Community Trust Bancorp Inc Reports Decline in Q4 and Annual Earnings for 2023
Net Income: Q4 net income decreased to $18.7 million from $20.6 million in Q3 2023 and $22.4 million in Q4 2022.
Earnings Per Share (EPS): Q4 EPS dropped to $1.04, down from $1.15 in Q3 2023 and $1.26 in Q4 2022.
Net Interest Income: Decreased slightly by $0.2 million from Q3 2023 and by $1.8 million from Q4 2022.
Noninterest Income: Fell by $1.8 million from the previous quarter but remained flat compared to Q4 2022.
Noninterest Expense: Increased by $0.8 million from Q3 2023 and $1.4 million from Q4 2022.
Total Assets: Grew to $5.8 billion, marking a 9.5% annualized increase from the previous quarter.
Dividends: Declared dividends per share remained steady at $0.46 for Q4 2023.
On January 17, 2024, Community Trust Bancorp Inc (NASDAQ:CTBI) released its 8-K filing, detailing the financial results for the fourth quarter and the full year of 2023. The bank holding company, which operates through its subsidiaries in various parts of Kentucky, West Virginia, and Tennessee, reported a decrease in net income and earnings per share (EPS) for both the quarter and the year. Despite these challenges, CTBI's total assets increased, and the company maintained its dividend payout.
Financial Performance Overview
CTBI's net income for Q4 2023 was $18.7 million, or $1.04 per basic share, a decrease from both the previous quarter and the same quarter in the previous year. The year-end net income also saw a decline to $78.0 million, or $4.36 per basic share, from $81.8 million, or $4.59 per basic share in 2022. This downturn reflects broader economic challenges, including increased provision for loan losses and noninterest expenses, coupled with a decrease in noninterest income.
Income Statement Highlights
Net interest income for the quarter slightly decreased by $0.2 million from the prior quarter and by $1.8 million from the same quarter last year. The net interest margin also saw a decrease, indicating pressure on the bank's core lending business. Noninterest income remained relatively stable compared to the same quarter last year but experienced a decrease from the previous quarter, mainly due to declines in deposit-related fees and loan-related fees. Noninterest expenses rose, driven by increases in personnel, occupancy, equipment, and data processing expenses.
Balance Sheet and Asset Quality
CTBI's total assets grew to $5.8 billion, with loans outstanding increasing by 9.2% from the previous year. The loan portfolio saw growth across commercial, residential, and consumer segments. However, the bank also reported an increase in nonperforming loans compared to the previous quarter, although there was a decrease from the previous year. The provision for credit losses saw a slight decrease from the prior quarter but increased from the same quarter last year.
Shareholders' Equity and Dividends
Shareholders' equity increased significantly during the quarter and from the previous year-end. CTBI's dividend yield remained attractive at 4.20% as of December 31, 2023, despite the challenges faced throughout the year.
Looking Ahead
CTBI's management remains focused on navigating the current economic environment, with an emphasis on asset quality and operational efficiency. The bank's strategic initiatives aim to strengthen its financial position and provide value to shareholders amidst the competitive and changing banking landscape.
For more detailed information and financial data, investors and interested parties are encouraged to review the full 8-K filing.
Community Trust Bancorp Inc's performance in the fourth quarter and throughout 2023 reflects the broader economic challenges faced by the banking industry. While the decrease in net income and EPS is a concern, the bank's asset growth and maintained dividends demonstrate resilience. As CTBI continues to adapt to the evolving financial landscape, investors will be watching closely to see how the company's strategies unfold in the coming year.
Explore the complete 8-K earnings release (here) from Community Trust Bancorp Inc for further details.
This article first appeared on GuruFocus.
