About Community Trust Bank, Inc

CTBI generally relies upon net inflows of cash from financing activities, supplemented by net inflows of cash from operating activities, to provide cash for its investing activities. As is typical of many financial institutions, significant financing activities include deposit gathering, use of short-term borrowing facilities such as federal funds purchased and securities sold under repurchase agreements, and issuance of long-term debt. CTBI's primary investing activities include purchases of securities and loan originations. The investment portfolio continues to consist of high-quality short-term issues. The majority of the investment portfolio is in U.S. government and government sponsored agency issuances. The average life of the portfolio is 2.72 years. Available-for-sale ("AFS") securities comprise approximately 87% of the total investment portfolio. At the end of the second quarter, the AFS portfolio was approximately 146% of equity capital. At June 30, 2007, ninety percent of the pledge eligible portfolio was pledged. 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 July 2000 and in May 2005. During the first six months of 2007, CTBI acquired no shares of CTBI's stock. As of June 30, 2007, a total of 1.9 million shares have been repurchased through this program, leaving 0.6 million shares available for repurchase. In conjunction with maintaining a satisfactory level of liquidity, management monitors the degree of interest rate risk assumed on the consolidated balance sheet. CTBI monitors its interest rate risk by use of the static gap model and dynamic gap model at the one-year interval. CTBI uses the Sendero system to monitor its interest rate risk. The static gap model monitors the difference in interest rate sensitive assets and interest rate sensitive liabilities as a percentage of total assets that mature within the specified time frame. The dynamic gap model goes further in that it assumes that interest rate sensitive assets and liabilities will be reinvested. CTBI desires an interest sensitivity gap of not more than fifteen percent of total assets at the one-year interval. CTBI's principal source of funds used to pay dividends to shareholders and service long-term debt is the dividends it receives from the subsidiary bank. Various federal statutory provisions, in addition to regulatory policies and directives, limit the amount of dividends that subsidiary banks can pay without prior regulatory approval. These restrictions have had no major impact on CTBI's dividend policy or its ability to service long-term debt, nor is it anticipated that they would have any major impact in the foreseeable future. During the remainder of 2007, approximately $60.5 million plus any remaining 2007 net profits can be paid by CTBI's banking subsidiary without prior regulatory approval. The primary source of capital for CTBI is retained earnings. CTBI paid cash dividends of $0.54 per share during the first six months of 2007. Basic earnings per share for the same period was $1.11. CTBI retained 51.4% of earnings for the first six months of 2007. Under guidelines issued by banking regulators, CTBI and its subsidiary bank are required to maintain a minimum Tier 1 risk-based capital ratio of 4% and a minimum total risk-based ratio of 8%. In order to be considered "well-capitalized" CTBI must maintain ratios of 6% and 10%, respectively. Risk-based capital ratios weight the relative risk factors of all assets and consider the risk associated with off-balance sheet items. CTBI must also maintain a minimum Tier 1 leverage ratio of 4%. The well-capitalized ratio for Tier 1 leverage is 5%. CTBI's Tier 1 leverage, Tier 1 risk-based, and total risk-based ratios were 9.71%, 12.32%, and 13.52%, respectively, as of June 30, 2007, all exceeding the threshold for meeting the definition of well-capitalized. As of June 30, 2007, management is not aware of any current recommendations by banking regulatory authorities which, if they were to be implemented, would have, or would be reasonably likely to have, a material adverse impact on CTBI's liquidity, capital resources, or operations.



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Best place to work in the area.
Internal Auditor, Pikeville, KY - May 2, 2015
Best place to work in the area. Management seems to be fair. Pay very low according to industry standards. The area is economically deteriorating.


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Lexington Kentucky, United States
$150 Million
501 to 1,000
Community Trust Bank, Inc website