Community Trust Bancorp (NASDAQ: CTBI) is a bank that offers its financial services to small and medium-sized communities. The company has been seeing some positive performance recently, despite some of the toughest conditions seen in decades.
CTBI Remains Unaffected by Fed Hike
Stock for Community Trust Bancorp (CTBI) climbed by an impressive 15% in the last six months, a time which saw the S&P 500 by over 10%, and when investors have been actively avoiding financial stocks. Interest around the stock remains impressively high, even after the 75 basis interest rate hike by the US Federal Reserve. Although the move is yet to show an impact on inflation levels, once they subside, CTBI stock could potentially undergo a significant rally, taking it to even higher levels. A core reason why Community Trust Bancorp is viewed with such positivity by the bulls in the market is due to the high-grade assets it boasts within its portfolio.
Investment Potential of Community Trust Bancorp
In addition to the high-grade asset quality of CTBI, and its reputation among market participants, there are some serious points of attraction from an investment standpoint. For one, the community bank saw its loan portfolio climb by almost $43 million, which is a highly significant profitability indicator. Moreover, these newer loans are at more attractive interest rate margins, which are further enhancing profitability for CTBI. Furthermore, the bank has also been consistently upping its dividend payments on a yearly basis since 2001, with a yield of 3.8% and a payout ratio of 37%.
Conclusion
CTBI stock is, by several metrics, an attractive investment worth taking into consideration. One reason the stock may not fall so much in the face of increasing macroeconomic pressure is its reputation as a consistent dividend payer. A low stock price would entail a terrific yield, too good to ignore.
