Community Trust Bancorp Inc. anticipates getting slapped with two citations for violations based on alleged unfair and deceptive practices with respect to two of unit Community Trust Bank Inc.'s add-on products.
According to a Jan. 18 earnings release, the assumption is based on a recent discussion with a regulatory agency representative — as the two add-on products are undergoing a regulatory review.
The company evaluated the possible violations and the potential financial impact and established an accrual in 2014 for possible customer reimbursements.
The bank has received no final notice regarding the violations, nor has it been provided with other details pertaining to the amount or time period related to a reimbursement. The actual amount of reimbursement may materially vary from the amount management has evaluated as most likely at Dec. 31, 2016.
The Pikeville, Ky.-based company reported 2016 fourth-quarter net income of $11.9 million, or 67 cents per share, compared to $11.9 million, or 68 cents per share, for the same period a year ago. Full-year 2016 net income was $47.3 million, or $2.70 per share, compared to 2015 full-year net income of $46.4 million, or $2.66 per share.