Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jun. 30, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | COMMUNITY TRUST BANCORP INC /KY/ | |
Entity Central Index Key | 0000350852 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Public Float | $ 714.7 | |
Entity Common Stock, Shares Outstanding | 17,819,938 | |
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity File Number | 001-31220 | |
Entity Tax Identification Number | 61-0979818 | |
Entity Incorporation, State or Country Code | KY | |
Entity Address, Address Line One | 346 North Mayo Trail | |
Entity Address, Address Line Two | P.O. Box 2947 | |
Entity Address, City or Town | Pikeville | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 41502 | |
City Area Code | 606 | |
Local Phone Number | 432-1414 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | CTBI | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 58,680 | $ 64,632 |
Interest bearing deposits | 206,003 | 75,718 |
Federal funds sold | 0 | 1,100 |
Cash and cash equivalents | 264,683 | 141,450 |
Certificates of deposit in other banks | 245 | 3,920 |
Securities available-for-sale at fair value (amortized cost of $593,945 and $602,114, respectively) | 599,844 | 593,746 |
Securities held-to-maturity at amortized cost (fair value of $517 and $649, respectively) | 517 | 649 |
Equity securities at fair value | 1,953 | 1,173 |
Loans held for sale | 1,167 | 2,461 |
Loans | 3,248,664 | 3,208,638 |
Allowance for loan and lease losses | (35,096) | (35,908) |
Net loans | 3,213,568 | 3,172,730 |
Premises and equipment, net | 44,046 | 45,291 |
Right-of-use asset | 14,550 | 0 |
Federal Home Loan Bank stock | 10,474 | 14,713 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Goodwill | 65,490 | 65,490 |
Bank owned life insurance | 69,269 | 67,076 |
Mortgage servicing rights | 3,263 | 3,607 |
Other real estate owned | 19,480 | 27,273 |
Accrued interest receivable | 14,836 | 14,432 |
Other assets | 37,731 | 42,718 |
Total assets | 4,366,003 | 4,201,616 |
Deposits: | ||
Noninterest bearing | 865,760 | 803,316 |
Interest bearing | 2,539,812 | 2,502,634 |
Total deposits | 3,405,572 | 3,305,950 |
Repurchase agreements | 226,917 | 232,712 |
Federal funds purchased | 7,906 | 1,180 |
Advances from Federal Home Loan Bank | 415 | 436 |
Long-term debt | 57,841 | 59,341 |
Deferred taxes | 5,110 | 3,363 |
Operating lease liability | 13,729 | 0 |
Finance lease liability | 1,456 | 0 |
Accrued interest payable | 2,839 | 2,902 |
Other liabilities | 29,332 | 31,582 |
Total liabilities | 3,751,117 | 3,637,466 |
Commitments and contingencies (notes 18 and 20) | ||
Shareholders' equity: | ||
Preferred stock, 300,000 shares authorized and unissued | 0 | 0 |
Common stock, $5.00 par value, shares authorized 25,000,000; shares outstanding 2019 - 17,793,165; 2018 - 17,732,853 | 88,966 | 88,665 |
Capital surplus | 224,907 | 223,161 |
Retained earnings | 296,760 | 258,935 |
Accumulated other comprehensive income (loss), net of tax | 4,253 | (6,611) |
Total shareholders' equity | 614,886 | 564,150 |
Total liabilities and shareholders' equity | $ 4,366,003 | $ 4,201,616 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities available-for-sale at amortized cost | $ 593,945 | $ 602,114 |
Securities held-to-maturity at fair value | $ 517 | $ 649 |
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) | 17,793,165 | 17,732,853 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Interest and fees on loans, including loans held for sale | $ 164,991 | $ 154,552 | $ 141,497 |
Interest and dividends on securities: | |||
Taxable | 12,516 | 10,015 | 8,715 |
Tax exempt | 2,354 | 2,796 | 3,011 |
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock | 947 | 1,303 | 1,189 |
Interest on Federal Reserve Bank deposits | 4,434 | 2,525 | 1,068 |
Other, including interest on federal funds sold | 156 | 259 | 216 |
Total interest income | 185,398 | 171,450 | 155,696 |
Interest expense: | |||
Interest on deposits | 33,371 | 23,714 | 14,350 |
Interest on repurchase agreements and federal funds purchased | 4,631 | 3,312 | 1,832 |
Interest on advances from Federal Home Loan Bank | 39 | 27 | 427 |
Interest on long-term debt | 2,472 | 2,242 | 1,685 |
Total interest expense | 40,513 | 29,295 | 18,294 |
Net interest income | 144,885 | 142,155 | 137,402 |
Provision for loan losses | 4,819 | 6,167 | 7,521 |
Net interest income after provision for loan losses | 140,066 | 135,988 | 129,881 |
Noninterest income: | |||
Service charges on deposit accounts | 26,359 | 25,974 | 25,121 |
Gains on sales of loans, net | 1,880 | 1,288 | 1,320 |
Trust and wealth management income | 10,804 | 11,313 | 10,453 |
Loan related fees | 2,742 | 3,729 | 3,678 |
Bank owned life insurance | 2,397 | 3,672 | 2,172 |
Brokerage revenue | 1,367 | 1,354 | 1,324 |
Securities gains (losses) | 783 | (85) | 73 |
Other noninterest income | 3,852 | 4,707 | 4,367 |
Total noninterest income | 50,184 | 51,952 | 48,508 |
Noninterest expense: | |||
Officer salaries and employee benefits | 12,614 | 12,906 | 11,823 |
Other salaries and employee benefits | 50,413 | 48,656 | 47,006 |
Occupancy, net | 7,845 | 8,167 | 8,072 |
Equipment | 3,000 | 2,878 | 3,049 |
Data processing | 7,417 | 6,680 | 7,100 |
Bank franchise tax | 6,771 | 6,557 | 5,478 |
Legal fees | 1,968 | 1,637 | 1,668 |
Professional fees | 2,188 | 2,093 | 1,991 |
Advertising and marketing | 3,283 | 2,995 | 2,721 |
FDIC insurance | 266 | 1,171 | 1,239 |
Other real estate owned provision and expense | 5,490 | 4,324 | 4,500 |
Repossession expense | 1,042 | 1,249 | 911 |
Amortization of limited partnership investments | 3,422 | 2,527 | 2,419 |
Other noninterest expense | 12,539 | 15,558 | 11,901 |
Total noninterest expense | 118,258 | 117,398 | 109,878 |
Income before income taxes | 71,992 | 70,542 | 68,511 |
Income taxes | 7,452 | 11,314 | 17,018 |
Net income | 64,540 | 59,228 | 51,493 |
Unrealized holding gains (losses) on securities available-for-sale: | |||
Unrealized holding gains (losses) arising during the period | 14,270 | (5,393) | (820) |
Less: Reclassification adjustments for realized gains (losses) included in net income | 3 | (821) | 73 |
Tax expense (benefit) | 3,403 | (960) | (312) |
Other comprehensive income (loss), net of tax | 10,864 | (3,612) | (581) |
Comprehensive income | $ 75,404 | $ 55,616 | $ 50,912 |
Basic earnings per share (in dollars per share) | $ 3.64 | $ 3.35 | $ 2.92 |
Diluted earnings per share (in dollars per share) | $ 3.64 | $ 3.35 | $ 2.92 |
Weighted average shares outstanding-basic (in shares) | 17,724 | 17,687 | 17,631 |
Weighted average shares outstanding-diluted (in shares) | 17,740 | 17,703 | 17,653 |
Consolidated Statements of Chan
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 |
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||||
Implementation of ASU | ASU 2018-02 [Member] | $ 621 | $ (621) | $ 0 | ||
Balance at Dec. 31, 2016 | $ 88,144 | $ 219,697 | 195,078 | (2,304) | 500,615 |
Balance (in shares) at Dec. 31, 2016 | 17,628,695 | ||||
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||||
Net income | 51,493 | 51,493 | |||
Other comprehensive income (loss), net of tax | (581) | (581) | |||
Cash dividends declared | (22,924) | (22,924) | |||
Issuance of common stock | $ 276 | 1,237 | 1,513 | ||
Issuance of common stock (in shares) | 55,191 | ||||
Issuance of restricted stock | $ 118 | (118) | 0 | ||
Issuance of restricted stock (in shares) | 23,668 | ||||
Vesting of restricted stock | $ (60) | 60 | 0 | ||
Vesting of restricted stock (in shares) | (11,965) | ||||
Forfeiture of restricted stock | $ (13) | 13 | 0 | ||
Forfeiture of restricted stock (in shares) | (2,677) | ||||
Stock-based compensation | 583 | 583 | |||
Balance at Dec. 31, 2017 | $ 88,465 | 221,472 | 224,268 | (3,506) | 530,699 |
Balance (in shares) at Dec. 31, 2017 | 17,692,912 | ||||
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||||
Implementation of ASU | ASU 2014-09 [Member] | 358 | 358 | |||
Implementation of ASU | ASU 2016-01 [Member] | (507) | 507 | 0 | ||
Net income | 59,228 | 59,228 | |||
Other comprehensive income (loss), net of tax | (3,612) | (3,612) | |||
Cash dividends declared | (24,412) | (24,412) | |||
Issuance of common stock | $ 211 | 1,019 | 1,230 | ||
Issuance of common stock (in shares) | 42,133 | ||||
Issuance of restricted stock | $ 57 | (57) | 0 | ||
Issuance of restricted stock (in shares) | 11,320 | ||||
Vesting of restricted stock | $ (60) | 60 | 0 | ||
Vesting of restricted stock (in shares) | (11,997) | ||||
Forfeiture of restricted stock | $ (8) | 8 | 0 | ||
Forfeiture of restricted stock (in shares) | (1,515) | ||||
Stock-based compensation | 659 | 659 | |||
Balance at Dec. 31, 2018 | $ 88,665 | 223,161 | 258,935 | (6,611) | $ 564,150 |
Balance (in shares) at Dec. 31, 2018 | 17,732,853 | 17,732,853 | |||
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||||
Implementation of ASU | ASU 2016-02 [Member] | (480) | 0 | $ (480) | ||
Net income | 64,540 | 64,540 | |||
Other comprehensive income (loss), net of tax | 10,864 | 10,864 | |||
Cash dividends declared | (26,235) | (26,235) | |||
Issuance of common stock | $ 228 | 1,036 | 1,264 | ||
Issuance of common stock (in shares) | 45,639 | ||||
Issuance of restricted stock | $ 140 | (140) | 0 | ||
Issuance of restricted stock (in shares) | 27,921 | ||||
Vesting of restricted stock | $ (64) | 64 | 0 | ||
Vesting of restricted stock (in shares) | (12,660) | ||||
Forfeiture of restricted stock | $ (3) | 3 | 0 | ||
Forfeiture of restricted stock (in shares) | (588) | ||||
Stock-based compensation | 783 | 783 | |||
Balance at Dec. 31, 2019 | $ 88,966 | $ 224,907 | $ 296,760 | $ 4,253 | $ 614,886 |
Balance (in shares) at Dec. 31, 2019 | 17,793,165 | 17,793,165 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Increase (Decrease) in Stockholders' Equity [Roll forward] | |||
Other comprehensive income (loss), tax | $ 3,403 | $ (960) | $ (312) |
Cash dividends declared (in dollars per share) | $ 1.48 | $ 1.38 | $ 1.30 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 64,540 | $ 59,228 | $ 51,493 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 5,515 | 3,786 | 4,007 |
Deferred taxes | (1,412) | (246) | (3,090) |
Stock-based compensation | 859 | 710 | 636 |
Provision for loan losses | 4,819 | 6,167 | 7,521 |
Write-downs of other real estate owned and other repossessed assets | 4,295 | 2,530 | 3,034 |
Gains on sale of loans held for sale | (1,880) | (1,288) | (1,320) |
Securities (gains) losses | (3) | 85 | (73) |
Fair value adjustment in equity securities | (780) | 0 | 0 |
Gain on debt repurchase | (219) | 0 | (560) |
Gains (losses) on sale of assets, net | 360 | (175) | 40 |
Proceeds from sale of mortgage loans held for sale | 94,507 | 56,689 | 59,400 |
Funding of mortgage loans held for sale | (91,333) | (56,829) | (57,869) |
Amortization of securities premiums and discounts, net | 5,042 | 4,679 | 3,437 |
Change in cash surrender value of bank owned life insurance | (1,567) | (2,924) | (1,473) |
Payment of operating lease liabilities | (1,663) | 0 | 0 |
Mortgage servicing rights: | |||
Fair value adjustments | 975 | 343 | 361 |
New servicing assets created | (631) | (466) | (412) |
Changes in: | |||
Accrued interest receivable | (404) | (1,094) | (1,416) |
Other assets | 4,941 | (14,694) | (2,996) |
Accrued interest payable | (63) | (674) | (1,028) |
Other liabilities | (2,440) | 9,660 | 2,659 |
Net cash provided by operating activities | 83,458 | 65,487 | 62,351 |
Certificates of deposit in other banks: | |||
Purchase of certificates of deposit | 0 | 0 | (11,760) |
Maturity of certificates of deposit | 3,675 | 5,880 | 2,940 |
Securities available-for-sale (AFS): | |||
Purchase of AFS securities | (196,727) | (281,511) | (231,680) |
Proceeds from sales of AFS securities | 25,734 | 153,315 | 87,472 |
Proceeds from prepayments, calls, and maturities of AFS securities | 174,125 | 109,701 | 159,584 |
Securities held-to-maturity (HTM): | |||
Proceeds from prepayments and maturities of HTM securities | 132 | 10 | 207 |
Change in loans, net | (46,162) | (93,151) | (194,548) |
Purchase of premises and equipment | (2,570) | (2,832) | (2,400) |
Proceeds from sale and retirement of premises and equipment | 48 | 97 | 25 |
Redemption of stock by Federal Home Loan Bank | 4,239 | 3,214 | 0 |
Proceeds from sale of other real estate owned and repossessed assets | 3,641 | 3,485 | 3,574 |
Additional investment in bank owned life insurance | (1,241) | 0 | 0 |
Proceeds from settlement of bank owned life insurance | 615 | 1,202 | 0 |
Net cash used in investing activities | (34,491) | (100,590) | (186,586) |
Cash flows from financing activities: | |||
Change in deposits, net | 99,622 | 42,087 | 182,555 |
Change in repurchase agreements and federal funds purchased, net | 931 | (17,234) | (4,755) |
Advances from Federal Home Loan Bank | 30,000 | 0 | 350,000 |
Payments on advances from Federal Home Loan Bank | (30,021) | (409) | (350,099) |
Payment of finance lease liabilities | (14) | 0 | 0 |
Repurchase of long-term debt | (1,281) | 0 | (1,440) |
Issuance of common stock | 1,264 | 1,230 | 1,513 |
Dividends paid | (26,235) | (24,395) | (22,981) |
Net cash provided by financing activities | 74,266 | 1,279 | 154,793 |
Net increase (decrease) in cash and cash equivalents | 123,233 | (33,824) | 30,558 |
Cash and cash equivalents at beginning of year | 141,450 | 175,274 | 144,716 |
Cash and cash equivalents at end of year | 264,683 | 141,450 | 175,274 |
Supplemental disclosures: | |||
Income taxes paid | 9,988 | 9,700 | 21,400 |
Interest paid | 40,576 | 28,621 | 17,266 |
Non-cash activities: | |||
Loans to facilitate the sale of other real estate owned and repossessed assets | 2,879 | 4,385 | 2,679 |
Common stock dividends accrued, paid in subsequent quarter | 221 | 221 | 205 |
Real estate acquired in settlement of loans | $ 3,384 | $ 5,459 | $ 5,235 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | 1. Accounting Policies Basis of Presentation Nature of Operations Use of Estimates The accompanying financial statements have been prepared using values and information currently available to CTBI. Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the allowance for loan and lease losses, and capital. Cash and Cash Equivalents Certificates of Deposit in Other Banks Investments Investments – Debt Securities a. Trading securities . . b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities. We do not have any securities that are classified as trading securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders’ equity, net of tax. If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. Gains or losses on disposition of debt securities are computed by specific identification for those securities. Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings. When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on CTBI’s results of operations and financial condition. Subsequent to the January 1, 2018 effective date of ASU 2016-01, ASC 320 applies only to debt securities and ASC 321, Investments – Equity Securities Equity securities with a readily determinable fair value are required to be measured at fair value, with changes in fair value recognized through net income. Equity securities without a readily determinable fair value are carried at cost, less any impairment, if any, plus or minus changes resulting from observable price changes for identical or similar investments. An election can be made, as permitted by ASC 321-10-35-2, to subsequently measure an equity security without a readily determinable fair value, at fair value. Equity securities held by CTBI include securities without readily determinable fair values. CTBI has elected to account for these securities at fair value. The fair value of these securities was determined by a third party service provider using Level 3 inputs as defined in ASC 820, Fair Value Measurement Loans Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment. Leases – ASU - established a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability for all leases with terms longer than months. 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. ASU - provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU - provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current generally accepted accounting principles (“GAAP”) in Topic Leases . An entity that elects this additional (and optional) transition method must provide the required Topic disclosures for all periods that continue to be in accordance with Topic The amendments do not change the existing disclosure requirements in Topic (for example, they do not create interim disclosure requirements that entities previously were not required to provide). Separating Components of a Contract The amendments in ASU - provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic and both of the following are met: ● The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. ● The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the optional transition method of the modified retrospective approach provided in ASU - which was applied on January CTBI also elected certain relief options offered in ASU - including the package of practical expedients, the option not to separate lease and non-lease components, and instead to account for them as a single lease component for all classes of assets, the hindsight practical expedient to allow entities to use hindsight when determining lease term and impairment of right-of-use assets, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of months or less). Allowance for Loan and Lease Losses We utilize an internal risk grading system for commercial credits. Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated. The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ALLL for these loans is measured under ASC 450, Contingencies When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to CTBI, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent. If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent. For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made. If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual. Foreclosure proceedings are normally initiated after 120 days. When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off. Historical loss rates for loans are adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. We use twelve rolling quarters for our historical loss rate analysis. Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year’s charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions. Management continually reevaluates the other subjective factors included in its ALLL analysis. Loans Held for Sale Premises and Equipment Depreciation and amortization are computed primarily using the straight-line method. Estimated useful lives range up to 40 years for buildings, 2 to 10 years for furniture, fixtures, and equipment, and up to the lease term for leasehold improvements. Capitalized leased assets are amortized on a straight-line basis over the lives of the respective leases. Federal Home Loan Bank and Federal Reserve Stock CTB is also a member of its regional Federal Reserve Bank. Federal Reserve Bank stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. Other Real Estate Owned Goodwill and Core Deposit Intangible Intangibles-Goodwill and Other 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 Revenue Recognition – The majority of our revenue-generating transactions are not subject to ASC including revenue generated from financial instruments, such as our loans, letters of credit, and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC which are presented in our income statements as components of noninterest income are as follows: ● Service charges on deposit accounts represents general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. ● Trust and wealth management income represents monthly or quarterly fees due from wealth management customers as consideration for managing the customers’ assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services, and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month or quarter, which is generally the time that payment is received. ● Brokerage revenue is transaction based and collected upon the settlement of the transaction. Other sales, such as life insurance, generate commissions from other third parties. These fees are generally collected monthly. ● Other noninterest income primarily includes items such as letter of credit fees, gains on sale of loans held for sale and servicing fees related to mortgage and commercial loans, none of which are subject to the requirements of ASC 606. Income Taxes As a bank and trust company doing business in Kentucky, CTB and CTIC are subject to a capital-based Kentucky franchise tax and exempt from Kentucky corporate income tax. However, in March Kentucky enacted HB which will transition CTB and CTIC from the franchise tax to a corporate income tax beginning January The current Kentucky corporate income tax rate is . As of March CTBI recorded a deferred tax liability, net of the federal benefit, of due to the enactment of HB While this deferred tax liability may be adjusted in we do not anticipate any further adjustments to have a significant impact to income. In April Kentucky enacted HB HB allows for combined state income tax filing with CTBI, CTB, and CTIC. CTBI had previously filed a separate company return and generated net operating losses, in which it had maintained a valuation allowance against the related deferred tax asset. HB also allows for certain net operating losses to be utilized on a combined return. CTBI expects to file a combined return, beginning in and to utilize these previously generated losses. The tax benefit recorded in to reverse the valuation allowance on the deferred tax asset for these losses was . As a result of these Kentucky tax law changes, in we recognized a state income tax benefit of , or per basic share, net of federal income tax. Earnings Per Share (“EPS”) 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 Bank Owned Life Insurance Mortgage Servicing Rights Servicing Assets and Liabilities Fair Value Measurements Share-Based Compensation Share-Based Payment Comprehensive Income Transfers between Fair Value Hierarchy Levels – Reclassifications – Revisions – Certain immaterial revisions have been made to the consolidated financial statements for amounts reported in the deferred tax footnote which are further described in note These revisions did not have a significant impact on the financial statement line items impacted. New Accounting Standards ➢ Leases Leases (Topic 842) In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: ● The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. ● The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the optional transition method of the modified retrospective approach provided in ASU - which was applied on January CTBI also elected certain relief options offered in ASU - including the package of practical expedients, the option not to separate lease and non-lease components, and instead to account for them as a single lease component for all classes of assets, the hindsight practical expedient to allow entities to use hindsight when determining lease term and impairment of right-of-use assets, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of months or less). Refer to note below for further information regarding the impact of adoption. ➢ Accounting for Credit Losses – In June the FASB issued ASU No. - Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments. This ASU is commonly referred to as CECL (Current Expected Credit Loss). The provisions of ASU - were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. This ASU requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU - eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU - is effective for fiscal years, and interim periods within those fiscal years, beginning after December As previously disclosed, CTBI formed an implementation team to oversee the adoption of the ASU including assessing the impact on its accounting and disclosures. The implementation team was a cross-functional working group comprised of individuals from areas including credit, finance, and operations. The team has established the historical data available and has identified the loan segments to be analyzed. Credit losses for loans that no longer share similar risk characteristics are estimated on an individual basis. The team has determined the portfolio methodologies and relevant economic factors to be utilized and began running parallel with its current model as part of the monthly quarter loan portfolio analysis. The team has developed a CECL allowance model which calculates reserves over the life of the loan and is largely driven by historical losses, portfolio characteristics, risk-grading, economic outlook, and other qualitative factors. The methodologies will utilize a single economic forecast over a reasonable and supportable forecast period with immediate reversion to historical losses. While the models are operationally complete as of January other required processes are being finalized. It is estimated that the allowance for credit losses at the time of adoption will increase by approximately to , or to , with the increase in the allowance being offset by a charge to retained earnings, net of deferred taxes. Adoption of the standard is not expected to have a material impact on our AFS or HTM investment portfolio’s or our off-balance sheet reserve. The ultimate impact of adopting the ASU, and at each subsequent reporting period, is highly dependent on credit quality, economic forecasts and conditions and composition of our loans, along with other management judgements. The transition adjustment to record the allowance for credit losses may fall outside of management’s estimated increase based on material changes in these items, specifically the economic forecast and conditions and loan composition, used in calculating the allowance for credit losses upon the adoption of CECL. In December the Office of the Comptroller of the Currency , the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day- adverse effects on regulatory capital that may result from the adoption of the new accounting standard. CTBI is planning on adopting the capital transition relief over the permissible three-year period. ➢ Simplifying the Test for Goodwill Impairment – In January the FASB issued ASU No. - Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment . These amendments eliminate Step from the goodwill impairment test. The amendments also eliminate the requirements from any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for fiscal years beginning after December and interim periods with those fiscal years. ASU - should be implemented on a prospective basis. Management does not expect ASU - to have an impact on CTBI’s consolidated financial statements. ➢ Changes to the Disclosure Requirements for Fair Value Measurement – In August the FASB issued ASU - Fair Value Measurement (Topic 820) —Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . ASU No. - modifies the disclosure requirements on fair value measurements in Topic as follows: Removals The following disclosure requirements were removed from Topic : ● The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy ● The policy for timing of transfers between levels ● The valuation processes for Level 3 fair value measurements Modifications The following disclosure requirements were modified in Topic 820: ● For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and ● The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions The following disclosure requirements were added to Topic 820: ● The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and ● The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” CTBI adopted ASU 2018-13 effective January 1, 2020 with minimal changes expected to our current reporting. ➢ Accounting for Costs of Implementing a Cloud Computing Service Agreement Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The ASU aligns the following requirements for capitalizing implementation costs: ● Those incurred in a hosting arrangement that is a service contract, and ● Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license. This ASU was effective beginning January 1, 2020. We do not anticipate a significant impact to our consolidated financial statements. ➢ Simplifying the Accounting for Income Taxes – In December the FASB issued ASU - Income Taxes (Topic 740) , Simplifying the Accounting for Income Taxes . The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions: 1. Exception to the incremental approach for intra period tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income); 2. Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3. Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4. Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this ASU also simplify the accounting for income taxes by doing the following: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2. Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3. Specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority; 4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; and 5. Making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December Early adoption is permitted. We do not anticipate a significant impact to our consolidated financial statements. ➢ Clarifying the Interactions between Topic 321, Topic 323, and Topic 815, a consensus of the FASB Emerging Task Force – In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) . The amendments in this ASU clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments . These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted for public business entities for periods for which financial statements have not yet been issued. The amendments in this ASU should be applied prospectively. Under a prospective transition, an entity should apply the amendments at the beginning of the interim period that includes the adoption date. We do not anticipate a significant impact to our consolidated financial statements. |
Cash and Due from Banks and Int
Cash and Due from Banks and Interest Bearing Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | |
Cash and Due from Banks and Interest Bearing Deposits | 2. Cash and Due from Banks and Interest Bearing Deposits Included in cash and due from banks and interest bearing deposits are amounts required to be held at the Federal Reserve or maintained in vault cash in accordance with regulatory reserve requirements. The balance requirements were $78.0 million and $74.7 million at December 31, 2019 and 2018, respectively. At December 31, 2019, CTBI had cash accounts which exceeded federally insured limits, and therefore are not subject to FDIC insurance, with $203.6 million in deposits with the Federal Reserve, $23.2 million in deposits with US Bank, $0.9 million in deposits with Fifth Third Bank, and $2.4 million in deposits with the Federal Home Loan Bank. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Securities | 3. Securities Securities are classified into held-to-maturity and available-for-sale categories. Held-to-maturity (HTM) securities are those that CTBI has the positive intent and ability to hold to maturity and are reported at amortized cost. Available-for-sale (AFS) securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included as a separate component of equity, net of tax. The amortized cost and fair value of debt securities at December 31, 2019 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 171,250 $ 476 $ (576 ) $ 171,150 State and political subdivisions 99,403 2,941 (37 ) 102,307 U.S. government sponsored agency mortgage-backed securities 291,874 4,443 (1,072 ) 295,245 Other debt securities 31,418 0 (276 ) 31,142 Total available-for-sale securities $ 593,945 $ 7,860 $ (1,961 ) $ 599,844 Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 517 $ 0 $ 0 $ 517 Total held-to-maturity securities $ 517 $ 0 $ 0 $ 517 The amortized cost and fair value of debt securities at December 31, 2018 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 219,358 $ 48 $ (1,468 ) $ 217,938 State and political subdivisions 126,280 633 (2,425 ) 124,488 U.S. government sponsored agency mortgage-backed securities 255,969 397 (5,547 ) 250,819 Other debt securities 507 0 (6 ) 501 Total available-for-sale securities $ 602,114 $ 1,078 $ (9,446 ) $ 593,746 Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 649 $ 0 $ 0 $ 649 Total held-to-maturity securities $ 649 $ 0 $ 0 $ 649 The amortized cost and fair value of debt securities at December 31, 2019 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. Available-for-Sale Held-to-Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 84,795 $ 85,107 $ 517 $ 517 Due after one through five years 23,605 23,963 0 0 Due after five through ten years 91,043 91,175 0 0 Due after ten years 71,210 73,212 0 0 U.S. government sponsored agency mortgage-backed securities 291,874 295,245 0 0 Other debt securities 31,418 31,142 0 0 Total debt securities $ 593,945 $ 599,844 $ 517 $ 517 In 2019, we had a net securities gain of $783 thousand. There was a net gain of $3 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $80 thousand and a pre-tax loss of $77 thousand, and an unrealized gain of $780 thousand from the fair market value adjustment of equity securities. There was a net loss of $85 thousand realized in 2018 and a net gain of $73 thousand realized in 2017. Equity Securities at Fair Value In 2008, Visa distributed shares of Visa Class B restricted stock to CTBI which, upon resolution of certain pending legal matters, will become unrestricted and convertible into Visa Class A shares. Following this distribution, significant concern existed about the ultimate realizable value of these shares, and because CTBI did not have a basis in the stock, the shares were previously not recorded as an asset on CTBI’s balance sheet. In recent years, the concern over the realizable value has stabilized, and in late 2017 and 2018, several sales of Visa Class B shares have occurred. While not traded in observable markets, these sales were reported by several financial institutions in various SEC 8-K and 10-K filings. In 2018, FASB issued a technical correction to its guidance regarding equity securities, ASC 321-10-35-2, allowing an entity to subsequently elect to record an equity security without a readily determinable fair value. In 2018, CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value. On December 31, 2018, CTBI recorded a $ million gain on the recognition of the fair value of Visa Class B shares held in its portfolio. Equity securities at fair value as of December 31, 2019 were $ million. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $239.1 million at December 31, 2019 and $258.8 million at December 31, 2018. The amortized cost of securities sold under agreements to repurchase amounted to $261.5 million at December 31, 2019 and $289.1 million at December 31, 2018. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of December 31, 2019 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, 2019 was 42.8% compared to 75.7% as of December 31, 2018. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2019 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2019 . Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 25,955 $ (148 ) $ 25,807 State and political subdivisions 8,356 (37 ) 8,319 U.S. government sponsored agency mortgage-backed securities 19,317 (100 ) 19,217 Other debt securities 31,418 (276 ) 31,142 Total <12 months temporarily impaired AFS securities 85,046 (561 ) 84,485 12 Months or More U.S. Treasury and government agencies 82,339 (428 ) 81,911 State and political subdivisions 0 0 0 U.S. government sponsored agency mortgage-backed securities 91,609 (972 ) 90,637 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 173,948 (1,400 ) 172,548 Total U.S. Treasury and government agencies 108,294 (576 ) 107,718 State and political subdivisions 8,356 (37 ) 8,319 U.S. government sponsored agency mortgage-backed securities 110,926 (1,072 ) 109,854 Other debt securities 31,418 (276 ) 31,142 Total temporarily impaired AFS securities $ 258,994 $ (1,961 ) $ 257,033 The analysis performed as of December 31, 2018 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2018 . Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 78,905 $ (271 ) $ 78,634 State and political subdivisions 21,707 (194 ) 21,513 U.S. government sponsored agency mortgage-backed securities 61,940 (377 ) 61,563 Other debt securities 507 (6 ) 501 Total <12 months temporarily impaired AFS securities 163,059 (848 ) 162,211 12 Months or More U.S. Treasury and government agencies 97,955 (1,197 ) 96,758 State and political subdivisions 51,911 (2,231 ) 49,680 U.S. government sponsored agency mortgage-backed securities 147,658 (5,170 ) 142,488 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 297,524 (8,598 ) 288,926 Total U.S. Treasury and government agencies 176,860 (1,468 ) 175,392 State and political subdivisions 73,618 (2,425 ) 71,193 U.S. government sponsored agency mortgage-backed securities 209,598 (5,547 ) 204,051 Other debt securities 507 (6 ) 501 Total temporarily impaired AFS securities $ 460,583 $ (9,446 ) $ 451,137 U.S. Treasury and Government Agencies The unrealized losses in U.S. Treasury and government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2019, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. State and Political Subdivisions The unrealized losses in securities of state and political subdivisions were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2019, because CTBI does not intend to sell the investments before recovery of their amortized cost and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. U.S. Government Sponsored Agency Mortgage-Backed Securities The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate increases. CTBI expects to recover the amortized cost basis over the term of the securities. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2019, because (i) the decline in market value is attributable to changes in interest rates and not credit quality, (ii) CTBI does not intend to sell the investments, and (iii) it is not more likely than not we will be required to sell the investments before recovery of their amortized cost, which may be maturity. Other Debt Securities The unrealized losses in other debt securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at December 31, 2019, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Loans [Abstract] | |
Loans | 4. Loans Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows: (in thousands) December 31 2019 December 31 2018 Commercial construction $ 104,809 $ 82,715 Commercial secured by real estate 1,169,975 1,183,093 Equipment lease financing 481 1,740 Commercial other 389,683 377,198 Real estate construction 63,350 57,160 Real estate mortgage 733,003 722,417 Home equity 111,894 106,299 Consumer direct 148,051 144,289 Consumer indirect 527,418 533,727 Total loans $ 3,248,664 $ 3,208,638 CTBI has segregated and evaluates its loan portfolio through nine portfolio segments. CTBI serves customers in small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Therefore, CTBI’s exposure to credit risk is significantly affected by changes in these communities. Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development. Included in this category are improved property, land development, and tract development loans. The terms of these loans are generally short-term with permanent financing upon completion. Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/multi-family properties, farmland, and other commercial real estate. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Equipment lease financing loans are fixed or variable leases for commercial purposes. Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, floorplans, loans to financial institutions, loans for purchasing or carrying securities, and other commercial purpose loans. Commercial loans are underwritten based on the borrower’s ability to service debt from the business’s underlying cash flows. As a general practice, we obtain collateral such as real estate, equipment, or other assets, although such loans may be uncollateralized but guaranteed. Real estate construction loans are typically for owner-occupied properties. The terms of these loans are generally short-term with permanent financing upon completion. Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans. As a policy, CTBI holds adjustable rate loans and sells the majority of its fixed rate first lien mortgage loans into the secondary market. Changes in interest rates or market conditions may impact a borrower’s ability to meet contractual principal and interest payments. Residential real estate loans are secured by real property. Home equity lines are revolving adjustable rate credit lines secured by real property. Consumer direct loans are a mixture of fixed rate and adjustable rate products comprised of unsecured loans, consumer revolving credit lines, deposit secured loans, and all other consumer purpose loans. Consumer indirect loans are fixed rate loans secured by automobiles, trucks, vans, and recreational vehicles originated at the selling dealership underwritten and purchased by CTBI’s indirect lending department. Both new and used products are financed. Only dealers who have executed dealer agreements with CTBI participate in the indirect lending program. Not included in the loan balances above were loans held for sale in the amount of $1.2 million at December 31, 2019 and $2.5 million at December 31, 2018. Refer to note 1 above for further information regarding our nonaccrual policy. Nonaccrual loans segregated by class of loans were as follows: (in thousands) December 31 2019 December 31 2018 Commercial: Commercial construction $ 230 $ 639 Commercial secured by real estate 3,759 4,537 Commercial other 3,839 797 Residential: Real estate construction 634 22 Real estate mortgage 4,821 5,395 Home equity 716 477 Total nonaccrual loans $ 13,999 $ 11,867 The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of December 31, 2019 and 2018 : December 31, 2019 (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ and Accruing* Commercial: Commercial construction $ 118 $ 0 $ 467 $ 585 $ 104,224 $ 104,809 $ 237 Commercial secured by real estate 2,734 5,969 12,366 21,069 1,148,906 1,169,975 8,820 Equipment lease financing 0 0 0 0 481 481 0 Commercial other 880 284 6,267 7,431 382,252 389,683 2,586 Residential: Real estate construction 117 52 634 803 62,547 63,350 0 Real estate mortgage 774 5,376 10,320 16,470 716,533 733,003 7,088 Home equity 1,084 412 736 2,232 109,662 111,894 344 Consumer: Consumer direct 945 230 97 1,272 146,779 148,051 97 Consumer indirect 4,037 909 447 5,393 522,025 527,418 448 Total $ 10,689 $ 13,232 $ 31,334 $ 55,255 $ 3,193,409 $ 3,248,664 $ 19,620 December 31, 2018 (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ and Accruing* Commercial: Commercial construction $ 87 $ 58 $ 698 $ 843 $ 81,872 $ 82,715 $ 58 Commercial secured by real estate 6,287 1,204 8,776 16,267 1,166,826 1,183,093 4,632 Equipment lease financing 0 0 0 0 1,740 1,740 0 Commercial other 1,057 94 1,067 2,218 374,980 377,198 581 Residential: Real estate construction 144 438 28 610 56,550 57,160 6 Real estate mortgage 1,272 5,645 7,607 14,524 707,893 722,417 4,095 Home equity 898 365 441 1,704 104,595 106,299 246 Consumer: Consumer direct 918 191 74 1,183 143,106 144,289 74 Consumer indirect 4,715 975 507 6,197 527,530 533,727 506 Total $ 15,378 $ 8,970 $ 19,198 $ 43,546 $ 3,165,092 $ 3,208,638 $ 10,198 * 90+ and Accruing are also included in 90+ Days Past Due column. The risk characteristics of CTBI’s material portfolio segments are as follows: Commercial construction loans generally are made to customers for the purpose of building income-producing properties. Personal guarantees of the principals are generally required. Such loans are made on a projected cash flow basis and are secured by the project being constructed. Construction loan draw procedures are included in each specific loan agreement, including required documentation items and inspection requirements. Construction loans may convert to term loans at the end of the construction period, or may be repaid by the take-out commitment from another financing source. If the loan is to convert to a term loan, the repayment ability is based on the borrower’s projected cash flow. Risk is mitigated during the construction phase by requiring proper documentation and inspections whenever a draw is requested. Loans in amounts greater than $500,000 generally require a performance bond to be posted by the general contractor to assure completion of the project. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. As we underwrite our equipment lease financing in a manner similar to our commercial loan portfolio, the risk characteristics for equipment lease financing mirror that of the commercial loan portfolio. With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, CTBI generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences. Residential construction loans are handled through the home mortgage area of the bank. The repayment ability of the borrower and the maximum loan-to-value ratio are calculated using the normal mortgage lending criteria. Draws are processed based on percentage of completion stages including normal inspection procedures. Such loans generally convert to term loans after the completion of construction. Consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Our determination of a borrower’s ability to repay these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The indirect lending area of the bank generally deals with purchasing/funding consumer contracts with new and used automobile dealers. The dealers generate consumer loan applications which are forwarded to the indirect loan processing area for approval or denial. Loan approvals or denials are based on the creditworthiness and repayment ability of the borrower, and on the collateral value. The dealers may have limited recourse agreements with CTB. Credit Quality Indicators: CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings: ➢ Pass ➢ Watch ➢ Other assets especially mentioned (OAEM) ➢ Substandard ➢ Doubtful The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of December 31, 2019 and 2018 : (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Leases Commercial Other Total December 31, 2019 Pass $ 98,102 $ 1,036,573 $ 481 $ 358,203 $ 1,493,359 Watch 3,595 54,338 0 13,618 71,551 OAEM 254 27,964 0 6,065 34,283 Substandard 2,858 51,068 0 11,737 65,663 Doubtful 0 32 0 60 92 Total $ 104,809 $ 1,169,975 $ 481 $ 389,683 $ 1,664,948 December 31, 2018 Pass $ 74,222 $ 1,038,309 $ 1,740 $ 327,431 $ 1,441,702 Watch 3,070 71,834 0 28,986 103,890 OAEM 1,594 19,734 0 5,735 27,063 Substandard 3,829 53,125 0 14,970 71,924 Doubtful 0 91 0 76 167 Total $ 82,715 $ 1,183,093 $ 1,740 $ 377,198 $ 1,644,746 The following tables present the credit risk profile of CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of December 31, 2019 and 2018 : (in thousands) Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total December 31, 2019 Performing $ 62,716 $ 721,094 $ 110,834 $ 147,954 $ 526,970 $ 1,569,568 Nonperforming (1) 634 11,909 1,060 97 448 14,148 Total $ 63,350 $ 733,003 $ 111,894 $ 148,051 $ 527,418 $ 1,583,716 December 31, 2018 Performing $ 57,132 $ 712,927 $ 105,576 $ 144,215 $ 533,221 $ 1,553,071 Nonperforming (1) 28 9,490 723 74 506 10,821 Total $ 57,160 $ 722,417 $ 106,299 $ 144,289 $ 533,727 $ 1,563,892 (1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. The total of consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process totaled $2.4 million at December 31, 2019 compared to $3.3 million at December 31, 2018. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable CTBI will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection. The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2019 , 2018 , and 2017 : December 31, 2019 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 2,836 $ 2,837 $ 0 $ 3,234 $ 170 Commercial secured by real estate 40,346 41,557 0 36,976 1,601 Commercial other 7,829 9,489 0 9,889 460 Real estate mortgage 2,309 2,309 0 2,385 85 Loans with a specific valuation allowance: Commercial construction 174 174 99 215 11 Commercial secured by real estate 1,033 2,176 227 1,678 15 Commercial other 3,244 3,244 886 1,323 29 Totals: Commercial construction 3,010 3,011 99 3,449 181 Commercial secured by real estate 41,379 43,733 227 38,654 1,616 Commercial other 11,073 12,733 886 11,212 489 Real estate mortgage 2,309 2,309 0 2,385 85 Total $ 57,771 $ 61,786 $ 1,212 $ 55,700 $ 2,371 December 31, 2018 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 4,100 $ 4,100 $ 0 $ 3,923 $ 171 Commercial secured by real estate 29,645 31,409 0 30,250 1,412 Commercial other 8,285 9,982 0 8,774 530 Real estate construction 0 0 0 106 0 Real estate mortgage 1,882 1,882 0 1,666 41 Loans with a specific valuation allowance: Commercial construction 127 127 50 42 0 Commercial secured by real estate 1,854 2,983 605 2,051 1 Commercial other 473 473 146 285 16 Totals: Commercial construction 4,227 4,227 50 3,965 171 Commercial secured by real estate 31,499 34,392 605 32,301 1,413 Commercial other 8,758 10,455 146 9,059 546 Real estate construction 0 0 0 106 0 Real estate mortgage 1,882 1,882 0 1,666 41 Total $ 46,366 $ 50,956 $ 801 $ 47,097 $ 2,171 December 31, 2017 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 4,431 $ 4,439 $ 0 $ 4,835 $ 200 Commercial secured by real estate 28,480 30,365 0 27,753 1,344 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,444 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Loans with a specific valuation allowance: Commercial construction 153 173 25 155 0 Commercial secured by real estate 2,985 4,095 966 3,932 8 Commercial other 0 0 0 65 0 Totals: Commercial construction 4,584 4,612 25 4,990 200 Commercial secured by real estate 31,465 34,460 966 31,685 1,352 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,509 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Total $ 47,412 $ 52,212 $ 991 $ 49,343 $ 2,127 *Cash basis interest is substantially the same as interest income recognized. Included in certain loan categories of impaired loans are certain loans that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification. All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower. In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under CTBI’s internal underwriting policy. When we modify loans and leases in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. Certain loans have been modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances. Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 (in thousands) Number of Loans Term Modification Rate Modification Combination Post- Modification Outstanding Balance Commercial: Commercial construction 0 $ 0 $ 0 $ 0 $ 0 Commercial secured by real estate 17 6,105 0 679 6,784 Commercial other 17 1,565 0 264 1,829 Residential: Real estate mortgage 1 463 0 0 463 Total troubled debt restructurings 35 $ 8,133 $ 0 $ 943 $ 9,076 Year Ended December 31, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post- Modification Outstanding Balance Commercial: Commercial construction 5 $ 2,182 $ 0 $ 15 $ 2,197 Commercial secured by real estate 24 4,004 0 1,383 5,387 Commercial other 8 465 0 0 465 Residential: Real estate mortgage 3 264 0 704 968 Total troubled debt restructurings 40 $ 6,915 $ 0 $ 2,102 $ 9,017 No charge-offs have resulted from modifications for any of the presented periods. We had commitments to extend additional credit in the amount of $82 thousand and $45 thousand, respectively, at December 31, 2019 and 2018, on loans that were considered troubled debt restructurings. Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual. Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual. (in thousands) Year Ended December 31, 2019 Number of Loans Recorded Balance Commercial: Commercial construction 0 $ 0 Commercial secured by real estate 1 30 Commercial other 1 34 Residential: Real estate mortgage 1 463 Total defaulted restructured loans 3 $ 527 (in thousands) Year Ended December 31, 2018 Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 148 Commercial secured by real estate 1 17 Commercial other 1 84 Total defaulted restructured loans 4 $ 249 |
Mortgage Banking and Servicing
Mortgage Banking and Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
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 market value. The fair value is determined quarterly based on an independent third-party valuation using a discounted cash flow analysis and calculated using a computer pricing model. The system used in this evaluation, Compass Point, attempts to quantify loan level idiosyncratic risk by calculating a risk derived value. As a result, each loan’s unique characteristics determine the valuation assumptions ascribed to that loan. Additionally, the computer valuation is based on key economic assumptions including the prepayment speeds of the underlying loans generated using the Andrew Davidson Prepayment Model, FHLMC/FNMA guidelines, the weighted average life of the loan, the discount rate, the weighted average coupon, and the weighted-average default rate, as applicable. Along with the gains received from the sale of loans, fees are received for servicing loans. These fees include late fees, which are recorded in interest income, and ancillary fees and monthly servicing fees, which are recorded in noninterest income. Costs of servicing loans are charged to expense as incurred. Changes in fair market value of the MSRs are reported as an increase or decrease to mortgage banking income. The following table presents the components of mortgage banking income: (in thousands) Year Ended December 31 2019 2018 2017 Net gain on sale of mortgage loans held for sale $ 1,746 $ 1,288 $ 1,232 Net loan servicing income (expense) Servicing fees 1,297 1,275 1,255 Late fees 72 73 84 Ancillary fees 190 282 239 Fair value adjustments (975 ) (343 ) (361 ) Net loan servicing income 584 1,287 1,217 Mortgage banking income $ 2,330 $ 2,575 $ 2,449 Mortgage loans serviced for others are not included in the accompanying balance sheets. Loans serviced for the benefit of others (primarily FHLMC) totaled $486 million, $462 million, and $462 million at December 31, 2019, 2018, and 2017, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts, disbursing payments to investors, and processing foreclosures. Custodial escrow balances maintained in connection with the foregoing loan servicing, and included in demand deposits, were approximately $1.4 million, $ million, and $ million Activity for capitalized mortgage servicing rights using the fair value method is as follows: (in thousands) 2019 2018 2017 Fair value of MSRs, beginning of period $ 3,607 $ 3,484 $ 3,433 New servicing assets created 631 466 412 Change in fair value during the period due to: Time decay (1) (167 ) (189 ) (184 ) Payoffs (2) (293 ) (227 ) (268 ) Changes in valuation inputs or assumptions (3) (515 ) 73 91 Fair value of MSRs, end of period $ 3,263 $ 3,607 $ 3,484 (1) Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns. (2) Represents decrease in value due to loans that paid off during the period. (3) Represents change in value resulting from market-driven changes in interest rates. The fair values of capitalized mortgage servicing rights were $3.3 million, $3.6 million, and $3.5 million at December 31, 2019, 2018, and 2017, respectively. Fair values for the years ended December 31, 2019, 2018, and 2017 were determined by third-party valuations with a resulting 10.1% average discount rate over the last three years, respectively, and weighted average default rates of 2.69%, 2.57%, and 3.03%, respectively. Prepayment speeds generated using the Andrew Davidson Prepayment Model averaged 11.7%, 9.5%, and 10.0% at December 31, 2019, 2018, and 2017, respectively. MSR values are very sensitive to movement in interest rates as expected future net servicing income depends on the projected balance of the underlying loans, which can be greatly impacted by the level of prepayments. CTBI does not currently hedge against changes in the fair value of its MSR portfolio. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
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 2019 and 2018 is as follows: (in thousands) 2019 2018 Related party extensions of credit, beginning of period $ 19,463 $ 16,832 New loans and advances on lines of credit 1 6,425 Repayments (1,686 ) (3,794 ) Increase (decrease) due to changes in related parties 20,038 0 Related party extensions of credit, end of period $ 37,816 $ 19,463 The aggregate balances of related party deposits at December 31, 2019 and 2018 were $20.9 million and $16.6 million, respectively. A director of CTBI is a shareholder in a law firm that provided services to CTBI and its subsidiaries during the years 2019, 2018, and 2017. Approximately $1.1 million in legal fees and $0.1 million in expenses paid on behalf of CTBI, $1.2 million total, were paid to this law firm during each of the years 2019, 2018, and 2017. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Abstract] | |
Allowance for Loan and Lease Losses | 7. Allowance for Loan and Lease Losses The following tables present the balance in the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 , 2018 , and 2017 : 2019 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 862 $ 14,531 $ 12 $ 4,993 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,908 Provision charged to expense 497 (137 ) (8 ) 3,032 (40 ) 414 172 528 361 4,819 Losses charged off (72 ) (727 ) 0 (2,179 ) (100 ) (767 ) (139 ) (1,100 ) (4,652 ) (9,736 ) Recoveries 12 358 0 509 0 152 23 400 2,651 4,105 Balance, end of year $ 1,299 $ 14,025 $ 4 $ 6,355 $ 372 $ 4,232 $ 897 $ 1,711 $ 6,201 $ 35,096 Ending balance: Individually evaluated for impairment $ 99 $ 227 $ 0 $ 886 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,212 Collectively evaluated for impairment $ 1,200 $ 13,798 $ 4 $ 5,469 $ 372 $ 4,232 $ 897 $ 1,711 $ 6,201 $ 33,884 Loans Ending balance: Individually evaluated for impairment $ 3,010 $ 41,379 $ 0 $ 11,073 $ 0 $ 2,309 $ 0 $ 0 $ 0 $ 57,771 Collectively evaluated for impairment $ 101,799 $ 1,128,596 $ 481 $ 378,610 $ 63,350 $ 730,694 $ 111,894 $ 148,051 $ 527,418 $ 3,190,893 2018 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Provision charged to expense 115 786 (6 ) 824 (115 ) (336 ) 39 572 4,288 6,167 Losses charged off 0 (988 ) 0 (1,513 ) (33 ) (1,004 ) (69 ) (997 ) (6,394 ) (10,998 ) Recoveries 61 224 0 643 0 85 14 445 3,116 4,588 Balance, end of year $ 862 $ 14,531 $ 12 $ 4,993 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,908 Ending balance: Individually evaluated for impairment $ 50 $ 605 $ 0 $ 146 $ 0 $ 0 $ 0 $ 0 $ 0 $ 801 Collectively evaluated for impairment $ 812 $ 13,926 $ 12 $ 4,847 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,107 Loans Ending balance: Individually evaluated for impairment $ 4,227 $ 31,499 $ 0 $ 8,758 $ 0 $ 1,882 $ 0 $ 0 $ 0 $ 46,366 Collectively evaluated for impairment $ 78,488 $ 1,151,594 $ 1,740 $ 368,440 $ 57,160 $ 720,535 $ 106,299 $ 144,289 $ 533,727 $ 3,162,272 2017 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (237 ) 2,281 (24 ) 1,744 31 189 257 418 2,862 7,521 Losses charged off (10 ) (2,038 ) 0 (1,893 ) 0 (615 ) (178 ) (965 ) (5,386 ) (11,085 ) Recoveries 49 75 0 532 0 87 4 525 2,510 3,782 Balance, end of year $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Ending balance: Individually evaluated for impairment $ 25 $ 966 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 991 Collectively evaluated for impairment $ 661 $ 13,543 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 35,160 Loans Ending balance: Individually evaluated for impairment $ 4,584 $ 31,465 $ 0 $ 9,481 $ 318 $ 1,564 $ 0 $ 0 $ 0 $ 47,412 Collectively evaluated for impairment $ 71,895 $ 1,157,215 $ 3,042 $ 341,553 $ 67,040 $ 708,006 $ 99,356 $ 137,754 $ 489,667 $ 3,075,528 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | 8. Premises and Equipment Premises and equipment are summarized as follows: (in thousands) December 31 2019 2018 Land and buildings $ 80,552 $ 79,815 Leasehold improvements 4,805 4,805 Furniture, fixtures, and equipment 39,964 38,576 Construction in progress 75 1,396 Total premises and equipment 125,396 124,592 Less accumulated depreciation and amortization (81,350 ) (79,301 ) Premises and equipment, net $ 44,046 $ 45,291 Depreciation and amortization of premises and equipment for 2019, 2018, and 2017 was $3.8 million, $3.8 million, and $3.9 million, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | 9. Other Real Estate Owned Activity for other real estate owned was as follows: (in thousands) 2019 2018 Beginning balance of other real estate owned $ 27,273 $ 31,996 New assets acquired 3,384 5,459 Fair value adjustments (4,253 ) (2,530 ) Sale of assets (6,924 ) (7,652 ) Ending balance of other real estate owned $ 19,480 $ 27,273 Carrying costs and fair value adjustments associated with foreclosed properties were $5.5 million, $4.3 million, and $4.5 million for 2019, 2018, and 2017, 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: (in thousands) December 31 2019 2018 1-4 family $ 3,630 $ 5,253 Construction/land development/other 10,211 15,017 Multifamily 88 88 Non-farm/non-residential 5,551 6,915 Total foreclosed properties $ 19,480 $ 27,273 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | 10. Deposits Major classifications of deposits are categorized as follows: (in thousands) December 31 2019 2018 Noninterest bearing deposits $ 865,760 $ 803,316 NOW accounts 51,179 56,964 Money market deposits 985,322 887,288 Savings 404,151 406,749 Certificates of deposit and other time deposits of $100,000 or more 597,628 651,967 Certificates of deposit and other time deposits less than $100,000 501,532 499,666 Total deposits $ 3,405,572 $ 3,305,950 Certificates of deposit and other time deposits of $250,000 or more at December 31, 2019 and 2018 were $227.7 million and $219.0 million, respectively. Wholesale brokered deposits at December 31, 2019 and 2018 were $37.1 million and $42.3 million, respectively. Maturities of certificates of deposits and other time deposits are presented below: Maturities by Period at December 31, 2019 (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 $ 597,628 $ 448,071 $ 69,580 $ 32,525 $ 20,513 $ 26,738 $ 201 Certificates of deposit and other time deposits less than $100,000 501,532 408,359 42,944 18,423 16,316 15,086 404 Total maturities $ 1,099,160 $ 856,430 $ 112,524 $ 50,948 $ 36,829 $ 41,824 $ 605 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Borrowings | 11. Borrowings Short-term debt is categorized as follows: (in thousands) December 31 2019 2018 Repurchase agreements $ 226,917 $ 232,712 Federal funds purchased 7,906 1,180 Total short-term debt $ 234,823 $ 233,892 All federal funds purchased mature and reprice daily. See note 12 for information regarding the maturities of our repurchase agreements. The average rates paid for federal funds purchased and repurchase agreements on December 31, 2019 were 1.45% and 1.82%, respectively. The maximum balance for repurchase agreements at any month-end during 2019 occurred at March 31, 2019, with a month-end balance of $237.5 million. The average balance of repurchase agreements for the year was $228.5 million. Long-term debt is categorized as follows: (in thousands) December 31 2019 2018 Junior subordinated debentures, 3.50%, due 6/1/37 $ 57,841 $ 59,341 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 $ million was purchased in the open market at a price of $ million, resulting in a gain of $ million. On November 27, 2019, the coupon rate was set at 3.50% for the March 2, 2020 distribution date, which was based on the three-month LIBOR rate as of November 27, 2019 of 1.91% plus 1.59%. |
Repurchase Agreements
Repurchase Agreements | 12 Months Ended |
Dec. 31, 2019 | |
Repurchase Agreements [Abstract] | |
Repurchase Agreements | 12. Repurchase Agreements We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets. We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of investment securities available for sale pledged as collateral under repurchase agreements totaled $264.9 million and $285.2 million at December 31, 2019 and December 31, 2018, 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, 2019 and December 31, 2018 is presented in the following tables: December 31, 2019 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and government agencies $ 15,001 $ 0 $ 3,479 $ 58,953 $ 77,433 State and political subdivisions 51,193 0 1,768 11,165 64,126 U.S. government sponsored agency mortgage-backed securities 35,480 0 1,996 47,882 85,358 Total $ 101,674 $ 0 $ 7,243 $ 118,000 $ 226,917 December 31, 2018 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and government agencies $ 25,346 $ 0 $ 2,548 $ 60,699 $ 88,593 State and political subdivisions 58,864 0 2,995 10,384 72,243 U.S. government sponsored agency mortgage-backed securities 22,076 0 1,877 47,923 71,876 Total $ 106,286 $ 0 $ 7,420 $ 119,006 $ 232,712 |
Advances from Federal Home Loan
Advances from Federal Home Loan Bank | 12 Months Ended |
Dec. 31, 2019 | |
Advances from Federal Home Loan Bank [Abstract] | |
Advances from Federal Home Loan Bank | 13. Advances from Federal Home Loan Bank Federal Home Loan Bank advances consisted of the following monthly amortizing borrowings at December 31: (in thousands) 2019 2018 Monthly amortizing $ 415 $ 436 Total FHLB advances $ 415 $ 436 The advances from the FHLB that require monthly principal payments were due for repayment as follows: Principal Payments Due by Period at December 31, 2019 (in thousands) Total Within 1 Year 2 Years 3 Years 4 Years 5 Years After 5 Years Outstanding advances, weighted average interest rate – 0.06% $ 415 $ 22 $ 20 $ 21 $ 20 $ 21 $ 311 At December 31, 2019, CTBI had monthly amortizing FHLB advances totaling $0.4 million at a weighted average interest rate of 0.06%. Advances totaling $0.4 million at December 31, 2019 were collateralized by FHLB stock of $10.5 million and a blanket lien on qualifying 1-4 family first mortgage loans. As of December 31, 2019, CTBI had a $606.7 million FHLB borrowing capacity with $0.4 million in advances and $214.4 million in letters of credit used for public fund pledging leaving $391.9 million available for additional advances. The advances had fixed interest rates of 0.00%% and 2.00% with a weighted average rate of 0.06%. The advances are subject to restrictions or penalties in the event of prepayment. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes The components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses, are as follows: (in thousands) 2019 2018 2017 Current income tax expense $ 8,864 $ 11,560 $ 20,108 Deferred income tax expense (benefit) 2,030 (246 ) (259 ) Effect of Tax Cuts & Jobs Act benefit 0 0 (2,831 ) Effect of Kentucky tax legislation benefit (3,442 ) 0 0 Total income tax expense $ 7,452 $ 11,314 $ 17,018 The Tax Cuts and Jobs Act (the “Act”) was enacted in December 2017. The Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent. As of December 31, 2018, we completed our accounting for the tax effects of enactment of the Act. The effect of the Tax Cuts and Jobs Act (benefit) listed above for the year 2017, reflects the revaluation of our net deferred tax liability based on a U.S. federal tax rate of 21 percent. A reconciliation of income tax expense at the statutory rate to our actual income tax expense is shown below: (in thousands) 2019 2018 2017 Computed at the statutory rate $ 15,118 21.00 % $ 14,814 21.00 % $ 23,979 35.00 % Adjustments resulting from: Tax-exempt interest (563 ) (0.78 ) (673 ) (0.95 ) (1,259 ) (1.84 ) Housing and new markets credits (4,471 ) (6.21 ) (2,635 ) (3.73 ) (2,579 ) (3.76 ) Dividends received deduction 0 - (9 ) (0.01 ) (129 ) (0.19 ) Bank owned life insurance (284 ) (0.39 ) (599 ) (0.85 ) (492 ) (0.72 ) ESOP dividend deduction (203 ) (0.28 ) (188 ) (0.27 ) (319 ) (0.47 ) Stock option exercises and restricted stock vesting (10 ) (0.01 ) (39 ) (0.06 ) (170 ) (0.25 ) Effect of Tax Cuts & Jobs Act 0 - 0 - (2,831 ) (4.13 ) Effect of KY tax legislation (2,719 ) (3.78 ) 0 - 0 - State income taxes 405 0.56 409 0.58 429 0.63 Other 179 0.24 234 0.33 389 0.57 Total $ 7,452 10.35 % $ 11,314 16.04 % $ 17,018 24.84 % The components of the net deferred tax liability as of December 31 are as follows: (in thousands) 2019 2018 Deferred tax assets: Allowance for loan and lease losses $ 8,757 $ 7,541 Interest on nonperforming loans 485 531 Accrued expenses 1,100 1,093 Allowance for other real estate owned 1,437 1,435 Unrealized losses on AFS securities 0 1,757 State net operating loss carryforward 3,786 3,957 Lease liabilities 3,859 0 Other 294 164 Total deferred tax assets 19,718 16,478 Deferred tax liabilities: Depreciation and amortization (15,048 ) (12,210 ) FHLB stock dividends (1,441 ) (1,704 ) Loan fee income (656 ) (419 ) Mortgage servicing rights (814 ) (757 ) Right of use assets (3,698 ) 0 Unrealized gains on AFS securities (1,534 ) 0 Limited partnership investments (326 ) (257 ) Other (1,101 ) (537 ) Total deferred tax liabilities (24,618 ) (15,884 ) Beginning balance for valuation allowance for deferred tax asset 3,957 3,930 Change in valuation allowance (3,747 ) 27 Ending balance for valuation allowance for deferred tax asset 210 $ 3,957 Net deferred tax liability $ (5,110 ) $ (3,363 ) CTBI recognized a gross tax benefit of $3.4 million in 2019 as a result of the recently enacted tax legislation by the Commonwealth of Kentucky. As a result of HB 458 on combined reporting, CTBI recorded a deferred tax asset for the Kentucky net operating loss carryforward. The losses are expected to be utilized when CTBI begins filing a combined Kentucky income tax return with CTB and CTIC. A valuation allowance is maintained for the loss that will expire in 2020. The loss carryforward is $96.0 million and expires over varying periods through 2039. The Kentucky deferred tax asset amounts and related valuation allowance for holding company net operating losses were previously reported at net due to a full valuation allowance and the immaterial nature of amounts. The 2018 amounts reported herein have been revised to report the items gross. CTBI accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes 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 2016, and state and local income tax examinations by tax authorities for years before 2015. For federal tax purposes, CTBI recognizes interest and penalties on income taxes as a component of income tax expense. CTBI files consolidated income tax returns with its subsidiaries. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits [Abstract] | |
Employee Benefits | 15. Employee Benefits CTBI maintains two separate retirement savings plans, a 401(k) Plan and an Employee Stock Ownership Plan (“ESOP”). The 401(k) Plan is available to all employees (age 21 and over) who are credited with one year of service (12 consecutive month period with at least 1,000 hours). Participants in the plan have the option to contribute from 1% to 20% of their annual compensation. CTBI matches 50% of participant contributions up to 8% of gross pay. CTBI may, at its discretion, contribute an additional percentage of covered employees’ compensation. CTBI’s matching contributions were $1.1 million for the years ended December 31, 2019 and 2018, and $1.0 million for the year ended December 31, 2017. The 401(k) Plan owned 424,591, 416,360, and 406,021 shares of CTBI’s common stock at December 31, 2019, 2018, and 2017, 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 has the same entrance requirements as the 401(k) Plan above. CTBI currently contributes 4% of covered employees’ compensation to the ESOP. The ESOP uses the contributions to acquire shares of CTBI’s common stock. CTBI’s contributions to the ESOP were $1.7 million for the year ended December 31, 2019 and $1.6 million for the years ended December 31, 2018 and 2017. The ESOP owned 738,212, 726,327, and 737,079 shares of CTBI’s common stock at December 31, 2019, 2018, and 2017, 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, 2019, 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, 481,396 of which were available at December 31, 2019. 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, 2019 : 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 20 $ 32.04 481(a ) Restricted stock (c) (b) (a) Performance units (d) (b) (a) Stock appreciation rights (“SARs”) (e) (b) (a) Total 481 (a) Under the 2015 Plan, 550,000 shares are authorized for issuance; 72,909 have been issued as of December 31, 2019 In January of 2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. Additional shares will not be issued pursuant to awards granted from prior plans. (b) Not applicable (c) The maximum number of shares of restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a participant during any calendar year is 75,000 shares. (d) No performance units payable in stock had been issued as of December 31, 2019. The maximum payment that can be made pursuant to performance units granted to any one participant in any calendar year is $1,000,000. (e) No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any calendar year is 100,000 shares. The following table details the shares available for future issuance under the 2015 Plan at December 31, 2019 . Plan Category Shares Available for Future Issuance Shares available at January 1, 2019 508,729 Stock option grants 0 Restricted stock grants (27,921 ) Forfeitures 588 Shares available for future issuance at December 31, 481,396 There were no stock options granted in 2017, 2018 or 2019. The 2015 Plan: CTBI’s stock option activity for the 2015 Plan for the years ended December 31, 2019 , 2018 , and 2017 is summarized as follows: December 31 2019 _ 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 0 $ 0 10,000 $ 33.55 10,000 $ 33.55 Granted 0 0 0 0 0 0 Exercised 0 0 (10,000 ) 33.55 0 0 Forfeited/expired 0 0 0 0 0 0 Outstanding at end of year 0 $ 0 0 $ 0 10,000 $ 33.55 Exercisable at end of year 0 $ 0 0 $ 0 0 $ 0 *Pursuant to the 2015 Plan provisions, the death of the option holder accelerated the vesting of 10,000 shares in 2018. There were no options granted from the 2015 Plan for the years 2019, 2018, or 2017. The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2015 Plan for the years ended December 31, 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Options exercised $ 0 $ 140 0 Options exercisable 0 0 0 Outstanding options 0 0 136 The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2019 , 2018 and 2017 : December 31 2019 2018 2017 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 34,255 $ 44.46 33,085 $ 41.84 17,496 $ 33.55 Granted 27,921 41.12 11,320 49.30 23,668 46.45 Vested (10,596 ) 42.39 (8,761 ) 40.46 (5,751 ) 35.79 Forfeited (588 ) 43.04 (1,389 ) 46.77 (2,328 ) 41.31 Outstanding at end of year 50,992 $ 43.08 34,255 $ 44.46 33,085 $ 41.84 The 2006 Plan: CTBI’s stock option activity for the 2006 Plan for the years ended December 31, 2019 , 2018 , and 2017 is summarized as follows: December 31 2019 2018 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 32,571 $ 32.47 35,376 $ 31.90 61,041 $ 29.84 Granted 0 0 0 0 0 0 Exercised (12,076 ) 33.19 (2,475 ) 25.52 (25,665 ) 27.01 Forfeited/expired 0 0 (330 ) 23.79 0 0 Outstanding at end of year 20,495 $ 32.04 32,571 $ 32.47 35,376 $ 31.90 Exercisable at end of year 495 $ 22.81 2,571 $ 25.11 5,376 $ 25.22 A summary of the status of CTBI’s 2006 Plan for nonvested options as of December 31, 2019 , and changes during the year ended December 31, 2019 , is presented as follows: Nonvested Options Options Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 30,000 $ 6.98 Granted 0 0 Vested 10,000 7.76 Forfeited 0 0 Nonvested at December 31, 2019 20,000 $ 6.59 The weighted average remaining contractual term in years of the options outstanding at December 31, 2019 was 5.0 years. There were no options granted from the 2006 Plan for the years 2019 , 2018 and 2017. The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2006 Plan for the years ended December 31, 2019 , 2018 , and 2017 : (in thousands) 2019 2018 2017 Options exercised $ 135 $ 56 $ 537 Options exercisable 12 37 118 Outstanding options 299 233 538 The following table shows restricted stock activity for the years ended December 31, 2019 , 2018 , and 2017 : December 31 2019 2018 2017 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 2,064 $ 32.27 5,426 $ 33.24 11,989 $ 32.85 Granted 0 0 0 0 0 0 Vested (2,064 ) $ 32.27 (3,236 ) 33.90 (6,214 ) 32.48 Forfeited 0 0 (126 ) 32.27 (349 ) 33.31 Outstanding at end of year 0 $ 0.00 2,064 $ 32.27 5,426 $ 33.24 The following table shows the unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2019 , 2018 , and 2017 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, 2019 , 2018 , and 2017 . (in thousands) 2019 2018 2017 Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end $ 1,410 $ 1,072 $ 1,242 Grant date fair value of shares vested for the year 605 645 564 Cash received from option exercises under all share-based payment arrangements for the year 401 399 693 Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year 27 49 138 The unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans at December 31, 2019 is expected to be recognized over a weighted-average period of 1.9 years. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 16. Leases On January 1, 2019, CTBI adopted ASU No. 2016-02, Leases, (Topic 842) and all subsequent ASUs that modified Topic 842. Based on leases outstanding at December 31, 2018, the impact of adoption was recording a lease liability of approximately $ million, a right-of-use asset of approximately $ million, and a cumulative-effect adjustment to retained earnings of approximately $ million, net of a $ million adjustment to our deferred tax liability. CTBI has finance lease for property but no material subleases 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 remaining lease terms of year to years, some of which include options to extend the leases for up to years. We evaluated the original lease terms for each operating lease, some of which include options to extend the leases for up to 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, 2019 were as follows: (in thousands) Year Ended December 31, 2019 Finance lease cost: Amortization of right-of-use assets – finance leases $ 52 Interest on lease liabilities – finance leases 54 Total finance lease cost 106 Short-term lease cost 306 Operating lease cost 1,773 Sublease income 257 Total lease cost $ 1,928 Supplemental cash flow information related to CTBI’s operating and finance leases for the year ended December 31, 2019 was as follows: (in thousands) Year Ended December 31, 2019 Finance lease – operating cash flows $ 54 Finance lease – financing cash flows 14 Operating lease – operating cash flows (fixed payments) 1,665 New right-of-use assets – operating leases 9 New right-of-use assets – financing leases 0 Weighted average lease term – financing leases 26.02 years Weighted average lease term – operating leases 13.84 years Weighted average discount rate – financing leases 3.70 % Weighted average discount rate – operating leases 3.45 % Maturities of lease liabilities as of December 31, 2019 are as follows: (in thousands) Operating Leases Finance Leases 2019 $ 1,677 $ 68 2020 1,710 75 2021 1,703 75 2022 1,626 75 2023 1,313 75 Thereafter 9,654 1,985 Total lease payments 17,683 2,353 Less imputed interest (3,954 ) (897 ) Total $ 13,729 $ 1,456 At December 31, 2018 , m inimum non-cancellable rental payments were as follows: (in thousands) Operating Lease Payments 2019 $ 1,999 2020 1,710 2021 1,737 2022 1,760 2023 1,696 Thereafter 13,031 Total $ 21,933 |
Fair Market Value of Financial
Fair Market Value of Financial Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Market Value of Financial Assets and Liabilities [Abstract] | |
Fair Market Value of Financial Assets and Liabilities | 17. Fair Market Value of Financial Assets and Liabilities Fair Value Measurements ASC 820, Fair Value Measurements 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, 2019 and December 31, 2018 and indicate the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2019 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 $ 171,150 $ 54,263 $ 116,887 $ 0 State and political subdivisions 102,307 0 102,307 0 U.S. government sponsored agenc y mortgage-backed securities 295,245 0 295,245 0 Other debt securities 31,142 0 31,142 0 Equity securities at fair value 1,953 0 0 1,953 Mortgage servicing rights 3,263 0 0 3,263 (in thousands) Fair Value Measurements at December 31, 2018 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 217,938 $ 91,028 $ 126,910 $ 0 State and political subdivisions 124,488 0 124,488 0 U.S. government sponsored agenc y mortgage-backed securities 250,819 0 250,819 0 Other debt securities 501 0 501 0 Equity securities at fair value 1,173 0 0 1,173 Mortgage servicing rights 3,607 0 0 3,607 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, 2019 and December 31, 2018. There have been no significant changes in the valuation techniques during the year ended December 31, 2019. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available-for-Sale Securities Securities classified as available-for-sale are reported at fair value on a recurring basis. U.S. Treasury and government agencies are classified as Level 1 of the valuation hierarchy where quoted market prices are available in the active market on which the individual securities are traded. If quoted market prices are not available, CTBI obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement. CTBI reviews the pricing quarterly to verify the reasonableness of the pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other factors. U.S. Treasury and government agencies, state and political subdivisions, U.S. government sponsored agency mortgage-backed securities, and other debt securities are classified as Level 2 inputs. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States. Equity Securities at Fair Value As of December 31, 2019 and December 31, 2018, the only securities owned by CTBI that were valued using Level 3 criteria are Visa Class B Stock (included in equity securities at fair value). In determining fair value for Visa Class B Stock, CTBI utilizes the expertise of an independent third party. Accordingly, fair value is determined by the independent third party using an income approach by utilizing assumptions about factors such as quarterly common stock dividend payments, the conversion of the securities to the relevant Class A Stock shares subject to the prevailing conversion rate and conversion date. We have reviewed the assumptions, processes, and conclusions of the third party provider. We have determined these assumptions, processes, and conclusions to be reasonable and appropriate in determining the fair value of this asset. See the table below for inputs and valuation techniques used for Level 3 equity securities. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. CTBI reports mortgage servicing rights at fair value on a recurring basis with subsequent remeasurement of MSRs based on change in fair value. In determining fair value, CTBI utilizes the expertise of an independent third party. Accordingly, fair value is determined by the independent third party by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements of mortgage servicing rights are tested for impairment on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States. We have reviewed the assumptions, processes, and conclusions of the third party provider. We have determined these assumptions, processes, and conclusions to be reasonable and appropriate in determining the fair value of this asset. See the table below for inputs and valuation techniques used for Level 3 mortgage servicing rights. Transfers between Levels There were no transfers between Levels 1, 2, and 3 as of December 31, 2019. Level 3 Reconciliation Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs: (in thousands) 2019 2018 Equity Securities at Fair Value Mortgage Servicing Rights Equity Securities at Fair Value Mortgage Servicing Rights Beginning balance $ 1,173 $ 3,607 $ 0 $ 3,484 Total unrealized gains (losses) Included in net income 780 (515 ) 1,173 73 Issues 0 631 0 466 Settlements 0 (460 ) 0 (416 ) Ending balance $ 1,953 $ 3,263 $ 1,173 $ 3,607 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 $ 780 $ (515 ) $ 1,173 $ 73 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: Noninterest Income (in thousands) 2019 2018 Total gains (losses) $ (195 ) $ 830 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, 2019 and December 31, 2018 and indicate the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2019 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 3,217 $ 0 $ 0 $ 3,217 Other real estate owned 12,593 0 0 12,593 (in thousands) Fair Value Measurements at December 31, 2018 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 747 $ 0 $ 0 $ 747 Other real estate owned 6,500 0 0 6,500 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. CTBI considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results. Loans considered impaired under ASC 310-35, Impairment of a Loan, Other Real Estate Owned In accordance with the provisions of ASC 360, Property, Plant, and Equipment, 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, 2019 and December 31, 2018. (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2019 Valuation Technique(s) Unobservable Input Range (Weighted Average) Equity securities at fair value $1,953 Discount cash flows, computer pricing model Discount rate 8.0% - 12.0% (10.0%) Conversion date Dec 2022 Dec 2026 ( Dec 2024 Mortgage servicing rights $3,263 Discount cash flows, computer pricing model Constant prepayment rate 0.0% - 24.3% (11.7%) Probability of default 0.0% - 100.0% (2.7%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $3,217 Market comparable properties Marketability discount 7.0% - 99.0% (46.0%) Other real estate owned $12,593 Market comparable properties Comparability adjustments 6.0% - 29.8% (11.3%) (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2018 Valuation Technique(s) Unobservable Input Range (Weighted Average) Equity securities at fair value $1,173 Discount cash flows, computer pricing model Discount rate 8.0% - 12.0% (10.0%) Conversion date Dec 2022 Dec 2026 Dec 2024 Mortgage servicing rights $3,607 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 28.1% (9.5%) Probability of default 0.0% - 100.0% (2.6%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $747 Market comparable properties Marketability discount 0.0% - 95.1% (41.5%) Other real estate owned $6,500 Market comparable properties Comparability adjustments 6.0% - 47.6% (14.9%) Sensitivity of Significant Unobservable Inputs The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. Equity Securities at Fair Value Fair market value for equity securities is derived based on unobservable inputs, such as the discount rate, quarterly dividends payable to the Visa Class B common stock and the prevailing conversion rate at the conversion date. The most recent conversion rate of 1.6228 and the most recent dividend rate of 0.4868 were used to derive the fair value estimate. Significant increases (decreases) in either of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for discount rate is accompanied by a directionally opposite change in the fair value estimate. Mortgage Servicing Rights Fair market value for mortgage servicing rights is derived based on unobservable inputs, such as prepayment speeds of the underlying loans generated using the Andrew Davidson Prepayment Model, FHLMC/FNMA guidelines, the weighted average life of the loan, the discount rate, the weighted average coupon, and the weighted average default rate. Significant increases (decreases) in either of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for prepayment speeds is accompanied by a directionally opposite change in the assumption for interest rates. Fair Value of Financial Instruments The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2019 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of December 31, 2019 were measured using an exit price notion. (in thousands) Fair Value Measurements at December 31, 2019 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 $ 264,683 $ 264,683 $ 0 $ 0 Certificates of deposit in other banks 245 0 245 0 Securities available-for-sale 599,844 54,263 545,581 0 Securities held-to-maturity 517 0 517 0 Equity securities at fair value 1,953 0 0 1,953 Loans held for sale 1,167 1,191 0 0 Loans, net 3,213,568 0 0 3,283,876 Federal Home Loan Bank stock 10,474 0 10,474 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,836 0 14,836 0 Mortgage servicing rights 3,263 0 0 3,263 Financial liabilities: Deposits $ 3,405,572 $ 865,760 $ 2,560,271 $ 0 Repurchase agreements 226,917 0 0 226,921 Federal funds purchased 7,906 0 7,906 0 Advances from Federal Home Loan Bank 415 0 446 0 Long-term debt 57,841 0 0 49,382 Accrued interest payable 2,839 0 2,839 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2018 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 141,450 $ 141,450 $ 0 $ 0 Certificates of deposit in other banks 3,920 0 3,914 0 Securities available-for-sale 593,746 91,028 502,718 0 Securities held-to-maturity 649 0 649 0 Equity securities at fair value 1,173 0 0 1,173 Loans held for sale 2,461 2,518 0 0 Loans, net 3,172,730 0 0 3,175,908 Federal Home Loan Bank stock 14,713 0 14,713 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,432 0 14,432 0 Mortgage servicing rights 3,607 0 0 3,607 Financial liabilities: Deposits $ 3,305,950 $ 803,316 $ 2,513,084 $ 0 Repurchase agreements 232,712 0 0 232,796 Federal funds purchased 1,180 0 1,180 0 Advances from Federal Home Loan Bank 436 0 468 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 2,902 0 2,902 0 Unrecognized financial instruments: Letters of credit Commitments to extend credit $ 0 $ 0 0 $ 0 Forward sale commitments 0 0 0 0 |
Off-Balance Sheet Transactions
Off-Balance Sheet Transactions and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Off-Balance Sheet Transactions and Guarantees [Abstract] | |
Off-Balance Sheet Transactions and Guarantees | 18. Off-Balance Sheet Transactions and Guarantees CTBI is a party to transactions with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit in the form of unused lines of credit. CTBI uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At December 31, CTBI had the following off-balance sheet financial instruments, whose approximate contract amounts represent additional credit risk to CTBI: (in thousands) 2019 2018 Standby letters of credit $ 30,679 $ 29,410 Commitments to extend credit 564,229 510,513 Total off-balance sheet financial instruments $ 594,908 $ 539,923 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, 2019, we maintained a credit loss reserve recorded in other liabilities of approximately $8 thousand relating to these financial standby letters of credit. The reserve coverage calculation was determined using essentially the same methodology as used for the allowance for loan and lease losses. Approximately 67% of the total standby letters of credit are secured, with $15.0 million of the total $30.7 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, 2019, a credit loss reserve recorded in other liabilities of $266 thousand was maintained relating to these commitments. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate, and residential real estate. A portion of the commitments is to extend credit at fixed rates. Fixed rate loan commitments at December 31, 2019 of $42.2 million had interest rates ranging predominantly from 3.75% to 5.50%, respectively, and terms predominantly three years or less. These credit commitments were based on prevailing rates, terms, and conditions applicable to other loans being made at December 31, 2019. Included in our commitments to extend credit are mortgage loans in the process of origination which are intended for sale to investors in the secondary market. These forward sale commitments are on an individual loan basis that CTBI originates as part of its mortgage banking activities. CTBI commits to sell the loans at specified prices in a future period, typically within 60 days. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale since CTBI is exposed to interest rate risk during the period between issuing a loan commitment and the sale of the loan into the secondary market. Total mortgage loans in the process of origination amounted to $3.8 million and $2.8 million at December 31, 2019 and 2018, respectively, and mortgage loans held for sale amounted to $1.2 million and $2.5 million for the years ended December 31, 2019 and 2018, respectively. |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Concentrations of Credit Risk [Abstract] | |
