XML 84 R21.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Employee Benefits | 12 Months Ended
--- | ---
Dec. 31, 2012
Employee Benefits [Abstract] |
Employee Benefits | 14. Employee Benefits CTBI maintains two separate retirement savings plans, a 401(k) Plan and an Employee Stock Ownership Plan ("ESOP"). The 401(k) Plan is available to all employees (age 21 and over) with one year of service and who work at least 1,000 hours per year. Participants in the plan have the option to contribute from 1% to 15% of their annual compensation. CTBI matches 50% of participant contributions up to 4% of gross pay. CTBI may at its discretion, contribute an additional percentage of covered employees' compensation. CTBI's matching contributions were $1.0 million for the year ended December 31, 2012 and $0.9 million for both of the years ended December 31, 2011 and 2010. The 401(k) Plan owned 501,388, 531,361, and 507,932 shares of CTBI's common stock at December 31, 2012, 2011, and 2010, respectively. Substantially all shares owned by the 401(k) were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase. The ESOP Plan has the same entrance requirements as the 401(k) Plan above. CTBI currently contributes 4% of covered employees' gross compensation to the ESOP. The ESOP uses the contributions to acquire shares of CTBI's common stock. CTBI's contributions to the ESOP were $1.4 million for both of the years ended December 31, 2012 and 2011 and $1.3 million for the year ended December 31, 2010. The ESOP owned 680,613, 661,691, and 647,158 shares of CTBI's common stock at December 31, 2012, 2011, and 2010, respectively. Substantially all shares owned by the ESOP were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase. Stock-Based Compensation: CTBI currently maintains one active and one inactive incentive stock option plan covering key employees. The 2006 Stock Ownership Incentive Plan ("2006 Plan") was approved by the Board of Directors and the Shareholders in 2006. The 1998 Stock Option Plan ("1998 Plan") was approved by the Board of Directors and the Shareholders in 1998. The 1998 Plan was rendered inactive as of April 26, 2006. The 2006 Plan had 1,500,000 shares authorized, 1,245,189 of which were available at December 31, 2012 for future grants. In addition, any shares reserved for issuance under the 1998 Stock Option Plan ("1998 Plan") in excess of the number of shares as to which options or other benefits are awarded thereunder, plus any shares as to which options or other benefits granted under the 1998 Plan may lapse, expire, terminate or be canceled, shall also be reserved and available for issuance or reissuance under the 2006 Plan. As of December 31, 2012, the 1998 Plan had 1,046,831 shares authorized, 198,024 of which were transferred to the 2006 Plan. The total shares available for issuance under the 2006 Plan as of December 31, 2012 was 1,443,213. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of CTBI's equity compensation plans as of December 31, 2012:
Plan Category (shares in thousands) |  | Number of Shares to Be Issued Upon Exercise/Vesting |  |  | Weighted Average Price |  |  | Shares Available for Future Issuance |
Equity compensation plans approved by shareholders: |  |  |  |  |  |  |  |  |
Stock options |  | 326 |  |  | $32.64 |  |  | 1,443 (a) |
Restricted stock |  | (c) |  |  | (b) |  |  | (a) |
Performance units |  | (d) |  |  | (b) |  |  | (a) |
Stock appreciation rights ("SARs") |  | (e) |  |  | (b) |  |  | (a) |
Total |  |  |  |  |  |  |  | 1,443 |
(a) | Under the 2006 Plan, 1.5 million shares (plus any shares reserved for issuance under the 1998 Stock Option Plan) were authorized for issuance as nonqualified and incentive stock options, SARS, restricted stock and performance units. As of December 31, 2012, the above shares remained available for issuance.
(b) | Not applicable
(c) | The maximum number of shares of Restricted Stock that may be granted is 400,000 shares, and the maximum that may be granted to a participant during any calendar year is 40,000 shares.
(d) | No performance units had been issued as of December 31, 2012. The maximum payment that can be made pursuant to Performance Units granted to any one Participant in any calendar year shall be $250,000.
(e) | No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a Participant during any calendar year shall be 100,000 shares.
The following table details the shares available for future issuance under the 2006 Plan at December 31, 2012.
Plan Category |  | Shares Available for Future Issuance |
Shares available at January 1, 2012 |  | 1,442,719 |
1998 Plan forfeitures in 2012 |  | 100 |
2006 Plan restricted stock issuances in 2012 |  | (331 | )
2006 Plan forfeitures in 2012 |  | 725 |
Shares available for future issuance |  | 1,443,213 |
CTBI uses a Black-Scholes option pricing model with the following weighted average assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each option grant for the year end:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Expected option life (in years) |  |  | -- |  |  |  | -- |  |  |  | 7.5 |
Expected volatility |  |  | -- |  |  |  | -- |  |  |  | 0.391 |
Expected dividend yield |  |  | -- |  |  |  | -- |  |  |  | 4.78 | %
Risk-free interest rate |  |  | -- |  |  |  | -- |  |  |  | 3.139 | %
The expected option life is derived from the "safe-harbor" rules for estimating option life in ASC 718, Share-Based Payment. The expected volatility is based on historical volatility of the stock using a historical look back that approximates the expected life of the option grant. The interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. CTBI's stock-based compensation expense for the years 2012, 2011, and 2010 was $0.6 million, $0.7 million, and $0.8 million, respectively. Dividends paid on restricted stock shares were $121 thousand, $120 thousand, and $74 thousand, respectively, for the same periods. CTBI's stock option activity for the 2006 Plan for the years ended December 31, 2012, 2011, and 2010 is summarized as follows:
December 31 |  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |
Outstanding at beginning of year |  |  | 152,571 |  |  | $ | 34.57 |  |  |  | 177,125 |  |  | $ | 34.61 |  |  |  | 174,678 |  |  | $ | 34.85 |
Granted |  |  | 0 |  |  |  | -- |  |  |  | 0 |  |  |  | -- |  |  |  | 4,525 |  |  |  | 25.09 |
Exercised |  |  | (3,188 | ) |  |  | 28.51 |  |  |  | 0 |  |  |  | -- |  |  |  | 0 |  |  |  | -- |
Forfeited/expired |  |  | (725 | ) |  |  | 30.05 |  |  |  | (24,554 | ) |  |  | 34.84 |  |  |  | (2,078 | ) |  |  | 33.83 |
Outstanding at end of year |  |  | 148,658 |  |  | $ | 34.72 |  |  |  | 152,571 |  |  | $ | 34.57 |  |  |  | 177,125 |  |  | $ | 34.61 |
Exercisable at end of year |  |  | 102,323 |  |  | $ | 37.69 |  |  |  | 101,092 |  |  | $ | 37.81 |  |  |  | 90,962 |  |  | $ | 37.70 |
A summary of the status of CTBI's 2006 Plan for nonvested shares as of December 31, 2012, and changes during the year ended December 31, 2012, is presented as follows:
Nonvested Shares |  | Shares |  |  | Weighted Average Grant Date Fair Value |
Nonvested at January 1, 2012 |  |  | 51,479 |  |  | $ | 6.53 |
Granted |  |  | 0 |  |  |  | -- |
Vested |  |  | (4,894 | ) |  |  | 7.02 |
Forfeited |  |  | (250 | ) |  |  | 7.05 |
Nonvested at December 31, 2012 |  |  | 46,335 |  |  | $ | 6.48 |
The 2006 Plan had options with the following remaining lives at December 31, 2012:
2006 Option Plan |
Remaining Life |  | Outstanding Options |  |  | Weighted Average Price |
Four years |  |  | 89,746 |  |  | $ | 38.95 |
Five years |  |  | 46,700 |  |  |  | 28.32 |
Six years |  |  | 7,937 |  |  |  | 29.82 |
Seven years |  |  | 4,275 |  |  |  | 25.09 |
Total outstanding |  |  | 148,658 |  |  |  |  |
Weighted average price |  |  |  |  |  | $ | 34.72 |
No stock options were granted during 2012 or 2011. The weighted-average fair value of options granted from the 2006 Plan during the year 2010 was $0.03 million or $6.53 per share. The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended December 31, 2012, 2011, and 2010:
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Options exercised |  | $ | 22 |  |  | $ | 0 |  |  | $ | 0 |
Options exercisable |  |  | 88 |  |  |  | 43 |  |  |  | 0 |
Outstanding options |  |  | 388 |  |  |  | 345 |  |  |  | 0 |
The following table shows restricted stock activity for the years ended December 31, 2012, 2011, and 2010:
December 31 |  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Grants |  |  | Weighted Average Fair Value at Grant |  |  | Grants |  |  | Weighted Average Fair Value at Grant |  |  | Grants |  |  | Weighted Average Fair Value at Grant |
