Community Trust Bancorp (CTBI) in Pikeville, Ky., said Wednesday that its second-quarter earnings climbed 2% from the same period last year, to $12.2 million, due to improved loan quality and lower overhead.
Its earnings per share of 70 cents beat Bloomberg analyst estimates by six cents.
Earnings were aided by a 79% decline in chargeoffs, which allowed the company to reduce its provision for loan losses by 80%, to $735,000. Furthermore, lower deposit insurance premiums helped to reduce noninterest expenses by nearly 3%, to $25.2 million.
Those improvements helped to offset a sharp decline in fee income. The $3.7 billion-asset company said that noninterest income fell 17.3% year over year, to $11 million, due to lower gains on sales of residential loans.
Community Trust's shares rose 0.8% Wednesday to close at $34.04