Loans (Tables)

12 Months Ended

Dec. 31, 2016

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)	December 31 2016		December 31 2015
Commercial construction	$	66,998	$	78,020
Commercial secured by real estate		1,085,428		1,052,919
Equipment lease financing		5,512		8,514
Commercial other		350,159		358,898
Real estate construction		57,966		61,750
Real estate mortgage		702,969		707,874
Home equity		91,511		89,450
Consumer direct		133,093		126,406
Consumer indirect		444,735		390,130
Total loans	$	2,938,371	$	2,873,961

Nonaccrual Loans Segregated by Class of Loans

Nonaccrual loans segregated by class of loans were as follows:

(in thousands)	December 31 2016		December 31 2015
Commercial:
Commercial construction	$	1,912	$	3,402
Commercial secured by real estate		6,326		5,928
Commercial other		1,559		1,485

Residential:
Real estate construction		11		249
Real estate mortgage		6,260		5,206
Home equity		555		183
Consumer:
Consumer direct		0		110
Total nonaccrual loans	$	16,623	$	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 December 31, 2016 and 2015:

	December 31, 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	$	22	$	0	$	1,940	$	1,962	$	65,036	$	66,998	$	28
Commercial secured by real estate		2,033		478		8,847		11,358		1,074,070		1,085,428		3,015
Equipment lease financing		0		0		0		0		5,512		5,512		0
Commercial other		997		122		1,235		2,354		347,805		350,159		141
Residential:
Real estate construction		707		42		152		901		57,065		57,966		152
Real estate mortgage		1,493		5,278		10,695		17,466		685,503		702,969		6,295
Home equity		829		288		905		2,022		89,489		91,511		467
Consumer:
Consumer direct		873		265		68		1,206		131,887		133,093		68
Consumer indirect		3,288		851		681		4,820		439,915		444,735		681
Total	$	10,242	$	7,324	$	24,523	$	42,089	$	2,896,282	$	2,938,371	$	10,847

	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 December 31, 2016 and 2015:

(in thousands)	Commercial Construction		Commercial Secured by Real Estate		Equipment Leases		Commercial Other		Total
December 31, 2016
Pass	$	55,315	$	975,383	$	5,206	$	299,301	$	1,335,205
Watch		3,366		51,932		137		32,780		88,215
OAEM		2,535		25,772		169		7,913		36,389
Substandard		5,592		31,945		0		9,599		47,136
Doubtful		190		396		0		566		1,152
Total	$	66,998	$	1,085,428	$	5,512	$	350,159	$	1,508,097

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 CTBI’s residential real estate and consumer loan portfolios based on performing or nonperforming status, segregated by class, as of December 31, 2016 and 2015:

(in thousands)	Real Estate Construction		Real Estate Mortgage		Home Equity		Consumer Direct		Consumer Indirect		Total
December 31, 2016
Performing	$	57,803	$	690,414	$	90,489	$	133,025	$	444,054	$	1,415,785
Nonperforming (1)		163		12,555		1,022		68		681		14,489
Total	$	57,966	$	702,969	$	91,511	$	133,093	$	444,735	$	1,430,274

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 or on nonaccrual.

Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans

The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the years ended December 31, 2016, 2015, and 2014:

	December 31, 2016
(in thousands)	Recorded Balance		Unpaid Contractual Principal Balance		Specific Allowance		Average Investment in Impaired Loans		*Interest Income Recognized
Loans without a specific valuation allowance:
Commercial construction	$	4,102	$	4,123	$	0	$	4,367	$	218
Commercial secured by real estate		29,025		29,594		0		31,136		1,609
Commercial other		11,215		13,155		0		11,561		632
Real estate mortgage		1,483		1,483		0		1,691		52

Loans with a specific valuation allowance:
Commercial construction		1,507		1,509		213		2,290		0
Commercial secured by real estate		4,731		5,885		1,035		4,151		19
Commercial other		139		139		65		483		0

Totals:
Commercial construction		5,609		5,632		213		6,657		218
Commercial secured by real estate		33,756		35,479		1,035		35,287		1,628
Commercial other		11,354		13,294		65		12,044		632
Real estate mortgage		1,483		1,483		0		1,691		52
Total	$	52,202	$	55,888	$	1,313	$	55,679	$	2,530

	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

	December 31, 2014
(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	$	5,653	$	5,654	$	0	$	5,415	$	205
Commercial secured by real estate		31,639		33,268		0		34,650		1,180
Commercial other		13,069		14,597		0		15,663		783
Real estate mortgage		1,277		1,277		0		1,507		53

Loans with a specific valuation allowance:
Commercial construction		3,974		3,974		734		4,216		0
Commercial secured by real estate		2,718		2,876		827		4,376		11
Commercial other		738		862		181		531		1

Totals:
Commercial construction		9,627		9,628		734		9,631		205
Commercial secured by real estate		34,357		36,144		827		39,026		1,191
Commercial other		13,807		15,459		181		16,194		784
Real estate mortgage		1,277		1,277		0		1,507		53
Total	$	59,068	$	62,508	$	1,742	$	66,358	$	2,233

*Cash basis interest is substantially the same as interest income recognized.

Troubled Debt Restructurings

Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the years ended December 31, 2016 and 2015:

	Year Ended December 31, 2016
(in thousands)	Number of Loans		Term Modification		Rate Modification		Combination		Post-Modification Outstanding Balance
Commercial:
Commercial construction		1	$	1,288	$	0	$	0	$	1,288
Commercial secured by real estate		27		8,827		0		581		9,408
Commercial other		14		5,088		0		87		5,175
Residential:
Real estate mortgage		1		0		0		281		281
Total troubled debt restructurings		43	$	15,203	$	0	$	949	$	16,152

	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)	Year Ended December 31, 2016
	Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		1	$	67
Commercial other		1		12
Total defaulted restructured loans		2	$	79

(in thousands)	Year Ended December 31, 2015
	Number of Loans		Recorded Balance
Commercial:
Commercial secured by real estate		3	$	114
Total defaulted restructured loans		3	$	114