Community Trust Bancorp, Inc. Annual Report 2019

FY2019 Annual Report · Community Trust Bancorp, Inc.

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2019

ANNUAL REPORT

Cover Printed on

Recycled Paper

Your Company

“We are committed to increasing shareholder value by operating our community banking model with the
core values of fairness, respect, and integrity.”

-Mission Statement

Another Year of Record Earnings

We are pleased that 2019 was once again a year of record earnings for your Company, Community Trust
Bancorp, Inc. Your Company continues to operate with a conservative, efficient model of traditional
community banking, which has been the foundation of our customer service for more than 116 years
and has driven our long history of earnings.

We recognize that there are significant challenges in the current economic climate. Since 1903, we
have successfully met many such challenges and will do so again.

With our focus on community banking, we work to serve local consumers, businessmen and
businesswomen. That is just the beginning of our service; however, we work, through our donations
and volunteered time, to build more prosperous, healthy, and educated individuals and communities
wherever our offices are located.

We are blessed to be a part of the lives of individuals and families, businesses and civic organizations,
and a myriad of other educational and community-based associations. We are cognizant, as a
community leader, of the responsibility that we have to be good stewards of the trust placed in us by all
those who reside in the communities in which we live and work.

We proudly serve each of our four constituents: shareholders, customers, employees, and communities.
Our work for any one of these constituents benefits all of them. We look forward to this next decade,
continuing to build communities, built on trust.

Net Income (in thousands)

2019

2018

2017

2016

2015

$64,540

$59,228

$51,493

$47,346

$46,432

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

To Our Shareholders

Dear Shareholders

Your Company continues to operate with a strong financial performance
allowing us to provide a strong dividend to our shareholders, provide competitive
products and services to our customers, provide good benefits to our 1,000
employees and continue to support our communities and organizations within
our communities to provide a better place for our employees and customers to
live. For over 116 years, we have focused on all four of our constituents…our
shareholders, customers, employees, and communities. We are pleased to share
in your 2019 Annual Report some of the things we do to support our constituents.

Your Company achieved our 5 consecutive year of record earnings with net
income of $64.5 million and basic earnings per share of $3.64. This performance
represents a 1.49% return on average assets and a 10.84% return on average
equity. The Company’s earnings were positively impacted $0.15 per share or
$2.7 million by changes in Kentucky's tax laws converting financial institutions from a franchise taxpayer to a
corporate income taxpayer beginning in 2021 and the related deferred tax adjustments. For more detailed
information, see our Management’s Discussion and Analysis of Financial Condition and Results of Operations
in our annual report on Form 10-K for the year ended December 31, 2019.

Jean R. Hale
Chairman, President and CEO

In July 2019, the Board of Directors approved the 39 consecutive increase in cash dividends to shareholders
increasing the quarterly cash dividend by 5.56% to $0.38 per share from $0.36 per share. At December 31, 2019,
our annualized cash dividend yield to shareholders was 3.26% and our dividend payout ratio was 40.7%. The
earnings of the Company not paid to shareholders as cash dividends are reflected in the 9.0% increase in
shareholders’ equity to $614.9 million from $564.2 million at December 31, 2018. Retained earnings are
utilized for the continued growth of your Company to increase its earnings capacity long term.

The market price of CTBI stock increased 17.7% during 2019 as we had another year of strong financial
performance and the U.S. stock market reacted positively to the continuing growth of the U.S. economy,
although at a slower pace. Unfortunately, during the first months of 2020, the volatility within the stock market
has increased, as there is significant uncertainty of the impact on the U.S. and international economies due to the
coronavirus outbreak. The stock market has experienced declines in pricing, including CTBI. The closing price
of CTBI stock on December 31, 2019 was $46.64 and our closing price on March 10, 2020 was $35.38, a 24%
decline. The Federal Reserve has demonstrated and indicated its continued commitment to support the U.S.
economy as the virus continues to spread throughout the U.S. and internationally, impacting people’s lives and
many components of economic activity.

Economic Conditions Within Our Markets

Economic conditions nationally and in the markets we serve in Kentucky, West Virginia, and Tennessee
continued growing during 2019, although at a slower pace. Although the economy continued to grow and
inflation was controlled, the Federal Reserve felt the need to reduce interest rates three times during the last five
months of 2019 to ensure that the U.S. economy remained on a positive growth trajectory and inflation was
within their targeted range. With the emergence of the coronavirus in 2020, the Federal Reserve reduced interest
rates by 50 basis points on March 3, 2020 and has indicated they will take necessary future actions to support the
U.S. economy. These four rate reductions have had a significantly negative impact on the net interest margins of
financial institutions. The reduction in our net interest margin has a direct impact on our largest source of
income, net interest income.

Economic conditions within most regions of Kentucky have continued to be positive with low unemployment
rates and stable business and consumer activity. Financial institutions continue to operate in a highly
competitive market with both strong bank and non-bank competition for loans. The improvement has been less
in our eastern and northeastern Kentucky regions than in our central and south central regions. Job creation and
out migration of people for employment opportunities continues to be a challenge within the eastern and
northeastern regions. We are actively working in our communities by providing financial support and
volunteerism to improve economic conditions.

Operational Highlights

During 2019, your management continued to focus on the organic growth of your Company. The total assets of
your Company reached $4.4 billion this year, increasing $164.4 million from 2018. We continue to operate in a
highly competitive environment for both loans and deposits. Our loan portfolio grew $40 million, a 1.2%
increase from year-end 2018, while our deposits, including repurchase agreements, grew $93.8 million, or
2.7%, during the same time period. As the Federal Reserve lowered interest rates three times in 2019, we saw a
decline in our net interest margin of 6 basis points to 3.60% from the 3.66% for the year ended 2018.

Your management team continued its focus on improving the asset quality of the Company’s loan portfolio and
reducing its level of foreclosed properties. Although some of our credit metrics increased during 2019 (loans
90+ days past due and nonaccrual loans), our net charge-offs for 2019 of $5.6 million were a reduction from the
$6.4 million of 2018. Our level of foreclosed properties saw a meaningful decline of $7.8 million to $19.5
million from the $27.3 million at year-end 2018.

Strong Financial Performance

We believe the consistently strong financial performance of your Company and our community banking
business model, supporting our four constituents, continues to demonstrate why an investment in CTBI stock is
considered a long-term core value investment. There has been and continues to be significant volatility within
the stock market. The 5-year cumulative total return of CTBI stock has underperformed the NASDAQ Stock
Market and the NASDAQ Bank Stock Index as of December 31, 2019. Stock price movements are generally
reflective of investor views of the current economy or their expectations for future economic conditions, as well
as sectors within the economy.

Our strong history of financial performance can be attributed to many things. Significant among these are the
decision to manage your Company using a community banking business model, the strength and dedicated
service of our directors, a highly qualified management team and their commitment to the execution of our
strategic plan, and the hard work and dedication of our 1,000 employees. We believe challenges provide
opportunities, and with our strong foundation and 116 years of experience, we have a long history of seizing
opportunities for financial success. We are focused on the success of your Company.

Our Board of Directors, Management, and Employees are honored to continue serving our constituents..….Our
Shareholders, Our Customers, Our Employees, and Our Communities. Your loyalty and support are invaluable
to the success of your Company!

Jean R. Hale
Chairman, President and CEO

2019
Annual
Report

(in thousands except ratios, per share amounts, and employees)

Net income
Basic earnings per share
Diluted earnings per share
Cash dividends per share

Average shares outstanding

For the Year

2019

2018

Percentage Change

64,540
3.64
3.64
1.48

17,724

59,228
3.35
3.35
1.38

17,687

9.0
8.7
8.7
7.2

0.2

At Year End
2019

2018

Percentage Change

Total assets
Earning assets
Deposits, incl. repurchase agreements
Loans
Allowance for loan and lease losses
Shareholders’ equity
Book value per share
Market price per common share

Common shares outstanding
Full time equivalent employees

$4,366,003
4,075,600
3,632,489
3,248,664
35,096
614,886
34.56
46.64

17,793
1,000

$4,201,616
3,908,852
3,538,662
3,208,638
35,908
564,150
31.81
39.61

17,733
978

3.9
4.3
2.7
1.2
)
2.3
9.0
8.6
17.7

(

0.3
2.2

Significant Ratios

2019

2018

Percentage Change

For the year

Return on average assets
Return on average common equity
Net interest margin
Net charge-offs to average loans
Efficiency ratio

At year end

Capital ratios:
Equity to assets
Tier 1 leverage
Common equity Tier 1
Tier 1 capital
Total capital
Allowance to net loans
Allowance to nonperforming loans

1.49
10.84
3.60
0.18
60.70

14.08
14.01
17.18
18.94
20.05
1.08
104.39

1.41
10.83
3.66
0.20
60.17

13.43
13.51
16.27
18.12
19.29
1.12
162.73

5.7
0.1
)
(
1.6
)
(
10.0
0.9

4.8
3.7
5.6
4.5
3.9
)
(
3.6
)
(
35.9

Financial Highlights

Earnings Per Share

2019

2018

2017

2016

2015

$3.64

$3.35

$2.92

$2.70

$2.66

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

Dividends Per Share

2019

2018

2017

2016

2015

$1.48

$1.38

$1.30

$1.26

$1.22

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Noninterest Income (in thousands)

2019

2018

2017

2016

2015

2019

2018

2017

2016

2015

$50,184

$51,952

$48,508

$48,441

$46,809

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Efficiency Ratio

60.70%

60.17%

58.66%

58.54%

58.20%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Financial Highlights

(in thousands except per share data)

2019

2018

Percentage Change

Consolidated Statements of Income

Year Ended December 31

Interest income
Interest expense
Net interest income
Provision for loan losses
Noninterest income
Noninterest expense
Income before income taxes
Income tax expense
Net Income

Cash dividends per share
Book value per share

185,398
40,513
144,885
4,819
50,184
118,258
71,992
7,452
64,540

1.48
34.56

171,450
29,295
142,155
6,167
51,952
117,398
70,542
11,314
59,228

1.38
31.81

Average shares outstanding

17,724

17,687

8.1
38.3
1.9
)
(
21.9
)
(
3.4
0.7
2.1
)
(
34.1
9.0

7.2
8.6

0.2

(in thousands)

Assets

Consolidated Balance Sheets

At December 31

2019

2018

Percentage Change

Cash and deposits in other banks
Federal funds sold
Securities
Loans, net of allowance
Other assets

264,928
-
602,314
3,213,568
285,193

144,270
1,100
595,568
3,172,730
287,948

Total Assets

$4,366,003

$4,201,616

Liabilities and Shareholders’ Equity

Deposits
Repurchase agreements
Federal funds purchased
Advances from Federal Home Loan Bank
Long-term debt
Other liabilities

3,405,572
226,917
7,906
415
57,841
52,466

3,305,950
232,712
1,180
436
59,341
37,847

Total Liabilities

3,751,117

3,637,466

Shareholders’ Equity

614,886

564,150

Total Liabilities and Shareholders’ Equity

$4,366,003

$4,201,616

83.6
)
(
100.0
1.1
1.3
)
(
1.0

3.9

3.0
)
(
2.5
570.0
)
(
4.8
)
(
2.5
38.6

3.1

9.0

3.9

Total Assets (in thousands)

2019
Annual
Report

$4,366,003

$4,201,616

$4,136,231

$3,932,169

$3,903,934

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

Shareholders’ Equity (in thousands)

$614,886

$564,150

$530,699

$500,615

$475,583

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

Total Loans (in thousands)

$3,248,664

$3,208,638

$3,122,940

$2,938,371

$2,873,961

$1,000,000

$2,000,000

$3,000,000

$4,000,000

Nonperforming Assets to Loan and Foreclosed Properties

1.62%

1.53%

1.92%

2.13%

2.38%

2019

2018

2017

2016

2015

2019

2018

2017

2016

2015

2019

2018

2017

2016

2015

2019

2018

2017

2016

2015

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

2019
Annual
Report

“

We are
cognizant...
of the
responsibility
that we have
to be good
stewards....

”

Shareholders

Our directors, officers, and staff focus on providing a stable and competitive return for our investors year after
year by focusing on maintaining the highest level of operating performance necessary to create shareholder
value. Our history of sharing our success with our shareholders continued during 2019, as we increased the cash
dividend to our shareholders for the 39 consecutive year. Additionally, at year-end 2019 our stock had
experienced a 17.7% increase in price, compared to year-end 2018.

While increasing our cash dividend to our shareholders, we continued to grow our shareholders’ equity to $614.9
million at December 31, 2019, a 9.0% increase from the $564.2 million at December 31, 2018.

Our annualized dividend yield to shareholders as of December 31, 2019 was 3.26%, and the five-year
compound growth rate of cash dividends per share was 4.6%. The five-year compound growth rate of earnings
per share was 7.8% at December 31, 2019, as Community Trust achieved record earnings of $64.5 million
compared to the 2018 record earnings of $59.2 million.

Community Trust Bancorp, Inc. continues to maintain a significantly higher level of capital than required by
regulators in order to be designated as “well-capitalized.” To be “well-capitalized,” banks must maintain a Tier
1 leverage ratio of no less than 5.0%, a common equity Tier 1 capital ratio of no less than 6.5%, a Tier 1 risk-based
ratio of no less than 8.0%, and a total risk-based ratio of no less than 10.0%. Our ratios as of December 31, 2019
were 14.01%, 17.18%, 18.94%, and 20.05%, respectively, all exceeding the threshold for meeting the definition
of “well-capitalized.” On December 31, 2019, our tangible common equity/tangible assets ratio remained strong
at 12.78%.

Our stock is included in the Russell 2000 Index of small cap companies, providing us with a good benchmark for
comparing our stock’s performance. During the 10-year period ending December 31, 2019, CTBI produced an
annualized return of 11.61%, while the Russell 2000 Index produced an annualized return of 11.81%.

Our stock is traded on the prestigious NASDAQ Global Select Market (a founding stock selection) and is also
one of 50 founding stocks of the NASDAQ’s Dividend Achievers Index. An investment in CTBI stock on
December 31, 2014 would have provided an annualized total return of 8.4% as of December 31, 2019.

Book Value Per Share

2019

2018

2017

2016

2015

$34.56

$31.81

$30.00

$28.40

$27.12

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

Customers

Since 1903, we have worked hard to meet the financial product and service needs of our customers – individuals,
businesses, and organizations – by helping them achieve their financial goals. In 2019, Community Trust served
more than 300,000 customers with a wide variety of banking products and services designed to fit each
customer’s needs.

In 2019, for the 11 consecutive year, we were recognized by the Small Business Administration (SBA) as the
top community bank SBA lender in the Commonwealth of Kentucky based on the total number of loans. During
this time, Community Trust has funded more than 930 SBA loans, providing access to over $200 million for
small businesses in the region. We were also recognized by the SBA as the top third-party SBA lender in the state
of Tennessee for the second consecutive year. Community Trust also offers USDA guaranteed loans, along with
an entire suite of commercial loans and leases, mortgage loans, and consumer loans.

Community Trust participates in several programs through the Federal Home Loan Bank of Cincinnati, Ohio to
fund affordable housing projects in partnerships with organizations like Habitat for Humanity and HOMES, Inc.
of Letcher County, Kentucky. We also make grant funds available directly to low and moderate income families
who qualify for the “Welcome Home” program. For eight months during 2019, Community Trust offered
qualifying mortgage loan customers $500 off closing costs.

Outstanding customer service is our goal, and we are committed to bringing new and innovative technological
advances to our customers. In the past several years we have expanded our menu of mobile and online banking
services to include Apple Pay, Google Pay, Samsung Pay, Consumer Mobile Banking for Tablets, Business
Mobile Banking for Smartphones and Tablets, and Business Check Remote Deposit Capture. We will continue
to work to offer our customers new products and services that will enhance their banking experiences.

Our deposit-related products and services include certificates of deposits, savings accounts, online banking and
online bill payment (at www.ctbi.com), mobile banking, commercial account remote deposit capture, and cash
management services. We offer our customers convenient access to their accounts through our 85 ATMs and
additional free access to more than 100 ATMs through our network arrangements. Please visit our website at
https://www.ctbi.com/ctbi/about-us/atm-location-listing for a complete listing of our ATM locations.

Our trust and wealth management professionals are dedicated to helping individuals and businesses identify the
right products and services to meet their unique needs. We offer customers a full line of wealth and trust
management, estate planning, and retirement planning services, in addition to full service brokerage and life
insurance products.

We are pleased to serve our customers with our extensive, convenient electronic banking services, as well as
through our 79 banking offices and five trust offices in Kentucky, West Virginia, and Tennessee.

“

Outstanding
customer
service is
our goal....

”

2019
Annual
Report

“

Our
employees
contributed
over 2,500
community
service
hours....

”

Employees

The success of our employees means success for Community Trust.

We recognize the long-term value of a highly skilled, dedicated workforce, with an average tenure of 10 years.
We are committed to providing our employees with opportunities for personal and professional growth by
providing reimbursement of educational expenses, encouraging attendance at seminars and in-house training
programs, and sponsoring memberships in local civic organizations.

Our employees recognize the long-term benefit of working with our organization as evidenced by the 175
employees who have 20 years or more of service. Our employees participated in numerous coaching, training,
and educational programs throughout the year. Additionally, Community Trust continues to make online
training available to employees; as a result, over 1,000 employees completed 63 different compliance and
technical skill training online courses during 2019 through our Regulatory University system.

Employees also had an opportunity during 2019 to utilize two new programs that provide skill development
online with over 8,000 varied courses, including topics in banking, finance, computers, customer service, sales,
management, and personal skills such as time management, project management, and communication skills.

Our training department facilitated 199 classes internally with over 2,000 participants. Twelve employees
worked on their skill development through attending secondary education courses; these were funded through
our Educational Assistance Program. Ninety-six employees attended at least one external seminar or workshop.

Community Trust offers its employees competitive compensation, as well as a highly competitive benefits
package which includes health insurance, life insurance, retirement benefits, education reimbursement
programs, and incentive plans. Community Trust is proud to have paid in support of these programs in excess of
$59 million.

We actively support our employees with a wellness program. Since beginning the program in 2004, participating
employees have experienced improvements in preventing cardiovascular disease, cancer, and diabetes. Many of
our employees have experienced decreases in elevated medical risk factors, including alcohol consumption,
tobacco usage, physical inactivity, high stress, high cholesterol, and high blood pressure.

We recognize the hard work and dedication of our employees by providing opportunities to earn cash bonuses
and win awards for top achievement. In February 2020, we held our 21 annual “Pinnacle of Success” awards
banquet where we recognized 62 employees for their outstanding performance in business development and
service during the prior year. We have included the names of those employees, as well as the offices, markets, and
regions recognized, following the Branch Locations listing on page 20.

