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Loans
 6 Months Ended
Jun. 30, 2025
Loans [Abstract]  
Loans
Note 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:

June 30, 2025
(in thousands)
   Gross Loans
    
Unearned
Fees/Costs
   
Unearned
Premiums
     Net Loans
  
Hotel/motel
  
$
477,175
    
$
0
     $
 0     $
477,175  
Commercial real estate residential
    
559,906
      
0
       0       559,906  
Commercial real estate nonresidential
    
917,526
      
(4,063
)
     0       913,463  
Dealer floorplans
    
70,270
      
0
       0       70,270  
Commercial other
    
360,828
      
(10
)
     933       361,751  
Commercial loans
    
2,385,705
      
(4,073
)
     933       2,382,565  
                                 
Real estate mortgage
    
1,109,022
      
3,650
       0       1,112,672  
Home equity lines
    
177,135
      
0
       0       177,135  
Residential loans
    
1,286,157
      
3,650
       0       1,289,807  
                                 
Consumer direct
    
150,915
      
0
       0       150,915  
Consumer indirect
    
844,753
      
503
       33,250       878,506  
Consumer loans
    
995,668
      
503
       33,250       1,029,421  
                                 
Loans and lease financing
  
$
4,667,530
    
$
80
     $
 34,183     $
 4,701,793  

December 31, 2024
(in thousands)
   Gross Loans
    
Unearned
Fees/Costs
    
Unearned
Premiums
     Net Loans
  
Hotel/motel
  
$
458,832
     $ 0     $ 0    
$
458,832
  
Commercial real estate residential
    
508,310
       0       0      
508,310
  
Commercial real estate nonresidential
    
868,993
       (3,962 )     0      
865,031
  
Dealer floorplans
    
84,956
       0       0      
84,956
  
Commercial other
    
355,568
       (18 )     0      
355,550
  
Commercial loans
    
2,276,659
       (3,980 )     0      
2,272,679
  
                                 
Real estate mortgage
    
1,039,777
       3,624       0      
1,043,401
  
Home equity lines
    
167,425
       0       0      
167,425
  
Residential loans
    
1,207,202
       3,624       0      
1,210,826
  
                                 
Consumer direct
    
152,843
       0       0      
152,843
  
Consumer indirect
    
817,893
       357       32,039      
850,289
  
Consumer loans
    
970,736
       357       32,039      
1,003,132
  
                                 
Loans and lease financing
  
$
4,454,597
     $ 1     $ 32,039    
$
4,486,637
  


CTBI has segregated and evaluates our loan portfolio through nine 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 10.1% 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 whereby all vehicle inventory is collateral against the outstanding loan without specific liens on individual units.  Advances are made for the dealer cost of individual vehicles in inventory, and the loan is repaid from the proceeds from the sale of the financed vehicle.  This risk is mitigated by the use of monthly inventory audits 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.  Additional collateral or other credit enhancements (for example, personal guarantees from dealership owners) are typically obtained to further mitigate credit risk.


 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.



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 with those loans classified as held for sale and not included in loan balances.  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.



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.


Loans identified to be sold into the secondary market are classified as held for sale and are not included in the loans balance above.  Loans held for sale are recorded at lower of cost or fair value and were $0.3 million at June 30, 2025 and $0.2 million at December 31, 2024.  Accrued interest receivable for loan balances was $18.6 million at June 30, 2025 and $18.7 million at December 31, 2024.



Allowance for Credit Losses



The following tables present the balance in the ACL for loans for the three and six months ended June 30, 2025 and June 30, 2024.

 
  
Three Months Ended
June 30, 2025
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,594
    
$
10
    
$
0
    
$
0
    
$
5,604
  
Commercial real estate residential
    
6,059
      
457
      
(41
)
    
5
      
6,480
  
Commercial real estate nonresidential
    
11,381
      
72
      
0
      
4
      
11,457
  
Dealer floorplans
    
551
      
(44
)
    
0
      
0
      
507
  
Commercial other
    
3,936
      
220
      
(551
)
    
106
      
3,711
  
Real estate mortgage
    
12,322
      
630
      
(2
)
    
3
      
12,953
  
Home equity
    
1,309
      
298
      
(7
)
    
4
      
1,604
  
Consumer direct
    
2,127
      
104
      
(199
)
    
99
      
2,131
  
Consumer indirect
    
13,682
      
470
      
(1,728
)
    
954
      
13,378
  
Total ACL
  
$
56,961
    
$
2,217
    
$
(2,528
)
  
$
1,175
    
$
57,825
  

 
  
Six Months Ended
June 30, 2025
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,208
    
$
396
    
$
0
    
$
0
    
$
5,604
  
Commercial real estate residential
    
5,467
      
1,062
      
(59
)
    
10
      
6,480
  
Commercial real estate nonresidential
    
10,307
      
1,144
      
(2
)
    
8
      
11,457
  
Dealer floorplans
    
682
      
(175
)
    
0
      
0
      
507
  
Commercial other
    
3,832
      
648
      
(955
)
    
186
      
3,711
  
Real estate mortgage
    
12,504
      
514
      
(80
)
    
15
      
12,953
  
Home equity
    
1,499
      
99
      
(7
)
    
13
      
1,604
  
Consumer direct
    
2,221
      
197
      
(467
)
    
180
      
2,131
  
Consumer indirect
    
13,248
      
1,900
      
(3,680
)
    
1,910
      
13,378
  
Total ACL
  
$
54,968
    
$
5,785
    
$
(5,250
)
  
$
2,322
    
$
57,825
  

 
  
Three Months Ended
June 30, 2024
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
4,940
    
$
(493
)
  
$
0
    
$
0
    
$
4,447
  
Commercial real estate residential
    
4,128
      
211
      
0
      
10
      
4,349
  
Commercial real estate nonresidential
    
8,178
      
478
      
0
      
50
      
8,706
  
Dealer floorplans
    
721
      
(160
)
    
0
      
0
      
561
  
Commercial other
    
3,799
      
149
      
(679
)
    
116
      
3,385
  
Real estate mortgage
    
10,325
      
1,535
      
(24
)
    
4
      
11,840
  
Home equity
    
1,304
      
8
      
0
      
6
      
1,318
  
Consumer direct
    
3,571
      
131
      
(189
)
    
91
      
3,604
  
Consumer indirect
    
13,605
      
1,113
      
(1,944
)
    
1,164
      
13,938
  
Total ACL
  
$
50,571
    
$
2,972
    
$
(2,836
)
  
$
1,441
    
$
52,148
  
 
 
Six Months Ended
June 30, 2024
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
4,592
    
$
(145
)
  
$
0
    
$
0
    
$
4,447
  
Commercial real estate residential
    
4,285
      
50
      
0
      
14
      
4,349
  
Commercial real estate nonresidential
    
7,560
      
1,093
      
0
      
53
      
8,706
  
Dealer floorplans
    
659
      
(98
)
    
0
      
0
      
561
  
Commercial other
    
3,760
      
263
      
(846
)
    
208
      
3,385
  
Real estate mortgage
    
10,197
      
1,676
      
(51
)
    
18
      
11,840
  
Home equity
    
1,367
      
(57
)
    
0
      
8
      
1,318
  
Consumer direct
    
3,261
      
934
      
(722
)
    
131
      
3,604
  
Consumer indirect
    
13,862
      
1,912
      
(3,884
)
    
2,048
      
13,938
  
Total ACL
  
$
49,543
    
$
5,628
    
$
(5,503
)
  
$
2,480
    
$
52,148
  



Nonaccrual loans and loans 90 days past due and still accruing, segregated by loan segment, as of June 30, 2025 and December 31, 2024 were as follows:

 
June 30, 2025
  
(in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loans
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Commercial real estate residential
   $
18
     $
1,158
     $
2,124
     $
3,300
  
Commercial real estate nonresidential
    
8,000
      
2,094
      
1,249
      
11,343
  
Commercial other
    
469
      
742
      
102
      
1,313
  
Total commercial loans
    
8,487
      
3,994
      
3,475
      
15,956
  
                                 
Real estate mortgage
    
0
      
3,080
      
3,760
      
6,840
  
Home equity lines
    
0
      
211
      
476
      
687
  
Total residential loans
    
0
      
3,291
      
4,236
      
7,527
  
                                 
Consumer direct
    
0
      
165
      
59
      
224
  
Consumer indirect
    
0
      
0
      
679
      
679
  
Total consumer loans
    
0
      
165
      
738
      
903
  
                                 
Loans and lease financing
  
$
8,487
    
$
7,450
    
$
8,449
    
$
24,386
  

 
December 31, 2024
  
(in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loans
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Commercial real estate residential
   $
0
     $
1,248
     $
369
     $
1,617
  
Commercial real estate nonresidential
    
8,000
      
1,641
      
3,513
      
13,154
  
Commercial other
    
246
      
1,106
      
64
      
1,416
  
Total commercial loans
    
8,246
      
3,995
      
3,946
      
16,187
  
                                 
Real estate mortgage
    
0
      
3,748
      
5,072
      
8,820
  
Home equity lines
    
0
      
204
      
444
      
648
  
Total residential loans
    
0
      
3,952
      
5,516
      
9,468
  
                                 
Consumer direct
    
0
      
176
      
93
      
269
  
Consumer indirect
    
0
      
0
      
762
      
762
  
Total consumer loans
    
0
      
176
      
855
      
1,031
  
                                 
Loans and lease financing
  
$
8,246
    
$
8,123
    
$
10,317
    
$
26,686
  


Interest income recognized as of June 30, 2025 on nonaccrual loans totaled $9.6 thousand compared to $189.4 thousand at December 31, 2024.


The following tables present CTBI’s loan portfolio aging analysis, segregated by loan segment, as of June 30, 2025 and December 31, 2024 (includes loans 90 days past due and still accruing as well):

 
June 30, 2025
  
(in thousands)
  
30-59 Days
Past Due
    
60-89
Days Past
Due
    
90+ Days
Past Due
    
Total
Past Due
    
Current
    
Total Loans
  
Hotel/motel
  
$
120
    
$
0
    
$
0
    
$
120
    
$
477,055
    
$
477,175
  
Commercial real estate residential
    
937
      
744
      
2,698
      
4,379
      
555,527
      
559,906
  
Commercial real estate nonresidential
    
1,822
      
161
      
11,094
      
13,077
      
900,386
      
913,463
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
70,270
      
70,270
  
Commercial other
    
856
      
250
      
940
      
2,046
      
359,705
      
361,751
  
Total commercial loans
    
3,735
      
1,155
      
14,732
      
19,622
      
2,362,943
      
2,382,565
  
                                                 
Real estate mortgage
    
2,554
      
4,202
      
5,549
      
12,305
      
1,100,367
      
1,112,672
  
Home equity lines
    
1,885
      
428
      
565
      
2,878
      
174,257
      
177,135
  
Total residential loans
    
4,439
      
4,630
      
6,114
      
15,183
      
1,274,624
      
1,289,807
  
                                                 
Consumer direct
    
912
      
189
      
224
      
1,325
      
149,590
      
150,915
  
Consumer indirect
    
4,131
      
1,447
      
679
      
6,257
      
872,249
      
878,506
  
Total consumer loans
    
5,043
      
1,636
      
903
      
7,582
      
1,021,839
      
1,029,421
  
                                                 
Loans and lease financing
  
$
13,217
    
$
7,421
    
$
21,749
    
$
42,387
    
$
4,659,406
    
$
4,701,793
  

 
December 31, 2024
  
(in thousands)
  
30-59 Days
Past Due
    
60-89
Days Past
Due
    
90+ Days
Past Due
    
Total
Past Due
    
Current
    
Total Loans
  
Hotel/motel
  
$
0
    
$
0
    
$
0
    
$
0
    
$
458,832
    
$
458,832
  
Commercial real estate residential
    
575
      
444
      
828
      
1,847
      
506,463
      
508,310
  
Commercial real estate nonresidential
    
1,349
      
118
      
12,890
      
14,357
      
850,674
      
865,031
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
84,956
      
84,956
  
Commercial other
    
1,033
      
595
      
1,018
      
2,646
      
352,904
      
355,550
  
Total commercial loans
    
2,957
      
1,157
      
14,736
      
18,850
      
2,253,829
      
2,272,679
  
                                                 
Real estate mortgage
    
654
      
3,304
      
7,998
      
11,956
      
1,031,445
      
1,043,401
  
Home equity lines
    
1,919
      
348
      
613
      
2,880
      
164,545
      
167,425
  
Total residential loans
    
2,573
      
3,652
      
8,611
      
14,836
      
1,195,990
      
1,210,826
  
                                                 
Consumer direct
    
876
      
107
      
268
      
1,251
      
151,592
      
152,843
  
Consumer indirect
    
4,872
      
1,096
      
762
      
6,730
      
843,559
      
850,289
  
Total consumer loans
    
5,748
      
1,203
      
1,030
      
7,981
      
995,151
      
1,003,132
  
                                                 
Loans and lease financing
  
$
11,278
    
$
6,012
    
$
24,377
    
$
41,667
    
$
4,444,970
    
$
4,486,637
  


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:

➢
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.


The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by loan segment and based on last credit decision or year of origination:


  
Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2025
  
(in thousands)
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Revolving
Loans
    
Total
  
Hotel/motel
                                                
Risk rating:
                                                
Pass
  
$
35,083
    
$
58,948
    
$
91,700
    
$
132,866
    
$
26,690
    
$
89,087
    
$
6,075
    
$
440,449
  
Watch
    
0
      
0
      
2,036
      
12,070
      
6,515
      
11,297
       0      
31,918
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
873
      
0
      
3,935
      
0
      
0
      
0
      
4,808
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
    
35,083
      
59,821
      
93,736
      
148,871
      
33,205
      
100,384
      
6,075
      
477,175
  
                                                                 
Hotel/motel year-to-date gross charge-offs
     0       0       0       0       0       0       0       0  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
    
108,964
      
124,073
      
88,090
      
74,705
      
54,926
      
52,972
      
23,505
      
527,235
  
Watch
    
8,966
      
855
      
3,065
      
1,396
      
3,629
      
5,571
      
277
      
23,759
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
55
      
0
      
55
  
Substandard
    
1,433
      
513
      
555
      
504
      
2,075
      
3,703
      
74
      
8,857
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
    
119,363
      
125,441
      
91,710
      
76,605
      
60,630
      
62,301
      
23,856
      
559,906
  
                                                                 
Commercial real estate residential year-to-date gross charge-offs
     0       (18 )     (41 )     0       0       0       0       (59 )
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
    
102,941
      
170,309
      
111,959
      
113,444
      
105,953
      
192,738
      
39,381
      
836,725
  
Watch
    
1,203
      
5,061
      
2,094
      
8,044
      
17,093
      
11,253
      
826
      
45,574
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
18
      
0
      
18
  
Substandard
    
2,931
      
2,555
      
1,870
      
2,071
      
2,397
      
19,321
      
0
      
31,145
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
1
      
0
      
1
  
Total commercial real estate nonresidential
    
107,075
      
177,925
      
115,923
      
123,559
      
125,443
      
223,331
      
40,207
      
913,463
  
                                                                 
Commercial real estate nonresidential year-to-date gross charge-offs
     0       0       0       0       0       (2 )     0       (2 )
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
    
0
      
0
      
0
      
0
      
0
      
0
      
60,685
      
60,685
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
9,306
      
9,306
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
279
      
279
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total dealer floorplans
    
0
      
0
      
0
      
0
      
0
      
0
      
70,270
      
70,270
  
                                                                 
Dealer floorplans year-to-date gross charge-offs
     0       0       0       0       0       0       0       0  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
    
47,755
      
49,169
      
42,905
      
31,871
      
23,102
      
41,890
      
77,547
      
314,239
  
Watch
    
11,420
      
1,099
      
713
      
613
      
185
      
538
      
14,311
      
28,879
  
OAEM
    
30
      
0
      
0
      
0
      
8,183
      
0
      
215
      
8,428
  
Substandard
    
3,244
      
1,150
      
3,475
      
409
      
263
      
504
      
1,160
      
10,205
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
    
62,449
      
51,418
      
47,093
      
32,893
      
31,733
      
42,932
      
93,233
      
361,751
  
                                                                 
Commercial other year-to-date gross charge-offs
     (378 )     (105 )     (253 )     (6 )     (213 )     0       0       (955 )
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
    
294,743
      
402,499
      
334,654
      
352,886
      
210,671
      
376,687
      
207,193
      
2,179,333
  
Watch
    
21,589
      
7,015
      
7,908
      
22,123
      
27,422
      
28,659
      
15,414
      
130,130
  
OAEM
    
30
      
0
      
0
      
0
      
8,183
      
73
      
9,521
      
17,807
  
Substandard
    
7,608
      
5,091
      
5,900
      
6,919
      
4,735
      
23,528
      
1,513
      
55,294
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
1
      
0
      
1
  
Total commercial loans
  
$
323,970
    
$
414,605
    
$
348,462
    
$
381,928
    
$
251,011
    
$
428,948
    
$
233,641
    
$
2,382,565
  
                                                                 
Total commercial loans year-to-date gross charge-offs
   $ (378 )   $ (123 )   $ (294 )   $ (6 )   $ (213 )   $ (2 )   $ 0     $ (1,016 )


 
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024
  
(in thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans
    
Total
  
Hotel/motel
                                                
Risk rating:
                                                
Pass
  
$
72,924
    
$
88,016
    
$
134,663
    
$
27,145
    
$
21,609
    
$
70,311
    
$
5,419
    
$
420,087
  
Watch
    
0
      
2,062
      
10,822
      
6,570
      
0
      
13,358
      
0
      
32,812
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
1,954
      
0
      
3,979
      
0
      
0
      
0
      
0
      
5,933
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
    
74,878
      
90,078
      
149,464
      
33,715
      
21,609
      
83,669
      
5,419
      
458,832
  
                                                                 
Hotel/motel year-to-date gross charge-offs
     0       0       0       0       0       0       0       0  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
    
162,855
      
94,758
      
78,106
      
60,482
      
24,603
      
37,689
      
21,267
      
479,760
  
Watch
    
5,381
      
3,009
      
1,692
      
3,739
      
1,523
      
5,261
      
58
      
20,663
  
OAEM
    
31
      
0
      
0
      
0
      
0
      
58
      
0
      
89
  
Substandard
    
1,470
      
609
      
792
      
531
      
420
      
3,928
      
48
      
7,798
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
    
169,737
      
98,376
      
80,590
      
64,752
      
26,546
      
46,936
      
21,373
      
508,310
  
                                                                 
Commercial real estate residential year-to-date gross charge-offs
    0       0       0     0       0       0       0       0
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
    
180,139
      
121,801
      
124,200
      
120,623
      
62,674
      
155,561
      
38,270
      
803,268
  
Watch
    
4,574
      
2,004
      
4,004
      
8,683
      
3,425
      
6,970
      
624
      
30,284
  
OAEM
    
0
      
7
      
12
      
0
      
0
      
45
      
0
      
64
  
Substandard
    
4,873
      
1,527
      
357
      
2,700
      
11,179
      
10,778
      
0
      
31,414
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
1
      
0
      
1
  
Total commercial real estate nonresidential
    
189,586
      
125,339
      
128,573
      
132,006
      
77,278
      
173,355
      
38,894
      
865,031
  
                                                                 
Commercial real estate nonresidential year-to-date gross charge-offs
    0       0       0     0       0       0     0       0
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
    
0
      
0
      
0
      
0
      
0
      
0
      
82,639
      
82,639
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
1,861
      
1,861
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
456
      
0
      
456
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total dealer floorplans
    
0
      
0
      
0
      
0
      
0
      
456
      
84,500
      
84,956
  
                                                                 
Dealer floorplans year-to-date gross charge-offs
     0       0       0       0       0       0       0       0  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
    
83,742
      
43,935
      
38,912
      
25,806
      
25,187
      
19,520
      
79,851
      
316,953
  
Watch
    
1,823
      
877
      
671
      
295
      
111
      
533
      
14,739
      
19,049
  
OAEM
    
27
      
0
      
0
      
8,469
      
0
      
0
      
30
      
8,526
  
Substandard
    
2,301
      
4,279
      
2,203
      
299
      
447
      
162
      
1,331
      
11,022
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
    
87,893
      
49,091
      
41,786
      
34,869
      
25,745
      
20,215
      
95,951
      
355,550
  
                                                                 
Commercial other year-to-date gross charge-offs
    (1,148 )     (134 )     (142 )     (45 )     (2 )     (5 )     0       (1,476 )
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
    
499,660
      
348,510
      
375,881
      
234,056
      
134,073
      
283,081
      
227,446
      
2,102,707
  
Watch
    
11,778
      
7,952
      
17,189
      
19,287
      
5,059
      
26,122
      
17,282
      
104,669
  
OAEM
    
58
      
7
      
12
      
8,469
      
0
      
103
      
30
      
8,679
  
Substandard
    
10,598
      
6,415
      
7,331
      
3,530
      
12,046
      
15,324
      
1,379
      
56,623
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
1
      
0
      
1
  
Total commercial loans
  
$
522,094
    
$
362,884
    
$
400,413
    
$
265,342
    
$
151,178
    
$
324,631
    
$
246,137
    
$
2,272,679
  
                                                                 
Total commercial loans year-to-date gross charge-offs
  $
 (1,148 )   $
 (134 )   $ (142 )   $ (45 )   $
 (2 )   $
 (5 )   $
0     $
 (1,476 )


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 loan segment:


  
Term Loans Amortized Cost Basis by Origination Year
As of June 30, 2025
  
(in thousands)
  
2025
    
2024
    
2023
    
2022
    
2021
    
Prior
    
Revolving
Loans
    
Total
  
Home equity lines
                                                
Performing
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
6,228
    
$
170,220
    
$
176,448
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
270
      
417
      
687
  
Total home equity lines
    
0
      
0
      
0
      
0
      
0
      
6,498
      
170,637
      
177,135
  
 
                                                                
Home equity year-to-date gross charge-offs
     0       0       0       0       0       (7 )     0       (7 )
                                                                 
Mortgage loans
                                                                
Performing
    
122,864
      
202,898
      
181,018
      
136,679
      
140,507
      
321,866
      
0
      
1,105,832
  
Nonperforming
    
199
      
727
      
1,420
      
1,254
      
423
      
2,817
      
0
      
6,840
  
Total mortgage loans
    
123,063
      
203,625
      
182,438
      
137,933
      
140,930
      
324,683
      
0
      
1,112,672
  
 
                                                                
Mortgage loans year-to-date gross charge-offs
     0       0       0       (37 )     (16 )     (27 )     0       (80 )
 
                                                                
Residential loans
                                                                
Performing
    
122,864
      
202,898
      
181,018
      
136,679
      
140,507
      
328,094
     $
170,220
      
1,282,280
  
Nonperforming
    
199
      
727
      
1,420
      
1,254
      
423
      
3,087
      
417
      
7,527
  
Total residential loans
  

123,063
    

203,625
    

182,438
    

137,933
    

140,930
    
$
331,181
    

170,637
    
$
1,289,807
  
 
                                                                
Total residential loans year-to-date gross charge-offs
   $ 0     $ 0     $ 0     $ (37 )   $ (16 )   $ (34 )   $ 0     $ (87 )
 
                                                                
Consumer direct loans
                                                                
Performing
  
$
32,177
    
$
39,212
    
$
27,705
    
$
16,946
    
$
14,409
    
$
20,242
    
$
0
    
$
150,691
  
Nonperforming
    
0
      
5
      
24
      
195
      
0
      
0
      
0
      
224
  
Total consumer direct loans
    
32,177
      
39,217
      
27,729
      
17,141
      
14,409
      
20,242
      
0
      
150,915
  
 
                                                                
Consumer direct loans year-to-date gross charge-offs
     0       (159 )     (138 )     (93 )     (47 )     (30 )     0       (467 )
 
                                                                
Consumer indirect loans
                                                                
Performing
    
216,751
      
271,086
      
194,511
      
123,412
      
45,890
      
26,177
      
0
      
877,827
  
Nonperforming
    
6
      
133
      
283
      
204
      
27
      
26
      
0
      
679
  
Total consumer indirect loans
    
216,757
      
271,219
      
194,794
      
123,616
      
45,917
      
26,203
      
0
      
878,506
  
 
                                                                
Consumer indirect loans year-to-date gross charge-offs
     (1 )     (629 )     (1,673 )     (903 )     (311 )     (163 )     0       (3,680 )
 
                                                                
Consumer loans
                                                                
Performing
    
248,928
      
310,298
      
222,216
      
140,358
      
60,299
      
46,419
      
0
      
1,028,518
  
Nonperforming
    
6
      
138
      
307
      
399
      
27
      
26
      
0
      
903
  
Total consumer loans
  
$
248,934
    
$
310,436
    
$
222,523
    
$
140,757
    
$
60,326
    
$
46,445
    
$
0
    
$
1,029,421
  
 
                                                                
Total consumer loans year-to-date gross charge-offs
   $ (1 )   $ (788 )   $ (1,811 )   $ (996 )   $ (358 )   $ (193 )   $ 0     $ (4,147 )

 
Term Loans Amortized Cost Basis by Origination Year
As of December 31, 2024
  
(in thousands)
  
2024
    
2023
    
2022
    
2021
    
2020
    
Prior
    
Revolving
Loans
    
Total
  
Home equity lines
                                                
Performing
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
7,121
    
$
159,656
    
$
166,777
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
362
      
286
      
648
  
Total home equity lines
    
0
      
0
      
0
      
0
      
0
      
7,483
      
159,942
      
167,425
  
                                                                 
Home equity lines year-to-date gross charge-offs
    0       0       0       0       0       (80 )     0       (80 )
                                                                 
Mortgage loans
                                                                
Performing
    
197,756
      
192,959
      
140,265
      
146,391
      
107,009
      
250,201
      
0
      
1,034,581
  
Nonperforming
    
0
      
1,074
      
1,424
      
250
      
279
      
5,793
      
0
      
8,820
  
Total mortgage loans
    
197,756
      
194,033
      
141,689
      
146,641
      
107,288
      
255,994
      
0
      
1,043,401
  
                                                                 
Mortgage loans year-to-date gross charge-offs
    0       0       (28 )     0       0       (97 )     0       (125 )
                                                                 
Residential loans
                                                                
Performing
    
197,756
      
192,959
      
140,265
      
146,391
      
107,009
      
257,322
      
159,656
      
1,201,358
  
Nonperforming
    
0
      
1,074
      
1,424
      
250
      
279
      
6,155
      
286
      
9,468
  
Total residential loans
  
$
197,756
    
$
194,033
    
$
141,689
    
$
146,641
    
$
107,288
    
$
263,477
    
$
159,942
    
$
1,210,826
  
                                                                 
Total residential loans year-to-date gross charge-offs
  $ 0     $ 0     $ 0     $ (28 )   $ 0     $ (177 )   $ 0     $ (205 )
                                                                 
Consumer direct loans
                                                                
Performing
  
$
54,745
    
$
35,179
    
$
21,456
    
$
17,509
    
$
9,839
    
$
13,846
    
$
0
    
$
152,574
  
Nonperforming
    
7
      
72
      
190
      
0
      
0
      
0
      
0
      
269
  
Total consumer direct loans
    
54,752
      
35,251
      
21,646
      
17,509
      
9,839
      
13,846
      
0
      
152,843
  
                                                                 
Consumer direct loans year-to-date gross charge-offs
     (41 )     (314 )     (690 )     (85 )     (29 )     (61 )     0       (1,220 )
                                                                 
Consumer indirect loans
                                                                
Performing
    
333,945
      
243,247
      
162,051
      
65,032
      
34,870
      
10,382
      
0
      
849,527
  
Nonperforming
    
117
      
324
      
218
      
63
      
40
      
0
      
0
      
762
  
Total consumer indirect loans
    
334,062
      
243,571
      
162,269
      
65,095
      
34,910
      
10,382
      
0
      
850,289
  
                                                                 
Consumer indirect loans year-to-date gross charge-offs
    (363 )     (2,760 )     (2,609 )     (1,385 )     (236 )     (249 )     0       (7,602 )
                                                                 
Consumer loans
                                                                
Performing
    
388,690
      
278,426
      
183,507
      
82,541
      
44,709
      
24,228
      
0
      
1,002,101
  
Nonperforming
    
124
      
396
      
408
      
63
      
40
      
0
      
0
      
1,031
  
Total consumer loans
  
$
388,814
    
$
278,822
    
$
183,915
    
$
82,604
    
$
44,749
    
$
24,228
    
$
0
    
$
1,003,132
  
                                                                 
Total consumer loans year-to-date gross charge-offs
  $ (404 )   $ (3,074 )   $ (3,299 )   $ (1,470 )   $ (265 )   $ (310 )   $ 0     $ (8,822 )


The total of consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process was $3.0 million at June 30, 2025 and $4.0 million at December 31, 2024.

Individually Evaluated Loans


If a loan does not share risk characteristics with other pooled loans in determining the ACL, the loan is 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:

 
June 30, 2025
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
1
    
$
3,559
    
$
0
  
Commercial real estate residential
    
1
      
1,521
      
0
  
Commercial real estate nonresidential
    
8
      
27,327
      
325
  
Dealer floorplans
     1       9,306       0  
Commercial other
    
3
      
12,126
      
0
  
Total collateral dependent loans
    
14
    
$
53,839
    
$
325
  

 
December 31, 2024
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
2
    
$
5,555
    
$
0
  
Commercial real estate residential
    
0
      
0
      
0
  
Commercial real estate nonresidential
    
8
      
27,087
      
325
  
Commercial other
    
3
      
12,963
      
0
  
Total collateral dependent loans
    
13
    
$
45,605
    
$
325
  


Based on the quarterly evaluation of losses for these credits, the combined amount of expected loss is $325 thousand.  This expected loss is tied to two unrelated loans that demonstrate a shortfall in collateral which is insufficient to repay the principal balance of the loans in the event of a liquidation of the collateral and after estimated selling costs.  All other evaluated credits show sufficient collateral to repay the entire loan balances after estimated selling costs.  The hotel/motel, commercial real estate residential, and commercial real estate nonresidential segments are all collateralized with real estate.  Two loans listed in the commercial other segment at June 30, 2025 are collateralized by inventory, equipment, and accounts receivable.  The dealer floorplan is collateralized with automobiles.

