Stock-Based Compensation

6 Months Ended

Jun. 30, 2026

Note 6 – Stock-Based Compensation

There were no stock option awards outstanding and no unrecognized expense related to stock option grants as of June 30, 2026. Restricted stock expense for the three and six months ended June 30, 2026 was $475 thousand and $978 thousand, respectively, including $52 thousand and $105 thousand, respectively, in dividends paid during those periods. As of June 30, 2026, there was a total of $3.7 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 3.0 years.

The following table shows restricted stock activity for the periods indicated.

	Three Months Ended June 30, 2026					Six Months Ended June 30, 2026
	Grants			Weighted Average Fair Value at Grant		Grants			Weighted Average Fair Value at Grant
Outstanding at beginning of period		99,450		$	52.24		90,176		$	47.27
Granted		0			-		34,175			61.39
Vested		(626	)		53.08		(25,527	)		46.95
Outstanding at end of period		98,824		$	52.23		98,824		$	52.23

The restricted stock awards granted during 2026 were issued pursuant to the terms of CTBI’s 2025 Stock Ownership Incentive Plan. The restrictions on these shares of restricted stock will lapse ratably over four years, subject to such employee’s continued employment, except for 5,000 shares granted in March 2026 pursuant to a management retention restricted stock award which will cliff vest at the end of five years. However, in the event of certain participant employee termination events occurring within 24 months of a change in control of CTBI or the death of the participant, the restrictions will lapse, and in the event of the participant’s disability, the restrictions will lapse on a pro rata basis. The Compensation Committee will have discretion to review and revise restrictions applicable to a participant’s restricted stock in the event of the participant’s retirement. CTBI recognizes forfeitures when they occur.