Exhibit 99.1
 
 
 
FOR IMMEDIATE RELEASE
July 15, 2026
 
FOR ADDITIONAL INFORMATION, PLEASE CONTACT MARK A. GOOCH, CHAIRMAN, PRESIDENT, AND CEO, COMMUNITY TRUST BANCORP, INC. AT (606) 437-3229
 
Pikeville, Kentucky:
 
Community Trust Bancorp, Inc. reports RECORD earnings for the 2nd quarter 2026
 
Earnings Summary
 
(in thousands except per share data)
2Q   
2026  
1Q   
2026  
2Q   
2025  
YTD  
2026  
YTD  
2025  
Net income
$29,623
$27,192
$24,899
$56,815
$46,871
Earnings per share
$1.64
$1.51
$1.38
$3.15
$2.60
Earnings per share - diluted
$1.64
$1.50
$1.38
$3.14
$2.60
 
 
 
 
 
 
Return on average assets
1.74%
1.65%
1.58%
1.70%
1.51%
Return on average equity
13.40%
12.62%
12.51%
13.01%
12.01%
Efficiency ratio
47.99%
48.72%
50.70%
48.35%
51.26%
Tangible common equity
11.93%
12.07%
11.72%
 
 
 
 
 
 
 
 
Dividends declared per share
$0.53
$0.53
$0.47
$1.06
$0.94
Book value per share
$49.10
$47.99
$44.57
 
 
 
 
 
 
 
 
Weighted average shares
18,064
18,049
18,012
18,056
18,004
Weighted average shares - diluted
18,099
18,080
18,036
18,090
18,029
 
Community Trust Bancorp, Inc. (NASDAQ-CTBI) achieved record earnings for the second quarter 2026 of $29.6 million, or $1.64 per basic earnings per share, compared to $27.2 million, or $1.51 per basic share, earned during the first quarter 2026 and $24.9 million, or $1.38 per basic share, earned during the second quarter 2025.  Total revenue for the quarter was $4.3 million above prior quarter and $8.3 million above prior year same quarter.  Net interest income for the quarter increased $2.1 million compared to prior quarter and $6.8 million compared to prior year same quarter, and noninterest income increased $2.2 million compared to prior quarter and $1.4 million compared to prior year same quarter.  Our provision for credit losses for the quarter increased $0.5 million from prior quarter and $0.7 million from prior year same quarter.  Noninterest expense increased $0.8 million compared to prior quarter and $1.7 million compared to prior year same quarter.  Earnings for the six months ended June 30, 2026 were $56.8 million, or $3.15 per basic share, compared to $46.9 million, or $2.60 per basic share, for the same period prior year.
 
1

 
2nd Quarter 2026 Highlights
 
 
 
2

 
Net Interest Income
 
                 
       
Percent Change
   
 
       
2Q 2026
Compared to:
     
($ in thousands)
2Q     
2026    
1Q     
2026    
2Q     
2025    
1Q  
2026 
2Q   
2025  
YTD   
2026   
YTD   
2025   
Percent
Change
Components of net interest income:
               
Income on earning assets
$91,238
$87,755
$85,571
4.0%
6.6%
$178,993
$167,625
6.8%
Expense on interest bearing liabilities
30,349
28,973
31,531
4.7%
(3.8)%
59,322
62,318
(4.8)%
Net interest income
60,889
58,782
54,040
3.6%
12.7%
119,671
105,307
13.6%
TEQ
304
317
283
(4.0)%
7.0%
621
556
11.7%
Net interest income, tax equivalent (non-GAAP)
$61,193
$59,099
$54,323
3.5%
12.6%
$120,292
$105,863
13.6%
 
 
 
 
 
 
 
 
 
Average yield and rates paid:
 
 
 
 
 
 
 
 
Earning assets yield
5.68%
5.65%
5.76%
0.5%
(1.3)%
5.66%
5.73%
(1.2)%
Rate paid on interest bearing liabilities
2.64%
2.61%
3.00%
1.0%
(11.9)%
2.63%
3.01%
(12.8)%
Gross interest margin
3.04%
3.04%
2.76%
(0.2)%
10.2%
3.03%
2.72%
11.0%
Net interest margin
3.80%
3.79%
3.64%
0.2%
4.3%
3.79%
3.61%
5.1%
 
 
 
 
 
 
 
 
 
Average balances:
 
 
 
 
 
 
 
 
Investment securities
$1,081,411
$1,113,988
$1,002,412
(2.9)%
7.9%
$1,097,610
$1,024,062
7.2%
Loans
$5,051,165
$4,934,257
$4,668,001
2.4%
8.2%
$4,993,034
$4,600,919
8.5%
Earning assets
$6,464,479
$6,327,329
$5,983,093
2.2%
8.0%
$6,396,283
$5,915,965
8.1%
Interest-bearing liabilities
$4,610,459
$4,494,829
$4,215,573
2.6%
9.4%
$4,552,963
$4,177,225
9.0%
 
Net interest income for the quarter of $60.9 million was $2.1 million, or 3.6%, above prior quarter and $6.8 million, or 12.7%, above prior year same quarter, as our net interest margin, on a fully tax equivalent basis, increased 1 basis point from prior quarter and 16 basis points from prior year same quarter.  Our quarterly average earning assets increased $137.2 million, an annualized 2.2%, from prior quarter and $481.4 million, or 8.0%, from prior year same quarter.  Our yield on average earning assets increased 3 basis points from prior quarter but decreased 8 basis points from prior year same quarter, while our cost of funds increased 3 basis points from prior quarter but decreased 36 basis points from prior year same quarter.  Our ratio of average loans to deposits, including repurchase agreements, for the quarter remained at 87.2% from prior quarter compared to 86.6% for same quarter prior year.  Net interest income for the six months ended June 30, 2026 at $119.7 million was $14.4 million, or 13.6%, above same period prior year.
 
3

 
Provision for Credit Losses
 
Our provision for credit losses at $2.8 million for the quarter increased $0.5 million from prior quarter and $0.7 million from prior year same quarter.  Of the provision for the quarter, $2.6 million was attributable to the allowance for credit losses, with an additional expense of $174 thousand recognized in the provision for unfunded commitments.  Provision for credit losses for the six months ended June 30, 2026 at $5.1 million was $0.6 million below same period prior year.
 
Noninterest Income
 
                 
       
Percent Change
   
 
       
2Q 2026
Compared to:
     
($ in thousands)
2Q  
2026 
1Q  
2026 
2Q  
2025 
1Q   
2026  
2Q   
2025  
YTD  
2026  
YTD  
2025  
Percent
Change
Deposit related fees
$7,657
$7,155
$7,350
7.0%
4.2%
$14,812
$14,172
4.5%
Trust and wealth management income
4,724
4,462
4,092
5.9%
15.4%
9,186
8,073
13.8%
Gains on sales of loans
61
51
77
18.7%
(21.0)%
112
124
(9.8)%
Loan related fees
1,146
1,039
1,249
10.2%
(8.3)%
2,185
2,214
(1.3)%
Bank owned life insurance revenue
1,188
1,714
1,102
(30.7)%
7.9%
2,902
2,137
35.8%
Brokerage revenue
528
520
526
1.5%
0.3%
1,048
1,020
2.8%
Other
2,295
473
1,775
385.6%
29.3%
2,768
3,328
(16.8)%
Total noninterest income
$17,599
$15,414
$16,171
14.2%
8.8%
$33,013
$31,068
6.3%
 
Noninterest income for the quarter of $17.6 million was $2.2 million, or 14.2%, above prior quarter and $1.4 million, or 8.8%, above prior year same quarter.  The variance quarter over quarter was primarily the result of increases in net securities gains ($1.4 million), deposit related fees ($0.5 million), and trust and wealth management income ($0.3 million).  Year over year increases for the quarter included net securities gains ($0.8 million), deposit related fees ($0.3 million), and trust and wealth management income ($0.6 million).  The variances in securities gains resulted primarily from changes in the valuation of our equity securities, as we converted a portion of Visa Class B stock to Class C.  Noninterest income for the six months ended June 30, 2026 of $33.0 million was $1.9 million, or 6.3%, above prior year same period.
 
4

 
Noninterest Expense
 
                 
       
Percent Change
   
 
       
2Q 2026
Compared to:
     
($ in thousands)
2Q   
2026  
1Q   
2026  
2Q   
2025  
1Q   
2026  
2Q   
2025  
YTD  
2026  
YTD  
2025  
Percent
Change
Salaries
$13,923
$13,629
$13,667
2.2%
1.9%
$27,552
$26,936
2.3%
Employee benefits
9,297
8,476
7,987
9.7%
16.4%
17,773
14,836
19.8%
Net occupancy and equipment
3,367
3,699
3,172
(9.0)%
6.1%
7,066
6,612
6.9%
Data processing
2,851
2,955
3,326
(3.5)%
(14.3)%
5,806
6,185
(6.1)%
Legal and professional fees
1,084
1,164
1,001
(6.9)%
8.3%
2,248
2,226
1.0%
Advertising and marketing
841
700
765
20.1%
9.9%
1,541
1,438
7.1%
Taxes other than property and payroll
619
617
573
0.3%
7.9%
1,236
1,102
12.2%
Other
5,388
5,297
5,172
1.7%
4.2%
10,685
10,536
1.4%
Total noninterest expense
$37,370
$36,537
$35,663
2.3%
4.8%
$73,907
$69,871
5.8%
 
Noninterest expense for the quarter of $37.4 million was $0.8 million, or 2.3%, above prior quarter and $1.7 million, or 4.8%, above prior year same quarter. The quarter over quarter increase primarily resulted from an increase in salaries ($0.3 million) and employee benefits ($0.8 million), partially offset by a decrease in net occupancy and equipment expense ($0.3 million).  The increase in employee benefits included increases in bonuses and incentives ($0.2 million) and the cost of group medical and life insurance expense ($0.8 million).  The year over year increase for the quarter primarily resulted from increases in salaries ($0.3 million) and employee benefits ($1.3 million), including an increase in the cost of group medical and life insurance expense ($2.0 million) partially offset by a decrease in bonuses and incentives ($0.5 million).  Noninterest expense for the six months ended June 30, 2026 of $73.9 million was $4.0 million, or 5.8%, above prior year same period.
5

 
Balance Sheet Review
 
Total Loans
 
           
       
Percent Change
       
2Q 2026 Compared to:
($ in thousands)
2Q      
2026     
1Q     
2026    
2Q     
2025    
1Q 
2026
2Q  
2025 
Commercial nonresidential real estate
$1,005,462
$994,914
$913,463
1.1%
10.1%
Commercial residential real estate
599,454
596,948
559,906
0.4%
7.1%
Hotel/motel
528,697
507,243
477,175
4.2%
10.8%
Other commercial
463,901
440,980
432,021
5.2%
7.4%
Total commercial
2,597,514
2,540,085
2,382,565
2.3%
9.0%
 
 
   
 
 
Residential mortgage
1,289,157
1,245,759
1,112,672
3.5%
15.9%
Home equity loans/lines
195,270
191,178
177,135
2.1%
10.2%
Total residential
1,484,427
1,436,937
1,289,807
3.3%
15.1%
 
 
   
 
 
Consumer indirect
903,125
873,980
878,506
3.3%
2.8%
Consumer direct
139,865
139,819
150,915
0.0%
(7.3)%
Total consumer
1,042,990
1,013,799
1,029,421
2.9%
1.3%
 
