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Loans (Tables)
 12 Months Ended
Dec. 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 fees and costs, and net premiums on acquired loans, are summarized as follows:

(in thousands)
  
December 31
2020
  
Hotel/motel
  
$
260,699
  
Commercial real estate residential
    
287,928
  
Commercial real estate nonresidential
    
743,238
  
Dealer floorplans
    
69,087
  
Commercial other
    
279,908
  
Commercial unsecured SBA PPP
    
252,667
  
Commercial loans
    
1,893,527
  
         
Real estate mortgage
    
784,559
  
Home equity lines
    
103,770
  
Residential loans
    
888,329
  
         
Consumer direct
    
152,304
  
Consumer indirect
    
620,051
  
Consumer loans
    
772,355
  
         
Loans and lease financing
  
$
3,554,211
  

(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 table presents the balance in the allowance for credit losses (“ACL”) for the year ended December 31, 2020:

  
Year Ended
December 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
    
2,858
      
1,772
      
3,303
      
(214
)
    
2,040
      
1,584
      
16
      
609
      
4,079
      
16,047
  
Losses charged off
    
(43
)
    
(182
)
    
(941
)
    
(26
)
    
(3,339
)
    
(321
)
    
(4
)
    
(927
)
    
(4,670
)
    
(10,453
)
Recoveries
    
0
      
156
      
90
      
0
      
423
      
72
      
10
      
510
      
3,031
      
4,292
  
Ending balance
  
$
6,356
    
$
4,464
    
$
11,086
    
$
1,382
    
$
4,289
    
$
7,832
    
$
844
    
$
1,863
    
$
9,906
    
$
48,022
  


The following table presents details of the allowance for loan and lease losses (“ALLL”) segregated by loan portfolio segment as of December 31, 2019, calculated in accordance with our prior incurred loss methodology described in our 2019 Form 10-K.

  
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 for both December 31, 2020 and 2019 and loans 90 days past due and still accruing for December 31, 2020 only, segregated by class of loans were as follows:

  
December 31, 2020
  
 (in thousands)
  
Nonaccrual Loans
with No ACL
    
Nonaccrual Loans
with ACL
    
90+ and Still
Accruing
    
Total
Nonperforming
Loans
  
                         
Hotel/motel
  
$
0
    
$
0
    
$
0
    
$
0
  
Commercial real estate residential
    
0
      
1,225
      
4,776
      
6,001
  
Commercial real estate nonresidential
    
0
      
1,424
      
7,852
      
9,276
  
Commercial other
    
0
      
867
      
269
      
1,136
  
Total commercial loans
    
0
      
3,516
      
12,897
      
16,413
  
                                 
Real estate mortgage
    
0
      
5,346
      
3,420
      
8,766
  
Home equity lines
    
0
      
582
      
392
      
974
  
Total residential loans
    
0
      
5,928
      
3,812
      
9,740
  
                                 
Consumer direct
    
0
      
0
      
71
      
71
  
Consumer indirect
    
0
      
0
      
353
      
353
  
Total consumer loans
    
0
      
0
      
424
      
424
  
                                 
Loans and lease financing
  
$
0
    
$
9,444
    
$
17,133
    
$
26,577
  


CTBI recognized $31 thousand in interest income on the above nonaccrual loans for the year ended December 31, 2020.

(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 December 31, 2020 and December 31, 2019 (includes loans 90 days past due and still accruing as well):

  
December 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
    
$
0
    
$
0
    
$
260,699
    
$
260,699
  
Commercial real estate residential
    
722
      
413
      
5,577
      
6,712
      
281,216
      
287,928
  
Commercial real estate nonresidential
    
1,199
      
0
      
8,703
      
9,902
      
733,336
      
743,238
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
69,087
      
69,087
  
Commercial other
    
658
      
136
      
835
      
1,629
      
278,279
      
279,908
  
Commercial unsecured SBA PPP
    
0
      
0
      
0
      
0
      
252,667
      
252,667
  
Total commercial loans
    
2,579
      
549
      
15,115
      
18,243
      
1,875,284
      
1,893,527
  
                                                 
Real estate mortgage
    
1,784
      
3,501
      
6,897
      
12,182
      
772,377
      
784,559
  
Home equity lines
    
509
      
305
      
919
      
1,733
      
102,037
      
103,770
  
Total residential loans
    
2,293
      
3,806
      
7,816
      
13,915
      
874,414
      
888,329
  
                                                 
Consumer direct
    
659
      
87
      
71
      
817
      
151,487
      
152,304
  
Consumer indirect
    
2,960
      
973
      
353
      
4,286
      
615,765
      
620,051
  
Total consumer loans
    
3,619
      
1,060
      
424
      
5,103
      
767,252
      
772,355
  
                                                 
Loans and lease financing
  
$
8,491
    
$
5,415
    
$
23,355
    
$
37,261
    
$
3,516,950
    
$
3,554,211
  

 
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
  
$
11,507
    
$
70,504
    
$
27,453
    
$
39,651
    
$
6,357
    
$
22,372
    
$
0
    
$
177,844
  
Watch
    
23,951
      
2,506
      
3,366
      
2,102
      
16,740
      
7,422
              
56,087
  
OAEM
    
0
      
1,993
      
9,576
      
0
      
0
      
0
      
0
      
11,569
  
Substandard
    
0
      
0
      
0
      
1,113
      
8,840
      
5,246
      
0
      
15,199
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
  
$
35,458
    
$
75,003
    
$
40,395
    
$
42,866
    
$
31,937
    
$
35,040
    
$
0
    
$
260,699
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
  
$
85,403
    
$
39,238
    
$
29,179
    
$
17,390
    
$
21,272
    
$
46,419
    
$
10,470
    
$
249,371
  
Watch
    
1,714
      
2,214
      
2,438
      
2,962
      
4,520
      
5,306
      
182
      
19,336
  
OAEM
    
1,921
      
1,361
      
323
      
142
      
129
      
0
      
0
      
3,876
  
Substandard
    
4,301
      
606
      
1,991
      
4,076
      
1,108
      
3,263
      
0
      
15,345
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
  
$
93,339
    
$
43,419
    
$
33,931
    
$
24,570
    
$
27,029
    
$
54,988
    
$
10,652
    
$
287,928
  
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
  
$
125,205
    
$
97,204
    
$
77,685
    
$
80,416
    
$
100,740
    
$
165,839
    
$
25,524
    
$
672,613
  
Watch
    
5,133
      
3,175
      
5,075
      
6,366
      
3,020
      
11,046
      
601
      
34,416
  
OAEM
    
0
      
887
      
68
      
0
      
0
      
3,382
      
115
      
4,452
  
Substandard
    
7,254
      
6,152
      
3,471
      
2,462
      
1,358
      
10,817
      
215
      
31,729
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
28
      
0
      
28
  
Total commercial real estate nonresidential
  
$
137,592
    
$
107,418
    
$
86,299
    
$
89,244
    
$
105,118
    
$
191,112
    
$
26,455
    
$
743,238
  
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
68,610
    
$
68,610
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
477
      
477
  
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
    
$
69,087
    
$
69,087
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
  
$
75,014
    
$
26,385
    
$
33,825
    
$
13,975
    
$
6,225
    
$
22,733
    
$
78,547
    
$
256,704
  
Watch
    
2,888
      
378
      
1,130
      
555
      
464
      
595
      
7,030
      
13,040
  
OAEM
    
25
      
0
      
5,056
      
181
      
367
      
0
      
124
      
5,753
  
Substandard
    
2,136
      
556
      
318
      
460
      
460
      
411
      
70
      
4,411
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
  
$
80,063
    
$
27,319
    
$
40,329
    
$
15,171
    
$
7,516
    
$
23,739
    
$
85,771
    
$
279,908
  
                                                                 
Commercial unsecured SBA PPP
                                                                
Risk rating:
                                                                
Pass
  
$
252,667
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
252,667
  
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
  
$
252,667
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
252,667
  
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
  
$
549,796
    
$
233,331
    
$
168,142
    
$
151,432
    
$
134,594
    
$
257,363
    
$
183,151
    
$
1,677,809
  
Watch
    
33,686
      
8,273
      
12,009
      
11,985
      
24,744
      
24,369
      
8,290
      
123,356
  
OAEM
    
1,946
      
4,241
      
15,023
      
323
      
496
      
3,382
      
239
      
25,650
  
Substandard
    
13,691
      
7,314
      
5,780
      
8,111
      
11,766
      
19,737
      
285
      
66,684
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
28
      
0
      
28
  
Total commercial loans
  
$
599,119
    
$
253,159
    
$
200,954
    
$
171,851
    
$
171,600
    
$
304,879
    
$
191,965
    
$
1,893,527
  

(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
    
$
23
    
$
12,049
    
$
90,724
    
$
102,796
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
585
      
389
      
974
  
Total home equity lines
  
$
0
    
$
0
    
$
0
    
$
0
    
$
23
    
$
12,634
    
$
91,113
    
$
103,770
  
                                                                 
Mortgage loans
                                                                
Performing
  
$
214,629
    
$
119,301
    
$
56,812
    
$
60,915
    
$
48,253
    
$
275,883
    
$
0
    
$
775,793
  
Nonperforming
    
0
      
436
      
303
      
314
      
352
      
7,361
      
0
      
8,766
  
Total mortgage loans
  
$
214,629
    
$
119,737
    
$
57,115
    
$
61,229
    
$
48,605
    
$
283,244
    
$
0
    
$
784,559
  
                                                                 
Residential loans
                                                                
Performing
  
$
214,629
    
$
119,301
    
$
56,812
    
$
60,915
    
$
48,276
    
$
287,932
    
$
90,724
    
$
878,589
  
Nonperforming
    
0
      
436
      
303
      
314
      
352
      
7,946
      
389
      
9,740
  
Total residential loans
  
$
214,629
    
$
119,737
    
$
57,115
    
$
61,229
    
$
48,628
    
$
295,878
    
$
91,113
    
$
888,329
  
                                                                 
Consumer direct loans
                                                                
Performing
  
$
72,677
    
$
32,993
    
$
18,461
    
$
9,157
    
$
6,581
    
$
12,364
    
$
0
    
$
152,233
  
Nonperforming
    
7
      
57
      
0
      
7
      
0
      
0
      
0
      
71
  
Total consumer direct loans
  
$
72,684
    
$
33,050
    
$
18,461
    
$
9,164
    
$
6,581
    
$
12,364
    
$
0
    
$
152,304
  
                                                                 
Consumer indirect loans
                                                                
Performing
  
$
301,494
    
$
135,123
    
$
100,482
    
$
50,665
    
$
23,777
    
$
8,157
    
$
0
    
$
619,698
  
Nonperforming
    
27
      
115
      
118
      
52
      
30
      
11
      
0
      
353
  
Total consumer indirect loans
  
$
301,521
    
$
135,238
    
$
100,600
    
$
50,717
    
$
23,807
    
$
8,168
    
$
0
    
$
620,051
  
                                                                 
Consumer loans
                                                                
Performing
  
$
374,171
    
$
168,116
    
$
118,943
    
$
59,822
    
$
30,358
    
$
20,521
    
$
0
    
$
771,931
  
Nonperforming
    
34
      
172
      
118
      
59
      
30
      
11
      
0
      
424
  
Total consumer loans
  
$
374,205
    
$
168,288
    
$
119,061
    
$
59,881
    
$
30,388
    
$
20,532
    
$
0
    
$
772,355
  


(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 Impaired 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:

  
December 31, 2020
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
5
    
$
26,194
    
$
250
  
Commercial real estate residential
    
4
      
7,833
      
0
  
Commercial real estate nonresidential
    
12
      
24,497
      
200
  
Commercial other
    
1
      
5,050
      
0
  
Total collateral dependent loans
    
22
    
$
63,574
    
$
450
  



Prior to the adoption of ASC 326 on January 1, 2020, loans were reported as impaired when, based on then current information and events, it was probable we would be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments.  If a loan was impaired, a specific valuation allowance was allocated, if necessary, so that the loan was reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment was expected solely from the collateral.  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, 2019 and 2018.

  
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
  

 
December 31, 2018
  
(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
  
$
4,100
    
$
4,100
    
$
0
    
$
3,923
    
$
171
  
Commercial secured by real estate
    
29,645
      
31,409
      
0
      
30,250
      
1,412
  
Commercial other
    
8,285
      
9,982
      
0
      
8,774
      
530
  
Real estate construction
    
0
      
0
      
0
      
106
      
0
  
Real estate mortgage
    
1,882
      
1,882
      
0
      
1,666
      
41
  
                                         
Loans with a specific valuation allowance:
                                        
Commercial construction
    
127
      
127
      
50
      
42
      
0
  
Commercial secured by real estate
    
1,854
      
2,983
      
605
      
2,051
      
1
  
Commercial other
    
473
      
473
      
146
      
285
      
16
  
                                         
Totals:
                                        
Commercial construction
    
4,227
      
4,227
      
50
      
3,965
      
171
  
Commercial secured by real estate
    
31,499
      
34,392
      
605
      
32,301
      
1,413
  
Commercial other
    
8,758
      
10,455
      
146
      
9,059
      
546
  
Real estate construction
    
0
      
0
      
0
      
106
      
0
  
Real estate mortgage
    
1,882
      
1,882
      
0
      
1,666
      
41
  
Total
  
$
46,366
    
$
50,956
    
$
801
    
$
47,097
    
$
2,171
  
Troubled Debt Restructurings

Certain loans have been 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 years ended December 31, 2020 and 2019:

  
Year Ended
December 31, 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
    
18
      
7,295
      
782
      
8,077
  
Hotel/motel
    
1
      
1,113
      
0
      
1,113
  
Commercial other
    
12
      
637
      
53
      
690
  
Total commercial loans
    
43
      
13,739
      
2,644
      
16,383
  
                                 
Real estate mortgage
    
4
      
1,496
      
0
      
1,496
  
Total residential loans
    
4
      
1,496
      
0
      
1,496
  
                                 
Total troubled debt restructurings
    
47
    
$
15,235
    
$
2,644
    
$
17,879
  

 
Year Ended
December 31, 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
    
18
      
7,349
      
782
      
8,131
  
Hotel/motel
    
1
      
1,113
      
0
      
1,113
  
Commercial other
    
12
      
571
      
51
      
622
  
Total commercial loans
    
43
      
13,729
      
2,642
      
16,371
  
                                 
Real estate mortgage
    
4
      
1,479
      
0
      
1,479
  
Total residential loans
    
4
      
1,479
      
0
      
1,479
  
                                 
Total troubled debt restructurings
    
47
    
$
15,208
    
$
2,642
    
$
17,850
  

 
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
  
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)
  
Year Ended
December 31, 2020
  
 
Number of
Loans
    
Recorded
Balance
  
Commercial:
            
Commercial other
    
3
    
$
368
  
Total defaulted restructured loans
    
3
    
$
368
  

(in thousands)
  
Year Ended
December 31, 2019
  
 
Number of
Loans
    
Recorded
Balance
  
Commercial:
            
Commercial construction
    
0
    
$
0
  
Commercial secured by real estate
    
1
      
30
  
Commercial other
    
1
      
34
  
                 
Residential:
                
Real estate mortgage
    
1
      
463
  
Total defaulted restructured loans
    
3
    
$
527