Exhibit 99.1

FOR IMMEDIATE RELEASE

October 18, 2017

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 RECORD EARNINGS FOR THE THIRD QUARTER 2017

Community Trust Bancorp, Inc. (NASDAQ-CTBI) reports record earnings for the third quarter 2017 of $13.8 million, or $0.78 per basic share, compared to $11.5 million, or $0.65 per basic share, earned during the second quarter 2017 and $12.3 million, or $0.70 per basic share, earned during the third quarter 2016.  Earnings for the nine months ended September 30, 2017 were $36.6 million, or $2.08 per basic share, compared to $35.5 million, or $2.02 per basic share, for the nine months ended September 30, 2016.

3^rd Quarter 2017 Highlights

v	Net interest income for the quarter of $35.0 million was an increase of $0.7 million, or 2.1%, from second quarter 2017 and $1.7 million, or 5.2%, from prior year third quarter.

v

Provision for loan losses for the quarter ended September 30, 2017 decreased $2.1 million from prior quarter and $1.5 million from prior year same quarter.  The decrease was the result of sustained improvement in the 12 quarter rolling average core portfolio metrics utilized in our allowance for loan losses model.  While quarter over quarter fluctuations occur, management focuses on longer term trends as an indication of overall credit quality. The reduction resulted in a three basis point decrease in our loan loss reserve from 1.20% to 1.17% of total loans.

v	Our loan portfolio increased $26.1 million, an annualized 3.4%, during the quarter and $182.1 million, or 6.2%, from September 30, 2016.

v	Net loan charge-offs for the quarter ended September 30, 2017 were $1.4 million, or 0.18% of average loans annualized, compared to $1.3 million, or 0.18%, experienced for the second quarter 2017 and $2.1 million, or 0.28%, for the third quarter 2016.

v	Nonperforming loans at $30.0 million increased $2.0 million from June 30, 2017 and $1.7 million from September 30, 2016.  Nonperforming assets at $62.2 million increased $1.5 million from June 30, 2017, but decreased $3.8 million from September 30, 2016.

v	Deposits, including repurchase agreements, increased $97.6 million during the quarter and $144.1 million from September 30, 2016.  Deposit growth during the quarter included $82.3 million in wholesale brokered deposits.

v

Noninterest income for the quarter ended September 30, 2017 of $12.2 million was a decrease of $0.1 million, or 0.9%, from prior quarter and $1.0 million, or 7.5%, from prior year same quarter.  The decrease from prior quarter was the result of the gain on the repurchase of trust preferred securities during the second quarter, along with a decrease in trust revenue.  This decrease was partially offset by increases in gains on sales of loans and deposit service charges.  The decrease from same quarter last year was the result of decreases in gains on sales of loans, deposit service charges, loan related fees, and securities gains.

v

Noninterest expense for the quarter ended September 30, 2017 of $26.9 million decreased $0.6 million, or 2.3%, from prior quarter, but increased $0.2 million, or 0.9%, from prior year same quarter.  The variance in noninterest expense for the quarter was due to a decrease in net other real estate owned expense from prior quarter and an increase in net other real estate owned expense from prior year same quarter.

Net Interest Income

Net interest income for the quarter of $35.0 million was an increase of $0.7 million, or 2.1%, from second quarter 2017 and $1.7 million, or 5.2%, from prior year third quarter.  Our net interest margin at 3.67% was down one basis point from prior quarter but up one basis point from prior year same quarter, while our average earnings assets increased $55.5 million and $173.4 million, respectively, during those same periods.  Our yield on average earning assets increased 4 basis points from prior quarter and 13 basis points from prior year same quarter, and our cost of funds increased 9 basis points from prior quarter and 18 basis points from prior year same quarter.  Our ratio of average loans to deposits, including repurchase agreements, was 91.1% for the quarter ended September 30, 2017 compared to 89.9% for the quarter ended June 30, 2017 and 88.3% for the quarter ended September 30, 2016.  Net interest income for the nine months ended September 30, 2017 increased $2.7 million, or 2.7%, from September 30, 2016.

Noninterest Income

Noninterest income for the quarter ended September 30, 2017 of $12.2 million was a decrease of $0.1 million, or 0.9%, from prior quarter and $1.0 million, or 7.5%, from prior year same quarter.  The decrease from prior quarter was the result of the $0.6 million gain on the repurchase of $2.0 million in trust preferred securities during the second quarter, along with a $0.1 million decrease in trust revenue.  This decrease was partially offset by increases in gains on sales of loans ($0.1 million) and deposit service charges ($0.3 million).  The decrease from same quarter last year was the result of decreases in gains on sales of loans ($0.2 million), deposit service charges ($0.1 million), loan related fees ($0.5 million), and securities gains ($0.4 million).  Noninterest income for the nine months ended September 30, 2017 increased $0.2 million, or 0.5%, compared to the nine months ended September 30, 2016.  This increase was also the result of the $0.6 million gain during the second quarter mentioned above, along with a $0.7 million increase in trust revenue, partially offset by decreases in gains on sales of loans ($0.5 million) and securities gains ($0.5 million).

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2017 of $26.9 million decreased $0.6 million, or 2.3%, from prior quarter, but increased $0.2 million, or 0.9%, from prior year same quarter.  The variance in noninterest expense for the quarter was due to a $0.5 million decrease in net other real estate owned expense from prior quarter and a $0.4 million increase in net other real estate owned expense from prior year same quarter.  The increase in net other real estate owned expense from prior year same quarter was partially offset by a decreases in personnel expense ($0.1 million) and FDIC insurance premiums ($0.2 million).  Noninterest expense for the nine months ended September 30, 2017 increased $2.0 million, or 2.5%, compared to the nine months ended September 30, 2016, as a result of a $2.2 million increase in net other real estate owned expense.  Personnel expense for the nine months ended September 30, 2017 increased $0.4 million from prior year with a $0.8 million increase in salaries and a $0.3 million increase in the cost of group medical and life insurance, partially offset by a $0.4 million decrease in bonuses and incentives.  FDIC insurance premiums decreased $0.7 million from prior year.

Balance Sheet Review

CTBI’s total assets at $4.1 billion increased $54.8 million, or an annualized 5.3%, from June 30, 2017 and $205.7 million, or 5.2%, from September 30, 2016.  Loans outstanding at September 30, 2017 were $3.1 billion, increasing $26.1 million, or an annualized 3.4%, from June 30, 2017 and $182.1 million, or 6.2%, from September 30, 2016.  We experienced an increase during the quarter of $6.2 million in the commercial loan portfolio, $12.7 million in the residential loan portfolio, $4.8 million in the indirect loan portfolio, and $2.4 million in the consumer direct loan portfolio.  CTBI’s investment portfolio decreased $7.3 million, or an annualized 4.8%, from June 30, 2017 and $28.5 million, or 4.5%, from September 30, 2016.  Deposits in other banks increased $31.4 million from prior quarter and $51.0 million from September 30, 2016.  Deposits, including repurchase agreements, at $3.5 billion increased $97.6 million, or an annualized 11.5%, from June 30, 2017 and $144.1 million, or 4.3%, from September 30, 2016.  Deposit growth during the quarter included $82.3 million in wholesale brokered deposits.

Shareholders’ equity at September 30, 2017 was $522.9 million compared to $514.9 million at June 30, 2017 and $500.1 million at September 30, 2016.  CTBI’s annualized dividend yield to shareholders as of September 30, 2017 was 2.84%.

Asset Quality

CTBI’s total nonperforming loans were $30.0 million at September 30, 2017, a 7.2% increase from the $28.0 million at June 30, 2017 and a 6.1% increase from the $28.3 million at September 30, 2016.  Loans 90+ days past due increased $1.9 million during the quarter but decreased $1.3 million from September 30, 2016.  Nonaccrual loans increased $0.1 million during the quarter and $3.0 million from September 30, 2016.  Loans 30-89 days past due at $17.4 million was an increase of $2.2 million from June 30, 2017 but a $2.4 million decrease from September 30, 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 September 30, 2017 totaled $46.2 million, a $4.5 million decrease from the $50.7 million at June 30, 2017 and an $8.8 million decrease from the $55.0 million at September 30, 2016.

Our level of foreclosed properties at $32.0 million at September 30, 2017 was a $0.6 million decrease from the $32.6 million at June 30, 2017 and a $5.6 million decrease from the $37.7 million at September 30, 2016.  Sales of foreclosed properties for the quarter ended September 30, 2017 totaled $2.6 million while new foreclosed properties totaled $2.7 million.  At September 30, 2017, the book value of properties under contracts to sell was $2.6 million; however, the closings had not occurred at quarter-end.  Write-downs on foreclosed properties for the third quarter 2017 totaled $0.9 million compared to $1.4 million in the second quarter 2017 and $0.4 million in the third quarter 2016.  Write-downs for the nine months ended September 30, 2017 totaled $2.9 million.

Net loan charge-offs for the quarter ended September 30, 2017 were $1.4 million, or 0.18% of average loans annualized, compared to $1.3 million, or 0.18%, experienced for the second quarter 2017 and $2.1 million, or 0.28%, for the third quarter 2016.  Of the net charge-offs for the quarter, $0.4 million were in commercial loans, $0.7 million were in indirect auto loans, $0.2 million were in residential loans, and $0.1 million were in consumer direct loans.  Allocations to loan loss reserves were $0.7 million for the quarter ended September 30, 2017 compared to $2.8 million for the quarter ended June 30, 2017 and $2.2 million for the quarter ended September 30, 2016.  Our reserve coverage (allowance for loan and lease loss reserve to nonperforming loans) at September 30, 2017 was 121.2% compared to 132.6% at June 30, 2017 and 126.5% at September 30, 2016.  Our loan loss reserve as a percentage of total loans outstanding was reduced to 1.17% at September 30, 2017 from the 1.20% at June 30, 2017 and the 1.22% at September 30, 2016.

Forward-Looking Statements

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 $4.1 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.

Community Trust Bancorp, Inc.
Financial Summary (Unaudited)
September 30, 2017
(in thousands except per share data and # of employees)
		Three				Three				Three				Nine				Nine
		Months				Months				Months				Months				Months
		Ended				Ended				Ended				Ended				Ended
		September 30, 2017				June 30, 2017				September 30, 2016				September 30, 2017				September 30, 2016
Interest income		$	39,844			$	38,411			$	36,679			$	115,023			$	109,580
Interest expense			4,874				4,171				3,452				12,723				9,970
Net interest income			34,970				34,240				33,227				102,300				99,610
Loan loss provision			666				2,764				2,191				4,659				5,829
Gains on sales of loans			390				251				595				897				1,357
Deposit service charges			6,499				6,199				6,563				18,658				18,680
Trust revenue			2,534				2,649				2,440				7,769				7,111
Loan related fees			792				773				1,260				2,570				2,610
Securities gains			48				18				458				58				522
Other noninterest income			1,939				2,421				1,870				6,140				5,646
Total noninterest income			12,202				12,311				13,186				36,092				35,926
Personnel expense			14,079				14,044				14,216				43,047				42,671
Occupancy and equipment			2,784				2,720				2,745				8,317				8,212
Data processing expense			1,772				1,757				1,601				5,318				4,729
FDIC insurance premiums			316				315				469				923				1,628
Other noninterest expense			7,981				8,730				7,656				24,537				22,881
Total noninterest expense			26,932				27,566				26,687				82,142				80,121
Net income before taxes			19,574				16,221				17,535				51,591				49,586
Income taxes			5,811				4,680				5,223				15,010				14,106
Net income		$	13,763			$	11,541			$	12,312			$	36,581			$	35,480
Memo: TEQ interest income		$	40,349			$	38,910			$	37,178			$	116,536			$	111,116
Average shares outstanding			17,633				17,626				17,554				17,625				17,532
Diluted average shares outstanding			17,653				17,645				17,569				17,645				17,548
Basic earnings per share		$	0.78			$	0.65			$	0.70			$	2.08			$	2.02
Diluted earnings per share		$	0.78			$	0.65			$	0.70			$	2.07			$	2.02
Dividends per share		$	0.33			$	0.32			$	0.32			$	0.97			$	0.94
Average balances:
Loans		$	3,095,826			$	3,027,044			$	2,931,791			$	3,026,236			$	2,908,115
Earning assets			3,838,013				3,782,548				3,664,598				3,775,572				3,640,043
Total assets			4,104,226				4,052,791				3,932,705				4,044,509				3,907,076
Deposits, including repurchase agreements			3,397,266				3,366,489				3,319,608				3,375,642				3,294,233
Interest bearing liabilities			2,763,745				2,731,147				2,634,254				2,718,939				2,624,794
Shareholders' equity			522,378				515,834				499,180				515,205				491,882
Performance ratios:
Return on average assets			1.33	%			1.14	%			1.25	%			1.21	%			1.21	%
Return on average equity			10.45	%			8.97	%			9.81	%			9.49	%			9.63	%
Yield on average earning assets (tax equivalent)			4.17	%			4.13	%			4.04	%			4.13	%			4.08	%
Cost of interest bearing funds (tax equivalent)			0.70	%			0.61	%			0.52	%			0.63	%			0.51	%
Net interest margin (tax equivalent)			3.67	%			3.68	%			3.66	%			3.68	%			3.71	%
Efficiency ratio (tax equivalent)			56.55	%			59.32	%			57.45	%			58.97	%			58.68	%
Loan charge-offs		$	2,443			$	2,189			$	2,962			$	7,123			$	8,729
Recoveries			(1,035	)			(845	)			(875	)			(2,922	)			(2,607	)
Net charge-offs		$	1,408			$	1,344			$	2,087			$	4,201			$	6,122
Market Price:
High		$	47.00			$	46.90			$	37.49			$	50.40			$	37.49
Low		$	40.33			$	41.07			$	33.71			$	40.33			$	30.89
Close		$	46.50			$	43.75			$	37.11			$	46.50			$	37.11

 

Community Trust Bancorp, Inc.

Financial Summary (Unaudited)

September 30, 2017

(in thousands except per share data and # of employees)