[X]
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
|
For the fiscal year ended December 31, 2018
|
|
Or
|
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
|
For the transition period from _____________ to _____________
|
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)
|
Common Stock, $5.00 par value
|
The NASDAQ Stock Market LLC
|
(Title of Class)
|
(Name of Exchange on Which Registered)
|
Yes ✓
|
No
|
Yes
|
No ✓
|
Yes ✓
|
No
|
Yes ✓
|
No
|
Large accelerated filer ✓
|
Accelerated filer ☐
|
Non-accelerated filer ☐
|
(Do not check if a smaller reporting company)
|
||
Smaller reporting company ☐
|
Emerging growth company ☐
|
Yes
|
No ✓
|
·
|
Clients may not want, need, or qualify for our products and services;
|
·
|
Borrowers may not be able to repay their loans;
|
·
|
The value of the collateral securing our loans to borrowers may decline; and
|
·
|
The quality of our loan portfolio may decline.
|
·
|
The rate of inflation;
|
·
|
The rate of economic growth;
|
·
|
Employment levels;
|
·
|
Monetary policies; and
|
·
|
Instability in domestic and foreign financial markets.
|
·
|
The length and severity of downturns in the local economies in which we operate or the national economy;
|
·
|
The length and severity of downturns in one or more of the business sectors in which our customers operate,
particularly the automobile, hotel/motel, coal, and residential development industries; or
|
·
|
A rapid increase in interest rates.
|
·
|
Commercial Real Estate
Loans. Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. As of December 31, 2018, commercial real estate loans, including multi-family loans, comprised
approximately 39% of our total loan portfolio.
|
·
|
Other Commercial Loans. Repayment
is generally dependent upon the successful operation of the borrower’s business. In addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of
the business. As of December 31, 2018, other commercial loans comprised approximately 12% of our total loan portfolio.
|
·
|
Construction and Development
Loans. The risk of loss is largely dependent on our initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the
construction phase, a number of factors can result in delays or cost overruns. If our estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing our loan may be insufficient to ensure full
repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. As of December 31, 2018, construction and development loans comprised approximately 4% of our total loan portfolio.
|
·
|
Safety and soundness guidelines;
|
·
|
Compliance with all laws including the USA Patriot Act, the International Money Laundering Abatement and
Anti-Terrorist Financing Act, the Sarbanes-Oxley Act and the related rules and regulations promulgated under such Act or the Exchange Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Community Reinvestment Act, the Home
Mortgage Disclosure Act, and all other applicable fair lending and consumer protection laws and other laws relating to discriminatory business practices; and
|
·
|
Anti-competitive concerns with the proposed transaction.
|
·
|
Actual or anticipated variations in earnings;
|
·
|
Changes in analysts’ recommendations or projections;
|
·
|
CTBI’s announcements of developments related to our businesses;
|
·
|
Operating and stock performance of other companies deemed to be peers;
|
·
|
New technology used or services offered by traditional and non-traditional competitors;
|
·
|
News reports of trends, concerns, and other issues related to the financial services industry; and
|
·
|
Additional governmental policies and enforcement of current laws.
|
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||
(in thousands)
|
Average
Balances
|
Interest
|
Average
Rate
|
Average
Balances
|
Interest
|
Average
Rate
|
Average
Balances
|
Interest
|
Average
Rate
|
|||||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||||||||||||||
Loans (1)(2)(3)
|
$
|
3,150,878
|
$
|
154,613
|
4.91
|
%
|
$
|
3,048,879
|
$
|
141,821
|
4.65
|
%
|
$
|
2,916,031
|
$
|
134,455
|
4.61
|
%
|
||||||||||||||||||
Loans held for sale
|
684
|
98
|
14.33
|
709
|
81
|
11.42
|
728
|
101
|
13.87
|
|||||||||||||||||||||||||||
Securities:
|
||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies
|
459,204
|
9,019
|
1.96
|
449,339
|
7,263
|
1.62
|
445,500
|
6,669
|
1.50
|
|||||||||||||||||||||||||||
Tax exempt state and political subdivisions (3)
|
102,396
|
3,539
|
3.46
|
110,393
|
4,632
|
4.20
|
99,086
|
4,182
|
4.22
|
|||||||||||||||||||||||||||
Other securities
|
29,299
|
996
|
3.40
|
49,981
|
1,452
|
2.91
|
53,492
|
1,596
|
2.98
|
|||||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
21,264
|
1,303
|
6.13
|
22,814
|
1,189
|
5.21
|
22,814
|
1,011
|
4.43
|
|||||||||||||||||||||||||||
Federal funds sold
|
2,795
|
59
|
2.11
|
3,139
|
41
|
1.31
|
3,121
|
19
|
0.61
|
|||||||||||||||||||||||||||
Interest bearing deposits
|
138,794
|
2,567
|
1.85
|
103,066
|
1,084
|
1.05
|
108,546
|
538
|
0.50
|
|||||||||||||||||||||||||||
Other investments
|
6,432
|
88
|
1.37
|
8,961
|
107
|
1.19
|
1,550
|
17
|
1.10
|
|||||||||||||||||||||||||||
Investment in unconsolidated subsidiaries
|
1,850
|
70
|
3.78
|
1,847
|
52
|
2.82
|
1,846
|
43
|
2.33
|
|||||||||||||||||||||||||||
Total earning assets
|
3,913,596
|
$
|
172,352
|
4.40
|
%
|
3,799,128
|
$
|
157,722
|
4.15
|
%
|
3,652,714
|
$
|
148,631
|
4.07
|
%
|
|||||||||||||||||||||
Allowance for loan and lease losses
|
(35,711
|
)
|
(36,507
|
)
|
(36,681
|
)
|
||||||||||||||||||||||||||||||
3,877,885
|
3,762,621
|
3,616,033
|
||||||||||||||||||||||||||||||||||
Nonearning assets:
|
||||||||||||||||||||||||||||||||||||
Cash and due from banks
|
52,286
|
52,321
|
50,946
|
|||||||||||||||||||||||||||||||||
Premises and equipment, net
|
45,970
|
47,129
|
48,138
|
|||||||||||||||||||||||||||||||||
Other assets
|
211,256
|
206,899
|
205,140
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
4,187,397
|
$
|
4,068,970
|
$
|
3,920,257
|
||||||||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||||||||||
Savings and demand deposits
|
$
|
1,234,562
|
$
|
8,443
|
0.68
|
%
|
$
|
1,134,147
|
$
|
3,863
|
0.34
|
%
|
$
|
1,088,291
|
$
|
2,566
|
0.24
|
%
|
||||||||||||||||||
Time deposits
|
1,256,030
|
15,271
|
1.22
|
1,243,181
|
10,487
|
0.84
|
1,203,081
|
8,355
|
0.69
|
|||||||||||||||||||||||||||
Repurchase agreements and federal funds purchased
|
244,647
|
3,312
|
1.35
|
258,419
|
1,832
|
0.71
|
262,361
|
1,155
|
0.44
|
|||||||||||||||||||||||||||
Advances from Federal Home Loan Bank
|
1,512
|
27
|
1.79
|
38,287
|
427
|
1.12
|
14,410
|
62
|
0.43
|
|||||||||||||||||||||||||||
Long-term debt
|
59,341
|
2,242
|
3.78
|
60,042
|
1,685
|
2.81
|
61,341
|
1,417
|
2.31
|
|||||||||||||||||||||||||||
Total interest bearing liabilities
|
2,796,092
|
$
|
29,295
|
1.05
|
%
|
2,734,076
|
$
|
18,294
|
0.67
|
%
|
2,629,484
|
$
|
13,555
|
0.52
|
%
|
|||||||||||||||||||||
Noninterest bearing liabilities:
|
||||||||||||||||||||||||||||||||||||
Demand deposits
|
810,270
|
778,304
|
758,555
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
34,394
|
37,823
|
37,820
|
|||||||||||||||||||||||||||||||||
Total liabilities
|
3,640,756
|
3,550,203
|
3,425,859
|
|||||||||||||||||||||||||||||||||
Shareholders’ equity
|
546,641
|
518,767
|
494,398
|
|||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
4,187,397
|
$
|
4,068,970
|
$
|
3,920,257
|
||||||||||||||||||||||||||||||
Net interest income, tax equivalent
|
$
|
143,057
|
$
|
139,428
|
$
|
135,076
|
||||||||||||||||||||||||||||||
Less tax equivalent interest income
|
902
|
2,026
|
2,055
|
|||||||||||||||||||||||||||||||||
Net interest income
|
$
|
142,155
|
$
|
137,402
|
$
|
133,021
|
||||||||||||||||||||||||||||||
Net interest spread
|
3.35
|
%
|
3.48
|
%
|
3.55
|
%
|
||||||||||||||||||||||||||||||
Benefit of interest free funding
|
0.31
|
0.19
|
0.15
|
|||||||||||||||||||||||||||||||||
Net interest margin
|
3.66
|
%
|
3.67
|
%
|
3.70
|
%
|
Total Change
|
Change Due to
|
Total Change
|
Change Due to
|
|||||||||||||||||||||
(in thousands)
|
2018/2017
|
Volume
|
Rate
|
2017/2016
|
Volume
|
Rate
|
||||||||||||||||||
Interest income:
|
||||||||||||||||||||||||
Loans
|
$
|
12,792
|
$
|
4,843
|
$
|
7,949
|
$
|
7,366
|
$
|
6,171
|
$
|
1,195
|
||||||||||||
Loans held for sale
|
17
|
(3
|
)
|
20
|
(20
|
)
|
(3
|
)
|
(17
|
)
|
||||||||||||||
U.S. Treasury and agencies
|
1,756
|
163
|
1,593
|
594
|
58
|
536
|
||||||||||||||||||
Tax exempt state and political subdivisions
|
(1,093
|
)
|
(353
|
)
|
(740
|
)
|
450
|
475
|
(25
|
)
|
||||||||||||||
Other securities
|
(456
|
)
|
(528
|
)
|
72
|
(144
|
)
|
(107
|
)
|
(37
|
)
|
|||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
114
|
(77
|
)
|
191
|
178
|
0
|
178
|
|||||||||||||||||
Federal funds sold
|
18
|
(4
|
)
|
22
|
22
|
0
|
22
|
|||||||||||||||||
Interest bearing deposits
|
1,483
|
465
|
1,018
|
546
|
(26
|
)
|
572
|
|||||||||||||||||
Other investments
|
(19
|
)
|
(27
|
)
|
8
|
90
|
88
|
2
|
||||||||||||||||
Investment in unconsolidated subsidiaries
|
18
|
0
|
18
|
9
|
0
|
9
|
||||||||||||||||||
Total interest income
|
14,630
|
4,479
|
10,151
|
9,091
|
6,656
|
2,435
|
||||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Savings and demand deposits
|
4,580
|
370
|
4,210
|
1,297
|
112
|
1,185
|
||||||||||||||||||
Time deposits
|
4,784
|
109
|
4,675
|
2,132
|
287
|
1,845
|
||||||||||||||||||
Repurchase agreements and federal funds purchased
|
1,480
|
(93
|
)
|
1,573
|
677
|
(17
|
)
|
694
|
||||||||||||||||
Advances from Federal Home Loan Bank
|
(400
|
)
|
(258
|
)
|
(142
|
)
|
365
|
186
|
179
|
|||||||||||||||
Long-term debt
|
557
|
(19
|
)
|
576
|
268
|
(29
|
)
|
297
|
||||||||||||||||
Total interest expense
|
11,001
|
109
|
10,892
|
4,739
|
539
|
4,200
|
||||||||||||||||||
Net interest income
|
$
|
3,629
|
$
|
4,370
|
$
|
(741
|
)
|
$
|
4,352
|
$
|
6,117
|
$
|
(1,765
|
)
|
Estimated Maturity at December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total Fair Value
|
Amortized Cost
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
|||||||||||||||||||||||||||||||||
U.S. Treasury, government agencies, and government sponsored agency mortgage-backed
securities
|
$
|
61,726
|
2.05
|
%
|
$
|
107,269
|
1.96
|
%
|
$
|
86,257
|
3.38
|
%
|
$
|
213,505
|
3.00
|
%
|
$
|
468,757
|
2.71
|
%
|
$
|
475,327
|
||||||||||||||||||||||
State and political subdivisions
|
3,673
|
3.62
|
33,299
|
3.24
|
27,465
|
3.34
|
60,051
|
3.63
|
124,488
|
3.46
|
126,280
|
|||||||||||||||||||||||||||||||||
Other securities
|
0
|
0.00
|
0
|
0.00
|
0
|
0.00
|
501
|
3.18
|
501
|
3.18
|
507
|
|||||||||||||||||||||||||||||||||
Total
|
$
|
65,399
|
2.13
|
%
|
$
|
140,568
|
2.26
|
%
|
$
|
113,722
|
3.37
|
%
|
$
|
274,057
|
3.14
|
%
|
$
|
593,746
|
2.87
|
%
|
$
|
602,114
|
Estimated Maturity at December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total
Amortized Cost
|
Fair
Value
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
|||||||||||||||||||||||||||||||||
State and political subdivisions
|
$
|
0
|
0.00
|
%
|
$
|
649
|
3.64
|
%
|
$
|
0
|
0.00
|
%
|
$
|
0
|
0.00
|
%
|
$
|
649
|
3.64
|
%
|
$
|
649
|
||||||||||||||||||||||
Total
|
$
|
0
|
0.00
|
%
|
$
|
649
|
3.64
|
%
|
$
|
0
|
0.00
|
%
|
$
|
0
|
0.00
|
%
|
$
|
649
|
3.64
|
%
|
$
|
649
|
Estimated Maturity at December 31, 2018
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total
Book Value
|
Fair
Value
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
|||||||||||||||||||||||||||||||||
Total
|
$
|
65,399
|
2.13
|
%
|
$
|
141,217
|
2.27
|
%
|
$
|
113,722
|
3.37
|
%
|
$
|
274,057
|
3.14
|
%
|
$
|
594,395
|
2.87
|
%
|
$
|
594,395
|
(in thousands)
|
Available-for-Sale
|
Held-to-Maturity
|
||||||
U.S. Treasury and government agencies
|
$
|
223,014
|
$
|
0
|
||||
State and political subdivisions
|
133,351
|
866
|
||||||
U.S. government sponsored agency mortgage-backed securities
|
227,574
|
0
|
||||||
Total debt securities
|
583,939
|
866
|
||||||
CRA investment funds
|
25,000
|
0
|
||||||
Total securities
|
$
|
608,939
|
$
|
866
|
(in thousands)
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
$
|
82,715
|
$
|
76,479
|
$
|
66,998
|
$
|
78,020
|
$
|
121,942
|
||||||||||
Secured by real estate
|
1,183,093
|
1,188,680
|
1,085,428
|
1,052,919
|
948,626
|
|||||||||||||||
Equipment lease financing
|
1,740
|
3,042
|
5,512
|
8,514
|
10,344
|
|||||||||||||||
Commercial other
|
377,198
|
351,034
|
350,159
|
358,898
|
352,048
|
|||||||||||||||
Total commercial
|
1,644,746
|
1,619,235
|
1,508,097
|
1,498,351
|
1,432,960
|
|||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
57,160
|
67,358
|
57,966
|
61,750
|
62,412
|
|||||||||||||||
Real estate mortgage
|
722,417
|
709,570
|
702,969
|
707,874
|
712,465
|
|||||||||||||||
Home equity
|
106,299
|
99,356
|
91,511
|
89,450
|
88,335
|
|||||||||||||||
Total residential
|
885,876
|
876,284
|
852,446
|
859,074
|
863,212
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
144,289
|
137,754
|
133,093
|
126,406
|
122,136
|
|||||||||||||||
Consumer indirect
|
533,727
|
489,667
|
444,735
|
390,130
|
315,516
|
|||||||||||||||
Total consumer
|
678,016
|
627,421
|
577,828
|
516,536
|
437,652
|
|||||||||||||||
Total loans
|
$
|
3,208,638
|
$
|
3,122,940
|
$
|
2,938,371
|
$
|
2,873,961
|
$
|
2,733,824
|
||||||||||
Percent of total year-end loans
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
2.58
|
%
|
2.45
|
%
|
2.28
|
%
|
2.71
|
%
|
4.46
|
%
|
||||||||||
Secured by real estate
|
36.87
|
38.06
|
36.94
|
36.64
|
34.70
|
|||||||||||||||
Equipment lease financing
|
0.05
|
0.10
|
0.18
|
0.30
|
0.38
|
|||||||||||||||
Commercial other
|
11.76
|
11.24
|
11.92
|
12.49
|
12.88
|
|||||||||||||||
Total commercial
|
51.26
|
51.85
|
51.32
|
52.14
|
52.42
|
|||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
1.78
|
2.16
|
1.97
|
2.15
|
2.28
|
|||||||||||||||
Real estate mortgage
|
22.52
|
22.72
|
23.93
|
24.63
|
26.06
|
|||||||||||||||
Home equity
|
3.31
|
3.18
|
3.11
|
3.11
|
3.23
|
|||||||||||||||
Total residential
|
27.61
|
28.06
|
29.01
|
29.89
|
31.57
|
|||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
4.50
|
4.41
|
4.53
|
4.40
|
4.47
|
|||||||||||||||
Consumer indirect
|
16.63
|
15.68
|
15.14
|
13.57
|
11.54
|
|||||||||||||||
Total consumer
|
21.13
|
20.09
|
19.67
|
17.97
|
16.01
|
|||||||||||||||
Total loans
|
100.00
|
%
|
100.00
|
%
|
100.00
|
%
|
100.00
|
%
|
100.00
|
%
|
Maturity at December 31, 2018
|
||||||||||||||||
(in thousands)
|
Within One Year
|
After One but Within Five Years
|
After Five Years
|
Total
|
||||||||||||
Commercial secured by real estate and commercial other
|
$
|
233,489
|
$
|
250,181
|
$
|
1,076,621
|
$
|
1,560,291
|
||||||||
Commercial and real estate construction
|
92,674
|
19,376
|
27,825
|
139,875
|
||||||||||||
$
|
326,163
|
$
|
269,557
|
$
|
1,104,446
|
$
|
1,700,166
|
|||||||||
Rate sensitivity:
|
||||||||||||||||
Fixed rate
|
$
|
78,004
|
$
|
67,569
|
$
|
32,263
|
$
|
177,836
|
||||||||
Adjustable rate
|
248,159
|
201,988
|
1,072,183
|
1,522,330
|
||||||||||||
$
|
326,163
|
$
|
269,557
|
$
|
1,104,446
|
$
|
1,700,166
|
(in thousands)
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||||||||||||
Nonaccrual loans
|
$
|
11,867
|
$
|
18,119
|
$
|
16,623
|
$
|
16,563
|
$
|
20,971
|
||||||||||
90 days or more past due and still accruing interest
|
10,198
|
10,176
|
10,847
|
12,046
|
17,985
|
|||||||||||||||
Total nonperforming loans
|
22,065
|
28,295
|
27,470
|
28,609
|
38,956
|
|||||||||||||||
Other repossessed assets
|
42
|
155
|
103
|
183
|
90
|
|||||||||||||||
Foreclosed properties
|
27,273
|
31,996
|
35,856
|
40,674
|
36,776
|
|||||||||||||||
Total nonperforming assets
|
$
|
49,380
|
$
|
60,446
|
$
|
63,429
|
$
|
69,466
|
$
|
75,822
|
||||||||||
Nonperforming assets to total loans and foreclosed properties
|
1.53
|
%
|
1.92
|
%
|
2.13
|
%
|
2.38
|
%
|
2.74
|
%
|
||||||||||
Allowance to nonperforming loans
|
162.73
|
%
|
127.76
|
%
|
130.81
|
%
|
126.16
|
%
|
88.43
|
%
|
(in thousands)
|
Nonaccrual loans
|
As a % of Loan Balances by Category
|
Accruing Loans Past Due 90 Days or More
|
As a % of Loan Balances by Category
|
Balances
|
|||||||||||||||
December 31, 2018
|
||||||||||||||||||||
Commercial construction
|
$
|
639
|
0.77
|
%
|
$
|
58
|
0.07
|
%
|
$
|
82,715
|
||||||||||
Commercial secured by real estate
|
4,537
|
0.38
|
4,632
|
0.39
|
1,183,093
|
|||||||||||||||
Equipment lease financing
|
0
|
0.00
|
0
|
0.00
|
1,740
|
|||||||||||||||
Commercial other
|
797
|
0.21
|
581
|
0.15
|
377,198
|
|||||||||||||||
Real estate construction
|
22
|
0.04
|
6
|
0.01
|
57,160
|
|||||||||||||||
Real estate mortgage
|
5,395
|
0.75
|
4,095
|
0.57
|
722,417
|
|||||||||||||||
Home equity
|
477
|
0.45
|
246
|
0.23
|
106,299
|
|||||||||||||||
Consumer direct
|
0
|
0.00
|
74
|
0.05
|
144,289
|
|||||||||||||||
Consumer indirect
|
0
|
0.00
|
506
|
0.09
|
533,727
|
|||||||||||||||
Total
|
$
|
11,867
|
0.37
|
%
|
$
|
10,198
|
0.32
|
%
|
$
|
3,208,638
|
||||||||||
December 31, 2017
|
||||||||||||||||||||
Commercial construction
|
$
|
1,207
|
1.58
|
%
|
$
|
31
|
0.04
|
%
|
$
|
76,479
|
||||||||||
Commercial secured by real estate
|
7,028
|
0.59
|
2,665
|
0.22
|
1,188,680
|
|||||||||||||||
Equipment lease financing
|
0
|
0.00
|
0
|
0.00
|
3,042
|
|||||||||||||||
Commercial other
|
934
|
0.27
|
87
|
0.02
|
351,034
|
|||||||||||||||
Real estate construction
|
318
|
0.47
|
223
|
0.33
|
67,358
|
|||||||||||||||
Real estate mortgage
|
8,243
|
1.16
|
6,293
|
0.89
|
709,570
|
|||||||||||||||
Home equity
|
389
|
0.39
|
167
|
0.17
|
99,356
|
|||||||||||||||
Consumer direct
|
0
|
0.00
|
62
|
0.05
|
137,754
|
|||||||||||||||
Consumer indirect
|
0
|
0.00
|
648
|
0.13
|
489,667
|
|||||||||||||||
Total
|
$
|
18,119
|
0.58
|
%
|
$
|
10,176
|
0.33
|
%
|
$
|
3,122,940
|
(in thousands)
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||||||||||||
Allowance for loan and lease losses, beginning of year
|
$
|
36,151
|
$
|
35,933
|
$
|
36,094
|
$
|
34,447
|
$
|
34,008
|
||||||||||
Loans charged off:
|
||||||||||||||||||||
Commercial construction
|
0
|
(10
|
)
|
(316
|
)
|
(3
|
)
|
(15
|
)
|
|||||||||||
Commercial secured by real estate
|
(988
|
)
|
(2,038
|
)
|
(1,641
|
)
|
(1,379
|
)
|
(2,163
|
)
|
||||||||||
Commercial other
|
(1,513
|
)
|
(1,893
|
)
|
(2,136
|
)
|
(1,961
|
)
|
(3,141
|
)
|
||||||||||
Real estate construction
|
(33
|
)
|
0
|
(192
|
)
|
(135
|
)
|
(123
|
)
|
|||||||||||
Real estate mortgage
|
(1,004
|
)
|
(615
|
)
|
(1,043
|
)
|
(1,421
|
)
|
(1,058
|
)
|
||||||||||
Home equity
|
(69
|
)
|
(178
|
)
|
(54
|
)
|
(129
|
)
|
(115
|
)
|
||||||||||
Consumer direct
|
(997
|
)
|
(965
|
)
|
(1,236
|
)
|
(1,306
|
)
|
(1,326
|
)
|
||||||||||
Consumer indirect
|
(6,394
|
)
|
(5,386
|
)
|
(5,050
|
)
|
(3,536
|
)
|
(3,495
|
)
|
||||||||||
Total charge-offs
|
(10,998
|
)
|
(11,085
|
)
|
(11,668
|
)
|
(9,870
|
)
|
(11,436
|
)
|
||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||||||
Commercial construction
|
61
|
49
|
36
|
13
|
28
|
|||||||||||||||
Commercial secured by real estate
|
224
|
75
|
178
|
60
|
305
|
|||||||||||||||
Commercial other
|
643
|
532
|
439
|
585
|
621
|
|||||||||||||||
Real estate construction
|
0
|
0
|
7
|
4
|
2
|
|||||||||||||||
Real estate mortgage
|
85
|
87
|
101
|
117
|
40
|
|||||||||||||||
Home equity
|
14
|
4
|
9
|
54
|
5
|
|||||||||||||||
Consumer direct
|
445
|
525
|
615
|
435
|
566
|
|||||||||||||||
Consumer indirect
|
3,116
|
2,510
|
2,250
|
1,599
|
1,553
|
|||||||||||||||
Total recoveries
|
4,588
|
3,782
|
3,635
|
2,867
|
3,120
|
|||||||||||||||
Net charge-offs:
|
||||||||||||||||||||
Commercial construction
|
61
|
39
|
(280
|
)
|
10
|
13
|
||||||||||||||
Commercial secured by real estate
|
(764
|
)
|
(1,963
|
)
|
(1,463
|
)
|
(1,319
|
)
|
(1,858
|
)
|
||||||||||
Commercial other
|
(870
|
)
|
(1,361
|
)
|
(1,697
|
)
|
(1,376
|
)
|
(2,520
|
)
|
||||||||||
Real estate construction
|
(33
|
)
|
0
|
(185
|
)
|
(131
|
)
|
(121
|
)
|
|||||||||||
Real estate mortgage
|
(919
|
)
|
(528
|
)
|
(942
|
)
|
(1,304
|
)
|
(1,018
|
)
|
||||||||||
Home equity
|
(55
|
)
|
(174
|
)
|
(45
|
)
|
(75
|
)
|
(110
|
)
|
||||||||||
Consumer direct
|
(552
|
)
|
(440
|
)
|
(621
|
)
|
(871
|
)
|
(760
|
)
|
||||||||||
Consumer indirect
|
(3,278
|
)
|
(2,876
|
)
|
(2,800
|
)
|
(1,937
|
)
|
(1,942
|
)
|
||||||||||
Total net charge-offs
|
(6,410
|
)
|
(7,303
|
)
|
(8,033
|
)
|
(7,003
|
)
|
(8,316
|
)
|
||||||||||
Provisions charged against operations
|
6,167
|
7,521
|
7,872
|
8,650
|
8,755
|
|||||||||||||||
Balance, end of year
|
$
|
35,908
|
$
|
36,151
|
$
|
35,933
|
$
|
36,094
|
$
|
34,447
|
||||||||||
Allocation of allowance, end of year:
|
||||||||||||||||||||
Commercial construction
|
$
|
862
|
$
|
686
|
$
|
884
|
$
|
2,199
|
$
|
2,896
|
||||||||||
Commercial secured by real estate
|
14,531
|
14,509
|
14,191
|
14,434
|
13,618
|
|||||||||||||||
Equipment lease financing
|
12
|
18
|
42
|
79
|
119
|
|||||||||||||||
Commercial other
|
4,993
|
5,039
|
4,656
|
4,225
|
4,263
|
|||||||||||||||
Real estate construction
|
512
|
660
|
629
|
550
|
534
|
|||||||||||||||
Real estate mortgage
|
4,433
|
5,688
|
6,027
|
6,678
|
6,094
|
|||||||||||||||
Home equity
|
841
|
857
|
774
|
839
|
756
|
|||||||||||||||
Consumer direct
|
1,883
|
1,863
|
1,885
|
1,594
|
1,574
|
|||||||||||||||
Consumer indirect
|
7,841
|
6,831
|
6,845
|
5,496
|
4,593
|
|||||||||||||||
Balance, end of year
|
$
|
35,908
|
$
|
36,151
|
$
|
35,933
|
$
|
36,094
|
$
|
34,447
|
||||||||||
Average loans outstanding, net of deferred loan costs and fees
|
$
|
3,150,878
|
$
|
3,048,879
|
$
|
2,916,031
|
$
|
2,791,871
|
$
|
2,642,231
|
||||||||||
Loans outstanding at end of year, net of deferred loan costs and fees
|
$
|
3,208,638
|
$
|
3,122,940
|
$
|
2,938,371
|
$
|
2,873,961
|
$
|
2,733,824
|
||||||||||
Net charge-offs to average loan type:
|
||||||||||||||||||||
Commercial construction
|
(0.08
|
)%
|
(0.05
|
)%
|
0.40
|
%
|
(0.01
|
)%
|
(0.01
|
)%
|
||||||||||
Commercial secured by real estate
|
0.06
|
0.17
|
0.14
|
0.13
|
0.21
|
|||||||||||||||
Commercial other
|
0.25
|
0.39
|
0.47
|
0.39
|
0.70
|
|||||||||||||||
Real estate construction
|
0.05
|
0.00
|
0.32
|
0.21
|
0.20
|
|||||||||||||||
Real estate mortgage
|
0.13
|
0.07
|
0.13
|
0.18
|
0.15
|
|||||||||||||||
Home equity
|
0.05
|
0.18
|
0.05
|
0.08
|
0.13
|
|||||||||||||||
Consumer direct
|
0.39
|
0.33
|
0.48
|
0.71
|
0.63
|
|||||||||||||||
Consumer indirect
|
0.64
|
0.61
|
0.67
|
0.55
|
0.67
|
|||||||||||||||
Total
|
0.20
|
%
|
0.24
|
%
|
0.28
|
%
|
0.25
|
%
|
0.31
|
%
|
||||||||||
Other ratios:
|
||||||||||||||||||||
Allowance to net loans, end of year
|
1.12
|
%
|
1.16
|
%
|
1.22
|
%
|
1.26
|
%
|
1.26
|
%
|
||||||||||
Provision for loan losses to average loans
|
0.20
|
%
|
0.25
|
%
|
0.27
|
%
|
0.31
|
%
|
0.33
|
%
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Deposits:
|
||||||||||||
Noninterest bearing deposits
|
$
|
810,270
|
$
|
778,304
|
$
|
758,555
|
||||||
NOW accounts
|
57,166
|
49,975
|
49,037
|
|||||||||
Money market accounts
|
755,970
|
668,609
|
640,297
|
|||||||||
Savings accounts
|
421,426
|
415,563
|
398,957
|
|||||||||
Certificates of deposit of $100,000 or more
|
669,386
|
628,165
|
578,669
|
|||||||||
Certificates of deposit < $100,000 and other time deposits
|
586,644
|
615,016
|
624,412
|
|||||||||
Total deposits
|
3,300,862
|
3,155,632
|
3,049,927
|
|||||||||
Other borrowed funds:
|
||||||||||||
Repurchase agreements and federal funds purchased
|
244,647
|
258,419
|
262,361
|
|||||||||
Advances from Federal Home Loan Bank
|
1,512
|
38,287
|
14,410
|
|||||||||
Long-term debt
|
59,341
|
60,042
|
61,341
|
|||||||||
Total other borrowed funds
|
305,500
|
356,748
|
338,112
|
|||||||||
Total deposits and other borrowed funds
|
$
|
3,606,362
|
$
|
3,512,380
|
$
|
3,388,039
|
(in thousands)
|
Certificates of Deposit
|
Other Time Deposits
|
Total
|
|||||||||
Three months or less
|
$
|
95,613
|
$
|
7,133
|
$
|
102,746
|
||||||
Over three through six months
|
69,640
|
8,168
|
77,808
|
|||||||||
Over six through twelve months
|
244,631
|
13,652
|
258,283
|
|||||||||
Over twelve through sixty months
|
188,241
|
24,889
|
213,130
|
|||||||||
$
|
598,125
|
$
|
53,842
|
$
|
651,967
|
Location
|
Owned
|
Leased
|
Total
|
||
Banking locations:
|
|||||
Community Trust Bank, Inc.
|
|||||
*
|
Pikeville Market (lease land at 3 owned locations)
|
9
|
1
|
10
|
|
10 locations in Pike County, Kentucky
|
|||||
Floyd/Knott/Johnson Market (lease land at 1 owned location)
|
3
|
1
|
4
|
||
2 locations in Floyd County, Kentucky, 1 location in Knott County, Kentucky, and 1 location in Johnson County, Kentucky
|
|||||
Tug Valley Market (lease land at 1 owned location)
|
2
|
0
|
2
|
||
1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia
|
|||||
Whitesburg Market (lease land at 1 owned location)
|
4
|
1
|
5
|
||
5 locations in Letcher County, Kentucky
|
|||||
Hazard Market (lease land at 2 owned locations)
|
3
|
0
|
3
|
||
3 locations in Perry County, Kentucky
|
|||||
*
|
Lexington Market (lease land at 3 owned locations)
|
4
|
2
|
6
|
|
6 locations in Fayette County, Kentucky
|
|||||
Winchester Market
|
2
|
0
|
2
|
||
2 locations in Clark County, Kentucky
|
|||||
Richmond Market (lease land at 1 owned location)
|
3
|
0
|
3
|
||
3 locations in Madison County, Kentucky
|
|||||
Mt. Sterling Market
|
2
|
0
|
2
|
||
2 locations in Montgomery County, Kentucky
|
|||||
*
|
Versailles Market (lease land at 1 owned location)
|
2
|
3
|
5
|
|
2 locations in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 1 location in Scott County, Kentucky
|
|||||
Danville Market (lease land at 1 owned location)
|
3
|
0
|
3
|
||
2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky
|
|||||
*
|
Ashland Market (lease land at 1 owned location)
|
5
|
0
|
5
|
|
4 locations in Boyd County, Kentucky and 1 location in Greenup County, Kentucky
|
|||||
Flemingsburg Market
|
3
|
0
|
3
|
||
3 locations in Fleming County, Kentucky
|
|||||
Advantage Valley Market
|
3
|
1
|
4
|
||
2 locations in Lincoln County, West Virginia, 1 location in Wayne County, West Virginia, and 1 location in Cabell County,
West Virginia
|
|||||
Summersville Market
|
1
|
0
|
1
|
||
1 location in Nicholas County, West Virginia
|
|||||
Middlesboro Market (lease land at 1 owned location)
|
3
|
0
|
3
|
||
3 locations in Bell County, Kentucky
|
|||||
Williamsburg Market
|
5
|
0
|
5
|
||
2 locations in Whitley County, Kentucky and 3 locations in Laurel County, Kentucky
|
|||||
Campbellsville Market (lease land at 2 owned locations)
|
8
|
0
|
8
|
||
2 locations in Taylor County, Kentucky, 2 locations in Pulaski County, Kentucky, 1 location in Adair County, Kentucky, 1
location in Green County, Kentucky, 1 location in Russell County, Kentucky, and 1 location in Marion County, Kentucky
|
|||||
Mt. Vernon Market
|
2
|
0
|
2
|
||
2 locations in Rockcastle County, Kentucky
|
|||||
*
|
LaFollette Market
|
3
|
0
|
3
|
|
2 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee
|
|||||
Total banking locations
|
70
|
9
|
79
|
||
Operational locations:
|
|||||
Community Trust Bank, Inc.
|
|||||
Pikeville (Pike County, Kentucky) (lease land at 1 owned location)
|
1
|
0
|
1
|
||
Total operational locations
|
1
|
0
|
1
|
||
Total locations
|
71
|
9
|
80
|
Fiscal Year Ending December 31 ($)
|
||||||
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
Community Trust Bancorp, Inc.
|
100.00
|
92.06
|
90.98
|
132.36
|
129.16
|
112.40
|
NASDAQ Stock Market (U.S.)
|
100.00
|
112.46
|
113.00
|
127.70
|
155.01
|
146.57
|
NASDAQ Bank Stocks
|
100.00
|
111.83
|
114.30
|
144.63
|
171.24
|
143.15
|
Year Ended December 31
|
2018
|
2017
|
2016
|
2015
|
2014
|
|||||||||||||||
Interest income
|
$
|
171,450
|
$
|
155,696
|
$
|
146,576
|
$
|
144,020
|
$
|
143,867
|
||||||||||
Interest expense
|
29,295
|
18,294
|
13,555
|
11,773
|
11,797
|
|||||||||||||||
Net interest income
|
142,155
|
137,402
|
133,021
|
132,247
|
132,070
|
|||||||||||||||
Provision for loan losses
|
6,167
|
7,521
|
7,872
|
8,650
|
8,755
|
|||||||||||||||
Noninterest income
|
51,952
|
48,508
|
48,441
|
46,809
|
45,081
|
|||||||||||||||
Noninterest expense
|
117,398
|
109,878
|
107,126
|
105,443
|
105,999
|
|||||||||||||||
Income before income taxes
|
70,542
|
68,511
|
66,464
|
64,963
|
62,397
|
|||||||||||||||
Income taxes
|
11,314
|
17,018
|
19,118
|
18,531
|
19,146
|
|||||||||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
$
|
46,432
|
$
|
43,251
|
||||||||||
Per common share:
|
||||||||||||||||||||
Basic earnings per share
|
$
|
3.35
|
$
|
2.92
|
$
|
2.70
|
$
|
2.66
|
$
|
2.50
|
||||||||||
Diluted earnings per share
|
$
|
3.35
|
$
|
2.92
|
$
|
2.70
|
$
|
2.66
|
$
|
2.49
|
||||||||||
Cash dividends declared-
|
$
|
1.380
|
$
|
1.300
|
$
|
1.260
|
$
|
1.220
|
$
|
1.181
|
||||||||||
as a % of net income
|
41.19
|
%
|
44.52
|
%
|
46.67
|
%
|
45.86
|
%
|
47.24
|
%
|
||||||||||
Book value, end of year
|
$
|
31.81
|
$
|
30.00
|
$
|
28.40
|
$
|
27.12
|
$
|
25.64
|
||||||||||
Market price, end of year
|
$
|
39.61
|
$
|
47.10
|
$
|
49.60
|
$
|
34.96
|
$
|
36.61
|
||||||||||
Market to book value, end of year
|
1.25
|
x
|
1.57
|
x
|
1.75
|
x
|
1.29
|
x
|
1.43
|
x
|
||||||||||
Price/earnings ratio, end of year
|
11.82
|
x
|
16.13
|
x
|
18.37
|
x
|
13.14
|
x
|
14.64
|
x
|
||||||||||
Cash dividend yield, for the year
|
3.48
|
%
|
2.76
|
%
|
2.54
|
%
|
3.49
|
%
|
3.23
|
%
|
||||||||||
At year-end:
|
||||||||||||||||||||
Total assets
|
$
|
4,201,616
|
$
|
4,136,231
|
$
|
3,932,169
|
$
|
3,903,934
|
$
|
3,723,765
|
||||||||||
Long-term debt
|
59,341
|
59,341
|
61,341
|
61,341
|
61,341
|
|||||||||||||||
Shareholders’ equity
|
564,150
|
530,699
|
500,615
|
475,583
|
447,877
|
|||||||||||||||
Averages:
|
||||||||||||||||||||
Assets
|
$
|
4,187,397
|
$
|
4,068,970
|
$
|
3,920,257
|
$
|
3,790,282
|
$
|
3,679,531
|
||||||||||
Deposits, including repurchase agreements
|
3,540,717
|
3,406,627
|
3,306,550
|
3,201,545
|
3,130,338
|
|||||||||||||||
Earning assets
|
3,913,596
|
3,799,128
|
3,652,714
|
3,524,506
|
3,422,450
|
|||||||||||||||
Loans
|
3,150,878
|
3,048,879
|
2,916,031
|
2,791,871
|
2,642,231
|
|||||||||||||||
Shareholders’ equity
|
546,641
|
518,767
|
494,398
|
465,682
|
435,290
|
|||||||||||||||
Profitability ratios:
|
||||||||||||||||||||
Return on average assets
|
1.41
|
%
|
1.27
|
%
|
1.21
|
%
|
1.23
|
%
|
1.18
|
%
|
||||||||||
Return on average equity
|
10.83
|
9.93
|
9.58
|
9.97
|
9.94
|
|||||||||||||||
Capital ratios:
|
||||||||||||||||||||
Equity to assets, end of year
|
13.43
|
%
|
12.83
|
%
|
12.73
|
%
|
12.18
|
%
|
12.03
|
%
|
||||||||||
Average equity to average assets
|
13.05
|
12.75
|
12.61
|
12.29
|
11.83
|
|||||||||||||||
Risk based capital ratios:
|
||||||||||||||||||||
Tier 1 leverage
|
13.51
|
%
|
12.89
|
%
|
12.75
|
%
|
12.40
|
%
|
12.04
|
%
|
||||||||||
Common equity Tier 1 capital
|
16.27
|
15.33
|
15.18
|
14.58
|
--
|
|||||||||||||||
Tier 1 capital
|
18.12
|
17.22
|
17.25
|
16.70
|
16.51
|
|||||||||||||||
Total capital
|
19.29
|
18.41
|
18.50
|
17.95
|
17.76
|
|||||||||||||||
Other significant ratios:
|
||||||||||||||||||||
Allowance to net loans, end of year
|
1.12
|
%
|
1.16
|
%
|
1.22
|
%
|
1.26
|
%
|
1.26
|
%
|
||||||||||
Allowance to nonperforming loans, end of year
|
162.73
|
127.76
|
130.81
|
126.16
|
88.43
|
|||||||||||||||
Nonperforming assets to loans and foreclosed properties, end of year
|
1.53
|
1.92
|
2.13
|
2.38
|
2.74
|
|||||||||||||||
Net interest margin,
tax equivalent
|
3.66
|
3.67
|
3.70
|
3.81
|
3.92
|
|||||||||||||||
Efficiency ratio*
|
60.17
|
58.66
|
58.54
|
58.20
|
59.12
|
|||||||||||||||
Other statistics:
|
||||||||||||||||||||
Average common shares outstanding
|
17,687
|
17,631
|
17,548
|
17,431
|
17,326
|
|||||||||||||||
Number of full-time equivalent employees, end of year
|
978
|
990
|
996
|
984
|
1,012
|
Three Months Ended
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||
2018
|
||||||||||||||||
Net interest income
|
$
|
36,280
|
$
|
36,136
|
$
|
35,148
|
$
|
34,591
|
||||||||
Net interest income, taxable equivalent basis
|
36,504
|
36,362
|
35,376
|
34,815
|
||||||||||||
Provision for loan losses
|
1,749
|
1,543
|
1,929
|
946
|
||||||||||||
Noninterest income
|
12,239
|
12,663
|
13,740
|
13,310
|
||||||||||||
Noninterest expense
|
28,172
|
28,106
|
32,439
|
28,681
|
||||||||||||
Net income
|
15,709
|
16,106
|
11,599
|
15,814
|
||||||||||||
Per common share:
|
||||||||||||||||
Basic earnings per share
|
$
|
0.89
|
$
|
0.91
|
$
|
0.66
|
$
|
0.89
|
||||||||
Diluted earnings per share
|
0.89
|
0.91
|
0.66
|
0.89
|
||||||||||||
Dividends declared
|
0.36
|
0.36
|
0.33
|
0.33
|
||||||||||||
Selected ratios:
|
||||||||||||||||
Return on average assets, annualized
|
1.48
|
%
|
1.52
|
%
|
1.11
|
%
|
1.55
|
%
|
||||||||
Return on average common equity, annualized
|
11.16
|
11.62
|
8.56
|
12.00
|
||||||||||||
Net interest margin, annualized
|
3.68
|
3.68
|
3.61
|
3.65
|
Three Months Ended
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||
2017
|
||||||||||||||||
Net interest income
|
$
|
35,102
|
$
|
34,970
|
$
|
34,240
|
$
|
33,090
|
||||||||
Net interest income, taxable equivalent basis
|
35,615
|
35,475
|
34,739
|
33,599
|
||||||||||||
Provision for loan losses
|
2,862
|
666
|
2,764
|
1,229
|
||||||||||||
Noninterest income
|
12,416
|
12,202
|
12,311
|
11,579
|
||||||||||||
Noninterest expense
|
27,736
|
26,932
|
27,566
|
27,644
|
||||||||||||
Net income
|
14,912
|
13,763
|
11,541
|
11,277
|
||||||||||||
Per common share:
|
||||||||||||||||
Basic earnings per share
|
$
|
0.84
|
$
|
0.78
|
$
|
0.65
|
$
|
0.64
|
||||||||
Diluted earnings per share
|
0.84
|
0.78
|
0.65
|
0.64
|
||||||||||||
Dividends declared
|
0.33
|
0.33
|
0.32
|
0.32
|
||||||||||||
Selected ratios:
|
||||||||||||||||
Return on average assets, annualized
|
1.43
|
%
|
1.33
|
%
|
1.14
|
%
|
1.15
|
%
|
||||||||
Return on average common equity, annualized
|
11.18
|
10.45
|
8.97
|
9.02
|
||||||||||||
Net interest margin, annualized
|
3.65
|
3.67
|
3.68
|
3.68
|
● |
Our Business
|
● |
Financial Goals and Performance
|
● |
Results of Operations and Financial Condition
|
● |
Contractual Obligations and Commitments
|
● |
Liquidity and Market Risk
|
● |
Interest Rate Risk
|
● |
Capital Resources
|
● |
Impact of Inflation, Changing Prices, and Economic Conditions
|
● |
Stock Repurchase Program
|
● |
Critical Accounting Policies and Estimates
|
2018 Goals
|
2018 Performance
|
2019 Goals
|
|
Basic earnings per share
|
$3.32 - $3.40
|
$3.35
|
$3.45 - $3.52
|
Net income | $58.8 - $60.2 million | $59.2 million | $61.3 - $62.6 million |
ROAA
|
1.41% - 1.44%
|
1.41%
|
1.44% - 1.47%
|
ROAE
|
10.72% - 10.97%
|
10.83%
|
10.57% - 10.79%
|
Revenues | $188.9 - $194.6 million | $194.1 million | $189.0 - $194.7 million |
Noninterest revenue as of % of total revenue
|
25.00% - 27.00%
|
26.80%
|
23.00% - 26.00%
|
Assets
|
$4.15 - $4.32 billion
|
$4.20 billion
|
$4.20 - $4.46 billion
|
Loans
|
$3.15 - $3.35 billion
|
$3.21 billion
|
$3.31 - $3.45 billion
|
Deposits, including repurchase agreements
|
$3.47 - $3.61 billion
|
$3.54 billion
|
$3.56 - $3.71 billion
|
Shareholders’ equity
|
$552.6 - $575.2 million
|
$564.2 million
|
$584.0 - $607.8 million
|
● |
Net interest income for the year ended December 31, 2018 increased $4.8 million, or 3.5%, from December 31, 2017 with
a 1 basis point decrease in our net interest margin and a $114.5 million increase in average earning assets.
|
● |
Provision for loan losses for the year ended December 31, 2018 decreased $1.4 million, or 18.0%, from December 31,
2017.
|
● |
Our loan portfolio increased $85.7 million, or 2.7%, from December 31, 2017.
|
● |
Net loan charge-offs for the year ended December 31, 2018 were $6.4 million, or 0.20% of average loans annualized,
compared to $7.3 million, or 0.24%, experienced for the year 2017.
|
● |
Nonperforming loans at $22.1 million decreased $6.2 million, or 22.0%, from December 31, 2017. Nonperforming assets
at $49.4 million decreased $11.1 million, or 18.3%, from December 31, 2017.
|
● |
Deposits, including repurchase agreements, increased $31.0 million, or 0.9%, from December 31, 2017.
|
● |
Noninterest income for the year ended December 31, 2018 was a $3.4 million, or 7.1%, increase from prior year. Year
over year noninterest income was positively impacted by increases in deposit service charges, trust revenue, and bank owned life insurance income.
|
● |
Noninterest expense for the year ended December 31, 2018 was $117.4 million, a $7.5 million, or 6.8%, increase over
the year 2017. The year over year increase included increases in personnel expense and taxes other than income, property, and payroll, in addition to a $3.6 million customer reimbursement expense discussed further in the noninterest
expense section below.
|
(dollars in thousands)
|
Change 2018 vs. 2017
|
|||||||||||||||||||
Year Ended December 31
|
2018
|
2017
|
2016
|
Amount
|
Percent
|
|||||||||||||||
Net interest income
|
$
|
142,155
|
$
|
137,402
|
$
|
133,021
|
$
|
4,753
|
3.5
|
%
|
||||||||||
Provision for loan losses
|
6,167
|
7,521
|
7,872
|
(1,354
|
)
|
(18.0
|
)
|
|||||||||||||
Noninterest income
|
51,952
|
48,508
|
48,441
|
3,444
|
7.1
|
|||||||||||||||
Noninterest expense
|
117,398
|
109,878
|
107,126
|
7,520
|
6.8
|
|||||||||||||||
Income taxes
|
11,314
|
17,018
|
19,118
|
(5,704
|
)
|
(33.5
|
)
|
|||||||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
$
|
7,735
|
15.0
|
%
|
||||||||||
Average earning assets
|
$
|
3,913,596
|
$
|
3,799,128
|
$
|
3,652,714
|
$
|
114,468
|
3.0
|
%
|
||||||||||
Yield on average earnings assets, tax equivalent*
|
4.40
|
%
|
4.15
|
%
|
4.07
|
%
|
0.25
|
%
|
6.0
|
%
|
||||||||||
Cost of interest bearing funds
|
1.05
|
%
|
0.67
|
%
|
0.52
|
%
|
0.38
|
%
|
56.7
|
%
|
||||||||||
Net interest margin, tax equivalent*
|
3.66
|
%
|
3.67
|
%
|
3.70
|
%
|
(0.01
|
)%
|
(0.3
|
)%
|
(in thousands)
|
December 31, 2018
|
|||||||||||||||||||
Loan Category
|
Balance
|
Variance from Prior Year
|
Net Charge-Offs
|
Nonperforming
|
ALLL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
$
|
82,715
|
8.2
|
%
|
$
|
61
|
$
|
697
|
$
|
862
|
||||||||||
Secured by real estate
|
1,183,093
|
(0.5
|
)
|
(764
|
)
|
9,169
|
14,531
|
|||||||||||||
Equipment lease financing
|
1,740
|
(42.8
|
)
|
0
|
0
|
12
|
||||||||||||||
Other commercial
|
377,198
|
7.5
|
(870
|
)
|
1,378
|
4,993
|
||||||||||||||
Total commercial
|
1,644,746
|
1.6
|
(1,573
|
)
|
11,244
|
20,398
|
||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
57,160
|
(15.1
|
)
|
(33
|
)
|
28
|
512
|
|||||||||||||
Real estate mortgage
|
722,417
|
1.8
|
(919
|
)
|
9,490
|
4,433
|
||||||||||||||
Home equity
|
106,299
|
7.0
|
(55
|
)
|
723
|
841
|
||||||||||||||
Total residential
|
885,876
|
1.1
|
(1,007
|
)
|
10,241
|
5,786
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
144,289
|
4.7
|
(552
|
)
|
74
|
1,883
|
||||||||||||||
Consumer indirect
|
533,727
|
9.0
|
(3,278
|
)
|
506
|
7,841
|
||||||||||||||
Total consumer
|
678,016
|
8.1
|
(3,830
|
)
|
580
|
9,724
|
||||||||||||||
Total loans
|
$
|
3,208,638
|
2.7
|
%
|
$
|
(6,410
|
)
|
$
|
22,065
|
$
|
35,908
|
(in thousands)
|
|||||||||||||
Appraisal Aging Analysis
|
Holding Period Analysis
|
||||||||||||
Days Since Last Appraisal
|
Number of Properties
|
Current Book Value
|
Holding Period
|
Current Book Value
|
|||||||||
Up to 3 months
|
9
|
$
|
556
|
Less than one year
|
$
|
3,549
|
|||||||
3 to 6 months
|
43
|
3,200
|
1 year
|
1,541
|
|||||||||
6 to 9 months
|
22
|
5,488
|
2 years
|
1,114
|
|||||||||
9 to 12 months
|
30
|
3,629
|
3 years
|
7,272
|
|||||||||
12 to 18 months
|
17
|
5,380
|
4 years
|
1,780
|
|||||||||
18 to 24 months
|
6
|
8,888
|
5 years
|
96
|
|||||||||
Over 24 months
|
3
|
132
|
6 years*
|
1,071
|
|||||||||
Total
|
130
|
$
|
27,273
|
7 years*
|
8,492
|
||||||||
8 years*
|
0
|
||||||||||||
9 years*
|
2,358
|
||||||||||||
Total
|
$
|
27,273
|
Contractual Obligations:
|
Payments Due by Period
|
|||||||||||||||
(in thousands)
|
Total
|
1 Year
|
2-5 Years
|
After 5 Years
|
||||||||||||
Deposits without stated maturity
|
$
|
2,154,317
|
$
|
2,154,317
|
$
|
0
|
$
|
0
|
||||||||
Certificates of deposit and other time deposits
|
1,151,633
|
840,592
|
310,783
|
258
|
||||||||||||
Repurchase agreements and federal funds purchased
|
233,892
|
233,892
|
0
|
0
|
||||||||||||
Advances from Federal Home Loan Bank
|
436
|
22
|
82
|
332
|
||||||||||||
Interest on advances from Federal Home Loan Bank*
|
2
|
0
|
1
|
1
|
||||||||||||
Long-term debt
|
59,341
|
0
|
0
|
59,341
|
||||||||||||
Interest on long-term debt*
|
48,023
|
2,705
|
10,427
|
34,891
|
||||||||||||
Annual rental commitments under leases
|
21,933
|
1,999
|
6,903
|
13,031
|
||||||||||||
Total contractual obligations
|
$
|
3,669,577
|
$
|
3,233,527
|
$
|
328,196
|
$
|
107,854
|
Other Commitments:
|
Amount of Commitment - Expiration by Period
|
|||||||||||||||
(in thousands)
|
Total
|
1 Year
|
2-5 Years
|
After 5 Years
|
||||||||||||
Standby letters of credit
|
$
|
29,410
|
$
|
28,431
|
$
|
970
|
$
|
9
|
||||||||
Commitments to extend credit
|
510,513
|
422,140
|
52,670
|
35,703
|
||||||||||||
Total other commitments
|
$
|
539,923
|
$
|
450,571
|
$
|
53,640
|
$
|
35,712
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
10.26%
|
+300
|
7.89%
|
+200
|
5.43%
|
+100
|
2.80%
|
-100
|
(2.73)%
|
-200
|
(4.90)%
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
7.49%
|
+300
|
5.70%
|
+200
|
3.86%
|
+100
|
1.92%
|
-25
|
(0.29)%
|
(dollars in thousands)
|
1-3 Months
|
4-6 Months
|
7-9 Months
|
10-12 Months
|
2-3
Years
|
4-5
Years
|
> 5
Years
|
|||||||||||||||||||||
Assets
|
$
|
1,442,808
|
$
|
247,213
|
$
|
195,957
|
$
|
170,672
|
$
|
1,075,065
|
$
|
433,675
|
$
|
636,227
|
||||||||||||||
Liabilities and
Equity
|
1,737,168
|
136,270
|
229,694
|
375,371
|
236,259
|
80,535
|
1,406,319
|
|||||||||||||||||||||
Periodic repricing GAP
|
(294,360
|
)
|
110,942
|
(33,737
|
)
|
(204,699
|
)
|
838,806
|
353,140
|
(770,092
|
)
|
|||||||||||||||||
Cumulative GAP
|
(294,360
|
)
|
(183,418
|
)
|
(217,154
|
)
|
(421,854
|
)
|
416,952
|
770,092
|
0
|
|||||||||||||||||
RSA/RSL
|
0.83
|
x
|
1.81
|
x
|
0.85
|
x
|
0.45
|
x
|
4.55
|
x
|
5.38
|
x
|
0.45
|
x
|
||||||||||||||
Cumulative GAP to total assets
|
(7.01
|
)%
|
(4.37
|
)%
|
(5.17
|
)%
|
(10.04
|
)%
|
9.92
|
%
|
18.33
|
%
|
0.00
|
%
|
Board Authorizations
|
Repurchases*
|
Shares Available for Repurchase
|
||
Average Price ($)
|
# of Shares
|
|||
1998
|
500,000
|
-
|
0
|
|
1999
|
0
|
14.45
|
144,669
|
|
2000
|
1,000,000
|
10.25
|
763,470
|
|
2001
|
0
|
13.35
|
489,440
|
|
2002
|
0
|
17.71
|
396,316
|
|
2003
|
1,000,000
|
19.62
|
259,235
|
|
2004
|
0
|
23.14
|
60,500
|
|
2005
|
0
|
-
|
0
|
|
2006
|
0
|
-
|
0
|
|
2007
|
0
|
28.56
|
216,150
|
|
2008
|
0
|
25.53
|
102,850
|
|
2009-2018
|
0
|
-
|
0
|
|
Total
|
2,500,000
|
15.93
|
2,432,629
|
67,371
|
(dollars in thousands)
December 31
|
2018
|
2017
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
64,632
|
$
|
47,528
|
||||
Interest bearing deposits
|
75,718
|
127,746
|
||||||
Federal funds sold
|
1,100
|
0
|
||||||
Cash and cash equivalents
|
141,450
|
175,274
|
||||||
Certificates of deposit in other banks
|
3,920
|
9,800
|
||||||
Securities available-for-sale at fair value (amortized cost of $602,114 and $590,199, respectively)
|
593,746
|
585,761
|
||||||
Securities held-to-maturity at amortized cost (fair value of $649 and $660, respectively)
|
649
|
659
|
||||||
Equity securities at fair value
|
1,173
|
0
|
||||||
Loans held for sale
|
2,461
|
1,033
|
||||||
Loans
|
3,208,638
|
3,122,940
|
||||||
Allowance for loan and lease losses
|
(35,908
|
)
|
(36,151
|
)
|
||||
Net loans
|
3,172,730
|
3,086,789
|
||||||
Premises and equipment, net
|
45,291
|
46,318
|
||||||
Federal Home Loan Bank stock
|
14,713
|
17,927
|
||||||
Federal Reserve Bank stock
|
4,887
|
4,887
|
||||||
Goodwill
|
65,490
|
65,490
|
||||||
Bank owned life insurance
|
67,076
|
65,354
|
||||||
Mortgage servicing rights
|
3,607
|
3,484
|
||||||
Other real estate owned
|
27,273
|
31,996
|
||||||
Other assets
|
57,150
|
41,459
|
||||||
Total assets
|
$
|
4,201,616
|
$
|
4,136,231
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$
|
803,316
|
$
|
790,930
|
||||
Interest bearing
|
2,502,634
|
2,472,933
|
||||||
Total deposits
|
3,305,950
|
3,263,863
|
||||||
Repurchase agreements
|
232,712
|
243,814
|
||||||
Federal funds purchased
|
1,180
|
7,312
|
||||||
Advances from Federal Home Loan Bank
|
436
|
845
|
||||||
Long-term debt
|
59,341
|
59,341
|
||||||
Deferred taxes
|
3,363
|
4,434
|
||||||
Other liabilities
|
34,484
|
25,923
|
||||||
Total liabilities
|
3,637,466
|
3,605,532
|
||||||
Commitments and contingencies (notes 18 and 20)
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock, 300,000 shares authorized and unissued
|
-
|
-
|
||||||
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2018 – 17,732,853; 2017 – 17,692,912
|
88,665
|
88,465
|
||||||
Capital surplus
|
223,161
|
221,472
|
||||||
Retained earnings
|
258,935
|
224,268
|
||||||
Accumulated other comprehensive loss, net of tax
|
(6,611
|
)
|
(3,506
|
)
|
||||
Total shareholders’ equity
|
564,150
|
530,699
|
||||||
Total liabilities and shareholders’ equity
|
$
|
4,201,616
|
$
|
4,136,231
|
(in thousands except per share data)
Year Ended December 31
|
2018
|
2017
|
2016
|
|||||||||
Interest income:
|
||||||||||||
Interest and fees on loans, including loans held for sale
|
$
|
154,552
|
$
|
141,497
|
$
|
133,965
|
||||||
Interest and dividends on securities:
|
||||||||||||
Taxable
|
10,015
|
8,715
|
8,265
|
|||||||||
Tax exempt
|
2,796
|
3,011
|
2,718
|
|||||||||
Dividends on Federal Reserve Bank and Federal Home Loan Bank stock
|
1,303
|
1,189
|
1,011
|
|||||||||
Interest on Federal Reserve Bank deposits
|
2,525
|
1,068
|
536
|
|||||||||
Other, including interest on federal funds sold
|
259
|
216
|
81
|
|||||||||
Total interest income
|
171,450
|
155,696
|
146,576
|
|||||||||
Interest expense:
|
||||||||||||
Interest on deposits
|
23,714
|
14,350
|
10,921
|
|||||||||
Interest on repurchase agreements and federal funds purchased
|
3,312
|
1,832
|
1,155
|
|||||||||
Interest on advances from Federal Home Loan Bank
|
27
|
427
|
62
|
|||||||||
Interest on long-term debt
|
2,242
|
1,685
|
1,417
|
|||||||||
Total interest expense
|
29,295
|
18,294
|
13,555
|
|||||||||
Net interest income
|
142,155
|
137,402
|
133,021
|
|||||||||
Provision for loan losses
|
6,167
|
7,521
|
7,872
|
|||||||||
Net interest income after provision for loan losses
|
135,988
|
129,881
|
125,149
|
|||||||||
Noninterest income:
|
||||||||||||
Service charges on deposit accounts
|
25,974
|
25,121
|
24,966
|
|||||||||
Gains on sales of loans, net
|
1,288
|
1,320
|
1,831
|
|||||||||
Trust and wealth management income
|
11,313
|
10,453
|
9,585
|
|||||||||
Loan related fees
|
3,729
|
3,678
|
4,107
|
|||||||||
Bank owned life insurance
|
3,672
|
2,172
|
2,199
|
|||||||||
Brokerage revenue
|
1,354
|
1,324
|
1,314
|
|||||||||
Securities gains (losses)
|
(85
|
)
|
73
|
522
|
||||||||
Other noninterest income
|
4,707
|
4,367
|
3,917
|
|||||||||
Total noninterest income
|
51,952
|
48,508
|
48,441
|
|||||||||
Noninterest expense:
|
||||||||||||
Officer salaries and employee benefits
|
12,906
|
11,823
|
12,198
|
|||||||||
Other salaries and employee benefits
|
48,656
|
47,006
|
44,877
|
|||||||||
Occupancy, net
|
8,167
|
8,072
|
7,999
|
|||||||||
Equipment
|
2,878
|
3,049
|
2,950
|
|||||||||
Data processing
|
6,680
|
7,100
|
6,497
|
|||||||||
Bank franchise tax
|
6,557
|
5,478
|
5,671
|
|||||||||
Legal fees
|
1,637
|
1,668
|
1,906
|
|||||||||
Professional fees
|
2,093
|
1,991
|
1,890
|
|||||||||
Advertising and marketing
|
2,995
|
2,721
|
2,614
|
|||||||||
FDIC insurance
|
1,171
|
1,239
|
1,789
|
|||||||||
Other real estate owned provision and expense
|
4,324
|
4,500
|
2,879
|
|||||||||
Repossession expense
|
1,249
|
911
|
1,156
|
|||||||||
Amortization of limited partnership investments
|
2,527
|
2,419
|
2,623
|
|||||||||
Other noninterest expense
|
15,558
|
11,901
|
12,077
|
|||||||||
Total noninterest expense
|
117,398
|
109,878
|
107,126
|
|||||||||
Income before income taxes
|
70,542
|
68,511
|
66,464
|
|||||||||
Income taxes
|
11,314
|
17,018
|
19,118
|
|||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
||||||
Other comprehensive loss:
|
||||||||||||
Unrealized holding losses on securities available-for-sale:
|
||||||||||||
Unrealized holding losses arising during the period
|
(5,393
|
)
|
(820
|
)
|
(4,578
|
)
|
||||||
Less: Reclassification adjustments for realized gains (losses) included in net income
|
(821
|
)
|
73
|
522
|
||||||||
Tax benefit
|
(960
|
)
|
(312
|
)
|
(1,785
|
)
|
||||||
Other comprehensive loss, net of tax
|
(3,612
|
)
|
(581
|
)
|
(3,315
|
)
|
||||||
Comprehensive income
|
$
|
55,616
|
$
|
50,912
|
$
|
44,031
|
||||||
Basic earnings per share
|
$
|
3.35
|
$
|
2.92
|
$
|
2.70
|
||||||
Diluted earnings per share
|
$
|
3.35
|
$
|
2.92
|
$
|
2.70
|
||||||
Weighted average shares outstanding-basic
|
17,687
|
17,631
|
17,548
|
|||||||||
Weighted average shares outstanding-diluted
|
17,703
|
17,653
|
17,566
|
|||||||||
Dividends declared per share
|
$
|
1.38
|
$
|
1.30
|
$
|
1.26
|
(in thousands except per share and share amounts)
|
Common Shares
|
Common Stock
|
Capital Surplus
|
Retained Earnings
|
Accumulated Other Comprehensive Income (Loss), Net of Tax
|
Total
|
||||||||||||||||||
Balance, January 1, 2016
|
17,536,914
|
$
|
87,685
|
$
|
217,032
|
$
|
169,855
|
$
|
1,011
|
$
|
475,583
|
|||||||||||||
Net income
|
47,346
|
47,346
|
||||||||||||||||||||||
Other comprehensive loss, net of tax of $(1,785)
|
(3,315
|
)
|
(3,315
|
)
|
||||||||||||||||||||
Cash dividends declared ($1.26 per share)
|
(22,123
|
)
|
(22,123
|
)
|
||||||||||||||||||||
Issuance of common stock
|
138,605
|
693
|
2,292
|
2,985
|
||||||||||||||||||||
Repurchase of common stock
|
(11,574
|
)
|
(57
|
)
|
(325
|
)
|
(382
|
)
|
||||||||||||||||
Vesting of restricted stock
|
(52,963
|
)
|
(265
|
)
|
265
|
0
|
||||||||||||||||||
Issuance of restricted stock
|
18,069
|
90
|
(90
|
)
|
0
|
|||||||||||||||||||
Forfeiture of restricted stock
|
(356
|
)
|
(2
|
)
|
2
|
0
|
||||||||||||||||||
Stock-based compensation and related excess tax benefits
|
521
|
521
|
||||||||||||||||||||||
Balance, December 31, 2016
|
17,628,695
|
88,144
|
219,697
|
195,078
|
(2,304
|
)
|
500,615
|
|||||||||||||||||
Net income
|
51,493
|
51,493
|
||||||||||||||||||||||
Other comprehensive loss, net of tax of $(312)
|
(581
|
)
|
(581
|
)
|
||||||||||||||||||||
Cash dividends declared ($1.30 per share)
|
(22,924
|
)
|
(22,924
|
)
|
||||||||||||||||||||
Issuance of common stock
|
55,191
|
276
|
1,237
|
1,513
|
||||||||||||||||||||
Repurchase of common stock
|
0
|
0
|
0
|
0
|
||||||||||||||||||||
Vesting of restricted stock
|
(11,965
|
)
|
(60
|
)
|
60
|
0
|
||||||||||||||||||
Issuance of restricted stock
|
23,668
|
118
|
(118
|
)
|
0
|
|||||||||||||||||||
Forfeiture of restricted stock
|
(2,677
|
)
|
(13
|
)
|
13
|
0
|
||||||||||||||||||
Stock-based compensation and related excess tax benefits
|
583
|
583
|
||||||||||||||||||||||
Implementation of ASU 2018-02
|
621
|
(621
|
)
|
0
|
||||||||||||||||||||
Balance, December 31, 2017
|
17,692,912
|
88,465
|
221,472
|
224,268
|
(3,506
|
)
|
530,699
|
|||||||||||||||||
Net income
|
59,228
|
59,228
|
||||||||||||||||||||||
Other comprehensive loss, net of tax of $(960)
|
(3,612
|
)
|
(3,612
|
)
|
||||||||||||||||||||
Cash dividends declared ($1.38 per share)
|
(24,412
|
)
|
(24,412
|
)
|
||||||||||||||||||||
Issuance of common stock
|
42,133
|
211
|
1,019
|
1,230
|
||||||||||||||||||||
Vesting of restricted stock
|
(11,997
|
)
|
(60
|
)
|
60
|
0
|
||||||||||||||||||
Issuance of restricted stock
|
11,320
|
57
|
(57
|
)
|
0
|
|||||||||||||||||||
Forfeiture of restricted stock
|
(1,515
|
)
|
(8
|
)
|
8
|
0
|
||||||||||||||||||
Stock-based compensation
|
659
|
659
|
||||||||||||||||||||||
Implementation of ASU 2014-09
|
358
|
358
|
||||||||||||||||||||||
Implementation of ASU 2016-01
|
(507
|
)
|
507
|
0
|
||||||||||||||||||||
Balance, December 31, 2018
|
17,732,853
|
$
|
88,665
|
$
|
223,161
|
$
|
258,935
|
$
|
(6,611
|
)
|
$
|
564,150
|
(in thousands)
Year Ended December 31
|
2018
|
2017
|
2016
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
3,786
|
4,007
|
3,904
|
|||||||||
Deferred taxes
|
(246
|
)
|
(3,090
|
)
|
701
|
|||||||
Stock-based compensation
|
710
|
636
|
458
|
|||||||||
Excess tax benefits of stock-based compensation
|
0
|
0
|
100
|
|||||||||
Provision for loan losses
|
6,167
|
7,521
|
7,872
|
|||||||||
Write-downs of other real estate owned and other repossessed assets
|
2,530
|
3,034
|
1,214
|
|||||||||
Gains on sale of loans held for sale
|
(1,288
|
)
|
(1,320
|
)
|
(1,831
|
)
|
||||||
Securities (gains) losses
|
85
|
(73
|
)
|
(522
|
)
|
|||||||
Gain on debt repurchase
|
0
|
(560
|
)
|
0
|
||||||||
Gains (losses) on sale of assets, net
|
(175
|
)
|
40
|
46
|
||||||||
Proceeds from sale of mortgage loans held for sale
|
56,689
|
59,400
|
81,441
|
|||||||||
Funding of mortgage loans held for sale
|
(56,829
|
)
|
(57,869
|
)
|
(79,682
|
)
|
||||||
Amortization of securities premiums and discounts, net
|
4,679
|
3,437
|
2,452
|
|||||||||
Change in cash surrender value of bank owned life insurance
|
(2,924
|
)
|
(1,473
|
)
|
(1,546
|
)
|
||||||
Mortgage servicing rights:
|
||||||||||||
Fair value adjustments
|
343
|
361
|
324
|
|||||||||
New servicing assets created
|
(466
|
)
|
(412
|
)
|
(521
|
)
|
||||||
Changes in:
|
||||||||||||
Other assets
|
(15,788
|
)
|
(4,412
|
)
|
(3,205
|
)
|
||||||
Other liabilities
|
8,986
|
1,631
|
2,874
|
|||||||||
Net cash provided by operating activities
|
65,487
|
62,351
|
61,425
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Certificates of deposit in other banks:
|
||||||||||||
Purchase of certificates of deposit
|
0
|
(11,760
|
)
|
0
|
||||||||
Maturity of certificates of deposit
|
5,880
|
2,940
|
2,852
|
|||||||||
Securities available-for-sale (AFS):
|
||||||||||||
Purchase of AFS securities
|
(281,511
|
)
|
(231,680
|
)
|
(176,236
|
)
|
||||||
Proceeds from sales of AFS securities
|
153,315
|
87,472
|
54,446
|
|||||||||
Proceeds from prepayments, calls, and maturities of AFS securities
|
109,701
|
159,584
|
104,302
|
|||||||||
Securities held-to-maturity (HTM):
|
||||||||||||
Proceeds from prepayments and maturities of HTM securities
|
10
|
207
|
795
|
|||||||||
Change in loans, net
|
(93,151
|
)
|
(194,548
|
)
|
(74,379
|
)
|
||||||
Purchase of premises and equipment
|
(2,832
|
)
|
(2,400
|
)
|
(3,498
|
)
|
||||||
Proceeds from sale and retirement of premises and equipment
|
97
|
25
|
10
|
|||||||||
Redemption of stock by Federal Home Loan Bank
|
3,214
|
0
|
0
|
|||||||||
Proceeds from sale of other real estate owned and repossessed assets
|
3,485
|
3,574
|
5,601
|
|||||||||
Proceeds from settlement of bank owned life insurance
|
1,202
|
0
|
0
|
|||||||||
Net cash used in investing activities
|
(100,590
|
)
|
(186,586
|
)
|
(86,107
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Change in deposits, net
|
42,087
|
182,555
|
100,526
|
|||||||||
Change in repurchase agreements and federal funds purchased, net
|
(17,234
|
)
|
(4,755
|
)
|
1,060
|
|||||||
Advances from Federal Home Loan Bank
|
0
|
350,000
|
50,000
|
|||||||||
Payments on advances from Federal Home Loan Bank
|
(409
|
)
|
(350,099
|
)
|
(150,112
|
)
|
||||||
Repurchase of long-term debt
|
0
|
(1,440
|
)
|
0
|
||||||||
Issuance of common stock
|
1,230
|
1,513
|
2,985
|
|||||||||
Repurchase of common stock
|
0
|
0
|
(382
|
)
|
||||||||
Excess tax benefits of stock-based compensation
|
0
|
0
|
(100
|
)
|
||||||||
Dividends paid
|
(24,395
|
)
|
(22,981
|
)
|
(22,190
|
)
|
||||||
Net cash provided by (used in) financing activities
|
1,279
|
154,793
|
(18,213
|
)
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(33,824
|
)
|
30,558
|
(42,895
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
175,274
|
144,716
|
187,611
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
141,450
|
$
|
175,274
|
$
|
144,716
|
||||||
Supplemental disclosures:
|
||||||||||||
Income taxes paid
|
$
|
9,700
|
$
|
21,400
|
$
|
19,244
|
||||||
Interest paid
|
28,621
|
17,266
|
13,426
|
|||||||||
Non-cash activities:
|
||||||||||||
Loans to facilitate the sale of other real estate owned and repossessed assets
|
4,385
|
2,679
|
3,964
|
|||||||||
Common stock dividends accrued, paid in subsequent quarter
|
221
|
205
|
209
|
|||||||||
Real estate acquired in settlement of loans
|
5,459
|
5,235
|
5,900
|
·
|
The timing and pattern of transfer of the nonlease component(s) and associated lease
component are the same.
|
·
|
The lease component, if accounted for separately, would be classified as an operating
lease.
|
·
|
Service charges on deposit accounts represents general service fees for monthly account maintenance and
activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation
is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied.
|
·
|
Trust and wealth management income represents monthly or quarterly fees due from wealth management customers
as consideration for managing the customers’ assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services, and similar fiduciary activities. Revenue is recognized
when our performance obligation is completed each month or quarter, which is generally the time that payment is received.
|
·
|
Brokerage revenue is transaction based and collected upon the settlement of the transaction. Other sales,
such as life insurance, generate commissions from other third parties. These fees are generally collected monthly.
|
·
|
Other noninterest income primarily includes items such as letter of credit fees, gains on sale of loans held
for sale and servicing fees related to mortgage and commercial loans, none of which are subject to the requirements of ASC 606.
|
·
|
The amount of and reasons for transfers between Level 1 and Level 2 of the fair value
hierarchy
|
·
|
The policy for timing of transfers between levels
|
·
|
The valuation processes for Level 3 fair value measurements
|
·
|
For investments in certain entities that calculate net asset value, an entity is
required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and
|
·
|
The amendments clarify that the measurement uncertainty disclosure is to communicate
information about the uncertainty in measurement as of the reporting date.
|
·
|
The changes in unrealized gains and losses for the period included in other
comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and
|
·
|
The range and weighted average of significant unobservable inputs used to develop Level
3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative
information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements.
|
·
|
Those incurred in a hosting arrangement that is a service contract, and
|
·
|
Those incurred to develop or obtain internal-use software (and hosting arrangements that
include an internal-use software license.
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
219,358
|
$
|
48
|
$
|
(1,468
|
)
|
$
|
217,938
|
|||||||
State and political subdivisions
|
126,280
|
633
|
(2,425
|
)
|
124,488
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
255,969
|
397
|
(5,547
|
)
|
250,819
|
|||||||||||
Other debt securities
|
507
|
0
|
(6
|
)
|
501
|
|||||||||||
Total available-for-sale securities
|
$
|
602,114
|
$
|
1,078
|
$
|
(9,446
|
)
|
$
|
593,746
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
State and political subdivisions
|
$
|
649
|
$
|
0
|
$
|
0
|
$
|
649
|
||||||||
Total held-to-maturity securities
|
$
|
649
|
$
|
0
|
$
|
0
|
$
|
649
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
211,574
|
$
|
170
|
$
|
(1,172
|
)
|
$
|
210,572
|
|||||||
State and political subdivisions
|
144,159
|
2,017
|
(1,161
|
)
|
145,015
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
208,959
|
357
|
(4,007
|
)
|
205,309
|
|||||||||||
Other debt securities
|
507
|
0
|
0
|
507
|
||||||||||||
Total debt securities
|
565,199
|
2,544
|
(6,340
|
)
|
561,403
|
|||||||||||
CRA investment funds
|
25,000
|
76
|
(718
|
)
|
24,358
|
|||||||||||
Total available-for-sale securities
|
$
|
590,199
|
$
|
2,620
|
$
|
(7,058
|
)
|
$
|
585,761
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
State and political subdivisions
|
$
|
659
|
$
|
1
|
$
|
0
|
$
|
660
|
||||||||
Total held-to-maturity securities
|
$
|
659
|
$
|
1
|
$
|
0
|
$
|
660
|
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
(in thousands)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
Due in one year or less
|
$
|
65,507
|
$
|
65,393
|
$
|
0
|
$
|
0
|
||||||||
Due after one through five years
|
93,465
|
92,943
|
649
|
649
|
||||||||||||
Due after five through ten years
|
84,350
|
83,231
|
0
|
0
|
||||||||||||
Due after ten years
|
102,316
|
100,859
|
0
|
0
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
255,969
|
250,819
|
0
|
0
|
||||||||||||
Other debt securities
|
507
|
501
|
0
|
0
|
||||||||||||
Total debt securities
|
$
|
602,114
|
$
|
593,746
|
$
|
649
|
$
|
649
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
78,905
|
$
|
(271
|
)
|
$
|
78,634
|
|||||
State and political subdivisions
|
21,707
|
(194
|
)
|
21,513
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
61,940
|
(377
|
)
|
61,563
|
||||||||
Other debt securities
|
507
|
(6
|
)
|
501
|
||||||||
Total <12 months temporarily impaired AFS securities
|
163,059
|
(848
|
)
|
162,211
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
97,955
|
(1,197
|
)
|
96,758
|
||||||||
State and political subdivisions
|
51,911
|
(2,231
|
)
|
49,680
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
147,658
|
(5,170
|
)
|
142,488
|
||||||||
Other debt securities
|
0
|
0
|
0
|
|||||||||
Total ≥12 months temporarily impaired AFS securities
|
297,524
|
(8,598
|
)
|
288,926
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
176,860
|
(1,468
|
)
|
175,392
|
||||||||
State and political subdivisions
|
73,618
|
(2,425
|
)
|
71,193
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
209,598
|
(5,547
|
)
|
204,051
|
||||||||
Other debt securities
|
507
|
(6
|
)
|
501
|
||||||||
Total temporarily impaired AFS securities
|
$
|
460,583
|
$
|
(9,446
|
)
|
$
|
451,137
|
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
136,688
|
$
|
(840
|
)
|
$
|
135,848
|
|||||
State and political subdivisions
|
34,283
|
(416
|
)
|
33,867
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
62,768
|
(643
|
)
|
62,125
|
||||||||
Other debt securities
|
0
|
0
|
0
|
|||||||||
Total debt securities
|
233,739
|
(1,899
|
)
|
231,840
|
||||||||
CRA investment funds
|
7,500
|
(105
|
)
|
7,395
|
||||||||
Total <12 months temporarily impaired AFS securities
|
241,239
|
(2,004
|
)
|
239,235
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
23,885
|
(332
|
)
|
23,553
|
||||||||
State and political subdivisions
|
16,930
|
(745
|
)
|
16,185
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
117,827
|
(3,364
|
)
|
114,463
|
||||||||
Other debt securities
|
0
|
0
|
0
|
|||||||||
Total debt securities
|
158,642
|
(4,441
|
)
|
154,201
|
||||||||
CRA investment funds
|
15,000
|
(613
|
)
|
14,387
|
||||||||
Total ≥12 months temporarily impaired AFS securities
|
173,642
|
(5,054
|
)
|
168,588
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
160,573
|
(1,172
|
)
|
159,401
|
||||||||
State and political subdivisions
|
51,213
|
(1,161
|
)
|
50,052
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
180,595
|
(4,007
|
)
|
176,588
|
||||||||
Other debt securities
|
0
|
0
|
0
|
|||||||||
Total debt securities
|
392,381
|
(6,340
|
)
|
386,041
|
||||||||
CRA investment funds
|
22,500
|
(718
|
)
|
21,782
|
||||||||
Total temporarily impaired AFS securities
|
$
|
414,881
|
$
|
(7,058
|
)
|
$
|
407,823
|
(in thousands)
|
December 31
2018
|
December 31
2017
|
||||||
Commercial construction
|
$
|
82,715
|
$
|
76,479
|
||||
Commercial secured by real estate
|
1,183,093
|
1,188,680
|
||||||
Equipment lease financing
|
1,740
|
3,042
|
||||||
Commercial other
|
377,198
|
351,034
|
||||||
Real estate construction
|
57,160
|
67,358
|
||||||
Real estate mortgage
|
722,417
|
709,570
|
||||||
Home equity
|
106,299
|
99,356
|
||||||
Consumer direct
|
144,289
|
137,754
|
||||||
Consumer indirect
|
533,727
|
489,667
|
||||||
Total loans
|
$
|
3,208,638
|
$
|
3,122,940
|
(in thousands)
|
December 31
2018
|
December 31
2017
|
||||||
Commercial:
|
||||||||
Commercial construction
|
$
|
639
|
$
|
1,207
|
||||
Commercial secured by real estate
|
4,537
|
7,028
|
||||||
Commercial other
|
797
|
934
|
||||||
Residential:
|
||||||||
Real estate construction
|
22
|
318
|
||||||
Real estate mortgage
|
5,395
|
8,243
|
||||||
Home equity
|
477
|
389
|
||||||
Total nonaccrual loans
|
$
|
11,867
|
$
|
18,119
|
December 31, 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
|
$
|
87
|
$
|
58
|
$
|
698
|
$
|
843
|
$
|
81,872
|
$
|
82,715
|
$
|
58
|
||||||||||||||
Commercial secured by real estate
|
6,287
|
1,204
|
8,776
|
16,267
|
1,166,826
|
1,183,093
|
4,632
|
|||||||||||||||||||||
Equipment lease financing
|
0
|
0
|
0
|
0
|
1,740
|
1,740
|
0
|
|||||||||||||||||||||
Commercial other
|
1,057
|
94
|
1,067
|
2,218
|
374,980
|
377,198
|
581
|
|||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||||||
Real estate construction
|
144
|
438
|
28
|
610
|
56,550
|
57,160
|
6
|
|||||||||||||||||||||
Real estate mortgage
|
1,272
|
5,645
|
7,607
|
14,524
|
707,893
|
722,417
|
4,095
|
|||||||||||||||||||||
Home equity
|
898
|
365
|
441
|
1,704
|
104,595
|
106,299
|
246
|
|||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer direct
|
918
|
191
|
74
|
1,183
|
143,106
|
144,289
|
74
|
|||||||||||||||||||||
Consumer indirect
|
4,715
|
975
|
507
|
6,197
|
527,530
|
533,727
|
506
|
|||||||||||||||||||||
Total
|
$
|
15,378
|
$
|
8,970
|
$
|
19,198
|
$
|
43,546
|
$
|
3,165,092
|
$
|
3,208,638
|
$
|
10,198
|
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
|
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.
|
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Equipment Leases
|
Commercial Other
|
Total
|
|||||||||||||||
December 31, 2018
|
||||||||||||||||||||
Pass
|
$
|
74,222
|
$
|
1,038,309
|
$
|
1,740
|
$
|
327,431
|
$
|
1,441,702
|
||||||||||
Watch
|
3,070
|
71,834
|
0
|
28,986
|
103,890
|
|||||||||||||||
OAEM
|
1,594
|
19,734
|
0
|
5,735
|
27,063
|
|||||||||||||||
Substandard
|
3,829
|
53,125
|
0
|
14,970
|
71,924
|
|||||||||||||||
Doubtful
|
0
|
91
|
0
|
76
|
167
|
|||||||||||||||
Total
|
$
|
82,715
|
$
|
1,183,093
|
$
|
1,740
|
$
|
377,198
|
$
|
1,644,746
|
||||||||||
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
|
(in thousands)
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer
Indirect
|
Total
|
||||||||||||||||||
December 31, 2018
|
||||||||||||||||||||||||
Performing
|
$
|
57,132
|
$
|
712,927
|
$
|
105,576
|
$
|
144,215
|
$
|
533,221
|
$
|
1,553,071
|
||||||||||||
Nonperforming (1)
|
28
|
9,490
|
723
|
74
|
506
|
10,821
|
||||||||||||||||||
Total
|
$
|
57,160
|
$
|
722,417
|
$
|
106,299
|
$
|
144,289
|
$
|
533,727
|
$
|
1,563,892
|
||||||||||||
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
|
December 31, 2018
|
||||||||||||||||||||
(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
|
$
|
4,100
|
$
|
4,100
|
$
|
0
|
$
|
3,923
|
$
|
171
|
||||||||||
Commercial secured by real estate
|
29,645
|
31,409
|
0
|
30,250
|
1,412
|
|||||||||||||||
Equipment lease financing
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
8,285
|
9,982
|
0
|
8,774
|
530
|
|||||||||||||||
Real estate construction
|
0
|
0
|
0
|
106
|
0
|
|||||||||||||||
Real estate mortgage
|
1,882
|
1,882
|
0
|
1,666
|
41
|
|||||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
127
|
127
|
50
|
42
|
0
|
|||||||||||||||
Commercial secured by real estate
|
1,854
|
2,983
|
605
|
2,051
|
1
|
|||||||||||||||
Commercial other
|
473
|
473
|
146
|
285
|
16
|
|||||||||||||||
Totals:
|
||||||||||||||||||||
Commercial construction
|
4,227
|
4,227
|
50
|
3,965
|
171
|
|||||||||||||||
Commercial secured by real estate
|
31,499
|
34,392
|
605
|
32,301
|
1,413
|
|||||||||||||||
Equipment lease financing
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
8,758
|
10,455
|
146
|
9,059
|
546
|
|||||||||||||||
Real estate construction
|
0
|
0
|
0
|
106
|
0
|
|||||||||||||||
Real estate mortgage
|
1,882
|
1,882
|
0
|
1,666
|
41
|
|||||||||||||||
Total
|
$
|
46,366
|
$
|
50,956
|
$
|
801
|
$
|
47,097
|
$
|
2,171
|
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
|
December 31, 2016
|
||||||||||||||||||||
(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
|
$
|
4,102
|
$
|
4,123
|
$
|
0
|
$
|
4,367
|
$
|
218
|
||||||||||
Commercial secured by real estate
|
29,025
|
29,594
|
0
|
31,136
|
1,609
|
|||||||||||||||
Equipment lease financing
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
11,215
|
13,155
|
0
|
11,561
|
632
|
|||||||||||||||
Real estate mortgage
|
1,483
|
1,483
|
0
|
1,691
|
52
|
|||||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
1,507
|
1,509
|
213
|
2,290
|
0
|
|||||||||||||||
Commercial secured by real estate
|
4,731
|
5,885
|
1,035
|
4,151
|
19
|
|||||||||||||||
Commercial other
|
139
|
139
|
65
|
483
|
0
|
|||||||||||||||
Totals:
|
||||||||||||||||||||
Commercial construction
|
5,609
|
5,632
|
213
|
6,657
|
218
|
|||||||||||||||
Commercial secured by real estate
|
33,756
|
35,479
|
1,035
|
35,287
|
1,628
|
|||||||||||||||
Equipment lease financing
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
11,354
|
13,294
|
65
|
12,044
|
632
|
|||||||||||||||
Real estate mortgage
|
1,483
|
1,483
|
0
|
1,691
|
52
|
|||||||||||||||
Total
|
$
|
52,202
|
$
|
55,888
|
$
|
1,313
|
$
|
55,679
|
$
|
2,530
|
Year Ended
December 31, 2018
|
||||||||||||||||||||
(in thousands)
|
Number of Loans
|
Term Modification
|
Rate Modification
|
Combination
|
Post-Modification Outstanding Balance
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial construction
|
5
|
$
|
2,182
|
$
|
0
|
$
|
15
|
$
|
2,197
|
|||||||||||
Commercial secured by real estate
|
24
|
4,004
|
0
|
1,383
|
5,387
|
|||||||||||||||
Commercial other
|
8
|
465
|
0
|
0
|
465
|
|||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Real estate mortgage
|
3
|
264
|
0
|
704
|
968
|
|||||||||||||||
Total troubled debt restructurings
|
40
|
$
|
6,915
|
$
|
0
|
$
|
2,102
|
$
|
9,017
|
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
|
(in thousands)
|
Year Ended
December 31, 2018
|
|||||||
Number of Loans
|
Recorded Balance
|
|||||||
Commercial:
|
||||||||
Commercial construction
|
2
|
$
|
148
|
|||||
Commercial secured by real estate
|
1
|
17
|
||||||
Commercial other
|
1
|
84
|
||||||
Residential:
|
||||||||
Real estate construction
|
0
|
0
|
||||||
Total defaulted restructured loans
|
4
|
$
|
249
|
(in thousands)
|
Year Ended
December 31, 2017
|
|||||||
Number of Loans
|
Recorded Balance
|
|||||||
Commercial:
|
||||||||
Commercial construction
|
0
|
$
|
0
|
|||||
Commercial secured by real estate
|
0
|
0
|
||||||
Commercial other
|
0
|
0
|
||||||
Residential:
|
||||||||
Real estate construction
|
1
|
846
|
||||||
Total defaulted restructured loans
|
1
|
$
|
846
|
(in thousands)
Year Ended December 31
|
2018
|
2017
|
2016
|
|||||||||
Net gain on sale of mortgage loans held for sale
|
$
|
1,288
|
$
|
1,232
|
$
|
1,831
|
||||||
Net loan servicing income (expense)
|
||||||||||||
Servicing fees
|
1,275
|
1,255
|
1,239
|
|||||||||
Late fees
|
73
|
84
|
78
|
|||||||||
Ancillary fees
|
282
|
239
|
322
|
|||||||||
Fair value adjustments
|
(343
|
)
|
(361
|
)
|
(324
|
)
|
||||||
Net loan servicing income
|
1,287
|
1,217
|
1,315
|
|||||||||
Mortgage banking income
|
$
|
2,575
|
$
|
2,449
|
$
|
3,146
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Fair value of MSRs, beginning of period
|
$
|
3,484
|
$
|
3,433
|
$
|
3,236
|
||||||
New servicing assets created
|
466
|
412
|
521
|
|||||||||
Change in fair value during the period due to:
|
||||||||||||
Time decay (1)
|
(189
|
)
|
(184
|
)
|
(175
|
)
|
||||||
Payoffs (2)
|
(227
|
)
|
(268
|
)
|
(313
|
)
|
||||||
Changes in valuation inputs or assumptions (3)
|
73
|
91
|
164
|
|||||||||
Fair value of MSRs, end of period
|
$
|
3,607
|
$
|
3,484
|
$
|
3,433
|
(1)
|
Represents decrease in value due to regularly scheduled loan principal payments and partial loan
paydowns.
|
(2)
|
Represents decrease in value due to loans that paid off during the period.
|
(3)
|
Represents change in value resulting from market-driven changes in interest rates.
|
(in thousands)
|
2018
|
2017
|
||||||
Related party extensions of credit, beginning of period
|
$
|
16,832
|
$
|
27,081
|
||||
New loans and advances on lines of credit
|
6,425
|
522
|
||||||
Repayments
|
(3,794
|
)
|
(2,615
|
)
|
||||
Increase (decrease) due to changes in related parties
|
0
|
(8,156
|
)
|
|||||
Related party extensions of credit, end of period
|
$
|
19,463
|
$
|
16,832
|
2018
|
||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Equipment Lease Financing
|
Commercial Other
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer Indirect
|
Total
|
||||||||||||||||||||||||||||||
ALLL
|
||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$
|
686
|
$
|
14,509
|
$
|
18
|
$
|
5,039
|
$
|
660
|
$
|
5,688
|
$
|
857
|
$
|
1,863
|
$
|
6,831
|
$
|
36,151
|
||||||||||||||||||||
Provision charged to expense
|
115
|
786
|
(6
|
)
|
824
|
(115
|
)
|
(336
|
)
|
39
|
572
|
4,288
|
6,167
|
|||||||||||||||||||||||||||
Losses charged off
|
0
|
(988
|
)
|
0
|
(1,513
|
)
|
(33
|
)
|
(1,004
|
)
|
(69
|
)
|
(997
|
)
|
(6,394
|
)
|
(10,998
|
)
|
||||||||||||||||||||||
Recoveries
|
61
|
224
|
0
|
643
|
0
|
85
|
14
|
445
|
3,116
|
4,588
|
||||||||||||||||||||||||||||||
Balance, end of year
|
$
|
862
|
$
|
14,531
|
$
|
12
|
$
|
4,993
|
$
|
512
|
$
|
4,433
|
$
|
841
|
$
|
1,883
|
$
|
7,841
|
$
|
35,908
|
||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
50
|
$
|
605
|
$
|
0
|
$
|
146
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
801
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
812
|
$
|
13,926
|
$
|
12
|
$
|
4,847
|
$
|
512
|
$
|
4,433
|
$
|
841
|
$
|
1,883
|
$
|
7,841
|
$
|
35,107
|
||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
4,227
|
$
|
31,499
|
$
|
0
|
$
|
8,758
|
$
|
0
|
$
|
1,882
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
46,366
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
78,488
|
$
|
1,151,594
|
$
|
1,740
|
$
|
368,440
|
$
|
57,160
|
$
|
720,535
|
$
|
106,299
|
$
|
144,289
|
$
|
533,727
|
$
|
3,162,272
|
2017
|
||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Equipment Lease Financing
|
Commercial Other
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer Indirect
|
Total
|
||||||||||||||||||||||||||||||
ALLL
|
||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$
|
884
|
$
|
14,191
|
$
|
42
|
$
|
4,656
|
$
|
629
|
$
|
6,027
|
$
|
774
|
$
|
1,885
|
$
|
6,845
|
$
|
35,933
|
||||||||||||||||||||
Provision charged to expense
|
(237
|
)
|
2,281
|
(24
|
)
|
1,744
|
31
|
189
|
257
|
418
|
2,862
|
7,521
|
||||||||||||||||||||||||||||
Losses charged off
|
(10
|
)
|
(2,038
|
)
|
0
|
(1,893
|
)
|
0
|
(615
|
)
|
(178
|
)
|
(965
|
)
|
(5,386
|
)
|
(11,085
|
)
|
||||||||||||||||||||||
Recoveries
|
49
|
75
|
0
|
532
|
0
|
87
|
4
|
525
|
2,510
|
3,782
|
||||||||||||||||||||||||||||||
Balance, end of year
|
$
|
686
|
$
|
14,509
|
$
|
18
|
$
|
5,039
|
$
|
660
|
$
|
5,688
|
$
|
857
|
$
|
1,863
|
$
|
6,831
|
$
|
36,151
|
||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
25
|
$
|
966
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
991
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
661
|
$
|
13,543
|
$
|
18
|
$
|
5,039
|
$
|
660
|
$
|
5,688
|
$
|
857
|
$
|
1,863
|
$
|
6,831
|
$
|
35,160
|
||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
4,584
|
$
|
31,465
|
$
|
0
|
$
|
9,481
|
$
|
318
|
$
|
1,564
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
47,412
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
71,895
|
$
|
1,157,215
|
$
|
3,042
|
$
|
341,553
|
$
|
67,040
|
$
|
708,006
|
$
|
99,356
|
$
|
137,754
|
$
|
489,667
|
$
|
3,075,528
|
2016
|
||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Equipment Lease Financing
|
Commercial Other
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer Indirect
|
Total
|
||||||||||||||||||||||||||||||
ALLL
|
||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$
|
2,199
|
$
|
14,434
|
$
|
79
|
$
|
4,225
|
$
|
550
|
$
|
6,678
|
$
|
839
|
$
|
1,594
|
$
|
5,496
|
$
|
36,094
|
||||||||||||||||||||
Provision charged to expense
|
(1,035
|
)
|
1,220
|
(37
|
)
|
2,128
|
264
|
291
|
(20
|
)
|
912
|
4,149
|
7,872
|
|||||||||||||||||||||||||||
Losses charged off
|
(316
|
)
|
(1,641
|
)
|
0
|
(2,136
|
)
|
(192
|
)
|
(1,043
|
)
|
(54
|
)
|
(1,236
|
)
|
(5,050
|
)
|
(11,668
|
)
|
|||||||||||||||||||||
Recoveries
|
36
|
178
|
0
|
439
|
7
|
101
|
9
|
615
|
2,250
|
3,635
|
||||||||||||||||||||||||||||||
Balance, end of year
|
$
|
884
|
$
|
14,191
|
$
|
42
|
$
|
4,656
|
$
|
629
|
$
|
6,027
|
$
|
774
|
$
|
1,885
|
$
|
6,845
|
$
|
35,933
|
||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
213
|
$
|
1,035
|
$
|
0
|
$
|
65
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
1,313
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
671
|
$
|
13,156
|
$
|
42
|
$
|
4,591
|
$
|
629
|
$
|
6,027
|
$
|
774
|
$
|
1,885
|
$
|
6,845
|
$
|
34,620
|
||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$
|
5,609
|
$
|
33,756
|
$
|
0
|
$
|
11,354
|
$
|
0
|
$
|
1,483
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
52,202
|
||||||||||||||||||||
Collectively evaluated for impairment
|
$
|
61,389
|
$
|
1,051,672
|
$
|
5,512
|
$
|
338,805
|
$
|
57,966
|
$
|
701,486
|
$
|
91,511
|
$
|
133,093
|
$
|
444,735
|
$
|
2,886,169
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
Land and buildings
|
$
|
79,815
|
$
|
79,173
|
||||
Leasehold improvements
|
4,805
|
4,894
|
||||||
Furniture, fixtures, and equipment
|
38,576
|
38,096
|
||||||
Construction in progress
|
1,396
|
80
|
||||||
Total premises and equipment
|
124,592
|
122,243
|
||||||
Less accumulated depreciation and amortization
|
(79,301
|
)
|
(75,925
|
)
|
||||
Premises and equipment, net
|
$
|
45,291
|
$
|
46,318
|
(in thousands)
|
2018
|
2017
|
||||||
Beginning balance of other real estate owned
|
$
|
31,996
|
$
|
35,856
|
||||
New assets acquired
|
5,459
|
5,382
|
||||||
Fair value adjustments
|
(2,530
|
)
|
(3,034
|
)
|
||||
Sale of assets
|
(7,652
|
)
|
(6,208
|
)
|
||||
Ending balance of other real estate owned
|
$
|
27,273
|
$
|
31,996
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
1-4 family
|
$
|
5,253
|
$
|
5,908
|
||||
Agricultural/farmland
|
0
|
68
|
||||||
Construction/land development/other
|
15,017
|
16,158
|
||||||
Multifamily
|
88
|
176
|
||||||
Non-farm/non-residential
|
6,915
|
9,686
|
||||||
Total foreclosed properties
|
$
|
27,273
|
$
|
31,996
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
Noninterest bearing deposits
|
$
|
803,316
|
$
|
790,930
|
||||
NOW accounts
|
56,964
|
51,218
|
||||||
Money market deposits
|
887,288
|
692,021
|
||||||
Savings
|
406,749
|
416,551
|
||||||
Certificates of deposit and other time deposits of $100,000 or more
|
651,967
|
759,025
|
||||||
Certificates of deposit and other time deposits less than $100,000
|
499,666
|
554,118
|
||||||
Total deposits
|
$
|
3,305,950
|
$
|
3,263,863
|
Maturities by Period at December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Certificates of deposit and other time deposits of $100,000 or more
|
$
|
651,967
|
$
|
438,837
|
$
|
125,420
|
$
|
40,706
|
$
|
27,135
|
$
|
19,869
|
$
|
0
|
||||||||||||||
Certificates of deposit and other time deposits less than $100,000
|
499,666
|
401,755
|
43,217
|
23,606
|
14,581
|
16,249
|
258
|
|||||||||||||||||||||
Total maturities
|
$
|
1,151,633
|
$
|
840,592
|
$
|
168,637
|
$
|
64,312
|
$
|
41,716
|
$
|
36,118
|
$
|
258
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
Repurchase agreements
|
$
|
232,712
|
$
|
243,814
|
||||
Federal funds purchased
|
1,180
|
7,312
|
||||||
Total short-term debt
|
$
|
233,892
|
$
|
251,126
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
Junior subordinated debentures, 4.33%, due 6/1/37
|
$
|
59,341
|
$
|
59,341
|
December 31, 2018
|
||||||||||||||||||||
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
|
$
|
25,346
|
$
|
0
|
$
|
2,548
|
$
|
60,699
|
$
|
88,593
|
||||||||||
State and political subdivisions
|
58,864
|
0
|
2,995
|
10,384
|
72,243
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
22,076
|
0
|
1,877
|
47,923
|
71,876
|
|||||||||||||||
Total
|
$
|
106,286
|
$
|
0
|
$
|
7,420
|
$
|
119,006
|
$
|
232,712
|
December 31, 2017
|
||||||||||||||||||||
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
|
$
|
24,957
|
$
|
0
|
$
|
16,771
|
$
|
67,867
|
$
|
109,595
|
||||||||||
State and political subdivisions
|
62,620
|
0
|
567
|
12,161
|
75,348
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
13,360
|
0
|
4,662
|
40,849
|
58,871
|
|||||||||||||||
Total
|
$
|
100,937
|
$
|
0
|
$
|
22,000
|
$
|
120,877
|
$
|
243,814
|
(in thousands)
|
2018
|
2017
|
||||||
Monthly amortizing
|
$
|
436
|
$
|
845
|
||||
Total FHLB advances
|
$
|
436
|
$
|
845
|
Principal Payments Due by Period at December 31, 2018
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Outstanding advances, weighted average interest rate – 0.07%
|
$
|
436
|
$
|
22
|
$
|
20
|
$
|
21
|
$
|
20
|
$
|
20
|
$
|
333
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Current income tax expense
|
$
|
11,560
|
$
|
20,108
|
$
|
18,417
|
||||||
Deferred income tax expense (benefit)
|
(246
|
)
|
(259
|
)
|
701
|
|||||||
Effect of Tax Cuts & Jobs Act (benefit)
|
0
|
(2,831
|
)
|
0
|
||||||||
Total income tax expense
|
$
|
11,314
|
$
|
17,018
|
$
|
19,118
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||||||||||||||
Computed at the statutory rate
|
$
|
14,814
|
21.00
|
%
|
$
|
23,979
|
35.00
|
%
|
$
|
23,262
|
35.00
|
%
|
||||||||||||
Adjustments resulting from:
|
||||||||||||||||||||||||
Tax-exempt interest
|
(673
|
)
|
(0.95
|
)
|
(1,259
|
)
|
(1.84
|
)
|
(1,289
|
)
|
(1.94
|
)
|
||||||||||||
Housing and new markets credits
|
(2,635
|
)
|
(3.73
|
)
|
(2,579
|
)
|
(3.76
|
)
|
(2,680
|
)
|
(4.03
|
)
|
||||||||||||
Dividends received deduction
|
(9
|
)
|
(0.01
|
)
|
(129
|
)
|
(0.19
|
)
|
(136
|
)
|
(0.20
|
)
|
||||||||||||
Bank owned life insurance
|
(599
|
)
|
(0.85
|
)
|
(492
|
)
|
(0.72
|
)
|
(518
|
)
|
(0.78
|
)
|
||||||||||||
ESOP dividend deduction
|
(188
|
)
|
(0.27
|
)
|
(319
|
)
|
(0.47
|
)
|
(313
|
)
|
(0.47
|
)
|
||||||||||||
Stock option exercises and restricted stock vesting
|
(39
|
)
|
(0.06
|
)
|
(170
|
)
|
(0.25
|
)
|
0
|
-
|
||||||||||||||
Effect of Tax Cuts & Jobs Act
|
0
|
-
|
(2,831
|
)
|
(4.13
|
)
|
0
|
-
|
||||||||||||||||
Other, net
|
643
|
0.91
|
818
|
1.20
|
792
|
1.18
|
||||||||||||||||||
Total
|
$
|
11,314
|
16.04
|
%
|
$
|
17,018
|
24.84
|
%
|
$
|
19,118
|
28.76
|
%
|
(in thousands)
|
2018
|
2017
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan and lease losses
|
$
|
7,541
|
$
|
7,592
|
||||
Interest on nonperforming loans
|
531
|
560
|
||||||
Accrued expenses
|
1,093
|
442
|
||||||
Allowance for other real estate owned
|
1,435
|
1,322
|
||||||
Limited partnership investments
|
0
|
64
|
||||||
Unrealized losses on AFS securities
|
1,757
|
932
|
||||||
Other
|
164
|
204
|
||||||
Total deferred tax assets
|
12,521
|
11,116
|
||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
(12,210
|
)
|
(12,270
|
)
|
||||
FHLB stock dividends
|
(1,704
|
)
|
(2,076
|
)
|
||||
Loan fee income
|
(419
|
)
|
(263
|
)
|
||||
Mortgage servicing rights
|
(757
|
)
|
(732
|
)
|
||||
Capitalized lease obligations
|
0
|
(14
|
)
|
|||||
Limited partnership investments
|
(257
|
)
|
0
|
|||||
Other
|
(537
|
)
|
(195
|
)
|
||||
Total deferred tax liabilities
|
(15,884
|
)
|
(15,550
|
)
|
||||
Net deferred tax liability
|
$
|
(3,363
|
)
|
$
|
(4,434
|
)
|
Plan Category (shares in thousands)
|
Number of Shares to Be Issued Upon Exercise
|
Weighted Average Price
|
Shares Available for Future Issuance
|
|||||||||
Equity compensation plans approved by shareholders:
|
||||||||||||
Stock options
|
33
|
$
|
32.47
|
509
|
(a)
|
|||||||
Restricted stock
|
(c)
|
(b)
|
(a)
|
|||||||||
Performance units
|
(d)
|
(b)
|
(a)
|
|||||||||
Stock appreciation rights (“SARs”)
|
(e)
|
(b)
|
(a)
|
|||||||||
Total
|
509
|
(a) |
Under the 2015 Plan, 550,000 shares are authorized for issuance; 44,988 have been issued as of December 31, 2018. In January of
2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. Additional shares will not be issued pursuant to awards granted from prior plans.
|
(b) |
Not applicable
|
(c) |
The maximum number of shares of restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a
participant during any calendar year is 75,000 shares.
|
(d) |
No performance units payable in stock had been issued as of December 31, 2018. The maximum payment that can be made pursuant to
performance units granted to any one participant in any calendar year is $1,000,000.
|
(e) |
No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any
calendar year is 100,000 shares.
|
Plan Category
|
Shares Available for Future Issuance
|
Shares available at January 1, 2018
|
519,140
|
Stock option issuances
|
0
|
Restricted stock issuances
|
(11,320)
|
Forfeitures
|
1,515
|
Shares available for future issuance
|
509,335
|
2016
|
|
Expected option life (in years)
|
7.5
|
Expected volatility
|
34.34%
|
Expected dividend yield
|
3.70%
|
Risk-free interest rate
|
1.45%
|
December 31
|
2018
|
2017
|
2016
|
|||||||||||||||||||||
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
10,000
|
$
|
33.55
|
10,000
|
$
|
33.55
|
0
|
$
|
0
|
|||||||||||||||
Granted
|
0
|
0
|
0
|
0
|
10,000
|
33.55
|
||||||||||||||||||
Exercised
|
(10,000)
|
33.55
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Forfeited/expired
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Outstanding at end of year
|
0
|
$
|
0
|
10,000
|
$
|
33.55
|
10,000
|
$
|
33.55
|
|||||||||||||||
Exercisable at end of year
|
0
|
$
|
0
|
0
|
$
|
0
|
0
|
$
|
0
|
Nonvested Options
|
Options
|
Weighted Average Grant Date Fair Value
|
||||||
Nonvested at January 1, 2018
|
10,000
|
$
|
6.82
|
|||||
Granted
|
0
|
0
|
||||||
Vested
|
(10,000)
|
6.82
|
||||||
Forfeited
|
0
|
0
|
||||||
Nonvested at December 31, 2018
|
0
|
$
|
0
|
(in thousands)
|
2018
|
2017
|
||||||
Options exercised
|
$
|
140
|
$
|
0
|
||||
Options exercisable
|
0
|
0
|
||||||
Outstanding options
|
0
|
136
|
December 31
|
2018
|
2017
|
2016
|
|||||||||||||||||||||
Grants
|
Weighted Average Fair
Value at Grant
|
Grants
|
Weighted Average Fair
Value at Grant
|
Grants
|
Weighted Average Fair
Value at Grant
|
|||||||||||||||||||
Outstanding at beginning of year
|
33,085
|
$
|
41.84
|
17,496
|
$
|
33.55
|
0
|
$
|
0
|
|||||||||||||||
Granted
|
11,320
|
49.30
|
23,668
|
46.45
|
18,069
|
33.55
|
||||||||||||||||||
Vested
|
(8,761
|
)
|
40.46
|
(5,751
|
)
|
35.79
|
(442
|
)
|
33.55
|
|||||||||||||||
Forfeited
|
(1,389
|
)
|
46.77
|
(2,328
|
)
|
41.31
|
(131
|
)
|
33.55
|
|||||||||||||||
Outstanding at end of year
|
34,255
|
$
|
44.46
|
33,085
|
$
|
41.84
|
17,496
|
$
|
33.55
|
December 31
|
2018
|
2017
|
2016
|
|||||||||||||||||||||
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
35,376
|
$
|
31.90
|
61,041
|
$
|
29.84
|
118,574
|
$
|
32.36
|
|||||||||||||||
Granted
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Exercised
|
(2,475
|
)
|
25.52
|
(25,665
|
)
|
27.01
|
(57,423
|
)
|
35.02
|
|||||||||||||||
Forfeited/expired
|
(330
|
)
|
23.79
|
0
|
0
|
(110
|
)
|
35.41
|
||||||||||||||||
Outstanding at end of year
|
32,571
|
$
|
32.47
|
35,376
|
$
|
31.90
|
61,041
|
$
|
29.84
|
|||||||||||||||
Exercisable at end of year
|
2,571
|
$
|
25.11
|
5,376
|
$
|
25.22
|
30,629
|
$
|
26.64
|
Nonvested Options
|
Options
|
Weighted Average Grant Date Fair Value
|
||||||
Nonvested at January 1, 2018
|
30,000
|
$
|
6.98
|
|||||
Granted
|
0
|
0
|
||||||
Vested
|
0
|
0
|
||||||
Forfeited
|
0
|
0
|
||||||
Nonvested at December 31, 2018
|
30,000
|
$
|
6.98
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Options exercised
|
$
|
56
|
$
|
537
|
$
|
139
|
||||||
Options exercisable
|
37
|
118
|
703
|
|||||||||
Outstanding options
|
233
|
538
|
1,206
|
December 31
|
2018
|
2017
|
2016
|
|||||||||||||||||||||
Grants
|
Weighted Average Fair
Value at Grant
|
Grants
|
Weighted Average Fair
Value at Grant
|
Grants
|
Weighted Average Fair
Value at Grant
|
|||||||||||||||||||
Outstanding at beginning of year
|
5,426
|
$
|
33.24
|
11,989
|
$
|
32.85
|
64,735
|
$
|
28.92
|
|||||||||||||||
Granted
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Vested
|
(3,236
|
)
|
33.90
|
(6,214
|
)
|
32.48
|
(52,521
|
)
|
28.01
|
|||||||||||||||
Forfeited
|
(126
|
)
|
32.27
|
(349
|
)
|
33.31
|
(225
|
)
|
32.52
|
|||||||||||||||
Outstanding at end of year
|
2,064
|
$
|
32.27
|
5,426
|
$
|
33.24
|
11,989
|
$
|
32.85
|
December 31
|
2016
|
|||||||
Options
|
Weighted Average Exercise Price
|
|||||||
Outstanding at beginning of year
|
2,980
|
$
|
29.49
|
|||||
Granted
|
0
|
0
|
||||||
Exercised
|
(2,980
|
)
|
29.49
|
|||||
Forfeited/expired
|
0
|
0
|
||||||
Outstanding at end of year
|
0
|
$
|
0
|
|||||
Exercisable at end of year
|
0
|
$
|
0
|
(in thousands)
|
2016
|
|||
Options exercised
|
$
|
13
|
||
Options exercisable
|
0
|
|||
Outstanding options
|
0
|
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end
|
$
|
1,072
|
$
|
1,242
|
$
|
835
|
||||||
Grant date fair value of shares vested for the year
|
645
|
564
|
1,490
|
|||||||||
Cash received from option exercises under all share-based payment arrangements for the year
|
399
|
693
|
2,099
|
|||||||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year
|
49
|
138
|
3
|
(in thousands)
|
Payments
|
Receipts
|
||||||
2019
|
$
|
1,999
|
$
|
716
|
||||
2020
|
1,710
|
539
|
||||||
2021
|
1,737
|
440
|
||||||
2022
|
1,760
|
348
|
||||||
2023
|
1,696
|
233
|
||||||
Thereafter
|
13,031
|
91
|
||||||
Total
|
$
|
21,933
|
$
|
2,367
|
(in thousands)
|
Fair Value Measurements at
December 31, 2018 Using
|
|||||||||||||||
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
|
$
|
217,938
|
$
|
91,028
|
$
|
126,910
|
$
|
0
|
||||||||
State and political subdivisions
|
124,488
|
0
|
124,488
|
0
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
250,819
|
0
|
250,819
|
0
|
||||||||||||
Other debt securities
|
501
|
0
|
501
|
0
|
||||||||||||
Equity securities at fair value
|
1,173
|
0
|
0
|
1,173
|
||||||||||||
Mortgage servicing rights
|
3,607
|
0
|
0
|
3,607
|
(in thousands)
|
Fair Value Measurements at
December 31, 2017 Using
|
|||||||||||||||
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
|
$
|
210,572
|
$
|
64,598
|
$
|
145,974
|
$
|
0
|
||||||||
State and political subdivisions
|
145,015
|
0
|
145,015
|
0
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
205,309
|
0
|
205,309
|
0
|
||||||||||||
Other debt securities
|
507
|
0
|
507
|
0
|
||||||||||||
CRA investment funds
|
24,358
|
24,358
|
0
|
0
|
||||||||||||
Mortgage servicing rights
|
3,484
|
0
|
0
|
3,484
|
(in thousands)
|
2018
|
2017
|
||||||||||||||
Equity Securities at Fair Value
|
Mortgage Servicing Rights
|
Equity Securities at Fair Value
|
Mortgage Servicing Rights
|
|||||||||||||
Beginning balance
|
$
|
0
|
$
|
3,484
|
$
|
0
|
$
|
3,433
|
||||||||
Total unrealized gains
|
||||||||||||||||
Included in net income
|
1,173
|
73
|
0
|
91
|
||||||||||||
Issues
|
0
|
466
|
0
|
412
|
||||||||||||
Settlements
|
0
|
(416
|
)
|
0
|
(452
|
)
|
||||||||||
Ending balance
|
$
|
1,173
|
$
|
3,607
|
$
|
0
|
$
|
3,484
|
||||||||
Total gains 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
|
$
|
1,173
|
$
|
73
|
$
|
0
|
$
|
91
|
Noninterest Income
|
||||||||
(in thousands)
|
2018
|
2017
|
||||||
Total gains (losses)
|
$
|
830
|
$
|
(361
|
)
|
(in thousands)
|
Fair Value Measurements at
December 31, 2018 Using
|
|||||||||||||||
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)
|
$
|
747
|
$
|
0
|
$
|
0
|
$
|
747
|
||||||||
Other real estate owned
|
6,500
|
0
|
0
|
6,500
|
(in thousands)
|
Fair Value Measurements at
December 31, 2017 Using
|
|||||||||||||||
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)
|
$
|
2,709
|
$
|
0
|
$
|
0
|
$
|
2,709
|
||||||||
Other real estate owned
|
18,951
|
0
|
0
|
18,951
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||
Fair Value at December 31, 2018
|
Valuation Technique(s)
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Equity securities at fair value
|
$
|
1,173
|
Discount cash flows, computer pricing model
|
Discount rate
|
8.0% - 12.0%
(10.0
|
%)
|
||||
Conversion date
|
Dec 2022 – Dec 2026
(Dec 2024)
|
|||||||||
Mortgage servicing rights
|
$
|
3,607
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
7.0% - 28.1%
(9.5
|
%)
|
||||
Probability of default
|
0.0% - 100.0%
(2.6
|
%)
|
||||||||
Discount rate
|
10.0% - 11.5%
(10.1
|
%)
|
||||||||
Impaired loans (collateral-dependent)
|
$
|
747
|
Market comparable properties
|
Marketability discount
|
0.0% - 95.1%
(41.5
|
%)
|
||||
Other real estate owned
|
$
|
6,500
|
Market comparable properties
|
Comparability adjustments
|
6.0% - 47.6%
(14.9
|
%)
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||
Fair Value at December 31, 2017
|
Valuation Technique(s)
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Mortgage servicing rights
|
$
|
3,484
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
7.0% - 45.0%
(10.0
|
%)
|
||||
Probability of default
|
0.0% - 100.0%
(3.0
|
%)
|
||||||||
Discount rate
|
10.0% - 11.5%
(10.1
|
%)
|
||||||||
Impaired loans (collateral-dependent)
|
$
|
2,709
|
Market comparable properties
|
Marketability discount
|
1.9% - 89.8%
(38.5
|
%)
|
||||
Other real estate owned
|
$
|
18,951
|
Market comparable properties
|
Comparability adjustments
|
6.0% - 58.6%
(15.0
|
%)
|
(in thousands)
|
Fair Value Measurements
at December 31, 2018 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
|
$
|
141,450
|
$
|
141,450
|
$
|
0
|
$
|
0
|
||||||||
Certificates of deposit in other banks
|
3,920
|
0
|
3,914
|
0
|
||||||||||||
Securities available-for-sale
|
593,746
|
91,028
|
502,718
|
0
|
||||||||||||
Securities held-to-maturity
|
649
|
0
|
649
|
0
|
||||||||||||
Equity securities at fair value
|
1,173
|
0
|
0
|
1,173
|
||||||||||||
Loans held for sale
|
2,461
|
2,518
|
0
|
0
|
||||||||||||
Loans, net
|
3,172,730
|
0
|
0
|
3,175,908
|
||||||||||||
Federal Home Loan Bank stock
|
14,713
|
0
|
14,713
|
0
|
||||||||||||
Federal Reserve Bank stock
|
4,887
|
0
|
4,887
|
0
|
||||||||||||
Accrued interest receivable
|
14,432
|
0
|
14,432
|
0
|
||||||||||||
Mortgage servicing rights
|
3,607
|
0
|
0
|
3,607
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
3,305,950
|
$
|
803,316
|
$
|
2,513,084
|
$
|
0
|
||||||||
Repurchase agreements
|
232,712
|
0
|
0
|
232,796
|
||||||||||||
Federal funds purchased
|
1,180
|
0
|
1,180
|
0
|
||||||||||||
Advances from Federal Home Loan Bank
|
436
|
0
|
468
|
0
|
||||||||||||
Long-term debt
|
59,341
|
0
|
0
|
44,166
|
||||||||||||
Accrued interest payable
|
2,902
|
0
|
2,902
|
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
|
(in thousands)
|
Fair Value Measurements
at December 31, 2017 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
|
$
|
175,274
|
$
|
175,274
|
$
|
0
|
$
|
0
|
||||||||
Certificates of deposit in other banks
|
9,800
|
0
|
9,772
|
0
|
||||||||||||
Securities available-for-sale
|
585,761
|
88,956
|
496,805
|
0
|
||||||||||||
Securities held-to-maturity
|
659
|
0
|
660
|
0
|
||||||||||||
Loans held for sale
|
1,033
|
1,060
|
0
|
0
|
||||||||||||
Loans, net
|
3,086,789
|
0
|
0
|
3,092,437
|
||||||||||||
Federal Home Loan Bank stock
|
17,927
|
0
|
17,927
|
0
|
||||||||||||
Federal Reserve Bank stock
|
4,887
|
0
|
4,887
|
0
|
||||||||||||
Accrued interest receivable
|
13,338
|
0
|
13,338
|
0
|
||||||||||||
Mortgage servicing rights
|
3,484
|
0
|
0
|
3,484
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
3,263,863
|
$
|
790,930
|
$
|
2,319,278
|
$
|
0
|
||||||||
Repurchase agreements
|
243,814
|
0
|
0
|
243,932
|
||||||||||||
Federal funds purchased
|
7,312
|
0
|
7,312
|
0
|
||||||||||||
Advances from Federal Home Loan Bank
|
845
|
0
|
841
|
0
|
||||||||||||
Long-term debt
|
59,341
|
0
|
0
|
44,166
|
||||||||||||
Accrued interest payable
|
2,228
|
0
|
2,228
|
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
|
(in thousands)
|
2018
|
2017
|
||||||
Standby letters of credit
|
$
|
29,410
|
$
|
29,308
|
||||
Commitments to extend credit
|
510,513
|
516,731
|
||||||
Total off-balance sheet financial instruments
|
$
|
539,923
|
$
|
546,039
|
Actual
|
For Capital Adequacy Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2018:
|
||||||||||||||||
Tier 1 capital (to average assets)
|
$
|
562,771
|
13.51
|
%
|
$
|
166,623
|
4.00
|
%
|
||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
505,271
|
16.27
|
139,749
|
4.50
|
||||||||||||
Tier 1 capital (to risk weighted assets)
|
562,771
|
18.12
|
186,348
|
6.00
|
||||||||||||
Total capital (to risk weighted assets)
|
598,934
|
19.29
|
248,391
|
8.00
|
||||||||||||
As of December 31, 2017:
|
||||||||||||||||
Tier 1 capital (to average assets)
|
$
|
525,707
|
12.89
|
%
|
$
|
163,136
|
4.00
|
%
|
||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
468,207
|
15.33
|
137,438
|
4.50
|
||||||||||||
Tier 1 capital (to risk weighted assets)
|
525,707
|
17.22
|
183,173
|
6.00
|
||||||||||||
Total capital (to risk weighted assets)
|
562,114
|
18.41
|
244,265
|
8.00
|
Actual
|
For Capital Adequacy Purposes
|
To Be Well-Capitalized Under Prompt Corrective Action Provision
|
||||||||||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of December 31, 2018:
|
||||||||||||||||||||||||
Tier 1 capital (to average assets)
|
$
|
536,992
|
12.94
|
%
|
$
|
165,994
|
4.00
|
%
|
$
|
207,493
|
5.00
|
%
|
||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
536,992
|
17.33
|
139,438
|
4.50
|
201,411
|
6.50
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
536,992
|
17.33
|
185,918
|
6.00
|
247,890
|
8.00
|
||||||||||||||||||
Total capital (to risk weighted assets)
|
573,155
|
18.50
|
247,851
|
8.00
|
309,814
|
10.00
|
||||||||||||||||||
As of December 31, 2017:
|
||||||||||||||||||||||||
Tier 1 capital (to average assets)
|
$
|
501,537
|
12.35
|
%
|
$
|
162,441
|
4.00
|
%
|
$
|
203,051
|
5.00
|
%
|
||||||||||||
Common equity Tier 1 capital (to risk weighted assets)
|
501,537
|
16.46
|
137,115
|
4.50
|
198,055
|
6.50
|
||||||||||||||||||
Tier 1 capital (to risk weighted assets)
|
501,537
|
16.46
|
182,820
|
6.00
|
243,760
|
8.00
|
||||||||||||||||||
Total capital (to risk weighted assets)
|
537,944
|
17.65
|
243,827
|
8.00
|
304,784
|
10.00
|
(in thousands)
December 31
|
2018
|
2017
|
||||||
Assets:
|
||||||||
Cash on deposit
|
$
|
1,939
|
$
|
1,500
|
||||
Investment in and advances to subsidiaries
|
620,701
|
587,575
|
||||||
Goodwill
|
4,973
|
4,973
|
||||||
Premises and equipment, net
|
219
|
250
|
||||||
Other assets
|
238
|
200
|
||||||
Total assets
|
$
|
628,070
|
$
|
594,498
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Long-term debt
|
$
|
61,341
|
$
|
61,341
|
||||
Other liabilities
|
2,579
|
2,458
|
||||||
Total liabilities
|
63,920
|
63,799
|
||||||
Shareholders’ equity
|
564,150
|
530,699
|
||||||
Total liabilities and shareholders’ equity
|
$
|
628,070
|
$
|
594,498
|
(in thousands)
Year Ended December 31
|
2018
|
2017
|
2016
|
|||||||||
Income:
|
||||||||||||
Dividends from subsidiary banks
|
$
|
26,750
|
$
|
24,661
|
$
|
20,708
|
||||||
Other income
|
489
|
904
|
459
|
|||||||||
Total income
|
27,239
|
25,565
|
21,167
|
|||||||||
Expenses:
|
||||||||||||
Interest expense
|
2,318
|
1,723
|
1,417
|
|||||||||
Depreciation expense
|
135
|
116
|
107
|
|||||||||
Other expenses
|
3,156
|
2,858
|
2,256
|
|||||||||
Total expenses
|
5,609
|
4,697
|
3,780
|
|||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
21,630
|
20,868
|
17,387
|
|||||||||
Income tax benefit
|
(1,219
|
)
|
(1,445
|
)
|
(1,373
|
)
|
||||||
Income before equity in undistributed income of subsidiaries
|
22,849
|
22,313
|
18,760
|
|||||||||
Equity in undistributed income of subsidiaries
|
36,379
|
29,180
|
28,586
|
|||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
||||||
Other comprehensive loss:
|
||||||||||||
Unrealized holding losses on securities available-for-sale:
|
||||||||||||
Unrealized holding losses arising during the period
|
(5,393
|
)
|
(820
|
)
|
(4,578
|
)
|
||||||
Less: Reclassification adjustments for realized gains included in net income
|
(821
|
)
|
73
|
522
|
||||||||
Tax benefit
|
(960
|
)
|
(312
|
)
|
(1,785
|
)
|
||||||
Other comprehensive loss, net of tax
|
(3,612
|
)
|
(581
|
)
|
(3,315
|
)
|
||||||
Comprehensive income
|
$
|
55,616
|
$
|
50,912
|
$
|
44,031
|
(in thousands)
Year Ended December 31
|
2018
|
2017
|
2016
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
135
|
116
|
107
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
(36,379
|
)
|
(29,180
|
)
|
(28,586
|
)
|
||||||
Stock-based compensation
|
710
|
636
|
458
|
|||||||||
Excess tax benefits of stock-based compensation
|
0
|
0
|
100
|
|||||||||
Gain on debt repurchase
|
0
|
(560
|
)
|
0
|
||||||||
Changes in:
|
||||||||||||
Other assets
|
(62
|
)
|
145
|
519
|
||||||||
Other liabilities
|
53
|
412
|
(90
|
)
|
||||||||
Net cash provided by operating activities
|
23,685
|
23,062
|
19,854
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Payment for investment in subsidiary
|
0
|
(1,440
|
)
|
0
|
||||||||
Purchase of premises and equipment
|
(81
|
)
|
(179
|
)
|
(104
|
)
|
||||||
Net cash used in investing activities
|
(81
|
)
|
(1,619
|
)
|
(104
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Issuance of common stock
|
1,230
|
1,513
|
2,985
|
|||||||||
Repurchase of common stock
|
0
|
0
|
(382
|
)
|
||||||||
Excess tax benefits of stock-based compensation
|
0
|
0
|
(100
|
)
|
||||||||
Dividends paid
|
(24,395
|
)
|
(22,981
|
)
|
(22,190
|
)
|
||||||
Net cash used in financing activities
|
(23,165
|
)
|
(21,468
|
)
|
(19,687
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
439
|
(25
|
)
|
63
|
||||||||
Cash and cash equivalents at beginning of year
|
1,500
|
1,525
|
1,462
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
1,939
|
$
|
1,500
|
$
|
1,525
|
Year Ended December 31
(in thousands except per share data)
|
2018
|
2017
|
2016
|
|||||||||
Numerator:
|
||||||||||||
Net income
|
$
|
59,228
|
$
|
51,493
|
$
|
47,346
|
||||||
Denominator:
|
||||||||||||
Basic earnings per share:
|
||||||||||||
Weighted average shares
|
17,687
|
17,631
|
17,548
|
|||||||||
Diluted earnings per share:
|
||||||||||||
Dilutive effect of equity grants
|
16
|
22
|
18
|
|||||||||
Adjusted weighted average shares
|
17,703
|
17,653
|
17,566
|
|||||||||
Earnings per share:
|
||||||||||||
Basic earnings per share
|
$
|
3.35
|
$
|
2.92
|
$
|
2.70
|
||||||
Diluted earnings per share
|
3.35
|
2.92
|
2.70
|
Amounts Reclassified from AOCI
|
||||||||||||
Year Ended December 31
(in thousands)
|
2018
|
2017
|
2016
|
|||||||||
Affected line item in the statements of income
|
||||||||||||
Securities gains (losses)
|
$
|
(821
|
)
|
$
|
73
|
$
|
522
|
|||||
Tax expense (benefit)
|
(172
|
)
|
26
|
183
|
||||||||
Total reclassifications out of AOCI
|
$
|
(649
|
)
|
$
|
47
|
$
|
339
|
·
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and
dispositions of the assets of the company;
|
·
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements
in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
·
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of the company’s assets that could have a material effect on the financial statements.
|
Name and Age (1)
|
Positions and Offices Currently Held
|
Date First Became
Director or
Executive Officer
|
Principal Occupation
|
|
Jean R. Hale; 72
|
Chairman, President and CEO
|
1992
|
Chairman, President and CEO of Community Trust Bancorp, Inc.
|
|
Mark A. Gooch; 60
|
Executive Vice President and Secretary
|
1997
|
President and CEO of Community Trust Bank, Inc.
|
|
Larry W. Jones; 72
|
Executive Vice President
|
2002
|
Executive Vice President/ Central Kentucky Region President of Community Trust Bank, Inc.
|
|
James B. Draughn; 59
|
Executive Vice President
|
2001
|
Executive Vice President/Operations of Community Trust Bank, Inc.
|
|
Kevin J. Stumbo; 58
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
2002
|
Executive Vice President/ Chief Financial Officer of Community Trust Bank, Inc.
|
|
Ricky D. Sparkman; 56
|
Executive Vice President
|
2002
|
Executive Vice President/ South Central Region President of Community Trust Bank, Inc.
|
|
Richard W. Newsom; 64
|
Executive Vice President
|
2002
|
Executive Vice President/ Eastern Region President of Community Trust Bank, Inc.
|
|
James J. Gartner; 77
|
Executive Vice President
|
2002
|
Executive Vice President/ Chief Credit Officer of Community Trust Bank, Inc.
|
|
Steven E. Jameson; 62
|
Executive Vice President
|
2004
|
(2)
|
Executive Vice President/ Chief Internal Audit & Risk Officer
|
D. Andrew Jones; 56
|
Executive Vice President
|
2010
|
Executive Vice President/ Northeastern Region President of Community Trust Bank, Inc.
|
|
Andy D. Waters; 53
|
Executive Vice President
|
2011
|
President and CEO of Community Trust and Investment Company
|
|
C. Wayne Hancock; 44
|
Executive Vice President
|
2014
|
(3)
|
Executive Vice President/Senior Staff Attorney
|
(1) |
The ages listed for CTBI’s executive officers are as of February 28, 2019.
|
(2) |
Mr. Jameson is a non-voting member of the Executive Committee.
|
(3) |
Mr. Hancock was employed as Senior Staff Attorney of Community Trust Bank, Inc. in September 2008. He was promoted to Senior Vice President in April 2009 and named
Executive Vice President in April 2014.
|
A |
B |
C |
||||||||||
Plan Category
(shares in thousands)
|
Number of Common Shares to be Issued Upon Exercise
|
Weighted Average Price
|
Number of Securities Available for Future Issuance Under Equity Compensation Plans (excluding
securities reflected in Column A)
|
|||||||||
Equity compensation plans approved by shareholders:
|
||||||||||||
Stock options
|
33
|
$
|
32.47
|
509
|
||||||||
Equity compensation plans not approved by shareholders
|
0
|
--
|
0
|
|||||||||
Total
|
509
|
Exhibit No.
|
Description of Exhibits
|
3.1
|
Articles of Incorporation and all amendments thereto {incorporated by reference to registration statement no. 33-35138}
|
By-laws of CTBI as amended July 25, 1995 {incorporated by reference to registration statement no. 33-61891}
|
|
By-laws of CTBI as amended January 29, 2008 {incorporated by reference to current report on Form 8-K filed January 30,
2008}
|
|
Community Trust Bancorp, Inc. Employee Stock Ownership Plan (effective January 1, 2007) {incorporated herein by
reference to Form 10-K for the fiscal year ended December 31, 2006 under SEC file no. 000-111-29}
|
|
Community Trust Bancorp, Inc. Savings and Employee Stock Ownership Plan (Amendment Number One effective January 1, 2002,
Amendment Number Two effective January 1, 2004, Amendment Number Three effective March 28, 2005, and Amendment Number Four effective January 1, 2006) {incorporated herein by reference to Form 10-K for the fiscal year ended December 31, 2006
under SEC file no. 000-111-29}
|
|
Community Trust Bancorp, Inc. 1998 Stock Option Plan {incorporated by reference to registration statement no. 333-74217}
|
|
Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated by reference to Proxy Statement dated
March 24, 2006}
|
|
Form of Severance Agreement between Community Trust Bancorp, Inc. and executive officers (currently in effect with
respect to twelve executive officers) {incorporated herein by reference to Form 10-K for the fiscal year ended December 31, 2001 under SEC file no. 000-111-29}
|
|
Senior Management Incentive Compensation Plan (2019) {incorporated herein by reference to current report on Form 8-K
dated January 29, 2019}
|
|
Restricted Stock Agreement {incorporated herein by reference to Form 10-K for the fiscal year ended December 31, 2011
under SEC file no. 000-111-29}
|
|
Employee Incentive Compensation Plan (2019) {incorporated herein by reference to current report on Form 8-K dated
January 29, 2019}
|
|
Amendment to the Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated herein by reference to
current report on Form 8-K dated January 24, 2012}
|
|
Community Trust Bancorp, Inc. 2015 Stock Ownership Incentive Plan {incorporated herein by reference to registration
statement no. 333-208053}
|
|
Community Trust Bancorp, Inc. 2016 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference to current report on Form 8-K dated January 26, 2016}
|
|
Community Trust Bancorp, Inc. 2017 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference to current report on Form 8-K dated January 24, 2017}
|
|
Community Trust Bancorp, Inc. 2018 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference to current report on Form 8-K dated January 23, 2018}
|
|
Community Trust Bancorp, Inc. 2019 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference to current report on Form 8-K dated January 29, 2019}
|
|
21 | Subsidiaries of the Registrant |
Consent of BKD, LLP, Independent Registered Public Accounting Firm
|
|
Certification of Principal Executive Officer (Jean R. Hale, Chairman, President, and Chief Executive Officer)
|
|
Certification of Principal Financial Officer (Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and
Treasurer)
|
|
Certification of Jean R. Hale, Chairman, President and CEO, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Certification of Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Community Trust Bancorp, Inc. Dividend Reinvestment Plan, as amended December 20, 2013 {incorporated by reference to
registration statement no. 333-193011}
|
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
Exhibit No.
|
Description of Exhibits
|
3.1
|
Articles of Incorporation for CTBI {incorporated herein by reference}
|
3.2
|
By-laws of CTBI as amended July 25, 1995 {incorporated herein by reference}
|
3.3
|
By-laws of CTBI as amended January 29, 2008 {incorporated herein by reference}
|
10.1
|
Community Trust Bancorp, Inc. Employee Stock Ownership Plan (effective January 1, 2007) {incorporated herein by
reference}
|
10.2
|
Community Trust Bancorp, Inc. Savings and Employee Stock Ownership Plan (Amendment Number One effective January 1, 2002,
Amendment Number Two effective January 1, 2004, Amendment Number Three effective March 28, 2005, and Amendment Number Four effective January 1, 2006) {incorporated herein by reference}
|
10.4
|
Community Trust Bancorp, Inc. 1998 Stock Option Plan {incorporated herein by reference}
|
10.5
|
Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated herein by reference}
|
10.6
|
Form of Severance Agreement between Community Trust Bancorp, Inc. and executive officers (currently in effect with
respect to twelve executive officers) {incorporated herein by reference}
|
10.7
|
Senior Management Incentive Compensation Plan (2019) {incorporated herein by reference}
|
10.8
|
Restricted Stock Agreement{incorporated herein by reference}
|
10.9
|
Employee Incentive Compensation Plan (2019) {incorporated herein by reference}
|
10.10
|
Amendment to the Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated herein by reference}
|
10.11
|
Community Trust Bancorp, Inc. 2015 Stock Ownership Incentive Plan {incorporated herein by reference}
|
10.16
|
Community Trust Bancorp, Inc. 2016 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference}
|
10.17
|
Community Trust Bancorp, Inc. 2017 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference}
|
10.18
|
Community Trust Bancorp, Inc. 2018 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference}
|
10.19
|
Community Trust Bancorp, Inc. 2019 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by
reference}
|
21 | Subsidiaries of the Registrant |
23.1
|
Consent of BKD, LLP, Independent Registered Public Accounting Firm
|
31.1
|
Certification of Principal Executive Officer (Jean R. Hale, Chairman, President and CEO)
|
31.2
|
Certification of Principal Financial Officer (Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and
Treasurer)
|
32.1
|
Certification of Jean R. Hale, Chairman, President and CEO, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification of Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
99.1
|
Community Trust Bancorp, Inc. Dividend Reinvestment Plan, as amended December 20, 2013
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
COMMUNITY TRUST BANCORP, INC. |
|||
Date: February 28, 2019
|
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 |
February 28, 2019
|
/s/ Jean R. Hale
|
Chairman, President, and Chief Executive Officer
|
Jean R. Hale
|
||
February 28, 2019
|
/s/ Kevin J. Stumbo
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
Kevin J. Stumbo
|
||
February 28, 2019
|
/s/ Charles J. Baird
|
Director
|
Charles J. Baird
|
||
February 28, 2019
|
/s/ Nick Carter
|
Director
|
Nick Carter
|
||
February 28, 2019
|
/s/ James E. McGhee, II
|
Director
|
James E. McGhee II
|
||
February 28, 2019
|
/s/ M. Lynn Parrish
|
Director
|
M. Lynn Parrish
|
||
February 28, 2019
|
/s/ James R. Ramsey
|
Director
|
James R. Ramsey
|
||
February 28, 2019
|
/s/ Anthony W. St. Charles
|
Director
|
Anthony W. St. Charles
|
Jurisdiction of Organization
|
Shares Owned by CTBI
|
Percent Voting Stock Held by CTBI
|
|
Community Trust Bank, Inc., Pikeville, Kentucky
|
Kentucky
|
285,000 Common
|
100%
|
Community Trust and Investment Company, Lexington, Kentucky
|
Kentucky
|
500 Common
|
100%
|
CTBI Preferred Capital Trust III
|
Delaware
|
1,841 Common Trust Securities
|
100%
|
Community Trust Asset Management
|
Kentucky
|
2,000 Common
|
100%
|
(1) |
I have reviewed this annual report on Form 10-K 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.
|
(1) |
I have reviewed this annual report on Form 10-K 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.
|
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Jan. 31, 2019 |
Jun. 30, 2018 |
|
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 | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Ex Transition Period | false | ||
Entity Public Float | $ 842.4 | ||
Entity Common Stock, Shares Outstanding | 17,767,653 | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets: | ||
Securities available-for-sale at amortized cost | $ 602,114 | $ 590,199 |
Securities held-to-maturity at fair value | $ 649 | $ 660 |
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) | 17,732,853 | 17,692,912 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||
Other comprehensive income (loss), tax | $ (960) | $ (312) | $ (1,785) |
Cash dividends declared (in dollars per share) | $ 1.38 | $ 1.30 | $ 1.26 |
Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 | |||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||
Accounting Policies | 1. Accounting Policies Basis of Presentation – The consolidated financial statements include Community Trust Bancorp, Inc. (“CTBI”) and its subsidiaries, including its principal subsidiary, Community Trust Bank, Inc. (“CTB”). Intercompany transactions and accounts have been eliminated in consolidation. Nature of Operations – Substantially all assets, liabilities, revenues, and expenses are related to banking operations, including lending, investing of funds, obtaining of deposits, trust and wealth management operations, full service brokerage operations, and other financing activities. All of our business offices and the majority of our business are located in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Use of Estimates – In preparing the consolidated financial statements, management must make certain estimates and assumptions. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues, and expenses, as well as affecting the disclosures provided. Future results could differ from the current estimates. Such estimates include, but are not limited to, the allowance for loan and lease losses, valuation of other real estate owned, fair value of securities and mortgage servicing rights, goodwill, and valuation of deferred tax assets. The accompanying financial statements have been prepared using values and information currently available to CTBI. Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the allowance for loan and lease losses, and capital. Cash and Cash Equivalents – CTBI considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits in other financial institutions, and federal funds sold. Generally, federal funds are sold for one-day periods. Certificates of Deposit in Other Banks – Certificates of deposit in other banks generally mature within 18 months and are carried at cost. Investments – Management determines the classification of securities at purchase. We classify debt 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 Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities, investments in debt securities that are not classified as held-to-maturity 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 debt securities are computed by specific identification for those securities. 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 CTBI’s results of operations and financial condition. Subsequent to the January 1, 2018 effective date of ASU 2016-01, ASC 320 applies only to debt securities and ASC 321, Investments – Equity Securities, applies to equity securities. ASC 321 requires equity investments (except those accounted for under the equity method and those that result in the consolidation of the investee) to be measured at fair value, with changes in fair values recognized in net income. Equity securities with a readily determinable fair value are required to be measured at fair value, with changes in fair value recognized through net income. Equity securities without a readily determinable fair value are carried at cost, less any impairment, if any, plus or minus changes resulting from observable price changes for identical or similar investments. An election can be made, as permitted by ASC 321-10-35-2, to subsequently measure an equity security without a readily determinable fair value, at fair value. Equity securities held by CTBI include securities without readily determinable fair values. CTBI has elected to account for these securities at fair value. The fair value of these securities was determined by a third party service provider using Level 3 inputs as defined in ASC 820, Fair Value Measurement, and changes in fair value are recognized in income. 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. 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 nonaccrual 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, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. 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. Management continually reevaluates the other subjective factors included in its ALLL analysis. Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses, if any, are recognized by charges to income. Gains and losses on loan sales are recorded in noninterest income. Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are evaluated for impairment on a quarterly basis. Depreciation and amortization are computed primarily using the straight-line method. Estimated useful lives range up to 40 years for buildings, 2 to 10 years for furniture, fixtures, and equipment, and up to the lease term for leasehold improvements. Capitalized leased assets are amortized on a straight-line basis over the lives of the respective leases. Federal Home Loan Bank and Federal Reserve Stock – CTB is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. CTB is also a member of its regional Federal Reserve Bank. Federal Reserve Bank stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current fair market value less expected sales costs. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated appraisal reflects a fair market value below the current book value, a charge is booked to current earnings to reduce the property to its new fair 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 through the income statement. Goodwill and Core Deposit Intangible – We evaluate total goodwill and core deposit intangible for impairment, based upon ASC 350, Intangibles-Goodwill and Other, using fair value techniques including multiples of price/equity. Goodwill and core deposit intangible are evaluated for impairment on an annual basis or as other events may warrant. The balance of goodwill, at $65.5 million, has not changed since January 1, 2015. Our core deposit intangible has been fully amortized since December 31, 2017. Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from CTBI—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) CTBI does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. 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 years ended December 31, 2018, 2017, and 2016, CTBI has not recognized a significant amount of interest expense or penalties in connection with income taxes. Earnings Per Share (“EPS”) – Basic EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding, excluding restricted shares. Diluted EPS adjusts the number of weighted average shares of common stock outstanding by the dilutive effect of stock options, including restricted shares, as prescribed in ASC 718, Share-Based Payment. Segments – Management analyzes the operation of CTBI assuming one operating segment, community banking services. CTBI, through its operating subsidiaries, offers a wide range of consumer and commercial community banking services. These services include: (i) residential and commercial real estate loans; (ii) checking accounts; (iii) regular and term savings accounts and savings certificates; (iv) full service securities brokerage services; (v) consumer loans; (vi) debit cards; (vii) annuity and life insurance products; (viii) Individual Retirement Accounts and Keogh plans; (ix) commercial loans; (x) trust and wealth management services; (xi) commercial demand deposit accounts; and (xii) repurchase agreements. Bank Owned Life Insurance – CTBI’s bank owned life insurance policies are carried at their cash surrender value. We recognize tax-free income from the periodic increases in cash surrender value of these policies and from death benefits. Mortgage Servicing Rights – Mortgage servicing rights (“MSRs”) are carried at fair market value following the accounting guidance in ASC 860-50, Servicing Assets and Liabilities. MSRs are valued using Level 3 inputs as defined in ASC 820, Fair Value Measurements. The fair value is determined quarterly based on an independent third-party valuation using a discounted cash flow analysis and calculated using a computer pricing model. The system used in this evaluation, Compass Point, attempts to quantify loan level idiosyncratic risk by calculating a risk derived value. As a result, each loan’s unique characteristics determine the valuation assumptions ascribed to that loan. Additionally, the computer valuation is based on key economic assumptions including the 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, as applicable. Along with the gains received from the sale of loans, fees are received for servicing loans. These fees include late fees, which are recorded in interest income, and ancillary fees and monthly servicing fees, which are recorded in noninterest income. Costs of servicing loans are charged to expense as incurred. Changes in fair market value of the MSRs are reported as an increase or decrease to mortgage banking income. Share-Based Compensation – CTBI has a share-based employee compensation plan, which is described more fully in note 15 to the consolidated financial statements. CTBI accounts for this plan under the recognition and measurement principles of ASC 718, Share-Based Payment. Comprehensive Income – Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other than temporary impairment has been recognized in income. Transfers between Fair Value Hierarchy Levels – Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs), and Level 3 (significant unobservable inputs) are recognized on the period ending date. Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year consolidated financial statements to conform to current year classifications. These reclassifications had no effect on net income. New Accounting Standards – Ø Financial Instruments – Overall – In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10). The amendments in this Update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting, those that result in consolidation of the investee, and certain other investments). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this Update eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. Public business entities will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. At December 31, 2017, we had $25 million in equity securities with a net unrealized loss of $0.6 million. Accordingly, an adjustment has been made as a cumulative effect adjustment to our consolidated balance sheet effective January 1, 2018. Note 17 below has been modified to reflect the changes in disclosure and the use of a notional exit price. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10). This ASU included a technical correction to its guidance regarding equity securities, ASC 321-10-35-2, allowing an entity to subsequently elect to record an equity security without a readily determinable fair value. In 2018, CTBI made the election permitted by ASC 321-10-35-2, to record 9,918 shares of Visa Class B restricted stock, which was transferred to CTBI by Visa in 2008, at fair value. If an entity subsequently elects to measure an equity security at fair value, the election is irrevocable and the entity must measure all identical or similar investments of the same issuer, including future purchases of identical or similar investments of the same issuer, at fair value. Any resulting gains or losses on the securities for which that election is made must be recorded in earnings at the time of the election. On December 31, 2018, CTBI recorded a $1.2 million gain on the recognition of the fair value of 9,918 Visa Class B shares held in its portfolio. Ø Leases – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases. An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840 (for example, they do not create interim disclosure requirements that entities previously were not required to provide). Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met:
An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the practical expedient in our implementation at January 1, 2019. Based on leases outstanding at December 31, 2018, the impact of adoption on January 1, 2019 was recording a lease liability of approximately $16.4 million, a right-of-use asset of approximately $15.9 million, and a cumulative-effect adjustment to retained earnings of approximately $0.5 million. Ø Revenue from Contracts with Customers – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 to fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08 which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax, and transition. ASU 2016-12 is effective during the same period as ASU 2014-09. At December 31, 2017, we had $0.5 million in deferred gains on sale of other real estate owned. Accordingly, an adjustment has been made as a cumulative effect adjustment to our consolidated balance sheet effective January 1, 2018. Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other generally accepted accounting principles (“GAAP”) discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows:
Ø Accounting for Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The provisions of ASU 2016-13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. This ASU requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. CTBI has an implementation team working through the provisions of ASU 2016-13 including assessing the impact on its accounting and disclosures. The team has established the historical data that will be available and has identified the potential loan segments to be analyzed. The team plans to determine the portfolio methodologies to be utilized and to begin running parallel with its current model in the third quarter of 2019. Ø Statement of Cash Flows – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update apply to all entities that are required to present a statement of cash flows under Topic 230. This Update is the final version of Proposed Accounting Standards Update EITF-15F—Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230), which has been deleted. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this ASU effective January 1, 2018 with no material impact on CTBI’s consolidated financial statements. Ø Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements from any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods with those fiscal years. ASU 2017-04 should be implemented on a prospective basis. Management does not expect ASU 2017-04 to have an impact on CTBI’s consolidated financial statements. Ø Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities – In April 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. However, the amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for public business entities for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal periods. Entities are required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this ASU effective January 1, 2018 with no material impact on CTBI’s consolidated financial statements. Ø Income Statement—Reporting Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). On December 22, 2017, the U.S. federal government enacted a tax bill, the Tax Cuts and Jobs Act of 2017. The guidance in GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance was applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (rather than in net income). Because the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate of 21 percent was required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this Update) did not reflect the appropriate tax rate. The amendments in this ASU require a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. Consequently, the amendments in this Update eliminate the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 and improve the usefulness of information reported to financial statement users. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued by applying retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 is recognized. We elected to early adopt this ASU, and therefore, have adjusted our consolidated financial statements effective December 31, 2017 with minimal effect to our financial position. Ø Income Taxes—Amendments to SEC Paragraphs – The FASB issued ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 in March 2018. ASU 2018-05 amended the Accounting Standards Codification to incorporate various SEC paragraphs pursuant to the issuance of SAB 118. SAB 118 addressed the application of generally accepted accounting principles in situations when a registrant did not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. We did not have any situations where we did not have the necessary information available, prepared, and analyzed in reasonable detail to complete the accounting for the tax effects of the Tax Cuts and Jobs Act. Ø Changes to the Disclosure Requirements for Fair Value Measurement – In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820 as follows: Removals The following disclosure requirements were removed from Topic 820:
Modifications The following disclosure requirements were modified in Topic 820:
Additions The following disclosure requirements were added to Topic 820:
In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. CTBI plans to adopt ASU 2018-13 effective January 1, 2020 with minimal changes to our current reporting. Ø Accounting for Costs of Implementing a Cloud Computing Service Agreement– In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces complexity for the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The ASU aligns the following requirements for capitalizing implementation costs:
This ASU will be effective beginning January 1, 2020. We do not anticipate a significant impact to our consolidated financial statements. |
Cash and Due from Banks and Interest Bearing Deposits |
12 Months Ended |
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Dec. 31, 2018 | |
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | |
Cash and Due from Banks and Interest Bearing Deposits | 2. Cash and Due from Banks and Interest Bearing Deposits Included in cash and due from banks and interest bearing deposits are amounts required to be held at the Federal Reserve or maintained in vault cash in accordance with regulatory reserve requirements. The balance requirements were $74.7 million and $73.5 million at December 31, 2018 and 2017, respectively. At December 31, 2018, CTBI had cash accounts which exceeded federally insured limits, and therefore are not subject to FDIC insurance, with $73.5 million in deposits with the Federal Reserve, $29.1 million in deposits with US Bank, $0.7 million in deposits with Fifth Third Bank, and $2.2 million in deposits with the Federal Home Loan Bank. |
Securities |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | 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 debt securities at December 31, 2018 are summarized as follows: Available-for-Sale
Held-to-Maturity
The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Available-for-Sale
Held-to-Maturity
The amortized cost and fair value of debt securities at December 31, 2018 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.
In 2018, we had a net securities loss of $0.1 million. There was a net loss of $1.3 million realized on sales and calls of AFS securities, consisting of a pre-tax gain of $0.3 million and a pre-tax loss of $1.6 million. This net loss included a loss of $0.4 million from the sale of CTBI’s CRA investment funds in the first quarter of 2018. Also included in securities gains and losses for 2018 was an unrealized gain of $1.2 million from equity securities, discussed below, in the fourth quarter of 2018. There was a net gain of $0.1 million realized in 2017 and a net gain of $0.5 million realized in 2016. Equity Securities at Fair Value In 2008, Visa distributed 9,918 shares of Visa Class B restricted stock to CTBI which, upon resolution of certain pending legal matters, will become unrestricted and convertible into Visa Class A shares. Following this distribution, significant concern existed about the ultimate realizable value of these shares, and because CTBI did not have a basis in the stock, the shares were previously not recorded as an asset on CTBI’s balance sheet. In recent years, the concern over the realizable value has stabilized, and in late 2017 and 2018, several sales of Visa Class B shares have occurred. While not traded in observable markets, these sales were reported by several financial institutions in various SEC 8-K and 10-K filings. In 2018, FASB issued a technical correction to its guidance regarding equity securities, ASC 321-10-35-2, allowing an entity to subsequently elect to record an equity security without a readily determinable fair value. In 2018, CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value. On December 31, 2018, CTBI recorded a $1.2 million gain on the recognition of the fair value of 9,918 Visa Class B shares held in its portfolio. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $258.8 million at December 31, 2018 and $225.7 million at December 31, 2017. The amortized cost of securities sold under agreements to repurchase amounted to $289.1 million at December 31, 2018 and $296.4 million at December 31, 2017. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of December 31, 2018 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 December 31, 2018 was 75.7% compared to 69.5% as of December 31, 2017. 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, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2018. Available-for-Sale
The analysis performed as of December 31, 2017 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, 2017 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2017. Available-for-Sale
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 par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2018, 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 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 par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2018, because CTBI does not intend to sell the investments before recovery of their amortized cost 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 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 December 31, 2018, 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 maturity. Other Debt Securities The unrealized losses in other debt securities 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 par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2018, 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 maturity. CRA Investment Funds In 2017, CTBI’s CRA investment funds consisted of investments in fixed income mutual funds ($24.4 million of the total fair value and $718 thousand of the total unrealized losses in common stock investments). The severity of the impairment (fair value is approximately 2.9% less than cost) and the duration of the impairment correlates with the decline in long-term interest rates in 2017. CTBI evaluated the near-term prospects of these funds in relation to the severity and duration of the impairment. Based on that evaluation, CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2017. |
Loans |
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | 4. Loans Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:
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 or variable 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 a mixture of fixed rate and adjustable rate products comprised of unsecured loans, consumer revolving credit lines, deposit secured loans, and all other consumer purpose loans. Consumer indirect loans are fixed rate loans secured by automobiles, trucks, vans, and recreational vehicles originated at the selling dealership underwritten and purchased by CTBI’s indirect lending department. Both new and used products are financed. Only dealers who have executed dealer agreements with CTBI participate in the indirect lending program. Not included in the loan balances above were loans held for sale in the amount of $2.5 million at December 31, 2018 and $1.0 million at December 31, 2017. 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:
The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of December 31, 2018 and 2017:
*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 limited recourse agreements with CTB. Credit Quality Indicators: CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings:
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 December 31, 2018 and 2017:
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 December 31, 2018 and 2017:
(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 $3.3 million at December 31, 2018 compared to $3.7 million at December 31, 2017. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), 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 table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2018, 2017, and 2016:
*Cash basis interest is substantially the same as interest income recognized. Included in certain loan categories of impaired loans are certain loans 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 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. Certain loans have been 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 years ended December 31, 2018 and 2017:
No charge-offs have resulted from modifications for any of the presented periods. We had commitments to extend additional credit in the amount of $45 thousand and $213 thousand, respectively, at December 31, 2018 and 2017, on loans that were considered troubled debt restructurings. Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual. Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.
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Mortgage Banking and Servicing Rights |
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Mortgage Banking and Servicing Rights | 5. Mortgage Banking and Servicing Rights Mortgage banking activities primarily include residential mortgage originations and servicing. As discussed in note 1 above, mortgage servicing rights (“MSRs”) are carried at fair market value. The fair value is determined quarterly based on an independent third-party valuation using a discounted cash flow analysis and calculated using a computer pricing model. The system used in this evaluation, Compass Point, attempts to quantify loan level idiosyncratic risk by calculating a risk derived value. As a result, each loan’s unique characteristics determine the valuation assumptions ascribed to that loan. Additionally, the computer valuation is based on key economic assumptions including the 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, as applicable. Along with the gains received from the sale of loans, fees are received for servicing loans. These fees include late fees, which are recorded in interest income, and ancillary fees and monthly servicing fees, which are recorded in noninterest income. Costs of servicing loans are charged to expense as incurred. Changes in fair market value of the MSRs are reported as an increase or decrease to mortgage banking income. The following table presents the components of mortgage banking income:
Mortgage loans serviced for others are not included in the accompanying balance sheets. Loans serviced for the benefit of others (primarily FHLMC) totaled $462 million, $462 million, and $466 million at December 31, 2018, 2017, and 2016, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in demand deposits, were approximately $1.0 million at December 31, 2018, 2017, and 2016, respectively. Activity for capitalized mortgage servicing rights using the fair value method is as follows:
The fair values of capitalized mortgage servicing rights were $3.6 million, $3.5 million, and $3.4 million at December 31, 2018, 2017, and 2016, respectively. Fair values for the years ended December 31, 2018, 2017, and 2016 were determined by third-party valuations with a resulting 10.1% average discount rate over the last three years, respectively, and weighted average default rates of 2.57%, 3.03%, and 3.02%, respectively. Prepayment speeds generated using the Andrew Davidson Prepayment Model averaged 9.5%, 10.0%, and 9.5% at December 31, 2018, 2017, and 2016, respectively. MSR values are very sensitive to movement in interest rates as expected future net servicing income depends on the projected balance of the underlying loans, which can be greatly impacted by the level of prepayments. CTBI does not currently hedge against changes in the fair value of its MSR portfolio. |
Related Party Transactions |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions | 6. Related Party Transactions In the ordinary course of business, CTB has made extensions of credit and had transactions with certain directors and executive officers of CTBI or our subsidiaries, including their associates (as defined by the Securities and Exchange Commission). We believe such extensions of credit and transactions were made on substantially the same terms, including interest rate and collateral, as those prevailing at the same time for comparable transactions with other persons. Activity for related party extensions of credit during 2018 and 2017 is as follows:
The aggregate balances of related party deposits at December 31, 2018 and 2017 were $16.6 million and $15.8 million, respectively. A director of CTBI is a shareholder in a law firm that provided services to CTBI and its subsidiaries during the years 2018, 2017, and 2016. Approximately $1.1 million in legal fees and $0.1 million in expenses paid on behalf of CTBI, $1.2 million total, were paid to this law firm during 2018. Approximately $1.1 million in legal fees and $0.1 million in expenses, $1.2 million total, were paid during 2017, and approximately $1.0 million in legal fees and $0.1 million in expenses, $1.1 million in total, were paid during 2016. |
Allowance for Loan and Lease Losses |
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Allowance for Loan and Lease Losses | 7. 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 as of December 31, 2018, 2017, and 2016:
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Premises and Equipment |
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Premises and Equipment | 8. Premises and Equipment Premises and equipment are summarized as follows:
Depreciation and amortization of premises and equipment for 2018, 2017, and 2016 was $3.8 million, $3.9 million, and $3.7 million, respectively. |
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Other Real Estate Owned | 9. Other Real Estate Owned Activity for other real estate owned was as follows:
Carrying costs and fair value adjustments associated with foreclosed properties were $4.3 million, $4.5 million, and $2.9 million for 2018, 2017, and 2016, respectively. See note 1 for a description of our accounting policies relative to foreclosed properties and other real estate owned. The major classifications of foreclosed properties are shown in the following table:
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Deposits |
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Deposits | 10. Deposits Major classifications of deposits are categorized as follows:
Certificates of deposit and other time deposits of $250,000 or more at December 31, 2018 and 2017 were $219.0 million and $232.5 million, respectively. Wholesale brokered deposits at December 31, 2018 and 2017 were $42.3 million and $82.3 million, respectively. The decrease in wholesale brokered deposits resulted from a $40.0 million maturity during the third quarter 2018. Maturities of certificates of deposits and other time deposits are presented below:
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Borrowings |
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Borrowings | 11. Borrowings Short-term debt is categorized as follows:
All federal funds purchased mature and reprice daily. See note 12 for information regarding the maturities of our repurchase agreements. The average rates paid for federal funds purchased and repurchase agreements on December 31, 2018 were 2.18% and 2.01%, respectively. The maximum balance for repurchase agreements at any month-end during 2018 occurred at August 31, 2018, with a month-end balance of $253.2 million. The average balance of repurchase agreements for the year was $239.9 million. On November 30, 2017, Community Trust Bancorp, Inc. signed an amendment to a revolving credit promissory note, dated October 31, 2014 and last amended February 3, 2017, for a line of credit for general corporate purposes in the amount of $12 million at a floating interest rate of 2.00% in excess of the one-month LIBOR rate. This amendment extended the maturity date to November 30, 2018 with an unused commitment fee of 0.30%. CTBI did not renew the line of credit beyond the scheduled maturity date. Long-term debt is categorized as follows:
On March 30, 2007, CTBI issued $61.3 million in junior subordinated debentures to a newly formed unconsolidated Delaware statutory trust subsidiary which in turn issued $59.5 million of capital securities in a private placement to institutional investors. The debentures, which mature in 30 years but are redeemable at par at CTBI’s option after five years, were issued at a rate of 6.52% until June 1, 2012, and thereafter at a floating rate based on the three-month LIBOR plus 1.59%. The underlying capital securities were issued at the equivalent rates and terms. The proceeds of the debentures were used to fund the redemption on April 2, 2007 of all CTBI’s outstanding 9.0% and 8.25% junior subordinated debentures in the total amount of $61.3 million. In May 2017, CTBI was able to purchase $2.0 million of the junior subordinated debentures in the open market at a purchase price of $1.4 million, resulting in a gain of $0.6 million. The junior subordinated debentures will be retained by CTBI until maturity, and CTBI will continue to report the junior subordinated debentures at the net amount outstanding of $59.3 million. On November 29, 2018, the coupon rate was set at 4.33% for the March 1, 2019 distribution date, which was based on the three-month LIBOR rate as of November 29, 2018 of 2.74% plus 1.59%. |
Repurchase Agreements |
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Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements | 12. 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 $285.2 million and $295.4 million at December 31, 2018 and December 31, 2017, 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 December 31, 2018 and December 31, 2017 is presented in the following tables:
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Advances from Federal Home Loan Bank |
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Advances from Federal Home Loan Bank [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank | 13. Advances from Federal Home Loan Bank Federal Home Loan Bank advances consisted of the following monthly amortizing borrowings at December 31:
The advances from the FHLB that require monthly principal payments were due for repayment as follows:
At December 31, 2017, CTBI had monthly amortizing FHLB advances totaling $0.8 million at a weighted average interest rate of 1.14%. Advances totaling $0.4 million at December 31, 2018 were collateralized by FHLB stock of $14.7 million and a blanket lien on qualifying 1-4 family first mortgage loans. As of December 31, 2018, CTBI had a $555.6 million FHLB borrowing capacity with $0.4 million in advances and $243.0 million in letters of credit used for public fund pledging leaving $312.2 million available for additional advances. The advances had fixed interest rates of 0.00% and 2.00% with a weighted average rate of 0.07%. The advances are subject to restrictions or penalties in the event of prepayment. |
Income Taxes |
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Income Taxes | 14. Income Taxes The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows:
The Tax Cuts and Jobs Act (the “Act”) was enacted in December 2017. The Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent. As of December 31, 2018, we have completed our accounting for the tax effects of enactment of the Act. The effect of the Tax Cuts and Jobs Act (benefit) listed above for the year 2017, reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent. A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below:
The components of the net deferred tax liability as of December 31 are as follows:
CTBI accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. CTBI determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. With a few exceptions, CTBI is no longer subject to U.S. federal tax examinations by tax authorities for years before 2015, and state and local income tax examinations by tax authorities for years before 2014. For federal tax purposes, CTBI recognizes interest and penalties on income taxes as a component of income tax expense. CTBI files consolidated income tax returns with its subsidiaries. |
Employee Benefits |
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Employee Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits | 15. Employee Benefits CTBI maintains two separate retirement savings plans, a 401(k) Plan and an Employee Stock Ownership Plan (“ESOP”). The 401(k) Plan is available to all employees (age 21 and over) who are credited with one year of service (12 consecutive month period with at least 1,000 hours). Participants in the plan have the option to contribute from 1% to 20% of their annual compensation. CTBI matches 50% of participant contributions up to 8% of gross pay. CTBI may at its discretion, contribute an additional percentage of covered employees’ compensation. CTBI’s matching contributions were $1.1 million for the year ended December 31, 2018 and $1.0 million for the years ended December 31, 2017, and 2016. The 401(k) Plan owned 416,360, 406,021, and 482,426 shares of CTBI’s common stock at December 31, 2018, 2017, and 2016, respectively. Substantially all shares owned by the 401(k) were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase. The ESOP Plan has the same entrance requirements as the 401(k) Plan above. CTBI currently contributes 4% of covered employees’ compensation to the ESOP. The ESOP uses the contributions to acquire shares of CTBI’s common stock. CTBI’s contributions to the ESOP were $1.6 million for the year ended December 31, 2018 and 2017 and $1.5 million for the year ended December 31, 2016. The ESOP owned 726,327, 737,079, and 788,308 shares of CTBI’s common stock at December 31, 2018, 2017, and 2016, respectively. Substantially all shares owned by the ESOP were allocated to employee accounts on those dates. The market price of the shares at the date of allocation is essentially the same as the market price at the date of purchase. Stock-Based Compensation: As of December 31, 2018, CTBI maintained one active and two inactive incentive stock ownership plans covering key employees. The 2015 Stock Ownership Incentive Plan (“2015 Plan”) was approved by the Board of Directors and the Shareholders in 2015. The 2006 Stock Ownership Incentive Plan (“2006 Plan”) was approved by the Board of Directors and the Shareholders in 2006. The 2006 Plan was rendered inactive as of April 28, 2015. The 1998 Stock Option Plan (“1998 Plan”) was approved by the Board of Directors and the Shareholders in 1998. The 1998 Plan was rendered inactive as of April 26, 2006. The 2015 Plan has 550,000 shares authorized, 509,335 of which were available at December 31, 2018. Shares issuable pursuant to awards which were granted under the prior plans on or before their respective expiration or termination dates will be issued from the remaining shares reserved for issuance under the prior plans. The shares of common stock reserved for issuance under the prior plans in excess of the number of shares as to which options or other benefits are awarded thereunder, and any shares as to which options or other benefits granted under the prior plans may lapse, expire, terminate or be canceled, will not be reserved and available for issuance or reissuance under the 2015 Plan. The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of CTBI’s equity compensation plans as of December 31, 2018:
The following table details the shares available for future issuance under the 2015 Plan at December 31, 2018.
There were no stock options issued in 2017 or 2018. CTBI uses a Black-Scholes option pricing model with the following weighted average assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each option grant for the year end:
The expected life of options granted is estimated from past experience activity and represents the period of time that granted options are expected to be outstanding. The expected volatility is based on historical volatility of the stock using a historical look back that approximates the expected life of the option grant. The interest rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. CTBI’s stock-based compensation expense for the years 2018, 2017, and 2016 was $0.7 million, $0.6 million, and $0.5 million, respectively. Included in stock-based compensation expense were dividends paid on restricted stock shares in the amount of $51 thousand, $53 thousand, and $37 thousand, respectively, for the same periods. The 2015 Plan: CTBI’s stock option activity for the 2015 Plan for the years ended December 31, 2018, 2017, and 2016 is summarized as follows:
*Pursuant to the 2015 Plan provisions, the death of the option holder accelerated the vesting of 10,000 shares during the year. A summary of the status of CTBI’s 2015 Plan for nonvested options as of December 31, 2018, and changes during the year ended December 31, 2018, is presented as follows:
There were no options granted from the 2015 Plan for the year ended December 31, 2018. The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2015 Plan for the years ended December 31, 2018 and 2017:
The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2018 and 2017:
* Grants issued in 2016 were issued under the terms of the 2015 Plan pursuant to awards granted and earned under the 2006 Plan. The 2006 Plan: CTBI’s stock option activity for the 2006 Plan for the years ended December 31, 2018, 2017, and 2016 is summarized as follows:
A summary of the status of CTBI’s 2006 Plan for nonvested options as of December 31, 2018, and changes during the year ended December 31, 2018, is presented as follows:
The weighted average remaining contractual term in years of the options outstanding at December 31, 2018 was 5.0 years. There were no options granted from the 2006 Plan for the years 2018 and 2017. The weighted-average fair value of options granted from the 2006 Plan during the year 2016 was $0.1 million or $6.60 per share. The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended December 31, 2018, 2017, and 2016:
The following table shows restricted stock activity for the years ended December 31, 2018, 2017, and 2016:
The 1998 Plan: The 1998 Plan had no outstanding options and no activity for the years ended December 31, 2018 and 2017. CTBI’s stock option activity for the 1998 Plan for the year ended December 31, 2016 is summarized as follows:
The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 1998 Plan for the year ended December 31, 2016:
There were no nonvested options in the 1998 Plan for the years December 31, 2018, 2017, and 2016. The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2018, 2017, and 2016 and the total grant-date fair value of shares vested, cash received from option exercises under all share-based payment arrangements, and the actual tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the years ended December 31, 2018, 2017, and 2016.
The unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2018 is expected to be recognized over a weighted-average period of 2.4 years. |
Operating Leases |
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases | 16. Operating Leases Certain premises and equipment are leased under operating leases. Additionally, certain premises are leased or subleased to third parties. These leases generally contain renewal options and require CTBI to pay all executory costs, such as taxes, maintenance fees, and insurance. Minimum non-cancellable rental payments and rental receipts are as follows:
Rental expense net of rental income under operating leases was $1.3 million for 2018, $1.4 million for 2017, and $1.3 million for 2016. |
Fair Market Value of Financial Assets and Liabilities |
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Fair Market Value of Financial Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Market Value of Financial Assets and Liabilities | 17. 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 exit price 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 determining an exit price for 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 December 31, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques.
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 December 31, 2018 and December 31, 2017. There have been no significant changes in the valuation techniques during the year ended December 31, 2018. 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 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, U.S. government sponsored agency mortgage-backed securities, and other debt 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. Equity Securities at Fair Value As of December 31, 2018, the only securities owned by CTBI that were valued using Level 3 criteria are Visa Class B Stock (included in equity securities at fair value). In determining fair value for Visa Class B Stock, CTBI utilizes the expertise of an independent third party. Accordingly, fair value is determined by the independent third party using an income approach by utilizing assumptions about factors such as quarterly common stock dividend payments, the conversion of the securities to the relevant Class A Stock shares subject to the prevailing conversion rate and conversion date. We have reviewed the assumptions, processes, and conclusions of the third party provider. We have determined these assumptions, processes, and conclusions to be reasonable and appropriate in determining the fair value of this asset. See the table below for inputs and valuation techniques used for Level 3 equity securities. 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. We have reviewed the assumptions, processes, and conclusions of the third party provider. We have determined these assumptions, processes, and conclusions to be reasonable and appropriate in determining the fair value of this asset. 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 December 31, 2018. 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:
Realized and unrealized gains and losses for items reflected in the table above are included in net income in the consolidated statements of income as follows:
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 December 31, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques.
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. Fair value adjustments on impaired loans disclosed above were $0.3 million and $1.0 million for the years ended December 31, 2018 and December 31, 2017, respectively. 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. Fair value adjustments on other real estate/assets owned disclosed above were $1.8 million and $2.5 million for the years ended December 31, 2018 and December 31, 2017, respectively. 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 December 31, 2018 and December 31, 2017.
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. Equity Securities at Fair Value Fair market value for equity securities is derived based on unobservable inputs, such as the discount rate, quarterly dividends payable to the Visa Class B common stock and the prevailing conversion rate at the conversion date. The most recent conversion rate of 1.6298 and the most recent dividend rate of 0.4074 were used to derive the fair value estimate. 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 discount rate is accompanied by a directionally opposite change in the fair value estimate. Mortgage Servicing Rights Fair 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 December 31, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of December 31, 2018 were measured using an exit price notion.
The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2017 and indicates the level within the fair value hierarchy of the valuation techniques.
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Off-Balance Sheet Transactions and Guarantees |
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Off-Balance Sheet Transactions and Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Transactions and Guarantees | 18. Off-Balance Sheet Transactions and Guarantees CTBI is a party to transactions with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit in the form of unused lines of credit. CTBI uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At December 31, CTBI had the following off-balance sheet financial instruments, whose approximate contract amounts represent additional credit risk to CTBI:
Standby letters of credit represent conditional commitments to guarantee the performance of a third party. The credit risk involved is essentially the same as the risk involved in making loans. At December 31, 2018, we maintained a credit loss reserve recorded in other liabilities of approximately $7 thousand relating to these financial standby letters of credit. The reserve coverage calculation was determined using essentially the same methodology as used for the allowance for loan and lease losses. Approximately 65% of the total standby letters of credit are secured, with $16.0 million of the total $29.4 million secured by cash. Collateral for the remaining secured standby letters of credit varies but is comprised primarily of accounts receivable, inventory, property, equipment, and income-producing properties. Commitments to extend credit are agreements to originate loans to customers as long as there is no violation of any condition of the contract. At December 31, 2018, a credit loss reserve recorded in other liabilities of $248 thousand was maintained relating to these commitments. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate, and residential real estate. A portion of the commitments is to extend credit at fixed rates. Fixed rate loan commitments at December 31, 2018 of $31.7 million had interest rates ranging predominantly from 3.75% to 5.50%, respectively, and terms predominantly one year or less. These credit commitments were based on prevailing rates, terms, and conditions applicable to other loans being made at December 31, 2018. Included in our commitments to extend credit are mortgage loans in the process of origination which are intended for sale to investors in the secondary market. These forward sale commitments are on an individual loan basis that CTBI originates as part of its mortgage banking activities. CTBI commits to sell the loans at specified prices in a future period, typically within 60 days. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale since CTBI is exposed to interest rate risk during the period between issuing a loan commitment and the sale of the loan into the secondary market. Total mortgage loans in the process of origination amounted to $2.8 million and $2.5 million at December 31, 2018 and 2017, respectively, and mortgage loans held for sale amounted to $2.5 million and $1.0 million for the years ended December 31, 2018 and 2017, respectively. |
Concentrations of Credit Risk |
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Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | 19. Concentrations of Credit Risk CTBI’s banking activities include granting commercial, residential, and consumer loans to customers primarily located in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. CTBI is continuing to manage all components of its portfolio mix in a manner to reduce risk from changes in economic conditions. Concentrations of credit, as defined for regulatory purposes, are reviewed quarterly by management to ensure that internally established limits based on Tier 1 Capital plus the allowance for loan and lease losses are not exceeded. At December 31, 2018 and 2017, our concentrations of hotel/motel industry credits were 41% and 47% of Tier 1 Capital plus the allowance for loan and lease losses, respectively. Lessors of non-residential buildings credits were 39% and 45%, respectively. Lessors of residential buildings and dwellings were 39% and 39%, respectively. These percentages are within our internally established limits regarding concentrations of credit. |
Commitments and Contingencies |
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Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies CTBI and our subsidiaries, and from time to time, our officers, are named defendants in legal actions arising from ordinary business activities. Management, after consultation with legal counsel, believes any pending actions at December 31, 2018 are without merit or that the ultimate liability, if any, will not materially affect our consolidated financial position or results of operations. |
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Regulatory Matters | 21. Regulatory Matters CTBI’s principal source of funds is dividends received from our banking subsidiary, CTB. Regulations limit the amount of dividends that may be paid by CTB without prior approval. During 2019, approximately $63.4 million plus any 2019 net profits can be paid by CTB without prior regulatory approval. The Federal Reserve Bank adopted quantitative measures which assign risk weightings to assets and off-balance sheet items and also define and set minimum regulatory capital requirements (risk based capital ratios). All banks are required to have a minimum Tier 1 (core capital) leverage ratio of 4% of adjusted quarterly average assets, common equity Tier 1 capital ratio of at least 4.5% of risk-weighted assets, Tier 1 capital of at least 6% of risk-weighted assets, and total capital of at least 8% of risk-weighted assets. Tier 1 capital consists principally of shareholders’ equity including capital-qualifying subordinated debt but excluding unrealized gains and losses on securities available-for-sale, less goodwill and certain other intangibles. Total capital consists of Tier 1 capital plus certain debt instruments and the reserve for credit losses, subject to limitation. Failure to meet certain capital requirements can initiate certain actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. The regulations also define well-capitalized levels of Tier 1 leverage, common equity Tier 1 capital, Tier 1, and total capital as 5%, 6.5%, 8%, and 10%, respectively. We had Tier 1 leverage, common equity Tier 1 capital, Tier 1, and total capital ratios above the well-capitalized levels at December 31, 2018 and 2017. We believe, as of December 31, 2018, CTBI meets all capital adequacy requirements for which it is subject to be defined as well-capitalized under the regulatory framework for prompt corrective action. Under the current Federal Reserve Board’s regulatory framework, certain capital securities offered by wholly owned unconsolidated trust preferred entities of CTBI are included as Tier 1 regulatory capital. On March 1, 2005, the Federal Reserve Board adopted a final rule that allows the continued limited inclusion of trust preferred securities in the Tier 1 capital of bank holding companies (“BHCs”). Under the final rule, trust preferred securities and other restricted core capital elements are subject to stricter quantitative limits. The Board’s final rule limits restricted core capital elements to 25 percent of all core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. The final rule provided a five-year transition period, which ended March 31, 2009, for application of the quantitative limits. The requirement for trust preferred securities to include a call option has been eliminated, and standards for the junior subordinated debt underlying trust preferred securities eligible for Tier 1 capital treatment have been clarified. The final rule addressed supervisory concerns, competitive equity considerations, and the accounting for trust preferred securities. The final rule also strengthened the definition of regulatory capital by incorporating longstanding Board policies regarding the acceptable terms of capital instruments included in banking organizations’ Tier 1 or Tier 2 capital. The final rule did not have a material impact on our regulatory ratios. Consolidated Capital Ratios
Community Trust Bank, Inc.’s Capital Ratios
On July 2, 2013, the Federal Reserve approved final rules that substantially amended the regulatory risk-based capital rules applicable to CTBI and CTB. The FDIC subsequently approved these rules. The final rules implemented the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. The rules included new risk-based capital and leverage ratios, which were phased in from 2015 to January 2019, and refined the definition of what constitutes “capital” for purposes of calculating those ratios. The minimum capital level requirements applicable to CTBI and CTB under the final rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 capital ratio of 6%; (iii) a total capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The final rules also established 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 began to be phased in on January 1, 2016 at 0.625% of risk-weighted assets increased by 0.625% annually until fully implemented in January 2019. An institution is subject to limitations on certain activities including payment of dividends, share repurchases, and discretionary bonuses to executive officers if its capital level is below the total capital plus capital conservation buffer amount. The final rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions, including CTB, 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 capital level requirements in order to qualify as “well capitalized:” (i) a common equity Tier 1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8%; (iii) a total capital ratio of 10%; and (iv) a Tier 1 leverage ratio of 5%. We currently satisfy the well-capitalized and the capital conservation standards, and based on our current capital composition and levels, we anticipate that our capital ratios, on a Basel III basis, will continue to exceed the well-capitalized minimum capital requirements and capital conservation buffer standards. |
Parent Company Financial Statements |
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Parent Company Financial Statements | Condensed Balance Sheets
Condensed Statements of Income and Comprehensive Income
Condensed Statements of Cash Flows
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Earnings Per Share |
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Earnings Per Share | 23. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share:
There were no options to purchase common shares that were excluded from the diluted calculations above for the years ended December 31, 2018, 2017, and 2016. 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. |
Accumulated Other Comprehensive Income |
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Accumulated Other Comprehensive Income | 24. 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 years ended December 31, 2018, 2017, and 2016 were:
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Accounting Policies (Policies) |
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Basis of Presentation | Basis of Presentation – The consolidated financial statements include Community Trust Bancorp, Inc. (“CTBI”) and its subsidiaries, including its principal subsidiary, Community Trust Bank, Inc. (“CTB”). Intercompany transactions and accounts have been eliminated in consolidation. |
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Nature of Operations | Nature of Operations – Substantially all assets, liabilities, revenues, and expenses are related to banking operations, including lending, investing of funds, obtaining of deposits, trust and wealth management operations, full service brokerage operations, and other financing activities. All of our business offices and the majority of our business are located in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. |
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Use of Estimates | Use of Estimates – In preparing the consolidated financial statements, management must make certain estimates and assumptions. These estimates and assumptions affect the amounts reported for assets, liabilities, revenues, and expenses, as well as affecting the disclosures provided. Future results could differ from the current estimates. Such estimates include, but are not limited to, the allowance for loan and lease losses, valuation of other real estate owned, fair value of securities and mortgage servicing rights, goodwill, and valuation of deferred tax assets. The accompanying financial statements have been prepared using values and information currently available to CTBI. Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the allowance for loan and lease losses, and capital. |
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Cash and Cash Equivalents | Cash and Cash Equivalents – CTBI considers all liquid investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits in other financial institutions, and federal funds sold. Generally, federal funds are sold for one-day periods. |
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Certificates of Deposit in Other Banks | Certificates of Deposit in Other Banks – Certificates of deposit in other banks generally mature within 18 months and are carried at cost. |
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Investments | Investments – Management determines the classification of securities at purchase. We classify debt 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 Accounting Standards Codification (“ASC”) 320, Investments – Debt Securities, investments in debt securities that are not classified as held-to-maturity 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 debt securities are computed by specific identification for those securities. 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 CTBI’s results of operations and financial condition. Subsequent to the January 1, 2018 effective date of ASU 2016-01, ASC 320 applies only to debt securities and ASC 321, Investments – Equity Securities, applies to equity securities. ASC 321 requires equity investments (except those accounted for under the equity method and those that result in the consolidation of the investee) to be measured at fair value, with changes in fair values recognized in net income. Equity securities with a readily determinable fair value are required to be measured at fair value, with changes in fair value recognized through net income. Equity securities without a readily determinable fair value are carried at cost, less any impairment, if any, plus or minus changes resulting from observable price changes for identical or similar investments. An election can be made, as permitted by ASC 321-10-35-2, to subsequently measure an equity security without a readily determinable fair value, at fair value. Equity securities held by CTBI include securities without readily determinable fair values. CTBI has elected to account for these securities at fair value. The fair value of these securities was determined by a third party service provider using Level 3 inputs as defined in ASC 820, Fair Value Measurement, and changes in fair value are recognized in income. |
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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. |
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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. 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 nonaccrual 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, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. 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. Management continually reevaluates the other subjective factors included in its ALLL analysis. |
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Loans Held for Sale | Loans Held for Sale – Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses, if any, are recognized by charges to income. Gains and losses on loan sales are recorded in noninterest income. |
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Premises and Equipment | Premises and Equipment – Premises and equipment are stated at cost less accumulated depreciation and amortization. Capital leases are included in premises and equipment at the capitalized amount less accumulated amortization. Premises and equipment are evaluated for impairment on a quarterly basis. Depreciation and amortization are computed primarily using the straight-line method. Estimated useful lives range up to 40 years for buildings, 2 to 10 years for furniture, fixtures, and equipment, and up to the lease term for leasehold improvements. Capitalized leased assets are amortized on a straight-line basis over the lives of the respective leases. |
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Federal Home Loan Bank and Federal Reserve Stock | Federal Home Loan Bank and Federal Reserve Stock – CTB is a member of the Federal Home Loan Bank (“FHLB”) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors and may invest additional amounts. FHLB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. CTB is also a member of its regional Federal Reserve Bank. Federal Reserve Bank stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. |
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Other Real Estate Owned | Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current fair market value less expected sales costs. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated appraisal reflects a fair market value below the current book value, a charge is booked to current earnings to reduce the property to its new fair 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 through the income statement. |
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Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible – We evaluate total goodwill and core deposit intangible for impairment, based upon ASC 350, Intangibles-Goodwill and Other, using fair value techniques including multiples of price/equity. Goodwill and core deposit intangible are evaluated for impairment on an annual basis or as other events may warrant. The balance of goodwill, at $65.5 million, has not changed since January 1, 2015. Our core deposit intangible has been fully amortized since December 31, 2017. |
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Transfers of Financial Assets | Transfers of Financial Assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from CTBI—put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) CTBI does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
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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 years ended December 31, 2018, 2017, and 2016, CTBI has not recognized a significant amount of interest expense or penalties in connection with income taxes. |
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Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) – Basic EPS is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding, excluding restricted shares. Diluted EPS adjusts the number of weighted average shares of common stock outstanding by the dilutive effect of stock options, including restricted shares, as prescribed in ASC 718, Share-Based Payment. |
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Segments | Segments – Management analyzes the operation of CTBI assuming one operating segment, community banking services. CTBI, through its operating subsidiaries, offers a wide range of consumer and commercial community banking services. These services include: (i) residential and commercial real estate loans; (ii) checking accounts; (iii) regular and term savings accounts and savings certificates; (iv) full service securities brokerage services; (v) consumer loans; (vi) debit cards; (vii) annuity and life insurance products; (viii) Individual Retirement Accounts and Keogh plans; (ix) commercial loans; (x) trust and wealth management services; (xi) commercial demand deposit accounts; and (xii) repurchase agreements. |
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Bank Owned Life Insurance | Bank Owned Life Insurance – CTBI’s bank owned life insurance policies are carried at their cash surrender value. We recognize tax-free income from the periodic increases in cash surrender value of these policies and from death benefits. |
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Mortgage Servicing Rights | Mortgage Servicing Rights – Mortgage servicing rights (“MSRs”) are carried at fair market value following the accounting guidance in ASC 860-50, Servicing Assets and Liabilities. MSRs are valued using Level 3 inputs as defined in ASC 820, Fair Value Measurements. The fair value is determined quarterly based on an independent third-party valuation using a discounted cash flow analysis and calculated using a computer pricing model. The system used in this evaluation, Compass Point, attempts to quantify loan level idiosyncratic risk by calculating a risk derived value. As a result, each loan’s unique characteristics determine the valuation assumptions ascribed to that loan. Additionally, the computer valuation is based on key economic assumptions including the 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, as applicable. Along with the gains received from the sale of loans, fees are received for servicing loans. These fees include late fees, which are recorded in interest income, and ancillary fees and monthly servicing fees, which are recorded in noninterest income. Costs of servicing loans are charged to expense as incurred. Changes in fair market value of the MSRs are reported as an increase or decrease to mortgage banking income. |
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Share-Based Compensation | Share-Based Compensation – CTBI has a share-based employee compensation plan, which is described more fully in note 15 to the consolidated financial statements. CTBI accounts for this plan under the recognition and measurement principles of ASC 718, Share-Based Payment. |
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Comprehensive Income | Comprehensive Income – Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities and unrealized appreciation (depreciation) on available-for-sale securities for which a portion of an other than temporary impairment has been recognized in income. |
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Transfers between Fair Value Hierarchy Levels | Transfers between Fair Value Hierarchy Levels – Transfers in and out of Level 1 (quoted market prices), Level 2 (other significant observable inputs), and Level 3 (significant unobservable inputs) are recognized on the period ending date. |
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Reclassifications | Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year consolidated financial statements to conform to current year classifications. These reclassifications had no effect on net income. |
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New Accounting Standards | New Accounting Standards – Ø Financial Instruments – Overall – In January 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2016-01, Financial Instruments – Overall (Subtopic 825-10). The amendments in this Update require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting, those that result in consolidation of the investee, and certain other investments). The amendments in this Update also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. In addition, the amendments in this Update eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet for public business entities. Public business entities will be required to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. At December 31, 2017, we had $25 million in equity securities with a net unrealized loss of $0.6 million. Accordingly, an adjustment has been made as a cumulative effect adjustment to our consolidated balance sheet effective January 1, 2018. Note 17 below has been modified to reflect the changes in disclosure and the use of a notional exit price. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10). This ASU included a technical correction to its guidance regarding equity securities, ASC 321-10-35-2, allowing an entity to subsequently elect to record an equity security without a readily determinable fair value. In 2018, CTBI made the election permitted by ASC 321-10-35-2, to record 9,918 shares of Visa Class B restricted stock, which was transferred to CTBI by Visa in 2008, at fair value. If an entity subsequently elects to measure an equity security at fair value, the election is irrevocable and the entity must measure all identical or similar investments of the same issuer, including future purchases of identical or similar investments of the same issuer, at fair value. Any resulting gains or losses on the securities for which that election is made must be recorded in earnings at the time of the election. On December 31, 2018, CTBI recorded a $1.2 million gain on the recognition of the fair value of 9,918 Visa Class B shares held in its portfolio. Ø Leases – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor does not convey risks and rewards or control, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases. An entity that elects this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. The amendments do not change the existing disclosure requirements in Topic 840 (for example, they do not create interim disclosure requirements that entities previously were not required to provide). Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met:
An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the practical expedient in our implementation at January 1, 2019. Based on leases outstanding at December 31, 2018, the impact of adoption on January 1, 2019 was recording a lease liability of approximately $16.4 million, a right-of-use asset of approximately $15.9 million, and a cumulative-effect adjustment to retained earnings of approximately $0.5 million. Ø Revenue from Contracts with Customers – In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance also specifies the accounting for some costs to obtain or fulfill a contract with a customer, as well as enhanced disclosure requirements. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 to fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2017. In March 2016, the FASB issued ASU 2016-08 which clarified the revenue recognition implementation guidance on principal versus agent considerations and is effective during the same period as ASU 2014-09. In April 2016, the FASB issued ASU 2016-10 which clarified the revenue recognition guidance regarding the identification of performance obligations and the licensing implementation and is effective during the same period as ASU 2014-09. In May 2016, the FASB issued ASU 2016-12 which narrowly amended the revenue recognition guidance regarding collectability, noncash consideration, presentation of sales tax, and transition. ASU 2016-12 is effective during the same period as ASU 2014-09. At December 31, 2017, we had $0.5 million in deferred gains on sale of other real estate owned. Accordingly, an adjustment has been made as a cumulative effect adjustment to our consolidated balance sheet effective January 1, 2018. Accounting Standards Codification 606, Revenue from Contracts with Customers (“ASC 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other generally accepted accounting principles (“GAAP”) discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows:
Ø Accounting for Credit Losses – In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The provisions of ASU 2016-13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. This ASU requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016-13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. CTBI has an implementation team working through the provisions of ASU 2016-13 including assessing the impact on its accounting and disclosures. The team has established the historical data that will be available and has identified the potential loan segments to be analyzed. The team plans to determine the portfolio methodologies to be utilized and to begin running parallel with its current model in the third quarter of 2019. Ø Statement of Cash Flows – In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update apply to all entities that are required to present a statement of cash flows under Topic 230. This Update is the final version of Proposed Accounting Standards Update EITF-15F—Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230), which has been deleted. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this ASU effective January 1, 2018 with no material impact on CTBI’s consolidated financial statements. Ø Simplifying the Test for Goodwill Impairment – In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment. These amendments eliminate Step 2 from the goodwill impairment test. The amendments also eliminate the requirements from any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for fiscal years beginning after December 15, 2019, and interim periods with those fiscal years. ASU 2017-04 should be implemented on a prospective basis. Management does not expect ASU 2017-04 to have an impact on CTBI’s consolidated financial statements. Ø Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities – In April 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities. The ASU shortens the amortization period for certain callable debt securities held at a premium to the earliest call date. However, the amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments are effective for public business entities for fiscal periods beginning after December 15, 2018, including interim periods within those fiscal periods. Entities are required to apply the amendments on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We adopted this ASU effective January 1, 2018 with no material impact on CTBI’s consolidated financial statements. Ø Income Statement—Reporting Comprehensive Income – In February 2018, the FASB issued ASU No. 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220). On December 22, 2017, the U.S. federal government enacted a tax bill, the Tax Cuts and Jobs Act of 2017. The guidance in GAAP requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. That guidance was applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income (rather than in net income). Because the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate of 21 percent was required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this Update) did not reflect the appropriate tax rate. The amendments in this ASU require a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification is the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate. Consequently, the amendments in this Update eliminate the stranded tax effects associated with the change in the federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 and improve the usefulness of information reported to financial statement users. The amendments in this Update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for public business entities for reporting periods for which financial statements have not yet been issued by applying retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 is recognized. We elected to early adopt this ASU, and therefore, have adjusted our consolidated financial statements effective December 31, 2017 with minimal effect to our financial position. Ø Income Taxes—Amendments to SEC Paragraphs – The FASB issued ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 in March 2018. ASU 2018-05 amended the Accounting Standards Codification to incorporate various SEC paragraphs pursuant to the issuance of SAB 118. SAB 118 addressed the application of generally accepted accounting principles in situations when a registrant did not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. We did not have any situations where we did not have the necessary information available, prepared, and analyzed in reasonable detail to complete the accounting for the tax effects of the Tax Cuts and Jobs Act. Ø Changes to the Disclosure Requirements for Fair Value Measurement – In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820 as follows: Removals The following disclosure requirements were removed from Topic 820:
Modifications The following disclosure requirements were modified in Topic 820:
Additions The following disclosure requirements were added to Topic 820:
In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. CTBI plans to adopt ASU 2018-13 effective January 1, 2020 with minimal changes to our current reporting. Ø Accounting for Costs of Implementing a Cloud Computing Service Agreement– In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which reduces complexity for the accounting for costs of implementing a cloud computing service arrangement. This standard aligns the accounting for implementation costs of hosting arrangements, regardless of whether they convey a license to the hosted software. The ASU aligns the following requirements for capitalizing implementation costs:
This ASU will be effective beginning January 1, 2020. We do not anticipate a significant impact to our consolidated financial statements. |
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Available-for-sale Securities | The amortized cost and fair value of debt securities at December 31, 2018 are summarized as follows: Available-for-Sale
The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Available-for-Sale
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Amortized Cost and Fair Value of Held-to-maturity Securities | The amortized cost and fair value of debt securities at December 31, 2018 are summarized as follows: Held-to-Maturity
The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Held-to-Maturity
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Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of debt securities at December 31, 2018 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.
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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 December 31, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2018. Available-for-Sale
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, 2017 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2017. Available-for-Sale
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Loans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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:
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Nonaccrual Loans Segregated by Class of Loans | Nonaccrual loans segregated by class of loans were as follows:
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Bank's Loan Portfolio Aging Analysis, Segregated by Class | The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of December 31, 2018 and 2017:
*90+ and Accruing are also included in 90+ Days Past Due column. |
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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 December 31, 2018 and 2017:
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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 December 31, 2018 and 2017:
(1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
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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 years ended December 31, 2018, 2017, and 2016:
*Cash basis interest is substantially the same as interest income recognized. |
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Troubled Debt Restructurings | Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the years ended December 31, 2018 and 2017:
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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.
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Mortgage Banking and Servicing Rights (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage Banking and Servicing Rights [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Mortgage Banking Income | The following table presents the components of mortgage banking income:
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Activity for Capitalized Mortgage Servicing Rights Using Fair Value Method | Activity for capitalized mortgage servicing rights using the fair value method is as follows:
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Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Related Party Transactions | Activity for related party extensions of credit during 2018 and 2017 is as follows:
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Allowance for Loan and Lease Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 as of December 31, 2018, 2017, and 2016:
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Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment | Premises and equipment are summarized as follows:
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Other Real Estate Owned (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Other Real Estate Owned | Activity for other real estate owned was as follows:
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Major Classifications of Foreclosed Properties | The major classifications of foreclosed properties are shown in the following table:
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Deposits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major Classifications of Deposits | Major classifications of deposits are categorized as follows:
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Maturities of Certificates of Deposits and Other Time Deposits | Maturities of certificates of deposits and other time deposits are presented below:
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Borrowings (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||
Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||
Short-term Debt | Short-term debt is categorized as follows:
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Long-term Debt | Long-term debt is categorized as follows:
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Repurchase Agreements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 December 31, 2018 and December 31, 2017 is presented in the following tables:
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Advances from Federal Home Loan Bank (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances | Federal Home Loan Bank advances consisted of the following monthly amortizing borrowings at December 31:
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Advances from Federal Home Loan Bank Requiring Monthly Principal Payment Basis | The advances from the FHLB that require monthly principal payments were due for repayment as follows:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Provision for Income Taxes | The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows:
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Reconciliation of Income Tax Expense at Statutory Rate to Actual Income Tax Expense | A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below:
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Components of Net Deferred Tax Liability | The components of the net deferred tax liability as of December 31 are as follows:
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Employee Benefits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Shares to be Issued and Remaining Shares Available for Future Issuance | The following table provides detail of the number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance under all of CTBI’s equity compensation plans as of December 31, 2018:
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Schedule of Weighted Average Assumptions Used for Estimating Grant-Date Fair Value of Each Option Grant | CTBI uses a Black-Scholes option pricing model with the following weighted average assumptions, which are evaluated and revised as necessary, in estimating the grant-date fair value of each option grant for the year end:
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Unrecognized Compensation Cost, Grant-Date Fair Value of Shares Vested, Cash Received from Option Exercises and Actual Tax Benefit Realized for Tax Deductions from Option Exercises | The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2018, 2017, and 2016 and the total grant-date fair value of shares vested, cash received from option exercises under all share-based payment arrangements, and the actual tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the years ended December 31, 2018, 2017, and 2016.
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2015 Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Shares to be Issued and Remaining Shares Available for Future Issuance | The following table details the shares available for future issuance under the 2015 Plan at December 31, 2018.
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Schedule of Stock Option Activity | CTBI’s stock option activity for the 2015 Plan for the years ended December 31, 2018, 2017, and 2016 is summarized as follows:
*Pursuant to the 2015 Plan provisions, the death of the option holder accelerated the vesting of 10,000 shares during the year. |
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Summary for Status of Nonvested Options | A summary of the status of CTBI’s 2015 Plan for nonvested options as of December 31, 2018, and changes during the year ended December 31, 2018, is presented as follows:
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Schedule of Intrinsic Values of Options Exercised, Exercisable, and Outstanding | The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2015 Plan for the years ended December 31, 2018 and 2017:
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Schedule of Restricted Stock Activity | The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2018 and 2017:
* Grants issued in 2016 were issued under the terms of the 2015 Plan pursuant to awards granted and earned under the 2006 Plan. |
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2006 Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | CTBI’s stock option activity for the 2006 Plan for the years ended December 31, 2018, 2017, and 2016 is summarized as follows:
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Summary for Status of Nonvested Options | A summary of the status of CTBI’s 2006 Plan for nonvested options as of December 31, 2018, and changes during the year ended December 31, 2018, is presented as follows:
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Schedule of Intrinsic Values of Options Exercised, Exercisable, and Outstanding | The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended December 31, 2018, 2017, and 2016:
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Schedule of Restricted Stock Activity | The following table shows restricted stock activity for the years ended December 31, 2018, 2017, and 2016:
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1998 Plan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | CTBI’s stock option activity for the 1998 Plan for the year ended December 31, 2016 is summarized as follows:
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Schedule of Intrinsic Values of Options Exercised, Exercisable, and Outstanding | The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 1998 Plan for the year ended December 31, 2016:
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Operating Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Minimum Non-Cancellable Rental Payments and Rental Receipts | Minimum non-cancellable rental payments and rental receipts are as follows:
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Fair Market Value of Financial Assets and Liabilities (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 December 31, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques.
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Reconciliation of the Beginning and Ending Balance of Recurring Fair Value Measurements 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:
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Realized and Unrealized Gains and Losses for Items Included in Net Income in the Consolidated Statements of Income | Realized and unrealized gains and losses for items reflected in the table above are included in net income in the consolidated statements of income as follows:
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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 December 31, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques.
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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 December 31, 2018 and December 31, 2017.
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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 December 31, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of December 31, 2018 were measured using an exit price notion.
The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2017 and indicates the level within the fair value hierarchy of the valuation techniques.
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Off-Balance Sheet Transactions and Guarantees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Transactions and Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Financial Instruments | At December 31, CTBI had the following off-balance sheet financial instruments, whose approximate contract amounts represent additional credit risk to CTBI:
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Regulatory Matters (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Amounts and Ratios | Consolidated Capital Ratios
Community Trust Bank, Inc.’s Capital Ratios
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Parent Company Financial Statements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheets | Condensed Balance Sheets
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Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income
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Condensed Statements of Cash Flows | Condensed Statements of Cash Flows
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
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Accumulated Other Comprehensive Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 years ended December 31, 2018, 2017, and 2016 were:
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Cash and Due from Banks and Interest Bearing Deposits (Details) - USD ($) $ in Millions |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Federal Reserve [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Balance requirements | $ 74.7 | $ 73.5 |
Cash accounts which exceeded federally insured limits | 73.5 | |
US Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | 29.1 | |
Fifth Third Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | 0.7 | |
Federal Home Loan Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | $ 2.2 |
Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Securities Held-to-Maturity [Abstract] | ||
Amortized cost | $ 649 | $ 659 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 649 | 660 |
State and Political Subdivisions [Member] | ||
Securities Held-to-Maturity [Abstract] | ||
Amortized cost | 649 | 659 |
Gross unrealized gains | 0 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 649 | $ 660 |
Loans, Credit Risk Profile Based on Rating Category and Payment Activity and on Performing and Nonperforming Status, Segregated by Class (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
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Dec. 31, 2018 |
Dec. 31, 2017 |
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Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | $ 3,208,638 | $ 3,122,940 | |||
Consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process | 3,300 | 3,700 | |||
Commercial [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,644,746 | 1,619,235 | |||
Commercial [Member] | Pass [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | $ 1,441,702 | 1,430,207 | |||
Commercial [Member] | Pass [Member] | Minimum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Review period for loans | 12 months | ||||
Commercial [Member] | Pass [Member] | Maximum [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Review period for loans | 18 months | ||||
Commercial [Member] | Watch [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | $ 103,890 | 97,513 | |||
Commercial [Member] | OAEM [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 27,063 | 26,948 | |||
Commercial [Member] | Substandard [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 71,924 | 63,998 | |||
Commercial [Member] | Doubtful [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 167 | 569 | |||
Commercial [Member] | Construction [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 82,715 | 76,479 | |||
Commercial [Member] | Construction [Member] | Pass [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 74,222 | 67,846 | |||
Commercial [Member] | Construction [Member] | Watch [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 3,070 | 3,323 | |||
Commercial [Member] | Construction [Member] | OAEM [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,594 | 1,304 | |||
Commercial [Member] | Construction [Member] | Substandard [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 3,829 | 3,828 | |||
Commercial [Member] | Construction [Member] | Doubtful [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 0 | 178 | |||
Commercial [Member] | Real Estate [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,183,093 | 1,188,680 | |||
Commercial [Member] | Real Estate [Member] | Pass [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,038,309 | 1,053,701 | |||
Commercial [Member] | Real Estate [Member] | Watch [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 71,834 | 65,182 | |||
Commercial [Member] | Real Estate [Member] | OAEM [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 19,734 | 22,401 | |||
Commercial [Member] | Real Estate [Member] | Substandard [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 53,125 | 47,223 | |||
Commercial [Member] | Real Estate [Member] | Doubtful [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 91 | 173 | |||
Commercial [Member] | Equipment Lease [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,740 | 3,042 | |||
Commercial [Member] | Equipment Lease [Member] | Pass [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,740 | 3,005 | |||
Commercial [Member] | Equipment Lease [Member] | Watch [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 0 | 0 | |||
Commercial [Member] | Equipment Lease [Member] | OAEM [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 0 | 37 | |||
Commercial [Member] | Equipment Lease [Member] | Substandard [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 0 | 0 | |||
Commercial [Member] | Equipment Lease [Member] | Doubtful [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 0 | 0 | |||
Commercial [Member] | Other [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 377,198 | 351,034 | |||
Commercial [Member] | Other [Member] | Pass [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 327,431 | 305,655 | |||
Commercial [Member] | Other [Member] | Watch [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 28,986 | 29,008 | |||
Commercial [Member] | Other [Member] | OAEM [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 5,735 | 3,206 | |||
Commercial [Member] | Other [Member] | Substandard [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 14,970 | 12,947 | |||
Commercial [Member] | Other [Member] | Doubtful [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 76 | 218 | |||
Residential [Member] | Construction [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 57,160 | 67,358 | |||
Residential [Member] | Construction [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 57,132 | 66,817 | |||
Residential [Member] | Construction [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | 28 | 541 | ||
Residential [Member] | Real Estate [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 722,417 | 709,570 | |||
Residential [Member] | Real Estate [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 712,927 | 695,034 | |||
Residential [Member] | Real Estate [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | 9,490 | 14,536 | ||
Residential [Member] | Home Equity [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 106,299 | 99,356 | |||
Residential [Member] | Home Equity [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 105,576 | 98,800 | |||
Residential [Member] | Home Equity [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | 723 | 556 | ||
Consumer [Member] | Consumer Direct [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 144,289 | 137,754 | |||
Consumer [Member] | Consumer Direct [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 144,215 | 137,692 | |||
Consumer [Member] | Consumer Direct [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | 74 | 62 | ||
Consumer [Member] | Consumer Indirect [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 533,727 | 489,667 | |||
Consumer [Member] | Consumer Indirect [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 533,221 | 489,019 | |||
Consumer [Member] | Consumer Indirect [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | 506 | 648 | ||
Residential and Consumer Portfolio Segments [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,563,892 | 1,503,705 | |||
Residential and Consumer Portfolio Segments [Member] | Performing [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | 1,553,071 | 1,487,362 | |||
Residential and Consumer Portfolio Segments [Member] | Nonperforming [Member] | |||||
Credit Risk Profile, Segregated by Class [Abstract] | |||||
Loan portfolio based on credit risk profile | [1] | $ 10,821 | $ 16,343 | ||
|
Loans, Impaired Loans, Average Investments in Impaired Loans, and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | $ 801 | $ 991 | $ 1,313 | |||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 46,366 | 47,412 | 52,202 | |||
Unpaid Contractual Principal Balance | 50,956 | 52,212 | 55,888 | |||
Specific Allowance | 801 | 991 | 1,313 | |||
Average Investment in Impaired Loans | 47,097 | 49,343 | 55,679 | |||
Interest Income Recognized | [1] | 2,171 | 2,127 | 2,530 | ||
Commercial [Member] | Construction [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 4,100 | 4,431 | 4,102 | |||
Unpaid Contractual Principal Balance | 4,100 | 4,439 | 4,123 | |||
Average Investment in Impaired Loans | 3,923 | 4,835 | 4,367 | |||
Interest Income Recognized | [1] | 171 | 200 | 218 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 127 | 153 | 1,507 | |||
Unpaid Contractual Principal Balance | 127 | 173 | 1,509 | |||
Specific Allowance | 50 | 25 | 213 | |||
Average Investment in Impaired Loans | 42 | 155 | 2,290 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 4,227 | 4,584 | 5,609 | |||
Unpaid Contractual Principal Balance | 4,227 | 4,612 | 5,632 | |||
Specific Allowance | 50 | 25 | 213 | |||
Average Investment in Impaired Loans | 3,965 | 4,990 | 6,657 | |||
Interest Income Recognized | [1] | 171 | 200 | 218 | ||
Commercial [Member] | Real Estate [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 29,645 | 28,480 | 29,025 | |||
Unpaid Contractual Principal Balance | 31,409 | 30,365 | 29,594 | |||
Average Investment in Impaired Loans | 30,250 | 27,753 | 31,136 | |||
Interest Income Recognized | [1] | 1,412 | 1,344 | 1,609 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 1,854 | 2,985 | 4,731 | |||
Unpaid Contractual Principal Balance | 2,983 | 4,095 | 5,885 | |||
Specific Allowance | 605 | 966 | 1,035 | |||
Average Investment in Impaired Loans | 2,051 | 3,932 | 4,151 | |||
Interest Income Recognized | [1] | 1 | 8 | 19 | ||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 31,499 | 31,465 | 33,756 | |||
Unpaid Contractual Principal Balance | 34,392 | 34,460 | 35,479 | |||
Specific Allowance | 605 | 966 | 1,035 | |||
Average Investment in Impaired Loans | 32,301 | 31,685 | 35,287 | |||
Interest Income Recognized | [1] | 1,413 | 1,352 | 1,628 | ||
Commercial [Member] | Equipment Lease Financing [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 0 | 0 | 0 | |||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 34 | 0 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | 0 | 0 | |||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 0 | 0 | 0 | |||
Unpaid Contractual Principal Balance | 0 | 0 | 0 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 34 | 0 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Commercial [Member] | Other [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 8,285 | 9,481 | 11,215 | |||
Unpaid Contractual Principal Balance | 9,982 | 11,252 | 13,155 | |||
Average Investment in Impaired Loans | 8,774 | 10,444 | 11,561 | |||
Interest Income Recognized | [1] | 530 | 539 | 632 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 473 | 0 | 139 | |||
Unpaid Contractual Principal Balance | 473 | 0 | 139 | |||
Specific Allowance | 146 | 0 | 65 | |||
Average Investment in Impaired Loans | 285 | 65 | 483 | |||
Interest Income Recognized | [1] | 16 | 0 | 0 | ||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 8,758 | 9,481 | 11,354 | |||
Unpaid Contractual Principal Balance | 10,455 | 11,252 | 13,294 | |||
Specific Allowance | 146 | 0 | 65 | |||
Average Investment in Impaired Loans | 9,059 | 10,509 | 12,044 | |||
Interest Income Recognized | [1] | 546 | 539 | 632 | ||
Residential [Member] | Construction [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 0 | 318 | ||||
Unpaid Contractual Principal Balance | 0 | 318 | ||||
Average Investment in Impaired Loans | 106 | 534 | ||||
Interest Income Recognized | [1] | 0 | 0 | |||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | 0 | ||||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 0 | 318 | ||||
Unpaid Contractual Principal Balance | 0 | 318 | ||||
Specific Allowance | 0 | 0 | ||||
Average Investment in Impaired Loans | 106 | 534 | ||||
Interest Income Recognized | [1] | 0 | 0 | |||
Residential [Member] | Real Estate [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 1,882 | 1,564 | 1,483 | |||
Unpaid Contractual Principal Balance | 1,882 | 1,570 | 1,483 | |||
Average Investment in Impaired Loans | 1,666 | 1,591 | 1,691 | |||
Interest Income Recognized | [1] | 41 | 36 | 52 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | 0 | 0 | |||
Total impaired loans [Abstract] | ||||||
Recorded Balance | 1,882 | 1,564 | 1,483 | |||
Unpaid Contractual Principal Balance | 1,882 | 1,570 | 1,483 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 1,666 | 1,591 | 1,691 | |||
Interest Income Recognized | [1] | $ 41 | $ 36 | $ 52 | ||
|
Loans, Troubled Debt Restructurings Segregated by Class (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
Loan
|
Dec. 31, 2017
USD ($)
Loan
|
|
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 40 | 43 |
Post-Modification Outstanding Balance | $ 9,017 | $ 5,547 |
Commitment to extend additional credit on loans modified in TDRs | $ 45 | $ 213 |
Defaulted restructured loans, number of loans | Loan | 4 | 1 |
Defaulted restructured loans, recorded balance | $ 249 | $ 846 |
Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 6,915 | 5,105 |
Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 2,102 | $ 442 |
Commercial [Member] | Construction [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 5 | 2 |
Post-Modification Outstanding Balance | $ 2,197 | $ 114 |
Defaulted restructured loans, number of loans | Loan | 2 | 0 |
Defaulted restructured loans, recorded balance | $ 148 | $ 0 |
Commercial [Member] | Construction [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 2,182 | 0 |
Commercial [Member] | Construction [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Construction [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 15 | $ 114 |
Commercial [Member] | Real Estate [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 24 | 15 |
Post-Modification Outstanding Balance | $ 5,387 | $ 2,391 |
Defaulted restructured loans, number of loans | Loan | 1 | 0 |
Defaulted restructured loans, recorded balance | $ 17 | $ 0 |
Commercial [Member] | Real Estate [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 4,004 | 2,199 |
Commercial [Member] | Real Estate [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Real Estate [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 1,383 | $ 192 |
Commercial [Member] | Other [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 8 | 22 |
Post-Modification Outstanding Balance | $ 465 | $ 1,208 |
Defaulted restructured loans, number of loans | Loan | 1 | 0 |
Defaulted restructured loans, recorded balance | $ 84 | $ 0 |
Commercial [Member] | Other [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 465 | 1,072 |
Commercial [Member] | Other [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Other [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 0 | $ 136 |
Residential [Member] | Construction [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 0 | 1 |
Post-Modification Outstanding Balance | $ 0 | $ 846 |
Defaulted restructured loans, number of loans | Loan | 0 | 1 |
Defaulted restructured loans, recorded balance | $ 0 | $ 846 |
Residential [Member] | Construction [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 846 |
Residential [Member] | Construction [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Residential [Member] | Construction [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 0 | $ 0 |
Residential [Member] | Real Estate [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 3 | 3 |
Post-Modification Outstanding Balance | $ 968 | $ 988 |
Defaulted restructured loans, number of loans | Loan | 0 | 0 |
Defaulted restructured loans, recorded balance | $ 0 | $ 0 |
Residential [Member] | Real Estate [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 264 | 988 |
Residential [Member] | Real Estate [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Residential [Member] | Real Estate [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 704 | $ 0 |
Mortgage Banking and Servicing Rights (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
||||||||
Mortgage Banking and Servicing Rights [Abstract] | ||||||||||
Net gain on sale of mortgage loans held for sale | $ 1,288 | $ 1,232 | $ 1,831 | |||||||
Net loan servicing income (expense) [Abstract] | ||||||||||
Servicing fees | 1,275 | 1,255 | 1,239 | |||||||
Late fees | 73 | 84 | 78 | |||||||
Ancillary fees | 282 | 239 | 322 | |||||||
Fair value adjustments | (343) | (361) | (324) | |||||||
Net loan servicing income | 1,287 | 1,217 | 1,315 | |||||||
Mortgage banking income | 2,575 | 2,449 | 3,146 | |||||||
Loan service for benefit of others | 462,000 | 462,000 | 466,000 | |||||||
Custodial escrow balance | 1,000 | 1,000 | 1,000 | |||||||
Activity for capitalized mortgage servicing rights using fair value method [Roll Forward] | ||||||||||
Fair value of MSRs, beginning of period | 3,484 | 3,433 | 3,236 | |||||||
New servicing assets created | 466 | 412 | 521 | |||||||
Change in fair value during the period due to [Abstract] | ||||||||||
Time decay | [1] | (189) | (184) | (175) | ||||||
Payoffs | [2] | (227) | (268) | (313) | ||||||
Changes in valuation inputs or assumptions | [3] | 73 | 91 | 164 | ||||||
Fair value of MSRs, end of period | $ 3,607 | $ 3,484 | $ 3,433 | |||||||
Discount rate of servicing assets and servicing liabilities | 10.10% | 10.10% | 10.10% | |||||||
Weighted average default rates | 2.57% | 3.03% | 3.02% | |||||||
Prepayment speeds generated using Andrew Davidson Prepayment Model | 9.50% | 10.00% | 9.50% | |||||||
|
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Related party extensions of credit, beginning of period | $ 16,832 | $ 27,081 | |
New loans and advances on lines of credit | 6,425 | 522 | |
Repayments | (3,794) | (2,615) | |
Increase (decrease) due to changes in related parties | 0 | (8,156) | |
Related party extensions of credit, end of period | 19,463 | 16,832 | $ 27,081 |
Due to Related Parties [Abstract] | |||
Balances of related party deposits | 16,600 | 15,800 | |
Director Who is Shareholder in Law Firm [Member] | Law Firm [Member] | |||
Related Parties Transactions [Abstract] | |||
Legal fees | 1,100 | 1,100 | 1,000 |
Expenses | 100 | 100 | 100 |
Total payment to related party | $ 1,200 | $ 1,200 | $ 1,100 |
Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Allowance for loan losses [Roll Forward] | |||
Beginning balance | $ 36,151 | $ 35,933 | $ 36,094 |
Provision charged to expense | 6,167 | 7,521 | 7,872 |
Losses charged off | (10,998) | (11,085) | (11,668) |
Recoveries | 4,588 | 3,782 | 3,635 |
Ending balance | 35,908 | 36,151 | 35,933 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 801 | 991 | 1,313 |
Collectively evaluated for impairment | 35,107 | 35,160 | 34,620 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 46,366 | 47,412 | 52,202 |
Collectively evaluated for impairment | 3,162,272 | 3,075,528 | 2,886,169 |
Commercial [Member] | Construction [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 686 | 884 | 2,199 |
Provision charged to expense | 115 | (237) | (1,035) |
Losses charged off | 0 | (10) | (316) |
Recoveries | 61 | 49 | 36 |
Ending balance | 862 | 686 | 884 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 50 | 25 | 213 |
Collectively evaluated for impairment | 812 | 661 | 671 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 4,227 | 4,584 | 5,609 |
Collectively evaluated for impairment | 78,488 | 71,895 | 61,389 |
Commercial [Member] | Real Estate [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 14,509 | 14,191 | 14,434 |
Provision charged to expense | 786 | 2,281 | 1,220 |
Losses charged off | (988) | (2,038) | (1,641) |
Recoveries | 224 | 75 | 178 |
Ending balance | 14,531 | 14,509 | 14,191 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 605 | 966 | 1,035 |
Collectively evaluated for impairment | 13,926 | 13,543 | 13,156 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 31,499 | 31,465 | 33,756 |
Collectively evaluated for impairment | 1,151,594 | 1,157,215 | 1,051,672 |
Commercial [Member] | Equipment Lease Financing [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 18 | 42 | 79 |
Provision charged to expense | (6) | (24) | (37) |
Losses charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 12 | 18 | 42 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 12 | 18 | 42 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,740 | 3,042 | 5,512 |
Commercial [Member] | Other [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 5,039 | 4,656 | 4,225 |
Provision charged to expense | 824 | 1,744 | 2,128 |
Losses charged off | (1,513) | (1,893) | (2,136) |
Recoveries | 643 | 532 | 439 |
Ending balance | 4,993 | 5,039 | 4,656 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 146 | 0 | 65 |
Collectively evaluated for impairment | 4,847 | 5,039 | 4,591 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 8,758 | 9,481 | 11,354 |
Collectively evaluated for impairment | 368,440 | 341,553 | 338,805 |
Residential [Member] | Construction [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 660 | 629 | 550 |
Provision charged to expense | (115) | 31 | 264 |
Losses charged off | (33) | 0 | (192) |
Recoveries | 0 | 0 | 7 |
Ending balance | 512 | 660 | 629 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 512 | 660 | 629 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 318 | 0 |
Collectively evaluated for impairment | 57,160 | 67,040 | 57,966 |
Residential [Member] | Real Estate [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 5,688 | 6,027 | 6,678 |
Provision charged to expense | (336) | 189 | 291 |
Losses charged off | (1,004) | (615) | (1,043) |
Recoveries | 85 | 87 | 101 |
Ending balance | 4,433 | 5,688 | 6,027 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 4,433 | 5,688 | 6,027 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 1,882 | 1,564 | 1,483 |
Collectively evaluated for impairment | 720,535 | 708,006 | 701,486 |
Residential [Member] | Home Equity [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 857 | 774 | 839 |
Provision charged to expense | 39 | 257 | (20) |
Losses charged off | (69) | (178) | (54) |
Recoveries | 14 | 4 | 9 |
Ending balance | 841 | 857 | 774 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 841 | 857 | 774 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 106,299 | 99,356 | 91,511 |
Consumer [Member] | Consumer Direct [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 1,863 | 1,885 | 1,594 |
Provision charged to expense | 572 | 418 | 912 |
Losses charged off | (997) | (965) | (1,236) |
Recoveries | 445 | 525 | 615 |
Ending balance | 1,883 | 1,863 | 1,885 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,883 | 1,863 | 1,885 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 144,289 | 137,754 | 133,093 |
Consumer [Member] | Consumer Indirect [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 6,831 | 6,845 | 5,496 |
Provision charged to expense | 4,288 | 2,862 | 4,149 |
Losses charged off | (6,394) | (5,386) | (5,050) |
Recoveries | 3,116 | 2,510 | 2,250 |
Ending balance | 7,841 | 6,831 | 6,845 |
Allowance for loan losses ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 7,841 | 6,831 | 6,845 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 533,727 | $ 489,667 | $ 444,735 |
Premises and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 124,592 | $ 122,243 | |
Less accumulated depreciation and amortization | (79,301) | (75,925) | |
Premises and equipment, net | 45,291 | 46,318 | |
Depreciation and amortization of premises and equipment | 3,800 | 3,900 | $ 3,700 |
Land and Buildings [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 79,815 | 79,173 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 4,805 | 4,894 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 38,576 | 38,096 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 1,396 | $ 80 |
Other Real Estate Owned (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Activity for other real estate owned [Roll Forward] | |||
Beginning balance of other real estate owned | $ 31,996 | $ 35,856 | |
New assets acquired | 5,459 | 5,382 | |
Fair value adjustments | (2,530) | (3,034) | $ (1,214) |
Sale of assets | (7,652) | (6,208) | |
Ending balance of other real estate owned | 27,273 | 31,996 | 35,856 |
Carrying cost and fair value adjustments for foreclosed properties | $ 4,300 | $ 4,500 | $ 2,900 |
Other Real Estate Owned, Major Classifications of Foreclosed Properties (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 27,273 | $ 31,996 |
1-4 Family [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 5,253 | 5,908 |
Agricultural/Farmland [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 0 | 68 |
Construction/Land Development/Other [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 15,017 | 16,158 |
Multifamily [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 88 | 176 |
Non-farm/Non-residential [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 6,915 | $ 9,686 |
Deposits (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Deposits [Abstract] | |||
Noninterest bearing deposits | $ 803,316 | $ 790,930 | |
NOW accounts | 56,964 | 51,218 | |
Money market deposits | 887,288 | 692,021 | |
Savings | 406,749 | 416,551 | |
Certificates of deposit and other time deposits of $100,000 or more | 651,967 | 759,025 | |
Certificates of deposit and other time deposits less than $100,000 | 499,666 | 554,118 | |
Total deposits | 3,305,950 | 3,263,863 | |
Certificates of deposit and other time deposits of $250,000 or more | 219,000 | 232,500 | |
Wholesale brokered deposits | 42,300 | $ 82,300 | |
Wholesale brokered deposits matured during period | $ 40,000 | ||
Maturities of Time Deposits [Abstract] | |||
Total | 1,151,633 | ||
Within 1 Year | 840,592 | ||
2 Years | 168,637 | ||
3 Years | 64,312 | ||
4 Years | 41,716 | ||
5 Years | 36,118 | ||
After 5 Years | 258 | ||
Certificates of Deposit and Other Time Deposits of $100,000 or More [Member] | |||
Maturities of Time Deposits [Abstract] | |||
Total | 651,967 | ||
Within 1 Year | 438,837 | ||
2 Years | 125,420 | ||
3 Years | 40,706 | ||
4 Years | 27,135 | ||
5 Years | 19,869 | ||
After 5 Years | 0 | ||
Certificates of Deposit and Other Time Deposits Less Than $100,000 [Member] | |||
Maturities of Time Deposits [Abstract] | |||
Total | 499,666 | ||
Within 1 Year | 401,755 | ||
2 Years | 43,217 | ||
3 Years | 23,606 | ||
4 Years | 14,581 | ||
5 Years | 16,249 | ||
After 5 Years | $ 258 |
Borrowings, Short-term Debt (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Short-term Debt [Abstract] | ||
Repurchase agreements | $ 232,712 | $ 243,814 |
Federal funds purchased | 1,180 | 7,312 |
Total short-term debt | $ 233,892 | $ 251,126 |
Federal Funds Purchased [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 2.18% | |
Repurchase Agreements [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 2.01% | |
Maximum balance for repurchase agreements at any month-end | $ 253,200 | |
Average balance of repurchase agreements | $ 239,900 |
Borrowings, Line of Credit Facility (Details) - Revolving Credit Promissory Note [Member] - USD ($) $ in Millions |
11 Months Ended | 12 Months Ended |
---|---|---|
Nov. 30, 2018 |
Dec. 31, 2018 |
|
Credit Facility [Abstract] | ||
Maximum borrowing capacity under line of credit for general corporate purpose | $ 12 | |
Unused commitment fee | 0.30% | |
Maturity date of line of credit | Nov. 30, 2018 | |
LIBOR Rate [Member] | ||
Credit Facility [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 2.00% |
Borrowings, Long-term Debt (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 29, 2018 |
Apr. 02, 2007 |
Mar. 30, 2007 |
May 31, 2017 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Long-term debt [Abstract] | |||||||
Debt instrument, purchase price | $ 0 | $ 1,440 | $ 0 | ||||
Gain on repurchase of debt instrument | 0 | 560 | $ 0 | ||||
Junior Subordinated Debentures [Member] | |||||||
Long-term debt [Abstract] | |||||||
Issuance of debt | $ 61,341 | ||||||
Long-term debt | $ 59,341 | $ 59,341 | |||||
Interest rate on junior subordinated debentures | 4.33% | 6.52% | |||||
Maturity date of junior subordinated debentures | Jun. 01, 2037 | ||||||
Maturity period of debentures | 30 years | ||||||
Period after which debentures are redeemable | 5 years | ||||||
Repayment of debt | $ 61,341 | ||||||
Debt instrument, repurchased face amount | $ 2,000 | ||||||
Debt instrument, purchase price | 1,440 | ||||||
Gain on repurchase of debt instrument | $ 560 | ||||||
Junior Subordinated Debentures [Member] | LIBOR Rate [Member] | |||||||
Long-term debt [Abstract] | |||||||
Term of variable rate | 3 months | ||||||
Basis spread on variable rate | 1.59% | 1.59% | |||||
Reference rate | 2.74% | ||||||
Junior Subordinated Debentures [Member] | Subordinated Debentures 9.0% [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate on junior subordinated debentures | 9.00% | ||||||
Junior Subordinated Debentures [Member] | Subordinated Debentures 8.25% [Member] | |||||||
Long-term debt [Abstract] | |||||||
Interest rate on junior subordinated debentures | 8.25% | ||||||
Unconsolidated Delaware Statutory Trust Subsidiary [Member] | |||||||
Long-term debt [Abstract] | |||||||
Issuance of capital securities in a private placement | $ 59,500 |
Repurchase Agreements (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Financial Instruments Pledged as Collateral [Abstract] | ||
Carrying value of investment securities available for sale pledged as collateral under repurchase agreements | $ 285,200 | $ 295,400 |
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 232,712 | 243,814 |
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 | 106,286 | 100,937 |
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 | 0 | 0 |
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 | 7,420 | 22,000 |
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 | 119,006 | 120,877 |
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 | 88,593 | 109,595 |
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 | 25,346 | 24,957 |
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 | 0 | 0 |
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 | 2,548 | 16,771 |
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 | 60,699 | 67,867 |
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 | 72,243 | 75,348 |
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 | 58,864 | 62,620 |
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 | 0 | 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 | 2,995 | 567 |
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 | 10,384 | 12,161 |
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 | 71,876 | 58,871 |
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 | 22,076 | 13,360 |
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 | 0 | 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 | 1,877 | 4,662 |
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 | $ 47,923 | $ 40,849 |
Advances from Federal Home Loan Bank (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | $ 436 | $ 845 |
Monthly Amortizing Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | 436 | $ 845 |
Within 1 Year | 22 | |
2 Years | 20 | |
3 Years | 21 | |
4 Years | 20 | |
5 Years | 20 | |
After 5 Years | 333 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank stock used as collateral for advances | 14,700 | |
FHLB maximum borrowing capacity | 555,600 | |
Federal home loan bank letters of credit used for public fund pledging | 243,000 | |
Federal home loan bank advances available | $ 312,200 | |
Federal Home Loan Bank Advances [Member] | Minimum [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank advances, interest rate | 0.00% | |
Federal Home Loan Bank Advances [Member] | Maximum [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank advances, interest rate | 2.00% | |
Federal Home Loan Bank Advances [Member] | Weighted Average [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank advances, interest rate | 0.07% | |
Federal Home Loan Bank Advances [Member] | Monthly Amortizing Advances [Member] | Weighted Average [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank advances, interest rate | 0.07% | 1.14% |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses [Abstract] | |||
Current income tax expense | $ 11,560 | $ 20,108 | $ 18,417 |
Deferred income tax expense (benefit) | (246) | (259) | 701 |
Effect of Tax Cuts & Jobs Act (benefit) | 0 | (2,831) | 0 |
Total income tax expense | $ 11,314 | $ 17,018 | $ 19,118 |
Federal corporate income tax rate | 21.00% | 35.00% | 35.00% |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | $ 14,814 | $ 23,979 | $ 23,262 |
Adjustments resulting from [Abstract] | |||
Tax-exempt interest | (673) | (1,259) | (1,289) |
Housing and new markets credits | (2,635) | (2,579) | (2,680) |
Dividends received deduction | (9) | (129) | (136) |
Bank owned life insurance | (599) | (492) | (518) |
ESOP dividend deduction | (188) | (319) | (313) |
Stock option exercises and restricted stock vesting | (39) | (170) | 0 |
Effect of Tax Cuts & Jobs Act | 0 | (2,831) | 0 |
Other, net | 643 | 818 | 792 |
Total income tax expense | $ 11,314 | $ 17,018 | $ 19,118 |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | 21.00% | 35.00% | 35.00% |
Adjustment resulting from [Abstract] | |||
Tax-exempt interest | (0.95%) | (1.84%) | (1.94%) |
Housing and new markets credits | (3.73%) | (3.76%) | (4.03%) |
Dividends received deduction | (0.01%) | (0.19%) | (0.20%) |
Bank owned life insurance | (0.85%) | (0.72%) | (0.78%) |
ESOP dividend deduction | (0.27%) | (0.47%) | (0.47%) |
Stock option exercises and restricted stock vesting | (0.06%) | (0.25%) | 0.00% |
Effect of Tax Cuts & Jobs Act | (0.00%) | (4.13%) | 0.00% |
Other, net | 0.91% | 1.20% | 1.18% |
Total | 16.04% | 24.84% | 28.76% |
Deferred tax assets [Abstract] | |||
Allowance for loan and lease losses | $ 7,541 | $ 7,592 | |
Interest on nonperforming loans | 531 | 560 | |
Accrued expenses | 1,093 | 442 | |
Allowance for other real estate owned | 1,435 | 1,322 | |
Limited partnership investments | 0 | 64 | |
Unrealized losses on AFS securities | 1,757 | 932 | |
Other | 164 | 204 | |
Total deferred tax assets | 12,521 | 11,116 | |
Deferred tax liabilities [Abstract] | |||
Depreciation and amortization | (12,210) | (12,270) | |
FHLB stock dividends | (1,704) | (2,076) | |
Loan fee income | (419) | (263) | |
Mortgage servicing rights | (757) | (732) | |
Capitalized lease obligations | 0 | (14) | |
Limited partnership investments | (257) | 0 | |
Other | (537) | (195) | |
Total deferred tax liabilities | (15,884) | (15,550) | |
Net deferred tax liability | $ (3,363) | $ (4,434) |
Employee Benefits (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018
USD ($)
Plan
h
shares
|
Dec. 31, 2017
USD ($)
shares
|
Dec. 31, 2016
USD ($)
shares
|
|
Employee Benefits [Abstract] | |||
Number of retirement savings plan | Plan | 2 | ||
401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum age of employees to participate in plan | 21 years | ||
Minimum requisite service period to participate in retirement plans | 1 year | ||
Minimum annual working hours required to participate in plan | h | 1,000 | ||
Percentage of employee contribution, minimum | 1.00% | ||
Percentage of employee contribution, maximum | 20.00% | ||
Employer matching contribution | 50.00% | ||
Maximum contribution on employees gross pay | 8.00% | ||
Contribution by employer under 401(K) plan | $ | $ 1.1 | $ 1.0 | $ 1.0 |
Number of allocated shares under 401 (K) plan (in shares) | shares | 416,360 | 406,021 | 482,426 |
Employee Stock Ownership Plan ("ESOP") [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Maximum annual contribution percentage under ESOP | 4.00% | ||
Contributions to ESOP by employer | $ | $ 1.6 | $ 1.6 | $ 1.5 |
Number of allocated shares under ESOP (in shares) | shares | 726,327 | 737,079 | 788,308 |
Employee Benefits, Stock-Based Compensation (Details) |
12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2018
USD ($)
Plan
$ / shares
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Number of active incentive stock option plan | Plan | 1 | |||||||||||||||
Number of inactive incentive stock option plan | Plan | 2 | |||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Shares available for future issuance (in shares) | 509,335 | |||||||||||||||
Black-Scholes option pricing model, weighted average assumptions [Abstract] | ||||||||||||||||
Stock-based compensation expense | $ | $ 710,000 | $ 636,000 | $ 458,000 | |||||||||||||
Dividends paid on restricted stock shares | $ | 51,000 | 53,000 | 37,000 | |||||||||||||
Unrecognized compensation cost, grant date fair value of vested shares, cash received from option exercises, and actual tax benefit realized [Abstract] | ||||||||||||||||
Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end | $ | 1,072,000 | 1,242,000 | 835,000 | |||||||||||||
Grant date fair value of shares vested for the year | $ | 645,000 | 564,000 | 1,490,000 | |||||||||||||
Cash received from option exercises under all share-based payment arrangements for the year | $ | 399,000 | 693,000 | 2,099,000 | |||||||||||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year | $ | $ 49,000 | $ 138,000 | $ 3,000 | |||||||||||||
Expected period for recognition of unrecognized compensation cost | 2 years 4 months 24 days | |||||||||||||||
Stock Options [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Number of shares to be issued upon exercise (in shares) | 33,000 | |||||||||||||||
Weighted average price (in dollars per share) | $ / shares | $ 32.47 | |||||||||||||||
Shares available for future issuance (in shares) | [1] | 509,335 | ||||||||||||||
Black-Scholes option pricing model, weighted average assumptions [Abstract] | ||||||||||||||||
Expected option life | 7 years 6 months | |||||||||||||||
Expected volatility | 34.34% | |||||||||||||||
Expected dividend yield | 3.70% | |||||||||||||||
Risk-free interest rate | 1.45% | |||||||||||||||
Restricted Stock [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Shares authorized (in shares) | 550,000 | |||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Number of shares to be issued upon exercise (in shares) | [2] | |||||||||||||||
Weighted average price (in dollars per share) | $ / shares | [3] | |||||||||||||||
Shares issued (in shares) | 44,988 | |||||||||||||||
Maximum number of shares to be grant to a participant (in shares) | 75,000 | |||||||||||||||
Shares available for future issuance (in shares) | [1] | |||||||||||||||
Performance Shares [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Number of shares to be issued upon exercise (in shares) | [4] | |||||||||||||||
Weighted average price (in dollars per share) | $ / shares | [3] | |||||||||||||||
Maximum amount of shares to be grant to a participant | $ | $ 1,000,000 | |||||||||||||||
Shares available for future issuance (in shares) | [1] | |||||||||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Number of shares to be issued upon exercise (in shares) | [5] | |||||||||||||||
Weighted average price (in dollars per share) | $ / shares | [3] | |||||||||||||||
Maximum number of shares to be grant to a participant (in shares) | 100,000 | |||||||||||||||
Shares available for future issuance (in shares) | [1] | |||||||||||||||
2015 Plan [Member] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||
Shares authorized (in shares) | 550,000 | |||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Shares available, beginning of period (in shares) | 519,140 | |||||||||||||||
Forfeitures (in shares) | 1,515 | |||||||||||||||
Shares available for future issuance (in shares) | 509,335 | 519,140 | ||||||||||||||
2015 Plan [Member] | Stock Options [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Issuances (in shares) | 0 | 0 | ||||||||||||||
Options, number of shares [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in shares) | 10,000 | 10,000 | 0 | |||||||||||||
Granted (in shares) | 0 | 0 | 10,000 | |||||||||||||
Exercised (in shares) | (10,000) | 0 | 0 | |||||||||||||
Forfeited/expired (in shares) | 0 | 0 | 0 | |||||||||||||
Outstanding, end of period (in shares) | 0 | 10,000 | 10,000 | |||||||||||||
Exercisable, end of period (in shares) | 0 | 0 | 0 | |||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 33.55 | $ 33.55 | $ 0 | |||||||||||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 33.55 | |||||||||||||
Exercised (in dollars per share) | $ / shares | 33.55 | 0 | 0 | |||||||||||||
Forfeited/expired (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | 0 | 33.55 | 33.55 | |||||||||||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 0 | $ 0 | $ 0 | |||||||||||||
Nonvested options, number of shares [Roll Forward] | ||||||||||||||||
Nonvested, beginning of period (in shares) | 10,000 | |||||||||||||||
Granted (in shares) | 0 | 0 | 10,000 | |||||||||||||
Vested (in shares) | (10,000) | |||||||||||||||
Forfeited (in shares) | 0 | |||||||||||||||
Nonvested, end of period (in shares) | 0 | 10,000 | ||||||||||||||
Nonvested options, weighted average grant date fair value [Abstract] | ||||||||||||||||
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 6.82 | |||||||||||||||
Granted (in dollars per share) | $ / shares | 0 | |||||||||||||||
Vested (in dollars per share) | $ / shares | 6.82 | |||||||||||||||
Forfeited (in dollars per share) | $ / shares | 0 | |||||||||||||||
Nonvested, end of period (in dollars per share) | $ / shares | $ 0 | $ 6.82 | ||||||||||||||
Options, additional disclosures [Abstract] | ||||||||||||||||
Intrinsic value of options exercised | $ | $ 140,000 | $ 0 | ||||||||||||||
Intrinsic value of options exercisable | $ | 0 | 0 | ||||||||||||||
Intrinsic value of outstanding options | $ | $ 0 | $ 136,000 | ||||||||||||||
2015 Plan [Member] | Restricted Stock [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Issuances (in shares) | (11,320) | |||||||||||||||
Restricted stock activity, grants [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in shares) | 33,085 | 17,496 | 0 | |||||||||||||
Granted (in shares) | [6] | 11,320 | 23,668 | 18,069 | ||||||||||||
Vested (in shares) | (8,761) | (5,751) | (442) | |||||||||||||
Forfeited (in shares) | (1,389) | (2,328) | (131) | |||||||||||||
Outstanding, end of period (in shares) | 34,255 | 33,085 | 17,496 | |||||||||||||
Restricted stock activity, weighted average fair value at grant [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 41.84 | $ 33.55 | $ 0 | |||||||||||||
Granted (in dollars per share) | $ / shares | [6] | 49.30 | 46.45 | 33.55 | ||||||||||||
Vested (in dollars per share) | $ / shares | 40.46 | 35.79 | 33.55 | |||||||||||||
Forfeited (in dollars per share) | $ / shares | 46.77 | 41.31 | 33.55 | |||||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | $ 44.46 | $ 41.84 | $ 33.55 | |||||||||||||
2006 Plan [Member] | Stock Options [Member] | ||||||||||||||||
Options, number of shares [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in shares) | 35,376 | 61,041 | 118,574 | |||||||||||||
Granted (in shares) | 0 | 0 | 0 | |||||||||||||
Exercised (in shares) | (2,475) | (25,665) | (57,423) | |||||||||||||
Forfeited/expired (in shares) | (330) | 0 | (110) | |||||||||||||
Outstanding, end of period (in shares) | 32,571 | 35,376 | 61,041 | |||||||||||||
Exercisable, end of period (in shares) | 2,571 | 5,376 | 30,629 | |||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 31.90 | $ 29.84 | $ 32.36 | |||||||||||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||||
Exercised (in dollars per share) | $ / shares | 25.52 | 27.01 | 35.02 | |||||||||||||
Forfeited/expired (in dollars per share) | $ / shares | 23.79 | 0 | 35.41 | |||||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | 32.47 | 31.90 | 29.84 | |||||||||||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 25.11 | $ 25.22 | $ 26.64 | |||||||||||||
Nonvested options, number of shares [Roll Forward] | ||||||||||||||||
Nonvested, beginning of period (in shares) | 30,000 | |||||||||||||||
Granted (in shares) | 0 | 0 | 0 | |||||||||||||
Vested (in shares) | 0 | |||||||||||||||
Forfeited (in shares) | 0 | |||||||||||||||
Nonvested, end of period (in shares) | 30,000 | 30,000 | ||||||||||||||
Nonvested options, weighted average grant date fair value [Abstract] | ||||||||||||||||
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 6.98 | |||||||||||||||
Granted (in dollars per share) | $ / shares | 0 | $ 6.60 | ||||||||||||||
Vested (in dollars per share) | $ / shares | 0 | |||||||||||||||
Forfeited (in dollars per share) | $ / shares | 0 | |||||||||||||||
Nonvested, end of period (in dollars per share) | $ / shares | $ 6.98 | $ 6.98 | ||||||||||||||
Options, additional disclosures [Abstract] | ||||||||||||||||
Weighted average remaining contractual term | 5 years | |||||||||||||||
Weighted average fair value of options granted | $ | $ 100,000 | |||||||||||||||
Intrinsic value of options exercised | $ | $ 56,000 | $ 537,000 | 139,000 | |||||||||||||
Intrinsic value of options exercisable | $ | 37,000 | 118,000 | 703,000 | |||||||||||||
Intrinsic value of outstanding options | $ | $ 233,000 | $ 538,000 | $ 1,206,000 | |||||||||||||
2006 Plan [Member] | Restricted Stock [Member] | ||||||||||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||||||||||
Shares issued (in shares) | 18,069 | |||||||||||||||
Restricted stock activity, grants [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in shares) | 5,426 | 11,989 | 64,735 | |||||||||||||
Granted (in shares) | 0 | 0 | 0 | |||||||||||||
Vested (in shares) | (3,236) | (6,214) | (52,521) | |||||||||||||
Forfeited (in shares) | (126) | (349) | (225) | |||||||||||||
Outstanding, end of period (in shares) | 2,064 | 5,426 | 11,989 | |||||||||||||
Restricted stock activity, weighted average fair value at grant [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 33.24 | $ 32.85 | $ 28.92 | |||||||||||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||||
Vested (in dollars per share) | $ / shares | 33.90 | 32.48 | 28.01 | |||||||||||||
Forfeited (in dollars per share) | $ / shares | 32.27 | 33.31 | 32.52 | |||||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | $ 32.27 | $ 33.24 | $ 32.85 | |||||||||||||
1998 Plan [Member] | Stock Options [Member] | ||||||||||||||||
Options, number of shares [Roll Forward] | ||||||||||||||||
Outstanding, beginning of period (in shares) | 0 | 2,980 | ||||||||||||||
Granted (in shares) | 0 | |||||||||||||||
Exercised (in shares) | (2,980) | |||||||||||||||
Forfeited/expired (in shares) | 0 | |||||||||||||||
Outstanding, end of period (in shares) | 0 | |||||||||||||||
Exercisable, end of period (in shares) | 0 | |||||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 0 | $ 29.49 | ||||||||||||||
Granted (in dollars per share) | $ / shares | 0 | |||||||||||||||
Exercised (in dollars per share) | $ / shares | 29.49 | |||||||||||||||
Forfeited/expired (in dollars per share) | $ / shares | 0 | |||||||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | 0 | |||||||||||||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 0 | |||||||||||||||
Nonvested options, number of shares [Roll Forward] | ||||||||||||||||
Nonvested, beginning of period (in shares) | 0 | 0 | ||||||||||||||
Granted (in shares) | 0 | |||||||||||||||
Nonvested, end of period (in shares) | 0 | 0 | 0 | |||||||||||||
Options, additional disclosures [Abstract] | ||||||||||||||||
Intrinsic value of options exercised | $ | $ 13,000 | |||||||||||||||
Intrinsic value of options exercisable | $ | 0 | |||||||||||||||
Intrinsic value of outstanding options | $ | $ 0 | |||||||||||||||
|
Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Payments [Abstract] | |||
2019 | $ 1,999 | ||
2020 | 1,710 | ||
2021 | 1,737 | ||
2022 | 1,760 | ||
2023 | 1,696 | ||
Thereafter | 13,031 | ||
Total | 21,933 | ||
Receipts [Abstract] | |||
2019 | 716 | ||
2020 | 539 | ||
2021 | 440 | ||
2022 | 348 | ||
2023 | 233 | ||
Thereafter | 91 | ||
Total | 2,367 | ||
Rental expense net of rental income under operating leases | $ 1,300 | $ 1,400 | $ 1,300 |
Fair Market Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | $ 593,746 | $ 561,403 |
Equity securities at fair value | 1,173 | 0 |
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 747 | 2,709 |
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Total gains (losses) | $ 830 | (361) |
Minimum [Member] | ||
Other real estate owned [Abstract] | ||
Typical frequency of periodic reviews | 12 months | |
Maximum [Member] | ||
Other real estate owned [Abstract] | ||
Typical frequency of periodic reviews | 18 months | |
Frequency of periodic reviews in general | 24 months | |
U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | $ 217,938 | 210,572 |
State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 124,488 | 145,015 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 250,819 | 205,309 |
Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 501 | 507 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 1,173 | |
Recurring [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 1,173 | |
Mortgage servicing rights | 3,607 | 3,484 |
Recurring [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 217,938 | 210,572 |
Recurring [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 124,488 | 145,015 |
Recurring [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 250,819 | 205,309 |
Recurring [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 501 | 507 |
Recurring [Member] | CRA Investment Funds [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 24,358 | |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 0 | |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 91,028 | 64,598 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | CRA Investment Funds [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 24,358 | |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 0 | |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 126,910 | 145,974 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 124,488 | 145,015 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 250,819 | 205,309 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 501 | 507 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | CRA Investment Funds [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 1,173 | |
Mortgage servicing rights | 3,607 | 3,484 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | CRA Investment Funds [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Available-for-sale securities, debt securities | 0 | |
Recurring [Member] | Equity Securities at Fair Value [Member] | ||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Beginning balance | 0 | 0 |
Total unrealized gains Included in net income | 1,173 | 0 |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 1,173 | 0 |
Total gains 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 | 1,173 | 0 |
Recurring [Member] | Mortgage Servicing Rights [Member] | ||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Beginning balance | 3,484 | 3,433 |
Total unrealized gains Included in net income | 73 | 91 |
Issues | 466 | 412 |
Settlements | (416) | (452) |
Ending balance | 3,607 | 3,484 |
Total gains 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 | 73 | 91 |
Nonrecurring [Member] | ||
Impaired loan (collateral dependent) [Abstract] | ||
Impaired loans, fair value adjustments | 300 | 1,000 |
Other real estate owned [Abstract] | ||
Other real estate owned, fair value adjustment | 1,800 | 2,500 |
Nonrecurring [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 747 | 2,709 |
Other real estate owned | 6,500 | 18,951 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 747 | 2,709 |
Other real estate owned | $ 6,500 | $ 18,951 |
Fair Market Value of Financial Assets and Liabilities, Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value | $ 1,173 | $ 0 |
Mortgage servicing rights | 3,607 | 3,484 |
Impaired loans (collateral dependent) | 747 | 2,709 |
Other real estate owned | $ 6,500 | $ 18,951 |
Conversion Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 1.6298 | |
Dividend Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.4074 | |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.080 | |
Mortgage servicing rights, measurement input | 0.100 | 0.100 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.120 | |
Mortgage servicing rights, measurement input | 0.115 | 0.115 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.100 | |
Mortgage servicing rights, measurement input | 0.101 | 0.101 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | Dec. 31, 2024 | |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | Dec. 31, 2022 | |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | Dec. 31, 2026 | |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.070 | 0.070 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.281 | 0.450 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.095 | 0.100 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.000 | 0.000 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 1.000 | 1.000 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.026 | 0.030 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.000 | 0.019 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.951 | 0.898 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.415 | 0.385 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.060 | 0.060 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.476 | 0.586 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.149 | 0.150 |
Fair Market 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 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Financial assets [Abstract] | ||||
Securities available-for-sale | $ 593,746 | $ 585,761 | ||
Securities held-to-maturity | 649 | 660 | ||
Equity securities at fair value | 1,173 | 0 | ||
Mortgage servicing rights | 3,607 | 3,484 | $ 3,433 | $ 3,236 |
Carrying Amount [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 141,450 | 175,274 | ||
Certificates of deposits in other banks | 3,920 | 9,800 | ||
Securities available-for-sale | 593,746 | 585,761 | ||
Securities held-to-maturity | 649 | 659 | ||
Equity securities at fair value | 1,173 | |||
Loans held for sale | 2,461 | 1,033 | ||
Loans, net | 3,172,730 | 3,086,789 | ||
Federal Home Loan Bank stock | 14,713 | 17,927 | ||
Federal Reserve Bank stock | 4,887 | 4,887 | ||
Accrued interest receivable | 14,432 | 13,338 | ||
Mortgage servicing rights | 3,607 | 3,484 | ||
Financial liabilities [Abstract] | ||||
Deposits | 3,305,950 | 3,263,863 | ||
Repurchase agreements | 232,712 | 243,814 | ||
Federal funds purchased | 1,180 | 7,312 | ||
Advances from Federal Home Loan Bank | 436 | 845 | ||
Long-term debt | 59,341 | 59,341 | ||
Accrued interest payable | 2,902 | 2,228 | ||
Unrecognized financial instruments [Abstract] | ||||
Letters of credit | 0 | 0 | ||
Commitments to extend credit | 0 | 0 | ||
Forward sale commitments | 0 | 0 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 141,450 | 175,274 | ||
Certificates of deposits in other banks | 0 | 0 | ||
Securities available-for-sale | 91,028 | 88,956 | ||
Securities held-to-maturity | 0 | 0 | ||
Equity securities at fair value | 0 | |||
Loans held for sale | 2,518 | 1,060 | ||
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 | 803,316 | 790,930 | ||
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 | ||
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposits in other banks | 3,914 | 9,772 | ||
Securities available-for-sale | 502,718 | 496,805 | ||
Securities held-to-maturity | 649 | 660 | ||
Equity securities at fair value | 0 | |||
Loans held for sale | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Federal Home Loan Bank stock | 14,713 | 17,927 | ||
Federal Reserve Bank stock | 4,887 | 4,887 | ||
Accrued interest receivable | 14,432 | 13,338 | ||
Mortgage servicing rights | 0 | 0 | ||
Financial liabilities [Abstract] | ||||
Deposits | 2,513,084 | 2,319,278 | ||
Repurchase agreements | 0 | 0 | ||
Federal funds purchased | 1,180 | 7,312 | ||
Advances from Federal Home Loan Bank | 468 | 841 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | 2,902 | 2,228 | ||
Unrecognized financial instruments [Abstract] | ||||
Letters of credit | 0 | 0 | ||
Commitments to extend credit | 0 | 0 | ||
Forward sale commitments | 0 | 0 | ||
Fair Value [Member] | 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 | ||
Equity securities at fair value | 1,173 | |||
Loans held for sale | 0 | 0 | ||
Loans, net | 3,175,908 | 3,092,437 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Federal Reserve Bank stock | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Mortgage servicing rights | 3,607 | 3,484 | ||
Financial liabilities [Abstract] | ||||
Deposits | 0 | 0 | ||
Repurchase agreements | 232,796 | 243,932 | ||
Federal funds purchased | 0 | 0 | ||
Advances from Federal Home Loan Bank | 0 | 0 | ||
Long-term debt | 44,166 | 44,166 | ||
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 |
Off-Balance Sheet Transactions and Guarantees (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | $ 539,923 | $ 546,039 |
Mortgage loans held for sale | 2,461 | 1,033 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 29,410 | 29,308 |
Credit loss reserve | $ 7 | |
Percentage of secured standby letters of credit | 65.00% | |
Standby letters of credit secured by cash | $ 16,000 | |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 510,513 | 516,731 |
Credit loss reserve | 248 | |
Fixed rate loan commitments amount | $ 31,700 | |
Period of commitment to sell the loans at specified prices | 60 days | |
Total mortgage loans in process | $ 2,800 | 2,500 |
Mortgage loans held for sale | $ 2,461 | $ 1,033 |
Commitments to Extend Credit [Member] | Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 3.75% | |
Commitments to Extend Credit [Member] | Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 5.50% | |
Fixed rate loan commitments term | 1 year |
Concentrations of Credit Risk (Details) - Credit Concentration Risk [Member] - Tier 1 Capital Plus Allowance for Loan and Lease Losses [Member] |
12 Months Ended | |
---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
|
Hotel/Motel Industry Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 41.00% | 47.00% |
Lessors of Non-residential Buildings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 39.00% | 45.00% |
Lessors of Residential Buildings and Dwellings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 39.00% | 39.00% |
Regulatory Matters (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Tier I capital (to average assets), Amount [Abstract] | ||
Actual Amount | $ 562,771 | $ 525,707 |
For Capital Adequacy Purposes | $ 166,623 | $ 163,136 |
Tier I capital (to average assets), Ratio [Abstract] | ||
Actual Ratio | 13.51% | 12.89% |
For Capital Adequacy Purposes | 4.00% | 4.00% |
Common equity Tier 1 capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 505,271 | $ 468,207 |
For Capital Adequacy Purposes | $ 139,749 | $ 137,438 |
Common equity Tier 1 capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 16.27% | 15.33% |
For Capital Adequacy Purposes | 4.50% | 4.50% |
Tier I capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 562,771 | $ 525,707 |
For Capital Adequacy Purposes | $ 186,348 | $ 183,173 |
Tier I capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 18.12% | 17.22% |
For Capital Adequacy Purposes | 6.00% | 6.00% |
Total capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 598,934 | $ 562,114 |
For Capital Adequacy Purposes | $ 248,391 | $ 244,265 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual Ratio | 19.29% | 18.41% |
For Capital Adequacy Purposes | 8.00% | 8.00% |
Community Trust Bank, Inc [Member] | ||
Regulatory Matter [Abstract] | ||
Maximum dividend without Approval | $ 63,400 | |
Tier I capital (to average assets), Amount [Abstract] | ||
Actual Amount | 536,992 | $ 501,537 |
For Capital Adequacy Purposes | 165,994 | 162,441 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 207,493 | $ 203,051 |
Tier I capital (to average assets), Ratio [Abstract] | ||
Actual Ratio | 12.94% | 12.35% |
For Capital Adequacy Purposes | 4.00% | 4.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 5.00% | 5.00% |
Common equity Tier 1 capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 536,992 | $ 501,537 |
For Capital Adequacy Purposes | 139,438 | 137,115 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 201,411 | $ 198,055 |
Common equity Tier 1 capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 17.33% | 16.46% |
For Capital Adequacy Purposes | 4.50% | 4.50% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 6.50% | 6.50% |
Tier I capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 536,992 | $ 501,537 |
For Capital Adequacy Purposes | 185,918 | 182,820 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 247,890 | $ 243,760 |
Tier I capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 17.33% | 16.46% |
For Capital Adequacy Purposes | 6.00% | 6.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 8.00% | 8.00% |
Total capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 573,155 | $ 537,944 |
For Capital Adequacy Purposes | 247,851 | 243,827 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 309,814 | $ 304,784 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual Ratio | 18.50% | 17.65% |
For Capital Adequacy Purposes | 8.00% | 8.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 10.00% | 10.00% |
Parent Company Financial Statements, Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2018 |
Dec. 31, 2017 |
---|---|---|
Assets [Abstract] | ||
Cash on deposit | $ 64,632 | $ 47,528 |
Goodwill | 65,490 | 65,490 |
Premises and equipment, net | 45,291 | 46,318 |
Other assets | 57,150 | 41,459 |
Total assets | 4,201,616 | 4,136,231 |
Liabilities and shareholders' equity [Abstract] | ||
Long-term debt | 59,341 | 59,341 |
Other liabilities | 34,484 | 25,923 |
Total liabilities | 3,637,466 | 3,605,532 |
Shareholders' equity | 564,150 | 530,699 |
Total liabilities and shareholders' equity | 4,201,616 | 4,136,231 |
Parent Company [Member] | ||
Assets [Abstract] | ||
Cash on deposit | 1,939 | 1,500 |
Investment in and advances to subsidiaries | 620,701 | 587,575 |
Goodwill | 4,973 | 4,973 |
Premises and equipment, net | 219 | 250 |
Other assets | 238 | 200 |
Total assets | 628,070 | 594,498 |
Liabilities and shareholders' equity [Abstract] | ||
Long-term debt | 61,341 | 61,341 |
Other liabilities | 2,579 | 2,458 |
Total liabilities | 63,920 | 63,799 |
Shareholders' equity | 564,150 | 530,699 |
Total liabilities and shareholders' equity | $ 628,070 | $ 594,498 |
Parent Company Financial Statements, Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Expenses [Abstract] | |||
Interest expense | $ 29,295 | $ 18,294 | $ 13,555 |
Other expenses | 15,558 | 11,901 | 12,077 |
Income before income taxes and equity in undistributed income of subsidiaries | 70,542 | 68,511 | 66,464 |
Income tax benefit | 11,314 | 17,018 | 19,118 |
Net income | 59,228 | 51,493 | 47,346 |
Unrealized holding losses on securities available-for-sale [Abstract] | |||
Unrealized holding losses arising during the period | (5,393) | (820) | (4,578) |
Less: Reclassification adjustments for realized gains included in net income | (821) | 73 | 522 |
Other comprehensive loss, net of tax | (3,612) | (581) | (3,315) |
Comprehensive income | 55,616 | 50,912 | 44,031 |
Parent Company [Member] | |||
Income [Abstract] | |||
Dividends from subsidiary banks | 26,750 | 24,661 | 20,708 |
Other income | 489 | 904 | 459 |
Total income | 27,239 | 25,565 | 21,167 |
Expenses [Abstract] | |||
Interest expense | 2,318 | 1,723 | 1,417 |
Depreciation expense | 135 | 116 | 107 |
Other expenses | 3,156 | 2,858 | 2,256 |
Total expenses | 5,609 | 4,697 | 3,780 |
Income before income taxes and equity in undistributed income of subsidiaries | 21,630 | 20,868 | 17,387 |
Income tax benefit | (1,219) | (1,445) | (1,373) |
Income before equity in undistributed income of subsidiaries | 22,849 | 22,313 | 18,760 |
Equity in undistributed income of subsidiaries | 36,379 | 29,180 | 28,586 |
Net income | 59,228 | 51,493 | 47,346 |
Unrealized holding losses on securities available-for-sale [Abstract] | |||
Unrealized holding losses arising during the period | (5,393) | (820) | (4,578) |
Less: Reclassification adjustments for realized gains included in net income | (821) | 73 | 522 |
Tax benefit | (960) | (312) | (1,785) |
Other comprehensive loss, net of tax | (3,612) | (581) | (3,315) |
Comprehensive income | $ 55,616 | $ 50,912 | $ 44,031 |
Parent Company Financial Statements, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Cash flows from operating activities [Abstract] | |||
Net income | $ 59,228 | $ 51,493 | $ 47,346 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 3,786 | 4,007 | 3,904 |
Stock-based compensation | 710 | 636 | 458 |
Excess tax benefits of stock-based compensation | 0 | 0 | 100 |
Gain on debt repurchase | 0 | (560) | 0 |
Changes in [Abstract] | |||
Other assets | (15,788) | (4,412) | (3,205) |
Other liabilities | 8,986 | 1,631 | 2,874 |
Net cash provided by operating activities | 65,487 | 62,351 | 61,425 |
Cash flows from investing activities [Abstract] | |||
Purchase of premises and equipment | (2,832) | (2,400) | (3,498) |
Net cash used in investing activities | (100,590) | (186,586) | (86,107) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,230 | 1,513 | 2,985 |
Repurchase of common stock | 0 | 0 | (382) |
Excess tax benefits of stock-based compensation | 0 | 0 | (100) |
Dividends paid | (24,395) | (22,981) | (22,190) |
Net cash provided by (used in) financing activities | 1,279 | 154,793 | (18,213) |
Net increase (decrease) in cash and cash equivalents | (33,824) | 30,558 | (42,895) |
Cash and cash equivalents at beginning of year | 175,274 | 144,716 | 187,611 |
Cash and cash equivalents at end of year | 141,450 | 175,274 | 144,716 |
Parent Company [Member] | |||
Cash flows from operating activities [Abstract] | |||
Net income | 59,228 | 51,493 | 47,346 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 135 | 116 | 107 |
Equity in undistributed earnings of subsidiaries | (36,379) | (29,180) | (28,586) |
Stock-based compensation | 710 | 636 | 458 |
Excess tax benefits of stock-based compensation | 0 | 0 | 100 |
Gain on debt repurchase | 0 | (560) | 0 |
Changes in [Abstract] | |||
Other assets | (62) | 145 | 519 |
Other liabilities | 53 | 412 | (90) |
Net cash provided by operating activities | 23,685 | 23,062 | 19,854 |
Cash flows from investing activities [Abstract] | |||
Payment for investment in subsidiary | 0 | (1,440) | 0 |
Purchase of premises and equipment | (81) | (179) | (104) |
Net cash used in investing activities | (81) | (1,619) | (104) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,230 | 1,513 | 2,985 |
Repurchase of common stock | 0 | 0 | (382) |
Excess tax benefits of stock-based compensation | 0 | 0 | (100) |
Dividends paid | (24,395) | (22,981) | (22,190) |
Net cash provided by (used in) financing activities | (23,165) | (21,468) | (19,687) |
Net increase (decrease) in cash and cash equivalents | 439 | (25) | 63 |
Cash and cash equivalents at beginning of year | 1,500 | 1,525 | 1,462 |
Cash and cash equivalents at end of year | $ 1,939 | $ 1,500 | $ 1,525 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Numerator [Abstract] | |||
Net income | $ 59,228 | $ 51,493 | $ 47,346 |
Basic earnings per share [Abstract] | |||
Weighted average shares (in shares) | 17,687,000 | 17,631,000 | 17,548,000 |
Diluted earnings per share [Abstract] | |||
Dilutive effect of equity grants (in shares) | 16,000 | 22,000 | 18,000 |
Adjusted weighted average shares (in shares) | 17,703,000 | 17,653,000 | 17,566,000 |
Earnings per share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 3.35 | $ 2.92 | $ 2.70 |
Diluted earnings per share (in dollars per share) | $ 3.35 | $ 2.92 | $ 2.70 |
Options [Member] | |||
Earnings Per Share [Abstract] | |||
Options excluded from diluted calculations (in shares) | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | $ (85) | $ 73 | $ 522 |
Tax expense (benefit) | 11,314 | 17,018 | 19,118 |
Net income | 59,228 | 51,493 | 47,346 |
Unrealized Gains (Losses) on AFS Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | (821) | 73 | 522 |
Tax expense (benefit) | (172) | 26 | 183 |
Net income | $ (649) | $ 47 | $ 339 |
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