Community Trust Bancorp (CTBI) in Pikeville, Ky., disclosed in a recent regulatory filing that it could face sanctions from the Federal Reserve Board tied to its overdraft policy. The Fed reportedly determined that "certain aspects" of CTBI's overdraft assessment process violate a provision of the Federal Trade Commission Act that prohibits unfair and deceptive trade practices. The Fed informed the company that it must make changes, revise its disclosures, and refund account holders who were charged certain fees since June 28, 2010. CTBI said it will recognize an accrual against earnings during the fourth quarter, though it has not yet outlined the amount. Community Trust could face further sanctions that may include limitations on acquisition activity, settlements, fines, orders, or injunctions.