XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.2
Loans (Tables)
 6 Months Ended
Jun. 30, 2020
Loans [Abstract]  
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired 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)
  
June 30
2020
  
Hotel/motel
  
$
257,245
  
Commercial real estate residential
    
257,517
  
Commercial real estate nonresidential
    
772,537
  
Dealer floorplans
    
62,909
  
Commercial other
    
288,850
  
Commercial unsecured SBA PPP
    
266,951
  
Commercial loans
    
1,906,009
  
         
Real estate mortgage
    
780,632
  
Home equity lines
    
108,531
  
Residential loans
    
889,163
  
         
Consumer direct
    
147,284
  
Consumer indirect
    
596,314
  
Consumer loans
    
743,598
  
         
Loans and lease financing
  
$
3,538,770
  

(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
  
Activity in Allowance for Credit Losses and Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for credit losses (“ACL”) for the period ended June 30, 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 June 30, 2019:

  
Three Months Ended
June 30, 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
  
$
5,922
    
$
4,012
    
$
11,563
    
$
1,713
    
$
6,409
    
$
7,543
    
$
890
    
$
2,163
    
$
9,230
    
$
49,445
  
Provision charged to expense
    
210
      
(544
)
    
(34
)
    
(102
)
    
204
      
(112
)
    
(35
)
    
(64
)
    
428
      
(49
)
Losses charged off
    
0
      
(35
)
    
(128
)
    
(26
)
    
(1,993
)
    
(119
)
    
0
      
(261
)
    
(1,247
)
    
(3,809
)
Recoveries
    
0
      
6
      
7
      
0
      
83
      
24
      
1
      
94
      
832
      
1,047
  
Ending balance
  
$
6,132
    
$
3,439
    
$
11,408
    
$
1,585
    
$
4,703
    
$
7,336
    
$
856
    
$
1,932
    
$
9,243
    
$
46,634
  

 
Six Months Ended
June 30, 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
    
2,591
      
794
      
2,950
      
(11
)
    
1,637
      
987
      
32
      
673
      
3,005
      
12,658
  
Losses charged off
    
0
      
(86
)
    
(187
)
    
(26
)
    
(2,352
)
    
(179
)
    
0
      
(630
)
    
(2,764
)
    
(6,224
)
Recoveries
    
0
      
13
      
11
      
0
      
253
      
31
      
2
      
218
      
1,536
      
2,064
  
Ending balance
  
$
6,132
    
$
3,439
    
$
11,408
    
$
1,585
    
$
4,703
    
$
7,336
    
$
856
    
$
1,932
    
$
9,243
    
$
46,634
  


 
Three Months Ended
June 30, 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
  
ALLL
                                                            
Beginning balance
  
$
903
    
$
14,800
    
$
10
    
$
5,217
    
$
396
    
$
4,053
    
$
901
    
$
1,635
    
$
7,089
    
$
35,004
  
Provision charged to expense
    
(36
)
    
533
      
(3
)
    
238
      
(38
)
    
299
      
65
      
400
      
105
      
1,563
  
Losses charged off
    
(71
)
    
(345
)
    
0
      
(824
)
    
0
      
(180
)
    
(34
)
    
(331
)
    
(1,012
)
    
(2,797
)
Recoveries
    
3
      
110
      
0
      
258
      
0
      
15
      
1
      
63
      
778
      
1,228
  
Ending balance
  
$
799
    
$
15,098
    
$
7
    
$
4,889
    
$
358
    
$
4,187
    
$
933
    
$
1,767
    
$
6,960
    
$
34,998
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
99
    
$
594
    
$
0
    
$
182
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
875
  
Collectively evaluated for impairment
  
$
700
    
$
14,504
    
$
7
    
$
4,707
    
$
358
    
$
4,187
    
$
933
    
$
1,767
    
$
6,960
    
$
34,123
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
3,487
    
$
37,028
    
$
0
    
$
11,508
    
$
0
    
$
2,570
    
$
0
    
$
0
    
$
0
    
$
54,593
  
Collectively evaluated for impairment
  
$
62,284
    
$
1,155,740
    
$
962
    
$
378,540
    
$
57,017
    
$
720,003
    
$
109,831
    
$
145,149
    
$
508,088
    
$
3,137,614
  


 
Six Months Ended
June 30, 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
  
ALLL
                                                            
Beginning balance
  
$
862
    
$
14,531
    
$
12
    
$
4,993
    
$
512
    
$
4,433
    
$
841
    
$
1,883
    
$
7,841
    
$
35,908
  
Provision charged to expense
    
2
      
821
      
(5
)
    
619
      
(154
)
    
21
      
150
      
281
      
18
      
1,753
  
Losses charged off
    
(71
)
    
(380
)
    
0
      
(1,065
)
    
0
      
(300
)
    
(60
)
    
(577
)
    
(2,399
)
    
(4,852
)
Recoveries
    
6
      
126
      
0
      
342
      
0
      
33
      
2
      
180
      
1,500
      
2,189
  
Ending balance
  
$
799
    
$
15,098
    
$
7
    
$
4,889
    
$
358
    
$
4,187
    
$
933
    
$
1,767
    
$
6,960
    
$
34,998
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
99
    
$
594
    
$
0
    
$
182
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
875
  
Collectively evaluated for impairment
  
$
700
    
$
14,504
    
$
7
    
$
4,707
    
$
358
    
$
4,187
    
$
933
    
$
1,767
    
$
6,960
    
$
34,123
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
3,487
    
$
37,028
    
$
0
    
$
11,508
    
$
0
    
$
2,570
    
$
0
    
$
0
    
$
0
    
$
54,593
  
Collectively evaluated for impairment
  
$
62,284
    
$
1,155,740
    
$
962
    
$
378,540
    
$
57,017
    
$
720,003
    
$
109,831
    
$
145,149
    
$
508,088
    
$
3,137,614
  


 
December 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
  
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
  
Nonaccrual Loans Segregated by Class of Loans

Refer to Note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans segregated by class of loans and loans 90 days past due and still accruing segregated by class of loans were as follows:

  
June 30, 2020
  
 (in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loan
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Hotel/motel
  
$
0
    
$
0
    
$
132
    
$
132
  
Commercial real estate residential
    
1,809
      
1,506
      
5,799
      
9,114
  
Commercial real estate nonresidential
    
0
      
2,833
      
10,276
      
13,109
  
Commercial other
    
1,259
      
689
      
352
      
2,300
  
Total commercial loans
    
3,068
      
5,028
      
16,559
      
24,655
  
                                 
Real estate mortgage
    
0
      
5,296
      
4,140
      
9,436
  
Home equity lines
    
0
      
691
      
482
      
1,173
  
Total residential loans
    
0
      
5,987
      
4,622
      
10,609
  
                                 
Consumer direct
    
0
      
275
      
97
      
372
  
Consumer indirect
    
0
      
0
      
521
      
521
  
Total consumer loans
    
0
      
275
      
618
      
893
  
                                 
Loans and lease financing
  
$
3,068
    
$
11,290
    
$
21,799
    
$
36,157
  

(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
  
Bank's Loan Portfolio Aging Analysis, Segregated by Class

The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of June 30, 2020 and December 31, 2019:

  
June 30, 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
    
$
132
    
$
132
    
$
257,113
    
$
257,245
  
Commercial real estate residential
    
881
      
90
      
7,205
      
8,176
      
249,341
      
257,517
  
Commercial real estate nonresidential
    
2,810
      
420
      
12,011
      
15,241
      
757,296
      
772,537
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
62,909
      
62,909
  
Commercial other
    
471
      
417
      
2,110
      
2,998
      
285,852
      
288,850
  
Commercial unsecured SBA PPP
    
0
      
0
      
0
      
0
      
266,951
      
266,951
  
Total commercial loans
    
4,162
      
927
      
21,458
      
26,547
      
1,879,462
      
1,906,009
  
                                                 
Real estate mortgage
    
1,595
      
3,825
      
6,071
      
11,491
      
769,141
      
780,632
  
Home equity lines
    
717
      
431
      
787
      
1,935
      
106,596
      
108,531
  
Total residential loans
    
2,312
      
4,256
      
6,858
      
13,426
      
875,737
      
889,163
  
                                                 
Consumer direct
    
360
      
116
      
372
      
848
      
146,436
      
147,284
  
Consumer indirect
    
1,935
      
497
      
521
      
2,953
      
593,361
      
596,314
  
Total consumer loans
    
2,295
      
613
      
893
      
3,801
      
739,797
      
743,598
  
                                                 
Loans and lease financing
  
$
8,769
    
$
5,796
    
$
29,209
    
$
43,774
    
$
3,494,996
    
$
3,538,770
  

 
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.
Credit Risk Profile of the Bank's Commercial Loan Portfolio Based on Rating Category and Payment Activity, Segregated by Class of Loans

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/watch
  
$
15,859
    
$
76,877
    
$
42,255
    
$
52,058
    
$
24,211
    
$
30,357
    
$
29
    
$
241,646
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
132
      
1,113
      
9,092
      
5,262
      
0
      
15,599
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
  
$
15,859
    
$
76,877
    
$
42,387
    
$
53,171
    
$
33,303
    
$
35,619
    
$
29
    
$
257,245
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass/watch
  
$
32,631
    
$
47,427
    
$
34,918
    
$
22,779
    
$
29,690
    
$
59,271
    
$
10,720
    
$
237,436
  
OAEM
    
60
      
1,562
      
667
      
957
      
453
      
60
      
450
      
4,209
  
Substandard
    
2,124
      
2,210
      
2,283
      
4,166
      
1,198
      
3,783
      
108
      
15,872
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
  
$
34,815
    
$
51,199
    
$
37,868
    
$
27,902
    
$
31,341
    
$
63,114
    
$
11,278
    
$
257,517
  
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass/watch
  
$
82,320
    
$
118,631
    
$
95,212
    
$
94,677
    
$
111,700
    
$
207,042
    
$
24,821
    
$
734,403
  
OAEM
    
0
      
511
      
70
      
2
      
0
      
3,327
      
20
      
3,930
  
Substandard
    
3,676
      
7,132
      
1,697
      
2,881
      
1,513
      
16,874
      
401
      
34,174
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
30
      
0
      
30
  
Total commercial real estate nonresidential
  
$
85,996
    
$
126,274
    
$
96,979
    
$
97,560
    
$
113,213
    
$
227,273
    
$
25,242
    
$
772,537
  
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass/watch
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
62,909
    
$
62,909
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total dealer floorplans
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
62,909
    
$
62,909
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass/watch
  
$
61,504
    
$
39,977
    
$
37,488
    
$
18,186
    
$
8,921
    
$
28,486
    
$
81,263
    
$
275,825
  
OAEM
    
0
      
0
      
5,129
      
250
      
477
      
26
      
0
      
5,882
  
Substandard
    
2,139
      
1,819
      
372
      
504
      
1,719
      
499
      
91
      
7,143
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
  
$
63,643
    
$
41,796
    
$
42,989
    
$
18,940
    
$
11,117
    
$
29,011
    
$
81,354
    
$
288,850
  
                                                                 
Commercial unsecured SBA PPP
                                                                
Risk rating:
                                                                
Pass/watch
  
$
266,951
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
266,951
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial unsecured SBA PPP
  
$
266,951
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
266,951
  
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass/watch
  
$
459,265
    
$
282,912
    
$
209,873
    
$
187,700
    
$
174,522
    
$
325,156
    
$
179,742
    
$
1,819,170
  
OAEM
    
60
      
2,073
      
5,866
      
1,209
      
930
      
3,413
      
470
      
14,021
  
Substandard
    
7,939
      
11,161
      
4,484
      
8,664
      
13,522
      
26,418
      
600
      
72,788
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
30
      
0
      
30
  
Total commercial loans
  
$
467,264
    
$
296,146
    
$
220,223
    
$
197,573
    
$
188,974
    
$
355,017
    
$
180,812
    
$
1,906,009
  


(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
  
Credit Risk Profile of Residential Real Estate and Consumer Loan Portfolio Based on Performing and Nonperforming Status Segregated by Class

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
    
$
0
    
$
0
    
$
0
    
$
7
    
$
12,086
    
$
95,265
    
$
107,358
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
757
      
416
      
1,173
  
Total home equity lines
  
$
0
    
$
0
    
$
0
    
$
0
    
$
7
    
$
12,843
    
$
95,681
    
$
108,531
  
                                                                 
Mortgage loans
                                                                
Performing
  
$
85,015
    
$
148,158
    
$
78,460
    
$
78,334
    
$
62,805
    
$
318,424
    
$
0
    
$
771,196
  
Nonperforming
    
0
      
418
      
448
      
400
      
409
      
7,761
      
0
      
9,436
  
Total mortgage loans
  
$
85,015
    
$
148,576
    
$
78,908
    
$
78,734
    
$
63,214
    
$
326,185
    
$
0
    
$
780,632
  
                                                                 
Residential loans
                                                                
Performing
  
$
85,015
    
$
148,158
    
$
78,460
    
$
78,334
    
$
62,812
    
$
330,510
    
$
95,265
    
$
878,554
  
Nonperforming
    
0
      
418
      
448
      
400
      
409
      
8,518
      
416
      
10,609
  
Total residential loans
  
$
85,015
    
$
148,576
    
$
78,908
    
$
78,734
    
$
63,221
    
$
339,028
    
$
95,681
    
$
889,163
  
                                                                 
Consumer direct loans
                                                                
Performing
  
$
37,707
    
$
46,038
    
$
26,068
    
$
12,897
    
$
8,888
    
$
15,314
    
$
0
    
$
146,912
  
Nonperforming
    
0
      
15
      
3
      
0
      
0
      
354
      
0
      
372
  
Total consumer direct loans
  
$
37,707
    
$
46,053
    
$
26,071
    
$
12,897
    
$
8,888
    
$
15,668
    
$
0
    
$
147,284
  
                                                                 
Consumer indirect loans
                                                                
Performing
  
$
181,015
    
$
164,703
    
$
129,347
    
$
69,555
    
$
35,154
    
$
16,019
    
$
0
    
$
595,793
  
Nonperforming
    
0
      
217
      
170
      
74
      
21
      
39
      
0
      
521
  
Total consumer indirect loans
  
$
181,015
    
$
164,920
    
$
129,517
    
$
69,629
    
$
35,175
    
$
16,058
    
$
0
    
$
596,314
  
                                                                 
Consumer loans
                                                                
Performing
  
$
218,722
    
$
210,741
    
$
155,415
    
$
82,452
    
$
44,042
    
$
31,333
    
$
0
    
$
742,705
  
Nonperforming
    
0
      
232
      
173
      
74
      
21
      
393
      
0
      
893
  
Total consumer loans
  
$
218,722
    
$
210,973
    
$
155,588
    
$
82,526
    
$
44,063
    
$
31,726
    
$
0
    
$
743,598
  


(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
  
Collateral Dependent Loans and Loans With/Without Specific Valuation Allowance

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:

  
June 30, 2020
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
3
    
$
14,861
    
$
250
  
Commercial real estate residential
    
3
      
6,398
      
0
  
Commercial real estate nonresidential
    
11
      
22,567
      
200
  
Commercial other
    
3
      
7,440
      
0
  
Total collateral dependent loans
    
20
    
$
51,266
    
$
450
  


The hotel/motel, commercial real estate residential, and commercial real estate nonresidential segments are all collateralized with real estate.  The three 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 and the remaining $2.3 million collateralized by underground coal mining equipment and junior real estate liens.


  
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
  

 
June 30, 2019
  
(in thousands)
  
Recorded
Balance
    
Unpaid
Contractual
Principal
Balance
    
Specific
Allowance
  
Loans without a specific valuation allowance:
                  
Commercial construction
  
$
3,313
    
$
3,383
    
$
0
  
Commercial secured by real estate
    
35,043
      
36,740
      
0
  
Commercial other
    
10,992
      
13,249
      
0
  
Real estate mortgage
    
2,570
      
2,570
      
0
  
                         
Loans with a specific valuation allowance:
                        
Commercial construction
    
174
      
174
      
99
  
Commercial secured by real estate
    
1,985
      
3,473
      
594
  
Commercial other
    
516
      
516
      
182
  
                         
Totals:
                        
Commercial construction
    
3,487
      
3,557
      
99
  
Commercial secured by real estate
    
37,028
      
40,213
      
594
  
Commercial other
    
11,508
      
13,765
      
182
  
Real estate mortgage
    
2,570
      
2,570
      
0
  
Total
  
$
54,593
    
$
60,105
    
$
875
  


 
Three Months Ended
    
Six Months Ended
  
   
June 30, 2019
    
June 30, 2019
  
(in thousands)
  
Average
Investment in
Impaired Loans
    
*Interest
Income
Recognized
    
Average
Investment in
Impaired Loans
    
*Interest
Income
Recognized
  
Loans without a specific valuation allowance:
                        
Commercial construction
  
$
3,419
    
$
49
    
$
3,537
    
$
95
  
Commercial secured by real estate
    
35,259
      
403
      
34,035
      
750
  
Commercial other
    
11,546
      
149
      
10,206
      
288
  
Real estate mortgage
    
2,572
      
22
      
2,451
      
41
  
                                 
Loans with a specific valuation allowance:
                                
Commercial construction
    
189
      
3
      
257
      
6
  
Commercial secured by real estate
    
2,314
      
5
      
2,140
      
15
  
Commercial other
    
514
      
6
      
842
      
23
  
                                 
Totals:
                                
