COMMUNITY TRUST BANCORP INC /KY/ (CTBI)

CIK: 0000350852. SIC: 6022 State Commercial Banks. Latest 10-K as of: 2026-02-27.

SIC breadcrumb: Finance, Insurance, And Real Estate > Depository Institutions > SIC 6022 State Commercial Banks

SEC company page: https://www.sec.gov/edgar/browse/?CIK=350852. Latest filing source: 0001140361-26-007058.

Selected Fundamentals

Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000350852.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

Flow metrics use full-year FY periods from 10-K/10-K/A filings; balance-sheet metrics use FY-end instants. Free cash flow = operating cash flow - capital expenditures. Missing metrics are omitted rather than fabricated.

Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

Financial Charts

Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-08. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000350852.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

Quarterly Charts

Macro Cross-References

• CPIAUCSL - Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
• UNRATE - Unemployment Rate
• FEDFUNDS - Federal Funds Effective Rate
• CES0500000003 - Average Hourly Earnings of All Employees, Total Private
• DFEDTARU - Federal Funds Target Range - Upper Limit
• DFEDTARL - Federal Funds Target Range - Lower Limit
• DGS3MO - Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity
• DGS2 - Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity
• DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
• DGS30 - Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity
• T10Y2Y - 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity
• CPILFESL - Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
• CPIUFDSL - Consumer Price Index for All Urban Consumers: Food
• CPIENGSL - Consumer Price Index for All Urban Consumers: Energy
• CUSR0000SAH1 - Consumer Price Index for All Urban Consumers: Shelter
• PCEPI - Personal Consumption Expenditures: Chain-type Price Index
• PCEPILFE - Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index
• PPIACO - Producer Price Index by Commodity: All Commodities
• T10YIE - 10-Year Breakeven Inflation Rate
• U6RATE - Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons
• PAYEMS - All Employees, Total Nonfarm
• CIVPART - Labor Force Participation Rate
• EMRATIO - Employment-Population Ratio
• UNEMPLOY - Unemployed
• CE16OV - Employment Level
• ICSA - Initial Claims
• JTSJOL - Job Openings: Total Nonfarm
• JTSQUR - Quits: Total Nonfarm
• GDPC1 - Real Gross Domestic Product
• A191RL1Q225SBEA - Real Gross Domestic Product: Percent Change from Preceding Period
• INDPRO - Industrial Production: Total Index
• TCU - Capacity Utilization: Total Index
• HOUST - New Privately-Owned Housing Units Started: Total Units
• PERMIT - New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units
• RSAFS - Advance Retail Sales: Retail Trade
• PCE - Personal Consumption Expenditures
• DSPIC96 - Real Disposable Personal Income
• PSAVERT - Personal Saving Rate
• M2SL - M2
• BOPGSTB - U.S. International Trade in Goods and Services: Balance
• MSPUS - Median Sales Price of Houses Sold for the United States
• HSN1F - New One Family Houses Sold: United States
• RHORUSQ156N - Homeownership Rate in the United States
• TTLCONS - Total Construction Spending: Total Construction in the United States
• RRVRUSQ156N - Rental Vacancy Rate in the United States
• TOTALSL - Total Consumer Credit Owned and Securitized
• REVOLSL - Revolving Consumer Credit Owned and Securitized
• DRCCLACBS - Delinquency Rate on Credit Card Loans, All Commercial Banks
• GDP - Gross Domestic Product
• GPDI - Gross Private Domestic Investment
• GCE - Government Consumption Expenditures and Gross Investment
• PCEC - Personal Consumption Expenditures
• NETEXP - Net Exports of Goods and Services
• GFDEBTN - Federal Debt: Total Public Debt
• GFDEGDQ188S - Federal Debt: Total Public Debt as Percent of Gross Domestic Product
• FYFSD - Federal Surplus or Deficit
• FGRECPT - Federal Government Current Receipts
• FGEXPND - Federal Government: Current Expenditures
• MANEMP - All Employees, Manufacturing
• USCONS - All Employees, Construction
• USTRADE - All Employees, Retail Trade
• USFIRE - All Employees, Financial Activities
• USGOVT - All Employees, Government
• AWHAETP - Average Weekly Hours of All Employees, Total Private
• DGORDER - Manufacturers' New Orders: Durable Goods
• NEWORDER - Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft
• BUSINV - Total Business Inventories
• EXPGS - Exports of Goods and Services
• IMPGS - Imports of Goods and Services
• IR - Import Price Index (End Use): All Commodities
• PPIFIS - Producer Price Index by Commodity: Final Demand

Latest quarter (10-Q)

Latest 10-Q source: 0001140361-26-019739.

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high. Filing date: 2026-05-08. Report date: 2026-03-31.

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand Community Trust Bancorp, Inc. (“CTBI”),
our operations, and our present business environment.  The MD&A is provided as a supplement to, and should be read in conjunction with, our condensed consolidated financial statements and the accompanying notes thereto contained in Part I, Item
1 of this quarterly report, as well as our consolidated financial statements, the accompanying notes thereto, and the related Management’s Discussion and Analysis of Financial Condition and Results of Operations in our annual report on Form 10-K
for the year ended December 31, 2025.

Our Business

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 seventy-eight 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 March 31, 2026, we had total consolidated assets of $6.7 billion and total consolidated deposits, including repurchase agreements, of $5.7 billion.  Total
shareholders’ equity at March 31, 2026 was $871.2 million.  Trust assets under management at March 31, 2026 were $4.3 billion, including CTB’s investment portfolio totaling $1.1 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 depositories for securities, and as providers of
full-service brokerage and insurance services.  For further information, see Item 1 of our annual report on Form 10-K for the year ended December 31, 2025.

40

Results of Operations and Financial Condition

We reported earnings for the first quarter 2026 of $27.2 million, or $1.51 per basic earnings per share, compared to $27.3 million, or $1.51 per basic share, earned during the fourth quarter 2025
and $22.0 million, or $1.22 per basic share, earned during the first quarter 2025.  Total revenue for the quarter was $0.5 million below prior quarter but $8.0 million above prior year same quarter.  Net
interest income for the quarter increased $0.7 million compared to prior quarter and $7.5 million compared to prior year same quarter, and noninterest income decreased $1.2 million compared to prior quarter but increased $0.5 million compared to
prior year same quarter.  Our provision for credit losses for the quarter decreased $0.6 million from prior quarter and $1.3 million from prior year same quarter.  Noninterest expense increased $0.1
million compared to prior quarter and $2.3 million compared to prior year same quarter.

Quarterly Highlights

❖

Net interest income for the quarter of $58.8 million was $0.7 million, or 1.1%, above prior quarter and $7.5 million, or 14.7%, above prior year same quarter, as our net interest margin increased 12 basis points from prior quarter and 22
basis points from prior year same quarter.

❖

Provision for credit losses at $2.3 million for the quarter decreased $0.6 million from prior quarter and $1.3 million from prior year same quarter.

❖

Noninterest income for the quarter of $15.4 million was $1.2 million, or 7.2%, below prior quarter but $0.5 million, or 3.5%, above prior year same quarter.

❖

Noninterest expense for the quarter of $36.5 million was $0.1 million, or 0.2%, above prior quarter and $2.3 million, or 6.8%, above prior year same quarter.

❖

Our loan portfolio at $5.0 billion increased $95.9 million, an annualized 7.9%, for the quarter and $354.3 million, or 7.6%, from March 31, 2025.

❖

We had net loan charge-offs of $1.3 million, an annualized 0.11% of average loans, for the quarter compared to $1.8 million, an annualized 0.14% of average loans, for prior quarter and $1.6 million, an annualized 0.14% of average loans,
for the first quarter 2025.

❖

Our total nonperforming loans at $20.7 million at March 31, 2026 increased $1.6 million for the quarter but decreased $5.8 million from March 31, 2025.  Nonperforming assets at $24.1 million increased $1.9 million for the quarter but
decreased $7.2 million from March 31, 2025.

❖

Deposits, including repurchase agreements, at $5.7 billion increased $35.1 million, an annualized 2.5%, for the quarter and $375.1 million, or 7.0%, from March 31, 2025.

❖

Shareholders’ equity at $871.2 million increased $15.2 million, an annualized 7.2%, for the quarter and $87.1 million, or 11.1%, from March 31, 2025.

Income Statement Review

Three Months Ended March 31

Change

($ in thousands)

2026

2025

Amount

Percent

Net interest income

$

58,782

$

51,267

$

7,515

14.7

%

Provision for credit losses

2,311

3,568

(1,257

)

(35.2

)

Noninterest income

15,414

14,897

517

3.5

Noninterest expense

36,537

34,208

2,329

6.8

Income taxes

8,156

6,416

1,740

27.1

Net income

$

27,192

$

21,972

$

5,220

23.8

%

41

Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates

Three Months Ended

March 31, 2026

March 31, 2025

(in thousands)

Average

Balances

Interest

Average

Rate

Average

Balances

Interest

Average

Rate

Earning assets:

Loans (1)(2)(3)

$

4,934,257

$

77,962

6.41

%

$

4,533,091

$

72,800

6.51

%

Loans held for sale

97

3

12.54

106

3

11.48

Securities:

U.S. Treasury and agencies

819,748

5,464

2.70

739,512

4,054

2.22

Tax exempt state and political subdivisions (3)

102,336

813

3.22

99,047

822

3.37

Other securities

196,052

1,318

2.73

211,179

1,721

3.31

Federal Reserve Bank and Federal Home Loan Bank stock

10,087

171

6.88

9,853

188

7.74

Federal funds sold

111

0

0.00

0

0

0.00

Interest bearing deposits

262,541

2,313

3.57

253,202

2,708

4.34

Other investments

245

1

1.66

245

1

1.66

Investment in unconsolidated subsidiaries

1,855

27

5.90

1,857

29

6.33

Total earning assets

$

6,327,329

$

88,072

5.65

%

$

5,848,092

$

82,326

5.71

%

Allowance for credit losses

(60,592

)

(55,423

)

Total earnings assets, net of allowance for credit losses

6,266,737

5,792,669

Nonearning assets:

Cash and due from banks

57,952

54,677

Premises and equipment and right of use assets, net

68,316

65,011

Other assets

276,396

264,032

Total assets

$

6,669,401

$

6,176,389

Interest bearing liabilities:

Deposits:

Savings and demand deposits

$

2,585,432

$

12,131

1.90

%

$

2,479,835

$

14,400

2.35

%

Time deposits

1,541,297

13,316

3.50

1,356,907

13,058

3.90

Repurchase agreements and federal funds purchased

299,563

2,599

3.52

233,970

2,318

4.02

Advances from Federal Home Loan Bank

289

0

0.00

311

0

0.00

Long-term debt

63,756

873

5.55

63,989

971

6.15

Finance lease liability

4,492

54

4.88

3,439

40

4.72

Total interest bearing liabilities

$

4,494,829

$

28,973

2.61

%

$

4,138,451

$

30,787

3.02

%

Noninterest bearing liabilities:

Demand deposits

1,236,396

1,206,681

Other liabilities

64,450

56,350

Total liabilities

5,795,675

5,401,482

Shareholders’ equity

873,726

774,907

Total liabilities and shareholders’ equity

$

6,669,401

$

6,176,389

Net interest income, tax equivalent

$

59,099

$

51,539

Less tax equivalent interest income

317

272

Net interest income

$

58,782

$

51,267

Net interest spread

3.04

%

2.69

%

Benefit of interest free funding

0.75

0.88

Net interest margin

3.79

%

3.57

%

(1) Interest includes fees on loans of $0.6 million for each of the three months ended March 31, 2026 and March 31, 2025.

(2) Loan balances include deferred loan origination costs and principal balances on nonaccrual loans.

(3) Tax exempt income on securities and loans is reported on a fully taxable equivalent basis using a 24.95% rate.

42

Net Interest Differential

The following table illustrates the approximate effect of volume and rate changes on net interest differentials between the three months ended March 31, 2026 and March 31, 2025.

Three Months Ended March 31

Total Change

Change Due to

(in thousands)

2026/2025

Volume

Rate

Interest income:

Loans

$

5,162

$

104,517

$

(99,355

)

Loans held for sale

0

(4

)

4

U.S. Treasury and agencies

1,410

7,757

(6,347

)

Tax exempt state and political subdivisions

(9

)

441

(450

)

Other securities

(403

)

(2,131

)

1,728

Federal Reserve Bank and Federal Home Loan Bank stock

(17

)

72

(89

)

Federal funds sold

0

0

0

Interest bearing deposits

(395

)

1,593

(1,988

)

Other investments

0

0

0

Investment in unconsolidated subsidiaries

(2

)

(1

)

(1

)

Total interest income

5,746

112,244

(106,498

)

Interest expense:

Savings and demand deposits

(2,269

)

9,734

(12,003

)

Time deposits

258

27,483

(27,225

)

Repurchase agreements and federal funds purchased

281

9,768

(9,487

)

Advances from Federal Home Loan Bank

0

0

0

Long-term debt

(98

)

(58

)

(40

)

Finance lease liability

14

208

(194

)

Total interest expense

(1,814

)

47,135

(48,949

)

Net interest income

$

7,560

$

65,109

$

(57,549

)

For purposes of the above table, changes which are due to both rate and volume are allocated based on a percentage basis, using the absolute values of rate and volume variance as a basis for
percentages.  Income is stated at a fully taxable equivalent basis, using a 24.95% tax rate.

          Net interest income for the quarter of $58.8 million was $0.7 million, or 1.1%, above prior quarter and $7.5 million, or 14.7%, above prior year same quarter, as our net interest margin, on a fully tax
equivalent basis, increased 12 basis points from prior quarter and 22 basis points from prior year same quarter.  Our quarterly average earning assets increased $5.4 million, an annualized 0.3%, from prior quarter and $479.2 million, or 8.2%, from
prior year same quarter.  Our yield on average earning assets increased 1 basis point from prior quarter but decreased 6 basis points from prior year same quarter, while our cost of funds decreased 17 basis points from prior quarter and 41 basis
points from prior year same quarter.  Our ratio of average loans to deposits, including repurchase agreements, was 87.2% for the quarter compared to 84.9% for prior quarter and 85.9% for same quarter prior year.

43

Provision for Credit Losses

Our provision for credit losses at $2.3 million for the quarter decreased $0.6 million from prior quarter and $1.3 million from prior year same quarter. 
Of the provision for the quarter, $2.5 million was attributable to the allowance for credit losses, with an expense recovery of $0.2 million recognized in the provision for unfunded commitments.

Noninterest Income

Percent Change

1Q 2026 Compared to:

($ in thousands)

1Q

2026

4Q

2025

1Q

2025

4Q

2025

1Q

2025

Deposit related fees

$

7,155

$

7,537

$

6,822

(5.1

)%

4.9

%

Trust and wealth management income

4,462

4,422

3,98

[Excerpt truncated for page length; source filing is linked above.]

Latest 10-K MD&A

Extracted from Item 7 to the first post-MD&A boundary after HTML sanitization. Confidence: high. Filing date: 2026-02-27. Report date: 2025-12-31.

Item 7.

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

Overview

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to help the reader understand Community Trust Bancorp, Inc., our
operations, and our present business environment.  The MD&A is provided as a supplement to—and should be read in conjunction with—our consolidated financial statements and the accompanying notes thereto contained in Item 8 of this annual
report.

Our Business

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 December 31, 2025, we had total consolidated assets of $6.7 billion and total consolidated deposits, including repurchase agreements, of $5.7 billion.  Total
shareholders’ equity at December 31, 2025 was $856.1 million.  Trust assets under management at December 31, 2025 were $4.1 billion, including CTB’s investment portfolio totaling $1.1 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 depositories for securities, and as providers of
full-service brokerage, and insurance services.  For further information, see Item 1 of this annual report.

22

Table of Contents

Financial Goals and Performance

The following table shows the primary measurements used by management to assess annual performance.  The goals in the table below should not be viewed as a forecast of our performance for 2026. 
Rather, the goals represent a range of target performance for 2026.  There is no assurance that any or all of these goals will be achieved.  See “Cautionary Statement Regarding Forward Looking Statements.”

2025 Goals

2025 Performance

2026 Goals

Basic earnings per share

$4.86 - $5.06

$5.44

$5.78 - $6.02

Net income

$88.0 - $91.6 million

$98.1 million

$105.1 - $109.3 million

ROAA

1.41% - 1.46%

1.53%

1.53% - $1.59%

ROAE

11.17% - 11.62%

12.07%

11.67% - 12.15%

Revenues

$261.6 - $272.3 million

$282.6 million

$294.7 - $306.7 million

Noninterest revenue as % of total revenue

23.50% - 25.50%

22.41%

22.0% - 24.5%

Assets

$6.19 - $6.57 billion

$6.68 billion

$6.80 - $7.23 billion

Loans

$4.53 - $4.71 billion

$4.89 billion

$5.02 - $5.22 billion

Deposits, including repurchase agreements

$5.32 - $5.54 billion

$5.70 billion

$5.83 - $6.07 billion

Shareholders’ equity

$797.8 - $830.3 million

$856.1 million

$923.9 - $961.6 million

Results of Operations and Financial Condition

We reported record earnings of $98.1 million, or $5.44 per basic share, for the year ended December 31, 2025 compared to $82.8 million, or $4.61 per basic share, for the year ended December 31,
2024.  Total revenue for 2025 was $34.0 million above prior year, as net interest revenue increased $33.0 million and noninterest income increased $1.1 million compared to prior year.  Our provision for credit losses for 2025 increased $1.5
million over prior year, and our noninterest expense increased $12.1 million over prior year.

23

Table of Contents

2025 Highlights

❖

Net interest income for the year of $219.0 million was $33.0 million, or 17.7%, above prior year, as our net interest margin increased 26 basis points from prior year.

❖

Provision for credit losses at $12.4 million for the year increased $1.5 million from prior year.

❖

Noninterest income for the year of $63.6 million was $1.1 million, or 1.7%, above prior year.

❖

Noninterest expense for the year of $143.1 million was $12.1 million, or 9.3%, above prior year.

❖

Our loan portfolio at $4.9 billion increased $408.3 million, or 9.1%, from prior year end.

❖

We had net loan charge-offs of $7.4 million, or 0.16% of average loans, for the year 2025 compared to $5.5 million, or 0.13% of average loans, for the year 2024.

❖

Our total nonperforming loans at $19.2 million decreased $7.5 million, or 28.2%, from prior year end.  Nonperforming assets at $22.2 million decreased $8.1 million from prior year end.

❖

Deposits, including repurchase agreements, at $5.7 billion increased $387.5 million, or 7.3%, from prior year end.

❖

Shareholders’ equity at $856.1 million increased $98.5 million, or 13.0%, from prior year end.

Income Statement Review

(dollars in thousands)

Change 2025 vs. 2024

Year Ended December 31

2025

2024

Amount

Percent

Net interest income

$

218,978

$

185,995

$

32,983

17.7

%

Provision for credit losses

12,436

10,951

1,485

13.6

Noninterest income

63,617

62,565

1,052

1.7

Noninterest expense

143,067

130,923

12,144

9.3

Income taxes

29,034

23,873

5,161

21.6

Net income

$

98,058

$

82,813

$

15,245

18.4

%

24

Table of Contents

Consolidated Average Balance Sheets and Taxable Equivalent Income/Expense and Yields/Rates

2025

2024

(in thousands)

Average

Balances

Interest

Average

Rate

Average

Balances

Interest

Average

Rate

Earning assets:

Loans (1)(2)(3)

$

4,690,521

$

304,894

6.50

%

$

4,247,762

$

274,886

6.47

%

Loans held for sale

182

25

13.74

165

24

14.55

Securities:

U.S. Treasury and agencies

730,797

17,230

2.36

775,788

16,526

2.13

Tax exempt state and political subdivisions (3)

98,916

3,265

3.30

102,783

3,401

3.31

Other securities

207,120

6,436

3.11

227,116

8,427

3.71

Federal Reserve Bank and Federal Home Loan Bank stock

10,199

749

7.34

10,099

783

7.75

Federal funds sold

185

8

4.32

19

1

5.26

Interest bearing deposits

337,538

14,172

4.20

204,113

10,396

5.09

Other investments

245

6

2.45

245

6

2.45

Investment in unconsolidated subsidiaries

1,856

114

6.14

1,858

132

7.10

Total earning assets

$

6,077,559

$

346,899

5.71

%

$

5,569,948

$

314,582

5.65

%

Allowance for credit losses

(57,468

)

(51,749

)

6,020,091

5,518,199

Nonearning assets:

Cash and due from banks

56,003

58,714

Premises and equipment and right of use assets, net

67,048

62,584

Other assets

267,324

254,498

Total assets

$

6,410,466

$

5,893,995

Interest bearing liabilities:

Deposits:

Savings and demand deposits

$

2,497,537

$

56,626

2.27

%

$

2,309,430

$

62,812

2.72

%

Time deposits

1,478,344

56,121

3.80

1,260,730

49,704

3.94

Repurchase agreements and federal funds purchased

255,055

10,012

3.93

229,408

10,393

4.53

Advances from Federal Home Loan Bank

577

12

2.08

597

16

2.68

Long-term debt

63,901

3,783

5.92

64,130

4,365

6.81

Finance lease liability

3,818

187

4.90

3,438

158

4.60

Total interest bearing liabilities

$

4,299,232

$

126,741

2.95

%

$

3,867,733

$

127,448

3.30

%

Noninterest bearing liabilities:

Demand deposits

1,239,531

1,238,101

Other liabilities

59,541

56,042

Total liabilities

5,598,304

5,161,876

Shareholders’ equity

812,162

732,119

Total liabilities and shareholders’ equity

$

6,410,466

$

5,893,995

Net interest income, tax equivalent

$

220,158

$

187,134

Less tax equivalent interest income

1,180

1,139

Net interest income

$

218,978

$

185,995

Net interest spread

2.76

%

2.35

%

Benefit of interest free funding

0.86

1.01

Net interest margin

3.62

%

3.36

%

(1) Interest includes fees on loans of $2,284 and $1,998 in 2025 and 2024, respectively.

(2) Loan balances include deferred loan origination costs and principal balances on nonaccrual loans.

(3) Tax exempt income on securities and loans is reported on a fully taxable equivalent basis using a 24.95% rate.

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Table of Contents

Net Interest Differential

The following table illustrates the approximate effect of volume and rate changes on net interest differentials between 2025 and 2024.

Total

Change

Change Due to

(in thousands)

2025/2024

Volume

Rate

Interest income:

Loans

$

30,008

$

28,775

$

1,233

Loans held for sale

1

2

(1

)

U.S. Treasury and agencies

704

(922

)

1,626

Tax exempt state and political subdivisions

(136

)

(128

)

(8

)

Other securities

(1,991

)

(784

)

(1,207

)

Federal Reserve Bank and Federal Home Loan Bank stock

(34

)

8

(42

)

Federal funds sold

7

7

0

Interest bearing deposits

3,776

5,855

(2,079

)

Other investments

0

0

0

Investment in unconsolidated subsidiaries

(18

)

0

(18

)

Total interest income

32,317

32,813

(496

)

Interest expense:

Savings and demand deposits

(6,186

)

4,836

(11,022

)

Time deposits

6,417

8,317

(1,900

)

Repurchase agreements and federal funds purchased

(381

)

1,091

(1,472

)

Advances from Federal Home Loan Bank

(4

)

(1

)

(3

)

Long-term debt

(582

)

(16

)

(566

)

Finance lease liability

29

18

11

Total interest expense

(707

)

14,245

(14,952

)

Net interest income

$

33,024

$

18,568

$

14,456

For purposes of the above table, changes which are due to both rate and volume are allocated based on a percentage basis, using the absolute values of rate and volume variance as a basis for
percentages.  Income is stated at a fully taxable equivalent basis, using a 24.95% tax rate.

Net interest income for the year ended December 31, 2025 of $219.0 million increased $33.0 million, or 17.7%, from prior year with an increase in average earning assets for the year 2025 of
$507.6 million, or 9.1%.  Our yield on average earning assets for the year 2025 increased 6 basis points from prior year, while our cost of interest bearing funds decreased 35 basis points.  Our net interest margin, on a fully tax equivalent
basis, for the year 2025 increased 26 basis points from the year ended December 31, 2024.  Average loans to deposits, including repurchase agreements, for the year ended December 31, 2025 were 85.8% compared to 84.3% for the year ended December
31, 2024.

Provision for Credit Losses

Provision for credit losses for the year 2025 was $12.4 million compared to $11.0 million during the year 2024.  Of the provision for the year, $12.5 million was allotted to fund changes in loan
volume and composition, $0.1 million was allotted based on quantitative and qualitative factors, and $0.2 million was credited against the provision for unfunded commitments.  See below for discussion of our allowance for credit losses.

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Table of Contents

Noninterest Income

(dollars in thousands)

Year Ended December 31

2025

2024

Percent

Change

Deposit related fees

$

29,840

$

29,824

0.1

%

Trust and wealth management income

16,772

14,921

12.4

Gains on sales of loans

320

294

8.7

Loan related fees

4,043

4,957

(18.4

)

Bank owned life insurance revenue

4,460

5,236

(14.8

)

Brokerage revenue

2,130

2,272

(6.3

)

Other

6,052

5,061

19.6

Total noninterest income

$

63,617

$

62,565

1.7

%

Noninterest income for the year 2025 was impacted year over year by increases in trust and wealth management income ($1.9 million), insurance commissions ($0.4 million), and net gains on the sale
of fixed assets ($0.5 million), partially offset by decreases in loan related fees ($0.9 million), securities gains ($0.3 million), and bank owned life insurance revenue ($0.8 million).  The decrease in loan related fees resulted primarily from
the fluctuation in the fair market value of our mortgage servicing rights.  The variance in securities gains primarily resulted from changes in the valuation of our equity securities.

In an attempt to modernize our delivery channel in the Mt. Sterling Market, we consolidated two of our branches into a newly constructed modern branch which opened in February 2026.  During the
fourth quarter of 2025, we recognized the sale of one of the branch locations, along with a parking lot, resulting in a $0.5 million gain on the sale of fixed assets.  We also donated one of the branch locations, which resulted in a $0.4
million contribution expense.

Noninterest Expense

(dollars in thousands)

Year Ended December 31

2025

2024

Percent

Change

Salaries

$

54,830

$

52,757

3.9

%

Employee benefits

30,649

26,670

14.9

Net occupancy and equipment

13,246

12,204

8.5

Data processing

12,637

11,172

13.1

Legal and professional fees

4,290

3,873

10.8

Advertising and marketing

3,167

3,130

1.2

Taxes other than property and payroll

2,353

1,754

34.1

Other

21,895

19,363

13.1

Total noninterest expense

$

143,067

$

130,923

9.3

%

Noninterest expense for the year 2025 was primarily impacted by increased expenses year over year in personnel ($6.1 million), data processing ($1.5 million), occupancy and equipment ($1.0
million), taxes other than property and payroll ($0.6 million), legal fees ($0.5 million), and contributions ($0.7 million).  The year over year increase in personnel expense included increases in salaries ($2.1 million), bonuses and incentives
($1.9 million), and other employee benefits ($2.1 million).  The increase in contribution expense was primarily a result of the $0.4 million contribution expense resulting from a donation of one of our Mt. Sterling branch locations discussed
above in the Noninterest Income section.

Please refer to our annual report on Form 10-K for the year ended December 31, 2024 for detailed income discussion related to the year 2023.

Balance Sheet Review

CTBI’s total assets at $6.7 billion increased $490.9 million, or 7.9%, from December 31, 2024.  Loans outstanding at December 31, 2025 were $4.9 billion, increasing $408.3 million, or 9.1%, year
over year.  The increase in loans from prior year included a $220.6 million increase in the commercial loan portfolio, a $182.8 million increase in the residential loan portfolio, and a $12.2 million increase in the indirect loan portfolio,
partially offset by a $7.3 million decrease in the consumer direct loan portfolio.  CTBI’s investment portfolio increased $65.4 million, or 6.2%, from December 31, 2024.  Deposits in other banks increased $4.3 million from December 31, 2024. 
Deposits, including repurchase agreements, at $5.7 billion increased $387.5 million, or 7.3%, from December 31, 2024.  CTBI is not dependent on any one customer or group of customers for their source of deposits.  As of December 31, 2025, two
customers accounted for 3% each of our $5.4 billion in deposits.  Only two customer relationships accounted for more than 1% each.

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Table of Contents

Shareholders’ equity at December 31, 2025 of $856.1 million was a $98.5 million, or 13.0%, increase from the $757.6 million at December 31, 2024.  Net unrealized losses on securities, net of tax,
were $64.8 million at December 31, 2025, compared to $98.4 million at December 31, 2024.  Management has the ability and intent to hold these securities to recovery or maturity.  CTBI’s annualized dividend yield to shareholders as of December 31,
2025 was 3.75%.

Loans

(dollars in thousands)

December 31, 2025

Loan Category

Balance

Variance

from Prior

Year

Net (Charge-Offs)/

Recoveries

Nonperforming

ACL

Commercial:

Hotel/motel

$

497,764

8.5

%

$

0

$

0

$

6,902

Commercial real estate residential

580,652

14.2

(292

)

2,952

6,397

Commercial real estate nonresidential

959,915

11.0

(1,363

)

4,245

11,630

Dealer floorplans

83,812

(1.3

)

0

0

798

Commercial other

371,132

4.4

(1,366

)

1,823

3,619

Total commercial

2,493,275

9.7

(3,021

)

9,020

29,346

Residential:

Real estate mortgage

1,206,820

15.7

(216

)

8,527

14,047

Home equity

186,798

11.6

12

887

1,277

Total residential

1,393,618

15.1

(204

)

9,414

15,324

Consumer:

Consumer direct

145,591

(4.7

)

(620

)

51

1,971

Consumer indirect

862,458

1.4

(3,586

)

677

13,528

Total consumer

1,008,049

0.5

(4,206

)

728

15,499

Total loans

$

4,894,942

9.1

%

(7,431

)

$

19,162

60,169

Total Deposits and Repurchase Agreements

(dollars in thousands)

2025

2024

Percent

Change

Noninterest bearing deposits

$

1,263,243

$

1,242,676

1.7

%

Interest bearing deposits

Interest checking

195,458

167,736

16.5

Money market savings

1,877,815

1,781,415

5.4

Savings accounts

499,276

511,378

(2.4

)

Time deposits

1,553,266

1,366,984

13.6

Repurchase agreements

308,799

240,166

28.6

Total interest bearing deposits and repurchase agreements

4,434,614

4,067,679

9.0

Total deposits and repurchase agreements

$

5,697,857

$

5,310,355

7.3

%

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Table of Contents

Asset Quality

Our total nonperforming loans were $19.2 million, or 0.39% of total loans, at December 31, 2025 compared to $26.7 million, or 0.59% of total loans, at December 31, 2024.  Accruing loans 90+ days
past due at $10.6 million increased $0.3 million from prior year end.  Nonaccrual loans at $8.5 million decreased $7.8 million from prior year end.  Accruing loans 30-89 days past due at $20.2 million increased $3.3 million from prior year end. 
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 consolidated financial statements contained herein.

          Net loan charge-offs were $7.4 million, 0.16% of average loans, for the year ended December 31, 2025, compared to $5.5 million, 0.13% of average loans, for the year ended December 31, 2024.  Of the net
charge-offs for the year, $3.0 million were in commercial loans, $0.2 million were in residential loans, $3.6 million were in consumer indirect loans, and $0.6 million were in consumer direct loans.

Allowance for Credit Losses

Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2025 was 314.0% compared to 206.0% at December 31, 2024.  Nonaccrual loans to totals loans were 0.2% at
December 31, 2025 compared to 0.4% at December 31, 2024.  The allowance for credit losses to nonaccrual loans at December 31, 2025 was 704.6% compared to 335.8% at December 31, 2024.  Our credit loss reserve as a percentage of total loans
outstanding at December 31, 2025 remained at 1.23% from December 31, 2024.  See note 4 to our consolidated financial statements for additional information regarding our allowance for credit losses.

Liquidity and Market Risk

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 December 31, 2025, we had approximately $363.7 million in cash and cash equivalents and approximately $174.7 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 December 31, 2025 and December 31, 2024.  As of December 31, 2025, we had a $546.9 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 December 31, 2025 and 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 December 31, 2025 were deposits with the Federal Reserve of $288.1 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.

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Table of Contents

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 December 31, 2025, available-for-sale (“AFS”) securities comprised 99.6% of the total investment portfolio, and the AFS portfolio was 131% of
equity capital.  Eighty-five percent of the pledge-eligible portfolio was pledged.

Contractual Commitments

Our significant contractual obligations and commitments as of December 31, 2025 include debt, lease, and purchase obligations.  As disclosed in the notes to the consolidated financial statements,
we have certain obligations and commitments to make future payments under contracts.

As of December 31, 2025, our outstanding balance on long-term debt was $63.8 million, which includes junior subordinated debentures of $57.8 million and loan related borrowings of $6.0 million. 
The interest payments on long-term debt due in one year or less is $3.2 million, and interest payments on long-term debt due in more than one year is $29.9 million.  The interest on $57.8 million in junior subordinated debentures is calculated
based on the three-month Chicago Mercantile Exchange (“CME”) Term Secured Overnight Financing Rate (“SOFR”), plus a tenor spread adjustment of 0.26161% plus 1.59% until its maturity of June 1, 2037.  The three-month CME Term SOFR rate is
projected using the most likely rate forecast from assumptions incorporated in the interest rate risk model and is determined two business days prior to the interest payment date.  The interest on the $6.0 million in loan related borrowings is
based on a fixed rate of 3.25%.  Repayment of the liability will be provided by the loan payments made by the loan customer.  This principal amount is also guaranteed by the United States Department of Agriculture (the “USDA”).  Interest on
long-term debt assumes the liability will not be prepaid and interest is calculated to maturity.  These assumptions are uncertain, and as a result, the actual payments will differ from the projection due to changes in economic conditions. Refer
to note 9 to the consolidated financial statements contained herein for additional information regarding long-term debt.

As of December 31, 2025, our remaining contractual commitment for operating and finance leases due in one year or less was $2.2 million and operating leases due in more than one year was $22.4
million.  Refer to note 7 to the consolidated financial statements contained herein for additional information regarding leases.

Commitments to extend credit and standby letters of credit do not necessarily represent future cash requirements in that these commitments often expire without being drawn upon.   As of December
31, 2025, the commitments due in one year or less for other commitments was $742.3 million and commitments due in more than one year was $256.6 million.  Refer to note 14 to the consolidated financial statements contained herein for additional
information regarding other commitments.

Our purchase obligations consist of agreements to purchase goods and services entered into in the ordinary course of business.  As of December 31, 2025, the value of our non-cancellable
unconditional purchase obligations was $15.3 million.

These contractual obligations impact our liquidity and capital resource needs.  We believe our liquidity sources as mentioned in the liquidity discussion are adequate to meet our future cash
requirements.

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Table of Contents

Investment Maturities

Estimated Maturity at December 31, 2025

Within 1 Year

1-5 Years

5-10 Years

After 10 Years

Total Fair Value

Amortized Cost

(in thousands)

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

Yield

Amount

U.S. Treasury, government agencies, and government sponsored agency mortgage-backed securities

$

87,594

0.83

%

$

258,909

2.40

%

$

55,024

1.82

%

$

422,494

3.23

%

$

824,024

2.62

%

$

874,012

State and political subdivisions

1,478

3.38

62,230

2.46

112,432

2.27

90,751

2.58

266,891

2.43

303,118

Asset-backed securities

0

0.00

2,063

5.07

6,909

5.43

20,835

5.13

29,807

5.20

29,808

Total

$

89,072

0.87

%

$

323,202

2.43

%

$

174,365

2.25

%

$

534,080

3.19

%

$

1,120,719

2.64

%

$

1,206,938

The calculations of the weighted average yields for each maturity category are based upon yield weighted by the respective costs of the securities.  The weighted average rates on state and
political subdivisions are computed on a taxable equivalent basis using a 24.95% tax rate.

Loan Maturities

The following table shows the amounts of loans (excluding residential mortgages of 1-4 family residences, consumer loans, and lease financing) which, based on the remaining scheduled repayments
of principal are due in the periods indicated.  Also, the amounts are classified according to sensitivity to changes in interest rates (fixed, variable).

CTB has changed the origination process on commercial and residential construction loans to be almost exclusively construction to permanent financing with only one note.  This change is resulting
in a greater number of loans showing in the after five year maturity for construction loans, even though those loans will be converted from construction loans to permanent financing by a change in the internal coding on the loans while the
maturity date remains the same.

Maturity at December 31, 2025

After one

Within

but within

After

(in thousands)

one year

five years

five years

Total

Commercial secured by real estate and commercial other

$

313,723

$

203,532

$

1,809,683

$

2,326,938

Commercial and real estate construction

90,778

11,598

211,348

313,724

Total

$

404,501

$

215,130

$

2,021,031

$

2,640,662

Rate sensitivity:

Predetermined rate

$

74,703

$

91,492

$

82,921

$

249,116

Adjustable rate

329,798

123,638

1,938,110

2,391,546

$

404,501

$

215,130

$

2,021,031

$

2,640,662

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Table of Contents

Deposit Maturities

Maturities of uninsured certificates of deposit and other time deposits are presented below:

Maturities by Period at December 31, 2025

(in thousands)

Total

Within 1

Year

2 Years

3 Years

4 Years

5 Years

After

5 Years

Uninsured certificates of deposits and other time deposits greater than $250,000

$

468,664

$

445,202

$

10,537

$

9,116

$

2,665

$

1,144

$

0

As of December 31, 2025, we had approximately $1.6 million in uninsured deposits.  CTBI has no brokered deposits.

Interest Rate Risk

          We consider interest rate risk one of our most significant market risks.  Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates.  Consistency of our
net interest revenue is largely dependent upon the effective management of interest rate risk.  We employ a variety of measurement techniques to identify and manage our interest rate risk, including the use of an earnings simulation model to
analyze net interest income sensitivity to changing interest rates.  The model is based on actual cash flows and repricing characteristics for on and off-balance sheet instruments and incorporates market-based assumptions regarding the effect of
changing interest rates on the prepayment rates of certain assets and liabilities.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into the model.  These
assumptions are inherently uncertain, and as a result, the model cannot precisely measure net interest income or precisely predict the impact of fluctuations in interest rates on net interest income.  Actual results will differ from simulated
results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.

CTBI’s Asset/Liability Management Committee (ALCO), which includes executive and senior management representatives and reports to the Board of Directors, monitors and manages interest rate risk
within Board-approved policy limits.  Our current exposure to interest rate risks is determined by measuring the anticipated change in net interest income spread evenly over the twelve-month period.

          The following table shows our estimated earnings sensitivity profile as of December 31, 2025:

Change in Interest Rates

(basis points)

Percentage Change in Net Interest Income

(12 Months) (%)

+400

4.77

+300

3.61

+200

2.43

+100

1.22

-100

(1.30)

-200

(2.21)

-300

(2.85)

-400

(3.45)

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The following table shows our estimated earnings sensitivity profile as of December 31, 2024:

Change in Interest Rates

(basis points)

Percentage Change in Net Interest Income

(12 Months) (%)

+400

3.83

+300

2.88

+200

1.93

+100

0.98

-100

(1.34)

-200

(2.76)

-300

(4.07)

-400

(5.32)

The simulation model used the yield curve spread evenly over a twelve-month period.  The measurement at December 31, 2025 estimates that our net interest income in an up-rate environment would
increase by 4.77% at a 400 basis point change, increase by 3.61% at a 300 basis point change, increase by 2.43% at a 200 basis point change, and increase by 1.22% at a 100 basis point change.  In a down-rate environment, net interest income would
decrease 1.30% at a 100 basis point change, decrease by 2.21% at a 200 basis point change, decrease by 2.85% at a 300 basis point change, and decrease by 3.45% at a 400 basis point change over one year.  We actively manage our balance sheet and
limit our exposure to long-term fixed rate financial instruments, including loans.  In order to reduce the exposure to interest rate fluctuations and to manage liquidity, we have developed sale procedures for several types of interest-sensitive
assets.  Primarily all long-term, fixed rate single family residential mortgage loans underwritten according to Federal Home Loan Mortgage Corporation guidelines are sold for cash upon origination or originated under terms where they could be
sold.  Periodically, additional assets such as commercial loans are also sold.  In 2025 and 2024, proceeds of $11.9 million and $11.6 million, respectively, were realized on the sale of fixed rate residential mortgages.  We focus our efforts on
consistent net interest revenue and net interest margin growth through each of the retail and wholesale business lines.  We do not currently engage in trading activities.

The preceding analysis was prepared using a rate ramp analysis which attempts to spread changes evenly over a specified time period as opposed to a rate shock which measures the impact of an
immediate change.  Had these measurements been prepared using the rate shock method, the results would vary.

Capital Resources

We continue to grow our shareholders’ equity while also providing an annual dividend yield for the year 2025 of 3.75% to shareholders.  Shareholders’ equity increased 13.0% from December 31, 2024
to $856.1 million at December 31, 2025.  Our primary source of capital growth is the retention of earnings.  Cash dividends were $2.00 per share for 2025 compared to $1.86 per share for 2024.  We retained 63.2% of our earnings in 2025 compared to
59.7% in 2024.

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 December 31, 2025 was 13.64%.  CTB’s CBLR ratio as of December 31, 2025 was 13.19%.

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As of December 31, 2025, we are not aware of any current recommendations by banking regulatory authorities which, if they were to be implemented, would have, or are reasonably likely to have, a
material adverse impact on our liquidity, capital resources, or operations.

Impact of Inflation, Changing Prices, and Economic Conditions

The majority of our assets and liabilities are monetary in nature.  Therefore, CTBI differs greatly from most commercial and industrial companies that have significant investment in nonmonetary
assets, such as fixed assets and inventories.  However, inflation does have an important impact on the growth of assets in the banking industry and on the resulting need to increase equity capital at higher than normal rates in order to maintain
an appropriate equity to assets ratio.  Inflation also affects other expenses, which tend to rise during periods of general inflation.

We believe one of the most significant impacts on financial and operating results is our ability to react to changes in interest rates.  We seek to maintain an essentially balanced position
between interest rate sensitive assets and liabilities in order to protect against the effects of wide interest rate fluctuations.

Stock Repurchase Program

CTBI’s stock repurchase program began in December 1998 with the authorization to acquire up to 500,000 shares and was increased by an additional 1,000,000 shares in each of July 2000, May 2003,
and March 2020.  As of December 31, 2025, a total of 2,465,294 shares have been repurchased through this program, leaving 1,034,706 shares remaining under our current repurchase authorization.  The following table shows Board authorizations and
repurchases made through the stock repurchase program for the years 1998 through 2025:

Board Authorizations

Repurchases*

Shares Available for

Repurchase

Average Price ($)

# of Shares

1998

500,000

-

0

1999

0

14.45

144,669

2000

1,000,000

10.25

763,470

2001

0

13.35

489,440

2002

0

17.71

396,316

2003

1,000,000

19.62

259,235

2004

0

23.14

60,500

2005

0

-

0

2006

0

-

0

2007

0

28.56

216,150

2008

0

25.53

102,850

2009-2019

0

-

0

2020

1,000,000

33.64

32,664

2021

0

-

0

2022

0

-

0

2023

0

-

0

2024

0

-

0

2025

0

-

0

Total

3,500,000

16.17

2,465,294

1,034,706

*Repurchased shares and average prices have been restated to reflect stock dividends that have occurred; however, board authorized shares have not been adjusted.

In August 2022, the Inflation Reduction Act of 2022 (the “IRA”) was enacted.  Among other things, the IRA imposes a new 1% excise tax on the fair market value of stock repurchased after December
31, 2022 by publicly traded U.S. corporations like CTBI.  With certain exceptions, the value of stock repurchased is determined net of stock issued in the year, including shares issued pursuant to compensatory arrangements.

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Critical Accounting Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the appropriate application of
certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.  Since future events and their impact
cannot be determined with certainty, the actual results will inevitably differ from our estimates.  Such differences could be material to the consolidated financial statements.

We believe the application of accounting policies and the estimates required therein are reasonable.  These accounting policies and estimates are constantly reevaluated, and adjustments are made
when facts and circumstances dictate a change.  Historically, we have found our application of accounting estimates to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

Our accounting policies are described in note 1 to the consolidated financial statements contained herein.  We have identified the following critical accounting estimates:

Allowance for Credit Losses – We disaggregate our portfolio loans into portfolio segments for purposes of
determining the ACL.  Our loan portfolio segments include commercial, residential mortgage, and consumer.  We further disaggregate our portfolio segments into classes for purposes of monitoring and assessing credit quality based on certain risk
characteristics.  For an analysis of CTBI’s ACL by portfolio segment and credit quality information by class, refer to note 4 to the consolidated financial statements contained herein.

The ACL is maintained at a level CTBI considers to be adequate and is based on ongoing quarterly assessments and evaluations of the collectability of loans, including historical credit loss
experience, current and forecasted market and economic conditions, and consideration of various qualitative factors that, in management’s judgment, deserve consideration in estimating expected credit losses.  Provisions for credit losses are
recorded for the amounts necessary to adjust the ACL to CTBI’s current estimate of expected credit losses on portfolio loans.  CTBI’s strategy for credit risk management includes a combination of conservative exposure limits significantly below
legal lending limits and conservative underwriting, documentation, and collection standards.  The strategy also emphasizes diversification on a geographic, industry, and customer level, regular credit examinations, and quarterly management
reviews of large credit exposures and loans experiencing deterioration of credit quality.

CTBI’s methodology for determining the ACL requires significant management judgment and includes an estimate of expected credit losses on a collective basis for groups of loans with similar risk
characteristics and specific allowances for loans which are individually evaluated.

Larger commercial loans with balances exceeding $1 million that exhibit probable or observed credit weaknesses and (i) have a criticized risk rating, (ii) are on nonaccrual status, (iii) have a
borrower experiencing financial difficulty with significant payment delay, or (iv) are 90 days or more past due, are individually evaluated for an ACL.  CTBI considers the current value of collateral, credit quality of any guarantees, the
guarantor’s liquidity and willingness to cooperate, the loan structure and other factors when determining the amount of the ACL.  Other factors may include the borrower’s susceptibility to risks presented by the forecasted macroeconomic
environment, the industry and geographic region of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and our evaluation of the borrower’s management.  Significant management judgment is required
when evaluating which of these factors are most relevant in individual circumstances, and when estimating the amount of expected credit losses based on those factors.  When loans are individually evaluated, allowances are determined based on
management’s estimate of the borrower’s ability to repay the loan given the availability of collateral and other sources of cash flow, as well as an evaluation of legal options available to CTBI.  Allowances for individually evaluated loans that
are collateral-dependent are typically measured based on the fair value of the underlying collateral, less expected costs to sell where applicable.  For collateral-dependent financial assets, the credit loss expected may be zero if the fair value
less costs to sell exceeds the amortized cost of the loan.  Loans shall not be included in both collective assessments and individual assessments.  Individually evaluated loans that are not collateral-dependent are measured based on the present
value of expected future cash flows discounted at the loan’s effective interest rate.  Specific allowances on individually evaluated commercial loans, including loans to borrowers experiencing financial difficulty, are reviewed quarterly and
adjusted as necessary based on changing borrower and/or collateral conditions and actual collection and charge-off experience.  Regardless of an initial measurement method, once it is determined that foreclosure is probable, the ACL is measured
based on the fair value of the collateral as of the measurement date.  As a practical expedient, the fair value of the collateral may be used for a loan when determining the ACL for which the repayment is expected to be provided substantially
through the operation or sale of the collateral when the borrower is experiencing financial difficulty.  The fair value shall be adjusted for selling costs when foreclosure is probable.

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Expected credit losses are estimated on a collective basis for loans that are not individually evaluated.  These include commercial loans that do not meet the criteria for individual evaluation
as well as homogeneous loans in the residential mortgage and consumer portfolio segments.  CTBI uses a discounted cash flow (“DCF”) model for all loan segments.  The primary reasons that contributed to this decision were: DCF models allow for the
effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner; the analysis aligns well with other calculations outside of the ACL estimation which will mitigate model risk in other areas; and
peer data is available for certain inputs if first party data is not available or meaningful.  Expected credit losses are estimated on a collective basis for loans that are not individually evaluated.  These include commercial loans that do not
meet the criteria for individual evaluation as well as homogeneous loans in the residential mortgage and consumer portfolio segments.   See note 4 to the consolidated financial statements contained herein for information on CTBI’s risk rating
system.

CTBI’s expected credit loss models consider historical credit loss experience, peer data, current market and economic conditions, and forecasted changes in market and economic conditions if such
forecasts are considered reasonable and supportable.  Generally, CTBI considers our forecasts to be reasonable and supportable for a period of up to one year from the estimation date.  For periods beyond the reasonable and supportable forecast
period, expected credit losses are estimated by reverting to historical loss information on an input basis.  CTBI reverts to a long-run average of the modeled economic factors over four quarters to derive a long-run average probability of
default/loss given default.  CTBI evaluates the length of our reasonable and supportable forecast period, our reversion period, and reversion methodology at least annually, or more often if warranted by economic conditions or other circumstances.

Other qualitative factors are used by CTBI in determining the ACL. These considerations inherently require significant management judgment to determine the appropriate factors to be considered
and the extent of their impact on the ACL estimate.  Qualitative factors are used to capture characteristics in the portfolio that impact expected credit losses but that are not fully captured within CTBI’s expected credit loss models.  These
include adjustments for changes in policies or procedures in underwriting, monitoring or collections, lending and risk management personnel, and results of internal audit and quality control reviews.  These may also include adjustments, when
deemed necessary, for specific idiosyncratic risks such as geopolitical events, natural disasters and their effects on regional borrowers, and changes in product structures.  Qualitative factors may also be used to address the impacts of
unforeseen events on key inputs and assumptions within CTBI’s expected credit loss models, such as the reasonable and supportable forecast period, changes to historical loss information, or changes to the reversion period or methodology.

Overall, the collective evaluation process requires significant management judgment when determining the estimation methodology and inputs into the models, as well as in evaluating the
reasonableness of the modeled results and the appropriateness of qualitative adjustments.  CTBI’s forecasts of market and economic conditions and the internal risk grades assigned to loans in the commercial portfolio segment are examples of
inputs to the expected credit loss models that require significant management judgment.  These inputs have the potential to drive significant variability in the resulting ACL.

The reserve for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated expected credit losses related to unfunded credit facilities and is
included in other liabilities in the consolidated balance sheets.  The determination of the adequacy of the reserve is based upon expected credit losses over the remaining contractual life of the commitments, taking into consideration the current
funded balance and estimated exposure over the reasonable and supportable forecast period.  This process takes into consideration the same risk elements that are analyzed in the determination of the adequacy of CTBI’s ACL, as previously
discussed.