Outstanding at beginning of year |  |  | 96,543 |  |  | $ | 27.91 |  |  |  | 52,834 |  |  | $ | 26.10 |  |  |  | 16,786 |  |  | $ | 28.83 |
Granted |  |  | 331 |  |  |  | 30.92 |  |  |  | 45,542 |  |  |  | 30.09 |  |  |  | 44,996 |  |  |  | 25.09 |
Exercised |  |  | -- |  |  |  | -- |  |  |  | (1,617 | ) |  |  | 30.09 |  |  |  | (4,474 | ) |  |  | 26.14 |
Forfeited/expired |  |  | -- |  |  |  | -- |  |  |  | (216 | ) |  |  | 30.09 |  |  |  | (4,474 | ) |  |  | 26.14 |
Outstanding at end of year |  |  | 96,874 |  |  | $ | 27.92 |  |  |  | 96,543 |  |  | $ | 27.91 |  |  |  | 52,834 |  |  | $ | 26.10 |
During 2011 and 2010, the Compensation Committee of the Board of Directors approved the accelerated vesting of restricted stock grants of certain employees who had retired. The total amount of restricted stock grants for which vesting was accelerated during the years 2011 and 2010 was 1,617 shares at a weighted average fair value of $30.09 and 4,474 shares at a weighted average fair value of $26.14, respectively. During 2010, the Compensation Committee also approved the accelerated vesting of regular stock options consisting of 5,215 shares with an option price of $38.95 and 3,750 shares with an option price of $28.32. CTBI's stock option activity for the 1998 Plan for the years ended December 31, 2012, 2011, and 2010 is summarized as follows:
December 31 |  | 2012 |  |  | 2011 |  |  | 2010 |
|  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |  |  | Options |  |  | Weighted Average Exercise Price |
Outstanding at beginning of year |  |  | 321,540 |  |  | $ | 26.85 |  |  |  | 371,077 |  |  | $ | 27.07 |  |  |  | 420,731 |  |  | $ | 25.64 |
Granted |  |  | 0 |  |  |  | -- |  |  |  | 0 |  |  |  | -- |  |  |  | 0 |  |  |  | -- |
Exercised |  |  | (143,914 | ) |  |  | 21.83 |  |  |  | (6,824 | ) |  |  | 19.63 |  |  |  | (48,730 | ) |  |  | 14.66 |
Forfeited/expired |  |  | (100 | ) |  |  | 32.44 |  |  |  | (42,713 | ) |  |  | 29.94 |  |  |  | (924 | ) |  |  | 32.44 |
Outstanding at end of year |  |  | 177,526 |  |  | $ | 30.89 |  |  |  | 321,540 |  |  | $ | 26.85 |  |  |  | 371,077 |  |  | $ | 27.07 |
Exercisable at end of year |  |  | 177,526 |  |  | $ | 30.89 |  |  |  | 321,540 |  |  | $ | 26.85 |  |  |  | 361,077 |  |  | $ | 26.92 |
The 1998 Plan had options with the following remaining lives at December 31, 2012:
1998 Option Plan |
Remaining Life |  | Outstanding Options |  |  | Weighted Average Price |
One year or less |  |  | 2,435 |  |  | $ | 20.99 |
Two years |  |  | 34,100 |  |  |  | 27.85 |
Three years |  |  | 57,849 |  |  |  | 30.88 |
Four years |  |  | 83,142 |  |  |  | 32.44 |
Total outstanding |  |  | 177,526 |  |  |  |  |
Weighted average price |  |  |  |  |  | $ | 30.89 |
The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 1998 Plan for the years ended December 31, 2012, 2011, and 2010:
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Options exercised |  | $ | 690 |  |  | $ | 27 |  |  | $ | 627 |
Options exercisable |  |  | 1,517 |  |  |  | 833 |  |  |  | 1,206 |
Outstanding options |  |  | 1,517 |  |  |  | 833 |  |  |  | 1,206 |
There were no nonvested shares in the 1998 Plan shares as of December 31, 2012 and December 31, 2011. The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2012, 2011, and 2010 and the total grant-date fair value of shares vested, cash received from option exercises under all share-based payment arrangements, and the actual tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the years ended December 31, 2012, 2011, and 2010.
(in thousands) |  | 2012 |  |  | 2011 |  |  | 2010 |
Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end |  | $ | 1,133 |  |  | $ | 1,729 |  |  | $ | 990 |
Grant date fair value of shares vested for the year |  |  | 34 |  |  |  | 284 |  |  |  | 719 |
Cash received from option exercises under all share-based payment arrangements for the year |  |  | 3,137 |  |  |  | 134 |  |  |  | 672 |
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year |  |  | 496 |  |  |  | 23 |  |  |  | 205 |
The unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2012 is expected to be recognized over a weighted-average period of 1.5 years.

X
- Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration