividends paid during the five-year period.
The graph assumes the investment of $100 on December 31, 2020 in CTBI’s common stock and in each index and the reinvestment of all dividends paid during the five-year period.
For information concerning restrictions on dividends from the subsidiary bank to CTBI, see note 20 to the consolidated financial statements contained herein for the year ended December 31, 2024. Stock Repurchases CTBI did not acquire any shares of stock through the stock repurchase program during the year 2024. There are 1,034,706 shares remaining under CTBI’s current repurchase authorization.
For information concerning restrictions on dividends from the subsidiary bank to CTBI, see note 21 to the consolidated financial statements contained herein for the year ended December 31, 2025. Stock Repurchases CTBI did not acquire any shares of stock through the stock repurchase program during the year 2025. There are 1,034,706 shares remaining under CTBI’s current repurchase authorization.
Item 5. Market for the Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities Our common stock is listed on The NASDAQ Global Select Market under the symbol CTBI. As of January 31, 2025, there were approximately 9,800 holders of record of our outstanding common shares.
Item 5. Market for the Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities Our common stock is listed on The NASDAQ Global Select Market under the symbol CTBI. As of January 31, 2026, there were approximately 13,800 holders of record of our outstanding common shares.
Dividends The annual dividend paid to our stockholders was increased from $1.80 per share to $1.86 per share during 2024. We have adopted a conservative policy of cash dividends by generally maintaining an average annual cash dividend ratio of approximately 45%, with periodic stock dividends.
Dividends The annual dividend paid to our stockholders was increased from $1.86 per share to $2.00 per share during 2025. We have adopted a conservative policy of cash dividends by generally maintaining an average annual cash dividend ratio of approximately 45%, with periodic stock dividends.
The current year cash dividend ratio was 40.3%, and the 10-year average dividend payout ratio has been 41.5%. Dividends are typically paid on a quarterly basis. Future dividends are subject to the discretion of CTBI’s Board of Directors, cash needs, general business conditions, dividends from our subsidiaries, and applicable governmental regulations and policies.
The current year cash dividend ratio was 36.8%, and the 10-year average dividend payout ratio has been 40.6%. Dividends are typically paid on a quarterly basis. Future dividends are subject to the discretion of CTBI’s Board of Directors, cash needs, general business conditions, dividends from our subsidiaries, and applicable governmental regulations and policies.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

69 edited+15 added−36 removed49 unchanged
Biggest changeTreasury and agencies 775,788 16,526 2.13 855,300 17,369 2.03 Tax exempt state and political subdivisions (3) 102,783 3,401 3.31 105,158 3,568 3.39 Other securities 227,116 8,427 3.71 243,012 9,894 4.07 Federal Reserve Bank and Federal Home Loan Bank stock 10,099 783 7.75 10,841 759 7.00 Federal funds sold 19 1 5.26 256 9 3.52 Interest bearing deposits 204,113 10,396 5.09 138,646 6,968 5.03 Other investments 245 6 2.45 245 0 0.00 Investment in unconsolidated subsidiaries 1,858 132 7.10 1,857 129 6.95 Total earning assets $ 5,569,948 $ 314,582 5.65 % $ 5,244,128 $ 269,841 5.15 % Allowance for credit losses (51,749 ) (47,606 ) 5,518,199 5,196,522 Nonearning assets: Cash and due from banks 58,714 61,184 Premises and equipment and right of use assets, net 62,584 60,232 Other assets 254,498 254,203 Total assets $ 5,893,995 $ 5,572,141 Interest bearing liabilities: Deposits: Savings and demand deposits $ 2,309,430 $ 62,812 2.72 % $ 2,136,653 $ 52,336 2.45 % Time deposits 1,260,730 49,704 3.94 1,071,584 28,831 2.69 Repurchase agreements and federal funds purchased 229,408 10,393 4.53 219,591 8,994 4.10 Advances from Federal Home Loan Bank 597 16 2.68 18,494 1,004 5.43 Long-term debt 64,130 4,365 6.81 64,351 4,257 6.62 Finance lease liability 3,438 158 4.60 3,469 118 3.40 Total interest bearing liabilities $ 3,867,733 $ 127,448 3.30 % $ 3,514,142 $ 95,540 2.72 % Noninterest bearing liabilities: Demand deposits 1,238,101 1,343,917 Other liabilities 56,042 50,418 Total liabilities 5,161,876 4,908,477 Shareholders’ equity 732,119 663,664 Total liabilities and shareholders’ equity $ 5,893,995 $ 5,572,141 Net interest income, tax equivalent $ 187,134 $ 174,301 Less tax equivalent interest income 1,139 1,191 Net interest income $ 185,995 $ 173,110 Net interest spread 2.35 % 2.43 % Benefit of interest free funding 1.01 0.89 Net interest margin 3.36 % 3.32 % (1) Interest includes fees on loans of $1,998 and $1,770 in 2024 and 2023, respectively.
Biggest changeTreasury and agencies 730,797 17,230 2.36 775,788 16,526 2.13 Tax exempt state and political subdivisions (3) 98,916 3,265 3.30 102,783 3,401 3.31 Other securities 207,120 6,436 3.11 227,116 8,427 3.71 Federal Reserve Bank and Federal Home Loan Bank stock 10,199 749 7.34 10,099 783 7.75 Federal funds sold 185 8 4.32 19 1 5.26 Interest bearing deposits 337,538 14,172 4.20 204,113 10,396 5.09 Other investments 245 6 2.45 245 6 2.45 Investment in unconsolidated subsidiaries 1,856 114 6.14 1,858 132 7.10 Total earning assets $ 6,077,559 $ 346,899 5.71 % $ 5,569,948 $ 314,582 5.65 % Allowance for credit losses (57,468 ) (51,749 ) 6,020,091 5,518,199 Nonearning assets: Cash and due from banks 56,003 58,714 Premises and equipment and right of use assets, net 67,048 62,584 Other assets 267,324 254,498 Total assets $ 6,410,466 $ 5,893,995 Interest bearing liabilities: Deposits: Savings and demand deposits $ 2,497,537 $ 56,626 2.27 % $ 2,309,430 $ 62,812 2.72 % Time deposits 1,478,344 56,121 3.80 1,260,730 49,704 3.94 Repurchase agreements and federal funds purchased 255,055 10,012 3.93 229,408 10,393 4.53 Advances from Federal Home Loan Bank 577 12 2.08 597 16 2.68 Long-term debt 63,901 3,783 5.92 64,130 4,365 6.81 Finance lease liability 3,818 187 4.90 3,438 158 4.60 Total interest bearing liabilities $ 4,299,232 $ 126,741 2.95 % $ 3,867,733 $ 127,448 3.30 % Noninterest bearing liabilities: Demand deposits 1,239,531 1,238,101 Other liabilities 59,541 56,042 Total liabilities 5,598,304 5,161,876 Shareholders’ equity 812,162 732,119 Total liabilities and shareholders’ equity $ 6,410,466 $ 5,893,995 Net interest income, tax equivalent $ 220,158 $ 187,134 Less tax equivalent interest income 1,180 1,139 Net interest income $ 218,978 $ 185,995 Net interest spread 2.76 % 2.35 % Benefit of interest free funding 0.86 1.01 Net interest margin 3.62 % 3.36 % (1) Interest includes fees on loans of $2,284 and $1,998 in 2025 and 2024, respectively.
These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates. Our accounting policies are described in note 1 to the consolidated financial statements contained herein.
These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting estimates to be appropriate, and actual results have not differed materially from those determined using necessary estimates. Our accounting policies are described in note 1 to the consolidated financial statements contained herein.
The following table shows Board authorizations and repurchases made through the stock repurchase program for the years 1998 through 2024: Board Authorizations Repurchases* Shares Available for Repurchase Average Price ($) # of Shares 1998 500,000 - 0 1999 0 14.45 144,669 2000 1,000,000 10.25 763,470 2001 0 13.35 489,440 2002 0 17.71 396,316 2003 1,000,000 19.62 259,235 2004 0 23.14 60,500 2005 0 - 0 2006 0 - 0 2007 0 28.56 216,150 2008 0 25.53 102,850 2009-2019 0 - 0 2020 1,000,000 33.64 32,664 2021 0 - 0 2022 0 - 0 2023 0 - 0 2024 0 - 0 Total 3,500,000 16.17 2,465,294 1,034,706 *Repurchased shares and average prices have been restated to reflect stock dividends that have occurred; however, board authorized shares have not been adjusted.
The following table shows Board authorizations and repurchases made through the stock repurchase program for the years 1998 through 2025: Board Authorizations Repurchases* Shares Available for Repurchase Average Price ($) # of Shares 1998 500,000 - 0 1999 0 14.45 144,669 2000 1,000,000 10.25 763,470 2001 0 13.35 489,440 2002 0 17.71 396,316 2003 1,000,000 19.62 259,235 2004 0 23.14 60,500 2005 0 - 0 2006 0 - 0 2007 0 28.56 216,150 2008 0 25.53 102,850 2009-2019 0 - 0 2020 1,000,000 33.64 32,664 2021 0 - 0 2022 0 - 0 2023 0 - 0 2024 0 - 0 2025 0 - 0 Total 3,500,000 16.17 2,465,294 1,034,706 *Repurchased shares and average prices have been restated to reflect stock dividends that have occurred; however, board authorized shares have not been adjusted.
At December 31, 2024 and December 31, 2023, we had $50 million in lines of credit with various correspondent banks available to meet any future cash needs. Our primary investing activities include purchases of securities and loan originations. We do not rely on any one source of liquidity and manage availability in response to changing consolidated balance sheet needs.
At December 31, 2025 and 2024, we had $50 million in lines of credit with various correspondent banks available to meet any future cash needs. Our primary investing activities include purchases of securities and loan originations. We do not rely on any one source of liquidity and manage availability in response to changing consolidated balance sheet needs.
The three-month CME Term SOFR rate is projected using the most likely rate forecast from assumptions incorporated in the interest rate risk model and is determined two business days prior to the interest payment date. The interest on the $6.2 million in loan related borrowings is based on a fixed rate of 3.25%.
The three-month CME Term SOFR rate is projected using the most likely rate forecast from assumptions incorporated in the interest rate risk model and is determined two business days prior to the interest payment date. The interest on the $6.0 million in loan related borrowings is based on a fixed rate of 3.25%.
For further information, see Item 1 of this annual report. 22 Table of Contents Financial Goals and Performance The following table shows the primary measurements used by management to assess annual performance. The goals in the table below should not be viewed as a forecast of our performance for 2025.
For further information, see Item 1 of this annual report. 22 Table of Contents Financial Goals and Performance The following table shows the primary measurements used by management to assess annual performance. The goals in the table below should not be viewed as a forecast of our performance for 2026.
(3) Tax exempt income on securities and loans is reported on a fully taxable equivalent basis using a 24.95% rate. 25 Table of Contents Net Interest Differential The following table illustrates the approximate effect of volume and rate changes on net interest differentials between 2024 and 2023.
(3) Tax exempt income on securities and loans is reported on a fully taxable equivalent basis using a 24.95% rate. 25 Table of Contents Net Interest Differential The following table illustrates the approximate effect of volume and rate changes on net interest differentials between 2025 and 2024.
The Loan Review Department has annually reviewed on average 97% of the outstanding commercial loan portfolio for the past three years. The average annual review percentage of the consumer and residential loan portfolio for the past three years was 81% based on the loan production during the number of months included in the review scope.
The Loan Review Department has annually reviewed on average 97% of the outstanding commercial loan portfolio for the past three years. The average annual review percentage of the consumer and residential loan portfolio for the past three years was 82% based on the loan production during the number of months included in the review scope.
We believe our liquidity sources as mentioned in the liquidity discussion are adequate to meet our future cash requirements. 31 Table of Contents Investment Maturities Estimated Maturity at December 31, 2024 Within 1 Year 1-5 Years 5-10 Years After 10 Years Total Fair Value Amortized Cost (in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Amount U.S.
We believe our liquidity sources as mentioned in the liquidity discussion are adequate to meet our future cash requirements. 30 Table of Contents Investment Maturities Estimated Maturity at December 31, 2025 Within 1 Year 1-5 Years 5-10 Years After 10 Years Total Fair Value Amortized Cost (in thousands) Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield Amount U.S.
As of December 31, 2024, a total of 2,465,294 shares have been repurchased through this program, leaving 1,034,706 shares remaining under our current repurchase authorization.
As of December 31, 2025, a total of 2,465,294 shares have been repurchased through this program, leaving 1,034,706 shares remaining under our current repurchase authorization.
Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements. 35 Table of Contents We believe the application of accounting policies and the estimates required therein are reasonable.
Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements. We believe the application of accounting policies and the estimates required therein are reasonable.
Rather, the goals represent a range of target performance for 2025. There is no assurance that any or all of these goals will be achieved.
Rather, the goals represent a range of target performance for 2026. There is no assurance that any or all of these goals will be achieved.
In 2024 and 2023, proceeds of $11.6 million and $15.2 million, respectively, were realized on the sale of fixed rate residential mortgages. We focus our efforts on consistent net interest revenue and net interest margin growth through each of the retail and wholesale business lines. We do not currently engage in trading activities.
In 2025 and 2024, proceeds of $11.9 million and $11.6 million, respectively, were realized on the sale of fixed rate residential mortgages. We focus our efforts on consistent net interest revenue and net interest margin growth through each of the retail and wholesale business lines. We do not currently engage in trading activities.
As a practical expedient, the fair value of the collateral may be used for a loan when determining the ACL for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty. The fair value shall be adjusted for selling costs when foreclosure is probable.
As a practical expedient, the fair value of the collateral may be used for a loan when determining the ACL for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is experiencing financial difficulty.
Federal Home Loan Bank advances were $0.3 million at December 31, 2024 and December 31, 2023. As of December 31, 2024, we had a $485.0 million available borrowing position with the Federal Home Loan Bank, compared to $476.2 million at December 31, 2023.
Federal Home Loan Bank advances were $0.3 million at December 31, 2025 and December 31, 2024. As of December 31, 2025, we had a $546.9 million available borrowing position with the Federal Home Loan Bank, compared to $485.0 million at December 31, 2024.
Cash dividends were $1.86 per share for 2024 compared to $1.80 per share for 2023. We retained 59.7% of our earnings in 2023 compared to 58.7% in 2023. Insured depository institutions are required to meet certain capital level requirements.
Cash dividends were $2.00 per share for 2025 compared to $1.86 per share for 2024. We retained 63.2% of our earnings in 2025 compared to 59.7% in 2024. Insured depository institutions are required to meet certain capital level requirements.
As of December 31, 2024, we had approximately $369.5 million in cash and cash equivalents and approximately $170.6 million in unpledged securities valued at estimated fair value designated as available-for-sale and available to meet liquidity needs on a continuing basis compared to $271.4 million and $157.5 million at December 31, 2023.
As of December 31, 2025, we had approximately $363.7 million in cash and cash equivalents and approximately $174.7 million in unpledged securities valued at estimated fair value designated as available-for-sale and available to meet liquidity needs on a continuing basis compared to $369.5 million and $170.6 million, respectively, at December 31, 2024.
We disaggregate our portfolio loans into portfolio segments for purposes of determining the ACL. Our loan portfolio segments include commercial, residential mortgage, and consumer. We further disaggregate our portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics.
We have identified the following critical accounting estimates: Allowance for Credit Losses – We disaggregate our portfolio loans into portfolio segments for purposes of determining the ACL. Our loan portfolio segments include commercial, residential mortgage, and consumer. We further disaggregate our portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk characteristics.
Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of December 31, 2024 was 13.76%. CTB’s CBLR ratio as of December 31, 2024 was 13.29%.
Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of December 31, 2025 was 13.64%.
Income is stated at a fully taxable equivalent basis, using a 24.95% tax rate. Net interest income for the year ended December 31, 2024 of $186.0 million increased $12.9 million, or 7.4%, from prior year with an increase in average earning assets for the year 2024 of $325.8 million, or 6.2%.
Income is stated at a fully taxable equivalent basis, using a 24.95% tax rate. Net interest income for the year ended December 31, 2025 of $219.0 million increased $33.0 million, or 17.7%, from prior year with an increase in average earning assets for the year 2025 of $507.6 million, or 9.1%.
Capital Resources We continue to grow our shareholders’ equity while also providing an annual dividend yield for the year 2024 of 3.55% to shareholders. Shareholders’ equity increased 7.9% from December 31, 2023 to $757.6 million at December 31, 2024. Our primary source of capital growth is the retention of earnings.
Capital Resources We continue to grow our shareholders’ equity while also providing an annual dividend yield for the year 2025 of 3.75% to shareholders. Shareholders’ equity increased 13.0% from December 31, 2024 to $856.1 million at December 31, 2025. Our primary source of capital growth is the retention of earnings.
The interest on $57.8 million in junior subordinated debentures is calculated based on the three-month CME Term SOFR plus a tenor spread adjustment of 0.26161% plus 1.59% until its maturity of June 1, 2037.
The interest on $57.8 million in junior subordinated debentures is calculated based on the three-month Chicago Mercantile Exchange (“CME”) Term Secured Overnight Financing Rate (“SOFR”), plus a tenor spread adjustment of 0.26161% plus 1.59% until its maturity of June 1, 2037.
The increase in loans from prior year included a $288.9 million increase in the commercial loan portfolio, a $126.3 million increase in the residential loan portfolio, and a $26.8 million increase in the indirect loan portfolio, partially offset by a $6.3 million decrease in the consumer direct loan portfolio.
The increase in loans from prior year included a $220.6 million increase in the commercial loan portfolio, a $182.8 million increase in the residential loan portfolio, and a $12.2 million increase in the indirect loan portfolio, partially offset by a $7.3 million decrease in the consumer direct loan portfolio.
Average loans to deposits, including repurchase agreements, for the year ended December 31, 2024 were 84.3% compared to 81.5% for the year ended December 31, 2023. Provision for Credit Losses P rovision for credit losses for the year 2024 was $11.0 million compared to $6.8 million during the year 2023 .
Average loans to deposits, including repurchase agreements, for the year ended December 31, 2025 were 85.8% compared to 84.3% for the year ended December 31, 2024. Provision for Credit Losses Provision for credit losses for the year 2025 was $12.4 million compared to $11.0 million during the year 2024.
The measurement at December 31, 2024 estimates that our net interest income in an up-rate environment would increase by 3.83% at a 400 basis point change, increase by 2.88% at a 300 basis point change, increase by 1.93% at a 200 basis point change, and increase by 0.98% at a 100 basis point change.
The measurement at December 31, 2025 estimates that our net interest income in an up-rate environment would increase by 4.77% at a 400 basis point change, increase by 3.61% at a 300 basis point change, increase by 2.43% at a 200 basis point change, and increase by 1.22% at a 100 basis point change.
The following table shows our estimated earnings sensitivity profile as of December 31, 2024: Change in Interest Rates (basis points) Percentage Change in Net Interest Income (12 Months) +400 3.83% +300 2.88% +200 1.93% +100 0.98% -100 (1.34)% -200 (2.76)% -300 (4.07)% -400 (5.32)% The following table shows our estimated earnings sensitivity profile as of December 31, 2023: Change in Interest Rates (basis points) Percentage Change in Net Interest Income (12 Months) +400 11.50% +300 8.89% +200 6.29% +100 3.65% -100 (0.67)% -200 (2.41)% -300 (4.06)% -400 (5.68)% 33 Table of Contents The simulation model used the yield curve spread evenly over a twelve-month period.
The following table shows our estimated earnings sensitivity profile as of December 31, 2025: Change in Interest Rates (basis points) Percentage Change in Net Interest Income (12 Months) (%) +400 4.77 +300 3.61 +200 2.43 +100 1.22 -100 (1.30) -200 (2.21) -300 (2.85) -400 (3.45) 32 Table of Contents The following table shows our estimated earnings sensitivity profile as of December 31, 2024: Change in Interest Rates (basis points) Percentage Change in Net Interest Income (12 Months) (%) +400 3.83 +300 2.88 +200 1.93 +100 0.98 -100 (1.34) -200 (2.76) -300 (4.07) -400 (5.32) The simulation model used the yield curve spread evenly over a twelve-month period.
Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.
With certain exceptions, the value of stock repurchased is determined net of stock issued in the year, including shares issued pursuant to compensatory arrangements. 34 Table of Contents Critical Accounting Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.
In a down-rate environment, net interest income would decrease 1.34% at a 100 basis point change, decrease by 2.76% at a 200 basis point change, decrease by 4.07% at a 300 basis point change, and decrease by 5.32% at a 400 basis point change over one year.
In a down-rate environment, net interest income would decrease 1.30% at a 100 basis point change, decrease by 2.21% at a 200 basis point change, decrease by 2.85% at a 300 basis point change, and decrease by 3.45% at a 400 basis point change over one year.
CTBI’s methodology for determining the ACL requires significant management judgment and includes an estimate of expected credit losses on a collective basis for groups of loans with similar risk characteristics and specific allowances for loans which are individually evaluated. 36 Table of Contents Larger commercial loans with balances exceeding $1 million that exhibit probable or observed credit weaknesses and (i) have a criticized risk rating, (ii) are on nonaccrual status, (iii) have a borrower experiencing financial difficulty with significant payment delay, or (iv) are 90 days or more past due, are individually evaluated for an ACL.
Larger commercial loans with balances exceeding $1 million that exhibit probable or observed credit weaknesses and (i) have a criticized risk rating, (ii) are on nonaccrual status, (iii) have a borrower experiencing financial difficulty with significant payment delay, or (iv) are 90 days or more past due, are individually evaluated for an ACL.
See “Cautionary Statement Regarding Forward Looking Statements.” 2024 Goals 2024 Performance 2025 Goals Basic earnings per share $ 4.31 - $4.49 $ 4.61 $4.86 - $5.06 Net income $77.7 - $80.8 million $82.8 million $88.0 - $91.6 million ROAA 1.33% - 1.39% 1.41% 1.41% - 1.46% ROAE 10.99% - 11.44% 11.31% 11.17% - 11.62% Revenues $236.8 - $246.5 million $248.6 million $261.6 - $272.3 million Noninterest revenue as % of total revenue 23.50% - 25.50% 25.00% 23.50% - 25.50% Assets $5.74 - $6.10 billion $6.19 billion $6.19 - $6.57 billion Loans $4.18 - $4.35 billion $4.49 billion $4.53 - $4.71 billion Deposits, including repurchase agreements $4.97 - $5.17 billion $5.31 billion $5.32 - $5.54 billion Shareholders’ equity $711.2 - $740.3 million $757.6 million $797.8 - $830.3 million Results of Operations and Financial Condition We reported earnings of $82.8 million, or $4.61 per basic share, for the year ended December 31, 2024 compared to $78.0 million, or $4.36 per basic share, for the year ended December 31, 2023.
See “Cautionary Statement Regarding Forward Looking Statements.” 2025 Goals 2025 Performance 2026 Goals Basic earnings per share $4.86 - $5.06 $5.44 $5.78 - $6.02 Net income $88.0 - $91.6 million $98.1 million $105.1 - $109.3 million ROAA 1.41% - 1.46% 1.53% 1.53% - $1.59% ROAE 11.17% - 11.62% 12.07% 11.67% - 12.15% Revenues $261.6 - $272.3 million $282.6 million $294.7 - $306.7 million Noninterest revenue as % of total revenue 23.50% - 25.50% 22.41% 22.0% - 24.5% Assets $6.19 - $6.57 billion $6.68 billion $6.80 - $7.23 billion Loans $4.53 - $4.71 billion $4.89 billion $5.02 - $5.22 billion Deposits, including repurchase agreements $5.32 - $5.54 billion $5.70 billion $5.83 - $6.07 billion Shareholders’ equity $797.8 - $830.3 million $856.1 million $923.9 - $961.6 million Results of Operations and Financial Condition We reported record earnings of $98.1 million, or $5.44 per basic share, for the year ended December 31, 2025 compared to $82.8 million, or $4.61 per basic share, for the year ended December 31, 2024.
Our yield on average earning assets for the year 2024 increased 50 basis points from prior year, and our cost of interest bearing funds increased 58 basis points during the same time period. Our net interest margin, on a fully tax equivalent basis, for the year 2024 increased 4 basis points from the year ended December 31, 2023.
Our yield on average earning assets for the year 2025 increased 6 basis points from prior year, while our cost of interest bearing funds decreased 35 basis points. Our net interest margin, on a fully tax equivalent basis, for the year 2025 increased 26 basis points from the year ended December 31, 2024.
Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates. Consistency of our net interest revenue is largely dependent upon the effective management of interest rate risk.
CTBI has no brokered deposits. Interest Rate Risk We consider interest rate risk one of our most significant market risks. Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates. Consistency of our net interest revenue is largely dependent upon the effective management of interest rate risk.
The MD&A is provided as a supplement to—and should be read in conjunction with—our consolidated financial statements and the accompanying notes thereto contained in Item 8 of this annual report.
The MD&A is provided as a supplement to—and should be read in conjunction with—our consolidated financial statements and the accompanying notes thereto contained in Item 8 of this annual report. Our Business Community Trust Bancorp, Inc. (“CTBI”) is a bank holding company headquartered in Pikeville, Kentucky. Currently, we own one commercial bank, Community Trust Bank, Inc.
As of December 31, 2024, we are not aware of any current recommendations by banking regulatory authorities which, if they were to be implemented, would have, or are reasonably likely to have, a material adverse impact on our liquidity, capital resources, or operations. 34 Table of Contents Impact of Inflation, Changing Prices, and Economic Conditions The majority of our assets and liabilities are monetary in nature.
