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Loans (Tables)
 9 Months Ended
Sep. 30, 2023
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
2023
    
December 31
2022
  
Hotel/motel
  
$
386,067
    
$
343,640
  
Commercial real estate residential
    
404,779
      
372,914
  
Commercial real estate nonresidential
    
788,287
      
762,349
  
Dealer floorplans
    
61,920
      
77,533
  
Commercial other
    
315,529
      
312,422
  
Commercial loans
    
1,956,582
      
1,868,858
  
                 
Real estate mortgage
    
916,580
      
824,996
  
Home equity lines
    
139,085
      
120,540
  
Residential loans
    
1,055,665
      
945,536
  
                 
Consumer direct
    
160,712
      
157,504
  
Consumer indirect
    
812,060
      
737,392
  
Consumer loans
    
972,772
      
894,896
  
                 
Loans and lease financing
  
$
3,985,019
    
$
3,709,290
  
Shift in Reserve Estimates Due to Change in Modeling

During the quarter ended June 30, 2023, CTBI implemented third party software for its ACL calculations.  During the implementation process, discounted cash flow modeling was chosen for all loan segments.  The primary reasons that contributed to this decision were:  Discounted cash flow (“DCF”) models allow for the effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner; the analysis aligns well with other calculations outside of the ACL estimation which will mitigate model risk in other areas; and peer data is available for certain inputs if first -party data is not available or meaningful.  This change in modeling resulted in a shift in our reserve estimates as of June 30, 2023 as presented below:

(in thousands)
  
ACL Software
June 30, 2023
    
CTBI Internal
ACL Model
June 30, 2023
    
Change in Allocation
  
                   
Hotel/motel
  
$
5,192
    
$
6,038
    
$
(846
)
Commercial real estate residential
    
3,749
      
4,669
      
(920
)
Commercial real estate nonresidential
    
7,797
      
8,794
      
(997
)
Dealer floorplans
    
1,157
      
1,719
      
(562
)
Commercial other
    
6,176
      
4,547
      
1,629
  
Commercial loans reserve allocation
    
24,071
      
25,767
      
(1,696
)
                         
Real estate mortgage
    
7,884
      
8,443
      
(559
)
Home equity lines
    
1,108
      
1,065
      
43
  
Residential loans reserve allocation
    
8,992
      
9,508
      
(516
)
                         
Consumer direct
    
2,563
      
1,673
      
890
  
Consumer indirect
    
12,392
      
10,959
      
1,433
  
Consumer loans reserve allocation
    
14,955
      
12,632
      
2,323
  
                         
Loans and lease financing allowance for credit loss
  
$
48,018
      
47,907
    
$
111
  
Balance in ACL

The following tables present the balance in the ACL for the periods ended September 30, 2023, December 31, 2022, and September 30, 2022:


 
  
Three Months Ended
September 30, 2023
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,192
    
$
611
    
$
0
    
$
0
    
$
5,803
  
Commercial real estate residential
    
3,749
      
66
      
0
      
9
      
3,824
  
Commercial real estate
nonresidential
    
7,797
      
181
      
0
      
39
      
8,017
  
Dealer floorplans
    
1,157
      
(314
)
    
0
      
0
      
843
  
Commercial other
    
6,176
      
(595
)
    
(195
)
    
159
      
5,545
  
Real estate mortgage
    
7,884
      
439
      
(4
)
    
17
      
8,336
  
Home equity
    
1,108
      
59
      
(10
)
    
1
      
1,158
  
Consumer direct
    
2,563
      
157
      
(148
)
    
41
      
2,613
  
Consumer indirect
    
12,392
      
1,267
      
(1,655
)
    
576
      
12,580
  
Total
  
$
48,018
    
$
1,871
    
$
(2,012
)
  
$
842
    
$
48,719
  

 
  
Nine Months Ended
September 30, 2023
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,171
    
$
632
    
$
0
    
$
0
    
$
5,803
  
Commercial real estate residential
    
4,894
      
(1,132
)
    
(28
)
    
90
      
3,824
  
Commercial real estate nonresidential
    
9,419
      
(1,765
)
    
(9
)
    
372
      
8,017
  
Dealer floorplans
    
1,776
      
(933
)
    
0
      
0
      
843
  
Commercial other
    
5,285
      
1,376
      
(1,455
)
    
339
      
5,545
  
Real estate mortgage
    
7,932
      
470
      
(99
)
    
33
      
8,336
  
Home equity
    
1,106
      
71
      
(23
)
    
4
      
1,158
  
Consumer direct
    
1,694
      
1,069
      
(386
)
    
236
      
2,613
  
Consumer indirect
    
8,704
      
5,208
      
(3,730
)
    
2,398
      
12,580
  
Total
  
$
45,981
    
$
4,996
    
$
(5,730
)
  
$
3,472
    
$
48,719
  

 
  
Year Ended
December 31, 2022
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,080
    
$
307
    
$
(216
)
  
$
0
    
$
5,171
  
Commercial real estate residential
    
3,986
      
951
      
(92
)
    
49
      
4,894
  
Commercial real estate
nonresidential
    
8,884
      
(154
)
    
(46
)
    
735
      
9,419
  
Dealer floorplans
    
1,436
      
340
      
0
      
0
      
1,776
  
Commercial other
    
4,422
      
947
      
(1,082
)
    
998
      
5,285
  
Real estate mortgage
    
7,637
      
466
      
(223
)
    
52
      
7,932
  
Home equity
    
866
      
257
      
(37
)
    
20
      
1,106
  
Consumer direct
    
1,951
      
(210
)
    
(609
)
    
562
      
1,694
  
Consumer indirect
    
7,494
      
2,001
      
(3,041
)
    
2,250
      
8,704
  
Total
  
$
41,756
    
$
4,905
    
$
(5,346
)
  
$
4,666
    
$
45,981
  

 
  
Three Months Ended
September 30, 2022
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
4,844
    
$
39
    
$
0
    
$
0
    
$
4,883
  
Commercial real estate residential
    
4,200
      
651
      
0
      
25
      
4,876
  
Commercial real estate nonresidential
    
8,968
      
617
      
0
      
10
      
9,595
  
Dealer floorplans
    
1,477
      
61
      
0
      
0
      
1,538
  
Commercial other
    
4,473
      
886
      
(307
)
    
145
      
5,197
  
Real estate mortgage
    
8,179
      
(338
)
    
(11
)
    
5
      
7,835
  
Home equity
    
887
      
41
      
0
      
12
      
940
  
Consumer direct
    
1,621
      
(71
)
    
(81
)
    
205
      
1,674
  
Consumer indirect
    
7,695
      
528
      
(804
)
    
476
      
7,895
  
Total
  
$
42,344
    
$
2,414
    
$
(1,203
)
  
$
878
    
$
44,433
  
 

 
Nine Months Ended
September 30, 2022
  
(in thousands)
  
Beginning
Balance
    
Provision
Charged to
Expense
    
Losses
Charged Off
    
Recoveries
    
Ending
Balance
  
ACL
                              
Hotel/motel
  
$
5,080
    
$
19
    
$
(216
)
  
$
0
    
$
4,883
  
Commercial real estate residential
    
3,986
      
885
      
(31
)
    
36
      
4,876
  
Commercial real estate nonresidential
    
8,884
      
568
      
0
      
143
      
9,595
  
Dealer floorplans
    
1,436
      
102
      
0
      
0
      
1,538
  
Commercial other
    
4,422
      
1,079
      
(651
)
    
347
      
5,197
  
Real estate mortgage
    
7,637
      
345
      
(188
)
    
41
      
7,835
  
Home equity
    
866
      
79
      
(24
)
    
19
      
940
  
Consumer direct
    
1,951
      
(316
)
    
(426
)
    
465
      
1,674
  
Consumer indirect
    
7,494
      
605
      
(1,815
)
    
1,611
      
7,895
  
Total
  
$
41,756
    
$
3,366
    
$
(3,351
)
  
$
2,662
    
$
44,433
  
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 and loans 90 days past due and still accruing segregated by class of loans for both September 30, 2023 and December 31, 2022 were as follows:

 
September 30, 2023
  
 (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
      
514
      
313
      
827
  
Commercial real estate nonresidential
    
0
      
970
      
1,163
      
2,133
  
Commercial other
    
0
      
561
      
379
      
940
  
Total commercial loans
    
0
      
2,045
      
1,855
      
3,900
  
                                 
Real estate mortgage
    
0
      
2,678
      
5,159
      
7,837
  
Home equity lines
    
0
      
193
      
468
      
661
  
Total residential loans
    
0
      
2,871
      
5,627
      
8,498
  
                                 
Consumer direct
    
0
      
0
      
29
      
29
  
Consumer indirect
    
0
      
0
      
558
      
558
  
Total consumer loans
    
0
      
0
      
587
      
587
  
                                 
Loans and lease financing
  
$
0
    
$
4,916
    
$
8,069
    
$
12,985
  

 
December 31, 2022
  
 (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
      
355
      
258
      
613
  
Commercial real estate nonresidential
    
0
      
1,116
      
1,947
      
3,063
  
Commercial other
    
0
      
982
      
369
      
1,351
  
Total commercial loans
    
0
      
2,453
      
2,574
      
5,027
  
                                 
Real estate mortgage
    
0
      
4,069
      
4,929
      
8,998
  
Home equity lines
    
0
      
291
      
487
      
778
  
Total residential loans
    
0
      
4,360
      
5,416
      
9,776
  
                                 
Consumer direct
    
0
      
0
      
41
      
41
  
Consumer indirect
    
0
      
0
      
465
      
465
  
Total consumer loans
    
0
      
0
      
506
      
506
  
                                 
Loans and lease financing
  
$
0
    
$
6,813
    
$
8,496
    
$
15,309
  
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, 2023 and December 31, 2022 (includes loans 90 days past due and still accruing as well):

 
September 30, 2023
  
(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
    
$
386,067
    
$
386,067
  
Commercial real estate residential
    
342
      
737
      
827
      
1,906
      
402,873
      
404,779
  
Commercial real estate nonresidential
    
380
      
486
      
1,798
      
2,664
      
785,623
      
788,287
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
61,920
      
61,920
  
Commercial other
    
970
      
192
      
698
      
1,860
      
313,669
      
315,529
  
Total commercial loans
    
1,692
      
1,415
      
3,323
      
6,430
      
1,950,152
      
1,956,582
  
                                                 
Real estate mortgage
    
1,017
      
3,008
      
5,976
      
10,001
      
906,579
      
916,580
  
Home equity lines
    
635
      
417
      
498
      
1,550
      
137,535
      
139,085
  
Total residential loans
    
1,652
      
3,425
      
6,474
      
11,551
      
1,044,114
      
1,055,665
  
                                                 
Consumer direct
    
537
      
135
      
29
      
701
      
160,011
      
160,712
  
Consumer indirect
    
3,474
      
751
      
558
      
4,783
      
807,277
      
812,060
  
Total consumer loans
    
4,011
      
886
      
587
      
5,484
      
967,288
      
972,772
  
                                                 
Loans and lease financing
  
$
7,355
    
$
5,726
    
$
10,384
    
$
23,465
    
$
3,961,554
    
$
3,985,019
  

 
December 31, 2022
  
(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
    
$
343,640
    
$
343,640
  
Commercial real estate residential
    
602
      
225
      
574
      
1,401
      
371,513
      
372,914
  
Commercial real estate nonresidential
    
2,549
      
395
      
2,611
      
5,555
      
756,794
      
762,349
  
Dealer floorplans
    
0
      
0
      
0
      
0
      
77,533
      
77,533
  
Commercial other
    
1,029
      
850
      
496
      
2,375
      
310,047
      
312,422
  
Total commercial loans
    
4,180
      
1,470
      
3,681
      
9,331
      
1,859,527
      
1,868,858
  
                                                 
Real estate mortgage
    
869
      
3,402
      
7,067
      
11,338
      
813,658
      
824,996
  
Home equity lines
    
786
      
44
      
740
      
1,570
      
118,970
      
120,540
  
Total residential loans
    
1,655
      
3,446
      
7,807
      
12,908
      
932,628
      
945,536
  
                                                 
Consumer direct
    
555
      
126
      
41
      
722
      
156,782
      
157,504
  
Consumer indirect
    
4,407
      
764
      
465
      
5,636
      
731,756
      
737,392
  
Total consumer loans
    
4,962
      
890
      
506
      
6,358
      
888,538
      
894,896
  
                                                 
Loans and lease financing
  
$
10,797
    
$
5,806
    
$
11,994
    
$
28,597
    
$
3,680,693
    
$
3,709,290
  
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, as well as gross charge-offs year to date, if any, segregated by class of loans and based on last credit decision or year of origination:

September 30, 2023
  
Term Loans Amortized Cost Basis by Origination Year
  
(in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
    
Total
  
Hotel/motel
                                                
Risk rating:
                                                
Pass
  
$
60,331
    
$
148,174
    
$
28,235
    
$
17,829
    
$
45,797
    
$
42,572
    
$
4,043
    
$
346,981
  
Watch
    
2,910
      
6,873
      
8,798
      
4,651
      
3,387
      
3,677
       0      
30,296
  
OAEM
    
0
      
0
      
6,899
      
0
      
0
      
0
      
0
      
6,899
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
1,130
      
0
      
1,130
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
761
      
0
      
761
  
Total hotel/motel
    
63,241
      
155,047
      
43,932
      
22,480
      
49,184
      
48,140
      
4,043
      
386,067
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
    
80,388
      
98,714
      
102,817
      
31,746
      
12,506
      
39,286
      
14,935
      
380,392
  
Watch
    
821
      
1,895
      
361
      
1,717
      
733
      
6,548
      
105
      
12,180
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
64
      
0
      
64
  
Substandard
    
480
      
601
      
4,701
      
830
      
288
      
5,243
      
0
      
12,143
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
    
81,689
      
101,210
      
107,879
      
34,293
      
13,527
      
51,141
      
15,040
      
404,779
  
                                                                 
Commercial real estate residential current period gross charge-offs
     0       0       (28 )     0       0       0       0       (28 )
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
    
119,199
      
143,457
      
149,481
      
77,786
      
63,228
      
148,356
      
26,884
      
728,391
  
Watch
    
517
      
3,870
      
6,452
      
9,662
      
7,541
      
6,525
      
487
      
35,054
  
OAEM
    
2,375
      
19
      
0
      
0
      
0
      
68
      
0
      
2,462
  
Substandard
    
1,389
      
1,435
      
2,516
      
4,500
      
3,121
      
9,404
      
0
      
22,365
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
15
      
0
      
15
  
Total commercial real estate nonresidential
    
123,480
      
148,781
      
158,449
      
91,948
      
73,890
      
164,368
      
27,371
      
788,287
  
                                                                 
Commercial real estate nonresidential current period gross charge-offs
     0       0       0       (9 )     0       0       0       (9 )
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
    
0
      
0
      
0
      
0
      
0
      
0
      
61,920
      
61,920
  
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 dealer floorplans
    
0
      
0
      
0
      
0
      
0
      
0
      
61,920
      
61,920
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
    
59,794
      
50,682
      
42,666
      
30,987
      
5,456
      
23,384
      
80,933
      
293,902
  
Watch
    
716
      
1,268
      
783
      
132
      
261
      
694
      
5,899
      
9,753
  
OAEM
    
0
      
30
      
0
      
0
      
0
      
0
      
30
      
60
  
Substandard
    
867
      
3,995
      
4,667
      
920
      
260
      
500
      
605
      
11,814
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial other
    
61,377
      
55,975
      
48,116
      
32,039
      
5,977
      
24,578
      
87,467
      
315,529
  
                                                                 
Commercial other current period gross charge-offs
     (516 )     (632 )     (154 )     (17 )     (90 )     (46 )     0       (1,455 )
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
    
319,712
      
441,027
      
323,199
      
158,348
      
126,987
      
253,598
      
188,715
      
1,811,586
  
Watch
    
4,964
      
13,906
      
16,394
      
16,162
      
11,922
      
17,444
      
6,491
      
87,283
  
OAEM
    
2,375
      
49
      
6,899
      
0
      
0
      
132
      
30
      
9,485
  
Substandard
    
2,736
      
6,031
      
11,884
      
6,250
      
3,669
      
16,277
      
605
      
47,452
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
776
      
0
      
776
  
Total commercial loans
  
$
329,787
    
$
461,013
    
$
358,376
    
$
180,760
    
$
142,578
    
$
288,227
    
$
195,841
    
$
1,956,582
  
                                                                 
Total commercial loans current period gross charge-offs
   $ (516 )   $ (632 )   $ (182 )   $ (26 )   $ (90 )   $ (46 )   $ 0     $ (1,492 )

December 31, 2022
  
Term Loans Amortized Cost Basis by Origination Year
  
(in thousands)
  
2022
    
2021
    
2020
    
2019
    
2018
    
Prior
    
Revolving
Loans
    
Total
  
Hotel/motel
                                                
Risk rating:
                                                
Pass
  
$
145,262
    
$
36,002
    
$
17,742
    
$
54,328
    
$
13,178
    
$
35,179
    
$
545
    
$
302,236
  
Watch
    
7,921
      
8,996
      
5,523
      
3,453
      
0
      
13,555
      
0
      
39,448
  
OAEM
    
0
      
0
      
0
      
0
      
0
      
1,956
      
0
      
1,956
  
Substandard
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total hotel/motel
  

153,183
    

44,998
    

23,265
    

57,781
    

13,178
    

50,690
    

545
    

343,640
  
                                                                 
Commercial real estate residential
                                                                
Risk rating:
                                                                
Pass
  

119,826
    

110,963
    

38,423
    

15,467
    

10,492
    

36,307
    

14,297
    

345,775
  
Watch
    
1,474
      
898
      
1,675
      
848
      
2,136
      
7,015
      
152
      
14,198
  
OAEM
    
0
      
0
      
0
      
39
      
0
      
0
      
29
      
68
  
Substandard
    
182
      
4,289
      
1,878
      
346
      
3,639
      
2,539
      
0
      
12,873
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
0
      
0
      
0
  
Total commercial real estate residential
  

121,482
    

116,150
    

41,976
    

16,700
    

16,267
    

45,861
    

14,478
    

372,914
  
                                                                 
Commercial real estate nonresidential
                                                                
Risk rating:
                                                                
Pass
  

175,220
    

171,311
    

80,932
    

70,848
    

44,099
    

137,575
    

23,166
    

703,151
  
Watch
    
3,331
      
5,765
      
10,090
      
2,178
      
1,962
      
10,022
      
1,550
      
34,898
  
OAEM
    
19
      
0
      
0
      
0
      
0
      
90
      
0
      
109
  
Substandard
    
1,939
      
2,537
      
4,877
      
3,135
      
508
      
10,865
      
25
      
23,886
  
Doubtful
    
0
      
0
      
0
      
0
      
0
      
305
      
0
      
305
  
Total commercial real estate nonresidential
  

180,509
    

179,613
    

95,899
    

76,161
    

46,569
    

158,857
    

24,741
    

762,349
  
                                                                 
Dealer floorplans
                                                                
Risk rating:
                                                                
Pass
  

0
    

0
    

0
    

0
    

0
    

0
    

77,153
    

77,153
  
Watch
    
0
      
0
      
0
      
0
      
0
      
0
      
380
      
380
  
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
    

77,533
    

77,533
  
                                                                 
Commercial other
                                                                
Risk rating:
                                                                
Pass
  

78,846
    

60,550
    

34,841
    

8,922
    

2,333
    

23,961
    

77,355
    

286,808
  
Watch
    
1,622
      
393
      
604
      
217
      
159
      
780
      
6,402
      
10,177
  
OAEM
    
30
      
0
      
0
      
0
      
0
      
0
      
30
      
60
  
Substandard
    
6,090
      
5,489
      
885
      
356
      
143
      
758
      
952
      
14,673
  
Doubtful
    
466
      
129
      
0
      
109
      
0
      
0
      
0
      
704
  
Total commercial other
  

87,054
    

66,561
    

36,330
    

9,604
    

2,635
    

25,499
    

84,739
    

312,422
  
                                                                 
Commercial loans
                                                                
Risk rating:
                                                                
Pass
  

519,154
    

378,826
    

171,938
    

149,565
    

70,102
    

233,022
    

192,516
    

1,715,123
  
Watch
    
14,348
      
16,052
      
17,892
      
6,696
      
4,257
      
31,372
      
8,484
      
99,101
  
OAEM
    
49
      
0
      
0
      
39
      
0
      
2,046
      
59
      
2,193
  
Substandard
    
8,211
      
12,315
      
7,640
      
3,837
      
4,290
      
14,162
      
977
      
51,432
  
Doubtful
    
466
      
129
      
0
      
109
      
0
      
305
      
0
      
1,009
  
Total commercial loans
  
$
542,228
    
$
407,322
    
$
197,470
    
$
160,246
    
$
78,649
    
$
280,907
    
$
202,036
    
$
1,868,858
  
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:

September 30, 2023
  
Term Loans Amortized Cost Basis by Origination Year
  
(in thousands)
  
2023
    
2022
    
2021
    
2020
    
2019
    
Prior
    
Revolving
Loans
    
Total
  
Home equity lines
                                                
Performing
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
8,194
    
$
130,230
    
$
138,424
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
460
      
201
      
661
  
Total home equity lines
    
0
      
0
      
0
      
0
      
0
      
8,654
      
130,431
      
139,085
  
 
                                                                
Home equity lines current period gross charge-offs
                                             (23 )     0       (23 )
 
                                                                
Mortgage loans
                                                                
Performing
    
154,430
      
169,909
      
164,008
      
122,622
      
57,895
      
239,879
      
0
      
908,743
  
Nonperforming
    
85
      
110
      
248
      
192
      
636
      
6,566
      
0
      
7,837
  
Total mortgage loans
    
154,515
      
170,019
      
164,256
      
122,814
      
58,531
      
246,445
      
0
      
916,580
  
 
                                                                
Mortgage loans current period gross charge-offs
     0       0       (47 )     0       (1 )     (51 )     0       (99 )
 
                                                                
Residential loans
                                                                
Performing
    
154,430
      
169,909
      
164,008
      
122,622
      
57,895
      
248,073
      
130,230
      
1,047,167
  
Nonperforming
    
85
      
110
      
248
      
192
      
636
      
7,026
      
201
      
8,498
  
Total residential loans
    
154,515
      
170,019
      
164,256
      
122,814
      
58,531
      
255,099
      
130,431
      
1,055,665
  
 
                                                                
Total residential loans current period gross charge-offs
   $ 0     $ 0     $ (47 )   $ 0     $ (1 )   $ (74 )   $ 0     $ (122 )
 
                                                                
Consumer direct loans
                                                                
Performing
  
$
52,926
    
$
40,153
    
$
28,867
    
$
17,302
    
$
8,126
    
$
13,309
    
$
0
    
$
160,683
  
Nonperforming
    
22
      
7
      
0
      
0
      
0
      
0
      
0
      
29
  
Total consumer direct loans
    
52,948
      
40,160
      
28,867
      
17,302
      
8,126
      
13,309
      
0
      
160,712
  
 
                                                                
Total consumer direct loans current period gross charge-offs
     (13 )     (229 )     (72 )     (33 )     (25 )     (14 )     0       (386 )
 
                                                                
Consumer indirect loans
                                                                
Performing
    
291,394
      
276,030
      
122,173
      
78,939
      
28,370
      
14,596
      
0
      
811,502
  
Nonperforming
    
64
      
280
      
163
      
27
      
6
      
18
      
0
      
558
  
Total consumer indirect loans
    
291,458
      
276,310
      
122,336
      
78,966
      
28,376
      
14,614
      
0
      
812,060
  
 
                                                                
Total consumer indirect loans current period gross charge-offs
     (213 )     (1,568 )     (1,375 )     (370 )     (94 )     (110 )     0       (3,730 )
 
                                                                
Consumer loans
                                                                
Performing
    
344,320
      
316,183
      
151,040
      
96,241
      
36,496
      
27,905
      
0
      
972,185
  
Nonperforming
    
86
      
287
      
163
      
27
      
6
      
18
    
0
      
587
  
Total consumer loans
    
344,406
      
316,470
      
151,203
      
96,268
      
36,502
      
27,923
     $
0
      
972,772
  
 
                                                                
Total consumer loans current period gross charge-offs
   $ (226 )   $ (1,797 )   $ (1,447 )   $ (403 )   $ (119 )   $ (124 )   $ 0     $ (4,116 )

December 31, 2022
  
Term Loans Amortized Cost Basis by Origination Year
  
(in thousands)
  
2022
    
2021
    
2020
    
2019
    
2018
    
Prior
    
Revolving
Loans
    
Total
  
Home equity lines
                                                
Performing
  
$
0
    
$
0
    
$
0
    
$
0
    
$
0
    
$
10,195
    
$
109,567
    
$
119,762
  
Nonperforming
    
0
      
0
      
0
      
0
      
0
      
502
      
276
      
778
  
Total home equity lines
  

0
    

0
    

0
    

0
    

0
    

10,697
    

109,843
    

120,540
  
                                                                 
Mortgage loans
                                                                
Performing
  

176,736
    

177,469
    

132,795
    

62,415
    

30,473
    

236,110
    

0
    

815,998
  
Nonperforming
    
0
      
282
      
98
      
791
      
422
      
7,405
      
0
      
8,998
  
Total mortgage loans
  

176,736
    

177,751
    

132,893
    

63,206
    

30,895
    

243,515
    

0
    

824,996
  
                                                                 
Residential loans
                                                                
Performing
  

176,736
    

177,469
    

132,795
    

62,415
    

30,473
    

246,305
    

109,567
    

935,760
  
Nonperforming
    
0
      
282
      
98
      
791
      
422
      
7,907
      
276
      
9,776
  
Total residential loans
  
$
176,736
    
$
177,751
    
$
132,893
    
$
63,206
    
$
30,895
    
$
254,212
    
$
109,843
    
$
945,536
  
                                                                 
Consumer direct loans
                                                                
Performing
  
$
62,239
    
$
42,014
    
$
23,921
    
$
11,166
    
$
6,766
    
$
11,357
    
$
0
    
$
157,463
  
Nonperforming
    
25
      
11
      
5
      
0
      
0
      
0
      
0
      
41
  
Total consumer direct loans
  

62,264
    

42,025
    

23,926
    

11,166
    

6,766
    

11,357
    

0
    

157,504
  
                                                                 
Consumer indirect loans
                                                                
Performing
  

371,079
    

168,513
    

116,267
    

45,748
    

26,247
    

9,073
    

0
    

736,927
  
Nonperforming
    
65
      
251
      
96
      
30
      
1
      
22
      
0
      
465
  
Total consumer indirect loans
  

371,144
    

168,764
    

116,363
    

45,778
    

26,248
    

9,095
    

0
    

737,392
  
                                                                 
Consumer loans
                                                                
Performing
  

433,318
    

210,527
    

140,188
    

56,914
    

33,013
    

20,430
    

0
    

894,390
  
Nonperforming
    
90
      
262
      
101
      
30
      
1
      
22
      
0
      
506
  
Total consumer loans
  
$
433,408
    
$
210,789
    
$
140,289
    
$
56,944
    
$
33,014
    
$
20,452
    
$
0
    
$
894,896
  
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:

 
September 30, 2023
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
2
    
$
8,029
    
$
0
  
Commercial real estate residential
    
2
      
5,116
      
0
  
Commercial real estate nonresidential
    
6
      
11,633
      
0
  
Commercial other
    
2
      
6,201
      
0
  
Total collateral dependent loans
    
12
    
$
30,979
    
$
0
  

 
December 31, 2022
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
1
    
$
1,168
    
$
0
  
Commercial real estate residential
    
4
      
7,786
      
0
  
Commercial real estate nonresidential
    
8
      
14,718
      
200
  
Commercial other
    
2
      
8,926
      
1,000
  
Total collateral dependent loans
    
15
    
$
32,598
    
$
1,200
  

 
September 30, 2022
  
(in thousands)
  
Number of
Loans
    
Recorded
Investment
    
Specific
Reserve
  
Hotel/motel
    
1
    
$
1,181
    
$
0
  
Commercial real estate residential
    
3
      
5,820
      
0
  
Commercial real estate nonresidential
    
9
      
16,720
      
350
  
Commercial other
    
2
      
9,185
      
1,000
  
Total collateral dependent loans
    
15
    
$
32,906
    
$
1,350
  
Modified Loans Segregated by Class of Loans and Concession Granted

Certain loans have been modified where the customer is facing financial difficulty and economic concessions were granted to borrowers consisting of reductions in the interest rates, payment extensions, forgiveness of principal, and forbearances.  Those loans, segregated by class of loans and concession granted, are presented below for the three months ended September 30, 2023:

   
Interest Rate Reduction
    
Term Extension
  
(in thousands)
  
Amortized Cost at
September 30, 2023
    
% of total
    
Amortized Cost at
September 30, 2023
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
269
      
0.07
      
196
      
0.05
  
Commercial real estate nonresidential
    
0
       0.00
      
1,883
      
0.24
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
164
      
0.05
  
Commercial loans
    
269
      
0.01
      
2,243
      
0.11
  
                                 
Real estate mortgage
    
0
      
0.00
      
1,362
      
0.15
  
Home equity lines
    
0
      
0.00
      
224
      
0.16
  
Residential loans
    
0
      
0.00
      
1,586
      
0.15
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
0
      
0.00
  
Consumer loans
    
0
      
0.00
      
0
      
0.00
  
                                 
Loans and lease financing
  
$
269
      
0.01
%
  
$
3,829
       0.10
%

   
Combination – Term Extension
and Interest Rate Reduction
    
Payment Change
  
(in thousands)
  
Amortized Cost at
September 30, 2023
    
% of total
    
Amortized Cost at
September 30, 2023
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
0
      
0.00
      
0
      
0.00
  
Commercial real estate nonresidential
    
0
      
0.00
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
81
      
0.03
  
Commercial loans
    
0
      
0.00
      
81
      
0.00
  
                                 
Real estate mortgage
    
661
      
0.07
      
0
      
0.00
  
Home equity lines
    
49
      
0.04
      
0
      
0.00
  
Residential loans
    
710
      
0.07
      
0
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
0
      
0.00
  
Consumer indirect
    
0
      
0.00
      
0
      
0.00
  
Consumer loans
    
0
      
0.00
      
0
      
0.00
  
                                 
Loans and lease financing
  
$
710
      
0.02
%
  
$
81
      
0.00
%


Those loans, segregated by class of loans and concession granted, are presented below for the nine months ended September 30, 2023:

   
Interest Rate Reduction
    
Term Extension
  
(in thousands)
  
Amortized Cost at
September 30, 2023
    
% of total
    
Amortized Cost at
September 30, 2023
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
537
      
0.13
      
1,587
      
0.39
  
Commercial real estate nonresidential
    
4,542
      
0.58
      
5,297
      
0.67
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
1,524
      
0.48
  
Commercial loans
    
5,079
      
0.26
      
8,408
      
0.43
  
                                 
Real estate mortgage
    
58
      
0.01
      
4,373
      
0.48
  
Home equity lines
    
0
      
0.00
      
250
      
0.18
  
Residential loans
    
58
      
0.01
      
4,623
      
0.44
  
                                 
Consumer direct
    
0
      
0.00
      
192
      
0.12
  
Consumer indirect
    
0
      
0.00
      
394
      
0.05
  
Consumer loans
    
0
      
0.00
      
586
      
0.06
  
                                 
Loans and lease financing
  
$
5,137
       0.13 %  
$
13,617
       0.34 %

   
Combination – Term Extension
and Interest Rate Reduction
    
Payment Change
  
(in thousands)
  
Amortized Cost at
September 30, 2023
    
% of total
    
Amortized Cost at
September 30, 2023
    
% of total
  
Hotel/motel
  
$
0
      
0.00
%
  
$
0
      
0.00
%
Commercial real estate residential
    
44
      
0.01
      
0
      
0.00
  
Commercial real estate nonresidential
    
0
      
0.00
      
0
      
0.00
  
Dealer floorplans
    
0
      
0.00
      
0
      
0.00
  
Commercial other
    
0
      
0.00
      
130
      
0.04
  
Commercial loans
    
44
      
0.00
      
130
      
0.01
  
                                 
Real estate mortgage
    
1,085
      
0.12
      
0
      
0.00
  
Home equity lines
    
126
      
0.09
      
0
      
0.00
  
Residential loans
    
1,211
      
0.11
      
0
      
0.00
  
                                 
Consumer direct
    
0
      
0.00
      
19
      
0.01
  
Consumer indirect
    
0
      
0.00
      
0
      
0.00
  
Consumer loans
    
0
      
0.00
      
19
      
0.00
  
                                 
Loans and lease financing
  
$
1,255
      
0.03
%
  
$
149
      
0.00
%
Financial Effect of Modifications Made to Borrowers Experiencing Financial Difficulty

The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the three months ended September 30, 2023:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
         
Hotel/motel
           
         
Commercial real estate residential
  
Reduced weighted-average contractual interest rate from 9.5% to 7.5%
  
Added a weighted-average 2 years to life of the loans
         
Commercial real estate nonresidential
  

 
Added a weighted-average 0.2 years to life of the loans
         
Dealer floorplans
           
         
Commercial other
      
Added a weighted-average 0.8 years to life of the loans
               
Real estate mortgage
  

 
Added a weighted-average 1 years to life of the loans
         
Home equity lines
  
 
Added a weighted-average 4.9 years to life of the loans
               
Consumer direct
      

         
Consumer indirect
      


Loan Type
  
Combination – Term Extension and
 Interest Rate Reduction
Financial Impact
  
Payment Changes
Financial Impact
         
Hotel/motel
           
         
Commercial real estate residential
  

   
         
Commercial real estate nonresidential
           
         
Dealer floorplans
           
         
Commercial other
      
Provided payment changes that will be added to the end of the original loan term
               
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 5.8% to 5.7% and increased the weighted-average life by 13.1 years
    
         
Home equity lines
  
Reduced weighted-average contractual interest rate from 9.9% to 8.3% and increased the weighted-average life by 8.2 years
  

               
Consumer direct
      

         
Consumer indirect
       


The following table describes the financial effect of the modifications made to borrowers experiencing financial difficulty for the nine months ended September 30, 2023:

Loan Type
  
Interest Rate Reduction
Financial Impact
  
Term Extension
Financial Impact
Hotel/motel
         
           
Commercial real estate residential
  
Reduced weighted-average contractual interest rate from 9.5% to 7.8%
  
Added a weighted-average 0.6 years to life of the loans
           
Commercial real estate nonresidential
  
Reduced weighted-average contractual interest rate from 9.5% to 7.5%
  
Added a weighted-average 0.1 years to life of the loans
           
Dealer floorplans
         
           
Commercial other
      
Added a weighted-average 1.4 years to life of the loans
           
Real estate mortgage
  
Resulted in no change of the weighted average contractual interest rate of 3.0%
  
Added a weighted-average 2.3 years to life of the loans
           
Home equity lines
      
Added a weighted-average 5.8 years to life of the loans
           
Consumer direct
      
Removed a weighted-average 0.7 years from life of the loans
           
Consumer indirect
      
Added a weighted-average 0.3 years to life of the loans

Loan Type
  
Combination – Term Extension and
Interest Rate Reduction
Financial Impact
  
Payment Changes
Financial Impact
Hotel/motel
         
           
Commercial real estate residential
  
Reduced weighted-average contractual interest rate from 10.8% to 6.5% and increased the weighted-average life by 0.3 years
    
           
Commercial real estate nonresidential
         
           
Dealer floorplans
         
           
Commercial other
      
Provided payment changes that will be added to the end of the original loan term
           
Real estate mortgage
  
Reduced weighted-average contractual interest rate from 6.3% to 5.9% and increased the weighted-average life by 12.4 years
    
