Community Trust Bancorp Inc's Comment on Competitors and Industry Peers
CTBI's subsidiaries face substantial competition for deposit, credit, trust,
wealth management, and brokerage relationships in the communities we serve.
Competing providers include state banks, national banks, thrifts, trust companies,
insurance companies, mortgage banking operations, credit unions, finance companies,
brokerage companies, and other financial and non-financial companies which may
offer products functionally equivalent to those offered by our subsidiaries.
As financial services become increasingly dependent on technology, permitting
transactions to be conducted by telephone, mobile banking, and the internet,
non-bank institutions are able to attract funds and provide lending and other
financial services without offices located in our market areas. Many of our
nonbank competitors have fewer regulatory constraints, broader geographic service
areas, greater capital and, in some cases, lower cost structures. In addition,
competition for quality customers has intensified as a result of changes in
regulation, consolidation among financial service providers, and advances in
technology and product delivery systems. Many of these providers offer services
within and outside the market areas served by our subsidiaries. We strive to
offer competitively priced products along with quality customer service to build
customer relationships in the communities we serve.
The United States and global markets, as well as general economic conditions,
have been disruptive and volatile. Some financial institutions have failed and
others have been forced to seek acquisition partners. Larger financial institutions
could strengthen their competitive position as a result of ongoing consolidation
within the financial services industry.
Banking legislation in Kentucky places no limits on the number of banks or
bank holding companies that a bank holding company may acquire. Interstate acquisitions
are allowed where reciprocity exists between the laws of Kentucky and the home
state of the bank or bank holding company to be acquired. Bank holding companies
continue to be limited to control of less than 15% of deposits held by banks
in the states where they do business (exclusive of inter-bank and foreign deposits).
The Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank
Act") may impact our competitive environment. Competition for deposits
may be increasing as a consequence of FDIC assessments shifting from deposits
to an asset based formula, as larger banks may move away from non-deposit funding
sources. Moreover, the Dodd-Frank Act's interstate branching provisions permit
banks to establish de novo branches at a location where a bank based in that
state could establish a branch.
No material portion of our business is seasonal. We are not dependent upon
any one customer or a few customers, and the loss of any one or a few customers
would not have a material adverse effect on us.
<< See the full list of CTBI competitors