ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
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(State or other jurisdiction of incorporation or organization)
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(IRS Employer Identification No.)
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(Address of principal executive offices) | (Zip code) |
( |
(Registrant’s telephone number) |
Securities registered pursuant to Section 12(b) of the Act: |
(Title of class)
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(Trading symbol)
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(Name of exchange on which registered)
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Yes ☐
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Yes ☐
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No ☐
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No ☐
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Large Accelerated Filer ☐
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Non-accelerated Filer ☐
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Smaller Reporting Company
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Emerging Growth Company
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Yes
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No ☐
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Yes
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No ☑
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1 |
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1 |
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1 |
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5 |
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15 |
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15 |
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16 |
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16 |
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17 |
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18 |
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18 |
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19 |
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20 |
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38 |
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39 |
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43 |
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98 |
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101 |
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101 |
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103 |
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103 |
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103 |
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103 |
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103 |
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104 |
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104 |
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105 |
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105 |
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107 |
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108 |
Item 1. |
Business
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Item 1A. |
Risk Factors
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• |
Clients may not want, need, or qualify for our products and services;
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• |
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.
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• |
The rate of inflation;
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• |
The rate of economic growth;
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• |
Employment levels;
|
• |
Monetary policies; and
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• |
Instability in domestic and foreign financial markets.
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• |
The length and severity of downturns in the local economies in which we operate or the national economy;
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• |
The length and severity of downturns in one or more of the business sectors in which our customers operate, particularly the automobile, hotel/motel, and residential development industries; or
|
• |
A rapid increase in interest rates.
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• |
Commercial Real Estate Residential. Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.
As of December 31, 2022, commercial real estate residential loans comprised approximately 10% of our total loan portfolio.
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• |
Commercial Real Estate Nonresidential. Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service.
As of December 31, 2022, commercial real estate nonresidential loans comprised approximately 21% of our total loan portfolio.
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• |
Hotel/Motel. The hotel and motel industry is highly susceptible to changes in the domestic and global economic environments, which has caused the industry to experience substantial volatility due
to the recent global pandemic. As of December 31, 2022, hotel/motel loans comprised approximately 9% of our total loan portfolio.
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• |
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, 2022, other commercial loans comprised approximately 11% of our total loan portfolio.
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• |
Safety and soundness guidelines;
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• |
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.
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• |
Actual or anticipated variations in earnings;
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• |
Changes in analysts’ recommendations or projections;
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• |
CTBI’s announcements of developments related to our businesses;
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• |
Operating and stock performance of other companies deemed to be peers;
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• |
New technology used or services offered by traditional and non-traditional competitors;
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• |
News reports of trends, concerns, and other issues related to the financial services industry; and
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• |
Additional governmental policies and enforcement of current laws.
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Item 1B. |
Unresolved Staff Comments
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Item 2. |
Properties
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Location
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Owned
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Leased
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Total
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Banking locations:
|
||||
Community Trust Bank, Inc.
|
||||
*
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Pikeville Market (lease land at 3 owned locations)
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9
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1
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10
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10 locations in Pike County, Kentucky
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||||
Floyd/Knott/Johnson Market (lease land at 1 owned location)
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3
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1
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4
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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)
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2
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0
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2
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1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia
|
||||
Whitesburg Market (lease land at 1 owned location)
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4
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1
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5
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5 locations in Letcher County, Kentucky
|
||||
Hazard Market (lease land at 2 owned locations)
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3
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0
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3
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3 locations in Perry County, Kentucky
|
||||
*
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Lexington Market (lease land at 3 owned locations)
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4
|
2
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6
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6 locations in Fayette County, Kentucky
|
||||
Winchester Market
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2
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0
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2
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2 locations in Clark County, Kentucky
|
||||
Richmond Market (lease land at 1 owned location)
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3
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0
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3
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3 locations in Madison County, Kentucky
|
||||
Mt. Sterling Market
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2
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0
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2
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2 locations in Montgomery County, Kentucky
|
||||
Versailles Market (lease land at 3 owned locations)
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3
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2
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5
|
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1 location in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 2 locations in Scott County, Kentucky
|
||||
*
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Danville Market (lease land at 1 owned location)
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3
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0
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3
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2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky
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*
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Ashland Market (lease land at 1 owned location)
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5
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0
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5
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4 locations in Boyd County, Kentucky and 1 location in Greenup County, Kentucky
|
||||
Flemingsburg Market
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3
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0
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3
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3 locations in Fleming County, Kentucky
|
||||
Advantage Valley Market
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3
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1
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4
|
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2 locations in Lincoln County, West Virginia, 1 location in Wayne County, West Virginia, and 1 location in Cabell County, West Virginia
|
||||
Summersville Market
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1
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0
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1
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1 location in Nicholas County, West Virginia
|
||||
Middlesboro Market (lease land at 1 owned location)
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3
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0
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3
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3 locations in Bell County, Kentucky
|
||||
Williamsburg Market
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5
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0
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5
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2 locations in Whitley County, Kentucky and 3 locations in Laurel County, Kentucky
|
||||
Campbellsville Market (lease land at 2 owned locations)
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8
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0
|
8
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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
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2
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0
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2
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2 locations in Rockcastle County, Kentucky
|
||||
*
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LaFollette Market
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3
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0
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3
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2 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee
|
||||
Total banking locations
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71
|
8
|
79
|
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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
|
72
|
8
|
80
|
Item 3. |
Legal Proceedings
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Item 4. |
Mine Safety Disclosures
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Name and Age (1)
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Positions and Offices
Currently Held
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Date First Became
Executive Officer
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Principal Occupation
|
|
Mark A. Gooch; 64
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Vice Chairman, President, and Chief Executive Officer
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1997
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(2)
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Vice Chairman, President, and CEO of Community Trust Bancorp, Inc.
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Kevin J. Stumbo; 62
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Executive Vice President, Chief Financial Officer, and Treasurer
|
2002
|
Executive Vice President/ Chief Financial Officer of Community Trust Bank, Inc.
|
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Richard W. Newsom; 68
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Executive Vice President
|
2002
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(3)
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Executive Vice President/ President of Community Trust Bank, Inc.
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Andy D. Waters; 57
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Executive Vice President
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2011
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President and CEO of Community Trust and Investment Company
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C. Wayne Hancock; 48
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Executive Vice President and Secretary
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2014
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(4)
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Executive Vice President/ Senior Staff Attorney
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James B. Draughn; 63
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Executive Vice President
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2001
|
Executive Vice President/Operations of Community Trust Bank, Inc.
|
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James J. Gartner; 81
|
Executive Vice President
|
2002
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Executive Vice President/ Chief Credit Officer of Community Trust Bank, Inc.
|
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Steven E. Jameson; 66
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Executive Vice President
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2004
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(5)
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Executive Vice President/ Chief Internal Audit & Risk Officer
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Ricky D. Sparkman; 60
|
Executive Vice President
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2002
|
Executive Vice President/ South Central Region President of Community Trust Bank, Inc.
|
|
D. Andrew Jones; 60
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Executive Vice President
|
2010
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Executive Vice President/ Northeastern Region President of Community Trust Bank, Inc.
|
|
David Tackett; 57
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Executive Vice President
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2022
|
(6)
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Executive Vice President/ Eastern Region President of Community Trust Bank, Inc.
|
Billie J. Dollins; 62
|
Executive Vice President
|
2023
|
(7)
|
Executive Vice President/ Central Kentucky Region President of Community Trust Bank, Inc.
|
(1) |
The ages listed for CTBI’s executive officers are as of February 28, 2023.
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(2) |
Mr. Gooch became President of Community Trust Bancorp, Inc. on July 27, 2021 and assumed the additional positions of Vice Chairman and Chief Executive Officer of CTBI effective February 7, 2022, upon the retirement of Jean R. Hale. Mr.
Gooch retained his previous position as Chief Executive Officer of Community Trust Bank, Inc. and assumed the additional roles of Chairman of Community Trust Bank, Inc. and Chairman of Community Trust and Investment Company also effective
with Ms. Hale’s retirement on February 7, 2022.
|
(3) |
Mr. Newsom became President of Community Trust Bank, Inc. on February 7, 2022. He previously served as President of the Eastern Region of Community Trust Bank, Inc.
|
(4) |
Mr. Hancock became Secretary of Community Trust Bancorp, Inc. on February 7, 2022.
|
(5) |
Mr. Jameson is a non-voting member of the Executive Committee.
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(6) |
Mr. Tackett became Executive Vice President of Community Trust Bancorp, Inc. and President of the Eastern Region of Community Trust Bank, Inc. on February 7, 2022. He previously held the position of President of the Floyd, Knott, and
Johnson Market of Community Trust Bank, Inc.
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(7) |
Ms. Dollins became Executive Vice President of Community Trust Bancorp, Inc. and President of the Central Kentucky Region of Community Trust Bank, Inc. on January 3, 2023, following the retirement of Larry W. Jones. She previously held
the position of President of the Versailles Market of Community Trust Bank, Inc.
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Item 5. |
Market for the Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities
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Fiscal Year Ending December 31 ($)
|
|||||||
2017
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2018
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2019
|
2020
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2021
|
2022
|
||
Community Trust Bancorp, Inc.
|
100.00
|
87.03
|
105.73
|
87.45
|
106.64
|
116.43
|
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NASDAQ Stock Market (U.S.)
|
100.00
|
94.56
|
124.03
|
150.41
|
189.36
|
152.00
|
|
NASDAQ Bank Stocks
|
100.00
|
83.60
|
114.68
|
100.00
|
137.32
|
113.60
|
Item 6. |
[Reserved]
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
❖ |
Our Business
|
❖ |
Financial Goals and Performance
|
❖ |
Results of Operations and Financial Condition
|
❖ |
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
|
2022 Goals
|
2022 Performance
|
2023 Goals
|
||
Basic earnings per share
|
$4.15 - $4.31
|
$4.59
|
$4.57 - $4.75
|
|
Net income
|
$74.1 - $77.1 million
|
$81.8 million
|
$82.0 - $85.4 million
|
|
ROAA
|
1.35% - 1.40%
|
1.50%
|
1.50% - 1.56%
|
|
ROAE
|
10.18% - 10.59%
|
12.73%
|
12.26% - 12.76%
|
|
Revenues
|
$216.0 - $224.8 million
|
$227.0 million
|
$237.9 - $247.6 million
|
|
Noninterest revenue as % of total revenue
|
24.00% - 26.00%
|
25.51%
|
24.00% - 26.00%
|
|
Assets
|
$5.42 - $5.75 billion
|
$5.38 billion
|
$5.38 - $5.72 billion
|
|
Loans
|
$3.41 - $3.55 billion
|
$3.71 billion
|
$3.77 - $3.92 billion
|
|
Deposits, including repurchase agreements
|
$4.63 - $4.82 billion
|
$4.64 billion
|
$4.64 - $4.83 billion
|
|
Shareholders’ equity
|
$ 733.5 - $763.4 million
|
$628.0 million
|
$ 686.5 - $714.5 million
|
❖ |
Net interest income for the year ended December 31, 2022 increased $6.0 million, or 3.7%, from December 31, 2021 with an 11 basis point increase in our net interest margin and a $13.4 million increase in average earning assets.
|
❖ |
Provision for credit losses was $4.9 million for the year ended December 31, 2022 compared to a recovery of provision of $6.4 million for the year ended December 31, 2021.
|
❖ |
Our loan portfolio increased $300.5 million, or 8.8%, from December 31, 2021. Loans excluding Paycheck Protection Program (“PPP”) loans increased $347.0 million during the year.
|
❖ |
Net loan charge-offs were $0.7 million, or 0.02% of average loans annualized, for the year ended December 31, 2022, compared to a net recovery of loan losses of $0.1 million for the year ended December 31, 2021.
|
❖ |
Asset quality remained strong during the year 2022, as nonperforming loans at $15.3 million decreased $1.3 million, or 7.9%, from December 31, 2021. Nonperforming assets at $19.0 million decreased $1.1 million, or 5.6%, from December 31,
2021.
|
❖ |
Deposits, including repurchase agreements, increased $26.2 million, or 0.6%, from December 31, 2021.
|
❖ |
Noninterest income for the year ended December 31, 2022 at $57.9 million decreased $2.5 million, or 4.2%, compared to the year ended December 31, 2021.
|
❖ |
Noninterest expense for the year ended December 31, 2022 at $121.1 million increased $1.8 million, or 1.5%, compared to the year ended December 31, 2021.
|
(dollars in thousands)
|
Change 2022 vs. 2021
|
|||||||||||||||
Year Ended December 31
|
2022
|
2021
|
Amount
|
Percent
|
||||||||||||
Net interest income
|
$
|
169,102
|
$
|
163,079
|
$
|
6,023
|
3.7
|
%
|
||||||||
Provision for credit losses (recovery)
|
4,905
|
(6,386
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)
|
11,291
|
(176.8
|
)
|
||||||||||
Noninterest income
|
57,916
|
60,463
|
(2,547
|
)
|
(4.2
|
)
|
||||||||||
Noninterest expense
|
121,071
|
119,285
|
1,786
|
1.5
|
||||||||||||
Income taxes
|
19,228
|
22,704
|
(3,476
|
)
|
(15.3
|
)
|
||||||||||
Net income
|
$
|
81,814
|
$
|
87,939
|
$
|
(6,125
|
)
|
(7.0
|
)%
|
|||||||
Average earning assets
|
$
|
5,129,345
|
$
|
5,115,961
|
$
|
13,384
|
0.3
|
%
|
||||||||
Yield on average earnings assets, tax equivalent*
|
3.87
|
%
|
3.50
|
%
|
0.37
|
%
|
10.7
|
%
|
||||||||
Cost of interest bearing funds
|
0.85
|
%
|
0.45
|
%
|
0.40
|
%
|
91.3
|
%
|
||||||||
Net interest margin, tax equivalent*
|
3.32
|
%
|
3.21
|
%
|
0.11
|
%
|
3.4
|
%
|
2022
|
2021
|
|||||||||||||||||||||||
(in thousands)
|
Average
Balances
|
Interest
|
Average
Rate
|
Average
Balances
|
Interest
|
Average
Rate
|
||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans (1)(2)(3)
|
$
|
3,552,941
|
$
|
169,950
|
4.78
|
%
|
$
|
3,455,742
|
$
|
159,893
|
4.63
|
%
|
||||||||||||
Loans held for sale
|
893
|
94
|
10.53
|
8,737
|
379
|
4.34
|
||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
U.S. Treasury and agencies
|
1,022,511
|
14,699
|
1.44
|
970,754
|
9,958
|
1.03
|
||||||||||||||||||
Tax exempt state and political subdivisions (3)
|
119,118
|
3,795
|
3.19
|
138,158
|
3,921
|
2.84
|
||||||||||||||||||
Other securities
|
260,423
|
6,996
|
2.69
|
218,202
|
4,023
|
1.84
|
||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
12,388
|
603
|
4.87
|
14,005
|
486
|
3.47
|
||||||||||||||||||
Federal funds sold
|
414
|
15
|
3.62
|
73
|
0
|
0.00
|
||||||||||||||||||
Interest bearing deposits
|
158,563
|
2,484
|
1.57
|
308,200
|
372
|
0.12
|
||||||||||||||||||
Other investments
|
245
|
0
|
0.00
|
245
|
0
|
0.00
|
||||||||||||||||||
Investment in unconsolidated subsidiaries
|
1,849
|
62
|
3.35
|
1,845
|
34
|
1.84
|
||||||||||||||||||
Total earning assets
|
$
|
5,129,345
|
$
|
198,698
|
3.87
|
%
|
$
|
5,115,961
|
$
|
179,066
|
3.50
|
%
|
||||||||||||
Allowance for credit losses
|
(43,081
|
)
|
(44,157
|
)
|
||||||||||||||||||||
5,086,264
|
5,071,804
|
|||||||||||||||||||||||
Nonearning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
59,645
|
60,160
|
||||||||||||||||||||||
Premises and equipment and right of use assets, net
|
53,928
|
53,441
|
||||||||||||||||||||||
Other assets
|
238,859
|
201,836
|
||||||||||||||||||||||
Total assets
|
$
|
5,438,696
|
$
|
5,387,241
|
||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Savings and demand deposits
|
$
|
2,020,065
|
$
|
16,526
|
0.82
|
%
|
$
|
1,925,263
|
$
|
4,505
|
0.23
|
%
|
||||||||||||
Time deposits
|
1,027,726
|
7,542
|
0.73
|
1,057,347
|
8,248
|
0.78
|
||||||||||||||||||
Repurchase agreements and federal funds purchased
|
243,102
|
2,540
|
1.04
|
334,520
|
1,254
|
0.37
|
||||||||||||||||||
Advances from Federal Home Loan Bank
|
898
|
20
|
2.23
|
384
|
0
|
0.00
|
||||||||||||||||||
Long-term debt
|
57,841
|
1,943
|
3.36
|
57,841
|
1,028
|
1.78
|
||||||||||||||||||
Finance lease liability
|
1,589
|
69
|
4.34
|
1,433
|
55
|
3.84
|
||||||||||||||||||
Total interest bearing liabilities
|
$
|
3,351,221
|
$
|
28,640
|
0.85
|
%
|
$
|
3,376,788
|
$
|
15,090
|
0.45
|
%
|
||||||||||||
Noninterest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
1,398,778
|
1,276,367
|
||||||||||||||||||||||
Other liabilities
|
46,274
|
51,389
|
||||||||||||||||||||||
Total liabilities
|
4,796,273
|
4,704,544
|
||||||||||||||||||||||
Shareholders’ equity
|
642,423
|
682,697
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
5,438,696
|
$
|
5,387,241
|
||||||||||||||||||||
Net interest income, tax equivalent
|
$
|
170,058
|
$
|
163,976
|
||||||||||||||||||||
Less tax equivalent interest income
|
956
|
897
|
||||||||||||||||||||||
Net interest income
|
$
|
169,102
|
$
|
163,079
|
||||||||||||||||||||
Net interest spread
|
3.02
|
%
|
3.05
|
%
|
||||||||||||||||||||
Benefit of interest free funding
|
0.30
|
0.16
|
||||||||||||||||||||||
Net interest margin
|
3.32
|
%
|
3.21
|
%
|
(1)
|
Interest includes fees on loans of $1,723 and $1,763 in 2022 and 2021, respectively.
|
(2)
|
Loan balances include deferred loan origination costs and principal balances on nonaccrual loans.
|
(3)
|
Tax exempt income on securities and loans is reported on a fully taxable equivalent basis using a 24.95% rate.
|
Total
Change
|
Change Due to
|
|||||||||||
(in thousands)
|
2022/2021
|
Volume
|
Rate
|
|||||||||
Interest income:
|
||||||||||||
Loans
|
$
|
10,057
|
$
|
4,566
|
$
|
5,491
|
||||||
Loans held for sale
|
(285
|
)
|
(153
|
)
|
(132
|
)
|
||||||
U.S. Treasury and agencies
|
4,741
|
556
|
4,185
|
|||||||||
Tax exempt state and political subdivisions
|
(126
|
)
|
(505
|
)
|
379
|
|||||||
Other securities
|
2,973
|
884
|
2,089
|
|||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
117
|
(51
|
)
|
168
|
||||||||
Federal funds sold
|
15
|
0
|
15
|
|||||||||
Interest bearing deposits
|
2,112
|
(96
|
)
|
2,208
|
||||||||
Other investments
|
0
|
0
|
0
|
|||||||||
Investment in unconsolidated subsidiaries
|
28
|
0
|
28
|
|||||||||
Total interest income
|
19,632
|
5,201
|
14,431
|
|||||||||
Interest expense:
|
||||||||||||
Savings and demand deposits
|
12,021
|
233
|
11,788
|
|||||||||
Time deposits
|
(706
|
)
|
(235
|
)
|
(471
|
)
|
||||||
Repurchase agreements and federal funds purchased
|
1,286
|
(261
|
)
|
1,547
|
||||||||
Advances from Federal Home Loan Bank
|
20
|
0
|
20
|
|||||||||
Long-term debt
|
915
|
0
|
915
|
|||||||||
Finance lease liability
|
14
|
6
|
8
|
|||||||||
Total interest expense
|
13,550
|
(257
|
)
|
13,807
|
||||||||
Net interest income
|
$
|
6,082
|
$
|
5,458
|
$
|
624
|
(dollars in thousands)
Year Ended December 31
|
2022
|
2021
|
Percent Change
|
|||||||||
Components of net interest income:
|
||||||||||||
Income on earning assets
|
$
|
197,742
|
$
|
178,169
|
11.0
|
%
|
||||||
Expense on interest bearing liabilities
|
28,640
|
15,090
|
89.8
|
%
|
||||||||
Net interest income
|
169,102
|
163,079
|
3.7
|
%
|
||||||||
TEQ
|
956
|
897
|
6.5
|
%
|
||||||||
Net interest income, tax equivalent
|
$
|
170,058
|
$
|
163,976
|
3.7
|
%
|
||||||
Average yield and rates paid:
|
||||||||||||
Earning assets yield
|
3.87
|
%
|
3.50
|
%
|
10.7
|
%
|
||||||
Rate paid on interest bearing liabilities
|
0.85
|
%
|
0.45
|
%
|
91.3
|
%
|
||||||
Gross interest margin
|
3.02
|
%
|
3.05
|
%
|
(1.1
|
)%
|
||||||
Net interest margin
|
3.32
|
%
|
3.21
|
%
|
3.4
|
%
|
||||||
Average balances:
|
||||||||||||
Investment securities
|
$
|
1,402,052
|
$
|
1,327,114
|
5.6
|
%
|
||||||
Loans
|
$
|
3,552,941
|
$
|
3,455,742
|
2.8
|
%
|
||||||
Earning assets
|
$
|
5,129,345
|
$
|
5,115,961
|
0.3
|
%
|
||||||
Interest-bearing liabilities
|
$
|
3,351,221
|
$
|
3,376,788
|
(0.8
|
)%
|
(dollars in thousands)
Year Ended December 31
|
2022
|
2021
|
Percent Change
|
|||||||||
Deposit service charges
|
$
|
29,049
|
$
|
26,529
|
9.5
|
%
|
||||||
Trust revenue
|
12,394
|
12,644
|
(2.0
|
)%
|
||||||||
Gains on sales of loans
|
1,525
|
6,820
|
(77.6
|
)%
|
||||||||
Loan related fees
|
6,185
|
5,578
|
10.9
|
%
|
||||||||
Bank owned life insurance revenue
|
2,708
|
2,844
|
(4.8
|
)%
|
||||||||
Brokerage revenue
|
1,846
|
1,962
|
(5.9
|
)%
|
||||||||
Other
|
4,209
|
4,086
|
3.0
|
%
|
||||||||
Total noninterest income
|
$
|
57,916
|
$
|
60,463
|
(4.2
|
)%
|
(dollars in thousands)
Year Ended December 31
|
2022
|
2021
|
Percent Change
|
|||||||||
Salaries
|
$
|
48,934
|
$
|
47,061
|
4.0
|
%
|
||||||
Employee benefits
|
23,556
|
27,053
|
(12.9
|
)%
|
||||||||
Net occupancy and equipment
|
11,083
|
10,854
|
2.1
|
%
|
||||||||
Data processing
|
8,910
|
8,039
|
10.8
|
%
|
||||||||
Legal and professional fees
|
3,434
|
3,199
|
7.3
|
%
|
||||||||
Advertising and marketing
|
3,005
|
2,928
|
2.6
|
%
|
||||||||
Taxes other than property and payroll
|
1,570
|
1,750
|
(10.3
|
)%
|
||||||||
Net other real estate owned expense
|
456
|
1,401
|
(67.4
|
)%
|
||||||||
Other
|
20,123
|
17,000
|
18.4
|
%
|
||||||||
Total noninterest expense
|
$
|
121,071
|
$
|
119,285
|
1.5
|
%
|
(dollars in thousands)
|
December 31, 2022
|
|||||||||||||||||||
Loan Category
|
Balance
|
Variance
from Prior
Year
|
Net (Charge-Offs)/
Recoveries
|
Nonperforming
|
ACL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Hotel/motel
|
$
|
343,640
|
33.7
|
%
|
$
|
(216
|
)
|
$
|
0
|
$
|
5,171
|
|||||||||
Commercial real estate residential
|
372,914
|
11.2
|
(43
|
)
|
613
|
4,894
|
||||||||||||||
Commercial real estate nonresidential
|
762,349
|
0.6
|
689
|
3,063
|
9,419
|
|||||||||||||||
Dealer floorplans
|
77,533
|
11.6
|
0
|
0
|
1,776
|
|||||||||||||||
Commercial other
|
311,539
|
7.3
|
(84
|
)
|
1,338
|
5,285
|
||||||||||||||
Commercial unsecured SBA PPP
|
883
|
(98.1
|
)
|
0
|
13
|
0
|
||||||||||||||
Total commercial
|
1,868,858
|
6.3
|
346
|
5,027
|
26,545
|
|||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate mortgage
|
824,996
|
7.5
|
(171
|
)
|
8,998
|
7,932
|
||||||||||||||
Home equity
|
120,540
|
13.0
|
(17
|
)
|
778
|
1,106
|
||||||||||||||
Total residential
|
945,536
|
8.2
|
(188
|
)
|
9,776
|
9,038
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
157,504
|
0.5
|
(47
|
)
|
41
|
1,694
|
||||||||||||||
Consumer indirect
|
737,392
|
18.8
|
(791
|
)
|
465
|
8,704
|
||||||||||||||
Total consumer
|
894,896
|
15.1
|
(838
|
)
|
506
|
10,398
|
||||||||||||||
Total loans
|
$
|
3,709,290
|
8.8
|
%
|
$
|
(680
|
)
|
$
|
15,309
|
$
|
45,981
|
(dollars in thousands)
|
December 31, 2021
|
|||||||||||||||||||
Loan Category
|
Balance
|
Variance from Prior Year
|
Net (Charge-Offs)/
Recoveries
|
Nonperforming
|
ACL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Hotel/motel
|
$
|
257,062
|
(1.4
|
)%
|
$
|
0
|
$
|
1,075
|
$
|
5,080
|
||||||||||
Commercial real estate residential
|
335,233
|
16.4
|
10
|
897
|
3,986
|
|||||||||||||||
Commercial real estate nonresidential
|
757,893
|
2.0
|
31
|
4,193
|
8,884
|
|||||||||||||||
Dealer floorplans
|
69,452
|
0.5
|
0
|
0
|
1,436
|
|||||||||||||||
Commercial other
|
290,478
|
3.8
|
(255
|
)
|
378
|
4,422
|
||||||||||||||
Commercial unsecured SBA PPP
|
47,335
|
(81.3
|
)
|
0
|
0
|
0
|
||||||||||||||
Total commercial
|
1,757,453
|
(7.2
|
)
|
(214
|
)
|
6,543
|
23,808
|
|||||||||||||
Residential:
|
||||||||||||||||||||
Real estate mortgage
|
767,185
|
(2.2
|
)
|
(198
|
)
|
8,740
|
7,637
|
|||||||||||||
Home equity
|
106,667
|
2.8
|
(17
|
)
|
1,092
|
866
|
||||||||||||||
Total residential
|
873,852
|
(1.6
|
)
|
(215
|
)
|
9,832
|
8,503
|
|||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
156,683
|
2.9
|
(168
|
)
|
44
|
1,951
|
||||||||||||||
Consumer indirect
|
620,825
|
0.1
|
717
|
206
|
7,494
|
|||||||||||||||
Total consumer
|
777,508
|
0.7
|
549
|
250
|
9,445
|
|||||||||||||||
Total loans
|
$
|
3,408,813
|
(4.1
|
)%
|
$
|
120
|
$
|
16,625
|
$
|
41,756
|
(dollars in thousands)
|
2022
|
2021
|
Percent Change
|
|||||||||
Noninterest bearing deposits
|
$
|
1,394,915
|
$
|
1,331,103
|
4.8
|
%
|
||||||
Interest bearing deposits
|
||||||||||||
Interest checking
|
112,265
|
97,064
|
15.7
|
%
|
||||||||
Money market savings
|
1,348,809
|
1,206,401
|
11.8
|
%
|
||||||||
Savings accounts
|
654,380
|
632,645
|
3.4
|
%
|
||||||||
Time deposits
|
915,774
|
1,077,079
|
(15.0
|
)%
|
||||||||
Repurchase agreements
|
215,431
|
271,088
|
(20.5
|
)%
|
||||||||
Total interest bearing deposits and repurchase agreements
|
3,246,659
|
3,284,277
|
(1.1
|
)%
|
||||||||
Total deposits and repurchase agreements
|
$
|
4,641,574
|
$
|
4,615,380
|
0.6
|
%
|
(in thousands)
|
2022
|
2021
|
||||||
Deposits:
|
||||||||
Noninterest bearing deposits
|
$
|
1,398,778
|
$
|
1,276,367
|
||||
Interest bearing deposits
|
104,631
|
94,762
|
||||||
Money market accounts
|
1,248,067
|
1,238,009
|
||||||
Savings accounts
|
667,367
|
592,492
|
||||||
Certificates of deposit of $100,000 or more
|
556,849
|
562,525
|
||||||
Certificates of deposit < $100,000 and other time deposits
|
470,877
|
494,822
|
||||||
Total deposits
|
4,446,569
|
4,258,977
|
||||||
Other borrowed funds:
|
||||||||
Repurchase agreements and federal funds purchased
|
243,102
|
334,520
|
||||||
Advances from Federal Home Loan Bank
|
898
|
384
|
||||||
Long-term debt
|
59,430
|
59,274
|
||||||
Total other borrowed funds
|
303,430
|
394,178
|
||||||
Total deposits and other borrowed funds
|
$
|
4,749,999
|
$
|
4,653,155
|
(dollars 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
|
2
|
$
|
42
|
Less than one year
|
$
|
2,059
|
|||||||
3 to 6 months
|
15
|
1,953
|
1 year
|
157
|
|||||||||
6 to 9 months
|
0
|
0
|
2 years
|
546
|
|||||||||
9 to 12 months
|
13
|
1,245
|
3 years
|
0
|
|||||||||
12 to 18 months
|
6
|
191
|
4 years
|
87
|
|||||||||
18 to 24 months
|
2
|
109
|
5 years
|
24
|
|||||||||
Over 24 months
|
1
|
131
|
6 years
|
0
|
|||||||||
Total
|
39
|
$
|
3,671
|
7 years
|
234
|
||||||||
8 years
|
564
|
||||||||||||
9 years
|
0
|
||||||||||||
Total
|
$
|
3,671
|
Estimated Maturity at December 31, 2022
|
||||||||||||||||||||||||||||||||||||||||||||
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
|
$
|
38,955
|
1.41
|
%
|
$
|
252,588
|
1.24
|
%
|
$
|
180,279
|
2.62
|
%
|
$
|
430,195
|
1.93
|
%
|
$
|
902,017
|
1.85
|
%
|
$
|
1,012,496
|
||||||||||||||||||||||
State and political subdivisions
|
1,705
|
3.64
|
11,752
|
3.52
|
96,764
|
2.34
|
154,881
|
2.50
|
265,102
|
2.50
|
326,746
|
|||||||||||||||||||||||||||||||||
Asset-backed securities
|
0
|
0.00
|
0
|
0.00
|
52,053
|
6.16
|
37,054
|
5.34
|
89,107
|
5.82
|
91,363
|
|||||||||||||||||||||||||||||||||
Total
|
$
|
40,660
|
1.51
|
%
|
$
|
264,340
|
1.34
|
%
|
$
|
329,096
|
3.10
|
%
|
$
|
622,130
|
2.28
|
%
|
$
|
1,256,226
|
2.27
|
%
|
$
|
1,430,605
|
Maturity at December 31, 2022
|
||||||||||||||||
After one
|
||||||||||||||||
Within
|
but within
|
After
|
||||||||||||||
(in thousands)
|
one year
|
five years
|
five years
|
Total
|
||||||||||||
Commercial secured by real estate and commercial other
|
$
|
215,139
|
$
|
175,242
|
$
|
1,324,122
|
$
|
1,714,503
|
||||||||
Commercial and real estate construction
|
71,107
|
19,643
|
185,340
|
276,090
|
||||||||||||
$
|
286,246
|
$
|
194,885
|
$
|
1,509,462
|
$
|
1,990,593
|
|||||||||
Rate sensitivity:
|
||||||||||||||||
Predetermined rate
|
$
|
43,680
|
$
|
101,315
|
$
|
77,546
|
$
|
222,541
|
||||||||
Adjustable rate
|
242,566
|
93,570
|
1,431,916
|
1,768,052
|
||||||||||||
$
|
286,246
|
$
|
194,885
|
$
|
1,509,462
|
$
|
1,990,593
|
(in thousands)
|
Certificates of Deposit
|
Other Time Deposits
|
Total
|
|||||||||
Three months or less
|
$
|
78,400
|
$
|
10,955
|
$
|
89,355
|
||||||
Over three through six months
|
68,841
|
10,304
|
79,145
|
|||||||||
Over six through twelve months
|
213,139
|
15,841
|
228,980
|
|||||||||
Over twelve through sixty months
|
111,400
|
22,390
|
133,790
|
|||||||||
Over sixty
|
154
|
0
|
154
|
|||||||||
$
|
471,934
|
$
|
59,490
|
$
|
531,424
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
9.98%
|
+300
|
7.26%
|
+200
|
4.60%
|
+100
|
1.94%
|
-100
|
(1.95)%
|
-200
|
(3.92)%
|
-300
|
(5.96)%
|
-400
|
(7.91)%
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
11.23%
|
+300
|
7.61%
|
+200
|
4.56%
|
+100
|
2.01%
|
-25
|
(0.66)%
|
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
|
|
2009-2019
|
0
|
-
|
0
|
|
2020
|
1,000,000
|
33.64
|
32,664
|
|
2021
|
0
|
-
|
0
|
|
2022
|
0
|
-
|
0
|
|
Total
|
3,500,000
|
16.17
|
2,465,294
|
1,034,706
|
(dollars in thousands)
December 31
|
2022
|
2021
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest bearing deposits
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Certificates of deposit in other banks
|
|
|
||||||
Debt securities available-for-sale at fair value (amortized cost of $
|
|
|
||||||
Equity securities at fair value
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans
|
|
|
||||||
Allowance for credit losses |
(
|
)
|
(
|
)
|
||||
Net loans
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Operating right-of-use assets
|
|
|
||||||
Finance right-of-use assets |
||||||||
Federal Home Loan Bank stock
|
|
|
||||||
Federal Reserve Bank stock
|
|
|
||||||
Goodwill
|
|
|
||||||
Bank owned life insurance
|
|
|
||||||
Mortgage servicing rights
|
|
|
||||||
Other real estate owned
|
|
|
||||||
Deferred tax asset |
||||||||
Accrued interest receivable
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$
|
|
$
|
|
||||
Interest bearing
|
|
|
||||||
Total deposits
|
|
|
||||||
Repurchase agreements
|
|
|
||||||
Federal funds purchased
|
|
|
||||||
Advances from Federal Home Loan Bank
|
|
|
||||||
Long-term debt
|
|
|
||||||
Deferred tax liability
|
|
|
||||||
Operating lease liability
|
|
|
||||||
Finance lease liability
|
|
|
||||||
Accrued interest payable
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Commitments and contingencies (notes 17 and 19)
|
||||||||
Shareholders’ equity:
|
||||||||
Preferred stock,
|
|
|
||||||
Common stock, $
|
|
|
||||||
Capital surplus
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive loss, net of tax
|
(
|
)
|
(
|
)
|
||||
Total shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
(in thousands except per share data)
Year Ended December 31
|
2022
|
2021
|
2020
|
|||||||||
Interest income:
|
||||||||||||
Interest and fees on loans, including loans held for sale
|
$
|
|
$
|
|
$
|
|
||||||
Interest and dividends on securities:
|
||||||||||||
Taxable
|
|
|
|
|||||||||
Tax exempt
|
|
|
|
|||||||||
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
|
|
|
|
|||||||||
Interest on Federal Reserve Bank deposits
|
|
|
|
|||||||||
Other, including interest on federal funds sold
|
|
|
|
|||||||||
Total interest income
|
|
|
|
|||||||||
Interest expense:
|
||||||||||||
Interest on deposits
|
|
|
|
|||||||||
Interest on repurchase agreements and federal funds purchased
|
|
|
|
|||||||||
Interest on advances from Federal Home Loan Bank
|
|
|
|
|||||||||
Interest on long-term debt
|
|
|
|
|||||||||
Total interest expense
|
|
|
|
|||||||||
Net interest income
|
|
|
|
|||||||||
Provision for credit losses (recovery) |
|
(
|
)
|
|
||||||||
Net interest income after provision for credit losses (recovery) |
|
|
|
|||||||||
Noninterest income:
|
||||||||||||
Service charges on deposit accounts
|
|
|
|
|||||||||
Gains on sales of loans, net
|
|
|
|
|||||||||
Trust and wealth management income
|
|
|
|
|||||||||
Loan related fees
|
|
|
|
|||||||||
Bank owned life insurance
|
|
|
|
|||||||||
Brokerage revenue
|
|
|
|
|||||||||
Securities gains (losses)
|
(
|
)
|
(
|
)
|
|
|||||||
Other noninterest income
|
|
|
|
|||||||||
Total noninterest income
|
|
|
|
|||||||||
Noninterest expense:
|
||||||||||||
Officer salaries and employee benefits
|
|
|
|
|||||||||
Other salaries and employee benefits
|
|
|
|
|||||||||
Occupancy, net
|
|
|
|
|||||||||
Equipment
|
|
|
|
|||||||||
Data processing
|
|
|
|
|||||||||
Bank franchise tax
|
|
|
|
|||||||||
Legal fees
|
|
|
|
|||||||||
Professional fees
|
|
|
|
|||||||||
Advertising and marketing
|
|
|
|
|||||||||
FDIC insurance
|
|
|
|
|||||||||
Other real estate owned provision and expense
|
|
|
|
|||||||||
Repossession expense
|
|
|
|
|||||||||
Amortization of limited partnership investments
|
|
|
|
|||||||||
Other noninterest expense
|
|
|
|
|||||||||
Total noninterest expense
|
|
|
|
|||||||||
Income before income taxes
|
|
|
|
|||||||||
Income taxes
|
|
|
|
|||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized holding gains (losses) on debt securities available-for-sale:
|
||||||||||||
Unrealized holding gains (losses) arising during the period
|
(
|
)
|
(
|
)
|
|
|||||||
Less: Reclassification adjustments for realized gains (losses) included in net income
|
(
|
)
|
|
|
||||||||
Tax expense (benefit)
|
(
|
)
|
(
|
)
|
|
|||||||
Other comprehensive income (loss), net of tax
|
(
|
)
|
(
|
)
|
|
|||||||
Comprehensive income (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Basic earnings per share
|
$
|
|
$
|
|
$
|
|
||||||
Diluted earnings per share
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average shares outstanding-basic
|
|
|
|
|||||||||
Weighted average shares outstanding-diluted
|
|
|
|
(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, December 31, 2019
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Implementation of ASU 2016-13 |
( |
) | ( |
) | ||||||||||||||||||||
Balance, January 1, 2020 |
||||||||||||||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive income (loss)
|
|
|
||||||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Issuance of common stock
|
|
|
|
|
||||||||||||||||||||
Repurchase of common stock |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Issuance of restricted stock
|
|
|
(
|
)
|
|
|||||||||||||||||||
Vesting of restricted stock
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Balance, December 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net income
|
|
|
||||||||||||||||||||||
Other comprehensive income (loss)
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Cash dividends declared ($
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Issuance of common stock
|
|
|
|
|
||||||||||||||||||||
Issuance of restricted stock
|
|
|
(
|
)
|
|
|||||||||||||||||||
Vesting of restricted stock |
( |
) | ( |
) | ||||||||||||||||||||
Stock-based compensation
|
|
|
||||||||||||||||||||||
Balance, December 31, 2021
|
|
|
|
|
|
|
|
|
(
|
)
|
|
|
||||||||||||
Net income |
||||||||||||||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||||||||||
Cash dividends declared ($ |
( |
) | ( |
) | ||||||||||||||||||||
Issuance of common stock |
||||||||||||||||||||||||
Issuance of restricted stock |
( |
) | ||||||||||||||||||||||
Vesting of restricted stock |
( |
) | ( |
) | ||||||||||||||||||||
Stock-based compensation |
||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( |
) | $ |
(in thousands)
Year Ended December 31
|
2022
|
2021
|
2020
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Deferred taxes
|
|
|
(
|
)
|
||||||||
Stock-based compensation
|
|
|
|
|||||||||
Provision for credit losses (recovery) |
|
(
|
)
|
|
||||||||
Write-downs of other real estate owned and other repossessed assets
|
|
|
|
|||||||||
Gains on sale of loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Securities gains (losses) |
|
(
|
)
|
(
|
)
|
|||||||
Fair value adjustment in equity securities
|
|
|
(
|
)
|
||||||||
(Gains) losses on sale of assets, net
|
(
|
)
|
(
|
)
|
|
|||||||
Proceeds from sale of mortgage loans held for sale
|
|
|
|
|||||||||
Funding of mortgage loans held for sale
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Amortization of securities premiums and discounts, net
|
|
|
|
|||||||||
Change in cash surrender value of bank owned life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Payment of operating lease liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Mortgage servicing rights:
|
||||||||||||
Fair value adjustments
|
(
|
)
|
(
|
)
|
|
|||||||
New servicing assets created
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in:
|
||||||||||||
Accrued interest receivable
|
(
|
)
|
|
(
|
)
|
|||||||
Other assets
|
|
|
|
|||||||||
Accrued interest payable
|
|
(
|
)
|
(
|
)
|
|||||||
Other liabilities
|
|
(
|
)
|
|
||||||||
Net cash provided by operating activities
|
|
|
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Certificates of deposit in other banks:
|
||||||||||||
Purchase of certificates of deposit
|
|
|
(
|
)
|
||||||||
Maturity of certificates of deposit
|
|
|
|
|||||||||
Securities available-for-sale (AFS):
|
||||||||||||
Purchase of AFS securities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from sales of AFS securities
|
|
|
|
|||||||||
Proceeds from prepayments, calls, and maturities of AFS securities
|
|
|
|
|||||||||
Securities held-to-maturity (HTM):
|
||||||||||||
Proceeds from prepayments and maturities of HTM securities
|
|
|
|
|||||||||
Change in loans, net
|
(
|
)
|
|
(
|
)
|
|||||||
Purchase of premises and equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Proceeds from sale and retirement of premises and equipment
|
|
|
|
|||||||||
Redemption of stock by Federal Home Loan Bank
|
|
|
|
|||||||||
Proceeds from sale of other real estate owned and repossessed assets
|
|
|
|
|||||||||
Additional investment in other real estate owned and repossessed assets |
( |
) | ||||||||||
Additional investment in bank owned life insurance
|
|
(
|
)
|
(
|
)
|
|||||||
Proceeds from settlement of bank owned life insurance
|
|
|
|
|||||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Change in deposits, net
|
|
|
|
|||||||||
Change in repurchase agreements and federal funds purchased, net
|
(
|
)
|
(
|
)
|
|
|||||||
Advances from Federal Home Loan Bank
|
|
|
|
|||||||||
Payments on advances from Federal Home Loan Bank
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Payment of finance lease liabilities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Repurchase of long-term debt
|
|
|
|
|||||||||
Issuance of common stock
|
|
|
|
|||||||||
Repurchase of stock
|
|
|
(
|
)
|
||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash provided by (used in) financing activities
|
(
|
)
|
|
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
(
|
)
|
|
|||||||
Cash and cash equivalents at beginning of year
|
|
|
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
$
|
|
||||||
Supplemental disclosures:
|
||||||||||||
Income taxes paid
|
$
|
|
$
|
|
$
|
|
||||||
Interest paid
|
|
|
|
|||||||||
Non-cash activities:
|
||||||||||||
Loans to facilitate the sale of other real estate owned and repossessed assets
|
|
|
|
|||||||||
Common stock dividends accrued, paid in subsequent quarter
|
|
|
|
|||||||||
Real estate and assets acquired in settlement of loans
|
|
|
|
|||||||||
Right-of-use assets obtained in exchange for new operating/finance lease liabilities
|
● |
Service charges on deposit accounts represent 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 either fee based and collected upon the settlement of the
transaction or commission based and recognized when our performance obligation is completed each month or quarter, which is generally the time that payment is received. 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.
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
State and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Asset-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Available-for-Sale
|
||||||||
(in thousands)
|
Amortized
Cost
|
Fair Value
|
||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one through five years
|
|
|
||||||
Due after five through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
||||||
Asset-backed securities
|
|
|
||||||
Total debt securities
|
$
|
|
$
|
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total <12 months temporarily impaired AFS securities
|
|
(
|
)
|
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
|
(
|
)
|
|
||||||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total ≥12 months temporarily impaired AFS securities
|
|
(
|
)
|
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
|
(
|
)
|
|
||||||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total temporarily impaired AFS securities
|
$
|
|
$
|
(
|
)
|
$
|
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total <12 months temporarily impaired AFS securities
|
|
(
|
)
|
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
|
(
|
)
|
|
||||||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total ≥12 months temporarily impaired AFS securities
|
|
(
|
)
|
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
|
(
|
)
|
|
||||||||
State and political subdivisions
|
|
(
|
)
|
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
(
|
)
|
|
||||||||
Asset-backed securities
|
|
(
|
)
|
|
||||||||
Total temporarily impaired AFS securities
|
$
|
|
$
|
(
|
)
|
$
|
|
(in thousands)
|
December 31
2022
|
December 31
2021
|
||||||
Hotel/motel
|
$
|
|
$
|
|
||||
Commercial real estate residential
|
|
|
||||||
Commercial real estate nonresidential
|
|
|
||||||
Dealer floorplans
|
|
|
||||||
Commercial other
|
|
|
||||||
Commercial unsecured SBA PPP
|
|
|
||||||
Commercial loans
|
|
|
||||||
Real estate mortgage
|
|
|
||||||
Home equity lines
|
|
|
||||||
Residential loans
|
|
|
||||||
Consumer direct
|
|
|
||||||
Consumer indirect
|
|
|
||||||
Consumer loans
|
|
|
||||||
Loans and lease financing
|
$
|
|
$
|
|
Year Ended
December 31, 2022
|
||||||||||||||||||||
(in thousands)
|
Beginning Balance
|
Provision Charged to Expense
|
Losses
Charged Off
|
Recoveries
|
Ending Balance
|
|||||||||||||||
ACL
|
||||||||||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||
Commercial real estate residential
|
|
|
(
|
)
|
|
|
||||||||||||||
Commercial real estate nonresidential
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Dealer floorplans
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
(
|
)
|
|
|
||||||||||||||
Real estate mortgage
|
|
|
(
|
)
|
|
|
||||||||||||||
Home equity
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer direct
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Consumer indirect
|
|
|
(
|
)
|
|
|
||||||||||||||
Total
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Year Ended
December 31, 2021
|
||||||||||||||||||||
(in thousands)
|
Beginning Balance
|
Provision Charged to Expense
|
Losses
Charged Off
|
Recoveries
|
Ending Balance
|
|||||||||||||||
ACL
|
||||||||||||||||||||
Hotel/motel
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||
Commercial real estate residential
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Commercial real estate nonresidential
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Dealer floorplans
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
(
|
)
|
|
|
||||||||||||||
Real estate mortgage
|
|
|
(
|
)
|
|
|
||||||||||||||
Home equity
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer direct
|
|
|
(
|
)
|
|
|
||||||||||||||
Consumer indirect
|
|
(
|
)
|
(
|
)
|
|
|
|||||||||||||
Total
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
$
|
|
Year Ended
December 31, 2020
|
||||||||||||||||||||||||
(in thousands)
|
Beginning
Balance,
Prior to
Adoption of
ASC 326
|
Impact of
Adoption of
ASC 326
|
Provision
Charged to
Expense
|
Losses
Charged Off
|
Recoveries
|
Ending
Balance
|
||||||||||||||||||
ACL
|
||||||||||||||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||||||||
Commercial real estate residential
|
|
(
|
)
|
|
(
|
)
|
|
|
||||||||||||||||
Commercial real estate nonresidential
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||
Dealer floorplans
|
|
|
(
|
)
|
(
|
)
|
|
|
||||||||||||||||
Commercial other
|
|
(
|
)
|
|
(
|
)
|
|
|
||||||||||||||||
Real estate mortgage
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||
Home equity
|
|
(
|
)
|
|
(
|
)
|
|
|
||||||||||||||||
Consumer direct
|
|
(
|
)
|
|
(
|
)
|
|
|
||||||||||||||||
Consumer indirect
|
|
|
|
(
|
)
|
|
|
|||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
December 31, 2022
|
||||||||||||||||
(in thousands)
|
Nonaccrual Loans
with No ACL
|
Nonaccrual Loans
with ACL
|
90+ and Still
Accruing
|
Total
Nonperforming
Loans
|
||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial real estate residential
|
|
|
|
|
||||||||||||
Commercial real estate nonresidential
|
|
|
|
|
||||||||||||
Commercial other
|
||||||||||||||||
Commercial unsecured SBA PPP
|
|
|
|
|||||||||||||
Total commercial loans
|
|
|
|
|
||||||||||||
Real estate mortgage
|
|
|
|
|
||||||||||||
Home equity lines
|
|
|
|
|
||||||||||||
Total residential loans
|
|
|
|
|
||||||||||||
Consumer direct
|
|
|
|
|
||||||||||||
Consumer indirect
|
|
|
|
|
||||||||||||
Total consumer loans
|
|
|
|
|
||||||||||||
Loans and lease financing
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||
(in thousands)
|
Nonaccrual Loans
with No ACL
|
Nonaccrual Loans
with ACL
|
90+ and Still
Accruing
|
Total
Nonperforming
Loans
|
||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commercial real estate residential
|
|
|
|
|
||||||||||||
Commercial real estate nonresidential
|
|
|
|
|
||||||||||||
Commercial other
|
|
|
|
|
||||||||||||
Total commercial loans
|
|
|
|
|
||||||||||||
Real estate mortgage
|
|
|
|
|
||||||||||||
Home equity lines
|
|
|
|
|
||||||||||||
Total residential loans
|
|
|
|
|
||||||||||||
Consumer direct
|
|
|
|
|
||||||||||||
Consumer indirect
|
|
|
|
|
||||||||||||
Total consumer loans
|
|
|
|
|
||||||||||||
Loans and lease financing
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
||||||||||||||||||||||||
(in thousands)
|
30-59 Days
Past Due
|
60-89
Days Past
Due
|
90+ Days
Past Due
|
Total
Past Due
|
Current
|
Total Loans
|
||||||||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial real estate residential
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|
||||||||||||||||||
Dealer floorplans
|
|
|
|
|
|
|
||||||||||||||||||
Commercial other
|
|
|
|
|
|
|
||||||||||||||||||
Commercial unsecured SBA PPP
|
|
|
|
|
|
|
||||||||||||||||||
Total commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines
|
|
|
|
|
|
|
||||||||||||||||||
Total residential loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer direct
|
|
|
|
|
|
|
||||||||||||||||||
Consumer indirect
|
|
|
|
|
|
|
||||||||||||||||||
Total consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Loans and lease financing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||||||||||
(in thousands)
|
30-59 Days
Past Due
|
60-89
Days Past
Due
|
90+ Days
Past Due
|
Total
Past Due
|
Current
|
Total Loans
|
||||||||||||||||||
Hotel/motel
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial real estate residential
|
|
|
|
|
|
|
||||||||||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|
||||||||||||||||||
Dealer floorplans
|
|
|
|
|
|
|
||||||||||||||||||
Commercial other
|
|
|
|
|
|
|
||||||||||||||||||
Commercial unsecured SBA PPP
|
|
|
|
|
|
|
||||||||||||||||||
Total commercial loans
|
|
|
|
|
|
|
||||||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|
||||||||||||||||||
Home equity lines
|
|
|
|
|
|
|
||||||||||||||||||
Total residential loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer direct
|
|
|
|
|
|
|
||||||||||||||||||
Consumer indirect
|
|
|
|
|
|
|
||||||||||||||||||
Total consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Loans and lease financing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
➢ |
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.
|
➢ |
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.
|
➢ |
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.
|
➢ |
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.
|
➢ |
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.
|
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
(in thousands)
December 31 |
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving
Loans
|
Total
|
||||||||||||||||||||||||
Hotel/motel
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total hotel/motel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate residential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial real estate residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate nonresidential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial real estate nonresidential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dealer floorplans
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total dealer floorplans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial other
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial unsecured SBA PPP
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial unsecured SBA PPP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Term Loans Amortized Cost Basis by Origination Year
|
||||||||||||||||||||||||||||||||
(in thousands)
December 31 |
2021 |
2020 |
2019
|
2018 | 2017 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||
Hotel/motel
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total hotel/motel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate residential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial real estate residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial real estate nonresidential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial real estate nonresidential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Dealer floorplans
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total dealer floorplans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial other
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial unsecured SBA PPP
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial unsecured SBA PPP
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Watch
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
OAEM
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Substandard
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Doubtful
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total commercial loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands) |
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
December 31
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving
Loans
|
Total
|
||||||||||||||||||||||||
Home equity lines
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total home equity lines
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Mortgage loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total mortgage loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total residential loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer direct loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer direct loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer indirect loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer indirect loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
December 31
|
2021
|
2020
|
2019
|
2018
|
2017
|
Prior
|
Revolving Loans
|
Total
|
||||||||||||||||||||||||
Home equity lines
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total home equity lines
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Mortgage loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total mortgage loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Residential loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total residential loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer direct loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer direct loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer indirect loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer indirect loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||
Performing
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Nonperforming
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Total consumer loans
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2022
|
||||||||||||
(in thousands)
|
Number of
Loans
|
Recorded
Investment
|
Specific
Reserve
|
|||||||||
Hotel/motel
|
|
$
|
|
$
|
|
|||||||
Commercial real estate residential
|
|
|
|
|||||||||
Commercial real estate nonresidential
|
|
|
|
|||||||||
Commercial other
|
|
|
|
|||||||||
Total collateral dependent loans
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||
(in thousands)
|
Number of
Loans
|
Recorded
Investment
|
Specific
Reserve
|
|||||||||
Hotel/motel
|
|
$
|
|
$
|
|
|||||||
Commercial real estate residential
|
|
|
|
|||||||||
Commercial real estate nonresidential
|
|
|
|
|||||||||
Commercial other
|
|
|
|
|||||||||
Total collateral dependent loans
|
|
$
|
|
$
|
|
Year Ended
December 31, 2022
|
||||||||||||||||||||
Pre-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification |
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|||||||||||||||
Hotel/motel
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
|
|
|
|||||||||||||||
Total commercial loans
|
|
|
|
|
|
|||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|||||||||||||||
Total residential loans
|
|
|
|
|
|
|||||||||||||||
Total troubled debt restructurings
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended
December 31, 2022
|
||||||||||||||||||||
Post-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification
|
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|||||||||||||||
Hotel/motel
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
|
|
|
|||||||||||||||
Total commercial loans
|
|
|
|
|
|
|||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|||||||||||||||
Total residential loans
|
|
|
|
|
|
|||||||||||||||
Total troubled debt restructurings
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended
December 31, 2021
|
||||||||||||||||||||
Pre-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification
|
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|||||||||||||||
Hotel/motel
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
|
|
|
|||||||||||||||
Total commercial loans
|
|
|
|
|
|
|||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|||||||||||||||
Total residential loans
|
|
|
|
|
|
|||||||||||||||
Total troubled debt restructurings
|
$
|
|
$
|
|
$
|
|
$
|
|
Year Ended
December 31, 2021
|
||||||||||||||||||||
Post-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification
|
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||
Commercial real estate nonresidential
|
|
|
|
|
|
|||||||||||||||
Hotel/motel
|
|
|
|
|
|
|||||||||||||||
Commercial other
|
|
|
|
|
|
|||||||||||||||
Total commercial loans
|
|
|
|
|
|
|||||||||||||||
Real estate mortgage
|
|
|
|
|
|
|||||||||||||||
Total residential loans
|
|
|
|
|
|
|||||||||||||||
Total troubled debt restructurings
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
Year Ended
December 31, 2022
|
Year Ended
December 31, 2021
|
||||||||||||||
Number of
Loans
|
Recorded
Balance
|
Number of
Loans
|
Recorded
Balance
|
|||||||||||||
Commercial:
|
||||||||||||||||
Hotel/motel
|
|
$
|
|
|
$
|
|
||||||||||
Residential:
|
||||||||||||||||
Real estate mortgage
|
|
|
|
|
||||||||||||
Total defaulted restructured loans
|
|
$
|
|
|
$
|
|
(in thousands)
Year Ended December 31
|
2022
|
2021
|
2020
|
|||||||||
Net gain on sale of mortgage loans held for sale
|
$
|
|
$
|
|
$
|
|
||||||
Net loan servicing income:
|
||||||||||||
Servicing fees
|
|
|
|
|||||||||
Late fees
|
|
|
|
|||||||||
Ancillary fees
|
|
|
|
|||||||||
Fair value adjustments
|
|
|
(
|
)
|
||||||||
Net loan servicing income
|
|
|
|
|||||||||
Mortgage banking income
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Fair value of MSRs, beginning of year
|
$
|
|
$
|
|
$
|
|
||||||
New servicing assets created
|
|
|
|
|||||||||
Change in fair value during the year due to:
|
||||||||||||
Time decay (1)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Payoffs (2)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Changes in valuation inputs or assumptions (3)
|
|
|
(
|
)
|
||||||||
Fair value of MSRs, end of year
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(3) |
|
(in thousands)
|
2022
|
2021
|
||||||
Related party extensions of credit, beginning of year
|
$
|
|
$
|
|
||||
New loans and advances on lines of credit
|
|
|
||||||
Repayments
|
(
|
)
|
(
|
)
|
||||
Decrease due to changes in related parties
|
(
|
)
|
(
|
)
|
||||
Related party extensions of credit, end of year
|
$
|
|
$
|
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
Land and buildings
|
$
|
|
$
|
|
||||
Leasehold improvements
|
|
|
||||||
Furniture, fixtures, and equipment
|
|
|
||||||
Construction in progress
|
|
|
||||||
Total premises and equipment
|
|
|
||||||
Less accumulated depreciation and amortization
|
(
|
)
|
(
|
)
|
||||
Premises and equipment, net
|
$
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
||||||
Beginning balance of other real estate owned
|
$
|
|
$
|
|
||||
New assets acquired
|
|
|
||||||
Capitalized costs |
||||||||
Fair value adjustments
|
(
|
)
|
(
|
)
|
||||
Sale of assets
|
(
|
)
|
(
|
)
|
||||
Ending balance of other real estate owned
|
$
|
|
$
|
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
1-4 family
|
$
|
|
$
|
|
||||
Construction/land development/other
|
|
|
||||||
Multifamily
|
|
|
||||||
Non-farm/non-residential
|
|
|
||||||
Total foreclosed properties
|
$
|
|
$
|
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
Noninterest bearing deposits
|
$
|
|
$
|
|
||||
Interest bearing demand deposits
|
|
|
||||||
Money market deposits
|
|
|
||||||
Savings
|
|
|
||||||
Certificates of deposit and other time deposits of $100,000 or more
|
|
|
||||||
Certificates of deposit and other time deposits less than $100,000
|
|
|
||||||
Total deposits
|
$
|
|
$
|
|
Maturities by Period at December 31, 2022
|
||||||||||||||||||||||||||||
(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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Certificates of deposit and other time deposits less than $100,000
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total maturities
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
Repurchase agreements
|
$
|
|
$
|
|
||||
Federal funds purchased
|
|
|
||||||
Total short-term debt
|
$
|
|
$
|
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
Junior subordinated debentures,
|
$
|
|
$
|
|
December 31, 2022
|
||||||||||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
State and political subdivisions
|
|
|
|
|
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Asset-backed securities
|
||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||||||
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
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
State and political subdivisions
|
|
|
|
|
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
|
|
|
|||||||||||||||
Asset-backed securities
|
||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
||||||
Monthly amortizing
|
$
|
|
$
|
|
||||
Total FHLB advances
|
$
|
|
$
|
|
Principal Payments Due by Period at December 31, 2022
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Outstanding advances, weighted average interest rate –
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Current federal income tax expense
|
$
|
|
$
|
|
$
|
|
||||||
Current state income tax expense
|
|
|
|
|||||||||
Deferred federal income tax expense (benefit)
|
|
|
(
|
)
|
||||||||
Deferred state income tax expense
|
||||||||||||
Effect of Kentucky tax legislation benefit
|
|
|
(
|
)
|
||||||||
Total income tax expense
|
$
|
|
$
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||||||||||||||
Computed at the statutory rate
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
||||||||||||
Adjustments resulting from:
|
||||||||||||||||||||||||
Tax-exempt interest
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Housing and new markets credits
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Bank owned life insurance
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
ESOP dividend deduction
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||
Stock option exercises and restricted stock vesting
|
(
|
)
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||
Effect of KY tax legislation
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
State income taxes
|
|
|
|
|
|
|
||||||||||||||||||
Split dollar life insurance
|
(
|
)
|
(
|
)
|
|
|
|
|
||||||||||||||||
Other
|
(
|
)
|
(
|
)
|
|
|
|
|
||||||||||||||||
Total
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
(in thousands)
|
2022
|
2021
|
||||||
Deferred tax assets:
|
||||||||
Allowance for credit losses
|
$
|
|
$
|
|
||||
Interest on nonaccrual loans
|
|
|
||||||
Accrued expenses
|
|
|
||||||
Unrealized losses on AFS securities
|
||||||||
Allowance for other real estate owned
|
|
|
||||||
State net operating loss carryforward
|
|
|
||||||
Lease liabilities
|
|
|
||||||
Other
|
|
|
||||||
Total deferred tax assets
|
|
|
||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
(
|
)
|
(
|
)
|
||||
FHLB stock dividends
|
(
|
)
|
(
|
)
|
||||
Loan fee income
|
(
|
)
|
(
|
)
|
||||
Mortgage servicing rights
|
(
|
)
|
(
|
)
|
||||
Limited partnership investments
|
(
|
)
|
(
|
)
|
||||
Right of use assets
|
(
|
)
|
(
|
)
|
||||
Other
|
(
|
)
|
(
|
)
|
||||
Total deferred tax liabilities
|
(
|
)
|
(
|
)
|
||||
Net deferred tax asset (liability)
|
$
|
|
$
|
(
|
)
|
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
|
|
$
|
|
|
(a)
|
|||||||
Restricted stock
|
(c)
|
(b)
|
(a)
|
|||||||||
Performance units
|
(d)
|
(b)
|
(a)
|
|||||||||
Stock appreciation rights (“SARs”)
|
(e)
|
(b)
|
(a)
|
|||||||||
Total
|
|
(a) |
|
(b) |
|
(c) |
|
(d) |
|
(e) |
|
Plan Category
|
Shares Available
for Future
Issuance
|
|||
Shares available at January 1, 2022
|
|
|||
Stock option grants
|
|
|||
Restricted stock grants
|
(
|
)
|
||
Forfeitures
|
|
|||
Shares available for future issuance at December 31,
2022
|
|
December 31
|
2022
|
2021
|
2020
|
|||||||||||||||||||||
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
|
|
$
|
|
|
$
|
|
|
$
|
|
|||||||||||||||
Granted
|
|
|
|
|
|
|
||||||||||||||||||
Vested
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||
Forfeited
|
|
|
|
|
|
|
||||||||||||||||||
Outstanding at end of year
|
|
$
|
|
|
$
|
|
|
$
|
|
December 31
|
2022
|
2021
|
2020
|
|||||||||||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
|
$
|
|
|
$
|
|
|
$
|
|
|||||||||||||||
Granted
|
|
|
|
|
|
|
||||||||||||||||||
Exercised
|
|
|
|
|
(
|
)
|
|
|||||||||||||||||
Forfeited/expired
|
|
|
|
|
|
|
||||||||||||||||||
Outstanding at end of year
|
|
$
|
|
|
$
|
|
|
$
|
|
|||||||||||||||
Exercisable at end of year
|
|
$
|
|
|
$
|
|
|
$
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Options exercised
|
$
|
|
$
|
|
$
|
|
||||||
Options exercisable
|
|
|
|
|||||||||
Outstanding options
|
|
|
|
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Unrecognized compensation cost of nonvested share-based compensation arrangements granted under the plan at
year-end
|
$
|
|
$
|
|
$
|
|
||||||
Total fair value of shares vested for the year
|
|
|
|
|||||||||
Cash received from option exercises under all share-based payment arrangements for the year
|
|
|
|
|||||||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for
the year
|
|
|
|
(in thousands)
|
Year Ended
December 31, 2022
|
Year Ended
December 31, 2021
|
||||||
Finance lease cost:
|
||||||||
Amortization of right-of-use assets – finance leases
|
$
|
|
$
|
|
||||
Interest on lease liabilities – finance leases
|
|
|
||||||
Total finance lease cost
|
|
|
||||||
Short-term lease cost
|
|
|
||||||
Operating lease cost
|
|
|
||||||
Total lease cost
|
||||||||
Sublease income
|
(
|
)
|
(
|
)
|
||||
Net lease cost
|
$
|
|
$
|
|
(in thousands)
|
Year Ended
December 31, 2022
|
Year Ended
December 31, 2021
|
||||||
Finance lease – operating cash flows
|
$
|
|
$
|
|
||||
Finance lease – financing cash flows
|
$
|
|
$
|
|
||||
Operating lease – operating cash flows (fixed payments)
|
$
|
|
$
|
|
||||
Operating lease – operating cash flows (liability reduction)
|
$
|
|
$
|
|
||||
New right-of-use assets – operating leases
|
$
|
|
$
|
|
||||
New right-of-use assets – finance leases
|
$ | $ | ||||||
Weighted average lease term – financing leases
|
|
|
||||||
Weighted average lease term – operating leases
|
|
|
||||||
Weighted average discount rate – financing leases
|
|
%
|
|
%
|
||||
Weighted average discount rate – operating leases
|
|
%
|
|
%
|
(in thousands)
|
Operating Leases
|
Finance Leases
|
||||||
2023
|
$
|
|
$
|
|
||||
2024
|
|
|
||||||
2025
|
|
|
||||||
2026
|
|
|
||||||
2027
|
|
|
||||||
Thereafter
|
|
|
||||||
Total lease payments
|
|
|
||||||
Less imputed interest
|
(
|
)
|
(
|
)
|
||||
Total
|
$
|
|
$
|
|
(in thousands)
|
Fair Value Measurements at
December 31, 2022
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
|
|
||||||||||||
Asset-backed securities
|
|
|
|
|
||||||||||||
Equity securities at fair value
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
(in thousands)
|
Fair Value Measurements at
December 31, 2021
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
State and political subdivisions
|
|
|
|
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
|
|
|
|
||||||||||||
Asset-backed securities
|
|
|
|
|
||||||||||||
Equity securities at fair value
|
|
|
|
|
||||||||||||
Mortgage servicing rights
|
|
|
|
|
(in thousands)
|
2022
|
2021
|
||||||||||||||
Equity
Securities
at Fair
Value
|
Mortgage
Servicing
Rights
|
Equity
Securities
at Fair
Value
|
Mortgage
Servicing
Rights
|
|||||||||||||
Beginning balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total unrealized gains (losses)
|
||||||||||||||||
Included in net income
|
(
|
)
|
|
(
|
)
|
|
||||||||||
Issues
|
|
|
|
|
||||||||||||
Settlements
|
|
(
|
)
|
|
(
|
)
|
||||||||||
Ending balance
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total gains (losses) for the period included in net income attributable to the change in unrealized gains
or losses related to assets still held at the reporting date
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
|
Noninterest Income
|
||||||||
(in thousands)
|
2022
|
2021
|
||||||
Total gains (losses)
|
$
|
|
$
|
|
(in thousands)
|
Fair Value Measurements at
December 31, 2022
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
|
||||||||||||||||
Collateral dependent loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned
|
|
|
|
|
(in thousands)
|
Fair Value Measurements at
December 31, 2021
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
|
||||||||||||||||
Collateral dependent loans
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other real estate owned
|
|
|
|
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
Fair Value at
December 31,
2022
|
Valuation
Technique(s)
|
Unobservable Input
|
Range
(Weighted
Average)
|
||||||
Equity securities at fair value
|
$
|
|
Discount cash flows, computer pricing model
|
Discount rate
|
(
|
||||
Conversion date
|
– (
) |
||||||||
Mortgage servicing rights
|
$
|
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
(
|
||||
Probability of default
|
(
|
||||||||
Discount rate
|
(
|
||||||||
Collateral-dependent loans
|
$
|
|
Market comparable properties
|
Marketability discount
|
(
|
||||
Other real estate owned
|
$
|
|
Market comparable properties
|
Comparability adjustments
|
(
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
Fair Value at
December 31,
2021
|
Valuation
Technique(s)
|
Unobservable Input
|
Range
(Weighted
Average)
|
||||||
Equity securities at fair value
|
$
|
|
Discount cash flows, computer pricing model
|
Discount rate
|
(
|
||||
Conversion date
|
- (
) |
||||||||
Mortgage servicing rights
|
$
|
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
(
|
||||
Probability of default
|
(
|
||||||||
Discount rate
|
(
|
||||||||
Collateral-dependent loans
|
$
|
|
Market comparable properties
|
Marketability discount
|
(
|
||||
Other real estate owned
|
$
|
|
Market comparable properties
|
Comparability adjustments
|
(
|
(in thousands)
|
Fair Value Measurements
at December 31, 2022
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Certificates of deposit in other banks
|
|
|
|
|
||||||||||||
Debt securities available-for-sale
|
|
|
|
|
||||||||||||
Equity securities at fair value
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net
|
|
|
|
|
||||||||||||
Federal Home Loan Bank stock
|
|
|
|
|
||||||||||||
Federal Reserve Bank stock
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Repurchase agreements
|
|
|
|
|
||||||||||||
Federal funds purchased
|
|
|
|
|
||||||||||||
Advances from Federal Home Loan Bank
|
|
|
|
|
||||||||||||
Long-term debt
|
|
|
|
|
||||||||||||
Accrued interest payable
|
|
|
|
|
||||||||||||
Unrecognized financial instruments:
|
||||||||||||||||
Letters of credit
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commitments to extend credit
|
|
|
|
|
||||||||||||
Forward sale commitments
|
|
|
|
|
(in thousands)
|
Fair Value Measurements
at December 31, 2021
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
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Certificates of deposit in other banks
|
|
|
|
|
||||||||||||
Debt securities available-for-sale
|
|
|
|
|
||||||||||||
Equity securities at fair value
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net
|
|
|
|
|
||||||||||||
Federal Home Loan Bank stock
|
|
|
|
|
||||||||||||
Federal Reserve Bank stock
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Repurchase agreements
|
|
|
|
|
||||||||||||
Federal funds purchased
|
|
|
|
|
||||||||||||
Advances from Federal Home Loan Bank
|
|
|
|
|
||||||||||||
Long-term debt
|
|
|
|
|
||||||||||||
Accrued interest payable
|
|
|
|
|
||||||||||||
Unrecognized financial instruments:
|
||||||||||||||||
Letters of credit
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Commitments to extend credit
|
|
|
|
|
||||||||||||
Forward sale commitments
|
|
|
|
|
(in thousands)
|
2022
|
2021
|
||||||
Standby letters of credit
|
$
|
|
$
|
|
||||
Commitments to extend credit
|
|
|
||||||
Total off-balance sheet financial instruments
|
$
|
|
$
|
|
Actual
|
For Capital Adequacy
Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2022:
|
||||||||||||||||
CBLR
|
$
|
|
|
%
|
$
|
|
|
%
|
As of December 31, 2021:
|
||||||||||||||||
CBLR
|
$
|
|
|
%
|
$
|
|
|
%
|
Actual
|
For Capital Adequacy
Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2022:
|
||||||||||||||||
CBLR
|
$
|
|
|
%
|
$
|
|
|
%
|
As of December 31, 2021:
|
||||||||||||||||
CBLR
|
$
|
|
|
%
|
$
|
|
|
%
|
(in thousands)
December 31
|
2022
|
2021
|
||||||
Assets:
|
||||||||
Cash on deposit
|
$
|
|
$
|
|
||||
Investment in and advances to subsidiaries
|
|
|
||||||
Goodwill
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Deferred tax asset
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Long-term debt
|
$
|
|
$
|
|
||||
Other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Shareholders’ equity
|
|
|
||||||
Total liabilities and shareholders’ equity
|
$
|
|
$
|
|
(in thousands)
Year Ended December 31
|
2022
|
2021
|
2020
|
|||||||||
Income:
|
||||||||||||
Dividends from subsidiaries
|
$
|
|
$
|
|
$
|
|
||||||
Other income
|
|
|
|
|||||||||
Total income
|
|
|
|
|||||||||
Expenses:
|
||||||||||||
Interest expense
|
|
|
|
|||||||||
Depreciation expense
|
|
|
|
|||||||||
Other expenses
|
|
|
|
|||||||||
Total expenses
|
|
|
|
|||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
|
|
|
|||||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Income before equity in undistributed income of subsidiaries
|
|
|
|
|||||||||
Equity in undistributed income of subsidiaries
|
|
|
|
|||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized holding gains (losses) on debt securities available-for-sale:
|
||||||||||||
Unrealized holding gains (losses) arising during the period
|
(
|
)
|
(
|
)
|
|
|||||||
Less: Reclassification adjustments for realized gains (losses) included in net income
|
(
|
)
|
|
|
||||||||
Tax expense (benefit)
|
(
|
)
|
(
|
)
|
|
|||||||
Other comprehensive income (loss), net of tax
|
(
|
)
|
(
|
)
|
|
|||||||
Comprehensive income (loss)
|
$
|
(
|
)
|
$
|
|
$
|
|
(in thousands)
Year Ended December 31
|
2022
|
2021
|
2020
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
|
|
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Deferred taxes
|
|
|
|
|||||||||
Stock-based compensation
|
|
|
|
|||||||||
Changes in:
|
||||||||||||
Other assets
|
|
(
|
)
|
(
|
)
|
|||||||
Other liabilities
|
(
|
)
|
|
(
|
)
|
|||||||
Net cash provided by operating activities
|
|
|
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Net purchases of premises and equipment
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Issuance of common stock
|
|
|
|
|||||||||
Repurchase of common stock
|
|
|
(
|
)
|
||||||||
Dividends paid
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
(
|
)
|
|
(
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
|
|
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
$
|
|
Year Ended December 31
(in thousands except per share data)
|
2022
|
2021
|
2020
|
|||||||||
Numerator:
|
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Denominator:
|
||||||||||||
Basic earnings per share:
|
||||||||||||
Weighted average shares
|
|
|
|
|||||||||
Diluted earnings per share:
|
||||||||||||
Dilutive effect of equity grants
|
|
|
|
|||||||||
Adjusted weighted average shares
|
|
|
|
|||||||||
Earnings per share:
|
||||||||||||
Basic earnings per share
|
$
|
|
$
|
|
$
|
|
||||||
Diluted earnings per share
|
|
|
|
Amounts Reclassified from AOCI
|
||||||||||||
Year Ended December 31
(in thousands)
|
2022
|
2021
|
2020
|
|||||||||
Affected line item in the statements of income
|
||||||||||||
Securities gains (losses)
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Tax expense (benefit)
|
(
|
)
|
|
|
||||||||
Total reclassifications out of AOCI
|
$
|
(
|
)
|
$
|
|
$
|
|
• |
Obtaining an understanding of the Company’s process for establishing the ACL, including the qualitative and forecast factor adjustments of the ACL and any
limitations of the model
|
• |
Testing the design and operating effectiveness of internal controls, including those related to technology, over the ACL calculation including data completeness and
accuracy, verification of historical net loss data and calculated net loss rates, the establishment of qualitative and forecast adjustments, grading and risk classification of loans by segment, including internal independent loan review
functions, establishment of reserves on individually evaluated loans and management’s review controls over the ACL
|
• |
Testing of completeness and accuracy of the information utilized in the calculation of the ACL, including reports used in management review controls over the ACL
|
• |
Assessing the relevance and reliability of assumptions and data
|
• |
Testing clerical and computational accuracy of the formulas within the calculation
|
• |
Evaluating the inherent limitations of the models selected by the Company and need for and level of qualitative factor adjustments
|
• |
Evaluating how historical losses for each segment are analyzed using a model that is appropriate for the related loan segment, and applied to their respective
outstanding balances
|
• |
Evaluating segmentation of the loan portfolio for reasonableness based on risk characteristics of the pooled loans
|
• |
Evaluating the qualitative factor adjustments, including assessing the basis for the adjustments and the reasonableness of the significant assumptions
|
• |
Evaluating the forecast adjustments, including assessing the information sources, basis for the adjustments, and the reasonableness of the significant assumptions
|
• |
Evaluating management’s risk ratings of loans through utilizing internal professionals to assist us in evaluating the appropriateness of loan grades
|
• |
Evaluating specific reserves on individually analyzed loans
|
• |
Evaluating overall reasonableness of estimated reserve by considering past performance of the Company’s loan portfolio, trends in credit quality of the loan
portfolio and trends in the credit quality of peer institutions and comparing the trends to the Company’s ACL trends for directional consistency compared to previous years
|
Item 9. |
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
• |
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.
|
February 28, 2023
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
||
Vice Chairman, President, and Chief Executive Officer
|
||
/s/ Kevin J. Stumbo
|
||
Kevin J. Stumbo
|
||
Executive Vice President, Chief Financial Officer, and Treasurer
|
Item 9B. |
Other Information
|
Item 10. |
Directors, Executive Officers, and Corporate Governance
|
Item 11. |
Executive Compensation
|
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
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:
|
20
|
$32.27
|
400
|
Stock options
|
|||
Equity compensation plans not approved by shareholders
|
0
|
--
|
0
|
Total
|
400
|
Item 13. |
Certain Relationships, Related Transactions, and Director Independence
|
Item 14. |
Principal Accountant Fees and Services
|
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}
|
|
4.1+
|
Description of CTBI’s Securities Registered under Section 12 of the Securities Exchange Act of 1934
|
10.1*
|
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}
|
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 to Form 10-K for the fiscal year ended December 31, 2006 under SEC file no. 000-111-29}
|
10.4*
|
Community Trust Bancorp, Inc. 1998 Stock Option Plan {incorporated by reference to registration statement no. 333-74217}
|
10.5*
|
Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated by reference to Proxy Statement dated March 24, 2006}
|
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 to Form 10-K for the
fiscal year ended December 31, 2001 under SEC file no. 000-111-29}
|
10.7*
|
Senior Management Incentive Compensation Plan (2023) {incorporated herein by reference to current report on Form 8-K dated January 24, 2023}
|
10.8*
|
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}
|
10.9*
|
Employee Incentive Compensation Plan (2023) {incorporated herein by reference to current report on Form 8-K dated January 24, 2023}
|
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. 2021 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to current report on Form 8-K dated January 26, 2021}
|
|
Community Trust Bancorp, Inc. 2022 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to current report on Form 8-K dated January 25, 2022}
|
|
Amendment to Community Trust Bancorp, Inc. 2022 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to current report on Form 8-K dated February 3, 2022}
|
|
Community Trust Bancorp, Inc. 2023 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to current report on Form 8-K dated January 24, 2023}
|
|
21+
|
Subsidiaries of the Registrant
|
23.1+
|
Consent of FORVIS, LLP, Independent Registered Public Accounting Firm
|
31.1+
|
Certification of Principal Executive Officer (Mark A. Gooch, Vice Chairman, President, and Chief Executive Officer)
|
31.2+
|
Certification of Principal Financial Officer (Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer)
|
32.1+
|
Certification of Mark A. Gooch, Vice Chairman, President, and Chief Executive Officer, 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
|
Community Trust Bancorp, Inc. Dividend Reinvestment Plan, as amended December 20, 2013 {incorporated by reference to registration statement no. 333-193011}
|
|
101.INS
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
Item 16. |
Form 10-K Summary
|
COMMUNITY TRUST BANCORP, INC.
|
||
February 28, 2023
|
By:
|
/s/ Mark A. Gooch
|
Mark A. Gooch
|
||
Vice Chairman, President, and Chief Executive
Officer
|
/s/ Kevin J. Stumbo
|
|
Kevin J. Stumbo
|
|
Executive Vice President, Chief Financial Officer,
|
|
and Treasurer
|
February 28, 2023
|
/s/ M. Lynn Parrish
|
Chairman of the Board
|
M. Lynn Parrish
|
||
February 28, 2023
|
/s/ Mark A. Gooch
|
Vice Chairman, President, and Chief Executive Officer
|
Mark A. Gooch
|
||
February 28, 2023
|
/s/ Kevin J. Stumbo
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
Kevin J. Stumbo
|
||
February 28, 2023
|
/s/ Charles J. Baird
|
Director
|
Charles J. Baird
|
||
February 28, 2023
|
/s/ Franklin H. Farris, Jr.
|
Director
|
Franklin H. Farris, Jr.
|
||
February 28, 2023
|
/s/ Eugenia “Crit” Luallen
|
Director
|
Eugenia “Crit” Luallen
|
||
February 28, 2023
|
/s/ Ina Michelle Matthews
|
Director
|
Ina Michelle Matthews
|
||
February 28, 2023
|
/s/ James E. McGhee, II
|
Director
|
James E. McGhee II
|
||
February 28, 2023
|
/s/ Franky Minnifield
|
Director
|
Franky Minnifield
|
||
February 28, 2023
|
/s/ Anthony W. St. Charles
|
Director
|
Anthony W. St. Charles
|
||
February 28, 2023
|
/s/ Chad C. Street
|
Director
|
Chad C. Street
|
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%
|
/s/ FORVIS, LLP
|
(Formerly BKD, LLP)
|
Louisville, Kentucky
|
February 28, 2023
|
(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 operations and cash flows of CTBI as of, and for, the
periods presented in this report;
|
(4) |
CTBI’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of CTBI’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
|
(d) |
disclosed in this report any change in CTBI’s internal control over financial reporting that occurred during CTBI’s most recent fiscal quarter (CTBI’s fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonable likely to materially affect, CTBI’s internal control over financial reporting; and
|
(5) |
CTBI’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI’s auditors and the audit committee of CTBI’s board of directors (or persons performing the
equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI’s ability to record, process, summarize and report
financial information and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI’s internal control over financial reporting.
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
|
Vice Chairman, President, and Chief Executive Officer
|
|
February 28, 2023
|
(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 operations and cash flows of CTBI as of, and for, the
periods presented in this report;
|
(4) |
CTBI’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined
in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
evaluated the effectiveness of CTBI’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
|
(d) |
disclosed in this report any change in CTBI’s internal control over financial reporting that occurred during CTBI’s most recent fiscal quarter (CTBI’s fourth fiscal quarter in the case of an annual report) that has materially affected, or
is reasonable likely to materially affect, CTBI’s internal control over financial reporting; and
|
(5) |
CTBI’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI’s auditors and the audit committee of CTBI’s board of directors (or persons performing the
equivalent functions):
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI’s ability to record, process, summarize and report financial
information and
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI’s internal control over financial reporting.
|
/s/ Kevin J. Stumbo
|
|
Kevin J. Stumbo
|
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
|
February 28, 2023
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
|
Vice Chairman, President, and Chief Executive Officer
|
|
February 28, 2023
|
/s/ Kevin J. Stumbo
|
|
Kevin J. Stumbo
|
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
|
February 28, 2023
|
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end
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets: | ||
Debt securities available-for-sale at amortized cost | $ 1,430,605 | $ 1,461,829 |
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) | 17,918,280 | 17,843,081 |
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands |
Common Stock [Member] |
Capital Surplus [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] |
Total |
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Capital Surplus [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member] |
---|---|---|---|---|---|---|---|---|---|---|
Balance at Dec. 31, 2019 | $ 88,966 | $ 224,907 | $ 296,760 | $ 4,253 | $ 614,886 | $ 88,966 | $ 224,907 | $ 294,394 | $ 4,253 | $ 612,520 |
Balance (ASU 2016-13 [Member]) at Dec. 31, 2019 | $ (2,366) | $ (2,366) | ||||||||
Balance (in shares) at Dec. 31, 2019 | 17,793,165 | 17,793,165 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll forward] | ||||||||||
Net income | 59,504 | 59,504 | ||||||||
Other comprehensive income (loss) | 9,315 | 9,315 | ||||||||
Cash dividends declared | (27,160) | (27,160) | ||||||||
Issuance of common stock | $ 226 | 700 | 926 | |||||||
Issuance of common stock (in shares) | 45,341 | |||||||||
Repurchase of common stock | $ (163) | (936) | (1,099) | |||||||
Repurchase of common stock (in shares) | (32,664) | |||||||||
Issuance of restricted stock | $ 108 | (108) | 0 | |||||||
Issuance of restricted stock (in shares) | 21,544 | |||||||||
Vesting of restricted stock | $ (85) | 85 | 0 | |||||||
Vesting of restricted stock (in shares) | (16,985) | |||||||||
Stock-based compensation | 859 | 859 | ||||||||
Balance at Dec. 31, 2020 | $ 89,052 | 225,507 | 326,738 | 13,568 | 654,865 | |||||
Balance (in shares) at Dec. 31, 2020 | 17,810,401 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll forward] | ||||||||||
Net income | 87,939 | 87,939 | ||||||||
Other comprehensive income (loss) | (18,416) | (18,416) | ||||||||
Cash dividends declared | (27,927) | (27,927) | ||||||||
Issuance of common stock | $ 205 | 760 | 965 | |||||||
Issuance of common stock (in shares) | 41,168 | |||||||||
Issuance of restricted stock | $ 46 | (46) | 0 | |||||||
Issuance of restricted stock (in shares) | 9,193 | |||||||||
Vesting of restricted stock | $ (88) | 88 | 0 | |||||||
Vesting of restricted stock (in shares) | (17,681) | |||||||||
Stock-based compensation | 776 | 776 | ||||||||
Balance at Dec. 31, 2021 | $ 89,215 | 227,085 | 386,750 | (4,848) | $ 698,202 | |||||
Balance (in shares) at Dec. 31, 2021 | 17,843,081 | 17,843,081 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll forward] | ||||||||||
Net income | 81,814 | $ 81,814 | ||||||||
Other comprehensive income (loss) | (124,304) | (124,304) | ||||||||
Cash dividends declared | (29,968) | (29,968) | ||||||||
Issuance of common stock | $ 271 | 770 | 1,041 | |||||||
Issuance of common stock (in shares) | 54,125 | |||||||||
Issuance of restricted stock | $ 252 | (252) | 0 | |||||||
Issuance of restricted stock (in shares) | 50,438 | |||||||||
Vesting of restricted stock | $ (147) | 147 | 0 | |||||||
Vesting of restricted stock (in shares) | (29,364) | |||||||||
Stock-based compensation | 1,262 | 1,262 | ||||||||
Balance at Dec. 31, 2022 | $ 89,591 | $ 229,012 | $ 438,596 | $ (129,152) | $ 628,047 | |||||
Balance (in shares) at Dec. 31, 2022 | 17,918,280 | 17,918,280 |
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||
Cash dividends declared (in dollars per share) | $ 1.68 | $ 1.57 | $ 1.53 |
Accounting Policies |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Accounting Policies |
1. Accounting Policies
Basis of Presentation – The consolidated financial statements include Community Trust Bancorp,
Inc. (“CTBI”) and our subsidiaries, including our 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 credit losses, goodwill, the valuation of deferred tax assets, and the valuation of financial instruments.
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 credit 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 (“HTM”) securities are those which we have the positive intent and ability to hold to maturity and are
reported at amortized cost. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, 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 HTM securities) shall be classified as
available-for-sale (“AFS”) securities.
We do not have any securities that are classified as trading securities. AFS 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.
For AFS debt securities in an unrealized loss position, we evaluate the securities to determine whether the decline in the fair value
below the amortized cost basis (impairment) is due to credit-related factors or non-credit related factors. Any impairment that is not credit-related is recognized in accumulated other comprehensive income, net of tax. Credit-related impairment is
recognized as an allowance for credit losses (“ACL”) for AFS debt securities on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Accrued interest
receivable on AFS debt securities is excluded from the estimate of credit losses. Both the ACL for AFS debt securities and the adjustment to net income may be reversed if conditions change. However, if we intend to sell an impaired AFS debt
security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost
basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL for AFS debt securities in this situation.
In evaluating AFS debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell
such securities, we consider the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews
of the issuers’ financial condition, among other factors. There were no credit related factors underlying unrealized losses on AFS debt securities at December 31, 2022 and December 31, 2021, therefore, no ACL for AFS securities was recorded.
Changes in the ACL for AFS debt securities are recorded as expense. Losses are charged against the ACL for AFS debt securities when
management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
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.
HTM securities are subject to an allowance for lifetime expected credit losses, determined by adjusting historical loss information for
current conditions and reasonable and supportable forecasts. The forward-looking evaluation of lifetime expected losses will be performed on a pooled basis for debt securities that share similar risk characteristics. These allowances for expected
losses must be made by the holder of the HTM debt security when the security is purchased. At December 31, 2022 and 2021, CTBI held no
securities designated as held-to-maturity.
CTBI accounts for equity securities in accordance with ASC 321, Investments – 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 in 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. As permitted
by ASC 321-10-35-2, CTBI can make an irrevocable election to subsequently measure an equity security without a readily determinable fair value, and all identical or similar investments of the same issuer, including future purchases of identical or
similar investments of the same issuer, at fair value. CTBI has made this election for our Visa Class B equity securities. 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 credit losses, and unamortized deferred fees or costs and premiums. 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. A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) 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, or commitments as a yield adjustment.
Leases – CTBI accounts for leases
under ASC 842, recording a right-of-use asset and a lease liability for all leases with terms longer than 12 months. The right-of-use asset represents the right to use the asset under lease for the lease term, and the lease liability represents the
contractual obligation to make lease payments. The right-of-use asset is tested for impairment whenever events or changes in circumstances indicate the carrying value might not be recoverable. Leases are classified as either finance or operating,
with classification affecting the pattern of expense recognition in the income statement. A lease is 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. Right-of-use assets and lease liabilities are recognized at lease commencement
based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate on a collateralized basis, over a similar term at the lease commencement date and may be re-measured for certain
modifications or the company’s exercise of options (renewal, extension, or termination) under the lease. Right-of-use assets are further adjusted for prepaid rent, lease incentives, and initial direct costs, if any.
Allowance for Credit Losses – CTBI accounts for the allowance for credit losses under ASC 326. CTBI
measures expected credit losses of financial assets on a collective (pool) basis using loss-rate methods when the financial assets share similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual
basis. Regardless of an initial measurement method, once it is determined that foreclosure is probable, the allowance for credit losses is measured based on the fair value of the collateral as of the measurement date. As a practical expedient,
the fair value of the collateral may be used for a loan when determining the allowance for credit losses for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is
experiencing financial difficulty. The fair value shall be adjusted for selling costs when foreclosure is probable. For collateral-dependent financial assets, the credit loss expected may be zero if the fair value less costs to sell exceed the
amortized cost of the loan. Loans shall not be included in both collective assessments and individual assessments.
In the event that collection of principal becomes uncertain, CTBI has policies in place to reverse accrued interest in a timely manner. Therefore, CTBI elected
Accounting Standards Update (“ASU”) 2019-04 which allows that accrued interest would continue to be presented separately and not part of the amortized cost of the loan. The methodology used by CTBI is developed using the current loan balance,
which is then compared to amortized cost balances to analyze the impact. The difference in amortized cost basis versus consideration of loan balances impacts the allowance for credit losses calculation by 1 basis point and is considered immaterial. The primary difference is for indirect lending premiums.
We maintain an allowance for credit losses (“ACL”) at a level that is appropriate to cover estimated credit losses on individually evaluated loans, 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 ACL.
We
utilize an internal risk grading system for commercial credits. Those credits that meet the following criteria are subject to individual evaluation: the loan has an outstanding bank share balance of $1 million or greater and meets one of the following criteria: (i) has a criticized risk rating, (ii) is in nonaccrual status, (iii) is a TDR, or (iv) is 90 days or more past due. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies,
are evaluated. 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 loan segments not subject to individual evaluation.
Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ACL for these loans is measured in pools with similar risk characteristics under ASC 326.
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. For commercial loans greater than $1
million and classified as criticized, TDR, or nonaccrual, a specific reserve is established if a loss is determined to be possible and then charged-off once it is probable. 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 (five 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. With the implementation of ASC 326, weighted average life calculations were
completed as a tool to determine the life of CTBI’s various loan segments. Vintage modeling was used to determine the life of loan losses for consumer and residential real estate loans. Static pool modeling was used to determine the life of loan
losses for commercial loan segments. Qualitative factors used to derive CTBI’s total ACL include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming
loans, trends in loan losses, and underwriting exceptions. Forecasting factors including unemployment rates and industry specific forecasts for industries in which our total exposure is 5% of capital or greater are also included as factors in the ACL model. Management continually reevaluates the other subjective factors included in our ACL 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. 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.
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.
Troubled Debt Restructurings – Troubled
debt restructurings are certain loans that have been modified 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 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 troubled debt restructurings, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.
Other Real Estate Owned – When
foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current fair value less expected sales costs. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated
appraisal reflects a fair value below the current book value, a charge is booked to current earnings to reduce the property to its new fair 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 (i) the assets have been isolated from CTBI—put presumptively beyond the reach of the transferor
and its creditors, even in bankruptcy or other receivership, (ii) 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 (iii) 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.
Revenue Recognition – 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 banking 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:
Advertising Expense – It is CTBI’s policy to expense advertising costs in the period in which they are incurred.
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 our consolidated financial statements. During the years ended December 31, 2022, 2021, and 2020, 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 our 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 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 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 14 below. CTBI accounts for this plan under the recognition and measurement principles of ASC 718, Share-Based Payment. Share-based compensation restricted and performance-based stock units/awards are classified as equity awards and accounted for under the treasury stock method. Compensation expense for
non-vested stock units/awards is based on the fair value of the award on the measurement date, which, for CTBI, is the date of the grant and is recognized ratably over the vesting or performance period of the award. The fair value of non-vested stock
units/awards is generally the market price of CTBI’s stock on the date of grant. CTBI accounts for forfeitures on an actual basis.
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 AFS securities and unrealized appreciation (depreciation) on AFS 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.
New Accounting Standards –
➢ Facilitation of the Effects of Reference Rate Reform on
Financial Reporting – In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extends the period of time preparers can utilize the reference rate reform
relief guidance. The amendments in ASU No. 2022-06 are effective for all entities upon issuance. In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial
Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide relief during the
temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (“LIBOR”) would cease being published. The amendments in ASU No. 2020-04 provide optional
guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and provide optional expedients and exceptions for applying GAAP to contracts, hedging
relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU applies only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to
reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. In 2021, the UK Financial Conduct Authority
delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU No. 2022-06 defers the sunset
date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. At this time, we do not anticipate any material adverse impact to our business operation or
financial results during the period of transition.
➢ Troubled Debt Restructurings and Vintage Disclosures – In February 2022, the FASB
issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDR by creditors in Subtopic 310-40, Receivables—Troubled
Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and
measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan.
Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20,
Financial Instruments—Credit Losses—Measured at Amortized Cost, in the vintage disclosures required by paragraph 326-20-50-6. The amendments in the ASU are for fiscal periods beginning after December 22, 2022, including interim periods within those
fiscal years. The changes can be early adopted, separately by topic. We do not anticipate a significant impact to our consolidated financial statements.
➢ Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement Topic 820: Fair Value Measurement of Equity Securities
Subject to Contractual Sale Restrictions. The FASB issued this ASU to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of
an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments
in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that
an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in ASU also require the following disclosures for equity securities subject to contractual sale restrictions: (1) the fair value
of equity securities subject to contractual sale restrictions reflected in the balance sheet; (2) the nature and remaining duration of the restriction(s); and (3) the circumstances that could cause a lapse in the restriction(s). For public
business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have
not yet been issued or made available for issuance. We do not anticipate a significant impact to our consolidated financial statements.
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Cash and Due from Banks and Interest Bearing Deposits |
12 Months Ended |
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Dec. 31, 2022 | |
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
At December 31, 2022, CTBI had cash accounts which exceeded federally insured limits, and therefore were not subject to FDIC insurance,
with $72.6 million in deposits with the Federal Reserve, $26.6 million in deposits with U.S. Bank, $1.4 million in deposits with Fifth
Third Bank, $4.8 million in deposits with the Federal Home Loan Bank, and $3.0 million in deposits with Raymond James.
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Securities |
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Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
3. Securities
Debt securities are classified into HTM and AFS categories. HTM securities are those that CTBI has the positive intent and ability to
hold to maturity and are reported at amortized cost. AFS securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management, or other reasons. AFS securities are reported at fair value, with unrealized gains or
losses included as a separate component of equity, net of tax. As of December 31, 2022 and December 31, 2021, CTBI had no HTM
securities.
The amortized cost and fair value of debt securities at December 31, 2022 are summarized as follows:
Available-for-Sale
The amortized cost and fair value of debt securities at December 31, 2021 are summarized as follows:
Available-for-Sale
The amortized cost and fair value of debt securities at December 31, 2022 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 2022, we had a net securities loss of $168
thousand. There was a net loss of $81 thousand realized on sales and calls of AFS securities, and an unrealized loss of $87 thousand from the fair value adjustment of equity securities. There was a net loss of $158 thousand realized in 2021 and a net gain of $1.8 million realized in 2020.
Equity Securities at Fair Value
CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value. Equity securities at fair value as of December 31, 2022 were $2.2 million, as a result of an $87 thousand decrease in the fair value in 2022.
The fair value of equity securities decreased $218 thousand in 2021. No equity securities were sold during 2022 or 2021.
The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $725.0 million at
December 31, 2022 and $545.6 million at December 31, 2021.
The amortized cost of securities sold under agreements to repurchase amounted to $316.9 million at December 31, 2022 and $314.1 million at December 31, 2021.
CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of December 31, 2022 indicates
that all impairment is considered temporary, market and interest rate driven, and not credit-related. The percentage of total debt securities with unrealized losses as of December 31, 2022 was 97.4% compared to 72.4% as of December 31, 2021. The following table provides
the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2022 that are not deemed to have credit
losses. As stated above, CTBI had no HTM securities as of December 31, 2022.
Available-for-Sale
The analysis performed as of December 31, 2021 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related. The following table provides the amortized cost, gross unrealized losses, and fair value,
aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2021
that are not deemed to be other-than-temporarily impaired. As stated above, CTBI had no HTM securities as of December 31, 2021.
Available-for-Sale
U.S. Treasury and Government Agencies
The unrealized losses in U.S. Treasury and government agencies were caused by interest rate changes. 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 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.
State and Political Subdivisions
The unrealized losses in securities of state and political subdivisions were caused by interest rate changes. 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 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.
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 changes. CTBI expects
to recover the amortized cost basis over the term of the securities. 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.
Asset-Backed Securities
The unrealized losses in asset-backed securities were caused by interest rate changes. 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 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.
|
Loans |
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans |
4. Loans
Major classifications of loans, net of unearned income, deferred loan origination costs and fees, and net premiums on acquired loans, are
summarized as follows:
The loan
portfolios presented above are net of unearned fees and unamortized premiums. Unearned fees included above totaled $1.0 million as of
December 31, 2022 and $4.0 million as of December 31, 2021, while the unamortized premiums on the indirect lending portfolio totaled $28.5 million as of December 31, 2022 and $24.1
million as of December 31, 2021.
CTBI has
segregated and evaluates our loan portfolio through ten portfolio segments with similar risk characteristics. 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.
Hotel/motel
loans are a significant concentration for CTBI, representing approximately 9.3% of total loans. This industry has unique risk
characteristics as it is highly susceptible to changes in the domestic and global economic environments, which can cause the industry to experience substantial volatility. Additionally, any hotel/motel construction loans would be included in this
segment as CTBI’s construction loans are primarily completed as one loan going from construction to permanent financing. 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.
Commercial
real estate residential loans are commercial purpose construction and permanent financed loans for commercial purpose 1-4 family/multi-family properties. 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.
Commercial
real estate nonresidential loans are secured by nonfarm, nonresidential 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. Construction for commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing.
Dealer
floorplans consist of loans to dealerships to finance inventory and are collateralized under a blanket security agreement and without specific liens on individual units. This risk is mitigated by the use of periodic inventory audits. These audits are
performed monthly and follow up is required on any out of compliance items identified. These audits are subject to increasing frequency when fact patterns suggest more scrutiny is required.
Commercial
other loans consist of agricultural loans, receivable financing, 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 equipment, or other assets, although such loans may be uncollateralized but guaranteed.
CTBI
participation in the Paycheck Protection Program (“PPP”) established by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) resulted in the creation of a new loan segment of unsecured commercial other loans that are one hundred
percent guaranteed by the U.S. Small Business Administration (“SBA”). These loans, which are subject to forgiveness, have maturities of either two or three to five years, depending on when the loan was made. These loans currently have no
allowance for credit losses.
Residential
real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans and also include real estate construction loans which are typically for owner-occupied properties. The terms of the real estate
construction loans are generally short-term with permanent financing upon completion. As a policy, CTBI holds adjustable rate loans and sells the majority of our 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 primarily 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 primarily fixed rate consumer 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 $0.1 million at December 31, 2022 and $2.6 million at December 31, 2021.
The following tables present the balance in the
ACL for the years ended December 31, 2022 and December 31, 2021.
CTBI
derived our ACL balance by using vintage modeling for the consumer and residential portfolios. Static pool models incorporating losses by credit risk rating were developed to determine credit loss balances for the commercial loan segments.
Qualitative loss factors are based on CTBI’s judgment of delinquency trends, level of nonperforming loans, trend in loan losses, supervision and administration, quality control
exceptions, and reasonable and supportable forecasts based on unemployment rates and industry concentrations. CTBI has determined that twelve months
represents a reasonable and supportable forecast period and reverts back to a historical loss rate immediately. CTBI leverages economic projections from reputable and independent third parties to form our loss driver forecasts over the twelve
month forecast period. Other internal and external indicators of economic forecasts are also considered by CTBI when developing the forecast metrics.
CTBI also has an inherent model risk allocation included in our ACL calculation to allow for certain known model limitations as well as
other potential risks not quantified elsewhere. Management has identified the following known model limitations and made adjustments through this portion of the calculation for them:
(1) The inability to
completely identify revolving lines of credit within the commercial other segment. Management had to make assumptions regarding commercial renewals as those renewals are not tracked well by our loan system.
(2) The inability within
the model to estimate the value of modifications made under TDRs. Management has manually calculated the estimated impact based on research of modified terms for TDRs.
With
the continued impact of global uncertainty, the current historically high rate of inflation, the significant rising rate environment, and the fact that there is no immediate end foreseen, these have been identified as significant specific events that
could impact our customers’ ability to pay. As segments stabilize, these allocations are adjusted with reductions totaling $0.9 million
made to the segments during 2022. Management continues to have a significant event qualitative factor to anticipate the continued impact of the above factors.
Provision for credit losses for the year 2022 was $4.9 million compared to a recovery of $6.4 million during the year 2021. Our reserve coverage (allowance for credit losses to nonperforming loans) at December 31, 2022 was 300.4% compared to 251.2% at December 31, 2021. Our credit loss
reserve as a percentage of total loans outstanding at December 31, 2022 was 1.24% compared to 1.22% at December 31, 2021.
Refer to
note 1 to the consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans and loans 90 days past due and still accruing segregated by class of loans for both December 31, 2022 and December 31, 2021 were
as follows:
CTBI recognized $44 thousand in interest income on the above nonaccrual loans for the year ended December 31, 2022 compared to $82 thousand for the year ended December 31, 2021.
Discussion of the Nonaccrual Policy
The accrual of interest
income on loans 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 the collection of interest is doubtful. Cash
payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured. Any loans greater than 90 days past due must be well secured and in the process of collection to continue accruing interest. See note 1 to the consolidated financial statements for further discussion on our
nonaccrual policy.
The following tables present CTBI’s loan portfolio aging
analysis, segregated by class, as of December 31, 2022 and December 31, 2021
(includes loans 90 days past due and still accruing as well):
The risk characteristics of CTBI’s material portfolio segments are as follows:
Hotel/motel loans are a significant concentration for CTBI, representing approximately 9.3% of total loans. This industry has unique risk characteristics as it is highly susceptible to changes in the domestic and global economic environments, which can cause the
industry to experience substantial volatility. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Hotel/motel 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. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade
criteria. Commercial construction loans generally are made to customers for the purpose of building income-producing properties, and any hotel/motel construction loan would be included in this segment. 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 residential loans are commercial purpose construction and permanent financed loans for commercial purpose 1-4
family/multi-family properties. All commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and risk
grade criteria. Commercial residential 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 nonresidential loans are secured by nonfarm, nonresidential properties, farmland, and other commercial real
estate. Construction for commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing. All commercial real estate loans are viewed primarily as cash flow
loans and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade criteria. Commercial nonresidential 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.
Dealer floorplans are segmented separately as they are a unique product with unique risk factors. CTBI maintains strict processing
procedures over our floorplan product with any exceptions requested by a loan officer approved by the appropriate loan committee and the floorplan manager.
Commercial other 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 our customers. 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.
CTBI’s participation in the CARES Act PPP loan program has resulted in a new loan segment of unsecured commercial other loans that are
100% SBA guaranteed. These loans, which are subject to forgiveness, have maturities of either two or three to five years, depending on when the loans were made. These loans currently have no allowance for credit losses.
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 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 and based on last credit decision or year of origination:
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:
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 was $3.3 million at December 31, 2022. The total of consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings have
resumed with restricted parameters was $2.3 million at December 31, 2021.
In accordance with ASC 326-20-30-2, if a loan does not share risk characteristics with other pooled loans in determining the allowance for
credit losses, the loan shall be evaluated for expected credit losses on an individual basis. Of the loans that CTBI has individually evaluated, the loans listed below by segment are those that are collateral dependent:
The hotel/motel, commercial real estate
residential, and commercial real estate nonresidential segments are all collateralized with real estate. The two loans listed in the commercial other segment at December 31, 2022 are collateralized by inventory, equipment, and accounts receivable.
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, 2022 and 2021:
No
charge-offs have resulted from modifications for any of the presented periods. We had commitments to extend additional credit in the amount of $40
thousand and $52 thousand at December 31, 2022 and 2021, respectively, 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 a loan modified in a troubled debt restructuring subsequently defaults, 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. See below for defaulted restructured loans at December 31, 2022 and 2021.
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Mortgage Banking and Servicing Rights |
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Mortgage Banking and Servicing Rights [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 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
, and ancillary fees and monthly servicing fees, which are recorded in . Costs of servicing loans are charged to expense as incurred. Changes in fair 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 $783 million, $807
million, and $650 million at December 31, 2022,
2021, and 2020,
respectively. Servicing loans for others generally consist 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 $3.0 million, $2.6 million, and $2.0 million at December 31, 2022, 2021, and 2020, respectively.
Activity for capitalized MSRs using the fair value method is as follows:
The fair values of capitalized MSRs were $8.5
million, $6.8 million, and $4.1
million at December 31, 2022, 2021,
and 2020, respectively. Fair values for the years ended December 31, 2022, 2021, and 2020 were determined by third-party valuations
with a resulting 10.0% average discount rate in 2022 compared to the 10.1% average discount rate over the prior two years, respectively, and weighted average default rates of 1.24%, 1.39%, and 1.67%, respectively. Prepayment speeds generated using the Andrew Davidson Prepayment Model averaged 7.1%, 10.0%, and 15.7% at December 31, 2022, 2021, and 2020, 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 our MSR portfolio.
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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 2022 and 2021 is as follows:
The aggregate balances of related party deposits at December 31, 2022 and 2021 were $27.9 million and $24.9 million, respectively.
A director of CTBI is a shareholder in a law firm that provided services to CTBI and our subsidiaries during the years 2022, 2021, and 2020. Approximately $0.4 million in
legal fees and $0.1 million in expenses, $0.5
million total, were paid during 2022. Approximately $0.4 million in legal fees and $0.1 million in expenses, $0.5 million total, were paid during 2021.
Approximately $0.8 million in legal fees and $0.1
million in expenses paid on behalf of CTBI, $0.9 million total, were paid to this law firm during 2020. A refund was issued for several
years of adjustments reducing the total paid in 2020 to $0.6 million.
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Premises and Equipment |
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Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment |
7. Premises and Equipment
Premises and equipment are summarized as follows:
Depreciation and amortization of premises and equipment for 2022, 2021, and 2020 was $3.3 million, $3.2 million, and $3.5 million, respectively.
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Other Real Estate Owned |
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Other Real Estate Owned |
8. Other Real Estate Owned
Activity for other real estate owned was as follows:
Carrying costs and fair value adjustments associated with foreclosed properties were $0.5 million, $1.4 million, and $2.7 million for 2022, 2021, and 2020, 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 |
9. Deposits
Major classifications of deposits are categorized as follows:
Certificates of deposit and other time deposits of $250,000
or more at December 31, 2022 and 2021 were $203.7 million and $261.0 million, respectively.
Maturities of certificates of deposits and other time deposits are presented below:
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Borrowings |
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Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings |
10. Borrowings
Short-term debt is categorized as follows:
All federal funds purchased mature and reprice daily. See note 11 for information regarding the maturities of our repurchase agreements.
The average rates paid for federal funds purchased and repurchase agreements on December 31, 2022 were 4.07% and 2.75%, respectively.
The maximum balance for repurchase agreements at any month-end during 2022 occurred at February 28, 2022, with a month-end balance of $277.4 million.
The average balance of repurchase agreements for the year was $242.4 million.
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. In August 2019, an additional $1.5 million was purchased in the open market at a price of $1.3 million, resulting in a gain of $0.2 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 $57.8 million.
On March 15, 2022, the President of the United States of America signed into law the Adjustable Interest Rate (LIBOR) Act (as implemented by the Final Regulations (defined below), the “LIBOR Act”). Under the LIBOR Act, on the
first London banking day after June 30, 2023 (the “LIBOR Replacement Date”), a benchmark replacement recommended by the Board of Governors of the Federal Reserve System (the “Board”) will replace LIBOR in certain contracts. These contracts are those
which, after giving effect to other parts of the LIBOR Act, (i) contain no fallback provisions (including contracts which contain no fallback provisions after giving effect to certain parts of the LIBOR Act) or (ii) contain fallback provisions that
identify neither a specific non-LIBOR based benchmark replacement nor a person with the authority, right or obligation to determine a benchmark replacement. Other parts of the LIBOR Act require that fallback provisions which (i) are based in any way
on any LIBOR value, except to account for the difference between LIBOR and the benchmark replacement or (ii) require that a person (other than a benchmark administrator) conduct a poll, survey or inquiries for quotes or information concerning
interbank lending or deposit rates be disregarded and deemed null and void. The Board-recommended benchmark replacement is based on the Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York, including any
recommended spread adjustment and benchmark replacement conforming changes. In addition, the LIBOR Act creates a safe harbor protecting from liability any person (including any person with the authority to determine a benchmark replacement under the
junior subordinated debentures and the related trust preferred securities (the “TRUPS Documents”)) for the selection or use of the Board-recommended benchmark replacement or the implementation of certain technical, administrative or operational
changes relating to the implementation, administration and calculation of the Board-recommended benchmark replacement.
Under the LIBOR Act, the Board was required to promulgate regulations implementing the LIBOR Act. On December 16, 2022, the Board issued its final regulations (the “Final Regulations”) implementing the LIBOR Act. The Final
Regulations: (i) address the applicability of the LIBOR Act to various LIBOR contracts, (ii) identify the Board-selected benchmark replacements for various types of LIBOR contracts, (iii) include certain benchmark replacement conforming changes, (iv)
address the issue of preemption and (v) provide other clarifications, definitions and information.
On January 27, 2023, CTBI received notice from the trustee of the trust subsidiary, that based on their review of the TRUPS Documents, after application of the LIBOR Act and the Final Regulations, the TRUPS Documents issued by the
trust subsidiary do not provide a replacement rate for Applicable LIBOR (a “Replacement Rate”) or include other fallback provisions which would apply on the LIBOR Replacement Date. Absent an amendment to the TRUPS Documents, some other change in
applicable law, rule, regulation, or some other development, the LIBOR Act as implemented by the Final Regulations provides that (i) on and after the LIBOR Replacement Date, 3-month CME Term SOFR or 6-month CME Term SOFR (as defined in the Final
Regulations) as adjusted by the relevant spread adjustment, which is 0.26161 percent or 0.42826 percent, shall be the benchmark replacement for the Applicable LIBOR in the TRUPS Documents and (ii) all applicable benchmark replacement conforming changes (as specified
in the Final Regulations) will become an integral part of the TRUPS Documents, without any action by any party.
On November 29, 2022, the coupon rate was set at 6.35% for the March 1, 2023 distribution date, which was based on the three-month
LIBOR rate as of November 29, 2022 of 4.76% plus 1.59%.
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Repurchase Agreements |
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Repurchase Agreements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase Agreements |
11. 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 $273.8 million and $317.1 million at December 31, 2022 and December 31, 2021, 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, 2022 and December 31, 2021 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 |
12. Advances from Federal Home Loan Bank
Federal Home Loan Bank (“FHLB”) 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, 2022,
CTBI had monthly amortizing FHLB advances totaling $0.4 million at a weighted average interest rate of 0.05%.
Advances totaling $0.4
million at December 31, 2022 were collateralized by FHLB stock of $6.7 million and a blanket lien on qualifying 1-4 family first mortgage loans. As of December 31, 2022, CTBI had a $501.4 million FHLB borrowing capacity with $0.4 million in advances leaving $501.0 million available for
additional advances. The advances had fixed interest rates of 0.00% and 2.00% with a weighted average rate of 0.05%. The advances are
subject to restrictions or penalties in the event of prepayment.
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Income Taxes |
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Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
13. Income Taxes
The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows:
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 asset (liability) as of December 31 are as follows:
CTBI had a deferred tax asset for
the Kentucky net operating loss carryforward. The losses were utilized as CTBI began filing a consolidated Kentucky income tax return with CTB and CTIC beginning with the 2021 tax year. The loss deduction for 2022 was $58.4 million and for 2021 was $42.2
million. No carryforward remains.
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 2019, and state
and local income tax examinations by tax authorities for years before 2018. 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 our
subsidiaries.
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Employee Benefits |
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Employee Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefits |
14. 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). The year of service
requirement for participant contributions was changed in 2022 to 90 days of service effective January 1, 2023. The company match will
continue to begin with one year of credited service. 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 our discretion, contribute an additional percentage of covered employees’ compensation. CTBI’s matching contributions were $1.2 million, $1.1 million, and $1.2 million for the three years ended December 31, 2022, 2021, and 2020, respectively. The 401(k) Plan owned 348,859, 445,562, and 479,489 shares of CTBI’s common stock at December 31, 2022, 2021, and 2020, respectively.
Substantially all shares owned by the 401(k) Plan 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 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). 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 $1.7 million, $1.8 million, and $1.8 million for the three years ended December 31, 2022, 2021, and 2020, respectively. The ESOP owned 734,677, 774,562, and 778,269 shares of CTBI’s common stock at December 31, 2022, 2021, and 2020, 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, 2022,
CTBI maintained one active and one
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 2015 Plan has 550,000
shares authorized, 400,221 of which were available at December 31, 2022. 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, 2022:
The following table details the shares available for future issuance under the 2015 Plan at December 31, 2022.
There were no stock
options granted in 2022, 2021, or 2020.
The 2015 Plan:
There was no stock
option activity for the 2015 Plan for the years ended December 31, 2022, 2021, and 2020.
The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2022, 2021, and 2020:
The 2006 Plan:
CTBI’s stock option activity for the 2006 Plan for the years ended December 31, 2022, 2021, and 2020 is summarized as follows:
There were no nonvested options at December 31, 2022. Incentive stock options are exercisable four years from grant
date, and management retention stock options are exercisable five years from grant date. All outstanding options as of December 31, 2022 are management retention stock options. Stock options expire 10 years from the grant date if not exercised within that timeframe.
The weighted average remaining contractual term in years of the options outstanding at December 31, 2022 was 2.1 years.
There were no
options granted from the 2006 Plan during the years 2022, 2021, and 2020.
The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended
December 31, 2022, 2021,
and 2020:
There was no restricted
stock activity for the 2006 Plan for the years ended December 31, 2022, 2021, and 2020.
The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under
the plans at December 31, 2022, 2021,
and 2020 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, 2022, 2021, and 2020.
The unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2022 is expected to be recognized over a weighted-average period of 3.2 years.
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Leases |
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Leases |
15. Leases
CTBI has one finance lease for property but no material sublease or leasing arrangements for which it is the
lessor of property or equipment. CTBI has operating leases for banking and ATM locations. These leases have original remaining lease terms of 1 year to 45 years, some of which include options to renew the leases for up to 5 years. We evaluated the original lease terms for each operating lease,
some of which include options to extend the leases for up to 5 years, using hindsight. These options, some of which include variable costs related to rent escalations based on recent financial indices, such as the Consumer Price Index, where CTBI estimates future rent increases, are included
in the calculation of the lease liability and right-of-use asset when management determines it is reasonably certain the option will be exercised. CTBI determines this on each lease by considering all relevant contract-based, asset-based,
market-based, and entity-based economic factors. Right-of-use assets and lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental
borrowing rate, on a collateralized basis, over a similar term, at the lease commencement date. Right-of-use assets are further adjusted for prepaid rent, lease
incentives, and initial direct costs, if any.
The components of lease expense for the year ended December 31, 2022 were as follows:
Supplemental cash flow information related to CTBI’s operating and finance leases for the year ended December 31, 2022 was as follows:
Maturities of lease liabilities as of December 31, 2022 are as follows:
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Fair Value of Financial Assets and Liabilities |
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Fair Value of Financial Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities |
16. Fair 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 GAAP 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, 2022 and December 31, 2021 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, 2022 and December 31, 2021. There have been no significant changes in the
valuation techniques during the year ended December 31, 2022. 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 AFS 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 asset-backed securities are classified as Level 2 inputs.
In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair
value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States.
Equity Securities at Fair Value
As of December 31, 2022 and December 31, 2021, 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). Fair value for Visa Class B Stock is determined by an independent third party 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 concluded the third party 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
MSRs do not trade in an active, open market with readily observable prices. CTBI reports MSRs 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, MSRs are classified
within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements of MSRs 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 MSRs.
Level 3 Reconciliation
Following is a reconciliation of the beginning and ending balances of recurring fair value measurements, for the periods indicated,
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, 2022 and December 31, 2021 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.
Collateral Dependent Loans
The estimated fair value of collateral-dependent loans is based on the appraised fair value of the collateral, less estimated cost to
sell. Collateral-dependent 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 collateral-dependent are loans for which the repayment is expected to be provided substantially through the operation
or sale of the collateral when the borrower is experiencing financial difficulty in accordance with ASC 326-20-35-5. Fair value adjustments on collateral-dependent loans disclosed above were $1.0 million and $0.7 million for the years ended December 31, 2022 and December 31, 2021,
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 owned disclosed above were $0.2
million and $0.3 million for the years ended December 31, 2022 and December 31, 2021, 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, 2022 and December 31, 2021.
Uncertainty of Fair Value Measurements
The following is a discussion of the uncertainty of fair value measurements, the interrelationships between those inputs and other
unobservable inputs used in recurring fair value measurement, and 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 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 1.6059 and
the most recent dividend rate of 0.7227 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 value for MSRs 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, 2022 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the adoption of ASU 2016-01, the fair
values as of December 31, 2022 were measured using an exit price notion.
The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2021 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 |
17. 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 our
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, 2022, 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, 2022, we maintained a credit loss reserve recorded in other
liabilities of approximately $0.7 million 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 credit losses. Approximately 68% of the total standby
letters of credit are secured, with $19.5 million of the total $23.5 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, 2022, a credit loss reserve recorded in other liabilities of $0.7 million 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, 2022 of $119.2 million had interest rates ranging predominantly from 4.0%
to 6.50% 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, 2022.
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 our 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 $1.8 million and $3.6 million at December 31, 2022 and 2021, respectively, and
mortgage loans held for sale amounted to $0.1 million and $2.6 million for the years ended December 31, 2022 and 2021, respectively.
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Concentrations of Credit Risk |
12 Months Ended |
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Dec. 31, 2022 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk |
18. 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 our 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 credit losses are not exceeded. At December 31, 2022 and 2021, our concentrations of
hospitality industry credits were 60% and 44%
of Tier 1 Capital plus the allowance for credit losses, respectively. Lessors of residential buildings and dwellings were 41% for
each period end and lessors of non-residential buildings credits were 35% for each period end. These percentages are within our
internally established limits regarding concentrations of credit.
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Commitments and Contingencies |
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Dec. 31, 2022 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies |
19. 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, 2022 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 |
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Regulatory Matters |
20. 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 2023, approximately $111.5 million plus any 2023 net profits can be paid by CTB without
prior regulatory approval.
CTBI and CTB are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet
minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a material adverse effect on CTBI’s financial statements. Under regulatory capital adequacy
guidelines, CTBI and CTB must meet specific capital guidelines that involve quantitative measures of CTBI’s and CTB’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. Additionally, CTB
must meet specific capital guidelines to be considered well capitalized per the regulatory framework for prompt corrective action. CTBI’s and CTB’s capital amounts and classifications are also subject to qualitative judgments by regulators about
components, risk weightings, and other factors.
CTBI and CTB must maintain certain minimum capital ratios as set forth in the table below for capital adequacy purposes. On October 29,
2019, federal banking regulators adopted a final rule to simplify the regulatory capital requirements for eligible community banks and holding companies that opt-in to the community bank leverage ratio framework (the “CBLR framework”), as required by
Section 201 of the Economic Growth, Relief and Consumer Protection Act of 2018. Under the final rule, which became effective as of January 1, 2020, community banks and holding companies (which includes CTB and CTBI) that satisfy certain qualifying
criteria, including having less than $10 billion in average total consolidated assets and a leverage ratio (referred to as the “community bank leverage ratio”) of greater than 9%, were eligible to opt-in to the CBLR framework. The community bank
leverage ratio is the ratio of a banking organization’s Tier 1 capital to its average total consolidated assets, both as reported on the banking organization’s applicable regulatory filings. Accordingly, a qualifying community banking organization that has a community bank leverage ratio greater than 9% will be considered to have met: (i) the risk-based and leverage capital requirements of the generally applicable capital
rules; (ii) the capital ratio requirements in order to be considered well-capitalized under the prompt corrective action framework; and (iii) any other applicable capital or leverage requirements. Management elected to use the CBLR framework for
CTBI and CTB.
In April 2020, as directed by Section 4012 of the CARES Act, the regulatory agencies introduced temporary changes to the CBLR. These
changes, which subsequently were adopted as a final rule, temporarily reduced the CBLR requirement to 8% through the end of calendar year 2020. Beginning in calendar year 2021, the CBLR requirement was increased to 8.5% for the calendar year before
returning to 9% in calendar year 2022. CTBI’s and CTB’s CBLR ratios as of December 31, 2022 are disclosed below.
Consolidated Capital Ratios
Community Trust Bank, Inc.’s Capital Ratios
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Parent Company Financial Statements |
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Parent Company Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company Financial Statements |
21. Parent Company Financial Statements
Condensed Balance Sheets
Condensed Statements of Income and Comprehensive Income (Loss)
Condensed Statements of Cash Flows
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Revenue Recognition |
12 Months Ended |
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Dec. 31, 2022 | |
Revenue Recognition [Abstract] | |
Revenue Recognition |
22. Revenue Recognition
CTBI’s primary source of revenue is interest income generated from loans and investment securities. Interest income is recognized
according to the terms of the financial instrument agreement over the life of the loan or investment security unless it is determined that the counterparty is unable to continue making interest payments. Interest income also includes prepaid
interest fees from commercial customers, which approximates the interest foregone on the balance of the loan prepaid.
CTBI’s additional source of income, also referred to as noninterest income, includes service charges on deposit accounts, gains on sales
of loans, trust and wealth management income, loan related fees, brokerage revenue, and other miscellaneous income and is largely based on contracts with customers. In these cases, CTBI recognizes revenue when it satisfies a performance obligation
by transferring control over a product or service to a customer. CTBI considers a customer to be any party to which we will provide goods or services that are an output of CTBI’s ordinary activities in exchange for consideration. There is little
seasonality with regards to revenue from contracts with customers and all inter-company revenue is eliminated when CTBI’s financial statements are consolidated.
Generally, CTBI enters into contracts with customers that are short-term in nature where the performance obligations are fulfilled and
payment is processed at the same time. Such examples include revenue related to merchant fees, interchange fees, and investment services income. In addition, revenue generated from existing customer relationships such as deposit accounts are also
considered short-term in nature, because the relationship may be terminated at any time and payment is processed at the time performance obligations are fulfilled. As a result, CTBI does not have contract assets, contract liabilities, or related receivable accounts for contracts with customers. In cases where collectability is a concern, CTBI does not
record revenue.
Generally, the pricing of transactions between CTBI and each customer is either (i) established within a legally enforceable contract
between the two parties, as is the case with loan sales, or (ii) disclosed to the customer at a specific point in time, as is the case when a deposit account is opened or before a new loan is underwritten. Fees are usually fixed at a specific amount
or as a percentage of a transaction amount. No judgment or estimates by management are required to record revenue related to these transactions and pricing is clearly identified within these contracts.
CTBI primarily operates in Kentucky and contiguous areas. Therefore, all significant operating decisions are based upon analysis of CTBI
as one operating segment.
We disaggregate our revenue from contracts with customers by contract-type and timing of revenue recognition, as we believe it best
depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. Noninterest income not generated from customers during CTBI’s ordinary activities primarily relates to mortgage servicing rights,
gains/losses on the sale of investment securities, gains/losses on the sale of other real estate owned, gains/losses on the sale of property, plant and equipment, and income from bank owned life insurance.
For more information related to our components of noninterest income, see the Consolidated Statements of Income and Comprehensive Income
above.
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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, 2022, 2021, and 2020. 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.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) |
24. Accumulated Other Comprehensive Income (Loss)
Unrealized gains (losses) on AFS securities
Amounts reclassified from accumulated other comprehensive income (loss) (“AOCI”) and the affected line items in the statements of income
during the years ended December 31, 2022, 2021, and 2020 were:
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Accounting Policies (Policies) |
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Dec. 31, 2022 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Basis of Presentation |
Basis of Presentation – The consolidated financial statements include Community Trust Bancorp,
Inc. (“CTBI”) and our subsidiaries, including our 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 credit losses, goodwill, the valuation of deferred tax assets, and the valuation of financial instruments.
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 credit 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 (“HTM”) securities are those which we have the positive intent and ability to hold to maturity and are
reported at amortized cost. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320, 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 HTM securities) shall be classified as
available-for-sale (“AFS”) securities.
We do not have any securities that are classified as trading securities. AFS 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.
For AFS debt securities in an unrealized loss position, we evaluate the securities to determine whether the decline in the fair value
below the amortized cost basis (impairment) is due to credit-related factors or non-credit related factors. Any impairment that is not credit-related is recognized in accumulated other comprehensive income, net of tax. Credit-related impairment is
recognized as an allowance for credit losses (“ACL”) for AFS debt securities on the balance sheet, limited to the amount by which the amortized cost basis exceeds the fair value, with a corresponding adjustment to earnings. Accrued interest
receivable on AFS debt securities is excluded from the estimate of credit losses. Both the ACL for AFS debt securities and the adjustment to net income may be reversed if conditions change. However, if we intend to sell an impaired AFS debt
security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount would be recognized in earnings with a corresponding adjustment to the security’s amortized cost
basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL for AFS debt securities in this situation.
In evaluating AFS debt securities in unrealized loss positions for impairment and the criteria regarding its intent or requirement to sell
such securities, we consider the extent to which fair value is less than amortized cost, whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews
of the issuers’ financial condition, among other factors. There were no credit related factors underlying unrealized losses on AFS debt securities at December 31, 2022 and December 31, 2021, therefore, no ACL for AFS securities was recorded.
Changes in the ACL for AFS debt securities are recorded as expense. Losses are charged against the ACL for AFS debt securities when
management believes the uncollectability of an AFS debt security is confirmed or when either of the criteria regarding intent or requirement to sell is met.
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.
HTM securities are subject to an allowance for lifetime expected credit losses, determined by adjusting historical loss information for
current conditions and reasonable and supportable forecasts. The forward-looking evaluation of lifetime expected losses will be performed on a pooled basis for debt securities that share similar risk characteristics. These allowances for expected
losses must be made by the holder of the HTM debt security when the security is purchased. At December 31, 2022 and 2021, CTBI held no
securities designated as held-to-maturity.
CTBI accounts for equity securities in accordance with ASC 321, Investments – 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 in 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. As permitted
by ASC 321-10-35-2, CTBI can make an irrevocable election to subsequently measure an equity security without a readily determinable fair value, and all identical or similar investments of the same issuer, including future purchases of identical or
similar investments of the same issuer, at fair value. CTBI has made this election for our Visa Class B equity securities. 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 credit losses, and unamortized deferred fees or costs and premiums. 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. A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) 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, or commitments as a yield adjustment.
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Leases |
Leases – CTBI accounts for leases
under ASC 842, recording a right-of-use asset and a lease liability for all leases with terms longer than 12 months. The right-of-use asset represents the right to use the asset under lease for the lease term, and the lease liability represents the
contractual obligation to make lease payments. The right-of-use asset is tested for impairment whenever events or changes in circumstances indicate the carrying value might not be recoverable. Leases are classified as either finance or operating,
with classification affecting the pattern of expense recognition in the income statement. A lease is 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. Right-of-use assets and lease liabilities are recognized at lease commencement
based on the present value of the remaining lease payments using a discount rate that represents our incremental borrowing rate on a collateralized basis, over a similar term at the lease commencement date and may be re-measured for certain
modifications or the company’s exercise of options (renewal, extension, or termination) under the lease. Right-of-use assets are further adjusted for prepaid rent, lease incentives, and initial direct costs, if any.
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Allowance for Credit Losses |
Allowance for Credit Losses – CTBI accounts for the allowance for credit losses under ASC 326. CTBI
measures expected credit losses of financial assets on a collective (pool) basis using loss-rate methods when the financial assets share similar risk characteristics. Loans that do not share risk characteristics are evaluated on an individual
basis. Regardless of an initial measurement method, once it is determined that foreclosure is probable, the allowance for credit losses is measured based on the fair value of the collateral as of the measurement date. As a practical expedient,
the fair value of the collateral may be used for a loan when determining the allowance for credit losses for which the repayment is expected to be provided substantially through the operation or sale of the collateral when the borrower is
experiencing financial difficulty. The fair value shall be adjusted for selling costs when foreclosure is probable. For collateral-dependent financial assets, the credit loss expected may be zero if the fair value less costs to sell exceed the
amortized cost of the loan. Loans shall not be included in both collective assessments and individual assessments.
In the event that collection of principal becomes uncertain, CTBI has policies in place to reverse accrued interest in a timely manner. Therefore, CTBI elected
Accounting Standards Update (“ASU”) 2019-04 which allows that accrued interest would continue to be presented separately and not part of the amortized cost of the loan. The methodology used by CTBI is developed using the current loan balance,
which is then compared to amortized cost balances to analyze the impact. The difference in amortized cost basis versus consideration of loan balances impacts the allowance for credit losses calculation by 1 basis point and is considered immaterial. The primary difference is for indirect lending premiums.
We maintain an allowance for credit losses (“ACL”) at a level that is appropriate to cover estimated credit losses on individually evaluated loans, 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 ACL.
We
utilize an internal risk grading system for commercial credits. Those credits that meet the following criteria are subject to individual evaluation: the loan has an outstanding bank share balance of $1 million or greater and meets one of the following criteria: (i) has a criticized risk rating, (ii) is in nonaccrual status, (iii) is a TDR, or (iv) is 90 days or more past due. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies,
are evaluated. 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 loan segments not subject to individual evaluation.
Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ACL for these loans is measured in pools with similar risk characteristics under ASC 326.
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. For commercial loans greater than $1
million and classified as criticized, TDR, or nonaccrual, a specific reserve is established if a loss is determined to be possible and then charged-off once it is probable. 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 (five 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. With the implementation of ASC 326, weighted average life calculations were
completed as a tool to determine the life of CTBI’s various loan segments. Vintage modeling was used to determine the life of loan losses for consumer and residential real estate loans. Static pool modeling was used to determine the life of loan
losses for commercial loan segments. Qualitative factors used to derive CTBI’s total ACL include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming
loans, trends in loan losses, and underwriting exceptions. Forecasting factors including unemployment rates and industry specific forecasts for industries in which our total exposure is 5% of capital or greater are also included as factors in the ACL model. Management continually reevaluates the other subjective factors included in our ACL 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. 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.
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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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Troubled Debt Restructurings |
Troubled Debt Restructurings – Troubled
debt restructurings are certain loans that have been modified 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 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 troubled debt restructurings, including those that have payment defaults, for possible impairment and recognize impairment through the allowance.
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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 value less expected sales costs. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated
appraisal reflects a fair value below the current book value, a charge is booked to current earnings to reduce the property to its new fair 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 (i) the assets have been isolated from CTBI—put presumptively beyond the reach of the transferor
and its creditors, even in bankruptcy or other receivership, (ii) 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 (iii) 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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Revenue Recognition |
Revenue Recognition – 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 banking 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:
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Advertising Expense |
Advertising Expense – It is CTBI’s policy to expense advertising costs in the period in which they are incurred.
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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 our consolidated financial statements. During the years ended December 31, 2022, 2021, and 2020, 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 our 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 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 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 14 below. CTBI accounts for this plan under the recognition and measurement principles of ASC 718, Share-Based Payment. Share-based compensation restricted and performance-based stock units/awards are classified as equity awards and accounted for under the treasury stock method. Compensation expense for
non-vested stock units/awards is based on the fair value of the award on the measurement date, which, for CTBI, is the date of the grant and is recognized ratably over the vesting or performance period of the award. The fair value of non-vested stock
units/awards is generally the market price of CTBI’s stock on the date of grant. CTBI accounts for forfeitures on an actual basis.
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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 AFS securities and unrealized appreciation (depreciation) on AFS 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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New Accounting Standards |
New Accounting Standards –
➢ Facilitation of the Effects of Reference Rate Reform on
Financial Reporting – In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, that extends the period of time preparers can utilize the reference rate reform
relief guidance. The amendments in ASU No. 2022-06 are effective for all entities upon issuance. In 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial
Reporting, which provides optional guidance to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The objective of the guidance in Topic 848 is to provide relief during the
temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (“LIBOR”) would cease being published. The amendments in ASU No. 2020-04 provide optional
guidance for a limited time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting and provide optional expedients and exceptions for applying GAAP to contracts, hedging
relationships, and other transactions affected by reference rate reform if certain criteria are met. This ASU applies only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to
reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. In 2021, the UK Financial Conduct Authority
delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, ASU No. 2022-06 defers the sunset
date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. At this time, we do not anticipate any material adverse impact to our business operation or
financial results during the period of transition.
➢ Troubled Debt Restructurings and Vintage Disclosures – In February 2022, the FASB
issued ASU 2022-02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures. The amendments in this ASU eliminate the accounting guidance for TDR by creditors in Subtopic 310-40, Receivables—Troubled
Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and
measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan.
Additionally, for public business entities, the amendments in this ASU require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20,
Financial Instruments—Credit Losses—Measured at Amortized Cost, in the vintage disclosures required by paragraph 326-20-50-6. The amendments in the ASU are for fiscal periods beginning after December 22, 2022, including interim periods within those
fiscal years. The changes can be early adopted, separately by topic. We do not anticipate a significant impact to our consolidated financial statements.
➢ Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions – In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement Topic 820: Fair Value Measurement of Equity Securities
Subject to Contractual Sale Restrictions. The FASB issued this ASU to (1) clarify the guidance in Topic 820, Fair Value Measurement, when measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of
an equity security, (2) amend a related illustrative example, and (3) introduce new disclosure requirements for equity securities subject to contractual sale restrictions that are measured at fair value in accordance with Topic 820. The amendments
in this ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that
an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. The amendments in ASU also require the following disclosures for equity securities subject to contractual sale restrictions: (1) the fair value
of equity securities subject to contractual sale restrictions reflected in the balance sheet; (2) the nature and remaining duration of the restriction(s); and (3) the circumstances that could cause a lapse in the restriction(s). For public
business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have
not yet been issued or made available for issuance. We do not anticipate a significant impact to our consolidated financial statements.
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Securities (Tables) |
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Amortized Cost and Fair Value of Available-for-sale Securities |
The amortized cost and fair value of debt securities at December 31, 2022 are summarized as follows:
Available-for-Sale
The amortized cost and fair value of debt securities at December 31, 2021 are summarized as follows:
Available-for-Sale
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Amortized Cost and Fair Value of Debt Securities by Contractual Maturity |
The amortized cost and fair value of debt securities at December 31, 2022 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 |
CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of December 31, 2022 indicates
that all impairment is considered temporary, market and interest rate driven, and not credit-related. The percentage of total debt securities with unrealized losses as of December 31, 2022 was 97.4% compared to 72.4% as of December 31, 2021. The following table provides
the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2022 that are not deemed to have credit
losses. As stated above, CTBI had no HTM securities as of December 31, 2022.
Available-for-Sale
The analysis performed as of December 31, 2021 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related. The following table provides the amortized cost, gross unrealized losses, and fair value,
aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2021
that are not deemed to be other-than-temporarily impaired. As stated above, CTBI had no HTM securities as of December 31, 2021.
Available-for-Sale
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Loans (Tables) |
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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 fees, and net premiums on acquired loans, are
summarized as follows:
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Balance in ACL |
The following tables present the balance in the
ACL for the years ended December 31, 2022 and December 31, 2021.
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Nonaccrual Loans Segregated by Class of Loans |
Refer to
note 1 to the consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans and loans 90 days past due and still accruing segregated by class of loans for both December 31, 2022 and December 31, 2021 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, 2022 and December 31, 2021
(includes loans 90 days past due and still accruing as well):
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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 and based on last credit decision or year of origination:
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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:
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Collateral Dependent Loans and Impaired Loans With/Without Specific Valuation Allowance |
In accordance with ASC 326-20-30-2, if a loan does not share risk characteristics with other pooled loans in determining the allowance for
credit losses, the loan shall be evaluated for expected credit losses on an individual basis. Of the loans that CTBI has individually evaluated, the loans listed below by segment are those that are collateral dependent:
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Troubled Debt Restructurings |
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, 2022 and 2021:
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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 a loan modified in a troubled debt restructuring subsequently defaults, 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. See below for defaulted restructured loans at December 31, 2022 and 2021.
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Mortgage Banking and Servicing Rights (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 MSRs Using Fair Value Method |
Activity for capitalized MSRs using the fair value method is as follows:
|
Related Party Transactions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity for Related Party Transactions |
Activity for related party extensions of credit during 2022 and 2021 is as follows:
|
Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment |
Premises and equipment are summarized as follows:
|
Other Real Estate Owned (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Deposits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 | |||||||||||||||||||||||||||||||||||||
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, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 and December 31, 2021 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advances from Federal Home Loan Bank [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federal Home Loan Bank Advances |
Federal Home Loan Bank (“FHLB”) 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, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Asset (Liability) |
The components of the net deferred tax asset (liability) as of December 31 are as follows:
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Employee Benefits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022:
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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, 2022, 2021,
and 2020 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, 2022, 2021, and 2020.
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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, 2022.
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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, 2022, 2021, and 2020:
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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, 2022, 2021, and 2020 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 2006 Plan for the years ended
December 31, 2022, 2021,
and 2020:
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Leases (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense |
The components of lease expense for the year ended December 31, 2022 were as follows:
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Supplemental Cash Flow Information Related to Operating and Finance Leases |
Supplemental cash flow information related to CTBI’s operating and finance leases for the year ended December 31, 2022 was as follows:
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Maturities of Lease Liabilities |
Maturities of lease liabilities as of December 31, 2022 are as follows:
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Fair Value of Financial Assets and Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Assets and Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements of 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, 2022 and December 31, 2021 and indicate the level within the fair value hierarchy of the valuation techniques.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, for the periods indicated,
using significant unobservable (Level 3) inputs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements of 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, 2022 and December 31, 2021 and indicate the level within the fair value hierarchy of the valuation techniques.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2022 and December 31, 2021.
|
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Fair Value of Financial Instruments and Levels within Fair Value Hierarchy of Valuation Techniques |
The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2022 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the adoption of ASU 2016-01, the fair
values as of December 31, 2022 were measured using an exit price notion.
The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2021 and indicates the level within the fair value hierarchy of the valuation techniques.
|
Off-Balance Sheet Transactions and Guarantees (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Transactions and Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||
Off-Balance Sheet Financial Instruments |
At December 31, 2022, CTBI had the following off-balance sheet financial instruments, whose approximate contract amounts represent
additional credit risk to CTBI:
|
Regulatory Matters (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Amounts and Ratios |
Consolidated Capital Ratios
Community Trust Bank, Inc.’s Capital Ratios
|
Parent Company Financial Statements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheets |
Condensed Balance Sheets
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Condensed Statements of Income and Comprehensive Income (loss) |
Condensed Statements of Income and Comprehensive Income (Loss)
|
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Condensed Statements of Cash Flows |
Condensed Statements of Cash Flows
|
Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (AOCI) |
Amounts reclassified from accumulated other comprehensive income (loss) (“AOCI”) and the affected line items in the statements of income
during the years ended December 31, 2022, 2021, and 2020 were:
|
Accounting Policies, Certificates of Deposit in Other Banks (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Certificates of Deposits in Other Banks [Abstract] | |
Maturity period of certificates of deposit in other banks | 18 months |
Accounting Policies, Investments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments [Abstract] | ||
Unrealized losses on ACL for AFS debt securities | $ 0 | $ 0 |
Securities held-to-maturity | $ 0 | $ 0 |
Accounting Policies, Loans (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Loans [Abstract] | |
Past due period after which loans must be well secured and in the process of collection to continue accruing interest | 90 days |
Period of current principal and interest payments for reclassifying nonaccrual loans as accruing loans | 6 months |
Accounting Policies, Premises and Equipment (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
Buildings [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 40 years |
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 2 years |
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | |
Premises and Equipment [Abstract] | |
Estimated useful life | 10 years |
Accounting Policies, Other Real Estate Owned (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022 | |
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 |
Accounting Policies, Goodwill and Core Deposit Intangible (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Goodwill and Core Deposit Intangible [Abstract] | ||
Goodwill | $ 65,490 | $ 65,490 |
Accounting Policies, Segments (Details) |
12 Months Ended |
---|---|
Dec. 31, 2022
Segment
| |
Segments [Abstract] | |
Number of operating segments | 1 |
Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Held-to-maturity [Abstract] | ||
Securities held-to-maturity | $ 0 | $ 0 |
Loans, Analysis of Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Allowance for Credit Losses [Abstract] | |||
Period of reasonable and supportable forecast | 12 months | ||
Provision for credit losses (recovery) | $ 4,905 | $ (6,386) | $ 16,047 |
Reduction in allowance for credit losses | $ (900) | ||
Allowance for credit losses to nonperforming loans | 300.40% | 251.20% | |
Credit loss reserve as percentage of total loans outstanding | 1.24% | 1.22% |
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Related party extensions of credit, beginning of year | $ 45,022 | $ 38,061 | |
New loans and advances on lines of credit | 1,813 | 10,952 | |
Repayments | (4,749) | (3,055) | |
Decrease due to changes in related parties | (19) | (936) | |
Related party extensions of credit, end of year | 42,067 | 45,022 | $ 38,061 |
Due to Related Parties [Abstract] | |||
Balances of related party deposits | 27,900 | 24,900 | |
Director Who is Shareholder in Law Firm [Member] | Law Firm [Member] | |||
Related Parties Transactions [Abstract] | |||
Legal fees | 400 | 400 | 800 |
Expenses | 100 | 100 | 100 |
Total payment to related party | $ 500 | $ 500 | 900 |
Adjusted total payment to related party after issuance of a refund | $ 600 |
Premises and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 130,262 | $ 127,154 | |
Less accumulated depreciation and amortization | (87,629) | (86,675) | |
Premises and equipment, net | 42,633 | 40,479 | |
Depreciation and amortization of premises and equipment | 3,300 | 3,200 | $ 3,500 |
Land and Buildings [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 81,345 | 80,015 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 4,797 | 4,829 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 43,531 | 40,835 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 589 | $ 1,475 |
Other Real Estate Owned, Activity For Other Real Estate Owned (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Activity for other real estate owned [Roll Forward] | |||
Beginning balance of other real estate owned | $ 3,486 | $ 7,694 | |
New assets acquired | 2,433 | 1,166 | |
Capitalized costs | 73 | 0 | |
Fair value adjustments | (285) | (857) | |
Sale of assets | (2,036) | (4,517) | |
Ending balance of other real estate owned | 3,671 | 3,486 | $ 7,694 |
Carrying cost and fair value adjustments for foreclosed properties | $ 500 | $ 1,400 | $ 2,700 |
Other Real Estate Owned, Major Classifications of Foreclosed Properties (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 3,671 | $ 3,486 |
1-4 Family [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 859 | 1,130 |
Construction/Land Development/Other [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 867 | 480 |
Multifamily [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 0 | 88 |
Non-farm/Non-residential [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 1,945 | $ 1,788 |
Deposits (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Deposits [Abstract] | ||
Noninterest bearing deposits | $ 1,394,915 | $ 1,331,103 |
Interest bearing demand deposits | 112,265 | 97,064 |
Money market deposits | 1,348,809 | 1,206,401 |
Savings | 654,380 | 632,645 |
Certificates of deposit and other time deposits of $100,000 or more | 531,424 | 654,325 |
Certificates of deposit and other time deposits less than $100,000 | 384,350 | 422,754 |
Total deposits | 4,426,143 | 4,344,292 |
Certificates of deposit and other time deposits of $250,000 or more | 203,700 | $ 261,000 |
Maturities of Time Deposits [Abstract] | ||
Total | 915,774 | |
Within 1 Year | 698,126 | |
2 Years | 148,736 | |
3 Years | 31,724 | |
4 Years | 20,744 | |
5 Years | 16,080 | |
After 5 Years | 364 | |
Certificates of Deposit and Other Time Deposits of $100,000 or More [Member] | ||
Maturities of Time Deposits [Abstract] | ||
Total | 531,424 | |
Within 1 Year | 397,480 | |
2 Years | 96,745 | |
3 Years | 19,199 | |
4 Years | 10,789 | |
5 Years | 7,057 | |
After 5 Years | 154 | |
Certificates of Deposit and Other Time Deposits Less Than $100,000 [Member] | ||
Maturities of Time Deposits [Abstract] | ||
Total | 384,350 | |
Within 1 Year | 300,646 | |
2 Years | 51,991 | |
3 Years | 12,525 | |
4 Years | 9,955 | |
5 Years | 9,023 | |
After 5 Years | $ 210 |
Borrowings, Short-term Debt (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Short-term Debt [Abstract] | ||
Repurchase agreements | $ 215,431 | $ 271,088 |
Federal funds purchased | 500 | 500 |
Total short-term debt | $ 215,931 | $ 271,588 |
Federal Funds Purchased [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 4.07% | |
Repurchase Agreements [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 2.75% | |
Maximum balance for repurchase agreements at any month-end | $ 277,400 | |
Average balance of repurchase agreements | $ 242,400 |
Borrowings, Long-term Debt (Details) - USD ($) $ in Thousands |
1 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jan. 27, 2023 |
Nov. 29, 2022 |
Apr. 02, 2007 |
Mar. 30, 2007 |
Aug. 31, 2019 |
May 31, 2017 |
Dec. 31, 2022 |
Dec. 31, 2021 |
|
3-Month CME Term SOFR [Member] | SOFR [Member] | Subsequent Event [Member] | ||||||||
Long-term debt [Abstract] | ||||||||
Term of variable rate | 3 months | |||||||
Basis spread on variable rate | 0.26161% | |||||||
6-Month CME Term SOFR [Member] | SOFR [Member] | Subsequent Event [Member] | ||||||||
Long-term debt [Abstract] | ||||||||
Term of variable rate | 6 months | |||||||
Basis spread on variable rate | 0.42826% | |||||||
Junior Subordinated Debentures [Member] | ||||||||
Long-term debt [Abstract] | ||||||||
Issuance of debt | $ 61,300 | |||||||
Long-term debt | $ 57,841 | $ 57,841 | ||||||
Interest rate on junior subordinated debentures | 6.35% | 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 | $ 61,300 | |||||||
Debt instrument, repurchased face amount | $ 1,500 | $ 2,000 | ||||||
Debt instrument, purchase price | 1,300 | 1,400 | ||||||
Gain on repurchase of debt instrument | $ 200 | $ 600 | ||||||
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 | 4.76% | |||||||
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) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | $ 1,256,226 | $ 1,455,429 |
Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 215,431 | 271,088 |
Securities Sold under Agreements to Repurchase [Member] | Asset Pledged as Collateral [Member] | ||
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | 273,800 | 317,100 |
Overnight and Continuous [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 136,574 | 111,240 |
Up to 30 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 500 | 500 |
30-90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 65,000 | 105,000 |
Greater Than 90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 13,357 | 54,348 |
U.S. Treasury and Government Agencies [Member] | ||
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | 381,932 | 295,770 |
U.S. Treasury and Government Agencies [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 26,524 | 18,632 |
U.S. Treasury and Government Agencies [Member] | Overnight and Continuous [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 21,679 | 3,176 |
U.S. Treasury and Government Agencies [Member] | Up to 30 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 34 | 16 |
U.S. Treasury and Government Agencies [Member] | 30-90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 2,979 | 5,400 |
U.S. Treasury and Government Agencies [Member] | Greater Than 90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 1,832 | 10,040 |
State and Political Subdivisions [Member] | ||
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | 265,102 | 334,203 |
State and Political Subdivisions [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 108,867 | 106,919 |
State and Political Subdivisions [Member] | Overnight and Continuous [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 96,627 | 83,375 |
State and Political Subdivisions [Member] | Up to 30 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 466 | 484 |
State and Political Subdivisions [Member] | 30-90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 9,634 | 13,633 |
State and Political Subdivisions [Member] | Greater Than 90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 2,140 | 9,427 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | 520,085 | 730,809 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 79,736 | 145,537 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Overnight and Continuous [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 17,964 | 24,689 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Up to 30 Days [Member] | Securities Sold under Agreements to Repurchase [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] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 52,387 | 85,967 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Greater Than 90 Days [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 9,385 | 34,881 |
Asset-backed Securities [Member] | ||
Investment securities available-for-sale [Abstract] | ||
Debt securities available-for-sale | 89,107 | 94,647 |
Asset-backed Securities [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 304 | 0 |
Asset-backed Securities [Member] | Overnight and Continuous [Member] | Securities Sold under Agreements to Repurchase [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 304 | 0 |
Asset-backed Securities [Member] | Up to 30 Days [Member] | Securities Sold under Agreements to Repurchase [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 |
Asset-backed Securities [Member] | 30-90 Days [Member] | Securities Sold under Agreements to Repurchase [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 |
Asset-backed Securities [Member] | Greater Than 90 Days [Member] | Securities Sold under Agreements to Repurchase [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 |
Advances from Federal Home Loan Bank (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | $ 355 | $ 375 |
Monthly Amortizing Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | 355 | $ 375 |
Within 1 Year | 22 | |
2 Years | 20 | |
3 Years | 21 | |
4 Years | 20 | |
5 Years | 21 | |
After 5 Years | 251 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank stock used as collateral for advances | 6,700 | |
FHLB maximum borrowing capacity | 501,400 | |
Federal home loan bank advances available | $ 501,000 | |
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 | 0.05% | |
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 | 0.05% | 0.05% |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses [Abstract] | |||
Current federal income tax expense | $ 14,882 | $ 16,160 | $ 12,884 |
Current state income tax expense | 1,096 | 4,214 | 786 |
Deferred federal income tax expense (benefit) | 194 | 1,138 | (2,900) |
Deferred state income tax expense | 3,056 | 1,192 | 0 |
Effect of Kentucky tax legislation benefit | 0 | 0 | (9) |
Total income tax expense | 19,228 | 22,704 | 10,761 |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | 21,219 | 23,235 | 14,755 |
Adjustments resulting from [Abstract] | |||
Tax-exempt interest | (717) | (690) | (547) |
Housing and new markets credits | (3,105) | (3,939) | (4,194) |
Bank owned life insurance | (367) | (382) | (277) |
ESOP dividend deduction | (240) | (233) | (221) |
Stock option exercises and restricted stock vesting | (1) | 25 | (10) |
Effect of KY tax legislation | 0 | 0 | (7) |
State income taxes | 3,281 | 4,270 | 621 |
Split dollar life insurance | (184) | 212 | 529 |
Other | (658) | 206 | 112 |
Total income tax expense | $ 19,228 | $ 22,704 | $ 10,761 |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | 21.00% | 21.00% | 21.00% |
Adjustments resulting from [Abstract] | |||
Tax-exempt interest | (0.70%) | (0.62%) | (0.78%) |
Housing and new markets credits | (3.07%) | (3.56%) | (5.97%) |
Bank owned life insurance | (0.36%) | (0.35%) | (0.39%) |
ESOP dividend deduction | (0.24%) | (0.21%) | (0.32%) |
Stock option exercises and restricted stock vesting | 0.00% | 0.02% | (0.01%) |
Effect of KY tax legislation | 0.00% | 0.00% | (0.01%) |
State income taxes | 3.25% | 3.86% | 0.88% |
Split dollar life insurance | (0.19%) | 0.19% | 0.75% |
Other | (0.66%) | 0.19% | 0.16% |
Total | 19.03% | 20.52% | 15.31% |
Deferred tax assets [Abstract] | |||
Allowance for credit losses | $ 11,472 | $ 10,418 | |
Interest on nonaccrual loans | 362 | 547 | |
Accrued expenses | 2,969 | 2,960 | |
Unrealized losses on AFS securities | 45,339 | 1,664 | |
Allowance for other real estate owned | 223 | 268 | |
State net operating loss carryforward | 0 | 2,308 | |
Lease liabilities | 4,398 | 3,245 | |
Other | 485 | 973 | |
Total deferred tax assets | 65,248 | 22,383 | |
Deferred tax liabilities [Abstract] | |||
Depreciation and amortization | (14,859) | (14,604) | |
FHLB stock dividends | (827) | (961) | |
Loan fee income | (1,136) | (621) | |
Mortgage servicing rights | (2,113) | (1,690) | |
Limited partnership investments | (710) | (648) | |
Right of use assets | (4,259) | (3,031) | |
Other | (1,466) | (1,374) | |
Total deferred tax liabilities | (25,370) | (22,929) | |
Net deferred tax asset (liability) | 39,878 | ||
Net deferred tax asset (liability) | (546) | ||
Amount of loss deduction | 58,400 | $ 42,200 | |
Loss carryforwards | $ 0 |
Employee Benefits, Summary (Details) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022
USD ($)
Plan
h
shares
|
Dec. 31, 2021
USD ($)
shares
|
Dec. 31, 2020
USD ($)
shares
|
|
Employee Benefits [Abstract] | |||
Number of retirement savings plan | Plan | 2 | ||
401(k) Plan [Member] | |||
Defined Contribution Plan [Abstract] | |||
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 | ||
Service requirement for participant contributions period | 90 days | ||
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 | $ | $ 1.2 | $ 1.1 | $ 1.2 |
Number of allocated shares under 401 (K) plan (in shares) | shares | 348,859 | 445,562 | 479,489 |
Employee Stock Ownership Plan ("ESOP") [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Abstract] | |||
Minimum age of employees to participate under ESOP | 21 years | ||
Minimum requisite service period to participate under ESOP | 1 year | ||
Minimum annual working hours required to participate under ESOP | h | 1,000 | ||
Maximum annual contribution percentage under ESOP | 4.00% | ||
Contributions to ESOP by employer | $ | $ 1.7 | $ 1.8 | $ 1.8 |
Number of allocated shares under ESOP (in shares) | shares | 734,677 | 774,562 | 778,269 |
Employee Benefits, Stock-Based Compensation (Details) |
1 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2016
shares
|
Dec. 31, 2022
USD ($)
Plan
$ / shares
shares
|
Dec. 31, 2021
USD ($)
$ / shares
shares
|
Dec. 31, 2020
USD ($)
$ / shares
shares
|
|||||||||||
Stock-based Compensation [Abstract] | ||||||||||||||
Number of active incentive stock option plan | Plan | 1 | |||||||||||||
Number of inactive incentive stock option plan | Plan | 1 | |||||||||||||
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) | 400,000 | |||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||
Number of nonvested options (in shares) | 0 | |||||||||||||
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 nonvested share-based compensation arrangements granted under the plan at year-end | $ | $ 2,108,000 | $ 1,093,000 | $ 1,512,000 | |||||||||||
Total fair value of shares vested for the year | $ | 1,306,000 | 664,000 | 887,000 | |||||||||||
Cash received from option exercises under all share-based payment arrangements for the year | $ | 0 | 0 | 11,000 | |||||||||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year | $ | $ 0 | $ 0 | $ 1,000 | |||||||||||
Expected period for recognition of unrecognized compensation cost | 3 years 2 months 12 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) | 20,000 | |||||||||||||
Weighted average price (in dollars per share) | $ / shares | $ 32.27 | |||||||||||||
Grants (in shares) | 0 | 0 | 0 | |||||||||||
Shares available for future issuance (in shares) | [1] | 400,000 | ||||||||||||
Restricted Stock [Member] | ||||||||||||||
Stock-based Compensation [Abstract] | ||||||||||||||
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] | |||||||||||||
Maximum number of shares to be grant to a participant (in shares) | 75,000 | |||||||||||||
Shares available for future issuance (in shares) | [1] | |||||||||||||
Performance Units [Member] | ||||||||||||||
Stock-based Compensation [Abstract] | ||||||||||||||
Number of shares issued to date (in shares) | 0 | |||||||||||||
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] | ||||||||||||||
Stock-based Compensation [Abstract] | ||||||||||||||
Number of shares issued to date (in shares) | 0 | |||||||||||||
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] | ||||||||||||||
Stock-based Compensation [Abstract] | ||||||||||||||
Shares authorized (in shares) | 550,000 | |||||||||||||
Number of shares issued to date (in shares) | 154,084 | |||||||||||||
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) | 450,659 | |||||||||||||
Forfeitures (in shares) | 0 | |||||||||||||
Shares available for future issuance (in shares) | 400,221 | 450,659 | ||||||||||||
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] | ||||||||||||||
Grants (in shares) | 0 | 0 | 0 | |||||||||||
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] | ||||||||||||||
Shares issued (in shares) | 18,069 | |||||||||||||
Grants (in shares) | (50,438) | |||||||||||||
Restricted stock activity, grants [Roll Forward] | ||||||||||||||
Outstanding at beginning of year (in shares) | 47,063 | 55,551 | 50,992 | |||||||||||
Granted (in shares) | 50,438 | 9,193 | 21,544 | |||||||||||
Vested (in shares) | (29,364) | (17,681) | (16,985) | |||||||||||
Forfeited (in shares) | 0 | 0 | 0 | |||||||||||
Outstanding at end of year (in shares) | 68,137 | 47,063 | 55,551 | |||||||||||
Restricted stock activity, weighted average fair value at grant [Roll Forward] | ||||||||||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 42.9 | $ 44.04 | $ 43.08 | |||||||||||
Granted (in dollars per share) | $ / shares | 45.15 | 38.7 | 44.64 | |||||||||||
Vested (in dollars per share) | $ / shares | 43.92 | 44.31 | 41.92 | |||||||||||
Forfeited (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 44.13 | $ 42.9 | $ 44.04 | |||||||||||
2006 Plan [Member] | Stock Options [Member] | ||||||||||||||
Options, number of shares [Roll Forward] | ||||||||||||||
Outstanding at beginning of year (in shares) | 20,000 | 20,000 | 20,495 | |||||||||||
Granted (in shares) | 0 | 0 | 0 | |||||||||||
Exercised (in shares) | 0 | 0 | (495) | |||||||||||
Forfeited/expired (in shares) | 0 | 0 | 0 | |||||||||||
Outstanding at end of year (in shares) | 20,000 | 20,000 | 20,000 | |||||||||||
Exercisable at end of year (in shares) | 20,000 | 20,000 | 20,000 | |||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 32.27 | $ 32.27 | $ 32.04 | |||||||||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||
Exercised (in dollars per share) | $ / shares | 0 | 0 | 22.81 | |||||||||||
Forfeited/expired (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||||||||
Outstanding, end of period (in dollars per share) | $ / shares | 32.27 | 32.27 | 32.27 | |||||||||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 32.27 | $ 32.27 | $ 32.27 | |||||||||||
Expiration period | 10 years | |||||||||||||
Options, additional disclosures [Abstract] | ||||||||||||||
Weighted average remaining contractual term | 2 years 1 month 6 days | |||||||||||||
Intrinsic value of options exercised | $ | $ 0 | $ 0 | $ 11,000 | |||||||||||
Intrinsic value of options exercisable | $ | 273,000 | 227,000 | 96,000 | |||||||||||
Intrinsic value of outstanding options | $ | $ 273,000 | $ 227,000 | $ 96,000 | |||||||||||
2006 Plan [Member] | Incentive Stock Option [Member] | ||||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||
Exercisable period | 4 years | |||||||||||||
2006 Plan [Member] | Management Retention Stock Options [Member] | ||||||||||||||
Options, weighted average exercise price [Abstract] | ||||||||||||||
Exercisable period | 5 years | |||||||||||||
2006 Plan [Member] | Restricted Stock [Member] | ||||||||||||||
Restricted stock activity, grants [Roll Forward] | ||||||||||||||
Outstanding at beginning of year (in shares) | 0 | 0 | ||||||||||||
Outstanding at end of year (in shares) | 0 | 0 | 0 | |||||||||||
|
Leases (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022
USD ($)
Lease
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Finance Leases [Abstract] | |||
Number of finance leases | Lease | 1 | ||
Finance lease cost [Abstract] | |||
Amortization of right-of-use assets - finance leases | $ 64 | $ 52 | |
Interest on lease liabilities - finance leases | 70 | 55 | |
Total finance lease cost | 134 | 107 | |
Short-term lease cost | 85 | 181 | |
Operating lease cost | 1,838 | 1,760 | |
Total lease cost | 2,057 | 2,048 | |
Sublease income | (249) | (253) | |
Net lease cost | 1,808 | 1,795 | |
Supplemental Cash Flow Information Related to CTBI's Operating and Finance Lease [Abstract] | |||
Finance lease - operating cash flows | 67 | 53 | |
Finance lease - financing cash flows | 24 | 19 | $ 15 |
Operating lease - operating cash flows (fixed payments) | 1,760 | 1,693 | |
Operating lease - operating cash flows (liability reduction) | 1,424 | 948 | |
New right-of-use assets - operating leases | 3,469 | 0 | |
New right-of-use assets - finance leases | $ 2,070 | $ 0 | |
Weighted average lease term - financing leases | 27 years 1 month 6 days | 24 years 7 days | |
Weighted average lease term - operating leases | 13 years 10 months 2 days | 13 years 4 months 20 days | |
Weighted average discount rate - financing leases | 4.90% | 3.70% | |
Weighted average discount rate - operating leases | 3.55% | 3.11% | |
Maturities of Operating Lease Liabilities [Abstract] | |||
2023 | $ 1,878 | ||
2024 | 1,853 | ||
2025 | 1,748 | ||
2026 | 1,731 | ||
2027 | 1,620 | ||
Thereafter | 9,393 | ||
Total lease payments | 18,223 | ||
Less imputed interest | (4,063) | ||
Total | 14,160 | $ 11,583 | |
Maturities of Finance Lease Liabilities [Abstract] | |||
2023 | 151 | ||
2024 | 155 | ||
2025 | 160 | ||
2026 | 171 | ||
2027 | 175 | ||
Thereafter | 6,362 | ||
Total lease payments | 7,174 | ||
Less imputed interest | (3,706) | ||
Total | $ 3,468 | $ 1,422 | |
Minimum [Member] | |||
Operating Leases [Abstract] | |||
Remaining lease terms | 1 year | ||
Maximum [Member] | |||
Operating Leases [Abstract] | |||
Remaining lease terms | 45 years | ||
Term of lease renewal | 5 years |
Fair Value of Financial Assets and Liabilities, Fair Value Measurements of Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | $ 1,256,226 | $ 1,455,429 |
Equity securities at fair value | 2,166 | 2,253 |
Liabilities measured - recurring basis [Abstract] | ||
Liabilities | 0 | 0 |
U.S. Treasury and Government Agencies [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 381,932 | 295,770 |
State and Political Subdivisions [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 265,102 | 334,203 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 520,085 | 730,809 |
Asset-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 89,107 | 94,647 |
Recurring [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Equity securities at fair value | 2,166 | 2,253 |
Mortgage servicing rights | 8,468 | 6,774 |
Recurring [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 381,932 | 295,770 |
Recurring [Member] | State and Political Subdivisions [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 265,102 | 334,203 |
Recurring [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 520,085 | 730,809 |
Recurring [Member] | Asset-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 89,107 | 94,647 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Equity securities at fair value | 0 | 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 - recurring basis [Abstract] | ||
Debt securities available-for-sale | 346,265 | 242,214 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Political Subdivisions [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 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 - recurring basis [Abstract] | ||
Debt securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Asset-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Equity securities at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 35,667 | 53,556 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Political Subdivisions [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 265,102 | 334,203 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 520,085 | 730,809 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 89,107 | 94,647 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Equity securities at fair value | 2,166 | 2,253 |
Mortgage servicing rights | 8,468 | 6,774 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Political Subdivisions [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Asset-backed Securities [Member] | ||
Assets measured - recurring basis [Abstract] | ||
Debt securities available-for-sale | $ 0 | $ 0 |
Fair Value of Financial Assets and Liabilities, Level 3 Reconciliation and Noninterest Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Noninterest Income [Abstract] | ||
Total gains (losses) | $ 982 | $ 210 |
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 | 2,253 | 2,471 |
Total unrealized gains (losses) included in net income | (87) | (218) |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 2,166 | 2,253 |
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | (87) | (218) |
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 | 6,774 | 4,068 |
Total unrealized gains (losses) included in net income | 1,948 | 1,274 |
Issues | 625 | 2,278 |
Settlements | (879) | (846) |
Ending balance | 8,468 | 6,774 |
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | $ 1,948 | $ 1,274 |
Fair Value of Financial Assets and Liabilities, Fair Value Measurements of Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
Assets measured-nonrecurring basis [Abstract] | ||
Collateral dependent loans | $ 2,703 | $ 1,238 |
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 | |
Nonrecurring [Member] | ||
Impaired loan (collateral dependent) [Abstract] | ||
Fair value adjustments on collateral dependent loans expense (recovery) | $ 1,000 | 700 |
Other real estate owned [Abstract] | ||
Other real estate owned, fair value adjustment | 200 | 300 |
Nonrecurring [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Collateral dependent loans | 2,703 | 1,238 |
Other real estate owned | 570 | 1,487 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Collateral dependent loans | 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] | ||
Collateral dependent loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Collateral dependent loans | 2,703 | 1,238 |
Other real estate owned | $ 570 | $ 1,487 |
Fair Value of Financial Assets and Liabilities, Quantitative Information about Unobservable Inputs (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value | $ 2,166 | $ 2,253 |
Mortgage servicing rights | 8,468 | 6,774 |
Collateral dependent loans | 2,703 | 1,238 |
Other real estate owned | $ 570 | $ 1,487 |
Conversion Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 1.6059 | |
Dividend Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.7227 | |
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 | 0.08 | 0.08 |
Mortgage servicing rights, measurement input | 0.095 | 0.10 |
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 | 0.12 | 0.12 |
Mortgage servicing rights, measurement input | 0.12 | 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 | 0.10 | 0.10 |
Mortgage servicing rights, measurement input | 0.10 | 0.101 |
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, conversion date | Dec. 31, 2025 | Dec. 31, 2024 |
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, conversion date | Dec. 31, 2029 | Dec. 31, 2028 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input, conversion date | Dec. 31, 2027 | 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 | 0.065 | 0.07 |
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 | 0.28 | 0.267 |
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 | 0.071 | 0.10 |
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 | 0 |
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 | 0.75 |
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 | 0.012 | 0.014 |
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] | ||
Collateral dependent loans, measurement input | 0.52 | 0.20 |
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] | ||
Collateral dependent loans, measurement input | 0.52 | 0.62 |
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] | ||
Collateral dependent loans, measurement input | 0.52 | 0.41 |
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 | 0.10 | 0.10 |
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 | 0.306 | 0.455 |
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 | 0.109 | 0.151 |
Fair Value of Financial Assets and Liabilities, Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Financial assets [Abstract] | ||
Debt securities available-for-sale | $ 1,256,226 | $ 1,455,429 |
Equity securities at fair value | 2,166 | 2,253 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 128,686 | 311,756 |
Certificates of deposit in other banks | 245 | 245 |
Debt securities available-for-sale | 1,256,226 | 1,455,429 |
Equity securities at fair value | 2,166 | 2,253 |
Loans held for sale | 109 | 2,632 |
Loans, net | 3,663,309 | 3,367,057 |
Federal Home Loan Bank stock | 6,676 | 8,139 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Accrued interest receivable | 19,592 | 15,415 |
Financial liabilities [Abstract] | ||
Deposits | 4,426,143 | 4,344,292 |
Repurchase agreements | 215,431 | 271,088 |
Federal funds purchased | 500 | 500 |
Advances from Federal Home Loan Bank | 355 | 375 |
Long-term debt | 57,841 | 57,841 |
Accrued interest payable | 2,237 | 1,016 |
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 | 128,686 | 311,756 |
Certificates of deposit in other banks | 0 | 0 |
Debt securities available-for-sale | 346,265 | 242,214 |
Equity securities at fair value | 0 | 0 |
Loans held for sale | 112 | 2,693 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Federal Reserve Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 1,394,915 | 1,331,103 |
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 deposit in other banks | 245 | 245 |
Debt securities available-for-sale | 909,961 | 1,213,215 |
Equity securities at fair value | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 6,676 | 8,139 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Accrued interest receivable | 19,592 | 15,415 |
Financial liabilities [Abstract] | ||
Deposits | 3,050,144 | 3,043,339 |
Repurchase agreements | 0 | 0 |
Federal funds purchased | 500 | 500 |
Advances from Federal Home Loan Bank | 380 | 400 |
Long-term debt | 0 | 0 |
Accrued interest payable | 2,237 | 1,016 |
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 deposit in other banks | 0 | 0 |
Debt securities available-for-sale | 0 | 0 |
Equity securities at fair value | 2,166 | 2,253 |
Loans held for sale | 0 | 0 |
Loans, net | 3,511,810 | 3,480,803 |
Federal Home Loan Bank stock | 0 | 0 |
Federal Reserve Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Repurchase agreements | 215,542 | 271,186 |
Federal funds purchased | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Long-term debt | 55,860 | 45,854 |
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, 2022 |
Dec. 31, 2021 |
|
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | $ 874,270 | $ 742,901 |
Mortgage loans held for sale | 109 | 2,632 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 34,721 | 32,676 |
Credit loss reserve | $ 700 | |
Percentage of standby letters of credit secured | 68.00% | |
Standby letters of credit secured by cash | $ 19,500 | |
Standby letters of credit secured | 23,500 | |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 839,549 | 710,225 |
Credit loss reserve | 700 | |
Fixed rate loan commitments amount | $ 119,200 | |
Period of commitment to sell the loans at specified prices | 60 days | |
Total mortgage loans in process | $ 1,800 | 3,600 |
Mortgage loans held for sale | $ 100 | $ 2,600 |
Commitments to Extend Credit [Member] | Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 4.00% | |
Commitments to Extend Credit [Member] | Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 6.50% | |
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, 2022 |
Dec. 31, 2021 |
|
Hospitality Industry Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 60.00% | 44.00% |
Lessors of Residential Buildings and Dwellings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 41.00% | 41.00% |
Lessors of Non-residential Buildings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 35.00% | 35.00% |
Regulatory Matters (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
---|---|---|
CBLR, Amount [Abstract] | ||
Actual Amount | $ 750,159 | $ 696,828 |
For Capital Adequacy Purposes | $ 498,148 | $ 455,594 |
CBLR, Ratio [Abstract] | ||
Actual Ratio | 0.1355 | 0.13 |
For Capital Adequacy Purposes | 0.09 | 0.085 |
Community Trust Bank, Inc [Member] | ||
Regulatory Matter [Abstract] | ||
Maximum dividend without Approval | $ 111,500 | |
CBLR, Amount [Abstract] | ||
Actual Amount | 714,727 | $ 662,125 |
For Capital Adequacy Purposes | $ 495,727 | $ 453,185 |
CBLR, Ratio [Abstract] | ||
Actual Ratio | 0.1298 | 0.1242 |
For Capital Adequacy Purposes | 0.09 | 0.085 |
Parent Company Financial Statements, Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Assets [Abstract] | ||||
Cash on deposit | $ 51,306 | $ 46,558 | ||
Goodwill | 65,490 | 65,490 | ||
Premises and equipment, net | 42,633 | 40,479 | ||
Deferred tax asset | 39,878 | 0 | ||
Other assets | 28,463 | 30,970 | ||
Total assets | 5,380,316 | 5,418,257 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Long-term debt | 57,841 | 57,841 | ||
Other liabilities | 32,134 | 31,392 | ||
Total liabilities | 4,752,269 | 4,720,055 | ||
Shareholders' equity | 628,047 | 698,202 | $ 654,865 | $ 614,886 |
Total liabilities and shareholders' equity | 5,380,316 | 5,418,257 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash on deposit | 2,933 | 3,263 | ||
Investment in and advances to subsidiaries | 679,425 | 749,002 | ||
Goodwill | 4,973 | 4,973 | ||
Premises and equipment, net | 133 | 114 | ||
Deferred tax asset | 260 | 890 | ||
Other assets | 4,808 | 5,427 | ||
Total assets | 692,532 | 763,669 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Long-term debt | 61,341 | 61,341 | ||
Other liabilities | 3,144 | 4,126 | ||
Total liabilities | 64,485 | 65,467 | ||
Shareholders' equity | 628,047 | 698,202 | ||
Total liabilities and shareholders' equity | $ 692,532 | $ 763,669 |
Parent Company Financial Statements, Condensed Statements of Income and Comprehensive Income (loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Expenses [Abstract] | |||
Interest expense | $ 28,640 | $ 15,090 | $ 25,450 |
Other expenses | 15,319 | 11,968 | 12,031 |
Income tax benefit | 19,228 | 22,704 | 10,761 |
Net income | 81,814 | 87,939 | 59,504 |
Unrealized holding gains (losses) on debt securities available-for-sale [Abstract] | |||
Unrealized holding gains (losses) arising during the period | (168,060) | (24,827) | 13,839 |
Less: Reclassification adjustments for realized gains (losses) included in net income | (81) | 60 | 1,251 |
Other comprehensive income (loss), net of tax | (124,304) | (18,416) | 9,315 |
Comprehensive income (loss) | (42,490) | 69,523 | 68,819 |
Parent Company [Member] | |||
Income [Abstract] | |||
Dividends from subsidiaries | 31,544 | 33,319 | 29,593 |
Other income | 710 | 482 | 476 |
Total income | 32,254 | 33,801 | 30,069 |
Expenses [Abstract] | |||
Interest expense | 2,060 | 1,090 | 1,519 |
Depreciation expense | 75 | 70 | 112 |
Other expenses | 4,833 | 5,878 | 3,302 |
Total expenses | 6,968 | 7,038 | 4,933 |
Income before income taxes and equity in undistributed income of subsidiaries | 25,286 | 26,763 | 25,136 |
Income tax benefit | (1,808) | (1,700) | (576) |
Income before equity in undistributed income of subsidiaries | 27,094 | 28,463 | 25,712 |
Equity in undistributed income of subsidiaries | 54,720 | 59,476 | 33,792 |
Net income | 81,814 | 87,939 | 59,504 |
Unrealized holding gains (losses) on debt securities available-for-sale [Abstract] | |||
Unrealized holding gains (losses) arising during the period | (168,060) | (24,827) | 13,839 |
Less: Reclassification adjustments for realized gains (losses) included in net income | (81) | 60 | 1,251 |
Tax expense (benefit) | (43,675) | (6,471) | 3,273 |
Other comprehensive income (loss), net of tax | (124,304) | (18,416) | 9,315 |
Comprehensive income (loss) | $ (42,490) | $ 69,523 | $ 68,819 |
Parent Company Financial Statements, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Cash flows from operating activities [Abstract] | |||
Net income | $ 81,814 | $ 87,939 | $ 59,504 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 5,219 | 5,033 | 5,346 |
Deferred taxes | 3,250 | 2,330 | (2,909) |
Stock-based compensation | 1,366 | 850 | 944 |
Changes in [Abstract] | |||
Other assets | 2,507 | 4,918 | 1,845 |
Other liabilities | 608 | (2,387) | 4,147 |
Net cash provided by operating activities | 99,684 | 115,695 | 62,379 |
Cash flows from investing activities [Abstract] | |||
Net purchases of premises and equipment | (6,218) | (2,373) | (1,482) |
Net cash used in investing activities | (280,007) | (358,620) | (693,526) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,041 | 965 | 926 |
Repurchase of common stock | 0 | 0 | (1,099) |
Dividends paid | (29,938) | (27,916) | (27,142) |
Net cash provided by (used in) financing activities | (2,747) | 216,446 | 704,699 |
Net increase (decrease) in cash and cash equivalents | (183,070) | (26,479) | 73,552 |
Cash and cash equivalents at beginning of year | 311,756 | ||
Cash and cash equivalents at end of year | 128,686 | 311,756 | |
Parent Company [Member] | |||
Cash flows from operating activities [Abstract] | |||
Net income | 81,814 | 87,939 | 59,504 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 76 | 69 | 112 |
Equity in undistributed earnings of subsidiaries | (54,720) | (59,476) | (33,792) |
Deferred taxes | 630 | 3,759 | 451 |
Stock-based compensation | 1,366 | 850 | 944 |
Changes in [Abstract] | |||
Other assets | 611 | (5,403) | (115) |
Other liabilities | (1,115) | 1,037 | (318) |
Net cash provided by operating activities | 28,662 | 28,775 | 26,786 |
Cash flows from investing activities [Abstract] | |||
Net purchases of premises and equipment | (95) | (66) | (55) |
Net cash used in investing activities | (95) | (66) | (55) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,041 | 965 | 926 |
Repurchase of common stock | 0 | 0 | (1,099) |
Dividends paid | (29,938) | (27,916) | (27,142) |
Net cash provided by (used in) financing activities | (28,897) | (26,951) | (27,315) |
Net increase (decrease) in cash and cash equivalents | (330) | 1,758 | (584) |
Cash and cash equivalents at beginning of year | 3,263 | 1,505 | 2,089 |
Cash and cash equivalents at end of year | $ 2,933 | $ 3,263 | $ 1,505 |
Revenue Recognition (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
Segment
| |
Revenue Recognition [Abstract] | |
Contract assets | $ 0 |
Contract liabilities | 0 |
Receivable accounts for contracts with customers | $ 0 |
Number of operating segments | Segment | 1 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Numerator [Abstract] | |||
Net income | $ 81,814 | $ 87,939 | $ 59,504 |
Basic earnings per share [Abstract] | |||
Weighted average shares (in shares) | 17,836,000 | 17,786,000 | 17,748,000 |
Diluted earnings per share [Abstract] | |||
Dilutive effect of equity grants (in shares) | 15,000 | 18,000 | 8,000 |
Adjusted weighted average shares (in shares) | 17,851,000 | 17,804,000 | 17,756,000 |
Earnings per share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 4.59 | $ 4.94 | $ 3.35 |
Diluted earnings per share (in dollars per share) | $ 4.58 | $ 4.94 | $ 3.35 |
Options [Member] | |||
Earnings Per Share [Abstract] | |||
Options excluded from diluted calculations (in shares) | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | $ (168) | $ (158) | $ 1,769 |
Tax expense (benefit) | 19,228 | 22,704 | 10,761 |
Net income | 81,814 | 87,939 | 59,504 |
Unrealized Gains (Losses) on AFS Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | |||
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | (81) | 60 | 1,251 |
Tax expense (benefit) | (21) | 16 | 325 |
Net income | $ (60) | $ 44 | $ 926 |
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