The success of our employees means success for your Company. Our employees’ commitment to the mission of
your Company and our constituents is evidenced by their ownership of the Company’s stock. Through their
401(k) and ESOP plans, our employees collectively own 1.2 million shares, or 6.5%, of Community Trust
Bancorp, Inc. stock, making them one of our largest shareholders. In 2019, Community Trust Bancorp, Inc.
contributed $2.8 million to these plans.

Communities

We have helped our friends and neighbors fulfill their financial dreams for more than 116 years. By doing so, we have helped
to build better communities. The progress and improvements upon which we focus are in the areas of jobs and the economy,
education and health care, and overall quality of life.

Our continuing support of our communities, both financially and through the volunteer service of our employees, has helped
build great places to live for our customers and fellow employees. During 2019, we donated $1.1 million to community
organizations involved in a wide variety of civic activities, including economic development, affordable housing, job
creation, education, cultural enrichment, medical research, and health care.

Our employees contributed over 2,500 community service hours to these organizations during 2019, with over 1,500 of
those hours having a community development purpose. We also made investments totaling nearly $10 million that funded
various community development projects. In addition, we have funded over $58 million in loans for community
development projects.

Community Trust employees provide leadership, monetary support, and countless volunteer hours to many exceptional local
community organizations in all of the communities we serve. Our employees are active in a wide variety of community
organizations, including United Way, YMCA, American Cancer Society’s Relay For Life, American Red Cross, Habitat for
Humanity, Kentucky Blood Center, Diabetes Coalition, Judi’s Place For Kids, March of Dimes, little league sports
programs, Boy and Girl Scouts of America, The Salvation Army, volunteer fire departments, home realtor and builder
organizations, elementary and high schools, and independent and state supported colleges and universities.

Community Trust employees actively participate in the leadership of a wide variety of organizations by serving on their
boards and attending conferences and workshops. In 2019, Community Trust continued to actively support SOAR (Shaping
Our Appalachian Region), including donating office space for a rental fee of one dollar per year. We continue supporting
One East Kentucky, Ashland Alliance, and numerous local chambers of commerce to expand job opportunities; enhance the
economy of the region; encourage innovation, entrepreneurship, geographic cooperation, and a diversified workforce;
improve the quality of life of our citizens; and support all those working to achieve these goals.

Community Trust’s commitment to the communities in which we work and live is significant. We will continue working
to improve the lives of our fellow citizens and the quality of life in the cities, towns, and neighborhoods which we share.

CTBI Community Financial Support

2019

2018

2017

2016

2015

$1,068,000

$1,041,000

$1,150,000

$904,000

$854,000

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2019
Annual
Report

“

Community
Trust employees
actively
participate
in the
leadership of
a wide
variety of
organizations...

”

Executive Committee

JEAN R. HALE
Chairman, President
and CEO
Community Trust Bancorp, Inc.
Chairman
Community Trust Bank, Inc. and
Community Trust and
Investment Company

MARK A. GOOCH
Executive Vice President and
Secretary
Community Trust Bancorp, Inc.
Director, President and CEO
Community Trust Bank, Inc.
Director and Vice President
Community Trust and
Investment Company

ANDY WATERS
Executive Vice President
Community Trust Bancorp, Inc.
Director, President and CEO
Community Trust and Investment
Company

JAMES B. DRAUGHN
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice
President/Operations
Community Trust Bank, Inc.

JAMES J. GARTNER
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/
Chief Credit Officer
Community Trust Bank, Inc.

C. WAYNE HANCOCK II
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/
Senior Staff Attorney
Community Trust Bank, Inc.

STEVEN E. JAMESON
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/Chief
Internal Audit & Risk Officer
Community Trust Bank, Inc.

ANDREW JONES
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/
Northeastern Region President
Community Trust Bank, Inc.

LARRY W. JONES
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/
Central Kentucky Region President
Community Trust Bank, Inc.

RICHARD W. NEWSOM
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/
Eastern Region President
Community Trust Bank, Inc.

RICKY D. SPARKMAN
Executive Vice President
Community Trust Bancorp, Inc.
Executive Vice President/South
Central Region President
Community Trust Bank, Inc.

KEVIN J. STUMBO
Executive Vice President, CFO
and Treasurer
Community Trust Bancorp, Inc.
Executive Vice President/CFO
Community Trust Bank, Inc.
Vice President
Community Trust and
Investment Company

* Non-voting Member

Boards of Directors

*
**
***

JEAN R. HALE
Chairman, President and CEO
Community Trust Bancorp, Inc.
Chairman
Community Trust Bank, Inc. and
Community Trust and Investment
Company

**
***

***

ANDY WATERS
Executive Vice President
Community Trust Bancorp, Inc.
Director, President and CEO
Community Trust and Investment
Company

*
***

CHARLES J. BAIRD
President
Baird & Baird, P.S.C.
Pikeville, Kentucky

NICK CARTER
Private Investor
Lexington, Kentucky

DAVID E. COLLINS
Managing Partner
Collins & Slone, LLP
Pikeville, Kentucky

FRANKLIN H. FARRIS, JR.
Owner
Farris Advisory Services, LLC
Louisville, Kentucky

***

E.B. LOWMAN II
Chairman and CEO
Cardinal Management Ltd.
Ashland, Kentucky

**
***

EUGENIA CRITTENDEN
“CRIT” LUALLEN
Former Lt. Governor
Commonwealth of Kentucky
Frankfort, Kentucky

MICHELLE MATTHEWS
President
Childers Oil/Double Kwik
Whitesburg, Kentucky

JAMES E. MCGHEE II
President
Three JC Investments, LLC
Pikeville, Kentucky

FRANKY MINNIFIELD
President
Minnifield Enterprize, Inc.
Lexington, Kentucky

M. LYNN PARRISH
President
Marwood Land Company, Inc.
Pikeville, Kentucky

ANTHONY W. ST. CHARLES
President and CEO
The St. Charles Group, LLC
Cincinnati, Ohio

CHAD C. STREET
DMD, MD
Owner and President
East Kentucky Oral &
Maxillofacial Surgery
Pikeville, Kentucky

Boards of Directors

Community Trust Bancorp, Inc.
Community Trust Bank, Inc.
Community Trust and Investment Company

Advisory Board Members

Eastern Region

Northeastern Region

South Central Region

Richard Newsom
Regional President

Andrew Jones
Regional President

Central Region

Larry W. Jones
Regional President

Lexington

Versailles

Pikeville*

Ashland

Billie Dollins
Market President

William Brett Keene
Market President

Andrew Jones
Regional President

Robert Cleveland
John Cook
Jack Givens
Phil Huddleston
Alice Kiviniemi
William Klier
Rodney Mitchell
Billy Van Pelt
Mark Wainwright, M.D.

Winchester

David Wills
Market President

Thomas R. Goebel
Carl E. Jennings
Robert M. Powe, Jr.
David W. Underhill
Gardner D. Wagers

Floyd/Knott/Johnson*

David Tackett
Market President

Hazard

Janice Brafford-King
Market President

William Bettinazzi
Frances Feltner
Meriwether W. Hall
Charles Housley
Syamala H. K. Reddy, M.D.
Jeff Sandlin
Tim Short
Alan Dale Williams

Tug Valley

Duanne Thompson
Market President

William F. Blackburn III
James H. Caines
Harold Davis
Timothy A. Hatfield
Philip Haywood
John Mark Hubbard
Paul E. Pinson

Whitesburg

Reed Caudill
Market President

L.M. Mike Caudill
Bill Joe Collier ++
Sandra Hogg
Sam W. Quillen, Jr., D.M.D.
Pauline C. Ritter-Combs

E. B. Lowman II
E. B. Lowman III
John McMeans
Ann Perkins
James C. Williams

Advantage Valley

Allen Burner
Market President

Carl Midkiff
Christopher J. Plybon
Julian Saad
Steve Smith

Flemingsburg

Emery O. Clark III
Market President

Michael A. Boyd, M.D.
Steve Humphries
Duane Lowe
T. Scott Perkins, D.M.D.
Regina Rose
Frank Vice, D.V.M.

Summersville

Jeff Lilly
Market President

Paul Buechler
Ellis S. Frame III
David Michael Hughes
Marshall Robinson

Larry W. Jones
Regional President

James C. Baughman, Jr.
Robert A. Branham
Anne Gay Combs
C. Glen Combs
Jenny Dulworth-Albert
James Keeton III
Robert Kelly
James H. Schrader
Daryl Smith

Danville/Harrodsburg

David Maynard
Market President

Bob Allen
Scott Burks
Bob Davis
Bruce Harper
James G. Ingram
Alvis Johnson
Myrna Miller
Larry Scott, M.D.
Walter “Skip” Stocker

Mt. Sterling

Jody Oney
Market President

Byron Amburgey
Marcus Shane Back
Jeff Brother
Reid Evans
Brigitte Danielle King, M.D.
Angela Patrick
James R. Staton

Richmond

Tim Houck
Market President

Jeannette Crockett
Alison Emmons
David Fernandez
James H. Howard
Elizabeth McCarty
David McFaddin
Randall Stone

* These markets are served by the Community Trust Bank, Inc. Board of Directors.

Community Trust would like to offer our sincere appreciation for the commitment of
Conrad Troutman and Bill Joe Collier to our Company and their communities.

