10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 10-Q

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended September 30, 2015
	Or
[   ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _____________ to _____________

Commission file number 0-11129

COMMUNITY TRUST BANCORP, INC.

(Exact name of registrant as specified in its charter)

Kentucky	61-0979818
(State or other jurisdiction of incorporation or organization)	IRS Employer Identification No.
346 North Mayo Trail Pikeville, Kentucky (Address of principal executive offices)	41501 (Zip code)

(606) 432-1414

(Registrant's telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes  ✓ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files.)

Yes  ✓ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definition of "accelerated filer, large accelerated filer, and smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer  ✓	Non-accelerated filer	Smaller reporting company
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes    No ✓

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practical date.

Common stock – 17,519,343 shares outstanding at October 31, 2015

CAUTIONARY STATEMENT

REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements contained herein that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. CTBI's actual results may differ materially from those included in the forward-looking statements. Forward-looking statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intend," "estimate," "may increase," "may fluctuate," and similar expressions or future or conditional verbs such as "will," "should," "would," and "could." These forward-looking statements involve risks and uncertainties including, but not limited to, economic conditions, portfolio growth, the credit performance of the portfolios, including bankruptcies, and seasonal factors; changes in general economic conditions including the performance of financial markets, prevailing inflation and interest rates, realized gains from sales of investments, gains from asset sales, and losses on commercial lending activities; results of various investment activities; the effects of competitors' pricing policies, changes in laws and regulations, competition, and demographic changes on target market populations' savings and financial planning needs; industry changes in information technology systems on which we are highly dependent; failure of acquisitions to produce revenue enhancements or cost savings at levels or within the time frames originally anticipated or unforeseen integration difficulties; the adoption by CTBI of a Federal Financial Institutions Examination Council (FFIEC) policy that provides guidance on the reporting of delinquent consumer loans and the timing of associated credit charge-offs for financial institution subsidiaries; and the resolution of legal proceedings and related matters.  In addition, the banking industry in general is subject to various monetary and fiscal policies and regulations, which include those determined by the Federal Reserve Board, the Federal Deposit Insurance Corporation, and state regulators, whose policies and regulations could affect CTBI's results.  These statements are representative only on the date hereof, and CTBI undertakes no obligation to update any forward-looking statements made.

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

The accompanying information has not been audited by our independent registered public accountants; however, in the opinion of management such information reflects all adjustments necessary for a fair presentation of the results for the interim period.  All such adjustments are of a normal and recurring nature.

The accompanying condensed consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all of the disclosures normally required by accounting principles generally accepted in the United States of America or those normally made in the Registrant's annual report on Form 10-K.  Accordingly, the reader of the Form 10-Q should refer to the Registrant's Form 10-K for the year ended December 31, 2014 for further information in this regard.

Community Trust Bancorp, Inc.

Condensed Consolidated Balance Sheets

(dollars in thousands)	(unaudited) September 30 2015			December 31 2014
Assets:
Cash and due from banks	$	54,041		$	56,299
Interest bearing deposits		106,628			44,285
Federal funds sold		2,523			4,933
Cash and cash equivalents		163,192			105,517
Certificates of deposit in other banks		5,759			8,197
Securities available-for-sale at fair value (amortized cost of $571,539 and $638,395, respectively)		576,713			640,186
Securities held-to-maturity at amortized cost (fair value of $1,651 and $1,644, respectively)		1,661			1,662
Loans held for sale		1,983			2,264
Loans		2,820,460			2,733,824
Allowance for loan and lease losses		(35,540	)		(34,447	)
Net loans		2,784,920			2,699,377
Premises and equipment, net		48,541			49,980
Federal Home Loan Bank stock		17,927			17,927
Federal Reserve Bank stock		4,887			4,869
Goodwill		65,490			65,490
Core deposit intangible (net of accumulated amortization of $8,285 and $8,138, respectively)		331			477
Bank owned life insurance		61,942			60,697
Mortgage servicing rights		3,030			2,968
Other real estate owned		34,654			36,776
Other assets		37,118			27,378
Total assets	$	3,808,148		$	3,723,765
Liabilities and shareholders' equity:
Deposits:
Noninterest bearing	$	737,657		$	677,626
Interest bearing		2,237,572			2,196,631
Total deposits		2,975,229			2,874,257
Repurchase agreements		256,153			235,186
Federal funds purchased and other short-term borrowings		9,215			11,041
Advances from Federal Home Loan Bank		1,084			61,170
Long-term debt		61,341			61,341
Other liabilities		34,541			32,893
Total liabilities		3,337,563			3,275,888
Shareholders' equity:
Preferred stock, 300,000 shares authorized and unissued		-			-
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2015 – 17,513,449; 2014 – 17,466,375		87,568			87,332
Capital surplus		216,253			214,684
Retained earnings		163,401			144,697
Accumulated other comprehensive income, net of tax		3,363			1,164
Total shareholders' equity		470,585			447,877
Total liabilities and shareholders' equity	$	3,808,148		$	3,723,765

See notes to condensed consolidated financial statements.

Community Trust Bancorp, Inc.

Condensed Consolidated Statements of Income and Comprehensive Income

(unaudited)

	Three Months Ended					Nine Months Ended
	September 30					September 30
(in thousands except per share data)	2015		2014			2015		2014
Interest income:
Interest and fees on loans, including loans held for sale	$	32,847	$	32,191		$	97,691	$	95,741
Interest and dividends on securities
Taxable		2,044		2,763			7,007		8,616
Tax exempt		679		664			2,032		1,912
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock		252		252			756		882
Other, including interest on federal funds sold		90		87			234		310
Total interest income		35,912		35,957			107,720		107,461
Interest expense:
Interest on deposits		2,412		2,475			7,077		7,409
Interest on repurchase agreements and other short-term borrowings		231		205			689		614
Interest on advances from Federal Home Loan Bank		9		6			33		17
Interest on long-term debt		295		283			869		850
Total interest expense		2,947		2,969			8,668		8,890
Net interest income		32,965		32,988			99,052		98,571
Provision for loan losses		2,520		3,300			6,740		5,380
Net interest income after provision for loan losses		30,445		29,688			92,312		93,191
Noninterest income:
Service charges on deposit accounts		6,348		6,321			17,976		17,739
Gains on sales of loans, net		462		303			1,575		781
Trust and wealth management income		2,297		2,395			6,902		6,703
Loan related fees		641		1,128			2,747		2,573
Bank owned life insurance		581		523			1,623		1,473
Brokerage revenue		395		505			1,058		1,709
Securities gains (losses)		12		(34	)		142		(145	)
Other noninterest income		1,299		865			2,976		2,210
Total noninterest income		12,035		12,006			34,999		33,043
Noninterest expense:
Officer salaries and employee benefits		3,288		2,584			9,179		8,206
Other salaries and employee benefits		10,687		10,881			32,063		31,950
Occupancy, net		1,942		2,007			5,937		6,108
Equipment		746		831			2,295		2,669
Data processing		1,577		2,017			5,204		5,875
Bank franchise tax		1,272		1,208			3,816		3,625
Legal fees		505		558			1,604		1,912
Professional fees		524		491			1,497		1,331
FDIC insurance		606		575			1,798		1,782
Other real estate owned provision and expense		1,289		707			2,525		2,948
Repossession expense		347		322			947		863
Other noninterest expense		4,751		3,682			12,800		10,711
Total noninterest expense		27,534		25,863			79,665		77,980
Income before income taxes		14,946		15,831			47,646		48,254
Income taxes		3,724		4,907			13,084		14,995
Net income		11,222		10,924			34,562		33,259
Other comprehensive income:
Unrealized holding gains (losses) on securities available-for-sale:
Unrealized holding gains (losses) arising during the period		3,463		(2,009	)		3,525		10,642
Less: Reclassification adjustments for realized gains (losses) included in net income		12		(34	)		142		(145	)
Tax (benefit) expense		1,208		(691	)		1,184		3,776
Other comprehensive income (loss), net of tax		2,243		(1,284	)		2,199		7,011
Comprehensive income	$	13,465	$	9,640		$	36,761	$	40,270
Basic earnings per share	$	0.64	$	0.63		$	1.98	$	1.92
Diluted earnings per share	$	0.64	$	0.63		$	1.98	$	1.91
Weighted average shares outstanding-basic		17,440		17,326			17,420		17,317
Weighted average shares outstanding-diluted		17,491		17,402			17,472		17,395
Dividends declared per share	$	0.310	$	0.300		$	0.910	$	0.881

See notes to condensed consolidated financial statements.

Community Trust Bancorp, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Nine Months Ended
	September 30
(in thousands)	2015			2014
Cash flows from operating activities:
Net income	$	34,562		$	33,259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,977			3,307
Deferred taxes		1,711			1,421
Stock-based compensation		518			548
Excess tax benefits of stock-based compensation		190			22
Provision for loan losses		6,740			5,380
Write-downs of other real estate owned and other repossessed assets		1,146			1,402
Gains on sale of mortgage loans held for sale		(1,575	)		(781	)
Securities (gains) losses		(142	)		145
Losses on sale of assets, net		(115	)		(3	)
Proceeds from sale of mortgage loans held for sale		63,580			33,240
Funding of mortgage loans held for sale		(61,724	)		(31,998	)
Amortization of securities premiums and discounts, net		2,552			2,011
Change in cash surrender value of bank owned life insurance		(1,245	)		(1,113	)
Mortgage servicing rights:
Fair value adjustments		381			546
New servicing assets created		(443	)		(234	)
Changes in:
Other assets		(9,612	)		297
Other liabilities		(1,068	)		(943	)
Net cash provided by operating activities		38,433			46,506
Cash flows from investing activities:
Certificates of deposit in other banks:
Maturity of certificates of deposit		2,438			389
Securities available-for-sale (AFS):
Purchase of AFS securities		(36,561	)		(177,579	)
Proceeds from the sales of AFS securities		44,198			112,949
Proceeds from prepayments and maturities of AFS securities		56,809			49,094
Securities held-to-maturity (HTM):
Proceeds from maturities of HTM securities		1			0
Change in loans, net		(98,730	)		(73,376	)
Purchase of premises and equipment		(1,685	)		(1,750	)
Proceeds from sale of premises and equipment		232			22
Redemption of stock by Federal Home Loan Bank		0			7,746
Additional investment in Federal Reserve Bank stock		(18	)		(1	)
Proceeds from sale of other real estate and other repossessed assets		7,563			4,551
Additional investment in other real estate and other repossessed assets		(85	)		0
Net cash used in investing activities		(25,838	)		(77,955	)
Cash flows from financing activities:
Change in deposits, net		100,972			47,107
Change in repurchase agreements, federal funds purchased, and other short-term borrowings, net		19,141			10,677
Advances from Federal Home Loan Bank		70,000			0
Payments on advances from Federal Home Loan Bank		(130,086	)		(87	)
Issuance of common stock		1,345			930
Repurchase of common stock		(189	)		0
Excess tax benefits of stock-based compensation		(190	)		(22	)
Dividends paid		(15,913	)		(15,339	)
Net cash provided by financing activities		45,080			43,266
Net increase in cash and cash equivalents		57,675			11,817
Cash and cash equivalents at beginning of period		105,517			106,641
Cash and cash equivalents at end of period	$	163,192		$	118,458
Supplemental disclosures:
Income taxes paid	$	15,199		$	10,170
Interest paid		7,935			8,058
Non-cash activities:
Loans to facilitate the sale of other real estate and repossessed assets		3,548			5,745
Common stock dividends accrued, paid in subsequent quarter		220			207
Real estate acquired in settlement of loans		9,694			5,267

See notes to condensed consolidated financial statements.

Community Trust Bancorp, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited)

Note 1 - Summary of Significant Accounting Policies

In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (which consist of normal recurring adjustments) necessary, to present fairly the condensed consolidated financial position as of September 30, 2015, the results of operations for the three and nine months ended September 30, 2015 and 2014, and the cash flows for the nine months ended September 30, 2015 and 2014.  In accordance with accounting principles generally accepted in the United States of America for interim financial information, these statements do not include certain information and footnote disclosures required by accounting principles generally accepted in the United States of America for complete annual financial statements.  The results of operations for the three and nine months ended September 30, 2015 and 2014, and the cash flows for the nine months ended September 30, 2015 and 2014, are not necessarily indicative of the results to be expected for the full year.  The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements of Community Trust Bancorp, Inc. ("CTBI") for that period.  For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2014, included in our annual report on Form 10-K.

Principles of Consolidation – The unaudited condensed consolidated financial statements include the accounts of CTBI and its separate and distinct, wholly owned subsidiaries Community Trust Bank, Inc. (the "Bank") and Community Trust and Investment Company.  All significant intercompany transactions have been eliminated in consolidation.

Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year classifications.  These reclassifications had no effect on net income.

All share data has been adjusted for the 10% stock dividend issued on June 2, 2014.

New Accounting Standards –

ØAccounting for Investments in Qualified Affordable Housing Projects –In January 2014, the FASB issued ASU No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323):  Accounting for Investments in Qualified Affordable Housing Projects, which enables companies that invest in affordable housing projects that qualify for the low-income housing tax credit (LIHTC) to elect to use the proportional amortization method if certain conditions are met.  Under the proportional amortization method, the initial investment cost of the project is amortized in proportion to the amount of tax credits and benefits received, with the results of the investment presented on a net basis as a component of income tax expense (benefit).  ASU 2014-01 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements.

ØReclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure – In January 2014, the FASB also issued ASU No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in-substance foreclosure or repossession of residential real estate property occurs, requiring a creditor to reclassify the loan to other real estate.  According to ASU 2014-04, a consumer mortgage loan should be reclassified to other real estate either upon the creditor obtaining legal title to the real estate collateral or when the borrower voluntarily conveys all interest in the real estate property to the creditor through a deed in lieu of foreclosure or similar legal agreement.  ASU 2014-04 also clarifies that a creditor should not delay reclassification when a borrower has a legal right of redemption.  ASU 2014-04 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements as our practice was already consistent with the new guidance.

ØElimination of Extraordinary Reporting – In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.  ASU No. 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item.  The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards.  The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  A reporting entity may apply the amendments prospectively.  A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The effective date is the same for both public business entities and all other entities.  For an entity that prospectively applies the guidance, the only required transition disclosure will be to disclose, if applicable, both the nature and the amount of an item included in income from continuing operations after adoption that adjusts an extraordinary item previously classified and presented before the date of adoption.  An entity retrospectively applying the guidance should provide the disclosures in paragraphs 250-10-50-1 through 50-2.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

ØIntangibles – Goodwill and Other – Internal-Use Software – In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).  The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license.  If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.  If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract.  The guidance will not change GAAP for a customer's accounting for service contracts.  In addition, the guidance in this update supersedes paragraph 350-40-25-16.  Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets.  For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015.  Early adoption is permitted.  An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively.  For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change.  For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change.  We are currently evaluating the impact of adopting ASU 2015-05, but we do not expect the adoption to have a material effect on CTBI's consolidated financial statements.

ØBusiness Combinations: Simplifying the Accounting Measurement-Period Adjustments – In September 2015, the FASB issued ASU No. 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.  Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period.  To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined.  The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.  Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates.  Such differences could be material to the consolidated financial statements.

We believe the application of accounting policies and the estimates required therein are reasonable.  These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change.  Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

We have identified the following critical accounting policies:

Investments –Management determines the classification of securities at purchase.  We classify securities into held-to-maturity, trading, or available-for-sale categories.  Held-to-maturity securities are those which we have the positive intent and ability to hold to maturity and are reported at amortized cost.  In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investment Securities, investments in debt securities that are not classified as held-to-maturity and equity securities that have readily determinable fair values shall be classified in one of the following categories and measured at fair value in the statement of financial position:

a. Trading securities. Securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) shall be classified as trading securities. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.

b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities.

We do not have any securities that are classified as trading securities.  Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders' equity, net of tax.  If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related.

Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost.  Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists.  Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment.  The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity.  Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment.  If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the CTBI's results of operations and financial condition.

Loans –Loans with the ability and the intent to be held until maturity and/or payoff are reported at the carrying value of unpaid principal reduced by unearned interest, an allowance for loan and lease losses, and unamortized deferred fees or costs.  Income is recorded on the level yield basis.  Interest accrual is discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower's financial condition is such that collection of interest is doubtful.  Any loan greater than 90 days past due must be well secured and in the process of collection to continue accruing interest.  Cash payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured.  Loans are not reclassified as accruing until principal and interest payments remain current for a period of time, generally six months, and future payments appear reasonably certain.  Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired.  A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.

Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment.

Allowance for Loan and Lease Losses –We maintain an allowance for loan and lease losses ("ALLL") at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio.  Since arriving at an appropriate ALLL involves a high degree of management judgment, we use an ongoing quarterly analysis to develop a range of estimated losses.  In accordance with accounting principles generally accepted in the United States, we use our best estimate within the range of potential credit loss to determine the appropriate ALLL.  Credit losses are charged and recoveries are credited to the ALLL.

We utilize an internal risk grading system for commercial credits.  Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review.  The borrower's cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated.  The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan.  We evaluate the collectability of both principal and interest when assessing the need for loss provision.  Historical loss rates are analyzed and applied to other commercial loans not subject to specific allocations.  The ALLL allocation for this pool of commercial loans is established based on the historical average, maximum, minimum, and median loss ratios.

A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded.  The associated ALLL for these loans is measured under ASC 450, Contingencies.

When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made.  If the balance of the loan exceeds the fair value of the collateral, the loan is placed on non-accrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed.  When the foreclosed collateral has been legally assigned to CTBI, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell of the collateral then transferred to other real estate owned or other repossessed assets.  When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due.

All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent.  If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent.  For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual.  Foreclosure proceedings are normally initiated after 120 days.  When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off.

Historical loss rates for loans are adjusted for significant factors that, in management's judgment, reflect the impact of any current conditions on loss recognition.  We use twelve rolling quarters for our historical loss rate analysis.  Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year's charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions.  Based upon management's judgment, "best case," "worst case," and "most likely" scenarios are determined.  The total of each of these weighted factors is then applied against the applicable portion of the portfolio and the ALLL is adjusted accordingly to approximate the most likely scenario.  Management continually reevaluates the other subjective factors included in its ALLL analysis.

Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs.  Additionally, periodic updated appraisals are obtained on unsold foreclosed properties.  When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs.  Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  All revenues and expenses related to the carrying of other real estate owned are recognized by a charge to income.

Income Taxes – Income tax expense is based on the taxes due on the consolidated tax return plus deferred taxes based on the expected future tax benefits and consequences of temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the consolidated financial statements.  During the nine months ended September 30, 2015 and 2014, CTBI did not recognize a significant amount of interest expense or penalties in connection with income taxes.

CTBI is currently under IRS examination of its 2013 corporate income tax return.  Management does not expect that the results of the examination will have a material effect on our financial condition.  While management believes our tax positions are appropriate, the IRS could challenge our positions as a part of this examination.

Note 2 – Stock-Based Compensation

CTBI's compensation expense related to stock option grants was $10 thousand and $3 thousand, respectively, for the three months ended September 30, 2015 and 2014, and $29 thousand and $8 thousand, respectively, for the nine months ended September 30, 2015 and 2014.  Restricted stock expense for the three months ended September 30, 2015 and 2014 was $186 thousand and $202 thousand, respectively, including $20 thousand and $30 thousand in dividends paid for each period.  Restricted stock expense for the nine months ended September 30, 2015 and 2014 was $554 thousand and $540 thousand, respectively, including $59 thousand and $90 thousand in dividends.  As of September 30, 2015, there was a total of $0.2 million of unrecognized compensation expense related to unvested stock option awards that will be recognized as expense as the awards vest over a weighted average period of 4.1 years and a total of $0.5 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 2.0 years.

There were no shares of restricted stock granted during the three months ended September 30, 2015 and 2014.  There were 10,582 and 4,561 shares of restricted stock granted during the nine months ended September 30, 2015 and 2014, respectively.  The restrictions on the restricted stock lapse ratably over four years or in the event of a change in control of CTBI or the death of the participant.  In the event of the disability of the participant, the restrictions will lapse on a pro rata basis.  The Compensation Committee of the Board of Directors will have discretion to review and revise restrictions applicable to a participant's restricted stock in the event of the participant's retirement.  There were no options granted to purchase shares of CTBI common stock during the three months ended September 30, 2015.  There were 20,000 options granted during the nine months ended September 30, 2015.  There were 10,000 options granted during the three and nine months ended September 30, 2014.

The fair value of options granted during the nine months ended September 30, 2015, were established at the date of grant using a Black-Scholes option pricing model with the weighted average assumptions as follows:

	Nine Months Ended September 30
	2015			2014
Expected dividend yield		3.72	%		3.40	%
Risk-free interest rate		1.54	%		2.01	%
Expected volatility		30.77	%		30.77	%
Expected term (in years)		7.0			7.0
Weighted average fair value of options	$	6.60		$	7.76

Note 3 – Securities

Securities are classified into held-to-maturity and available-for-sale categories.  Held-to-maturity (HTM) securities are those that CTBI has the positive intent and ability to hold to maturity and are reported at amortized cost.  Available-for-sale (AFS) securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management or other reasons.  Available-for-sale securities are reported at fair value, with unrealized gains or losses included as a separate component of equity, net of tax.

The amortized cost and fair value of securities at September 30, 2015 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	201,461	$	990	$	(401	)	$	202,050
State and political subdivisions		132,249		3,718		(508	)		135,459
U.S. government sponsored agency mortgage-backed securities		212,829		2,473		(1,126	)		214,176
Total debt securities		546,539		7,181		(2,035	)		551,685
CRA investment funds		25,000		28		0			25,028
Total available-for-sale securities	$	571,539	$	7,209	$	(2,035	)	$	576,713

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(11	)	$	469
State and political subdivisions		1,181		1		0			1,182
Total held-to-maturity securities	$	1,661	$	1	$	(11	)	$	1,651

The amortized cost and fair value of securities at December 31, 2014 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	190,563	$	509	$	(2,140	)	$	188,932
State and political subdivisions		133,951		3,973		(466	)		137,458
U.S. government sponsored agency mortgage-backed securities		288,881		2,876		(2,850	)		288,907
Total debt securities		613,395		7,358		(5,456	)		615,297
CRA investment funds		25,000		0		(111	)		24,889
Total available-for-sale securities	$	638,395	$	7,358	$	(5,567	)	$	640,186

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(19	)	$	461
State and political subdivisions		1,182		1		0			1,183
Total held-to-maturity securities	$	1,662	$	1	$	(19	)	$	1,644

The amortized cost and fair value of securities at September 30, 2015 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	30,015	$	30,092	$	0	$	0
Due after one through five years		128,605		129,937		1,181		1,182
Due after five through ten years		124,654		126,142		480		469
Due after ten years		50,436		51,338		0		0
U.S. government sponsored agency mortgage-backed securities		212,829		214,176		0		0
Total debt securities		546,539		551,685		1,661		1,651
CRA investment funds		25,000		25,028		0		0
Total securities	$	571,539	$	576,713	$	1,661	$	1,651

As of September 30, 2015, there was a net gain of $142 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $840 thousand and a pre-tax loss of $698 thousand.  As of September 30, 2014, there was a net loss of $145 thousand.

The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $217.6 million at September 30, 2015 and $267.1 million at December 31, 2014.

The amortized cost of securities sold under agreements to repurchase amounted to $286.4 million at September 30, 2015 and $280.9 million at December 31, 2014.

CTBI evaluates its investment portfolio on a quarterly basis for impairment.  The analysis performed as of September 30, 2015 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related.  The percentage of total investments with unrealized losses as of September 30, 2015 was 34.8% compared to 44.1% as of December 31, 2014.  The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of September 30, 2015 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	22,178	$	(13	)	$	22,165
State and political subdivisions		17,068		(179	)		16,889
U.S. government sponsored agency mortgage-backed securities		50,213		(207	)		50,006
Total debt securities		89,459		(399	)		89,060
CRA investment funds		0		(0	)		0
Total <12 months temporarily impaired AFS securities		89,459		(399	)		89,060
12 Months or More
U.S. Treasury and government agencies		54,773		(388	)		54,385
State and political subdivisions		7,297		(329	)		6,968
U.S. government sponsored agency mortgage-backed securities		51,291		(919	)		50,372
Total debt securities		113,361		(1,636	)		111,725
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		113,361		(1,636	)		111,725
Total
U.S. Treasury and government agencies		76,951		(401	)		76,550
State and political subdivisions		24,365		(508	)		23,857
U.S. government sponsored agency mortgage-backed securities		101,504		(1,126	)		100,378
Total debt securities		202,820		(2,035	)		200,785
CRA investment funds		0		(0	)		0
Total temporarily impaired AFS securities	$	202,820	$	(2,035	)	$	200,785

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(11	)	$	469
Total temporarily impaired HTM securities	$	480	$	(11	)	$	469

U.S. Treasury and Government Agencies

The unrealized losses in U.S. Treasury and government agencies were caused by interest rate increases.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than amortized cost.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be at maturity.

State and Political Subdivisions

The unrealized losses in securities of state and political subdivisions were caused by interest rate increases.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than amortized cost.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because CTBI does not intend to sell the investments before recovery of their amortized cost, which may be at maturity.

U.S. Government Sponsored Agency Mortgage-Backed Securities

The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate increases.  CTBI expects to recover the amortized cost basis over the term of the securities.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because (i) the decline in market value is attributable to changes in interest rates and not credit quality, (ii) CTBI does not intend to sell the investments, and (iii) it is not more likely than not we will be required to sell the investments before recovery of their amortized cost, which may be at maturity.

The analysis performed as of December 31, 2014 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related.  The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2014 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	31,185	$	(87	)	$	31,098
State and political subdivisions		8,800		(23	)		8,777
U.S. government sponsored agency mortgage-backed securities		50,115		(442	)		49,673
Total debt securities		90,100		(552	)		89,548
CRA investment funds		25,000		(111	)		24,889
Total <12 months temporarily impaired AFS securities		115,100		(663	)		114,437
12 Months or More
U.S. Treasury and government agencies		65,209		(2,053	)		63,156
State and political subdivisions		21,308		(443	)		20,865
U.S. government sponsored agency mortgage-backed securities		86,389		(2,408	)		83,981
Total debt securities		172,906		(4,904	)		168,002
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		172,906		(4,904	)		168,002
Total
U.S. Treasury and government agencies		96,394		(2,140	)		94,254
State and political subdivisions		30,108		(466	)		29,642
U.S. government sponsored agency mortgage-backed securities		136,504		(2,850	)		133,654
Total debt securities		263,006		(5,456	)		257,550
CRA investment funds		25,000		(111	)		24,889
Total temporarily impaired AFS securities	$	288,006	$	(5,567	)	$	282,439

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(19	)	$	461
Total temporarily impaired HTM securities	$	480	$	(19	)	$	461

Note 4 – Loans

Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial construction	$	106,855	$	121,942
Commercial secured by real estate		997,654		948,626
Equipment lease financing		9,146		10,344
Commercial other		346,318		352,048
Real estate construction		62,226		62,412
Real estate mortgage		706,187		712,465
Home equity		88,624		88,335
Consumer direct		125,847		122,136
Consumer indirect		377,603		315,516
Total loans	$	2,820,460	$	2,733,824

CTBI has segregated and evaluates its loan portfolio through nine portfolio segments. 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.

Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development.   Included in this category are improved property, land development, and tract development loans.  The terms of these loans are generally short-term with permanent financing upon completion.

Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/multi-family 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.

Equipment lease financing loans are fixed, variable, and tax exempt leases for commercial purposes.

Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, floorplans, 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 real estate, equipment, or other assets, although such loans may be uncollateralized but guaranteed.

Real estate construction loans are typically for owner-occupied properties.  The terms of these loans are generally short-term with permanent financing upon completion.

Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans.  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 revolving adjustable rate credit lines secured by real property.

Consumer direct loans are primarily fixed 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 $2.0 million at September 30, 2015 and $2.3 million at December 31, 2014, respectively.

Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy.  Nonaccrual loans segregated by class of loans were as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial:
Commercial construction	$	3,443	$	4,339
Commercial secured by real estate		4,134		6,725
Commercial other		1,412		2,423
Residential:
Real estate construction		311		602
Real estate mortgage		5,108		6,513
Home equity		200		369
Consumer:
Consumer direct		114		0
Total nonaccrual loans	$	14,722	$	20,971

The following tables present CTBI's loan portfolio aging analysis, segregated by class, as of September 30, 2015 and December 31, 2014:

	September 30, 2015
(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	$	251	$	7	$	5,133	$	5,391	$	101,464	$	106,855	$	1,690
Commercial secured by real estate		5,348		1,401		6,574		13,323		984,331		997,654		4,766
Equipment lease financing		0		0		0		0		9,146		9,146		0
Commercial other		870		417		4,152		5,439		340,879		346,318		2,904
Residential:
Real estate construction		609		129		717		1,455		60,771		62,226		420
Real estate mortgage		1,517		4,637		10,906		17,060		689,127		706,187		7,111
Home equity		516		122		749		1,387		87,237		88,624		602
Consumer:
Consumer direct		1,055		260		89		1,404		124,443		125,847		89
Consumer indirect		2,503		404		419		3,326		374,277		377,603		419
Total	$	12,669	$	7,377	$	28,739	$	48,785	$	2,771,675	$	2,820,460	$	18,001

	December 31, 2014
(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	$	40	$	31	$	6,171	$	6,242	$	115,700	$	121,942	$	1,863
Commercial secured by real estate		2,471		1,595		10,763		14,829		933,797		948,626		4,682
Equipment lease financing		0		0		0		0		10,344		10,344		0
Commercial other		826		55		4,205		5,086		346,962		352,048		2,367
Residential:
Real estate construction		92		144		985		1,221		61,191		62,412		383
Real estate mortgage		1,005		5,171		13,049		19,225		693,240		712,465		7,742
Home equity		779		197		703		1,679		86,656		88,335		422
Consumer:
Consumer direct		1,307		295		141		1,743		120,393		122,136		141
Consumer indirect		2,304		586		385		3,275		312,241		315,516		385
Total	$	8,824	$	8,074	$	36,402	$	53,300	$	2,680,524	$	2,733,824	$	17,985

*90+ and Accruing are also included in 90+ Days Past Due column.

The risk characteristics of CTBI's material portfolio segments are as follows:

Commercial 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 loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate.  Commercial real estate 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.  Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy.  Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria.

Equipment lease financing is underwritten by our commercial lenders using the same underwriting standards as would be applied to a secured commercial loan requesting 100% financing.  The pricing for equipment lease financing is comparable to that of borrowers with similar quality commercial credits with similar collateral.  Maximum terms of equipment leasing are determined by the type and expected life of the equipment to be leased.  Residual values are determined by appraisals or opinion letters from industry experts.  Leases must be in conformity with our consolidated annual tax plan.  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.

Commercial 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.

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 recourse agreements with the Bank.

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:

Ø 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.

Ø 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.

Ø 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.

Ø 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.

Ø 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 table presents the credit risk profile of CTBI's commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of September 30, 2015 and December 31, 2014:

(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Leases		Commercial Other		Total
September 30, 2015
Pass	$	85,878	$	885,941	$	9,146	$	296,254	$	1,277,219
Watch		6,615		69,393		0		41,547		117,555
OAEM		4,205		8,286		0		1,001		13,492
Substandard		8,999		33,162		0		6,451		48,612
Doubtful		1,158		872		0		1,065		3,095
Total	$	106,855	$	997,654	$	9,146	$	346,318	$	1,459,973
December 31, 2014
Pass	$	101,314	$	834,751	$	10,344	$	307,270	$	1,253,679
Watch		9,857		69,123		0		36,114		115,094
OAEM		934		10,973		0		881		12,788
Substandard		5,647		27,901		0		5,772		39,320
Doubtful		4,190		5,878		0		2,011		12,079
Total	$	121,942	$	948,626	$	10,344	$	352,048	$	1,432,960

The following table presents the credit risk profile of the CTBI's residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of September 30, 2015 and December 31, 2014:

(in thousands)	Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
September 30, 2015
Performing	$	61,495	$	693,968	$	87,822	$	125,644	$	377,184	$	1,346,113
Nonperforming (1)		731		12,219		802		203		419		14,374
Total	$	62,226	$	706,187	$	88,624	$	125,847	$	377,603	$	1,360,487
December 31, 2014
Performing	$	61,427	$	698,210	$	87,544	$	121,995	$	315,131	$	1,284,307
Nonperforming (1)		985		14,255		791		141		385		16,557
Total	$	62,412	$	712,465	$	88,335	$	122,136	$	315,516	$	1,300,864

(1)  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 $5.3 million at September 30, 2015 compared to $5.9 million at December 31, 2014.

A loan is considered impaired, in accordance with the impairment accounting guidance, when based on current information and events, it is probable CTBI will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.  Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties.  These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection.

The following tables present impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	4,669	$	4,669	$	0
Commercial secured by real estate		30,318		31,551		0
Commercial other		7,163		8,804		0
Real estate mortgage		1,189		1,189		0
Loans with a specific valuation allowance:
Commercial construction		3,411		3,412		719
Commercial secured by real estate		835		1,075		317
Commercial other		754		935		312
Totals:
Commercial construction		8,080		8,081		719
Commercial secured by real estate		31,153		32,626		317
Commercial other		7,917		9,739		312
Real estate mortgage		1,189		1,189		0
Total	$	48,339	$	51,635	$	1,348

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(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	$	4,864	$	41	$	5,142	$	160
Commercial secured by real estate		30,713		316		30,357		985
Commercial other		7,312		73		9,182		201
Real estate mortgage		1,183		13		1,090		37
Loans with a specific valuation allowance:
Commercial construction		3,445		0		3,712		0
Commercial secured by real estate		841		6		2,244		7
Commercial other		776		1		788		1
Totals:
Commercial construction		8,309		41		8,854		160
Commercial secured by real estate		31,554		322		32,601		992
Commercial other		8,088		74		9,970		202
Real estate mortgage		1,183		13		1,090		37
Total	$	49,134	$	450	$	52,515	$	1,391

	December 31, 2014
(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	$	5,653	$	5,654	$	0	$	5,415	$	205
Commercial secured by real estate		31,639		33,268		0		34,650		1,180
Commercial other		13,069		14,597		0		15,663		783
Real estate mortgage		1,277		1,277		0		1,507		53
Loans with a specific valuation allowance:
Commercial construction		3,974		3,974		734		4,216		0
Commercial secured by real estate		2,718		2,876		827		4,376		11
Commercial other		738		862		181		531		1
Totals:
Commercial construction		9,627		9,628		734		9,631		205
Commercial secured by real estate		34,357		36,144		827		39,026		1,191
Commercial other		13,807		15,459		181		16,194		784
Real estate mortgage		1,277		1,277		0		1,507		53
Total	$	59,068	$	62,508	$	1,742	$	66,358	$	2,233

	September 30, 2014
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	5,250	$	5,251	$	0
Commercial secured by real estate		33,010		34,086		0
Commercial other		15,972		18,247		0
Real estate mortgage		1,874		1,875		0
Loans with a specific valuation allowance:
Commercial construction		4,149		4,149		734
Commercial secured by real estate		6,070		6,219		1,273
Commercial other		586		710		211
Totals:
Commercial construction		9,399		9,400		734
Commercial secured by real estate		39,080		40,305		1,273
Commercial other		16,558		18,957		211
Real estate mortgage		1,874		1,875		0
Total	$	66,911	$	70,537	$	2,218

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(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	$	5,259	$	44	$	5,330	$	172
Commercial secured by real estate		33,290		261		34,464		858
Commercial other		17,577		248		16,421		619
Real estate mortgage		1,860		12		1,583		44
Loans with a specific valuation allowance:
Commercial construction		4,213		0		4,270		0
Commercial secured by real estate		6,076		5		4,912		9
Commercial other		587		0		460		0
Totals:
Commercial construction		9,472		44		9,600		172
Commercial secured by real estate		39,366		266		39,376		867
Commercial other		18,164		248		16,881		619
Real estate mortgage		1,860		12		1,583		44
Total	$	68,862	$	570	$	67,440	$	1,702

*Cash basis interest is substantially the same as interest income recognized.

Included in certain loan categories of impaired loans are certain loans and leases that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions.  Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances.  Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification.  All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower.  In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification.  This evaluation is performed under CTBI's internal underwriting policy.

When we modify loans and leases in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.

During 2015, 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 nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014:

	Three Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		5	$	346	$	0	$	165	$	511
Commercial other		1		1,139		0		0		1,139
Total troubled debt restructurings		6	$	1,485	$	0	$	165	$	1,650

	Nine Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		13	$	953	$	0	$	165	$	1,118
Commercial other		4		1,193		0		0		1,193
Residential:
Real estate mortgage		1		0		0		290		290
Total troubled debt restructurings		18	$	2,146	$	0	$	455	$	2,601

	Three Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		4		2,416		0		67		2,483
Commercial other		4		451		0		0		451
Total troubled debt restructurings		9	$	2,874	$	0	$	67	$	2,941

	Nine Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		7		2,647		0		67		2,714
Commercial other		7		512		0		0		512
Residential:
Real estate mortgage		2		0		0		849		849
Total troubled debt restructurings		17	$	3,166	$	0	$	916	$	4,082

	Year Ended December 31, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		11		5,707		0		68		5,775
Commercial other		8		1,268		0		0		1,268
Residential:
Real estate mortgage		2		0		0		848		848
Total troubled debt restructurings		22	$	6,982	$	0	$	916	$	7,898

No charge-offs have resulted from modifications for any of the presented periods.

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.  CTBI generally considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.  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.

(in thousands)	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		2	$	31		4	$	390
Residential:
Real estate mortgage		0		0		1		290
Total defaulted restructured loans		2	$	31		5	$	680

(in thousands)	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		1	$	2,892		1	$	2,892
Residential:
Real estate mortgage		1		594		2		1,175
Total defaulted restructured loans		2	$	3,486		3	$	4,067

Note 5 – Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan and lease losses ("ALLL") and the recorded investment in loans based on portfolio segment and impairment method for the three and nine months ended September 30, 2015 and 2014 and the twelve months ended December 31, 2014:

	Three Months Ended September 30, 2015
(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	$	2,622	$	13,022	$	113		$	4,414	$	570	$	6,965	$	867		$	1,541	$	5,076	$	35,190
Provision charged to expense		151		293		(9	)		153		61		564		(38	)		382		963		2,520
Losses charged off		0		364		0			431		20		647		0			436		1,001		2,899
Recoveries		3		2		0			149		0		52		41			113		369		729
Ending balance	$	2,776	$	12,953	$	104		$	4,285	$	611	$	6,934	$	870		$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719	$	317	$	0		$	312	$	0	$	0	$	0		$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057	$	12,636	$	104		$	3,973	$	611	$	6,934	$	870		$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080	$	31,153	$	0		$	7,917	$	0	$	1,189	$	0		$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775	$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624		$	125,847	$	377,603	$	2,772,121

	Nine Months Ended September 30, 2015
(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	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Provision charged to expense		(127	)		577		(15	)		1,054		184		2,023		128		804		2,112		6,740
Losses charged off		2			1,290		0			1,495		110		1,260		67		1,101		2,494		7,819
Recoveries		9			48		0			463		3		77		53		323		1,196		2,172
Ending balance	$	2,776		$	12,953	$	104		$	4,285	$	611	$	6,934	$	870	$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719		$	317	$	0		$	312	$	0	$	0	$	0	$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057		$	12,636	$	104		$	3,973	$	611	$	6,934	$	870	$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080		$	31,153	$	0		$	7,917	$	0	$	1,189	$	0	$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775		$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624	$	125,847	$	377,603	$	2,772,121

	Three Months Ended September 30, 2014
(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	$	2,916	$	14,402	$	102	$	4,677	$	450		$	5,142	$	643	$	1,597	$	3,688	$	33,617
Provision charged to expense		84		1,255		25		959		(6	)		8		42		216		717		3,300
Losses charged off		0		834		0		1,169		7			216		65		298		881		3,470
Recoveries		15		12		0		154		0			10		1		96		355		643
Ending balance	$	3,015	$	14,835	$	127	$	4,621	$	437		$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734	$	1,273	$	0	$	211	$	0		$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281	$	13,562	$	127	$	4,410	$	437		$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399	$	39,080	$	0	$	16,558	$	0		$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849	$	892,375	$	10,055	$	330,477	$	62,105		$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	Nine Months Ended September 30, 2014
(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	$	3,396		$	14,535	$	121	$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(406	)		1,489		6		1,059		161		412		110		1,031		1,518		5,380
Losses charged off		0			1,452		0		2,074		123		437		93		980		2,485		7,644
Recoveries		25			263		0		398		2		30		3		433		1,192		2,346
Ending balance	$	3,015		$	14,835	$	127	$	4,621	$	437	$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734		$	1,273	$	0	$	211	$	0	$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281		$	13,562	$	127	$	4,410	$	437	$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399		$	39,080	$	0	$	16,558	$	0	$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849		$	892,375	$	10,055	$	330,477	$	62,105	$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	December 31, 2014
(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	$	3,396		$	14,535	$	121		$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(513	)		941		(2	)		1,545		258		2,173		265		1,207		2,881		8,755
Losses charged off		15			2,163		0			3,141		123		1,058		115		1,326		3,495		11,436
Recoveries		28			305		0			621		2		40		5		566		1,553		3,120
Ending balance	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Ending balance:
Individually evaluated for impairment	$	734		$	827	$	0		$	181	$	0	$	0	$	0	$	0	$	0	$	1,742
Collectively evaluated for impairment	$	2,162		$	12,791	$	119		$	4,082	$	534	$	6,094	$	756	$	1,574	$	4,593	$	32,705
Loans
Ending balance:
Individually evaluated for impairment	$	9,627		$	34,357	$	0		$	13,807	$	0	$	1,277	$	0	$	0	$	0	$	59,068
Collectively evaluated for impairment	$	112,315		$	914,269	$	10,344		$	338,241	$	62,412	$	711,188	$	88,335	$	122,136	$	315,516	$	2,674,756

Note 6 – Other Real Estate Owned

Activity for other real estate owned was as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance of other real estate owned	$	36,698		$	33,062		$	36,776		$	39,188
New assets acquired		3,725			1,803			9,986			5,267
Capitalized costs		0			0			85			0
Fair value adjustments		(784	)		(241	)		(1,146	)		(1,402	)
Sale of assets		(4,985	)		(1,877	)		(11,047	)		(10,306	)
Ending balance of other real estate owned	$	34,654		$	32,747		$	34,654		$	32,747

Carrying costs and fair value adjustments associated with foreclosed properties for the three months ended September 30, 2015 and 2014 were $1.3 million and $0.7 million, respectively.  Carrying costs and fair value adjustments associated with foreclosed properties for the nine months ended September 30, 2015 and 2014 were $2.5 million and $2.9 million.

The major classifications of foreclosed properties are shown in the following table:

(in thousands)	September 30, 2015		December 31, 2014
1-4 family	$	7,866	$	10,337
Agricultural/farmland		116		116
Construction/land development/other		17,856		18,735
Multifamily		838		1,289
Non-farm/non-residential		7,978		6,299
Total foreclosed properties	$	34,654	$	36,776

Note 7 – Repurchase Agreements

We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet.  Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate.  Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets.

We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty's fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities.  The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities.  Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.  The carrying value of investment securities available for sale pledged as collateral under repurchase agreements totaled $290.7 million and $283.3 million at September 30, 2015 and December 31, 2014, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2015 and December 31, 2014 is presented in the following tables:

	September 30, 2015
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	19,986	$	22,400	$	0	$	32,258	$	74,644
State and political subdivisions		59,293		2,330		508		9,401		71,532
U.S. government sponsored agency mortgage-backed securities		30,302		24,270		209		55,196		109,977
Total	$	109,581	$	49,000	$	717	$	96,855	$	256,153

	December 31, 2014
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	6,790	$	1,000	$	6,834	$	14,076	$	28,700
State and political subdivisions		59,451		0		1,839		12,474		73,764
U.S. government sponsored agency mortgage-backed securities		39,315		0		15,871		77,536		132,722
Total	$	105,556	$	1,000	$	24,544	$	104,086	$	235,186

Note 8 – Fair Market Value of Financial Assets and Liabilities

Fair Value Measurements

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  ASC 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.  Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs.  In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability.  In support of this principle, ASC 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions.  The fair value hierarchy is as follows:

Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Recurring Measurements

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	202,050	$	19,997	$	182,053	$	0
State and political subdivisions		135,459		0		135,459		0
U.S. government sponsored agency mortgage-backed securities		214,176		0		214,176		0
CRA investment funds		25,028		25,028		0		0
Mortgage servicing rights		3,030		0		0		3,030

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	188,932	$	492	$	188,440	$	0
State and political subdivisions		137,458		0		137,458		0
U.S. government sponsored agency mortgage-backed securities		288,907		0		288,907		0
CRA investment funds		24,889		24,889		0		0
Mortgage servicing rights		2,968		0		0		2,968

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.  These valuation methodologies were applied to all of CTBI's financial assets carried at fair value.  CTBI had no liabilities measured and recorded at fair value as of September 30, 2015 and December 31, 2014.  There have been no significant changes in the valuation techniques during the quarter ended September 30, 2015.  For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Available-for-Sale Securities

Securities classified as available-for-sale are reported at fair value on a recurring basis.  U.S. Treasury and government agencies and CTBI's CRA investment funds are classified as Level 1 of the valuation hierarchy where quoted market prices are available in the active market on which the individual securities are traded.

If quoted market prices are not available, CTBI obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement.  CTBI reviews the pricing quarterly to verify the reasonableness of the pricing.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other factors.  U.S. Treasury and government agencies, state and political subdivisions, and U.S. government sponsored agency mortgage-backed securities are classified as Level 2 inputs.

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.  Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States.  As of September 30, 2015, CTBI does not own any securities classified as Level 3 inputs.

Mortgage Servicing Rights

Mortgage servicing rights do not trade in an active, open market with readily observable prices.  CTBI reports mortgage servicing rights at fair value on a recurring basis with subsequent remeasurement of MSRs based on change in fair value.

In determining fair value, CTBI utilizes the expertise of an independent third party.  Accordingly, fair value is determined by the independent third party by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand.  Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.  Fair value determinations for Level 3 measurements of mortgage servicing rights are tested for impairment on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States.  See the table below for inputs and valuation techniques used for Level 3 mortgage servicing rights.

Transfers between Levels

There were no transfers between Levels 1, 2, and 3 as of September 30, 2015.

Level 3 Reconciliation

Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2015 and 2014:

Mortgage Servicing Rights
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance	$	3,235		$	3,062		$	2,968		$	3,424
Total recognized gains (losses)
Included in net income		(228	)		80			(37	)		(212	)
Issues		146			89			443			234
Settlements		(123	)		(119	)		(344	)		(334	)
Ending balance	$	3,030		$	3,112		$	3,030		$	3,112
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	(228	)	$	80		$	(37	)	$	(212	)

Realized and unrealized gains and losses for items reflected in the tables above are included in net income in the consolidated statements of income as follows:

Noninterest Income
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Total gains (losses)	$	(351	)	$	(39	)	$	(381	)	$	(546	)

Nonrecurring Measurements

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	2,195	$	0	$	0	$	2,195
Other real estate/assets owned		4,015		0		0		4,015

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	4,665	$	0	$	0	$	4,665
Other real estate/assets owned		6,472		0		0		6,472

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy.  For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Impaired Loans (Collateral Dependent)

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell.  Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

CTBI considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value.  Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer.  Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer.  Appraisers are selected from the list of approved appraisers maintained by management.  The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral.  These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results.

Loans considered impaired under ASC 310-35, Impairment of a Loan, are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement.  Impaired loans are subject to nonrecurring fair value adjustments to reflect subsequent (i) partial write-downs that are based on the observable market price or current appraised value of the collateral or (ii) the full charge-off of the loan carrying value.  Quarter-to-date fair value adjustments on impaired loans disclosed above were $0.3 million for the quarters ended September 30, 2015 and December 31, 2014 compared to $1.3 million for the quarter ended September 30, 2014.  Year-to-date adjustments were $0.9 million for the nine months ended September 30, 2015, $0.4 million for the year ended December 31, 2014, and $1.5 million for the nine months ended September 30, 2014.

Other Real Estate Owned

In accordance with the provisions of ASC 360, Property, Plant, and Equipment, other real estate owned (OREO) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired.  Estimated fair value of OREO is based on appraisals or evaluations.  OREO is classified within Level 3 of the fair value hierarchy.  Long-lived assets are subject to nonrecurring fair value adjustments to reflect subsequent partial write-downs that are based on the observable market price or current appraised value of the collateral.  Quarter-to-date fair value adjustments on other real estate/assets owned were decreases of $0.8 million, $0.3 million, and $0.2 million for the quarters ended September 30, 2015, December 31, 2014, and September 30, 2014, respectively.  Year-to-date adjustments were decreases of $1.1 million for the nine months ended September 30, 2015, $1.7 million for the year ended December 31, 2014, and $1.4 million for the nine months ended September 30, 2014.

Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  Appraisers are selected from the list of approved appraisers maintained by management.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2015 and December 31, 2014.

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at September 30, 2015		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	3,030	Discount cash flows, computer pricing model	Constant prepayment rate		6.1% - 23.9% (11.3%)
				Probability of default		0.0% - 100.0% (2.7%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	2,195	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	4,015	Market comparable properties	Comparability adjustments		5.0% - 30.0% (10.5%)

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2014		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	2,968	Discount cash flows, computer pricing model	Constant prepayment rate		4.6% - 25.1% (11.3%)
				Probability of default		0.0% - 100.0% (3.6%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	4,665	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	6,472	Market comparable properties	Comparability adjustments		3.0% - 67.0% (18.0%)

Sensitivity of Significant Unobservable Inputs

The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement.

Mortgage Servicing Rights

Market value for mortgage servicing rights is derived based on unobservable inputs, such as prepayment speeds of the underlying loans generated using the Andrew Davidson Prepayment Model, FHLMC/FNMA guidelines, the weighted-average life of the loan, the discount rate, the weighted average coupon, and the weighted average default rate.  Significant increases (decreases) in either of those inputs in isolation would result in a significantly lower (higher) fair value measurement.  Generally, a change in the assumption used for prepayment speeds is accompanied by a directionally opposite change in the assumption for interest rates.

Fair Value of Financial Instruments

The following table presents estimated fair value of CTBI's financial instruments as of September 30, 2015 and indicates the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	163,192	$	163,192	$	0	$	0
Certificates of deposit in other banks		5,759		0		5,769		0
Securities available-for-sale		576,713		45,025		531,688		0
Securities held-to-maturity		1,661		0		1,651		0
Loans held for sale		1,983		2,029		0		0
Loans, net		2,784,920		0		0		2,793,430
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,887		0		4,887		0
Accrued interest receivable		13,581		0		13,581		0
Mortgage servicing rights		3,030		0		0		3,030
Financial liabilities:
Deposits	$	2,975,229	$	737,657	$	2,219,060	$	0
Repurchase agreements		256,153		0		0		256,120
Federal funds purchased		9,215		0		9,215		0
Advances from Federal Home Loan Bank		1,084		0		1,233		0
Long-term debt		61,341		0		0		49,073
Accrued interest payable		1,641		0		1,641		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

The following table presents estimated fair value of CTBI's financial instruments as of December 31, 2014 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)			Fair Value Measurements at December 31, 2014 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	105,517	$	105,517	$	0	$	0
Certificates of deposit in other banks		8,197		0		8,213		0
Securities available-for-sale		640,186		25,381		614,805		0
Securities held-to-maturity		1,662		0		1,644		0
Loans held for sale		2,264		2,321		0		0
Loans, net		2,699,377		0		0		2,691,906
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,869		0		4,869		0
Accrued interest receivable		13,548		0		13,548		0
Mortgage servicing rights		2,968		0		0		2,968
Financial liabilities:
Deposits	$	2,874,257	$	677,626	$	2,192,848	$	0
Repurchase agreements		235,186		0		0		235,193
Federal funds purchased		11,041		0		11,041		0
Advances from Federal Home Loan Bank		61,170		0		61,106		0
Long-term debt		61,341		0		0		35,615
Accrued interest payable		908		0		908		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and cash equivalents – The carrying amount approximates fair value.

Certificates of deposit in other banks – Fair values are based on quoted market prices or dealer quotes for similar instruments.

Securities held-to-maturity – Fair values are based on quoted market prices, if available.  If a quoted price is not available, fair value is estimated using quoted prices for similar securities.  The fair value estimate is provided to management from a third party using modeling assumptions specific to each type of security that are reviewed and approved by management.  Quarterly sampling of fair values provided by additional third parties supplement the fair value review process.

Loans held for sale – The fair value is predetermined at origination based on sale price.

Loans (net of the allowance for loan and lease losses) – The fair value of fixed rate loans and variable rate mortgage loans is estimated by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.  For other variable rate loans, the carrying amount approximates fair value.

Federal Home Loan Bank stock – The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank.

Federal Reserve Bank stock – The carrying value of Federal Reserve Bank stock approximates fair value based on the redemption provisions of the Federal Reserve Bank.

Accrued interest receivable – The carrying amount approximates fair value.

Deposits – The fair value of fixed maturity time deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.  For deposits including demand deposits, savings accounts, NOW accounts, and certain money market accounts, the carrying value approximates fair value.

Repurchase agreements – The fair value is estimated by discounting future cash flows using current rates.

Federal funds purchased – The carrying amount approximates fair value.

Advances from Federal Home Loan Bank – The fair value of these fixed-maturity advances is estimated by discounting future cash flows using rates currently offered for advances of similar remaining maturities.

Long-term debt – The fair value is estimated by discounting future cash flows using current rates.

Accrued interest payable – The carrying amount approximates fair value.

Commitments to originate loans, forward sale commitments, letters of credit, and lines of credit – The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.  The fair value of forward sale commitments is estimated based on current market prices for loans of similar terms and credit quality.  The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date.  The fair values of these commitments are not material.

Note 9 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in thousands except per share data)	2015		2014		2015		2014
Numerator:
Net income	$	11,222	$	10,924	$	34,562	$	33,259
Denominator:
Basic earnings per share:
Weighted average shares		17,440		17,326		17,420		17,317
Diluted earnings per share:
Effect of dilutive stock options and restricted stock grants		51		76		52		78
Adjusted weighted average shares		17,491		17,402		17,472		17,395
Earnings per share:
Basic earnings per share	$	0.64	$	0.63	$	1.98	$	1.92
Diluted earnings per share		0.64		0.63		1.98		1.91

There were no options to purchase common shares that were excluded from the diluted calculations above for the three and nine months ended September 30, 2015.  In addition to in-the-money stock options, unvested restricted stock grants were also used in the calculation of diluted earnings per share based on the treasury method.  Options to purchase 63,270 common shares at a weighted average price of $35.41 were excluded from the diluted calculations above for the three months ended September 30, 2014.  There were no options to purchase common shares that were excluded from the diluted calculations above for the nine months ended September 30, 2014.

Note 10 – Accumulated Other Comprehensive Income

Unrealized gains (losses) on AFS securities

Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and nine months ended September 30, 2015 and 2014 were:

	Amounts Reclassified from AOCI
(in thousands)	Three Months Ended September 30					Nine Months Ended September 30
	2015		2014			2015		2014
Affected line item in the statements of income
Securities gains (losses)	$	12	$	(34	)	$	142	$	(145	)
Tax expense (benefit)		4		(12	)		50		(51	)
Total reclassifications out of AOCI	$	8	$	(22	)	$	92	$	(94	)

Item 2.  Management's Discussion and Analysis of Financial Condition

and Results of Operations

Overview

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to help the reader understand Community Trust Bancorp, Inc., our operations, and our present business environment.  The MD&A is provided as a supplement to – and should be read in conjunction with – our condensed consolidated financial statements and the accompanying notes contained in this quarterly report.  The MD&A includes the following sections:

v Our Business

v Results of Operations and Financial Condition

v Dividends

v Liquidity and Market Risk

v Interest Rate Risk

v Capital Resources

v Impact of Inflation, Changing Prices, and Economic Conditions

v Stock Repurchase Program

v Critical Accounting Policies and Estimates

Our Business

Community Trust Bancorp, Inc. ("CTBI") is a bank holding company headquartered in Pikeville, Kentucky.  Currently, we own one commercial bank, Community Trust Bank, Inc. ("CTB") and one trust company, Community Trust and Investment Company, Inc.  Through our subsidiaries, we have eighty banking locations in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee, four trust offices across Kentucky, and one trust office in northeastern Tennessee.  At September 30, 2015, we had total consolidated assets of $3.8 billion and total consolidated deposits, including repurchase agreements, of $3.2 billion.  Total shareholders' equity at September 30, 2015 was $470.6 million.  Trust assets under management, which are excluded from CTBI's total consolidated assets, at September 30, 2015, were $1.9 billion.

Through its subsidiaries, CTBI engages in a wide range of commercial and personal banking and trust and wealth management activities, which include accepting time and demand deposits; making secured and unsecured loans to corporations, individuals and others; providing cash management services to corporate and individual customers; issuing letters of credit; renting safe deposit boxes; and providing funds transfer services.  The lending activities of CTB include making commercial, construction, mortgage, and personal loans.  Lease-financing, lines of credit, revolving lines of credit, term loans, and other specialized loans, including asset-based financing, are also available.  Our corporate subsidiaries act as trustees of personal trusts, as executors of estates, as trustees for employee benefit trusts, as registrars, transfer agents, and paying agents for bond and stock issues, as investment agent, as depositories for securities, and as providers of full service brokerage and insurance services.  For further information, see Item 1 of our annual report on Form 10-K for the year ended December 31, 2014.

Results of Operations and Financial Condition

For the quarter ended September 30, 2015, we reported earnings of $11.2 million, or $0.64 per basic share, compared to $10.9 million, or $0.63 per basic share, earned during the third quarter 2014 and $12.4 million, or $0.71 per basic share, earned during the second quarter 2015.  Earnings for the nine months ended September 30, 2015 were $34.6 million, or $1.98 per basic share compared to $33.3 million, or $1.92 per basic share, for the nine months ended September 30, 2014.

Quarterly Highlights

v Our loan portfolio increased $86.6 million from December 31, 2014 and $27.6 million during the quarter.

v Our investment portfolio decreased $63.5 million from December 31, 2014 and $4.5 million during the quarter.

v Deposits, including repurchase agreements, increased $121.9 million from December 31, 2014 and $76.5 million during the quarter.

v Nonperforming loans at $32.7 million decreased $6.2 million from December 31, 2014 and $0.7 million from June 30, 2015.  Nonperforming assets at $67.5 million decreased $8.3 million from December 31, 2014 and $2.5 million from June 30, 2015.

v Net loan charge-offs for the quarter ended September 30, 2015 were $2.2 million, or 0.31% of average loans annualized, compared to $2.8 million, or 0.42%, experienced for the third quarter 2014 and $1.7 million, or 0.25%, for the second quarter 2015.

v CTBI's investments in low income housing and other community related investments provided tax credits to offset current income tax expense for the third quarter 2015 in the amount of $1.2 million compared to $0.3 million in the third quarter 2014 and $0.9 million in the second quarter 2015.  Year-to-date credits used to offset current income tax expense totaled $2.4 million compared to $0.8 million for the first nine months of 2014.  The amortization of our investment in these partnerships increased as well.  Amortization for the third quarter 2015 totaled $1.0 million compared to $0.2 million for the third quarter 2014 and $0.7 million for the second quarter 2015.  Year-to-date amortization was $2.0 million compared to $0.6 million for the first nine months of 2014.

v In addition to the amortization expense mentioned above, noninterest expense for the quarter was impacted by an increase of $0.6 million in other real estate owned expense from same quarter last year and an increase of $0.5 million from prior quarter.  Personnel expense for the quarter also increased $0.5 million from same quarter last year and $0.4 million from prior quarter.  Year-to-date noninterest expense was impacted by a $1.1 million increase in personnel expense due to a $0.6 million increase in group medical and life insurance cost and a $0.5 million increase in the performance based bonus accrual year over year, in addition to the $1.4 million increase in amortization expense.  The year-to-date increases were partially offset by a $0.7 million decrease in data processing expense and a $0.4 million decrease in other real estate owned expense.

Income Statement Review

(dollars in thousands)							Change 2015 vs. 2014
Nine Months Ended September 30	2015			2014			Amount			Percent
Net interest income	$	99,052		$	98,571		$	481			0.5	%
Provision for loan losses		6,740			5,380			1,360			25.3
Noninterest income		34,999			33,043			1,956			5.9
Noninterest expense		79,665			77,980			1,685			2.2
Income taxes		13,084			14,995			(1,911	)		(12.7	)
Net income	$	34,562		$	33,259		$	1,303			3.9	%
Average earning assets	$	3,506,303		$	3,409,905		$	96,398			2.8	%
Yield on average earnings assets		4.17	%		4.27	%		(0.10	)%		(2.4	)%
Cost of interest bearing funds		0.45	%		0.47	%		(0.02	)%		(3.1	)%
Net interest margin		3.84	%		3.92	%		(0.08	)%		(2.2	)%

Net Interest Income

Net interest income for the quarter decreased $0.02 million, or 0.1%, from prior year third quarter and $0.2 million, or 0.7%, from prior quarter, while our net interest margin decreased 11 basis points and 8 basis points during the respective time periods.  Average earning assets increased $97.9 million, or 2.9%, from third quarter 2014 and $10.3 million, or 0.3%, from prior quarter, while our yield on average earning assets decreased 12 basis points and 8 basis points, respectively, during these time periods.  The cost of interest bearing funds remained flat to prior year third quarter but increased 1 basis point from prior quarter.  Our ratio of average loans to deposits, including repurchase agreements, for the quarter ended September 30, 2015 was 87.5% compared to 84.9% for the quarter ended September 30, 2014 and 87.1% for the quarter ended June 30, 2015.  Year-to-date net interest income increased $0.5 million, or 0.5% from prior year.

Provision for Loan Losses

The provision for loan losses that was added to the allowance for the third quarter 2015 was $2.5 million compared to $3.3 million in the third quarter 2014 and $2.3 million for the quarter ended June 30, 2015.  Year-to-date allocations to the reserve were $6.7 million at September 30, 2015 compared to $5.4 million at September 30, 2014.  This provision represented a charge against current earnings in order to maintain the allowance at an appropriate level determined using the accounting estimates described in the Critical Accounting Policies and Estimates section.  Our provision increased for the quarter due to higher loan growth.  Our reserve coverage (allowance for loan and lease loss reserve to nonperforming loans) at September 30, 2015 was 108.6% compared to 70.2% at September 30, 2014 and 105.4% at June 30, 2015.  Our loan loss reserve as a percentage of total loans outstanding decreased from the 1.27% at September 30, 2014 but remained at 1.26% from June 30, 2015 to September 30, 2015.

Noninterest Income

Noninterest income for the quarter ended September 30, 2015 increased $0.02 million, or 0.2%, from prior year same quarter but decreased $0.2 million, or 1.6%, from prior quarter.  The increase year over year was primarily due to an increase in other noninterest income items, including a $0.3 million increase in insurance commissions and brokerage revenue and a $0.2 million gain on the sale of our Hazard Main Street Branch, partially offset by a $0.5 million decrease in loan related fees.  Quarter over quarter, we experienced decreases in gains on sales of loans, trust revenue, and loan related fees, partially offset by increases in deposit service charges and other noninterest income.  The quarterly decrease in loan related fees resulted primarily from a $0.3 million fluctuation in the fair value adjustments of our mortgage servicing rights from prior year same quarter and a $0.5 million fluctuation from prior quarter.

Year-to-date noninterest income increased $2.0 million, or 5.9% from prior year.  Gains on sales of loans increased $0.8 million, deposit service charges increased $0.2 million, trust revenue increased $0.2 million, loan related fees increased $0.2 million, and securities gains (losses) improved $0.3 million.  The increase in loan related fees resulted primarily from a $0.2 million fluctuation in the fair value adjustments of our mortgage servicing rights.

Noninterest Expense

Noninterest expense for the quarter ended September 30, 2015 increased $1.7 million, or 6.5%, from prior year third quarter and $1.2 million, or 4.6%, from prior quarter.  The increase in noninterest expense was primarily due to increases in amortization expense related to tax credits, personnel expense, and other real estate owned expense.

Year-to-date noninterest expense increased $1.7 million, or 2.2%, from prior year.  The increase primarily resulted from a $1.4 million increase in amortization expense related to tax credits and a $1.1 million increase in personnel expense due to a $0.6 million increase in group medical and life insurance cost and a $0.5 million increase in the performance based bonus accrual year over year.  These increases were partially offset by a $0.7 million decrease in data processing expense and a $0.4 million decrease in other real estate owned expense.

Balance Sheet Review

CTBI's total assets at $3.8 billion increased $84.4 million, or an annualized 9.0%, from December 31, 2014 and $38.1 million, or an annualized 4.0%, during the quarter.  Loans outstanding at September 30, 2015 were $2.8 billion, increasing $86.6 million, or an annualized 12.6%, from December 31, 2014 and $27.6 million, or an annualized 3.9%, during the quarter.  We experienced growth during the quarter of $23.4 million in the indirect loan portfolio, $4.2 million in the consumer direct loan portfolio, and $3.4 million in the residential loan portfolio and a decrease of $3.4 million in the commercial loan portfolio.  CTBI's investment portfolio decreased $63.5 million, or an annualized 39.2%, from December 31, 2014 and $4.5 million, or an annualized 3.1%, during the quarter.  The decline in the investment portfolio was utilized to provide additional liquidity through an increase in our deposits with the Federal Reserve and to support loan growth.  Deposits, including repurchase agreements, at $3.2 billion increased $121.9 million, or an annualized 15.6%, from December 31, 2014 and $76.5 million, or an annualized 9.6%, during the quarter.  Interest bearing deposits in other banks increased $59.9 million from December 31, 2014 and $26.9 million during the quarter.

Shareholders' equity at September 30, 2015 was $470.6 million compared to $447.9 million at December 31, 2014 and $461.6 million at June 30, 2015.  Our tangible common equity/tangible assets ratio increased to 10.82%.

Loans

(in thousands)	September 30, 2015
Loan Category	Balance		Variance from Prior Year-End			Net Charge-Offs			Nonperforming		ALLL
Commercial:
Construction	$	106,855		(12.4	)%	$	(7	)	$	5,133	$	2,776
Secured by real estate		997,654		5.2			1,242			8,900		12,953
Equipment lease financing		9,146		(11.6	)		0			0		104
Commercial other		346,318		(1.6	)		1,032			4,316		4,285
Total commercial		1,459,973		1.9			2,267			18,349		20,118
Residential:
Real estate construction		62,226		(0.3	)		107			731		611
Real estate mortgage		706,187		(0.9	)		1,183			12,219		6,934
Home equity		88,624		0.3			14			802		870
Total residential		857,037		(0.7	)		1,304			13,752		8,415
Consumer:
Consumer direct		125,847		3.0			778			203		1,600
Consumer indirect		377,603		19.7			1,298			419		5,407
Total consumer		503,450		15.0			2,076			622		7,007
Total loans	$	2,820,460		3.2	%	$	5,647		$	32,723	$	35,540

Asset Quality

CTBI's total nonperforming loans were $32.7 million at September 30, 2015, a 16.0% decrease from the $39.0 million at December 31, 2014 and a 2.0% decrease from the $33.4 million at June 30, 2015.  Nonaccrual loans decreased $6.2 million during the nine months ended September 30, 2015 while loans 90+ days past due remained relatively flat.  Loans 30-89 days past due at $18.8 million was an increase of $3.7 million from December 31, 2014.  Our loan portfolio management processes focus on the immediate identification, management, and resolution of problem loans to maximize recovery and minimize loss.   Our loan risk management processes include weekly delinquent loan review meetings at the market levels and monthly delinquent loan review meetings involving senior corporate management to review all nonaccrual loans and loans 30 days or more past due.  Any activity regarding a criticized/classified loan (i.e. problem loan) must be approved by CTB's Watch List Asset Committee (i.e. Problem Loan Committee).  CTB's Watch List Asset Committee also meets on a quarterly basis and reviews every criticized/classified loan of $100,000 or greater.  We also have a Loan Review Department that reviews every market within CTB annually and performs extensive testing of the loan portfolio to assure the accuracy of loan grades and classifications for delinquency, troubled debt restructuring, impaired status, impairment, nonaccrual status, and adequate loan loss reserves.

Impaired loans, loans not expected to meet contractual principal and interest payments other than insignificant delays, at September 30, 2015 totaled $48.3 million, a $10.8 million decline from the $59.1 million at December 31, 2014 and a $1.9 million decline from the $50.2 million at June 30, 2015.  Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired.  At September 30, 2015, CTBI had $23.5 million in commercial loans secured by real estate, $6.0 million in commercial real estate construction loans, $4.9 million in commercial other loans, and $1.2 million in real estate mortgage loans that were modified in troubled debt restructurings and impaired.  Management evaluates all impaired loans for the amount of impairment, if any, and records a direct charge-off or provides specific reserves when necessary.

For further information regarding nonperforming and impaired loans, see note 4 to the condensed consolidated financial statements.

CTBI generally does not offer high risk loans such as option ARM products, high loan to value ratio mortgages, interest-only loans, loans with initial teaser rates, or loans with negative amortizations, and therefore, CTBI would have no significant exposure to these products.

Net loan charge-offs for the quarter ended September 30, 2015 were $2.2 million, or 0.31% of average loans annualized, compared to $2.8 million, or 0.42%, experienced for the third quarter 2014 and $1.7 million, or 0.25%, for the second quarter 2015.  Of the net charge-offs for the quarter, $0.6 million were in commercial loans, $0.6 million were in indirect auto loans, $0.6 million were in residential real estate mortgage loans, and $0.3 million were in consumer direct loans.  Net loan charge-offs for the nine months ended September 30, 2015 were $5.6 million, or 0.27% of average loans, compared to $5.3 million, or 0.27% of average loans, experienced for the nine months ended September 30, 2014.

Our level of foreclosed properties at $34.7 million at September 30, 2015 was a decrease from $36.8 million at December 31, 2014 and $36.4 million at June 30, 2015.  Sales of foreclosed properties for the nine months ended September 30, 2015 totaled $11.0 million while new foreclosed properties totaled $10.0 million.  At September 30, 2015, the book value of properties under contracts to sell was $4.0 million; however, the closings had not occurred at quarter-end.

When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs.  Additionally, periodic updated appraisals are obtained on unsold foreclosed properties.  When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs.   Charges to earnings in the third quarter 2015 to reflect the decrease in current market values of foreclosed properties totaled $0.8 million.  There were twenty-six properties appraised during the third quarter 2015.  Of these, twelve properties were written down by a total of $0.8 million.  Charges during the quarters ended September 30, 2014 and June 30, 2015 were $0.2 million and $0.3 million, respectively.  OREO losses through the nine months ended September 30, 2015 totaled $1.1 million compared to $1.4 million for September 30, 2014.  Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  Approximately fifty-two percent of our OREO properties have been reappraised within the past 12 months.  Management anticipates that our foreclosed properties will remain elevated as we work through current market conditions.

The appraisal aging analysis of foreclosed properties, as well as the holding period, at September 30, 2015 is shown below:

(in thousands)
Appraisal Aging Analysis			Holding Period Analysis
Days Since Last Appraisal	Current Book Value		Holding Period	Current Book Value
Up to 3 months	$	7,906	Less than one year	$	8,634
3 to 6 months		5,397	1 to 2 years		3,326
6 to 9 months		1,499	2 to 3 years		1,754
9 to 12 months		3,073	3 to 4 years		2,951
12 to 24 months		15,755	4 to 5 years		10,808
Over 24 months		1,024	Over 5 years*		7,181
Total	$	34,654	Total	$	34,654

*Regulatory approval is required and has been obtained to hold these properties beyond the initial period of 5 years.  Additional approval may be required to continue to hold these properties should they not be liquidated during the extension period.

Dividends

The following schedule shows the quarterly cash dividends paid for the past six quarters:

Pay Date	Record Date	Amount Per Share
October 1, 2015	September 15, 2015	$	0.310
July 1, 2015	June 15, 2015	$	0.300
April 1, 2015	March 15, 2015	$	0.300
January 1, 2015	December 15, 2014	$	0.300
October 1, 2014	September 15, 2014	$	0.300
July 1, 2014	June 15, 2014	$	0.290

On October 27, 2015, the Board of Directors of CTBI declared a quarterly cash dividend of $0.31 per share to be paid on January 1, 2016 to shareholders of record on December 15, 2015.

Liquidity and Market Risk

The objective of CTBI's Asset/Liability management function is to maintain consistent growth in net interest income within our policy limits. This objective is accomplished through management of our consolidated balance sheet composition, liquidity, and interest rate risk exposures arising from changing economic conditions, interest rates, and customer preferences. The goal of liquidity management is to provide adequate funds to meet changes in loan and lease demand or deposit withdrawals. This is accomplished by maintaining liquid assets in the form of cash and cash equivalents and investment securities, sufficient unused borrowing capacity, and growth in core deposits. As of September 30, 2015, we had approximately $163.2 million in cash and cash equivalents and approximately $576.7 million in securities valued at estimated fair value designated as available-for-sale and available to meet liquidity needs on a continuing basis compared to $105.5 million and $640.2 million at December 31, 2014.  Additional asset-driven liquidity is provided by the remainder of the securities portfolio and the repayment of loans.  In addition to core deposit funding, we also have a variety of other short-term and long-term funding sources available.  We also rely on Federal Home Loan Bank advances for both liquidity and management of our asset/liability position.  Federal Home Loan Bank advances were $1.1 million at September 30, 2015 compared to $61.2 million at December 31, 2014.  As of September 30, 2015, we had a $323 million available borrowing position with the Federal Home Loan Bank compared to $312.3 million at December 31, 2014.  We generally rely upon net inflows of cash from financing activities, supplemented by net inflows of cash from operating activities, to provide cash for our investing activities.  As is typical of many financial institutions, significant financing activities include deposit gathering, use of short-term borrowing facilities such as repurchase agreements and federal funds purchased, and issuance of long-term debt.  At September 30, 2015 and December 31, 2014, we had $44 million in lines of credit with various correspondent banks available to meet any future cash needs.  Our primary investing activities include purchases of securities and loan originations.  We do not rely on any one source of liquidity and manage availability in response to changing consolidated balance sheet needs.  Included in our cash and cash equivalents at September 30, 2015 were federal funds sold of $2.5 million compared to $4.9 million at December 31, 2014, and deposits with the Federal Reserve were $102.7 million compared to $40.9 million at December 31, 2014.  Additionally, we project cash flows from our investment portfolio to generate additional liquidity over the next 90 days.

The investment portfolio consists of investment grade short-term issues suitable for bank investments.  The majority of the investment portfolio is in U.S. government and government sponsored agency issuances.  At September 30, 2015, available-for-sale ("AFS") securities comprised approximately 99.7%of the total investment portfolio, and the AFS portfoliowas approximately 123%of equity capital.  Ninety-four percentof the pledge eligible portfolio was pledged.

Interest Rate Risk

We consider interest rate risk one of our most significant market risks. Interest rate risk is the exposure to adverse changes in net interest income due to changes in interest rates.  Consistency of our net interest revenue is largely dependent upon the effective management of interest rate risk.  We employ a variety of measurement techniques to identify and manage our interest rate risk including the use of an earnings simulation model to analyze net interest income sensitivity to changing interest rates.  The model is based on actual cash flows and repricing characteristics for on and off-balance sheet instruments and incorporates market-based assumptions regarding the effect of changing interest rates on the prepayment rates of certain assets and liabilities.  Assumptions based on the historical behavior of deposit rates and balances in relation to changes in interest rates are also incorporated into the model.  These assumptions are inherently uncertain, and as a result, the model cannot precisely measure net interest income or precisely predict the impact of fluctuations in interest rates on net interest income.  Actual results will differ from simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies.

CTBI's Asset/Liability Management Committee (ALCO), which includes executive and senior management representatives and reports to the Board of Directors, monitors and manages interest rate risk within Board-approved policy limits.  Our current exposure to interest rate risks is determined by measuring the anticipated change in net interest income spread evenly over the twelve-month period.

Capital Resources

Shareholders' equity was $470.6 million at September 30, 2015 and $447.9 million at December 31, 2014.  CTBI's annualized dividend yield to shareholders as of September 30, 2015 was 3.49%.  Our primary source of capital growth is the retention of earnings.  Cash dividends were $0.910 per share and $0.881 per share for the nine months ended September 30, 2015 and 2014, respectively.  We retained 54.0% of our earnings for the first nine months of 2015 compared to 54.1% for the first nine months of 2014.

On July 2, 2013, the Federal Reserve approved final rules that substantially amend the regulatory risk-based capital rules applicable to CTBI and CTB.  The FDIC subsequently approved these rules.  The final rules implement the "Basel III" regulatory capital reforms and changes required by the Dodd-Frank Act.

The rules include new risk-based capital and leverage ratios, which are being phased in from 2015 to 2019, and refine the definition of what constitutes "capital" for purposes of calculating those ratios.  The new minimum capital level requirements applicable to CTBI and CTB under the final rules would be: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital ratio of 6% (increased from 4%); (iii) a total capital ratio of 8% (unchanged from current rules); and (iv) a Tier 1 leverage ratio of 4% for all institutions.  The final rules also establish a "capital conservation buffer" above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. The capital conservation buffer will be phased-in over four years beginning on January 1, 2016.

The final rules also implement revisions and clarifications consistent with Basel III regarding the various components of Tier 1 capital, including common equity, unrealized gains and losses, as well as certain instruments that will no longer qualify as Tier 1 capital, some of which will be phased out over time.  However, the final rules provide that small depository institution holding companies with less than $15 billion in total assets as of December 31, 2009 (which includes CTBI) will be able to permanently include non-qualifying instruments that were issued and included in Tier 1 or Tier 2 capital prior to May 19, 2010 in additional Tier 1 or Tier 2 capital until they redeem such instruments or until the instruments mature.

The final rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions, including the Bank, if their capital levels begin to show signs of weakness.  These revisions took effect January 1, 2015.  Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are required to meet the following increased capital level requirements in order to qualify as "well capitalized:" (i) a new common equity Tier 1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8% (increased from 6%); (iii) a total capital ratio of 10% (unchanged from current rules); and (iv) a Tier 1 leverage ratio of 5% (unchanged from current rules).

The final rules set forth certain changes for the calculation of risk-weighted assets, which we were required to utilize beginning January 1, 2015.  The standardized approach final rule utilizes an increased number of credit risk exposure categories and risk weights, and also addresses: (i) an alternative standard of creditworthiness consistent with Section 939A of the Dodd-Frank Act; (ii) revisions to recognition of credit risk mitigation; (iii) rules for risk weighting of equity exposures and past due loans; (iv) revised capital treatment for derivatives and repo-style transactions; and (v) disclosure requirements for top-tier banking organizations with $50 billion or more in total assets that are not subject to the "advance approach rules" that apply to banks with greater than $250 billion in consolidated assets.  For more information regarding Basel III, please refer to the Supervision and Regulation section of Item 1. Business in our annual report on Form 10-K for the year ended December 31, 2014.

As of September 30, 2015, following implementation of the new rules, CTBI had a Common Equity Tier 1 capital ratio of 14.49%, a Tier 1 capital ratio of 16.63%, a total capital ratio of 17.88%, and a Tier 1 leverage ratio of 12.40%, all above the required levels to be considered "well-capitalized."

As of September 30, 2015, we are not aware of any other current recommendations by banking regulatory authorities which, if they were to be implemented, would have, or are reasonably likely to have, a material adverse impact on our liquidity, capital resources, or operations, except as provided for in Basel III and the Dodd-Frank Act, which is discussed in the Supervision and Regulation section of Item 1. Business in our annual report on Form 10-K for the year ended December 31, 2014.

Impact of Inflation, Changing Prices, and Economic Conditions

The majority of our assets and liabilities are monetary in nature. Therefore, CTBI differs greatly from most commercial and industrial companies that have significant investment in nonmonetary assets, such as fixed assets and inventories.  However, inflation does have an important impact on the growth of assets in the banking industry and on the resulting need to increase equity capital at higher than normal rates in order to maintain an appropriate equity to assets ratio.  Inflation also affects other expenses, which tend to rise during periods of general inflation.

We believe one of the most significant impacts on financial and operating results is our ability to react to changes in interest rates.  We seek to maintain an essentially balanced position between interest rate sensitive assets and liabilities in order to protect against the effects of wide interest rate fluctuations.

Since 2008 the U.S. economy has faced a severe economic crisis including a major recession from which it is slowly recovering.  Commerce and business growth across a wide range of industries and regions in the U.S. remains reduced and local governments and many businesses continue to experience financial difficulty.  While reflecting some improvement in many parts of the country and in parts of our own service area, unemployment levels remain elevated.  There can be no assurance that these conditions will continue to improve and these conditions could worsen.  Regionally, recent economic conditions in the coal industry could result in increased unemployment in the markets we serve where coal is a major contributor to the economy.  In addition, the implementation of the Patient Protection and Affordable Care Act, the Federal Open Market Committee's plan for economic easing, and the level of U.S. debt may have a destabilizing effect on financial markets.

Our financial performance generally, and in particular the ability of borrowers to pay interest on and repay principal of outstanding loans and the value of collateral securing those loans, as well as demand for loans and other products and services we offer, is highly dependent upon the business environment in the markets where we operate, in the states of Kentucky, West Virginia, and Tennessee and in the United States as a whole.  A favorable business environment is generally characterized by, among other factors, economic growth, efficient capital markets, low inflation, low unemployment, high business and investor confidence, and strong business earnings.  Unfavorable or uncertain economic and market conditions can be caused by declines in economic growth, business activity, or investor or business confidence; limitations on the availability or increases in the cost of credit and capital; increases in inflation or interest rates; high unemployment; natural disasters; or a combination of these or other factors.

Overall, during recent years, the business environment has been adverse for many households and businesses in the United States and worldwide.  While economic conditions in the United States and worldwide have improved since the recession, there can be no assurance that this improvement will continue.  Economic pressure on consumers and uncertainty regarding continuing economic improvement may result in changes in consumer and business spending, borrowing, and savings habits.  Such conditions could adversely affect the credit quality of our loans and our business, financial condition, and results of operations.

Stock Repurchase Program

CTBI has not acquired any shares of common stock through the stock repurchase program since February 2008.  There are 67,371 shares remaining under CTBI's current repurchase authorization.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.  Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates.  Such differences could be material to the consolidated financial statements.

We believe the application of accounting policies and the estimates required therein are reasonable.  These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change.  Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

We have identified the following critical accounting policies:

Investments –Management determines the classification of securities at purchase.  We classify securities into held-to-maturity, trading, or available-for-sale categories.  Held-to-maturity securities are those which we have the positive intent and ability to hold to maturity and are reported at amortized cost.  In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investment Securities, investments in debt securities that are not classified as held-to-maturity and equity securities that have readily determinable fair values shall be classified in one of the following categories and measured at fair value in the statement of financial position:

a. Trading securities. Securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) shall be classified as trading securities. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.

b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities.

We do not have any securities that are classified as trading securities.  Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders' equity, net of tax.  If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related.

Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost.  Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists.  Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment.  The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity.  Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment.  If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the CTBI's results of operations and financial condition.

Loans –Loans with the ability and the intent to be held until maturity and/or payoff are reported at the carrying value of unpaid principal reduced by unearned interest, an allowance for loan and lease losses, and unamortized deferred fees or costs.  Income is recorded on the level yield basis.  Interest accrual is discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower's financial condition is such that collection of interest is doubtful.  Any loan greater than 90 days past due must be well secured and in the process of collection to continue accruing interest.  Cash payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured.  Loans are not reclassified as accruing until principal and interest payments remain current for a period of time, generally six months, and future payments appear reasonably certain.  Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired.  A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.

Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment.

Allowance for Loan and Lease Losses –We maintain an allowance for loan and lease losses ("ALLL") at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio.  Since arriving at an appropriate ALLL involves a high degree of management judgment, we use an ongoing quarterly analysis to develop a range of estimated losses.  In accordance with accounting principles generally accepted in the United States, we use our best estimate within the range of potential credit loss to determine the appropriate ALLL.  Credit losses are charged and recoveries are credited to the ALLL.

We utilize an internal risk grading system for commercial credits.  Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review.  The borrower's cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated.  The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan.  We evaluate the collectability of both principal and interest when assessing the need for loss provision.  Historical loss rates are analyzed and applied to other commercial loans not subject to specific allocations.  The ALLL allocation for this pool of commercial loans is established based on the historical average, maximum, minimum, and median loss ratios.

A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded.  The associated ALLL for these loans is measured under ASC 450, Contingencies.

When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made.  If the balance of the loan exceeds the fair value of the collateral, the loan is placed on non-accrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed.  When the foreclosed collateral has been legally assigned to CTBI, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell of the collateral then transferred to other real estate owned or other repossessed assets.  When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due.

All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent.  If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent.  For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual.  Foreclosure proceedings are normally initiated after 120 days.  When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off.

Historical loss rates for loans are adjusted for significant factors that, in management's judgment, reflect the impact of any current conditions on loss recognition.  We use twelve rolling quarters for our historical loss rate analysis.  Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year's charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions.  Based upon management's judgment, "best case," "worst case," and "most likely" scenarios are determined.  The total of each of these weighted factors is then applied against the applicable portion of the portfolio and the ALLL is adjusted accordingly to approximate the most likely scenario.  Management continually reevaluates the other subjective factors included in its ALLL analysis.

Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs.  Additionally, periodic updated appraisals are obtained on unsold foreclosed properties.  When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs.  Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  All revenues and expenses related to the carrying of other real estate owned are recognized by a charge to income.

Income Taxes – Income tax expense is based on the taxes due on the consolidated tax return plus deferred taxes based on the expected future tax benefits and consequences of temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the consolidated financial statements.  During the nine months ended September 30, 2015 and 2014, CTBI did not recognize a significant amount of interest expense or penalties in connection with income taxes.

CTBI is currently under IRS examination of its 2013 corporate income tax return.  Management does not expect that the results of the examination will have a material effect on our financial condition.  While management believes our tax positions are appropriate, the IRS could challenge our positions as a part of this examination.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Interest rate risk management focuses on maintaining consistent growth in net interest income within Board-approved policy limits.  CTBI uses an earnings simulation model to analyze net interest income sensitivity to movements in interest rates.  Given a 200 basis point increase to the yield curve used in the simulation model, it is estimated net interest income for CTBI would increase by 2.62 percent over one year and increase by 3.52 percent over two years.  A 25 basis point decrease in the yield curve would decrease net interest income by an estimated 0.22 percent over one year and decrease by 0.05 percent over two years.  For further discussion of CTBI's market risk, see the Management's Discussion and Analysis of Financial Condition and Results of Operations—Liquidity and Market Risk included in the annual report on Form 10-K for the year ended December 31, 2014.

Item 4.  Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

CTBI's management is responsible for establishing and maintaining effective disclosure controls and procedures, as defined under Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934.  As of the end of the period covered by this report, an evaluation was carried out by CTBI's management, with the participation of our Chief Executive Officer and the Executive Vice President, Chief Financial Officer, and Treasurer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, management concluded that disclosure controls and procedures as of September 30, 2015 were effective in ensuring material information required to be disclosed in this quarterly report on Form 10-Q was recorded, processed, summarized, and reported on a timely basis.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in CTBI's internal control over financial reporting that occurred during the quarter ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, CTBI's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.	Legal Proceedings	None
Item 1A.	Risk Factors	None
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	None
Item 3.	Defaults Upon Senior Securities	None
Item 4.	Mine Safety Disclosure	Not applicable
Item 5.	Other Information:
	CTBI's Principal Executive Officer and Principal Financial Officer have furnished to the SEC the certifications with respect to this Form 10-Q that are required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002
Item 6.	a. Exhibits:
	(1)   Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Exhibit 31.1 Exhibit 31.2
	(2)   Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Exhibit 32.1 Exhibit 32.2
	(3)  XBRL Instance Document	Exhibit 101.INS
	(4)  XBRL Taxonomy Extension Schema	Exhibit 101.SCH
	(5)  XBRL Taxonomy Extension Calculation Linkbase	Exhibit 101.CAL
	(6)  XBRL Taxonomy Extension Definition Linkbase	Exhibit 101.DEF
	(7)  XBRL Taxonomy Extension Label Linkbase	Exhibit 101.LAB
	(8)  XBRL Taxonomy Extension Presentation Linkbase	Exhibit 101.PRE

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, CTBI has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	COMMUNITY TRUST BANCORP, INC.
Date:  November 6, 2015	By:	/s/ Jean R. Hale
		Jean R. Hale
		Chairman, President, and Chief Executive Officer

/s/ Kevin J. Stumbo

Kevin J. Stumbo

Executive Vice President, Chief Financial Officer, and

 Treasurer

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

I, Jean R. Hale, Chairman, President, and Chief Executive Officer of Community Trust Bancorp, Inc. ("CTBI"), certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Community Trust Bancorp, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of CTBI as of, and for, the periods presented in this report;

(4) CTBI's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of CTBI's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in CTBI's internal control over financial reporting that occurred during CTBI's most recent fiscal quarter (CTBI's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, CTBI's internal control over financial reporting; and

(5) CTBI's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI's auditors and the audit committee of CTBI's board of directors (or persons performing the equivalent functions):

(a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI's ability to record, process, summarize and report financial information; and

(b)   any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI's internal control over financial reporting.

/s/ Jean R. Hale

Jean R. Hale

Chairman, President, and Chief Executive Officer

November 6, 2015

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

I, Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer of Community Trust Bancorp, Inc. ("CTBI"), certify that:

(1) I have reviewed this quarterly report on Form 10-Q of Community Trust Bancorp, Inc.;

(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of CTBI as of, and for, the periods presented in this report;

(4) CTBI's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) evaluated the effectiveness of CTBI's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

(d) disclosed in this report any change in CTBI's internal control over financial reporting that occurred during CTBI's most recent fiscal quarter (CTBI's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, CTBI's internal control over financial reporting; and

(5) CTBI's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI's auditors and the audit committee of CTBI's board of directors (or persons performing the equivalent functions):

(a)   all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI's ability to record, process, summarize and report financial information; and

(b)   any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI's internal control over financial reporting.

/s/ Kevin J. Stumbo

Kevin J. Stumbo

Executive Vice President, Chief Financial Officer, and Treasurer

November 6, 2015

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Community Trust Bancorp, Inc. ("CTBI") on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jean R. Hale, Chairman, President, and Chief Executive Officer of CTBI, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of CTBI.

/s/ Jean R. Hale

Jean R. Hale

Chairman, President, and Chief Executive Officer

November 6, 2015

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Community Trust Bancorp, Inc. ("CTBI") on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer of CTBI, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of CTBI.

/s/ Kevin J. Stumbo

Kevin J. Stumbo

Executive Vice President, Chief Financial Officer, and Treasurer

November 6, 2015

XML

Repurchase Agreements (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Transfer of Certain Financial Assets Accounted for as Secured Borrowings [Line Items]
Carrying value of investment securities available for sale pledged as collateral under repurchase agreements	$ 290,700	$ 283,300
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	256,153	235,186
Overnight and Continuous [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	109,581	105,556
Up to 30 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	49,000	1,000
30-90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	717	24,544
Greater Than 90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	96,855	104,086
U.S. Treasury and Government Agencies [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	74,644	28,700
U.S. Treasury and Government Agencies [Member] | Overnight and Continuous [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	19,986	6,790
U.S. Treasury and Government Agencies [Member] | Up to 30 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	22,400	1,000
U.S. Treasury and Government Agencies [Member] | 30-90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	0	6,834
U.S. Treasury and Government Agencies [Member] | Greater Than 90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	32,258	14,076
State and Political Subdivisions [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	71,532	73,764
State and Political Subdivisions [Member] | Overnight and Continuous [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	59,293	59,451
State and Political Subdivisions [Member] | Up to 30 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	2,330	0
State and Political Subdivisions [Member] | 30-90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	508	1,839
State and Political Subdivisions [Member] | Greater Than 90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	9,401	12,474
U.S. Government Sponsored Agency Mortgage-backed Securities [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	109,977	132,722
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Overnight and Continuous [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	30,302	39,315
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Up to 30 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	24,270	0
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | 30-90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	209	15,871
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Greater Than 90 Days [Member]
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract]
Repurchase agreements and repurchase-to-maturity transactions	$ 55,196	$ 77,536

XML

Loans, Credit Risk Profile Based on Rating Category and Payment Activity and on Performing and Nonperforming Status, Segregated by Class (Details) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		$ 2,820,460	$ 2,733,824
Consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process		5,300	5,900
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,459,973	1,432,960
Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		$ 1,277,219	1,253,679
Commercial [Member] | Pass [Member] | Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Review period for loans		12 months
Commercial [Member] | Pass [Member] | Maximum [Member]
Financing Receivable, Recorded Investment [Line Items]
Review period for loans		18 months
Commercial [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		$ 117,555	115,094
Commercial [Member] | OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		13,492	12,788
Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		48,612	39,320
Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		3,095	12,079
Commercial [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		106,855	121,942
Commercial [Member] | Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		85,878	101,314
Commercial [Member] | Construction [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		6,615	9,857
Commercial [Member] | Construction [Member] | OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		4,205	934
Commercial [Member] | Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		8,999	5,647
Commercial [Member] | Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,158	4,190
Commercial [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		997,654	948,626
Commercial [Member] | Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		885,941	834,751
Commercial [Member] | Real Estate [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		69,393	69,123
Commercial [Member] | Real Estate [Member] | OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		8,286	10,973
Commercial [Member] | Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		33,162	27,901
Commercial [Member] | Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		872	5,878
Commercial [Member] | Equipment Lease [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		9,146	10,344
Commercial [Member] | Equipment Lease [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		9,146	10,344
Commercial [Member] | Equipment Lease [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		0	0
Commercial [Member] | Equipment Lease [Member] | OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		0	0
Commercial [Member] | Equipment Lease [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		0	0
Commercial [Member] | Equipment Lease [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		0	0
Commercial [Member] | Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		346,318	352,048
Commercial [Member] | Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		296,254	307,270
Commercial [Member] | Other [Member] | Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		41,547	36,114
Commercial [Member] | Other [Member] | OAEM [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,001	881
Commercial [Member] | Other [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		6,451	5,772
Commercial [Member] | Other [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,065	2,011
Residential [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		62,226	62,412
Residential [Member] | Construction [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		61,495	61,427
Residential [Member] | Construction [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	731	985
Residential [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		706,187	712,465
Residential [Member] | Real Estate [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		693,968	698,210
Residential [Member] | Real Estate [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	12,219	14,255
Residential [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		88,624	88,335
Residential [Member] | Home Equity [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		87,822	87,544
Residential [Member] | Home Equity [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	802	791
Consumer [Member] | Consumer Direct [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		125,847	122,136
Consumer [Member] | Consumer Direct [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		125,644	121,995
Consumer [Member] | Consumer Direct [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	203	141
Consumer [Member] | Indirect [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		377,603	315,516
Consumer [Member] | Indirect [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		377,184	315,131
Consumer [Member] | Indirect [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	419	385
Residential and Consumer Portfolio Segments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,360,487	1,300,864
Residential and Consumer Portfolio Segments [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile		1,346,113	1,284,307
Residential and Consumer Portfolio Segments [Member] | Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Loan portfolio based on credit risk profile	[1]	$ 14,374	$ 16,557

[1] A loan is considered nonperforming if it is 90 days or more past due or on nonaccrual.

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Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income [Abstract]

Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI)

Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and nine months ended September 30, 2015 and 2014 were:

	Amounts Reclassified from AOCI
(in thousands)	Three Months Ended September 30					Nine Months Ended September 30
	2015		2014			2015		2014
Affected line item in the statements of income
Securities gains (losses)	$	12	$	(34	)	$	142	$	(145	)
Tax expense (benefit)		4		(12	)		50		(51	)
Total reclassifications out of AOCI	$	8	$	(22	)	$	92	$	(94	)

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Fair Value of Financial Assets and Liabilities, Estimated Fair Value Of Financial Instruments and Indication of Level Within Fair Value Hierarchy of Valuation Techniques (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financial assets: [Abstract]
Securities available-for-sale	$ 576,713	$ 640,186
Securities held-to-maturity	1,651	1,644
Mortgage servicing rights	3,030	2,968
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Financial assets: [Abstract]
Cash and cash equivalents	163,192	105,517
Certificates of deposits in other banks	0	0
Securities available-for-sale	45,025	25,381
Securities held-to-maturity	0	0
Loans held for sale	2,029	2,321
Loans, net	0	0
Federal Home Loan Bank stock	0	0
Federal Reserve Bank stock	0	0
Accrued interest receivable	0	0
Mortgage servicing rights	0	0
Financial liabilities: [Abstract]
Deposits	737,657	677,626
Repurchase agreements	0	0
Federal funds purchased	0	0
Advances from Federal Home Loan Bank	0	0
Long-term debt	0	0
Accrued interest payable	0	0
Unrecognized financial instruments [Abstract]
Letters of credit	0	0
Commitments to extend credit	0	0
Forward sale commitments	0	0
Significant Other Observable Inputs (Level 2) [Member]
Financial assets: [Abstract]
Cash and cash equivalents	0	0
Certificates of deposits in other banks	5,769	8,213
Securities available-for-sale	531,688	614,805
Securities held-to-maturity	1,651	1,644
Loans held for sale	0	0
Loans, net	0	0
Federal Home Loan Bank stock	17,927	17,927
Federal Reserve Bank stock	4,887	4,869
Accrued interest receivable	13,581	13,548
Mortgage servicing rights	0	0
Financial liabilities: [Abstract]
Deposits	2,219,060	2,192,848
Repurchase agreements	0	0
Federal funds purchased	9,215	11,041
Advances from Federal Home Loan Bank	1,233	61,106
Long-term debt	0	0
Accrued interest payable	1,641	908
Unrecognized financial instruments [Abstract]
Letters of credit	0	0
Commitments to extend credit	0	0
Forward sale commitments	0	0
Significant Unobservable Inputs (Level 3) [Member]
Financial assets: [Abstract]
Cash and cash equivalents	0	0
Certificates of deposits in other banks	0	0
Securities available-for-sale	0	0
Securities held-to-maturity	0	0
Loans held for sale	0	0
Loans, net	2,793,430	2,691,906
Federal Home Loan Bank stock	0	0
Federal Reserve Bank stock	0	0
Accrued interest receivable	0	0
Mortgage servicing rights	3,030	2,968
Financial liabilities: [Abstract]
Deposits	0	0
Repurchase agreements	256,120	235,193
Federal funds purchased	0	0
Advances from Federal Home Loan Bank	0	0
Long-term debt	49,073	35,615
Accrued interest payable	0	0
Unrecognized financial instruments [Abstract]
Letters of credit	0	0
Commitments to extend credit	0	0
Forward sale commitments	0	0
Carrying Amount [Member]
Financial assets: [Abstract]
Cash and cash equivalents	163,192	105,517
Certificates of deposits in other banks	5,759	8,197
Securities available-for-sale	576,713	640,186
Securities held-to-maturity	1,661	1,662
Loans held for sale	1,983	2,264
Loans, net	2,784,920	2,699,377
Federal Home Loan Bank stock	17,927	17,927
Federal Reserve Bank stock	4,887	4,869
Accrued interest receivable	13,581	13,548
Mortgage servicing rights	3,030	2,968
Financial liabilities: [Abstract]
Deposits	2,975,229	2,874,257
Repurchase agreements	256,153	235,186
Federal funds purchased	9,215	11,041
Advances from Federal Home Loan Bank	1,084	61,170
Long-term debt	61,341	61,341
Accrued interest payable	1,641	908
Unrecognized financial instruments [Abstract]
Letters of credit	0	0
Commitments to extend credit	0	0
Forward sale commitments	$ 0	$ 0

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Other Real Estate Owned (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Activity for other real estate owned [Roll Forward]
Beginning balance of other real estate owned	$ 36,698	$ 33,062	$ 36,776	$ 39,188
New assets acquired	3,725	1,803	9,986	5,267
Capitalized costs	0	0	85	0
Fair value adjustments	(784)	(241)	(1,146)	(1,402)
Sale of assets	(4,985)	(1,877)	(11,047)	(10,306)
Ending balance of other real estate owned	34,654	32,747	34,654	32,747
Carrying cost and fair value adjustments for foreclosed properties	$ 1,300	$ 700	$ 2,500	$ 2,900

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Loans

9 Months Ended

Sep. 30, 2015

Loans [Abstract]

Loans

Note 4 – Loans

Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial construction	$	106,855	$	121,942
Commercial secured by real estate		997,654		948,626
Equipment lease financing		9,146		10,344
Commercial other		346,318		352,048
Real estate construction		62,226		62,412
Real estate mortgage		706,187		712,465
Home equity		88,624		88,335
Consumer direct		125,847		122,136
Consumer indirect		377,603		315,516
Total loans	$	2,820,460	$	2,733,824

CTBI has segregated and evaluates its loan portfolio through nine portfolio segments. 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.

Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development.   Included in this category are improved property, land development, and tract development loans.  The terms of these loans are generally short-term with permanent financing upon completion.

Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/multi-family 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.

Equipment lease financing loans are fixed, variable, and tax exempt leases for commercial purposes.

Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, floorplans, 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 real estate, equipment, or other assets, although such loans may be uncollateralized but guaranteed.

Real estate construction loans are typically for owner-occupied properties.  The terms of these loans are generally short-term with permanent financing upon completion.

Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans.  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 revolving adjustable rate credit lines secured by real property.

Consumer direct loans are primarily fixed 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 $2.0 million at September 30, 2015 and $2.3 million at December 31, 2014, respectively.

Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy.  Nonaccrual loans segregated by class of loans were as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial:
Commercial construction	$	3,443	$	4,339
Commercial secured by real estate		4,134		6,725
Commercial other		1,412		2,423
Residential:
Real estate construction		311		602
Real estate mortgage		5,108		6,513
Home equity		200		369
Consumer:
Consumer direct		114		0
Total nonaccrual loans	$	14,722	$	20,971

The following tables present CTBI's loan portfolio aging analysis, segregated by class, as of September 30, 2015 and December 31, 2014:

	September 30, 2015
(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	$	251	$	7	$	5,133	$	5,391	$	101,464	$	106,855	$	1,690
Commercial secured by real estate		5,348		1,401		6,574		13,323		984,331		997,654		4,766
Equipment lease financing		0		0		0		0		9,146		9,146		0
Commercial other		870		417		4,152		5,439		340,879		346,318		2,904
Residential:
Real estate construction		609		129		717		1,455		60,771		62,226		420
Real estate mortgage		1,517		4,637		10,906		17,060		689,127		706,187		7,111
Home equity		516		122		749		1,387		87,237		88,624		602
Consumer:
Consumer direct		1,055		260		89		1,404		124,443		125,847		89
Consumer indirect		2,503		404		419		3,326		374,277		377,603		419
Total	$	12,669	$	7,377	$	28,739	$	48,785	$	2,771,675	$	2,820,460	$	18,001

	December 31, 2014
(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	$	40	$	31	$	6,171	$	6,242	$	115,700	$	121,942	$	1,863
Commercial secured by real estate		2,471		1,595		10,763		14,829		933,797		948,626		4,682
Equipment lease financing		0		0		0		0		10,344		10,344		0
Commercial other		826		55		4,205		5,086		346,962		352,048		2,367
Residential:
Real estate construction		92		144		985		1,221		61,191		62,412		383
Real estate mortgage		1,005		5,171		13,049		19,225		693,240		712,465		7,742
Home equity		779		197		703		1,679		86,656		88,335		422
Consumer:
Consumer direct		1,307		295		141		1,743		120,393		122,136		141
Consumer indirect		2,304		586		385		3,275		312,241		315,516		385
Total	$	8,824	$	8,074	$	36,402	$	53,300	$	2,680,524	$	2,733,824	$	17,985

*90+ and Accruing are also included in 90+ Days Past Due column.

The risk characteristics of CTBI's material portfolio segments are as follows:

Commercial 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 loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate.  Commercial real estate 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.  Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy.  Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria.

Equipment lease financing is underwritten by our commercial lenders using the same underwriting standards as would be applied to a secured commercial loan requesting 100% financing.  The pricing for equipment lease financing is comparable to that of borrowers with similar quality commercial credits with similar collateral.  Maximum terms of equipment leasing are determined by the type and expected life of the equipment to be leased.  Residual values are determined by appraisals or opinion letters from industry experts.  Leases must be in conformity with our consolidated annual tax plan.  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.

Commercial 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.

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 recourse agreements with the Bank.

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:

Ø 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.

Ø 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.

Ø 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.

Ø 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.

Ø 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 table presents the credit risk profile of CTBI's commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of September 30, 2015 and December 31, 2014:

(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Leases		Commercial Other		Total
September 30, 2015
Pass	$	85,878	$	885,941	$	9,146	$	296,254	$	1,277,219
Watch		6,615		69,393		0		41,547		117,555
OAEM		4,205		8,286		0		1,001		13,492
Substandard		8,999		33,162		0		6,451		48,612
Doubtful		1,158		872		0		1,065		3,095
Total	$	106,855	$	997,654	$	9,146	$	346,318	$	1,459,973
December 31, 2014
Pass	$	101,314	$	834,751	$	10,344	$	307,270	$	1,253,679
Watch		9,857		69,123		0		36,114		115,094
OAEM		934		10,973		0		881		12,788
Substandard		5,647		27,901		0		5,772		39,320
Doubtful		4,190		5,878		0		2,011		12,079
Total	$	121,942	$	948,626	$	10,344	$	352,048	$	1,432,960

The following table presents the credit risk profile of the CTBI's residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of September 30, 2015 and December 31, 2014:

(in thousands)	Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
September 30, 2015
Performing	$	61,495	$	693,968	$	87,822	$	125,644	$	377,184	$	1,346,113
Nonperforming (1)		731		12,219		802		203		419		14,374
Total	$	62,226	$	706,187	$	88,624	$	125,847	$	377,603	$	1,360,487
December 31, 2014
Performing	$	61,427	$	698,210	$	87,544	$	121,995	$	315,131	$	1,284,307
Nonperforming (1)		985		14,255		791		141		385		16,557
Total	$	62,412	$	712,465	$	88,335	$	122,136	$	315,516	$	1,300,864

(1)  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 $5.3 million at September 30, 2015 compared to $5.9 million at December 31, 2014.

A loan is considered impaired, in accordance with the impairment accounting guidance, when based on current information and events, it is probable CTBI will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan.  Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties.  These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection.

The following tables present impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	4,669	$	4,669	$	0
Commercial secured by real estate		30,318		31,551		0
Commercial other		7,163		8,804		0
Real estate mortgage		1,189		1,189		0
Loans with a specific valuation allowance:
Commercial construction		3,411		3,412		719
Commercial secured by real estate		835		1,075		317
Commercial other		754		935		312
Totals:
Commercial construction		8,080		8,081		719
Commercial secured by real estate		31,153		32,626		317
Commercial other		7,917		9,739		312
Real estate mortgage		1,189		1,189		0
Total	$	48,339	$	51,635	$	1,348

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(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	$	4,864	$	41	$	5,142	$	160
Commercial secured by real estate		30,713		316		30,357		985
Commercial other		7,312		73		9,182		201
Real estate mortgage		1,183		13		1,090		37
Loans with a specific valuation allowance:
Commercial construction		3,445		0		3,712		0
Commercial secured by real estate		841		6		2,244		7
Commercial other		776		1		788		1
Totals:
Commercial construction		8,309		41		8,854		160
Commercial secured by real estate		31,554		322		32,601		992
Commercial other		8,088		74		9,970		202
Real estate mortgage		1,183		13		1,090		37
Total	$	49,134	$	450	$	52,515	$	1,391

	December 31, 2014
(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	$	5,653	$	5,654	$	0	$	5,415	$	205
Commercial secured by real estate		31,639		33,268		0		34,650		1,180
Commercial other		13,069		14,597		0		15,663		783
Real estate mortgage		1,277		1,277		0		1,507		53
Loans with a specific valuation allowance:
Commercial construction		3,974		3,974		734		4,216		0
Commercial secured by real estate		2,718		2,876		827		4,376		11
Commercial other		738		862		181		531		1
Totals:
Commercial construction		9,627		9,628		734		9,631		205
Commercial secured by real estate		34,357		36,144		827		39,026		1,191
Commercial other		13,807		15,459		181		16,194		784
Real estate mortgage		1,277		1,277		0		1,507		53
Total	$	59,068	$	62,508	$	1,742	$	66,358	$	2,233

	September 30, 2014
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	5,250	$	5,251	$	0
Commercial secured by real estate		33,010		34,086		0
Commercial other		15,972		18,247		0
Real estate mortgage		1,874		1,875		0
Loans with a specific valuation allowance:
Commercial construction		4,149		4,149		734
Commercial secured by real estate		6,070		6,219		1,273
Commercial other		586		710		211
Totals:
Commercial construction		9,399		9,400		734
Commercial secured by real estate		39,080		40,305		1,273
Commercial other		16,558		18,957		211
Real estate mortgage		1,874		1,875		0
Total	$	66,911	$	70,537	$	2,218

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(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	$	5,259	$	44	$	5,330	$	172
Commercial secured by real estate		33,290		261		34,464		858
Commercial other		17,577		248		16,421		619
Real estate mortgage		1,860		12		1,583		44
Loans with a specific valuation allowance:
Commercial construction		4,213		0		4,270		0
Commercial secured by real estate		6,076		5		4,912		9
Commercial other		587		0		460		0
Totals:
Commercial construction		9,472		44		9,600		172
Commercial secured by real estate		39,366		266		39,376		867
Commercial other		18,164		248		16,881		619
Real estate mortgage		1,860		12		1,583		44
Total	$	68,862	$	570	$	67,440	$	1,702

*Cash basis interest is substantially the same as interest income recognized.

Included in certain loan categories of impaired loans are certain loans and leases that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions.  Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances.  Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification.  All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower.  In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification.  This evaluation is performed under CTBI's internal underwriting policy.

When we modify loans and leases in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.

During 2015, 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 nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014:

	Three Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		5	$	346	$	0	$	165	$	511
Commercial other		1		1,139		0		0		1,139
Total troubled debt restructurings		6	$	1,485	$	0	$	165	$	1,650

	Nine Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		13	$	953	$	0	$	165	$	1,118
Commercial other		4		1,193		0		0		1,193
Residential:
Real estate mortgage		1		0		0		290		290
Total troubled debt restructurings		18	$	2,146	$	0	$	455	$	2,601

	Three Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		4		2,416		0		67		2,483
Commercial other		4		451		0		0		451
Total troubled debt restructurings		9	$	2,874	$	0	$	67	$	2,941

	Nine Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		7		2,647		0		67		2,714
Commercial other		7		512		0		0		512
Residential:
Real estate mortgage		2		0		0		849		849
Total troubled debt restructurings		17	$	3,166	$	0	$	916	$	4,082

	Year Ended December 31, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		11		5,707		0		68		5,775
Commercial other		8		1,268		0		0		1,268
Residential:
Real estate mortgage		2		0		0		848		848
Total troubled debt restructurings		22	$	6,982	$	0	$	916	$	7,898

No charge-offs have resulted from modifications for any of the presented periods.

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.  CTBI generally considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.  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.

(in thousands)	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		2	$	31		4	$	390
Residential:
Real estate mortgage		0		0		1		290
Total defaulted restructured loans		2	$	31		5	$	680

(in thousands)	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		1	$	2,892		1	$	2,892
Residential:
Real estate mortgage		1		594		2		1,175
Total defaulted restructured loans		2	$	3,486		3	$	4,067

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator [Abstract]
Net income	$ 11,222	$ 10,924	$ 34,562	$ 33,259
Basic earnings per share [Abstract]
Weighted average shares (in shares)	17,440,000	17,326,000	17,420,000	17,317,000
Diluted earnings per share [Abstract]
Effect of dilutive stock options and restricted stock grants (in shares)	51,000	76,000	52,000	78,000
Adjusted weighted average shares (in shares)	17,491,000	17,402,000	17,472,000	17,395,000
Earnings per share [Abstract]
Basic earnings per share (in dollars per share)	$ 0.64	$ 0.63	$ 1.98	$ 1.92
Diluted earnings per share (in dollars per share)	$ 0.64	$ 0.63	$ 1.98	$ 1.91
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Options excluded from diluted calculations (in shares)	0	63,270	0	0
Weighted average price for anti dilutive securities (in dollars per share)		$ 35.41		$ 35.41

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Securities, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Available-for-sale, amortized cost [Abstract]
Due in one year or less	$ 30,015		$ 30,015
Due after one through five years	128,605		128,605
Due after five through ten years	124,654		124,654
Due after ten years	50,436		50,436
U.S. government sponsored agency mortgage-backed securities	212,829		212,829
Amortized cost	546,539		546,539		$ 613,395
CRA investment funds	25,000		25,000
Amortized cost	571,539		571,539		638,395
Available-for-sale, fair value [Abstract]
Due in one year or less	30,092		30,092
Due after one through five years	129,937		129,937
Due after five through ten years	126,142		126,142
Due after ten years	51,338		51,338
U.S. government sponsored agency mortgage-backed securities	214,176		214,176
Total debt securities	551,685		551,685		615,297
CRA investment funds	25,028		25,028
Total securities	576,713		576,713
Held-to-maturity, amortized cost [Abstract]
Due in one year or less	0		0
Due after one through five years	1,181		1,181
Due after five through ten years	480		480
Due after ten years	0		0
U.S. government sponsored agency mortgage-backed securities	0		0
Amortized cost	1,661		1,661		1,662
CRA investment funds	0		0
Total securities	1,661		1,661
Held-to-maturity, fair value [Abstract]
Due in one year or less	0		0
Due after one through five years	1,182		1,182
Due after five through ten years	469		469
Due after ten years	0		0
U.S. government sponsored agency mortgage-backed securities	0		0
Total debt securities	1,651		1,651		1,644
CRA investment funds	0		0
Total securities	1,651		1,651
Securities gains (loss), net	12	$ (34)	142	$ (145)
Realized pre-tax gain on sale of securities			840
Realized pre-tax loss on sale of securities			698
Amortized cost of securities pledged as collateral to secure public deposit and for other purposes	217,600		217,600		267,100
Amortized cost of securities sold under agreements to repurchase	$ 286,400		$ 286,400		$ 280,900

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Securities, Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available-for-sale debt securities [Abstract]
Amortized cost	$ 546,539	$ 613,395
Gross unrealized gains	7,181	7,358
Gross unrealized losses	(2,035)	(5,456)
Fair value	551,685	615,297
Available-for-sale [Abstract]
Amortized cost	571,539	638,395
Gross unrealized gains	7,209	7,358
Gross unrealized losses	(2,035)	(5,567)
Fair value	576,713	640,186
Held-to-maturity [Abstract]
Amortized cost	1,661	1,662
Gross unrealized gains	1	1
Gross unrealized losses	(11)	(19)
Fair value	1,651	1,644
U.S. Treasury and Government Agencies [Member]
Available-for-sale debt securities [Abstract]
Amortized cost	201,461	190,563
Gross unrealized gains	990	509
Gross unrealized losses	(401)	(2,140)
Fair value	202,050	188,932
State and Political Subdivisions [Member]
Available-for-sale debt securities [Abstract]
Amortized cost	132,249	133,951
Gross unrealized gains	3,718	3,973
Gross unrealized losses	(508)	(466)
Fair value	135,459	137,458
U.S. Government Sponsored Agency Mortgage-backed Securities [Member]
Available-for-sale debt securities [Abstract]
Amortized cost	212,829	288,881
Gross unrealized gains	2,473	2,876
Gross unrealized losses	(1,126)	(2,850)
Fair value	214,176	288,907
CRA Investments Funds [Member]
Available-for-sale equity securities [Abstract]
Amortized cost	25,000	25,000
Gross unrealized gains	28	0
Gross unrealized losses	0	(111)
Fair value	25,028	24,889
U.S. Treasury and Government Agencies [Member]
Held-to-maturity [Abstract]
Amortized cost	480	480
Gross unrealized gains	0	0
Gross unrealized losses	(11)	(19)
Fair value	469	461
State and Political Subdivisions [Member]
Held-to-maturity [Abstract]
Amortized cost	1,181	1,182
Gross unrealized gains	1	1
Gross unrealized losses	0	0
Fair value	$ 1,182	$ 1,183

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Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax expense (benefit)	$ 3,724	$ 4,907	$ 13,084	$ 14,995
Net income	11,222	10,924	34,562	33,259
Unrealized Gains (Losses) on AFS Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Securities gains (losses)	12	(34)	142	(145)
Tax expense (benefit)	4	(12)	50	(51)
Net income	$ 8	$ (22)	$ 92	$ (94)

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Securities, Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Securities [Abstract]
Percentage of total investment with unrealized losses	34.80%	44.10%
Available-for-sale, amortized cost [Abstract]
Less than 12 months	$ 89,459	$ 115,100
12 months or more	113,361	172,906
Total	202,820	288,006
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	(399)	(663)
12 months or more	(1,636)	(4,904)
Total	(2,035)	(5,567)
Available-for-sale, fair value [Abstract]
Less than 12 months	89,060	114,437
12 months or more	111,725	168,002
Total	200,785	282,439
Held-to-maturity, amortized cost [Abstract]
12 months or more	480	480
Held-to-maturity, gross unrealized losses [Abstract]
12 months or more	(11)	(19)
Held-to-maturity, fair value [Abstract]
12 months or more	469	461
U.S. Treasury and Government Agencies [Member]
Available-for-sale, amortized cost [Abstract]
Less than 12 months	22,178	31,185
12 months or more	54,773	65,209
Total	76,951	96,394
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	(13)	(87)
12 months or more	(388)	(2,053)
Total	(401)	(2,140)
Available-for-sale, fair value [Abstract]
Less than 12 months	22,165	31,098
12 months or more	54,385	63,156
Total	76,550	94,254
State and Political Subdivisions [Member]
Available-for-sale, amortized cost [Abstract]
Less than 12 months	17,068	8,800
12 months or more	7,297	21,308
Total	24,365	30,108
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	(179)	(23)
12 months or more	(329)	(443)
Total	(508)	(466)
Available-for-sale, fair value [Abstract]
Less than 12 months	16,889	8,777
12 months or more	6,968	20,865
Total	23,857	29,642
U.S. Government Sponsored Agency Mortgage-backed Securities [Member]
Available-for-sale, amortized cost [Abstract]
Less than 12 months	50,213	50,115
12 months or more	51,291	86,389
Total	101,504	136,504
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	(207)	(442)
12 months or more	(919)	(2,408)
Total	(1,126)	(2,850)
Available-for-sale, fair value [Abstract]
Less than 12 months	50,006	49,673
12 months or more	50,372	83,981
Total	100,378	133,654
Debt Securities [Member]
Available-for-sale, amortized cost [Abstract]
Less than 12 months	89,459	90,100
12 months or more	113,361	172,906
Total	202,820	263,006
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	(399)	(552)
12 months or more	(1,636)	(4,904)
Total	(2,035)	(5,456)
Available-for-sale, fair value [Abstract]
Less than 12 months	89,060	89,548
12 months or more	111,725	168,002
Total	200,785	257,550
CRA Investments Funds [Member]
Available-for-sale, amortized cost [Abstract]
Less than 12 months	0	25,000
12 months or more	0	0
Total	0	25,000
Available-for-sale, gross unrealized losses [Abstract]
Less than 12 months	0	(111)
12 months or more	0	0
Total	0	(111)
Available-for-sale, fair value [Abstract]
Less than 12 months	0	24,889
12 months or more	0	0
Total	0	24,889
U.S. Treasury and Government Agencies [Member]
Held-to-maturity, amortized cost [Abstract]
12 months or more	480	480
Held-to-maturity, gross unrealized losses [Abstract]
12 months or more	(11)	(19)
Held-to-maturity, fair value [Abstract]
12 months or more	$ 469	$ 461

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Loans, Major Classifications of Loans, Net of Income and Deferred Loan Origination Cost (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) Segment	Dec. 31, 2014 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	$ 2,820,460	$ 2,733,824
Number of portfolio segments | Segment	9
Loans held for sale [Abstract]
Loans held for sale	$ 1,983	2,264
Commercial [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	106,855	121,942
Commercial [Member] | Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	997,654	948,626
Commercial [Member] | Equipment Lease Financing [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	9,146	10,344
Commercial [Member] | Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	346,318	352,048
Residential [Member] | Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	62,226	62,412
Residential [Member] | Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	706,187	712,465
Residential [Member] | Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	88,624	88,335
Consumer [Member] | Consumer Direct [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	125,847	122,136
Consumer [Member] | Consumer Indirect [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, net of unearned income and deferred origination costs	$ 377,603	$ 315,516

XML

Securities

9 Months Ended

Sep. 30, 2015

Securities [Abstract]

Securities

Note 3 – Securities

Securities are classified into held-to-maturity and available-for-sale categories.  Held-to-maturity (HTM) securities are those that CTBI has the positive intent and ability to hold to maturity and are reported at amortized cost.  Available-for-sale (AFS) securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management or other reasons.  Available-for-sale securities are reported at fair value, with unrealized gains or losses included as a separate component of equity, net of tax.

The amortized cost and fair value of securities at September 30, 2015 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	201,461	$	990	$	(401	)	$	202,050
State and political subdivisions		132,249		3,718		(508	)		135,459
U.S. government sponsored agency mortgage-backed securities		212,829		2,473		(1,126	)		214,176
Total debt securities		546,539		7,181		(2,035	)		551,685
CRA investment funds		25,000		28		0			25,028
Total available-for-sale securities	$	571,539	$	7,209	$	(2,035	)	$	576,713

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(11	)	$	469
State and political subdivisions		1,181		1		0			1,182
Total held-to-maturity securities	$	1,661	$	1	$	(11	)	$	1,651

The amortized cost and fair value of securities at December 31, 2014 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	190,563	$	509	$	(2,140	)	$	188,932
State and political subdivisions		133,951		3,973		(466	)		137,458
U.S. government sponsored agency mortgage-backed securities		288,881		2,876		(2,850	)		288,907
Total debt securities		613,395		7,358		(5,456	)		615,297
CRA investment funds		25,000		0		(111	)		24,889
Total available-for-sale securities	$	638,395	$	7,358	$	(5,567	)	$	640,186

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(19	)	$	461
State and political subdivisions		1,182		1		0			1,183
Total held-to-maturity securities	$	1,662	$	1	$	(19	)	$	1,644

The amortized cost and fair value of securities at September 30, 2015 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	30,015	$	30,092	$	0	$	0
Due after one through five years		128,605		129,937		1,181		1,182
Due after five through ten years		124,654		126,142		480		469
Due after ten years		50,436		51,338		0		0
U.S. government sponsored agency mortgage-backed securities		212,829		214,176		0		0
Total debt securities		546,539		551,685		1,661		1,651
CRA investment funds		25,000		25,028		0		0
Total securities	$	571,539	$	576,713	$	1,661	$	1,651

As of September 30, 2015, there was a net gain of $142 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $840 thousand and a pre-tax loss of $698 thousand.  As of September 30, 2014, there was a net loss of $145 thousand.

The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $217.6 million at September 30, 2015 and $267.1 million at December 31, 2014.

The amortized cost of securities sold under agreements to repurchase amounted to $286.4 million at September 30, 2015 and $280.9 million at December 31, 2014.

CTBI evaluates its investment portfolio on a quarterly basis for impairment.  The analysis performed as of September 30, 2015 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related.  The percentage of total investments with unrealized losses as of September 30, 2015 was 34.8% compared to 44.1% as of December 31, 2014.  The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of September 30, 2015 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	22,178	$	(13	)	$	22,165
State and political subdivisions		17,068		(179	)		16,889
U.S. government sponsored agency mortgage-backed securities		50,213		(207	)		50,006
Total debt securities		89,459		(399	)		89,060
CRA investment funds		0		(0	)		0
Total <12 months temporarily impaired AFS securities		89,459		(399	)		89,060
12 Months or More
U.S. Treasury and government agencies		54,773		(388	)		54,385
State and political subdivisions		7,297		(329	)		6,968
U.S. government sponsored agency mortgage-backed securities		51,291		(919	)		50,372
Total debt securities		113,361		(1,636	)		111,725
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		113,361		(1,636	)		111,725
Total
U.S. Treasury and government agencies		76,951		(401	)		76,550
State and political subdivisions		24,365		(508	)		23,857
U.S. government sponsored agency mortgage-backed securities		101,504		(1,126	)		100,378
Total debt securities		202,820		(2,035	)		200,785
CRA investment funds		0		(0	)		0
Total temporarily impaired AFS securities	$	202,820	$	(2,035	)	$	200,785

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(11	)	$	469
Total temporarily impaired HTM securities	$	480	$	(11	)	$	469

U.S. Treasury and Government Agencies

The unrealized losses in U.S. Treasury and government agencies were caused by interest rate increases.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than amortized cost.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be at maturity.

State and Political Subdivisions

The unrealized losses in securities of state and political subdivisions were caused by interest rate increases.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than amortized cost.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because CTBI does not intend to sell the investments before recovery of their amortized cost, which may be at maturity.

U.S. Government Sponsored Agency Mortgage-Backed Securities

The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate increases.  CTBI expects to recover the amortized cost basis over the term of the securities.  CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2015, because (i) the decline in market value is attributable to changes in interest rates and not credit quality, (ii) CTBI does not intend to sell the investments, and (iii) it is not more likely than not we will be required to sell the investments before recovery of their amortized cost, which may be at maturity.

The analysis performed as of December 31, 2014 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related.  The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2014 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	31,185	$	(87	)	$	31,098
State and political subdivisions		8,800		(23	)		8,777
U.S. government sponsored agency mortgage-backed securities		50,115		(442	)		49,673
Total debt securities		90,100		(552	)		89,548
CRA investment funds		25,000		(111	)		24,889
Total <12 months temporarily impaired AFS securities		115,100		(663	)		114,437
12 Months or More
U.S. Treasury and government agencies		65,209		(2,053	)		63,156
State and political subdivisions		21,308		(443	)		20,865
U.S. government sponsored agency mortgage-backed securities		86,389		(2,408	)		83,981
Total debt securities		172,906		(4,904	)		168,002
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		172,906		(4,904	)		168,002
Total
U.S. Treasury and government agencies		96,394		(2,140	)		94,254
State and political subdivisions		30,108		(466	)		29,642
U.S. government sponsored agency mortgage-backed securities		136,504		(2,850	)		133,654
Total debt securities		263,006		(5,456	)		257,550
CRA investment funds		25,000		(111	)		24,889
Total temporarily impaired AFS securities	$	288,006	$	(5,567	)	$	282,439

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(19	)	$	461
Total temporarily impaired HTM securities	$	480	$	(19	)	$	461

XML

Loans, Nonaccrual Loans Segregated by Class of Loans and Loan Portfolio Aging Analysis, Segregated by Class (Details) - USD ($)		9 Months Ended
		Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		$ 14,722,000	$ 20,971,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		48,785,000	53,300,000
Current		2,771,675,000	2,680,524,000
Total Loans		2,820,460,000	2,733,824,000
90+ and Accruing	[1]	18,001,000	17,985,000
Threshold amount of loan requiring performance bond		500,000
30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		12,669,000	8,824,000
60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		7,377,000	8,074,000
90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		$ 28,739,000	36,402,000
Equipment Lease Financing [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Financing percentage requested for underwriting loans		100.00%
Commercial [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Loans		$ 1,459,973,000	1,432,960,000
Commercial [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		3,443,000	4,339,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		5,391,000	6,242,000
Current		101,464,000	115,700,000
Total Loans		106,855,000	121,942,000
90+ and Accruing	[1]	1,690,000	1,863,000
Commercial [Member] | Construction [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		251,000	40,000
Commercial [Member] | Construction [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		7,000	31,000
Commercial [Member] | Construction [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		5,133,000	6,171,000
Commercial [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		4,134,000	6,725,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		13,323,000	14,829,000
Current		984,331,000	933,797,000
Total Loans		997,654,000	948,626,000
90+ and Accruing	[1]	4,766,000	4,682,000
Commercial [Member] | Real Estate [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		5,348,000	2,471,000
Commercial [Member] | Real Estate [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,401,000	1,595,000
Commercial [Member] | Real Estate [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		6,574,000	10,763,000
Commercial [Member] | Equipment Lease Financing [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		0	0
Current		9,146,000	10,344,000
Total Loans		9,146,000	10,344,000
90+ and Accruing	[1]	0	0
Commercial [Member] | Equipment Lease Financing [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		0	0
Commercial [Member] | Equipment Lease Financing [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		0	0
Commercial [Member] | Equipment Lease Financing [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		0	0
Commercial [Member] | Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		1,412,000	2,423,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		5,439,000	5,086,000
Current		340,879,000	346,962,000
Total Loans		346,318,000	352,048,000
90+ and Accruing	[1]	2,904,000	2,367,000
Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		870,000	826,000
Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		417,000	55,000
Commercial [Member] | Other [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		4,152,000	4,205,000
Residential [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		311,000	602,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,455,000	1,221,000
Current		60,771,000	61,191,000
Total Loans		62,226,000	62,412,000
90+ and Accruing	[1]	420,000	383,000
Residential [Member] | Construction [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		609,000	92,000
Residential [Member] | Construction [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		129,000	144,000
Residential [Member] | Construction [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		717,000	985,000
Residential [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		5,108,000	6,513,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		17,060,000	19,225,000
Current		689,127,000	693,240,000
Total Loans		706,187,000	712,465,000
90+ and Accruing	[1]	7,111,000	7,742,000
Residential [Member] | Real Estate [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,517,000	1,005,000
Residential [Member] | Real Estate [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		4,637,000	5,171,000
Residential [Member] | Real Estate [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		10,906,000	13,049,000
Residential [Member] | Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		200,000	369,000
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,387,000	1,679,000
Current		87,237,000	86,656,000
Total Loans		88,624,000	88,335,000
90+ and Accruing	[1]	602,000	422,000
Residential [Member] | Home Equity [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		516,000	779,000
Residential [Member] | Home Equity [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		122,000	197,000
Residential [Member] | Home Equity [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		749,000	703,000
Consumer [Member] | Consumer Direct [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual loans segregated by class of loans		114,000	0
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,404,000	1,743,000
Current		124,443,000	120,393,000
Total Loans		125,847,000	122,136,000
90+ and Accruing	[1]	89,000	141,000
Consumer [Member] | Consumer Direct [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		1,055,000	1,307,000
Consumer [Member] | Consumer Direct [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		260,000	295,000
Consumer [Member] | Consumer Direct [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		89,000	141,000
Consumer [Member] | Consumer Indirect [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		3,326,000	3,275,000
Current		374,277,000	312,241,000
Total Loans		377,603,000	315,516,000
90+ and Accruing	[1]	419,000	385,000
Consumer [Member] | Consumer Indirect [Member] | 30-59 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		2,503,000	2,304,000
Consumer [Member] | Consumer Indirect [Member] | 60-89 Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		404,000	586,000
Consumer [Member] | Consumer Indirect [Member] | 90+ Days Past Due [Member]
Bank's Loan portfolio aging analysis, segregated by class [Abstract]
Total Past Due		$ 419,000	$ 385,000

[1] 90+ and Accruing are also included in 90+ Days Past Due column.

XML

Fair Market Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Other real estate owned [Abstract]
Maximum frequency of periodic reviews of real estate owned in general				24 months
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total recognized gains (losses) Included in net income	$ (351)		$ (39)	$ (381)	$ (546)
Total gain (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	(351)		(39)	(381)	(546)
Total gains (losses), noninterest income	(351)		(39)	$ (381)	(546)
Minimum [Member]
Other real estate owned [Abstract]
Frequency of periodic reviews				12 months
Maximum [Member]
Other real estate owned [Abstract]
Frequency of periodic reviews				18 months
Recurring [Member] | Fair Value [Member]
Available-for-sale securities [Abstract]
U.S. Treasury and government agencies	202,050	$ 188,932		$ 202,050		$ 188,932
State and political subdivisions	135,459	137,458		135,459		137,458
U.S. government sponsored agency mortgage-backed securities	214,176	288,907		214,176		288,907
CRA investment funds	25,028	24,889		25,028		24,889
Mortgage servicing rights	3,030	2,968		3,030		2,968
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available-for-sale securities [Abstract]
U.S. Treasury and government agencies	19,997	492		19,997		492
State and political subdivisions	0	0		0		0
U.S. government sponsored agency mortgage-backed securities	0	0		0		0
CRA investment funds	25,028	24,889		25,028		24,889
Mortgage servicing rights	0	0		0		0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available-for-sale securities [Abstract]
U.S. Treasury and government agencies	182,053	188,440		182,053		188,440
State and political subdivisions	135,459	137,458		135,459		137,458
U.S. government sponsored agency mortgage-backed securities	214,176	288,907		214,176		288,907
CRA investment funds	0	0		0		0
Mortgage servicing rights	0	0		0		0
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Available-for-sale securities [Abstract]
U.S. Treasury and government agencies	0	0		0		0
State and political subdivisions	0	0		0		0
U.S. government sponsored agency mortgage-backed securities	0	0		0		0
CRA investment funds	0	0		0		0
Mortgage servicing rights	3,030	2,968		3,030		2,968
Recurring [Member] | Mortgage Servicing Rights [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	3,235	3,112	3,062	2,968	3,424	3,424
Total recognized gains (losses) Included in net income	(228)		80	(37)	(212)
Issues	146		89	443	234
Settlements	(123)		(119)	(344)	(334)
Ending balance	3,030	2,968	3,112	3,030	3,112	2,968
Total gain (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	(228)		80	(37)	(212)
Total gains (losses), noninterest income	(228)		80	(37)	(212)
Nonrecurring [Member]
Impaired loan (collateral dependent) [Abstract]
Impaired loans, fair value adjustments	300	300	1,300	900	1,500	400
Other real estate owned [Abstract]
Other real estate /assets owned, fair value adjustment	800	300	$ 200	1,100	$ 1,400	1,700
Nonrecurring [Member] | Fair Value [Member]
Assets measured-nonrecurring basis [Abstract]
Impaired loans (collateral dependent)	2,195	4,665		2,195		4,665
Other real estate /assets owned	4,015	6,472		4,015		6,472
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Assets measured-nonrecurring basis [Abstract]
Impaired loans (collateral dependent)	0	0		0		0
Other real estate /assets owned	0	0		0		0
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Assets measured-nonrecurring basis [Abstract]
Impaired loans (collateral dependent)	0	0		0		0
Other real estate /assets owned	0	0		0		0
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member]
Assets measured-nonrecurring basis [Abstract]
Impaired loans (collateral dependent)	2,195	4,665		2,195		4,665
Other real estate /assets owned	$ 4,015	$ 6,472		$ 4,015		$ 6,472

XML

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Cash and due from banks	$ 54,041	$ 56,299
Interest bearing deposits	106,628	44,285
Federal funds sold	2,523	4,933
Cash and cash equivalents	163,192	105,517
Certificates of deposit in other banks	5,759	8,197
Securities available-for-sale at fair value (amortized cost of $571,539 and $638,395, respectively)	576,713	640,186
Securities held-to-maturity at amortized cost (fair value of $1,651 and $1,644, respectively)	1,661	1,662
Loans held for sale	1,983	2,264
Loans	2,820,460	2,733,824
Allowance for loan and lease losses	(35,540)	(34,447)
Net loans	2,784,920	2,699,377
Premises and equipment, net	48,541	49,980
Federal Home Loan Bank stock	17,927	17,927
Federal Reserve Bank stock	4,887	4,869
Goodwill	65,490	65,490
Core deposit intangible (net of accumulated amortization of $8,285 and $8,138, respectively)	331	477
Bank owned life insurance	61,942	60,697
Mortgage servicing rights	3,030	2,968
Other real estate owned	34,654	36,776
Other assets	37,118	27,378
Total assets	3,808,148	3,723,765
Deposits:
Noninterest bearing	737,657	677,626
Interest bearing	2,237,572	2,196,631
Total deposits	2,975,229	2,874,257
Repurchase agreements	256,153	235,186
Federal funds purchased and other short-term borrowings	9,215	11,041
Advances from Federal Home Loan Bank	1,084	61,170
Long-term debt	61,341	61,341
Other liabilities	34,541	32,893
Total liabilities	3,337,563	3,275,888
Shareholders' equity:
Preferred stock, 300,000 shares authorized and unissued	0	0
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2015 - 17,513,449; 2014 - 17,466,375	87,568	87,332
Capital surplus	216,253	214,684
Retained earnings	163,401	144,697
Accumulated other comprehensive income, net of tax	3,363	1,164
Total shareholders' equity	470,585	447,877
Total liabilities and shareholders' equity	$ 3,808,148	$ 3,723,765

XML

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 - Summary of Significant Accounting Policies

In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (which consist of normal recurring adjustments) necessary, to present fairly the condensed consolidated financial position as of September 30, 2015, the results of operations for the three and nine months ended September 30, 2015 and 2014, and the cash flows for the nine months ended September 30, 2015 and 2014.  In accordance with accounting principles generally accepted in the United States of America for interim financial information, these statements do not include certain information and footnote disclosures required by accounting principles generally accepted in the United States of America for complete annual financial statements.  The results of operations for the three and nine months ended September 30, 2015 and 2014, and the cash flows for the nine months ended September 30, 2015 and 2014, are not necessarily indicative of the results to be expected for the full year.  The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited consolidated financial statements of Community Trust Bancorp, Inc. ("CTBI") for that period.  For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2014, included in our annual report on Form 10-K.

Principles of Consolidation – The unaudited condensed consolidated financial statements include the accounts of CTBI and its separate and distinct, wholly owned subsidiaries Community Trust Bank, Inc. (the "Bank") and Community Trust and Investment Company.  All significant intercompany transactions have been eliminated in consolidation.

Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year classifications.  These reclassifications had no effect on net income.

All share data has been adjusted for the 10% stock dividend issued on June 2, 2014.

New Accounting Standards –

ØAccounting for Investments in Qualified Affordable Housing Projects –In January 2014, the FASB issued ASU No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323):  Accounting for Investments in Qualified Affordable Housing Projects, which enables companies that invest in affordable housing projects that qualify for the low-income housing tax credit (LIHTC) to elect to use the proportional amortization method if certain conditions are met.  Under the proportional amortization method, the initial investment cost of the project is amortized in proportion to the amount of tax credits and benefits received, with the results of the investment presented on a net basis as a component of income tax expense (benefit).  ASU 2014-01 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements.

ØReclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure – In January 2014, the FASB also issued ASU No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in-substance foreclosure or repossession of residential real estate property occurs, requiring a creditor to reclassify the loan to other real estate.  According to ASU 2014-04, a consumer mortgage loan should be reclassified to other real estate either upon the creditor obtaining legal title to the real estate collateral or when the borrower voluntarily conveys all interest in the real estate property to the creditor through a deed in lieu of foreclosure or similar legal agreement.  ASU 2014-04 also clarifies that a creditor should not delay reclassification when a borrower has a legal right of redemption.  ASU 2014-04 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements as our practice was already consistent with the new guidance.

ØElimination of Extraordinary Reporting – In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.  ASU No. 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item.  The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards.  The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  A reporting entity may apply the amendments prospectively.  A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The effective date is the same for both public business entities and all other entities.  For an entity that prospectively applies the guidance, the only required transition disclosure will be to disclose, if applicable, both the nature and the amount of an item included in income from continuing operations after adoption that adjusts an extraordinary item previously classified and presented before the date of adoption.  An entity retrospectively applying the guidance should provide the disclosures in paragraphs 250-10-50-1 through 50-2.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

ØIntangibles – Goodwill and Other – Internal-Use Software – In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).  The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license.  If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.  If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract.  The guidance will not change GAAP for a customer's accounting for service contracts.  In addition, the guidance in this update supersedes paragraph 350-40-25-16.  Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets.  For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015.  Early adoption is permitted.  An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively.  For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change.  For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change.  We are currently evaluating the impact of adopting ASU 2015-05, but we do not expect the adoption to have a material effect on CTBI's consolidated financial statements.

ØBusiness Combinations: Simplifying the Accounting Measurement-Period Adjustments – In September 2015, the FASB issued ASU No. 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.  Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period.  To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined.  The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.  Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates.  Such differences could be material to the consolidated financial statements.

We believe the application of accounting policies and the estimates required therein are reasonable.  These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change.  Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

We have identified the following critical accounting policies:

Investments –Management determines the classification of securities at purchase.  We classify securities into held-to-maturity, trading, or available-for-sale categories.  Held-to-maturity securities are those which we have the positive intent and ability to hold to maturity and are reported at amortized cost.  In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investment Securities, investments in debt securities that are not classified as held-to-maturity and equity securities that have readily determinable fair values shall be classified in one of the following categories and measured at fair value in the statement of financial position:

a. Trading securities. Securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) shall be classified as trading securities. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.

b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities.

We do not have any securities that are classified as trading securities.  Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders' equity, net of tax.  If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related.

Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost.  Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists.  Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment.  The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity.  Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment.  If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the CTBI's results of operations and financial condition.

Loans –Loans with the ability and the intent to be held until maturity and/or payoff are reported at the carrying value of unpaid principal reduced by unearned interest, an allowance for loan and lease losses, and unamortized deferred fees or costs.  Income is recorded on the level yield basis.  Interest accrual is discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower's financial condition is such that collection of interest is doubtful.  Any loan greater than 90 days past due must be well secured and in the process of collection to continue accruing interest.  Cash payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured.  Loans are not reclassified as accruing until principal and interest payments remain current for a period of time, generally six months, and future payments appear reasonably certain.  Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired.  A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.

Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment.

Allowance for Loan and Lease Losses –We maintain an allowance for loan and lease losses ("ALLL") at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio.  Since arriving at an appropriate ALLL involves a high degree of management judgment, we use an ongoing quarterly analysis to develop a range of estimated losses.  In accordance with accounting principles generally accepted in the United States, we use our best estimate within the range of potential credit loss to determine the appropriate ALLL.  Credit losses are charged and recoveries are credited to the ALLL.

We utilize an internal risk grading system for commercial credits.  Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review.  The borrower's cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated.  The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan.  We evaluate the collectability of both principal and interest when assessing the need for loss provision.  Historical loss rates are analyzed and applied to other commercial loans not subject to specific allocations.  The ALLL allocation for this pool of commercial loans is established based on the historical average, maximum, minimum, and median loss ratios.

A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded.  The associated ALLL for these loans is measured under ASC 450, Contingencies.

When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made.  If the balance of the loan exceeds the fair value of the collateral, the loan is placed on non-accrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed.  When the foreclosed collateral has been legally assigned to CTBI, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell of the collateral then transferred to other real estate owned or other repossessed assets.  When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due.

All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent.  If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent.  For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual.  Foreclosure proceedings are normally initiated after 120 days.  When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off.

Historical loss rates for loans are adjusted for significant factors that, in management's judgment, reflect the impact of any current conditions on loss recognition.  We use twelve rolling quarters for our historical loss rate analysis.  Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year's charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions.  Based upon management's judgment, "best case," "worst case," and "most likely" scenarios are determined.  The total of each of these weighted factors is then applied against the applicable portion of the portfolio and the ALLL is adjusted accordingly to approximate the most likely scenario.  Management continually reevaluates the other subjective factors included in its ALLL analysis.

Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs.  Additionally, periodic updated appraisals are obtained on unsold foreclosed properties.  When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs.  Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  All revenues and expenses related to the carrying of other real estate owned are recognized by a charge to income.

Income Taxes – Income tax expense is based on the taxes due on the consolidated tax return plus deferred taxes based on the expected future tax benefits and consequences of temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the consolidated financial statements.  During the nine months ended September 30, 2015 and 2014, CTBI did not recognize a significant amount of interest expense or penalties in connection with income taxes.

CTBI is currently under IRS examination of its 2013 corporate income tax return.  Management does not expect that the results of the examination will have a material effect on our financial condition.  While management believes our tax positions are appropriate, the IRS could challenge our positions as a part of this examination.

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Loans, Troubled Debt Restructurings Segregated by Class (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Sep. 30, 2015 USD ($) Loan	Sep. 30, 2014 USD ($) Loan	Dec. 31, 2014 USD ($) Loan
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	6	9	18	17	22
Post-Modification Outstanding Balance	$ 1,650	$ 2,941	$ 2,601	$ 4,082	$ 7,898
Past due period for loan to be considered in default, minimum			90 days
Defaulted restructured loans, number of loans | Loan	2	2	5	3
Defaulted restructured loans, recorded investment	$ 31	$ 3,486	$ 680	$ 4,067
Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,485	2,874	2,146	3,166	6,982
Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	0	0	0	0	0
Combination [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	$ 165	$ 67	$ 455	$ 916	$ 916
Commercial [Member] | Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan		1		1	1
Post-Modification Outstanding Balance		$ 7		$ 7	$ 7
Commercial [Member] | Construction [Member] | Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance		7		7	7
Commercial [Member] | Construction [Member] | Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance		0		0	0
Commercial [Member] | Construction [Member] | Combination [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance		$ 0		$ 0	$ 0
Commercial [Member] | Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	5	4	13	7	11
Post-Modification Outstanding Balance	$ 511	$ 2,483	$ 1,118	$ 2,714	$ 5,775
Defaulted restructured loans, number of loans | Loan	2	1	4	1
Defaulted restructured loans, recorded investment	$ 31	$ 2,892	$ 390	$ 2,892
Commercial [Member] | Real Estate [Member] | Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	346	2,416	953	2,647	5,707
Commercial [Member] | Real Estate [Member] | Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	0	0	0	0	0
Commercial [Member] | Real Estate [Member] | Combination [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	$ 165	$ 67	$ 165	$ 67	$ 68
Commercial [Member] | Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan	1	4	4	7	8
Post-Modification Outstanding Balance	$ 1,139	$ 451	$ 1,193	$ 512	$ 1,268
Commercial [Member] | Other [Member] | Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,139	451	1,193	512	1,268
Commercial [Member] | Other [Member] | Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	0	0	0	0	0
Commercial [Member] | Other [Member] | Combination [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	$ 0	$ 0	$ 0	$ 0	$ 0
Residential [Member] | Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Loan			1	2	2
Post-Modification Outstanding Balance			$ 290	$ 849	$ 848
Defaulted restructured loans, number of loans | Loan	0	1	1	2
Defaulted restructured loans, recorded investment	$ 0	$ 594	$ 290	$ 1,175
Residential [Member] | Real Estate [Member] | Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance			0	0	0
Residential [Member] | Real Estate [Member] | Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance			0	0	0
Residential [Member] | Real Estate [Member] | Combination [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance			$ 290	$ 849	$ 848

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Repurchase Agreements (Tables)

9 Months Ended

Sep. 30, 2015

Repurchase Agreements [Abstract]

Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase by Class of Collateral Pledged

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2015 and December 31, 2014 is presented in the following tables:

	September 30, 2015
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	19,986	$	22,400	$	0	$	32,258	$	74,644
State and political subdivisions		59,293		2,330		508		9,401		71,532
U.S. government sponsored agency mortgage-backed securities		30,302		24,270		209		55,196		109,977
Total	$	109,581	$	49,000	$	717	$	96,855	$	256,153

	December 31, 2014
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	6,790	$	1,000	$	6,834	$	14,076	$	28,700
State and political subdivisions		59,451		0		1,839		12,474		73,764
U.S. government sponsored agency mortgage-backed securities		39,315		0		15,871		77,536		132,722
Total	$	105,556	$	1,000	$	24,544	$	104,086	$	235,186

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Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Allowance for loan losses [Roll Forward]
Beginning balance	$ 35,190	$ 33,617	$ 34,447	$ 34,008	$ 34,008
Provision charged to expense	2,520	3,300	6,740	5,380	8,755
Losses charged off	2,899	3,470	7,819	7,644	11,436
Recoveries	729	643	2,172	2,346	3,120
Ending balance	35,540	34,090	35,540	34,090	34,447
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	1,348	2,218	1,348	2,218	1,742
Collectively evaluated for impairment	34,192	31,872	34,192	31,872	32,705
Loans Ending balance [Abstract]
Individually evaluated for impairment	48,339	66,911	48,339	66,911	59,068
Collectively evaluated for impairment	2,772,121	2,616,994	2,772,121	2,616,994	2,674,756
Commercial [Member] | Construction [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	2,622	2,916	2,896	3,396	3,396
Provision charged to expense	151	84	(127)	(406)	(513)
Losses charged off	0	0	2	0	15
Recoveries	3	15	9	25	28
Ending balance	2,776	3,015	2,776	3,015	2,896
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	719	734	719	734	734
Collectively evaluated for impairment	2,057	2,281	2,057	2,281	2,162
Loans Ending balance [Abstract]
Individually evaluated for impairment	8,080	9,399	8,080	9,399	9,627
Collectively evaluated for impairment	98,775	110,849	98,775	110,849	112,315
Commercial [Member] | Real Estate [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	13,022	14,402	13,618	14,535	14,535
Provision charged to expense	293	1,255	577	1,489	941
Losses charged off	364	834	1,290	1,452	2,163
Recoveries	2	12	48	263	305
Ending balance	12,953	14,835	12,953	14,835	13,618
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	317	1,273	317	1,273	827
Collectively evaluated for impairment	12,636	13,562	12,636	13,562	12,791
Loans Ending balance [Abstract]
Individually evaluated for impairment	31,153	39,080	31,153	39,080	34,357
Collectively evaluated for impairment	966,501	892,375	966,501	892,375	914,269
Commercial [Member] | Equipment Lease Financing [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	113	102	119	121	121
Provision charged to expense	(9)	25	(15)	6	(2)
Losses charged off	0	0	0	0	0
Recoveries	0	0	0	0	0
Ending balance	104	127	104	127	119
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	104	127	104	127	119
Loans Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	9,146	10,055	9,146	10,055	10,344
Commercial [Member] | Other [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	4,414	4,677	4,263	5,238	5,238
Provision charged to expense	153	959	1,054	1,059	1,545
Losses charged off	431	1,169	1,495	2,074	3,141
Recoveries	149	154	463	398	621
Ending balance	4,285	4,621	4,285	4,621	4,263
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	312	211	312	211	181
Collectively evaluated for impairment	3,973	4,410	3,973	4,410	4,082
Loans Ending balance [Abstract]
Individually evaluated for impairment	7,917	16,558	7,917	16,558	13,807
Collectively evaluated for impairment	338,401	330,477	338,401	330,477	338,241
Residential [Member] | Construction [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	570	450	534	397	397
Provision charged to expense	61	(6)	184	161	258
Losses charged off	20	7	110	123	123
Recoveries	0	0	3	2	2
Ending balance	611	437	611	437	534
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	611	437	611	437	534
Loans Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	62,226	62,105	62,226	62,105	62,412
Residential [Member] | Real Estate [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	6,965	5,142	6,094	4,939	4,939
Provision charged to expense	564	8	2,023	412	2,173
Losses charged off	647	216	1,260	437	1,058
Recoveries	52	10	77	30	40
Ending balance	6,934	4,944	6,934	4,944	6,094
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	6,934	4,944	6,934	4,944	6,094
Loans Ending balance [Abstract]
Individually evaluated for impairment	1,189	1,874	1,189	1,874	1,277
Collectively evaluated for impairment	704,998	701,449	704,998	701,449	711,188
Residential [Member] | Home Equity [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	867	643	756	601	601
Provision charged to expense	(38)	42	128	110	265
Losses charged off	0	65	67	93	115
Recoveries	41	1	53	3	5
Ending balance	870	621	870	621	756
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	870	621	870	621	756
Loans Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	88,624	88,291	88,624	88,291	88,335
Consumer [Member] | Consumer Direct [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	1,541	1,597	1,574	1,127	1,127
Provision charged to expense	382	216	804	1,031	1,207
Losses charged off	436	298	1,101	980	1,326
Recoveries	113	96	323	433	566
Ending balance	1,600	1,611	1,600	1,611	1,574
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	1,600	1,611	1,600	1,611	1,574
Loans Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	125,847	121,367	125,847	121,367	122,136
Consumer [Member] | Consumer Indirect [Member]
Allowance for loan losses [Roll Forward]
Beginning balance	5,076	3,688	4,593	3,654	3,654
Provision charged to expense	963	717	2,112	1,518	2,881
Losses charged off	1,001	881	2,494	2,485	3,495
Recoveries	369	355	1,196	1,192	1,553
Ending balance	5,407	3,879	5,407	3,879	4,593
Allowance for Loan Losses Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	5,407	3,879	5,407	3,879	4,593
Loans Ending balance [Abstract]
Individually evaluated for impairment	0	0	0	0	0
Collectively evaluated for impairment	$ 377,603	$ 300,026	$ 377,603	$ 300,026	$ 315,516

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in thousands except per share data)	2015		2014		2015		2014
Numerator:
Net income	$	11,222	$	10,924	$	34,562	$	33,259
Denominator:
Basic earnings per share:
Weighted average shares		17,440		17,326		17,420		17,317
Diluted earnings per share:
Effect of dilutive stock options and restricted stock grants		51		76		52		78
Adjusted weighted average shares		17,491		17,402		17,472		17,395
Earnings per share:
Basic earnings per share	$	0.64	$	0.63	$	1.98	$	1.92
Diluted earnings per share		0.64		0.63		1.98		1.91

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2015

Stock-Based Compensation [Abstract]

Stock-Based Compensation

Note 2 – Stock-Based Compensation

CTBI's compensation expense related to stock option grants was $10 thousand and $3 thousand, respectively, for the three months ended September 30, 2015 and 2014, and $29 thousand and $8 thousand, respectively, for the nine months ended September 30, 2015 and 2014.  Restricted stock expense for the three months ended September 30, 2015 and 2014 was $186 thousand and $202 thousand, respectively, including $20 thousand and $30 thousand in dividends paid for each period.  Restricted stock expense for the nine months ended September 30, 2015 and 2014 was $554 thousand and $540 thousand, respectively, including $59 thousand and $90 thousand in dividends.  As of September 30, 2015, there was a total of $0.2 million of unrecognized compensation expense related to unvested stock option awards that will be recognized as expense as the awards vest over a weighted average period of 4.1 years and a total of $0.5 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 2.0 years.

There were no shares of restricted stock granted during the three months ended September 30, 2015 and 2014.  There were 10,582 and 4,561 shares of restricted stock granted during the nine months ended September 30, 2015 and 2014, respectively.  The restrictions on the restricted stock lapse ratably over four years or in the event of a change in control of CTBI or the death of the participant.  In the event of the disability of the participant, the restrictions will lapse on a pro rata basis.  The Compensation Committee of the Board of Directors will have discretion to review and revise restrictions applicable to a participant's restricted stock in the event of the participant's retirement.  There were no options granted to purchase shares of CTBI common stock during the three months ended September 30, 2015.  There were 20,000 options granted during the nine months ended September 30, 2015.  There were 10,000 options granted during the three and nine months ended September 30, 2014.

The fair value of options granted during the nine months ended September 30, 2015, were established at the date of grant using a Black-Scholes option pricing model with the weighted average assumptions as follows:

	Nine Months Ended September 30
	2015			2014
Expected dividend yield		3.72	%		3.40	%
Risk-free interest rate		1.54	%		2.01	%
Expected volatility		30.77	%		30.77	%
Expected term (in years)		7.0			7.0
Weighted average fair value of options	$	6.60		$	7.76

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Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets:
Securities available-for-sale at amortized cost	$ 571,539	$ 638,395
Securities held-to-maturity at fair value	1,651	1,644
Core deposit intangible, accumulated amortization	$ 8,285	$ 8,138
Shareholders' equity:
Preferred stock, shares authorized (in shares)	300,000	300,000
Common stock, par value (in dollars per share)	$ 5	$ 5
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares outstanding (in shares)	17,513,449	17,466,375

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2015

Stock-Based Compensation [Abstract]

Schedule of Weighted Average Assumptions Used for Estimating the Grant-Date Fair Value of Each Option Grant

The fair value of options granted during the nine months ended September 30, 2015, were established at the date of grant using a Black-Scholes option pricing model with the weighted average assumptions as follows:

	Nine Months Ended September 30
	2015			2014
Expected dividend yield		3.72	%		3.40	%
Risk-free interest rate		1.54	%		2.01	%
Expected volatility		30.77	%		30.77	%
Expected term (in years)		7.0			7.0
Weighted average fair value of options	$	6.60		$	7.76

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Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	COMMUNITY TRUST BANCORP INC /KY/
Entity Central Index Key	0000350852
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		17,519,343
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

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Securities (Tables)

9 Months Ended

Sep. 30, 2015

Securities [Abstract]

Amortized Cost and Fair Value of Securities

The amortized cost and fair value of securities at September 30, 2015 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	201,461	$	990	$	(401	)	$	202,050
State and political subdivisions		132,249		3,718		(508	)		135,459
U.S. government sponsored agency mortgage-backed securities		212,829		2,473		(1,126	)		214,176
Total debt securities		546,539		7,181		(2,035	)		551,685
CRA investment funds		25,000		28		0			25,028
Total available-for-sale securities	$	571,539	$	7,209	$	(2,035	)	$	576,713

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(11	)	$	469
State and political subdivisions		1,181		1		0			1,182
Total held-to-maturity securities	$	1,661	$	1	$	(11	)	$	1,651

The amortized cost and fair value of securities at December 31, 2014 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	190,563	$	509	$	(2,140	)	$	188,932
State and political subdivisions		133,951		3,973		(466	)		137,458
U.S. government sponsored agency mortgage-backed securities		288,881		2,876		(2,850	)		288,907
Total debt securities		613,395		7,358		(5,456	)		615,297
CRA investment funds		25,000		0		(111	)		24,889
Total available-for-sale securities	$	638,395	$	7,358	$	(5,567	)	$	640,186

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	480	$	0	$	(19	)	$	461
State and political subdivisions		1,182		1		0			1,183
Total held-to-maturity securities	$	1,662	$	1	$	(19	)	$	1,644

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at September 30, 2015 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	30,015	$	30,092	$	0	$	0
Due after one through five years		128,605		129,937		1,181		1,182
Due after five through ten years		124,654		126,142		480		469
Due after ten years		50,436		51,338		0		0
U.S. government sponsored agency mortgage-backed securities		212,829		214,176		0		0
Total debt securities		546,539		551,685		1,661		1,651
CRA investment funds		25,000		25,028		0		0
Total securities	$	571,539	$	576,713	$	1,661	$	1,651

Available for Sale Securities and Held-to-Maturity Securities, Continuous Unrealized Loss Position

The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of September 30, 2015 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	22,178	$	(13	)	$	22,165
State and political subdivisions		17,068		(179	)		16,889
U.S. government sponsored agency mortgage-backed securities		50,213		(207	)		50,006
Total debt securities		89,459		(399	)		89,060
CRA investment funds		0		(0	)		0
Total <12 months temporarily impaired AFS securities		89,459		(399	)		89,060
12 Months or More
U.S. Treasury and government agencies		54,773		(388	)		54,385
State and political subdivisions		7,297		(329	)		6,968
U.S. government sponsored agency mortgage-backed securities		51,291		(919	)		50,372
Total debt securities		113,361		(1,636	)		111,725
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		113,361		(1,636	)		111,725
Total
U.S. Treasury and government agencies		76,951		(401	)		76,550
State and political subdivisions		24,365		(508	)		23,857
U.S. government sponsored agency mortgage-backed securities		101,504		(1,126	)		100,378
Total debt securities		202,820		(2,035	)		200,785
CRA investment funds		0		(0	)		0
Total temporarily impaired AFS securities	$	202,820	$	(2,035	)	$	200,785

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(11	)	$	469
Total temporarily impaired HTM securities	$	480	$	(11	)	$	469

The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2014 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	31,185	$	(87	)	$	31,098
State and political subdivisions		8,800		(23	)		8,777
U.S. government sponsored agency mortgage-backed securities		50,115		(442	)		49,673
Total debt securities		90,100		(552	)		89,548
CRA investment funds		25,000		(111	)		24,889
Total <12 months temporarily impaired AFS securities		115,100		(663	)		114,437
12 Months or More
U.S. Treasury and government agencies		65,209		(2,053	)		63,156
State and political subdivisions		21,308		(443	)		20,865
U.S. government sponsored agency mortgage-backed securities		86,389		(2,408	)		83,981
Total debt securities		172,906		(4,904	)		168,002
CRA investment funds		0		0			0
Total ≥12 months temporarily impaired AFS securities		172,906		(4,904	)		168,002
Total
U.S. Treasury and government agencies		96,394		(2,140	)		94,254
State and political subdivisions		30,108		(466	)		29,642
U.S. government sponsored agency mortgage-backed securities		136,504		(2,850	)		133,654
Total debt securities		263,006		(5,456	)		257,550
CRA investment funds		25,000		(111	)		24,889
Total temporarily impaired AFS securities	$	288,006	$	(5,567	)	$	282,439

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
12 Months or More
U.S. Treasury and government agencies	$	480	$	(19	)	$	461
Total temporarily impaired HTM securities	$	480	$	(19	)	$	461

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Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income:
Interest and fees on loans, including loans held for sale	$ 32,847	$ 32,191	$ 97,691	$ 95,741
Interest and dividends on securities
Taxable	2,044	2,763	7,007	8,616
Tax exempt	679	664	2,032	1,912
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock	252	252	756	882
Other, including interest on federal funds sold	90	87	234	310
Total interest income	35,912	35,957	107,720	107,461
Interest expense:
Interest on deposits	2,412	2,475	7,077	7,409
Interest on repurchase agreements and other short-term borrowings	231	205	689	614
Interest on advances from Federal Home Loan Bank	9	6	33	17
Interest on long-term debt	295	283	869	850
Total interest expense	2,947	2,969	8,668	8,890
Net interest income	32,965	32,988	99,052	98,571
Provision for loan losses	2,520	3,300	6,740	5,380
Net interest income after provision for loan losses	30,445	29,688	92,312	93,191
Noninterest income:
Service charges on deposit accounts	6,348	6,321	17,976	17,739
Gains on sales of loans, net	462	303	1,575	781
Trust and wealth management income	2,297	2,395	6,902	6,703
Loan related fees	641	1,128	2,747	2,573
Bank owned life insurance	581	523	1,623	1,473
Brokerage revenue	395	505	1,058	1,709
Securities gains (losses)	12	(34)	142	(145)
Other noninterest income	1,299	865	2,976	2,210
Total noninterest income	12,035	12,006	34,999	33,043
Noninterest expense:
Officer salaries and employee benefits	3,288	2,584	9,179	8,206
Other salaries and employee benefits	10,687	10,881	32,063	31,950
Occupancy, net	1,942	2,007	5,937	6,108
Equipment	746	831	2,295	2,669
Data processing	1,577	2,017	5,204	5,875
Bank franchise tax	1,272	1,208	3,816	3,625
Legal fees	505	558	1,604	1,912
Professional fees	524	491	1,497	1,331
FDIC insurance	606	575	1,798	1,782
Other real estate owned provision and expense	1,289	707	2,525	2,948
Repossession expense	347	322	947	863
Other noninterest expense	4,751	3,682	12,800	10,711
Total noninterest expense	27,534	25,863	79,665	77,980
Income before income taxes	14,946	15,831	47,646	48,254
Income taxes	3,724	4,907	13,084	14,995
Net income	11,222	10,924	34,562	33,259
Unrealized holding gains (losses) on securities available-for-sale:
Unrealized holding gains (losses) arising during the period	3,463	(2,009)	3,525	10,642
Less: Reclassification adjustments for realized gains (losses) included in net income	12	(34)	142	(145)
Tax (benefit) expense	1,208	(691)	1,184	3,776
Other comprehensive income (loss), net of tax	2,243	(1,284)	2,199	7,011
Comprehensive income	$ 13,465	$ 9,640	$ 36,761	$ 40,270
Basic earnings per share (in dollars per share)	$ 0.64	$ 0.63	$ 1.98	$ 1.92
Diluted earnings per share (in dollars per share)	$ 0.64	$ 0.63	$ 1.98	$ 1.91
Weighted average shares outstanding-basic (in shares)	17,440	17,326	17,420	17,317
Weighted average shares outstanding-diluted (in shares)	17,491	17,402	17,472	17,395
Dividends declared per share (in dollars per share)	$ 0.310	$ 0.300	$ 0.910	$ 0.881

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Repurchase Agreements

9 Months Ended

Sep. 30, 2015

Repurchase Agreements [Abstract]

Repurchase Agreements

Note 7 – Repurchase Agreements

We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet.  Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate.  Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets.

We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty's fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities.  The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities.  Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.  The carrying value of investment securities available for sale pledged as collateral under repurchase agreements totaled $290.7 million and $283.3 million at September 30, 2015 and December 31, 2014, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2015 and December 31, 2014 is presented in the following tables:

	September 30, 2015
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	19,986	$	22,400	$	0	$	32,258	$	74,644
State and political subdivisions		59,293		2,330		508		9,401		71,532
U.S. government sponsored agency mortgage-backed securities		30,302		24,270		209		55,196		109,977
Total	$	109,581	$	49,000	$	717	$	96,855	$	256,153

	December 31, 2014
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	6,790	$	1,000	$	6,834	$	14,076	$	28,700
State and political subdivisions		59,451		0		1,839		12,474		73,764
U.S. government sponsored agency mortgage-backed securities		39,315		0		15,871		77,536		132,722
Total	$	105,556	$	1,000	$	24,544	$	104,086	$	235,186

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Other Real Estate Owned

9 Months Ended

Sep. 30, 2015

Other Real Estate Owned [Abstract]

Other Real Estate Owned

Note 6 – Other Real Estate Owned

Activity for other real estate owned was as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance of other real estate owned	$	36,698		$	33,062		$	36,776		$	39,188
New assets acquired		3,725			1,803			9,986			5,267
Capitalized costs		0			0			85			0
Fair value adjustments		(784	)		(241	)		(1,146	)		(1,402	)
Sale of assets		(4,985	)		(1,877	)		(11,047	)		(10,306	)
Ending balance of other real estate owned	$	34,654		$	32,747		$	34,654		$	32,747

Carrying costs and fair value adjustments associated with foreclosed properties for the three months ended September 30, 2015 and 2014 were $1.3 million and $0.7 million, respectively.  Carrying costs and fair value adjustments associated with foreclosed properties for the nine months ended September 30, 2015 and 2014 were $2.5 million and $2.9 million.

The major classifications of foreclosed properties are shown in the following table:

(in thousands)	September 30, 2015		December 31, 2014
1-4 family	$	7,866	$	10,337
Agricultural/farmland		116		116
Construction/land development/other		17,856		18,735
Multifamily		838		1,289
Non-farm/non-residential		7,978		6,299
Total foreclosed properties	$	34,654	$	36,776

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Fair Market Value of Financial Assets and Liabilities (Tables)

9 Months Ended

Sep. 30, 2015

Fair Market Value of Financial Assets and Liabilities [Abstract]

Fair Value Assets Measured on Recurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	202,050	$	19,997	$	182,053	$	0
State and political subdivisions		135,459		0		135,459		0
U.S. government sponsored agency mortgage-backed securities		214,176		0		214,176		0
CRA investment funds		25,028		25,028		0		0
Mortgage servicing rights		3,030		0		0		3,030

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	188,932	$	492	$	188,440	$	0
State and political subdivisions		137,458		0		137,458		0
U.S. government sponsored agency mortgage-backed securities		288,907		0		288,907		0
CRA investment funds		24,889		24,889		0		0
Mortgage servicing rights		2,968		0		0		2,968

Reconciliation of the Beginning and Ending Balance of Recurring Fair Value Measurement Using Significant Unobservable (level 3) Inputs

Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2015 and 2014:

Mortgage Servicing Rights
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance	$	3,235		$	3,062		$	2,968		$	3,424
Total recognized gains (losses)
Included in net income		(228	)		80			(37	)		(212	)
Issues		146			89			443			234
Settlements		(123	)		(119	)		(344	)		(334	)
Ending balance	$	3,030		$	3,112		$	3,030		$	3,112
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	(228	)	$	80		$	(37	)	$	(212	)

Realized and Unrealized Gains and Losses for Items Included in Net Income in the Consolidated Statement of Income

Realized and unrealized gains and losses for items reflected in the tables above are included in net income in the consolidated statements of income as follows:

Noninterest Income
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Total gains (losses)	$	(351	)	$	(39	)	$	(381	)	$	(546	)

Fair Value Measurements of Recognized Assets Measured on Nonrecurring Basis

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	2,195	$	0	$	0	$	2,195
Other real estate/assets owned		4,015		0		0		4,015

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	4,665	$	0	$	0	$	4,665
Other real estate/assets owned		6,472		0		0		6,472

Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2015 and December 31, 2014.

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at September 30, 2015		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	3,030	Discount cash flows, computer pricing model	Constant prepayment rate		6.1% - 23.9% (11.3%)
				Probability of default		0.0% - 100.0% (2.7%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	2,195	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	4,015	Market comparable properties	Comparability adjustments		5.0% - 30.0% (10.5%)

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2014		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	2,968	Discount cash flows, computer pricing model	Constant prepayment rate		4.6% - 25.1% (11.3%)
				Probability of default		0.0% - 100.0% (3.6%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	4,665	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	6,472	Market comparable properties	Comparability adjustments		3.0% - 67.0% (18.0%)

Fair Value of Financial Instruments and Levels within the Fair Value Hierarchy of the Valuation Techniques

The following table presents estimated fair value of CTBI's financial instruments as of September 30, 2015 and indicates the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	163,192	$	163,192	$	0	$	0
Certificates of deposit in other banks		5,759		0		5,769		0
Securities available-for-sale		576,713		45,025		531,688		0
Securities held-to-maturity		1,661		0		1,651		0
Loans held for sale		1,983		2,029		0		0
Loans, net		2,784,920		0		0		2,793,430
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,887		0		4,887		0
Accrued interest receivable		13,581		0		13,581		0
Mortgage servicing rights		3,030		0		0		3,030
Financial liabilities:
Deposits	$	2,975,229	$	737,657	$	2,219,060	$	0
Repurchase agreements		256,153		0		0		256,120
Federal funds purchased		9,215		0		9,215		0
Advances from Federal Home Loan Bank		1,084		0		1,233		0
Long-term debt		61,341		0		0		49,073
Accrued interest payable		1,641		0		1,641		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

The following table presents estimated fair value of CTBI's financial instruments as of December 31, 2014 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)			Fair Value Measurements at December 31, 2014 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	105,517	$	105,517	$	0	$	0
Certificates of deposit in other banks		8,197		0		8,213		0
Securities available-for-sale		640,186		25,381		614,805		0
Securities held-to-maturity		1,662		0		1,644		0
Loans held for sale		2,264		2,321		0		0
Loans, net		2,699,377		0		0		2,691,906
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,869		0		4,869		0
Accrued interest receivable		13,548		0		13,548		0
Mortgage servicing rights		2,968		0		0		2,968
Financial liabilities:
Deposits	$	2,874,257	$	677,626	$	2,192,848	$	0
Repurchase agreements		235,186		0		0		235,193
Federal funds purchased		11,041		0		11,041		0
Advances from Federal Home Loan Bank		61,170		0		61,106		0
Long-term debt		61,341		0		0		35,615
Accrued interest payable		908		0		908		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

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Loans (Tables)

9 Months Ended

Sep. 30, 2015

Loans [Abstract]

Summary of 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 net premiums on acquired loans, are summarized as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial construction	$	106,855	$	121,942
Commercial secured by real estate		997,654		948,626
Equipment lease financing		9,146		10,344
Commercial other		346,318		352,048
Real estate construction		62,226		62,412
Real estate mortgage		706,187		712,465
Home equity		88,624		88,335
Consumer direct		125,847		122,136
Consumer indirect		377,603		315,516
Total loans	$	2,820,460	$	2,733,824

Nonaccrual Loans Segregated by Class of Loans

Nonaccrual loans segregated by class of loans were as follows:

(in thousands)	September 30 2015		December 31 2014
Commercial:
Commercial construction	$	3,443	$	4,339
Commercial secured by real estate		4,134		6,725
Commercial other		1,412		2,423
Residential:
Real estate construction		311		602
Real estate mortgage		5,108		6,513
Home equity		200		369
Consumer:
Consumer direct		114		0
Total nonaccrual loans	$	14,722	$	20,971

Bank's Loan Portfolio Aging Analysis, Segregated by Class

The following tables present CTBI's loan portfolio aging analysis, segregated by class, as of September 30, 2015 and December 31, 2014:

	September 30, 2015
(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	$	251	$	7	$	5,133	$	5,391	$	101,464	$	106,855	$	1,690
Commercial secured by real estate		5,348		1,401		6,574		13,323		984,331		997,654		4,766
Equipment lease financing		0		0		0		0		9,146		9,146		0
Commercial other		870		417		4,152		5,439		340,879		346,318		2,904
Residential:
Real estate construction		609		129		717		1,455		60,771		62,226		420
Real estate mortgage		1,517		4,637		10,906		17,060		689,127		706,187		7,111
Home equity		516		122		749		1,387		87,237		88,624		602
Consumer:
Consumer direct		1,055		260		89		1,404		124,443		125,847		89
Consumer indirect		2,503		404		419		3,326		374,277		377,603		419
Total	$	12,669	$	7,377	$	28,739	$	48,785	$	2,771,675	$	2,820,460	$	18,001

	December 31, 2014
(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	$	40	$	31	$	6,171	$	6,242	$	115,700	$	121,942	$	1,863
Commercial secured by real estate		2,471		1,595		10,763		14,829		933,797		948,626		4,682
Equipment lease financing		0		0		0		0		10,344		10,344		0
Commercial other		826		55		4,205		5,086		346,962		352,048		2,367
Residential:
Real estate construction		92		144		985		1,221		61,191		62,412		383
Real estate mortgage		1,005		5,171		13,049		19,225		693,240		712,465		7,742
Home equity		779		197		703		1,679		86,656		88,335		422
Consumer:
Consumer direct		1,307		295		141		1,743		120,393		122,136		141
Consumer indirect		2,304		586		385		3,275		312,241		315,516		385
Total	$	8,824	$	8,074	$	36,402	$	53,300	$	2,680,524	$	2,733,824	$	17,985

*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 table presents the credit risk profile of CTBI's commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of September 30, 2015 and December 31, 2014:

(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Leases		Commercial Other		Total
September 30, 2015
Pass	$	85,878	$	885,941	$	9,146	$	296,254	$	1,277,219
Watch		6,615		69,393		0		41,547		117,555
OAEM		4,205		8,286		0		1,001		13,492
Substandard		8,999		33,162		0		6,451		48,612
Doubtful		1,158		872		0		1,065		3,095
Total	$	106,855	$	997,654	$	9,146	$	346,318	$	1,459,973
December 31, 2014
Pass	$	101,314	$	834,751	$	10,344	$	307,270	$	1,253,679
Watch		9,857		69,123		0		36,114		115,094
OAEM		934		10,973		0		881		12,788
Substandard		5,647		27,901		0		5,772		39,320
Doubtful		4,190		5,878		0		2,011		12,079
Total	$	121,942	$	948,626	$	10,344	$	352,048	$	1,432,960

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

The following table presents the credit risk profile of the CTBI's residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of September 30, 2015 and December 31, 2014:

(in thousands)	Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
September 30, 2015
Performing	$	61,495	$	693,968	$	87,822	$	125,644	$	377,184	$	1,346,113
Nonperforming (1)		731		12,219		802		203		419		14,374
Total	$	62,226	$	706,187	$	88,624	$	125,847	$	377,603	$	1,360,487
December 31, 2014
Performing	$	61,427	$	698,210	$	87,544	$	121,995	$	315,131	$	1,284,307
Nonperforming (1)		985		14,255		791		141		385		16,557
Total	$	62,412	$	712,465	$	88,335	$	122,136	$	315,516	$	1,300,864

(1)  A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual.

Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans

The following tables present impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2015, December 31, 2014, and September 30, 2014:

	September 30, 2015
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	4,669	$	4,669	$	0
Commercial secured by real estate		30,318		31,551		0
Commercial other		7,163		8,804		0
Real estate mortgage		1,189		1,189		0
Loans with a specific valuation allowance:
Commercial construction		3,411		3,412		719
Commercial secured by real estate		835		1,075		317
Commercial other		754		935		312
Totals:
Commercial construction		8,080		8,081		719
Commercial secured by real estate		31,153		32,626		317
Commercial other		7,917		9,739		312
Real estate mortgage		1,189		1,189		0
Total	$	48,339	$	51,635	$	1,348

	Three Months Ended				Nine Months Ended
	September 30, 2015				September 30, 2015
(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	$	4,864	$	41	$	5,142	$	160
Commercial secured by real estate		30,713		316		30,357		985
Commercial other		7,312		73		9,182		201
Real estate mortgage		1,183		13		1,090		37
Loans with a specific valuation allowance:
Commercial construction		3,445		0		3,712		0
Commercial secured by real estate		841		6		2,244		7
Commercial other		776		1		788		1
Totals:
Commercial construction		8,309		41		8,854		160
Commercial secured by real estate		31,554		322		32,601		992
Commercial other		8,088		74		9,970		202
Real estate mortgage		1,183		13		1,090		37
Total	$	49,134	$	450	$	52,515	$	1,391

	December 31, 2014
(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	$	5,653	$	5,654	$	0	$	5,415	$	205
Commercial secured by real estate		31,639		33,268		0		34,650		1,180
Commercial other		13,069		14,597		0		15,663		783
Real estate mortgage		1,277		1,277		0		1,507		53
Loans with a specific valuation allowance:
Commercial construction		3,974		3,974		734		4,216		0
Commercial secured by real estate		2,718		2,876		827		4,376		11
Commercial other		738		862		181		531		1
Totals:
Commercial construction		9,627		9,628		734		9,631		205
Commercial secured by real estate		34,357		36,144		827		39,026		1,191
Commercial other		13,807		15,459		181		16,194		784
Real estate mortgage		1,277		1,277		0		1,507		53
Total	$	59,068	$	62,508	$	1,742	$	66,358	$	2,233

	September 30, 2014
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance
Loans without a specific valuation allowance:
Commercial construction	$	5,250	$	5,251	$	0
Commercial secured by real estate		33,010		34,086		0
Commercial other		15,972		18,247		0
Real estate mortgage		1,874		1,875		0
Loans with a specific valuation allowance:
Commercial construction		4,149		4,149		734
Commercial secured by real estate		6,070		6,219		1,273
Commercial other		586		710		211
Totals:
Commercial construction		9,399		9,400		734
Commercial secured by real estate		39,080		40,305		1,273
Commercial other		16,558		18,957		211
Real estate mortgage		1,874		1,875		0
Total	$	66,911	$	70,537	$	2,218

	Three Months Ended				Nine Months Ended
	September 30, 2014				September 30, 2014
(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	$	5,259	$	44	$	5,330	$	172
Commercial secured by real estate		33,290		261		34,464		858
Commercial other		17,577		248		16,421		619
Real estate mortgage		1,860		12		1,583		44
Loans with a specific valuation allowance:
Commercial construction		4,213		0		4,270		0
Commercial secured by real estate		6,076		5		4,912		9
Commercial other		587		0		460		0
Totals:
Commercial construction		9,472		44		9,600		172
Commercial secured by real estate		39,366		266		39,376		867
Commercial other		18,164		248		16,881		619
Real estate mortgage		1,860		12		1,583		44
Total	$	68,862	$	570	$	67,440	$	1,702

*Cash basis interest is substantially the same as interest income recognized.

Troubled Debt Restructuring

Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and nine months ended September 30, 2015 and 2014 and the year ended December 31, 2014:

	Three Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		5	$	346	$	0	$	165	$	511
Commercial other		1		1,139		0		0		1,139
Total troubled debt restructurings		6	$	1,485	$	0	$	165	$	1,650

	Nine Months Ended September 30, 2015
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial secured by real estate		13	$	953	$	0	$	165	$	1,118
Commercial other		4		1,193		0		0		1,193
Residential:
Real estate mortgage		1		0		0		290		290
Total troubled debt restructurings		18	$	2,146	$	0	$	455	$	2,601

	Three Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		4		2,416		0		67		2,483
Commercial other		4		451		0		0		451
Total troubled debt restructurings		9	$	2,874	$	0	$	67	$	2,941

	Nine Months Ended September 30, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		7		2,647		0		67		2,714
Commercial other		7		512		0		0		512
Residential:
Real estate mortgage		2		0		0		849		849
Total troubled debt restructurings		17	$	3,166	$	0	$	916	$	4,082

	Year Ended December 31, 2014
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	7	$	0	$	0	$	7
Commercial secured by real estate		11		5,707		0		68		5,775
Commercial other		8		1,268		0		0		1,268
Residential:
Real estate mortgage		2		0		0		848		848
Total troubled debt restructurings		22	$	6,982	$	0	$	916	$	7,898

Summary of Defaulted Restructured Loans

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.

(in thousands)	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		2	$	31		4	$	390
Residential:
Real estate mortgage		0		0		1		290
Total defaulted restructured loans		2	$	31		5	$	680

(in thousands)	Three Months Ended September 30, 2014				Nine Months Ended September 30, 2014
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		1	$	2,892		1	$	2,892
Residential:
Real estate mortgage		1		594		2		1,175
Total defaulted restructured loans		2	$	3,486		3	$	4,067

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Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2015

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

Note 10 – Accumulated Other Comprehensive Income

Unrealized gains (losses) on AFS securities

Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and nine months ended September 30, 2015 and 2014 were:

	Amounts Reclassified from AOCI
(in thousands)	Three Months Ended September 30					Nine Months Ended September 30
	2015		2014			2015		2014
Affected line item in the statements of income
Securities gains (losses)	$	12	$	(34	)	$	142	$	(145	)
Tax expense (benefit)		4		(12	)		50		(51	)
Total reclassifications out of AOCI	$	8	$	(22	)	$	92	$	(94	)

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Fair Market Value of Financial Assets and Liabilities

9 Months Ended

Sep. 30, 2015

Fair Market Value of Financial Assets and Liabilities [Abstract]

Fair Market Value of Financial Assets and Liabilities

Note 8 – Fair Market Value of Financial Assets and Liabilities

Fair Value Measurements

ASC 820, Fair Value Measurements, defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  ASC 820 applies whenever other standards require (or permit) assets or liabilities to be measured at fair value but does not expand the use of fair value in any new circumstances.  Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs.  In this standard, the FASB clarifies the principle that fair value should be based on the assumptions market participants would use when pricing the asset or liability.  In support of this principle, ASC 820 establishes a fair value hierarchy that prioritizes the information used to develop those assumptions.  The fair value hierarchy is as follows:

Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities.

Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity's own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

Recurring Measurements

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	202,050	$	19,997	$	182,053	$	0
State and political subdivisions		135,459		0		135,459		0
U.S. government sponsored agency mortgage-backed securities		214,176		0		214,176		0
CRA investment funds		25,028		25,028		0		0
Mortgage servicing rights		3,030		0		0		3,030

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – recurring basis
Available-for-sale securities:
U.S. Treasury and government agencies	$	188,932	$	492	$	188,440	$	0
State and political subdivisions		137,458		0		137,458		0
U.S. government sponsored agency mortgage-backed securities		288,907		0		288,907		0
CRA investment funds		24,889		24,889		0		0
Mortgage servicing rights		2,968		0		0		2,968

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.  These valuation methodologies were applied to all of CTBI's financial assets carried at fair value.  CTBI had no liabilities measured and recorded at fair value as of September 30, 2015 and December 31, 2014.  There have been no significant changes in the valuation techniques during the quarter ended September 30, 2015.  For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Available-for-Sale Securities

Securities classified as available-for-sale are reported at fair value on a recurring basis.  U.S. Treasury and government agencies and CTBI's CRA investment funds are classified as Level 1 of the valuation hierarchy where quoted market prices are available in the active market on which the individual securities are traded.

If quoted market prices are not available, CTBI obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement.  CTBI reviews the pricing quarterly to verify the reasonableness of the pricing.  The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond's terms and conditions, among other factors.  U.S. Treasury and government agencies, state and political subdivisions, and U.S. government sponsored agency mortgage-backed securities are classified as Level 2 inputs.

In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.  Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States.  As of September 30, 2015, CTBI does not own any securities classified as Level 3 inputs.

Mortgage Servicing Rights

Mortgage servicing rights do not trade in an active, open market with readily observable prices.  CTBI reports mortgage servicing rights at fair value on a recurring basis with subsequent remeasurement of MSRs based on change in fair value.

In determining fair value, CTBI utilizes the expertise of an independent third party.  Accordingly, fair value is determined by the independent third party by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand.  Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy.  Fair value determinations for Level 3 measurements of mortgage servicing rights are tested for impairment on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States.  See the table below for inputs and valuation techniques used for Level 3 mortgage servicing rights.

Transfers between Levels

There were no transfers between Levels 1, 2, and 3 as of September 30, 2015.

Level 3 Reconciliation

Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2015 and 2014:

Mortgage Servicing Rights
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance	$	3,235		$	3,062		$	2,968		$	3,424
Total recognized gains (losses)
Included in net income		(228	)		80			(37	)		(212	)
Issues		146			89			443			234
Settlements		(123	)		(119	)		(344	)		(334	)
Ending balance	$	3,030		$	3,112		$	3,030		$	3,112
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date	$	(228	)	$	80		$	(37	)	$	(212	)

Realized and unrealized gains and losses for items reflected in the tables above are included in net income in the consolidated statements of income as follows:

Noninterest Income
	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Total gains (losses)	$	(351	)	$	(39	)	$	(381	)	$	(546	)

Nonrecurring Measurements

The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of September 30, 2015 and December 31, 2014 and indicate the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	2,195	$	0	$	0	$	2,195
Other real estate/assets owned		4,015		0		0		4,015

			Fair Value Measurements at December 31, 2014 Using
(in thousands)	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets measured – nonrecurring basis
Impaired loans (collateral dependent)	$	4,665	$	0	$	0	$	4,665
Other real estate/assets owned		6,472		0		0		6,472

Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy.  For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below.

Impaired Loans (Collateral Dependent)

The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell.  Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy.

CTBI considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value.  Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer.  Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer.  Appraisers are selected from the list of approved appraisers maintained by management.  The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral.  These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results.

Loans considered impaired under ASC 310-35, Impairment of a Loan, are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement.  Impaired loans are subject to nonrecurring fair value adjustments to reflect subsequent (i) partial write-downs that are based on the observable market price or current appraised value of the collateral or (ii) the full charge-off of the loan carrying value.  Quarter-to-date fair value adjustments on impaired loans disclosed above were $0.3 million for the quarters ended September 30, 2015 and December 31, 2014 compared to $1.3 million for the quarter ended September 30, 2014.  Year-to-date adjustments were $0.9 million for the nine months ended September 30, 2015, $0.4 million for the year ended December 31, 2014, and $1.5 million for the nine months ended September 30, 2014.

Other Real Estate Owned

In accordance with the provisions of ASC 360, Property, Plant, and Equipment, other real estate owned (OREO) is carried at the lower of fair value at acquisition date or current estimated fair value, less estimated cost to sell when the real estate is acquired.  Estimated fair value of OREO is based on appraisals or evaluations.  OREO is classified within Level 3 of the fair value hierarchy.  Long-lived assets are subject to nonrecurring fair value adjustments to reflect subsequent partial write-downs that are based on the observable market price or current appraised value of the collateral.  Quarter-to-date fair value adjustments on other real estate/assets owned were decreases of $0.8 million, $0.3 million, and $0.2 million for the quarters ended September 30, 2015, December 31, 2014, and September 30, 2014, respectively.  Year-to-date adjustments were decreases of $1.1 million for the nine months ended September 30, 2015, $1.7 million for the year ended December 31, 2014, and $1.4 million for the nine months ended September 30, 2014.

Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  Appraisers are selected from the list of approved appraisers maintained by management.

Unobservable (Level 3) Inputs

The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2015 and December 31, 2014.

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at September 30, 2015		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	3,030	Discount cash flows, computer pricing model	Constant prepayment rate		6.1% - 23.9% (11.3%)
				Probability of default		0.0% - 100.0% (2.7%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	2,195	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	4,015	Market comparable properties	Comparability adjustments		5.0% - 30.0% (10.5%)

(in thousands)	Quantitative Information about Level 3 Fair Value Measurements
	Fair Value at December 31, 2014		Valuation Technique(s)	Unobservable Input	Range (Weighted Average)
Mortgage servicing rights	$	2,968	Discount cash flows, computer pricing model	Constant prepayment rate		4.6% - 25.1% (11.3%)
				Probability of default		0.0% - 100.0% (3.6%)
				Discount rate		10.0% - 11.5% (10.1%)
Impaired loans (collateral-dependent)	$	4,665	Market comparable properties	Marketability discount		5.0% - 10.0% (7.0%)
Other real estate/assets owned	$	6,472	Market comparable properties	Comparability adjustments		3.0% - 67.0% (18.0%)

Sensitivity of Significant Unobservable Inputs

The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement.

Mortgage Servicing Rights

Market value for mortgage servicing rights is derived based on unobservable inputs, such as prepayment speeds of the underlying loans generated using the Andrew Davidson Prepayment Model, FHLMC/FNMA guidelines, the weighted-average life of the loan, the discount rate, the weighted average coupon, and the weighted average default rate.  Significant increases (decreases) in either of those inputs in isolation would result in a significantly lower (higher) fair value measurement.  Generally, a change in the assumption used for prepayment speeds is accompanied by a directionally opposite change in the assumption for interest rates.

Fair Value of Financial Instruments

The following table presents estimated fair value of CTBI's financial instruments as of September 30, 2015 and indicates the level within the fair value hierarchy of the valuation techniques.

			Fair Value Measurements at September 30, 2015 Using
(in thousands)	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	163,192	$	163,192	$	0	$	0
Certificates of deposit in other banks		5,759		0		5,769		0
Securities available-for-sale		576,713		45,025		531,688		0
Securities held-to-maturity		1,661		0		1,651		0
Loans held for sale		1,983		2,029		0		0
Loans, net		2,784,920		0		0		2,793,430
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,887		0		4,887		0
Accrued interest receivable		13,581		0		13,581		0
Mortgage servicing rights		3,030		0		0		3,030
Financial liabilities:
Deposits	$	2,975,229	$	737,657	$	2,219,060	$	0
Repurchase agreements		256,153		0		0		256,120
Federal funds purchased		9,215		0		9,215		0
Advances from Federal Home Loan Bank		1,084		0		1,233		0
Long-term debt		61,341		0		0		49,073
Accrued interest payable		1,641		0		1,641		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

The following table presents estimated fair value of CTBI's financial instruments as of December 31, 2014 and indicates the level within the fair value hierarchy of the valuation techniques.

(in thousands)			Fair Value Measurements at December 31, 2014 Using
	Carrying Amount		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial assets:
Cash and cash equivalents	$	105,517	$	105,517	$	0	$	0
Certificates of deposit in other banks		8,197		0		8,213		0
Securities available-for-sale		640,186		25,381		614,805		0
Securities held-to-maturity		1,662		0		1,644		0
Loans held for sale		2,264		2,321		0		0
Loans, net		2,699,377		0		0		2,691,906
Federal Home Loan Bank stock		17,927		0		17,927		0
Federal Reserve Bank stock		4,869		0		4,869		0
Accrued interest receivable		13,548		0		13,548		0
Mortgage servicing rights		2,968		0		0		2,968
Financial liabilities:
Deposits	$	2,874,257	$	677,626	$	2,192,848	$	0
Repurchase agreements		235,186		0		0		235,193
Federal funds purchased		11,041		0		11,041		0
Advances from Federal Home Loan Bank		61,170		0		61,106		0
Long-term debt		61,341		0		0		35,615
Accrued interest payable		908		0		908		0
Unrecognized financial instruments:
Letters of credit	$	0	$	0	$	0	$	0
Commitments to extend credit		0		0		0		0
Forward sale commitments		0		0		0		0

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and cash equivalents – The carrying amount approximates fair value.

Certificates of deposit in other banks – Fair values are based on quoted market prices or dealer quotes for similar instruments.

Securities held-to-maturity – Fair values are based on quoted market prices, if available.  If a quoted price is not available, fair value is estimated using quoted prices for similar securities.  The fair value estimate is provided to management from a third party using modeling assumptions specific to each type of security that are reviewed and approved by management.  Quarterly sampling of fair values provided by additional third parties supplement the fair value review process.

Loans held for sale – The fair value is predetermined at origination based on sale price.

Loans (net of the allowance for loan and lease losses) – The fair value of fixed rate loans and variable rate mortgage loans is estimated by discounting the future cash flows using current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.  For other variable rate loans, the carrying amount approximates fair value.

Federal Home Loan Bank stock – The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions of the Federal Home Loan Bank.

Federal Reserve Bank stock – The carrying value of Federal Reserve Bank stock approximates fair value based on the redemption provisions of the Federal Reserve Bank.

Accrued interest receivable – The carrying amount approximates fair value.

Deposits – The fair value of fixed maturity time deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities.  For deposits including demand deposits, savings accounts, NOW accounts, and certain money market accounts, the carrying value approximates fair value.

Repurchase agreements – The fair value is estimated by discounting future cash flows using current rates.

Federal funds purchased – The carrying amount approximates fair value.

Advances from Federal Home Loan Bank – The fair value of these fixed-maturity advances is estimated by discounting future cash flows using rates currently offered for advances of similar remaining maturities.

Long-term debt – The fair value is estimated by discounting future cash flows using current rates.

Accrued interest payable – The carrying amount approximates fair value.

Commitments to originate loans, forward sale commitments, letters of credit, and lines of credit – The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties.  For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates.  The fair value of forward sale commitments is estimated based on current market prices for loans of similar terms and credit quality.  The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date.  The fair values of these commitments are not material.

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Earnings Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note 9 – Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended				Nine Months Ended
	September 30				September 30
(in thousands except per share data)	2015		2014		2015		2014
Numerator:
Net income	$	11,222	$	10,924	$	34,562	$	33,259
Denominator:
Basic earnings per share:
Weighted average shares		17,440		17,326		17,420		17,317
Diluted earnings per share:
Effect of dilutive stock options and restricted stock grants		51		76		52		78
Adjusted weighted average shares		17,491		17,402		17,472		17,395
Earnings per share:
Basic earnings per share	$	0.64	$	0.63	$	1.98	$	1.92
Diluted earnings per share		0.64		0.63		1.98		1.91

There were no options to purchase common shares that were excluded from the diluted calculations above for the three and nine months ended September 30, 2015.  In addition to in-the-money stock options, unvested restricted stock grants were also used in the calculation of diluted earnings per share based on the treasury method.  Options to purchase 63,270 common shares at a weighted average price of $35.41 were excluded from the diluted calculations above for the three months ended September 30, 2014.  There were no options to purchase common shares that were excluded from the diluted calculations above for the nine months ended September 30, 2014.

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2015

Summary of Significant Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation – The unaudited condensed consolidated financial statements include the accounts of CTBI and its separate and distinct, wholly owned subsidiaries Community Trust Bank, Inc. (the "Bank") and Community Trust and Investment Company.  All significant intercompany transactions have been eliminated in consolidation.

Reclassifications

Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year classifications.  These reclassifications had no effect on net income.

All share data has been adjusted for the 10% stock dividend issued on June 2, 2014.

New Accounting Standards

New Accounting Standards –

ØAccounting for Investments in Qualified Affordable Housing Projects –In January 2014, the FASB issued ASU No. 2014-01, Investments—Equity Method and Joint Ventures (Topic 323):  Accounting for Investments in Qualified Affordable Housing Projects, which enables companies that invest in affordable housing projects that qualify for the low-income housing tax credit (LIHTC) to elect to use the proportional amortization method if certain conditions are met.  Under the proportional amortization method, the initial investment cost of the project is amortized in proportion to the amount of tax credits and benefits received, with the results of the investment presented on a net basis as a component of income tax expense (benefit).  ASU 2014-01 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements.

ØReclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure – In January 2014, the FASB also issued ASU No. 2014-04, Receivables—Troubled Debt Restructurings by Creditors (Subtopic 310-40):  Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, which clarifies when an in-substance foreclosure or repossession of residential real estate property occurs, requiring a creditor to reclassify the loan to other real estate.  According to ASU 2014-04, a consumer mortgage loan should be reclassified to other real estate either upon the creditor obtaining legal title to the real estate collateral or when the borrower voluntarily conveys all interest in the real estate property to the creditor through a deed in lieu of foreclosure or similar legal agreement.  ASU 2014-04 also clarifies that a creditor should not delay reclassification when a borrower has a legal right of redemption.  ASU 2014-04 is effective for interim and annual periods beginning after December 15, 2014.  The adoption of this ASU did not have a material impact on CTBI's consolidated financial statements as our practice was already consistent with the new guidance.

ØElimination of Extraordinary Reporting – In January 2015, the FASB issued ASU No. 2015-01, Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items.  ASU No. 2015-01 eliminates from U.S. GAAP the concept of an extraordinary item.  The FASB issued this ASU as part of its initiative to reduce complexity in accounting standards.  The objective of the simplification initiative is to identify, evaluate, and improve areas of U.S. GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to the users of financial statements.  The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  A reporting entity may apply the amendments prospectively.  A reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements.  Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  The effective date is the same for both public business entities and all other entities.  For an entity that prospectively applies the guidance, the only required transition disclosure will be to disclose, if applicable, both the nature and the amount of an item included in income from continuing operations after adoption that adjusts an extraordinary item previously classified and presented before the date of adoption.  An entity retrospectively applying the guidance should provide the disclosures in paragraphs 250-10-50-1 through 50-2.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

ØIntangibles – Goodwill and Other – Internal-Use Software – In April 2015, the FASB issued ASU No. 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40).  The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license.  If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.  If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract.  The guidance will not change GAAP for a customer's accounting for service contracts.  In addition, the guidance in this update supersedes paragraph 350-40-25-16.  Consequently, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets.  For public business entities, the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015.  Early adoption is permitted.  An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively.  For prospective transition, the only disclosure requirements at transition are the nature of and reason for the change in accounting principle, the transition method, and a qualitative description of the financial statement line items affected by the change.  For retrospective transition, the disclosure requirements at transition include the requirements for prospective transition and quantitative information about the effects of the accounting change.  We are currently evaluating the impact of adopting ASU 2015-05, but we do not expect the adoption to have a material effect on CTBI's consolidated financial statements.

ØBusiness Combinations: Simplifying the Accounting Measurement-Period Adjustments – In September 2015, the FASB issued ASU No. 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.  Topic 805 requires that an acquirer retrospectively adjust provisional amounts recognized in a business combination, during the measurement period.  To simplify the accounting for adjustments made to provisional amounts, the amendments in the Update require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined.  The acquirer is required to also record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  In addition an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this Update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this Update with earlier application permitted for financial statements that have not been issued.  The adoption of this ASU is not expected to have a material impact on CTBI's consolidated financial statements.

Critical Accounting Policies and Estimates

Critical Accounting Policies and Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes.  Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates.  Such differences could be material to the consolidated financial statements.

We believe the application of accounting policies and the estimates required therein are reasonable.  These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change.  Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates.

We have identified the following critical accounting policies:

Investments

Investments –Management determines the classification of securities at purchase.  We classify securities into held-to-maturity, trading, or available-for-sale categories.  Held-to-maturity securities are those which we have the positive intent and ability to hold to maturity and are reported at amortized cost.  In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investment Securities, investments in debt securities that are not classified as held-to-maturity and equity securities that have readily determinable fair values shall be classified in one of the following categories and measured at fair value in the statement of financial position:

a. Trading securities. Securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) shall be classified as trading securities. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price.

b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities.

We do not have any securities that are classified as trading securities.  Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders' equity, net of tax.  If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related.

Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost.  Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists.  Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment.  The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity.  Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment.  If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the CTBI's results of operations and financial condition.

Loans

Loans –Loans with the ability and the intent to be held until maturity and/or payoff are reported at the carrying value of unpaid principal reduced by unearned interest, an allowance for loan and lease losses, and unamortized deferred fees or costs.  Income is recorded on the level yield basis.  Interest accrual is discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower's financial condition is such that collection of interest is doubtful.  Any loan greater than 90 days past due must be well secured and in the process of collection to continue accruing interest.  Cash payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured.  Loans are not reclassified as accruing until principal and interest payments remain current for a period of time, generally six months, and future payments appear reasonably certain.  Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired.  A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider.

Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment.

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses –We maintain an allowance for loan and lease losses ("ALLL") at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio.  Since arriving at an appropriate ALLL involves a high degree of management judgment, we use an ongoing quarterly analysis to develop a range of estimated losses.  In accordance with accounting principles generally accepted in the United States, we use our best estimate within the range of potential credit loss to determine the appropriate ALLL.  Credit losses are charged and recoveries are credited to the ALLL.

We utilize an internal risk grading system for commercial credits.  Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review.  The borrower's cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated.  The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan.  We evaluate the collectability of both principal and interest when assessing the need for loss provision.  Historical loss rates are analyzed and applied to other commercial loans not subject to specific allocations.  The ALLL allocation for this pool of commercial loans is established based on the historical average, maximum, minimum, and median loss ratios.

A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded.  The associated ALLL for these loans is measured under ASC 450, Contingencies.

When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made.  If the balance of the loan exceeds the fair value of the collateral, the loan is placed on non-accrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed.  When the foreclosed collateral has been legally assigned to CTBI, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell of the collateral then transferred to other real estate owned or other repossessed assets.  When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due.

All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent.  If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent.  For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made.  If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual.  Foreclosure proceedings are normally initiated after 120 days.  When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off.

Historical loss rates for loans are adjusted for significant factors that, in management's judgment, reflect the impact of any current conditions on loss recognition.  We use twelve rolling quarters for our historical loss rate analysis.  Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year's charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions.  Based upon management's judgment, "best case," "worst case," and "most likely" scenarios are determined.  The total of each of these weighted factors is then applied against the applicable portion of the portfolio and the ALLL is adjusted accordingly to approximate the most likely scenario.  Management continually reevaluates the other subjective factors included in its ALLL analysis.

Other Real Estate Owned

Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs.  Additionally, periodic updated appraisals are obtained on unsold foreclosed properties.  When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs.  Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months.  All revenues and expenses related to the carrying of other real estate owned are recognized by a charge to income.

Income Taxes

Income Taxes – Income tax expense is based on the taxes due on the consolidated tax return plus deferred taxes based on the expected future tax benefits and consequences of temporary differences between carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Any interest and penalties incurred in connection with income taxes are recorded as a component of income tax expense in the consolidated financial statements.  During the nine months ended September 30, 2015 and 2014, CTBI did not recognize a significant amount of interest expense or penalties in connection with income taxes.

CTBI is currently under IRS examination of its 2013 corporate income tax return.  Management does not expect that the results of the examination will have a material effect on our financial condition.  While management believes our tax positions are appropriate, the IRS could challenge our positions as a part of this examination.

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Loans, Impaired Loans, Average Investments in Impaired Loans, and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Loans with a specific valuation allowance [Abstract]
Specific Allowance		$ 1,348	$ 2,218	$ 1,348	$ 2,218	$ 1,742
Total impaired loans [Abstract]
Recorded balance		48,339	66,911	48,339	66,911	59,068
Unpaid Contractual Principal Balance		51,635	70,537	51,635	70,537	62,508
Specific Allowance		1,348	2,218	1,348	2,218	1,742
Average Investment in Impaired Loans		49,134	68,862	52,515	67,440	66,358
Interest Income Recognized	[1]	450	570	1,391	1,702	2,233
Commercial [Member] | Construction [Member]
Loans without a specific valuation allowance [Abstract]
Recorded Balance		4,669	5,250	4,669	5,250	5,653
Unpaid Contractual Principal Balance		4,669	5,251	4,669	5,251	5,654
Average Investment in Impaired Loans		4,864	5,259	5,142	5,330	5,415
Interest Income Recognized	[1]	41	44	160	172	205
Loans with a specific valuation allowance [Abstract]
Recorded Balance		3,411	4,149	3,411	4,149	3,974
Unpaid Contractual Principal Balance		3,412	4,149	3,412	4,149	3,974
Specific Allowance		719	734	719	734	734
Average Investment in Impaired Loans		3,445	4,213	3,712	4,270	4,216
Interest Income Recognized	[1]	0	0	0	0	0
Total impaired loans [Abstract]
Recorded balance		8,080	9,399	8,080	9,399	9,627
Unpaid Contractual Principal Balance		8,081	9,400	8,081	9,400	9,628
Specific Allowance		719	734	719	734	734
Average Investment in Impaired Loans		8,309	9,472	8,854	9,600	9,631
Interest Income Recognized	[1]	41	44	160	172	205
Commercial [Member] | Real Estate [Member]
Loans without a specific valuation allowance [Abstract]
Recorded Balance		30,318	33,010	30,318	33,010	31,639
Unpaid Contractual Principal Balance		31,551	34,086	31,551	34,086	33,268
Average Investment in Impaired Loans		30,713	33,290	30,357	34,464	34,650
Interest Income Recognized	[1]	316	261	985	858	1,180
Loans with a specific valuation allowance [Abstract]
Recorded Balance		835	6,070	835	6,070	2,718
Unpaid Contractual Principal Balance		1,075	6,219	1,075	6,219	2,876
Specific Allowance		317	1,273	317	1,273	827
Average Investment in Impaired Loans		841	6,076	2,244	4,912	4,376
Interest Income Recognized	[1]	6	5	7	9	11
Total impaired loans [Abstract]
Recorded balance		31,153	39,080	31,153	39,080	34,357
Unpaid Contractual Principal Balance		32,626	40,305	32,626	40,305	36,144
Specific Allowance		317	1,273	317	1,273	827
Average Investment in Impaired Loans		31,554	39,366	32,601	39,376	39,026
Interest Income Recognized	[1]	322	266	992	867	1,191
Commercial [Member] | Other [Member]
Loans without a specific valuation allowance [Abstract]
Recorded Balance		7,163	15,972	7,163	15,972	13,069
Unpaid Contractual Principal Balance		8,804	18,247	8,804	18,247	14,597
Average Investment in Impaired Loans		7,312	17,577	9,182	16,421	15,663
Interest Income Recognized	[1]	73	248	201	619	783
Loans with a specific valuation allowance [Abstract]
Recorded Balance		754	586	754	586	738
Unpaid Contractual Principal Balance		935	710	935	710	862
Specific Allowance		312	211	312	211	181
Average Investment in Impaired Loans		776	587	788	460	531
Interest Income Recognized	[1]	1	0	1	0	1
Total impaired loans [Abstract]
Recorded balance		7,917	16,558	7,917	16,558	13,807
Unpaid Contractual Principal Balance		9,739	18,957	9,739	18,957	15,459
Specific Allowance		312	211	312	211	181
Average Investment in Impaired Loans		8,088	18,164	9,970	16,881	16,194
Interest Income Recognized	[1]	74	248	202	619	784
Residential [Member] | Real Estate [Member]
Loans without a specific valuation allowance [Abstract]
Recorded Balance		1,189	1,874	1,189	1,874	1,277
Unpaid Contractual Principal Balance		1,189	1,875	1,189	1,875	1,277
Average Investment in Impaired Loans		1,183	1,860	1,090	1,583	1,507
Interest Income Recognized	[1]	13	12	37	44	53
Loans with a specific valuation allowance [Abstract]
Specific Allowance		0	0	0	0	0
Total impaired loans [Abstract]
Recorded balance		1,189	1,874	1,189	1,874	1,277
Unpaid Contractual Principal Balance		1,189	1,875	1,189	1,875	1,277
Specific Allowance		0	0	0	0	0
Average Investment in Impaired Loans		1,183	1,860	1,090	1,583	1,507
Interest Income Recognized	[1]	$ 13	$ 12	$ 37	$ 44	$ 53

[1] Cash basis interest is substantially the same as interest income recognized.

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Other Real Estate Owned (Tables)

9 Months Ended

Sep. 30, 2015

Other Real Estate Owned [Abstract]

Activity for Other Real Estate Owned

Activity for other real estate owned was as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2015			2014			2015			2014
Beginning balance of other real estate owned	$	36,698		$	33,062		$	36,776		$	39,188
New assets acquired		3,725			1,803			9,986			5,267
Capitalized costs		0			0			85			0
Fair value adjustments		(784	)		(241	)		(1,146	)		(1,402	)
Sale of assets		(4,985	)		(1,877	)		(11,047	)		(10,306	)
Ending balance of other real estate owned	$	34,654		$	32,747		$	34,654		$	32,747

Major Classifications of Foreclosed Properties

The major classifications of foreclosed properties are shown in the following table:

(in thousands)	September 30, 2015		December 31, 2014
1-4 family	$	7,866	$	10,337
Agricultural/farmland		116		116
Construction/land development/other		17,856		18,735
Multifamily		838		1,289
Non-farm/non-residential		7,978		6,299
Total foreclosed properties	$	34,654	$	36,776

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Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2015 Payment Quarter	Jun. 02, 2014
Summary of Significant Accounting Policies [Abstract]
Stock dividend issued		10.00%
Past due period after which loans must be well secured and in the process of collection to continue accruing interest	90 days
Minimum threshold period for not reclassifying loans as accruing loans	6 months
Financing Receivable, Allowance for Credit Losses [Line Items]
Number of monthly payments before loan charge off | Payment	5
Current value assessment period for past due loans secured against real estate	90 days
Foreclosure proceedings initiated	120 days
Historical loan loss review period	12
Other real estate owned [Abstract]
Other real estate owned frequency of period reviews minimum	12 months
Other real estate owned typical frequency of period reviews maximum	18 months
Maximum frequency of periodic reviews of real estate owned in general	24 months
Commercial [Member] | Unsecured Commercial Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Charge off threshold for loans considered uncollectible	90 days
Consumer [Member] | Closed-End Consumer Loan [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Charge off threshold for loans considered uncollectible	120 days

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Fair Value of Financial Assets and Liabilities, Quantitative Information about Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Mortgage Servicing Rights [Member] | Minimum [Member]
Unobservable inputs [Abstract]
Constant prepayment rate	6.10%	4.60%
Probability of default	0.00%	0.00%
Discount rate	10.00%	10.00%
Mortgage Servicing Rights [Member] | Maximum [Member]
Unobservable inputs [Abstract]
Constant prepayment rate	23.90%	25.10%
Probability of default	100.00%	100.00%
Discount rate	11.50%	11.50%
Mortgage Servicing Rights [Member] | Weighted Average [Member]
Unobservable inputs [Abstract]
Constant prepayment rate	11.30%	11.30%
Probability of default	2.70%	3.60%
Discount rate	10.10%	10.10%
Mortgage Servicing Rights [Member] | Discount Cash Flows, Computer Pricing Model [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 3,030	$ 2,968
Impaired Loans (Collateral Dependent) [Member] | Minimum [Member]
Unobservable inputs [Abstract]
Marketability discount	5.00%	5.00%
Impaired Loans (Collateral Dependent) [Member] | Maximum [Member]
Unobservable inputs [Abstract]
Marketability discount	10.00%	10.00%
Impaired Loans (Collateral Dependent) [Member] | Weighted Average [Member]
Unobservable inputs [Abstract]
Marketability discount	7.00%	7.00%
Impaired Loans (Collateral Dependent) [Member] | Market Comparable Properties [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 2,195	$ 4,665
Other Real Estate/Asset Owned [Member] | Minimum [Member]
Unobservable inputs [Abstract]
Comparability adjustments	5.00%	3.00%
Other Real Estate/Asset Owned [Member] | Maximum [Member]
Unobservable inputs [Abstract]
Comparability adjustments	30.00%	67.00%
Other Real Estate/Asset Owned [Member] | Weighted Average [Member]
Unobservable inputs [Abstract]
Comparability adjustments	10.50%	18.00%
Other Real Estate/Asset Owned [Member] | Market Comparable Properties [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 4,015	$ 6,472

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Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 34,562	$ 33,259
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	2,977	3,307
Deferred taxes	1,711	1,421
Stock-based compensation	518	548
Excess tax benefits of stock-based compensation	190	22
Provision for loan losses	6,740	5,380
Write-downs of other real estate owned and other repossessed assets	1,146	1,402
Gains on sale of mortgage loans held for sale	(1,575)	(781)
Securities (gains) losses	(142)	145
Losses on sale of assets, net	(115)	(3)
Proceeds from sale of mortgage loans held for sale	63,580	33,240
Funding of mortgage loans held for sale	(61,724)	(31,998)
Amortization of securities premiums and discounts, net	2,552	2,011
Change in cash surrender value of bank owned life insurance	(1,245)	(1,113)
Mortgage servicing rights:
Fair value adjustments	381	546
New servicing assets created	(443)	(234)
Changes in:
Other assets	(9,612)	297
Other liabilities	(1,068)	(943)
Net cash provided by operating activities	38,433	46,506
Certificates of deposit in other banks:
Maturity of certificates of deposit	2,438	389
Securities available-for-sale (AFS):
Purchase of AFS securities	(36,561)	(177,579)
Proceeds from the sales of AFS securities	44,198	112,949
Proceeds from prepayments and maturities of AFS securities	56,809	49,094
Securities held-to-maturity (HTM):
Proceeds from maturities of HTM securities	1	0
Change in loans, net	(98,730)	(73,376)
Purchase of premises and equipment	(1,685)	(1,750)
Proceeds from sale of premises and equipment	232	22
Redemption of stock by Federal Home Loan Bank	0	7,746
Additional investment in Federal Reserve Bank stock	(18)	(1)
Proceeds from sale of other real estate and other repossessed assets	7,563	4,551
Additional investment in other real estate and other repossessed assets	(85)	0
Net cash used in investing activities	(25,838)	(77,955)
Cash flows from financing activities:
Change in deposits, net	100,972	47,107
Change in repurchase agreements, federal funds purchased, and other short-term borrowings, net	19,141	10,677
Advances from Federal Home Loan Bank	70,000	0
Payments on advances from Federal Home Loan Bank	(130,086)	(87)
Issuance of common stock	1,345	930
Repurchase of common stock	(189)	0
Excess tax benefits of stock-based compensation	(190)	(22)
Dividends paid	(15,913)	(15,339)
Net cash provided by financing activities	45,080	43,266
Net increase in cash and cash equivalents	57,675	11,817
Cash and cash equivalents at beginning of period	105,517	106,641
Cash and cash equivalents at end of period	163,192	118,458
Supplemental disclosures:
Income taxes paid	15,199	10,170
Interest paid	7,935	8,058
Non-cash activities:
Loans to facilitate the sale of other real estate and repossessed assets	3,548	5,745
Common stock dividends accrued, paid in subsequent quarter	220	207
Real estate acquired in settlement of loans	$ 9,694	$ 5,267

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Allowance for Loan and Lease Losses

9 Months Ended

Sep. 30, 2015

Allowance for Loan and Lease Losses [Abstract]

Allowance for Loan and Lease Losses

Note 5 – Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan and lease losses ("ALLL") and the recorded investment in loans based on portfolio segment and impairment method for the three and nine months ended September 30, 2015 and 2014 and the twelve months ended December 31, 2014:

	Three Months Ended September 30, 2015
(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	$	2,622	$	13,022	$	113		$	4,414	$	570	$	6,965	$	867		$	1,541	$	5,076	$	35,190
Provision charged to expense		151		293		(9	)		153		61		564		(38	)		382		963		2,520
Losses charged off		0		364		0			431		20		647		0			436		1,001		2,899
Recoveries		3		2		0			149		0		52		41			113		369		729
Ending balance	$	2,776	$	12,953	$	104		$	4,285	$	611	$	6,934	$	870		$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719	$	317	$	0		$	312	$	0	$	0	$	0		$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057	$	12,636	$	104		$	3,973	$	611	$	6,934	$	870		$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080	$	31,153	$	0		$	7,917	$	0	$	1,189	$	0		$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775	$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624		$	125,847	$	377,603	$	2,772,121

	Nine Months Ended September 30, 2015
(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	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Provision charged to expense		(127	)		577		(15	)		1,054		184		2,023		128		804		2,112		6,740
Losses charged off		2			1,290		0			1,495		110		1,260		67		1,101		2,494		7,819
Recoveries		9			48		0			463		3		77		53		323		1,196		2,172
Ending balance	$	2,776		$	12,953	$	104		$	4,285	$	611	$	6,934	$	870	$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719		$	317	$	0		$	312	$	0	$	0	$	0	$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057		$	12,636	$	104		$	3,973	$	611	$	6,934	$	870	$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080		$	31,153	$	0		$	7,917	$	0	$	1,189	$	0	$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775		$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624	$	125,847	$	377,603	$	2,772,121

	Three Months Ended September 30, 2014
(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	$	2,916	$	14,402	$	102	$	4,677	$	450		$	5,142	$	643	$	1,597	$	3,688	$	33,617
Provision charged to expense		84		1,255		25		959		(6	)		8		42		216		717		3,300
Losses charged off		0		834		0		1,169		7			216		65		298		881		3,470
Recoveries		15		12		0		154		0			10		1		96		355		643
Ending balance	$	3,015	$	14,835	$	127	$	4,621	$	437		$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734	$	1,273	$	0	$	211	$	0		$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281	$	13,562	$	127	$	4,410	$	437		$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399	$	39,080	$	0	$	16,558	$	0		$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849	$	892,375	$	10,055	$	330,477	$	62,105		$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	Nine Months Ended September 30, 2014
(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	$	3,396		$	14,535	$	121	$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(406	)		1,489		6		1,059		161		412		110		1,031		1,518		5,380
Losses charged off		0			1,452		0		2,074		123		437		93		980		2,485		7,644
Recoveries		25			263		0		398		2		30		3		433		1,192		2,346
Ending balance	$	3,015		$	14,835	$	127	$	4,621	$	437	$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734		$	1,273	$	0	$	211	$	0	$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281		$	13,562	$	127	$	4,410	$	437	$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399		$	39,080	$	0	$	16,558	$	0	$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849		$	892,375	$	10,055	$	330,477	$	62,105	$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	December 31, 2014
(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	$	3,396		$	14,535	$	121		$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(513	)		941		(2	)		1,545		258		2,173		265		1,207		2,881		8,755
Losses charged off		15			2,163		0			3,141		123		1,058		115		1,326		3,495		11,436
Recoveries		28			305		0			621		2		40		5		566		1,553		3,120
Ending balance	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Ending balance:
Individually evaluated for impairment	$	734		$	827	$	0		$	181	$	0	$	0	$	0	$	0	$	0	$	1,742
Collectively evaluated for impairment	$	2,162		$	12,791	$	119		$	4,082	$	534	$	6,094	$	756	$	1,574	$	4,593	$	32,705
Loans
Ending balance:
Individually evaluated for impairment	$	9,627		$	34,357	$	0		$	13,807	$	0	$	1,277	$	0	$	0	$	0	$	59,068
Collectively evaluated for impairment	$	112,315		$	914,269	$	10,344		$	338,241	$	62,412	$	711,188	$	88,335	$	122,136	$	315,516	$	2,674,756

XML

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense			$ 518	$ 548
Black-Scholes option pricing model, weighted average assumptions [Abstract]
Expected dividend yield			3.72%	3.40%
Risk-free interest rate			1.54%	2.01%
Expected volatility			30.77%	30.77%
Expected term			7 years	7 years
Weighted average fair value of options (in dollars per share)			$ 6.60	$ 7.76
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 10	$ 3	$ 29	$ 8
Unrecognized compensation expense related to unvested stock option awards	$ 200		$ 200
Unrecognized compensation expense, weighted average period			4 years 1 month 6 days
Options granted to purchase shares of CTBI common stock (in shares)	0	10,000	20,000	10,000
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 186	$ 202	$ 554	$ 540
Dividend paid on stock based compensation	20	$ 30	$ 59	$ 90
Unrecognized compensation expense, weighted average period			2 years
Unrecognized compensation expense related to restricted stock grants	$ 500		$ 500
Granted (in shares)	0	0	10,582	4,561
Period of restrictions on stock			4 years	4 years

XML

Other Real Estate Owned, Major Classifications of Foreclosed Properties (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	$ 34,654	$ 36,698	$ 36,776	$ 32,747	$ 33,062	$ 39,188
1-4 Family [Member]
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	7,866		10,337
Agricultural/Farmland [Member]
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	116		116
Construction/Land Development/Other [Member]
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	17,856		18,735
Multifamily [Member]
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	838		1,289
Non-farm/Non-residential [Member]
Schedule of Foreclosed Properties [Line Items]
Total foreclosed properties	$ 7,978		$ 6,299

XML

Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Sep. 30, 2015

Allowance for Loan and Lease Losses [Abstract]

Activity in Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for loan and lease losses ("ALLL") and the recorded investment in loans based on portfolio segment and impairment method for the three and nine months ended September 30, 2015 and 2014 and the twelve months ended December 31, 2014:

	Three Months Ended September 30, 2015
(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	$	2,622	$	13,022	$	113		$	4,414	$	570	$	6,965	$	867		$	1,541	$	5,076	$	35,190
Provision charged to expense		151		293		(9	)		153		61		564		(38	)		382		963		2,520
Losses charged off		0		364		0			431		20		647		0			436		1,001		2,899
Recoveries		3		2		0			149		0		52		41			113		369		729
Ending balance	$	2,776	$	12,953	$	104		$	4,285	$	611	$	6,934	$	870		$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719	$	317	$	0		$	312	$	0	$	0	$	0		$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057	$	12,636	$	104		$	3,973	$	611	$	6,934	$	870		$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080	$	31,153	$	0		$	7,917	$	0	$	1,189	$	0		$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775	$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624		$	125,847	$	377,603	$	2,772,121

	Nine Months Ended September 30, 2015
(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	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Provision charged to expense		(127	)		577		(15	)		1,054		184		2,023		128		804		2,112		6,740
Losses charged off		2			1,290		0			1,495		110		1,260		67		1,101		2,494		7,819
Recoveries		9			48		0			463		3		77		53		323		1,196		2,172
Ending balance	$	2,776		$	12,953	$	104		$	4,285	$	611	$	6,934	$	870	$	1,600	$	5,407	$	35,540
Ending balance:
Individually evaluated for impairment	$	719		$	317	$	0		$	312	$	0	$	0	$	0	$	0	$	0	$	1,348
Collectively evaluated for impairment	$	2,057		$	12,636	$	104		$	3,973	$	611	$	6,934	$	870	$	1,600	$	5,407	$	34,192
Loans
Ending balance:
Individually evaluated for impairment	$	8,080		$	31,153	$	0		$	7,917	$	0	$	1,189	$	0	$	0	$	0	$	48,339
Collectively evaluated for impairment	$	98,775		$	966,501	$	9,146		$	338,401	$	62,226	$	704,998	$	88,624	$	125,847	$	377,603	$	2,772,121

	Three Months Ended September 30, 2014
(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	$	2,916	$	14,402	$	102	$	4,677	$	450		$	5,142	$	643	$	1,597	$	3,688	$	33,617
Provision charged to expense		84		1,255		25		959		(6	)		8		42		216		717		3,300
Losses charged off		0		834		0		1,169		7			216		65		298		881		3,470
Recoveries		15		12		0		154		0			10		1		96		355		643
Ending balance	$	3,015	$	14,835	$	127	$	4,621	$	437		$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734	$	1,273	$	0	$	211	$	0		$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281	$	13,562	$	127	$	4,410	$	437		$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399	$	39,080	$	0	$	16,558	$	0		$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849	$	892,375	$	10,055	$	330,477	$	62,105		$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	Nine Months Ended September 30, 2014
(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	$	3,396		$	14,535	$	121	$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(406	)		1,489		6		1,059		161		412		110		1,031		1,518		5,380
Losses charged off		0			1,452		0		2,074		123		437		93		980		2,485		7,644
Recoveries		25			263		0		398		2		30		3		433		1,192		2,346
Ending balance	$	3,015		$	14,835	$	127	$	4,621	$	437	$	4,944	$	621	$	1,611	$	3,879	$	34,090
Ending balance:
Individually evaluated for impairment	$	734		$	1,273	$	0	$	211	$	0	$	0	$	0	$	0	$	0	$	2,218
Collectively evaluated for impairment	$	2,281		$	13,562	$	127	$	4,410	$	437	$	4,944	$	621	$	1,611	$	3,879	$	31,872
Loans
Ending balance:
Individually evaluated for impairment	$	9,399		$	39,080	$	0	$	16,558	$	0	$	1,874	$	0	$	0	$	0	$	66,911
Collectively evaluated for impairment	$	110,849		$	892,375	$	10,055	$	330,477	$	62,105	$	701,449	$	88,291	$	121,367	$	300,026	$	2,616,994

	December 31, 2014
(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	$	3,396		$	14,535	$	121		$	5,238	$	397	$	4,939	$	601	$	1,127	$	3,654	$	34,008
Provision charged to expense		(513	)		941		(2	)		1,545		258		2,173		265		1,207		2,881		8,755
Losses charged off		15			2,163		0			3,141		123		1,058		115		1,326		3,495		11,436
Recoveries		28			305		0			621		2		40		5		566		1,553		3,120
Ending balance	$	2,896		$	13,618	$	119		$	4,263	$	534	$	6,094	$	756	$	1,574	$	4,593	$	34,447
Ending balance:
Individually evaluated for impairment	$	734		$	827	$	0		$	181	$	0	$	0	$	0	$	0	$	0	$	1,742
Collectively evaluated for impairment	$	2,162		$	12,791	$	119		$	4,082	$	534	$	6,094	$	756	$	1,574	$	4,593	$	32,705
Loans
Ending balance:
Individually evaluated for impairment	$	9,627		$	34,357	$	0		$	13,807	$	0	$	1,277	$	0	$	0	$	0	$	59,068
Collectively evaluated for impairment	$	112,315		$	914,269	$	10,344		$	338,241	$	62,412	$	711,188	$	88,335	$	122,136	$	315,516	$	2,674,756