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Loans | 3 Months Ended
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Mar. 31, 2020
Loans [Abstract] |
Loans | Note 4 – Loans Major classifications of loans, net of unearned income, deferred loan origination costs and fees, and net premiums on acquired loans, are summarized as follows:
(in thousands) |  | March 31, 2020 |
Hotel/motel |  | $ | 248,717 |
Commercial real estate residential |  |  | 262,065 |
Commercial real estate nonresidential |  |  | 771,687 |
Dealer floorplans |  |  | 80,828 |
Commercial other |  |  | 313,646 |
Commercial loans |  |  | 1,676,943 |
Real estate mortgage |  |  | 798,891 |
Home equity lines |  |  | 111,837 |
Residential loans |  |  | 910,728 |
Consumer direct |  |  | 145,403 |
Consumer indirect |  |  | 554,467 |
Consumer loans |  |  | 699,870 |
Loans and lease financing |  | $ | 3,287,541 |
(in thousands) |  | December 31, 2019 |
Commercial construction |  | $ | 104,809 |
Commercial secured by real estate |  |  | 1,169,975 |
Equipment lease financing |  |  | 481 |
Commercial other |  |  | 389,683 |
Real estate construction |  |  | 63,350 |
Real estate mortgage |  |  | 733,003 |
Home equity |  |  | 111,894 |
Consumer direct |  |  | 148,051 |
Consumer indirect |  |  | 527,418 |
Total loans |  | $ | 3,248,664 |
The segments presented for March 31, 2020 reflect the implementation of ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, while the December totals are presented under the previous incurred loss model. CTB adopted ASC 326 for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results of reporting periods beginning January 1, 2020 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. CTBI has segregated and evaluates its loan portfolio through nine portfolio segments with similar risk characteristics. CTBI serves customers in small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Therefore, CTBI’s exposure to credit risk is significantly affected by changes in these communities. Hotel/motel loans are a significant concentration for CTBI, representing approximately 7.5% of total loans. This industry has unique risk characteristics as it is highly susceptible to changes in the domestic and global economic environments, which can cause the industry to experience substantial volatility. Additionally, any hotel/motel construction loans would be included in this segment as CTBI’s construction loans are primarily completed as one loan going from construction to permanent financing. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Commercial real estate residential loans are commercial purpose construction and permanent financed loans for commercial purpose 1-4 family/multi-family properties. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Commercial real estate nonresidential loans are secured by nonfarm, nonresidential properties, farmland, and other commercial real estate. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Construction for commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing. Prior to the implementation of ASU No. 2016-13, all commercial real estate loans were segmented together with construction loans presented separately. Dealer floorplans have historically been reviewed by management as a separate segment of the commercial loan portfolio although for SEC reporting they were combined within the commercial other segment. With the implementation of ASU No. 2016-13, CTBI segmented dealer floorplans separately as they are a unique product with unique risk factors. The primary unique factor relevant to dealer floorplans is the ability of the borrower to misappropriate funds provided at the point of sale as their floorplan is collateralized under a blanket security agreement and without specific liens on individual units. This risk is mitigated by the use of periodic inventory audits. These audits are performed monthly and follow up is required on any out of compliance items identified. These audits are subject to increasing frequency when fact patterns suggest more scrutiny is required. Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, loans to financial institutions, loans for purchasing or carrying securities, and other commercial purpose loans. Commercial loans are underwritten based on the borrower’s ability to service debt from the business’s underlying cash flows. As a general practice, we obtain collateral such as equipment, or other assets, although such loans may be uncollateralized but guaranteed. Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans and also include real estate construction loans which are typically for owner-occupied properties. The terms of the real estate construction loans are generally short-term with permanent financing upon completion. As a policy, CTBI holds adjustable rate loans and sells the majority of its fixed rate first lien mortgage loans into the secondary market. Changes in interest rates or market conditions may impact a borrower’s ability to meet contractual principal and interest payments. Residential real estate loans are secured by real property. Home equity lines are primarily revolving adjustable rate credit lines secured by real property. Consumer direct loans are a mixture of fixed rate and adjustable rate products comprised of unsecured loans, consumer revolving credit lines, deposit secured loans, and all other consumer purpose loans. Consumer indirect loans are fixed rate loans secured by automobiles, trucks, vans, and recreational vehicles originated at the selling dealership underwritten and purchased by CTBI’s indirect lending department. Both new and used products are financed. Only dealers who have executed dealer agreements with CTBI participate in the indirect lending program. Not included in the loan balances above were loans held for sale in the amount of $1.4 million at March 31, 2020 and $1.2 million at December 31, 2019. The following tables present the balance in the allowance for credit losses (“ACL”) for the period ended March 31, 2020 and the balance in the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 and March 31, 2019:
|  | March 31, 2020 |
(in thousands) |  | Hotel/ Motel |  |  | Commercial Real Estate Residential |  |  | Commercial Real Estate Nonresidential |  |  | Dealer Floorplans |  |  | Commercial Other |  |  | Real Estate Mortgage |  |  | Home Equity |  |  | Consumer Direct |  |  | Consumer Indirect |  |  | Total |
ACL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance, prior to adoption of ASC 326 |  | $ | 3,371 |  |  | $ | 3,439 |  |  | $ | 8,515 |  |  | $ | 802 |  |  | $ | 5,556 |  |  | $ | 4,604 |  |  | $ | 897 |  |  | $ | 1,711 |  |  | $ | 6,201 |  |  | $ | 35,096 |
Impact of adoption of ASC 326 |  |  | 170 |  |  |  | (721 | ) |  |  | 119 |  |  |  | 820 |  |  |  | (391 | ) |  |  | 1,893 |  |  |  | (75 | ) |  |  | (40 | ) |  |  | 1,265 |  |  |  | 3,040 |
Provision charged to expense |  |  | 2,381 |  |  |  | 1,337 |  |  |  | 2,984 |  |  |  | 91 |  |  |  | 1,434 |  |  |  | 1,099 |  |  |  | 67 |  |  |  | 739 |  |  |  | 2,575 |  |  |  | 12,707 |
Losses charged off |  |  | 0 |  |  |  | (51 | ) |  |  | (59 | ) |  |  | 0 |  |  |  | (359 | ) |  |  | (60 | ) |  |  | 0 |  |  |  | (369 | ) |  |  | (1,517 | ) |  |  | (2,415 | )
Recoveries |  |  | 0 |  |  |  | 8 |  |  |  | 4 |  |  |  | 0 |  |  |  | 169 |  |  |  | 7 |  |  |  | 1 |  |  |  | 122 |  |  |  | 706 |  |  |  | 1,017 |
Ending balance |  | $ | 5,922 |  |  | $ | 4,012 |  |  | $ | 11,563 |  |  | $ | 1,713 |  |  | $ | 6,409 |  |  | $ | 7,543 |  |  | $ | 890 |  |  | $ | 2,163 |  |  | $ | 9,230 |  |  | $ | 49,445 |
|  | December 31, 2019 |
|  | Commercial Construction |  |  | Commercial Secured by Real Estate |  |  | Equipment Lease Financing |  |  | Commercial Other |  |  | Real Estate Construction |  |  | Real Estate Mortgage |  |  | Home Equity |  |  | Consumer Direct |  |  | Consumer Indirect |  |  | Total |
ALLL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance, beginning of year |  | $ | 862 |  |  | $ | 14,531 |  |  | $ | 12 |  |  | $ | 4,993 |  |  | $ | 512 |  |  | $ | 4,433 |  |  | $ | 841 |  |  | $ | 1,883 |  |  | $ | 7,841 |  |  | $ | 35,908 |
Provision charged to expense |  |  | 497 |  |  |  | (137 | ) |  |  | (8 | ) |  |  | 3,032 |  |  |  | (40 | ) |  |  | 414 |  |  |  | 172 |  |  |  | 528 |  |  |  | 361 |  |  |  | 4,819 |
Losses charged off |  |  | (72 | ) |  |  | (727 | ) |  |  | 0 |  |  |  | (2,179 | ) |  |  | (100 | ) |  |  | (767 | ) |  |  | (139 | ) |  |  | (1,100 | ) |  |  | (4,652 | ) |  |  | (9,736 | )
Recoveries |  |  | 12 |  |  |  | 358 |  |  |  | 0 |  |  |  | 509 |  |  |  | 0 |  |  |  | 152 |  |  |  | 23 |  |  |  | 400 |  |  |  | 2,651 |  |  |  | 4,105 |
Balance, end of year |  | $ | 1,299 |  |  | $ | 14,025 |  |  | $ | 4 |  |  | $ | 6,355 |  |  | $ | 372 |  |  | $ | 4,232 |  |  | $ | 897 |  |  | $ | 1,711 |  |  | $ | 6,201 |  |  | $ | 35,096 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 99 |  |  | $ | 227 |  |  | $ | 0 |  |  | $ | 886 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,212 |
Collectively evaluated for impairment |  | $ | 1,200 |  |  | $ | 13,798 |  |  | $ | 4 |  |  | $ | 5,469 |  |  | $ | 372 |  |  | $ | 4,232 |  |  | $ | 897 |  |  | $ | 1,711 |  |  | $ | 6,201 |  |  | $ | 33,884 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,010 |  |  | $ | 41,379 |  |  | $ | 0 |  |  | $ | 11,073 |  |  | $ | 0 |  |  | $ | 2,309 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 57,771 |
Collectively evaluated for impairment |  | $ | 101,799 |  |  | $ | 1,128,596 |  |  | $ | 481 |  |  | $ | 378,610 |  |  | $ | 63,350 |  |  | $ | 730,694 |  |  | $ | 111,894 |  |  | $ | 148,051 |  |  | $ | 527,418 |  |  | $ | 3,190,893 |
|  | March 31, 2019 |
(in thousands) |  | Commercial Construction |  |  | Commercial Secured by Real Estate |  |  | Equipment Lease Financing |  |  | Commercial Other |  |  | Real Estate Construction |  |  | Real Estate Mortgage |  |  | Home Equity |  |  | Consumer Direct |  |  | Consumer Indirect |  |  | Total |
Allowance for loan losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 862 |  |  | $ | 14,531 |  |  | $ | 12 |  |  | $ | 4,993 |  |  | $ | 512 |  |  | $ | 4,433 |  |  | $ | 841 |  |  | $ | 1,883 |  |  | $ | 7,841 |  |  | $ | 35,908 |
Provision charged to expense |  |  | 38 |  |  |  | 287 |  |  |  | (2 | ) |  |  | 382 |  |  |  | (116 | ) |  |  | (278 | ) |  |  | 84 |  |  |  | (119 | ) |  |  | (86 | ) |  |  | 190 |
Losses charged off |  |  | 0 |  |  |  | (35 | ) |  |  | 0 |  |  |  | (242 | ) |  |  | 0 |  |  |  | (120 | ) |  |  | (25 | ) |  |  | (246 | ) |  |  | (1,387 | ) |  |  | (2,055 | )
Recoveries |  |  | 3 |  |  |  | 17 |  |  |  | 0 |  |  |  | 84 |  |  |  | 0 |  |  |  | 18 |  |  |  | 1 |  |  |  | 117 |  |  |  | 721 |  |  |  | 961 |
Ending balance |  | $ | 903 |  |  | $ | 14,800 |  |  | $ | 10 |  |  | $ | 5,217 |  |  | $ | 396 |  |  | $ | 4,053 |  |  | $ | 901 |  |  | $ | 1,635 |  |  | $ | 7,089 |  |  | $ | 35,004 |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 164 |  |  | $ | 847 |  |  | $ | 0 |  |  | $ | 620 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 1,631 |
Collectively evaluated for impairment |  | $ | 739 |  |  | $ | 13,953 |  |  | $ | 10 |  |  | $ | 4,597 |  |  | $ | 396 |  |  | $ | 4,053 |  |  | $ | 901 |  |  | $ | 1,635 |  |  | $ | 7,089 |  |  | $ | 33,373 |
Loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | 3,632 |  |  | $ | 34,329 |  |  | $ | 0 |  |  | $ | 10,057 |  |  | $ | 0 |  |  | $ | 2,337 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 50,355 |
Collectively evaluated for impairment |  | $ | 71,732 |  |  | $ | 1,148,475 |  |  | $ | 1,354 |  |  | $ | 378,003 |  |  | $ | 54,013 |  |  | $ | 717,955 |  |  | $ | 108,018 |  |  | $ | 141,855 |  |  | $ | 517,972 |  |  | $ | 3,139,377 |
CTBI derived its ACL balance by using vintage modeling for the consumer and residential portfolios. Static pool models incorporating losses by credit risk rating were developed to determine credit loss balances for the commercial loan segments. Qualitative loss factors are based on CTBI's judgment of delinquency trends, level of nonperforming loans, trend in loan losses, supervision and administration, quality control exceptions, and reasonable and supportable forecasts based on unemployment rates and industry concentrations. CTBI has determined that twelve months represents a reasonable and supportable forecast period and reverts back to a historical loss rate immediately. CTBI leverages economic projections from a reputable and independent third party to inform its loss driver forecasts over the twelve month forecast period. Other internal and external indicators of economic forecasts are also considered by CTBI when developing the forecast metrics. CTBI also has an inherent model risk allocation included in its ACL calculation to allow for certain known model limitations as well as other potential risks not quantified elsewhere. Management has identified the following known model limitations and made adjustments through this portion of the calculation for them: (1) The inability to completely identify revolving lines of credit within the commercial other segment. Management had to make assumptions regarding commercial renewals as those renewals are not tracked well by its loan system. (2) The inability within the model to estimate the value of modifications made under troubled debt restructurings. Management has manually calculated the estimated impact based on research of modified terms for troubled debt restructurings. Also included in inherent model risk at implementation was the estimated allowance for previously impaired loans that had not been changed on CTBI’s loan system. There were certain loans that met the definition of impaired previously that management did not consider to have significantly different risk characteristics based on the ACL methodology and segmentation, and therefore determined they would no longer require individual analysis. The inherent model risk factor was decreased by $1.6 million as formerly impaired loans that are no longer individually analyzed were reassigned in the first quarter and returned to the appropriate loan segments where the historical loss and other qualitative factors were applied. As of March 31, 2020, CTBI forecasted a significant increase in national unemployment rates and significant declines in hotel/motel, lessors of nonresidential properties and lessors of residential properties industries over the forecast period. The projected economic decline, as well as increased reserves of $2.0 million on individually analyzed loans during the period, were the primary drivers of the increase in the ACL. Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Per ASC 326, nonaccrual loans segregated by class of loans and loans 90 days past due and still accruing segregated by class of loans were as follows:
|  | March 31, 2020 |
(in thousands) |  | Nonaccrual Loans with No ACL |  |  | Nonaccrual Loan with ACL |  |  | 90+ and Still Accruing |  |  | Total Nonperforming Loans |
Hotel/motel |  | $ | 0 |  |  | $ | 0 |  |  | $ | 133 |  |  | $ | 133 |
Commercial real estate residential |  |  | 206 |  |  |  | 1,312 |  |  |  | 4,636 |  |  |  | 6,154 |
Commercial real estate nonresidential |  |  | 0 |  |  |  | 3,404 |  |  |  | 7,128 |  |  |  | 10,532 |
Dealer floorplans |  |  | 0 |  |  |  | 56 |  |  |  | 0 |  |  |  | 56 |
Commercial other |  |  | 0 |  |  |  | 6,316 |  |  |  | 479 |  |  |  | 6,795 |
Total commercial loans |  |  | 206 |  |  |  | 11,088 |  |  |  | 12,376 |  |  |  | 23,670 |
Real estate mortgage |  |  | 0 |  |  |  | 5,286 |  |  |  | 4,730 |  |  |  | 10,016 |
Home equity lines |  |  | 0 |  |  |  | 753 |  |  |  | 435 |  |  |  | 1,188 |
Total residential loans |  |  | 0 |  |  |  | 6,039 |  |  |  | 5,165 |  |  |  | 11,204 |
Consumer direct |  |  | 0 |  |  |  | 0 |  |  |  | 38 |  |  |  | 38 |
Consumer indirect |  |  | 0 |  |  |  | 0 |  |  |  | 465 |  |  |  | 465 |
Total consumer loans |  |  | 0 |  |  |  | 0 |  |  |  | 503 |  |  |  | 503 |
Loans and lease financing |  | $ | 206 |  |  | $ | 17,127 |  |  | $ | 18,044 |  |  | $ | 35,377 |
(in thousands) |  | December 31, 2019 |
Commercial: |  |  |
Commercial construction |  | $ | 230 |
Commercial secured by real estate |  |  | 3,759 |
Commercial other |  |  | 3,839 |
Residential: |  |  |  |
Real estate construction |  |  | 634 |
Real estate mortgage |  |  | 4,821 |
Home equity |  |  | 716 |
Total nonaccrual loans |  | $ | 13,999 |
The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of March 31, 2020 and December 31, 2019:
March 31, 2020 |
(in thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90+ Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |
Hotel/motel |  | $ | 0 |  |  | $ | 0 |  |  | $ | 133 |  |  | $ | 133 |  |  | $ | 248,584 |  |  | $ | 248,717 |
Commercial real estate residential |  |  | 1,514 |  |  |  | 1,412 |  |  |  | 6,128 |  |  |  | 9,054 |  |  |  | 253,011 |  |  |  | 262,065 |
Commercial real estate nonresidential |  |  | 2,257 |  |  |  | 4,570 |  |  |  | 9,924 |  |  |  | 16,751 |  |  |  | 754,936 |  |  |  | 771,687 |
Dealer floorplans |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 80,828 |  |  |  | 80,828 |
Commercial other |  |  | 1,683 |  |  |  | 686 |  |  |  | 6,594 |  |  |  | 8,963 |  |  |  | 304,683 |  |  |  | 313,646 |
Total commercial loans |  |  | 5,454 |  |  |  | 6,668 |  |  |  | 22,779 |  |  |  | 34,901 |  |  |  | 1,642,042 |  |  |  | 1,676,943 |
Real estate mortgage |  |  | 2,561 |  |  |  | 3,154 |  |  |  | 7,901 |  |  |  | 13,616 |  |  |  | 785,275 |  |  |  | 798,891 |
Home equity lines |  |  | 831 |  |  |  | 156 |  |  |  | 733 |  |  |  | 1,720 |  |  |  | 110,117 |  |  |  | 111,837 |
Total residential loans |  |  | 3,392 |  |  |  | 3,310 |  |  |  | 8,634 |  |  |  | 15,336 |  |  |  | 895,392 |  |  |  | 910,728 |
Consumer direct |  |  | 735 |  |  |  | 589 |  |  |  | 38 |  |  |  | 1,362 |  |  |  | 144,041 |  |  |  | 145,403 |
Consumer indirect |  |  | 4,153 |  |  |  | 816 |  |  |  | 465 |  |  |  | 5,434 |  |  |  | 549,033 |  |  |  | 554,467 |
Total consumer loans |  |  | 4,888 |  |  |  | 1,405 |  |  |  | 503 |  |  |  | 6,796 |  |  |  | 693,074 |  |  |  | 699,870 |
Loans and lease financing |  | $ | 13,734 |  |  | $ | 11,383 |  |  | $ | 31,916 |  |  | $ | 57,033 |  |  | $ | 3,230,508 |  |  | $ | 3,287,541 |
|  | December 31, 2019 |
(in thousands) |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | 90+ Days Past Due |  |  | Total Past Due |  |  | Current |  |  | Total Loans |  |  | 90+ and Accruing* |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  | $ | 118 |  |  | $ | 0 |  |  | $ | 467 |  |  | $ | 585 |  |  | $ | 104,224 |  |  | $ | 104,809 |  |  | $ | 237 |
Commercial secured by real estate |  |  | 2,734 |  |  |  | 5,969 |  |  |  | 12,366 |  |  |  | 21,069 |  |  |  | 1,148,906 |  |  |  | 1,169,975 |  |  |  | 8,820 |
Equipment lease financing |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 481 |  |  |  | 481 |  |  |  | 0 |
Commercial other |  |  | 880 |  |  |  | 284 |  |  |  | 6,267 |  |  |  | 7,431 |  |  |  | 382,252 |  |  |  | 389,683 |  |  |  | 2,586 |
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate construction |  |  | 117 |  |  |  | 52 |  |  |  | 634 |  |  |  | 803 |  |  |  | 62,547 |  |  |  | 63,350 |  |  |  | 0 |
Real estate mortgage |  |  | 774 |  |  |  | 5,376 |  |  |  | 10,320 |  |  |  | 16,470 |  |  |  | 716,533 |  |  |  | 733,003 |  |  |  | 7,088 |
Home equity |  |  | 1,084 |  |  |  | 412 |  |  |  | 736 |  |  |  | 2,232 |  |  |  | 109,662 |  |  |  | 111,894 |  |  |  | 344 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer direct |  |  | 945 |  |  |  | 230 |  |  |  | 97 |  |  |  | 1,272 |  |  |  | 146,779 |  |  |  | 148,051 |  |  |  | 97 |
Consumer indirect |  |  | 4,037 |  |  |  | 909 |  |  |  | 447 |  |  |  | 5,393 |  |  |  | 522,025 |  |  |  | 527,418 |  |  |  | 448 |
Loans and lease financing |  | $ | 10,689 |  |  | $ | 13,232 |  |  | $ | 31,334 |  |  | $ | 55,255 |  |  | $ | 3,193,409 |  |  | $ | 3,248,664 |  |  | $ | 19,620 |
*90+ and Accruing are also included in 90+ Days Past Due column. The risk characteristics of CTBI’s material portfolio segments are as follows: Hotel/motel loans are a significant concentration for CTBI, representing approximately 7.5% of total loans. This industry has unique risk characteristics as it is highly susceptible to changes in the domestic and global economic environments, which can cause the industry to experience substantial volatility. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Hotel/motel lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade criteria. Commercial construction loans generally are made to customers for the purpose of building income-producing properties, and any hotel/motel construction loan would be included in this segment. Personal guarantees of the principals are generally required. Such loans are made on a projected cash flow basis and are secured by the project being constructed. Construction loan draw procedures are included in each specific loan agreement, including required documentation items and inspection requirements. Construction loans may convert to term loans at the end of the construction period, or may be repaid by the take-out commitment from another financing source. If the loan is to convert to a term loan, the repayment ability is based on the borrower’s projected cash flow. Risk is mitigated during the construction phase by requiring proper documentation and inspections whenever a draw is requested. Loans in amounts greater than $500,000 generally require a performance bond to be posted by the general contractor to assure completion of the project. Commercial real estate residential loans are commercial purpose construction and permanent financed loans for commercial purpose 1-4 family/multi-family properties. All commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade criteria. Commercial residential construction loans generally are made to customers for the purpose of building income-producing properties. Personal guarantees of the principals are generally required. Such loans are made on a projected cash flow basis and are secured by the project being constructed. Construction loan draw procedures are included in each specific loan agreement, including required documentation items and inspection requirements. Construction loans may convert to term loans at the end of the construction period, or may be repaid by the take-out commitment from another financing source. If the loan is to convert to a term loan, the repayment ability is based on the borrower’s projected cash flow. Risk is mitigated during the construction phase by requiring proper documentation and inspections whenever a draw is requested. Loans in amounts greater than $500,000 generally require a performance bond to be posted by the general contractor to assure completion of the project. Commercial real estate nonresidential loans are secured by nonfarm, nonresidential properties, farmland, and other commercial real estate. Construction for commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing. All commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade criteria. Commercial nonresidential construction loans generally are made to customers for the purpose of building income-producing properties. Personal guarantees of the principals are generally required. Such loans are made on a projected cash flow basis and are secured by the project being constructed. Construction loan draw procedures are included in each specific loan agreement, including required documentation items and inspection requirements. Construction loans may convert to term loans at the end of the construction period, or may be repaid by the take-out commitment from another financing source. If the loan is to convert to a term loan, the repayment ability is based on the borrower’s projected cash flow. Risk is mitigated during the construction phase by requiring proper documentation and inspections whenever a draw is requested. Loans in amounts greater than $500,000 generally require a performance bond to be posted by the general contractor to assure completion of the project. Prior to the implementation of ASU No. 2016-13, all commercial real estate loans were segmented together with construction loans presented separately. Dealer floorplans have historically been reviewed by management as a separate segment of the commercial loan portfolio although for SEC reporting they were combined within the commercial other segment. With the implementation of ASU No. 2016-13, CTBI segmented dealer floorplans separately as they are a unique product with unique risk factors. CTBI maintains strict processing procedures over its floorplan product with any exceptions requested by a loan officer approved by the appropriate loan committee and the floorplan manager. Dealer floorplans have historically been reviewed by management as a separate segment of the commercial loan portfolio although for SEC reporting they were combined within the commercial other segment. Under the incurred loss model, these loans were included in the commercial other segment. This segment of loans is nearing the threshold of a loan concentration and has unique risk characteristics and as such it will be a segment under the new CECL methodology. Commercial other loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. As we underwrite our equipment lease financing in a manner similar to our commercial loan portfolio described below, the risk characteristics for this portfolio mirror that of the commercial loan portfolio. With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, CTBI generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences. Residential construction loans are handled through the home mortgage area of the bank. The repayment ability of the borrower and the maximum loan-to-value ratio are calculated using the normal mortgage lending criteria. Draws are processed based on percentage of completion stages including normal inspection procedures. Such loans generally convert to term loans after the completion of construction. Consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Our determination of a borrower’s ability to repay these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The indirect lending area of the bank generally deals with purchasing/funding consumer contracts with new and used automobile dealers. The dealers generate consumer loan applications which are forwarded to the indirect loan processing area for approval or denial. Loan approvals or denials are based on the creditworthiness and repayment ability of the borrower, and on the collateral value. The dealers may have limited recourse agreements with CTB. Credit Quality Indicators: CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings:
| ➢ | Pass grades include investment grade, low risk, moderate risk, and acceptable risk loans. The loans range from loans that have no chance of resulting in a loss to loans that have a limited chance of resulting in a loss. Customers in this grade have excellent to fair credit ratings. The cash flows are adequate to meet required debt repayments.
| ➢ | Watch graded loans are loans that warrant extra management attention but are not currently criticized. Loans on the watch list may be potential troubled credits or may warrant “watch” status for a reason not directly related to the asset quality of the credit. The watch grade is a management tool to identify credits which may be candidates for future classification or may temporarily warrant extra management monitoring.
| ➢ | Other assets especially mentioned (OAEM) reflects loans that are currently protected but are potentially weak. These loans constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of circumstances surrounding a specific asset. Loans in this grade display potential weaknesses which may, if unchecked or uncorrected, inadequately protect CTBI’s credit position at some future date. The loans may be adversely affected by economic or market conditions.
| ➢ | Substandard grading indicates that the loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These loans have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt with the distinct possibility that CTBI will sustain some loss if the deficiencies are not corrected.
| ➢ | Doubtful graded loans have the weaknesses inherent in the substandard grading with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to CTBI’s advantage or strengthen the asset(s), its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.
The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans and based on last credit decision or year of origination:
|  | Term Loans Amortized Cost Basis by Origination Year |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
Hotel/motel |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 8,621 |  |  | $ | 71,038 |  |  | $ | 41,059 |  |  | $ | 53,262 |  |  | $ | 23,743 |  |  | $ | 35,479 |  |  | $ | 74 |  |  | $ | 233,276 |
Special mention |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Substandard |  |  | 0 |  |  |  | 0 |  |  |  | 132 |  |  |  | 1,113 |  |  |  | 8,999 |  |  |  | 5,197 |  |  |  | 0 |  |  |  | 15,441 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total hotel/motel |  | $ | 8,621 |  |  | $ | 71,038 |  |  | $ | 41,191 |  |  | $ | 54,375 |  |  | $ | 32,742 |  |  | $ | 40,676 |  |  | $ | 74 |  |  | $ | 248,717 |
Commercial real estate residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 14,777 |  |  | $ | 49,003 |  |  | $ | 35,510 |  |  | $ | 25,537 |  |  | $ | 34,625 |  |  | $ | 69,673 |  |  | $ | 12,213 |  |  | $ | 241,338 |
Special mention |  |  | 0 |  |  |  | 3,102 |  |  |  | 633 |  |  |  | 967 |  |  |  | 451 |  |  |  | 61 |  |  |  | 0 |  |  |  | 5,214 |
Substandard |  |  | 446 |  |  |  | 2,282 |  |  |  | 3,540 |  |  |  | 4,169 |  |  |  | 1,200 |  |  |  | 3,876 |  |  |  | 0 |  |  |  | 15,513 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total commercial real estate residential |  | $ | 15,223 |  |  | $ | 54,387 |  |  | $ | 39,683 |  |  | $ | 30,673 |  |  | $ | 36,276 |  |  | $ | 73,610 |  |  | $ | 12,213 |  |  | $ | 262,065 |
Commercial real estate nonresidential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 35,164 |  |  | $ | 128,993 |  |  | $ | 99,550 |  |  | $ | 102,018 |  |  | $ | 113,817 |  |  | $ | 220,958 |  |  | $ | 30,277 |  |  | $ | 730,777 |
Special mention |  |  | 0 |  |  |  | 417 |  |  |  | 71 |  |  |  | 5 |  |  |  | 0 |  |  |  | 3,303 |  |  |  | 20 |  |  |  | 3,816 |
Substandard |  |  | 1,737 |  |  |  | 7,125 |  |  |  | 1,742 |  |  |  | 4,008 |  |  |  | 1,989 |  |  |  | 20,003 |  |  |  | 459 |  |  |  | 37,063 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 31 |  |  |  | 0 |  |  |  | 31 |
Total commercial real estate nonresidential |  | $ | 36,901 |  |  | $ | 136,535 |  |  | $ | 101,363 |  |  | $ | 106,031 |  |  | $ | 115,806 |  |  | $ | 244,295 |  |  | $ | 30,756 |  |  | $ | 771,687 |
Dealer floorplans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 80,772 |  |  | $ | 80,772 |
Special mention |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Substandard |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 56 |  |  |  | 56 |
Total dealer floorplans |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 80,828 |  |  | $ | 80,828 |
Commercial other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 44,077 |  |  | $ | 49,654 |  |  | $ | 40,094 |  |  | $ | 20,059 |  |  | $ | 10,245 |  |  | $ | 30,174 |  |  | $ | 102,022 |  |  | $ | 296,325 |
Special mention |  |  | 0 |  |  |  | 0 |  |  |  | 5,062 |  |  |  | 285 |  |  |  | 480 |  |  |  | 51 |  |  |  | 0 |  |  |  | 5,878 |
Substandard |  |  | 1,840 |  |  |  | 4,413 |  |  |  | 308 |  |  |  | 501 |  |  |  | 3,451 |  |  |  | 837 |  |  |  | 93 |  |  |  | 11,443 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total commercial other |  | $ | 45,917 |  |  | $ | 54,067 |  |  | $ | 45,464 |  |  | $ | 20,845 |  |  | $ | 14,176 |  |  | $ | 31,062 |  |  | $ | 102,115 |  |  | $ | 313,646 |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Risk rating: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 102,639 |  |  | $ | 298,688 |  |  | $ | 216,213 |  |  | $ | 200,876 |  |  | $ | 182,430 |  |  | $ | 356,284 |  |  | $ | 225,358 |  |  | $ | 1,582,488 |
Special mention |  |  | 0 |  |  |  | 3,519 |  |  |  | 5,766 |  |  |  | 1,257 |  |  |  | 931 |  |  |  | 3,415 |  |  |  | 20 |  |  |  | 14,908 |
Substandard |  |  | 4,023 |  |  |  | 13,820 |  |  |  | 5,722 |  |  |  | 9,791 |  |  |  | 15,639 |  |  |  | 29,913 |  |  |  | 552 |  |  |  | 79,460 |
Doubtful |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 31 |  |  |  | 56 |  |  |  | 87 |
Total commercial loans |  | $ | 106,662 |  |  | $ | 316,027 |  |  | $ | 227,701 |  |  | $ | 211,924 |  |  | $ | 199,000 |  |  | $ | 389,643 |  |  | $ | 225,986 |  |  | $ | 1,676,943 |
(in thousands) |  | Commercial Construction |  |  | Commercial Secured by Real Estate |  |  | Equipment Leases |  |  | Commercial Other |  |  | Total |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass |  | $ | 98,102 |  |  | $ | 1,036,573 |  |  | $ | 481 |  |  | $ | 358,203 |  |  | $ | 1,493,359 |
Watch |  |  | 3,595 |  |  |  | 54,338 |  |  |  | 0 |  |  |  | 13,618 |  |  |  | 71,551 |
OAEM |  |  | 254 |  |  |  | 27,964 |  |  |  | 0 |  |  |  | 6,065 |  |  |  | 34,283 |
Substandard |  |  | 2,858 |  |  |  | 51,068 |  |  |  | 0 |  |  |  | 11,737 |  |  |  | 65,663 |
Doubtful |  |  | 0 |  |  |  | 32 |  |  |  | 0 |  |  |  | 60 |  |  |  | 92 |
Total |  | $ | 104,809 |  |  | $ | 1,169,975 |  |  | $ | 481 |  |  | $ | 389,683 |  |  | $ | 1,664,948 |
The following tables present the credit risk profile of CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class:
|  | Term Loans Amortized Cost Basis by Origination Year |
|  | 2020 |  |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2016 |  |  | Prior |  |  | Revolving Loans |  |  | Total |
Home equity lines |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 0 |  |  | $ | 86 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 8 |  |  | $ | 11,571 |  |  | $ | 98,984 |  |  | $ | 110,649 |
Nonperforming |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 763 |  |  |  | 425 |  |  |  | 1,188 |
Total home equity lines |  | $ | 0 |  |  | $ | 86 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 8 |  |  | $ | 12,334 |  |  | $ | 99,409 |  |  | $ | 111,837 |
Mortgage loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 35,151 |  |  | $ | 161,387 |  |  | $ | 94,854 |  |  | $ | 88,911 |  |  | $ | 70,449 |  |  | $ | 338,123 |  |  | $ | 0 |  |  | $ | 788,875 |
Nonperforming |  |  | 0 |  |  |  | 348 |  |  |  | 596 |  |  |  | 240 |  |  |  | 509 |  |  |  | 8,323 |  |  |  | 0 |  |  |  | 10,016 |
Total mortgage loans |  | $ | 35,151 |  |  | $ | 161,735 |  |  | $ | 95,450 |  |  | $ | 89,151 |  |  | $ | 70,958 |  |  | $ | 346,446 |  |  | $ | 0 |  |  | $ | 798,891 |
Residential loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 35,151 |  |  | $ | 161,473 |  |  | $ | 94,854 |  |  | $ | 88,911 |  |  | $ | 70,457 |  |  | $ | 349,694 |  |  | $ | 98,984 |  |  | $ | 899,524 |
Nonperforming |  |  | 0 |  |  |  | 348 |  |  |  | 596 |  |  |  | 240 |  |  |  | 509 |  |  |  | 9,086 |  |  |  | 425 |  |  |  | 11,204 |
Total residential loans |  | $ | 35,151 |  |  | $ | 161,821 |  |  | $ | 95,450 |  |  | $ | 89,151 |  |  | $ | 70,966 |  |  | $ | 358,780 |  |  | $ | 99,409 |  |  | $ | 910,728 |
Consumer direct loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 15,792 |  |  | $ | 54,032 |  |  | $ | 29,905 |  |  | $ | 16,359 |  |  | $ | 10,196 |  |  | $ | 19,081 |  |  | $ | 0 |  |  | $ | 145,365 |
Nonperforming |  |  | 0 |  |  |  | 6 |  |  |  | 27 |  |  |  | 4 |  |  |  | 1 |  |  |  | 0 |  |  |  | 0 |  |  |  | 38 |
Total consumer direct loans |  | $ | 15,792 |  |  | $ | 54,038 |  |  | $ | 29,932 |  |  | $ | 16,363 |  |  | $ | 10,197 |  |  | $ | 19,081 |  |  | $ | 0 |  |  | $ | 145,403 |
Consumer indirect loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 85,017 |  |  | $ | 179,367 |  |  | $ | 145,511 |  |  | $ | 80,000 |  |  | $ | 42,101 |  |  | $ | 22,006 |  |  | $ | 0 |  |  | $ | 554,002 |
Nonperforming |  |  | 0 |  |  |  | 190 |  |  |  | 93 |  |  |  | 105 |  |  |  | 35 |  |  |  | 42 |  |  |  | 0 |  |  |  | 465 |
Total consumer indirect loans |  | $ | 85,017 |  |  | $ | 179,557 |  |  | $ | 145,604 |  |  | $ | 80,105 |  |  | $ | 42,136 |  |  | $ | 22,048 |  |  | $ | 0 |  |  | $ | 554,467 |
Consumer loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 100,809 |  |  | $ | 233,399 |  |  | $ | 175,416 |  |  | $ | 96,359 |  |  | $ | 52,297 |  |  | $ | 41,087 |  |  | $ | 0 |  |  | $ | 699,367 |
Nonperforming |  |  | 0 |  |  |  | 196 |  |  |  | 120 |  |  |  | 109 |  |  |  | 36 |  |  |  | 42 |  |  |  | 0 |  |  |  | 503 |
Total consumer loans |  | $ | 100,809 |  |  | $ | 233,595 |  |  | $ | 175,536 |  |  | $ | 96,468 |  |  | $ | 52,333 |  |  | $ | 41,129 |  |  | $ | 0 |  |  | $ | 699,870 |
(in thousands) |  | Real Estate Construction |  |  | Real Estate Mortgage |  |  | Home Equity |  |  | Consumer Direct |  |  | Consumer Indirect |  |  | Total |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Performing |  | $ | 62,716 |  |  | $ | 721,094 |  |  | $ | 110,834 |  |  | $ | 147,954 |  |  | $ | 526,970 |  |  | $ | 1,569,568 |
Nonperforming |  |  | 634 |  |  |  | 11,909 |  |  |  | 1,060 |  |  |  | 97 |  |  |  | 448 |  |  |  | 14,148 |
Total |  | $ | 63,350 |  |  | $ | 733,003 |  |  | $ | 111,894 |  |  | $ | 148,051 |  |  | $ | 527,418 |  |  | $ | 1,583,716 |
A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. The total of consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process totaled $3.1 million at March 31, 2020 compared to $2.4 million at December 31, 2019. In accordance with ASC 326-20-30-2, if a loan does not share risk characteristics with other pooled loans in determining the allowance for credit losses, the loan shall be evaluated for expected credit losses on an individual basis. Of the loans that CTBI has individually evaluated, the loans listed below by segment are those that are collateral dependent:
|  | March 31, 2020 |
(in thousands) |  | Number of Loans |  |  | Recorded Investment |  |  | Specific Reserve |
Hotel/motel |  |  | 3 |  |  | $ | 14,712 |  |  | $ | 250 |
Commercial real estate residential |  |  | 7 |  |  |  | 5,125 |  |  |  | 92 |
Commercial real estate nonresidential |  |  | 16 |  |  |  | 25,296 |  |  |  | 720 |
Commercial other |  |  | 5 |  |  |  | 9,569 |  |  |  | 957 |
Total collateral dependent loans |  |  | 31 |  |  | $ | 54,702 |  |  | $ | 2,019 |
The hotel/motel, commercial real estate residential, and commercial real estate nonresidential segments are all collateralized with real estate. The five loans listed in the commercial other segment are collateralized by various chattel and real estate collateral with $5.1 million collateralized by a leasehold mortgage and assignment of lease on commercial property as well as furniture, fixtures, and equipment of the leasehold property, $4.1 million primarily collateralized by underground coal mining equipment and junior real estate liens, and the remaining $0.4 million collateralized by a mix of commercial real estate and liens on furniture, fixtures, and equipment.
|  | December 31, 2019 |
(in thousands) |  | Recorded Balance |  |  | Unpaid Contractual Principal Balance |  |  | Specific Allowance |  |  | Average Investment in Impaired Loans |  |  | *Interest Income Recognized |
Loans without a specific valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  | $ | 2,836 |  |  | $ | 2,837 |  |  | $ | 0 |  |  | $ | 3,234 |  |  | $ | 170 |
Commercial secured by real estate |  |  | 40,346 |  |  |  | 41,557 |  |  |  | 0 |  |  |  | 36,976 |  |  |  | 1,601 |
Commercial other |  |  | 7,829 |  |  |  | 9,489 |  |  |  | 0 |  |  |  | 9,889 |  |  |  | 460 |
Real estate mortgage |  |  | 2,309 |  |  |  | 2,309 |  |  |  | 0 |  |  |  | 2,385 |  |  |  | 85 |
Loans with a specific valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  |  | 174 |  |  |  | 174 |  |  |  | 99 |  |  |  | 215 |  |  |  | 11 |
Commercial secured by real estate |  |  | 1,033 |  |  |  | 2,176 |  |  |  | 227 |  |  |  | 1,678 |  |  |  | 15 |
Commercial other |  |  | 3,244 |  |  |  | 3,244 |  |  |  | 886 |  |  |  | 1,323 |  |  |  | 29 |
Totals: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  |  | 3,010 |  |  |  | 3,011 |  |  |  | 99 |  |  |  | 3,449 |  |  |  | 181 |
Commercial secured by real estate |  |  | 41,379 |  |  |  | 43,733 |  |  |  | 227 |  |  |  | 38,654 |  |  |  | 1,616 |
Commercial other |  |  | 11,073 |  |  |  | 12,733 |  |  |  | 886 |  |  |  | 11,212 |  |  |  | 489 |
Real estate mortgage |  |  | 2,309 |  |  |  | 2,309 |  |  |  | 0 |  |  |  | 2,385 |  |  |  | 85 |
Total |  | $ | 57,771 |  |  | $ | 61,786 |  |  | $ | 1,212 |  |  | $ | 55,700 |  |  | $ | 2,371 |
|  | March 31, 2019 |
(in thousands) |  | Recorded Balance |  |  | Unpaid Contractual Principal Balance |  |  | Specific Allowance |  |  | Average Investment in Impaired Loans |  |  | *Interest Income Recognized |
Loans without a specific valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  | $ | 3,308 |  |  | $ | 3,308 |  |  | $ | 0 |  |  | $ | 3,655 |  |  | $ | 46 |
Commercial secured by real estate |  |  | 32,407 |  |  |  | 34,098 |  |  |  | 0 |  |  |  | 32,811 |  |  |  | 347 |
Commercial other |  |  | 8,903 |  |  |  | 10,598 |  |  |  | 0 |  |  |  | 8,866 |  |  |  | 139 |
Real estate construction |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Real estate mortgage |  |  | 2,337 |  |  |  | 2,337 |  |  |  | 0 |  |  |  | 2,329 |  |  |  | 19 |
Loans with a specific valuation allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  |  | 324 |  |  |  | 324 |  |  |  | 164 |  |  |  | 324 |  |  |  | 3 |
Commercial secured by real estate |  |  | 1,922 |  |  |  | 3,060 |  |  |  | 847 |  |  |  | 1,966 |  |  |  | 10 |
Commercial other |  |  | 1,154 |  |  |  | 1,154 |  |  |  | 620 |  |  |  | 1,169 |  |  |  | 17 |
Totals: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial construction |  |  | 3,632 |  |  |  | 3,632 |  |  |  | 164 |  |  |  | 3,979 |  |  |  | 49 |
Commercial secured by real estate |  |  | 34,329 |  |  |  | 37,158 |  |  |  | 847 |  |  |  | 34,777 |  |  |  | 357 |
Commercial other |  |  | 10,057 |  |  |  | 11,752 |  |  |  | 620 |  |  |  | 10,035 |  |  |  | 156 |
Real estate mortgage |  |  | 2,337 |  |  |  | 2,337 |  |  |  | 0 |  |  |  | 2,329 |  |  |  | 19 |
Total |  | $ | 50,355 |  |  | $ | 54,879 |  |  | $ | 1,631 |  |  | $ | 51,120 |  |  | $ | 581 |
During the first quarter of 2020, certain loans were modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances. Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three months ended March 31, 2020 and 2019 and the year ended December 31, 2019:
|  | Three Months Ended March 31, 2020 |
|  |  |  |  | Pre- Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |
(in thousands) |  | Number of Loans |  |  | Term |  |  | Total Modification |  |  | Term Modification |  |  | Total Modification |
New troubled debt restructurings |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate residential |  |  | 8 |  |  | $ | 4,397 |  |  | $ | 4,397 |  |  | $ | 4,399 |  |  | $ | 4,399 |
Commercial real estate nonresidential |  |  | 9 |  |  |  | 2,345 |  |  |  | 2,345 |  |  |  | 2,336 |  |  |  | 2,336 |
Commercial other |  |  | 5 |  |  |  | 464 |  |  |  | 464 |  |  |  | 399 |  |  |  | 399 |
Total commercial loans |  |  | 22 |  |  |  | 7,206 |  |  |  | 7,206 |  |  |  | 7,134 |  |  |  | 7,134 |
Real estate mortgage |  |  | 1 |  |  |  | 388 |  |  |  | 388 |  |  |  | 388 |  |  |  | 388 |
Total residential loans |  |  | 1 |  |  |  | 388 |  |  |  | 388 |  |  |  | 388 |  |  |  | 388 |
Total troubled debt restructurings |  |  | 23 |  |  | $ | 7,594 |  |  | $ | 7,594 |  |  | $ | 7,522 |  |  | $ | 7,522 |
|  | Year Ended December 31, 2019 |
(in thousands) |  | Number of Loans |  |  | Term Modification |  |  | Rate Modification |  |  | Combination |  |  | Post- Modification Outstanding Balance |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate |  |  | 17 |  |  | $ | 6,105 |  |  | $ | 0 |  |  | $ | 679 |  |  | $ | 6,784 |
Commercial other |  |  | 17 |  |  |  | 1,565 |  |  |  | 0 |  |  |  | 264 |  |  |  | 1,829 |
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate mortgage |  |  | 1 |  |  |  | 463 |  |  |  | 0 |  |  |  | 0 |  |  |  | 463 |
Total troubled debt restructurings |  |  | 35 |  |  | $ | 8,133 |  |  | $ | 0 |  |  | $ | 943 |  |  | $ | 9,076 |
|  | Three Months Ended March 31, 2019 |
(in thousands) |  | Number of Loans |  |  | Term Modification |  |  | Rate Modification |  |  | Combination |  |  | Post- Modification Outstanding Balance |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial secured by real estate |  |  | 5 |  |  | $ | 828 |  |  | $ | 0 |  |  | $ | 642 |  |  | $ | 1,470 |
Commercial other |  |  | 7 |  |  |  | 1,122 |  |  |  | 0 |  |  |  | 140 |  |  |  | 1,262 |
Residential: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate mortgage |  |  | 1 |  |  |  | 463 |  |  |  | 0 |  |  |  | 0 |  |  |  | 463 |
Total troubled debt restructurings |  |  | 13 |  |  | $ | 2,413 |  |  | $ | 0 |  |  | $ | 782 |  |  | $ | 3,195 |
No charge-offs have resulted from modifications for any of the presented periods. We had commitments to extend additional credit in the amount of $95 thousand and $82 thousand at March 31, 2020 and December 31, 2019, on loans that were considered troubled debt restructurings. Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual. Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual. Presented below, segregated by segment, are troubled debt restructurings for which there was a payment default during the periods indicated and such default was within twelve months of the loan modification. There were no defaults as of March 31, 2019.
(in thousands) |  | Three Months Ended March 31, 2020 |
|  | Number of Loans |  |  | Recorded Investment |
Commercial real estate nonresidential |  |  | 1 |  |  | $ | 3,532 |
Commercial other |  |  | 2 |  |  |  | 273 |
Total defaulted restructured loans |  |  | 3 |  |  | $ | 3,805 |
(in thousands) |  | Year Ended December 31, 2019 |
|  | Number of Loans |  |  | Recorded Balance |
Commercial: |  |  |  |  |  |
Commercial secured by real estate |  |  | 1 |  |  | $ | 30 |
Commercial other |  |  | 1 |  |  |  | 34 |
Residential: |  |  |  |  |  |  |  |
Real estate mortgage |  |  | 1 |  |  |  | 463 |
Total defaulted restructured loans |  |  | 3 |  |  | $ | 527 |

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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