Loan Modifications


Certain loans have been modified where the customer is facing financial difficulty and economic concessions were granted to borrowers, consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances.  These loans, segregated by loan segment and concession granted, are presented below for the three months ended June 30, 2025:

   
Amortized Cost at June 30, 2025
 
(in thousands)
  
Interest Rate
Reduction
    
% of total
    
Term Extension
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
299
      
0.05
  
Commercial real estate nonresidential
    
7,254
       0.79
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
264
      
0.07
  
Commercial loans
    
7,254
      
0.30
      
563
      
0.02
  
                                 
Real estate mortgage
    
57
      
0.01
      
3,007
      
0.27
  
Home equity lines
    
0
      
0.00
      
107
      
0.06
  
Residential loans
    
57
      
0.00
      
3,114
      
0.24
  
                                 
Consumer direct
    
0
      
0.00
      
176
      
0.12
  
Consumer indirect
    
0
      
0.00
      
121
      
0.01
  
Consumer loans
    
0
      
0.00
      
297
      
0.03
  
                                 
Loans and lease financing
  
$
7,311
      
0.16
%
  
$
3,974
       0.08
%

   
Amortized Cost at June 30, 2025
  
(in thousands)
  
Combination –
Term Extension
and Interest Rate
Reduction
    
% of total
     Payment Change    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
498
      
0.09
      
0
      
0.00
  
Commercial real estate nonresidential
    
0
      
0.00
      
92
      
0.01
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
203
      
0.06
      
29
      
0.01
  
Commercial loans
    
701
      
0.03
      
121
      
0.01
  
                                 
Real estate mortgage
    
560
      
0.05
      
35
      
0.00
  
Home equity lines
    
49
      
0.03
      
0
      
0.00
  
Residential loans
    
609
      
0.05
      
35
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
51
      
0.01
  
Consumer loans
    
0
      
0.00
      
51
      
0.00
  
                                 
Loans and lease financing
  
$
1,310
      
0.03
%
  
$
207
      
0.00
%


The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended June 30, 2025:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
Commercial real estate residential
  
 
Added a weighted-average 1.0 years to life of the loans
 
        
Commercial real estate nonresidential
   Reduced weighted-average contractual interest rate from 7.5% to 2.0%  
 
        
Commercial other
      
Added a weighted-average 1.9 years to life of the loans
 
              
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 8.2% to 3.8%
 
Added a weighted-average 0.3 years to life of the loans
 
        
Home equity lines
  
 
Added a weighted-average 4.7 years to life of the loans
 
              
Consumer direct
      
Added a weighted-average 0.3 years to life of the loans
 
        
Consumer indirect
      
Added a weighted-average 0.8 years to life of the loans

Loan Type
  
Combination – Term Extension and
 Interest Rate Reduction
Financial Impact
  
Payment Changes
Financial Impact
Commercial real estate residential
  
Reduced weighted-average contractual interest rate from 9.5% to 8.8% and increased the weighted-average life by 20.0 years
 
         
Commercial real estate nonresidential
       Provided payment changes that will be added to the end of the original loan term.
         
Commercial other
   Reduced weighted-average contractual interest rate from 10.0% to 8.0% and increased the weighted-average life by 0.9 years
   Provided payment changes that will be added to the end of the original loan term.
               
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 5.2% to 3.8% and increased the weighted-average life by 5.7 years
   Provided payment changes that will be added to the end of the original loan term.
         
Home Equity Lines
  Weighted-average contractual interest rate remained at 7.5% and increased the weighted-average life by 4.6 years    
         
Consumer indirect
      Provided payment changes that will be added to the end of the original loan term


These loans, segregated by loan segment and concession granted, are presented below for the six months ended June 30, 2025:


   
Amortized Cost at June 30, 2025
  
(in thousands)
  
Interest Rate
Reduction
    
% of total
    
Term Extension
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
299
      
0.05
  
Commercial real estate nonresidential
    
7,382
       0.81      
2,466
      
0.27
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
1,260
      
0.35
  
Commercial loans
    
7,382
      
0.31
      
4,025
      
0.17
  
                                 
Real estate mortgage
    
374
      
0.03
      
5,137
      
0.46
  
Home equity lines
    
0
      
0.00
      
321
      
0.18
  
Residential loans
    
374
      
0.03
      
5,458
      
0.42
  
                                 
Consumer direct
    
0
      
0.00
      
223
      
0.15
  
Consumer indirect
    
0
      
0.00
      
286
      
0.03
  
Consumer loans
    
0
      
0.00
      
509
      
0.05
  
                                 
Loans and lease financing
  
$
7,756
       0.16 %  
$
9,992
       0.21 %

   
Amortized Cost at June 30, 2025
  
(in thousands)
  
Combination –
Term Extension
and Interest Rate
Reduction
    
% of total
     Payment Change    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
975
      
0.17
      
0
      
0.00
  
Commercial real estate nonresidential
    
0
      
0.00
      
351
      
0.04
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
562
      
0.16
      
539
      
0.15
  
Commercial loans
    
1,537
      
0.06
      
890
      
0.04
  
                                 
Real estate mortgage
    
613
      
0.06
      
35
      
0.00
  
Home equity lines
    
50
      
0.03
      
0
      
0.00
  
Residential loans
    
663
      
0.05
      
35
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
155
      
0.02
  
Consumer loans
    
0
      
0.00
      
155
      
0.02
  
                                 
Loans and lease financing
  
$
2,200
      
0.05
%
  
$
1,080
      
0.02
%


The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the six months ended June 30, 2025:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
Commercial real estate residential
  
 
Added a weighted-average 1.0 years to life of the loans
 
        
Commercial real estate nonresidential
   Reduced weighted-average contractual interest rate from 7.5% to 2.1%   Added a weighted-average 0.5 years to life of the loans
 
        
Commercial other
      
Added a weighted-average 4.2 years to life of the loans
 
              
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 7.8% to 4.4%
  
Added a weighted-average 0.4 years to life of the loans
 
        
Home equity lines
  
 
Added a weighted-average 2.9 years to life of the loans
 
              
Consumer direct
      
Added a weighted-average 0.3 years to life of the loans
 
        
Consumer indirect
      
Added a weighted-average 0.9 years to life of the loans

Loan Type
  
Combination – Term Extension and
 Interest Rate Reduction
Financial Impact
  
Payment Changes
Financial Impact
Commercial real estate residential
  
Reduced weighted-average contractual interest rate from 9.2% to 8.2% and increased the weighted-average life by 16.0 years
 
         
Commercial real estate nonresidential
  
  Provided payment changes that will be added to the end of the original loan term.
         
Commercial other
   Increased weighted-average contractual interest rate from 6.5% to 8.0% and increased the weighted-average life by 6.5 years  
Provided payment changes that will be added to the end of the original loan term.
               
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 5.3% to 3.7% and increased the weighted-average life by 5.3 years
   Provided payment changes that will be added to the end of the original loan term.
         
Home equity lines
  
Weighted-average contractual interest rate remained at 7.5% and increased the weighted-average life by 4.6 years
  

               
Consumer indirect
      Provided payment changes that will be added to the end of the original loan term.


These loans, segregated by class of loans and concessions granted, are presented below for the three months ended June 30, 2024:

   
Amortized Cost at June 30, 2024
  
(in thousands)
  
Interest Rate
Reduction
    
% of total
     Term Extension    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
14
      
0.00
  
Commercial real estate nonresidential
    
0
      
0.00
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
705
      
0.20
  
Commercial loans
    
0
      
0.00
      
719
      
0.03
  
                                 
Real estate mortgage
    
548
      
0.06
      
3,451
      
0.35
  
Home equity lines
    
0
      
0.00
      
0
      
0.00
  
Residential loans
    
548
      
0.05
      
3,451
      
0.30
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
55
      
0.01
  
Consumer loans
    
0
      
0.00
      
55
      
0.01
  
                                 
Loans and lease financing
  
$
548
       0.01 %  
$
4,225
       0.10 %

    Amortized Cost at June 30, 2024
 
(in thousands)
  
Combination –
Term Extension
and Interest Rate
Reduction
    
% of total
     Payment Change    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
206
      
0.04
  
Commercial real estate nonresidential
    
28
      
0.00
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
0
      
0.00
  
Commercial loans
    
28
      
0.00
      
206
      
0.01
  
                                 
Real estate mortgage
    
58
      
0.01
      
0
      
0.00
  
Home equity lines
    
43
      
0.03
      
0
      
0.00
  
Residential loans
    
101
      
0.01
      
0
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
12
      
0.00
  
Consumer loans
    
0
      
0.00
      
12
      
0.00
  
                                 
Loans and lease financing
  
$
129
      
0.00
%
  
$
218
      
0.01
%


The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended June 30, 2024:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
Commercial real estate residential
  

 
Added a weighted-average 0.3 years to life of the loans
         
Commercial other
      
Added a weighted-average 0.1 years to life of the loans
         
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 7.5% to 5.0%
 
Added a weighted-average 0.4 years to life of the loans
         
Consumer indirect
      
Added a weighted-average 1.1 years to life of the loans

Loan Type
 		 
Combination – Term Extension and
Interest Rate Reduction
Financial Impact
    
Payment Changes
Financial Impact
Commercial real estate residential
     Provided payment changes that will be added to the end of the original loan term.
         
Commercial real estate nonresidential
   Increased weighted-average contractual interest rate from 6.0% to 8.5% and increased the weighted-average life by 10.3 years  
         
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 8.0% to 4.3% and increased the weighted-average life by 13.2 years
    
         
Home equity lines
  
Reduced weighted-average contractual interest rate from 9.3% to 8.7% and increased the weighted-average life by 3.3 years
  

         
Consumer indirect
       Provided payment changes that will be added to the end of the original loan term.


Those loans, segregated by class of loans and concession granted, are presented below for the six months ended June 30, 2024:

   
Amortized Cost at June 30, 2024
  
(in thousands)
  
Interest Rate
Reduction
    
% of total
     Term Extension    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
79
      
0.02
  
Commercial real estate nonresidential
    
0
      
0.00
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
954
      
0.27
  
Commercial loans
    
0
      
0.00
      
1,033
      
0.05
  
                                 
Real estate mortgage
    
736
      
0.08
      
5,651
      
0.58
  
Home equity lines
    
0
      
0.00
      
32
      
0.02
  
Residential loans
    
736
      
0.06
      
5,683
      
0.50
  
                                 
Consumer direct
    
0
      
0.00
      
37
      
0.02
  
Consumer indirect
    
0
      
0.00
      
311
      
0.04
  
Consumer loans
    
0
      
0.00
      
348
      
0.04
  
                                 
Loans and lease financing
  
$
736
       0.02 %  
$
7,064
       0.17 %

    Amortized Cost at June 30, 2024
 
(in thousands)
  
Combination –
Term Extension
and Interest Rate
Reduction
    
% of total
     Payment Change    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
1,954
      
0.47
%
Commercial real estate residential
    
14
      
0.00
      
207
      
0.04
  
Commercial real estate nonresidential
    
28
      
0.00
      
11
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
11
      
0.00
      
775
      
0.22
  
Commercial loans
    
53
      
0.00
      
2,947
      
0.14
  
                                 
Real estate mortgage
    
336
      
0.03
      
0
      
0.00
  
Home equity lines
    
81
      
0.05
      
0
      
0.00
  
Residential loans
    
417
      
0.04
      
0
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
37
      
0.00
  
Consumer loans
    
0
      
0.00
      
37
      
0.00
  
                                 
Loans and lease financing
  
$
470
      
0.01
%
  
$
2,984
      
0.07
%


The following tables describe the financial effect of the modifications made to borrowers experiencing financial difficulty for the six months ended June 30, 2024:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
Hotel/motel
        
         
Commercial real estate residential
  

 
Added a weighted-average 0.3 years to life of the loans
         
Commercial real estate nonresidential
  

 

         
Dealer floorplans
        
         
Commercial other
      
Added a weighted-average 0.3 years to life of the loans
         
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 8.1% to 5.0%
  
Added a weighted-average 0.4 years to life of the loans
         
Home equity lines
      
Added a weighted-average 0.5 years to life of the loans
         
Consumer direct
      
Added a weighted-average 0.1 years to life of the loans
         
Consumer indirect
      
Added a weighted-average 0.3 years to life of the loans

Loan Type  
Combination – Term Extension and
Interest Rate Reduction
Financial Impact
    
Payment Changes
Financial Impact
Hotel/motel
       Provided payment changes that will be added to the end of the original loan term
         
Commercial real estate residential
  
Weighted-average contractual interest rate remained at 8.5% and increased the weighted-average life by 4.0 years
   Provided payment changes that will be added to the end of the original loan term
         
Commercial real estate nonresidential
   Increased weighted-average contractual interest rate from 6.0% to 8.5% and increased the weighted-average life by 10.3 years
  Provided payment changes that will be added to the end of the original loan term
         
Dealer floorplans
        
         
Commercial other
   Reduced weighted-average contractual interest rate from 9.5% to 8.5% and increased the weighted-average life by 2.4 years
 
Provided payment changes that will be added to the end of the original loan term
         
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 5.7% to 5.1% and increased the weighted-average life by 6.4 years
    
         
Home equity lines
  
Reduced weighted-average contractual interest rate from 9.6% to 8.6% and increased the weighted-average life by 10.2 years
  

         
Consumer direct
      

         
Consumer indirect
      Provided payment changes that will be added to the end of the original loan term


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 due to a borrower’s financial difficulty are closely monitored for delinquency as an early indicator of possible future default.  If a loan to a borrower experiencing financial difficulty subsequently defaults, CTBI evaluates the loan for possible further impairment. The table below represents the payment status of  loans to borrowers experiencing financial difficulty for the past 12 months as of June 30, 2025.

   
Past Due Status (Amortized Cost Basis)
  
(in thousands)
 
Current
      
30-89 Days
      
90+ Days

 
Nonaccrual
  
Hotel/motel
  
$
873
    
$
0
    
$
0
    
$
0
  
Commercial real estate residential
    
1,531
      
119
      
0
      
620
  
Commercial real estate nonresidential
    
10,532
      
110
      
0
      
0
  
Dealer floorplans
    
279
      
0
      
0
      
0
  
Commercial other
    
3,013
      
418
      
85
      
268
  
Real estate mortgage
    
10,010
      
790
      
92
      
295
  
Home equity lines
    
357
      
32
      
0
      
86
  
Consumer direct
    
295
      
1
      
0
      
0
  
Consumer indirect
    
617
      
8
      
0
      
0
  
Loans to borrowers experiencing financial difficulty
  
$
27,507
    
$
1,478
    
$
177
    
$
1,269
  


The allowance for credit 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. During the quarter ended June 30, 2025, there were two loans to borrowers experiencing financial difficulty that subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.  Presented below, segregated by segment, are loans to borrowers experiencing financial difficulty for which there was a payment default during the periods indicated and such default was within 12 months of the loan modification.


  
Three Months Ended
June 30, 2025
  
(in thousands)
  
Number of Loans
    
Recorded Balance
  
Commercial:
                
Commercial other     1     $
95  
Residential:    
     
 
Real estate mortgage
     1      
 33  
Loans to borrowers experiencing financial difficulty
     2    
$
 128  


 
Six Months Ended
June 30, 2025
  
(in thousands)
 
Number of Loans
    
Recorded Balance
  
Commercial:                
Commercial other     2     $
 338  
Commercial real estate residential
     1    
18  
Residential:
    
     
 
Real estate mortgage
     2       82  
Loans to borrowers experiencing financial difficulty
     5    
$
 438  


 
Three Months Ended
June 30, 2024
  
(in thousands)
  
Number of Loans
    
Recorded Balance
  
Commercial:
                
Commercial other     1     $
6  
Residential:    
     
 
Real estate mortgage
     4    
1,118  
Loans to borrowers experiencing financial difficulty
     5    
$
 1,124  


 
Six Months Ended
June 30, 2024
  
(in thousands)
 
Number of Loans
    
Recorded Balance
  
Commercial:                
Commercial other     5     $
 428  
Commercial real estate residential
     2    
412  
Residential:
               
Real estate mortgage
     7       1,315  
Loans to borrowers experiencing financial difficulty
     14    
$
 2,155  



Financial instrument credit losses apply to off-balance sheet credit exposures such as unfunded loan commitments and standby letters of credit.  A liability for expected credit losses for off-balance sheet exposures is recognized if the entity has a present contractual obligation to extend the credit and the obligation is not unconditionally cancellable by the entity.  Changes in this allowance are reflected in provision expense.  The total unfunded commitment off-balance sheet credit exposure at June 30, 2025 and 2024 is presented below:



 
Three Months Ended
June 30, 2025
  
(in thousands)
Beginning
Balance
  
Provision
Charged to Expense
  
Losses
Charged Off
  
Recoveries
  
Ending
Balance
  
ACL for unfunded commitments:
                    
Commercial
  
$
1,071
    
$
(172
)
  
$
0
    
$
0
    
$
899
  
Real estate mortgage
    
372
      
48
      
0
      
0
      
420
  
Consumer
    
22
      
1
      
0
      
0
      
23
  
Total unfunded commitment off-balance sheet credit exposure
  
$
1,465
    
$
(123
)
  
$
0
    
$
0
    
$
1,342
  

 
Six Months Ended
June 30, 2025
  
(in thousands)
Beginning
Balance
  
Provision
Charged to Expense
  
Losses
Charged Off
  
Recoveries
  
Ending
Balance
  
ACL for unfunded commitments:
                    
Commercial
  
$
1,071
    
$
(172
)
  
$
0
    
$
0
    
$
899
  
Real estate mortgage
    
372
      
48
      
0
      
0
      
420
  
Consumer
    
22
      
1
      
0
      
0
      
23
  
Total unfunded commitment off-balance sheet credit exposure
  
$
1,465
    
$
(123
)
  
$
0
    
$
0
    
$
1,342
  

 
Three Months Ended
June 30, 2024
  
(in thousands)
Beginning
Balance
  
Provision
Charged to Expense
  
Losses
Charged Off
  
Recoveries
  
Ending
Balance
  
ACL for unfunded commitments:
                    
Commercial
  
$
1,071
    
$
0
    
$
0
    
$
0
    
$
1,071
  
Real estate mortgage
    
372
      
0
      
0
      
0
      
372
  
Consumer
    
22
      
0
      
0
      
0
      
22
  
Total unfunded commitment off-balance sheet credit exposure
  
$
1,465
    
$
0
    
$
0
    
$
0
    
$
1,465
  

 
Six Months Ended
June 30, 2024
  
(in thousands)
Beginning
Balance
  
Provision
Charged to Expense
  
Losses
Charged Off
  
Recoveries
  
Ending
Balance
  
ACL for unfunded commitments:
                    
Commercial
  
$
1,071
    
$
0
    
$
0
    
$
0
    
$
1,071
  
Real estate mortgage
    
372
      
0
      
0
      
0
      
372
  
Consumer
    
22
      
0
      
0
      
0
      
22
  
Total unfunded commitment off-balance sheet credit exposure
  
$
1,465
    
$
0
    
$
0
    
$
0
    
$
1,465