+ Deceased 11/27/2019

++ Deceased 1/26/2020

Ricky Sparkman
Regional President

Campbellsville

Ricky Sparkman
Regional President

Barry Bertram
Eddie Hazelwood
Jerry Russell
John Waldrop

LaFollette

Rhonda Longmire
Market President

George Ellison
James C. Farris, M.D.
Marvin Minton
Peggy Payne
Tom Robards
Conrad Troutman +
Robert L. Woodson III

Middlesboro

Rhonda Longmire
Market President

Marcum Brogan
Meredith J. Evans, M.D.
Keith A. Nagle

Mt. Vernon

Betty Frederick
Market President

Martha Cox
Connie Hunt
Gary W. Mink
Tommy Mink

Williamsburg

Jamie Harrison
Market President

E. L. Ballou, D.M.D.
Ray F. Bryant
Joseph E. Early, Sr.
Paul Estes
Dallas B. Steely
Mark S. Stephens
Lonnie D. Walden

Shareholder Information

Corporate Address

Dividend Reinvestment

Community Trust Bancorp, Inc. offers
its shareholders an automatic dividend
reinvestment program. The program
enables shareholders to reinvest their
dividends in shares at the prevailing
market price. For more information,
contact us at:

Community Trust Bancorp, Inc.
c/o Broadridge Corporate Issuer
Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717-0718
866.232.3034
shareholder@broadridge.com

Form 10-K

CTBI’s annual report on Form 10-K
filed with the Securities and Exchange
Commission is available without charge
on our website at www.ctbi.com or by
writing:

Community Trust Bancorp, Inc.
Jean R. Hale
Chairman, President & CEO
P.O. Box 2947
Pikeville, KY 41502-2947

Current Analyst Coverage

Raymond James and Associates, Inc.
Sandler O’Neill & Partners, LP

Community Trust Bancorp, Inc.
346 North Mayo Trail
P.O. Box 2947
Pikeville, KY 41502-2947
606.432.1414
www.ctbi.com

Notice of Annual Meeting

The annual meeting of the
shareholders will be held at
10:00 a.m. on April 28, 2020 at:

Community Trust Bancorp, Inc.
346 North Mayo Trail
Pikeville, Kentucky

Transfer Agent

Inquiries relating to shareholder records,
stock transfers, changes of ownership,
changes of address, and dividend payments
should be sent to the transfer agent at:

Broadridge Corporate Issuer Solutions, Inc.
P.O. Box 1342
Brentwood, NY 11717-0718
866.232.3034
720.358.3637 (International)
shareholder@broadridge.com

Inquiries may also be directed to
Community Trust Bancorp, Inc.’s Stock
Transfer Administrator, Marilyn Justice, at:

Community Trust Bank, Inc.
P.O. Box 2947
Pikeville, KY 41502-2947
606.437.3279
800.422.1090, ext. 3279 (Toll Free)
justicma@ctbi.com

Branch Locations

Central Region

Danville
Danville Main
Danville Manor
Harrodsburg

462 W. Main St.
1560 Hustonville Rd.
570 Chestnut St.

859-239-9200
859-239-9460
859-734-4354

Richmond
Eastern Bypass
Richmond Main
Berea North

860 Eastern Bypass
128 W. Main St.
525 Walnut Meadow Rd.

859-624-4622
859-623-2747
859-985-0561

Lexington
Vine Street
Beaumont
Hamburg
Leestown
Pasadena
Richmond Road

Mt. Sterling
Mt. Sterling Main
Mt. Sterling North

100 E. Vine St.
901 Beaumont Centre Pkwy.
2417 Sir Barton Way
109 Louie Place
185 Pasadena Dr.
3090 Richmond Rd.

859-389-5350
859-223-1111
859-264-1938
859-258-2659
859-313-5425
859-269-0164

110 N. Maysville St.
196 Evans Dr.

859-497-6900
859-497-6970

Versailles
Versailles Main
Woodford Plaza
Frankfort East
Frankfort West
Georgetown Walmart

101 N. Main St.
470 Lexington Rd.
427 Versailles Rd.
1205 S. Hwy. 127
112 Osbourne Way

859-879-5400
859-879-5480
502-848-0913
502-696-0720
502-863-4693

Winchester
Winchester Main
Winchester Plaza

120 S. Main St.
125 Winchester Plaza

859-745-7200
859-745-7220

Floyd/Knott/Johnson
Allen
Floyd County
Paintsville Walmart
Knott County

6424 KY Rt. 1428
161 S. Lake Dr.
470 N. Mayo Trl.
107 W. Main St.

1665 Combs Rd.
100 Citizens Ln.
101 Village Ln.

Hazard
Airport Gardens
Black Gold
Hazard Village

Tug Valley
Williamson
Tug Valley

Eastern Region

606-874-0408
606-886-2382
606-788-9934
606-785-5095

606-487-2160
606-436-2157
606-487-2152

Pikeville
Elkhorn City
Marrowbone
Mouthcard
Phelps
Pikeville Main
Pikeville Main Street
Pikeville Walmart
Town Mountain
Virgie
Weddington Plaza

211 W. Russell St.
10579 Regina Belcher Hwy.
32 N. Levisa Rd.
38720 State Hwy. 194 E.
346 N. Mayo Trl.
137 Main St.
254 Cassidy Blvd.
105 Northgate Dr.
1056 KY Hwy. 610 W.
4205 N. Mayo Trl.

101 E. 2nd Ave.
28160 US Hwy. 119

304-235-5454
606-237-6051

Whitesburg
Whitesburg Main
West Whitesburg
Jenkins
Isom
Neon

155 Main St.
24 Pkwy. Plaza Loop
9505 Hwy. 805
56 Isom Plaza
1001 Hwy. 317

Northeastern Region

606-754-5589
606-754-4462
606-835-4907
606-456-8701
606-432-1414
606-437-3326
606-437-0048
606-437-3323
606-639-4451
606-432-4529

606-633-0161
606-633-4532
606-832-2477
606-633-5995
606-855-4435

Advantage Valley
Alum Creek
Hamlin
Fort Gay
Pullman Square

315 Midway Rd.
8049 Lynn Ave.
735 Court St.
952 3rd Ave.

304-756-3317
304-824-7223
304-648-7200
304-697-0272

Flemingsburg
Ewing
Flemingsburg Main
South Ridge

1527 Ewing Rd.
36 Brookhaven Dr.
108 Clark St.

606-267-2061
606-845-3551
606-849-2304

Ashland
Ashland Main
South Ashland
Summit
Westwood
Russell

Summersville
Summersville

1544 Winchester Ave.
2101 29th St.
7100 US Rt. 60
721 Wheatley Rd.
970 Diederich Blvd.

606-329-6000
606-329-6600
606-928-9555
606-329-6610
606-329-6680

507 Main St.

304-872-2711

South Central Region

Campbellsville
Campbellsville Main
Campbellsville Bypass
Columbia
Greensburg
Lebanon
Somerset North
Somerset South
Jamestown

Williamsburg
Williamsburg Main
Convenience Center
Corbin
London South
London North

1218 E. Broadway St.
402 Campbellsville Bypass
1005 Jamestown St.
205 S. Main St.
521 W. Main St.
239 N. Hwy. 27
3809 S. Hwy. 27
752 N. Main St.

201 N. 3rd St.
895 S. Hwy. 25 W.
678 US Hwy. 25 W.
1706 Hwy. 192 W.
38 Shiloh Dr.

270-789-5900
270-789-5900
270-384-4771
270-932-7464
270-692-0064
606-679-8826
606-679-8446
270-343-2556

606-549-5000
606-539-2251
606-526-8777
606-877-2644
606-864-2439

Middlesboro
Middlesboro Main
Middlesboro East
Pineville

Mt. Vernon
Mt. Vernon Main
Mt. Vernon Downtown

1918 Cumberland Ave.
1206 E. Cumberland Ave.
11792 US Hwy. 25 E.

606-248-9600
606-248-9642
606-337-6122

2134 Lake Cumberland Rd.
120 Main St.

606-256-5141
606-256-5142

LaFollette
LaFollette Main
Jacksboro
Clinton

106 S. Tennessee Ave.
2603 Jacksboro Pike
2106 Charles G. Seivers Blvd.

423-562-3364
423-566-7800
865-457-8684

*Community Trust and Investment Company has offices in these locations.

salutes our

2020

for their
2019
Sales &
Service

Individual Success

Team Success

Jason Adams

David Akers

Steve Belcher

Bridget Hall

Todd Hargis

Natalie Heighton

Jennifer Blackburn

Sean Hurley

Regina Blankenship

Andrew Jarvis

Mike Bonfield

Jessica Kendrick

Gertrude Bostick

Joe Kenney

Janice Brafford-King

Savi Kumar

Allen Burner

Rhonda S. Longmire

Tiffany Reeder

Ty Reynolds

Brenda Rhodes

Melissa Rhodes

Amanda Ritchie

Suzanne Sifers

Roger Smith

Helena Syck

Caleb Tackett

John R. Caldwell

David Maynard

Charles J. Tackett

Reed Caudill

Elizabeth Maynard-Johnson

Chris Tackett

Ryan N. Charles

Ursula McCown

Gerrie Clark

Tami Coleman

Anneta Collins

Steven Conn

Will Davis

Sherry Dotson

Bobby Terrell Medley

Charlene Miller

Gaylon D. Neat

Marsha Newsom

Penny Nichols

Jessica Osborne

Dorothy Franklin

Joyce Pelly

Judy Freeman

Kristy Gross

Barry Pennington

Coltan Phillips

David Tackett

Debbie Thacker

Jody Thompson

Jennifer Ward

Bob Watson

Tammy Wheeler

Ashley White

Trina Yack

Ashland Main Office

Ashland Market

Central Region

Danville Market

Eastern Region

Floyd/Knott Market

Pikeville Main Office

Pikeville Market

Residential Lending Department

Versailles Main Office

Versailles Market

Winchester Main Office

Winchester Market

Cover Printed on

Recycled Paper

346 North Mayo Trail, Pikeville, KY 41501