CTB’s CBLR ratio as of December 31, 2025 was 13.19%. 33 Table of Contents As of December 31, 2025, we are not aware of any current recommendations by banking regulatory authorities which, if they were to be implemented, would have, or are reasonably likely to have, a material adverse impact on our liquidity, capital resources, or operations.
These may also include adjustments, when deemed necessary, for specific idiosyncratic risks such as geopolitical events, natural disasters and their effects on regional borrowers, and changes in product structures.
These include adjustments for changes in policies or procedures in underwriting, monitoring or collections, lending and risk management personnel, and results of internal audit and quality control reviews. These may also include adjustments, when deemed necessary, for specific idiosyncratic risks such as geopolitical events, natural disasters and their effects on regional borrowers, and changes in product structures.
As of December 31, 2024, the commitments due in one year or less for other commitments was $671.8 million and commitments due in more than one year was $269.4 million. Refer to note 17 to the consolidated financial statements contained herein for additional information regarding other commitments.
As of December 31, 2025, our remaining contractual commitment for operating and finance leases due in one year or less was $2.2 million and operating leases due in more than one year was $22.4 million. Refer to note 7 to the consolidated financial statements contained herein for additional information regarding leases.
This is accomplished by maintaining liquid assets in the form of cash and cash equivalents and investment securities, sufficient unused borrowing capacity, and growth in core deposits.
The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand or deposit withdrawals. This is accomplished by maintaining liquid assets in the form of cash and cash equivalents and investment securities, sufficient unused borrowing capacity, and growth in core deposits.
Therefore, CTBI differs greatly from most commercial and industrial companies that have significant investment in nonmonetary assets, such as fixed assets and inventories.
Impact of Inflation, Changing Prices, and Economic Conditions The majority of our assets and liabilities are monetary in nature. Therefore, CTBI differs greatly from most commercial and industrial companies that have significant investment in nonmonetary assets, such as fixed assets and inventories.
For an analysis of CTBI’s ACL by portfolio segment and credit quality information by class, refer to note 4 to the consolidated financial statements contained herein. CTBI maintains the ACL to absorb the amount of credit losses that are expected to be incurred over the remaining contractual terms of the related loans.
For an analysis of CTBI’s ACL by portfolio segment and credit quality information by class, refer to note 4 to the consolidated financial statements contained herein.
For periods beyond the reasonable and supportable forecast period, expected credit losses are estimated by reverting to historical loss information. CTBI evaluates the length of our reasonable and supportable forecast period, our reversion period, and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances.
CTBI evaluates the length of our reasonable and supportable forecast period, our reversion period, and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances. Other qualitative factors are used by CTBI in determining the ACL.
Total shareholders’ equity at December 31, 2024 was $757.6 million. Trust assets under management at December 31, 2024 were $3.7 billion, including CTB’s investment portfolio totaling $1.1 billion.
At December 31, 2025, we had total consolidated assets of $6.7 billion and total consolidated deposits, including repurchase agreements, of $5.7 billion. Total shareholders’ equity at December 31, 2025 was $856.1 million. Trust assets under management at December 31, 2025 were $4.1 billion, including CTB’s investment portfolio totaling $1.1 billion.
These assumptions are uncertain, and as a result, the actual payments will differ from the projection due to changes in economic conditions.
These assumptions are uncertain, and as a result, the actual payments will differ from the projection due to changes in economic conditions. Refer to note 9 to the consolidated financial statements contained herein for additional information regarding long-term debt.
Other qualitative factors are used by CTBI in determining the ACL. These considerations inherently require significant management judgment to determine the appropriate factors to be considered and the extent of their impact on the ACL estimate.
These considerations inherently require significant management judgment to determine the appropriate factors to be considered and the extent of their impact on the ACL estimate. Qualitative factors are used to capture characteristics in the portfolio that impact expected credit losses but that are not fully captured within CTBI’s expected credit loss models.
Expected credit losses are estimated on a collective basis for loans that are not individually evaluated. These include commercial loans that do not meet the criteria for individual evaluation as well as homogeneous loans in the residential mortgage and consumer portfolio segments. CTBI uses a third party ACL software to calculate reserve estimates.
The fair value shall be adjusted for selling costs when foreclosure is probable. 35 Table of Contents Expected credit losses are estimated on a collective basis for loans that are not individually evaluated. These include commercial loans that do not meet the criteria for individual evaluation as well as homogeneous loans in the residential mortgage and consumer portfolio segments.
Noninterest Expense (dollars in thousands) Year Ended December 31 2024 2023 Percent Change Salaries $ 52,757 $ 51,283 2.9 % Employee benefits 26,670 22,428 18.9 Net occupancy and equipment 12,204 11,843 3.1 Data processing 11,172 9,726 14.9 Legal and professional fees 3,873 3,350 15.6 Advertising and marketing 3,130 3,214 (2.6 ) Taxes other than property and payroll 1,754 1,706 2.8 Other 19,363 21,840 (11.3 ) Total noninterest expense $ 130,923 $ 125,390 4.4 % Noninterest expense for the year 2024 was $130.9 million compared to $125.4 million for the year 2023.
Noninterest Expense (dollars in thousands) Year Ended December 31 2025 2024 Percent Change Salaries $ 54,830 $ 52,757 3.9 % Employee benefits 30,649 26,670 14.9 Net occupancy and equipment 13,246 12,204 8.5 Data processing 12,637 11,172 13.1 Legal and professional fees 4,290 3,873 10.8 Advertising and marketing 3,167 3,130 1.2 Taxes other than property and payroll 2,353 1,754 34.1 Other 21,895 19,363 13.1 Total noninterest expense $ 143,067 $ 130,923 9.3 % Noninterest expense for the year 2025 was primarily impacted by increased expenses year over year in personnel ($6.1 million), data processing ($1.5 million), occupancy and equipment ($1.0 million), taxes other than property and payroll ($0.6 million), legal fees ($0.5 million), and contributions ($0.7 million).
See below for discussion of our allowance for credit losses. 26 Table of Contents Noninterest Income (dollars in thousands) Year Ended December 31 2024 2023 Percent Change Deposit service charges $ 29,824 $ 29,935 (0.4 )% Trust revenue 14,921 13,025 14.6 Gains on sales of loans 294 395 (25.6 ) Loan related fees 4,957 3,792 30.7 Bank owned life insurance revenue 5,236 3,517 48.9 Brokerage revenue 2,272 1,473 54.3 Other 5,061 5,522 (8.3 ) Total noninterest income $ 62,565 $ 57,659 8.5 % Noninterest income for the year 2024 was $62.6 million compared to $57.7 million for the year 2023 .
See below for discussion of our allowance for credit losses. 26 Table of Contents Noninterest Income (dollars in thousands) Year Ended December 31 2025 2024 Percent Change Deposit related fees $ 29,840 $ 29,824 0.1 % Trust and wealth management income 16,772 14,921 12.4 Gains on sales of loans 320 294 8.7 Loan related fees 4,043 4,957 (18.4 ) Bank owned life insurance revenue 4,460 5,236 (14.8 ) Brokerage revenue 2,130 2,272 (6.3 ) Other 6,052 5,061 19.6 Total noninterest income $ 63,617 $ 62,565 1.7 % Noninterest income for the year 2025 was impacted year over year by increases in trust and wealth management income ($1.9 million), insurance commissions ($0.4 million), and net gains on the sale of fixed assets ($0.5 million), partially offset by decreases in loan related fees ($0.9 million), securities gains ($0.3 million), and bank owned life insurance revenue ($0.8 million).
This objective is accomplished through management of our consolidated balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates, and customer preferences. The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand or deposit withdrawals.
Liquidity and Market Risk The objective of CTBI’s Asset/Liability management function is to maintain consistent growth in net interest income within our policy limits. This objective is accomplished through management of our consolidated balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates, and customer preferences.
Discounted cash flow (“DCF”) modeling was used for all loan segments.
CTBI uses a discounted cash flow (“DCF”) model for all loan segments.
Total Change Change Due to (in thousands) 2024/2023 Volume Rate Interest income: Loans $ 43,772 $ 22,314 $ 21,458 Loans held for sale (7 ) (8 ) 1 U.S.
Total Change Change Due to (in thousands) 2025/2024 Volume Rate Interest income: Loans $ 30,008 $ 28,775 $ 1,233 Loans held for sale 1 2 (1 ) U.S.
When evaluating the adequacy of allowances, consideration is also given to regional geographic concentrations and the closely associated effect that changing economic conditions may have on CTBI’s customers. 37 Table of Contents Overall, the collective evaluation process requires significant management judgment when determining the estimation methodology and inputs into the models, as well as in evaluating the reasonableness of the modeled results and the appropriateness of qualitative adjustments.
Overall, the collective evaluation process requires significant management judgment when determining the estimation methodology and inputs into the models, as well as in evaluating the reasonableness of the modeled results and the appropriateness of qualitative adjustments.
Through our subsidiaries, we have eighty-one banking locations in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee, four trust offices across Kentucky, and one trust office in northeastern Tennessee. At December 31, 2024, we had total consolidated assets of $6.2 billion and total consolidated deposits, including repurchase agreements, of $5.3 billion.
(“CTB”) and one trust company, Community Trust and Investment Company. Through our subsidiaries, we have eighty-one banking locations in eastern, northern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee, four trust offices across Kentucky, and one trust office in northeastern Tennessee.
Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. As of December 31, 2024, the value of our non-cancellable unconditional purchase obligations was $9.3 million. These contractual obligations impact our liquidity and capital resource needs.
Refer to note 14 to the consolidated financial statements contained herein for additional information regarding other commitments. Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business. As of December 31, 2025, the value of our non-cancellable unconditional purchase obligations was $15.3 million.
Total revenue for 2024 was $17.8 million above prior year, as net interest revenue increased $12.9 million and noninterest income increased $4.9 million compared to prior year. Our provision for credit losses for 2024 increased $4.1 million over prior year, and our noninterest expense increased $5.5 million over prior year.
Total revenue for 2025 was $34.0 million above prior year, as net interest revenue increased $33.0 million and noninterest income increased $1.1 million compared to prior year.
Balance Sheet Review CTBI’s total assets at $6.2 billion increased $423.5 million, or 7.3%, from December 31, 2023. Loans outstanding at December 31, 2024 were $4.5 billion, increasing $435.7 million, or 10.8%, year over year.
Please refer to our annual report on Form 10-K for the year ended December 31, 2024 for detailed income discussion related to the year 2023. Balance Sheet Review CTBI’s total assets at $6.7 billion increased $490.9 million, or 7.9%, from December 31, 2024. Loans outstanding at December 31, 2025 were $4.9 billion, increasing $408.3 million, or 9.1%, year over year.
Included in our cash and cash equivalents at December 31, 2024 were deposits with the Federal Reserve of $289.4 million, compared to $207.6 million at December 31, 2023. Additionally, we project cash flows from our investment portfolio to generate additional liquidity over the next 90 days. The investment portfolio consists of investment grade short-term issues suitable for bank investments.
Additionally, we project cash flows from our investment portfolio to generate additional liquidity over the next 90 days. 29 Table of Contents The investment portfolio consists of investment grade short-term issues suitable for bank investments. The majority of the investment portfolio is in U.S. government and government sponsored agency issuances.
Income Statement Review (dollars in thousands) Change 2024 vs. 2023 Year Ended December 31 2024 2023 Amount Percent Net interest income $ 185,995 $ 173,110 $ 12,885 7.4 % Provision for credit losses 10,951 6,811 4,140 60.8 Noninterest income 62,565 57,659 4,906 8.5 Noninterest expense 130,923 125,390 5,533 4.4 Income taxes 23,873 20,564 3,309 16.1 Net income $ 82,813 $ 78,004 $ 4,809 6.2 % Average earning assets $ 5,569,948 $ 5,244,128 $ 325,820 6.2 % Yield on average earnings assets, tax equivalent* 5.65 % 5.15 % 0.50 % 9.8 % Cost of interest bearing funds 3.30 % 2.72 % 0.58 % 21.2 % Net interest margin, tax equivalent* 3.36 % 3.32 % 0.04 % 1.1 % *Yield on average earning assets and net interest margin are computed on a taxable equivalent basis using a 24.95% tax rate. 24 Table of Contents Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates 2024 2023 (in thousands) Average Balances Interest Average Rate Average Balances Interest Average Rate Earning assets: Loans (1)(2)(3) $ 4,247,762 $ 274,886 6.47 % $ 3,888,585 $ 231,114 5.94 % Loans held for sale 165 24 14.55 228 31 13.60 Securities: U.S.
Income Statement Review (dollars in thousands) Change 2025 vs. 2024 Year Ended December 31 2025 2024 Amount Percent Net interest income $ 218,978 $ 185,995 $ 32,983 17.7 % Provision for credit losses 12,436 10,951 1,485 13.6 Noninterest income 63,617 62,565 1,052 1.7 Noninterest expense 143,067 130,923 12,144 9.3 Income taxes 29,034 23,873 5,161 21.6 Net income $ 98,058 $ 82,813 $ 15,245 18.4 % 24 Table of Contents Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates 2025 2024 (in thousands) Average Balances Interest Average Rate Average Balances Interest Average Rate Earning assets: Loans (1)(2)(3) $ 4,690,521 $ 304,894 6.50 % $ 4,247,762 $ 274,886 6.47 % Loans held for sale 182 25 13.74 165 24 14.55 Securities: U.S.
Accruing loans 90+ days past due increased $0.4 million from December 31, 2023, while nonaccrual loans increased $12.3 million from December 31, 2023. Accruing loans 30-89 days past due at $16.8 million increased $1.5 million from December 31, 2023.
Accruing loans 90+ days past due at $10.6 million increased $0.3 million from prior year end. Nonaccrual loans at $8.5 million decreased $7.8 million from prior year end. Accruing loans 30-89 days past due at $20.2 million increased $3.3 million from prior year end.
CTBI’s investment portfolio decreased $107.4 million, or 9.2%, from December 31, 2023. Deposits in other banks increased $83.9 million from December 31, 2023. Deposits, including repurchase agreements, at $5.3 billion increased $360.5 million, or 7.3%, from December 31, 2023.
CTBI’s investment portfolio increased $65.4 million, or 6.2%, from December 31, 2024. Deposits in other banks increased $4.3 million from December 31, 2024. Deposits, including repurchase agreements, at $5.7 billion increased $387.5 million, or 7.3%, from December 31, 2024. CTBI is not dependent on any one customer or group of customers for their source of deposits.
The amount of income tax credits and other tax benefits recognized was $4.3 million for the year ended December 31, 2024. 23 Table of Contents 2024 Highlights ❖ Net interest income for the year ended December 31, 2024 increased $12.9 million, or 7.4%, from December 31, 2023 with a $325.8 million increase in average earning assets. ❖ Provision for credit losses was $11.0 million for the year ended December 31, 2024 compared to $6.8 million for the year ended December 31, 2023. ❖ Our loan portfolio increased $435.7 million, or 10.8%, from December 31, 2023 to December 31, 2024. ❖ Net loan charge-offs were $5.5 million, or 0.13% of average loans, for the year ended December 31, 2024 compared to $3.2 million, or 0.08% of average loans, for the year ended December 31, 2023. ❖ Our total nonperforming loans at $26.7 million at December 31, 2024 increased $12.7 million, or 91.1%, from December 31, 2023.
Our provision for credit losses for 2025 increased $1.5 million over prior year, and our noninterest expense increased $12.1 million over prior year. 23 Table of Contents 2025 Highlights ❖ Net interest income for the year of $219.0 million was $33.0 million, or 17.7%, above prior year, as our net interest margin increased 26 basis points from prior year. ❖ Provision for credit losses at $12.4 million for the year increased $1.5 million from prior year. ❖ Noninterest income for the year of $63.6 million was $1.1 million, or 1.7%, above prior year. ❖ Noninterest expense for the year of $143.1 million was $12.1 million, or 9.3%, above prior year. ❖ Our loan portfolio at $4.9 billion increased $408.3 million, or 9.1%, from prior year end. ❖ We had net loan charge-offs of $7.4 million, or 0.16% of average loans, for the year 2025 compared to $5.5 million, or 0.13% of average loans, for the year 2024. ❖ Our total nonperforming loans at $19.2 million decreased $7.5 million, or 28.2%, from prior year end.
The majority of the investment portfolio is in U.S. government and government sponsored agency issuances. At December 31, 2024, available-for-sale (“AFS”) securities comprised all of the total investment portfolio, and the AFS portfolio was approximately 139% of equity capital. Eighty-five percent of the pledge-eligible portfolio was pledged.
At December 31, 2025, available-for-sale (“AFS”) securities comprised 99.6% of the total investment portfolio, and the AFS portfolio was 131% of equity capital. Eighty-five percent of the pledge-eligible portfolio was pledged. Contractual Commitments Our significant contractual obligations and commitments as of December 31, 2025 include debt, lease, and purchase obligations.
Contractual Commitments Our significant contractual obligations and commitments as of December 31, 2024 include debt, lease, and purchase obligations. As disclosed in the notes to the consolidated financial statements, we have certain obligations and commitments to make future payments under contracts.
As disclosed in the notes to the consolidated financial statements, we have certain obligations and commitments to make future payments under contracts. As of December 31, 2025, our outstanding balance on long-term debt was $63.8 million, which includes junior subordinated debentures of $57.8 million and loan related borrowings of $6.0 million.
This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of CTBI’s ACL, as previously discussed. Net adjustments to the reserve for unfunded commitments are included in other noninterest expense in the consolidated statements of income. Goodwill – Business combinations entered into by CTBI typically include the recognition of goodwill.
This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of CTBI’s ACL, as previously discussed.
Refer to note 15 to the consolidated financial statements contained herein for additional information regarding leases. Commitments to extend credit and standby letters of credit do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon.
Commitments to extend credit and standby letters of credit do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon. As of December 31, 2025, the commitments due in one year or less for other commitments was $742.3 million and commitments due in more than one year was $256.6 million.
Treasury and agencies (843 ) (1,563 ) 720 Tax exempt state and political subdivisions (167 ) (82 ) (85 ) Other securities (1,467 ) (672 ) (795 ) Federal Reserve Bank and Federal Home Loan Bank stock 24 (50 ) 74 Federal funds sold (8 ) (6 ) (2 ) Interest bearing deposits 3,428 3,333 95 Other investments 6 0 6 Investment in unconsolidated subsidiaries 3 0 3 Total interest income 44,741 23,266 21,475 Interest expense: Savings and demand deposits 10,476 4,430 6,046 Time deposits 20,873 5,740 15,133 Repurchase agreements and federal funds purchased 1,399 415 984 Advances from Federal Home Loan Bank (988 ) (1,295 ) 307 Long-term debt 108 (15 ) 123 Finance lease liability 40 (1 ) 41 Total interest expense 31,908 9,274 22,634 Net interest income $ 12,833 $ 13,992 $ (1,159 ) For purposes of the above table, changes which are due to both rate and volume are allocated based on a percentage basis, using the absolute values of rate and volume variance as a basis for percentages.
Treasury and agencies 704 (922 ) 1,626 Tax exempt state and political subdivisions (136 ) (128 ) (8 ) Other securities (1,991 ) (784 ) (1,207 ) Federal Reserve Bank and Federal Home Loan Bank stock (34 ) 8 (42 ) Federal funds sold 7 7 0 Interest bearing deposits 3,776 5,855 (2,079 ) Other investments 0 0 0 Investment in unconsolidated subsidiaries (18 ) 0 (18 ) Total interest income 32,317 32,813 (496 ) Interest expense: Savings and demand deposits (6,186 ) 4,836 (11,022 ) Time deposits 6,417 8,317 (1,900 ) Repurchase agreements and federal funds purchased (381 ) 1,091 (1,472 ) Advances from Federal Home Loan Bank (4 ) (1 ) (3 ) Long-term debt (582 ) (16 ) (566 ) Finance lease liability 29 18 11 Total interest expense (707 ) 14,245 (14,952 ) Net interest income $ 33,024 $ 18,568 $ 14,456 For purposes of the above table, changes which are due to both rate and volume are allocated based on a percentage basis, using the absolute values of rate and volume variance as a basis for percentages.
For further information regarding nonperforming loans, see note 4 to the consolidated financial statements contained herein.
For further information regarding nonperforming loans, see note 4 to the consolidated financial statements contained herein. Net loan charge-offs were $7.4 million, 0.16% of average loans, for the year ended December 31, 2025, compared to $5.5 million, 0.13% of average loans, for the year ended December 31, 2024.
Net loan charge-offs were $5.5 million, 0.13% of average loans, for the year ended December 31, 2024, compared to $3.2 million, 0.08% of average loans, for the year ended December 31, 2023. 29 Table of Contents Allowance for Credit Losses Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2024 was 206.0% compared to 354.7% at December 31, 2023.
Allowance for Credit Losses Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2025 was 314.0% compared to 206.0% at December 31, 2024. Nonaccrual loans to totals loans were 0.2% at December 31, 2025 compared to 0.4% at December 31, 2024.
As of December 31, 2024, our outstanding balance on long-term debt was $64.0 million, which includes junior subordinated debentures of $57.8 million and loan related borrowings of $6.2 million. The interest payments on long-term debt due in one year or less is $3.7 million, and interest payments on long-term debt due in more than one year is $33.2 million.
The interest payments on long-term debt due in one year or less is $3.2 million, and interest payments on long-term debt due in more than one year is $29.9 million.
Shareholders’ equity at December 31, 2024 of $757.6 million was a $55.4 million, or 7.9%, increase from the $702.2 million at December 31, 2023. Net unrealized losses on securities, net of tax, were $98.4 million at December 31, 2024, compared to $103.3 million at December 31, 2023.
Net unrealized losses on securities, net of tax, were $64.8 million at December 31, 2025, compared to $98.4 million at December 31, 2024. Management has the ability and intent to hold these securities to recovery or maturity. CTBI’s annualized dividend yield to shareholders as of December 31, 2025 was 3.75%.
Nonaccrual loans to total loans at December 31, 2024 was 0.36% compared to 0.10% at December 31, 2023. Our allowance for credit losses to nonaccrual loans at December 31, 2024 was 335.8% compared to 1,223.9% at December 31, 2023.
The allowance for credit losses to nonaccrual loans at December 31, 2025 was 704.6% compared to 335.8% at December 31, 2024. Our credit loss reserve as a percentage of total loans outstanding at December 31, 2025 remained at 1.23% from December 31, 2024. See note 4 to our consolidated financial statements for additional information regarding our allowance for credit losses.
Removed
The MD&A includes the following sections: ❖ Our Business ❖ Financial Goals and Performance ❖ Results of Operations and Financial Condition ❖ Liquidity and Market Risk ❖ Interest Rate Risk ❖ Capital Resources ❖ Impact of Inflation, Changing Prices, and Economic Conditions ❖ Stock Repurchase Program ❖ Critical Accounting Policies and Estimates Our Business Community Trust Bancorp, Inc.
Added
Nonperforming assets at $22.2 million decreased $8.1 million from prior year end. ❖ Deposits, including repurchase agreements, at $5.7 billion increased $387.5 million, or 7.3%, from prior year end. ❖ Shareholders’ equity at $856.1 million increased $98.5 million, or 13.0%, from prior year end.
Removed
(“CTBI”) is a bank holding company headquartered in Pikeville, Kentucky. Currently, we own one commercial bank, Community Trust Bank, Inc. (“CTB”) and one trust company, Community Trust and Investment Company.
Added
Of the provision for the year, $12.5 million was allotted to fund changes in loan volume and composition, $0.1 million was allotted based on quantitative and qualitative factors, and $0.2 million was credited against the provision for unfunded commitments.
Removed
Noninterest expense and tax expense were impacted by an accounting method change (Accounting Standards Update (“ASU”) No. 2023-02), which is intended to improve the accounting and disclosures for investments in tax credit structures. Historically, the amortization expense related to our tax credits had been booked to noninterest expense.
Added
The decrease in loan related fees resulted primarily from the fluctuation in the fair market value of our mortgage servicing rights. The variance in securities gains primarily resulted from changes in the valuation of our equity securities. In an attempt to modernize our delivery channel in the Mt.
Removed
Beginning in January 2024, the amortization expense is now booked to tax expense. We had a decrease in amortization expense, recognized in other direct expenses, that totaled $2.6 million for the year ended December 31, 2023. The amortization expense included in income tax expense was $3.0 million for the year ended December 31, 2024.
Added
Sterling Market, we consolidated two of our branches into a newly constructed modern branch which opened in February 2026. During the fourth quarter of 2025, we recognized the sale of one of the branch locations, along with a parking lot, resulting in a $0.5 million gain on the sale of fixed assets.
Removed
Nonperforming assets at $30.3 million increased $14.7 million, or 94.7%, from December 31, 2023. ❖ Deposits, including repurchase agreements, at December 31, 2024 increased $360.5 million, or 7.3%, from December 31, 2023. ❖ Noninterest income for the year ended December 31, 2024 of $62.6 million increased $4.9 million, or 8.5%, compared to the year ended December 31, 2023. ❖ Noninterest expense for the year ended December 31, 2024 of $130.9 million increased $5.5 million, or 4.4%, compared to the year ended December 31, 2023.
Added
We also donated one of the branch locations, which resulted in a $0.4 million contribution expense.
Removed
Noninterest income was impacted year over year by a $1.2 million increase in loan related fees, a $1.9 million increase in trust revenue, and a $1.7 million increase in bank owned life insurance revenue.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk CTBI currently does not engage in any hedging activity or any derivative activity which management considers material. Analysis of CTBI’s interest rate sensitivity can be found in the Interest Rate Risk section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 38 Table of Contents
Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk CTBI currently does not engage in any hedging activity or any derivative activity which management considers material. Analysis of CTBI’s interest rate sensitivity can be found in the Interest Rate Risk section of Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. 36 Table of Contents

Other CTBI 10-K year-over-year comparisons