COVID-19 and CARES Act Loan Activities

3 Months Ended

Mar. 31, 2021

COVID-19 and CARES Act Loan Activities [Abstract]

COVID-19 and CARES Act Loan Activities

Note 11 – COVID-19 and CARES Act Loan Activities

We continue working with our customers through the COVID-19 pandemic.  At March 31, 2021, the number of customers with CARES Act deferrals reduced to 226 for a total outstanding amount of $81.8 million.  The majority of our CARES Act deferrals have been 90 day deferrals.  Total outstanding deferrals include 73 commercial loan deferrals with a total outstanding amount of $73.8 million, 83 residential loan deferrals with a total outstanding amount of $6.5 million, and 70 consumer loan deferrals with a total outstanding amount of $1.5 million.  Included in the commercial loan deferrals are 20 four time deferrals totaling $40.5 million and 2 five time deferrals totaling $10.6 million.  In most cases, these loans have been downgraded; however, they remain within the pass category, as little to no loss is anticipated.  One of the loans was already graded substandard prior to the deferrals being granted.  These loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act.  Pursuant to the CARES Act, these loan deferrals are not included in our nonperforming loans.

At March 31, 2021, we had 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.  The initial phase of the PPP program expired on August 8, 2020, and the loan forgiveness process began shortly thereafter.  Through March 31, 2021, we have had 1,563 of our PPP loans forgiven by the SBA in a total amount of $117.2 million.  During the first quarter, $98.1 million in PPP loans were paid off or forgiven.  An additional stimulus package, included as part of the Consolidated Appropriations Act 2021, was signed into law in late December 2020 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. On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law providing, among other things, additional funds for the PPP and an expansion of certain PPP eligibility requirements.  On March 30, 2021, the PPP Extension Act of 2021 was signed into law giving applicants two additional months (through May 31, 2021) to apply for PPP loans and giving the SBA until June 30, 2021 to process loan applications. As of March 31, 2021, CTBI has closed 1,857 loans totaling $99.1 million in new PPP loans stemming from the second phase of lending authorized by the Consolidated Appropriations Act 2021.