XML 45 R23.htm IDEA: XBRL DOCUMENT v3.2.0.727

Fair Market Value of Financial Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2015

Fair Market Value of Financial Assets and Liabilities [Abstract]

Fair Value Assets Measured 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 June 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

						Fair Value Measurements at June 30, 2015 Using
(in thousands)		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		$	181,714			$	497			$	181,217			$	0
State and political subdivisions			135,161				0				135,161				0
U.S. government sponsored agency mortgage-backed securities			239,564				0				239,564				0
CRA investment funds			24,797				24,797				0				0
Mortgage servicing rights			3,235				0				0				3,235

						Fair Value Measurements at December 31, 2014 Using
(in thousands)		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			$	492			$	188,440			$	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
CRA investment funds			24,889				24,889				0				0
Mortgage servicing rights			2,968				0				0				2,968

Reconciliation of the Beginning and Ending Balance of Recurring Fair Value Measurement 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 for the three and six months ended June 30, 2015 and 2014:

Mortgage Servicing Rights
		Three Months Ended								Six Months Ended
		June 30								June 30
(in thousands)		2015				2014				2015				2014
Beginning balance		$	2,797			$	3,258			$	2,968			$	3,424
Total recognized gains (losses)
Included in net income			446				(166	)			285				(292	)
Issues			213				82				297				145
Settlements			(221	)			(112	)			(315	)			(215	)
Ending balance		$	3,235			$	3,062			$	3,235			$	3,062
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		$	446			$	(166	)		$	285			$	(292	)

Realized and Unrealized Gains and Losses for Items Included in Net Income in the Consolidated Statement of Income

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

Noninterest Income
		Three Months Ended								Six Months Ended
		June 30								June 30
(in thousands)		2015				2014				2015				2014
Total gains (losses)		$	225			$	(278	)		$	(30	)		$	(507	)

Fair Value Measurements of Recognized Assets Measured 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 June 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

						Fair Value Measurements at June 30, 2015 Using
(in thousands)		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)		$	2,677			$	0			$	0			$	2,677
Other real estate/assets owned			1,070				0				0				1,070

						Fair Value Measurements at December 31, 2014 Using
(in thousands)		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

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 June 30, 2015 and December 31, 2014.

(in thousands)		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at June 30, 2015			Valuation Technique(s)	Unobservable Input		Range (Weighted Average)
Mortgage servicing rights		$	3,235		Discount cash flows, computer pricing model	Constant prepayment rate			6.0% - 22.3% (9.8%)
						Probability of default			0.0% - 100.0% (3.0%)
						Discount rate			10.0% - 11.0% (10.1%)
Impaired loans (collateral-dependent)		$	2,677		Market comparable properties	Marketability discount			5.0% - 10.0% (7.0%)
Other real estate/assets owned		$	1,070		Market comparable properties	Comparability adjustments			5.0% - 30.0% (12.1%)

(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			0.0% - 100.0% (3.6%)
						Discount rate			10.0% - 11.5% (10.1%)
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%)

Fair Value of Financial Instruments and Levels within the Fair Value Hierarchy of the Valuation Techniques

The following table presents estimated fair value of CTBI's financial instruments as of June 30, 2015 and indicates the level within the fair value hierarchy of the valuation techniques.

						Fair Value Measurements at June 30, 2015 Using
(in thousands)		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		$	145,031			$	145,031			$	0			$	0
Certificates of deposit in other banks			6,665				0				6,675				0
Securities available-for-sale			581,236				25,294				555,942				0
Securities held-to-maturity			1,661				0				1,641				0
Loans held for sale			1,993				2,019				0				0
Loans, net			2,757,641				0				0				2,753,742
Federal Home Loan Bank stock			17,927				0				17,927				0
Federal Reserve Bank stock			4,887				0				4,887				0
Accrued interest receivable			12,801				0				12,801				0
Mortgage servicing rights			3,235				0				0				3,235
Financial liabilities:
Deposits		$	2,913,071			$	701,958			$	2,204,811			$	0
Repurchase agreements			241,776				0				0				241,765
Federal funds purchased			12,220				0				12,220				0
Advances from Federal Home Loan Bank			51,112				0				51,037				0
Long-term debt			61,341				0				0				49,073
Accrued interest payable			1,336				0				1,336				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, 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				25,381				614,805				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

X

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (c)(1),(d)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisGainLossIncludedInEarningsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 5



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19296-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (a),(b)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 1



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (c)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 3



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19279-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 12



-URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611



Reference 2: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258



Reference 3: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 11



-URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611



Reference 4: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 45



-Paragraph 2



-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610



Reference 5: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 30



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612



Reference 6: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 825



-SubTopic 10



-Section 50



-Paragraph 10



-Subparagraph (a)



-URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611

+ Details

Name:	us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of quantitative information about the inputs used in the fair value measurement of assets. This disclosure may include, but is not limited to, the fair value of the asset, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef



-Publisher FASB



-Name Accounting Standards Codification



-Topic 820



-SubTopic 10



-Section 50



-Paragraph 2



-Subparagraph (bbb)



-URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueInputsAssetsQuantitativeInformationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration