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Loans (Tables)
 6 Months Ended
Jun. 30, 2016
Loans [Abstract]  
Summary of Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans
Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows:

 
(in thousands)
 
June 30
2016
  
December 31
2015
 
Commercial construction
 
$
69,013
  
$
78,020
 
Commercial secured by real estate
  
1,079,329
   
1,052,919
 
Equipment lease financing
  
7,353
   
8,514
 
Commercial other
  
366,973
   
358,898
 
Real estate construction
  
58,973
   
61,750
 
Real estate mortgage
  
708,460
   
707,874
 
Home equity
  
89,185
   
89,450
 
Consumer direct
  
129,291
   
126,406
 
Consumer indirect
  
422,808
   
390,130
 
Total loans
 
$
2,931,385
  
$
2,873,961
 
Nonaccrual Loans Segregated by Class of Loans
Nonaccrual loans segregated by class of loans were as follows:

 (in thousands)
 
June 30
2016
  
December 31
2015
 
Commercial:
      
Commercial construction
 
$
2,902
  
$
3,402
 
Commercial secured by real estate
  
5,391
   
5,928
 
Commercial other
  
1,708
   
1,485
 
         
Residential:
        
Real estate construction
  
123
   
249
 
Real estate mortgage
  
6,070
   
5,206
 
Home equity
  
253
   
183
 
         
Consumer:
        
Consumer direct
  
0
   
110
 
Total nonaccrual loans
 
$
16,447
  
$
16,563
 
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, 2016 and December 31, 2015:
 
  
June 30, 2016
 
(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
 
$
19
  
$
146
  
$
2,748
  
$
2,913
  
$
66,100
  
$
69,013
  
$
30
 
Commercial secured by real estate
  
3,712
   
4,465
   
5,035
   
13,212
   
1,066,117
   
1,079,329
   
2,258
 
Equipment lease financing
  
0
   
0
   
0
   
0
   
7,353
   
7,353
   
0
 
Commercial other
  
441
   
516
   
1,233
   
2,190
   
364,783
   
366,973
   
27
 
Residential:
                            
Real estate construction
  
816
   
294
   
852
   
1,962
   
57,011
   
58,973
   
741
 
Real estate mortgage
  
1,505
   
4,470
   
9,024
   
14,999
   
693,461
   
708,460
   
4,643
 
Home equity
  
873
   
280
   
456
   
1,609
   
87,576
   
89,185
   
273
 
Consumer:
                            
Consumer direct
  
891
   
121
   
68
   
1,080
   
128,211
   
129,291
   
68
 
Consumer indirect
  
3,016
   
685
   
197
   
3,898
   
418,910
   
422,808
   
197
 
Total
 
$
11,273
  
$
10,977
  
$
19,613
  
$
41,863
  
$
2,889,522
  
$
2,931,385
  
$
8,237
 

  
December 31, 2015
 
(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
 
$
36
  
$
6
  
$
3,431
  
$
3,473
  
$
74,547
  
$
78,020
  
$
30
 
Commercial secured by real estate
  
2,947
   
622
   
7,923
   
11,492
   
1,041,427
   
1,052,919
   
3,757
 
Equipment lease financing
  
199
   
0
   
0
   
199
   
8,315
   
8,514
   
0
 
Commercial other
  
762
   
121
   
1,476
   
2,359
   
356,539
   
358,898
   
310
 
Residential:
                            
Real estate construction
  
443
   
62
   
291
   
796
   
60,954
   
61,750
   
55
 
Real estate mortgage
  
1,128
   
3,888
   
10,907
   
15,923
   
691,951
   
707,874
   
6,925
 
Home equity
  
527
   
148
   
580
   
1,255
   
88,195
   
89,450
   
448
 
Consumer:
                            
Consumer direct
  
835
   
479
   
126
   
1,440
   
124,966
   
126,406
   
126
 
Consumer indirect
  
2,133
   
814
   
395
   
3,342
   
386,788
   
390,130
   
395
 
Total
 
$
9,010
  
$
6,140
  
$
25,129
  
$
40,279
  
$
2,833,682
  
$
2,873,961
  
$
12,046
 

*90+ and Accruing are also included in 90+ Days Past Due column.
Credit Risk Profile of the Bank's Commercial Loan Portfolio Based on Rating Category and Payment Activity, Segregated by Class of Loans
The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by class of loans, as of June 30, 2016 and December 31, 2015:
 
