XML 36 R21.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2017
Income Taxes [Abstract] |
Income Taxes | 14. Income Taxes The components of the provision for income taxes, exclusive of tax effect of unrealized securities gains and losses, are as follows:
(in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Current income tax expense |  | $ | 20,108 |  |  | $ | 18,417 |  |  | $ | 18,416 |
Deferred income tax expense |  |  | (259 | ) |  |  | 701 |  |  |  | 115 |
Effect of Tax Cuts & Jobs Act (benefit) |  |  | (2,831 | ) |  |  | - |  |  |  | - |
Total income tax expense |  | $ | 17,018 |  |  | $ | 19,118 |  |  | $ | 18,531 |
The Tax Cuts and Jobs Act (the "Act") was enacted in December 2017. The Act reduces the U.S. federal corporate tax rate from 35 percent to 21 percent. As of December 31, 2017, we have substantially completed our accounting for the tax effects of enactment of the Act; however, in certain cases, we have made a reasonable estimate of the effects on our existing deferred tax balances. We do not believe the actual results will vary materially from those estimates. The effect of the Tax Cuts and Jobs Act (benefit) listed above reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent. A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below:
(in thousands) |  | 2017 |  |  | 2016 |  |  | 2015 |
Computed at the statutory rate |  | $ | 23,979 |  |  |  | 35.00 | % |  | $ | 23,262 |  |  |  | 35.00 | % |  | $ | 22,737 |  |  |  | 35.00 | %
Adjustments resulting from: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tax-exempt interest |  |  | (1,259 | ) |  |  | (1.84 | ) |  |  | (1,289 | ) |  |  | (1.94 | ) |  |  | (1,275 | ) |  |  | (1.96 | )
Housing and new markets credits |  |  | (2,579 | ) |  |  | (3.76 | ) |  |  | (2,680 | ) |  |  | (4.03 | ) |  |  | (2,692 | ) |  |  | (4.14 | )
Dividends received deduction |  |  | (129 | ) |  |  | (0.19 | ) |  |  | (136 | ) |  |  | (0.20 | ) |  |  | (128 | ) |  |  | (0.20 | )
Bank owned life insurance |  |  | (492 | ) |  |  | (0.72 | ) |  |  | (518 | ) |  |  | (0.78 | ) |  |  | (549 | ) |  |  | (0.84 | )
ESOP dividend deduction |  |  | (319 | ) |  |  | (0.47 | ) |  |  | (313 | ) |  |  | (0.47 | ) |  |  | (298 | ) |  |  | (0.46 | )
Stock option exercises and restricted stock vesting |  |  | (170 | ) |  |  | (0.25 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Effect of Tax Cuts & Jobs Act |  |  | (2,831 | ) |  |  | (4.13 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Other, net |  |  | 818 |  |  |  | 1.20 |  |  |  | 792 |  |  |  | 1.18 |  |  |  | 736 |  |  |  | 1.13 |
Total |  | $ | 17,018 |  |  |  | 24.84 | % |  | $ | 19,118 |  |  |  | 28.76 | % |  | $ | 18,531 |  |  |  | 28.53 | %
The components of the net deferred tax liability as of December 31 are as follows:
(in thousands) |  | 2017 |  |  | 2016 |
Deferred tax assets: |  |  |  |  |  |
Allowance for loan and lease losses |  | $ | 7,592 |  |  | $ | 12,577 |
Interest on nonperforming loans |  |  | 560 |  |  |  | 806 |
Accrued expenses |  |  | 442 |  |  |  | 1,883 |
Allowance for other real estate owned |  |  | 1,322 |  |  |  | 1,898 |
Limited partnership investments |  |  | 64 |  |  |  | 0 |
Unrealized losses on AFS securities |  |  | 932 |  |  |  | 1,241 |
Other |  |  | 204 |  |  |  | 282 |
Total deferred tax assets |  |  | 11,116 |  |  |  | 18,687 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | (12,270 | ) |  |  | (20,287 | )
FHLB stock dividends |  |  | (2,076 | ) |  |  | (3,460 | )
Loan fee income |  |  | (263 | ) |  |  | (536 | )
Mortgage servicing rights |  |  | (732 | ) |  |  | (1,202 | )
Capitalized lease obligations |  |  | (14 | ) |  |  | (65 | )
Limited partnership investments |  |  | 0 |  |  |  | (411 | )
Other |  |  | (195 | ) |  |  | (562 | )
Total deferred tax liabilities |  |  | (15,550 | ) |  |  | (26,523 | )
Net deferred tax liability |  | $ | (4,434 | ) |  | $ | (7,836 | )
CTBI accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. CTBI determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. With a few exceptions, CTBI is no longer subject to U.S. federal tax examinations by tax authorities for years before 2014, and state and local income tax examinations by tax authorities for years before 2013. For federal tax purposes, CTBI recognizes interest and penalties on income taxes as a component of income tax expense. CTBI files consolidated income tax returns with its subsidiaries.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration