Community Trust reports lower fourth-quarter earnings amid investigation

Pikeville-based Community Trust Bancorp Inc. reported earnings of 56 cents a share for the fourth quarter, down from 68 cents for the same period of 2012.

Earnings per share for the calendar year 2013 were $2.90, the same as in 2012.

On Nov. 15, Community Trust reported an investigation by the Federal Reserve that the company expected to result in an accrual against earnings in the fourth quarter of 2013. The final determination of costs, including customer refunds, has not occurred, according to a company news release. The company's management has developed an estimated range of outcomes, including a maximum and minimum exposure, and has accrued $6.2 million, which the news release describes as the amount within that range that is considered the most likely cost.

Non-performing loans at $43.6 million increased $7.6 million from Dec. 31, 2012, and $1.3 million from Sept. 30, 2013. Deposits, including repurchase agreements, declined $50.8 million from Dec. 31, 2012, and $25.9 million during the quarter.