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Fair Market Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2014

Fair Market Value of Financial Assets and Liabilities [Abstract]

Fair Value Measurements of Assets Measured at Fair Value on Recurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013 and indicate the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2014 Using
		Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies		$	188,932			$	0			$	188,932			$	0
State and political subdivisions			137,458				0				137,458				0
U.S. government sponsored agency mortgage-backed securities			288,907				0				288,907				0
Marketable equity securities			24,889				24,889				0				0
Mortgage servicing rights			2,968				0				0				2,968

(in thousands)						Fair Value Measurements at December 31, 2013 Using
		Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies		$	72,623			$	0			$	72,623			$	0
State and political subdivisions			116,703				0				116,703				0
U.S. government sponsored agency mortgage-backed securities			367,297				0				367,297				0
Marketable equity securities			52,782				52,782				0				0
Mortgage servicing rights			3,424				0				0				3,424

Reconciliation of Beginning and Ending Balances of Recurring Fair Value Measurements Using Significant Unobservable (Level 3) Inputs

Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs:

(in thousands)		2014				2013
		Mortgage Servicing Rights				Mortgage Servicing Rights
Beginning balance		$	3,424			$	2,364
Total recognized gains (losses)
Included in net income			(467	)			788
Issues			374				854
Settlements			(363	)			(582	)
Ending balance		$	2,968			$	3,424
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date		$	(467	)		$	788

Realized and Unrealized Gains and Losses Included in Net Income in Consolidated Statements of Income

Realized and unrealized gains and losses for items reflected in the table above are included in net income in the consolidated statements of income as follows:

(in thousands)		2014								2013
		Noninterest Income				Noninterest Expense				Noninterest Income				Noninterest Expense
Total gains (losses)		$	(830	)		$	0			$	206			$	0

Fair Value Measurements of Assets Measured at Fair Value on Nonrecurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of December 31, 2014 and December 31, 2013 and indicate the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2014 Using
		Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)		$	4,665			$	0			$	0			$	4,665
Other real estate/assets owned			6,472				0				0				6,472

(in thousands)						Fair Value Measurements at December 31, 2013 Using
		Fair Value				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)		$	6,830			$	0			$	0			$	6,830
Other real estate/assets owned			11,111				0				0				11,111

Quantitative Information about Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2014 and December 31, 2013.

(in thousands)		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at December 31, 2014			Valuation Technique(s)	Unobservable Input		Range (Weighted Average)
Mortgage servicing rights		$	2,968		Discount cash flows, computer pricing model	Constant prepayment rate			4.6% - 25.1% (11.3	%)
						Probability of default			0.00% - 100.0% (3.61	%)
						Discount rate			10.0% - 11.5% (10.13	%)
Impaired loans (collateral-dependent)		$	4,665		Market comparable properties	Marketability discount			5.0% - 10.0% (7.0	%)
Other real estate/assets owned		$	6,472		Market comparable properties	Comparability adjustments (%)			3.0% - 67.0% (18.0	%)

(in thousands)		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at December 31, 2013			Valuation Technique(s)	Unobservable Input		Range (Weighted Average)
Mortgage servicing rights		$	3,424		Discount cash flows, computer pricing model	Constant prepayment rate			4.3% - 23.6% (9.7	%)
						Probability of default			0.00% - 33.33% (3.36	%)
						Discount rate		Not applicable (10.0%)
Impaired loans (collateral-dependent)		$	6,830		Market comparable properties	Marketability discount			5.0% - 10.0% (7.0	%)
Other real estate/assets owned		$	11,111		Market comparable properties	Comparability adjustments (%)			5.0% - 38.0% (9.0	%)

Estimated Fair Value of Financial Instruments and Level Within Fair Value Hierarchy of Valuation Techniques

The following table presents estimated fair value of CTBI's financial instruments as of December 31, 2014 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2014 Using
		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents		$	105,517			$	105,517			$	0			$	0
Certificates of deposit in other banks			8,197				0				8,213				0
Securities available-for-sale			640,186				24,889				615,297				0
Securities held-to-maturity			1,662				0				1,644				0
Loans held for sale			2,264				2,321				0				0
Loans, net			2,699,377				0				0				2,691,906
Federal Home Loan Bank stock			17,927				0				17,927				0
Federal Reserve Bank stock			4,869				0				4,869				0
Accrued interest receivable			13,548				0				13,548				0
Mortgage servicing rights			2,968				0				0				2,968
Financial liabilities:
Deposits		$	2,874,257			$	677,626			$	2,192,848			$	0
Repurchase agreements			235,186				0				0				235,193
Federal funds purchased			11,041				0				11,041				0
Advances from Federal Home Loan Bank			61,170				0				61,106				0
Long-term debt			61,341				0				0				35,615
Accrued interest payable			908				0				908				0
Unrecognized financial instruments:
Letters of credit		$	0			$	0			$	0			$	0
Commitments to extend credit			0				0				0				0
Forward sale commitments			0				0				0				0

The following table presents estimated fair value of CTBI's financial instruments as of December 31, 2013 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2013 Using
		Carrying Amount				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents		$	106,641			$	106,641			$	0			$	0
Certificates of deposit in other banks			9,568				0				9,582				0
Securities available-for-sale			609,405				52,782				556,623				0
Securities held-to-maturity			1,662				0				1,601				0
Loans held for sale			828				845				0				0
Loans, net			2,581,346				0				0				2,589,811
Federal Home Loan Bank stock			25,673				0				25,673				0
Federal Reserve Bank stock			4,886				0				4,886				0
Accrued interest receivable			12,886				0				12,886				0
Mortgage servicing rights			3,424				0				0				3,424
Financial liabilities:
Deposits		$	2,855,074			$	621,321			$	2,230,608			$	0
Repurchase agreements			208,067				0				0				207,992
Federal funds purchased			12,465				0				12,465				0
Advances from Federal Home Loan Bank			1,286				0				1,531				0
Long-term debt			61,341				0				0				31,362
Accrued interest payable			1,032				0				1,032				0
Unrecognized financial instruments:
Letters of credit		$	0			$	0			$	0			$	0
Commitments to extend credit			0				0				0				0
Forward sale commitments			0				0				0				0

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Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity.

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