Community Trust Bancorp Inc. of Pikeville, Ky., said Friday that it expects to report its fourth-quarter earnings per share fell roughly a third from a year earlier, to a range of 38 to 40 cents.

For the full year, the $2.9 billion-asset company expects to report a 38% profit decline, to a range of $1.49 to $1.51 a share.

Community Trust said its fourth-quarter results include a $1.1 million other-than-temporary impairment charge on its exposure to Freddie Mac and Fannie Mae auction-rate securities. The company, which took a $13.5 million impairment charge on the securities in the third quarter, said it needed to write its $14.9 million investment down further, because of the stocks' current market value.

It also said it expects to report a 55% increase in its fourth-quarter provision for loan losses, to $3.5 million.

Community Trust said it recorded a $1.1 million decline in the fair value of its mortgage servicing rights.

Its shares fell nearly 6% Friday, to close at $31.79.

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