 (in thousands)
 
Commercial Construction
  
Commercial Secured by Real Estate
  
Equipment Leases
  
Commercial Other
  
Total
 
June 30, 2016
               
Pass
 
$
56,071
  
$
970,732
  
$
6,332
  
$
315,491
  
$
1,348,626
 
Watch
  
3,979
   
66,592
   
0
   
33,511
   
104,082
 
OAEM
  
2,150
   
15,499
   
1,021
   
6,849
   
25,519
 
Substandard
  
6,120
   
25,789
   
0
   
10,017
   
41,926
 
Doubtful
  
693
   
717
   
0
   
1,105
   
2,515
 
Total
 
$
69,013
  
$
1,079,329
  
$
7,353
  
$
366,973
  
$
1,522,668
 
                     
December 31, 2015
                    
Pass
 
$
62,978
  
$
937,196
  
$
8,514
  
$
312,100
  
$
1,320,788
 
Watch
  
4,931
   
71,830
   
0
   
37,670
   
114,431
 
OAEM
  
2,206
   
13,765
   
0
   
963
   
16,934
 
Substandard
  
6,780
   
29,232
   
0
   
7,072
   
43,084
 
Doubtful
  
1,125
   
896
   
0
   
1,093
   
3,114
 
Total
 
$
78,020
  
$
1,052,919
  
$
8,514
  
$
358,898
  
$
1,498,351
 
Credit Risk Profile of Residential Real Estate and Consumer Loan Portfolio Based on Performing and Nonperforming Status Segregated by Class
The following tables present the credit risk profile of the CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of June 30, 2016 and December 31, 2015:

(in thousands)
 
Real Estate Construction
  
Real Estate Mortgage
  
Home Equity
  
Consumer Direct
  
Consumer
Indirect
  
Total
 
June 30, 2016
                  
Performing
 
$
58,109
  
$
697,747
  
$
88,659
  
$
129,223
  
$
422,611
  
$
1,396,349
 
Nonperforming (1)
  
864
   
10,713
   
526
   
68
   
197
   
12,368
 
Total
 
$
58,973
  
$
708,460
  
$
89,185
  
$
129,291
  
$
422,808
  
$
1,408,717
 
                         
December 31, 2015
                        
Performing
 
$
61,446
  
$
695,743
  
$
88,819
  
$
126,170
  
$
389,735
  
$
1,361,913
 
Nonperforming (1)
  
304
   
12,131
   
631
   
236
   
395
   
13,697
 
Total
 
$
61,750
  
$
707,874
  
$
89,450
  
$
126,406
  
$
390,130
  
$
1,375,610
 

(1)  A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual.
Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans
The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended June 30, 2016, December 31, 2015, and June 30, 2015:

  
June 30, 2016
 
(in thousands)
 
Recorded Balance
  
Unpaid Contractual Principal Balance
  
Specific Allowance
 
Loans without a specific valuation allowance:
         
Commercial construction
 
$
4,455
  
$
4,741
  
$
0
 
Commercial secured by real estate
  
30,181
   
30,816
   
0
 
Commercial other
  
11,328
   
13,113
   
0
 
Real estate mortgage
  
1,761
   
1,761
   
0
 
             
Loans with a specific valuation allowance:
            
Commercial construction
  
2,207
   
2,209
   
287
 
Commercial secured by real estate
  
2,667
   
3,721
   
720
 
Commercial other
  
670
   
683
   
330
 
             
Totals:
            
Commercial construction
  
6,662
   
6,950
   
287
 
Commercial secured by real estate
  
32,848
   
34,537
   
720
 
Commercial other
  
11,998
   
13,796
   
330
 
Real estate mortgage
  
1,761
   
1,761
   
0
 
Total
 
$
53,269
  
$
57,044
  
$
1,337
 

  
Three Months Ended
  
Six Months Ended
 
  
June 30, 2016
  
June 30, 2016
 
(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
 
$
4,730
  
$
56
  
$
4,526
  
$
105
 
Commercial secured by real estate
  
30,339
   
387
   
31,426
   
774
 
Commercial other
  
11,446
   
169
   
11,597
   
317
 
Real estate mortgage
  
1,764
   
14
   
1,893
   
30
 
                 
Loans with a specific valuation allowance:
                
Commercial construction
  
2,372
   
0
   
2,887
   
0
 
Commercial secured by real estate
  
3,598
   
0
   
4,163
   
18
 
Commercial other
  
667
   
0
   
693
   
0
 
                 
Totals:
                
Commercial construction
  
7,102
   
56
   
7,413
   
105
 
Commercial secured by real estate
  
33,937
   
387
   
35,589
   
792
 
Commercial other
  
12,113
   
169
   
12,290
   
317
 
Real estate mortgage
  
1,764
   
14
   
1,893
   
30
 
Total
 
$
54,916
  
$
626
  
$
57,185
  
$
1,244
 
 
  
December 31, 2015
 
(in thousands)
 
Recorded Balance
  
Unpaid Contractual Principal Balance
  
Specific Allowance
  
Average Investment in Impaired Loans
  
*Interest Income Recognized
 
Loans without a specific valuation allowance:
               
Commercial construction
 
$
2,861
  
$
2,862
  
$
0
  
$
4,574
  
$
200
 
Commercial secured by real estate
  
30,761
   
32,166
   
0
   
30,605
   
1,378
 
Commercial other
  
7,500
   
9,148
   
0
   
8,802
   
316
 
Real estate mortgage
  
1,744
   
1,744
   
0
   
1,179
   
50
 
                     
Loans with a specific valuation allowance:
                    
Commercial construction
  
3,402
   
3,402
   
831
   
3,631
   
0
 
Commercial secured by real estate
  
2,660
   
2,768
   
1,227
   
2,349
   
7
 
Commercial other
  
960
   
1,153
   
403
   
836
   
1
 
                     
Totals:
                    
Commercial construction
  
6,263
   
6,264
   
831
   
8,205
   
200
 
Commercial secured by real estate
  
33,421
   
34,934
   
1,227
   
32,954
   
1,385
 
Commercial other
  
8,460
   
10,301
   
403
   
9,638
   
317
 
Real estate mortgage
  
1,744
   
1,744
   
0
   
1,179
   
50
 
Total
 
$
49,888
  
$
53,243
  
$
2,461
  
$
51,976
  
$
1,952
 

  
June 30, 2015
 
(in thousands)
 
Recorded Balance
  
Unpaid Contractual Principal Balance
  
Specific Allowance
 
Loans without a specific valuation allowance:
         
Commercial construction
 
$
5,211
  
$
5,211
  
$
0
 
Commercial secured by real estate
  
29,951
   
31,340
   
0
 
Commercial other
  
7,262
   
8,898
   
0
 
Real estate mortgage
  
1,185
   
1,185
   
0
 
             
Loans with a specific valuation allowance:
            
Commercial construction
  
3,500
   
3,500
   
719
 
Commercial secured by real estate
  
2,377
   
2,560
   
529
 
Commercial other
  
687
   
809
   
215
 
             
Totals:
            
Commercial construction
  
8,711
   
8,711
   
719
 
Commercial secured by real estate
  
32,328
   
33,900
   
529
 
Commercial other
  
7,949
   
9,707
   
215
 
Real estate mortgage
  
1,185
   
1,185
   
0
 
Total
 
$
50,173
  
$
53,503
  
$
1,463
 
 
  
Three Months Ended
  
Six Months Ended
 
  
June 30, 2015
  
June 30, 2015
 
(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
 
$
5,266
  
$
68
  
$
5,282
  
$
119
 
Commercial secured by real estate
  
30,366
   
359
   
30,179
   
669
 
Commercial other
  
7,367
   
67
   
10,118
   
128
 
Real estate mortgage
  
1,186
   
12
   
1,044
   
24
 
                 
Loans with a specific valuation allowance:
                
Commercial construction
  
3,796
   
0
   
3,846
   
0
 
Commercial secured by real estate
  
2,452
   
0
   
2,946
   
1
 
Commercial other
  
729
   
0
   
794
   
0
 
                 
Totals:
                
Commercial construction
  
9,062
   
68
   
9,128
   
119
 
Commercial secured by real estate
  
32,818
   
359
   
33,125
   
670
 
Commercial other
  
8,096
   
67
   
10,912
   
128
 
Real estate mortgage
  
1,186
   
12
   
1,044
   
24
 
Total
 
$
51,162
  
$
506
  
$
54,209
  
$
941
 

*Cash basis interest is substantially the same as interest income recognized.
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, 2016 and 2015 and the year ended December 31, 2015:
 
  
Three Months Ended
June 30, 2016
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
4
  
$
120
  
$
0
  
$
0
  
$
120
 
Commercial secured by real estate
  
8
   
1,611
   
0
   
536
   
2,147
 
Commercial other
  
6
   
440
   
0
   
0
   
440
 
Total troubled debt restructurings
  
18
  
$
2,171
  
$
0
  
$
536
  
$
2,707
 

  
Six Months Ended
June 30, 2016
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
5
  
$
1,408
  
$
0
  
$
0
  
$
1,408
 
Commercial secured by real estate
  
21
  
 
5,609
  
 
0
  
 
580
  
 
6,189
 
Commercial other
  
16
   
5,041
   
0
   
0
   
5,041
 
Residential:
                    
Real estate mortgage
  
1
   
0
   
0
   
280
   
280
 
Total troubled debt restructurings
  
43
  
$
12,058
  
$
0
  
$
860
  
$
12,918
 

  
Three Months Ended
June 30, 2015
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial secured by real estate
  
4
  
$
317
  
$
0
  
$
0
  
$
317
 
Commercial other
  
1
   
18
   
0
   
0
   
18
 
Residential:
                    
Real estate mortgage
  
1
   
0
   
0
   
290
   
290
 
Total troubled debt restructurings
  
6
  
$
335
  
$
0
  
$
290
  
$
625
 
 
  
Six Months Ended
June 30, 2015
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial secured by real estate
  
8
  
$
607
  
$
0
  
$
0
  
$
607
 
Commercial other
  
3
   
54
   
0
   
0
   
54
 
Residential:
                    
Real estate mortgage
  
1
   
0
   
0
   
290
   
290
 
Total troubled debt restructurings
  
12
  
$
661
  
$
0
  
$
290
  
$
951
 

  
Year Ended
December 31, 2015
 
(in thousands)
 
Number of Loans
  
Term Modification
  
Rate Modification
  
Combination
  
Post-Modification Outstanding Balance
 
Commercial:
               
Commercial construction
  
3
  
$
428
  
$
0
  
$
0
  
$
428
 
Commercial secured by real estate
  
21
   
4,244
   
0
   
1,760
   
6,004
 
Commercial other
  
7
   
3,847
   
0
   
0
   
3,847
 
Residential:
                    
Real estate mortgage
  
3
   
0
   
0
   
848
   
848
 
Total troubled debt restructurings
  
34
  
$
8,519
  
$
0
  
$
2,608
  
$
11,127
 
Summary of Defaulted Restructured Loans
Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted.  CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.

 (in thousands)
 
Three Months Ended
June 30, 2016
  
Six Months Ended
June 30, 2016
 
  
Number of Loans
  
Recorded Balance
  
Number of Loans
  
Recorded Balance
 
Commercial:
            
Commercial secured by real estate
  
0
  
$
0
   
1
  
$
510
 
Commercial other
  
0
   
0
   
1
   
358
 
Total defaulted restructured loans
  
0
  
$
0
   
2
  
$
868
 
 
 (in thousands)
 
Three Months Ended
June 30, 2015
  
Six Months Ended
June 30, 2015
 
  
Number of Loans
  
Recorded Balance
  
Number of Loans
  
Recorded Balance
 
Commercial:
            
Commercial secured by real estate
  
1
  
$
98
   
2
  
$
359
 
Residential:
                
Real estate mortgage
  
1
   
290
   
1
   
290
 
Total defaulted restructured loans
  
2
  
$
388
   
3
  
$
649