COMMUNITY TRUST BANCORP INC /KY/
For the period ended Sep 30, 2025. Filed Nov 7, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 7, 2025
CTBI$69.11-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001140361-25-029752
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-07.
0001140361-25-040959
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 70 previous paragraphs and 65 current paragraphs.
49 unchanged; 15 reworded; 1 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
Noninterest expense for the quarter ended September 30, 2025 of $36.7 million was $1.1 million, or 3.0%, above prior quarter and $4.2 million, or 13.0%, above prior year same quarter. The quarter over quarter increase primarily resulted from increases in repossession expense ($0.4 million), data processing expense ($0.2 million), and marketing and promotional ($0.2 million). A $1.3 million increase in group medical and life insurance expense was partially offset by a $1.2 million decrease in the accrual for the annual incentive payment to employees, based on projected net income for the year. The year over year increase included increases in personnel expense ($2.3 million), data processing expense ($0.8 million), repossession expense ($0.4 million), and marketing and promotional ($0.2 million). The increase in personnel expense included a $1.2 million increase in group medical and life insurance expense, a $0.5 million increase in salaries, a $0.2 million increase in bonuses and incentives, and a $0.4 million increase in other employee benefits. Noninterest expense for the nine months ended September 30, 2025 of $106.6 million increased $9.5 million, or 9.7%, from prior year.
Removed paragraphs (6)
Previous report
*Yield on average earning assets and net interest margin are computed on a taxable equivalent basis using a 24.95% tax rate.
Previous report
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 report
On July 22, 2025, the Board of Directors of CTBI declared a quarterly cash dividend of $0.53 per share to be paid on October 1, 2025 to shareholders of record on September 15, 2025. This represents an increase of 12.8% in the quarterly cash dividend.
Previous report
Goodwill –Business combinations entered into by CTBI typically include the recognition of goodwill. GAAP requires goodwill to be tested for impairment on an annual basis, which for CTBI is October 1, and more frequently if events or circumstances indicate that there may be impairment.
Previous report
Impairment exists when a reporting unit’s carrying amount of goodwill exceeds its implied fair value. In testing goodwill for impairment, GAAP permits companies to first assess qualitative factors to determine whether it is more likely than not that its fair value is less than its carrying amount. In this qualitative assessment, CTBI evaluates events and circumstances which may include, but are not limited to, the general economic environment, banking industry and market conditions, the overall financial performance of CTBI, and the performance of CTBI’s common stock, to determine if it is not more likely than not that the fair value is less than its carrying amount. If the quantitative impairment test is required or the decision to bypass the qualitative assessment is elected, CTBI performs the goodwill impairment test by comparing its fair value with its carrying amount, including goodwill. If the carrying amount exceeds its fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill recorded. A recognized impairment loss cannot be reversed in future periods even if the fair value of the reporting unit subsequently recovers.
Previous report
The fair value of CTBI is the price that would be received to sell the company as a whole in an orderly transaction between market participants at the measurement date. The determination of the fair value is a subjective process that involves the use of estimates and judgments, particularly related to cash flows, the appropriate discount rates and an applicable control premium. CTBI employs an income-based approach, utilizing forecasted cash flows and the estimated cost of equity as the discount rate. Significant management judgment is necessary in the preparation of the forecasted cash flows surrounding expectations for earnings projections, growth and credit loss expectations, and actual results may differ from forecasted results.
Reworded paragraphs (15)
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, 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.
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 September 30, 2025, we had total consolidated assets of $6.6 billion and total consolidated deposits, including repurchase agreements, of $5.7 billion. Total shareholders’ equity at September 30, 2025 was $831.4 million. Trust assets under management at September 30, 2025 were $4.0 billion, including CTB’s investment portfolio totaling $1.0 billion.
Previous 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.
Current wording
We reported earnings for the third quarter 2025 of $23.9 million, or $1.33 per basic share, compared to $24.9 million, or $1.38 per basic share, earned during the second quarter 2025 and $22.1 million, or $1.23 per basic share, earned during the third quarter 2024. Total revenue for the quarter was $1.3 million above prior quarter and $8.7 million above prior year same quarter. Net interest revenue for the quarter increased $1.5 million compared to prior quarter and $8.4 million compared to prior year same quarter, and noninterest income decreased $0.2 million compared to prior quarter but increased $0.4 million compared to prior year same quarter. Our provision for credit losses for the quarter increased $1.8 million from prior quarter and $1.1 million from prior year same quarter. Noninterest expense increased $1.1 million compared to prior quarter and $4.2 million compared to prior year same quarter. Earnings for the nine months ended September 30, 2025 were $10.5 million, or $0.57 per basic share, above prior year.
Previous wording
The following table illustrates the approximate effect of volume and rate changes on net interest differentials between the six months ended June 30, 2025 and June 30, 2024.
Current wording
The following table illustrates the approximate effect of volume and rate changes on net interest differentials between the nine months ended September 30, 2025 and September 30, 2024.
Previous 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.
Current wording
Net interest income for the quarter of $55.6 million was $1.5 million, or 2.8%, above prior quarter and $8.4 million, or 17.7%, above prior year same quarter. Our net interest margin, on a fully tax equivalent basis, at 3.60% decreased 4 basis points from prior quarter but increased 21 basis points from prior year same quarter. Our quarterly average earning assets increased $168.0 million, an annualized 11.1%, from prior quarter and $581.0 million, or 10.4%, from prior year same quarter. Our yield on average earning assets decreased 3 basis points from prior quarter but increased 1 basis point from prior year same quarter, while our cost of funds increased 1 basis point from prior quarter but decreased 35 basis points from prior year same quarter. Net interest income for the nine months ended September 30, 2025 at $160.9 million was $24.4 million, or 17.9%, above prior year. Our ratio of average loans to deposits, including repurchase agreements, was 85.6% for the quarter ended September 30, 2025 compared to 86.6% for the quarter ended June 30, 2025 and 85.8% for the quarter ended September 30, 2024.
Previous 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.
Current wording
Our provision for credit losses at $3.9 million for the quarter increased $1.8 million from prior quarter and $1.1 million from prior year same quarter. Of the provision for the quarter, $3.8 million was allotted to fund changes in loan volume and composition, $0.3 million was allotted based on quantitative and qualitative factors, and $0.2 million was credited against the provision for unfunded commitments. Provision for credit losses for the nine months ended September 30, 2025 of $9.5 million was a $1.2 million increase over the nine months ended September 30, 2024. Our reserve coverage (allowance for credit losses to nonperforming loans) at September 30, 2025 was 239.5% compared to 237.1% at June 30, 2025 and 212.7% at September 30, 2024. Our loan loss reserve as a percentage of total loans outstanding at September 30, 2025 remained at 1.23% from June 30, 2025 and September 30, 2024.
Previous 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.
Current wording
Noninterest income for the quarter ended September 30, 2025 of $15.9 million was $0.2 million, or 1.4%, below prior quarter but $0.4 million, or 2.5%, above prior year same quarter. The variance quarter over quarter was primarily the result of decreases in net securities gains ($0.6 million) and loan related fees ($0.4 million), partially offset by increased deposit related fees ($0.8 million). The decrease in securities gains was the result of a change in the valuation of our equity securities. The decrease in loan related fees was the result of the change in valuation of our mortgage servicing rights. Year over year increases in trust and wealth management income ($0.6 million) and deposit related fees ($0.2 million) were partially offset by a decrease in securities gains ($0.7 million). Noninterest income for the nine months ended September 30, 2025 of $47.0 million was a $0.6 million, or 1.3%, increase from prior year.
Previous 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.
Current wording
CTBI’s total assets at $6.6 billion increased $247.2 million, 15.3% annualized, during the quarter and $444.9 million, 9.6% annualized, from prior year end. Loans outstanding at $4.8 billion increased $92.1 million, 7.8% annualized, during the quarter and $307.3 million, 9.2% annualized, from prior year end. The increase in loans from prior quarter included a $42.3 million increase in the commercial loan portfolio and a $51.9 million increase in the residential loan portfolio, partially offset by a $0.9 million decrease in the consumer indirect loan portfolio and a $1.2 million decrease in the consumer direct loan portfolio. CTBI’s investment portfolio increased $42.5 million, 16.9% annualized, during the quarter but decreased $17.6 million, 2.2% annualized, from prior year end. Deposits in other banks increased $117.7 million from prior quarter and $139.9 million from prior year end.
Previous 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.
Current wording
Deposits, including repurchase agreements, at $5.7 billion increased $212.2 million, 15.4% annualized, during the quarter and $360.0 million, 9.1% annualized, from prior year end. CTBI is not dependent on any one customer or group of customers for their source of deposits. As of September 30, 2025, two customers accounted for 3% each of our $5.4 billion in deposits. Only two customer relationships accounted for more than 1% each.
Previous 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%.
Current wording
Shareholders’ equity at $831.4 million increased $24.5 million, 12.0% annualized, during the quarter and $73.8 million, 13.0% annualized, from prior year end. Net unrealized losses on securities, net of deferred taxes, were $71.1 million at September 30, 2025, compared to $80.6 million at June 30, 2025 and $98.4 million at December 31, 2024.
Previous 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.
Current wording
Our total nonperforming loans at $24.7 million increased $0.3 million from prior quarter but decreased $2.0 million from prior year end. Accruing loans 90+ days past due at $9.0 million increased $0.6 million from prior quarter but decreased $1.3 million from prior year end. Nonaccrual loans at $15.6 million decreased $0.3 million from prior quarter and $0.7 million from prior year end. Accruing loans 30-89 days past due at $18.5 million decreased $1.6 million from prior quarter but increased $1.7 million from prior year end. Nonaccrual loans to totals loans were 0.3% at September 30, 2025 compared to 0.4% at December 31, 2024. The allowance for credit losses to nonaccrual loans for the quarter ended September 30, 2025 was 377.9% compared to 335.8% at December 31, 2024. 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 82% 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 $1.4 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.
Current wording
We had net loan charge-offs of $2.7 million, an annualized 0.23% of average loans, compared to $1.4 million, an annualized 0.12% of average loans, for the prior quarter and $1.5 million, an annualized 0.14% of average loans, for the prior year same period. Of the net charge-offs for the quarter, $1.2 million were in commercial loans, $0.1 million were in residential loans, $1.2 million were in consumer indirect loans, and $0.2 million were in consumer direct loans. The primary increase in net charge-offs consisted of a $1 million charge-off on one commercial credit totaling $8 million. Year-to-date net charge-offs were $5.7 million, an annualized 0.16% of average loans, compared to $4.5 million, an annualized 0.14% 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 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.
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 September 30, 2025, we had approximately $507.6 million in cash and cash equivalents and approximately $94.2 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 September 30, 2025 and December 31, 2024. As of September 30, 2025, we had a $575.5 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 September 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 September 30, 2025 were deposits with the Federal Reserve of $424.8 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 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.
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 September 30, 2025, available-for-sale (“AFS”) securities comprised 99.6% of the total investment portfolio, and the AFS portfolio was 124.8% of equity capital. Ninety-two percent of the pledge-eligible portfolio was pledged.
Previous 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.
Current wording
We continue to offer a dividend to our shareholders, providing an annualized dividend yield of 3.79%. Our primary source of capital growth is the retention of earnings. Year-to-date cash dividends were $1.47 per share. We retained 62.6% of our earnings for the period compared to 58.6% 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 June 30, 2025 was 13.80%. CTB’s CBLR ratio as of June 30, 2025 was 13.33%.
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 September 30, 2025 was 13.68%. CTB’s CBLR ratio as of September 30, 2025 was 13.21%.