[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended June 30, 2013
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|
Or
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from _____________ to _____________
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Kentucky
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61-0979818
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(State or other jurisdiction of incorporation or organization)
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IRS Employer Identification No.
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346 North Mayo Trail
Pikeville, Kentucky
(address of principal executive offices)
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41501
(Zip Code)
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Yes ü
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No
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Yes ü
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No
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Large accelerated filer
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Accelerated filer ü
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
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Yes
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No ü
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(dollars in thousands)
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(unaudited)
June 30
2013
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December 31
2012
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 56,100 | $ | 73,451 | ||||
Interest bearing deposits
|
50,437 | 127,438 | ||||||
Federal funds sold
|
1,222 | 6,671 | ||||||
Cash and cash equivalents
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107,759 | 207,560 | ||||||
Certificates of deposit in other banks
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9,568 | 5,336 | ||||||
Securities available-for-sale at fair value (amortized cost of $691,793 and $583,858, respectively)
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687,362 | 603,343 | ||||||
Securities held-to-maturity at amortized cost (fair value of $1,621 and $1,659, respectively)
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1,662 | 1,662 | ||||||
Loans held for sale
|
2,991 | 22,486 | ||||||
Loans
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2,584,801 | 2,550,573 | ||||||
Allowance for loan losses
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(33,601 | ) | (33,245 | ) | ||||
Net loans
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2,551,200 | 2,517,328 | ||||||
Premises and equipment, net
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52,703 | 54,321 | ||||||
Federal Home Loan Bank stock
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25,673 | 25,673 | ||||||
Federal Reserve Bank stock
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4,886 | 4,885 | ||||||
Goodwill
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65,490 | 65,490 | ||||||
Core deposit intangible (net of accumulated amortization of $7,819 and $7,712, respectively)
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797 | 904 | ||||||
Bank owned life insurance
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52,903 | 44,893 | ||||||
Mortgage servicing rights
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3,222 | 2,364 | ||||||
Other real estate owned
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43,632 | 47,537 | ||||||
Other assets
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28,403 | 31,882 | ||||||
Total assets
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$ | 3,638,251 | $ | 3,635,664 | ||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits:
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||||||||
Noninterest bearing
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$ | 624,451 | $ | 606,448 | ||||
Interest bearing
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2,297,722 | 2,297,400 | ||||||
Total deposits
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2,922,173 | 2,903,848 | ||||||
Repurchase agreements
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204,735 | 210,120 | ||||||
Federal funds purchased and other short-term borrowings
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14,075 | 12,314 | ||||||
Advances from Federal Home Loan Bank
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1,347 | 1,429 | ||||||
Long-term debt
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61,341 | 61,341 | ||||||
Other liabilities
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34,236 | 46,268 | ||||||
Total liabilities
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3,237,907 | 3,235,320 | ||||||
Shareholders’ equity:
|
||||||||
Preferred stock, 300,000 shares authorized and unissued
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- | - | ||||||
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2013 – 15,665,211; 2012 – 15,612,935
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78,326 | 78,065 | ||||||
Capital surplus
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161,996 | 160,670 | ||||||
Retained earnings
|
162,902 | 148,944 | ||||||
Accumulated other comprehensive income (loss), net of tax
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(2,880 | ) | 12,665 | |||||
Total shareholders’ equity
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400,344 | 400,344 | ||||||
Total liabilities and shareholders’ equity
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$ | 3,638,251 | $ | 3,635,664 |
Three Months Ended
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Six Months Ended
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|||||||||||||||
June 30
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June 30
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|||||||||||||||
(in thousands except per share data)
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2013
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2012
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2013
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2012
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||||||||||||
Interest income:
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||||||||||||||||
Interest and fees on loans, including loans held for sale
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$ | 32,672 | $ | 34,278 | $ | 65,520 | $ | 69,330 | ||||||||
Interest and dividends on securities
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||||||||||||||||
Taxable
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3,129 | 3,083 | 6,024 | 5,854 | ||||||||||||
Tax exempt
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557 | 513 | 1,115 | 990 | ||||||||||||
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
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342 | 345 | 690 | 709 | ||||||||||||
Other, including interest on federal funds sold
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83 | 136 | 210 | 298 | ||||||||||||
Total interest income
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36,783 | 38,355 | 73,559 | 77,181 | ||||||||||||
Interest expense:
|
||||||||||||||||
Interest on deposits
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2,902 | 4,930 | 5,921 | 9,401 | ||||||||||||
Interest on repurchase agreements and other short-term borrowings
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234 | 321 | 497 | 659 | ||||||||||||
Interest on advances from Federal Home Loan Bank
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6 | 8 | 13 | 19 | ||||||||||||
Interest on long-term debt
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299 | 777 | 589 | 1,777 | ||||||||||||
Total interest expense
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3,441 | 6,036 | 7,020 | 11,856 | ||||||||||||
Net interest income
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33,342 | 32,319 | 66,539 | 65,325 | ||||||||||||
Provision for loan losses
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3,661 | 2,425 | 5,220 | 3,585 | ||||||||||||
Net interest income after provision for loan losses
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29,681 | 29,894 | 61,319 | 61,740 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Service charges on deposit accounts
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6,182 | 5,955 | 11,949 | 11,827 | ||||||||||||
Gains on sales of loans, net
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755 | 705 | 2,152 | 1,322 | ||||||||||||
Trust income
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2,023 | 1,822 | 4,023 | 3,435 | ||||||||||||
Loan related fees
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1,496 | 610 | 2,444 | 1,897 | ||||||||||||
Bank owned life insurance
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1,327 | 430 | 1,748 | 858 | ||||||||||||
Securities gains (losses)
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(8 | ) | 819 | (8 | ) | 819 | ||||||||||
Other noninterest income
|
1,499 | 1,648 | 2,886 | 3,018 | ||||||||||||
Total noninterest income
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13,274 | 11,989 | 25,194 | 23,176 | ||||||||||||
Noninterest expense:
|
||||||||||||||||
Officer salaries and employee benefits
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2,635 | 2,324 | 5,186 | 4,680 | ||||||||||||
Other salaries and employee benefits
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10,579 | 10,078 | 21,010 | 20,535 | ||||||||||||
Occupancy, net
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1,972 | 1,859 | 3,899 | 3,712 | ||||||||||||
Equipment
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988 | 995 | 1,966 | 1,913 | ||||||||||||
Data processing
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1,775 | 1,548 | 3,588 | 3,127 | ||||||||||||
Bank franchise tax
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1,123 | 1,127 | 2,246 | 2,282 | ||||||||||||
Legal fees
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556 | 496 | 1,162 | 1,097 | ||||||||||||
Professional fees
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432 | 385 | 814 | 645 | ||||||||||||
FDIC insurance
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637 | 613 | 1,239 | 1,270 | ||||||||||||
Other real estate owned provision and expense
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1,170 | 758 | 3,009 | 1,548 | ||||||||||||
Other noninterest expense
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4,120 | 3,965 | 8,167 | 9,089 | ||||||||||||
Total noninterest expense
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25,987 | 24,148 | 52,286 | 49,898 | ||||||||||||
Income before income taxes
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16,968 | 17,735 | 34,227 | 35,018 | ||||||||||||
Income taxes
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5,026 | 5,503 | 10,465 | 10,917 | ||||||||||||
Net income
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11,942 | 12,232 | 23,762 | 24,101 | ||||||||||||
Other comprehensive income (loss):
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||||||||||||||||
Unrealized holding gains (losses) on securities available-for-sale:
|
||||||||||||||||
Unrealized holding gains (losses) arising during the period
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(21,337 | ) | 6,370 | (23,923 | ) | 4,168 | ||||||||||
Less: Reclassification adjustments for realized (gains) losses included in net income
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8 | (819 | ) | 8 | (819 | ) | ||||||||||
Tax (benefit) expense
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(7,465 | ) | 1,943 | (8,370 | ) | 1,172 | ||||||||||
Other comprehensive income (loss), net of tax
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(13,864 | ) | 3,608 | (15,545 | ) | 2,177 | ||||||||||
Comprehensive income (loss)
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$ | (1,922 | ) | $ | 15,840 | $ | 8,217 | $ | 26,278 | |||||||
Basic earnings per share
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$ | 0.77 | $ | 0.79 | $ | 1.53 | $ | 1.56 | ||||||||
Diluted earnings per share
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$ | 0.76 | $ | 0.79 | $ | 1.52 | $ | 1.56 | ||||||||
Weighted average shares outstanding-basic
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15,565 | 15,451 | 15,552 | 15,429 | ||||||||||||
Weighted average shares outstanding-diluted
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15,641 | 15,501 | 15,625 | 15,475 | ||||||||||||
Dividends declared per share
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$ | 0.315 | $ | 0.310 | $ | 0.630 | $ | 0.620 |
Six Months Ended
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||||||||
June 30
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||||||||
(in thousands)
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2013
|
2012
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 23,762 | $ | 24,101 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,301 | 2,119 | ||||||
Deferred taxes
|
(8,370 | ) | (1,172 | ) | ||||
Stock-based compensation
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335 | 294 | ||||||
Excess tax benefits of stock-based compensation
|
42 | 448 | ||||||
Provision for loan losses
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5,220 | 3,585 | ||||||
Write-downs of other real estate owned and other repossessed assets
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1,776 | 359 | ||||||
Gains on sale of mortgage loans held for sale
|
(2,152 | ) | (1,322 | ) | ||||
(Gains)/losses on sales of securities
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8 | (819 | ) | |||||
Losses on sale of assets, net
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92 | 55 | ||||||
Proceeds from sale of mortgage loans held for sale
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93,445 | 58,797 | ||||||
Funding of mortgage loans held for sale
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(71,798 | ) | (57,979 | ) | ||||
Amortization of securities premiums and discounts, net
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2,217 | 2,807 | ||||||
Change in cash surrender value of bank owned life insurance
|
(704 | ) | (688 | ) | ||||
Mortgage servicing rights:
|
||||||||
Fair value adjustments
|
(296 | ) | 119 | |||||
New servicing assets created
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(562 | ) | (340 | ) | ||||
Changes in:
|
||||||||
Other assets
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3,472 | (1,338 | ) | |||||
Other liabilities
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4,672 | 2,664 | ||||||
Net cash provided by operating activities
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53,460 | 31,690 | ||||||
Cash flows from investing activities:
|
||||||||
Certificates of deposit in other banks:
|
||||||||
Maturity of certificates of deposit
|
240 | 875 | ||||||
Purchase of certificates of deposit
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(4,472 | ) | 0 | |||||
Securities available-for-sale (AFS):
|
||||||||
Purchase of AFS securities
|
(176,783 | ) | (181,292 | ) | ||||
Proceeds from prepayments and maturities of AFS securities
|
66,622 | 68,785 | ||||||
Proceeds from the sales of AFS securities
|
0 | 12,025 | ||||||
Change in loans, net
|
(42,740 | ) | 631 | |||||
Purchase of premises and equipment
|
(603 | ) | (2,570 | ) | ||||
Proceeds from sale of premises and equipment
|
38 | 88 | ||||||
Additional investment in Federal Reserve Bank stock
|
(1 | ) | (1 | ) | ||||
Proceeds from sale of other real estate and other repossessed assets
|
5,730 | 5,041 | ||||||
Additional investment in other real estate and other repossessed assets
|
(48 | ) | (167 | ) | ||||
Additional investment in bank owned life insurance
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(7,306 | ) | 0 | |||||
Net cash used in investing activities
|
(159,323 | ) | (96,585 | ) |
Cash flows from financing activities:
|
||||||||
Change in deposits, net
|
18,325 | 62,356 | ||||||
Change in repurchase agreements, federal funds purchased, and other short-term borrowings, net
|
(3,624 | ) | (20,444 | ) | ||||
Payments on advances from Federal Home Loan Bank
|
(82 | ) | (20,092 | ) | ||||
Issuance of common stock
|
1,272 | 3,027 | ||||||
Excess tax benefits of stock-based compensation
|
(42 | ) | (448 | ) | ||||
Dividends paid
|
(9,787 | ) | (9,537 | ) | ||||
Net cash provided by financing activities
|
6,062 | 14,862 | ||||||
Net decrease in cash and cash equivalents
|
(99,801 | ) | (50,033 | ) | ||||
Cash and cash equivalents at beginning of period
|
207,560 | 238,481 | ||||||
Cash and cash equivalents at end of period
|
$ | 107,759 | $ | 188,448 | ||||
Supplemental disclosures:
|
||||||||
Income taxes paid
|
$ | 10,340 | $ | 10,200 | ||||
Interest paid
|
6,474 | 10,189 | ||||||
Non-cash activities:
|
||||||||
Loans to facilitate the sale of other real estate and other repossessed assets
|
1,007 | 2,635 | ||||||
Common stock dividends accrued, paid in subsequent quarter
|
4,904 | 4,796 | ||||||
Real estate acquired in settlement of loans
|
4,655 | 7,495 |
-
|
Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period; and
|
-
|
Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.
|
Amounts Reclassified from AOCI
|
||||||||||||||||
(in thousands)
|
Three Months Ended
June 30
|
Six Months Ended
June 30
|
||||||||||||||
Affected line item in the statements of income
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Securities gains (losses)
|
$ | (8 | ) | $ | 819 | $ | (8 | ) | $ | 819 | ||||||
Tax (benefit) expense
|
(3 | ) | 315 | (3 | ) | 315 | ||||||||||
Net reclassified amount
|
$ | (5 | ) | $ | 504 | $ | (5 | ) | $ | 504 |
Six Months Ended
|
||||
June 30
|
||||
2013
|
||||
Expected dividend yield
|
3.74 | % | ||
Risk-free interest rate
|
1.33 | % | ||
Expected volatility
|
39.11 | % | ||
Expected term (in years)
|
7.5 | |||
Weighted average fair value of options
|
$ | 9.05 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 71,075 | $ | 288 | $ | (3,755 | ) | $ | 67,608 | |||||||
State and political subdivisions
|
115,719 | 2,429 | (2,206 | ) | 115,942 | |||||||||||
U.S. government sponsored agency mortgage-backed securities
|
449,999 | 6,291 | (5,954 | ) | 450,336 | |||||||||||
Total debt securities
|
636,793 | 9,008 | (11,915 | ) | 633,886 | |||||||||||
Marketable equity securities
|
55,000 | 0 | (1,524 | ) | 53,476 | |||||||||||
Total available-for-sale securities
|
$ | 691,793 | $ | 9,008 | $ | (13,439 | ) | $ | 687,362 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 480 | $ | 0 | $ | (42 | ) | $ | 438 | |||||||
State and political subdivisions
|
1,182 | 1 | 0 | 1,183 | ||||||||||||
Total held-to-maturity securities
|
$ | 1,662 | $ | 1 | $ | (42 | ) | $ | 1,621 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 60,625 | $ | 463 | $ | (173 | ) | $ | 60,915 | |||||||
State and political subdivisions
|
107,987 | 5,369 | (135 | ) | 113,221 | |||||||||||
U.S. government sponsored agency mortgage-backed securities
|
370,246 | 13,347 | (12 | ) | 383,581 | |||||||||||
Total debt securities
|
538,858 | 19,179 | (320 | ) | 557,717 | |||||||||||
Marketable equity securities
|
45,000 | 791 | (165 | ) | 45,626 | |||||||||||
Total available-for-sale securities
|
$ | 583,858 | $ | 19,970 | $ | (485 | ) | $ | 603,343 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 480 | $ | 0 | $ | (4 | ) | $ | 476 | |||||||
State and political subdivisions
|
1,182 | 1 | 0 | 1,183 | ||||||||||||
Total held-to-maturity securities
|
$ | 1,662 | $ | 1 | $ | (4 | ) | $ | 1,659 |
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
(in thousands)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
Due in one year or less
|
$ | 5,785 | $ | 5,823 | $ | 0 | $ | 0 | ||||||||
Due after one through five years
|
22,121 | 22,811 | 0 | 0 | ||||||||||||
Due after five through ten years
|
121,095 | 117,651 | 1,182 | 1,183 | ||||||||||||
Due after ten years
|
37,793 | 37,265 | 480 | 438 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
449,999 | 450,336 | 0 | 0 | ||||||||||||
Total debt securities
|
636,793 | 633,886 | 1,662 | 1,621 | ||||||||||||
Marketable equity securities
|
55,000 | 53,476 | 0 | 0 | ||||||||||||
Total securities
|
$ | 691,793 | $ | 687,362 | $ | 1,662 | $ | 1,621 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 60,516 | $ | (3,755 | ) | $ | 56,761 | |||||
State and political subdivisions
|
57,652 | (2,183 | ) | 55,469 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
261,947 | (5,954 | ) | 255,993 | ||||||||
Total debt securities
|
380,115 | (11,892 | ) | 368,223 | ||||||||
Marketable equity securities
|
55,000 | (1,524 | ) | 53,476 | ||||||||
Total <12 months temporarily impaired AFS securities
|
435,115 | (13,416 | ) | 421,699 | ||||||||
12 Months or More
|
||||||||||||
State and political subdivisions
|
1,097 | (23 | ) | 1,074 | ||||||||
Total ≥12 months temporarily impaired AFS securities
|
1,097 | (23 | ) | 1,074 | ||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
60,516 | (3,755 | ) | 56,761 | ||||||||
State and political subdivisions
|
58,749 | (2,206 | ) | 56,543 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
261,947 | (5,954 | ) | 255,993 | ||||||||
Total debt securities
|
381,212 | (11,915 | ) | 369,297 | ||||||||
Marketable equity securities
|
55,000 | (1,524 | ) | 53,476 | ||||||||
Total temporarily impaired AFS securities
|
$ | 436,215 | $ | (13,439 | ) | $ | 422,773 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 480 | $ | (42 | ) | $ | 438 | |||||
Total temporarily impaired HTM securities
|
$ | 480 | $ | (42 | ) | $ | 438 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 47,576 | $ | (173 | ) | $ | 47,403 | |||||
State and political subdivisions
|
11,126 | (135 | ) | 10,991 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
10,563 | (12 | ) | 10,551 | ||||||||
Total debt securities
|
69,265 | (320 | ) | 68,945 | ||||||||
Marketable equity securities
|
20,000 | (165 | ) | 19,835 | ||||||||
Total <12 months temporarily impaired AFS securities
|
89,265 | (485 | ) | 88,780 | ||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
47,576 | (173 | ) | 47,403 | ||||||||
State and political subdivisions
|
11,126 | (135 | ) | 10,991 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
10,563 | (12 | ) | 10,551 | ||||||||
Total debt securities
|
69,265 | (320 | ) | 68,945 | ||||||||
Marketable equity securities
|
20,000 | (165 | ) | 19,835 | ||||||||
Total temporarily impaired AFS securities
|
$ | 89,265 | $ | (485 | ) | $ | 88,780 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 480 | $ | (4 | ) | $ | 476 | |||||
Total temporarily impaired HTM securities
|
$ | 480 | $ | (4 | ) | $ | 476 |
(in thousands)
|
June 30
2013
|
December 31
2012
|
||||||
Commercial construction
|
$ | 103,800 | $ | 119,447 | ||||
Commercial secured by real estate
|
859,022 | 807,213 | ||||||
Equipment lease financing
|
9,383 | 9,246 | ||||||
Commercial other
|
376,906 | 376,348 | ||||||
Real estate construction
|
51,462 | 55,041 | ||||||
Real estate mortgage
|
692,934 | 696,928 | ||||||
Home equity
|
80,631 | 82,292 | ||||||
Consumer direct
|
123,565 | 122,581 | ||||||
Consumer indirect
|
287,098 | 281,477 | ||||||
Total loans
|
$ | 2,584,801 | $ | 2,550,573 |
(in thousands)
|
June 30
2013
|
December 31
2012
|
||||||
Commercial:
|
||||||||
Commercial construction
|
$ | 4,655 | $ | 5,955 | ||||
Commercial secured by real estate
|
7,371 | 5,572 | ||||||
Commercial other
|
2,678 | 1,655 | ||||||
Residential:
|
||||||||
Real estate construction
|
610 | 315 | ||||||
Real estate mortgage
|
3,445 | 3,153 | ||||||
Home equity
|
253 | 141 | ||||||
Total nonaccrual loans
|
$ | 19,012 | $ | 16,791 |
June 30, 2013
|
||||||||||||||||||||||||||||
(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
|
$ | 0 | $ | 30 | $ | 6,772 | $ | 6,802 | $ | 96,998 | $ | 103,800 | $ | 2,243 | ||||||||||||||
Commercial secured by real estate
|
2,256 | 2,703 | 16,282 | 21,241 | 837,781 | 859,022 | 10,924 | |||||||||||||||||||||
Equipment lease financing
|
0 | 0 | 0 | 0 | 9,383 | 9,383 | 0 | |||||||||||||||||||||
Commercial other
|
1,197 | 570 | 6,552 | 8,319 | 368,587 | 376,906 | 4,186 | |||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||||||
Real estate construction
|
208 | 160 | 801 | 1,169 | 50,293 | 51,462 | 191 | |||||||||||||||||||||
Real estate mortgage
|
1,619 | 4,233 | 7,023 | 12,875 | 680,059 | 692,934 | 4,263 | |||||||||||||||||||||
Home equity
|
820 | 333 | 610 | 1,763 | 78,868 | 80,631 | 370 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer direct
|
948 | 258 | 73 | 1,279 | 122,286 | 123,565 | 73 | |||||||||||||||||||||
Consumer indirect
|
1,867 | 697 | 312 | 2,876 | 284,222 | 287,098 | 312 | |||||||||||||||||||||
Total
|
$ | 8,915 | $ | 8,984 | $ | 38,425 | $ | 56,324 | $ | 2,528,477 | $ | 2,584,801 | $ | 22,562 |
December 31, 2012
|
||||||||||||||||||||||||||||
(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
|
$ | 1,413 | $ | 312 | $ | 9,598 | $ | 11,323 | $ | 108,124 | $ | 119,447 | $ | 3,778 | ||||||||||||||
Commercial secured by real estate
|
9,733 | 1,633 | 10,456 | 21,822 | 785,391 | 807,213 | 5,943 | |||||||||||||||||||||
Equipment lease financing
|
0 | 0 | 0 | 0 | 9,246 | 9,246 | 0 | |||||||||||||||||||||
Commercial other
|
259 | 1,142 | 5,164 | 6,565 | 369,783 | 376,348 | 3,867 | |||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||||||
Real estate construction
|
248 | 572 | 511 | 1,331 | 53,710 | 55,041 | 196 | |||||||||||||||||||||
Real estate mortgage
|
2,765 | 4,029 | 7,138 | 13,932 | 682,996 | 696,928 | 4,511 | |||||||||||||||||||||
Home equity
|
921 | 102 | 565 | 1,588 | 80,704 | 82,292 | 441 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer direct
|
1,360 | 336 | 98 | 1,794 | 120,787 | 122,581 | 98 | |||||||||||||||||||||
Consumer indirect
|
2,772 | 907 | 381 | 4,060 | 277,417 | 281,477 | 381 | |||||||||||||||||||||
Total
|
$ | 19,471 | $ | 9,033 | $ | 33,911 | $ | 62,415 | $ | 2,488,158 | $ | 2,550,573 | $ | 19,215 |
Ø
|
Pass grades include investment grade, low risk, moderate risk, and acceptable risk loans. The loans range from loans that have no chance of resulting in a loss to loans that have a limited chance of resulting in a loss. Customers in this grade have excellent to fair credit ratings. The cash flows are adequate to meet required debt repayments.
|
Ø
|
Watch graded loans are loans that warrant extra management attention but are not currently criticized. Loans on the watch list may be potential troubled credits or may warrant “watch” status for a reason not directly related to the asset quality of the credit. The watch grade is a management tool to identify credits which may be candidates for future classification or may temporarily warrant extra management monitoring.
|
Ø
|
Other assets especially mentioned (OAEM) reflects loans that are currently protected but are potentially weak. These loans constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit risk may be relatively minor yet constitute an unwarranted risk in light of circumstances surrounding a specific asset. Loans in this grade display potential weaknesses which may, if unchecked or uncorrected, inadequately protect CTBI’s credit position at some future date. The loans may be adversely affected by economic or market conditions.
|
Ø
|
Substandard grading indicates that the loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These loans have a well-defined weakness or weaknesses that jeopardize the orderly liquidation of the debt with the distinct possibility that CTBI will sustain some loss if the deficiencies are not corrected.
|
Ø
|
Doubtful graded loans have the weaknesses inherent in the substandard grading with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to CTBI’s advantage or strengthen the asset(s), its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans.
|
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Equipment Leases
|
Commercial Other
|
Total
|
|||||||||||||||
June 30, 2013
|
||||||||||||||||||||
Pass
|
$ | 77,966 | $ | 725,401 | $ | 9,383 | $ | 315,390 | $ | 1,128,140 | ||||||||||
Watch
|
13,938 | 79,507 | 0 | 39,418 | 132,863 | |||||||||||||||
OAEM
|
28 | 12,764 | 0 | 5,365 | 18,157 | |||||||||||||||
Substandard
|
7,213 | 35,179 | 0 | 14,402 | 56,794 | |||||||||||||||
Doubtful
|
4,655 | 6,171 | 0 | 2,331 | 13,157 | |||||||||||||||
Total
|
$ | 103,800 | $ | 859,022 | $ | 9,383 | $ | 376,906 | $ | 1,349,111 | ||||||||||
December 31, 2012
|
||||||||||||||||||||
Pass
|
$ | 92,140 | $ | 665,764 | $ | 9,246 | $ | 328,646 | $ | 1,095,796 | ||||||||||
Watch
|
12,915 | 79,517 | 0 | 28,760 | 121,192 | |||||||||||||||
OAEM
|
1,054 | 16,532 | 0 | 2,816 | 20,402 | |||||||||||||||
Substandard
|
7,383 | 40,021 | 0 | 14,878 | 62,282 | |||||||||||||||
Doubtful
|
5,955 | 5,379 | 0 | 1,248 | 12,582 | |||||||||||||||
Total
|
$ | 119,447 | $ | 807,213 | $ | 9,246 | $ | 376,348 | $ | 1,312,254 |
(in thousands)
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer
Indirect
|
Total
|
||||||||||||||||||
June 30, 2013
|
||||||||||||||||||||||||
Performing
|
$ | 50,661 | $ | 685,226 | $ | 80,008 | $ | 123,492 | $ | 286,786 | $ | 1,226,173 | ||||||||||||
Nonperforming (1)
|
801 | 7,708 | 623 | 73 | 312 | 9,517 | ||||||||||||||||||
Total
|
$ | 51,462 | $ | 692,934 | $ | 80,631 | $ | 123,565 | $ | 287,098 | $ | 1,235,690 | ||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Performing
|
$ | 54,530 | $ | 689,264 | $ | 81,710 | $ | 122,483 | $ | 281,096 | $ | 1,229,083 | ||||||||||||
Nonperforming (1)
|
511 | 7,664 | 582 | 98 | 381 | 9,236 | ||||||||||||||||||
Total
|
$ | 55,041 | $ | 696,928 | $ | 82,292 | $ | 122,581 | $ | 281,477 | $ | 1,238,319 |
June 30, 2013
|
||||||||||||
(in thousands)
|
Recorded Balance
|
Unpaid Contractual Principal Balance
|
Specific Allowance
|
|||||||||
Loans without a specific valuation allowance:
|
||||||||||||
Commercial construction
|
$ | 5,921 | $ | 6,498 | $ | 0 | ||||||
Commercial secured by real estate
|
29,232 | 30,155 | 0 | |||||||||
Commercial other
|
16,036 | 19,760 | 0 | |||||||||
Real estate mortgage
|
1,027 | 1,027 | 0 | |||||||||
Loans with a specific valuation allowance:
|
||||||||||||
Commercial construction
|
4,655 | 5,511 | 1,890 | |||||||||
Commercial secured by real estate
|
6,194 | 6,448 | 1,866 | |||||||||
Commercial other
|
353 | 477 | 83 | |||||||||
Totals:
|
||||||||||||
Commercial construction
|
10,576 | 12,009 | 1,890 | |||||||||
Commercial secured by real estate
|
35,426 | 36,603 | 1,866 | |||||||||
Commercial other
|
16,389 | 20,237 | 83 | |||||||||
Real estate mortgage
|
1,027 | 1,027 | 0 | |||||||||
Total
|
$ | 63,418 | $ | 69,876 | $ | 3,839 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2013
|
June 30, 2013
|
|||||||||||||||
(in thousands)
|
Average Investment in Impaired Loans
|
*Interest Income Recognized
|
Average Investment in Impaired Loans
|
*Interest Income Recognized
|
||||||||||||
Loans without a specific valuation allowance:
|
||||||||||||||||
Commercial construction
|
$ | 6,043 | $ | 53 | $ | 5,634 | $ | 127 | ||||||||
Commercial secured by real estate
|
29,422 | 236 | 31,665 | 533 | ||||||||||||
Commercial other
|
15,825 | 151 | 15,630 | 305 | ||||||||||||
Real estate mortgage
|
1,025 | 17 | 842 | 24 | ||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||
Commercial construction
|
4,656 | 0 | 5,366 | 0 | ||||||||||||
Commercial secured by real estate
|
6,298 | 0 | 5,232 | 0 | ||||||||||||
Commercial other
|
379 | 0 | 624 | 0 | ||||||||||||
Totals:
|
||||||||||||||||
Commercial construction
|
10,699 | 53 | 11,000 | 127 | ||||||||||||
Commercial secured by real estate
|
35,720 | 236 | 36,897 | 533 | ||||||||||||
Commercial other
|
16,204 | 151 | 16,254 | 305 | ||||||||||||
Real estate mortgage
|
1,025 | 17 | 842 | 24 | ||||||||||||
Total
|
$ | 63,648 | $ | 457 | $ | 64,993 | $ | 989 |
December 31, 2012
|
||||||||||||||||||||
(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
|
$ | 3,692 | $ | 4,146 | $ | 0 | $ | 4,249 | $ | 97 | ||||||||||
Commercial secured by real estate
|
35,046 | 35,818 | 0 | 35,542 | 1,337 | |||||||||||||||
Commercial other
|
13,285 | 15,484 | 0 | 11,083 | 416 | |||||||||||||||
Real estate mortgage
|
695 | 695 | 0 | 481 | 30 | |||||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
5,703 | 6,933 | 1,820 | 6,585 | 0 | |||||||||||||||
Commercial secured by real estate
|
3,067 | 3,189 | 1,090 | 3,243 | 0 | |||||||||||||||
Commercial other
|
1,010 | 2,331 | 338 | 1,441 | 0 | |||||||||||||||
Totals:
|
||||||||||||||||||||
Commercial construction
|
9,395 | 11,079 | 1,820 | 10,834 | 97 | |||||||||||||||
Commercial secured by real estate
|
38,113 | 39,007 | 1,090 | 38,785 | 1,337 | |||||||||||||||
Commercial other
|
14,295 | 17,815 | 338 | 12,524 | 416 | |||||||||||||||
Real estate mortgage
|
695 | 695 | 0 | 481 | 30 | |||||||||||||||
Total
|
$ | 62,498 | $ | 68,596 | $ | 3,248 | $ | 62,624 | $ | 1,880 |
June 30, 2012
|
||||||||||||
(in thousands)
|
Recorded Balance
|
Unpaid Contractual Principal Balance
|
Specific Allowance
|
|||||||||
Loans without a specific valuation allowance:
|
||||||||||||
Commercial construction
|
$ | 4,554 | $ | 4,554 | $ | 0 | ||||||
Commercial secured by real estate
|
35,835 | 36,307 | 0 | |||||||||
Commercial other
|
12,253 | 14,382 | 0 | |||||||||
Real estate mortgage
|
277 | 278 | 0 | |||||||||
Loans with a specific valuation allowance:
|
||||||||||||
Commercial construction
|
7,561 | 8,414 | 1,823 | |||||||||
Commercial secured by real estate
|
3,057 | 4,196 | 1,084 | |||||||||
Commercial other
|
911 | 2,239 | 422 | |||||||||
Totals:
|
||||||||||||
Commercial construction
|
12,115 | 12,968 | 1,823 | |||||||||
Commercial secured by real estate
|
38,892 | 40,503 | 1,084 | |||||||||
Commercial other
|
13,164 | 16,621 | 422 | |||||||||
Real estate mortgage
|
277 | 278 | 0 | |||||||||
Total
|
$ | 64,448 | $ | 70,370 | $ | 3,329 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30, 2012
|
June 30, 2012
|
|||||||||||||||
(in thousands)
|
Average Investment in Impaired Loans
|
*Interest Income Recognized
|
Average Investment in Impaired Loans
|
*Interest Income Recognized
|
||||||||||||
Loans without a specific valuation allowance:
|
||||||||||||||||
Commercial construction
|
$ | 4,499 | $ | 40 | $ | 4,591 | $ | 58 | ||||||||
Commercial secured by real estate
|
35,964 | 353 | 36,235 | 685 | ||||||||||||
Commercial other
|
12,504 | 43 | 9,645 | 59 | ||||||||||||
Real estate mortgage
|
278 | 5 | 279 | 8 | ||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||
Commercial construction
|
7,479 | 0 | 6,644 | 0 | ||||||||||||
Commercial secured by real estate
|
3,059 | 0 | 3,222 | 0 | ||||||||||||
Commercial other
|
939 | 0 | 1,884 | 0 | ||||||||||||
Totals:
|
||||||||||||||||
Commercial construction
|
11,978 | 40 | 11,235 | 58 | ||||||||||||
Commercial secured by real estate
|
39,023 | 353 | 39,457 | 685 | ||||||||||||
Commercial other
|
13,443 | 43 | 11,529 | 59 | ||||||||||||
Real estate mortgage
|
278 | 5 | 279 | 8 | ||||||||||||
Total
|
$ | 64,722 | $ | 441 | $ | 62,500 | $ | 810 |
Three Months Ended
June 30, 2013
|
||||||||||||||||||||
(in thousands)
|
Number of Loans
|
Term Modification
|
Rate Modification
|
Combination
|
Post-Modification Outstanding Balance
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial construction
|
3 | $ | 493 | $ | 0 | $ | 0 | $ | 493 | |||||||||||
Commercial secured by real estate
|
15 | 662 | 0 | 0 | 662 | |||||||||||||||
Commercial other
|
13 | 872 | 0 | 0 | 872 | |||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate mortgage
|
1 | 373 | 0 | 0 | 373 | |||||||||||||||
Total troubled debt restructurings
|
32 | $ | 2,400 | $ | 0 | $ | 0 | $ | 2,400 |
Six Months Ended
June 30, 2013
|
||||||||||||||||||||
(in thousands)
|
Number of Loans
|
Term Modification
|
Rate Modification
|
Combination
|
Post-Modification Outstanding Balance
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Commercial construction
|
6 | $ | 2,603 | $ | 0 | $ | 0 | $ | 2,603 | |||||||||||
Commercial secured by real estate
|
20 | 1,267 | 0 | 0 | 1,267 | |||||||||||||||
Commercial other
|
22 | 6,365 | 0 | 92 | 6,457 | |||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate mortgage
|
1 | 373 | 0 | 0 | 373 | |||||||||||||||
Total troubled debt restructurings
|
49 | $ | 10,608 | $ | 0 | $ | 92 | $ | 10,700 |
Three Months Ended
June 30, 2012
|
||||||||
(in thousands)
|
Number of Loans
|
Post-Modification Outstanding Balance
|
||||||
Commercial:
|
||||||||
Commercial construction
|
5 | $ | 557 | |||||
Commercial secured by real estate
|
2 | 728 | ||||||
Commercial other
|
10 | 1,018 | ||||||
Total troubled debt restructurings
|
17 | $ | 2,303 |
Six Months Ended
June 30, 2012
|
||||||||
(in thousands)
|
Number of Loans
|
Post-Modification Outstanding Balance
|
||||||
Commercial:
|
||||||||
Commercial construction
|
5 | $ | 557 | |||||
Commercial secured by real estate
|
5 | 2,393 | ||||||
Commercial other
|
11 | 1,066 | ||||||
Total troubled debt restructurings
|
21 | $ | 4,016 |
Year Ended December 31, 2012
|
||||||||
(in thousands)
|
Number of Loans
|
Post-Modification Outstanding Balance
|
||||||
Commercial:
|
||||||||
Commercial construction
|
5 | $ | 557 | |||||
Commercial secured by real estate
|
11 | 4,506 | ||||||
Commercial other
|
23 | 3,233 | ||||||
Residential:
|
||||||||
Real estate mortgage
|
1 | 391 | ||||||
Total troubled debt restructurings
|
40 | $ | 8,687 |
(in thousands)
|
Three Months Ended
June 30, 2013
|
Six Months Ended
June 30, 2013
|
||||||||||||||
Number of Loans
|
Recorded Balance
|
Number of Loans
|
Recorded Balance
|
|||||||||||||
Commercial:
|
||||||||||||||||
Commercial construction
|
1 | $ | 831 | 3 | $ | 1,159 | ||||||||||
Commercial secured by real estate
|
1 | 1,229 | 3 | 1,891 | ||||||||||||
Commercial other
|
5 | 2,061 | 6 | 2,073 | ||||||||||||
Total defaulted restructured loans
|
7 | $ | 4,121 | 12 | $ | 5,123 |
Three Months Ended
June 30, 2013
|
||||||||||||||||||||||||||||||||||||||||
(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
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 3,827 | $ | 13,682 | $ | 128 | $ | 5,151 | $ | 372 | $ | 4,980 | $ | 571 | $ | 1,098 | $ | 3,584 | $ | 33,393 | ||||||||||||||||||||
Provision charged to expense
|
1,119 | 1,132 | (11 | ) | 541 | 34 | 112 | 127 | 174 | 433 | 3,661 | |||||||||||||||||||||||||||||
Losses charged off
|
1,112 | 653 | 0 | 972 | 38 | 151 | 126 | 277 | 786 | 4,115 | ||||||||||||||||||||||||||||||
Recoveries
|
1 | 1 | 0 | 73 | 0 | 9 | 4 | 139 | 435 | 662 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 3,835 | $ | 14,162 | $ | 117 | $ | 4,793 | $ | 368 | $ | 4,950 | $ | 576 | $ | 1,134 | $ | 3,666 | $ | 33,601 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,890 | $ | 1,866 | $ | 0 | $ | 83 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,839 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 1,945 | $ | 12,296 | $ | 117 | $ | 4,710 | $ | 368 | $ | 4,950 | $ | 576 | $ | 1,134 | $ | 3,666 | $ | 29,762 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 10,576 | $ | 35,426 | $ | 0 | $ | 16,389 | $ | 0 | $ | 1,027 | $ | 0 | $ | 0 | $ | 0 | $ | 63,418 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 93,224 | $ | 823,596 | $ | 9,383 | $ | 360,517 | $ | 51,462 | $ | 691,907 | $ | 80,631 | $ | 123,565 | $ | 287,098 | $ | 2,521,383 |
Six Months Ended
June 30, 2013
|
||||||||||||||||||||||||||||||||||||||||
(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
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 4,033 | $ | 13,541 | $ | 126 | $ | 5,469 | $ | 376 | $ | 4,767 | $ | 563 | $ | 1,102 | $ | 3,268 | $ | 33,245 | ||||||||||||||||||||
Provision charged to expense
|
907 | 1,616 | (9 | ) | 386 | 30 | 446 | 177 | 339 | 1,328 | 5,220 | |||||||||||||||||||||||||||||
Losses charged off
|
1,112 | 1,018 | 0 | 1,304 | 38 | 282 | 173 | 591 | 1,785 | 6,303 | ||||||||||||||||||||||||||||||
Recoveries
|
7 | 23 | 0 | 242 | 0 | 19 | 9 | 284 | 855 | 1,439 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 3,835 | $ | 14,162 | $ | 117 | $ | 4,793 | $ | 368 | $ | 4,950 | $ | 576 | $ | 1,134 | $ | 3,666 | $ | 33,601 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,890 | $ | 1,866 | $ | 0 | $ | 83 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,839 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 1,945 | $ | 12,296 | $ | 117 | $ | 4,710 | $ | 368 | $ | 4,950 | $ | 576 | $ | 1,134 | $ | 3,666 | $ | 29,762 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 10,576 | $ | 35,426 | $ | 0 | $ | 16,389 | $ | 0 | $ | 1,027 | $ | 0 | $ | 0 | $ | 0 | $ | 63,418 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 93,224 | $ | 823,596 | $ | 9,383 | $ | 360,517 | $ | 51,462 | $ | 691,907 | $ | 80,631 | $ | 123,565 | $ | 287,098 | $ | 2,521,383 |
Twelve Months Ended
December 31, 2012
|
||||||||||||||||||||||||||||||||||||||||
(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
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$ | 4,023 | $ | 11,753 | $ | 112 | $ | 5,608 | $ | 354 | $ | 4,302 | $ | 562 | $ | 917 | $ | 5,540 | $ | 33,171 | ||||||||||||||||||||
Provision charged to expense
|
1,009 | 3,520 | 14 | 2,330 | 183 | 1,437 | 238 | 892 | (173 | ) | 9,450 | |||||||||||||||||||||||||||||
Losses charged off
|
1,034 | 2,035 | 0 | 3,233 | 189 | 1,123 | 248 | 1,245 | 3,483 | 12,590 | ||||||||||||||||||||||||||||||
Recoveries
|
35 | 303 | 0 | 764 | 28 | 151 | 11 | 538 | 1,384 | 3,214 | ||||||||||||||||||||||||||||||
Balance, end of year
|
$ | 4,033 | $ | 13,541 | $ | 126 | $ | 5,469 | $ | 376 | $ | 4,767 | $ | 563 | $ | 1,102 | $ | 3,268 | $ | 33,245 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,820 | $ | 1,090 | $ | 0 | $ | 338 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,248 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 2,213 | $ | 12,451 | $ | 126 | $ | 5,131 | $ | 376 | $ | 4,767 | $ | 563 | $ | 1,102 | $ | 3,268 | $ | 29,997 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 9,395 | $ | 38,113 | $ | 0 | $ | 14,295 | $ | 0 | $ | 695 | $ | 0 | $ | 0 | $ | 0 | $ | 62,498 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 110,052 | $ | 769,100 | $ | 9,246 | $ | 362,053 | $ | 55,041 | $ | 696,233 | $ | 82,292 | $ | 122,581 | $ | 281,477 | $ | 2,488,075 |
Three Months Ended
June 30, 2012
|
||||||||||||||||||||||||||||||||||||||||
(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
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 4,066 | $ | 12,977 | $ | 105 | $ | 5,965 | $ | 344 | $ | 4,240 | $ | 546 | $ | 846 | $ | 4,083 | $ | 33,172 | ||||||||||||||||||||
Provision charged to expense
|
209 | 1,170 | 37 | 207 | 42 | 414 | 64 | 69 | 213 | 2,425 | ||||||||||||||||||||||||||||||
Losses charged off
|
457 | 891 | 0 | 783 | 0 | 232 | 36 | 203 | 605 | 3,207 | ||||||||||||||||||||||||||||||
Recoveries
|
113 | 6 | 0 | 98 | 4 | 50 | 0 | 145 | 328 | 744 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 3,931 | $ | 13,262 | $ | 142 | $ | 5,487 | $ | 390 | $ | 4,472 | $ | 574 | $ | 857 | $ | 4,019 | $ | 33,134 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,823 | $ | 1,084 | $ | 0 | $ | 422 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,329 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 2,108 | $ | 12,178 | $ | 142 | $ | 5,065 | $ | 390 | $ | 4,472 | $ | 574 | $ | 857 | $ | 4,019 | $ | 29,805 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 12,115 | $ | 38,892 | $ | 0 | $ | 13,164 | $ | 0 | $ | 277 | $ | 0 | $ | 0 | $ | 0 | $ | 64,448 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 103,852 | $ | 775,733 | $ | 10,714 | $ | 368,473 | $ | 56,451 | $ | 647,557 | $ | 83,101 | $ | 124,946 | $ | 312,161 | $ | 2,482,988 |
Six Months Ended
June 30, 2012
|
||||||||||||||||||||||||||||||||||||||||
(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
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 4,023 | $ | 11,753 | $ | 112 | $ | 5,608 | $ | 354 | $ | 4,302 | $ | 562 | $ | 917 | $ | 5,540 | $ | 33,171 | ||||||||||||||||||||
Provision charged to expense
|
251 | 2,450 | 30 | 925 | 197 | 485 | 93 | (48 | ) | (798 | ) | 3,585 | ||||||||||||||||||||||||||||
Losses charged off
|
475 | 987 | 0 | 1,395 | 171 | 422 | 82 | 349 | 1,452 | 5,333 | ||||||||||||||||||||||||||||||
Recoveries
|
132 | 46 | 0 | 349 | 10 | 107 | 1 | 337 | 729 | 1,711 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 3,931 | $ | 13,262 | $ | 142 | $ | 5,487 | $ | 390 | $ | 4,472 | $ | 574 | $ | 857 | $ | 4,019 | $ | 33,134 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 1,823 | $ | 1,084 | $ | 0 | $ | 422 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 3,329 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 2,108 | $ | 12,178 | $ | 142 | $ | 5,065 | $ | 390 | $ | 4,472 | $ | 574 | $ | 857 | $ | 4,019 | $ | 29,805 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 12,115 | $ | 38,892 | $ | 0 | $ | 13,164 | $ | 0 | $ | 277 | $ | 0 | $ | 0 | $ | 0 | $ | 64,448 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 103,852 | $ | 775,733 | $ | 10,714 | $ | 368,473 | $ | 56,451 | $ | 647,557 | $ | 83,101 | $ | 124,946 | $ | 312,161 | $ | 2,482,988 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
(in thousands)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Beginning balance of other real estate owned
|
$ | 45,720 | $ | 59,154 | $ | 47,537 | $ | 56,965 | ||||||||
New assets acquired
|
2,608 | 2,125 | 4,655 | 7,495 | ||||||||||||
Capitalized costs
|
6 | 77 | 6 | 167 | ||||||||||||
Fair value adjustments
|
(630 | ) | (180 | ) | (1,776 | ) | (359 | ) | ||||||||
Sale of assets
|
(4,072 | ) | (4,741 | ) | (6,790 | ) | (7,833 | ) | ||||||||
Ending balance of other real estate owned
|
$ | 43,632 | $ | 56,435 | $ | 43,632 | $ | 56,435 |
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
(in thousands except per share data)
|
2013
|
2012
|
2013
|
2012
|
||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$ | 11,942 | $ | 12,232 | $ | 23,762 | $ | 24,101 | ||||||||
Denominator:
|
||||||||||||||||
Basic earnings per share:
|
||||||||||||||||
Weighted average shares
|
15,565 | 15,451 | 15,552 | 15,429 | ||||||||||||
Diluted earnings per share:
|
||||||||||||||||
Effect of dilutive stock options
|
76 | 50 | 73 | 46 | ||||||||||||
Adjusted weighted average shares
|
15,641 | 15,501 | 15,625 | 15,475 | ||||||||||||
Earnings per share:
|
||||||||||||||||
Basic earnings per share
|
$ | 0.77 | $ | 0.79 | $ | 1.53 | $ | 1.56 | ||||||||
Diluted earnings per share
|
0.76 | 0.79 | 1.52 | 1.56 |
(in thousands)
|
Fair Value Measurements at
June 30, 2013 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
|
$ | 67,608 | $ | 0 | $ | 67,608 | $ | 0 | ||||||||
State and political subdivisions
|
115,942 | 0 | 115,942 | 0 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
450,336 | 0 | 450,336 | 0 | ||||||||||||
Marketable equity securities
|
53,476 | 53,476 | 0 | 0 | ||||||||||||
Mortgage servicing rights
|
3,222 | 0 | 0 | 3,222 |
(in thousands)
|
Fair Value Measurements at
December 31, 2012 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
|
$ | 60,915 | $ | 0 | $ | 60,915 | $ | 0 | ||||||||
State and political subdivisions
|
113,221 | 0 | 113,221 | 0 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
383,581 | 0 | 383,581 | 0 | ||||||||||||
Marketable equity securities
|
45,626 | 45,626 | 0 | 0 | ||||||||||||
Mortgage servicing rights
|
2,364 | 0 | 0 | 2,364 |
(in thousands)
|
Three Months Ended
June 30, 2013
|
Six Months Ended
June 30, 2013
|
||||||||||||||
Marketable Equity Securities
|
Mortgage Servicing Rights
|
Marketable Equity Securities
|
Mortgage Servicing Rights
|
|||||||||||||
Beginning balance
|
$ | 0 | $ | 2,652 | $ | 0 | $ | 2,364 | ||||||||
Total recognized gains (losses)
|
||||||||||||||||
Included in net income
|
0 | 529 | 0 | 646 | ||||||||||||
Issues
|
0 | 205 | 0 | 562 | ||||||||||||
Settlements
|
0 | (164 | ) | 0 | (350 | ) | ||||||||||
Ending balance
|
$ | 0 | $ | 3,222 | $ | 0 | $ | 3,222 | ||||||||
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
|
$ | 0 | $ | 529 | $ | 0 | $ | 646 |
(in thousands)
|
Three Months Ended
June 30, 2012
|
Six Months Ended
June 30, 2012
|
||||||||||||||
Marketable Equity Securities
|
Mortgage Servicing Rights
|
Marketable Equity Securities
|
Mortgage Servicing Rights
|
|||||||||||||
Beginning balance
|
$ | 211 | $ | 2,640 | $ | 211 | $ | 2,282 | ||||||||
Total recognized gains (losses)
|
||||||||||||||||
Included in net income
|
0 | (169 | ) | 0 | 172 | |||||||||||
Issues
|
0 | 189 | 0 | 340 | ||||||||||||
Settlements
|
0 | (157 | ) | 0 | (291 | ) | ||||||||||
Ending balance
|
$ | 211 | $ | 2,503 | $ | 211 | $ | 2,503 | ||||||||
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
|
$ | 0 | $ | (169 | ) | $ | 0 | $ | 172 |
(in thousands)
|
Three Months Ended
June 30, 2013
|
Six Months Ended
June 30, 2013
|
||||||||||||||
Noninterest Income
|
Noninterest Expense
|
Noninterest Income
|
Noninterest Expense
|
|||||||||||||
Total gains
|
$ | 365 | $ | 0 | $ | 296 | $ | 0 |
(in thousands)
|
Three Months Ended
June 30, 2012
|
Six Months Ended
June 30, 2012
|
||||||||||||||
Noninterest Income
|
Noninterest Expense
|
Noninterest Income
|
Noninterest Expense
|
|||||||||||||
Total gains
|
$ | (326 | ) | $ | 0 | $ | (119 | ) | $ | 0 |
(in thousands)
|
Fair Value Measurements at
June 30, 2013 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)
|
$ | 5,419 | $ | 0 | $ | 0 | $ | 5,419 | ||||||||
Other real estate/assets owned
|
9,587 | 0 | 0 | 9,587 |
(in thousands)
|
Fair Value Measurements at
December 31, 2012 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)
|
$ | 5,465 | $ | 0 | $ | 0 | $ | 5,465 | ||||||||
Other real estate/assets owned
|
13,892 | 0 | 0 | 13,892 |
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||
Fair Value at June 30, 2013
|
Valuation Technique(s)
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Mortgage servicing rights
|
$ | 3,222 |
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
6.1% - 26.0%
(12.3%)
|
|||||
Probability of default
|
0.52% - 5.77%
(2.61%)
|
|||||||||
Discount rate
|
Not applicable (10.5%)
|
|||||||||
Impaired loans (collateral-dependent)
|
$ | 5,419 |
Market comparable properties
|
Marketability discount
|
5.0% - 10.0%
(7.0%)
|
|||||
Other real estate/assets owned
|
$ | 9,587 |
Market comparable properties
|
Comparability adjustments (%)
|
5.0% - 57.0%
(10.0%)
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
|||||||||
Fair Value at December 31, 2012
|
Valuation Technique(s)
|
Unobservable Input
|
Range (Weighted Average)
|
|||||||
Mortgage servicing rights
|
$ | 2,364 |
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
8.5% - 25.0%
(16.3%)
|
|||||
Probability of default
|
1.02% - 4.81%
(2.65%)
|
|||||||||
Discount rate
|
Not applicable (10.5%)
|
|||||||||
Impaired loans (collateral-dependent)
|
$ | 5,465 |
Market comparable properties
|
Marketability discount
|
5.0% - 10.0%
(7.0%)
|
|||||
Other real estate/assets owned
|
$ | 13,892 |
Market comparable properties
|
Comparability adjustments (%)
|
5.0% - 35.0%
(13.0%)
|
(in thousands)
|
Fair Value Measurements
at June 30, 2013 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
|
$ | 107,759 | $ | 107,759 | $ | 0 | $ | 0 | ||||||||
Certificates of deposit in other banks
|
9,568 | 0 | 9,614 | 0 | ||||||||||||
Securities available-for-sale
|
687,362 | 53,476 | 633,886 | 0 | ||||||||||||
Securities held-to-maturity
|
1,662 | 0 | 1,621 | 0 | ||||||||||||
Loans held for sale
|
2,991 | 3,052 | 0 | 0 | ||||||||||||
Loans, net
|
2,551,200 | 0 | 0 | 2,552,860 | ||||||||||||
Federal Home Loan Bank stock
|
25,673 | 0 | 25,673 | 0 | ||||||||||||
Federal Reserve Bank stock
|
4,886 | 0 | 4,886 | 0 | ||||||||||||
Accrued interest receivable
|
12,975 | 0 | 12,975 | 0 | ||||||||||||
Mortgage servicing rights
|
3,222 | 0 | 0 | 3,222 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$ | 2,922,173 | $ | 624,451 | $ | 2,295,659 | $ | 0 | ||||||||
Repurchase agreements
|
204,735 | 0 | 0 | 204,711 | ||||||||||||
Federal funds purchased
|
14,075 | 0 | 14,075 | 0 | ||||||||||||
Advances from Federal Home Loan Bank
|
1,347 | 0 | 1,609 | 0 | ||||||||||||
Long-term debt
|
61,341 | 0 | 0 | 31,271 | ||||||||||||
Accrued interest payable
|
1,854 | 0 | 1,854 | 0 | ||||||||||||
Unrecognized financial instruments:
|
||||||||||||||||
Letters of credit
|
$ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
Commitments to extend credit
|
0 | 0 | 0 | 0 | ||||||||||||
Forward sale commitments
|
0 | 0 | 0 | 0 |
(in thousands)
|
Fair Value Measurements
at December 31, 2012 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
|
$ | 207,560 | $ | 207,560 | $ | 0 | $ | 0 | ||||||||
Certificates of deposit in other banks
|
5,336 | 0 | 5,370 | 0 | ||||||||||||
Securities available-for-sale
|
603,343 | 45,626 | 557,717 | 0 | ||||||||||||
Securities held-to-maturity
|
1,662 | 0 | 1,659 | 0 | ||||||||||||
Loans held for sale
|
22,486 | 22,960 | 0 | 0 | ||||||||||||
Loans, net
|
2,517,328 | 0 | 0 | 2,540,272 | ||||||||||||
Federal Home Loan Bank stock
|
25,673 | 0 | 25,673 | 0 | ||||||||||||
Federal Reserve Bank stock
|
4,885 | 0 | 4,885 | 0 | ||||||||||||
Accrued interest receivable
|
12,970 | 0 | 12,790 | 0 | ||||||||||||
Mortgage servicing rights
|
2,364 | 0 | 0 | 2,364 | ||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$ | 2,903,848 | $ | 606,448 | $ | 2,297,632 | $ | 0 | ||||||||
Repurchase agreements
|
210,120 | 0 | 0 | 210,008 | ||||||||||||
Federal funds purchased
|
12,314 | 0 | 12,314 | 0 | ||||||||||||
Advances from Federal Home Loan Bank
|
1,429 | 0 | 1,719 | 0 | ||||||||||||
Long-term debt
|
61,341 | 0 | 0 | 31,185 | ||||||||||||
Accrued interest payable
|
1,309 | 0 | 1,309 | 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 |
v
|
Our Business
|
v
|
Results of Operations and Financial Condition
|
v
|
Dividends
|
v
|
Liquidity and Market Risk
|
v
|
Interest Rate Risk
|
v
|
Capital Resources
|
v
|
Impact of Inflation, Changing Prices, and Economic Conditions
|
v
|
Stock Repurchase Program
|
v
|
Critical Accounting Policies and Estimates
|
v
|
CTBI's basic earnings per share for the quarter decreased $0.02 per share from the second quarter 2012 but increased $0.01 per share from the first quarter 2013. Year-to-date basic earnings per share decreased $0.03 per share from prior year.
|
v
|
Net interest income for the quarter increased 3.2% from prior year second quarter and 0.4% from prior quarter as our net interest margin increased 6 basis points and decreased 3 basis points, respectively, for those time periods. Average earning assets increased 1.1% from the second quarter 2012 and remained stable from prior quarter. Net interest income for the six months ended June 30, 2013 increased 1.9% from prior year.
|
v
|
Nonperforming loans at $41.6 million increased $5.6 million from December 31, 2012 and $7.7 million from March 31, 2013. Nonperforming assets at $84.7 million increased $1.7 million from December 31, 2012 and increased $5.6 million from March 31, 2013.
|
v
|
Net loan charge-offs for the quarter ended June 30, 2013 were $3.5 million, or 0.54% of average loans annualized, compared to $2.5 million, or 0.39%, experienced for the second quarter 2012 and $1.4 million, or 0.22%, for the first quarter 2013. Year-to-date net charge-offs were $4.9 million, or 0.38%, compared to $3.6 million, or 0.29%, for the six months ended June 30, 2012.
|
v
|
Our loan loss provision for the quarter increased $1.2 million from prior year second quarter and $2.1 million from prior quarter. Year-to-date provision expense of $5.2 million is $1.6 million higher than 2012.
|
v
|
Our loan loss reserve as a percentage of total loans outstanding remained at 1.30% from December 31, 2012 to June 30, 2013. Our reserve coverage (allowance for loan loss reserve to nonperforming loans) at June 30, 2013 was 80.8% compared to 92.3% at December 31, 2012 and 98.6% at March 31, 2013, primarily the result of one loan previously identified as impaired migrating from the 30-89 days past due category to 90+ days past due. This credit is well-secured and in the process of collection.
|
v
|
Noninterest income increased 10.7% for the quarter ended June 30, 2013 compared to the same period in 2012 and 11.4% from prior quarter. Noninterest income for the six months ended June 30, 2013 increased 8.7%. The increase in noninterest income included a $0.9 million increase in bank owned life insurance income, primarily as a result of death benefits received.
|
v
|
Noninterest expense for the quarter ended June 30, 2013 increased 7.6% from prior year second quarter but decreased 1.2% from prior quarter. Noninterest expense for the six months ended June 30, 2013 increased 4.8% from prior year. The increase from prior year resulted primarily from increases in personnel expense and other real estate owned expense. The decrease from prior quarter includes a $0.7 million decrease in other real estate owned expense.
|
v
|
Our loan portfolio increased $34.2 million from December 31, 2012 and $21.5 million during the quarter.
|
v
|
Our investment portfolio increased $84.0 million from December 31, 2012 and $9.9 million during the quarter.
|
v
|
Deposits, including repurchase agreements, increased $12.9 million from December 31, 2012 but declined $20.2 million during the quarter.
|
v
|
Our tangible common equity/tangible assets ratio remains strong at 9.35%.
|
(dollars in thousands)
|
Change 2013 vs. 2012
|
|||||||||||||||
Six Months Ended March 31
|
2013
|
2012
|
Amount
|
Percent
|
||||||||||||
Net interest income
|
$ | 66,539 | $ | 65,325 | $ | 1,213 | 1.9 | % | ||||||||
Provision for loan losses
|
5,220 | 3,585 | 1,635 | 45.6 | ||||||||||||
Noninterest income
|
25,194 | 23,176 | 2,017 | 8.7 | ||||||||||||
Noninterest expense
|
52,286 | 49,898 | 2,388 | 4.8 | ||||||||||||
Income taxes
|
10,465 | 10,917 | (453 | ) | (4.1 | ) | ||||||||||
Net income
|
$ | 23,762 | $ | 24,101 | $ | (339 | ) | (1.4 | )% | |||||||
Average earning assets
|
$ | 3,393,593 | $ | 3,337,376 | $ | 56,217 | 1.7 | % | ||||||||
Yield on average earnings assets
|
4.42 | % | 4.71 | % | (0.28 | )% | (6.0 | )% | ||||||||
Cost of interest bearing funds
|
0.54 | % | 0.91 | % | (0.37 | )% | (40.2 | )% | ||||||||
Net interest margin
|
4.01 | % | 3.99 | % | 0.02 | % | 0.4 | % |
(in thousands)
|
June 30, 2013
|
|||||||||||||||||||
Loan Category
|
Balance
|
Variance from Prior Year-End
|
Net Charge-Offs
|
Nonperforming
|
ALLL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
$ | 103,800 | (13.1 | )% | $ | 1,105 | $ | 6,898 | $ | 3,835 | ||||||||||
Secured by real estate
|
859,022 | 6.4 | 995 | 18,295 | 14,162 | |||||||||||||||
Equipment lease financing
|
9,383 | 1.5 | 0 | 0 | 117 | |||||||||||||||
Other commercial
|
376,906 | 0.1 | 1,062 | 6,864 | 4,793 | |||||||||||||||
Total commercial
|
1,349,111 | 2.8 | 3,162 | 32,057 | 22,907 | |||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
51,462 | (6.5 | ) | 38 | 801 | 368 | ||||||||||||||
Real estate mortgage
|
692,934 | (0.6 | ) | 263 | 7,708 | 4,950 | ||||||||||||||
Home equity
|
80,631 | (2.0 | ) | 164 | 623 | 576 | ||||||||||||||
Total residential
|
825,027 | (1.1 | ) | 465 | 9,132 | 5,894 | ||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
123,565 | 0.8 | 307 | 73 | 1,134 | |||||||||||||||
Consumer indirect
|
287,098 | 2.0 | 930 | 312 | 3,666 | |||||||||||||||
Total consumer
|
410,663 | 1.6 | 1,237 | 385 | 4,800 | |||||||||||||||
Total loans
|
$ | 2,584,801 | 1.3 | % | $ | 4,864 | $ | 41,574 | $ | 33,601 |
(in thousands)
|
June 30,
2013
|
December 31,
2012
|
||||||
1-4 family
|
$ | 9,956 | $ | 12,381 | ||||
Agricultural/farmland
|
653 | 653 | ||||||
Construction/land development/other
|
22,053 | 23,823 | ||||||
Multifamily
|
2,512 | 1,281 | ||||||
Non-farm/non-residential
|
7,906 | 8,848 | ||||||
Total foreclosed properties
|
$ | 43,080 | $ | 46,986 |
(in thousands)
|
|||||||||
Appraisal Aging Analysis
|
Holding Period Analysis
|
||||||||
Days Since Last Appraisal
|
Current Book Value
|
Holding Period
|
Current Book Value
|
||||||
Up to 90 days
|
$ | 3,389 |
Less than one year
|
$ | 5,521 | ||||
91 to 180 days
|
4,888 |
1 to 2 years
|
16,031 | ||||||
181 to 270 days
|
15,637 |
2 to 3 years
|
5,563 | ||||||
271 to 365 days
|
2,586 |
3 to 4 years
|
11,288 | ||||||
Over one year
|
16,580 |
Over 4 years
|
4,677 | ||||||
Total
|
$ | 43,080 |
Total
|
$ | 43,080 |
Pay Date
|
Record Date
|
Amount Per Share
|
July 1, 2013
|
June 15, 2013
|
$0.315
|
April 1, 2013
|
March 15, 2013
|
$0.315
|
January 1, 2013
|
December 15, 2012
|
$0.315
|
October 1, 2012
|
September 15, 2012
|
$0.315
|
July 1, 2012
|
June 15, 2012
|
$0.310
|
April 1, 2012
|
March 15, 2012
|
$0.310
|
Item 1.
|
Legal Proceedings
|
None
|
Item 1A.
|
Risk Factors
|
None
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
None
|
Item 3.
|
Defaults Upon Senior Securities
|
None
|
Item 4.
|
Mine Safety Disclosure
|
Not applicable
|
Item 5.
|
Other Information:
|
|
CTBI’s Principal Executive Officer and Principal Financial Officer have furnished to the SEC the certifications with respect to this Form 10-Q that are required by Sections 302 and 906 of the Sarbanes-Oxley Act of 2002
|
||
Item 6.
|
a. Exhibits:
|
|
(1) Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
Exhibit 31.1
Exhibit 31.2
|
|
(2) Certifications Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Exhibit 32.1
Exhibit 32.2
|
|
(3) XBRL Instance Document*
|
Exhibit 101.INS
|
|
(4) XBRL Taxonomy Extension Schema*
|
Exhibit 101.SCH
|
|
(5) XBRL Taxonomy Extension Calculation Linkbase*
|
Exhibit 101.CAL
|
|
(6) XBRL Taxonomy Extension Definition Linkbase*
|
Exhibit 101.DEF
|
|
(7) XBRL Taxonomy Extension Label Linkbase*
|
Exhibit 101.LAB
|
|
(8) XBRL Taxonomy Extension Presentation Linkbase*
|
Exhibit 101.PRE
|
COMMUNITY TRUST BANCORP, INC. | |||
Date: August 9, 2013
|
By:
|
/s/ Jean R. Hale | |
Jean R. Hale | |||
Chairman, President, and Chief Executive Officer |
|
By:
|
/s/ Kevin J. Stumbo | |
Kevin J. Stumbo | |||
Executive Vice President, Chief Financial Officer, and Treasurer | |||
|
(1) I have reviewed this quarterly report on Form 10-Q of Community Trust Bancorp, Inc.;
|
|
(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of CTBI as of, and for, the periods presented in this report;
|
|
(4) CTBI's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of CTBI's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in CTBI's internal control over financial reporting that occurred during CTBI's most recent fiscal quarter (CTBI's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, CTBI's internal control over financial reporting; and
|
|
(5) CTBI's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI's auditors and the audit committee of CTBI's board of directors (or persons performing the equivalent functions):
|
|
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI's ability to record, process, summarize and report financial information; and
|
|
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI's internal control over financial reporting.
|
|
(1) I have reviewed this quarterly report on Form 10-Q of Community Trust Bancorp, Inc.;
|
|
(2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|
(3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operation and cash flows of CTBI as of, and for, the periods presented in this report;
|
|
(4) CTBI's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
(a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
evaluated the effectiveness of CTBI's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
disclosed in this report any change in CTBI's internal control over financial reporting that occurred during CTBI's most recent fiscal quarter (CTBI's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonable likely to materially affect, CTBI's internal control over financial reporting; and
|
|
(5) CTBI's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI's auditors and the audit committee of CTBI's board of directors (or persons performing the equivalent functions):
|
|
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI's ability to record, process, summarize and report financial information; and
|
|
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI's internal control over financial reporting.
|
Securities (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair value of securities | The amortized cost and fair value of securities at June 30, 2013 are summarized as follows: Available-for-Sale
Held-to-Maturity
The amortized cost and fair value of securities as of December 31, 2012 are summarized as follows: Available-for-Sale
Held-to-Maturity
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost and fair value of securities by contractual maturity | The amortized cost and fair value of securities at June 30, 2013 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 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 June 30, 2013 that are not deemed to be other-than-temporarily impaired. Available-for-Sale
Held-to-Maturity
The analysis performed as of December 31, 2012 indicated that all impairment was considered temporary, market 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, 2012 that are not deemed to be other-than-temporarily impaired. Available-for-Sale
Held-to-Maturity
|
Allowance for Loan and Lease Losses
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
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Allowance for Loan and Lease Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan and Lease Losses | Note 5 – Allowance for Loan and Lease Losses The following tables present the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method for the three and six months ended June 30, 2013 and 2012 and the twelve months ended December 31, 2012:
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Loans (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of major classification of loans net of unearned income and deferred loan origination cost | Major classifications of loans, net of unearned income and deferred loan origination costs, are summarized as follows:
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Nonaccrual loans segregated by class of loans | Nonaccrual loans segregated by class of loans were as follows:
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Bank's loan portfolio aging analysis, segregated by class | The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of June 30, 2013 and December 31, 2012:
*90+ and Accruing are also included in 90+ Days Past Due column. |
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Credit risk profile of the bank's commercial loan portfolio based on rating category and payment activity, segregated by class of loans | The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of June 30, 2013 and December 31, 2012:
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Credit risk profile of residential real estate and consumer loan portfolio based on performing and nonperforming status segregated by class [Table Text Block] | The following tables present the credit risk profile of the CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of June 30, 2013 and December 31, 2012:
(1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
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Impaired loans, average investment in impaired loans, and interest income recognized on impaired loans | The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended June 30, 2013, December 31, 2012, and June 30, 2012:
*Cash basis interest is substantially the same as interest income recognized. |
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Troubled debt restructuring | Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and six months ended June 30, 2013 and 2012 and the year ended December 31, 2012:
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Summary of defaulted restructured loans | Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.
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Loans, Major Classifications of Loans, Net of Income and Deferred Loan Origination Cost (Details) (USD $)
|
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | $ 2,584,801,000 | $ 2,550,573,000 |
Loans held for sale [Abstract] | ||
Loans held-for-sale, Amount | 3,000,000 | 22,500,000 |
Capitalized fees and cost related to origination of loans | 40,000 | 400,000 |
Commercial Construction [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 103,800,000 | 119,447,000 |
Commercial Secured by Real Estate [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 859,022,000 | 807,213,000 |
Equipment Lease Financing [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 9,383,000 | 9,246,000 |
Commercial Other [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 376,906,000 | 376,348,000 |
Real Estate Construction [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 51,462,000 | 55,041,000 |
Real Estate Mortgage [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 692,934,000 | 696,928,000 |
Home Equity [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 80,631,000 | 82,292,000 |
Consumer Direct [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | 123,565,000 | 122,581,000 |
Consumer Indirect [Member]
|
||
Major classification of loans, net of unearned income and deferred loan origination costs [Line Items] | ||
Loans, net of unearned income and deferred origination costs | $ 287,098,000 | $ 281,477,000 |
Fair Market Value of Financial Assets and Liabilities (Details) (USD $)
|
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Recurring [Member]
Marketable Equity Securities [Member]
|
Jun. 30, 2012
Recurring [Member]
Marketable Equity Securities [Member]
|
Jun. 30, 2013
Recurring [Member]
Marketable Equity Securities [Member]
|
Jun. 30, 2012
Recurring [Member]
Marketable Equity Securities [Member]
|
Jun. 30, 2013
Recurring [Member]
Mortgage Servicing Rights [Member]
|
Jun. 30, 2012
Recurring [Member]
Mortgage Servicing Rights [Member]
|
Jun. 30, 2013
Recurring [Member]
Mortgage Servicing Rights [Member]
|
Jun. 30, 2012
Recurring [Member]
Mortgage Servicing Rights [Member]
|
Jun. 30, 2013
Recurring [Member]
Fair Value [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
|
Jun. 30, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Jun. 30, 2013
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Jun. 30, 2013
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
Jun. 30, 2013
Nonrecurring [Member]
|
Jun. 30, 2012
Nonrecurring [Member]
|
Dec. 31, 2012
Nonrecurring [Member]
|
Jun. 30, 2013
Nonrecurring [Member]
Fair Value [Member]
|
Dec. 31, 2012
Nonrecurring [Member]
Fair Value [Member]
|
Jun. 30, 2013
Nonrecurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Dec. 31, 2012
Nonrecurring [Member]
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
|
Jun. 30, 2013
Nonrecurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Dec. 31, 2012
Nonrecurring [Member]
Significant Other Observable Inputs (Level 2) [Member]
|
Jun. 30, 2013
Nonrecurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
Dec. 31, 2012
Nonrecurring [Member]
Significant Unobservable Inputs (Level 3) [Member]
|
|
Available-for-sale securities [Abstract] | |||||||||||||||||||||||||||||||
U.S. Treasury and government agencies | $ 67,608,000 | $ 60,915,000 | $ 0 | $ 0 | $ 67,608,000 | $ 60,915,000 | $ 0 | $ 0 | |||||||||||||||||||||||
State and political subdivisions | 115,942,000 | 113,221,000 | 0 | 0 | 115,942,000 | 113,221,000 | 0 | 0 | |||||||||||||||||||||||
U.S. government sponsored agency mortgage-backed securities | 450,336,000 | 383,581,000 | 0 | 0 | 450,336,000 | 383,581,000 | 0 | 0 | |||||||||||||||||||||||
Marketable equity securities | 53,476,000 | 45,626,000 | 53,476,000 | 45,626,000 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||
Mortgage servicing rights | 3,222,000 | 2,364,000 | 0 | 0 | 0 | 0 | 3,222,000 | 2,364,000 | |||||||||||||||||||||||
Assets measured-nonrecurring basis [Abstract] | |||||||||||||||||||||||||||||||
Impaired loans (collateral dependent) | 5,419,000 | 5,465,000 | 0 | 0 | 0 | 0 | 5,419,000 | 5,465,000 | |||||||||||||||||||||||
Other real estate /assets owned | 9,587,000 | 13,892,000 | 0 | 0 | 0 | 0 | 9,587,000 | 13,892,000 | |||||||||||||||||||||||
Impaired loan (collateral dependent) [Abstract] | |||||||||||||||||||||||||||||||
Impaired loans, fair value adjustments | 1,500,000 | 100,000 | 500,000 | ||||||||||||||||||||||||||||
Other real estate owned [Abstract] | |||||||||||||||||||||||||||||||
Other real estate /assets owned, fair value adjustment | 600,000 | 200,000 | 1,800,000 | ||||||||||||||||||||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||||||||||||||||||||||||
Beginning balance | 0 | 211,000 | 0 | 211,000 | 2,652,000 | 2,640,000 | 2,364,000 | 2,282,000 | |||||||||||||||||||||||
Total recognized gains (losses) Included in net income | 0 | 0 | 0 | 0 | 529,000 | (169,000) | 646,000 | 172,000 | |||||||||||||||||||||||
Issues | 0 | 0 | 0 | 0 | 205,000 | 189,000 | 562,000 | 340,000 | |||||||||||||||||||||||
Settlements | 0 | 0 | 0 | 0 | (164,000) | (157,000) | (350,000) | (291,000) | |||||||||||||||||||||||
Ending balance | 0 | 211,000 | 0 | 211,000 | 3,222,000 | 2,503,000 | 3,222,000 | 2,503,000 | |||||||||||||||||||||||
Total gains for the period included in net income | 0 | 0 | 0 | 0 | 529,000 | (169,000) | 646,000 | 172,000 | |||||||||||||||||||||||
Total gains, noninterest income | 365,000 | (326,000) | 296,000 | (119,000) | |||||||||||||||||||||||||||
Total gains, noninterest expense | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan and Lease Losses (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
Dec. 31, 2012
|
|
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | $ 33,393 | $ 33,172 | $ 33,245 | $ 33,171 | $ 33,171 |
Provision charged to expense | 3,661 | 2,425 | 5,220 | 3,585 | 9,450 |
Losses charged off | 4,115 | 3,207 | 6,303 | 5,333 | 12,590 |
Recoveries | 662 | 744 | 1,439 | 1,711 | 3,214 |
Ending balance | 33,601 | 33,134 | 33,601 | 33,134 | 33,245 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 3,839 | 3,329 | 3,839 | 3,329 | 3,248 |
Collectively evaluated for impairment | 29,762 | 29,805 | 29,762 | 29,805 | 29,997 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 63,418 | 64,448 | 63,418 | 64,448 | 62,498 |
Collectively evaluated for impairment | 2,521,383 | 2,482,988 | 2,521,383 | 2,482,988 | 2,488,075 |
Commercial Construction [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 3,827 | 4,066 | 4,033 | 4,023 | 4,023 |
Provision charged to expense | 1,119 | 209 | 907 | 251 | 1,009 |
Losses charged off | 1,112 | 457 | 1,112 | 475 | 1,034 |
Recoveries | 1 | 113 | 7 | 132 | 35 |
Ending balance | 3,835 | 3,931 | 3,835 | 3,931 | 4,033 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 1,890 | 1,823 | 1,890 | 1,823 | 1,820 |
Collectively evaluated for impairment | 1,945 | 2,108 | 1,945 | 2,108 | 2,213 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 10,576 | 12,115 | 10,576 | 12,115 | 9,395 |
Collectively evaluated for impairment | 93,224 | 103,852 | 93,224 | 103,852 | 110,052 |
Commercial Secured by Real Estate [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 13,682 | 12,977 | 13,541 | 11,753 | 11,753 |
Provision charged to expense | 1,132 | 1,170 | 1,616 | 2,450 | 3,520 |
Losses charged off | 653 | 891 | 1,018 | 987 | 2,035 |
Recoveries | 1 | 6 | 23 | 46 | 303 |
Ending balance | 14,162 | 13,262 | 14,162 | 13,262 | 13,541 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 1,866 | 1,084 | 1,866 | 1,084 | 1,090 |
Collectively evaluated for impairment | 12,296 | 12,178 | 12,296 | 12,178 | 12,451 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 35,426 | 38,892 | 35,426 | 38,892 | 38,113 |
Collectively evaluated for impairment | 823,596 | 775,733 | 823,596 | 775,733 | 769,100 |
Commercial Other [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 5,151 | 5,965 | 5,469 | 5,608 | 5,608 |
Provision charged to expense | 541 | 207 | 386 | 925 | 2,330 |
Losses charged off | 972 | 783 | 1,304 | 1,395 | 3,233 |
Recoveries | 73 | 98 | 242 | 349 | 764 |
Ending balance | 4,793 | 5,487 | 4,793 | 5,487 | 5,469 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 83 | 422 | 83 | 422 | 338 |
Collectively evaluated for impairment | 4,710 | 5,065 | 4,710 | 5,065 | 5,131 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 16,389 | 13,164 | 16,389 | 13,164 | 14,295 |
Collectively evaluated for impairment | 360,517 | 368,473 | 360,517 | 368,473 | 362,053 |
Equipment Lease Financing [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 128 | 105 | 126 | 112 | 112 |
Provision charged to expense | (11) | 37 | (9) | 30 | 14 |
Losses charged off | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Ending balance | 117 | 142 | 117 | 142 | 126 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 117 | 142 | 117 | 142 | 126 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 9,383 | 10,714 | 9,383 | 10,714 | 9,246 |
Real Estate Construction [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 372 | 344 | 376 | 354 | 354 |
Provision charged to expense | 34 | 42 | 30 | 197 | 183 |
Losses charged off | 38 | 0 | 38 | 171 | 189 |
Recoveries | 0 | 4 | 0 | 10 | 28 |
Ending balance | 368 | 390 | 368 | 390 | 376 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 368 | 390 | 368 | 390 | 376 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 51,462 | 56,451 | 51,462 | 56,451 | 55,041 |
Real Estate Mortgage [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 4,980 | 4,240 | 4,767 | 4,302 | 4,302 |
Provision charged to expense | 112 | 414 | 446 | 485 | 1,437 |
Losses charged off | 151 | 232 | 282 | 422 | 1,123 |
Recoveries | 9 | 50 | 19 | 107 | 151 |
Ending balance | 4,950 | 4,472 | 4,950 | 4,472 | 4,767 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 4,950 | 4,472 | 4,950 | 4,472 | 4,767 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 1,027 | 277 | 1,027 | 277 | 695 |
Collectively evaluated for impairment | 691,907 | 647,557 | 691,907 | 647,557 | 696,233 |
Home Equity [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 571 | 546 | 563 | 562 | 562 |
Provision charged to expense | 127 | 64 | 177 | 93 | 238 |
Losses charged off | 126 | 36 | 173 | 82 | 248 |
Recoveries | 4 | 0 | 9 | 1 | 11 |
Ending balance | 576 | 574 | 576 | 574 | 563 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 576 | 574 | 576 | 574 | 563 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 80,631 | 83,101 | 80,631 | 83,101 | 82,292 |
Consumer Direct [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 1,098 | 846 | 1,102 | 917 | 917 |
Provision charged to expense | 174 | 69 | 339 | (48) | 892 |
Losses charged off | 277 | 203 | 591 | 349 | 1,245 |
Recoveries | 139 | 145 | 284 | 337 | 538 |
Ending balance | 1,134 | 857 | 1,134 | 857 | 1,102 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,134 | 857 | 1,134 | 857 | 1,102 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 123,565 | 124,946 | 123,565 | 124,946 | 122,581 |
Consumer Indirect [Member]
|
|||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 3,584 | 4,083 | 3,268 | 5,540 | 5,540 |
Provision charged to expense | 433 | 213 | 1,328 | (798) | (173) |
Losses charged off | 786 | 605 | 1,785 | 1,452 | 3,483 |
Recoveries | 435 | 328 | 855 | 729 | 1,384 |
Ending balance | 3,666 | 4,019 | 3,666 | 4,019 | 3,268 |
Allowance for Loan Losses Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 3,666 | 4,019 | 3,666 | 4,019 | 3,268 |
Loans Ending balance: [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 287,098 | $ 312,161 | $ 287,098 | $ 312,161 | $ 281,477 |
Securities (Details) (USD $)
|
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
Security
|
Jun. 30, 2012
Security
|
Dec. 31, 2012
|
|
Available-for-Sale [Abstract] | |||||
Amortized Cost | $ 691,793,000 | $ 691,793,000 | $ 583,858,000 | ||
Gross Unrealized Gains | 9,008,000 | 9,008,000 | 19,970,000 | ||
Gross Unrealized Losses | (13,439,000) | (13,439,000) | (485,000) | ||
Fair Value | 687,362,000 | 687,362,000 | 603,343,000 | ||
Held-to-Maturity [Abstract] | |||||
Amortized Cost | 1,662,000 | 1,662,000 | 1,662,000 | ||
Gross Unrealized Gains | 1,000 | 1,000 | 1,000 | ||
Gross Unrealized Losses | (42,000) | (42,000) | (4,000) | ||
Fair Value | 1,621,000 | 1,621,000 | 1,659,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Due in one year or less | 5,785,000 | 5,785,000 | |||
Due after one through five years | 22,121,000 | 22,121,000 | |||
Due after five through ten years | 121,095,000 | 121,095,000 | |||
Due after ten years | 37,793,000 | 37,793,000 | |||
U.S. government sponsored agency mortgage-backed securities | 449,999,000 | 449,999,000 | |||
Total debt securities | 636,793,000 | 636,793,000 | |||
Marketable equity securities | 55,000,000 | 55,000,000 | |||
Total securities | 691,793,000 | 691,793,000 | |||
Available-for-Sale, Fair Value [Abstract] | |||||
Due in one year or less | 5,823,000 | 5,823,000 | |||
Due after one through five years | 22,811,000 | 22,811,000 | |||
Due after five through ten years | 117,651,000 | 117,651,000 | |||
Due after ten years | 37,265,000 | 37,265,000 | |||
U.S. government sponsored agency mortgage-backed securities | 450,336,000 | 450,336,000 | |||
Total debt securities | 633,886,000 | 633,886,000 | |||
Marketable equity securities | 53,476,000 | 53,476,000 | |||
Total securities | 687,362,000 | 687,362,000 | |||
Held-to-Maturity, Amortized Cost [Abstract] | |||||
Due in one year or less | 0 | 0 | |||
Due after one through five years | 0 | 0 | |||
Due after five through ten years | 1,182,000 | 1,182,000 | |||
Due after ten years | 480,000 | 480,000 | |||
U.S. government sponsored agency mortgage-backed securities | 0 | 0 | |||
Total debt securities | 1,662,000 | 1,662,000 | |||
Marketable equity securities | 0 | 0 | |||
Total securities | 1,662,000 | 1,662,000 | |||
Held-to-Maturity, Fair Value [Abstract] | |||||
Due in one year or less | 0 | 0 | |||
Due after one through five years | 0 | 0 | |||
Due after five through ten years | 1,183,000 | 1,183,000 | |||
Due after ten years | 438,000 | 438,000 | |||
U.S. government sponsored agency mortgage-backed securities | 0 | 0 | |||
Total debt securities | 1,621,000 | 1,621,000 | |||
Marketable equity securities | 0 | 0 | |||
Total securities | 1,621,000 | 1,621,000 | |||
Securities gains (loss), net | (8,000) | 819,000 | (8,000) | 819,000 | |
Number of security sold | 2 | 2 | |||
Realized pre-tax gain on sale of securities | 885,000 | ||||
Realized pre-tax loss on sale of securities | 66,000 | ||||
Securities pledged as collateral to secure public deposit and for other purposes | 250,800,000 | 250,800,000 | 262,400,000 | ||
Amortized cost of securities sold under agreements to repurchase | 241,500,000 | 241,500,000 | 237,300,000 | ||
Percentage of total investment with unrealized losses (in hundredths) | 61.40% | 61.40% | 14.80% | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 435,115,000 | 435,115,000 | 89,265,000 | ||
Total | 436,215,000 | 436,215,000 | 89,265,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (13,416,000) | (13,416,000) | (485,000) | ||
Total | (13,439,000) | (13,439,000) | (485,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 421,699,000 | 421,699,000 | 88,780,000 | ||
Total | 422,773,000 | 422,773,000 | 88,780,000 | ||
Held-to-Maturity, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 480,000 | 480,000 | 480,000 | ||
Held-to-Maturity, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (42,000) | (42,000) | (4,000) | ||
Held-to-Maturity, Fair Value [Abstract] | |||||
Less Than 12 Months | 438,000 | 438,000 | 476,000 | ||
U.S. Treasury and government agencies [Member]
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Available-for-Sale [Abstract] | |||||
Amortized Cost | 71,075,000 | 71,075,000 | 60,625,000 | ||
Gross Unrealized Gains | 288,000 | 288,000 | 463,000 | ||
Gross Unrealized Losses | (3,755,000) | (3,755,000) | (173,000) | ||
Fair Value | 67,608,000 | 67,608,000 | 60,915,000 | ||
Held-to-Maturity [Abstract] | |||||
Amortized Cost | 480,000 | 480,000 | 480,000 | ||
Gross Unrealized Gains | 0 | 0 | 0 | ||
Gross Unrealized Losses | (42,000) | (42,000) | (4,000) | ||
Fair Value | 438,000 | 438,000 | 476,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 60,516,000 | 60,516,000 | 47,576,000 | ||
Total | 60,516,000 | 60,516,000 | 47,576,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (3,755,000) | (3,755,000) | (173,000) | ||
Total | (3,755,000) | (3,755,000) | (173,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 56,761,000 | 56,761,000 | 47,403,000 | ||
Total | 56,761,000 | 56,761,000 | 47,403,000 | ||
Held-to-Maturity, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 480,000 | 480,000 | 480,000 | ||
Held-to-Maturity, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (42,000) | (42,000) | (4,000) | ||
Held-to-Maturity, Fair Value [Abstract] | |||||
Less Than 12 Months | 438,000 | 438,000 | 476,000 | ||
State and political subdivisions [Member]
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Available-for-Sale [Abstract] | |||||
Amortized Cost | 115,719,000 | 115,719,000 | 107,987,000 | ||
Gross Unrealized Gains | 2,429,000 | 2,429,000 | 5,369,000 | ||
Gross Unrealized Losses | (2,206,000) | (2,206,000) | (135,000) | ||
Fair Value | 115,942,000 | 115,942,000 | 113,221,000 | ||
Held-to-Maturity [Abstract] | |||||
Amortized Cost | 1,182,000 | 1,182,000 | 1,182,000 | ||
Gross Unrealized Gains | 1,000 | 1,000 | 1,000 | ||
Gross Unrealized Losses | 0 | 0 | 0 | ||
Fair Value | 1,183,000 | 1,183,000 | 1,183,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 57,652,000 | 57,652,000 | 11,126,000 | ||
12 Months or More | 1,097,000 | 1,097,000 | |||
Total | 58,749,000 | 58,749,000 | 11,126,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (2,183,000) | (2,183,000) | (135,000) | ||
12 Months or More | (23,000) | (23,000) | |||
Total | (2,206,000) | (2,206,000) | (135,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 55,469,000 | 55,469,000 | 10,991,000 | ||
12 Months or More | 1,074,000 | 1,074,000 | |||
Total | 56,543,000 | 56,543,000 | 10,991,000 | ||
U.S. government sponsored agency mortgage-backed securities [Member]
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Available-for-Sale [Abstract] | |||||
Amortized Cost | 449,999,000 | 449,999,000 | 370,246,000 | ||
Gross Unrealized Gains | 6,291,000 | 6,291,000 | 13,347,000 | ||
Gross Unrealized Losses | (5,954,000) | (5,954,000) | (12,000) | ||
Fair Value | 450,336,000 | 450,336,000 | 383,581,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 261,947,000 | 261,947,000 | 10,563,000 | ||
Total | 261,947,000 | 261,947,000 | 10,563,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (5,954,000) | (5,954,000) | (12,000) | ||
Total | (5,954,000) | (5,954,000) | (12,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 255,993,000 | 255,993,000 | 10,551,000 | ||
Total | 255,993,000 | 255,993,000 | 10,551,000 | ||
Debt securities [Member]
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|||||
Available-for-Sale [Abstract] | |||||
Amortized Cost | 636,793,000 | 636,793,000 | 538,858,000 | ||
Gross Unrealized Gains | 9,008,000 | 9,008,000 | 19,179,000 | ||
Gross Unrealized Losses | (11,915,000) | (11,915,000) | (320,000) | ||
Fair Value | 633,886,000 | 633,886,000 | 557,717,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 380,115,000 | 380,115,000 | 69,265,000 | ||
12 Months or More | 1,097,000 | 1,097,000 | |||
Total | 381,212,000 | 381,212,000 | 69,265,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (11,892,000) | (11,892,000) | (320,000) | ||
12 Months or More | (23,000) | (23,000) | |||
Total | (11,915,000) | (11,915,000) | (320,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 368,223,000 | 368,223,000 | 68,945,000 | ||
12 Months or More | 1,074,000 | 1,074,000 | |||
Total | 369,297,000 | 369,297,000 | 68,945,000 | ||
Marketable equity securities [Member]
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Available-for-Sale [Abstract] | |||||
Amortized Cost | 55,000,000 | 55,000,000 | 45,000,000 | ||
Gross Unrealized Gains | 0 | 0 | 791,000 | ||
Gross Unrealized Losses | (1,524,000) | (1,524,000) | (165,000) | ||
Fair Value | 53,476,000 | 53,476,000 | 45,626,000 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Less Than 12 Months | 55,000,000 | 55,000,000 | 20,000,000 | ||
Total | 55,000,000 | 55,000,000 | 20,000,000 | ||
Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than 12 Months | (1,524,000) | (1,524,000) | (165,000) | ||
Total | (1,524,000) | (1,524,000) | (165,000) | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Less Than 12 Months | 53,476,000 | 53,476,000 | 19,835,000 | ||
Total | $ 53,476,000 | $ 53,476,000 | $ 19,835,000 |
Summary of Significant Accounting Policies
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Jun. 30, 2013
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Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (which consist of normal recurring accruals) necessary, to present fairly the condensed consolidated financial position as of June 30, 2013, the results of operations for the three and six months ended June 30, 2013 and 2012, and the cash flows for the six months ended June 30, 2013 and 2012. In accordance with accounting principles generally accepted in the United States of America for interim financial information, these statements do not include certain information and footnote disclosures required by accounting principles generally accepted in the United States of America for complete annual financial statements. The results of operations for the three and six months ended June 30, 2013 and 2012, and the cash flows for the six months ended June 30, 2013 and 2012, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2012 has been derived from the audited consolidated financial statements of Community Trust Bancorp, Inc. (“CTBI”) for that period. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2012, included in our annual report on Form 10-K. Principles of Consolidation – The unaudited condensed consolidated financial statements include the accounts of CTBI and its separate and distinct, wholly owned subsidiaries Community Trust Bank, Inc. (the “Bank”) and Community Trust and Investment Company. All significant intercompany transactions have been eliminated in consolidation. Reclassifications – Certain reclassifications considered to be immaterial have been made in the prior year condensed consolidated financial statements to conform to current year classifications. These reclassifications had no effect on net income. New Accounting Standards – Ø Amounts Reclassified Out of Other Comprehensive Income – In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, to improve the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in the ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP. The new amendments will require an organization to:
The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). The amendments are effective for reporting periods beginning after December 15, 2012, for public companies. The adoption of ASU No. 2013-02 did not have a material impact on CTBI’s consolidated financial statements. Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and six month periods ended June 30, 2013 and 2012 were: Unrealized gains (losses) on AFS securities
Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes. Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements. We believe the application of accounting policies and the estimates required therein are reasonable. These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates. Our accounting policies are described above. We have identified the following critical accounting policies: Investments – Management determines the classification of securities at purchase. We classify securities into held-to-maturity, trading, or available-for-sale categories. Held-to-maturity securities are those which we have the positive intent and ability to hold to maturity and are reported at amortized cost. In accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320, Investment Securities, investments in debt securities that are not classified as held-to-maturity and equity securities that have readily determinable fair values shall be classified in one of the following categories and measured at fair value in the statement of financial position: a. Trading securities. Securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) shall be classified as trading securities. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price. b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities. We do not have any securities that are classified as trading securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders’ equity, net of tax. If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost. 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 the CTBI’s results of operations and financial condition. Loans – Loans with the ability and the intent to be held until maturity and/or payoff are reported at the carrying value of unpaid principal reduced by unearned interest, an allowance for loan and lease losses, and unamortized deferred fees or costs. Income is recorded on the level yield basis. Interest accrual is discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower’s financial condition is such that collection of interest is doubtful. Any loan greater than 90 days past due must be well secured and in the process of collection to continue accruing interest. Cash payments received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured. Loans are not reclassified as accruing until principal and interest payments remain current for a period of time, generally six months, and future payments appear reasonably certain. Included in certain loan categories of impaired loans are troubled debt restructurings that were classified as impaired. A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment. Allowance for Loan and Lease Losses – We maintain an allowance for loan and lease losses (“ALLL”) at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio. Since arriving at an appropriate ALLL involves a high degree of management judgment, we use an ongoing quarterly analysis to develop a range of estimated losses. In accordance with accounting principles generally accepted in the United States, we use our best estimate within the range of potential credit loss to determine the appropriate ALLL. Credit losses are charged and recoveries are credited to the ALLL. We utilize an internal risk grading system for commercial credits. Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated. The review of individual loans includes those loans that are impaired as defined by ASC 310-35, Impairment of a Loan. We evaluate the collectability of both principal and interest when assessing the need for loss provision. Historical loss rates are analyzed and applied to other commercial loans not subject to specific allocations. The ALLL allocation for this pool of commercial loans is established based on the historical average, maximum, minimum, and median loss ratios. A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ALLL for these loans is measured under ASC 450, Contingencies. When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on non-accrual 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, a charge off is taken, if necessary, in order that the remaining balance reflects the fair value estimated less costs to sell of the collateral then transferred to other real estate owned or other repossessed assets. 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 and foreclosure proceedings are initiated. When the foreclosed property has been legally assigned to CTBI, a charge-off is taken with the remaining balance, reflecting the fair value less estimated costs to sell, transferred to other real estate owned. 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 generally review the historical loss rates over eight quarters and four quarters on a rolling average basis. 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, trend in loan losses, industry concentrations and their relative strengths, amount of unsecured loans and underwriting exceptions. Based upon management’s judgment, “best case,” “worst case,” and “most likely” scenarios are determined. The total of each of these weighted factors is then applied against the applicable portion of the portfolio and the ALLL is adjusted accordingly to approximate the most likely scenario. Management continually reevaluates the other subjective factors included in its ALLL analysis. Other Real Estate Owned – When foreclosed properties are acquired, appraisals are obtained and the properties are booked at the current market value less expected sales costs. Additionally, periodic updated appraisals are obtained on unsold foreclosed properties. When an updated appraisal reflects a market value below the current book value, a charge is booked to current earnings to reduce the property to its new market value less expected sales costs. Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months. All revenues and expenses related to the carrying of other real estate owned are recognized by a charge to income. |
Securities
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Jun. 30, 2013
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Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities | Note 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 securities at June 30, 2013 are summarized as follows: Available-for-Sale
Held-to-Maturity
The amortized cost and fair value of securities as of December 31, 2012 are summarized as follows: Available-for-Sale
Held-to-Maturity
The amortized cost and fair value of securities at June 30, 2013 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.
As of June 30, 2013, there was a combined loss of $8 thousand due to the partial call of two municipal securities. As of June 30, 2012, there was a combined gain of $819 thousand due to the sale of two agency securities. A pre-tax gain of $885 thousand and a pre-tax loss of $66 thousand were realized as of June 30, 2012. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $250.8 million at June 30, 2013 and $262.4 million at December 31, 2012. The amortized cost of securities sold under agreements to repurchase amounted to $241.5 million at June 30, 2013 and $237.3 million at December 31, 2012. Certain investments in debt and marketable equity securities are reported in the financial statements at amounts less than their historical costs. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of June 30, 2013 indicates that all impairment is considered temporary, market driven, and not credit-related. The percentage of total investments with unrealized losses as of June 30, 2013 was 61.4% compared to 14.8% as of December 31, 2012 as a result of changes in the market rates during the second quarter of 2013. 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 June 30, 2013 that are not deemed to be other-than-temporarily impaired. Available-for-Sale
Held-to-Maturity
The analysis performed as of December 31, 2012 indicated that all impairment was considered temporary, market 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, 2012 that are not deemed to be other-than-temporarily impaired. Available-for-Sale
Held-to-Maturity
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Other Real Estate Owned
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Jun. 30, 2013
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Other Real Estate Owned | Note 6 – Other Real Estate Owned Activity for other real estate owned was as follows:
Foreclosed properties at June 30, 2013 and 2012 were $43.1 million and $55.8 million, respectively. Also included in other real estate owned are two properties totaling $0.6 million which were not acquired through foreclosure. Carrying costs and fair value adjustments associated with foreclosed properties for the three months ended June 30, 2013 and 2012, respectively, were $1.2 million and $0.8 million. Carrying costs and fair value adjustments associated with foreclosed properties for the six months ended June 30, 2013 and 2012 were $3.0 million and $1.5 million. |
Loans
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Loans [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Note 4 – Loans Major classifications of loans, net of unearned income and deferred loan origination costs, are summarized as follows:
CTBI has segregated and evaluates its loan portfolio through nine portfolio segments. CTBI serves customers in small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Therefore, CTBI’s exposure to credit risk is significantly affected by changes in these communities. Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development. Included in this category are improved property, land development, and tract development loans. The terms of these loans are generally short-term with permanent financing upon completion. Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/ multi-family properties, farmland, and other commercial real estate. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Equipment lease financing loans are fixed, variable, and tax exempt 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 fixed 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 $3.0 million at June 30, 2013 and $22.5 million at December 31, 2012. The amount of capitalized fees and costs under ASC 310-20, included in the above loan totals were $0.04 million and $0.4 million at June 30, 2013 and December 31, 2012, respectively. Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans segregated by class of loans were as follows:
The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of June 30, 2013 and December 31, 2012:
*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 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. 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, and 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. Repayment of 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. Credit Quality Indicators: CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings:
The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of June 30, 2013 and December 31, 2012:
The following tables present the credit risk profile of the CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of June 30, 2013 and December 31, 2012:
(1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. 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 periods ended June 30, 2013, December 31, 2012, and June 30, 2012:
*Cash basis interest is substantially the same as interest income recognized. Included in certain loan categories of impaired loans are certain loans and leases 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 or lease 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. During 2013, certain loans were modified in troubled debt restructurings, where economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances. Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and six months ended June 30, 2013 and 2012 and the year ended December 31, 2012:
No charge-offs have resulted from modifications for any of the presented periods. 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 which have subsequently defaulted. CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.
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