Concentrations of Credit Risk | 19. Concentrations of Credit Risk CTBI’s banking activities include granting commercial, residential, and consumer loans to customers primarily located in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. CTBI is continuing to manage all components of its portfolio mix in a manner to reduce risk from changes in economic conditions. Concentrations of credit, as defined for regulatory purposes, are reviewed quarterly by management to ensure that internally established limits based on Tier 1 Capital plus the allowance for loan and lease losses are not exceeded. At December 31, 2019 and 2018, our concentrations of hotel/motel industry credits were 43% and 41% of Tier 1 Capital plus the allowance for loan and lease losses, respectively. Lessors of non-residential buildings credits were 38% and 39%, respectively. Lessors of residential buildings and dwellings were 41% and 39%, respectively. These percentages are within our internally established limits regarding concentrations of credit. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | 20. Commitments and Contingencies CTBI and our subsidiaries, and from time to time, our officers, are named defendants in legal actions arising from ordinary business activities. Management, after consultation with legal counsel, believes any pending actions at December 31, 2019 are without merit or that the ultimate liability, if any, will not materially affect our consolidated financial position or results of operations. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | 21. Regulatory Matters CTBI’s principal source of funds is dividends received from our banking subsidiary, CTB. Regulations limit the amount of dividends that may be paid by CTB without prior approval. During 2020, approximately $68.8 million plus any 2020 net profits can be paid by CTB without prior regulatory approval. The Federal Reserve Bank adopted quantitative measures which assign risk weightings to assets and off-balance sheet items and also define and set minimum regulatory capital requirements (risk based capital ratios). Failure to meet certain capital requirements can initiate certain actions by regulators that, if undertaken, could have a direct material effect on our consolidated financial statements. On July 2, 2013, the Federal Reserve approved final rules that substantially amended the regulatory risk-based capital rules applicable to CTBI and CTB. The FDIC subsequently approved these rules. The final rules implemented the “Basel III” regulatory capital reforms and changes required by the Dodd-Frank Act. The rules included new risk-based capital and leverage ratios, which were phased in from 2015 to January 2019, and refined the definition of what constitutes “capital” for purposes of calculating those ratios. The minimum capital level requirements applicable to CTBI and CTB under the final rules are: (i) a common equity Tier 1 capital ratio of 4.5% of risk-weighted assets; (ii) a Tier 1 capital ratio of 6% of risk-weighted assets; (iii) a total capital ratio of 8% of risk-weighted assets; and (iv) a Tier 1 leverage ratio of 4% of adjusted quarterly average assets for all institutions. Tier 1 capital consists principally of shareholders’ equity including capital-qualifying subordinated debt but excluding unrealized gains and losses on securities available-for-sale, less goodwill and certain other intangibles. Total capital consists of Tier 1 capital plus certain debt instruments and the reserve for credit losses, subject to limitation. The final rules also established a “capital conservation buffer” above the new regulatory minimum capital requirements, which must consist entirely of common equity Tier 1 capital. The capital conservation buffer began to be phased in on January 1, 2016 at 0.625% of risk-weighted assets increased by 0.625% annually until fully implemented in January 2019. An institution is subject to limitations on certain activities including payment of dividends, share repurchases, and discretionary bonuses to executive officers if its capital level is below the total capital plus capital conservation buffer amount. The final rules also contain revisions to the prompt corrective action framework, which is designed to place restrictions on insured depository institutions, including CTB, if their capital levels begin to show signs of weakness. These revisions took effect January 1, 2015. Under the prompt corrective action requirements, which are designed to complement the capital conservation buffer, insured depository institutions are required to meet the following capital level requirements in order to qualify as “well capitalized:” (i) a common equity Tier 1 capital ratio of 6.5%; (ii) a Tier 1 capital ratio of 8%; (iii) a total capital ratio of 10%; and (iv) a Tier 1 leverage ratio of 5%. We had Tier 1 leverage, common equity Tier 1 capital, Tier 1, and total capital ratios above the well-capitalized levels and we exceeded the capital conservation standards at December 31, 2019 and 2018. Based on our current capital composition and levels, we anticipate that our capital ratios, on a Basel III basis, will continue to exceed the well-capitalized minimum capital requirements and capital conservation buffer standards. Under the current Federal Reserve Board’s regulatory framework, certain capital securities offered by wholly owned unconsolidated trust preferred entities of CTBI are included as Tier 1 regulatory capital. On March 1, 2005, the Federal Reserve Board adopted a final rule that allows the continued limited inclusion of trust preferred securities in the Tier 1 capital of bank holding companies (“BHCs”). Under the final rule, trust preferred securities and other restricted core capital elements are subject to stricter quantitative limits. The Board’s final rule limits restricted core capital elements to 25 percent of all core capital elements, net of goodwill less any associated deferred tax liability. Amounts of restricted core capital elements in excess of these limits generally may be included in Tier 2 capital. The final rule provided a five-year transition period, which ended March 31, 2009, for application of the quantitative limits. The requirement for trust preferred securities to include a call option has been eliminated, and standards for the junior subordinated debt underlying trust preferred securities eligible for Tier 1 capital treatment have been clarified. The final rule addressed supervisory concerns, competitive equity considerations, and the accounting for trust preferred securities. The final rule also strengthened the definition of regulatory capital by incorporating longstanding Board policies regarding the acceptable terms of capital instruments included in banking organizations’ Tier 1 or Tier 2 capital. Consolidated Capital Ratios Actual For Capital Adequacy Purposes (in thousands) Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 capital (to average assets) $ 601,142 14.01 % $ 171,632 4.00 % Common equity Tier 1 capital (to risk weighted assets) 545,142 17.18 142,790 4.50 Tier 1 capital (to risk weighted assets) 601,142 18.94 190,436 6.00 Total capital (to risk weighted assets) 636,512 20.05 253,970 8.00 As of December 31, 2018: Tier 1 capital (to average assets) $ 562,771 13.51 % $ 166,623 4.00 % Common equity Tier 1 capital (to risk weighted assets) 505,271 16.27 139,749 4.50 Tier 1 capital (to risk weighted assets) 562,771 18.12 186,348 6.00 Total capital (to risk weighted assets) 598,934 19.29 248,391 8.00 Community Trust Bank, Inc.’s Capital Ratios Actual For Capital Adequacy Purposes To Be Well-Capitalized Under Prompt Corrective Action Provision (in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 capital (to average assets) $ 570,256 13.34 % $ 170,991 4.00 % $ 213,739 5.00 % Common equity Tier 1 capital (to risk weighted assets) 570,256 18.01 142,485 4.50 205,811 6.50 Tier 1 capital (to risk weighted assets) 570,256 18.01 189,980 6.00 253,306 8.00 Total capital (to risk weighted assets) 605,625 19.12 253,400 8.00 316,749 10.00 As of December 31, 2018: Tier 1 capital (to average assets) $ 536,992 12.94 % $ 165,994 4.00 % $ 207,493 5.00 % Common equity Tier 1 capital (to risk weighted assets) 536,992 17.33 139,438 4.50 201,411 6.50 Tier 1 capital (to risk weighted assets) 536,992 17.33 185,918 6.00 247,890 8.00 Total capital (to risk weighted assets) 573,155 18.50 247,851 8.00 309,814 10.00 |
Parent Company Financial Statem
Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Financial Statements [Abstract] | |
Parent Company Financial Statements | 22. Parent Company Financial Statements Condensed Balance Sheets (in thousands) December 31 2019 2018 Assets: Cash on deposit $ 2,089 $ 1,939 Investment in and advances to subsidiaries 667,206 620,701 Goodwill 4,973 4,973 Premises and equipment, net 153 219 Deferred taxes 5,100 193 Other assets 44 45 Total assets $ 679,565 $ 628,070 Liabilities and shareholders’ equity: Long-term debt $ 61,341 $ 61,341 Other liabilities 3,338 2,579 Total liabilities 64,679 63,920 Shareholders’ equity 614,886 564,150 Total liabilities and shareholders’ equity $ 679,565 $ 628,070 Condensed Statements of Income and Comprehensive Income (in thousands) Year Ended December 31 2019 2018 2017 Income: Dividends from subsidiary banks $ 30,152 $ 26,750 $ 24,661 Other income 757 489 904 Total income 30,909 27,239 25,565 Expenses: Interest expense 2,520 2,318 1,723 Depreciation expense 144 135 116 Other expenses 3,273 3,156 2,858 Total expenses 5,937 5,609 4,697 Income before income taxes and equity in undistributed income of subsidiaries 24,972 21,630 20,868 Income tax benefit (4,947 ) (1,219 ) (1,445 ) Income before equity in undistributed income of subsidiaries 29,919 22,849 22,313 Equity in undistributed income of subsidiaries 34,621 36,379 29,180 Net income $ 64,540 $ 59,228 $ 51,493 Other comprehensive gain (loss) Unrealized holding gains (losses) on securities available-for-sale Unrealized holding gains (losses) arising during the period 14,270 (5,393 ) (820 ) Less: Reclassification adjustments for realized gains (losses) included in net income 3 (821 ) 73 Tax expense (benefit) 3,403 (960 ) (312 ) Other comprehensive gain (loss), net of tax 10,864 (3,612 ) (581 ) Comprehensive income $ 75,404 $ 55,616 $ 50,912 Condensed Statements of Cash Flows (in thousands) Year Ended December 31 2019 2018 2017 Cash flows from operating activities: Net income $ 64,540 $ 59,228 $ 51,493 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 144 135 116 Equity in undistributed earnings of subsidiaries (34,621 ) (36,379 ) (29,180 ) Deferred taxes (4,907 ) (12 ) 192 Stock-based compensation 859 710 636 Gain on debt repurchase (219 ) 0 (560 ) Changes in: Other assets 1 (50 ) (47 ) Other liabilities 683 53 412 Net cash provided by operating activities 26,480 23,685 23,062 Cash flows from investing activities: Payment for investment in subsidiary (1,281 ) 0 (1,440 ) Purchase of premises and equipment (78 ) (81 ) (179 ) Net cash used in investing activities (1,359 ) (81 ) (1,619 ) Cash flows from financing activities: Issuance of common stock 1,264 1,230 1,513 Dividends paid (26,235 ) (24,395 ) (22,981 ) Net cash used in financing activities (24,971 ) (23,165 ) (21,468 ) Net increase (decrease) in cash and cash equivalents 150 439 (25 ) Cash and cash equivalents at beginning of year 1,939 1,500 1,525 Cash and cash equivalents at end of year $ 2,089 $ 1,939 $ 1,500 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 23. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31 (in thousands except per share data) 2019 2018 2017 Numerator: Net income $ 64,540 $ 59,228 $ 51,493 Denominator: Basic earnings per share: Weighted average shares 17,724 17,687 17,631 Diluted earnings per share: Dilutive effect of equity grants 16 16 22 Adjusted weighted average shares 17,740 17,703 17,653 Earnings per share: Basic earnings per share $ 3.64 $ 3.35 $ 2.92 Diluted earnings per share 3.64 3.35 2.92 There were no options to purchase common shares that were excluded from the diluted calculations above for the years ended December 31, 2019, 2018, and 2017. In addition to in-the-money stock options, unvested restricted stock grants were also used in the calculation of diluted earnings per share based on the treasury method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 24. Accumulated Other Comprehensive Income Unrealized gains (losses) on AFS securities Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the years ended December 31, 2019 , 2018 , and 2017 were: Amounts Reclassified from AOCI Year Ended December 31 (in thousands) 2019 2018 2017 Affected line item in the statements of income Securities gains (losses) $ 3 $ (821 ) $ 73 Tax expense (benefit) 1 (172 ) 26 Total reclassifications out of AOCI $ 2 $ (649 ) $ 47 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Nature of Operations | Nature of Operations |
Use of Estimates | Use of Estimates The accompanying financial statements have been prepared using values and information currently available to CTBI. Given the volatility of current economic conditions, the values of assets and liabilities recorded in the financial statements could change rapidly, resulting in material future adjustments in asset values, the allowance for loan and lease losses, and capital. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Certificates of Deposit in Other Banks | Certificates of Deposit in Other Banks |
Investments | Investments Investments – Debt Securities a. Trading securities . . b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities. We do not have any securities that are classified as trading securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders’ equity, net of tax. If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. Gains or losses on disposition of debt securities are computed by specific identification for those securities. Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings. When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on CTBI’s results of operations and financial condition. Subsequent to the January 1, 2018 effective date of ASU 2016-01, ASC 320 applies only to debt securities and ASC 321, Investments – Equity Securities Equity securities with a readily determinable fair value are required to be measured at fair value, with changes in fair value recognized through net income. Equity securities without a readily determinable fair value are carried at cost, less any impairment, if any, plus or minus changes resulting from observable price changes for identical or similar investments. An election can be made, as permitted by ASC 321-10-35-2, to subsequently measure an equity security without a readily determinable fair value, at fair value. Equity securities held by CTBI include securities without readily determinable fair values. CTBI has elected to account for these securities at fair value. The fair value of these securities was determined by a third party service provider using Level 3 inputs as defined in ASC 820, Fair Value Measurement |
Loans | Loans Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment. |
Lease | Leases – ASU - established a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability for all leases with terms longer than months. 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. ASU - provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU - provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current generally accepted accounting principles (“GAAP”) in Topic Leases . An entity that elects this additional (and optional) transition method must provide the required Topic disclosures for all periods that continue to be in accordance with Topic The amendments do not change the existing disclosure requirements in Topic (for example, they do not create interim disclosure requirements that entities previously were not required to provide). Separating Components of a Contract The amendments in ASU - provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic and both of the following are met: ● The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. ● The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the optional transition method of the modified retrospective approach provided in ASU - which was applied on January CTBI also elected certain relief options offered in ASU - including the package of practical expedients, the option not to separate lease and non-lease components, and instead to account for them as a single lease component for all classes of assets, the hindsight practical expedient to allow entities to use hindsight when determining lease term and impairment of right-of-use assets, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of months or less). |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses We utilize an internal risk grading system for commercial credits. Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated. The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ALLL for these loans is measured under ASC 450, Contingencies When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to CTBI, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent. If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent. For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made. If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual. Foreclosure proceedings are normally initiated after 120 days. When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off. Historical loss rates for loans are adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. We use twelve rolling quarters for our historical loss rate analysis. Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year’s charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions. Management continually reevaluates the other subjective factors included in its ALLL analysis. |
Loans Held for Sale | Loans Held for Sale |
Premises and Equipment | Premises and Equipment Depreciation and amortization are computed primarily using the straight-line method. Estimated useful lives range up to 40 years for buildings, 2 to 10 years for furniture, fixtures, and equipment, and up to the lease term for leasehold improvements. Capitalized leased assets are amortized on a straight-line basis over the lives of the respective leases. |
Federal Home Loan Bank and Federal Reserve Stock | Federal Home Loan Bank and Federal Reserve Stock CTB is also a member of its regional Federal Reserve Bank. Federal Reserve Bank stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on the ultimate recovery par value. Both cash and stock dividends are reported as income. |
Other Real Estate Owned | Other Real Estate Owned |
Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible Intangibles-Goodwill and Other 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 |
Revenue Recognition | Revenue Recognition – The majority of our revenue-generating transactions are not subject to ASC including revenue generated from financial instruments, such as our loans, letters of credit, and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC which are presented in our income statements as components of noninterest income are as follows: ● Service charges on deposit accounts represents general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. ● Trust and wealth management income represents monthly or quarterly fees due from wealth management customers as consideration for managing the customers’ assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services, and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month or quarter, which is generally the time that payment is received. ● Brokerage revenue is transaction based and collected upon the settlement of the transaction. Other sales, such as life insurance, generate commissions from other third parties. These fees are generally collected monthly. ● Other noninterest income primarily includes items such as letter of credit fees, gains on sale of loans held for sale and servicing fees related to mortgage and commercial loans, none of which are subject to the requirements of ASC 606. |
Income Taxes | Income Taxes As a bank and trust company doing business in Kentucky, CTB and CTIC are subject to a capital-based Kentucky franchise tax and exempt from Kentucky corporate income tax. However, in March Kentucky enacted HB which will transition CTB and CTIC from the franchise tax to a corporate income tax beginning January The current Kentucky corporate income tax rate is . As of March CTBI recorded a deferred tax liability, net of the federal benefit, of due to the enactment of HB While this deferred tax liability may be adjusted in we do not anticipate any further adjustments to have a significant impact to income. In April Kentucky enacted HB HB allows for combined state income tax filing with CTBI, CTB, and CTIC. CTBI had previously filed a separate company return and generated net operating losses, in which it had maintained a valuation allowance against the related deferred tax asset. HB also allows for certain net operating losses to be utilized on a combined return. CTBI expects to file a combined return, beginning in and to utilize these previously generated losses. The tax benefit recorded in to reverse the valuation allowance on the deferred tax asset for these losses was . As a result of these Kentucky tax law changes, in we recognized a state income tax benefit of , or per basic share, net of federal income tax. |
Earnings Per Share ("EPS") | Earnings Per Share (“EPS”) 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 | Segments |
Bank Owned Life Insurance | Bank Owned Life Insurance |
Mortgage Servicing Rights | Mortgage Servicing Rights Servicing Assets and Liabilities Fair Value Measurements |
Share-Based Compensation | Share-Based Compensation Share-Based Payment |
Comprehensive Income | Comprehensive Income |
Transfers between Fair Value Hierarchy Levels | Transfers between Fair Value Hierarchy Levels – |
Reclassifications | Reclassifications – |
Revisions | Revisions – Certain immaterial revisions have been made to the consolidated financial statements for amounts reported in the deferred tax footnote which are further described in note These revisions did not have a significant impact on the financial statement line items impacted. |
New Accounting Standards | New Accounting Standards ➢ Leases Leases (Topic 842) In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate non-lease components from the associated lease component and, instead, to account for those components as a single component if the non-lease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: ● The timing and pattern of transfer of the non-lease component(s) and associated lease component are the same. ● The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We elected the optional transition method of the modified retrospective approach provided in ASU - which was applied on January CTBI also elected certain relief options offered in ASU - including the package of practical expedients, the option not to separate lease and non-lease components, and instead to account for them as a single lease component for all classes of assets, the hindsight practical expedient to allow entities to use hindsight when determining lease term and impairment of right-of-use assets, and the option not to recognize right-of-use assets and lease liabilities that arise from short-term leases (i.e., leases with terms of months or less). Refer to note below for further information regarding the impact of adoption. ➢ Accounting for Credit Losses – In June the FASB issued ASU No. - Financial Instruments—Credit Losses (Topic 326) : Measurement of Credit Losses on Financial Instruments. This ASU is commonly referred to as CECL (Current Expected Credit Loss). The provisions of ASU - were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. This ASU requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU - eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU - is effective for fiscal years, and interim periods within those fiscal years, beginning after December As previously disclosed, CTBI formed an implementation team to oversee the adoption of the ASU including assessing the impact on its accounting and disclosures. The implementation team was a cross-functional working group comprised of individuals from areas including credit, finance, and operations. The team has established the historical data available and has identified the loan segments to be analyzed. Credit losses for loans that no longer share similar risk characteristics are estimated on an individual basis. The team has determined the portfolio methodologies and relevant economic factors to be utilized and began running parallel with its current model as part of the monthly quarter loan portfolio analysis. The team has developed a CECL allowance model which calculates reserves over the life of the loan and is largely driven by historical losses, portfolio characteristics, risk-grading, economic outlook, and other qualitative factors. The methodologies will utilize a single economic forecast over a reasonable and supportable forecast period with immediate reversion to historical losses. While the models are operationally complete as of January other required processes are being finalized. It is estimated that the allowance for credit losses at the time of adoption will increase by approximately to , or to , with the increase in the allowance being offset by a charge to retained earnings, net of deferred taxes. Adoption of the standard is not expected to have a material impact on our AFS or HTM investment portfolio’s or our off-balance sheet reserve. The ultimate impact of adopting the ASU, and at each subsequent reporting period, is highly dependent on credit quality, economic forecasts and conditions and composition of our loans, along with other management judgements. The transition adjustment to record the allowance for credit losses may fall outside of management’s estimated increase based on material changes in these items, specifically the economic forecast and conditions and loan composition, used in calculating the allowance for credit losses upon the adoption of CECL. In December the Office of the Comptroller of the Currency , the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day- adverse effects on regulatory capital that may result from the adoption of the new accounting standard. CTBI is planning on adopting the capital transition relief over the permissible three-year period. ➢ Simplifying the Test for Goodwill Impairment – In January the FASB issued ASU No. - Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment . These amendments eliminate Step from the goodwill impairment test. The amendments also eliminate the requirements from any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The guidance is effective for fiscal years beginning after December and interim periods with those fiscal years. ASU - should be implemented on a prospective basis. Management does not expect ASU - to have an impact on CTBI’s consolidated financial statements. ➢ Changes to the Disclosure Requirements for Fair Value Measurement – In August the FASB issued ASU - Fair Value Measurement (Topic 820) —Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . ASU No. - modifies the disclosure requirements on fair value measurements in Topic as follows: Removals The following disclosure requirements were removed from Topic : ● The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy ● The policy for timing of transfers between levels ● The valuation processes for Level 3 fair value measurements Modifications The following disclosure requirements were modified in Topic 820: ● For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and ● The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions The following disclosure requirements were added to Topic 820: ● The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and ● The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” CTBI adopted ASU 2018-13 effective January 1, 2020 with minimal changes expected to our current reporting. ➢ Accounting for Costs of Implementing a Cloud Computing Service Agreement Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The ASU aligns the following requirements for capitalizing implementation costs: ● Those incurred in a hosting arrangement that is a service contract, and ● Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license. This ASU was effective beginning January 1, 2020. We do not anticipate a significant impact to our consolidated financial statements. ➢ Simplifying the Accounting for Income Taxes – In December the FASB issued ASU - Income Taxes (Topic 740) , Simplifying the Accounting for Income Taxes . The amendments in this ASU simplify the accounting for income taxes by removing the following exceptions: 1. Exception to the incremental approach for intra period tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income); 2. Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; 3. Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and 4. Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this ASU also simplify the accounting for income taxes by doing the following: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; 2. Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; 3. Specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority; 4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date; and 5. Making minor codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. For public business entities, the amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December Early adoption is permitted. We do not anticipate a significant impact to our consolidated financial statements. ➢ Clarifying the Interactions between Topic 321, Topic 323, and Topic 815, a consensus of the FASB Emerging Task Force – In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) . The amendments in this ASU clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815, which could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments . These amendments improve current GAAP by reducing diversity in practice and increasing comparability of the accounting for these interactions. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted for public business entities for periods for which financial statements have not yet been issued. The amendments in this ASU should be applied prospectively. Under a prospective transition, an entity should apply the amendments at the beginning of the interim period that includes the adoption date. We do not anticipate a significant impact to our consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-sale Securities | The amortized cost and fair value of debt securities at December 31, 2019 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 171,250 $ 476 $ (576 ) $ 171,150 State and political subdivisions 99,403 2,941 (37 ) 102,307 U.S. government sponsored agency mortgage-backed securities 291,874 4,443 (1,072 ) 295,245 Other debt securities 31,418 0 (276 ) 31,142 Total available-for-sale securities $ 593,945 $ 7,860 $ (1,961 ) $ 599,844 The amortized cost and fair value of debt securities at December 31, 2018 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 219,358 $ 48 $ (1,468 ) $ 217,938 State and political subdivisions 126,280 633 (2,425 ) 124,488 U.S. government sponsored agency mortgage-backed securities 255,969 397 (5,547 ) 250,819 Other debt securities 507 0 (6 ) 501 Total available-for-sale securities $ 602,114 $ 1,078 $ (9,446 ) $ 593,746 |
Amortized Cost and Fair Value of Held-to-maturity Securities | Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 517 $ 0 $ 0 $ 517 Total held-to-maturity securities $ 517 $ 0 $ 0 $ 517 Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 649 $ 0 $ 0 $ 649 Total held-to-maturity securities $ 649 $ 0 $ 0 $ 649 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities at December 31, 2019 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. Available-for-Sale Held-to-Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 84,795 $ 85,107 $ 517 $ 517 Due after one through five years 23,605 23,963 0 0 Due after five through ten years 91,043 91,175 0 0 Due after ten years 71,210 73,212 0 0 U.S. government sponsored agency mortgage-backed securities 291,874 295,245 0 0 Other debt securities 31,418 31,142 0 0 Total debt securities $ 593,945 $ 599,844 $ 517 $ 517 |
Available for Sale Securities and Held-to-Maturity Securities, Continuous Unrealized Loss Position | The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2019 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2019 . Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 25,955 $ (148 ) $ 25,807 State and political subdivisions 8,356 (37 ) 8,319 U.S. government sponsored agency mortgage-backed securities 19,317 (100 ) 19,217 Other debt securities 31,418 (276 ) 31,142 Total <12 months temporarily impaired AFS securities 85,046 (561 ) 84,485 12 Months or More U.S. Treasury and government agencies 82,339 (428 ) 81,911 State and political subdivisions 0 0 0 U.S. government sponsored agency mortgage-backed securities 91,609 (972 ) 90,637 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 173,948 (1,400 ) 172,548 Total U.S. Treasury and government agencies 108,294 (576 ) 107,718 State and political subdivisions 8,356 (37 ) 8,319 U.S. government sponsored agency mortgage-backed securities 110,926 (1,072 ) 109,854 Other debt securities 31,418 (276 ) 31,142 Total temporarily impaired AFS securities $ 258,994 $ (1,961 ) $ 257,033 The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2018 . Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 78,905 $ (271 ) $ 78,634 State and political subdivisions 21,707 (194 ) 21,513 U.S. government sponsored agency mortgage-backed securities 61,940 (377 ) 61,563 Other debt securities 507 (6 ) 501 Total <12 months temporarily impaired AFS securities 163,059 (848 ) 162,211 12 Months or More U.S. Treasury and government agencies 97,955 (1,197 ) 96,758 State and political subdivisions 51,911 (2,231 ) 49,680 U.S. government sponsored agency mortgage-backed securities 147,658 (5,170 ) 142,488 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 297,524 (8,598 ) 288,926 Total U.S. Treasury and government agencies 176,860 (1,468 ) 175,392 State and political subdivisions 73,618 (2,425 ) 71,193 U.S. government sponsored agency mortgage-backed securities 209,598 (5,547 ) 204,051 Other debt securities 507 (6 ) 501 Total temporarily impaired AFS securities $ 460,583 $ (9,446 ) $ 451,137 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans [Abstract] | |
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans | Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows: (in thousands) December 31 2019 December 31 2018 Commercial construction $ 104,809 $ 82,715 Commercial secured by real estate 1,169,975 1,183,093 Equipment lease financing 481 1,740 Commercial other 389,683 377,198 Real estate construction 63,350 57,160 Real estate mortgage 733,003 722,417 Home equity 111,894 106,299 Consumer direct 148,051 144,289 Consumer indirect 527,418 533,727 Total loans $ 3,248,664 $ 3,208,638 |
Nonaccrual Loans Segregated by Class of Loans | Nonaccrual loans segregated by class of loans were as follows: (in thousands) December 31 2019 December 31 2018 Commercial: Commercial construction $ 230 $ 639 Commercial secured by real estate 3,759 4,537 Commercial other 3,839 797 Residential: Real estate construction 634 22 Real estate mortgage 4,821 5,395 Home equity 716 477 Total nonaccrual loans $ 13,999 $ 11,867 |
Bank's Loan Portfolio Aging Analysis, Segregated by Class | The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of December 31, 2019 and 2018 : December 31, 2019 (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ and Accruing* Commercial: Commercial construction $ 118 $ 0 $ 467 $ 585 $ 104,224 $ 104,809 $ 237 Commercial secured by real estate 2,734 5,969 12,366 21,069 1,148,906 1,169,975 8,820 Equipment lease financing 0 0 0 0 481 481 0 Commercial other 880 284 6,267 7,431 382,252 389,683 2,586 Residential: Real estate construction 117 52 634 803 62,547 63,350 0 Real estate mortgage 774 5,376 10,320 16,470 716,533 733,003 7,088 Home equity 1,084 412 736 2,232 109,662 111,894 344 Consumer: Consumer direct 945 230 97 1,272 146,779 148,051 97 Consumer indirect 4,037 909 447 5,393 522,025 527,418 448 Total $ 10,689 $ 13,232 $ 31,334 $ 55,255 $ 3,193,409 $ 3,248,664 $ 19,620 December 31, 2018 (in thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ and Accruing* Commercial: Commercial construction $ 87 $ 58 $ 698 $ 843 $ 81,872 $ 82,715 $ 58 Commercial secured by real estate 6,287 1,204 8,776 16,267 1,166,826 1,183,093 4,632 Equipment lease financing 0 0 0 0 1,740 1,740 0 Commercial other 1,057 94 1,067 2,218 374,980 377,198 581 Residential: Real estate construction 144 438 28 610 56,550 57,160 6 Real estate mortgage 1,272 5,645 7,607 14,524 707,893 722,417 4,095 Home equity 898 365 441 1,704 104,595 106,299 246 Consumer: Consumer direct 918 191 74 1,183 143,106 144,289 74 Consumer indirect 4,715 975 507 6,197 527,530 533,727 506 Total $ 15,378 $ 8,970 $ 19,198 $ 43,546 $ 3,165,092 $ 3,208,638 $ 10,198 * 90+ and Accruing are also included in 90+ Days Past Due column. |
Credit Risk Profile of the Bank's Commercial Loan Portfolio Based on Rating Category and Payment Activity, Segregated by Class of Loans | The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of December 31, 2019 and 2018 : (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Leases Commercial Other Total December 31, 2019 Pass $ 98,102 $ 1,036,573 $ 481 $ 358,203 $ 1,493,359 Watch 3,595 54,338 0 13,618 71,551 OAEM 254 27,964 0 6,065 34,283 Substandard 2,858 51,068 0 11,737 65,663 Doubtful 0 32 0 60 92 Total $ 104,809 $ 1,169,975 $ 481 $ 389,683 $ 1,664,948 December 31, 2018 Pass $ 74,222 $ 1,038,309 $ 1,740 $ 327,431 $ 1,441,702 Watch 3,070 71,834 0 28,986 103,890 OAEM 1,594 19,734 0 5,735 27,063 Substandard 3,829 53,125 0 14,970 71,924 Doubtful 0 91 0 76 167 Total $ 82,715 $ 1,183,093 $ 1,740 $ 377,198 $ 1,644,746 |
Credit Risk Profile of Residential Real Estate and Consumer Loan Portfolio Based on Performing and Nonperforming Status Segregated by Class | The following tables present the credit risk profile of CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of December 31, 2019 and 2018 : (in thousands) Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total December 31, 2019 Performing $ 62,716 $ 721,094 $ 110,834 $ 147,954 $ 526,970 $ 1,569,568 Nonperforming (1) 634 11,909 1,060 97 448 14,148 Total $ 63,350 $ 733,003 $ 111,894 $ 148,051 $ 527,418 $ 1,583,716 December 31, 2018 Performing $ 57,132 $ 712,927 $ 105,576 $ 144,215 $ 533,221 $ 1,553,071 Nonperforming (1) 28 9,490 723 74 506 10,821 Total $ 57,160 $ 722,417 $ 106,299 $ 144,289 $ 533,727 $ 1,563,892 (1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans | The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2019 , 2018 , and 2017 : December 31, 2019 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 2,836 $ 2,837 $ 0 $ 3,234 $ 170 Commercial secured by real estate 40,346 41,557 0 36,976 1,601 Commercial other 7,829 9,489 0 9,889 460 Real estate mortgage 2,309 2,309 0 2,385 85 Loans with a specific valuation allowance: Commercial construction 174 174 99 215 11 Commercial secured by real estate 1,033 2,176 227 1,678 15 Commercial other 3,244 3,244 886 1,323 29 Totals: Commercial construction 3,010 3,011 99 3,449 181 Commercial secured by real estate 41,379 43,733 227 38,654 1,616 Commercial other 11,073 12,733 886 11,212 489 Real estate mortgage 2,309 2,309 0 2,385 85 Total $ 57,771 $ 61,786 $ 1,212 $ 55,700 $ 2,371 December 31, 2018 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 4,100 $ 4,100 $ 0 $ 3,923 $ 171 Commercial secured by real estate 29,645 31,409 0 30,250 1,412 Commercial other 8,285 9,982 0 8,774 530 Real estate construction 0 0 0 106 0 Real estate mortgage 1,882 1,882 0 1,666 41 Loans with a specific valuation allowance: Commercial construction 127 127 50 42 0 Commercial secured by real estate 1,854 2,983 605 2,051 1 Commercial other 473 473 146 285 16 Totals: Commercial construction 4,227 4,227 50 3,965 171 Commercial secured by real estate 31,499 34,392 605 32,301 1,413 Commercial other 8,758 10,455 146 9,059 546 Real estate construction 0 0 0 106 0 Real estate mortgage 1,882 1,882 0 1,666 41 Total $ 46,366 $ 50,956 $ 801 $ 47,097 $ 2,171 December 31, 2017 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Average Investment in Impaired Loans *Interest Income Recognized Loans without a specific valuation allowance: Commercial construction $ 4,431 $ 4,439 $ 0 $ 4,835 $ 200 Commercial secured by real estate 28,480 30,365 0 27,753 1,344 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,444 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Loans with a specific valuation allowance: Commercial construction 153 173 25 155 0 Commercial secured by real estate 2,985 4,095 966 3,932 8 Commercial other 0 0 0 65 0 Totals: Commercial construction 4,584 4,612 25 4,990 200 Commercial secured by real estate 31,465 34,460 966 31,685 1,352 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,509 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Total $ 47,412 $ 52,212 $ 991 $ 49,343 $ 2,127 *Cash basis interest is substantially the same as interest income recognized. |
Troubled Debt Restructurings | Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 (in thousands) Number of Loans Term Modification Rate Modification Combination Post- Modification Outstanding Balance Commercial: Commercial construction 0 $ 0 $ 0 $ 0 $ 0 Commercial secured by real estate 17 6,105 0 679 6,784 Commercial other 17 1,565 0 264 1,829 Residential: Real estate mortgage 1 463 0 0 463 Total troubled debt restructurings 35 $ 8,133 $ 0 $ 943 $ 9,076 Year Ended December 31, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post- Modification Outstanding Balance Commercial: Commercial construction 5 $ 2,182 $ 0 $ 15 $ 2,197 Commercial secured by real estate 24 4,004 0 1,383 5,387 Commercial other 8 465 0 0 465 Residential: Real estate mortgage 3 264 0 704 968 Total troubled debt restructurings 40 $ 6,915 $ 0 $ 2,102 $ 9,017 |
Defaulted Restructured Loans | Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual. Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment. The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan. Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual. (in thousands) Year Ended December 31, 2019 Number of Loans Recorded Balance Commercial: Commercial construction 0 $ 0 Commercial secured by real estate 1 30 Commercial other 1 34 Residential: Real estate mortgage 1 463 Total defaulted restructured loans 3 $ 527 (in thousands) Year Ended December 31, 2018 Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 148 Commercial secured by real estate 1 17 Commercial other 1 84 Total defaulted restructured loans 4 $ 249 |
Mortgage Banking and Servicin_2
Mortgage Banking and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking and Servicing Rights [Abstract] | |
Components of Mortgage Banking Income | The following table presents the components of mortgage banking income: (in thousands) Year Ended December 31 2019 2018 2017 Net gain on sale of mortgage loans held for sale $ 1,746 $ 1,288 $ 1,232 Net loan servicing income (expense) Servicing fees 1,297 1,275 1,255 Late fees 72 73 84 Ancillary fees 190 282 239 Fair value adjustments (975 ) (343 ) (361 ) Net loan servicing income 584 1,287 1,217 Mortgage banking income $ 2,330 $ 2,575 $ 2,449 |
Activity for Capitalized Mortgage Servicing Rights Using Fair Value Method | Activity for capitalized mortgage servicing rights using the fair value method is as follows: (in thousands) 2019 2018 2017 Fair value of MSRs, beginning of period $ 3,607 $ 3,484 $ 3,433 New servicing assets created 631 466 412 Change in fair value during the period due to: Time decay (1) (167 ) (189 ) (184 ) Payoffs (2) (293 ) (227 ) (268 ) Changes in valuation inputs or assumptions (3) (515 ) 73 91 Fair value of MSRs, end of period $ 3,263 $ 3,607 $ 3,484 (1) Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns. (2) Represents decrease in value due to loans that paid off during the period. (3) Represents change in value resulting from market-driven changes in interest rates. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Activity for Related Party Transactions | Activity for related party extensions of credit during 2019 and 2018 is as follows: (in thousands) 2019 2018 Related party extensions of credit, beginning of period $ 19,463 $ 16,832 New loans and advances on lines of credit 1 6,425 Repayments (1,686 ) (3,794 ) Increase (decrease) due to changes in related parties 20,038 0 Related party extensions of credit, end of period $ 37,816 $ 19,463 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance for Loan and Lease Losses [Abstract] | |
Activity in Allowance for Loan and Lease Losses | The following tables present the balance in the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 , 2018 , and 2017 : 2019 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 862 $ 14,531 $ 12 $ 4,993 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,908 Provision charged to expense 497 (137 ) (8 ) 3,032 (40 ) 414 172 528 361 4,819 Losses charged off (72 ) (727 ) 0 (2,179 ) (100 ) (767 ) (139 ) (1,100 ) (4,652 ) (9,736 ) Recoveries 12 358 0 509 0 152 23 400 2,651 4,105 Balance, end of year $ 1,299 $ 14,025 $ 4 $ 6,355 $ 372 $ 4,232 $ 897 $ 1,711 $ 6,201 $ 35,096 Ending balance: Individually evaluated for impairment $ 99 $ 227 $ 0 $ 886 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,212 Collectively evaluated for impairment $ 1,200 $ 13,798 $ 4 $ 5,469 $ 372 $ 4,232 $ 897 $ 1,711 $ 6,201 $ 33,884 Loans Ending balance: Individually evaluated for impairment $ 3,010 $ 41,379 $ 0 $ 11,073 $ 0 $ 2,309 $ 0 $ 0 $ 0 $ 57,771 Collectively evaluated for impairment $ 101,799 $ 1,128,596 $ 481 $ 378,610 $ 63,350 $ 730,694 $ 111,894 $ 148,051 $ 527,418 $ 3,190,893 2018 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Provision charged to expense 115 786 (6 ) 824 (115 ) (336 ) 39 572 4,288 6,167 Losses charged off 0 (988 ) 0 (1,513 ) (33 ) (1,004 ) (69 ) (997 ) (6,394 ) (10,998 ) Recoveries 61 224 0 643 0 85 14 445 3,116 4,588 Balance, end of year $ 862 $ 14,531 $ 12 $ 4,993 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,908 Ending balance: Individually evaluated for impairment $ 50 $ 605 $ 0 $ 146 $ 0 $ 0 $ 0 $ 0 $ 0 $ 801 Collectively evaluated for impairment $ 812 $ 13,926 $ 12 $ 4,847 $ 512 $ 4,433 $ 841 $ 1,883 $ 7,841 $ 35,107 Loans Ending balance: Individually evaluated for impairment $ 4,227 $ 31,499 $ 0 $ 8,758 $ 0 $ 1,882 $ 0 $ 0 $ 0 $ 46,366 Collectively evaluated for impairment $ 78,488 $ 1,151,594 $ 1,740 $ 368,440 $ 57,160 $ 720,535 $ 106,299 $ 144,289 $ 533,727 $ 3,162,272 2017 (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Lease Financing Commercial Other Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total ALLL Balance, beginning of year $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (237 ) 2,281 (24 ) 1,744 31 189 257 418 2,862 7,521 Losses charged off (10 ) (2,038 ) 0 (1,893 ) 0 (615 ) (178 ) (965 ) (5,386 ) (11,085 ) Recoveries 49 75 0 532 0 87 4 525 2,510 3,782 Balance, end of year $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Ending balance: Individually evaluated for impairment $ 25 $ 966 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 991 Collectively evaluated for impairment $ 661 $ 13,543 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 35,160 Loans Ending balance: Individually evaluated for impairment $ 4,584 $ 31,465 $ 0 $ 9,481 $ 318 $ 1,564 $ 0 $ 0 $ 0 $ 47,412 Collectively evaluated for impairment $ 71,895 $ 1,157,215 $ 3,042 $ 341,553 $ 67,040 $ 708,006 $ 99,356 $ 137,754 $ 489,667 $ 3,075,528 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment are summarized as follows: (in thousands) December 31 2019 2018 Land and buildings $ 80,552 $ 79,815 Leasehold improvements 4,805 4,805 Furniture, fixtures, and equipment 39,964 38,576 Construction in progress 75 1,396 Total premises and equipment 125,396 124,592 Less accumulated depreciation and amortization (81,350 ) (79,301 ) Premises and equipment, net $ 44,046 $ 45,291 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Real Estate Owned [Abstract] | |
Activity for Other Real Estate Owned | Activity for other real estate owned was as follows: (in thousands) 2019 2018 Beginning balance of other real estate owned $ 27,273 $ 31,996 New assets acquired 3,384 5,459 Fair value adjustments (4,253 ) (2,530 ) Sale of assets (6,924 ) (7,652 ) Ending balance of other real estate owned $ 19,480 $ 27,273 |
Major Classifications of Foreclosed Properties | The major classifications of foreclosed properties are shown in the following table: (in thousands) December 31 2019 2018 1-4 family $ 3,630 $ 5,253 Construction/land development/other 10,211 15,017 Multifamily 88 88 Non-farm/non-residential 5,551 6,915 Total foreclosed properties $ 19,480 $ 27,273 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Major Classifications of Deposits | Major classifications of deposits are categorized as follows: (in thousands) December 31 2019 2018 Noninterest bearing deposits $ 865,760 $ 803,316 NOW accounts 51,179 56,964 Money market deposits 985,322 887,288 Savings 404,151 406,749 Certificates of deposit and other time deposits of $100,000 or more 597,628 651,967 Certificates of deposit and other time deposits less than $100,000 501,532 499,666 Total deposits $ 3,405,572 $ 3,305,950 |
Maturities of Certificates of Deposits and Other Time Deposits | Maturities of certificates of deposits and other time deposits are presented below: Maturities by Period at December 31, 2019 (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 $ 597,628 $ 448,071 $ 69,580 $ 32,525 $ 20,513 $ 26,738 $ 201 Certificates of deposit and other time deposits less than $100,000 501,532 408,359 42,944 18,423 16,316 15,086 404 Total maturities $ 1,099,160 $ 856,430 $ 112,524 $ 50,948 $ 36,829 $ 41,824 $ 605 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Borrowings [Abstract] | |
Short-term Debt | Short-term debt is categorized as follows: (in thousands) December 31 2019 2018 Repurchase agreements $ 226,917 $ 232,712 Federal funds purchased 7,906 1,180 Total short-term debt $ 234,823 $ 233,892 |
Long-term Debt | Long-term debt is categorized as follows: (in thousands) December 31 2019 2018 Junior subordinated debentures, 3.50%, due 6/1/37 $ 57,841 $ 59,341 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and December 31, 2018 is presented in the following tables: December 31, 2019 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and government agencies $ 15,001 $ 0 $ 3,479 $ 58,953 $ 77,433 State and political subdivisions 51,193 0 1,768 11,165 64,126 U.S. government sponsored agency mortgage-backed securities 35,480 0 1,996 47,882 85,358 Total $ 101,674 $ 0 $ 7,243 $ 118,000 $ 226,917 December 31, 2018 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and repurchase-to-maturity transactions: U.S. Treasury and government agencies $ 25,346 $ 0 $ 2,548 $ 60,699 $ 88,593 State and political subdivisions 58,864 0 2,995 10,384 72,243 U.S. government sponsored agency mortgage-backed securities 22,076 0 1,877 47,923 71,876 Total $ 106,286 $ 0 $ 7,420 $ 119,006 $ 232,712 |
Advances from Federal Home Lo_2
Advances from Federal Home Loan Bank (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Advances from Federal Home Loan Bank [Abstract] | |
Federal Home Loan Bank Advances | Federal Home Loan Bank advances consisted of the following monthly amortizing borrowings at December 31: (in thousands) 2019 2018 Monthly amortizing $ 415 $ 436 Total FHLB advances $ 415 $ 436 |
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: Principal Payments Due by Period at December 31, 2019 (in thousands) Total Within 1 Year 2 Years 3 Years 4 Years 5 Years After 5 Years Outstanding advances, weighted average interest rate – 0.06% $ 415 $ 22 $ 20 $ 21 $ 20 $ 21 $ 311 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: (in thousands) 2019 2018 2017 Current income tax expense $ 8,864 $ 11,560 $ 20,108 Deferred income tax expense (benefit) 2,030 (246 ) (259 ) Effect of Tax Cuts & Jobs Act benefit 0 0 (2,831 ) Effect of Kentucky tax legislation benefit (3,442 ) 0 0 Total income tax expense $ 7,452 $ 11,314 $ 17,018 |
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: (in thousands) 2019 2018 2017 Computed at the statutory rate $ 15,118 21.00 % $ 14,814 21.00 % $ 23,979 35.00 % Adjustments resulting from: Tax-exempt interest (563 ) (0.78 ) (673 ) (0.95 ) (1,259 ) (1.84 ) Housing and new markets credits (4,471 ) (6.21 ) (2,635 ) (3.73 ) (2,579 ) (3.76 ) Dividends received deduction 0 - (9 ) (0.01 ) (129 ) (0.19 ) Bank owned life insurance (284 ) (0.39 ) (599 ) (0.85 ) (492 ) (0.72 ) ESOP dividend deduction (203 ) (0.28 ) (188 ) (0.27 ) (319 ) (0.47 ) Stock option exercises and restricted stock vesting (10 ) (0.01 ) (39 ) (0.06 ) (170 ) (0.25 ) Effect of Tax Cuts & Jobs Act 0 - 0 - (2,831 ) (4.13 ) Effect of KY tax legislation (2,719 ) (3.78 ) 0 - 0 - State income taxes 405 0.56 409 0.58 429 0.63 Other 179 0.24 234 0.33 389 0.57 Total $ 7,452 10.35 % $ 11,314 16.04 % $ 17,018 24.84 % |
Components of Net Deferred Tax Liability | The components of the net deferred tax liability as of December 31 are as follows: (in thousands) 2019 2018 Deferred tax assets: Allowance for loan and lease losses $ 8,757 $ 7,541 Interest on nonperforming loans 485 531 Accrued expenses 1,100 1,093 Allowance for other real estate owned 1,437 1,435 Unrealized losses on AFS securities 0 1,757 State net operating loss carryforward 3,786 3,957 Lease liabilities 3,859 0 Other 294 164 Total deferred tax assets 19,718 16,478 Deferred tax liabilities: Depreciation and amortization (15,048 ) (12,210 ) FHLB stock dividends (1,441 ) (1,704 ) Loan fee income (656 ) (419 ) Mortgage servicing rights (814 ) (757 ) Right of use assets (3,698 ) 0 Unrealized gains on AFS securities (1,534 ) 0 Limited partnership investments (326 ) (257 ) Other (1,101 ) (537 ) Total deferred tax liabilities (24,618 ) (15,884 ) Beginning balance for valuation allowance for deferred tax asset 3,957 3,930 Change in valuation allowance (3,747 ) 27 Ending balance for valuation allowance for deferred tax asset 210 $ 3,957 Net deferred tax liability $ (5,110 ) $ (3,363 ) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 : 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 20 $ 32.04 481(a ) Restricted stock (c) (b) (a) Performance units (d) (b) (a) Stock appreciation rights (“SARs”) (e) (b) (a) Total 481 (a) Under the 2015 Plan, 550,000 shares are authorized for issuance; 72,909 have been issued as of December 31, 2019 In January of 2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. Additional shares will not be issued pursuant to awards granted from prior plans. (b) Not applicable (c) The maximum number of shares of restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a participant during any calendar year is 75,000 shares. (d) No performance units payable in stock had been issued as of December 31, 2019. The maximum payment that can be made pursuant to performance units granted to any one participant in any calendar year is $1,000,000. (e) No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any calendar year is 100,000 shares. |
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, 2019 , 2018 , and 2017 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, 2019 , 2018 , and 2017 . (in thousands) 2019 2018 2017 Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end $ 1,410 $ 1,072 $ 1,242 Grant date fair value of shares vested for the year 605 645 564 Cash received from option exercises under all share-based payment arrangements for the year 401 399 693 Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year 27 49 138 |
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, 2019 . Plan Category Shares Available for Future Issuance Shares available at January 1, 2019 508,729 Stock option grants 0 Restricted stock grants (27,921 ) Forfeitures 588 Shares available for future issuance at December 31, 481,396 |
Schedule of Stock Option Activity | CTBI’s stock option activity for the 2015 Plan for the years ended December 31, 2019 , 2018 , and 2017 is summarized as follows: December 31 2019 _ 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 0 $ 0 10,000 $ 33.55 10,000 $ 33.55 Granted 0 0 0 0 0 0 Exercised 0 0 (10,000 ) 33.55 0 0 Forfeited/expired 0 0 0 0 0 0 Outstanding at end of year 0 $ 0 0 $ 0 10,000 $ 33.55 Exercisable at end of year 0 $ 0 0 $ 0 0 $ 0 |
Schedule of Intrinsic Values of Options Exercised, Exercisable, and Outstanding | The following table shows the intrinsic values of options exercised, exercisable, and outstanding for the 2015 Plan for the years ended December 31, 2019 , 2018 and 2017 : (in thousands) 2019 2018 2017 Options exercised $ 0 $ 140 0 Options exercisable 0 0 0 Outstanding options 0 0 136 |
Schedule of Restricted Stock Activity | The following table shows restricted stock activity for the 2015 Plan for the years ended December 31, 2019 , 2018 and 2017 : December 31 2019 2018 2017 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 34,255 $ 44.46 33,085 $ 41.84 17,496 $ 33.55 Granted 27,921 41.12 11,320 49.30 23,668 46.45 Vested (10,596 ) 42.39 (8,761 ) 40.46 (5,751 ) 35.79 Forfeited (588 ) 43.04 (1,389 ) 46.77 (2,328 ) 41.31 Outstanding at end of year 50,992 $ 43.08 34,255 $ 44.46 33,085 $ 41.84 |
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, 2019 , 2018 , and 2017 is summarized as follows: December 31 2019 2018 2017 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of year 32,571 $ 32.47 35,376 $ 31.90 61,041 $ 29.84 Granted 0 0 0 0 0 0 Exercised (12,076 ) 33.19 (2,475 ) 25.52 (25,665 ) 27.01 Forfeited/expired 0 0 (330 ) 23.79 0 0 Outstanding at end of year 20,495 $ 32.04 32,571 $ 32.47 35,376 $ 31.90 Exercisable at end of year 495 $ 22.81 2,571 $ 25.11 5,376 $ 25.22 |
Summary for Status of Nonvested Options | A summary of the status of CTBI’s 2006 Plan for nonvested options as of December 31, 2019 , and changes during the year ended December 31, 2019 , is presented as follows: Nonvested Options Options Weighted Average Grant Date Fair Value Nonvested at January 1, 2019 30,000 $ 6.98 Granted 0 0 Vested 10,000 7.76 Forfeited 0 0 Nonvested at December 31, 2019 20,000 $ 6.59 |
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, 2019 , 2018 , and 2017 : (in thousands) 2019 2018 2017 Options exercised $ 135 $ 56 $ 537 Options exercisable 12 37 118 Outstanding options 299 233 538 |
Schedule of Restricted Stock Activity | The following table shows restricted stock activity for the years ended December 31, 2019 , 2018 , and 2017 : December 31 2019 2018 2017 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 2,064 $ 32.27 5,426 $ 33.24 11,989 $ 32.85 Granted 0 0 0 0 0 0 Vested (2,064 ) $ 32.27 (3,236 ) 33.90 (6,214 ) 32.48 Forfeited 0 0 (126 ) 32.27 (349 ) 33.31 Outstanding at end of year 0 $ 0.00 2,064 $ 32.27 5,426 $ 33.24 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense for the year ended December 31, 2019 were as follows: (in thousands) Year Ended December 31, 2019 Finance lease cost: Amortization of right-of-use assets – finance leases $ 52 Interest on lease liabilities – finance leases 54 Total finance lease cost 106 Short-term lease cost 306 Operating lease cost 1,773 Sublease income 257 Total lease cost $ 1,928 |
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, 2019 was as follows: (in thousands) Year Ended December 31, 2019 Finance lease – operating cash flows $ 54 Finance lease – financing cash flows 14 Operating lease – operating cash flows (fixed payments) 1,665 New right-of-use assets – operating leases 9 New right-of-use assets – financing leases 0 Weighted average lease term – financing leases 26.02 years Weighted average lease term – operating leases 13.84 years Weighted average discount rate – financing leases 3.70 % Weighted average discount rate – operating leases 3.45 % |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2019 are as follows: (in thousands) Operating Leases Finance Leases 2019 $ 1,677 $ 68 2020 1,710 75 2021 1,703 75 2022 1,626 75 2023 1,313 75 Thereafter 9,654 1,985 Total lease payments 17,683 2,353 Less imputed interest (3,954 ) (897 ) Total $ 13,729 $ 1,456 |
Minimum Non-Cancellable Rental Payments | At December 31, 2018 , m inimum non-cancellable rental payments were as follows: (in thousands) Operating Lease Payments 2019 $ 1,999 2020 1,710 2021 1,737 2022 1,760 2023 1,696 Thereafter 13,031 Total $ 21,933 |
Fair Market Value of Financia_2
Fair Market Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Market Value of Financial Assets and Liabilities [Abstract] | |
Fair Value Assets Measured on Recurring Basis | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of December 31, 2019 and December 31, 2018 and indicate the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2019 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 $ 171,150 $ 54,263 $ 116,887 $ 0 State and political subdivisions 102,307 0 102,307 0 U.S. government sponsored agenc y mortgage-backed securities 295,245 0 295,245 0 Other debt securities 31,142 0 31,142 0 Equity securities at fair value 1,953 0 0 1,953 Mortgage servicing rights 3,263 0 0 3,263 (in thousands) Fair Value Measurements at December 31, 2018 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 217,938 $ 91,028 $ 126,910 $ 0 State and political subdivisions 124,488 0 124,488 0 U.S. government sponsored agenc y mortgage-backed securities 250,819 0 250,819 0 Other debt securities 501 0 501 0 Equity securities at fair value 1,173 0 0 1,173 Mortgage servicing rights 3,607 0 0 3,607 |
Reconciliation of the Beginning and Ending Balance of Recurring Fair Value Measurements Using Significant Unobservable (Level 3) Inputs | Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs: (in thousands) 2019 2018 Equity Securities at Fair Value Mortgage Servicing Rights Equity Securities at Fair Value Mortgage Servicing Rights Beginning balance $ 1,173 $ 3,607 $ 0 $ 3,484 Total unrealized gains (losses) Included in net income 780 (515 ) 1,173 73 Issues 0 631 0 466 Settlements 0 (460 ) 0 (416 ) Ending balance $ 1,953 $ 3,263 $ 1,173 $ 3,607 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 $ 780 $ (515 ) $ 1,173 $ 73 |
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: Noninterest Income (in thousands) 2019 2018 Total gains (losses) $ (195 ) $ 830 |
Fair Value Measurements of Recognized Assets Measured on Nonrecurring Basis | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of December 31, 2019 and December 31, 2018 and indicate the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2019 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 3,217 $ 0 $ 0 $ 3,217 Other real estate owned 12,593 0 0 12,593 (in thousands) Fair Value Measurements at December 31, 2018 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 747 $ 0 $ 0 $ 747 Other real estate owned 6,500 0 0 6,500 |
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, 2019 and December 31, 2018. (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2019 Valuation Technique(s) Unobservable Input Range (Weighted Average) Equity securities at fair value $1,953 Discount cash flows, computer pricing model Discount rate 8.0% - 12.0% (10.0%) Conversion date Dec 2022 Dec 2026 ( Dec 2024 Mortgage servicing rights $3,263 Discount cash flows, computer pricing model Constant prepayment rate 0.0% - 24.3% (11.7%) Probability of default 0.0% - 100.0% (2.7%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $3,217 Market comparable properties Marketability discount 7.0% - 99.0% (46.0%) Other real estate owned $12,593 Market comparable properties Comparability adjustments 6.0% - 29.8% (11.3%) (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2018 Valuation Technique(s) Unobservable Input Range (Weighted Average) Equity securities at fair value $1,173 Discount cash flows, computer pricing model Discount rate 8.0% - 12.0% (10.0%) Conversion date Dec 2022 Dec 2026 Dec 2024 Mortgage servicing rights $3,607 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 28.1% (9.5%) Probability of default 0.0% - 100.0% (2.6%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $747 Market comparable properties Marketability discount 0.0% - 95.1% (41.5%) Other real estate owned $6,500 Market comparable properties Comparability adjustments 6.0% - 47.6% (14.9%) |
Fair Value of Financial Instruments and Levels within the Fair Value Hierarchy of the Valuation Techniques | The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2019 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of December 31, 2019 were measured using an exit price notion. (in thousands) Fair Value Measurements at December 31, 2019 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 $ 264,683 $ 264,683 $ 0 $ 0 Certificates of deposit in other banks 245 0 245 0 Securities available-for-sale 599,844 54,263 545,581 0 Securities held-to-maturity 517 0 517 0 Equity securities at fair value 1,953 0 0 1,953 Loans held for sale 1,167 1,191 0 0 Loans, net 3,213,568 0 0 3,283,876 Federal Home Loan Bank stock 10,474 0 10,474 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,836 0 14,836 0 Mortgage servicing rights 3,263 0 0 3,263 Financial liabilities: Deposits $ 3,405,572 $ 865,760 $ 2,560,271 $ 0 Repurchase agreements 226,917 0 0 226,921 Federal funds purchased 7,906 0 7,906 0 Advances from Federal Home Loan Bank 415 0 446 0 Long-term debt 57,841 0 0 49,382 Accrued interest payable 2,839 0 2,839 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2018 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 141,450 $ 141,450 $ 0 $ 0 Certificates of deposit in other banks 3,920 0 3,914 0 Securities available-for-sale 593,746 91,028 502,718 0 Securities held-to-maturity 649 0 649 0 Equity securities at fair value 1,173 0 0 1,173 Loans held for sale 2,461 2,518 0 0 Loans, net 3,172,730 0 0 3,175,908 Federal Home Loan Bank stock 14,713 0 14,713 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,432 0 14,432 0 Mortgage servicing rights 3,607 0 0 3,607 Financial liabilities: Deposits $ 3,305,950 $ 803,316 $ 2,513,084 $ 0 Repurchase agreements 232,712 0 0 232,796 Federal funds purchased 1,180 0 1,180 0 Advances from Federal Home Loan Bank 436 0 468 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 2,902 0 2,902 0 Unrecognized financial instruments: Letters of credit Commitments to extend credit $ 0 $ 0 0 $ 0 Forward sale commitments 0 0 0 0 |
Off-Balance Sheet Transaction_2
Off-Balance Sheet Transactions and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Off-Balance Sheet Transactions and Guarantees [Abstract] | |
Off-Balance Sheet Financial Instruments | At December 31, CTBI had the following off-balance sheet financial instruments, whose approximate contract amounts represent additional credit risk to CTBI: (in thousands) 2019 2018 Standby letters of credit $ 30,679 $ 29,410 Commitments to extend credit 564,229 510,513 Total off-balance sheet financial instruments $ 594,908 $ 539,923 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Capital Amounts and Ratios | Consolidated Capital Ratios Actual For Capital Adequacy Purposes (in thousands) Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 capital (to average assets) $ 601,142 14.01 % $ 171,632 4.00 % Common equity Tier 1 capital (to risk weighted assets) 545,142 17.18 142,790 4.50 Tier 1 capital (to risk weighted assets) 601,142 18.94 190,436 6.00 Total capital (to risk weighted assets) 636,512 20.05 253,970 8.00 As of December 31, 2018: Tier 1 capital (to average assets) $ 562,771 13.51 % $ 166,623 4.00 % Common equity Tier 1 capital (to risk weighted assets) 505,271 16.27 139,749 4.50 Tier 1 capital (to risk weighted assets) 562,771 18.12 186,348 6.00 Total capital (to risk weighted assets) 598,934 19.29 248,391 8.00 Community Trust Bank, Inc.’s Capital Ratios Actual For Capital Adequacy Purposes To Be Well-Capitalized Under Prompt Corrective Action Provision (in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Tier 1 capital (to average assets) $ 570,256 13.34 % $ 170,991 4.00 % $ 213,739 5.00 % Common equity Tier 1 capital (to risk weighted assets) 570,256 18.01 142,485 4.50 205,811 6.50 Tier 1 capital (to risk weighted assets) 570,256 18.01 189,980 6.00 253,306 8.00 Total capital (to risk weighted assets) 605,625 19.12 253,400 8.00 316,749 10.00 As of December 31, 2018: Tier 1 capital (to average assets) $ 536,992 12.94 % $ 165,994 4.00 % $ 207,493 5.00 % Common equity Tier 1 capital (to risk weighted assets) 536,992 17.33 139,438 4.50 201,411 6.50 Tier 1 capital (to risk weighted assets) 536,992 17.33 185,918 6.00 247,890 8.00 Total capital (to risk weighted assets) 573,155 18.50 247,851 8.00 309,814 10.00 |
Parent Company Financial Stat_2
Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Parent Company Financial Statements [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets (in thousands) December 31 2019 2018 Assets: Cash on deposit $ 2,089 $ 1,939 Investment in and advances to subsidiaries 667,206 620,701 Goodwill 4,973 4,973 Premises and equipment, net 153 219 Deferred taxes 5,100 193 Other assets 44 45 Total assets $ 679,565 $ 628,070 Liabilities and shareholders’ equity: Long-term debt $ 61,341 $ 61,341 Other liabilities 3,338 2,579 Total liabilities 64,679 63,920 Shareholders’ equity 614,886 564,150 Total liabilities and shareholders’ equity $ 679,565 $ 628,070 |
Condensed Statements of Income and Comprehensive Income | Condensed Statements of Income and Comprehensive Income (in thousands) Year Ended December 31 2019 2018 2017 Income: Dividends from subsidiary banks $ 30,152 $ 26,750 $ 24,661 Other income 757 489 904 Total income 30,909 27,239 25,565 Expenses: Interest expense 2,520 2,318 1,723 Depreciation expense 144 135 116 Other expenses 3,273 3,156 2,858 Total expenses 5,937 5,609 4,697 Income before income taxes and equity in undistributed income of subsidiaries 24,972 21,630 20,868 Income tax benefit (4,947 ) (1,219 ) (1,445 ) Income before equity in undistributed income of subsidiaries 29,919 22,849 22,313 Equity in undistributed income of subsidiaries 34,621 36,379 29,180 Net income $ 64,540 $ 59,228 $ 51,493 Other comprehensive gain (loss) Unrealized holding gains (losses) on securities available-for-sale Unrealized holding gains (losses) arising during the period 14,270 (5,393 ) (820 ) Less: Reclassification adjustments for realized gains (losses) included in net income 3 (821 ) 73 Tax expense (benefit) 3,403 (960 ) (312 ) Other comprehensive gain (loss), net of tax 10,864 (3,612 ) (581 ) Comprehensive income $ 75,404 $ 55,616 $ 50,912 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows (in thousands) Year Ended December 31 2019 2018 2017 Cash flows from operating activities: Net income $ 64,540 $ 59,228 $ 51,493 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 144 135 116 Equity in undistributed earnings of subsidiaries (34,621 ) (36,379 ) (29,180 ) Deferred taxes (4,907 ) (12 ) 192 Stock-based compensation 859 710 636 Gain on debt repurchase (219 ) 0 (560 ) Changes in: Other assets 1 (50 ) (47 ) Other liabilities 683 53 412 Net cash provided by operating activities 26,480 23,685 23,062 Cash flows from investing activities: Payment for investment in subsidiary (1,281 ) 0 (1,440 ) Purchase of premises and equipment (78 ) (81 ) (179 ) Net cash used in investing activities (1,359 ) (81 ) (1,619 ) Cash flows from financing activities: Issuance of common stock 1,264 1,230 1,513 Dividends paid (26,235 ) (24,395 ) (22,981 ) Net cash used in financing activities (24,971 ) (23,165 ) (21,468 ) Net increase (decrease) in cash and cash equivalents 150 439 (25 ) Cash and cash equivalents at beginning of year 1,939 1,500 1,525 Cash and cash equivalents at end of year $ 2,089 $ 1,939 $ 1,500 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: Year Ended December 31 (in thousands except per share data) 2019 2018 2017 Numerator: Net income $ 64,540 $ 59,228 $ 51,493 Denominator: Basic earnings per share: Weighted average shares 17,724 17,687 17,631 Diluted earnings per share: Dilutive effect of equity grants 16 16 22 Adjusted weighted average shares 17,740 17,703 17,653 Earnings per share: Basic earnings per share $ 3.64 $ 3.35 $ 2.92 Diluted earnings per share 3.64 3.35 2.92 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income [Abstract] | |
Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI) | Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the years ended December 31, 2019 , 2018 , and 2017 were: Amounts Reclassified from AOCI Year Ended December 31 (in thousands) 2019 2018 2017 Affected line item in the statements of income Securities gains (losses) $ 3 $ (821 ) $ 73 Tax expense (benefit) 1 (172 ) 26 Total reclassifications out of AOCI $ 2 $ (649 ) $ 47 |
Accounting Policies (Details)
Accounting Policies (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)QuarterPaymentSegment$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Certificates of Deposits in Other Banks [Abstract] | ||||
Maturity period of certificates of deposit in other banks | 18 months | |||
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 | |||
Allowance for Loan and Lease Losses [Abstract] | ||||
Number of delinquent monthly payments before loan charge off | Payment | 5 | |||
Current value assessment period for past due loans secured against real estate | 90 days | |||
Threshold period past due for initiation of foreclosure proceedings | 120 days | |||
Historical loan loss review period | Quarter | 12 | |||
Goodwill and Core Deposit Intangible [Abstract] | ||||
Goodwill | $ 65,490 | $ 65,490 | ||
Segment Reporting [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
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 | |||
Buildings [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 40 years | |||
Furniture, Fixtures, and Equipment [Member] | Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 2 years | |||
Furniture, Fixtures, and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life | 10 years | |||
State [Member] | Kentucky [Member] | ||||
Income Taxes [Abstract] | ||||
Corporate income tax rate | 5.00% | |||
Deferred tax liability due to enactment of HB354 | $ 1,000 | |||
Tax benefit to reverse valuation allowance on deferred tax asset for net operating losses | $ (3,700) | |||
State income tax benefit, net of federal income tax | $ (2,700) | |||
State income tax benefit per basic share, net of federal income tax (in dollars per share) | $ / shares | $ 0.15 | |||
Commercial [Member] | Unsecured Commercial Loan [Member] | ||||
Allowance for Loan and Lease Losses [Abstract] | ||||
Charge off threshold for loans considered uncollectible | 90 days | |||
Consumer [Member] | Closed-End Consumer Loan [Member] | ||||
Allowance for Loan and Lease Losses [Abstract] | ||||
Charge off threshold for loans considered uncollectible | 120 days | |||
ASU 2016-13 [Member] | ||||
New Accounting Standards [Abstract] | ||||
Forecast period used in calculating the allowance for credit losses | 2 years | |||
ASU 2016-13 [Member] | Forecast [Member] | Minimum [Member] | ||||
New Accounting Standards [Abstract] | ||||
Increase in allowance for credit losses upon adoption of ASU | $ 2,100 | |||
Percentage of increase in allowance for credit losses upon adoption of ASU | 6.00% | |||
ASU 2016-13 [Member] | Forecast [Member] | Maximum [Member] | ||||
New Accounting Standards [Abstract] | ||||
Increase in allowance for credit losses upon adoption of ASU | $ 3,900 | |||
Percentage of increase in allowance for credit losses upon adoption of ASU | 11.00% |
Cash and Due from Banks and I_2
Cash and Due from Banks and Interest Bearing Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Reserve [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Balance requirements | $ 78 | $ 74.7 |
Cash accounts which exceeded federally insured limits | 203.6 | |
US Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | 23.2 | |
Fifth Third Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | 0.9 | |
Federal Home Loan Bank [Member] | ||
Cash and Due from Banks and Interest Bearing Deposits [Abstract] | ||
Cash accounts which exceeded federally insured limits | $ 2.4 |
Securities, Available-for-Sale
Securities, Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale [Abstract] | ||
Amortized cost | $ 593,945 | $ 602,114 |
Gross unrealized gains | 7,860 | 1,078 |
Gross unrealized losses | (1,961) | (9,446) |
Fair value | 599,844 | 593,746 |
U.S. Treasury and Government Agencies [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 171,250 | 219,358 |
Gross unrealized gains | 476 | 48 |
Gross unrealized losses | (576) | (1,468) |
Fair value | 171,150 | 217,938 |
State and Political Subdivisions [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 99,403 | 126,280 |
Gross unrealized gains | 2,941 | 633 |
Gross unrealized losses | (37) | (2,425) |
Fair value | 102,307 | 124,488 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 291,874 | 255,969 |
Gross unrealized gains | 4,443 | 397 |
Gross unrealized losses | (1,072) | (5,547) |
Fair value | 295,245 | 250,819 |
Other Debt Securities [Member] | ||
Available-for-sale [Abstract] | ||
Amortized cost | 31,418 | 507 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (276) | (6) |
Fair value | $ 31,142 | $ 501 |
Securities, Held-to-maturity Se
Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities Held-to-Maturity [Abstract] | ||
Amortized cost | $ 517 | $ 649 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | 517 | 649 |
State and Political Subdivisions [Member] | ||
Securities Held-to-Maturity [Abstract] | ||
Amortized cost | 517 | 649 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 517 | $ 649 |
Securities, Amortized Cost and
Securities, Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale, amortized cost [Abstract] | ||
Due in one year or less | $ 84,795 | |
Due after one through five years | 23,605 | |
Due after five through ten years | 91,043 | |
Due after ten years | 71,210 | |
Amortized cost | 593,945 | $ 602,114 |
Available for sale, fair value [Abstract] | ||
Due in one year or less | 85,107 | |
Due after one through five years | 23,963 | |
Due after five through ten years | 91,175 | |
Due after ten years | 73,212 | |
Fair value | 599,844 | 593,746 |
Held-to-maturity, amortized cost [Abstract] | ||
Due in one year or less | 517 | |
Due after one through five years | 0 | |
Due after five through ten years | 0 | |
Due after ten years | 0 | |
Amortized cost | 517 | 649 |
Held-to-maturity, fair value [Abstract] | ||
Due in one year or less | 517 | |
Due after one through five years | 0 | |
Due after five through ten years | 0 | |
Due after ten years | 0 | |
Fair value | 517 | 649 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Available for sale, amortized cost [Abstract] | ||
Without single maturity date | 291,874 | |
Amortized cost | 291,874 | 255,969 |
Available for sale, fair value [Abstract] | ||
Without single maturity date | 295,245 | |
Fair value | 295,245 | 250,819 |
Held-to-maturity, amortized cost [Abstract] | ||
Without single maturity date | 0 | |
Held-to-maturity, fair value [Abstract] | ||
Without single maturity date | 0 | |
Other Debt Obligations [Member] | ||
Available for sale, amortized cost [Abstract] | ||
Without single maturity date | 31,418 | |
Amortized cost | 31,418 | 507 |
Available for sale, fair value [Abstract] | ||
Without single maturity date | 31,142 | |
Fair value | 31,142 | $ 501 |
Held-to-maturity, amortized cost [Abstract] | ||
Without single maturity date | 0 | |
Held-to-maturity, fair value [Abstract] | ||
Without single maturity date | $ 0 |
Securities, Gains (Loss) on Sal
Securities, Gains (Loss) on Sales of Securities, Securities Pledged, and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2008 | |
Gains (Loss) on Sales of Securities [Abstract} | ||||
Net securities gain (loss) | $ 783 | $ (85) | $ 73 | |
Net gain (loss) realized on sales and calls of AFS securities | 3 | (85) | 73 | |
Realized pre-tax gain on sales and calls of AFS securities | 80 | |||
Realized pre-tax loss on sales and calls of AFS securities | 77 | |||
Unrealized gain from fair market value adjustment of equity securities | 780 | 0 | $ 0 | |
Equity securities at fair value | 1,953 | 1,173 | ||
Securities Pledged as Collateral [Abstract] | ||||
Securities pledged as collateral to secure public deposit and for other purposes | 239,100 | 258,800 | ||
Securities Sold under Agreements to Repurchase [Abstract] | ||||
Amortized cost of securities sold under agreements to repurchase | 261,500 | 289,100 | ||
Visa Class B Restricted Stock [Member] | ||||
Gains (Loss) on Sales of Securities [Abstract} | ||||
Gain on recognition of fair value of equity securities | $ 1,200 | |||
Number of shares of stock acquired (in shares) | 9,918 | |||
Equity securities at fair value | $ 2,000 | |||
Number of shares held in portfolio (in shares) | 9,918 |
Securities, Securities in Conti
Securities, Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities [Abstract] | ||
Percentage of total investment with unrealized losses | 42.80% | 75.70% |
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | $ 85,046 | $ 163,059 |
12 months or more | 173,948 | 297,524 |
Total | 258,994 | 460,583 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (561) | (848) |
12 months or more | (1,400) | (8,598) |
Total | (1,961) | (9,446) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 84,485 | 162,211 |
12 months or more | 172,548 | 288,926 |
Total | 257,033 | 451,137 |
U.S. Treasury and Government Agencies [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 25,955 | 78,905 |
12 months or more | 82,339 | 97,955 |
Total | 108,294 | 176,860 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (148) | (271) |
12 months or more | (428) | (1,197) |
Total | (576) | (1,468) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 25,807 | 78,634 |
12 months or more | 81,911 | 96,758 |
Total | 107,718 | 175,392 |
State and Political Subdivisions [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 8,356 | 21,707 |
12 months or more | 0 | 51,911 |
Total | 8,356 | 73,618 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (37) | (194) |
12 months or more | 0 | (2,231) |
Total | (37) | (2,425) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 8,319 | 21,513 |
12 months or more | 0 | 49,680 |
Total | 8,319 | 71,193 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 19,317 | 61,940 |
12 months or more | 91,609 | 147,658 |
Total | 110,926 | 209,598 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (100) | (377) |
12 months or more | (972) | (5,170) |
Total | (1,072) | (5,547) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 19,217 | 61,563 |
12 months or more | 90,637 | 142,488 |
Total | 109,854 | 204,051 |
Other Debt Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 31,418 | 507 |
12 months or more | 0 | 0 |
Total | 31,418 | 507 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (276) | (6) |
12 months or more | 0 | 0 |
Total | (276) | (6) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 31,142 | 501 |
12 months or more | 0 | 0 |
Total | $ 31,142 | $ 501 |
Loans, Major Classifications of
Loans, Major Classifications of Loans, Net of Income and Deferred Loan Origination Cost (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | |
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | $ 3,248,664 | $ 3,208,638 |
Number of portfolio segments | Segment | 9 | |
Loans held for sale [Abstract] | ||
Loans held for sale | $ 1,167 | 2,461 |
Commercial [Member] | Construction [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 104,809 | 82,715 |
Commercial [Member] | Real Estate [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 1,169,975 | 1,183,093 |
Commercial [Member] | Equipment Lease Financing [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 481 | 1,740 |
Commercial [Member] | Other [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 389,683 | 377,198 |
Residential [Member] | Construction [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 63,350 | 57,160 |
Residential [Member] | Real Estate [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 733,003 | 722,417 |
Residential [Member] | Home Equity [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 111,894 | 106,299 |
Consumer [Member] | Consumer Direct [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | 148,051 | 144,289 |
Consumer [Member] | Consumer Indirect [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Loans | $ 527,418 | $ 533,727 |
Loans, Nonaccrual Loans Segrega
Loans, Nonaccrual Loans Segregated by Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | $ 13,999 | $ 11,867 |
Commercial [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | 230 | 639 |
Commercial [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | 3,759 | 4,537 |
Commercial [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | 3,839 | 797 |
Residential [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | 634 | 22 |
Residential [Member] | Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | 4,821 | 5,395 |
Residential [Member] | Home Equity [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Total nonaccrual loans | $ 716 | $ 477 |
Loans, Loan Portfolio Aging Ana
Loans, Loan Portfolio Aging Analysis, Segregated by Class (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | $ 55,255,000 | $ 43,546,000 | |
Current | 3,193,409,000 | 3,165,092,000 | |
Total Loans | 3,248,664,000 | 3,208,638,000 | |
90+ and Accruing | [1] | 19,620,000 | 10,198,000 |
Minimum threshold amount of loans requiring performance bond | 500,000 | ||
30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 10,689,000 | 15,378,000 | |
60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 13,232,000 | 8,970,000 | |
90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 31,334,000 | 19,198,000 | |
Commercial [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Loans | 1,664,948,000 | 1,644,746,000 | |
Commercial [Member] | Construction [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 585,000 | 843,000 | |
Current | 104,224,000 | 81,872,000 | |
Total Loans | 104,809,000 | 82,715,000 | |
90+ and Accruing | [1] | 237,000 | 58,000 |
Commercial [Member] | Construction [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 118,000 | 87,000 | |
Commercial [Member] | Construction [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 58,000 | |
Commercial [Member] | Construction [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 467,000 | 698,000 | |
Commercial [Member] | Real Estate [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 21,069,000 | 16,267,000 | |
Current | 1,148,906,000 | 1,166,826,000 | |
Total Loans | 1,169,975,000 | 1,183,093,000 | |
90+ and Accruing | [1] | 8,820,000 | 4,632,000 |
Commercial [Member] | Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 2,734,000 | 6,287,000 | |
Commercial [Member] | Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 5,969,000 | 1,204,000 | |
Commercial [Member] | Real Estate [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 12,366,000 | 8,776,000 | |
Commercial [Member] | Equipment Lease Financing [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Current | 481,000 | 1,740,000 | |
Total Loans | 481,000 | 1,740,000 | |
90+ and Accruing | [1] | 0 | 0 |
Commercial [Member] | Equipment Lease Financing [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | Equipment Lease Financing [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | Equipment Lease Financing [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | Other [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 7,431,000 | 2,218,000 | |
Current | 382,252,000 | 374,980,000 | |
Total Loans | 389,683,000 | 377,198,000 | |
90+ and Accruing | [1] | 2,586,000 | 581,000 |
Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 880,000 | 1,057,000 | |
Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 284,000 | 94,000 | |
Commercial [Member] | Other [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 6,267,000 | 1,067,000 | |
Residential [Member] | Construction [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 803,000 | 610,000 | |
Current | 62,547,000 | 56,550,000 | |
Total Loans | 63,350,000 | 57,160,000 | |
90+ and Accruing | [1] | 0 | 6,000 |
Residential [Member] | Construction [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 117,000 | 144,000 | |
Residential [Member] | Construction [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 52,000 | 438,000 | |
Residential [Member] | Construction [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 634,000 | 28,000 | |
Residential [Member] | Real Estate [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 16,470,000 | 14,524,000 | |
Current | 716,533,000 | 707,893,000 | |
Total Loans | 733,003,000 | 722,417,000 | |
90+ and Accruing | [1] | 7,088,000 | 4,095,000 |
Residential [Member] | Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 774,000 | 1,272,000 | |
Residential [Member] | Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 5,376,000 | 5,645,000 | |
Residential [Member] | Real Estate [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 10,320,000 | 7,607,000 | |
Residential [Member] | Home Equity [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 2,232,000 | 1,704,000 | |
Current | 109,662,000 | 104,595,000 | |
Total Loans | 111,894,000 | 106,299,000 | |
90+ and Accruing | [1] | 344,000 | 246,000 |
Residential [Member] | Home Equity [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 1,084,000 | 898,000 | |
Residential [Member] | Home Equity [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 412,000 | 365,000 | |
Residential [Member] | Home Equity [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 736,000 | 441,000 | |
Consumer [Member] | Consumer Direct [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 1,272,000 | 1,183,000 | |
Current | 146,779,000 | 143,106,000 | |
Total Loans | 148,051,000 | 144,289,000 | |
90+ and Accruing | [1] | 97,000 | 74,000 |
Consumer [Member] | Consumer Direct [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 945,000 | 918,000 | |
Consumer [Member] | Consumer Direct [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 230,000 | 191,000 | |
Consumer [Member] | Consumer Direct [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 97,000 | 74,000 | |
Consumer [Member] | Consumer Indirect [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 5,393,000 | 6,197,000 | |
Current | 522,025,000 | 527,530,000 | |
Total Loans | 527,418,000 | 533,727,000 | |
90+ and Accruing | [1] | 448,000 | 506,000 |
Consumer [Member] | Consumer Indirect [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 4,037,000 | 4,715,000 | |
Consumer [Member] | Consumer Indirect [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 909,000 | 975,000 | |
Consumer [Member] | Consumer Indirect [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | $ 447,000 | $ 507,000 | |
[1] | 90+ and Accruing are also included in 90+ Days Past Due column. |
Loans, Credit Risk Profile Base
Loans, Credit Risk Profile Based on Rating Category and Payment Activity and on Performing and Nonperforming Status, Segregated by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 3,248,664 | $ 3,208,638 | |
Consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process | 2,400 | 3,300 | |
Commercial [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,664,948 | 1,644,746 | |
Commercial [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 1,493,359 | 1,441,702 | |
Commercial [Member] | Pass [Member] | Minimum [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Review period for loans | 12 months | ||
Commercial [Member] | Pass [Member] | Maximum [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Review period for loans | 18 months | ||
Commercial [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 71,551 | 103,890 | |
Commercial [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 34,283 | 27,063 | |
Commercial [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 65,663 | 71,924 | |
Commercial [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 92 | 167 | |
Commercial [Member] | Construction [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 104,809 | 82,715 | |
Commercial [Member] | Construction [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 98,102 | 74,222 | |
Commercial [Member] | Construction [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 3,595 | 3,070 | |
Commercial [Member] | Construction [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 254 | 1,594 | |
Commercial [Member] | Construction [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 2,858 | 3,829 | |
Commercial [Member] | Construction [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Real Estate [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,169,975 | 1,183,093 | |
Commercial [Member] | Real Estate [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,036,573 | 1,038,309 | |
Commercial [Member] | Real Estate [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 54,338 | 71,834 | |
Commercial [Member] | Real Estate [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 27,964 | 19,734 | |
Commercial [Member] | Real Estate [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 51,068 | 53,125 | |
Commercial [Member] | Real Estate [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 32 | 91 | |
Commercial [Member] | Equipment Lease [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 481 | 1,740 | |
Commercial [Member] | Equipment Lease [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 481 | 1,740 | |
Commercial [Member] | Equipment Lease [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Equipment Lease [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Equipment Lease [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Equipment Lease [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Other [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 389,683 | 377,198 | |
Commercial [Member] | Other [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 358,203 | 327,431 | |
Commercial [Member] | Other [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 13,618 | 28,986 | |
Commercial [Member] | Other [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 6,065 | 5,735 | |
Commercial [Member] | Other [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 11,737 | 14,970 | |
Commercial [Member] | Other [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 60 | 76 | |
Residential [Member] | Construction [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 63,350 | 57,160 | |
Residential [Member] | Construction [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 62,716 | 57,132 | |
Residential [Member] | Construction [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 634 | 28 |
Residential [Member] | Real Estate [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 733,003 | 722,417 | |
Residential [Member] | Real Estate [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 721,094 | 712,927 | |
Residential [Member] | Real Estate [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 11,909 | 9,490 |
Residential [Member] | Home Equity [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 111,894 | 106,299 | |
Residential [Member] | Home Equity [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 110,834 | 105,576 | |
Residential [Member] | Home Equity [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 1,060 | 723 |
Consumer [Member] | Consumer Direct [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 148,051 | 144,289 | |
Consumer [Member] | Consumer Direct [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 147,954 | 144,215 | |
Consumer [Member] | Consumer Direct [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 97 | 74 |
Consumer [Member] | Consumer Indirect [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 527,418 | 533,727 | |
Consumer [Member] | Consumer Indirect [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 526,970 | 533,221 | |
Consumer [Member] | Consumer Indirect [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 448 | 506 |
Residential and Consumer Portfolio Segments [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,583,716 | 1,563,892 | |
Residential and Consumer Portfolio Segments [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,569,568 | 1,553,071 | |
Residential and Consumer Portfolio Segments [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | $ 14,148 | $ 10,821 |
[1] | A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
Loans, Impaired Loans, Average
Loans, Impaired Loans, Average Investments in Impaired Loans, and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Loans with a specific valuation allowance [Abstract] | ||||
Specific Allowance | $ 1,212 | $ 801 | $ 991 | |
Total impaired loans [Abstract] | ||||
Recorded Balance | 57,771 | 46,366 | 47,412 | |
Unpaid Contractual Principal Balance | 61,786 | 50,956 | 52,212 | |
Specific Allowance | 1,212 | 801 | 991 | |
Average Investment in Impaired Loans | 55,700 | 47,097 | 49,343 | |
Interest Income Recognized | [1] | 2,371 | 2,171 | 2,127 |
Commercial [Member] | Construction [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 2,836 | 4,100 | 4,431 | |
Unpaid Contractual Principal Balance | 2,837 | 4,100 | 4,439 | |
Average Investment in Impaired Loans | 3,234 | 3,923 | 4,835 | |
Interest Income Recognized | [1] | 170 | 171 | 200 |
Loans with a specific valuation allowance [Abstract] | ||||
Recorded Balance | 174 | 127 | 153 | |
Unpaid Contractual Principal Balance | 174 | 127 | 173 | |
Specific Allowance | 99 | 50 | 25 | |
Average Investment in Impaired Loans | 215 | 42 | 155 | |
Interest Income Recognized | [1] | 11 | 0 | 0 |
Total impaired loans [Abstract] | ||||
Recorded Balance | 3,010 | 4,227 | 4,584 | |
Unpaid Contractual Principal Balance | 3,011 | 4,227 | 4,612 | |
Specific Allowance | 99 | 50 | 25 | |
Average Investment in Impaired Loans | 3,449 | 3,965 | 4,990 | |
Interest Income Recognized | [1] | 181 | 171 | 200 |
Commercial [Member] | Real Estate [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 40,346 | 29,645 | 28,480 | |
Unpaid Contractual Principal Balance | 41,557 | 31,409 | 30,365 | |
Average Investment in Impaired Loans | 36,976 | 30,250 | 27,753 | |
Interest Income Recognized | [1] | 1,601 | 1,412 | 1,344 |
Loans with a specific valuation allowance [Abstract] | ||||
Recorded Balance | 1,033 | 1,854 | 2,985 | |
Unpaid Contractual Principal Balance | 2,176 | 2,983 | 4,095 | |
Specific Allowance | 227 | 605 | 966 | |
Average Investment in Impaired Loans | 1,678 | 2,051 | 3,932 | |
Interest Income Recognized | [1] | 15 | 1 | 8 |
Total impaired loans [Abstract] | ||||
Recorded Balance | 41,379 | 31,499 | 31,465 | |
Unpaid Contractual Principal Balance | 43,733 | 34,392 | 34,460 | |
Specific Allowance | 227 | 605 | 966 | |
Average Investment in Impaired Loans | 38,654 | 32,301 | 31,685 | |
Interest Income Recognized | [1] | 1,616 | 1,413 | 1,352 |
Commercial [Member] | Equipment Lease Financing [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 0 | |||
Unpaid Contractual Principal Balance | 0 | |||
Average Investment in Impaired Loans | 34 | |||
Interest Income Recognized | [1] | 0 | ||
Loans with a specific valuation allowance [Abstract] | ||||
Specific Allowance | 0 | |||
Total impaired loans [Abstract] | ||||
Recorded Balance | 0 | |||
Unpaid Contractual Principal Balance | 0 | |||
Specific Allowance | 0 | |||
Average Investment in Impaired Loans | 34 | |||
Interest Income Recognized | [1] | 0 | ||
Commercial [Member] | Other [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 7,829 | 8,285 | 9,481 | |
Unpaid Contractual Principal Balance | 9,489 | 9,982 | 11,252 | |
Average Investment in Impaired Loans | 9,889 | 8,774 | 10,444 | |
Interest Income Recognized | [1] | 460 | 530 | 539 |
Loans with a specific valuation allowance [Abstract] | ||||
Recorded Balance | 3,244 | 473 | 0 | |
Unpaid Contractual Principal Balance | 3,244 | 473 | 0 | |
Specific Allowance | 886 | 146 | 0 | |
Average Investment in Impaired Loans | 1,323 | 285 | 65 | |
Interest Income Recognized | [1] | 29 | 16 | 0 |
Total impaired loans [Abstract] | ||||
Recorded Balance | 11,073 | 8,758 | 9,481 | |
Unpaid Contractual Principal Balance | 12,733 | 10,455 | 11,252 | |
Specific Allowance | 886 | 146 | 0 | |
Average Investment in Impaired Loans | 11,212 | 9,059 | 10,509 | |
Interest Income Recognized | [1] | 489 | 546 | 539 |
Residential [Member] | Construction [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 0 | 318 | ||
Unpaid Contractual Principal Balance | 0 | 318 | ||
Average Investment in Impaired Loans | 106 | 534 | ||
Interest Income Recognized | [1] | 0 | 0 | |
Loans with a specific valuation allowance [Abstract] | ||||
Specific Allowance | 0 | 0 | ||
Total impaired loans [Abstract] | ||||
Recorded Balance | 0 | 318 | ||
Unpaid Contractual Principal Balance | 0 | 318 | ||
Specific Allowance | 0 | 0 | ||
Average Investment in Impaired Loans | 106 | 534 | ||
Interest Income Recognized | [1] | 0 | 0 | |
Residential [Member] | Real Estate [Member] | ||||
Loans without a specific valuation allowance [Abstract] | ||||
Recorded Balance | 2,309 | 1,882 | 1,564 | |
Unpaid Contractual Principal Balance | 2,309 | 1,882 | 1,570 | |
Average Investment in Impaired Loans | 2,385 | 1,666 | 1,591 | |
Interest Income Recognized | [1] | 85 | 41 | 36 |
Loans with a specific valuation allowance [Abstract] | ||||
Specific Allowance | 0 | 0 | 0 | |
Total impaired loans [Abstract] | ||||
Recorded Balance | 2,309 | 1,882 | 1,564 | |
Unpaid Contractual Principal Balance | 2,309 | 1,882 | 1,570 | |
Specific Allowance | 0 | 0 | 0 | |
Average Investment in Impaired Loans | 2,385 | 1,666 | 1,591 | |
Interest Income Recognized | [1] | $ 85 | $ 41 | $ 36 |
[1] | Cash basis interest is substantially the same as interest income recognized. |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings Segregated by Class (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 35 | 40 |
Post-Modification Outstanding Balance | $ 9,076 | $ 9,017 |
Commitment to extend additional credit on loans modified in TDRs | $ 82 | $ 45 |
Defaulted restructured loans, number of loans | Loan | 3 | 4 |
Defaulted restructured loans, recorded balance | $ 527 | $ 249 |
Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 8,133 | 6,915 |
Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 943 | $ 2,102 |
Commercial [Member] | Construction [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 0 | 5 |
Post-Modification Outstanding Balance | $ 0 | $ 2,197 |
Defaulted restructured loans, number of loans | Loan | 0 | 2 |
Defaulted restructured loans, recorded balance | $ 0 | $ 148 |
Commercial [Member] | Construction [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 2,182 |
Commercial [Member] | Construction [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Construction [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 0 | $ 15 |
Commercial [Member] | Real Estate [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 17 | 24 |
Post-Modification Outstanding Balance | $ 6,784 | $ 5,387 |
Defaulted restructured loans, number of loans | Loan | 1 | 1 |
Defaulted restructured loans, recorded balance | $ 30 | $ 17 |
Commercial [Member] | Real Estate [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 6,105 | 4,004 |
Commercial [Member] | Real Estate [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Real Estate [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 679 | $ 1,383 |
Commercial [Member] | Other [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 17 | 8 |
Post-Modification Outstanding Balance | $ 1,829 | $ 465 |
Defaulted restructured loans, number of loans | Loan | 1 | 1 |
Defaulted restructured loans, recorded balance | $ 34 | $ 84 |
Commercial [Member] | Other [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 1,565 | 465 |
Commercial [Member] | Other [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Commercial [Member] | Other [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 264 | $ 0 |
Residential [Member] | Real Estate [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Number of Loans | Loan | 1 | 3 |
Post-Modification Outstanding Balance | $ 463 | $ 968 |
Defaulted restructured loans, number of loans | Loan | 1 | |
Defaulted restructured loans, recorded balance | $ 463 | |
Residential [Member] | Real Estate [Member] | Term Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 463 | 264 |
Residential [Member] | Real Estate [Member] | Rate Modification [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | 0 | 0 |
Residential [Member] | Real Estate [Member] | Combination [Member] | ||
Troubled Debt Restructurings Segregated by Class [Abstract] | ||
Post-Modification Outstanding Balance | $ 0 | $ 704 |
Mortgage Banking and Servicin_3
Mortgage Banking and Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Mortgage Banking and Servicing Rights [Abstract] | ||||
Net gain on sale of mortgage loans held for sale | $ 1,746 | $ 1,288 | $ 1,232 | |
Net loan servicing income (expense) [Abstract] | ||||
Servicing fees | 1,297 | 1,275 | 1,255 | |
Late fees | 72 | 73 | 84 | |
Ancillary fees | 190 | 282 | 239 | |
Fair value adjustments | (975) | (343) | (361) | |
Net loan servicing income | 584 | 1,287 | 1,217 | |
Mortgage banking income | 2,330 | 2,575 | 2,449 | |
Loan service for benefit of others | 486,000 | 462,000 | 462,000 | |
Custodial escrow balance | 1,400 | 1,000 | 1,000 | |
Activity for capitalized mortgage servicing rights using fair value method [Roll Forward] | ||||
Fair value of MSRs, beginning of period | 3,607 | 3,484 | 3,433 | |
New servicing assets created | 631 | 466 | 412 | |
Change in fair value during the period due to [Abstract] | ||||
Time decay | [1] | (167) | (189) | (184) |
Payoffs | [2] | (293) | (227) | (268) |
Changes in valuation inputs or assumptions | [3] | (515) | 73 | 91 |
Fair value of MSRs, end of period | $ 3,263 | $ 3,607 | $ 3,484 | |
Discount rate of servicing assets and servicing liabilities | 10.10% | 10.10% | 10.10% | |
Weighted average default rates | 2.69% | 2.57% | 3.03% | |
Prepayment speeds generated using Andrew Davidson Prepayment Model | 11.70% | 9.50% | 10.00% | |
[1] | Represents decrease in value due to regularly scheduled loan principal payments and partial loan paydowns. | |||
[2] | Represents decrease in value due to loans that paid off during the period. | |||
[3] | Represents change in value resulting from market-driven changes in interest rates. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Related party extensions of credit, beginning of period | $ 19,463 | $ 16,832 | |
New loans and advances on lines of credit | 1 | 6,425 | |
Repayments | (1,686) | (3,794) | |
Increase (decrease) due to changes in related parties | 20,038 | 0 | |
Related party extensions of credit, end of period | 37,816 | 19,463 | $ 16,832 |
Due to Related Parties [Abstract] | |||
Balances of related party deposits | 20,900 | 16,600 | |
Director Who is Shareholder in Law Firm [Member] | Law Firm [Member] | |||
Related Parties Transactions [Abstract] | |||
Legal fees | 1,100 | 1,100 | 1,100 |
Expenses | 100 | 100 | 100 |
Total payment to related party | $ 1,200 | $ 1,200 | $ 1,200 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses [Roll Forward] | |||
Beginning balance | $ 35,908 | $ 36,151 | $ 35,933 |
Provision charged to expense | 4,819 | 6,167 | 7,521 |
Losses charged off | (9,736) | (10,998) | (11,085) |
Recoveries | 4,105 | 4,588 | 3,782 |
Ending balance | 35,096 | 35,908 | 36,151 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 1,212 | 801 | 991 |
Collectively evaluated for impairment | 33,884 | 35,107 | 35,160 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 57,771 | 46,366 | 47,412 |
Collectively evaluated for impairment | 3,190,893 | 3,162,272 | 3,075,528 |
Commercial [Member] | Construction [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 862 | 686 | 884 |
Provision charged to expense | 497 | 115 | (237) |
Losses charged off | (72) | 0 | (10) |
Recoveries | 12 | 61 | 49 |
Ending balance | 1,299 | 862 | 686 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 99 | 50 | 25 |
Collectively evaluated for impairment | 1,200 | 812 | 661 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 3,010 | 4,227 | 4,584 |
Collectively evaluated for impairment | 101,799 | 78,488 | 71,895 |
Commercial [Member] | Real Estate [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 14,531 | 14,509 | 14,191 |
Provision charged to expense | (137) | 786 | 2,281 |
Losses charged off | (727) | (988) | (2,038) |
Recoveries | 358 | 224 | 75 |
Ending balance | 14,025 | 14,531 | 14,509 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 227 | 605 | 966 |
Collectively evaluated for impairment | 13,798 | 13,926 | 13,543 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 41,379 | 31,499 | 31,465 |
Collectively evaluated for impairment | 1,128,596 | 1,151,594 | 1,157,215 |
Commercial [Member] | Equipment Lease Financing [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 12 | 18 | 42 |
Provision charged to expense | (8) | (6) | (24) |
Losses charged off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 4 | 12 | 18 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 4 | 12 | 18 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 481 | 1,740 | 3,042 |
Commercial [Member] | Other [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 4,993 | 5,039 | 4,656 |
Provision charged to expense | 3,032 | 824 | 1,744 |
Losses charged off | (2,179) | (1,513) | (1,893) |
Recoveries | 509 | 643 | 532 |
Ending balance | 6,355 | 4,993 | 5,039 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 886 | 146 | 0 |
Collectively evaluated for impairment | 5,469 | 4,847 | 5,039 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 11,073 | 8,758 | 9,481 |
Collectively evaluated for impairment | 378,610 | 368,440 | 341,553 |
Residential [Member] | Construction [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 512 | 660 | 629 |
Provision charged to expense | (40) | (115) | 31 |
Losses charged off | (100) | (33) | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 372 | 512 | 660 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 372 | 512 | 660 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 318 |
Collectively evaluated for impairment | 63,350 | 57,160 | 67,040 |
Residential [Member] | Real Estate [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 4,433 | 5,688 | 6,027 |
Provision charged to expense | 414 | (336) | 189 |
Losses charged off | (767) | (1,004) | (615) |
Recoveries | 152 | 85 | 87 |
Ending balance | 4,232 | 4,433 | 5,688 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 4,232 | 4,433 | 5,688 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 2,309 | 1,882 | 1,564 |
Collectively evaluated for impairment | 730,694 | 720,535 | 708,006 |
Residential [Member] | Home Equity [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 841 | 857 | 774 |
Provision charged to expense | 172 | 39 | 257 |
Losses charged off | (139) | (69) | (178) |
Recoveries | 23 | 14 | 4 |
Ending balance | 897 | 841 | 857 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 897 | 841 | 857 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 111,894 | 106,299 | 99,356 |
Consumer [Member] | Consumer Direct [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 1,883 | 1,863 | 1,885 |
Provision charged to expense | 528 | 572 | 418 |
Losses charged off | (1,100) | (997) | (965) |
Recoveries | 400 | 445 | 525 |
Ending balance | 1,711 | 1,883 | 1,863 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,711 | 1,883 | 1,863 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 148,051 | 144,289 | 137,754 |
Consumer [Member] | Consumer Indirect [Member] | |||
Allowance for loan losses [Roll Forward] | |||
Beginning balance | 7,841 | 6,831 | 6,845 |
Provision charged to expense | 361 | 4,288 | 2,862 |
Losses charged off | (4,652) | (6,394) | (5,386) |
Recoveries | 2,651 | 3,116 | 2,510 |
Ending balance | 6,201 | 7,841 | 6,831 |
Ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | 6,201 | 7,841 | 6,831 |
Loans ending balance [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 527,418 | $ 533,727 | $ 489,667 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 125,396 | $ 124,592 | |
Less accumulated depreciation and amortization | (81,350) | (79,301) | |
Premises and equipment, net | 44,046 | 45,291 | |
Depreciation and amortization of premises and equipment | 3,800 | 3,800 | $ 3,900 |
Land and Buildings [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 80,552 | 79,815 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 4,805 | 4,805 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | 39,964 | 38,576 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment, Net, by Type [Abstract] | |||
Premises and equipment, gross | $ 75 | $ 1,396 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Activity for other real estate owned [Roll Forward] | |||
Beginning balance of other real estate owned | $ 27,273 | $ 31,996 | |
New assets acquired | 3,384 | 5,459 | |
Fair value adjustments | (4,253) | (2,530) | |
Sale of assets | (6,924) | (7,652) | |
Ending balance of other real estate owned | 19,480 | 27,273 | $ 31,996 |
Carrying cost and fair value adjustments for foreclosed properties | $ 5,500 | $ 4,300 | $ 4,500 |
Other Real Estate Owned, Major
Other Real Estate Owned, Major Classifications of Foreclosed Properties (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 19,480 | $ 27,273 |
1-4 Family [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 3,630 | 5,253 |
Construction/Land Development/Other [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 10,211 | 15,017 |
Multifamily [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 88 | 88 |
Non-farm/Non-residential [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 5,551 | $ 6,915 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Noninterest bearing deposits | $ 865,760 | $ 803,316 |
NOW accounts | 51,179 | 56,964 |
Money market deposits | 985,322 | 887,288 |
Savings | 404,151 | 406,749 |
Certificates of deposit and other time deposits of $100,000 or more | 597,628 | 651,967 |
Certificates of deposit and other time deposits less than $100,000 | 501,532 | 499,666 |
Total deposits | 3,405,572 | 3,305,950 |
Certificates of deposit and other time deposits of $250,000 or more | 227,700 | 219,000 |
Wholesale brokered deposits | 37,100 | $ 42,300 |
Maturities of Time Deposits [Abstract] | ||
Total | 1,099,160 | |
Within 1 Year | 856,430 | |
2 Years | 112,524 | |
3 Years | 50,948 | |
4 Years | 36,829 | |
5 Years | 41,824 | |
After 5 Years | 605 | |
Certificates of Deposit and Other Time Deposits of $100,000 or More [Member] | ||
Maturities of Time Deposits [Abstract] | ||
Total | 597,628 | |
Within 1 Year | 448,071 | |
2 Years | 69,580 | |
3 Years | 32,525 | |
4 Years | 20,513 | |
5 Years | 26,738 | |
After 5 Years | 201 | |
Certificates of Deposit and Other Time Deposits Less Than $100,000 [Member] | ||
Maturities of Time Deposits [Abstract] | ||
Total | 501,532 | |
Within 1 Year | 408,359 | |
2 Years | 42,944 | |
3 Years | 18,423 | |
4 Years | 16,316 | |
5 Years | 15,086 | |
After 5 Years | $ 404 |
Borrowings, Short-term Debt (De
Borrowings, Short-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Abstract] | ||
Repurchase agreements | $ 226,917 | $ 232,712 |
Federal funds purchased | 7,906 | 1,180 |
Total short-term debt | $ 234,823 | $ 233,892 |
Federal Funds Purchased [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 1.45% | |
Repurchase Agreements [Member] | ||
Short-term Debt [Abstract] | ||
Average interest rate | 1.82% | |
Maximum balance for repurchase agreements at any month-end | $ 237,500 | |
Average balance of repurchase agreements | $ 228,500 |
Borrowings, Long-term Debt (Det
Borrowings, Long-term Debt (Details) - USD ($) $ in Thousands | Nov. 27, 2019 | Apr. 02, 2007 | Mar. 30, 2007 | Aug. 31, 2019 | May 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Long-term debt [Abstract] | ||||||||
Gain on repurchase of debt instrument | $ 219 | $ 0 | $ 560 | |||||
Junior Subordinated Debentures [Member] | ||||||||
Long-term debt [Abstract] | ||||||||
Issuance of debt | $ 61,300 | |||||||
Long-term debt | $ 57,841 | $ 59,341 | ||||||
Interest rate on junior subordinated debentures | 3.50% | 6.52% | ||||||
Maturity date of junior subordinated debentures | Jun. 1, 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 | 1.91% | |||||||
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)
Repurchase Agreements (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments Pledged as Collateral [Abstract] | ||
Carrying value of investment securities available for sale pledged as collateral under repurchase agreements | $ 264,900 | $ 285,200 |
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 226,917 | 232,712 |
Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 101,674 | 106,286 |
Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 0 |
30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 7,243 | 7,420 |
Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 118,000 | 119,006 |
U.S. Treasury and Government Agencies [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 77,433 | 88,593 |
U.S. Treasury and Government Agencies [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 15,001 | 25,346 |
U.S. Treasury and Government Agencies [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 0 |
U.S. Treasury and Government Agencies [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 3,479 | 2,548 |
U.S. Treasury and Government Agencies [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 58,953 | 60,699 |
State and Political Subdivisions [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 64,126 | 72,243 |
State and Political Subdivisions [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 51,193 | 58,864 |
State and Political Subdivisions [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 0 |
State and Political Subdivisions [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 1,768 | 2,995 |
State and Political Subdivisions [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 11,165 | 10,384 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 85,358 | 71,876 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 35,480 | 22,076 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 0 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 1,996 | 1,877 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | $ 47,882 | $ 47,923 |
Advances from Federal Home Lo_3
Advances from Federal Home Loan Bank (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | $ 415 | $ 436 |
Monthly Amortizing Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Total FHLB advances | 415 | $ 436 |
Within 1 Year | 22 | |
2 Years | 20 | |
3 Years | 21 | |
4 Years | 20 | |
5 Years | 21 | |
After 5 Years | 311 | |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank [Abstract] | ||
Federal home loan bank stock used as collateral for advances | 10,500 | |
FHLB maximum borrowing capacity | 606,700 | |
Federal home loan bank letters of credit used for public fund pledging | 214,400 | |
Federal home loan bank advances available | $ 391,900 | |
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 | 0.06% | |
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 | 0.06% | 0.06% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of the provision for income taxes, exclusive of tax effect of unrealized AFS securities gains and losses [Abstract] | |||
Current income tax expense | $ 8,864 | $ 11,560 | $ 20,108 |
Deferred income tax expense (benefit) | 2,030 | (246) | (259) |
Effect of Tax Cuts & Jobs Act benefit | 0 | 0 | (2,831) |
Effect of Kentucky tax legislation benefit | (3,442) | 0 | 0 |
Total income tax expense | $ 7,452 | $ 11,314 | $ 17,018 |
Corporate income tax rate | 21.00% | 21.00% | 35.00% |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | $ 15,118 | $ 14,814 | $ 23,979 |
Adjustments resulting from [Abstract] | |||
Tax-exempt interest | (563) | (673) | (1,259) |
Housing and new markets credits | (4,471) | (2,635) | (2,579) |
Dividends received deduction | 0 | (9) | (129) |
Bank owned life insurance | (284) | (599) | (492) |
ESOP dividend deduction | (203) | (188) | (319) |
Stock option exercises and restricted stock vesting | (10) | (39) | (170) |
Effect of Tax Cuts & Jobs Act | 0 | 0 | (2,831) |
Effect of KY tax legislation | (2,719) | 0 | 0 |
State income taxes | 405 | 409 | 429 |
Other | 179 | 234 | 389 |
Total income tax expense | $ 7,452 | $ 11,314 | $ 17,018 |
Reconciliation of income tax expense at the statutory rate to actual income tax expense [Abstract] | |||
Computed at the statutory rate | 21.00% | 21.00% | 35.00% |
Adjustments resulting from [Abstract] | |||
Tax-exempt interest | (0.78%) | (0.95%) | (1.84%) |
Housing and new markets credits | (6.21%) | (3.73%) | (3.76%) |
Dividends received deduction | 0.00% | (0.01%) | (0.19%) |
Bank owned life insurance | (0.39%) | (0.85%) | (0.72%) |
ESOP dividend deduction | (0.28%) | (0.27%) | (0.47%) |
Stock option exercises and restricted stock vesting | (0.01%) | (0.06%) | (0.25%) |
Effect of Tax Cuts & Jobs Act | 0 | 0 | (0.0413) |
Effect of KY tax legislation | (3.78%) | 0.00% | 0.00% |
State income taxes | 0.56% | 0.58% | 0.63% |
Other | 0.24% | 0.33% | 0.57% |
Total | 10.35% | 16.04% | 24.84% |
Deferred tax assets [Abstract] | |||
Allowance for loan and lease losses | $ 8,757 | $ 7,541 | |
Interest on nonperforming loans | 485 | 531 | |
Accrued expenses | 1,100 | 1,093 | |
Allowance for other real estate owned | 1,437 | 1,435 | |
Unrealized losses on AFS securities | 0 | 1,757 | |
State net operating loss carryforward | 3,786 | 3,957 | |
Lease liabilities | 3,859 | 0 | |
Other | 294 | 164 | |
Total deferred tax assets | 19,718 | 16,478 | |
Deferred tax liabilities [Abstract] | |||
Depreciation and amortization | (15,048) | (12,210) | |
FHLB stock dividends | (1,441) | (1,704) | |
Loan fee income | (656) | (419) | |
Mortgage servicing rights | (814) | (757) | |
Right of use assets | (3,698) | 0 | |
Unrealized gains on AFS securities | (1,534) | 0 | |
Limited partnership investments | (326) | (257) | |
Other | (1,101) | (537) | |
Total deferred tax liabilities | (24,618) | (15,884) | |
Beginning balance for valuation allowance for deferred tax asset | 3,957 | 3,930 | |
Change in valuation allowance | (3,747) | 27 | |
Ending balance for valuation allowance for deferred tax asset | 210 | 3,957 | $ 3,930 |
Net deferred tax liability | (5,110) | $ (3,363) | |
Loss carryforwards | $ 96,000 |
Employee Benefits (Details)
Employee Benefits (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Planhshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Employee Benefits [Abstract] | |||
Number of retirement savings plan | Plan | 2 | ||
401(k) Plan [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Minimum age of employees to participate in plan | 21 years | ||
Minimum requisite service period to participate in retirement plans | 1 year | ||
Minimum annual working hours required to participate in plan | h | 1,000 | ||
Percentage of employee contribution, minimum | 1.00% | ||
Percentage of employee contribution, maximum | 20.00% | ||
Employer matching contribution | 50.00% | ||
Maximum contribution on employees gross pay | 8.00% | ||
Contribution by employer under 401(K) plan | $ | $ 1.1 | $ 1.1 | $ 1 |
Number of allocated shares under 401 (K) plan (in shares) | shares | 424,591 | 416,360 | 406,021 |
Employee Stock Ownership Plan ("ESOP") [Member] | |||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Maximum annual contribution percentage under ESOP | 4.00% | ||
Contributions to ESOP by employer | $ | $ 1.7 | $ 1.6 | $ 1.6 |
Number of allocated shares under ESOP (in shares) | shares | 738,212 | 726,327 | 737,079 |
Employee Benefits, Stock-Based
Employee Benefits, Stock-Based Compensation (Details) | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2016shares | Dec. 31, 2019USD ($)Plan$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of active incentive stock option plan | Plan | 1 | |||||||
Number of inactive incentive stock option plan | Plan | 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) | 481,000 | |||||||
Unrecognized compensation cost, grant date fair value of vested shares, cash received from option exercises, and actual tax benefit realized [Abstract] | ||||||||
Unrecognized compensation cost of unvested share-based compensation arrangements granted under the plan at year-end | $ | $ 1,410,000 | $ 1,072,000 | $ 1,242,000 | |||||
Grant date fair value of shares vested for the year | $ | 605,000 | 645,000 | 564,000 | |||||
Cash received from option exercises under all share-based payment arrangements for the year | $ | 401,000 | 399,000 | 693,000 | |||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for the year | $ | $ 27,000 | $ 49,000 | $ 138,000 | |||||
Expected period for recognition of unrecognized compensation cost | 1 year 10 months 24 days | |||||||
Stock Options [Member] | ||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||
Number of shares to be issued upon exercise (in shares) | 20,000 | |||||||
Weighted average price (in dollars per share) | $ / shares | $ 32.04 | |||||||
Grants (in shares) | 0 | 0 | 0 | |||||
Shares available for future issuance (in shares) | [1] | 481,000 | ||||||
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized (in shares) | 550,000 | |||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||
Number of shares to be issued upon exercise (in shares) | [2] | |||||||
Weighted average price (in dollars per share) | $ / shares | [3] | |||||||
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] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
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] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
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] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized (in shares) | 550,000 | |||||||
Number of shares issued to date (in shares) | 72,909 | |||||||
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) | 508,729 | |||||||
Forfeitures (in shares) | 588 | |||||||
Shares available for future issuance (in shares) | 481,396 | 508,729 | ||||||
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 | |||||
Number of shares with accelerated vesting (in shares) | 10,000 | |||||||
Options, number of shares [Roll Forward] | ||||||||
Outstanding at beginning of year (in shares) | 0 | [6] | 10,000 | [6] | 10,000 | |||
Granted (in shares) | 0 | 0 | [6] | 0 | ||||
Exercised (in shares) | 0 | (10,000) | [6] | 0 | ||||
Forfeited/expired (in shares) | 0 | 0 | [6] | 0 | ||||
Outstanding at end of year (in shares) | 0 | 0 | [6] | 10,000 | [6] | |||
Exercisable at end of year (in shares) | 0 | 0 | [6] | 0 | ||||
Options, weighted average exercise price [Abstract] | ||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 0 | [6] | $ 33.55 | [6] | $ 33.55 | |||
Granted (in dollars per share) | $ / shares | 0 | 0 | [6] | 0 | ||||
Exercised (in dollars per share) | $ / shares | 0 | 33.55 | [6] | 0 | ||||
Forfeited/expired (in dollars per share) | $ / shares | 0 | 0 | [6] | 0 | ||||
Outstanding, end of period (in dollars per share) | $ / shares | 0 | 0 | [6] | 33.55 | [6] | |||
Exercisable, end of period (in dollars per share) | $ / shares | $ 0 | $ 0 | [6] | $ 0 | ||||
Nonvested options, number of shares [Roll Forward] | ||||||||
Granted (in shares) | 0 | 0 | [6] | 0 | ||||
Options, additional disclosures [Abstract] | ||||||||
Intrinsic value of options exercised | $ | $ 0 | $ 140,000 | $ 0 | |||||
Intrinsic value of options exercisable | $ | 0 | 0 | 0 | |||||
Intrinsic value of outstanding options | $ | $ 0 | $ 0 | $ 136,000 | |||||
2015 Plan [Member] | Restricted Stock [Member] | ||||||||
Number of shares to be issued upon exercise of outstanding stock-based awards and remaining shares available for future issuance [Abstract] | ||||||||
Shares issued (in shares) | 18,069 | |||||||
Grants (in shares) | (27,921) | |||||||
Restricted stock activity, grants [Roll Forward] | ||||||||
Outstanding at beginning of year (in shares) | 34,255 | 33,085 | 17,496 | |||||
Granted (in shares) | 27,921 | 11,320 | 23,668 | |||||
Vested (in shares) | (10,596) | (8,761) | (5,751) | |||||
Forfeited (in shares) | (588) | (1,389) | (2,328) | |||||
Outstanding at end of year (in shares) | 50,992 | 34,255 | 33,085 | |||||
Restricted stock activity, weighted average fair value at grant [Roll Forward] | ||||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 44.46 | $ 41.84 | $ 33.55 | |||||
Granted (in dollars per share) | $ / shares | 41.12 | 49.30 | 46.45 | |||||
Vested (in dollars per share) | $ / shares | 42.39 | 40.46 | 35.79 | |||||
Forfeited (in dollars per share) | $ / shares | 43.04 | 46.77 | 41.31 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 43.08 | $ 44.46 | $ 41.84 | |||||
2006 Plan [Member] | Stock Options [Member] | ||||||||
Options, number of shares [Roll Forward] | ||||||||
Outstanding at beginning of year (in shares) | 32,571 | 35,376 | 61,041 | |||||
Granted (in shares) | 0 | 0 | 0 | |||||
Exercised (in shares) | (12,076) | (2,475) | (25,665) | |||||
Forfeited/expired (in shares) | 0 | (330) | 0 | |||||
Outstanding at end of year (in shares) | 20,495 | 32,571 | 35,376 | |||||
Exercisable at end of year (in shares) | 495 | 2,571 | 5,376 | |||||
Options, weighted average exercise price [Abstract] | ||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 32.47 | $ 31.90 | $ 29.84 | |||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||
Exercised (in dollars per share) | $ / shares | 33.19 | 25.52 | 27.01 | |||||
Forfeited/expired (in dollars per share) | $ / shares | 0 | 23.79 | 0 | |||||
Outstanding, end of period (in dollars per share) | $ / shares | 32.04 | 32.47 | 31.90 | |||||
Exercisable, end of period (in dollars per share) | $ / shares | $ 22.81 | $ 25.11 | $ 25.22 | |||||
Nonvested options, number of shares [Roll Forward] | ||||||||
Nonvested, beginning of period (in shares) | 30,000 | |||||||
Granted (in shares) | 0 | 0 | 0 | |||||
Vested (in shares) | 10,000 | |||||||
Forfeited (in shares) | 0 | |||||||
Nonvested, end of period (in shares) | 20,000 | 30,000 | ||||||
Nonvested options, weighted average grant date fair value [Abstract] | ||||||||
Nonvested, beginning of period (in dollars per share) | $ / shares | $ 6.98 | |||||||
Granted (in dollars per share) | $ / shares | 0 | |||||||
Vested (in dollars per share) | $ / shares | 7.76 | |||||||
Forfeited (in dollars per share) | $ / shares | 0 | |||||||
Nonvested, end of period (in dollars per share) | $ / shares | $ 6.59 | $ 6.98 | ||||||
Options, additional disclosures [Abstract] | ||||||||
Weighted average remaining contractual term | 5 years | |||||||
Intrinsic value of options exercised | $ | $ 135,000 | $ 56,000 | $ 537,000 | |||||
Intrinsic value of options exercisable | $ | 12,000 | 37,000 | 118,000 | |||||
Intrinsic value of outstanding options | $ | $ 299,000 | $ 233,000 | $ 538,000 | |||||
2006 Plan [Member] | Restricted Stock [Member] | ||||||||
Restricted stock activity, grants [Roll Forward] | ||||||||
Outstanding at beginning of year (in shares) | 2,064 | 5,426 | 11,989 | |||||
Granted (in shares) | 0 | 0 | 0 | |||||
Vested (in shares) | (2,064) | (3,236) | (6,214) | |||||
Forfeited (in shares) | 0 | (126) | (349) | |||||
Outstanding at end of year (in shares) | 0 | 2,064 | 5,426 | |||||
Restricted stock activity, weighted average fair value at grant [Roll Forward] | ||||||||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 32.27 | $ 33.24 | $ 32.85 | |||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||
Vested (in dollars per share) | $ / shares | 32.27 | 33.90 | 32.48 | |||||
Forfeited (in dollars per share) | $ / shares | 0 | 32.27 | 33.31 | |||||
Outstanding at end of year (in dollars per share) | $ / shares | $ 0 | $ 32.27 | $ 33.24 | |||||
[1] | Under the 2015 Plan, 550,000 shares are authorized for issuance; 72,909 have been issued as of December 31, 2019 In January of 2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. Additional shares will not be issued pursuant to awards granted from prior plans. | |||||||
[2] | The maximum number of shares of restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a participant during any calendar year is 75,000 shares. | |||||||
[3] | Not applicable | |||||||
[4] | No performance units payable in stock had been issued as of December 31, 2019. The maximum payment that can be made pursuant to performance units granted to any one participant in any calendar year is $1,000,000. | |||||||
[5] | No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any calendar year is 100,000 shares. | |||||||
[6] | Pursuant to the 2015 Plan provisions, the death of the option holder accelerated the vesting of 10,000 shares in 2018. |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Lease | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Leases [Abstract] | |||
Lease liability | $ 13,729 | $ 0 | |
Right-of-use asset | $ 14,550 | 0 | |
Finance Leases [Abstract] | |||
Number of finance leases | Lease | 1 | ||
Finance lease cost [Abstract] | |||
Amortization of right-of-use assets - finance leases | $ 52 | ||
Interest on lease liabilities - finance leases | 54 | ||
Total finance lease cost | 106 | ||
Short-term lease cost | 306 | ||
Operating lease cost | 1,773 | ||
Sublease income | 257 | ||
Total lease cost | 1,928 | ||
Supplemental Cash Flow Information Related to CTBI's Operating and Finance Lease [Abstract] | |||
Finance lease - operating cash flows | 54 | ||
Finance lease - financing cash flows | 14 | 0 | $ 0 |
Operating lease - operating cash flows (fixed payments) | 1,665 | ||
New right-of-use assets - operating leases | 9 | ||
New right-of-use assets - financing leases | $ 0 | ||
Weighted average lease term - financing leases | 26 years 7 days | ||
Weighted average lease term - operating leases | 13 years 10 months 2 days | ||
Weighted average discount rate - financing leases | 3.70% | ||
Weighted average discount rate - operating leases | 3.45% | ||
Maturities of Operating Lease Liabilities [Abstract] | |||
2019 | $ 1,677 | ||
2020 | 1,710 | ||
2021 | 1,703 | ||
2022 | 1,626 | ||
2023 | 1,313 | ||
Thereafter | 9,654 | ||
Total lease payments | 17,683 | ||
Less imputed interest | (3,954) | ||
Total | 13,729 | 0 | |
Maturities of Finance Lease Liabilities [Abstract] | |||
2019 | 68 | ||
2020 | 75 | ||
2021 | 75 | ||
2022 | 75 | ||
2023 | 75 | ||
Thereafter | 1,985 | ||
Total lease payments | 2,353 | ||
Less imputed interest | (897) | ||
Total | 1,456 | $ 0 | |
Minimum Non-cancellable Rental Payments [Abstract] | |||
2019 | 1,999 | ||
2020 | 1,710 | ||
2021 | 1,737 | ||
2022 | 1,760 | ||
2023 | 1,696 | ||
Thereafter | 13,031 | ||
Total | $ 21,933 | ||
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 | ||
ASU 2016-02 [Member] | |||
Operating Leases [Abstract] | |||
Lease liability | $ 16,100 | ||
Right-of-use asset | 15,500 | ||
Cumulative-effect adjustment to retained earnings | 500 | ||
Adjustment to deferred tax liability | 100 | ||
Maturities of Operating Lease Liabilities [Abstract] | |||
Total | $ 16,100 |
Fair Market Value of Financia_3
Fair Market Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 599,844 | $ 593,746 |
Equity securities at fair value | 1,953 | 1,173 |
Liabilities Measured at Fair Value on Recurring Basis [Abstract] | ||
Liabilities | 0 | 0 |
Transfers between Levels [Abstract] | ||
Transfers from Level 1 to Level 2 | 0 | |
Transfers from Level 2 to Level 1 | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 3,217 | 747 |
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Total gains (losses) | $ (195) | 830 |
Minimum [Member] | ||
Other real estate owned [Abstract] | ||
Typical frequency of periodic reviews | 12 months | |
Maximum [Member] | ||
Other real estate owned [Abstract] | ||
Typical frequency of periodic reviews | 18 months | |
Frequency of periodic reviews in general | 24 months | |
U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | $ 171,150 | 217,938 |
State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 102,307 | 124,488 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 295,245 | 250,819 |
Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 31,142 | 501 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 54,263 | 91,028 |
Equity securities at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 545,581 | 502,718 |
Equity securities at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Equity securities at fair value | 1,953 | 1,173 |
Recurring [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 1,953 | 1,173 |
Mortgage servicing rights | 3,263 | 3,607 |
Recurring [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 171,150 | 217,938 |
Recurring [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 102,307 | 124,488 |
Recurring [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 295,245 | 250,819 |
Recurring [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 31,142 | 501 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 54,263 | 91,028 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
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 at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets Measured at Fair Value on 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 at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 116,887 | 126,910 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 102,307 | 124,488 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 295,245 | 250,819 |
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 31,142 | 501 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Equity securities at fair value | 1,953 | 1,173 |
Mortgage servicing rights | 3,263 | 3,607 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury and Government Agencies [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Political Subdivisions [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
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 at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Debt Securities [Member] | ||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Recurring [Member] | Equity Securities at Fair Value [Member] | ||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Beginning balance | 1,173 | 0 |
Total unrealized gains (losses) included in net income | 780 | 1,173 |
Issues | 0 | 0 |
Settlements | 0 | 0 |
Ending balance | 1,953 | 1,173 |
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 | 780 | 1,173 |
Recurring [Member] | Mortgage Servicing Rights [Member] | ||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||
Beginning balance | 3,607 | 3,484 |
Total unrealized gains (losses) included in net income | (515) | 73 |
Issues | 631 | 466 |
Settlements | (460) | (416) |
Ending balance | 3,263 | 3,607 |
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 | (515) | 73 |
Nonrecurring [Member] | ||
Impaired loan (collateral dependent) [Abstract] | ||
Impaired loans, fair value adjustments | 700 | 300 |
Other real estate owned [Abstract] | ||
Other real estate owned, fair value adjustment | 3,200 | 1,800 |
Nonrecurring [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 3,217 | 747 |
Other real estate owned | 12,593 | 6,500 |
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Assets measured-nonrecurring basis [Abstract] | ||
Impaired loans (collateral dependent) | 3,217 | 747 |
Other real estate owned | $ 12,593 | $ 6,500 |
Fair Market Value of Financia_4
Fair Market Value of Financial Assets and Liabilities, Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value | $ 1,953 | $ 1,173 |
Mortgage servicing rights | 3,263 | 3,607 |
Impaired loans (collateral dependent) | 3,217 | 747 |
Other real estate owned | $ 12,593 | $ 6,500 |
Conversion Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 1.6228 | |
Dividend Rate [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.4868 | |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.080 | 0.080 |
Mortgage servicing rights, measurement input | 0.100 | 0.100 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.120 | 0.120 |
Mortgage servicing rights, measurement input | 0.115 | 0.115 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input | 0.100 | 0.100 |
Mortgage servicing rights, measurement input | 0.101 | 0.101 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input, conversion date | Dec. 31, 2024 | Dec. 31, 2024 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input, conversion date | Dec. 31, 2022 | Dec. 31, 2022 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Conversion Date [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Equity securities at fair value, measurement input, conversion date | Dec. 31, 2026 | 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 | 0.070 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.243 | 0.281 |
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 | 0.117 | 0.095 |
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 | 1 |
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 | 0.027 | 0.026 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.070 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.990 | 0.951 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.460 | 0.415 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.060 | 0.060 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.298 | 0.476 |
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 | 0.113 | 0.149 |
Fair Market Value of Financia_5
Fair Market Value of Financial Assets and Liabilities, Estimated Fair Value of Financial Instruments and Indication of Level Within Fair Value Hierarchy of Valuation Techniques (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets [Abstract] | ||||
Securities available-for-sale | $ 599,844 | $ 593,746 | ||
Securities held-to-maturity | 517 | 649 | ||
Equity securities at fair value | 1,953 | 1,173 | ||
Mortgage servicing rights | 3,263 | 3,607 | $ 3,484 | $ 3,433 |
Carrying Amount [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 264,683 | 141,450 | ||
Certificates of deposits in other banks | 245 | 3,920 | ||
Securities available-for-sale | 599,844 | 593,746 | ||
Securities held-to-maturity | 517 | 649 | ||
Equity securities at fair value | 1,953 | 1,173 | ||
Loans held for sale | 1,167 | 2,461 | ||
Loans, net | 3,213,568 | 3,172,730 | ||
Federal Home Loan Bank stock | 10,474 | 14,713 | ||
Federal Reserve Bank stock | 4,887 | 4,887 | ||
Accrued interest receivable | 14,836 | 14,432 | ||
Mortgage servicing rights | 3,263 | 3,607 | ||
Financial liabilities [Abstract] | ||||
Deposits | 3,405,572 | 3,305,950 | ||
Repurchase agreements | 226,917 | 232,712 | ||
Federal funds purchased | 7,906 | 1,180 | ||
Advances from Federal Home Loan Bank | 415 | 436 | ||
Long-term debt | 57,841 | 59,341 | ||
Accrued interest payable | 2,839 | 2,902 | ||
Unrecognized financial instruments [Abstract] | ||||
Letters of credit | 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 | 264,683 | 141,450 | ||
Certificates of deposits in other banks | 0 | 0 | ||
Securities available-for-sale | 54,263 | 91,028 | ||
Securities held-to-maturity | 0 | 0 | ||
Equity securities at fair value | 0 | 0 | ||
Loans held for sale | 1,191 | 2,518 | ||
Loans, net | 0 | 0 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Federal Reserve Bank stock | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Financial liabilities [Abstract] | ||||
Deposits | 865,760 | 803,316 | ||
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 | |||
Commitments to extend credit | 0 | 0 | ||
Forward sale commitments | 0 | 0 | ||
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposits in other banks | 245 | 3,914 | ||
Securities available-for-sale | 545,581 | 502,718 | ||
Securities held-to-maturity | 517 | 649 | ||
Equity securities at fair value | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, net | 0 | 0 | ||
Federal Home Loan Bank stock | 10,474 | 14,713 | ||
Federal Reserve Bank stock | 4,887 | 4,887 | ||
Accrued interest receivable | 14,836 | 14,432 | ||
Mortgage servicing rights | 0 | 0 | ||
Financial liabilities [Abstract] | ||||
Deposits | 2,560,271 | 2,513,084 | ||
Repurchase agreements | 0 | 0 | ||
Federal funds purchased | 7,906 | 1,180 | ||
Advances from Federal Home Loan Bank | 446 | 468 | ||
Long-term debt | 0 | 0 | ||
Accrued interest payable | 2,839 | 2,902 | ||
Unrecognized financial instruments [Abstract] | ||||
Letters of credit | 0 | |||
Commitments to extend credit | 0 | 0 | ||
Forward sale commitments | 0 | 0 | ||
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Financial assets [Abstract] | ||||
Cash and cash equivalents | 0 | 0 | ||
Certificates of deposits in other banks | 0 | 0 | ||
Securities available-for-sale | 0 | 0 | ||
Securities held-to-maturity | 0 | 0 | ||
Equity securities at fair value | 1,953 | 1,173 | ||
Loans held for sale | 0 | 0 | ||
Loans, net | 3,283,876 | 3,175,908 | ||
Federal Home Loan Bank stock | 0 | 0 | ||
Federal Reserve Bank stock | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Mortgage servicing rights | 3,263 | 3,607 | ||
Financial liabilities [Abstract] | ||||
Deposits | 0 | 0 | ||
Repurchase agreements | 226,921 | 232,796 | ||
Federal funds purchased | 0 | 0 | ||
Advances from Federal Home Loan Bank | 0 | 0 | ||
Long-term debt | 49,382 | 44,166 | ||
Accrued interest payable | 0 | 0 | ||
Unrecognized financial instruments [Abstract] | ||||
Letters of credit | 0 | |||
Commitments to extend credit | 0 | 0 | ||
Forward sale commitments | $ 0 | $ 0 |
Off-Balance Sheet Transaction_3
Off-Balance Sheet Transactions and Guarantees (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | $ 594,908 | $ 539,923 |
Mortgage loans held for sale | 1,167 | 2,461 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 30,679 | 29,410 |
Credit loss reserve | $ 8 | |
Percentage of secured standby letters of credit | 67.00% | |
Standby letters of credit secured by cash | $ 15,000 | |
Commitments to Extend Credit [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Total off-balance sheet financial instruments | 564,229 | 510,513 |
Credit loss reserve | 266 | |
Fixed rate loan commitments amount | $ 42,200 | |
Period of commitment to sell the loans at specified prices | 60 days | |
Total mortgage loans in process | $ 3,800 | 2,800 |
Mortgage loans held for sale | $ 1,200 | $ 2,500 |
Commitments to Extend Credit [Member] | Minimum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 3.75% | |
Commitments to Extend Credit [Member] | Maximum [Member] | ||
Fair Value, Off-balance Sheet Risks Transactions and Guarantees [Abstract] | ||
Interest rate on loan commitments | 5.50% | |
Fixed rate loan commitments term | 3 years |
Concentrations of Credit Risk (
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, 2019 | Dec. 31, 2018 | |
Hotel/Motel Industry Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 43.00% | 41.00% |
Lessors of Non-residential Buildings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 38.00% | 39.00% |
Lessors of Residential Buildings and Dwellings Credits [Member] | ||
Concentration Risk [Abstract] | ||
Concentration of credit risk | 41.00% | 39.00% |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Tier I capital (to average assets), Amount [Abstract] | ||
Actual Amount | $ 601,142 | $ 562,771 |
For Capital Adequacy Purposes | $ 171,632 | $ 166,623 |
Tier I capital (to average assets), Ratio [Abstract] | ||
Actual Ratio | 14.01% | 13.51% |
For Capital Adequacy Purposes | 4.00% | 4.00% |
Common equity Tier 1 capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 545,142 | $ 505,271 |
For Capital Adequacy Purposes | $ 142,790 | $ 139,749 |
Common equity Tier 1 capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 17.18% | 16.27% |
For Capital Adequacy Purposes | 4.50% | 4.50% |
Tier I capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 601,142 | $ 562,771 |
For Capital Adequacy Purposes | $ 190,436 | $ 186,348 |
Tier I capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 18.94% | 18.12% |
For Capital Adequacy Purposes | 6.00% | 6.00% |
Total capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 636,512 | $ 598,934 |
For Capital Adequacy Purposes | $ 253,970 | $ 248,391 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual Ratio | 20.05% | 19.29% |
For Capital Adequacy Purposes | 8.00% | 8.00% |
Community Trust Bank, Inc [Member] | ||
Regulatory Matter [Abstract] | ||
Maximum dividend without Approval | $ 68,800 | |
Tier I capital (to average assets), Amount [Abstract] | ||
Actual Amount | 570,256 | $ 536,992 |
For Capital Adequacy Purposes | 170,991 | 165,994 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 213,739 | $ 207,493 |
Tier I capital (to average assets), Ratio [Abstract] | ||
Actual Ratio | 13.34% | 12.94% |
For Capital Adequacy Purposes | 4.00% | 4.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 5.00% | 5.00% |
Common equity Tier 1 capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 570,256 | $ 536,992 |
For Capital Adequacy Purposes | 142,485 | 139,438 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 205,811 | $ 201,411 |
Common equity Tier 1 capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 18.01% | 17.33% |
For Capital Adequacy Purposes | 4.50% | 4.50% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 6.50% | 6.50% |
Tier I capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 570,256 | $ 536,992 |
For Capital Adequacy Purposes | 189,980 | 185,918 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 253,306 | $ 247,890 |
Tier I capital (to risk weighted assets), Ratio [Abstract] | ||
Actual Ratio | 18.01% | 17.33% |
For Capital Adequacy Purposes | 6.00% | 6.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 8.00% | 8.00% |
Total capital (to risk weighted assets), Amount [Abstract] | ||
Actual Amount | $ 605,625 | $ 573,155 |
For Capital Adequacy Purposes | 253,400 | 247,851 |
To Be Well-Capitalized Under Prompt Corrective Action Provision | $ 316,749 | $ 309,814 |
Total capital (to risk-weighted assets), Ratio [Abstract] | ||
Actual Ratio | 19.12% | 18.50% |
For Capital Adequacy Purposes | 8.00% | 8.00% |
To Be Well-Capitalized Under Prompt Corrective Action Provision | 10.00% | 10.00% |
Parent Company Financial Stat_3
Parent Company Financial Statements, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||||
Cash on deposit | $ 58,680 | $ 64,632 | ||
Goodwill | 65,490 | 65,490 | ||
Premises and equipment, net | 44,046 | 45,291 | ||
Other assets | 37,731 | 42,718 | ||
Total assets | 4,366,003 | 4,201,616 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Long-term debt | 57,841 | 59,341 | ||
Other liabilities | 29,332 | 31,582 | ||
Total liabilities | 3,751,117 | 3,637,466 | ||
Shareholders' equity | 614,886 | 564,150 | $ 530,699 | $ 500,615 |
Total liabilities and shareholders' equity | 4,366,003 | 4,201,616 | ||
Parent Company [Member] | ||||
Assets [Abstract] | ||||
Cash on deposit | 2,089 | 1,939 | ||
Investment in and advances to subsidiaries | 667,206 | 620,701 | ||
Goodwill | 4,973 | 4,973 | ||
Premises and equipment, net | 153 | 219 | ||
Deferred taxes | 5,100 | 193 | ||
Other assets | 44 | 45 | ||
Total assets | 679,565 | 628,070 | ||
Liabilities and shareholders' equity [Abstract] | ||||
Long-term debt | 61,341 | 61,341 | ||
Other liabilities | 3,338 | 2,579 | ||
Total liabilities | 64,679 | 63,920 | ||
Shareholders' equity | 614,886 | 564,150 | ||
Total liabilities and shareholders' equity | $ 679,565 | $ 628,070 |
Parent Company Financial Stat_4
Parent Company Financial Statements, Condensed Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Expenses [Abstract] | |||
Interest expense | $ 40,513 | $ 29,295 | $ 18,294 |
Other expenses | 12,539 | 15,558 | 11,901 |
Income before income taxes and equity in undistributed income of subsidiaries | 71,992 | 70,542 | 68,511 |
Income tax benefit | 7,452 | 11,314 | 17,018 |
Net income | 64,540 | 59,228 | 51,493 |
Unrealized holding gains (losses) on securities available-for-sale [Abstract] | |||
Unrealized holding gains (losses) arising during the period | 14,270 | (5,393) | (820) |
Less: Reclassification adjustments for realized gains (losses) included in net income | 3 | (821) | 73 |
Other comprehensive income (loss), net of tax | 10,864 | (3,612) | (581) |
Comprehensive income | 75,404 | 55,616 | 50,912 |
Parent Company [Member] | |||
Income [Abstract] | |||
Dividends from subsidiary banks | 30,152 | 26,750 | 24,661 |
Other income | 757 | 489 | 904 |
Total income | 30,909 | 27,239 | 25,565 |
Expenses [Abstract] | |||
Interest expense | 2,520 | 2,318 | 1,723 |
Depreciation expense | 144 | 135 | 116 |
Other expenses | 3,273 | 3,156 | 2,858 |
Total expenses | 5,937 | 5,609 | 4,697 |
Income before income taxes and equity in undistributed income of subsidiaries | 24,972 | 21,630 | 20,868 |
Income tax benefit | (4,947) | (1,219) | (1,445) |
Income before equity in undistributed income of subsidiaries | 29,919 | 22,849 | 22,313 |
Equity in undistributed income of subsidiaries | 34,621 | 36,379 | 29,180 |
Net income | 64,540 | 59,228 | 51,493 |
Unrealized holding gains (losses) on securities available-for-sale [Abstract] | |||
Unrealized holding gains (losses) arising during the period | 14,270 | (5,393) | (820) |
Less: Reclassification adjustments for realized gains (losses) included in net income | 3 | (821) | 73 |
Tax expense (benefit) | 3,403 | (960) | (312) |
Other comprehensive income (loss), net of tax | 10,864 | (3,612) | (581) |
Comprehensive income | $ 75,404 | $ 55,616 | $ 50,912 |
Parent Company Financial Stat_5
Parent Company Financial Statements, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities [Abstract] | |||
Net income | $ 64,540 | $ 59,228 | $ 51,493 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 5,515 | 3,786 | 4,007 |
Deferred taxes | (1,412) | (246) | (3,090) |
Stock-based compensation | 859 | 710 | 636 |
Gain on debt repurchase | (219) | 0 | (560) |
Changes in [Abstract] | |||
Other assets | 4,941 | (14,694) | (2,996) |
Other liabilities | (2,440) | 9,660 | 2,659 |
Net cash provided by operating activities | 83,458 | 65,487 | 62,351 |
Cash flows from investing activities [Abstract] | |||
Purchase of premises and equipment | (2,570) | (2,832) | (2,400) |
Net cash used in investing activities | (34,491) | (100,590) | (186,586) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,264 | 1,230 | 1,513 |
Dividends paid | (26,235) | (24,395) | (22,981) |
Net cash provided by financing activities | 74,266 | 1,279 | 154,793 |
Cash and cash equivalents at beginning of year | 141,450 | ||
Cash and cash equivalents at end of year | 264,683 | 141,450 | |
Parent Company [Member] | |||
Cash flows from operating activities [Abstract] | |||
Net income | 64,540 | 59,228 | 51,493 |
Adjustments to reconcile net income to net cash provided by operating activities [Abstract] | |||
Depreciation | 144 | 135 | 116 |
Equity in undistributed earnings of subsidiaries | (34,621) | (36,379) | (29,180) |
Deferred taxes | (4,907) | (12) | 192 |
Stock-based compensation | 859 | 710 | 636 |
Gain on debt repurchase | (219) | 0 | (560) |
Changes in [Abstract] | |||
Other assets | 1 | (50) | (47) |
Other liabilities | 683 | 53 | 412 |
Net cash provided by operating activities | 26,480 | 23,685 | 23,062 |
Cash flows from investing activities [Abstract] | |||
Payment for investment in subsidiary | (1,281) | 0 | (1,440) |
Purchase of premises and equipment | (78) | (81) | (179) |
Net cash used in investing activities | (1,359) | (81) | (1,619) |
Cash flows from financing activities [Abstract] | |||
Issuance of common stock | 1,264 | 1,230 | 1,513 |
Dividends paid | (26,235) | (24,395) | (22,981) |
Net cash provided by financing activities | (24,971) | (23,165) | (21,468) |
Net increase (decrease) in cash and cash equivalents | 150 | 439 | (25) |
Cash and cash equivalents at beginning of year | 1,939 | 1,500 | 1,525 |
Cash and cash equivalents at end of year | $ 2,089 | $ 1,939 | $ 1,500 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator [Abstract] | |||
Net income | $ 64,540 | $ 59,228 | $ 51,493 |
Basic earnings per share [Abstract] | |||
Weighted average shares (in shares) | 17,724,000 | 17,687,000 | 17,631,000 |
Diluted earnings per share [Abstract] | |||
Dilutive effect of equity grants (in shares) | 16,000 | 16,000 | 22,000 |
Adjusted weighted average shares (in shares) | 17,740,000 | 17,703,000 | 17,653,000 |
Earnings per share [Abstract] | |||
Basic earnings per share (in dollars per share) | $ 3.64 | $ 3.35 | $ 2.92 |
Diluted earnings per share (in dollars per share) | $ 3.64 | $ 3.35 | $ 2.92 |
Options [Member] | |||
Earnings Per Share [Abstract] | |||
Options excluded from diluted calculations (in shares) | 0 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | $ 783 | $ (85) | $ 73 |
Tax expense (benefit) | 7,452 | 11,314 | 17,018 |
Net income | 64,540 | 59,228 | 51,493 |
Unrealized Gains (Losses) on AFS Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | |||
Amounts Reclassified from AOCI [Abstract] | |||
Securities gains (losses) | 3 | (821) | 73 |
Tax expense (benefit) | 1 | (172) | 26 |
Net income | $ 2 | $ (649) | $ 47 |