Community Trust Bancorp Inc (CTBI) Reports Strong Earnings for Q3 2023
CTBI's net income for Q3 2023 reached $20.6 million, marking an increase from $19.4 million in Q2 2023 and $19.4 million in Q3 2022.
Earnings per share for Q3 2023 stood at $1.15, up from $1.09 in Q2 2023 and Q3 2022.
Net interest income for the quarter was $43.1 million, slightly above the prior quarter but $0.4 million below the same quarter of the previous year.
Noninterest income for Q3 2023 was $15.5 million, a 5.0% increase from the prior quarter and a 5.6% increase from the same quarter of the previous year.
Community Trust Bancorp Inc (NASDAQ:CTBI) released its earnings report for the third quarter of 2023 on October 18, 2023. The company reported a net income of $20.6 million, or $1.15 per basic share, marking an increase from $19.4 million, or $1.09 per basic share, earned during the second quarter of 2023 and the third quarter of 2022. The total revenue was $0.8 million above the prior quarter and $0.4 million above the same quarter of the previous year.
Financial Performance Overview
CTBI's net interest income for the quarter stood at $43.1 million, a slight increase from the prior quarter but $0.4 million below the same quarter of the previous year. The company's net interest margin, on a fully tax equivalent basis, decreased 8 basis points from the prior quarter and 9 basis points from the same quarter of the previous year. The average earning assets increased $84.8 million from the prior quarter and $110.9 million from the same quarter of the previous year.
Noninterest income for the quarter ended September 30, 2023, was $15.5 million, a 5.0% increase from the prior quarter and a 5.6% increase from the same quarter of the previous year. The increase was primarily driven by a $0.3 million increase in deposit related fees, a $0.2 million increase in securities gains, and a $0.4 million increase in bank owned life insurance.
Balance Sheet and Asset Quality
CTBI's total assets as of September 30, 2023, stood at $5.6 billion, marking an increase of $114.1 million from June 30, 2023, and $160.6 million from September 30, 2022. Loans outstanding at the end of the quarter were $4.0 billion, an increase of $55.3 million from the end of the second quarter of 2023 and $354.4 million from the end of the third quarter of 2022.
The company's total nonperforming loans increased to $13.0 million at the end of the third quarter of 2023, up from $11.7 million at the end of the second quarter of 2023, but down from $13.7 million at the end of the third quarter of 2022. The company had net loan charge-offs of $1.2 million for the third quarter of 2023, compared to $0.7 million for the second quarter of 2023 and $0.3 million for the third quarter of 2022.
Looking Forward
While CTBI's Q3 2023 earnings report shows promising results, the company remains focused on immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss. The company's management has the ability and intent to hold these securities to recovery or maturity, which could impact future earnings.
This article first appeared on GuruFocus.