           
Home equity lines
  
Reduced weighted-average contractual interest rate from 9.4% to 8.1% and increased the weighted-average life by 9.4 years
  

           
Consumer direct
      
Provided payment changes that will be added to the end of the original loan term
           
Consumer indirect
         
Troubled Debt Restructuring Presented  below, segregated by class of loans, are TDRs that occurred during the three and nine months ended September 30, 2022 and the year ended December 31, 2022:

 
Three Months Ended
September 30, 2022
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
2
     $
318
     $
0
     $
318
  
Commercial real estate nonresidential
    
1
      
190
      
0
      
190
  
Commercial other
    
1
      
5,222
      
0
      
5,222
  
Total commercial loans
    
4
      
5,730
      
0
      
5,730
  
                                 
Real estate mortgage
     2       288       393       681  
Total residential loans
     2       288       393       681  
                                 
Total troubled debt restructurings
    
6
    
$
6,018
    
$
393
    
$
6,411
  

 
Three Months Ended
September 30, 2022
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
2
     $
318
    
0
     $
318
  
Commercial real estate nonresidential
    
1
      
189
      
0
      
189
  
Commercial other
    
1
      
5,222
      
0
      
5,222
  
Total commercial loans
    
4
      
5,729
      
0
      
5,729
  
                                 
Real estate mortgage
     2       288       393       681  
Total residential loans
     2       288       393       681  
                                 
Total troubled debt restructurings
    
6
    
$
6,017
    
$
393
    
$
6,410
  

 
Nine Months Ended
September 30, 2022
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
4
     $ 
472
     $ 
0
     $
472
  
Commercial real estate nonresidential
    
3
      
435
      
0
      
435
  
Commercial other
    
10
      
11,748
      
0
      
11,748
  
Total commercial loans
    
17
      
12,655
      
0
      
12,655
  
                                 
Real estate mortgage
     5       593       1,309       1,902  
Total residential loans
     5       593       1,309       1,902  
                                 
Total troubled debt restructurings
    
22
    
$
13,248
    
$
1,309
    
$
14,557
  

 
Nine Months Ended
September 30, 2022
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
    
Total
Modification
  
Commercial real estate residential
    
4
     $
472
     $
0
     $
472
  
Commercial real estate nonresidential
    
3
      
433
      
0
      
433
  
Commercial other
    
10
      
11,747
      
0
      
11,747
  
Total commercial loans
    
17
      
12,652
      
0
      
12,652
  
                                 
Real estate mortgage
     5       593       1,309       1,902  
Total residential loans
     5       593       1,309       1,902  
                                 
Total troubled debt restructurings
    
22
    
$
13,245
    
$
1,309
    
$
14,554
  

 
Year Ended
December 31, 2022
  
   
Pre-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
     Other    
Total
Modification
  
Commercial real estate residential
    
6
     $
659
     $
0
     $
66     $ 725  
Commercial real estate nonresidential
    
8
      
1,206
      
0
       118       1,324  
Hotel/motel
     0       0       0       0       0  
Commercial other
    
22
      
12,812
      
0
       66       12,878  
Total commercial loans
    
36
      
14,677
      
0
       250       14,927  
                                       
Real estate mortgage
    
5
      
593
      
1,309
       0       1,902  
Total residential loans
    
5
      
593
      
1,309
       0       1,902  
                                       
Total troubled debt restructurings
    
41
    
$
15,270
    
$
1,309
     $ 250     $ 16,829  

 
Year Ended
December 31, 2022
  
   
Post-Modification Outstanding Balance
  
(in thousands)
  
Number of
Loans
    
Term
Modification
    
Combination
     Other    
Total
Modification
  
Commercial real estate residential
    
6
     $
659
     $
0
     $
66     $
725  
Commercial real estate nonresidential
    
8
      
1,342
      
0
       118       1,460  
Hotel/motel
     0       0       0       0       0  
Commercial other
    
22
      
12,811
      
0
       66       12,877  
Total commercial loans
    
36
      
14,812
      
0
       250       15,062  
                                       
Real estate mortgage
    
5
      
593
      
1,309
       0       1,902  
Total residential loans
    
5
      
593
      
1,309
       0       1,902  
                                       
Total troubled debt restructurings
    
41
    
$
15,405
    
$
1,309
     $ 250     $ 16,964  
Payment Status of Modified Loans to Borrowers Experiencing Financial Difficulty The table below represents the payment status of modified loans to borrowers experiencing financial difficulty.

   
Past Due Status (Amortized Cost Basis)
  
   
Current
      
30-89 Days
      
90+ Days

 
Nonaccrual
  
Hotel/motel
  
$
0
    
$
0
    
$
0
    
$
0
  
Commercial real estate residential
    
2,122
      
44
      
0
      
0
  
Commercial real estate nonresidential
    
9,813
      
0
      
26
      
0
  
Dealer floorplans
    
0
      
0
      
0
      
0
  
Commercial other
    
1,060
      
320
      
345
      
264
  
Real estate mortgage
    
3,935
      
1,442
      
139
      
349
  
Home equity lines
    
519
      
100
      
0
      
22
  
Consumer direct
    
207
      
3
      
0
      
0
  
Consumer indirect
    
366
      
29
      
0
      
0
  
Total
  
$
18,022
    
$
1,938
    
$
510
    
$
635