COMMUNITY TRUST BANCORP INC /KY/

Previous wording

Community Trust Bancorp, Inc. (“CTBI”) is a bank holding company headquartered in Pikeville, Kentucky. Currently, we own one commercial bank, Community Trust Bank, Inc. (“CTB”) and one trust company, Community Trust and Investment Company. Through our subsidiaries, we have eighty-one banking locations in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee, four trust offices across Kentucky, and one trust office in northeastern Tennessee. At March 31, 2025, we had total consolidated assets of $6.3 billion and total consolidated deposits, including repurchase agreements, of $5.4 billion. Total shareholders’ equity at March 31, 2025 was $784.2 million. Trust assets under management at March 31, 2025 were $3.6 billion, including CTB’s investment portfolio totaling $1.0 billion.

Current wording

Community Trust Bancorp, Inc. (“CTBI”) is a bank holding company headquartered in Pikeville, Kentucky. Currently, we own one commercial bank, Community Trust Bank, Inc. (“CTB”) and one trust company, Community Trust and Investment Company. Through our subsidiaries, we have eighty-one banking locations in eastern, northern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee, four trust offices across Kentucky, and one trust office in northeastern Tennessee. At June 30, 2025, we had total consolidated assets of $6.4 billion and total consolidated deposits, including repurchase agreements, of $5.5 billion. Total shareholders’ equity at June 30, 2025 was $806.9 million. Trust assets under management at June 30, 2025 were $3.8 billion, including CTB’s investment portfolio totaling $1.0 billion.

Previous wording

We reported earnings for the first quarter of 2025 of $22.0 million, or $1.22 per basic share, compared to $22.5 million, or $1.25 per basic share, earned during the fourth quarter of 2024 and $18.7 million, or $1.04 per basic share, earned during the first quarter of 2024. Total revenue for the quarter was $0.5 million above prior quarter and $7.4 million above prior year same quarter. Net interest revenue for the quarter increased $1.7 million compared to prior quarter and $7.7 million compared to prior year same quarter, and noninterest income decreased $1.3 million compared to prior quarter and $0.2 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $1.0 million from prior quarter and $0.9 million from prior year same quarter. Noninterest expense increased $0.4 million compared to prior quarter and $2.0 million compared to prior year same quarter.

Current wording

We reported record earnings for the quarter of $24.9 million, or $1.38 per basic share, compared to $22.0 million, or $1.22 per basic share, earned for the prior quarter and $19.5 million, or $1.09 per basic share, earned for the same period prior year. Total revenue for the quarter was $4.0 million above prior quarter and $8.8 million above prior year same quarter. Net interest revenue for the quarter increased $2.8 million compared to prior quarter and $8.4 million compared to prior year same quarter, and noninterest income increased $1.3 million compared to prior quarter and $0.5 million compared to prior year same quarter. Our provision for credit losses for the quarter decreased $1.5 million from prior quarter and $0.9 million from prior year same quarter. Noninterest expense increased $1.5 million compared to prior quarter and $3.2 million compared to prior year same quarter. Year-to-date earnings of $46.9 million, or $2.60 per basic share, were $8.7 million, or $0.47 per basic share, above prior year.

Previous wording

Net interest income for the quarter of $51.3 million was $1.7 million, or 3.5%, above prior quarter and $7.7 million, or 17.6%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.57% increased 14 basis points from prior quarter and 34 basis points from prior year same quarter. Our quarterly average earning assets increased $68.7 million from prior quarter and $390.0 million from prior year same quarter. Our yield on average earning assets increased 5 basis points from prior quarter and 16 basis points from prior year same quarter, while our cost of funds decreased 16 basis points from prior quarter and 33 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, was 85.9% for the quarter ended March 31, 2025 compared to 84.4% for the quarter ended December 31, 2024 and 82.7% for the quarter ended March 31, 2024.

Current wording

Net interest income for the quarter of $54.0 million was $2.8 million, or 5.4%, above prior quarter and $8.4 million, or 18.3%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.64% increased 7 basis points from prior quarter and 26 basis points from prior year same quarter. Our quarterly average earning assets increased $135.0 million, an annualized 9.3%, from prior quarter and $513.3 million, or 9.4%, from prior year same quarter. Our yield on average earning assets increased 5 basis points from prior quarter and 10 basis points from prior year same quarter, while our cost of funds decreased 2 basis points from prior quarter and 30 basis points from prior year same quarter. Our ratio of average loans to deposits, including repurchase agreements, was 86.6% for the quarter compared to 85.9% for prior quarter and 84.5% for prior year same quarter.

Previous wording

Our provision for credit losses at $3.6 million for the quarter increased $1.0 million from prior quarter and $0.9 million from prior year same quarter. Of the provision for the quarter, $2.0 million was allotted to fund loan growth, while the remainder was used to fund net losses. Our reserve coverage (allowance for credit losses to nonperforming loans) at March 31, 2025 was 214.7% compared to 206.0% at December 31, 2024 and 319.0% at March 31, 2024. Our credit loss reserve as a percentage of total loans outstanding at March 31, 2025 remained at 1.23% from December 31, 2024 compared to 1.22% at March 31, 2024.

Current wording

Our provision for credit losses at $2.1 million for the quarter decreased $1.5 million from prior quarter and $0.9 million from prior year same quarter. Of the provision for the quarter, $1.4 million was allocated to fund net charge-offs, $0.6 million was allotted to fund changes in loan volume and composition, and $123 thousand was credited against the provision for unfunded commitments. Year-to-date provision for credit losses remained relatively stable compared to prior year. Our reserve coverage (allowance for credit losses to nonperforming loans) at June 30, 2025 was 237.1% compared to 214.7% at March 31, 2025 and 263.0% at June 30, 2024. Our loan loss reserve as a percentage of total loans outstanding at June 30, 2025 remained at 1.23% from March 31, 2025 compared to 1.22% at June 30, 2024.

Previous wording

Noninterest income for the quarter ended March 31, 2025 of $14.9 million was $1.3 million, or 7.8%, below prior quarter and $0.2 million, or 1.6%, below prior year same quarter. The variance quarter over quarter was primarily the result of decreases in deposit related fees ($0.8 million) and loan related fees ($0.5 million). Year over year decreases in loan related fees ($0.4 million), bank owned life insurance revenue ($0.3 million), and deposit related fees ($0.2 million) were partially offset by increases in trust revenue ($0.5 million) and securities gains ($0.1 million). The decrease in loan related fees resulted primarily from the fluctuation in the fair market value of our mortgage servicing rights.

Current wording

Noninterest income for the quarter was $1.3 million above prior quarter and $0.5 million above prior year same quarter. The variance quarter over quarter was primarily the result of increases in deposit related fees ($0.5 million) and loan related fees ($0.3 million). Year over year increases in trust and wealth management income ($0.4 million) and securities gains ($0.6 million) were partially offset by a decrease in bank owned life insurance revenue ($0.7 million). Year-to-date noninterest income increased $0.02 million from prior year.

Previous wording

Noninterest expense for the quarter ended March 31, 2025 of $34.2 million was $0.4 million, or 1.3%, above prior quarter and $2.0 million, or 6.2%, above prior year same quarter. The quarter over quarter increase primarily resulted from increases in net occupancy and equipment expense ($0.4 million) and legal and professional fees ($0.2 million), partially offset by a decrease in data processing expense ($0.3 million). The year over year increase was primarily due to increases in net occupancy and equipment expense ($0.4 million), data processing expense ($0.3 million), legal and professional fees ($0.4 million), operating losses ($0.3 million), and loan related expenses ($0.2 million).

Current wording

Noninterest expense for the quarter was $1.5 million above prior quarter and $3.2 million above prior year same quarter. The quarter over quarter increase primarily resulted from an increase in the accrual for the annual incentive payment to employees, based on projected net income for the year. An increase in data processing expense ($0.5 million) was offset by decreases in net occupancy and equipment expense ($0.3 million) and legal and professional fees ($0.2 million). The year over year increase was primarily due to increases in personnel expense ($2.1 million) and data processing expense ($0.7 million). Year-to-date noninterest expense increased $5.2 million from prior year.

Previous wording

CTBI’s total assets at $6.3 billion as of March 31, 2025 increased $83.3 million, or 5.5% annualized, from December 31, 2024 and $426.3 million, or 7.3%, from March 31, 2024. Loans outstanding at $4.6 billion increased $149.9 million, an annualized 13.5%, from December 31, 2024 and $475.4 million, or 11.4%, from March 31, 2024. The increase in loans from prior quarter included an $85.0 million increase in the commercial loan portfolio, a $28.8 million increase in the residential loan portfolio, and a $38.3 million increase in the indirect consumer loan portfolio, partially offset by a $2.2 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio decreased $46.7 million, or an annualized 17.9%, from December 31, 2024 and $102.2 million, or 9.2%, from March 31, 2024. The decrease in the investment portfolio during the quarter was due to management’s decision to reinvest certain maturities into the loan portfolio. Deposits in other banks decreased $24.4 million from prior quarter but increased $34.7 million from March 31, 2024.

Current wording

CTBI’s total assets at $6.4 billion increased $114.4 million, 7.3% annualized, during the quarter and $197.7 million, 38.8% annualized, from prior year end. Loans outstanding at $4.7 billion increased $65.3 million, 5.6% annualized, during the quarter and $215.2 million, 58.3% annualized, from prior year end. The increase in loans from prior quarter included a $24.9 million increase in the commercial loan portfolio, a $50.2 million increase in the residential loan portfolio, and a $0.3 million increase in the consumer direct loan portfolio, partially offset by a $10.1 million decrease in the indirect consumer loan portfolio. CTBI’s investment portfolio decreased $13.4 million, 5.3% annualized, during the quarter and $60.7 million, 70.0% annualized, from prior year end. Deposits in other banks increased $46.6 million from prior quarter and $22.3 million from prior year end.

Previous wording

Deposits, including repurchase agreements, at $5.4 billion increased $47.5 million, or an annualized 3.6%, from December 31, 2024 and $338.9 million, or 6.8%, from March 31, 2024. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of March 31, 2025, no one customer accounted for more than 3% of our $5.1 billion in deposits. Only two customer relationships accounted for more than 1% each.

Current wording

Deposits, including repurchase agreements, at $5.5 billion increased $100.2 million, 7.5% annualized, during the quarter and $147.7 million, 33.8% annualized, from prior year end. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of June 30, 2025, no one customer accounted for more than 3% of our $5.2 billion in deposits. Only two customer relationships accounted for more than 1% each.

Previous wording

Shareholders’ equity at $784.2 million increased $26.6 million, or an annualized 14.2%, during the quarter and $76.4 million, or 10.8%, from March 31, 2024. Net unrealized losses on securities, net of deferred taxes, were $86.1 million at March 31, 2025, compared to $98.4 million at December 31, 2024 and $106.9 million at March 31, 2024. CTBI’s annualized dividend yield to shareholders as of March 31, 2025 was 3.73%.

Current wording

Shareholders’ equity at $806.9 million increased $22.7 million, 11.6% annualized, during the quarter and $49.3 million, 79.2% annualized, from prior year end. Net unrealized losses on securities, net of deferred taxes, were $80.6 million at June 30, 2025, compared to $86.1 million at March 31, 2025 and $98.4 million at December 31, 2024. CTBI’s annualized dividend yield to shareholders as of June 30, 2025 was 3.55%.

Previous wording

Our total nonperforming loans decreased to $26.5 million at March 31, 2025 from $26.7 million at December 31, 2024 but increased from $15.9 million at March 31, 2024. Accruing loans 90+ days past due at $10.8 million increased $0.5 million from prior quarter but decreased $0.7 million from March 31, 2024. Nonaccrual loans at $15.7 million decreased $0.7 million from prior quarter but increased $11.4 million from March 31, 2024. Accruing loans 30-89 days past due at $14.5 million decreased $2.3 million from prior quarter but increased $2.3 million from March 31, 2024. Nonaccrual loans to totals loans for the quarters ended March 31, 2025 and 2024 were 0.3% and 0.1%, respectively. The allowance for credit losses to nonaccrual loans for the quarters ended March 31, 2025 and 2024 was 363.0% and 1,175.5%, respectively. Our loan portfolio risk management processes include weekly delinquent loan review meetings at the market levels and monthly delinquent loan review meetings involving senior corporate management to review all nonaccrual loans and loans 30 days or more past due. Any activity regarding a criticized/classified loan (i.e. problem loan) must be approved by CTB’s Watch List Asset Committee (i.e. Problem Loan Committee). CTB’s Watch List Asset Committee also meets on a quarterly basis and reviews every criticized/classified loan of $100,000 or greater. CTB’s Loan Portfolio Risk Management Committee also meets quarterly focusing on the overall asset quality and risk metrics of the loan portfolio. We also have a Loan Review Department that reviews every market within CTB annually and performs extensive testing of the loan portfolio to assure the accuracy of loan grades and classifications for delinquency, loan modifications for borrowers experiencing financial difficulty, nonaccrual status, and adequate loan loss reserves. The Loan Review Department has annually reviewed on average 97% of the outstanding commercial loan portfolio for the past three years. The average annual review percentage of the consumer and residential loan portfolio for the past three years was 81% based on the loan production during the number of months included in the review scope. The review scope is generally four to six months of production. CTBI generally does not offer high risk loans such as option ARM products, high loan to value ratio mortgages, interest-only loans, loans with initial teaser rates, or loans with negative amortizations, and therefore, CTBI would have no significant exposure to these products. For further information regarding nonperforming loans, see Note 4 to the condensed consolidated financial statements contained herein.

Current wording

Our total nonperforming loans at $24.4 million decreased $2.1 million from prior quarter and $2.3 million from prior year end. Accruing loans 90+ days past due at $8.4 million decreased $2.4 million from prior quarter and $1.9 million from prior year end. Nonaccrual loans at $15.9 million increased $0.2 million from prior quarter but decreased $0.4 million from prior year end. Accruing loans 30-89 days past due at $20.1 million increased $5.5 million from prior quarter and $3.2 million from prior year end. Nonaccrual loans to totals loans for the quarters ended June 30, 2025 and 2024 were 0.3% and 0.1%, respectively. The allowance for credit losses to nonaccrual loans for the quarters ended June 30, 2025 and 2024 was 362.8% and 1,017.1%, respectively. Our loan portfolio risk management processes include weekly delinquent loan review meetings at the market levels and monthly delinquent loan review meetings involving senior corporate management to review all nonaccrual loans and loans 30 days or more past due. Any activity regarding a criticized/classified loan (i.e. problem loan) must be approved by CTB’s Watch List Asset Committee (i.e. Problem Loan Committee). CTB’s Watch List Asset Committee also meets on a quarterly basis and reviews every criticized/classified loan of $100,000 or greater. CTB’s Loan Portfolio Risk Management Committee also meets quarterly focusing on the overall asset quality and risk metrics of the loan portfolio. We also have a Loan Review Department that reviews every market within CTB annually and performs extensive testing of the loan portfolio to assure the accuracy of loan grades and classifications for delinquency, loan modifications for borrowers experiencing financial difficulty, nonaccrual status, and adequate loan loss reserves. The Loan Review Department has annually reviewed on average 97% of the outstanding commercial loan portfolio for the past three years. The average annual review percentage of the consumer and residential loan portfolio for the past three years was 81% based on the loan production during the number of months included in the review scope. The review scope is generally four to six months of production. CTBI generally does not offer high risk loans such as option ARM products, high loan to value ratio mortgages, interest-only loans, loans with initial teaser rates, or loans with negative amortizations, and therefore, CTBI would have no significant exposure to these products. For further information regarding nonperforming loans, see Note 4 to the condensed consolidated financial statements contained herein.

Previous wording

We had net loan charge-offs of $1.6 million, or 0.14% of average loans annualized, for the first quarter of 2025 compared to $1.0 million, or 0.09% of average loans annualized, for the fourth quarter of 2024 and $1.6 million, or 0.16% of average loans annualized, for the first quarter of 2024. Of the net charge-offs for the quarter, $0.4 million were in indirect consumer loans, $0.3 million were in commercial loans, $0.8 million were in direct consumer loans, and $0.1 million were in residential loans.

