COVID-19 and CARES Act Loan Activities

12 Months Ended

Dec. 31, 2020

COVID-19 and CARES Act Loan Activities [Abstract]

25. COVID-19 and CARES Act Loan Activities

CTBI has been and continues to be committed to serving the needs of our customers in an ever changing environment. COVID-19 has caused major concerns for the communities we serve and our entire country. With this in mind, Community Trust Bank, Inc. instituted multiple relief actions in an effort to assist our customers during this very difficult time. CTBI’s management team activated its Pandemic Response Team, with representation from all areas of our company, to continually discuss the current situation, safety, and needs of our customers and employees. We have worked diligently with our customers as we all continue to battle COVID-19. Included in the relief actions the bank implemented during this past year are waivers of overdraft/returned item fees and telephone transfer fees for a period of 30 days ending April 22, 2020, suspension of residential foreclosure actions through March 31, 2021, and several loan assistance programs designed to assist those customers experiencing, or, likely to experience, financial difficulties directly related to COVID-19 causing loss of individual income and/or household income. Through December 31, 2020, we processed 3,844 COVID-19 loan deferrals totaling $992 million. These loan deferrals and modifications were executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans.

Our customers have shown improvement in their ability to resume payments as 3,071 (representing $540 million) had resumed payment status at December 31, 2020. At December 31, 2020 the number of customers with CARES Act deferrals reduced to 410 for a total outstanding amount of $130 million. See below for further detail regarding the types of deferrals received.

CARES Act Loan Deferral Status

	Deferrals
	One Time				Two Times				Three Times				Four Times				Outstanding
(dollars in millions)	Number		Amount		Number		Amount		Number		Amount		Number		Amount		Number		Amount
Commercial		841	$	571		153	$	223		45	$	83		5	$	3		109	$	118
Residential		552		63		100		10		15		2		1		0		108		9
Consumer		2,088		36		41		1		3		0		0		0		193		3
		3,481	$	670		294	$	234		63	$	85		6	$	3		410	$	130

We have also participated in the Paycheck Protection Program (PPP) stemming from the CARES Act passed by Congress as a stimulus response to the potential economic impacts of COVID-19. As of December 31, 2020, we closed 2,962 Paycheck Protection Program (PPP) loans totaling $277.0 million, stemming from the CARES Act passed by Congress as a stimulus response to the potential economic impacts of COVID-19. Of these, 2,817 were under $350 thousand, 132 were between $350 thousand and $2.0 million, and 13 were over $2.0 million. The initial phase of the PPP program expired on August 8, 2020, and the loan forgiveness process began shortly thereafter. Through December 31, 2020, we have had $18.8 million of our PPP loans forgiven by the U.S. Small Business Administration (SBA). An additional stimulus package, included as part of Consolidated Appropriations Act 2021, was signed into law in late December providing for an additional $284 billion in funding under the PPP, with authority to make loans under the program being extended through March 31, 2021. CTBI intends to participate in the second round of lending as soon as possible. See below for additional information related to our PPP loans for the year ended December 31, 2020.

(dollars in thousands)		Average Balance				Interest				Average Effective Rate
PPP loans		$	182,008			$	5,638				3.05	%

CTBI has also taken many steps to protect the safety of our employees and customers by adjusting branch operations and decreasing lobby usage as needed, encouraging drive-thru and ATM use along with internet banking, having employees work remotely or work split-shifts when possible, implementing social distancing guidelines, and consolidating operations.