 
   
 
 
Total loans
$5,124,931
$4,990,821
$4,701,793
2.7%
9.0%
 
Total Deposits and Repurchase Agreements
 
                 
       
Percent Change
       
2Q 2026 Compared to:
($ in thousands)
2Q 
2026
1Q      
2026    
2Q      
2025     
1Q      
2026    
2Q    
2025   
Noninterest bearing deposits
$1,259,364
$1,262,835
$1,258,205
(0.3)%
0.1%
Interest bearing deposits
 
   
 
 
Interest checking
188,978
190,769
173,795
(0.9)%
8.7%
Money market savings
1,963,115
1,917,509
1,820,230
2.4%
7.8%
Savings accounts
497,390
508,553
508,467
(2.2)%
(2.2)%
Time deposits
1,748,916
1,554,554
1,472,311
12.5%
18.8%
Repurchase agreements
297,094
298,721
225,075
(0.5)%
32.0%
Total interest bearing deposits and repurchase agreements
4,695,493
4,470,106
4,199,878
5.0%
11.8%
Total deposits and repurchase agreements
$5,954,857
$5,732,941
$5,458,083
3.9%
9.1%
 
6

 
CTBI’s total assets at $7.0 billion increased $248.2 million, or 14.8% annualized, for the quarter and $598.4 million, or 9.4%, from June 30, 2025.  Loans outstanding at $5.1 billion increased $134.1 million, an annualized 10.8%, for the quarter and $423.1 million, or 9.0%, from June 30, 2025.  The increase in loans for the quarter included a $57.4 million increase in the commercial loan portfolio, a $47.5 million increase in the residential loan portfolio, a $29.1 million increase in the consumer indirect loan portfolio, and a $0.1 million increase in the consumer direct loan portfolio.  CTBI’s investment portfolio at $1.1 billion decreased $35.6 million, an annualized 13.1%, for the quarter as management allocated investment maturities into the loan portfolio but increased $56.9 million, or 5.7%, from June 30, 2025.  Deposits in other banks increased $183.4 million for the quarter and $131.8 million from June 30, 2025.
 
Deposits, including repurchase agreements, at $6.0 billion increased $221.9 million, an annualized 15.5%, for the quarter and $496.8 million, or 9.1%, from June 30, 2025.  CTBI is not dependent on any one customer or group of customers for their source of deposits.  As of June 30, 2026, two customers accounted for over 3% each (3.5% and 3.1%) of our $5.7 billion in deposits.  Only these two customer relationships accounted for more than 1% each of our deposits.
 
Shareholders’ equity at $891.8 million increased $20.6 million, an annualized 9.5%, for the quarter and $85.0 million, or 10.5%, from June 30, 2025.  Net unrealized losses on securities, net of deferred taxes, were $68.4 million at June 30, 2026, compared to $68.0 million at March 31, 2026 and $80.6 million at June 30, 2025.  CTBI’s annualized dividend yield to shareholders as of June 30, 2026 was 2.93%.
 
Asset Quality
 
Our total nonperforming loans at $29.7 million at June 30, 2026 increased $9.0 million for the quarter and $5.4 million from June 30, 2025.  Nonaccrual loans at $10.8 million decreased $0.3 million from prior quarter and $5.1 million from June 30, 2025.  Accruing loans 90+ days past due at $19.0 million increased $9.4 million from prior quarter and $10.5 million from June 30, 2025, as a well secured $8.7 million commercial relationship in the process of collection moved from the 30-89 days past due category during the quarter.  Accruing loans 30-89 days past due at $20.3 million decreased $4.5 million from prior quarter but increased $0.2 million from June 30, 2025.  Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.
 
We had net loan charge-offs of $0.9 million, an annualized 0.07% of average loans, for the quarter compared to $1.3 million, an annualized 0.11% of average loans, for prior quarter and $1.4 million, an annualized 0.12% of average loans, for the second quarter 2025.  Of the net charge-offs for the quarter, $0.2 million were in commercial loans, $0.5 million were in consumer indirect loans, and $0.2 million were in consumer direct loans.  Net loan charge-offs for the six months ended June 30, 2026 were $2.2 million, or an annualized 0.09% of average loans, compared to $2.9 million, or an annualized 0.13% of average loans, for the same period prior year.
 
Allowance for Credit Losses
 
Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2026 was 211.8% compared to 295.8% at March 31, 2026 and 237.1% at June 30, 2025.  Our allowance for credit losses as a percentage of total loans outstanding at June 30, 2026 remained at 1.23% from March 31, 2026 and June 30, 2026.  The table below shows the changes in components of the allowance for credit losses during the second quarter 2026:
 
Beginning balance
$61,321
New loan volume
5,097
Changes in existing loan balances
(546)
Loans exiting
(2,904)
Historical loss rate
245
Qualitative factors
(246)
Other changes
34
Ending balance
$63,001
 
7

 
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. CTBI’s actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.”  These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, 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; the resolution of legal proceedings and related matters.  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.  These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made.
 
Community Trust Bancorp, Inc., with assets of $7.0 billion, is headquartered in Pikeville, Kentucky and has 69 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, three banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.
 
Additional information follows.
 
8

 
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
June 30, 2026
(in thousands except per share data and # of employees)
                            
      Three    Three    Three    Six    Six 
      Months    Months    Months    Months    Months 
      Ended    Ended    Ended    Ended    Ended 
      June 30, 2026    March 31, 2026    June 30, 2025    June 30, 2026    June 30, 2025 
Interest income $91,238  $87,755  $85,571  $178,993  $167,625 
Interest expense   30,349    28,973    31,531    59,322    62,318 
Net interest income   60,889    58,782    54,040    119,671    105,307 
Provision for credit losses   2,771    2,311    2,094    5,082    5,662 
                            
Gains on sales of loans   61    51    77    112    124 
Deposit related fees   7,657    7,155    7,350    14,812    14,172 
Trust and wealth management income   4,724    4,462    4,092    9,186    8,073 
Loan related fees   1,146    1,039    1,249    2,185    2,214 
Securities gains (losses)   924    (488   150    436    630 
Other noninterest income   3,087    3,195    3,253    6,282    5,855 
Total noninterest income   17,599    15,414    16,171    33,013    31,068 
                            
Personnel expense   23,220    22,105    21,654    45,325    41,772 
Occupancy and equipment   3,367    3,699    3,172    7,066    6,612 
Data processing expense   2,851    2,955    3,326    5,806    6,185 
FDIC insurance premiums   751    744    688    1,495    1,377 
Other noninterest expense   7,181    7,034    6,823    14,215    13,925 
Total noninterest expense   37,370    36,537    35,663    73,907    69,871 
                            
Net income before taxes   38,347    35,348    32,454    73,695    60,842 
Income taxes   8,724    8,156    7,555    16,880    13,971 
Net income  $29,623   $27,192   $24,899   $56,815   $46,871 
                            
Memo: TEQ interest income  $91,542   $88,072   $85,854   $179,614   $168,181 
                            
Average shares outstanding   18,064    18,049    18,012    18,056    18,004 
Diluted average shares outstanding   18,099    18,080    18,036    18,090    18,029 
Basic earnings per share  $1.64   $1.51   $1.38   $3.15   $2.60 
Diluted earnings per share  $1.64   $1.50   $1.38   $3.14   $2.60 
Dividends per share  $0.53   $0.53   $0.47   $1.06   $0.94 
                            
Average balances:                         
Loans    $5,051,165   $4,934,257   $4,668,001   $4,993,034   $4,600,919 
Earning assets   6,464,479    6,327,329    5,983,093    6,396,283    5,915,965 
Total assets   6,817,407    6,669,401    6,313,922    6,743,813    6,245,536 
Deposits, including repurchase agreements   5,793,767    5,661,967    5,387,923    5,728,231    5,332,715 
Interest bearing liabilities   4,610,459    4,494,829    4,215,573    4,552,963    4,177,225 
Shareholders' equity   886,914    873,726    798,536    880,356    786,787 
                            
Performance ratios:                         
Return on average assets   1.74%   1.65%   1.58%   1.70%   1.51%
Return on average equity   13.40%   12.62%   12.51%   13.01%   12.01%
Yield on average earning assets (tax equivalent)   5.68%   5.65%   5.76%   5.66%   5.73%
Cost of interest bearing funds (tax equivalent)   2.64%   2.61%   3.00%   2.63%   3.01%
Net interest margin (tax equivalent)   3.80%   3.79%   3.64%   3.79%   3.61%
Efficiency ratio (tax equivalent)   47.99%   48.72%   50.70%   48.35%   51.26%
                            
Loan charge-offs  $2,112   $2,686   $2,528   $4,798   $5,250 
Recoveries   (1,195   (1,368   (1,175   (2,563   (2,322
Net charge-offs  $917   $1,318   $1,353   $2,235   $2,928 
                            
Market Price:                         
High    $73.22   $65.79   $53.82   $73.22   $56.96 
Low    $60.40   $56.05   $44.60   $56.05   $44.60 
Close    $72.36   $60.72   $52.92   $72.36   $52.92 
                            

 

9

 
Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
June 30, 2026
(in thousands except per share data and # of employees)
                            
                As of    As of    As of 
                June 30, 2026    March 31, 2026    June 30, 2025 
Assets:                           
Loans              $5,124,931   $4,990,821   $4,701,793 
Allowance for credit losses             (63,001   (61,321   (57,825
Net loans               5,061,930    4,929,500    4,643,968 
Loans held for sale             -     73    345 
Securities AFS             1,051,681    1,088,205    994,990 
Equity securities at fair value             4,578    3,666    4,410 
Other equity investments             10,412    10,087    14,440 
Other earning assets             452,627    269,178    320,830 
Cash and due from banks             63,815    91,572    76,556 
Premises and equipment             53,065    53,114    52,118 
Right of use asset             14,957    14,999    15,210 
Goodwill and core deposit intangible             65,490    65,490    65,490 
Other assets             210,816    215,284    202,581 
Total Assets            $6,989,371   $6,741,168   $6,390,938 
                            
Liabilities and Equity:                         
Interest bearing checking            $188,978   $190,769   $173,795 
Savings deposits             2,460,505    2,426,062    2,328,697 
CD's >=$100,000             1,107,635    959,996    875,835 
Other time deposits             641,281    594,558    596,476 
Total interest bearing deposits             4,398,399    4,171,385    3,974,803 
Noninterest bearing deposits             1,259,364    1,262,835    1,258,205 
Total deposits             5,657,763    5,434,220    5,233,008 
Repurchase agreements             297,094    298,721    225,075 
Other interest bearing liabilities             64,448    64,512    64,705 
Lease liability             16,000    15,995    16,087 
Other noninterest bearing liabilities             62,239    56,475    45,194 
Total liabilities             6,097,544    5,869,923    5,584,069 
Shareholders' equity             891,827    871,245    806,869 
Total Liabilities and Equity            $6,989,371   $6,741,168   $6,390,938 
                            
Ending shares outstanding             18,164    18,156    18,105 
                            
30 - 89 days past due loans            $20,301   $24,800   $20,055 
90 days past due loans             18,951    9,599    8,449 
Nonaccrual loans             10,794    11,132    15,937 
Foreclosed properties             3,517    3,348    4,857 
                            
Community bank leverage ratio             13.89%   13.91%   13.80%
Tangible equity to tangible assets ratio             11.93%   12.07%   11.72%
FTE employees             970    974    937 
 
10