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Loans (Tables)
 3 Months Ended
Mar. 31, 2020
Loans [Abstract]  
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans

Major classifications of loans, net of unearned income, deferred loan origination costs and fees, and net premiums on acquired loans, are summarized as follows:

(in thousands)
  
March 31, 2020
  
Hotel/motel
  
$
248,717
  
Commercial real estate residential
    
262,065
  
Commercial real estate nonresidential
    
771,687
  
Dealer floorplans
    
80,828
  
Commercial other
    
313,646
  
Commercial loans
    
1,676,943
  
         
Real estate mortgage
    
798,891
  
Home equity lines
    
111,837
  
Residential loans
    
910,728
  
         
Consumer direct
    
145,403
  
Consumer indirect
    
554,467
  
Consumer loans
    
699,870
  
         
Loans and lease financing
  
$
3,287,541
  

(in thousands)
  
December 31, 2019
  
Commercial construction
  
$
104,809
  
Commercial secured by real estate
    
1,169,975
  
Equipment lease financing
    
481
  
Commercial other
    
389,683
  
Real estate construction
    
63,350
  
Real estate mortgage
    
733,003
  
Home equity
    
111,894
  
Consumer direct
    
148,051
  
Consumer indirect
    
527,418
  
Total loans
  
$
3,248,664
  
Activity in Allowance for Credit Losses and Allowance for Loan and Lease Losses

The following tables present the balance in the allowance for credit losses (“ACL”) for the period ended March 31, 2020 and the balance in the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 and March 31, 2019:

  
March 31, 2020
  
(in thousands)
  
Hotel/
Motel
    
Commercial
Real Estate
Residential
    
Commercial
Real Estate
Nonresidential
    
Dealer
Floorplans
    
Commercial
Other
    
Real Estate
Mortgage
    
Home
Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
ACL
                                                            
Beginning balance, prior to adoption of ASC 326
  
$
3,371
    
$
3,439
    
$
8,515
    
$
802
    
$
5,556
    
$
4,604
    
$
897
    
$
1,711
    
$
6,201
    
$
35,096
  
Impact of adoption of ASC 326
    
170
      
(721
)
    
119
      
820
      
(391
)
    
1,893
      
(75
)
    
(40
)
    
1,265
      
3,040
  
Provision charged to expense
    
2,381
      
1,337
      
2,984
      
91
      
1,434
      
1,099
      
67
      
739
      
2,575
      
12,707
  
Losses charged off
    
0
      
(51
)
    
(59
)
    
0
      
(359
)
    
(60
)
    
0
      
(369
)
    
(1,517
)
    
(2,415
)
Recoveries
    
0
      
8
      
4
      
0
      
169
      
7
      
1
      
122
      
706
      
1,017
  
Ending balance
  
$
5,922
    
$
4,012
    
$
11,563
    
$
1,713
    
$
6,409
    
$
7,543
    
$
890
    
$
2,163
    
$
9,230
    
$
49,445
  


 
December 31, 2019
  
   
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Lease
Financing
    
Commercial
Other
    
Real Estate
Construction
    
Real Estate
Mortgage
    
Home
Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
ALLL
                                                            
Balance, beginning of year
  
$
862
    
$
14,531
    
$
12
    
$
4,993
    
$
512
    
$
4,433
    
$
841
    
$
1,883
    
$
7,841
    
$
35,908
  
Provision charged to expense
    
497
      
(137
)
    
(8
)
    
3,032
      
(40
)
    
414
      
172
      
528
      
361
      
4,819
  
Losses charged off
    
(72
)
    
(727
)
    
0
      
(2,179
)
    
(100
)
    
(767
)
    
(139
)
    
(1,100
)
    
(4,652
)
    
(9,736
)
Recoveries
    
12
      
358
      
0
      
509
      
0
      
152
      
23
      
400
      
2,651
      
4,105
  
Balance, end of year
  
$
1,299
    
$
14,025
    
$
4
    
$
6,355
    
$
372
    
$
4,232
    
$
897
    
$
1,711
    
$
6,201
    
$
35,096
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
99
    
$
227
    
$
0
    
$
886
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
1,212
  
Collectively evaluated for impairment
  
$
1,200
    
$
13,798
    
$
4
    
$
5,469
    
$
372
    
$
4,232
    
$
897
    
$
1,711
    
$
6,201
    
$
33,884
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
3,010
    
$
41,379
    
$
0
    
$
11,073
    
$
0
    
$
2,309
    
$
0
    
$
0
    
$
0
    
$
57,771
  
Collectively evaluated for impairment
  
$
101,799
    
$
1,128,596
    
$
481
    
$
378,610
    
$
63,350
    
$
730,694
    
$
111,894
    
$
148,051
    
$
527,418
    
$
3,190,893
  


 
March 31, 2019
  
(in thousands)
  
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Lease
Financing
    
Commercial
Other
    
Real Estate
Construction
    
Real Estate
Mortgage
    
Home
Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
Allowance for loan losses
                                                            
Beginning balance
  
$
862
    
$
14,531
    
$
12
    
$
4,993
    
$
512
    
$
4,433
    
$
841
    
$
1,883
    
$
7,841
    
$
35,908
  
Provision charged to expense
    
38
      
287
      
(2
)
    
382
      
(116
)
    
(278
)
    
84
      
(119
)
    
(86
)
    
190
  
Losses charged off
    
0
      
(35
)
    
0
      
(242
)
    
0
      
(120
)
    
(25
)
    
(246
)
    
(1,387
)
    
(2,055
)
Recoveries
    
3
      
17
      
0
      
84
      
0
      
18
      
1
      
117
      
721
      
961
  
Ending balance
  
$
903
    
$
14,800
    
$
10
    
$
5,217
    
$
396
    
$
4,053
    
$
901
    
$
1,635
    
$
7,089
    
$
35,004
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
164
    
$
847
    
$
0
    
$
620
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
1,631
  
Collectively evaluated for impairment
  
$
739
    
$
13,953
    
$
10
    
$
4,597
    
$
396
    
$
4,053
    
$
901
    
$
1,635
    
$
7,089
    
$
33,373
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
3,632
    
$
34,329
    
$
0
    
$
10,057
    
$
0
    
$
2,337
    
$
0
    
$
0
    
$
0
    
$
50,355
  
Collectively evaluated for impairment
  
$
71,732
    
$
1,148,475
    
$
1,354
    
$
378,003
    
$
54,013
    
$
717,955
    
$
108,018
    
$
141,855
    
$
517,972
    
$
3,139,377
  
Nonaccrual Loans Segregated by Class of Loans

Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy.  Per ASC 326, nonaccrual loans segregated by class of loans and loans 90 days past due and still accruing segregated by class of loans were as follows:

  
March 31, 2020
  
 (in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loan
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Hotel/motel
  
$
0
    
$
0
    
$
133
    
$
133
  
Commercial real estate residential
    
206
      
1,312
      
4,636
      
6,154
  
Commercial real estate nonresidential
    
0
      
3,404
      
7,128
      
10,532
  
Dealer floorplans
    
0
      
56
      
0
      
56
  
Commercial other
    
0
      
6,316
      
479
      
6,795
  
Total commercial loans
    
206
      
11,088
      
12,376
      
23,670
  
                                 
Real estate mortgage
    
0
      
5,286
      
4,730
      
10,016
  
Home equity lines
    
0
      
753
      
435
      
1,188
  
Total residential loans
    
0
      
6,039
      
5,165
      
11,204
  
                                 
Consumer direct
    
0
      
0
      
38
      
38
  
Consumer indirect
    
0
      
0
      
465
      
465
  
Total consumer loans
    
0
      
0
      
503
      
503
  
                                 
Loans and lease financing
  
$
206
    
$
17,127
    
$
18,044
    
$
35,377
  

(in thousands)
  
December 31,
2019
  
Commercial:
      
Commercial construction
  
$
230
  
Commercial secured by real estate
    
3,759
  
Commercial other
    
3,839
  
         
Residential:
        
Real estate construction
    
634
  
Real estate mortgage
    
4,821
  
Home equity
    
716
  
Total nonaccrual loans
  
$
13,999
  
Bank's Loan Portfolio Aging Analysis, Segregated by Class

The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of March 31, 2020 and December 31, 2019:

March 31, 2020
  
(in thousands)
  
30-59 Days
Past Due
    
60-89
Days Past
Due
    
90+ Days
Past Due
    
Total Past
Due
    
Current
    
Total
Loans
  
Hotel/motel
  
$
0
    
$
0
    
$
133
    
$
133
    
$
248,584
    
$
248,717
  
Commercial real estate residential
    
1,514
      
1,412
      
6,128
      
9,054
      
253,011
      
262,065
  
Commercial real estate nonresidential
    
2,257
      
4,570
      
9,924
      
16,751
      
754,936
      
771,687
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
80,828
      
80,828
  
Commercial other
    
1,683
      
686
      
6,594
      
8,963
      
304,683
      
313,646
  
Total commercial loans
    
5,454
      
6,668
      
22,779
      
34,901
      
1,642,042
      
1,676,943
  
                                                 
Real estate mortgage
    
2,561
      
3,154
      
7,901
      
13,616
      
785,275
      
798,891
  
Home equity lines
    
831
      
156
      
733
      
1,720
      
110,117
      
111,837
  
Total residential loans
    
3,392
      
3,310
      
8,634
      
15,336
      
895,392
      
910,728
  
                                                 
Consumer direct
    
735
      
589
      
38
      
1,362
      
144,041
      
145,403
  
Consumer indirect
    
4,153
      
816
      
465
      
5,434
      
549,033
      
554,467
  
Total consumer loans
    
4,888
      
1,405
      
503
      
6,796
      
693,074
      
699,870
  
                                                 
Loans and lease financing
  
$
13,734
    
$
11,383
    
$
31,916
    
$
57,033
    
$
3,230,508
    
$
3,287,541
  

 
December 31, 2019
  
(in thousands)
  
30-59
Days Past
Due
    
60-89
Days Past
Due
    
90+ Days
Past Due
    
Total Past
Due
    
Current
    
Total
Loans
    
90+ and
Accruing*
  
Commercial:
                                          
Commercial construction
  
$
118
    
$
0
    
$
467
    
$
585
    
$
104,224
    
$
104,809
    
$
237
  
Commercial secured by real estate
    
2,734
      
5,969
      
12,366
      
21,069
      
1,148,906
      
1,169,975
      
8,820
  
Equipment lease financing
    
0
      
0
      
0
      
0
      
481
      
481
      
0
  
Commercial other
    
880
      
284
      
6,267
      
7,431
      
382,252
      
389,683
      
2,586
  
Residential:
                                                        
Real estate construction
    
117
      
52
      
634
      
803
      
62,547
      
63,350
      
0
  
Real estate mortgage
    
774
      
5,376
      
10,320
      
16,470
      
716,533
      
733,003
      
7,088
  
Home equity
    
1,084
      
412
      
736
      
2,232
      
109,662
      
111,894
      
344
  
Consumer:
                                                        
Consumer direct
    
945
      
230
      
97
      
1,272
      
146,779
      
148,051
      
97
  
Consumer indirect
    
4,037
      
909
      
447
      
5,393
      
522,025
      
527,418
      
448
  
Loans and lease financing
  
$
10,689
    
$
13,232
    
$
31,334
    
$
55,255
    
$
3,193,409
    
$
3,248,664
    
$
19,620
  

*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 and based on last credit decision or year of origination:

  
Term Loans Amortized Cost Basis by Origination Year
  
(in thousands)
  
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Revolving
Loans
    
Total
  
Hotel/motel
                                                
Risk rating:
                                                
Pass
  
$
8,621
    
$
71,038
    
$
41,059
    
$
53,262
    
$
23,743
    
$
35,479
    
$
74
    
$
233,276
  
Special mention
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
132
      
1,113
      
8,999
      
5,197
      
0
      
15,441
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
  
$
8,621
    
$
71,038
    
$
41,191
    
$
54,375
    
$
32,742
    
$
40,676
    
$
74
    
$
248,717
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
  
$
14,777
    
$
49,003
    
$
35,510
    
$
25,537
    
$
34,625
    
$
69,673
    
$
12,213
    
$
241,338
  
Special mention
    
0
      
3,102
      
633
      
967
      
451
      
61
      
0
      
5,214
  
Substandard
    
446
      
2,282
      
3,540
      
4,169
      
1,200
      
3,876
      
0
      
15,513
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
  
$
15,223
    
$
54,387
    
$
39,683
    
$
30,673
    
$
36,276
    
$
73,610
    
$
12,213
    
$
262,065
  
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
  
$
35,164
    
$
128,993
    
$
99,550
    
$
102,018
    
$
113,817
    
$
220,958
    
$
30,277
    
$
730,777
  
Special mention
    
0
      
417
      
71
      
5
      
0
      
3,303
      
20
      
3,816
  
Substandard
    
1,737
      
7,125
      
1,742
      
4,008
      
1,989
      
20,003
      
459
      
37,063
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
31
      
0
      
31
  
Total commercial real estate nonresidential
  
$
36,901
    
$
136,535
    
$
101,363
    
$
106,031
    
$
115,806
    
$
244,295
    
$
30,756
    
$
771,687
  
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
80,772
    
$
80,772
  
Special mention
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
56
      
56
  
Total dealer floorplans
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
80,828
    
$
80,828
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
  
$
44,077
    
$
49,654
    
$
40,094
    
$
20,059
    
$
10,245
    
$
30,174
    
$
102,022
    
$
296,325
  
Special mention
    
0
      
0
      
5,062
      
285
      
480
      
51
      
0
      
5,878
  
Substandard
    
1,840
      
4,413
      
308
      
501
      
3,451
      
837
      
93
      
11,443
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
  
$
45,917
    
$
54,067
    
$
45,464
    
$
20,845
    
$
14,176
    
$
31,062
    
$
102,115
    
$
313,646
  
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
  
$
102,639
    
$
298,688
    
$
216,213
    
$
200,876
    
$
182,430
    
$
356,284
    
$
225,358
    
$
1,582,488
  
Special mention
    
0
      
3,519
      
5,766
      
1,257
      
931
      
3,415
      
20
      
14,908
  
Substandard
    
4,023
      
13,820
      
5,722
      
9,791
      
15,639
      
29,913
      
552
      
79,460
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
31
      
56
      
87
  
Total commercial loans
  
$
106,662
    
$
316,027
    
$
227,701
    
$
211,924
    
$
199,000
    
$
389,643
    
$
225,986
    
$
1,676,943
  


(in thousands)
  
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Leases
    
Commercial
Other
    
Total
  
December 31, 2019
                              
Pass
  
$
98,102
    
$
1,036,573
    
$
481
    
$
358,203
    
$
1,493,359
  
Watch
    
3,595
      
54,338
      
0
      
13,618
      
71,551
  
OAEM
    
254
      
27,964
      
0
      
6,065
      
34,283
  
Substandard
    
2,858
      
51,068
      
0
      
11,737
      
65,663
  
Doubtful
    
0
      
32
      
0
      
60
      
92
  
Total
  
$
104,809
    
$
1,169,975
    
$
481
    
$
389,683
    
$
1,664,948
  
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:

  
Term Loans Amortized Cost Basis by Origination Year
  
   
2020
    
2019
    
2018
    
2017
    
2016
    
Prior
    
Revolving
Loans
    
Total
  
Home equity lines
                                                
Performing
  
$
0
    
$
86
    
$
0
    
$
0
    
$
8
    
$
11,571
    
$
98,984
    
$
110,649
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
763
      
425
      
1,188
  
Total home equity lines
  
$
0
    
$
86
    
$
0
    
$
0
    
$
8
    
$
12,334
    
$
99,409
    
$
111,837
  
                                                                 
Mortgage loans
                                                                
Performing
  
$
35,151
    
$
161,387
    
$
94,854
    
$
88,911
    
$
70,449
    
$
338,123
    
$
0
    
$
788,875
  
Nonperforming
    
0
      
348
      
596
      
240
      
509
      
8,323
      
0
      
10,016
  
Total mortgage loans
  
$
35,151
    
$
161,735
    
$
95,450
    
$
89,151
    
$
70,958
    
$
346,446
    
$
0
    
$
798,891
  
                                                                 
Residential loans
                                                                
Performing
  
$
35,151
    
$
161,473
    
$
94,854
    
$
88,911
    
$
70,457
    
$
349,694
    
$
98,984
    
$
899,524
  
Nonperforming
    
0
      
348
      
596
      
240
      
509
      
9,086
      
425
      
11,204
  
Total residential loans
  
$
35,151
    
$
161,821
    
$
95,450
    
$
89,151
    
$
70,966
    
$
358,780
    
$
99,409
    
$
910,728
  
                                                                 
Consumer direct loans
                                                                
Performing
  
$
15,792
    
$
54,032
    
$
29,905
    
$
16,359
    
$
10,196
    
$
19,081
    
$
0
    
$
145,365
  
Nonperforming
    
0
      
6
      
27
      
4
      
1
      
0
      
0
      
38
  
Total consumer direct loans
  
$
15,792
    
$
54,038
    
$
29,932
    
$
16,363
    
$
10,197
    
$
19,081
    
$
0
    
$
145,403
  
                                                                 
Consumer indirect loans
                                                                
Performing
  
$
85,017
    
$
179,367
    
$
145,511
    
$
80,000
    
$
42,101
    
$
22,006
    
$
0
    
$
554,002
  
Nonperforming
    
0
      
190
      
93
      
105
      
35
      
42
      
0
      
465
  
Total consumer indirect loans
  
$
85,017
    
$
179,557
    
$
145,604
    
$
80,105
    
$
42,136
    
$
22,048
    
$
0
    
$
554,467
  
                                                                 
Consumer loans
                                                                
Performing
  
$
100,809
    
$
233,399
    
$
175,416
    
$
96,359
    
$
52,297
    
$
41,087
    
$
0
    
$
699,367
  
Nonperforming
    
0
      
196
      
120
      
109
      
36
      
42
      
0
      
503
  
Total consumer loans
  
$
100,809
    
$
233,595
    
$
175,536
    
$
96,468
    
$
52,333
    
$
41,129
    
$
0
    
$
699,870
  


(in thousands)
  
Real Estate
Construction
    
Real Estate
Mortgage
    
Home Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
December 31, 2019
                                    
Performing
  
$
62,716
    
$
721,094
    
$
110,834
    
$
147,954
    
$
526,970
    
$
1,569,568
  
Nonperforming
    
634
      
11,909
      
1,060
      
97
      
448
      
14,148
  
Total
  
$
63,350
    
$
733,003
    
$
111,894
    
$
148,051
    
$
527,418
    
$
1,583,716
  
Collateral Dependent Loans and Loans With/Without Specific Valuation Allowance

In accordance with ASC 326-20-30-2, if a loan does not share risk characteristics with other pooled loans in determining the allowance for credit losses, the loan shall be evaluated for expected credit losses on an individual basis. Of the loans that CTBI has individually evaluated, the loans listed below by segment are those that are collateral dependent:

  
March 31, 2020
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
3
    
$
14,712
    
$
250
  
Commercial real estate residential
    
7
      
5,125
      
92
  
Commercial real estate nonresidential
    
16
      
25,296
      
720
  
Commercial other
    
5
      
9,569
      
957
  
Total collateral dependent loans
    
31
    
$
54,702
    
$
2,019
  


The hotel/motel, commercial real estate residential, and commercial real estate nonresidential segments are all collateralized with real estate.  The five loans listed in the commercial other segment are collateralized by various chattel and real estate collateral with $5.1 million collateralized by a leasehold mortgage and assignment of lease on commercial property as well as furniture, fixtures, and equipment of the leasehold property, $4.1 million primarily collateralized by underground coal mining equipment and junior real estate liens, and the remaining $0.4 million collateralized by a mix of commercial real estate and liens on furniture, fixtures, and equipment.


  
December 31, 2019
  
(in thousands)
  
Recorded
Balance
    
Unpaid
Contractual
Principal
Balance
    
Specific
Allowance
    
Average
Investment
in
Impaired
Loans
    
*Interest
Income
Recognized
  
Loans without a specific valuation allowance:
                              
Commercial construction
  
$
2,836
    
$
2,837
    
$
0
    
$
3,234
    
$
170
  
Commercial secured by real estate
    
40,346
      
41,557
      
0
      
36,976
      
1,601
  
Commercial other
    
7,829
      
9,489
      
0
      
9,889
      
460
  
Real estate mortgage
    
2,309
      
2,309
      
0
      
2,385
      
85
  
                                         
Loans with a specific valuation allowance:
                                        
Commercial construction
    
174
      
174
      
99
      
215
      
11
  
Commercial secured by real estate
    
1,033
      
2,176
      
227
      
1,678
      
15
  
Commercial other
    
3,244
      
3,244
      
886
      
1,323
      
29
  
                                         
Totals:
                                        
Commercial construction
    
3,010
      
3,011
      
99
      
3,449
      
181
  
Commercial secured by real estate
    
41,379
      
43,733
      
227
      
38,654
      
1,616
  
Commercial other
    
11,073
      
12,733
      
886
      
11,212
      
489
  
Real estate mortgage
    
2,309
      
2,309
      
0
      
2,385
      
85
  
Total
  
$
57,771
    
$
61,786
    
$
1,212
    
$
55,700
    
$
2,371
  

 
March 31, 2019
  
(in thousands)
  
Recorded
Balance
    
Unpaid
Contractual
Principal
Balance
    
Specific
Allowance
    
Average
Investment
in
Impaired
Loans
    
*Interest
Income
Recognized
  
Loans without a specific valuation allowance:
                              
Commercial construction
  
$
3,308
    
$
3,308
    
$
0
    
$
3,655
    
$
46
  
Commercial secured by real estate
    
32,407
      
34,098
      
0
      
32,811
      
347
  
Commercial other
    
8,903
      
10,598
      
0
      
8,866
      
139
  
Real estate construction
    
0
      
0
      
0
      
0
      
0
  
Real estate mortgage
    
2,337
      
2,337
      
0
      
2,329
      
19
  
                                         
Loans with a specific valuation allowance:
                                        
Commercial construction
    
324
      
324
      
164
      
324
      
3
  
Commercial secured by real estate
    
1,922
      
3,060
      
847
      
1,966
      
10
  
Commercial other
    
1,154
      
1,154
      
620
      
1,169
      
17
  
                                         
Totals:
                                        
Commercial construction
    
3,632
      
3,632
      
164
      
3,979
      
49
  
Commercial secured by real estate
    
34,329
      
37,158
      
847
      
34,777
      
357
  
Commercial other
    
10,057
      
11,752
      
620
      
10,035
      
156
  
Real estate mortgage
    
2,337
      
2,337
      
0
      
2,329
      
19
  
Total
  
$
50,355
    
$
54,879
    
$
1,631
    
$
51,120
    
$
581
  
Troubled Debt Restructuring

During the first quarter of 2020, 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 months ended March 31, 2020 and 2019 and the year ended December 31, 2019:

  
Three Months Ended
March 31, 2020
  
         
Pre-
Modification
Outstanding
Recorded
Investment
    
Post-
Modification
Outstanding
Recorded
Investment
  
(in thousands)
  
Number of
Loans
    
Term
    
Total
Modification
    
Term
Modification
    
Total
Modification
  
New troubled debt restructurings
                              
Commercial real estate residential
    
8
    
$
4,397
    
$
4,397
    
$
4,399
    
$
4,399
  
Commercial real estate nonresidential
    
9
      
2,345
      
2,345
      
2,336
      
2,336
  
Commercial other
    
5
      
464
      
464
      
399
      
399
  
Total commercial loans
    
22
      
7,206
      
7,206
      
7,134
      
7,134
  
                                         
Real estate mortgage
    
1
      
388
      
388
      
388
      
388
  
Total residential loans
    
1
      
388
      
388
      
388
      
388
  
                                         
Total troubled debt restructurings
    
23
    
$
7,594
    
$
7,594
    
$
7,522
    
$
7,522
  

 
Year Ended
December 31, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
17
    
$
6,105
    
$
0
    
$
679
    
$
6,784
  
Commercial other
    
17
      
1,565
      
0
      
264
      
1,829
  
Residential:
                                        
Real estate mortgage
    
1
      
463
      
0
      
0
      
463
  
Total troubled debt restructurings
    
35
    
$
8,133
    
$
0
    
$
943
    
$
9,076
  

 
Three Months Ended
March 31, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
5
    
$
828
    
$
0
    
$
642
    
$
1,470
  
Commercial other
    
7
      
1,122
      
0
      
140
      
1,262
  
Residential:
                                        
Real estate mortgage
    
1
      
463
      
0
      
0
      
463
  
Total troubled debt restructurings
    
13
    
$
2,413
    
$
0
    
$
782
    
$
3,195
  
Defaulted Restructured Loans

Loans retain their accrual status at the time of their modification. As a result, if a loan is on nonaccrual at the time it is modified, it stays as nonaccrual, and if a loan is on accrual at the time of the modification, it generally stays on accrual.  Commercial and consumer loans modified in a troubled debt restructuring are closely monitored for delinquency as an early indicator of possible future default.  If loans modified in a troubled debt restructuring subsequently default, CTBI evaluates the loan for possible further impairment.  The allowance for loan losses may be increased, adjustments may be made in the allocation of the allowance, or partial charge-offs may be taken to further write-down the carrying value of the loan.  Presented below, segregated by class of loans, are loans that were modified as troubled debt restructurings within the past twelve months which have subsequently defaulted.  CTBI considers a loan in default when it is 90 days or more past due or transferred to nonaccrual.  Presented below, segregated by segment, are troubled debt restructurings for which there was a payment default during the periods indicated and such default was within twelve months of the loan modification.  There were no defaults as of March 31, 2019.

(in thousands)
  
Three Months Ended
March 31, 2020
  
   
Number of
Loans
    
Recorded
Investment
  
Commercial real estate nonresidential
    
1
    
$
3,532
  
Commercial other
    
2
      
273
  
Total defaulted restructured loans
    
3
    
$
3,805
  

(in thousands)
  
Year Ended
December 31, 2019
  
   
Number of
Loans
    
Recorded
Balance
  
Commercial:
            
Commercial secured by real estate
    
1
    
$
30
  
Commercial other
    
1
      
34
  
                 
Residential:
                
Real estate mortgage
    
1
      
463
  
Total defaulted restructured loans
    
3
    
$
527