Community Trust Bancorp Inc (NASDAQ:CTBI) Reports Mixed Q3 2025 Results, Misses Earnings Estimates

Community Trust Bancorp Inc (NASDAQ:CTBI) reported its financial results for the third quarter of 2025, delivering a performance that presented a mixed picture for investors. The regional bank holding company fell short of analyst expectations on key profitability metrics, which appears to have influenced early market sentiment toward the stock.

Earnings Versus Expectations

The third-quarter results revealed notable misses against Wall Street forecasts, particularly on the bottom line. While the company demonstrated fundamental strength in several banking operations, it failed to meet the projected earnings threshold that analysts had anticipated.

• Earnings Per Share: CTBI reported diluted EPS of $1.32, falling below the analyst estimate of $1.41.
• Revenue: The company posted revenue of $71.5 million, which also came in shy of the $73.3 million consensus estimate.

The underperformance on these two critical metrics seems to have driven a negative initial market reaction, with the stock trading lower in pre-market activity following the earnings release.

Quarterly Performance Summary

Beyond the headline misses, the earnings report detailed several important financial trends for the Kentucky-based bank. The quarter was characterized by solid loan growth and net interest income expansion, though these were partially offset by increased provisions for credit losses and rising noninterest expenses.

• Net Income: $23.9 million for Q3 2025, compared to $24.9 million in the previous quarter and $22.1 million in the same quarter last year.
• Net Interest Income: Increased to $55.6 million, up 2.8% from the prior quarter and 17.7% year-over-year.
• Provision for Credit Losses: Rose to $3.9 million, representing increases of $1.8 million from Q2 2025 and $1.1 million from Q3 2024.
• Loan Portfolio: Grew to $4.8 billion, increasing $92.1 million from the end of the second quarter and $443.4 million from September 2024.
• Asset Quality: Nonperforming loans stood at $24.7 million, slightly increased from the previous quarter but down $0.4 million year-over-year.

Balance Sheet and Operational Highlights

The company maintained a strong balance sheet position with continued growth in both assets and deposits. Shareholders' equity reached $831.4 million, increasing $24.5 million during the quarter. The bank's tangible common equity ratio stood at 11.65%, providing a solid capital foundation.

Deposit growth remained robust, with total deposits and repurchase agreements reaching $5.7 billion, representing an increase of $212.2 million from the previous quarter. This growth in low-cost funding sources supported the company's lending activities while maintaining stable liquidity levels.

On the operational front, noninterest expense increased to $36.7 million, up 3.0% from the prior quarter, primarily driven by higher data processing costs, marketing expenses, and personnel-related costs. The efficiency ratio for the quarter was 50.86%, remaining relatively consistent with previous periods.

Looking Ahead

The earnings release did not include specific forward-looking guidance that could be directly compared to analyst estimates for the fourth quarter and full-year 2025. Analysts are currently projecting Q4 2025 revenue of $73.5 million and EPS of $1.40, with full-year 2025 sales estimated at $286.2 million and revenue of $5.46.

For a detailed view of future earnings estimates and historical performance, investors can review additional information on the company's earnings page.

This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.