Exhibit 99.1

FOR IMMEDIATE RELEASE

July 20, 2016

FOR ADDITIONAL INFORMATION, PLEASE CONTACT JEAN R. HALE, CHAIRMAN, PRESIDENT, AND C.E.O., COMMUNITY TRUST BANCORP, INC. AT (606) 437-3294

Pikeville, Kentucky:

COMMUNITY TRUST BANCORP, INC. REPORTS EARNINGS FOR THE SECOND QUARTER 2016

Community Trust Bancorp, Inc. (NASDAQ-CTBI) reports earnings for the second quarter 2016 of $11.6 million, or $0.66 per basic share, compared to $12.4 million, or $0.71 per basic share, earned during the second quarter 2015 and $11.6 million, or $0.66 per basic share, earned during the first quarter 2016.  Earnings for the six months ended June 30, 2016 were $23.2 million, or $1.32 per basic share, compared to $23.3 million, or $1.34 per basic share earned for the six months ended June 30, 2015.

2^nd Quarter 2016 Highlights

v	Our loan portfolio increased $138.6 million from June 30, 2015 and $42.1 million during the quarter.

v	Our investment portfolio decreased $2.1 million from June 30, 2015 and $1.8 million during the quarter.

v	Deposits, including repurchase agreements, increased $148.4 million from June 30, 2015 and $10.0 million during the quarter.

v	Nonperforming loans at $24.7 million decreased $8.7 million from June 30, 2015 and $2.3 million from March 31, 2016.  Nonperforming assets at $62.6 million decreased $7.4 million from June 30, 2015 and $3.5 million from March 31, 2016.

v	Net loan charge-offs for the quarter ended June 30, 2016 were $2.5 million, or 0.35% of average loans annualized, compared to $1.7 million, or 0.25%, experienced for the second quarter 2015 and $1.5 million, or 0.21%, for the first quarter 2016.

Net Interest Income

Net interest income for the quarter of $33.1 million was a decrease of $0.1 million, or 0.4%, from prior year second quarter and $0.3 million, or 0.8%, from prior quarter.  Our net interest margin decreased 14 basis points and 5 basis points during the respective time periods.  The extended low rate environment continues to have a negative impact on our net interest margin.    Average earning assets increased $121.2 million, or 3.4%, from second quarter 2015 and $14.6 million, or 0.4%, from prior quarter, while our yield on average earning assets decreased 10 basis points and 4 basis points, respectively, during these time periods.  The cost of interest bearing funds increased 6 basis points from prior year second quarter and 2 basis points from prior quarter.  Our ratio of average loans to deposits, including repurchase agreements, for the quarter ended June 30, 2016 was 88.1% compared to 87.1% for the quarter ended June 30, 2015 and 88.4% for the quarter ended March 31, 2016.  Net interest income for the six months ended June 30, 2016 of $66.4 million was an increase of $0.3 million, or 0.4%, over the first six months of 2015, although we experienced a 13 basis point decline in our net interest margin.

Noninterest Income

Noninterest income for the quarter ended June 30, 2016 of $11.8 million was a decrease of $0.5 million, or 3.8%, from prior year same quarter but an increase of $0.8 million, or 7.3%, from prior quarter.  The decrease from prior year same quarter was primarily due to a $0.4 million decrease in gains on sales of loans and a $0.5 million decrease in loan related fees, partially offset by a $0.2 million increase in deposit service charges.  The increase in noninterest income from prior quarter was supported by increases in gains on sales of loans ($0.1 million), deposit service charges ($0.4 million), trust revenue ($0.1 million), and loan related fees ($0.1 million).  Loan related fees were affected by fluctuations in the fair value adjustments of our mortgage servicing rights with a decline of $0.4 million year over year and an increase of $0.2 million quarter over quarter.  Noninterest income for the six months ended June 30, 2016 of $22.7 million was a decrease of $0.2 million, or 1.0%, from the first six months of 2015.  The year-to-date decline in noninterest income was primarily due to a $0.4 million decline in gains on sales of loans and a $0.8 million decline in loan related fees as a result of the decline in the fair value of mortgage servicing rights, partially offset by a $0.5 million increase in deposit service charges and a $0.3 million increase in insurance commissions.

Noninterest Expense

Noninterest expense for the quarter ended June 30, 2016 of $27.2 million was an increase of $0.9 million, or 3.3%, from prior year second quarter and $0.9 million, or 3.6%, from prior quarter.  The increase in noninterest expense was primarily due to increases in personnel expense ($0.7 million year over year and $0.2 million quarter over quarter), operating losses ($0.2 million year over year and $0.3 million quarter over quarter), and repossession expense ($0.2 million year over year and quarter over quarter).  Personnel expense was impacted by an increase in the cost of group medical and life insurance of $0.6 million year over year and $0.5 million quarter over quarter.  The year over year increase was partially offset by a $0.3 million decline in net other real estate owned expense.  Noninterest expense for the six months ended June 30, 2016 of $53.4 million was an increase of $1.3 million, or 2.5%, compared to the first six months of 2015, primarily due to the $1.2 million increase in personnel expense which included a $0.5 million increase in salaries and a $0.8 million increase in the cost of group medical and life insurance.

Balance Sheet Review

CTBI’s total assets at $3.9 billion increased $125.3 million, or 3.3%, from June 30, 2015 and $15.5 million, or an annualized 1.6%, during the quarter.  Loans outstanding at June 30, 2016 were $2.9 billion, increasing $138.6 million, or 5.0%, from June 30, 2015 and $42.1 million, or an annualized 5.9%, during the quarter.  We experienced growth during the quarter of $24.5 million in the commercial loan portfolio, $14.0 million in the indirect loan portfolio, $3.2 million in the consumer direct loan portfolio, and $0.4 million in the residential loan portfolio.  CTBI’s investment portfolio decreased $2.1 million, or 0.4%, from June 30, 2015 and $1.8 million, or an annualized 1.3%, during the quarter as funds were invested in our higher yielding loan portfolio.  Deposits, including repurchase agreements, at $3.3 billion increased $148.4 million, or 4.7%, from June 30, 2015 and $10.0 million, or an annualized 1.2%, from prior quarter.

Shareholders’ equity at June 30, 2016 was $493.6 million compared to $461.6 million at June 30, 2015 and $485.6 million at March 31, 2016.  CTBI’s annualized dividend yield to shareholders as of June 30, 2016 was 3.58%.

Asset Quality

CTBI’s total nonperforming loans were $24.7 million at June 30, 2016, a 26.1% decrease from the $33.4 million at June 30, 2015 and an 8.5% decrease from the $27.0 million at March 31, 2016.  Loans 90+ days past due decreased $0.3 million during the quarter while nonaccrual loans decreased $2.0 million.  Loans 30-89 days past due at $19.0 million was a decrease of $0.1 million from March 31, 2016.  Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.  Impaired loans, loans not expected to meet contractual principal and interest payments other than insignificant delays, at June 30, 2016 totaled $53.3 million, a $3.1 million increase from the $50.2 million at June 30, 2015 but a $6.2 million decrease from the $59.5 million at March 31, 2016.

Our level of foreclosed properties at $37.7 million at June 30, 2016 was a $1.3 million increase from the $36.4 million at June 30, 2015 but a $1.2 million decrease from the $39.0 million at March 31, 2016.  Sales of foreclosed properties for the quarter ended June 30, 2016 totaled $3.2 million while new foreclosed properties totaled $2.0 million.  At June 30, 2016, the book value of properties under contracts to sell was $2.3 million; however, the closings had not occurred at quarter-end.

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Community Trust Bancorp, Inc.’s (“CTBI”) actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” and “could.” These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors’ pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations’ savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; and the resolution of legal  proceedings and related matters.  In addition, the banking industry in general is subject to various monetary, operational, and fiscal policies and regulations, which include, but are not limited to, those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, and state regulators, whose policies and regulations could affect CTBI’s results.  These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made.

Community Trust Bancorp, Inc., with assets of $3.9 billion, is headquartered in Pikeville, Kentucky and has 70 banking locations across eastern, northeastern, central, and south central Kentucky, six banking locations in southern West Virginia, four banking locations in northeastern Tennessee, four trust offices across Kentucky, and one trust office in Tennessee.

Additional information follows.

 

 

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