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Fair Market Value of Financial Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2017

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 December 31, 2017 and December 31, 2016 and indicate the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2017 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		$	210,572			$	64,598			$	145,974			$	0
State and political subdivisions			145,015				0				145,015				0
U.S. government sponsored agency mortgage-backed securities			205,309				0				205,309				0
Other debt securities			507				0				507				0
CRA investment funds			24,358				24,358				0				0
Mortgage servicing rights			3,484				0				0				3,484

(in thousands)						Fair Value Measurements at December 31, 2016 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		$	222,464			$	44,934			$	177,530			$	0
State and political subdivisions			133,516				0				133,516				0
U.S. government sponsored agency mortgage-backed securities			225,056				0				225,056				0
Other debt securities			0				0				0				0
CRA investment funds			24,358				24,358				0				0
Mortgage servicing rights			3,433				0				0				3,433

Reconciliation of the Beginning and Ending Balance 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:

Mortgage Servicing Rights
(in thousands)		2017				2016
Beginning balance		$	3,433			$	3,236
Total recognized gains (losses)
Included in net income			91				164
Issues			412				521
Settlements			(452	)			(488	)
Ending balance		$	3,484			$	3,433
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		$	91			$	164

Realized and Unrealized Gains and Losses for Items Included in Net Income in the 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:

Noninterest Income
(in thousands)		2017				2016
Total losses		$	(361	)		$	(324	)

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 December 31, 2017 and December 31, 2016 and indicate the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2017 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)		$	2,709			$	0			$	0			$	2,709
Other real estate owned			18,951				0				0				18,951

(in thousands)						Fair Value Measurements at December 31, 2016 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)		$	5,506			$	0			$	0			$	5,506
Other real estate owned			4,388				0				0				4,388

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, 2017 and December 31, 2016.

(in thousands)		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at December 31, 2017			Valuation Technique(s)	Unobservable Input		Range (Weighted Average)
Mortgage servicing rights		$	3,484		Discount cash flows, computer pricing model	Constant prepayment rate			7.0% - 45.0% (10.0%)
						Probability of default			0.0% - 100.0% (3.0%)
						Discount rate			10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)		$	2,709		Market comparable properties	Marketability discount			1.9% - 89.8% (38.5%)
Other real estate owned		$	18,951		Market comparable properties	Comparability adjustments			6.0% - 58.6% (15.0%)

(in thousands)		Quantitative Information about Level 3 Fair Value Measurements
		Fair Value at December 31, 2016			Valuation Technique(s)	Unobservable Input		Range (Weighted Average)
Mortgage servicing rights		$	3,433		Discount cash flows, computer pricing model	Constant prepayment rate			7.0% - 27.0% (9.5%)
						Probability of default			0.0% - 100.0% (3.0%)
						Discount rate			10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)		$	5,506		Market comparable properties	Marketability discount			0.0% - 100.0% (33.7%)
Other real estate owned		$	4,388		Market comparable properties	Comparability adjustments			10.0% - 100.0% (14.9%)

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 December 31, 2017 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2017 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		$	175,274			$	175,274			$	0			$	0
Certificates of deposit in other banks			9,800				0				9,772				0
Securities available-for-sale			585,761				88,956				496,805				0
Securities held-to-maturity			659				0				660				0
Loans held for sale			1,033				1,060				0				0
Loans, net			3,086,789				0				0				3,092,437
Federal Home Loan Bank stock			17,927				0				17,927				0
Federal Reserve Bank stock			4,887				0				4,887				0
Accrued interest receivable			13,338				0				13,338				0
Mortgage servicing rights			3,484				0				0				3,484
Financial liabilities:
Deposits		$	3,263,863			$	790,930			$	2,319,278			$	0
Repurchase agreements			243,814				0				0				243,932
Federal funds purchased			7,312				0				7,312				0
Advances from Federal Home Loan Bank			845				0				841				0
Long-term debt			59,341				0				0				44,166
Accrued interest payable			2,228				0				2,228				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, 2016 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)						Fair Value Measurements at December 31, 2016 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		$	144,716			$	144,716			$	0			$	0
Certificates of deposit in other banks			980				0				982				0
Securities available-for-sale			605,394				69,292				536,102				0
Securities held-to-maturity			866				0				867				0
Loans held for sale			1,244				1,260				0				0
Loans, net			2,902,438				0				0				2,882,348
Federal Home Loan Bank stock			17,927				0				17,927				0
Federal Reserve Bank stock			4,887				0				4,887				0
Accrued interest receivable			11,922				0				11,922				0
Mortgage servicing rights			3,433				0				0				3,433
Financial liabilities:
Deposits		$	3,081,308			$	767,918			$	2,321,690			$	0
Repurchase agreements			251,065				0				0				250,820
Federal funds purchased			4,816				0				4,816				0
Advances from Federal Home Loan Bank			944				0				1,009				0
Long-term debt			61,341				0				0				49,073
Accrued interest payable			1,200				0				1,200				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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- 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.

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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).

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