XML 43 R13.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 9 Months Ended
--- | ---
Sep. 30, 2019
Leases [Abstract] |
Leases | Note 6 – Leases Effective January 1, 2019, CTBI adopted ASU No. 2016-02, Leases, (Topic 842) and all subsequent ASUs that modified Topic 842. Based on leases outstanding at December 31, 2018, the impact of adoption was recording a lease liability of approximately $16.1 million, a right-of-use asset of approximately $15.5 million, and a cumulative-effect adjustment to retained earnings of approximately $0.5 million, net of a $0.1 million adjustment to our deferred tax liability. CTBI has one finance lease for property but no material subleases or leasing arrangements for which it is the lessor of property or equipment. CTBI has operating leases for banking and ATM locations. These leases have remaining lease terms of 1 year to 45 years, some of which include options to extend the leases for up to 5 years. We evaluated the original lease terms for each operating lease, some of which include options to extend the leases for up to 5 years, using hindsight. These options, some of which include variable costs related to rent escalations based on recent financial indices, such as the Consumer Price Index, where CTBI estimates future rent increases, are included in the calculation of the lease liability and right-of-use asset when management determines it is reasonably certain the option will be exercised. CTBI determines this on each lease by considering all relevant contract-based, asset-based, market-based, and entity-based economic factors. Right-of-use assets and lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate on a collateralized basis, over a similar term at the lease commencement date. Right-of-use assets are further adjusted for prepaid rent, lease incentives, and initial direct costs, if any. The components of lease expense for the three and nine months ended September 30, 2019 were as follows:
(in thousands) |  | Three Months Ended September 30, 2019 |  |  | Nine Months Ended September 30, 2019 |
Finance lease cost: |  |  |  |  |  |
Amortization of right-of-use assets – finance leases |  | $ | 13 |  |  | $ | 39 |
Interest on lease liabilities – finance leases |  |  | 14 |  |  |  | 40 |
Total finance lease cost |  |  | 27 |  |  |  | 79 |
Short-term lease cost |  |  | 89 |  |  |  | 228 |
Operating lease cost |  |  | 442 |  |  |  | 1,330 |
Sublease income |  |  | 63 |  |  |  | 194 |
Total lease cost |  | $ | 495 |  |  | $ | 1,443 |
Supplemental cash flow information related to CTBI’s operating and finance leases for the three and nine months ended September 30, 2019 was as follows:
(in thousands) |  | Three Months Ended September 30, 2019 |  |  | Nine Months Ended September 30, 2019 |
Finance lease – operating cash flows |  | $ | 14 |  |  | $ | 40 |
Finance lease – financing cash flows |  |  | 3 |  |  |  | 11 |
Operating lease – operating cash flows (fixed payments) |  |  | 408 |  |  |  | 1,255 |
New right-of-use assets – operating leases |  |  | 9 |  |  |  | 9 |
Weighted average lease term – financing leases |  | 26.3 years |  |  | 26.9 years |
Weighted average lease term – operating leases |  | 14.1 years |  |  | 14.3 years |
Weighted average discount rate – financing leases |  |  | 3.70 | % |  |  | 3.70 | %
Weighted average discount rate – operating leases |  |  | 3.45 | % |  |  | 3.00 | %
Maturities of lease liabilities as of September 30, 2019 are as follows:
(in thousands) |  | Operating Leases |  |  | Finance Leases |
2019 |  | $ | 409 |  |  | $ | 17 |
2020 |  |  | 1,655 |  |  |  | 68 |
2021 |  |  | 1,671 |  |  |  | 75 |
2022 |  |  | 1,657 |  |  |  | 75 |
2023 |  |  | 1,578 |  |  |  | 75 |
Thereafter |  |  | 10,914 |  |  |  | 2,060 |
Total lease payments |  |  | 17,884 |  |  |  | 2,370 |
Less imputed interest |  |  | (4,058 | ) |  |  | (910 | )
Total |  | $ | 13,826 |  |  | $ | 1,460 |
At December 31, 2018, minimum non-cancellable rental payments were as follows:
(in thousands) |  | Operating Lease Payments |
2019 |  | $ | 1,999 |
2020 |  |  | 1,710 |
2021 |  |  | 1,737 |
2022 |  |  | 1,760 |
2023 |  |  | 1,696 |
Thereafter |  |  | 13,031 |
Total |  | $ | 21,933 |

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

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration