Employee Benefits

12 Months Ended

Dec. 31, 2024

14. Employee Benefits

CTBI maintains two separate retirement savings plans, a 401(k) Plan and an Employee Stock Ownership Plan (“ESOP”).

The 401(k) Plan is available for participant contributions to all employees (age 21 and over) who are credited with 90 days of service and for employer matching as described below at one year of service (12 consecutive month period with at least 1,000 hours). The company match will continue to begin with one year of credited service. Participants in the plan have the option to contribute from 1% to 20% of their annual compensation. CTBI matches 50% of participant contributions up to 8% of gross pay. CTBI may, at our discretion, contribute an additional percentage of covered employees’ compensation. CTBI’s matching contributions were $1.4 million, $1.2 million, and $1.2 million for the three years ended December 31, 2024, 2023, and 2022, respectively. The 401(k) Plan owned 304,554, 367,106, and 348,859 shares of CTBI’s common stock at December 31, 2024, 2023, and 2022, respectively. Substantially all shares owned by the 401(k) Plan were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase.

The ESOP is available to all employees (age 21 and over) who are credited with one year of service (12 consecutive month period with at least 1,000 hours). CTBI currently contributes 4% of covered employees’ compensation to the ESOP. The ESOP uses the contributions to acquire shares of CTBI’s common stock. CTBI’s contributions to the ESOP were $2.0 million, $1.8 million, and $1.7 million for the three years ended December 31, 2024, 2023, and 2022, respectively. The ESOP owned 760,396, 772,351, and 734,677 shares of CTBI’s common stock at December 31, 2024, 2023, and 2022, respectively. Substantially all shares owned by the ESOP were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase.

Stock-Based Compensation:

As of December 31, 2024, CTBI maintained one active and one inactive incentive stock ownership plan covering key employees. The 2025 Employee Stock Ownership Incentive Plan (“2025 Plan”) was approved by the Board of Directors and the Shareholders in 2024 and became active on February 1, 2025. The 2015 Stock Ownership Incentive Plan (“2015 Plan”) was approved by the Board of Directors and the Shareholders in 2015. The 2015 plan was rendered inactive as of February 1, 2025. The 2006 Stock Ownership Incentive Plan (“2006 Plan”) was approved by the Board of Directors and the Shareholders in 2006. The 2006 Plan was rendered inactive as of April 28, 2015, and all outstanding options had been exercised under the 2006 Plan as of December 31, 2024. The 2025 Plan was not active as of December 31, 2024. The 2015 Plan had 550,000 shares authorized, 335,583 of which were available at December 31, 2024. Shares issuable pursuant to awards which were granted under the 2015 Plan on or before their respective expiration or termination dates will be issued from the remaining shares reserved for issuance under the 2015 Plan. The shares of common stock reserved for issuance under the 2015 Plan in excess of the number of shares as to which options or other benefits are awarded thereunder, and any shares as to which options or other benefits granted under the 2015 Plan may lapse, expire, terminate, or be canceled, will not be reserved and available for issuance or reissuance under the 2025 Plan. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of CTBI’s equity compensation plans as of December 31, 2024:

Plan Category (shares in thousands)

Number of

Shares to Be

Issued Upon

Exercise

Weighted

Average Price

Available for

Future Issuance

Equity compensation plans approved by shareholders:

Stock options

336

(a)

Restricted stock

(c)

(b)

(a)

Performance units

(d)

(b)

(a)

Stock appreciation rights (“SARs”)

(e)

(b)

(a)

Total

336

(a)

Under the 2025 Plan, which became effective February 1, 2025,550,000 shares are authorized for issuance; no shares have been issued as of December 31, 2024. The maximum number of stock options that may be granted to a participant during any calendar year is 100,000 shares. Under the 2015 Plan, 550,000 shares were authorized for issuance; 221,949 had been issued as of December 31, 2024. In January of 2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. The 2015 Plan was rendered inactive on February 1, 2025.

(b)	Not applicable.

(c)	The maximum number of shares of restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a participant during any calendar year is 75,000 shares.

(d)	No performance units payable in stock had been issued as of December 31, 2024. The maximum payment that can be made pursuant to performance units granted to any one participant in any calendar year is $1,000,000.

(e)	No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any calendar year is 100,000 shares.

The 2025 Plan became effective on February 1, 2025; therefore, no activity is reportable as of December 31, 2024.

The following table details the shares available for future issuance under the 2015 Plan at December 31, 2024.

Plan Category	Shares Available for Future Issuance
Shares available at January 1, 2024		348,146
Stock option grants		0
Restricted stock grants		(15,000	)
Forfeitures		2,437
Shares available for future issuance at December 31, 2024		335,583

There were no stock options granted in 2024, 2023, or 2022.

The 2015 Plan:

There was no stock option activity for the 2015 Plan for the years ended December 31, 2024, 2023, and 2022.

The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2024, 2023, and 2022:

December 31	2024					2023					2022
	Grants			Weighted Average Fair Value at Grant		Grants			Weighted Average Fair Value at Grant		Grants			Weighted Average Fair Value at Grant
Outstanding at beginning of year		96,840		$	43.75		68,137		$	44.13		47,063		$	42.90
Granted		15,000			41.29		52,865			43.10		50,438			45.15
Vested		(22,831	)		43.37		(23,372	)		43.32		(29,364	)		43.92
Forfeited		(2,437	)		42.87		(790	)		44.87		0			-
Outstanding at end of year		86,572		$	43.45		96,840		$	43.75		68,137		$	44.13

The 2006 Plan:

CTBI’s stock option activity for the 2006 Plan for the years ended December 31, 2024, 2023, and 2022 is summarized as follows:

December 31	2024				2023				2022
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding at beginning of year		20,000	$	32.27		20,000	$	32.27		20,000	$	32.27
Exercised		20,000		32.27		0		0		0		0
Outstanding at end of year		0	$	0.00		20,000	$	32.27		20,000	$	32.27

Exercisable at end of year		0	$	0.00		20,000	$	32.27		20,000	$	32.27

There were no outstanding options at December 31, 2024. There were no options granted from the 2006 Plan during the years 2024, 2023, and 2022.

The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended December 31, 2024, 2023, and 2022:

(in thousands)	2024		2023		2022
Options exercised	$	335	$	0	$	0
Options exercisable		0		232		273
Outstanding options		0		232		273

There was no restricted stock activity for the 2006 Plan for the years ended December 31, 2024, 2023, and 2022.

The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2024, 2023, and 2022 and the total grant-date fair value of shares vested, cash received from option exercises under all share-based payment arrangements, and the actual tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the years ended December 31, 2024, 2023, and 2022.

(in thousands)	2024		2023		2022
Unrecognized compensation cost of nonvested share-based compensation arrangements granted under the plan at year-end	$	2,277	$	2,954	$	2,108
Total fair value of shares vested for the year		954		974		1,306
Cash received from option exercises under all share-based payment arrangements for the year		645		0		0
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year		84		0		0

The unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2024 is expected to be recognized over a weighted-average period of 2.4 years.