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Loans (Tables)
 6 Months Ended
Jun. 30, 2019
Loans [Abstract]  
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:

(in thousands)
  
June 30
2019
    
December 31
2018
  
Commercial construction
  
$
65,771
    
$
82,715
  
Commercial secured by real estate
    
1,192,768
      
1,183,093
  
Equipment lease financing
    
962
      
1,740
  
Commercial other
    
390,048
      
377,198
  
Real estate construction
    
57,017
      
57,160
  
Real estate mortgage
    
722,573
      
722,417
  
Home equity
    
109,831
      
106,299
  
Consumer direct
    
145,149
      
144,289
  
Consumer indirect
    
508,088
      
533,727
  
Total loans
  
$
3,192,207
    
$
3,208,638
  

Nonaccrual Loans Segregated by Class of Loans Nonaccrual loans segregated by class of loans were as follows:

 (in thousands)
  
June 30
2019
    
December 31
2018
  
Commercial:
            
Commercial construction
  
$
510
    
$
639
  
Commercial secured by real estate
    
5,655
      
4,537
  
Commercial other
    
1,001
      
797
  
                 
Residential:
                
Real estate construction
    
280
      
22
  
Real estate mortgage
    
4,776
      
5,395
  
Home equity
    
680
      
477
  
Total nonaccrual loans
  
$
12,902
    
$
11,867
  

Bank's Loan Portfolio Aging Analysis, Segregated by Class The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of June 30, 2019 and December 31, 2018:


 
June 30, 2019
  
(in thousands)
  
30-59 Days
Past Due
    
60-89 Days
Past Due
    
90+ Days
Past Due
    
Total Past
Due
    
Current
    
Total Loans
    
90+ and
Accruing*
  
Commercial:
                                          
Commercial construction
  
$
56
    
$
30
    
$
546
    
$
632
    
$
65,139
    
$
65,771
    
$
36
  
Commercial secured by real estate
    
4,593
      
10,933
      
10,720
      
26,246
      
1,166,522
      
1,192,768
      
5,816
  
Equipment lease financing
    
0
      
0
      
0
      
0
      
962
      
962
      
0
  
Commercial other
    
988
      
2,742
      
822
      
4,552
      
385,496
      
390,048
      
174
  
Residential:
                                                        
Real estate construction
    
290
      
21
      
285
      
596
      
56,421
      
57,017
      
5
  
Real estate mortgage
    
1,104
      
5,170
      
7,401
      
13,675
      
708,898
      
722,573
      
4,529
  
Home equity
    
709
      
325
      
575
      
1,609
      
108,222
      
109,831
      
258
  
Consumer:
                                                        
Consumer direct
    
926
      
178
      
40
      
1,144
      
144,005
      
145,149
      
40
  
Consumer indirect
    
3,514
      
850
      
218
      
4,582
      
503,506
      
508,088
      
218
  
Total
  
$
12,180
    
$
20,249
    
$
20,607
    
$
53,036
    
$
3,139,171
    
$
3,192,207
    
$
11,076
  


 
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
  

*90+ and Accruing are also included in 90+ Days Past Due column.
Credit Risk Profile of the Bank's Commercial Loan Portfolio Based on Rating Category and Payment Activity, Segregated by Class of Loans The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of June 30, 2019 and December 31, 2018:

 (in thousands)
  
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Leases
    
Commercial
Other
    
Total
  
June 30, 2019
                              
Pass
  
$
58,755
    
$
1,048,466
    
$
962
    
$
354,284
    
$
1,462,467
  
Watch
    
2,878
      
64,145
      
0
      
13,995
      
81,018
  
OAEM
    
835
      
19,764
      
0
      
5,295
      
25,894
  
Substandard
    
3,303
      
60,305
      
0
      
16,406
      
80,014
  
Doubtful
    
0
      
88
      
0
      
68
      
156
  
Total
  
$
65,771
    
$
1,192,768
    
$
962
    
$
390,048
    
$
1,649,549
  
                                         
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
  

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  June 30, 2019 and December 31, 2018:

(in thousands)
  
Real Estate
Construction
    
Real Estate
Mortgage
    
Home Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
June 30, 2019
                                    
Performing
  
$
56,732
    
$
713,268
    
$
108,893
    
$
145,109
    
$
507,870
    
$
1,531,872
  
Nonperforming (1)
    
285
      
9,305
      
938
      
40
      
218
      
10,786
  
Total
  
$
57,017
    
$
722,573
    
$
109,831
    
$
145,149
    
$
508,088
    
$
1,542,658
  
                                                 
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
  

(1)  A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual.
Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended June 30, 2019, December 31, 2018, and June 30, 2018:


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


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


 
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
  
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
  
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
  


 
June 30, 2018
  
(in thousands)
  
Recorded
Balance
    
Unpaid
Contractual
Principal
Balance
    
Specific
Allowance
  
Loans without a specific valuation allowance:
                  
Commercial construction
  
$
4,299
    
$
4,299
    
$
0
  
Commercial secured by real estate
    
29,718
      
31,653
      
0
  
Commercial other
    
8,606
      
10,250
      
0
  
Real estate mortgage
    
1,621
      
1,621
      
0
  
                         
Loans with a specific valuation allowance:
                        
Commercial secured by real estate
    
2,156
      
3,277
      
807
  
Commercial other
    
343
      
343
      
100
  
                         
Totals:
                        
Commercial construction
    
4,299
      
4,299
      
0
  
Commercial secured by real estate
    
31,874
      
34,930
      
807
  
Commercial other
    
8,949
      
10,593
      
100
  
Real estate mortgage
    
1,621
      
1,621
      
0
  
Total
  
$
46,743
    
$
51,443
    
$
907
  


 
Three Months Ended
June 30, 2018
    
Six Months Ended
June 30, 2018
  
(in thousands)
  
Average
Investment
in Impaired
Loans
    
*Interest
Income
Recognized
    
Average
Investment
in Impaired
Loans
    
*Interest
Income
Recognized
  
Loans without a specific valuation allowance:
                        
Commercial construction
  
$
4,353
    
$
69
    
$
4,261
    
$
106
  
Commercial secured by real estate
    
29,982
      
372
      
30,774
      
724
  
Commercial other
    
8,722
      
128
      
9,027
      
280
  
Real estate construction
    
0
      
0
      
159
      
0
  
Real estate mortgage
    
1,621
      
11
      
1,453
      
11
  
                                 
Loans with a specific valuation allowance:
                                
Commercial secured by real estate
    
2,199
      
1
      
2,166
      
1
  
Commercial other
    
321
      
4
      
161
      
4
  
                                 
Totals:
                                
Commercial construction
    
4,353
      
69
      
4,261
      
106
  
Commercial secured by real estate
    
32,181
      
373
      
32,940
      
725
  
Commercial other
    
9,043
      
132
      
9,188
      
284
  
Real estate construction
    
0
      
0
      
159
      
0
  
Real estate mortgage
    
1,621
      
11
      
1,453
      
11
  
Total
  
$
47,198
    
$
585
    
$
48,001
    
$
1,126
  

*Cash basis interest is substantially the same as interest income recognized.
Troubled Debt Restructuring During 2019, certain loans were modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances.  Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and six months ended June 30, 2019 and 2018 and the year ended December 31, 2018:


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


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


 
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
  


 
Three Months Ended
June 30, 2018
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial construction
    
2
    
$
411
    
$
0
    
$
0
    
$
411
  
Commercial secured by real estate
    
8
      
1,773
      
0
      
0
      
1,773
  
Commercial other
    
3
      
283
      
0
      
0
      
283
  
Total troubled debt restructurings
    
13
    
$
2,467
    
$
0
    
$
0
    
$
2,467
  


 
Six Months Ended
June 30, 2018
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial construction
    
4
    
$
443
    
$
0
    
$
15
    
$
458
  
Commercial secured by real estate
    
17
      
2,559
      
0
      
983
      
3,542
  
Commercial other
    
8
      
465
      
0
      
0
      
465
  
Total troubled debt restructurings
    
29
    
$
3,467
    
$
0
    
$
998
    
$
4,465
  

Defaulted Restructured Loans Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual.  Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment.  The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.  Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted.  CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.

 (in thousands)
  
Three Months Ended
June 30, 2019
    
Three Months Ended
June 30, 2018
  
 
  
Number of
Loans
    
Recorded
Balance
    
Number of
Loans
    
Recorded
Balance
  
Commercial:
                        
Commercial secured by real estate
    
0
    
$
0
      
1
    
$
17
  
Commercial other
    
0
      
0
      
1
      
25
  
Total defaulted restructured loans
    
0
    
$
0
      
2
    
$
42
  

 (in thousands)
  
Six Months Ended
June 30, 2019
    
Six Months Ended
June 30, 2018
  
 
  
Number of
Loans
    
Recorded
Balance
    
Number of
Loans
    
Recorded
Balance
  
Commercial:
                        
Commercial secured by real estate
    
0
    
$
0
      
1
    
$
17
  
Commercial other
    
0
      
0
      
1
      
25
  
Total defaulted restructured loans
    
0
    
$
0
      
2
    
$
42