Commercial construction
    
3,608
      
52
      
3,794
      
101
  
Commercial secured by real estate
    
37,573
      
408
      
36,175
      
765
  
Commercial other
    
12,060
      
155
      
11,048
      
311
  
Real estate mortgage
    
2,572
      
22
      
2,451
      
41
  
Total
  
$
55,813
    
$
637
    
$
53,468
    
$
1,218
  
Troubled Debt Restructuring

During the second 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 and six months ended June 30, 2020 and 2019 and the year ended December 31, 2019:

  
Three Months Ended
June 30, 2020
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
3
    
$
196
    
$
1,809
    
$
2,005
  
Commercial real estate nonresidential
    
3
      
419
      
510
      
929
  
Commercial other
    
4
      
115
      
25
      
140
  
Total commercial loans
    
10
      
730
      
2,344
      
3,074
  
                                 
Real estate mortgage
    
1
      
545
      
0
      
545
  
Total residential loans
    
1
      
545
      
0
      
545
  
                                 
Total troubled debt restructurings
    
11
    
$
1,275
    
$
2,344
    
$
3,619
  

 
Three Months Ended
June 30, 2020
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
3
    
$
196
    
$
1,809
    
$
2,005
  
Commercial real estate nonresidential
    
3
      
419
      
510
      
929
  
Commercial other
    
4
      
114
      
25
      
139
  
Total commercial loans
    
10
      
729
      
2,344
      
3,073
  
                                 
Real estate mortgage
    
1
      
533
      
0
      
533
  
Total residential loans
    
1
      
533
      
0
      
533
  
                                 
Total troubled debt restructurings
    
11
    
$
1,262
    
$
2,344
    
$
3,606
  

 
Six Months Ended
June 30, 2020
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
11
    
$
4,593
    
$
1,809
    
$
6,402
  
Commercial real estate nonresidential
    
12
      
2,764
      
510
      
3,274
  
Commercial other
    
9
      
579
      
25
      
604
  
Total commercial loans
    
32
      
7,936
      
2,344
      
10,280
  
                                 
Real estate mortgage
    
2
      
933
      
0
      
933
  
Total residential loans
    
2
      
933
      
0
      
933
  
                                 
Total troubled debt restructurings
    
34
    
$
8,869
    
$
2,344
    
$
11,213
  


 
Six Months Ended
June 30, 2020
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
11
    
$
4,595
    
$
1,809
    
$
6,404
  
Commercial real estate nonresidential
    
12
      
2,755
      
510
      
3,265
  
Commercial other
    
9
      
513
      
25
      
538
  
Total commercial loans
    
32
      
7,863
      
2,344
      
10,207
  
                                 
Real estate mortgage
    
2
      
921
      
0
      
921
  
Total residential loans
    
2
      
921
      
0
      
921
  
                                 
Total troubled debt restructurings
    
34
    
$
8,784
    
$
2,344
    
$
11,128
  

 
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
June 30, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
5
    
$
3,686
    
$
0
    
$
37
    
$
3,723
  
Commercial other
    
4
      
138
      
0
      
0
      
138
  
Residential:
                                        
Real estate mortgage
    
1
      
0
      
0
      
243
      
243
  
Total troubled debt restructurings
    
10
    
$
3,824
    
$
0
    
$
280
    
$
4,104
  

 
Six Months Ended
June 30, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
10
    
$
4,514
    
$
0
    
$
679
    
$
5,193
  
Commercial other
    
11
      
1,260
      
0
      
140
      
1,400
  
Residential:
                                        
Real estate mortgage
    
2
      
463
      
0
      
243
      
706
  
Total troubled debt restructurings
    
23
    
$
6,237
    
$
0
    
$
1,062
    
$
7,299
  
Defaulted Restructured Loans

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.

(in thousands)
  
Three Months Ended
June 30, 2020
  
   
Number of
Loans
    
Recorded
Balance
  
Commercial:
            
Commercial real estate residential
    
1
    
$
67
  
Commercial other
    
1
      
95
  
Total defaulted restructured loans
    
2
    
$
162
  

(in thousands)
  
Six Months Ended
June 30, 2020
  
   
Number of
Loans
    
Recorded
Balance
  
Commercial:
            
Commercial real estate residential
    
1
    
$
67
  
Commercial other
    
3
      
368
  
Total defaulted restructured loans
    
4
    
$
435