Current wording

We had net loan charge-offs of $1.4 million, an annualized 0.12% of average loans, compared to $1.6 million, an annualized 0.14% of average loans, for the prior quarter and $1.4 million, an annualized 0.13% of average loans, for the prior year same period. Of the net charge-offs for the quarter, $0.5 million were in commercial loans, $0.8 million were in indirect consumer loans, and $0.1 million were in direct consumer loans. Year-to-date net charge-offs were $2.9 million, an annualized 0.13% of average loans, compared to $3.0 million, an annualized 0.15% of average loans, for the same period prior year.

Previous wording

The objective of CTBI’s Asset/Liability management function is to maintain consistent growth in net interest income within our policy limits. This objective is accomplished through management of our consolidated balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates, and customer preferences. The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand or deposit withdrawals. This is accomplished by maintaining liquid assets in the form of cash and cash equivalents and investment securities, sufficient unused borrowing capacity, and growth in core deposits. As of March 31, 2025, we had approximately $340.7 million in cash and cash equivalents and approximately $111.0 million in unpledged securities valued at estimated fair value designated as available-for-sale and available to meet liquidity needs on a continuing basis compared to $369.5 million and $170.6 million, respectively, at December 31, 2024. Additional asset-driven liquidity is provided by the remainder of the securities portfolio and the repayment of loans. In addition to core deposit funding, we also have a variety of other short-term and long-term funding sources available. We also rely on Federal Home Loan Bank advances for both liquidity and management of our asset/liability position. Federal Home Loan Bank advances were $0.3 million at March 31, 2025 and December 31, 2024. As of March 31, 2025, we had a $508.5 million available borrowing position with the Federal Home Loan Bank, compared to $485.0 million at December 31, 2024. We generally rely upon net inflows of cash from financing activities, supplemented by net inflows of cash from operating activities, to provide cash for our investing activities. As is typical of many financial institutions, significant financing activities include deposit gathering, use of short-term borrowing facilities such as repurchase agreements and federal funds purchased, and issuance of long-term debt. At March 31, 2025 and December 31, 2024, we had $50 million in lines of credit with various correspondent banks available to meet any future cash needs. Our primary investing activities include purchases of securities and loan originations. We do not rely on any one source of liquidity and manage availability in response to changing consolidated balance sheet needs. Included in our cash and cash equivalents at March 31, 2025 were deposits with the Federal Reserve of $265.1 million, compared to $289.4 million at December 31, 2024. Additionally, we project cash flows from our investment portfolio to generate additional liquidity over the next 90 days.

Current wording

The objective of CTBI’s Asset/Liability management function is to maintain consistent growth in net interest income within our policy limits. This objective is accomplished through management of our consolidated balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates, and customer preferences. The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand or deposit withdrawals. This is accomplished by maintaining liquid assets in the form of cash and cash equivalents and investment securities, sufficient unused borrowing capacity, and growth in core deposits. As of June 30, 2025, we had approximately $395.3 million in cash and cash equivalents and approximately $109.4 million in unpledged securities valued at estimated fair value designated as available-for-sale and available to meet liquidity needs on a continuing basis compared to $369.5 million and $170.6 million, respectively, at December 31, 2024. Additional asset-driven liquidity is provided by the remainder of the securities portfolio and the repayment of loans. In addition to core deposit funding, we also have a variety of other short-term and long-term funding sources available. We also rely on Federal Home Loan Bank advances for both liquidity and management of our asset/liability position. Federal Home Loan Bank advances were $0.3 million at June 30, 2025 and December 31, 2024. As of June 30, 2025, we had a $527.0 million available borrowing position with the Federal Home Loan Bank, compared to $485.0 million at December 31, 2024. We generally rely upon net inflows of cash from financing activities, supplemented by net inflows of cash from operating activities, to provide cash for our investing activities. As is typical of many financial institutions, significant financing activities include deposit gathering, use of short-term borrowing facilities such as repurchase agreements and federal funds purchased, and issuance of long-term debt. At June 30, 2025 and December 31, 2024, we had $50 million in lines of credit with various correspondent banks available to meet any future cash needs. Our primary investing activities include purchases of securities and loan originations. We do not rely on any one source of liquidity and manage availability in response to changing consolidated balance sheet needs. Included in our cash and cash equivalents at June 30, 2025 were deposits with the Federal Reserve of $314.0 million, compared to $289.4 million at December 31, 2024. Additionally, we project cash flows from our investment portfolio to generate additional liquidity over the next 90 days.

Previous wording

The investment portfolio consists of investment grade short-term issues suitable for bank investments. The majority of the investment portfolio is in U.S. government and government sponsored agency issuances. At March 31, 2025, available-for-sale (“AFS”) securities comprised all of the total investment portfolio, and the AFS portfolio was approximately 129% of equity capital. Ninety-one percent of the pledge-eligible portfolio was pledged.

Current wording

The investment portfolio consists of investment grade short-term issues suitable for bank investments. The majority of the investment portfolio is in U.S. government and government sponsored agency issuances. At June 30, 2025, available-for-sale (“AFS”) securities comprised 99.6% of the total investment portfolio, and the AFS portfolio was 123.3% of equity capital. Ninety-one percent of the pledge-eligible portfolio was pledged.

Previous wording

We continue to offer a dividend to our shareholders, providing an annualized dividend yield for the quarter ended March 31, 2025 of 3.73%. Our primary source of capital growth is the retention of earnings. Cash dividends were $0.47 per share for the three months ended March 31, 2025. We retained 61.5% of our earnings for the first three months of 2025 compared to 55.8% for the first three months of 2024.

Current wording

We continue to offer a dividend to our shareholders, providing an annualized dividend yield of 3.55%. Our primary source of capital growth is the retention of earnings. Year-to-date cash dividends were $0.94 per share. We retained 63.8% of our earnings for the period compared to 56.8% for prior year same period.

Previous wording

Insured depository institutions are required to meet certain capital level requirements. On October 29, 2019, federal banking regulators adopted a final rule to simplify the regulatory capital requirements for eligible community banks and holding companies that opt-in to the community bank leverage ratio framework (the “CBLR framework”), as required by Section 201 of the Economic Growth, Relief and Consumer Protection Act of 2018. Under the final rule, which became effective as of January 1, 2020, community banks and holding companies (which includes CTB and CTBI) that satisfy certain qualifying criteria, including having less than $10 billion in average total consolidated assets and a leverage ratio (referred to as the “community bank leverage ratio”) of greater than 9%, were eligible to opt-in to the CBLR framework. The community bank leverage ratio is the ratio of a banking organization’s Tier 1 capital to its average total consolidated assets, both as reported on the banking organization’s applicable regulatory filings. Accordingly, a qualifying community banking organization that has a community bank leverage ratio greater than 9% will be considered to have met: (i) the risk-based and leverage capital requirements of the generally applicable capital rules; (ii) the capital ratio requirements in order to be considered well-capitalized under the prompt corrective action framework; and (iii) any other applicable capital or leverage requirements. Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of March 31, 2025 was 13.81%. CTB’s CBLR ratio as of March 31, 2025 was 13.32%.

Current wording

Insured depository institutions are required to meet certain capital level requirements. On October 29, 2019, federal banking regulators adopted a final rule to simplify the regulatory capital requirements for eligible community banks and holding companies that opt-in to the community bank leverage ratio framework (the “CBLR framework”), as required by Section 201 of the Economic Growth, Relief and Consumer Protection Act of 2018. Under the final rule, which became effective as of January 1, 2020, community banks and holding companies (which includes CTB and CTBI) that satisfy certain qualifying criteria, including having less than $10 billion in average total consolidated assets and a leverage ratio (referred to as the “community bank leverage ratio”) of greater than 9%, were eligible to opt-in to the CBLR framework. The community bank leverage ratio is the ratio of a banking organization’s Tier 1 capital to its average total consolidated assets, both as reported on the banking organization’s applicable regulatory filings. Accordingly, a qualifying community banking organization that has a community bank leverage ratio greater than 9% will be considered to have met: (i) the risk-based and leverage capital requirements of the generally applicable capital rules; (ii) the capital ratio requirements in order to be considered well-capitalized under the prompt corrective action framework; and (iii) any other applicable capital or leverage requirements. Management elected to use the CBLR framework for CTBI and CTB. CTBI’s CBLR ratio as of June 30, 2025 was 13.80%. CTB’s CBLR ratio as of June 30, 2025 was 13.33%.