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Loans (Tables)
 9 Months Ended
Sep. 30, 2018
Loans [Abstract]  
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans
Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:

 
(in thousands)
 
September 30
2018
  
December 31
2017
 
Commercial construction
 
$
81,472
  
$
76,479
 
Commercial secured by real estate
  
1,183,632
   
1,188,680
 
Equipment lease financing
  
1,986
   
3,042
 
Commercial other
  
346,645
   
351,034
 
Real estate construction
  
61,782
   
67,358
 
Real estate mortgage
  
722,022
   
709,570
 
Home equity
  
103,805
   
99,356
 
Consumer direct
  
146,002
   
137,754
 
Consumer indirect
  
530,542
   
489,667
 
Total loans
 
$
3,177,888
  
$
3,122,940
 
Nonaccrual Loans Segregated by Class of Loans
Nonaccrual loans segregated by class of loans were as follows:

 (in thousands)
 
September 30
2018
  
December 31
2017
 
Commercial:
      
Commercial construction
 
$
619
  
$
1,207
 
Commercial secured by real estate
  
5,061
   
7,028
 
Commercial other
  
443
   
934
 
         
Residential:
        
Real estate construction
  
22
   
318
 
Real estate mortgage
  
6,401
   
8,243
 
Home equity
  
486
   
389
 
Total nonaccrual loans
 
$
13,032
  
$
18,119
 
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, 2018 and December 31, 2017:

  
September 30, 2018
 
(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
 
$
127
  
$
116
  
$
551
  
$
794
  
$
80,678
  
$
81,472
  
$
47
 
Commercial secured by real estate
  
5,962
   
8,174
   
6,673
   
20,809
   
1,162,823
   
1,183,632
   
2,453
 
Equipment lease financing
  
0
   
0
   
0
   
0
   
1,986
   
1,986
   
0
 
Commercial other
  
549
   
794
   
287
   
1,630
   
345,015
   
346,645
   
90
 
Residential:
                            
Real estate construction
  
420
   
218
   
33
   
671
   
61,111
   
61,782
   
11
 
Real estate mortgage
  
939
   
4,658
   
9,291
   
14,888
   
707,134
   
722,022
   
4,413
 
Home equity
  
917
   
293
   
593
   
1,803
   
102,002
   
103,805
   
310
 
Consumer:
                            
Consumer direct
  
828
   
355
   
36
   
1,219
   
144,783
   
146,002
   
36
 
Consumer indirect
  
4,405
   
841
   
645
   
5,891
   
524,651
   
530,542
   
645
 
Total
 
$
14,147
  
$
15,449
  
$
18,109
  
$
47,705
  
$
3,130,183
  
$
3,177,888
  
$
8,005
 

  
December 31, 2017
 
(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
 
$
138
  
$
0
  
$
1,238
  
$
1,376
  
$
75,103
  
$
76,479
  
$
31
 
Commercial secured by real estate
  
4,047
   
1,599
   
8,514
   
14,160
   
1,174,520
   
1,188,680
   
2,665
 
Equipment lease financing
  
430
   
0
   
0
   
430
   
2,612
   
3,042
   
0
 
Commercial other
  
835
   
77
   
652
   
1,564
   
349,470
   
351,034
   
87
 
Residential:
                            
Real estate construction
  
224
   
202
   
223
   
649
   
66,709
   
67,358
   
223
 
Real estate mortgage
  
2,064
   
5,029
   
11,605
   
18,698
   
690,872
   
709,570
   
6,293
 
Home equity
  
595
   
178
   
428
   
1,201
   
98,155
   
99,356
   
167
 
Consumer:
                            
Consumer direct
  
983
   
148
   
62
   
1,193
   
136,561
   
137,754
   
62
 
Consumer indirect
  
4,085
   
1,399
   
648
   
6,132
   
483,535
   
489,667
   
648
 
Total
 
$
13,401
  
$
8,632
  
$
23,370
  
$
45,403
  
$
3,077,537
  
$
3,122,940
  
$
10,176
 

*90+ and Accruing are also included in 90+ Days Past Due column.
Credit Risk Profile of the Bank's Commercial Loan Portfolio Based on Rating Category and Payment Activity, Segregated by Class of Loans
The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of September 30, 2018 and December 31, 2017:

 (in thousands)
 
Commercial Construction
  
Commercial Secured by Real Estate
  
Equipment Leases
  
Commercial Other
  
Total
 
September 30, 2018
               
Pass
 
$
74,592
  
$
1,029,800
  
$
1,986
  
$
294,562
  
$
1,400,940
 
Watch
  
3,133
   
74,669
   
0
   
30,020
   
107,822
 
OAEM
  
1,626
   
17,906
   
0
   
6,903
   
26,435
 
Substandard
  
2,121
   
61,146
   
0
   
15,080
   
78,347
 
Doubtful
  
0
   
111
   
0
   
80
   
191
 
Total
 
$
81,472
  
$
1,183,632
  
$
1,986
  
$
346,645
  
$
1,613,735
 
                     
December 31, 2017
                    
Pass
 
$
67,846
  
$
1,053,701
  
$
3,005
  
$
305,655
  
$
1,430,207
 
Watch
  
3,323
   
65,182
   
0
   
29,008
   
97,513
 
OAEM
  
1,304
   
22,401
   
37
   
3,206
   
26,948
 
Substandard
  
3,828
   
47,223
   
0
   
12,947
   
63,998
 
Doubtful
  
178
   
173
   
0
   
218
   
569
 
Total
 
$
76,479
  
$
1,188,680
  
$
3,042
  
$
351,034
  
$
1,619,235
 
Credit Risk Profile of Residential Real Estate and Consumer Loan Portfolio Based on Performing and Nonperforming Status Segregated by Class
The following tables present the credit risk profile of CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of September 30, 2018 and December 31, 2017:

(in thousands)
 
Real Estate Construction
  
Real Estate Mortgage
  
Home Equity
  
Consumer Direct
  
Consumer
Indirect
  
Total
 
September 30, 2018
                  
Performing
 
$
61,749
  
$
711,208
  
$
103,009
  
$
145,966
  
$
529,897
  
$
1,551,829
 
Nonperforming (1)
  
33
   
10,814
   
796
   
36
   
645
   
12,324
 
Total
 
$
61,782
  
$
722,022
  
$
103,805
  
$
146,002
  
$
530,542
  
$
1,564,153
 
                         
December 31, 2017
                        
Performing
 
$
66,817
  
$
695,034
  
$
98,800
  
$
137,692
  
$
489,019
  
$
1,487,362
 
Nonperforming (1)
  
541
   
14,536
   
556
   
62
   
648
   
16,343
 
Total
 
$
67,358
  
$
709,570
  
$
99,356
  
$
137,754
  
$
489,667
  
$
1,503,705
 

(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 table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2018, December 31, 2017, and September 30, 2017:

  
September 30, 2018
 
(in thousands)
 
Recorded Balance
  
Unpaid Contractual Principal Balance
  
Specific Allowance
 
Loans without a specific valuation allowance:
         
Commercial construction
 
$
2,804
  
$
2,804
  
$
0
 
Commercial secured by real estate
  
31,632
   
33,538
   
0
 
Commercial other
  
8,268
   
10,034
   
0
 
Real estate mortgage
  
1,878
   
1,880
   
0
 
             
Loans with a specific valuation allowance:
            
Commercial secured by real estate
  
1,980
   
3,116
   
641
 
Commercial other
  
321
   
321
   
95
 
             
Totals:
            
Commercial construction
  
2,804
   
2,804
   
0
 
Commercial secured by real estate
  
33,612
   
36,654
   
641
 
Commercial other
  
8,589
   
10,355
   
95
 
Real estate mortgage
  
1,878
   
1,880
   
0
 
Total
 
$
46,883
  
$
51,693
  
$
736
 

  
Three Months Ended
  
Nine Months Ended
 
  
September 30, 2018
  
September 30, 2018
 
(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
 
$
2,865
  
$
26
  
$
3,795
  
$
132
 
Commercial secured by real estate
  
30,216
   
349
   
30,588
   
1,073
 
Commercial other
  
8,518
   
125
   
8,857
   
405
 
Real estate construction
  
0
   
0
   
106
   
0
 
Real estate mortgage
  
1,882
   
13
   
1,596
   
24
 
                 
Loans with a specific valuation allowance:
                
Commercial secured by real estate
  
2,005
   
0
   
2,112
   
1
 
Commercial other
  
339
   
8
   
220
   
12
 
                 
Totals:
                
Commercial construction
  
2,865
   
26
   
3,795
   
132
 
Commercial secured by real estate
  
32,221
   
349
   
32,700
   
1,074
 
Commercial other
  
8,857
   
133
   
9,077
   
417
 
Real estate construction
  
0
   
0
   
106
   
0
 
Real estate mortgage
  
1,882
   
13
   
1,596
   
24
 
Total
 
$
45,825
  
$
521
  
$
47,274
  
$
1,647
 

  
Year Ended
December 31, 2017
 
(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
 
$
4,431
  
$
4,439
  
$
0
  
$
4,835
  
$
200
 
Commercial secured by real estate
  
28,480
   
30,365
   
0
   
27,753
   
1,344
 
Equipment lease financing
  
0
   
0
   
0
   
34
   
0
 
Commercial other
  
9,481
   
11,252
   
0
   
10,444
   
539
 
Real estate construction
  
318
   
318
   
0
   
534
   
0
 
Real estate mortgage
  
1,564
   
1,570
   
0
   
1,591
   
36
 
                     
Loans with a specific valuation allowance:
                    
Commercial construction
  
153
   
173
   
25
   
155
   
0
 
Commercial secured by real estate
  
2,985
   
4,095
   
966
   
3,932
   
8
 
Commercial other
  
0
   
0
   
0
   
65
   
0
 
                     
Totals:
                    
Commercial construction
  
4,584
   
4,612
   
25
   
4,990
   
200
 
Commercial secured by real estate
  
31,465
   
34,460
   
966
   
31,685
   
1,352
 
Equipment lease financing
  
0
   
0
   
0
   
34
   
0
 
Commercial other
  
9,481
   
11,252
   
0
   
10,509
   
539
 
Real estate construction
  
318
   
318
   
0
   
534
   
0
 
Real estate mortgage
  
1,564
   
1,570
   
0
   
1,591
   
36
 
Total
 
$
47,412
  
$
52,212
  
$
991
  
$
49,343
  
$
2,127
 

  
September 30, 2017
 
(in thousands)
 
Recorded Balance
  
Unpaid Contractual Principal Balance
  
Specific Allowance
 
Loans without a specific valuation allowance:
         
Commercial construction
 
$
4,613
  
$
4,621
  
$
0
 
Commercial secured by real estate
  
25,322
   
25,916
   
0
 
Commercial other
  
9,994
   
11,804
   
0
 
Real estate construction
  
873
   
873
   
0
 
Real estate mortgage
  
1,196
   
1,196
   
0
 
             
Loans with a specific valuation allowance:
            
Commercial construction
  
153
   
174
   
25
 
Commercial secured by real estate
  
3,918
   
5,023
   
1,301
 
Commercial other
  
130
   
133
   
65
 
             
Totals:
            
Commercial construction
  
4,766
   
4,795
   
25
 
Commercial secured by real estate
  
29,240
   
30,939
   
1,301
 
Commercial other
  
10,124
   
11,937
   
65
 
Real estate construction
  
873
   
873
   
0
 
Real estate mortgage
  
1,196
   
1,196
   
0
 
Total
 
$
46,199
  
$
49,740
  
$
1,391
 

  
Three Months Ended
  
Nine Months Ended
 
  
September 30, 2017
  
September 30, 2017
 
(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
 
$
4,662
  
$
50
  
$
4,955
  
$
136
 
Commercial secured by real estate
  
25,452
   
276
   
27,318
   
980
 
Equipment lease financing
  
0
   
0
   
45
   
0
 
Commercial other
  
10,191
   
123
   
10,717
   
396
 
Real estate construction
  
860
   
0
   
569
   
0
 
Real estate mortgage
  
1,197
   
8
   
1,601
   
30
 
                 
Loans with a specific valuation allowance:
                
Commercial construction
  
153
   
0
   
156
   
0
 
Commercial secured by real estate
  
3,984
   
3
   
4,236
   
8
 
Commercial other
  
130
   
0
   
87
   
0
 
                 
Totals:
                
Commercial construction
  
4,815
   
50
   
5,111
   
136
 
Commercial secured by real estate
  
29,436
   
279
   
31,554
   
988
 
Equipment lease financing
  
0
   
0
   
45
   
0
 
Commercial other
  
10,321
   
123
   
10,804
   
396
 
Real estate construction
  
860
   
0
   
569
   
0
 
Real estate mortgage
  
1,197
   
8
   
1,601
   
30
 
Total
 
$
46,629
  
$
460
  
$
49,684
  
$
1,550
 

*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, 2018 and 2017 and the year ended December 31, 2017:

  
Three Months Ended
September 30, 2018
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial secured by real estate
  
6
   
2,028
   
0
   
400
   
2,428
 
Residential:
                    
Real estate mortgage
  
1
   
264
   
0
   
0
   
264
 
Total troubled debt restructurings
  
7
  
$
2,292
  
$
0
  
$
400
  
$
2,692
 

  
Nine Months Ended
September 30, 2018
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
4
  
$
443
  
$
0
  
$
15
  
$
458
 
Commercial secured by real estate
  
23
   
4,587
   
0
   
1,383
   
5,970
 
Commercial other
  
8
   
465
   
0
   
0
   
465
 
Residential:
                    
Real estate mortgage
  
1
   
264
   
0
   
0
   
264
 
Total troubled debt restructurings
  
36
  
$
5,759
  
$
0
  
$
1,398
  
$
7,157
 

  
Year Ended
December 31, 2017
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
2
  
$
0
  
$
0
  
$
114
  
$
114
 
Commercial secured by real estate
  
15
   
2,199
   
0
   
192
   
2,391
 
Commercial other
  
22
   
1,072
   
0
   
136
   
1,208
 
Residential:
                    
Real estate construction
  
1
   
846
   
0
   
0
   
846
 
Real estate mortgage
  
3
   
988
   
0
   
0
   
988
 
Total troubled debt restructurings
  
43
  
$
5,105
  
$
0
  
$
442
  
$
5,547
 

  
Three Months Ended
September 30, 2017
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial secured by real estate
  
6
  
$
295
  
$
0
  
$
0
  
$
295
 
Commercial other
  
1
   
102
   
0
   
0
   
102
 
Total troubled debt restructurings
  
7
  
$
397
  
$
0
  
$
0
  
$
397
 

  
Nine Months Ended
September 30, 2017
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
2
  
$
0
  
$
0
  
$
114
  
$
114
 
Commercial secured by real estate
  
11
   
874
   
0
   
192
   
1,066
 
Commercial other
  
10
   
237
   
0
   
136
   
373
 
Residential:
                    
Real estate construction
  
1
   
846
   
0
   
0
   
846
 
Real estate mortgage
  
1
   
323
   
0
   
0
   
323
 
Total troubled debt restructurings
  
25
  
$
2,280
  
$
0
  
$
442
  
$
2,722
 
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.  CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.

 (in thousands)
 
Three Months Ended
September 30, 2018
  
Three Months Ended
September 30, 2017
 
  
Number of Loans
  
Recorded Balance
  
Number of Loans
  
Recorded Balance
 
Commercial:
            
Commercial construction
  
2
  
$
147
   
0
  
$
0
 
Commercial secured by real estate
  
0
   
0
   
2
   
961
 
Commercial other
  
1
   
6
   
0
   
0
 
Residential:
                
Real estate construction
  
0
   
0
   
1
   
846
 
Total defaulted restructured loans
  
3
  
$
153
   
3
  
$
1,807
 

 (in thousands)
 
Nine Months Ended
September 30, 2018
  
Nine Months Ended
September 30, 2017
 
  
Number of Loans
  
Recorded Balance
  
Number of Loans
  
Recorded Balance
 
Commercial:
            
Commercial construction
  
2
  
$
147
   
0
  
$
0
 
Commercial secured by real estate
  
1
   
17
   
2
  
$
961
 
Commercial other
  
2
   
31
   
0
   
0
 
Residential:
                
Real estate construction
  
0
   
0
   
1
   
846
 
Total defaulted restructured loans
  
5
  
$
195
   
3
  
$
1,807