Community Trust Bank(CTBI) - 2024 Q4 - Annual Report

Financial Performance - Net income for the year ended December 31, 2024, was $82.8 million, or $4.61 per basic share, an increase from $78.0 million, or $4.36 per basic share, in 2023[162] - Noninterest income for the year ended December 31, 2024, was $62.6 million, an increase of $4.9 million, or 8.5%, compared to 2023[167] - Net interest income increased by $12.9 million, or 7.4%, to $185.995 million for the year ended December 31, 2024[165] - Total interest income for 2024 reached $313,443,000, an increase of 16.7% from $268,650,000 in 2023[236] - Net income for 2024 was $82,813,000, representing a 6.4% increase from $78,004,000 in 2023[236] - Basic earnings per share for 2024 were $4.61, compared to $4.36 in 2023, indicating a growth of 5.7%[236] Asset and Deposit Growth - Total consolidated assets as of December 31, 2024, were $6.2 billion, with total consolidated deposits of $5.3 billion[158] - Total assets increased by $423.5 million, or 7.3%, to $6.2 billion from December 31, 2023[178] - Deposits, including repurchase agreements, increased by $360.5 million, or 7.3%, from December 31, 2023[167] - Total deposits grew to $5,070,189 thousand in 2024, up from $4,724,622 thousand in 2023, marking an increase of around 7.3%[235] Loan Portfolio - The loan portfolio grew by $435.7 million, or 10.8%, from December 31, 2023, to December 31, 2024[167] - Total loans increased by 10.8% to $4,486.6 million, with net charge-offs of $5.5 million, representing 0.13% of average loans for the year ended December 31, 2024[181][184] - Loans outstanding increased by $435.7 million, or 10.8%, to $4.5 billion year over year, with significant growth in the commercial loan portfolio[178] - The total loans and lease financing reached $4.49 billion as of December 31, 2024, compared to $4.05 billion in 2023, indicating a growth of approximately 10.8%[318] Credit Losses and Nonperforming Loans - The provision for credit losses was $11.0 million for the year ended December 31, 2024, compared to $6.8 million in 2023, reflecting a 60.8% increase[165] - Nonperforming loans increased to $26.7 million, up $12.7 million, or 91.1%, from December 31, 2023[167] - The allowance for credit losses to nonperforming loans was 206.0% at December 31, 2024, down from 354.7% a year earlier[186] - Total provision for credit losses increased to $54,968,000 for the year ended December 31, 2024, compared to $49,543,000 for the year ended December 31, 2023, reflecting a year-over-year increase of approximately 11.5%[331] Shareholder Equity and Dividends - Shareholders' equity at December 31, 2024, was $757.6 million, an increase from the previous year[161] - Cash dividends for 2024 were $1.86 per share, up from $1.80 per share in 2023, with a retention rate of 59.7% of earnings in 2023[207] - The annualized dividend yield to shareholders as of December 31, 2024, was 3.55%[179] - Dividends paid increased to $33,407,000 in 2024 from $32,187,000 in 2023, a rise of 3.8%[241] Investment Portfolio - The investment portfolio was entirely in available-for-sale securities, comprising approximately 139% of equity capital[188] - Total fair value of investments at December 31, 2024, was $1,186.649 million, with a weighted average yield of 2.27%[197] - The total available-for-sale securities amounted to $1,055.7 million, with an amortized cost of $1,186.6 million and unrealized losses of $131.2 million[304] Risk Management and Credit Policies - CTBI's strategy for credit risk management includes conservative exposure limits and regular credit examinations, emphasizing diversification across geographic and industry lines[220] - The company actively manages interest rate risk, employing an earnings simulation model to analyze net interest income sensitivity[202] - CTBI maintains an Allowance for Credit Losses (ACL) that is appropriate to cover estimated credit losses on individually evaluated loans and the remainder of the loan and lease portfolio[265] Economic Factors and Forecasting - The company forecasts economic factors including GDP, unemployment rate, and housing price index, utilizing projections from the Federal Open Market Committee[331] - CTBI's exposure to credit risk is significantly affected by changes in the economic conditions of the communities it serves in Kentucky, West Virginia, and Tennessee[320] Regulatory Changes - The FASB issued ASU No. 2023-07, which requires public entities to disclose significant segment expenses and other segment items on an annual and interim basis, effective for fiscal years beginning after December 15, 2023[298] - The FASB issued ASU No. 2023-09, which improves income tax disclosures, effective for public business entities for annual periods beginning after December 15, 2024[300] - The FASB issued ASU No. 2024-03, which requires additional disclosures about certain expenses in the notes to financial statements, effective for annual reporting periods beginning after December 15, 2026[301]