Community Trust in Kentucky Reports Flat Earnings as Costs Rise

Community Trust Bancorp (CTBI) in Pikeville, Ky., reported flat earnings for the first quarter as higher costs offset an increase in fee income.

The $3.7 billion-asset company's earnings fell less than 1% compared to a year earlier, to $11.8 million, or 76 cents a share.

Net interest income rose less than 1% from a year earlier, to $33.2 million. Average earning assets rose by 2% from the first quarter of 2012. The net interest margin compressed by 3 basis points from a year earlier, to 4.02%.

Noninterest income rose 7% from a year earlier, to $11.9 million, because of higher trust revenue and gains from loan sales. Noninterest expenses rose by 3% from the first quarter of 2012, to $26.3 million, because of higher personnel and infrastructure costs.

Community Trust's loan-loss provision rose 34% from a year earlier, to $1.6 million. Net chargeoffs increased by 22% from the first quarter of 2012, to $1.4 million, while nonaccrual loans fell 16%, to $18.3 million.

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