COMMUNITY TRUST BANCORP INC /KY/ Segments Disclosure

23.  Segment Reporting

CTBI is a financial holding company, whose principal activity is the ownership and management of its wholly-owned subsidiaries, including CTB and Community Trust and Investment Company.  As a community-oriented financial institution, the majority of CTBI’s operations consist of commercial and personal banking services.  Management analyzed the operation of CTBI and determined it has one reportable segment, community banking services.  CTBI, through our operating subsidiaries, offers a wide range of consumer and commercial community banking services.  Our chief operating decision maker is CTBI’s chief executive officer (“CEO”).  The CEO uses net income to allocate resources in the annual budget and forecasting process and considers budget-to-actual variances on a monthly basis for profit measures when making decisions about allocating capital and personnel to the reportable segment.  The CEO uses net interest income and noninterest income to allocate resources (including employees, financial, or capital resources) to that segment in the annual budget and forecasting process and uses that measure as a basis for evaluating product offerings and pricing.  The following tables present information about reported segment revenue, measures of a segment’s profit or loss, and significant segment expenses for the years ended December 31, 2025, 2024, and 2023, and measure of a segment’s assets as of December 31, 2025 and 2024.  CTBI does not allocate all holding company expenses, income taxes, or unusual items to the reportable segment.  Accounting policies for the segment are the same as described in note 1 above.  All operations of CTBI are domestic.  The following tables present the reconciliations of reportable segment revenues and measures of profit or loss and line item reconciliation to CTBI’s consolidated financial statement totals for the periods indicated.

(in thousands) Year Ended December 31, 2025		Community Banking Services				Holding Company				Eliminations				Consolidated
Interest income:
Interest and fees on loans, including loans held for sale		$	304,553			$	0			$	0			$	304,553
Interest and dividends on securities:			0				0				0
Taxable			23,667				0				0				23,667
Tax exempt			2,450				0				0				2,450
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock			749				0				0				749
Interest on Federal Reserve Bank deposits			13,908				0				0				13,908
Other, including interest on federal funds sold			279				113				0				392
Total interest income			345,606				113				0				345,719
Interest expense:
Interest on deposits			112,747				0				0				112,747
Interest on repurchase agreements and federal funds purchased			10,012				0				0				10,012
Interest on advances from Federal Home Loan Bank			12				0				0				12
Interest on long-term debt			390				3,798				(218	)			3,970
Total interest expense			123,161				3,798				(218	)			126,741
Net interest income			222,445				(3,685	)			218				218,978
Provision for credit losses			12,436				0				0				12,436
Net interest income after provision for credit losses			210,009				(3,685	)			218				206,542
Noninterest income:
Deposit related fees			29,840				0				0				29,840
Gains on sales of loans, net			320				0				0				320
Trust and wealth management income			17,332				0				(560	)			16,772
Loan related fees			4,043				0				0				4,043
Bank owned life insurance			4,460				0				0				4,460
Brokerage revenue			2,130				0				0				2,130
Securities gains (losses)			375				0				0				375
Dividend and undistributed income from subsidiaries			0				104,600				(104,600	)			0
Other noninterest income			6,861				1,241				(2,425	)			5,677
Total noninterest income			65,361				105,841				(107,585	)			63,617
Noninterest expense:
Officer salaries and employee benefits			17,000				3,545				(884	)			19,661
Other salaries and employee benefits			65,818				920				(920	)			65,818
Occupancy, net			10,184				0				0				10,184
Equipment			3,132				204				(274	)			3,062
Data processing			14,371				42				(1,776	)			12,637
Taxes other than property and payroll			2,353				0				0				2,353
Legal fees			1,327				228				0				1,555
Professional fees			5,457				415				(3,137	)			2,735
Advertising and marketing			3,141				26				0				3,167
FDIC insurance			2,825				0				0				2,825
Other real estate owned provision and expense			313				0				0				313
Repossession expense			1,154				0				0				1,154
Other noninterest expense			16,854				1,349				(600	)			17,603
Total noninterest expense			143,929				6,729				(7,591	)			143,067
Income before income taxes			131,441				95,427				(99,776	)			127,092
Income taxes			31,665				(2,631	)			0				29,034
Net income		$	99,776			$	98,058			$	(99,776	)		$	98,058

(in thousands) Year Ended December 31, 2024		Community Banking Services				Holding Company				Eliminations				Consolidated
Interest income:
Interest and fees on loans, including loans held for sale		$	274,619			$	0			$	0			$	274,619
Interest and dividends on securities:
Taxable			24,953				0				0				24,953
Tax exempt			2,553				0				0				2,553
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock			783				0				0				783
Interest on Federal Reserve Bank deposits			10,101				0				0				10,101
Other, including interest on federal funds sold			301				133				0				434
Total interest income			313,310				133				0				313,443
Interest expense:
Interest on deposits			112,516				0				0				112,516
Interest on repurchase agreements and federal funds purchased			10,393				0				0				10,393
Interest on advances from Federal Home Loan Bank			16				0				0				16
Interest on long-term debt			365				4,410				(252	)			4,523
Total interest expense			123,290				4,410				(252	)			127,448
Net interest income			190,020				(4,277	)			252				185,995
Provision for credit losses			10,951				0				0				10,951
Net interest income after provision for credit losses			179,069				(4,277	)			252				175,044
Noninterest income:
Deposit related fees			29,824				0				0				29,824
Gains on sales of loans, net			294				0				0				294
Trust and wealth management income			14,921				0				0				14,921
Loan related fees			4,957				0				0				4,957
Bank owned life insurance			5,236				0				0				5,236
Brokerage revenue			2,272				0				0				2,272
Securities gains (losses)			631				0				0				631
Dividend and undistributed income from subsidiaries			0				88,430				(88,430	)			0
Other noninterest income			5,540				1,173				(2,283	)			4,430
Total noninterest income			63,675				89,603				(90,713	)			62,565
Noninterest expense:
Officer salaries and employee benefits			15,107				2,039				(830	)			16,316
Other salaries and employee benefits			63,111				873				(873	)			63,111
Occupancy, net			9,440				2				0				9,442
Equipment			2,746				201				(185	)			2,762
Data processing			11,152				20				0				11,172
Taxes other than property and payroll			1,754				0				0				1,754
Legal fees			906				184				0				1,090
Professional fees			2,581				441				(239	)			2,783
Advertising and marketing			3,078				52				0				3,130
FDIC insurance			2,586				0				0				2,586
Other real estate owned provision and expense			152				0				0				152
Repossession expense			1,089				0				0				1,089
Other noninterest expense			14,597				1,095				(156	)			15,536
Total noninterest expense			128,299				4,907				(2,283	)			130,923
Income before income taxes			114,445				80,419				(88,178	)			106,686
Income taxes			26,267				(2,394	)			0				23,873
Net income		$	88,178			$	82,813			$	(88,178	)		$	82,813

The following tables present other segment disclosures:

Below is a reconciliation of our reportable segment assets to CTBI’s consolidated total assets: