Community Bancorp (CTBI) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: 3.44%
• Average Volume (3M): 68.53K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.71
• Revenue Growth: 9.93%
• EPS Growth: 17.67%
• Country: US
• Employees: 939
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 18,115,847
• 10 Day Avg. Volume: 51,961
• 30 Day Avg. Volume: 68,528
• PEG Ratio: 0.58
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 2.49
• P/FCF Ratio: 9.70
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: 10.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.87
• Revenue Forecast (FY): $294.00M

• Rating: 72 Outperform
• Price Target: $67.00 ▲(15.30% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by solid financial performance (steady growth, healthy profitability, and moderate leverage) and supportive valuation (low P/E and solid dividend yield). This is tempered by weaker near-term technical signals (price below key short-term moving averages and subdued momentum), while recent corporate updates add a positive incremental tailwind.

Positive Factors

Asset & Deposit Growth

Sustained growth in assets, loans, and deposits indicates durable expansion of earning assets and a growing local deposit funding base. Over 2–6 months this supports higher net interest income potential, greater lending capacity, and stronger competitive position in core markets.

Record Profitability & Efficiency

Record annual earnings and a materially improved efficiency ratio reflect lasting operational leverage and cost control. Improved profitability enhances internal capital generation, supports dividend stability and reinvestment, and underpins resilience through business cycles.

Strengthened Capital & Asset Quality

Rising equity and low nonperforming loans demonstrate a stronger capital cushion and conservative credit underwriting. Moderate, stable leverage plus improved tangible common equity increases capacity for loan growth, acquisitions, and shock absorption over the medium term.

Negative Factors

Margin Compression

Net interest margin compression from prior peaks reduces the margin of safety for profitability. If higher-cost funding or competitive loan pricing persists, the bank may find it harder to sustain prior net margin levels, pressuring medium-term earnings power.

Volatile Free Cash Flow Growth

Inconsistent free cash flow growth creates uncertainty around repeatable capital returns and reinvestment capacity. Variability in cash conversion can limit the bank’s ability to reliably fund dividends, buybacks, or opportunistic investments without stressing liquidity.

ROE Drift from Prior Highs

A declining ROE trend suggests profitability is not keeping pace with capital growth, potentially diluting long-term shareholder returns. If ROE remains below historical peaks, management must balance capital accumulation with initiatives to restore higher earning efficiency.

Community Bancorp Business Overview & Revenue Model

Company Description

Community Trust Bancorp, Inc. operates as the bank holding company for Community Trust Bank, Inc. that provides commercial and personal banking services to small and mid-sized communities. The company accepts time and demand deposits, checking accounts, savings accounts and savings certificates, individual retirement accounts and Keogh plans, and money market accounts. Its loan products include commercial, construction, mortgage, and personal loans; lease-financing, lines of credit, revolving lines of credit, and term loans, as well as other specialized loans, including asset-based financing; residential and commercial real estate loans; and consumer loans. The company also provides cash management, renting safe deposit boxes, and funds transfer services; issues letters of credit; and acts as a trustee of personal trusts, executor of estates, trustee for employee benefit trusts, and paying agent for bond and stock issues, as well as an investment agent and depositor for securities. In addition, it offers securities brokerage, and trust and wealth management services; debit cards; annuity and life insurance products; and repurchase agreements, as well as mobile, internet banking, and e-statement services. The company operates 79 banking locations in eastern, northeastern, central, south central Kentucky, southern West Virginia, and northeastern Tennessee; 4 trust offices across Kentucky; and 1 trust office in northeastern Tennessee. Community Trust Bancorp, Inc. was founded in 1903 and is headquartered in Pikeville, Kentucky.

How the Company Makes Money

Community Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from fees for services provided. The key revenue streams include interest from personal and commercial loans, mortgage lending, and investment securities. Additionally, CTBI earns non-interest income through service fees on deposit accounts, ATM fees, and wealth management services. The company may also benefit from strategic partnerships with local businesses and organizations, enhancing its customer base and service offerings, thereby contributing to its overall earnings.

Community Bancorp Financial Statement Overview

Summary

Overall financial statements are solid: multi-year revenue growth with a strong 2025 jump, healthy profitability, and moderate/stable leverage with expanding equity. Offsetting factors are margin compression versus the 2021–2022 peak and uneven year-to-year free cash flow growth despite strong cash conversion.

Income Statement

Revenue expanded steadily from 2020 to 2025 (annual revenue rising from ~$231M to ~$409M), with a notably strong jump in 2025 versus 2024. Profitability remains solid: net margin has stayed healthy (roughly low-20s to mid-30s over the period) and 2025 net income improved versus 2024. The main watch-out is margin compression versus earlier years (2021–2022 were notably higher), suggesting profitability is still good but less resilient than the peak period.

Balance Sheet

Leverage looks moderate and stable for a regional bank, with debt-to-equity generally in the ~0.42–0.65 range and improving from 2020’s higher level. Equity has grown meaningfully (from ~$655M in 2020 to ~$856M in 2025), supporting balance-sheet capacity as assets also increased. Return on equity is consistently solid (~9%–13%), though it has drifted down from the 2021–2022 highs, which slightly tempers the overall balance-sheet quality score.

Cash Flow

Cash generation is consistently positive, with operating cash flow hovering around ~$86M–$116M across the years and free cash flow generally tracking closely (including 2025 free cash flow matching operating cash flow). Free cash flow relative to net income is strong (around ~0.92–1.00), indicating earnings are translating well into cash. The key weakness is volatility in free cash flow growth (negative in 2022–2023, stronger in 2024–2025), implying less consistent year-to-year cash momentum.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	409.34M	376.01M	326.31M	255.66M	238.63M
Gross Profit	273.07M	237.61M	223.96M	222.11M	229.93M
EBITDA	131.34M	111.69M	103.92M	106.26M	115.68M
Net Income	98.06M	82.81M	78.00M	81.81M	87.94M
Balance Sheet
Total Assets	6.68B	6.19B	5.77B	5.38B	5.42B
Cash, Cash Equivalents and Short-Term Investments	365.78M	1.43B	1.44B	1.39B	1.77B
Total Debt	389.79M	320.19M	306.71M	291.75M	342.81M
Total Liabilities	5.83B	5.44B	5.07B	4.75B	4.72B
Stockholders Equity	856.07M	757.58M	702.21M	628.05M	698.20M
Cash Flow
Free Cash Flow	104.99M	97.09M	79.41M	93.47M	113.32M
Operating Cash Flow	104.99M	105.17M	85.73M	99.68M	115.69M
Investing Cash Flow	-463.22M	-335.67M	-226.60M	-280.01M	-358.62M
Financing Cash Flow	352.41M	328.61M	283.58M	-2.75M	216.45M

Community Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 58.11
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTBI, the sentiment is Negative. The current price of 58.11 is below the 20-day moving average (MA) of 63.12, below the 50-day MA of 60.77, and above the 200-day MA of 55.52, indicating a neutral trend. The MACD of 0.23 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 33.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTBI.

Community Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEBO	74 Outperform	$1.16B	10.79	9.13%	5.30%	0.11%	-18.63%
CTBI	72 Outperform	$1.09B	11.06	12.15%	3.44%	9.93%	17.67%
TMP	72 Outperform	$1.11B	6.82	11.20%	3.39%	9.55%	27.32%
FSUN	72 Outperform	$1.02B	10.52	8.28%	―	4.44%	3.19%
OSBC	68 Neutral	$1.03B	12.12	9.24%	1.24%	10.42%	-18.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
OCFC	56 Neutral	$1.04B	15.45	4.77%	4.05%	-2.15%	-25.32%

Community Bancorp Corporate Events

Community Bancorp Reports Strong 2025 Growth and Earnings

In February 2026, Community Trust Bancorp reported that for the year ended December 31, 2025 it grew total assets by 7.9% to $6.7 billion, driven by a 9.1% increase in loans and a 7.3% rise in deposits including repurchase agreements, while also expanding its investment portfolio. Earnings performance strengthened, with earnings per share up 18.0% to $5.44, net income rising 18.4%, and revenues advancing 13.7% from 2024, underpinned by a 17.7% increase in net interest revenue, a 26-basis-point improvement in net interest margin to 3.62%, and continued efficiency gains as the efficiency ratio improved to 50.48%. Asset quality remained solid, with nonperforming loans at 0.39% of total loans, low net charge-offs, and criticized assets and nonperforming assets at contained levels relative to capital and total assets. These results, combined with a tangible common equity ratio of 11.94% and stable noninterest income contribution, reinforce CTBI’s position as a conservatively run, consistently profitable regional community bank with a strong market footprint in its core Kentucky-Tennessee-West Virginia markets.

The most recent analyst rating on (CTBI) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Community Bancorp stock, see the CTBI Stock Forecast page.

Community Bancorp Adopts 2026 Employee Incentive Compensation Plan

On January 27, 2026, Community Trust Bancorp, Inc.’s board of directors approved an Employee Incentive Compensation Plan for the year ending December 31, 2026, setting the framework for performance-based pay for its staff over the current fiscal year. The adoption of this incentive plan underscores the company’s focus on aligning employee compensation with corporate performance metrics, which may influence talent retention, operational productivity, and how the bank competes for skilled employees in the regional financial services sector.

The most recent analyst rating on (CTBI) stock is a Buy with a $67.00 price target. To see the full list of analyst forecasts on Community Bancorp stock, see the CTBI Stock Forecast page.

Community Trust Bancorp Posts Record 2025 Earnings Results

On January 21, 2026, Community Trust Bancorp reported record results for both the fourth quarter and full year 2025, underscoring improved profitability and capital strength. Fourth-quarter 2025 net income rose to $27.3 million, or $1.51 per basic share, up from $23.9 million in the third quarter of 2025 and $22.5 million in the fourth quarter of 2024, driven by a $3.2 million increase in total revenue and stronger net interest income as net interest margin expanded. For full year 2025, earnings reached a record $98.1 million, up $15.2 million from 2024, while returns on average assets and equity improved and the efficiency ratio declined versus the prior year, indicating better operating leverage. Credit costs remained manageable, with the provision for credit losses down $1.0 million from the prior quarter despite a modest increase versus the year-ago quarter, and capital and shareholder metrics strengthened, as reflected in higher tangible common equity, book value per share, and increased dividends, signaling a positive trajectory for investors and other stakeholders.

The most recent analyst rating on (CTBI) stock is a Buy with a $68.00 price target. To see the full list of analyst forecasts on Community Bancorp stock, see the CTBI Stock Forecast page.