Community Trust Bancorp Inc. Files 2023 Annual Report

TL;DR

<b>Community Trust Bancorp Inc. (CTBI) has filed its 2023 10-K report, detailing financial performance and key balance sheet items for the past three fiscal years.</b>

AI Summary

COMMUNITY TRUST BANCORP INC /KY/ (CTBI) filed a Annual Report (10-K) with the SEC on February 28, 2024. Community Trust Bancorp Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Kentucky (KY) and operates under SIC code 6022 (State Commercial Banks). The filing includes financial data for the fiscal years 2021, 2022, and 2023. Key financial statement members such as Common Stock, Retained Earnings, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are detailed for these years. The report references specific plans like the Stock Ownership Incentive 2015 Plan and Stock Ownership Incentive Plan.

Why It Matters

For investors and stakeholders tracking COMMUNITY TRUST BANCORP INC /KY/, this filing contains several important signals. This 10-K filing provides a comprehensive overview of CTBI's financial health and operational status for the fiscal year 2023, allowing investors to assess its performance against previous years. The detailed financial data, including balance sheet components and references to incentive plans, is crucial for stakeholders to understand the company's financial structure, equity, and potential future stock-related activities.

Risk Assessment

Risk Level: — COMMUNITY TRUST BANCORP INC /KY/ shows moderate risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags or significant negative developments, indicating a routine disclosure.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand CTBI's financial position and any potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reported period)
• 2024-02-28 — Filing Date (Date of submission)
• 2021, 2022, 2023 — Fiscal Years (Periods for which financial data is detailed)

Key Players & Entities

• COMMUNITY TRUST BANCORP INC /KY/ (company) — Filer name
• CTBI (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• KY (location) — State of incorporation
• 6022 (industry) — Standard Industrial Classification

FAQ

Industry Context

Community Trust Bancorp Inc. operates within the commercial banking sector, a highly regulated industry focused on deposit-taking, lending, and other financial services.

Regulatory Implications

As a commercial bank, CTBI is subject to extensive regulation by federal and state authorities, including oversight from the Federal Reserve and state banking departments, ensuring compliance with financial stability and consumer protection laws.

What Investors Should Do

1. Analyze the detailed financial statements for 2023, comparing key metrics like assets, liabilities, and equity to prior years.
2. Review the business description and risk factors sections to understand CTBI's operational landscape and potential challenges.
3. Examine any disclosures related to executive compensation or significant corporate events mentioned in the filing.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-28: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 2023 10-K, providing the latest annual financial overview for Community Trust Bancorp Inc. compared to previous filings.

Key Financial Figures

• $5.8 billion — , CTBI had total consolidated assets of $5.8 billion and total consolidated deposits, includ
• $4.9 billion — ts, including repurchase agreements, of $4.9 billion. Total shareholders' equity at December
• $702.2 million — olders' equity at December 31, 2023 was $702.2 million. Trust assets under management at Decem
• $3.4 b — er management at December 31, 2023 were $3.4 billion, including CTB's investment portf
• $1.2 billion — ing CTB's investment portfolio totaling $1.2 billion. Through our subsidiaries, CTBI engage
• $43 million — munity development lending totaled over $43 million for the year 2023. Also, during 2023, C
• $807 thousand — , CTBI made contributions totaling over $807 thousand to aid low and moderate income families
• $10 billion — ng criteria, including having less than $10 billion in average total consolidated assets an

Filing Documents

• ef20015332_10k.htm (10-K) — 7006KB
• ef20015332_ex21.htm (EX-21) — 7KB
• ef20015332_ex23-1.htm (EX-23.1) — 2KB
• ef20015332_ex31-1.htm (EX-31.1) — 12KB
• ef20015332_ex31-2.htm (EX-31.2) — 11KB
• ef20015332_ex32-1.htm (EX-32.1) — 4KB
• ef20015332_ex32-2.htm (EX-32.2) — 4KB
• ef20015332_ex97.htm (EX-97) — 30KB
• image00001.jpg (GRAPHIC) — 28KB
• 0001140361-24-009933.txt (&nbsp;) — 32899KB
• ctbi-20231231.xsd (EX-101.SCH) — 115KB
• ctbi-20231231_cal.xml (EX-101.CAL) — 176KB
• ctbi-20231231_def.xml (EX-101.DEF) — 716KB
• ctbi-20231231_lab.xml (EX-101.LAB) — 1723KB
• ctbi-20231231_pre.xml (EX-101.PRE) — 1081KB
• ef20015332_10k_htm.xml (XML) — 9153KB

of this Form 10-K incorporates by reference

Part III of this Form 10-K incorporates by reference certain information from the Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held on April 23, 2024 . TABLE OF CONTENTS CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS 1 PART I 1

Business

Item 1. Business 1

Risk Factors

Item 1A. Risk Factors 4

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 15

Cybersecurity

Item 1C. Cybersecurity 15

Properties

Item 2. Properties 17

Legal Proceedings

Item 3. Legal Proceedings 17

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 17 Information about our Executive Officers 18 PART II 19 Item 5. Market for the Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities 19

[Reserved]

Item 6. [Reserved] 20

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 38

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 39

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 43 Reports of Independent Registered Public Accounting Firm 99

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 101

Controls and Procedures

Item 9A. Controls and Procedures 101

Other Information

Item 9B. Other Information 103 PART III 103

Directors, Executive Officers, and Corporate Governance of the Registrant

Item 10. Directors, Executive Officers, and Corporate Governance of the Registrant 103

Executive Compensation

Item 11. Executive Compensation 103

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 103

Certain Relationships, Related Transactions, and Director Independence

Item 13. Certain Relationships, Related Transactions, and Director Independence 103

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 103 PART IV 104

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 104

Form 10-K Summary

Item 16. Form 10-K Summary 105

Signatures

Signatures 106 Table of Contents CAUTIONARY STATEMENT REGARDING 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. Community Trust Bancorp, Inc.'s ("CTBI") 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; and 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

Business

Business Community Trust Bancorp, Inc. ("CTBI") is a bank holding company registered with the Board of Governors of the Federal Reserve System pursuant to Section 5(a) of the Bank Holding Company Act of 1956, as amended. CTBI was incorporated August 12, 1980, under the laws of the Commonwealth of Kentucky for the purpose of becoming a bank holding company. Currently, CTBI owns all the capital stock of one commercial bank and one trust company, serving small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. The commercial bank is Community Trust Bank, Inc., Pikeville, Kentucky ("CTB") and the trust company is Community Trust and Investment Company, Lexington, Kentucky ("CTIC"). At December 31, 2023, CTBI had total consolidated assets of $5.8 billion and total consolidated deposits, including repurchase agreements, of $4.9 billion. Total shareholders' equity at December 31, 2023 was $702.2 million. Trust assets under management at December 31, 2023 were $3.4 billion, including CTB's investment portfolio totaling $1.2 billion. Through our subsidiaries, CTBI engages in a wide range of commercial and personal banking and trust and wealth management activities, which include accepting time and demand deposits; making secured and unsecured loans to corporations, individuals, and others; providing cash management services to corporate and individual customers; issuing letters of credit; renting safe deposit boxes; and providing funds transfer services. The lending activities of CTB include making commercial, construction, mortgage, and personal loans. Lines of credit, revolving lines of credit, term loans, and other specialized loans, including asset-based financing, are also available. Our corporate subsidiaries act as trustees of personal trusts, as executors of estates, as trustees for employee benefit trusts, as paying agents for bond and stock issues, as investment agent, as d

Risk Factors

Risk Factors An investment in our common stock is subject to risks inherent to our business. The material risks and uncertainties that management believes affect us are described below. Before making an investment decision, you should carefully consider the risks and uncertainties described below, together with all of the other information included or incorporated by reference herein. The risks and uncertainties described below are not the only ones facing us. Additional risks and uncertainties that management is not aware of or focused on or that management currently deems immaterial may also impair our business operations. This report is qualified in its entirety by these risk factors. See also, "Cautionary Statement Regarding Forward-Looking Statements." If any of the following risks actually occur, our financial condition and results of operations could be materially and adversely affected. If this were to happen, the value of our common stock could decline significantly, and you could lose all or part of your investment. 4 Table of Contents Economic Environment Risks Economic Risk CTBI may continue to be adversely affected by economic and market conditions. Our financial performance generally, and in particular the ability of borrowers to pay interest on and repay principal of outstanding loans and the value of collateral securing those loans, as well as demand for loans and other products and services we offer, is highly dependent upon the business environment in the markets where we operate, in the states of Kentucky, West Virginia, and Tennessee and in the United States as a whole. A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, low unemployment, high business and investor confidence, and strong business earnings. Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity, or investor or busin

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View this 10-K filing on SEC EDGAR