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Loans (Tables)
 9 Months Ended
Sep. 30, 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)
  
September 30
2020
  
Hotel/motel
  
$
259,017
  
Commercial real estate residential
    
284,428
  
Commercial real estate nonresidential
    
742,436
  
Dealer floorplans
    
63,393
  
Commercial other
    
279,808
  
Commercial unsecured SBA PPP
    
270,271
  
Commercial loans
    
1,899,353
  
         
Real estate mortgage
    
783,818
  
Home equity lines
    
105,454
  
Residential loans
    
889,272
  
         
Consumer direct
    
153,666
  
Consumer indirect
    
615,608
  
Consumer loans
    
769,274
  
         
Loans and lease financing
  
$
3,557,899
  

(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 September 30, 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 September 30, 2019:

  
Three Months Ended
September 30, 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
  
$
6,132
    
$
3,439
    
$
11,408
    
$
1,585
    
$
4,703
    
$
7,336
    
$
856
    
$
1,932
    
$
9,243
    
$
46,634
  
Provision charged to expense
    
(81
)
    
1,224
      
475
      
(172
)
    
112
      
524
      
56
      
42
      
253
      
2,433
  
Losses charged off
    
(42
)
    
(50
)
    
(761
)
    
0
      
(318
)
    
(97
)
    
(4
)
    
(150
)
    
(846
)
    
(2,268
)
Recoveries
    
0
      
5
      
32
      
0
      
101
      
23
      
1
      
95
      
930
      
1,187
  
Ending balance
  
$
6,009
    
$
4,618
    
$
11,154
    
$
1,413
    
$
4,598
    
$
7,786
    
$
909
    
$
1,919
    
$
9,580
    
$
47,986
  

 
Nine Months Ended
September 30, 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
    
2,510
      
2,035
      
3,408
      
(183
)
    
1,749
      
1,511
      
88
      
715
      
3,258
      
15,091
  
Losses charged off
    
(42
)
    
(148
)
    
(937
)
    
(26
)
    
(2,669
)
    
(276
)
    
(4
)
    
(780
)
    
(3,610
)
    
(8,492
)
Recoveries
    
0
      
13
      
49
      
0
      
353
      
54
      
3
      
313
      
2,466
      
3,251
  
Ending balance
  
$
6,009
    
$
4,618
    
$
11,154
    
$
1,413
    
$
4,598
    
$
7,786
    
$
909
    
$
1,919
    
$
9,580
    
$
47,986
  


 
Three Months Ended
September 30, 2019
  
(in thousands)
  
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Lease
Financing
    
Commercial
Other
    
Real Estate
Construction
    
Real Estate
Mortgage
    
Home
Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
ALLL
                                                            
Beginning balance
  
$
799
    
$
15,098
    
$
7
    
$
4,889
    
$
358
    
$
4,187
    
$
933
    
$
1,767
    
$
6,960
    
$
34,998
  
Provision charged to expense
    
299
      
(742
)
    
(2
)
    
1,436
      
(28
)
    
705
      
32
      
104
      
(551
)
    
1,253
  
Losses charged off
    
(1
)
    
(21
)
    
0
      
(638
)
    
0
      
(384
)
    
(40
)
    
(218
)
    
(1,014
)
    
(2,316
)
Recoveries
    
3
      
40
      
0
      
75
      
0
      
10
      
2
      
82
      
664
      
876
  
Ending balance
  
$
1,100
    
$
14,375
    
$
5
    
$
5,762
    
$
330
    
$
4,518
    
$
927
    
$
1,735
    
$
6,059
    
$
34,811
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
99
    
$
398
    
$
0
    
$
175
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
672
  
Collectively evaluated for impairment
  
$
1,001
    
$
13,977
    
$
5
    
$
5,587
    
$
330
    
$
4,518
    
$
927
    
$
1,735
    
$
6,059
    
$
34,139
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
2,974
    
$
39,986
    
$
0
    
$
11,037
    
$
0
    
$
2,318
    
$
0
    
$
0
    
$
0
    
$
56,315
  
Collectively evaluated for impairment
  
$
90,560
    
$
1,134,778
    
$
651
    
$
377,495
    
$
62,859
    
$
720,314
    
$
110,663
    
$
149,500
    
$
511,650
    
$
3,158,470
  


 
Nine Months Ended
September 30, 2019
  
(in thousands)
  
Commercial
Construction
    
Commercial
Secured by
Real Estate
    
Equipment
Lease
Financing
    
Commercial
Other
    
Real Estate
Construction
    
Real Estate
Mortgage
    
Home
Equity
    
Consumer
Direct
    
Consumer
Indirect
    
Total
  
ALLL
                                                            
Beginning balance
  
$
862
    
$
14,531
    
$
12
    
$
4,993
    
$
512
    
$
4,433
    
$
841
    
$
1,883
    
$
7,841
    
$
35,908
  
Provision charged to expense
    
301
      
79
      
(7
)
    
2,055
      
(181
)
    
726
      
181
      
385
      
(533
)
    
3,006
  
Losses charged off
    
(72
)
    
(401
)
    
0
      
(1,703
)
    
(1
)
    
(684
)
    
(99
)
    
(795
)
    
(3,413
)
    
(7,168
)
Recoveries
    
9
      
166
      
0
      
417
      
0
      
43
      
4
      
262
      
2,164
      
3,065
  
Ending balance
  
$
1,100
    
$
14,375
    
$
5
    
$
5,762
    
$
330
    
$
4,518
    
$
927
    
$
1,735
    
$
6,059
    
$
34,811
  
                                                                                 
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
99
    
$
398
    
$
0
    
$
175
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
672
  
Collectively evaluated for impairment
  
$
1,001
    
$
13,977
    
$
5
    
$
5,587
    
$
330
    
$
4,518
    
$
927
    
$
1,735
    
$
6,059
    
$
34,139
  
                                                                                 
Loans
                                                                                
Ending balance:
                                                                                
Individually evaluated for impairment
  
$
2,974
    
$
39,986
    
$
0
    
$
11,037
    
$
0
    
$
2,318
    
$
0
    
$
0
    
$
0
    
$
56,315
  
Collectively evaluated for impairment
  
$
90,560
    
$
1,134,778
    
$
651
    
$
377,495
    
$
62,859
    
$
720,314
    
$
110,663
    
$
149,500
    
$
511,650
    
$
3,158,470
  


 
Year Ended
December 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
  
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
  
Nonaccrual Loans Segregated by Class of Loans

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

  
September 30, 2020
  
 (in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loan
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Hotel/motel
  
$
0
    
$
90
    
$
0
    
$
90
  
Commercial real estate residential
    
0
      
1,439
      
4,591
      
6,030
  
Commercial real estate nonresidential
    
0
      
1,911
      
8,583
      
10,494
  
Commercial other
    
0
      
2,029
      
270
      
2,299
  
Total commercial loans
    
0
      
5,469
      
13,444
      
18,913
  
                                 
Real estate mortgage
    
0
      
5,615
      
3,726
      
9,341
  
Home equity lines
    
0
      
610
      
375
      
985
  
Total residential loans
    
0
      
6,225
      
4,101
      
10,326
  
                                 
Consumer direct
    
0
      
186
      
40
      
226
  
Consumer indirect
    
0
      
0
      
404
      
404
  
Total consumer loans
    
0
      
186
      
444
      
630
  
                                 
Loans and lease financing
  
$
0
    
$
11,880
    
$
17,989
    
$
29,869
  

(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 September 30, 2020 and December 31, 2019:

  
September 30, 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
    
$
90
    
$
90
    
$
258,927
    
$
259,017
  
Commercial real estate residential
    
1,194
      
498
      
5,593
      
7,285
      
277,143
      
284,428
  
Commercial real estate nonresidential
    
1,178
      
1,198
      
9,912
      
12,288
      
730,148
      
742,436
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
63,393
      
63,393
  
Commercial other
    
658
      
228
      
1,767
      
2,653
      
277,155
      
279,808
  
Commercial unsecured SBA PPP
    
0
      
0
      
0
      
0
      
270,271
      
270,271
  
Total commercial loans
    
3,030
      
1,924
      
17,362
      
22,316
      
1,877,037
      
1,899,353
  
                                                 
Real estate mortgage
    
2,299
      
3,029
      
6,336
      
11,664
      
772,154
      
783,818
  
Home equity lines
    
624
      
274
      
700
      
1,598
      
103,856
      
105,454
  
Total residential loans
    
2,923
      
3,303
      
7,036
      
13,262
      
876,010
      
889,272
  
                                                 
Consumer direct
    
511
      
105
      
226
      
842
      
152,824
      
153,666
  
Consumer indirect
    
2,832
      
687
      
404
      
3,923
      
611,685
      
615,608
  
Total consumer loans
    
3,343
      
792
      
630
      
4,765
      
764,509
      
769,274
  
                                                 
Loans and lease financing
  
$
9,296
    
$
6,019
    
$
25,028
    
$
40,343
    
$
3,517,556
    
$
3,557,899
  

 
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
  
$
24,777
    
$
71,232
    
$
26,681
    
$
42,121
    
$
20,735
    
$
28,010
    
$
0
    
$
213,556
  
Watch
    
10,427
      
1,993
      
3,325
      
0
      
2,450
      
2,229
              
20,424
  
OAEM
    
0
      
0
      
9,576
      
0
      
0
      
0
      
0
      
9,576
  
Substandard
    
0
      
0
      
90
      
1,113
      
8,950
      
5,308
      
0
      
15,461
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
  
$
35,204
    
$
73,225
    
$
39,672
    
$
43,234
    
$
32,135
    
$
35,547
    
$
0
    
$
259,017
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
  
$
65,218
    
$
43,078
    
$
31,568
    
$
18,810
    
$
24,246
    
$
51,616
    
$
10,976
    
$
245,512
  
Watch
    
1,004
      
2,799
      
2,452
      
2,985
      
4,524
      
5,444
      
279
      
19,487
  
OAEM
    
277
      
1,269
      
608
      
950
      
240
      
58
      
0
      
3,402
  
Substandard
    
4,202
      
597
      
2,229
      
4,077
      
1,119
      
3,353
      
450
      
16,027
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
  
$
70,701
    
$
47,743
    
$
36,857
    
$
26,822
    
$
30,129
    
$
60,471
    
$
11,705
    
$
284,428
  
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
  
$
90,288
    
$
105,737
    
$
83,581
    
$
85,451
    
$
105,975
    
$
175,249
    
$
24,042
    
$
670,323
  
Watch
    
3,653
      
3,437
      
7,965
      
4,753
      
3,541
      
11,972
      
976
      
36,297
  
OAEM
    
0
      
0
      
69
      
1
      
0
      
3,306
      
20
      
3,396
  
Substandard
    
7,831
      
6,714
      
1,568
      
2,858
      
1,508
      
11,696
      
216
      
32,391
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
29
      
0
      
29
  
Total commercial real estate nonresidential
  
$
101,772
    
$
115,888
    
$
93,183
    
$
93,063
    
$
111,024
    
$
202,252
    
$
25,254
    
$
742,436
  
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
63,069
    
$
63,069
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
324
      
324
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total dealer floorplans
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
63,393
    
$
63,393
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
  
$
67,359
    
$
33,493
    
$
35,138
    
$
15,903
    
$
6,859
    
$
24,440
    
$
71,902
    
$
255,094
  
Watch
    
2,736
      
489
      
1,059
      
662
      
586
      
861
      
7,004
      
13,397
  
OAEM
    
0
      
0
      
5,093
      
214
      
444
      
10
      
0
      
5,761
  
Substandard
    
2,084
      
548
      
350
      
493
      
1,413
      
443
      
112
      
5,443
  
Doubtful
    
0
      
113
      
0
      
0
      
0
      
0
      
0
      
113
  
Total commercial other
  
$
72,179
    
$
34,643
    
$
41,640
    
$
17,272
    
$
9,302
    
$
25,754
    
$
79,018
    
$
279,808
  
                                                                 
Commercial unsecured SBA PPP
                                                                
Risk rating:
                                                                
Pass
  
$
270,271
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
270,271
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial unsecured SBA PPP
  
$
270,271
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
270,271
  
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
  
$
517,913
    
$
253,540
    
$
176,968
    
$
162,285
    
$
157,815
    
$
279,315
    
$
169,989
    
$
1,717,825
  
Watch
    
17,820
      
8,718
      
14,801
      
8,400
      
11,101
      
20,506
      
8,583
      
89,929
  
OAEM
    
277
      
1,269
      
15,346
      
1,165
      
684
      
3,374
      
20
      
22,135
  
Substandard
    
14,117
      
7,859
      
4,237
      
8,541
      
12,990
      
20,800
      
778
      
69,322
  
Doubtful
    
0
      
113
      
0
      
0
      
0
      
29
      
0
      
142
  
Total commercial loans
  
$
550,127
    
$
271,499
    
$
211,352
    
$
180,391
    
$
182,590
    
$
324,024
    
$
179,370
    
$
1,899,353
  

(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
    
$
0
    
$
0
    
$
0
    
$
7
    
$
12,246
    
$
92,216
    
$
104,469
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
620
      
365
      
985
  
Total home equity lines
  
$
0
    
$
0
    
$
0
    
$
0
    
$
7
    
$
12,866
    
$
92,581
    
$
105,454
  
                                                                 
Mortgage loans
                                                                
Performing
  
$
157,390
    
$
132,799
    
$
63,904
    
$
68,011
    
$
55,417
    
$
296,956
    
$
0
    
$
774,477
  
Nonperforming
    
0
      
394
      
761
      
591
      
408
      
7,187
      
0
      
9,341
  
Total mortgage loans
  
$
157,390
    
$
133,193
    
$
64,665
    
$
68,602
    
$
55,825
    
$
304,143
    
$
0
    
$
783,818
  
                                                                 
Residential loans
                                                                
Performing
  
$
157,390
    
$
132,799
    
$
63,904
    
$
68,011
    
$
55,424
    
$
309,202
    
$
92,216
    
$
878,946
  
Nonperforming
    
0
      
394
      
761
      
591
      
408
      
7,807
      
365
      
10,326
  
Total residential loans
  
$
157,390
    
$
133,193
    
$
64,665
    
$
68,602
    
$
55,832
    
$
317,009
    
$
92,581
    
$
889,272
  
                                                                 
Consumer direct loans
                                                                
Performing
  
$
60,171
    
$
39,064
    
$
21,959
    
$
10,881
    
$
7,498
    
$
13,867
    
$
0
    
$
153,440
  
Nonperforming
    
9
      
0
      
7
      
25
      
0
      
185
      
0
      
226
  
Total consumer direct loans
  
$
60,180
    
$
39,064
    
$
21,966
    
$
10,906
    
$
7,498
    
$
14,052
    
$
0
    
$
153,666
  
                                                                 
Consumer indirect loans
                                                                
Performing
  
$
251,162
    
$
149,460
    
$
114,362
    
$
59,549
    
$
28,989
    
$
11,682
    
$
0
    
$
615,204
  
Nonperforming
    
52
      
165
      
110
      
51
      
10
      
16
      
0
      
404
  
Total consumer indirect loans
  
$
251,214
    
$
149,625
    
$
114,472
    
$
59,600
    
$
28,999
    
$
11,698
    
$
0
    
$
615,608
  
                                                                 
Consumer loans
                                                                
Performing
  
$
311,333
    
$
188,524
    
$
136,321
    
$
70,430
    
$
36,487
    
$
25,549
    
$
0
    
$
768,644
  
Nonperforming
    
61
      
165
      
117
      
76
      
10
      
201
      
0
      
630
  
Total consumer loans
  
$
311,394
    
$
188,689
    
$
136,438
    
$
70,506
    
$
36,497
    
$
25,750
    
$
0
    
$
769,274
  


(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:

  
September 30, 2020
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
4
    
$
24,357
    
$
250
  
Commercial real estate residential
    
4
      
7,932
      
0
  
Commercial real estate nonresidential
    
11
      
22,383
      
200
  
Commercial other
    
2
      
6,087
      
350
  
Total collateral dependent loans
    
21
    
$
60,759
    
$
800
  



The hotel/motel, commercial real estate residential, and commercial real estate nonresidential segments are all collateralized with real estate.  The two 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 and the remaining $1.0 million collateralized by underground coal mining equipment and junior real estate liens.

  
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
  

 
September 30, 2019
  
(in thousands)
  
Recorded
Balance
    
Unpaid
Contractual
Principal
Balance
    
Specific
Allowance
  
Loans without a specific valuation allowance:
                  
Commercial construction
  
$
2,800
    
$
2,800
    
$
0
  
Commercial secured by real estate
    
38,620
      
40,134
      
0
  
Commercial other
    
10,690
      
12,384
      
0
  
Real estate mortgage
    
2,318
      
2,318
      
0
  
                         
Loans with a specific valuation allowance:
                        
Commercial construction
    
174
      
174
      
99
  
Commercial secured by real estate
    
1,366
      
2,863
      
398
  
Commercial other
    
347
      
347
      
175
  
                         
Totals:
                        
Commercial construction
    
2,974
      
2,974
      
99
  
Commercial secured by real estate
    
39,986
      
42,997
      
398
  
Commercial other
    
11,037
      
12,731
      
175
  
Real estate mortgage
    
2,318
      
2,318
      
0
  
Total
  
$
56,315
    
$
61,020
    
$
672
  


 
Three Months Ended
    
Nine Months Ended
  
   
September 30, 2019
    
September 30, 2019
  
(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
  
$
2,959
    
$
37
    
$
3,344
    
$
132
  
Commercial secured by real estate
    
39,217
      
442
      
35,762
      
1,192
  
Commercial other
    
10,863
      
92
      
10,425
      
380
  
Real estate mortgage
    
2,323
      
23
      
2,408
      
64
  
                                 
Loans with a specific valuation allowance:
                                
Commercial construction
    
174
      
3
      
229
      
9
  
Commercial secured by real estate
    
1,397
      
0
      
1,892
      
15
  
Commercial other
    
358
      
6
      
680
      
29
  
                                 
Totals:
                                
Commercial construction
    
3,133
      
40
      
3,573
      
141
  
Commercial secured by real estate
    
40,614
      
442
      
37,654
      
1,207
  
Commercial other
    
11,221
      
98
      
11,105
      
409
  
Real estate mortgage
    
2,323
      
23
      
2,408
      
64
  
Total
  
$
57,291
    
$
603
    
$
54,740
    
$
1,821
  
Troubled Debt Restructuring

During the third 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 and nine months ended September 30, 2020 and 2019 and the year ended December 31, 2019:

  
Three Months Ended
September 30, 2020
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
1
    
$
101
    
$
0
    
$
101
  
Commercial real estate nonresidential
    
3
      
4,421
      
0
      
4,421
  
Commercial other
    
1
      
52
      
0
      
52
  
Total commercial loans
    
5
      
4,574
      
0
      
4,574
  
                                 
Real estate mortgage
    
1
      
283
      
0
      
283
  
Total residential loans
    
1
      
283
      
0
      
283
  
                                 
Total troubled debt restructurings
    
6
    
$
4,857
    
$
0
    
$
4,857
  


 
Three Months Ended
September 30, 2020
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
1
    
$
101
    
$
0
    
$
101
  
Commercial real estate nonresidential
    
3
      
4,479
      
0
      
4,479
  
Commercial other
    
1
      
52
      
0
      
52
  
Total commercial loans
    
5
      
4,632
      
0
      
4,632
  
                                 
Real estate mortgage
    
1
      
282
      
0
      
282
  
Total residential loans
    
1
      
282
      
0
      
282
  
                                 
Total troubled debt restructurings
    
6
    
$
4,914
    
$
0
    
$
4,914
  

 
Nine Months Ended
September 30, 2020
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
12
    
$
4,694
    
$
1,809
    
$
6,503
  
Commercial real estate nonresidential
    
15
      
7,185
      
510
      
7,695
  
Commercial other
    
10
      
631
      
25
      
656
  
Total commercial loans
    
37
      
12,510
      
2,344
      
14,854
  
                                 
Real estate mortgage
    
3
      
1,216
      
0
      
1,216
  
Total residential loans
    
3
      
1,216
      
0
      
1,216
  
                                 
Total troubled debt restructurings
    
40
    
$
13,726
    
$
2,344
    
$
16,070
  

 
Nine Months Ended
September 30, 2020
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
12
    
$
4,696
    
$
1,809
    
$
6,505
  
Commercial real estate nonresidential
    
15
      
7,234
      
510
      
7,744
  
Commercial other
    
10
      
565
      
25
      
590
  
Total commercial loans
    
37
      
12,495
      
2,344
      
14,839
  
                                 
Real estate mortgage
    
3
      
1,203
      
0
      
1,203
  
Total residential loans
    
3
      
1,203
      
0
      
1,203
  
                                 
Total troubled debt restructurings
    
40
    
$
13,698
    
$
2,344
    
$
16,042
  


 
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
September 30, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
3
    
$
270
    
$
0
    
$
0
    
$
270
  
Commercial other
    
2
      
32
      
0
      
0
      
32
  
Total troubled debt restructurings
    
5
    
$
302
    
$
0
    
$
0
    
$
302
  

 
Nine Months Ended
September 30, 2019
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Rate
Modification
    
Combination
    
Post-
Modification
Outstanding
Balance
  
Commercial:
                              
Commercial secured by real estate
    
13
    
$
4,784
    
$
0
    
$
679
    
$
5,463
  
Commercial other
    
13
      
1,292
      
0
      
140
      
1,432
  
Residential:
                                        
Real estate mortgage
    
2
      
463
      
0
      
243
      
706
  
Total troubled debt restructurings
    
28
    
$
6,539
    
$
0
    
$
1,062
    
$
7,601
  
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.

(in thousands)
  
Three Months Ended
September 30, 2020
    
Nine Months Ended
September 30, 2020
  
   
Number of
Loans
    
Recorded
Balance
    
Number of
Loans
    
Recorded
Balance
  
Commercial:
                        
Commercial real estate residential
    
0
    
$
0
      
0
    
$
0
  
Commercial other
    
0
      
0
      
3
      
368
  
Total defaulted restructured loans
    
0
    
$
0
      
3
    
$
368
  

(in thousands)
  
Three Months Ended
September 30, 2019
    
Nine Months Ended
September 30, 2019
  
   
Number of
Loans
    
Recorded
Balance
    
Number of
Loans
    
Recorded
Balance
  
Commercial:
                        
Commercial real estate residential
    
1
    
$
30
      
1
    
$
30
  
Commercial other
    
1
      
34
      
1
      
34
  
Total defaulted restructured loans
    
2
    
$
64
      
2
    
$
64