Stock-Based Compensation

9 Months Ended

Sep. 30, 2025

Note 2 – Stock-Based Compensation

Restricted stock expense for the three months ended September 30, 2025 and 2024 was $399 thousand and $293 thousand, respectively, including $48 thousand and $41 thousand, respectively, in dividends paid for those periods. Restricted stock expense for the nine months ended September 30, 2025 and 2024 was $1.3 million and $1.0 million, respectively, including $138 thousand and $121 thousand, respectively, in dividends paid for those periods. As of September 30, 2025, there was a total of $2.9 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 2.8 years.

The following table shows restricted stock activity for the three months ended September 30, 2025 and 2024:

September 30	2025					2024
	Grants			Weighted Average Fair Value at Grant		Grants		Weighted Average Fair Value at Grant
Outstanding at beginning of period		91,442		$	47.29		86,572	$	43.45
Granted		0			-		0		-
Vested		0			-		0		-
Forfeited		(315	)		51.29		0		-
Outstanding at end of period		91,127		$	47.28		86,572	$	43.45

The following table shows restricted stock activity for the nine months ended September 30, 2025 and 2024:

September 30	2025					2024
	Grants			Weighted Average Fair Value at Grant		Grants			Weighted Average Fair Value at Grant
Outstanding at beginning of year		86,572		$	43.45		96,840		$	43.75
Granted		38,538			53.53		15,000			41.29
Vested		(28,106	)		44.11		(22,831	)		43.37
Forfeited		(5,877	)		47.00		(2,437	)		42.87
Outstanding at end of period		91,127		$	47.28		86,572		$	43.45

The restricted stock was issued pursuant to the terms of CTBI’s 2015 Stock Ownership Incentive Plan. The restrictions on these shares of restricted stock will lapse ratably over four years, subject to such employee’s continued employment, except for 5,000 shares granted in January 2025 pursuant to a management retention restricted stock award which will cliff vest at the end of five years. However, in the event of certain participant employee termination events occurring within 24 months of a change in control of CTBI or the death of the participant, the restrictions will lapse, and in the event of the participant’s disability, the restrictions will lapse on a pro rata basis. The Compensation Committee will have discretion to review and revise restrictions applicable to a participant’s restricted stock in the event of the participant’s retirement. CTBI recognizes forfeitures when they occur.

There was no stock option activity for the three and nine months ended September 30, 2025. The remaining 20,000 stock options outstanding as of the beginning of 2024 were exercised during the three months ended September 30, 2024. There was no compensation expense related to stock option grants for the three and nine months ended September 30, 2025 and 2024 and no unrecognized compensation expense related to unvested stock option awards, as all stock option awards have fully vested.