Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | COMMUNITY TRUST BANCORP INC /KY/ | |
Entity Central Index Key | 350,852 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 17,732,578 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 53,912 | $ 47,528 |
Interest bearing deposits | 110,121 | 127,746 |
Federal funds sold | 7,300 | 0 |
Cash and cash equivalents | 171,333 | 175,274 |
Certificates of deposit in other banks | 5,145 | 9,800 |
Securities available-for-sale at fair value (amortized cost of $582,983 and $590,199, respectively) | 569,208 | 585,761 |
Securities held-to-maturity at amortized cost (fair value of $660 and $660, respectively) | 659 | 659 |
Loans held for sale | 1,029 | 1,033 |
Loans | 3,177,888 | 3,122,940 |
Allowance for loan and lease losses | (35,791) | (36,151) |
Net loans | 3,142,097 | 3,086,789 |
Premises and equipment, net | 45,808 | 46,318 |
Federal Home Loan Bank stock | 14,713 | 17,927 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Goodwill | 65,490 | 65,490 |
Bank owned life insurance | 66,715 | 65,354 |
Mortgage servicing rights | 3,815 | 3,484 |
Other real estate owned | 29,666 | 31,996 |
Other assets | 53,278 | 41,459 |
Total assets | 4,173,843 | 4,136,231 |
Deposits: | ||
Noninterest bearing | 826,804 | 790,930 |
Interest bearing | 2,446,842 | 2,472,933 |
Total deposits | 3,273,646 | 3,263,863 |
Repurchase agreements | 250,983 | 243,814 |
Federal funds purchased | 1,305 | 7,312 |
Advances from Federal Home Loan Bank | 787 | 845 |
Long-term debt | 59,341 | 59,341 |
Deferred taxes | 2,497 | 4,434 |
Other liabilities | 35,020 | 25,923 |
Total liabilities | 3,623,579 | 3,605,532 |
Shareholders' equity: | ||
Preferred stock, 300,000 shares authorized and unissued | 0 | 0 |
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2018 - 17,728,075; 2017 - 17,692,912 | 88,641 | 88,465 |
Capital surplus | 222,814 | 221,472 |
Retained earnings | 249,691 | 224,268 |
Accumulated other comprehensive loss, net of tax | (10,882) | (3,506) |
Total shareholders' equity | 550,264 | 530,699 |
Total liabilities and shareholders' equity | $ 4,173,843 | $ 4,136,231 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Securities available-for-sale at amortized cost | $ 582,983 | $ 590,199 |
Securities held-to-maturity at fair value | $ 660 | $ 660 |
Shareholders' equity: | ||
Preferred stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares outstanding (in shares) | 17,728,075 | 17,692,912 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income: | ||||
Interest and fees on loans, including loans held for sale | $ 39,420 | $ 36,288 | $ 113,788 | $ 104,643 |
Interest and dividends on securities | ||||
Taxable | 2,422 | 2,198 | 7,314 | 6,458 |
Tax exempt | 699 | 741 | 2,102 | 2,211 |
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock | 341 | 308 | 1,002 | 867 |
Interest on Federal Reserve Bank deposits | 659 | 240 | 1,811 | 695 |
Other, including interest on federal funds sold | 66 | 69 | 195 | 149 |
Total interest income | 43,607 | 39,844 | 126,212 | 115,023 |
Interest expense: | ||||
Interest on deposits | 6,051 | 3,754 | 16,508 | 9,876 |
Interest on repurchase agreements | 818 | 466 | 2,176 | 1,215 |
Interest on advances from Federal Home Loan Bank | 3 | 226 | 7 | 394 |
Interest on long-term debt | 599 | 428 | 1,646 | 1,238 |
Total interest expense | 7,471 | 4,874 | 20,337 | 12,723 |
Net interest income | 36,136 | 34,970 | 105,875 | 102,300 |
Provision for loan losses | 1,543 | 666 | 4,418 | 4,659 |
Net interest income after provision for loan losses | 34,593 | 34,304 | 101,457 | 97,641 |
Noninterest income: | ||||
Service charges on deposit accounts | 6,671 | 6,499 | 19,372 | 18,658 |
Gains on sales of loans, net | 319 | 390 | 902 | 897 |
Trust and wealth management income | 2,836 | 2,534 | 8,650 | 7,769 |
Loan related fees | 1,022 | 792 | 3,085 | 2,570 |
Bank owned life insurance | 555 | 583 | 3,112 | 1,633 |
Brokerage revenue | 331 | 297 | 1,054 | 1,032 |
Securities gains (losses) | (2) | 48 | (288) | 58 |
Other noninterest income | 931 | 1,059 | 3,826 | 3,475 |
Total noninterest income | 12,663 | 12,202 | 39,713 | 36,092 |
Noninterest expense: | ||||
Officer salaries and employee benefits | 3,475 | 2,933 | 9,909 | 8,860 |
Other salaries and employee benefits | 11,789 | 11,146 | 36,396 | 34,187 |
Occupancy, net | 2,019 | 2,043 | 6,178 | 6,042 |
Equipment | 725 | 741 | 2,169 | 2,275 |
Data processing | 1,695 | 1,772 | 4,965 | 5,318 |
Bank franchise tax | 1,618 | 1,205 | 4,896 | 4,246 |
Legal fees | 373 | 429 | 1,275 | 1,256 |
Professional fees | 507 | 478 | 1,504 | 1,525 |
Advertising and marketing | 744 | 705 | 2,352 | 2,098 |
FDIC insurance | 314 | 316 | 907 | 923 |
Other real estate owned provision and expense | 1,094 | 1,313 | 3,348 | 4,056 |
Repossession expense | 246 | 269 | 959 | 697 |
Amortization of limited partnership investments | 609 | 605 | 1,825 | 1,814 |
Other noninterest expense | 2,898 | 2,977 | 12,543 | 8,845 |
Total noninterest expense | 28,106 | 26,932 | 89,226 | 82,142 |
Income before income taxes | 19,150 | 19,574 | 51,944 | 51,591 |
Income taxes | 3,044 | 5,811 | 8,425 | 15,010 |
Net income | 16,106 | 13,763 | 43,519 | 36,581 |
Unrealized holding gains (losses) on securities available-for-sale: | ||||
Unrealized holding gains (losses) arising during the period | (2,521) | (522) | (9,830) | 2,223 |
Less: Reclassification adjustments for realized gains (losses) included in net income | (2) | 48 | 149 | 58 |
Tax expense (benefit) | (529) | (199) | (2,096) | 758 |
Unrealized holding gains (losses) on securities available-for-sale, net of tax | (1,990) | (371) | (7,883) | 1,407 |
Implementation of ASU 2016-01 | 0 | 0 | 507 | 0 |
Other comprehensive income (loss), net of tax | (1,990) | (371) | (7,376) | 1,407 |
Comprehensive income | $ 14,116 | $ 13,392 | $ 36,143 | $ 37,988 |
Basic earnings per share (in dollars per share) | $ 0.91 | $ 0.78 | $ 2.46 | $ 2.08 |
Diluted earnings per share (in dollars per share) | $ 0.91 | $ 0.78 | $ 2.46 | $ 2.07 |
Weighted average shares outstanding-basic (in shares) | 17,691 | 17,633 | 17,683 | 17,625 |
Weighted average shares outstanding-diluted (in shares) | 17,710 | 17,653 | 17,700 | 17,645 |
Dividends declared per share (in dollars per share) | $ 0.36 | $ 0.33 | $ 1.02 | $ 0.97 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 43,519 | $ 36,581 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,853 | 3,019 |
Deferred taxes | 159 | 122 |
Stock-based compensation | 553 | 447 |
Provision for loan losses | 4,418 | 4,659 |
Write-downs of other real estate owned and other repossessed assets | 1,990 | 2,871 |
Gains on sale of mortgage loans held for sale | (902) | (897) |
Securities (gains) losses | 288 | (58) |
Gain on debt repurchase | 0 | (560) |
Gains on sale of assets, net | (107) | (2) |
Proceeds from sale of mortgage loans held for sale | 40,284 | 40,130 |
Funding of mortgage loans held for sale | (39,378) | (39,594) |
Amortization of securities premiums and discounts, net | 3,648 | 2,375 |
Change in cash surrender value of bank owned life insurance | (2,563) | (1,117) |
Mortgage servicing rights: | ||
Fair value adjustments | (2) | 419 |
New servicing assets created | (329) | (269) |
Changes in: | ||
Other assets | (11,904) | (3,412) |
Other liabilities | 9,497 | 1,181 |
Net cash provided by operating activities | 52,024 | 45,895 |
Certificates of deposit in other banks: | ||
Purchase of certificates of deposit | 0 | (11,515) |
Maturity of certificates of deposit | 4,655 | 1,225 |
Securities available-for-sale (AFS): | ||
Purchase of AFS securities | (144,177) | (146,822) |
Proceeds from the sales of AFS securities | 57,079 | 66,359 |
Proceeds from prepayments and maturities of AFS securities | 89,735 | 82,672 |
Securities held-to-maturity (HTM): | ||
Proceeds from maturities of HTM securities | 0 | 8 |
Change in loans, net | (60,707) | (181,282) |
Purchase of premises and equipment | (2,343) | (1,681) |
Proceeds from sale and retirement of premises and equipment | 23 | 25 |
Redemption of stock by Federal Home Loan Bank | 3,214 | 0 |
Proceeds from sale of other real estate and repossessed assets | 1,491 | 3,073 |
Proceeds from settlement of bank owned life insurance | 1,202 | 0 |
Net cash used in investing activities | (49,828) | (187,938) |
Cash flows from financing activities: | ||
Change in deposits, net | 9,783 | 119,058 |
Change in repurchase agreements and federal funds purchased, net | 1,162 | 12,322 |
Proceeds from Federal Home Loan Bank advances | 0 | 150,000 |
Payments on advances from Federal Home Loan Bank | (58) | (100,075) |
Repurchase of long-term debt | 0 | (1,440) |
Issuance of common stock | 1,003 | 1,017 |
Dividends paid | (18,027) | (17,139) |
Net cash provided by (used in) financing activities | (6,137) | 163,743 |
Net increase (decrease) in cash and cash equivalents | (3,941) | 21,700 |
Cash and cash equivalents at beginning of period | 175,274 | 144,716 |
Cash and cash equivalents at end of period | 171,333 | 166,416 |
Supplemental disclosures: | ||
Income taxes paid | 8,700 | 16,250 |
Interest paid | 18,185 | 11,151 |
Non-cash activities: | ||
Loans to facilitate the sale of other real estate owned and repossessed assets | 2,680 | 2,250 |
Common stock dividends accrued, paid in subsequent quarter | 220 | 208 |
Real estate acquired in settlement of loans | $ 3,693 | $ 4,156 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments (which consist of normal recurring adjustments) necessary, to present fairly the condensed consolidated financial position as of September 30, 2018, the results of operations for the three and nine months ended September 30, 2018 and 2017 and the cash flows for the nine months ended September 30, 2018 and 2017. In accordance with accounting principles generally accepted in the United States of America for interim financial information, these statements do not include certain information and footnote disclosures required by accounting principles generally accepted in the United States of America for complete annual financial statements. The results of operations for the three and nine months ended September 30, 2018 and 2017 and the cash flows for the nine months ended September 30, 2018 and 2017 are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements of Community Trust Bancorp, Inc. (“CTBI”) for that period. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2017, included in our annual report on Form 10-K. Principles of Consolidation – Reclassifications – New Accounting Standards Ø Financial Instruments – Overall Financial Instruments – Overall (Subtopic 825-10) Ø Leases – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance We have calculated the minimum and maximum net present value of all potential lease payments to be between $10.1 million and $20.3 million. We have determined the renewal periods reasonably expected to be exercised. We are now in the process of determining the amount to recognize as right of use assets and the corresponding lease liabilities. We have purchased software in order to finalize the impact of this ASU and provide tracking going forward. In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: · The timing and pattern of transfer of the nonlease component(s) and associated lease component are the same. · The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We will determine which method we will elect to use as we progress through the implementation phase. Ø Revenue from Contracts with Customers – Revenue from Contracts with Customers Accounting Standards Codification 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other generally accepted accounting principles (“GAAP”) discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows: · Service charges on deposit accounts represents general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. · Trust and wealth management income represents monthly or quarterly fees due from wealth management customers as consideration for managing the customers’ assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services, and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month or quarter, which is generally the time that payment is received. · Brokerage revenue is transaction based and collected upon the settlement of the transaction. Other sales, such as life insurance, generate commissions from other third parties. These fees are generally collected monthly. · Other noninterest income primarily includes items such as letter of credit fees, gains on sale of loans held for sale and servicing fees related to mortgage and commercial loans, none of which are subject to the requirements of ASC 606. Ø Accounting for Credit Losses Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. CTBI has an implementation team working through the provisions of ASU 2016-13 including assessing the impact on its accounting and disclosures. The team has established the historical data that will be available and has identified the potential loan segments to be analyzed. We are continuing data analysis, including the analysis of historical charge-off and recovery data. Ø Statement of Cash Flows Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update apply to all entities that are required to present a statement of cash flows under Topic 230. This Update is the final version of Proposed Accounting Standards Update EITF-15F— Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230) , which has been deleted. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this ASU effective January 1, 2018 with no Ø Simplifying the Test for Goodwill Impairment Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment Ø Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities Ø Income Statement—Reporting Comprehensive Income Income Statement—Reporting Comprehensive Income (Topic 220) Ø Income Taxes—Amendments to SEC Paragraphs – Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 Ø Changes to the Disclosure Requirements for Fair Value Measurement Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820 as follows: Removals The following disclosure requirements were removed from Topic 820: · The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy · The policy for timing of transfers between levels · The valuation processes for Level 3 fair value measurements Modifications The following disclosure requirements were modified in Topic 820: · For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and · The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions The following disclosure requirements were added to Topic 820: · The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and · The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. CTBI plans to adopt ASU 2018-13 effective January 1, 2020 with minimal changes to our current reporting. Ø Accounting for Costs of Implementing a Cloud Computing Service Agreement Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The ASU aligns the following requirements for capitalizing implementation costs: · Those incurred in a hosting arrangement that is a service contract, and · Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license. This ASU will be effective beginning January1, 2020. We do not anticipate a significant impact to our consolidated financial statements. Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes. Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements. We believe the application of accounting policies and the estimates required therein are reasonable. These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates. We have identified the following critical accounting policies: Investments Investment Securities a. Trading securities . . b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities. We do not have any securities that are classified as trading securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders’ equity, net of tax. If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. Beginning in January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in net income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. Equity securities without a readily determinable fair value are recorded at cost less impairment, if any, adjusted for subsequent observable price changes. Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost. Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings. When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on CTBI’s results of operations and financial condition. Loans A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment. Allowance for Loan and Lease Losses We utilize an internal risk grading system for commercial credits. Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated. The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ALLL for these loans is measured under ASC 450, Contingencies When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to CTBI, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent. If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent. For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made. If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual. Foreclosure proceedings are normally initiated after 120 days. When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off. Historical loss rates for loans are adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. We use twelve rolling quarters for our historical loss rate analysis. Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year’s charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions. Management continually reevaluates the other subjective factors included in its ALLL analysis. Other Real Estate Owned All revenues and expenses related to the carrying of other real estate owned are recognized through the income statement. Income Taxes |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2018 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 2 – Stock-Based Compensation CTBI’s compensation expense related to stock option grants was $11 thousand and $74 thousand, respectively, for the three and nine months ended September 30, 2018, compared to $14 thousand and $42 thousand, respectively, for the three and nine months ended September 30, 2017. Restricted stock expense for the three and nine months ended September 30, 2018 was $143 thousand and $479 thousand, respectively, including $13 thousand and $38 thousand in dividends paid for each period. Restricted stock expense for the three and nine months ended September 30, 2017 was $131 thousand and $405 thousand, respectively, including $13 thousand and $40 thousand in dividends paid for each period. As of September 30, 2018, there was a total of $48 thousand of unrecognized compensation expense related to unvested stock option awards that will be recognized as expense as the awards vest over a weighted average period of 1.2 years and a total of $1.2 million of unrecognized compensation expense related to restricted stock grants that will be recognized as expense as the awards vest over a weighted average period of 2.6 years. There were no stock options granted in the first nine months of 2018 and 2017, and there were no restricted stock grants made during the three months ended September 30, 2018 and 2017. There were 11,320 and 23,668 shares of restricted stock granted during the nine months ended September 30, 2018 and 2017, respectively. The restricted stock was issued pursuant to the terms of CTBI’s 2015 Stock Ownership Incentive Plan. The restrictions on the restricted stock will lapse ratably over four years, except for a 5,000 management retention restricted stock award granted in 2017 which will cliff vest at the end of five years. However, in the event of certain participant employee termination events occurring within 24 months of a change in control of CTBI or the death of the participant, the restrictions will lapse, and in the event of the participant’s disability, the restrictions will lapse on a pro rata basis. The Compensation Committee will have discretion to review and revise restrictions applicable to a participant’s restricted stock in the event of the participant’s retirement. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
Securities | Note 3 – Securities Securities are classified into held-to-maturity and available-for-sale categories. Held-to-maturity (HTM) securities are those that CTBI has the positive intent and ability to hold to maturity and are reported at amortized cost. Available-for-sale (AFS) securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included as a separate component of equity, net of tax. The amortized cost and fair value of securities at September 30, 2018 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 246,153 $ 0 $ (3,354 ) $ 242,799 State and political subdivisions 127,423 480 (3,911 ) 123,992 U.S. government sponsored agency mortgage-backed securities 208,900 146 (7,135 ) 201,911 Other debt securities 507 0 (1 ) 506 Total debt securities 582,983 626 (14,401 ) 569,208 CRA investment funds 0 0 0 0 Total available-for-sale securities $ 582,983 $ 626 $ (14,401 ) $ 569,208 Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 659 $ 1 $ 0 $ 660 Total held-to-maturity securities $ 659 $ 1 $ 0 $ 660 The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 211,574 $ 170 $ (1,172 ) $ 210,572 State and political subdivisions 144,159 2,017 (1,161 ) 145,015 U.S. government sponsored agency mortgage-backed securities 208,959 357 (4,007 ) 205,309 Other debt securities 507 0 0 507 Total debt securities 565,199 2,544 (6,340 ) 561,403 CRA investment funds 25,000 76 (718 ) 24,358 Total available-for-sale securities $ 590,199 $ 2,620 $ (7,058 ) $ 585,761 Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 659 $ 1 $ 0 $ 660 Total held-to-maturity securities $ 659 $ 1 $ 0 $ 660 The amortized cost and fair value of securities at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 46,660 $ 46,471 $ 0 $ 0 Due after one through five years 133,244 131,223 659 660 Due after five through ten years 76,825 75,192 0 0 Due after ten years 116,847 113,905 0 0 U.S. government sponsored agency mortgage-backed securities 208,900 201,911 0 0 Other debt securities 507 506 0 0 Total securities $ 582,983 $ 569,208 $ 659 $ 660 During the three months ended September 30, 2018, there was a pre-tax loss of $2 thousand realized on sales and calls of AFS securities. During the three months ended September 30, 2017, there was a net gain of $48 thousand realized on sales of AFS securities, consisting of a pre-tax gain of $150 thousand and a pre-tax loss of $102 thousand. During the nine months ended September 30, 2018, there was a combined loss of $288 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $284 thousand and a pre-tax loss of $572 thousand. This combined loss included a loss of $436 thousand from the sale of CTBI’s CRA investment funds in the first quarter of 2018. During the nine months ended September 30, 2017, there was a combined gain of $58 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $179 thousand and a pre-tax loss of $121 thousand. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $235.9 million at September 30, 2018 and $225.7 million at December 31, 2017. The amortized cost of securities sold under agreements to repurchase amounted to $297.0 million at September 30, 2018 and $296.4 million at December 31, 2017. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of September 30, 2018 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related. The percentage of total investments with unrealized losses as of September 30, 2018 was 90.5% compared to 69.5% as of December 31, 2017. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of September 30, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of September 30, 2018. Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 132,224 $ (1,300 ) $ 130,924 State and political subdivisions 59,535 (1,511 ) 58,024 U.S. government sponsored agency mortgage-backed securities 32,681 (674 ) 32,007 Other debt securities 507 (1 ) 506 Total <12 months temporarily impaired AFS securities 224,947 (3,486 ) 221,461 12 Months or More U.S. Treasury and government agencies 113,929 (2,054 ) 111,875 State and political subdivisions 29,021 (2,400 ) 26,621 U.S. government sponsored agency mortgage-backed securities 162,034 (6,461 ) 155,573 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 304,984 (10,915 ) 294,069 Total U.S. Treasury and government agencies 246,153 (3,354 ) 242,799 State and political subdivisions 88,556 (3,911 ) 84,645 U.S. government sponsored agency mortgage-backed securities 194,715 (7,135 ) 187,580 Other debt securities 507 (1 ) 506 Total temporarily impaired AFS securities $ 529,931 $ (14,401 ) $ 515,530 The analysis performed as of December 31, 2017 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2017 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2017. Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 136,688 $ (840 ) $ 135,848 State and political subdivisions 34,283 (416 ) 33,867 U.S. government sponsored agency mortgage-backed securities 62,768 (643 ) 62,125 Total debt securities 233,739 (1,899 ) 231,840 CRA investment funds 7,500 (105 ) 7,395 Total <12 months temporarily impaired AFS securities 241,239 (2,004 ) 239,235 12 Months or More U.S. Treasury and government agencies 23,885 (332 ) 23,553 State and political subdivisions 16,930 (745 ) 16,185 U.S. government sponsored agency mortgage-backed securities 117,827 (3,364 ) 114,463 Total debt securities 158,642 (4,441 ) 154,201 CRA investment funds 15,000 (613 ) 14,387 Total ≥12 months temporarily impaired AFS securities 173,642 (5,054 ) 168,588 Total U.S. Treasury and government agencies 160,573 (1,172 ) 159,401 State and political subdivisions 51,213 (1,161 ) 50,052 U.S. government sponsored agency mortgage-backed securities 180,595 (4,007 ) 176,588 Total debt securities 392,381 (6,340 ) 386,041 CRA investment funds 22,500 (718 ) 21,782 Total temporarily impaired AFS securities $ 414,881 $ (7,058 ) $ 407,823 U.S. Treasury and Government Agencies The unrealized losses in U.S. Treasury and government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2018, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. State and Political Subdivisions The unrealized losses in securities of state and political subdivisions were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2018, because CTBI does not intend to sell the investments before recovery of their amortized cost and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. U.S. Government Sponsored Agency Mortgage-Backed Securities The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate increases. CTBI expects to recover the amortized cost basis over the term of the securities. CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2018, because (i) the decline in market value is attributable to changes in interest rates and not credit quality, (ii) CTBI does not intend to sell the investments, and (iii) it is not more likely than not we will be required to sell the investments before recovery of their amortized cost, which may be maturity. Other Debt Securities The unrealized losses in other debt securities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at September 30, 2018, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2018 | |
Loans [Abstract] | |
Loans | Note 4 – Loans Major classifications of loans, net of unearned income, deferred loan origination costs, and net premiums on acquired loans, are summarized as follows: (in thousands) September 30 2018 December 31 2017 Commercial construction $ 81,472 $ 76,479 Commercial secured by real estate 1,183,632 1,188,680 Equipment lease financing 1,986 3,042 Commercial other 346,645 351,034 Real estate construction 61,782 67,358 Real estate mortgage 722,022 709,570 Home equity 103,805 99,356 Consumer direct 146,002 137,754 Consumer indirect 530,542 489,667 Total loans $ 3,177,888 $ 3,122,940 CTBI has segregated and evaluates its loan portfolio through nine portfolio segments. CTBI serves customers in small and mid-sized communities in eastern, northeastern, central, and south central Kentucky, southern West Virginia, and northeastern Tennessee. Therefore, CTBI’s exposure to credit risk is significantly affected by changes in these communities. Commercial construction loans are for the purpose of erecting or rehabilitating buildings or other structures for commercial purposes, including any infrastructure necessary for development. Included in this category are improved property, land development, and tract development loans. The terms of these loans are generally short-term with permanent financing upon completion. Commercial real estate loans include loans secured by nonfarm, nonresidential properties, 1-4 family/multi-family properties, farmland, and other commercial real estate. These loans are originated based on the borrower’s ability to service the debt and secondarily based on the fair value of the underlying collateral. Equipment lease financing loans are fixed or variable leases for commercial purposes. Commercial other loans consist of commercial check loans, agricultural loans, receivable financing, floorplans, loans to financial institutions, loans for purchasing or carrying securities, and other commercial purpose loans. Commercial loans are underwritten based on the borrower’s ability to service debt from the business’s underlying cash flows. As a general practice, we obtain collateral such as real estate, equipment, or other assets, although such loans may be uncollateralized but guaranteed. Real estate construction loans are typically for owner-occupied properties. The terms of these loans are generally short-term with permanent financing upon completion. Residential real estate loans are a mixture of fixed rate and adjustable rate first and second lien residential mortgage loans. As a policy, CTBI holds adjustable rate loans and sells the majority of its fixed rate first lien mortgage loans into the secondary market. Changes in interest rates or market conditions may impact a borrower’s ability to meet contractual principal and interest payments. Residential real estate loans are secured by real property. Home equity lines are revolving adjustable rate credit lines secured by real property. Consumer direct loans are a mixture of fixed rate and adjustable rate products comprised of unsecured loans, consumer revolving credit lines, deposit secured loans, and all other consumer purpose loans. Consumer indirect loans are fixed rate loans secured by automobiles, trucks, vans, and recreational vehicles originated at the selling dealership underwritten and purchased by CTBI’s indirect lending department. Both new and used products are financed. Only dealers who have executed dealer agreements with CTBI participate in the indirect lending program. Not i Refer to note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans segregated by class of loans were as follows: (in thousands) September 30 2018 December 31 2017 Commercial: Commercial construction $ 619 $ 1,207 Commercial secured by real estate 5,061 7,028 Commercial other 443 934 Residential: Real estate construction 22 318 Real estate mortgage 6,401 8,243 Home equity 486 389 Total nonaccrual loans $ 13,032 $ 18,119 The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of September 30, 2018 and December 31, 2017: September 30, 2018 (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 $ 127 $ 116 $ 551 $ 794 $ 80,678 $ 81,472 $ 47 Commercial secured by real estate 5,962 8,174 6,673 20,809 1,162,823 1,183,632 2,453 Equipment lease financing 0 0 0 0 1,986 1,986 0 Commercial other 549 794 287 1,630 345,015 346,645 90 Residential: Real estate construction 420 218 33 671 61,111 61,782 11 Real estate mortgage 939 4,658 9,291 14,888 707,134 722,022 4,413 Home equity 917 293 593 1,803 102,002 103,805 310 Consumer: Consumer direct 828 355 36 1,219 144,783 146,002 36 Consumer indirect 4,405 841 645 5,891 524,651 530,542 645 Total $ 14,147 $ 15,449 $ 18,109 $ 47,705 $ 3,130,183 $ 3,177,888 $ 8,005 December 31, 2017 (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 $ 138 $ 0 $ 1,238 $ 1,376 $ 75,103 $ 76,479 $ 31 Commercial secured by real estate 4,047 1,599 8,514 14,160 1,174,520 1,188,680 2,665 Equipment lease financing 430 0 0 430 2,612 3,042 0 Commercial other 835 77 652 1,564 349,470 351,034 87 Residential: Real estate construction 224 202 223 649 66,709 67,358 223 Real estate mortgage 2,064 5,029 11,605 18,698 690,872 709,570 6,293 Home equity 595 178 428 1,201 98,155 99,356 167 Consumer: Consumer direct 983 148 62 1,193 136,561 137,754 62 Consumer indirect 4,085 1,399 648 6,132 483,535 489,667 648 Total $ 13,401 $ 8,632 $ 23,370 $ 45,403 $ 3,077,537 $ 3,122,940 $ 10,176 *90+ and Accruing are also included in 90+ Days Past Due column. The risk characteristics of CTBI’s material portfolio segments are as follows: Commercial construction loans generally are made to customers for the purpose of building income-producing properties. Personal guarantees of the principals are generally required. Such loans are made on a projected cash flow basis and are secured by the project being constructed. Construction loan draw procedures are included in each specific loan agreement, including required documentation items and inspection requirements. Construction loans may convert to term loans at the end of the construction period, or may be repaid by the take-out commitment from another financing source. If the loan is to convert to a term loan, the repayment ability is based on the borrower’s projected cash flow. Risk is mitigated during the construction phase by requiring proper documentation and inspections whenever a draw is requested. Loans in amounts greater than $500,000 generally require a performance bond to be posted by the general contractor to assure completion of the project. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Equipment lease financing is underwritten by our commercial lenders using the same underwriting standards as would be applied to a secured commercial loan requesting 100% financing. The pricing for equipment lease financing is comparable to that of borrowers with similar quality commercial credits with similar collateral. Maximum terms of equipment leasing are determined by the type and expected life of the equipment to be leased. Residual values are determined by appraisals or opinion letters from industry experts. Leases must be in conformity with our consolidated annual tax plan. As we underwrite our equipment lease financing in a manner similar to our commercial loan portfolio described below, the risk characteristics for this portfolio mirror that of the commercial loan portfolio. Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. With respect to residential loans that are secured by 1-4 family residences and are generally owner occupied, CTBI generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences. Residential construction loans are handled through the home mortgage area of the bank. The repayment ability of the borrower and the maximum loan-to-value ratio are calculated using the normal mortgage lending criteria. Draws are processed based on percentage of completion stages including normal inspection procedures. Such loans generally convert to term loans after the completion of construction. Consumer loans are secured by consumer assets such as automobiles or recreational vehicles. Some consumer loans are unsecured such as small installment loans and certain lines of credit. Our determination of a borrower’s ability to repay these loans is primarily dependent on the personal income and credit rating of the borrowers, which can be impacted by economic conditions in their market areas such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. The indirect lending area of the bank generally deals with purchasing/funding consumer contracts with new and used automobile dealers. The dealers generate consumer loan applications which are forwarded to the indirect loan processing area for approval or denial. Loan approvals or denials are based on the creditworthiness and repayment ability of the borrower, and on the collateral value. The dealers may have limited recourse agreements with CTB. Credit Quality Indicators: CTBI categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. CTBI also considers the fair value of the underlying collateral and the strength and willingness of the guarantor(s). CTBI analyzes commercial loans individually by classifying the loans as to credit risk. Loans classified as loss, doubtful, substandard, or special mention are reviewed quarterly by CTBI for further deterioration or improvement to determine if appropriately classified and valued if deemed impaired. All other commercial loan reviews are completed every 12 to 18 months. In addition, during the renewal process of any loan, as well as if a loan becomes past due or if other information becomes available, CTBI will evaluate the loan grade. CTBI uses the following definitions for risk ratings: Ø Pass Ø Watch Ø Other assets especially mentioned (OAEM) Ø Substandard Ø Doubtful 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, as of September 30, 2018 and December 31, 2017: (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Leases Commercial Other Total September 30, 2018 Pass $ 74,592 $ 1,029,800 $ 1,986 $ 294,562 $ 1,400,940 Watch 3,133 74,669 0 30,020 107,822 OAEM 1,626 17,906 0 6,903 26,435 Substandard 2,121 61,146 0 15,080 78,347 Doubtful 0 111 0 80 191 Total $ 81,472 $ 1,183,632 $ 1,986 $ 346,645 $ 1,613,735 December 31, 2017 Pass $ 67,846 $ 1,053,701 $ 3,005 $ 305,655 $ 1,430,207 Watch 3,323 65,182 0 29,008 97,513 OAEM 1,304 22,401 37 3,206 26,948 Substandard 3,828 47,223 0 12,947 63,998 Doubtful 178 173 0 218 569 Total $ 76,479 $ 1,188,680 $ 3,042 $ 351,034 $ 1,619,235 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, as of September 30, 2018 and December 31, 2017: (in thousands) Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total September 30, 2018 Performing $ 61,749 $ 711,208 $ 103,009 $ 145,966 $ 529,897 $ 1,551,829 Nonperforming (1) 33 10,814 796 36 645 12,324 Total $ 61,782 $ 722,022 $ 103,805 $ 146,002 $ 530,542 $ 1,564,153 December 31, 2017 Performing $ 66,817 $ 695,034 $ 98,800 $ 137,692 $ 489,019 $ 1,487,362 Nonperforming (1) 541 14,536 556 62 648 16,343 Total $ 67,358 $ 709,570 $ 99,356 $ 137,754 $ 489,667 $ 1,503,705 (1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. The total of consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process totaled $4.4 million at September 30, 2018 compared to $3.7 million at December 31, 2017. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable CTBI will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance, or other actions intended to maximize collection. The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2018, December 31, 2017, and September 30, 2017: September 30, 2018 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Loans without a specific valuation allowance: Commercial construction $ 2,804 $ 2,804 $ 0 Commercial secured by real estate 31,632 33,538 0 Commercial other 8,268 10,034 0 Real estate mortgage 1,878 1,880 0 Loans with a specific valuation allowance: Commercial secured by real estate 1,980 3,116 641 Commercial other 321 321 95 Totals: Commercial construction 2,804 2,804 0 Commercial secured by real estate 33,612 36,654 641 Commercial other 8,589 10,355 95 Real estate mortgage 1,878 1,880 0 Total $ 46,883 $ 51,693 $ 736 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 (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 $ 2,865 $ 26 $ 3,795 $ 132 Commercial secured by real estate 30,216 349 30,588 1,073 Commercial other 8,518 125 8,857 405 Real estate construction 0 0 106 0 Real estate mortgage 1,882 13 1,596 24 Loans with a specific valuation allowance: Commercial secured by real estate 2,005 0 2,112 1 Commercial other 339 8 220 12 Totals: Commercial construction 2,865 26 3,795 132 Commercial secured by real estate 32,221 349 32,700 1,074 Commercial other 8,857 133 9,077 417 Real estate construction 0 0 106 0 Real estate mortgage 1,882 13 1,596 24 Total $ 45,825 $ 521 $ 47,274 $ 1,647 Year Ended December 31, 2017 (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 $ 4,431 $ 4,439 $ 0 $ 4,835 $ 200 Commercial secured by real estate 28,480 30,365 0 27,753 1,344 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,444 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Loans with a specific valuation allowance: Commercial construction 153 173 25 155 0 Commercial secured by real estate 2,985 4,095 966 3,932 8 Commercial other 0 0 0 65 0 Totals: Commercial construction 4,584 4,612 25 4,990 200 Commercial secured by real estate 31,465 34,460 966 31,685 1,352 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,509 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Total $ 47,412 $ 52,212 $ 991 $ 49,343 $ 2,127 September 30, 2017 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Loans without a specific valuation allowance: Commercial construction $ 4,613 $ 4,621 $ 0 Commercial secured by real estate 25,322 25,916 0 Commercial other 9,994 11,804 0 Real estate construction 873 873 0 Real estate mortgage 1,196 1,196 0 Loans with a specific valuation allowance: Commercial construction 153 174 25 Commercial secured by real estate 3,918 5,023 1,301 Commercial other 130 133 65 Totals: Commercial construction 4,766 4,795 25 Commercial secured by real estate 29,240 30,939 1,301 Commercial other 10,124 11,937 65 Real estate construction 873 873 0 Real estate mortgage 1,196 1,196 0 Total $ 46,199 $ 49,740 $ 1,391 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 (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 $ 4,662 $ 50 $ 4,955 $ 136 Commercial secured by real estate 25,452 276 27,318 980 Equipment lease financing 0 0 45 0 Commercial other 10,191 123 10,717 396 Real estate construction 860 0 569 0 Real estate mortgage 1,197 8 1,601 30 Loans with a specific valuation allowance: Commercial construction 153 0 156 0 Commercial secured by real estate 3,984 3 4,236 8 Commercial other 130 0 87 0 Totals: Commercial construction 4,815 50 5,111 136 Commercial secured by real estate 29,436 279 31,554 988 Equipment lease financing 0 0 45 0 Commercial other 10,321 123 10,804 396 Real estate construction 860 0 569 0 Real estate mortgage 1,197 8 1,601 30 Total $ 46,629 $ 460 $ 49,684 $ 1,550 *Cash basis interest is substantially the same as interest income recognized. Included in certain loan categories of impaired loans are certain loans and leases that have been modified in a troubled debt restructuring, where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Modifications of terms for our loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve either an increase or reduction of the interest rate, extension of the term of the loan, or deferral of principal and/or interest payments, regardless of the period of the modification. All of the loans identified as troubled debt restructuring were modified due to financial stress of the borrower. In order to determine if a borrower is experiencing financial difficulty, an evaluation is performed to determine the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under CTBI’s internal underwriting policy. When we modify loans and leases in a troubled debt restructuring, we evaluate any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, or use the current fair value of the collateral, less selling costs for collateral dependent loans. If we determined that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, we evaluate all troubled debt restructuring, including those that have payment defaults, for possible impairment and recognize impairment through the allowance. During 2018, Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and nine months ended September 30, 2018 and 2017 and the year ended December 31, 2017: Three Months Ended September 30, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial secured by real estate 6 2,028 0 400 2,428 Residential: Real estate mortgage 1 264 0 0 264 Total troubled debt restructurings 7 $ 2,292 $ 0 $ 400 $ 2,692 Nine Months Ended September 30, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 4 $ 443 $ 0 $ 15 $ 458 Commercial secured by real estate 23 4,587 0 1,383 5,970 Commercial other 8 465 0 0 465 Residential: Real estate mortgage 1 264 0 0 264 Total troubled debt restructurings 36 $ 5,759 $ 0 $ 1,398 $ 7,157 Year Ended December 31, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 2 $ 0 $ 0 $ 114 $ 114 Commercial secured by real estate 15 2,199 0 192 2,391 Commercial other 22 1,072 0 136 1,208 Residential: Real estate construction 1 846 0 0 846 Real estate mortgage 3 988 0 0 988 Total troubled debt restructurings 43 $ 5,105 $ 0 $ 442 $ 5,547 Three Months Ended September 30, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial secured by real estate 6 $ 295 $ 0 $ 0 $ 295 Commercial other 1 102 0 0 102 Total troubled debt restructurings 7 $ 397 $ 0 $ 0 $ 397 Nine Months Ended September 30, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 2 $ 0 $ 0 $ 114 $ 114 Commercial secured by real estate 11 874 0 192 1,066 Commercial other 10 237 0 136 373 Residential: Real estate construction 1 846 0 0 846 Real estate mortgage 1 323 0 0 323 Total troubled debt restructurings 25 $ 2,280 $ 0 $ 442 $ 2,722 No charge-offs have resulted from modifications for any of the presented periods. We had commitments to extend additional credit in the amount of $42 thousand on loans that were considered troubled debt restructurings at September 30, 2018. 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. (in thousands) Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 147 0 $ 0 Commercial secured by real estate 0 0 2 961 Commercial other 1 6 0 0 Residential: Real estate construction 0 0 1 846 Total defaulted restructured loans 3 $ 153 3 $ 1,807 (in thousands) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 147 0 $ 0 Commercial secured by real estate 1 17 2 $ 961 Commercial other 2 31 0 0 Residential: Real estate construction 0 0 1 846 Total defaulted restructured loans 5 $ 195 3 $ 1,807 |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Abstract] | |
Allowance for Loan and Lease Losses | Note 5 – Allowance for Loan and Lease Losses The following tables present 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 September 30, 2018, December 31, 2017 and September 30, 2017: Three Months Ended September 30, 2018 (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 Allowance for loan losses Beginning balance $ 740 $ 14,658 $ 17 $ 4,637 $ 618 $ 5,234 $ 866 $ 1,910 $ 7,091 $ 35,771 Provision charged to expense 54 298 (2 ) 82 (44 ) (566 ) (9 ) 59 1,671 1,543 Losses charged off 0 (460 ) 0 (521 ) 0 (136 ) (19 ) (196 ) (1,496 ) (2,828 ) Recoveries 23 142 0 407 0 7 4 133 589 1,305 Ending balance $ 817 $ 14,638 $ 15 $ 4,605 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,791 Ending balance: Individually evaluated for impairment $ 0 $ 641 $ 0 $ 95 $ 0 $ 0 $ 0 $ 0 $ 0 $ 736 Collectively evaluated for impairment $ 817 $ 13,997 $ 15 $ 4,510 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,055 Loans Ending balance: Individually evaluated for impairment $ 2,804 $ 33,612 $ 0 $ 8,589 $ 0 $ 1,878 $ 0 $ 0 $ 0 $ 46,883 Collectively evaluated for impairment $ 78,668 $ 1,150,020 $ 1,986 $ 338,056 $ 61,782 $ 720,144 $ 103,805 $ 146,002 $ 530,542 $ 3,131,005 Nine Months Ended September 30, 2018 (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 Allowance for loan losses Beginning balance $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Provision charged to expense 91 895 (3 ) 98 (58 ) (625 ) 18 402 3,600 4,418 Losses charged off 0 (937 ) 0 (1,078 ) (28 ) (550 ) (38 ) (687 ) (5,013 ) (8,331 ) Recoveries 40 171 0 546 0 26 5 328 2,437 3,553 Ending balance $ 817 $ 14,638 $ 15 $ 4,605 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,791 Ending balance: Individually evaluated for impairment $ 0 $ 641 $ 0 $ 95 $ 0 $ 0 $ 0 $ 0 $ 0 $ 736 Collectively evaluated for impairment $ 817 $ 13,997 $ 15 $ 4,510 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,055 Loans Ending balance: Individually evaluated for impairment $ 2,804 $ 33,612 $ 0 $ 8,589 $ 0 $ 1,878 $ 0 $ 0 $ 0 $ 46,883 Collectively evaluated for impairment $ 78,668 $ 1,150,020 $ 1,986 $ 338,056 $ 61,782 $ 720,144 $ 103,805 $ 146,002 $ 530,542 $ 3,131,005 Three Months Ended September 30, 2017 (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 Allowance for loan losses Beginning balance $ 669 $ 15,299 $ 33 $ 4,993 $ 581 $ 5,662 $ 747 $ 1,866 $ 7,283 $ 37,133 Provision charged to expense (19 ) (1 ) (14 ) 210 49 276 113 47 5 666 Losses charged off (6 ) (249 ) 0 (549 ) 0 (158 ) (53 ) (166 ) (1,262 ) (2,443 ) Recoveries 28 53 0 308 0 6 0 110 530 1,035 Ending balance $ 672 $ 15,102 $ 19 $ 4,962 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 36,391 Ending balance: Individually evaluated for impairment $ 25 $ 1,301 $ 0 $ 65 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,391 Collectively evaluated for impairment $ 647 $ 13,801 $ 19 $ 4,897 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 35,000 Loans Ending balance: Individually evaluated for impairment $ 4,766 $ 29,240 $ 0 $ 10,124 $ 873 $ 1,196 $ 0 $ 0 $ 0 $ 46,199 Collectively evaluated for impairment $ 69,516 $ 1,168,364 $ 3,290 $ 329,213 $ 63,568 $ 711,041 $ 96,755 $ 137,657 $ 487,818 $ 3,067,222 Nine Months Ended September 30, 2017 (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 Allowance for loan losses Beginning balance $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (239 ) 1,622 (23 ) 1,229 0 1 87 243 1,739 4,659 Losses charged off (10 ) (776 ) 0 (1,386 ) 0 (321 ) (57 ) (675 ) (3,898 ) (7,123 ) Recoveries 37 65 0 463 1 79 3 404 1,870 2,922 Ending balance $ 672 $ 15,102 $ 19 $ 4,962 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 36,391 Ending balance: Individually evaluated for impairment $ 25 $ 1,301 $ 0 $ 65 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,391 Collectively evaluated for impairment $ 647 $ 13,801 $ 19 $ 4,897 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 35,000 Loans Ending balance: Individually evaluated for impairment $ 4,766 $ 29,240 $ 0 $ 10,124 $ 873 $ 1,196 $ 0 $ 0 $ 0 $ 46,199 Collectively evaluated for impairment $ 69,516 $ 1,168,364 $ 3,290 $ 329,213 $ 63,568 $ 711,041 $ 96,755 $ 137,657 $ 487,818 $ 3,067,222 Year Ended December 31, 2017 (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 Allowance for loan losses Beginning balance $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (237 ) 2,281 (24 ) 1,744 31 189 257 418 2,862 7,521 Losses charged off (10 ) (2,038 ) 0 (1,893 ) 0 (615 ) (178 ) (965 ) (5,386 ) (11,085 ) Recoveries 49 75 0 532 0 87 4 525 2,510 3,782 Ending balance $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Ending balance: Individually evaluated for impairment $ 25 $ 966 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 991 Collectively evaluated for impairment $ 661 $ 13,543 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 35,160 Loans Ending balance: Individually evaluated for impairment $ 4,584 $ 31,465 $ 0 $ 9,481 $ 318 $ 1,564 $ 0 $ 0 $ 0 $ 47,412 Collectively evaluated for impairment $ 71,895 $ 1,157,215 $ 3,042 $ 341,553 $ 67,040 $ 708,006 $ 99,356 $ 137,754 $ 489,667 $ 3,075,528 |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Other Real Estate Owned | Note 6 – Other Real Estate Owned Activity for other real estate owned was as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Beginning balance of other real estate owned $ 30,262 $ 32,785 $ 31,996 $ 35,856 New assets acquired 849 2,722 3,692 4,303 Capitalized costs 0 0 0 0 Fair value adjustments (670 ) (884 ) (1,990 ) (2,871 ) Sale of assets (775 ) (2,575 ) (4,032 ) (5,240 ) Ending balance of other real estate owned $ 29,666 $ 32,048 $ 29,666 $ 32,048 Carrying costs and fair value adjustments associated with foreclosed properties for the three months ended September 30, 2018 and 2017 were $1.1 million and $1.3 million, respectively. Carrying costs and fair value adjustments associated with foreclosed properties for the nine months ended September 30, 2018 and 2017 were $3.3 million and $4.1 million, respectively. See note 1 for a description of our accounting policies relative to foreclosed properties and other real estate owned. The major classifications of foreclosed properties are shown in the following table: (in thousands) September 30 2018 December 31 2017 1-4 family $ 5,475 $ 5,908 Agricultural/farmland 0 68 Construction/land development/other 15,230 16,158 Multifamily 88 176 Non-farm/non-residential 8,873 9,686 Total foreclosed properties $ 29,666 $ 31,996 |
Repurchase Agreements
Repurchase Agreements | 9 Months Ended |
Sep. 30, 2018 | |
Repurchase Agreements [Abstract] | |
Repurchase Agreements | Note 7 – Repurchase Agreements We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets. We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of investment securities available-for-sale pledged as collateral under repurchase agreements totaled $289.5 million and $295.4 million at September 30, 2018 and December 31, 2017, respectively. The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables: September 30, 2018 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and U.S. Treasury and government agencies $ 42,375 $ 41,540 $ 0 $ 34,733 $ 118,648 State and political subdivisions 61,820 5,961 0 7,306 75,087 U.S. government sponsored agency mortgage-backed securities 13,374 24,499 0 19,375 57,248 Total $ 117,569 $ 72,000 $ 0 $ 61,414 $ 250,983 December 31, 2017 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and U.S. Treasury and government agencies $ 24,957 $ 0 $ 16,771 $ 67,867 $ 109,595 State and political subdivisions 62,620 0 567 12,161 75,348 U.S. government sponsored agency mortgage-backed securities 13,360 0 4,662 40,849 58,871 Total $ 100,937 $ 0 $ 22,000 $ 120,877 $ 243,814 |
Fair Market Value of Financial
Fair Market Value of Financial Assets and Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Fair Market Value of Financial Assets and Liabilities [Abstract] | |
Fair Market Value of Financial Assets and Liabilities | Note 8 – Fair Market Value of Financial Assets and Liabilities Fair Value Measurements ASC 820, Fair Value Measurements Level 1 Inputs – Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets and liabilities in active markets, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in determining an exit price for the assets or liabilities. Recurring Measurements The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques. Fair Value Measurements at September 30, 2018 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 242,799 $ 91,465 $ 151,334 $ 0 State and political subdivisions 123,992 0 123,992 0 U.S. government sponsored agenc y mortgage-backed securities 201,911 0 201,911 0 Other debt securities 506 0 506 0 Mortgage servicing rights 3,815 0 0 3,815 (in thousands) Fair Value Measurements at December 31, 2017 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 210,572 $ 64,598 $ 145,974 $ 0 State and political subdivisions 145,015 0 145,015 0 U.S. government sponsored agenc y mortgage-backed securities 205,309 0 205,309 0 Other debt securities 507 0 507 0 CRA investment funds 24,358 24,358 0 0 Mortgage servicing rights 3,484 0 0 3,484 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. These valuation methodologies were applied to all of CTBI’s financial assets carried at fair value. CTBI had no liabilities measured and recorded at fair value as of September 30, 2018 and December 31, 2017. There have been no significant changes in the valuation techniques during the quarter or nine months ended September 30, 2018. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Available-for-Sale Securities Securities classified as available-for-sale are reported at fair value on a recurring basis. U.S. Treasury and government agencies are classified as Level 1 of the valuation hierarchy where quoted market prices are available in the active market on which the individual securities are traded. If quoted market prices are not available, CTBI obtains fair value measurements from an independent pricing service, such as Interactive Data, which utilizes pricing models to determine fair value measurement. CTBI reviews the pricing quarterly to verify the reasonableness of the pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other factors. U.S. Treasury and government agencies, state and political subdivisions, U.S. government sponsored agency mortgage-backed securities, and other debt securities are classified as Level 2 inputs. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States. As of September 30, 2018 and December 31, 2017, CTBI does not own any securities valued using Level 3 inputs. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. CTBI reports mortgage servicing rights at fair value on a recurring basis with subsequent remeasurement of MSRs based on change in fair value. In determining fair value, CTBI utilizes the expertise of an independent third party. Accordingly, fair value is determined by the independent third party by utilizing assumptions about factors such as mortgage interest rates, discount rates, mortgage loan prepayment speeds, market trends and industry demand. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements of mortgage servicing rights are tested for impairment on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standards generally accepted in the United States. See the table below for inputs and valuation techniques used for Level 3 mortgage servicing rights. Transfers between Levels There were no transfers between Levels 1, 2, and 3 as of September 30, 2018. Level 3 Reconciliation Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2018 and 2017: Mortgage Servicing Rights Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Beginning balance $ 3,772 $ 3,304 $ 3,484 $ 3,433 Total recognized gains (losses) Included in net income 45 5 341 (73 ) Issues 118 98 329 269 Settlements (120 ) (124 ) (339 ) (346 ) Ending balance $ 3,815 $ 3,283 $ 3,815 $ 3,283 Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date $ 45 $ 5 $ 341 $ (73 ) Realized and unrealized gains and losses for items reflected in the table above are included in net income in the consolidated statements of income as follows: Noninterest Income Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Total gains (losses) $ (75 ) $ (119 ) $ 2 $ (419 ) Nonrecurring Measurements The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques. Fair Value Measurements at September 30, 2018 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 556 $ 0 $ 0 $ 556 Other real estate owned 7,640 0 0 7,640 Fair Value Measurements at December 31, 2017 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 2,709 $ 0 $ 0 $ 2,709 Other real estate owned 18,951 0 0 18,951 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheet, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. CTBI considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Chief Credit Officer by comparison to historical results. Loans considered impaired under ASC 310-35, Impairment of a Loan, Other Real Estate Owned In accordance with the provisions of ASC 360, Property, Plant, and Equipment, Our policy for determining the frequency of periodic reviews is based upon consideration of the specific properties and the known or perceived market fluctuations in a particular market and is typically between 12 and 18 months but generally not more than 24 months. Appraisers are selected from the list of approved appraisers maintained by management. Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2018 and December 31, 2017. (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at September 30, 2018 Valuation Technique(s) Unobservable Input Range (Weighted Average) Mortgage servicing rights $ 3,815 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 28.0% (8.3%) Probability of default 0.0% - 100.0% (2.5%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $ 556 Market comparable properties Marketability discount 10.0% - 100.0% (44.1%) Other real estate owned $ 7,640 Market comparable properties Comparability adjustments 6.0% - 32.0% (15.7%) (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2017 Valuation Technique(s) Unobservable Input Range (Weighted Average) Mortgage servicing rights $ 3,484 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 45.0% (10.0%) Probability of default 0.0% - 100.0% (3.0%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $ 2,709 Market comparable properties Marketability discount 1.9% - 89.8% (38.5%) Other real estate owned $ 18,951 Market comparable properties Comparability adjustments 6.0% - 58.6% (15.0%) Sensitivity of Significant Unobservable Inputs The following is a discussion of the sensitivity of significant unobservable inputs, the interrelationships between those inputs and other unobservable inputs used in recurring fair value measurement and of how those inputs might magnify or mitigate the effect of changes in the unobservable inputs on the fair value measurement. Mortgage Servicing Rights Fair market value for mortgage servicing rights is derived based on unobservable inputs, such as prepayment speeds of the underlying loans generated using the Andrew Davidson Prepayment Model, FHLMC/FNMA guidelines, the weighted average life of the loan, the discount rate, the weighted average coupon, and the weighted average default rate. Significant increases (decreases) in either of those inputs in isolation would result in a significantly lower (higher) fair value measurement. Generally, a change in the assumption used for prepayment speeds is accompanied by a directionally opposite change in the assumption for interest rates. Fair Value of Financial Instruments The following table presents estimated fair value of CTBI’s financial instruments as of September 30, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of September 30, 2018 were measured using an exit price notion. Fair Value Measurements at September 30, 2018 Using (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 171,333 $ 171,333 $ 0 $ 0 Certificates of deposit in other banks 5,145 0 5,134 0 Securities available-for-sale 569,208 91,465 477,743 0 Securities held-to-maturity 659 0 660 0 Loans held for sale 1,029 1,050 0 0 Loans, net 3,142,097 0 0 3,137,941 Federal Home Loan Bank stock 14,713 0 14,713 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,628 0 14,628 0 Mortgage servicing rights 3,815 0 0 3,815 Financial liabilities: Deposits $ 3,273,646 $ 826,804 $ 2,460,736 $ 0 Repurchase agreements 250,983 0 0 251,261 Federal funds purchased 1,305 0 1,305 0 Advances from Federal Home Loan Bank 787 0 845 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 4,381 0 4,381 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2017 and indicates the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2017 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 175,274 $ 175,274 $ 0 $ 0 Certificates of deposit in other banks 9,800 0 9,772 0 Securities available-for-sale 585,761 88,956 496,805 0 Securities held-to-maturity 659 0 660 0 Loans held for sale 1,033 1,060 0 0 Loans, net 3,086,789 0 0 3,092,437 Federal Home Loan Bank stock 17,927 0 17,927 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 13,338 0 13,338 0 Mortgage servicing rights 3,484 0 0 3,484 Financial liabilities: Deposits $ 3,263,863 $ 790,930 $ 2,319,278 $ 0 Repurchase agreements 243,814 0 0 243,932 Federal funds purchased 7,312 0 7,312 0 Advances from Federal Home Loan Bank 845 0 841 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 2,228 0 2,228 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30 September 30 (in thousands except per share data) 2018 2017 2018 2017 Numerator: Net income $ 16,106 $ 13,763 $ 43,519 $ 36,581 Denominator: Basic earnings per share: Weighted average shares 17,691 17,633 17,683 17,625 Diluted earnings per share: Effect of dilutive stock options and restricted stock grants 19 20 17 20 Adjusted weighted average shares 17,710 17,653 17,700 17,645 Earnings per share: Basic earnings per share $ 0.91 $ 0.78 $ 2.46 $ 2.08 Diluted earnings per share 0.91 0.78 2.46 2.07 There were no options to purchase common shares that were excluded from the diluted calculations above for the three and nine months ended September 30, 2018 and 2017. In addition to in-the-money stock options, unvested restricted stock grants were also used in the calculation of diluted earnings per share based on the treasury method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 10 – Accumulated Other Comprehensive Income Unrealized gains on AFS securities Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and nine months ended September 30, 2018 and 2017 were: Amounts Reclassified from AOCI (in thousands) Three Months Ended September 30 Nine Months Ended September 30 2018 2017 2018 2017 Affected line item in the statements of income Securities gains $ (2 ) $ 48 $ 149 $ 58 Tax expense 0 17 32 20 Total reclassifications out of AOCI $ (2 ) $ 31 $ 117 $ 38 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation – |
Reclassifications | Reclassifications – |
New Accounting Standards | New Accounting Standards Ø Financial Instruments – Overall Financial Instruments – Overall (Subtopic 825-10) Ø Leases – In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance We have calculated the minimum and maximum net present value of all potential lease payments to be between $10.1 million and $20.3 million. We have determined the renewal periods reasonably expected to be exercised. We are now in the process of determining the amount to recognize as right of use assets and the corresponding lease liabilities. We have purchased software in order to finalize the impact of this ASU and provide tracking going forward. In August 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This ASU is intended to reduce costs and ease implementation of the leases standard for financial statement preparers. ASU 2018-11 provides a new transition method and a practical expedient for separating components of a contract. Transition: Comparative Reporting at Adoption The amendments in ASU 2018-11 provide entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption consistent with preparers’ requests. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with current GAAP in Topic 840, Leases Separating Components of a Contract The amendments in ASU 2018-11 provide lessors with a practical expedient, by class of underlying asset, to not separate nonlease components from the associated lease component and, instead, to account for those components as a single component if the nonlease components otherwise would be accounted for under the new revenue guidance (Topic 606) and both of the following are met: · The timing and pattern of transfer of the nonlease component(s) and associated lease component are the same. · The lease component, if accounted for separately, would be classified as an operating lease. An entity electing this practical expedient (including an entity that accounts for the combined component entirely in Topic 606) is required to disclose certain information, by class of underlying asset, as specified in the ASU. We will determine which method we will elect to use as we progress through the implementation phase. Ø Revenue from Contracts with Customers – Revenue from Contracts with Customers Accounting Standards Codification 606, Revenue from Contracts with Customers The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other generally accepted accounting principles (“GAAP”) discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of noninterest income are as follows: · Service charges on deposit accounts represents general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed. Payment for such performance obligations is generally received at the time the performance obligations are satisfied. · Trust and wealth management income represents monthly or quarterly fees due from wealth management customers as consideration for managing the customers’ assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services, and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month or quarter, which is generally the time that payment is received. · Brokerage revenue is transaction based and collected upon the settlement of the transaction. Other sales, such as life insurance, generate commissions from other third parties. These fees are generally collected monthly. · Other noninterest income primarily includes items such as letter of credit fees, gains on sale of loans held for sale and servicing fees related to mortgage and commercial loans, none of which are subject to the requirements of ASC 606. Ø Accounting for Credit Losses Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. CTBI has an implementation team working through the provisions of ASU 2016-13 including assessing the impact on its accounting and disclosures. The team has established the historical data that will be available and has identified the potential loan segments to be analyzed. We are continuing data analysis, including the analysis of historical charge-off and recovery data. Ø Statement of Cash Flows Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This ASU addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendments in this Update apply to all entities that are required to present a statement of cash flows under Topic 230. This Update is the final version of Proposed Accounting Standards Update EITF-15F— Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments (Topic 230) , which has been deleted. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments in this Update should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We adopted this ASU effective January 1, 2018 with no Ø Simplifying the Test for Goodwill Impairment Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment Ø Receivables – Nonrefundable Fees and Other Costs: Premium Amortization on Purchased Callable Debt Securities Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities Ø Income Statement—Reporting Comprehensive Income Income Statement—Reporting Comprehensive Income (Topic 220) Ø Income Taxes—Amendments to SEC Paragraphs – Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118 Ø Changes to the Disclosure Requirements for Fair Value Measurement Fair Value Measurement (Topic 820)—Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU No. 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820 as follows: Removals The following disclosure requirements were removed from Topic 820: · The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy · The policy for timing of transfers between levels · The valuation processes for Level 3 fair value measurements Modifications The following disclosure requirements were modified in Topic 820: · For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly; and · The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additions The following disclosure requirements were added to Topic 820: · The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and · The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate at a minimum from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. CTBI plans to adopt ASU 2018-13 effective January 1, 2020 with minimal changes to our current reporting. Ø Accounting for Costs of Implementing a Cloud Computing Service Agreement Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The ASU aligns the following requirements for capitalizing implementation costs: · Those incurred in a hosting arrangement that is a service contract, and · Those incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license. This ASU will be effective beginning January1, 2020. We do not anticipate a significant impact to our consolidated financial statements. |
Critical Accounting Policies and Estimates | Critical Accounting Policies and Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements and related notes. Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements. We believe the application of accounting policies and the estimates required therein are reasonable. These accounting policies and estimates are constantly reevaluated, and adjustments are made when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using necessary estimates. We have identified the following critical accounting policies: |
Investments | Investments Investment Securities a. Trading securities . . b. Available-for-sale securities. Investments not classified as trading securities (nor as held-to-maturity securities) shall be classified as available-for-sale securities. We do not have any securities that are classified as trading securities. Available-for-sale securities are reported at fair value, with unrealized gains and losses included as a separate component of shareholders’ equity, net of tax. If declines in fair value are other than temporary, the carrying value of the securities is written down to fair value as a realized loss with a charge to income for the portion attributable to credit losses and a charge to other comprehensive income for the portion that is not credit related. Beginning in January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in net income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of accumulated other comprehensive income, net of tax. Equity securities without a readily determinable fair value are recorded at cost less impairment, if any, adjusted for subsequent observable price changes. Gains or losses on disposition of securities are computed by specific identification for all securities except for shares in mutual funds, which are computed by average cost. Interest and dividend income, adjusted by amortization of purchase premium or discount, is included in earnings. When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair market value is below amortized cost, additional analysis is performed to determine whether an other than temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other than temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity and (ii) whether it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on CTBI’s results of operations and financial condition. |
Loans | Loans A restructuring of a debt constitutes a troubled debt restructuring if the creditor for economic or legal reasons related to the debtor’s financial difficulties grants a concession to the debtor that it would not otherwise consider. Loan origination and commitment fees and certain direct loan origination costs are deferred and the net amount amortized over the estimated life of the related loans, leases, or commitments as a yield adjustment. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses We utilize an internal risk grading system for commercial credits. Those larger commercial credits that exhibit probable or observed credit weaknesses are subject to individual review. The borrower’s cash flow, adequacy of collateral coverage, and other options available to CTBI, including legal remedies, are evaluated. The review of individual loans includes those loans that are impaired as defined by ASC 310-10-35, Impairment of a Loan A loan is considered impaired when, based on current information and events, it is probable that CTBI will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Homogenous loans, such as consumer installment, residential mortgages, and home equity lines are not individually risk graded. The associated ALLL for these loans is measured under ASC 450, Contingencies When any secured commercial loan is considered uncollectable, whether past due or not, a current assessment of the value of the underlying collateral is made. If the balance of the loan exceeds the fair value of the collateral, the loan is placed on nonaccrual and the loan is charged down to the value of the collateral less estimated cost to sell or a specific reserve equal to the difference between book value of the loan and the fair value assigned to the collateral is created until such time as the loan is foreclosed. When the foreclosed collateral has been legally assigned to CTBI, the estimated fair value of the collateral less costs to sell is then transferred to other real estate owned or other repossessed assets, and a charge-off is taken for any remaining balance. When any unsecured commercial loan is considered uncollectable the loan is charged off no later than at 90 days past due. All closed-end consumer loans (excluding conventional 1-4 family residential loans and installment and revolving loans secured by real estate) are charged off no later than 120 days (5 monthly payments) delinquent. If a loan is considered uncollectable, it is charged off earlier than 120 days delinquent. For conventional 1-4 family residential loans and installment and revolving loans secured by real estate, when a loan is 90 days past due, a current assessment of the value of the real estate is made. If the balance of the loan exceeds the fair value of the property, the loan is placed on nonaccrual. Foreclosure proceedings are normally initiated after 120 days. When the foreclosed property has been legally assigned to CTBI, the fair value less estimated costs to sell is transferred to other real estate owned and the remaining balance is taken as a charge-off. Historical loss rates for loans are adjusted for significant factors that, in management’s judgment, reflect the impact of any current conditions on loss recognition. We use twelve rolling quarters for our historical loss rate analysis. Factors that we consider include delinquency trends, current economic conditions and trends, strength of supervision and administration of the loan portfolio, levels of underperforming loans, level of recoveries to prior year’s charge-offs, trends in loan losses, industry concentrations and their relative strengths, amount of unsecured loans, and underwriting exceptions. Management continually reevaluates the other subjective factors included in its ALLL analysis. |
Other Real Estate Owned | Other Real Estate Owned All revenues and expenses related to the carrying of other real estate owned are recognized through the income statement. |
Income Taxes | Income Taxes |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Securities [Abstract] | |
Amortized Cost and Fair Value of Available-for-sale Securities | The amortized cost and fair value of securities at September 30, 2018 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 246,153 $ 0 $ (3,354 ) $ 242,799 State and political subdivisions 127,423 480 (3,911 ) 123,992 U.S. government sponsored agency mortgage-backed securities 208,900 146 (7,135 ) 201,911 Other debt securities 507 0 (1 ) 506 Total debt securities 582,983 626 (14,401 ) 569,208 CRA investment funds 0 0 0 0 Total available-for-sale securities $ 582,983 $ 626 $ (14,401 ) $ 569,208 The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury and government agencies $ 211,574 $ 170 $ (1,172 ) $ 210,572 State and political subdivisions 144,159 2,017 (1,161 ) 145,015 U.S. government sponsored agency mortgage-backed securities 208,959 357 (4,007 ) 205,309 Other debt securities 507 0 0 507 Total debt securities 565,199 2,544 (6,340 ) 561,403 CRA investment funds 25,000 76 (718 ) 24,358 Total available-for-sale securities $ 590,199 $ 2,620 $ (7,058 ) $ 585,761 |
Amortized Cost and Fair Value of Held-to-maturity Securities | The amortized cost and fair value of securities at September 30, 2018 are summarized as follows: Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 659 $ 1 $ 0 $ 660 Total held-to-maturity securities $ 659 $ 1 $ 0 $ 660 The amortized cost and fair value of securities at December 31, 2017 are summarized as follows: Held-to-Maturity (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value State and political subdivisions $ 659 $ 1 $ 0 $ 660 Total held-to-maturity securities $ 659 $ 1 $ 0 $ 660 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities at September 30, 2018 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-Sale Held-to-Maturity (in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 46,660 $ 46,471 $ 0 $ 0 Due after one through five years 133,244 131,223 659 660 Due after five through ten years 76,825 75,192 0 0 Due after ten years 116,847 113,905 0 0 U.S. government sponsored agency mortgage-backed securities 208,900 201,911 0 0 Other debt securities 507 506 0 0 Total securities $ 582,983 $ 569,208 $ 659 $ 660 |
Available for Sale Securities and Held-to-Maturity Securities, Continuous Unrealized Loss Position | The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of September 30, 2018 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of September 30, 2018. Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 132,224 $ (1,300 ) $ 130,924 State and political subdivisions 59,535 (1,511 ) 58,024 U.S. government sponsored agency mortgage-backed securities 32,681 (674 ) 32,007 Other debt securities 507 (1 ) 506 Total <12 months temporarily impaired AFS securities 224,947 (3,486 ) 221,461 12 Months or More U.S. Treasury and government agencies 113,929 (2,054 ) 111,875 State and political subdivisions 29,021 (2,400 ) 26,621 U.S. government sponsored agency mortgage-backed securities 162,034 (6,461 ) 155,573 Other debt securities 0 0 0 Total ≥12 months temporarily impaired AFS securities 304,984 (10,915 ) 294,069 Total U.S. Treasury and government agencies 246,153 (3,354 ) 242,799 State and political subdivisions 88,556 (3,911 ) 84,645 U.S. government sponsored agency mortgage-backed securities 194,715 (7,135 ) 187,580 Other debt securities 507 (1 ) 506 Total temporarily impaired AFS securities $ 529,931 $ (14,401 ) $ 515,530 The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2017 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2017. Available-for-Sale (in thousands) Amortized Cost Gross Unrealized Losses Fair Value Less Than 12 Months U.S. Treasury and government agencies $ 136,688 $ (840 ) $ 135,848 State and political subdivisions 34,283 (416 ) 33,867 U.S. government sponsored agency mortgage-backed securities 62,768 (643 ) 62,125 Total debt securities 233,739 (1,899 ) 231,840 CRA investment funds 7,500 (105 ) 7,395 Total <12 months temporarily impaired AFS securities 241,239 (2,004 ) 239,235 12 Months or More U.S. Treasury and government agencies 23,885 (332 ) 23,553 State and political subdivisions 16,930 (745 ) 16,185 U.S. government sponsored agency mortgage-backed securities 117,827 (3,364 ) 114,463 Total debt securities 158,642 (4,441 ) 154,201 CRA investment funds 15,000 (613 ) 14,387 Total ≥12 months temporarily impaired AFS securities 173,642 (5,054 ) 168,588 Total U.S. Treasury and government agencies 160,573 (1,172 ) 159,401 State and political subdivisions 51,213 (1,161 ) 50,052 U.S. government sponsored agency mortgage-backed securities 180,595 (4,007 ) 176,588 Total debt securities 392,381 (6,340 ) 386,041 CRA investment funds 22,500 (718 ) 21,782 Total temporarily impaired AFS securities $ 414,881 $ (7,058 ) $ 407,823 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 net premiums on acquired loans, are summarized as follows: (in thousands) September 30 2018 December 31 2017 Commercial construction $ 81,472 $ 76,479 Commercial secured by real estate 1,183,632 1,188,680 Equipment lease financing 1,986 3,042 Commercial other 346,645 351,034 Real estate construction 61,782 67,358 Real estate mortgage 722,022 709,570 Home equity 103,805 99,356 Consumer direct 146,002 137,754 Consumer indirect 530,542 489,667 Total loans $ 3,177,888 $ 3,122,940 |
Nonaccrual Loans Segregated by Class of Loans | Nonaccrual loans segregated by class of loans were as follows: (in thousands) September 30 2018 December 31 2017 Commercial: Commercial construction $ 619 $ 1,207 Commercial secured by real estate 5,061 7,028 Commercial other 443 934 Residential: Real estate construction 22 318 Real estate mortgage 6,401 8,243 Home equity 486 389 Total nonaccrual loans $ 13,032 $ 18,119 |
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, 2018 and December 31, 2017: September 30, 2018 (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 $ 127 $ 116 $ 551 $ 794 $ 80,678 $ 81,472 $ 47 Commercial secured by real estate 5,962 8,174 6,673 20,809 1,162,823 1,183,632 2,453 Equipment lease financing 0 0 0 0 1,986 1,986 0 Commercial other 549 794 287 1,630 345,015 346,645 90 Residential: Real estate construction 420 218 33 671 61,111 61,782 11 Real estate mortgage 939 4,658 9,291 14,888 707,134 722,022 4,413 Home equity 917 293 593 1,803 102,002 103,805 310 Consumer: Consumer direct 828 355 36 1,219 144,783 146,002 36 Consumer indirect 4,405 841 645 5,891 524,651 530,542 645 Total $ 14,147 $ 15,449 $ 18,109 $ 47,705 $ 3,130,183 $ 3,177,888 $ 8,005 December 31, 2017 (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 $ 138 $ 0 $ 1,238 $ 1,376 $ 75,103 $ 76,479 $ 31 Commercial secured by real estate 4,047 1,599 8,514 14,160 1,174,520 1,188,680 2,665 Equipment lease financing 430 0 0 430 2,612 3,042 0 Commercial other 835 77 652 1,564 349,470 351,034 87 Residential: Real estate construction 224 202 223 649 66,709 67,358 223 Real estate mortgage 2,064 5,029 11,605 18,698 690,872 709,570 6,293 Home equity 595 178 428 1,201 98,155 99,356 167 Consumer: Consumer direct 983 148 62 1,193 136,561 137,754 62 Consumer indirect 4,085 1,399 648 6,132 483,535 489,667 648 Total $ 13,401 $ 8,632 $ 23,370 $ 45,403 $ 3,077,537 $ 3,122,940 $ 10,176 *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, as of September 30, 2018 and December 31, 2017: (in thousands) Commercial Construction Commercial Secured by Real Estate Equipment Leases Commercial Other Total September 30, 2018 Pass $ 74,592 $ 1,029,800 $ 1,986 $ 294,562 $ 1,400,940 Watch 3,133 74,669 0 30,020 107,822 OAEM 1,626 17,906 0 6,903 26,435 Substandard 2,121 61,146 0 15,080 78,347 Doubtful 0 111 0 80 191 Total $ 81,472 $ 1,183,632 $ 1,986 $ 346,645 $ 1,613,735 December 31, 2017 Pass $ 67,846 $ 1,053,701 $ 3,005 $ 305,655 $ 1,430,207 Watch 3,323 65,182 0 29,008 97,513 OAEM 1,304 22,401 37 3,206 26,948 Substandard 3,828 47,223 0 12,947 63,998 Doubtful 178 173 0 218 569 Total $ 76,479 $ 1,188,680 $ 3,042 $ 351,034 $ 1,619,235 |
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, as of September 30, 2018 and December 31, 2017: (in thousands) Real Estate Construction Real Estate Mortgage Home Equity Consumer Direct Consumer Indirect Total September 30, 2018 Performing $ 61,749 $ 711,208 $ 103,009 $ 145,966 $ 529,897 $ 1,551,829 Nonperforming (1) 33 10,814 796 36 645 12,324 Total $ 61,782 $ 722,022 $ 103,805 $ 146,002 $ 530,542 $ 1,564,153 December 31, 2017 Performing $ 66,817 $ 695,034 $ 98,800 $ 137,692 $ 489,019 $ 1,487,362 Nonperforming (1) 541 14,536 556 62 648 16,343 Total $ 67,358 $ 709,570 $ 99,356 $ 137,754 $ 489,667 $ 1,503,705 (1) A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
Impaired Loans, Average Investment in Impaired Loans, and Interest Income Recognized on Impaired Loans | The following table presents impaired loans, the average investment in impaired loans, and interest income recognized on impaired loans for the periods ended September 30, 2018, December 31, 2017, and September 30, 2017: September 30, 2018 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Loans without a specific valuation allowance: Commercial construction $ 2,804 $ 2,804 $ 0 Commercial secured by real estate 31,632 33,538 0 Commercial other 8,268 10,034 0 Real estate mortgage 1,878 1,880 0 Loans with a specific valuation allowance: Commercial secured by real estate 1,980 3,116 641 Commercial other 321 321 95 Totals: Commercial construction 2,804 2,804 0 Commercial secured by real estate 33,612 36,654 641 Commercial other 8,589 10,355 95 Real estate mortgage 1,878 1,880 0 Total $ 46,883 $ 51,693 $ 736 Three Months Ended Nine Months Ended September 30, 2018 September 30, 2018 (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 $ 2,865 $ 26 $ 3,795 $ 132 Commercial secured by real estate 30,216 349 30,588 1,073 Commercial other 8,518 125 8,857 405 Real estate construction 0 0 106 0 Real estate mortgage 1,882 13 1,596 24 Loans with a specific valuation allowance: Commercial secured by real estate 2,005 0 2,112 1 Commercial other 339 8 220 12 Totals: Commercial construction 2,865 26 3,795 132 Commercial secured by real estate 32,221 349 32,700 1,074 Commercial other 8,857 133 9,077 417 Real estate construction 0 0 106 0 Real estate mortgage 1,882 13 1,596 24 Total $ 45,825 $ 521 $ 47,274 $ 1,647 Year Ended December 31, 2017 (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 $ 4,431 $ 4,439 $ 0 $ 4,835 $ 200 Commercial secured by real estate 28,480 30,365 0 27,753 1,344 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,444 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Loans with a specific valuation allowance: Commercial construction 153 173 25 155 0 Commercial secured by real estate 2,985 4,095 966 3,932 8 Commercial other 0 0 0 65 0 Totals: Commercial construction 4,584 4,612 25 4,990 200 Commercial secured by real estate 31,465 34,460 966 31,685 1,352 Equipment lease financing 0 0 0 34 0 Commercial other 9,481 11,252 0 10,509 539 Real estate construction 318 318 0 534 0 Real estate mortgage 1,564 1,570 0 1,591 36 Total $ 47,412 $ 52,212 $ 991 $ 49,343 $ 2,127 September 30, 2017 (in thousands) Recorded Balance Unpaid Contractual Principal Balance Specific Allowance Loans without a specific valuation allowance: Commercial construction $ 4,613 $ 4,621 $ 0 Commercial secured by real estate 25,322 25,916 0 Commercial other 9,994 11,804 0 Real estate construction 873 873 0 Real estate mortgage 1,196 1,196 0 Loans with a specific valuation allowance: Commercial construction 153 174 25 Commercial secured by real estate 3,918 5,023 1,301 Commercial other 130 133 65 Totals: Commercial construction 4,766 4,795 25 Commercial secured by real estate 29,240 30,939 1,301 Commercial other 10,124 11,937 65 Real estate construction 873 873 0 Real estate mortgage 1,196 1,196 0 Total $ 46,199 $ 49,740 $ 1,391 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 (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 $ 4,662 $ 50 $ 4,955 $ 136 Commercial secured by real estate 25,452 276 27,318 980 Equipment lease financing 0 0 45 0 Commercial other 10,191 123 10,717 396 Real estate construction 860 0 569 0 Real estate mortgage 1,197 8 1,601 30 Loans with a specific valuation allowance: Commercial construction 153 0 156 0 Commercial secured by real estate 3,984 3 4,236 8 Commercial other 130 0 87 0 Totals: Commercial construction 4,815 50 5,111 136 Commercial secured by real estate 29,436 279 31,554 988 Equipment lease financing 0 0 45 0 Commercial other 10,321 123 10,804 396 Real estate construction 860 0 569 0 Real estate mortgage 1,197 8 1,601 30 Total $ 46,629 $ 460 $ 49,684 $ 1,550 *Cash basis interest is substantially the same as interest income recognized. |
Troubled Debt Restructuring | Presented below, segregated by class of loans, are troubled debt restructurings that occurred during the three and nine months ended September 30, 2018 and 2017 and the year ended December 31, 2017: Three Months Ended September 30, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial secured by real estate 6 2,028 0 400 2,428 Residential: Real estate mortgage 1 264 0 0 264 Total troubled debt restructurings 7 $ 2,292 $ 0 $ 400 $ 2,692 Nine Months Ended September 30, 2018 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 4 $ 443 $ 0 $ 15 $ 458 Commercial secured by real estate 23 4,587 0 1,383 5,970 Commercial other 8 465 0 0 465 Residential: Real estate mortgage 1 264 0 0 264 Total troubled debt restructurings 36 $ 5,759 $ 0 $ 1,398 $ 7,157 Year Ended December 31, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 2 $ 0 $ 0 $ 114 $ 114 Commercial secured by real estate 15 2,199 0 192 2,391 Commercial other 22 1,072 0 136 1,208 Residential: Real estate construction 1 846 0 0 846 Real estate mortgage 3 988 0 0 988 Total troubled debt restructurings 43 $ 5,105 $ 0 $ 442 $ 5,547 Three Months Ended September 30, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial secured by real estate 6 $ 295 $ 0 $ 0 $ 295 Commercial other 1 102 0 0 102 Total troubled debt restructurings 7 $ 397 $ 0 $ 0 $ 397 Nine Months Ended September 30, 2017 (in thousands) Number of Loans Term Modification Rate Modification Combination Post-Modification Outstanding Balance Commercial: Commercial construction 2 $ 0 $ 0 $ 114 $ 114 Commercial secured by real estate 11 874 0 192 1,066 Commercial other 10 237 0 136 373 Residential: Real estate construction 1 846 0 0 846 Real estate mortgage 1 323 0 0 323 Total troubled debt restructurings 25 $ 2,280 $ 0 $ 442 $ 2,722 |
Defaulted Restructured Loans | 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. (in thousands) Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 147 0 $ 0 Commercial secured by real estate 0 0 2 961 Commercial other 1 6 0 0 Residential: Real estate construction 0 0 1 846 Total defaulted restructured loans 3 $ 153 3 $ 1,807 (in thousands) Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Number of Loans Recorded Balance Number of Loans Recorded Balance Commercial: Commercial construction 2 $ 147 0 $ 0 Commercial secured by real estate 1 17 2 $ 961 Commercial other 2 31 0 0 Residential: Real estate construction 0 0 1 846 Total defaulted restructured loans 5 $ 195 3 $ 1,807 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Abstract] | |
Activity in Allowance for Loan and Lease Losses | The following tables present 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 September 30, 2018, December 31, 2017 and September 30, 2017: Three Months Ended September 30, 2018 (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 Allowance for loan losses Beginning balance $ 740 $ 14,658 $ 17 $ 4,637 $ 618 $ 5,234 $ 866 $ 1,910 $ 7,091 $ 35,771 Provision charged to expense 54 298 (2 ) 82 (44 ) (566 ) (9 ) 59 1,671 1,543 Losses charged off 0 (460 ) 0 (521 ) 0 (136 ) (19 ) (196 ) (1,496 ) (2,828 ) Recoveries 23 142 0 407 0 7 4 133 589 1,305 Ending balance $ 817 $ 14,638 $ 15 $ 4,605 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,791 Ending balance: Individually evaluated for impairment $ 0 $ 641 $ 0 $ 95 $ 0 $ 0 $ 0 $ 0 $ 0 $ 736 Collectively evaluated for impairment $ 817 $ 13,997 $ 15 $ 4,510 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,055 Loans Ending balance: Individually evaluated for impairment $ 2,804 $ 33,612 $ 0 $ 8,589 $ 0 $ 1,878 $ 0 $ 0 $ 0 $ 46,883 Collectively evaluated for impairment $ 78,668 $ 1,150,020 $ 1,986 $ 338,056 $ 61,782 $ 720,144 $ 103,805 $ 146,002 $ 530,542 $ 3,131,005 Nine Months Ended September 30, 2018 (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 Allowance for loan losses Beginning balance $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Provision charged to expense 91 895 (3 ) 98 (58 ) (625 ) 18 402 3,600 4,418 Losses charged off 0 (937 ) 0 (1,078 ) (28 ) (550 ) (38 ) (687 ) (5,013 ) (8,331 ) Recoveries 40 171 0 546 0 26 5 328 2,437 3,553 Ending balance $ 817 $ 14,638 $ 15 $ 4,605 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,791 Ending balance: Individually evaluated for impairment $ 0 $ 641 $ 0 $ 95 $ 0 $ 0 $ 0 $ 0 $ 0 $ 736 Collectively evaluated for impairment $ 817 $ 13,997 $ 15 $ 4,510 $ 574 $ 4,539 $ 842 $ 1,906 $ 7,855 $ 35,055 Loans Ending balance: Individually evaluated for impairment $ 2,804 $ 33,612 $ 0 $ 8,589 $ 0 $ 1,878 $ 0 $ 0 $ 0 $ 46,883 Collectively evaluated for impairment $ 78,668 $ 1,150,020 $ 1,986 $ 338,056 $ 61,782 $ 720,144 $ 103,805 $ 146,002 $ 530,542 $ 3,131,005 Three Months Ended September 30, 2017 (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 Allowance for loan losses Beginning balance $ 669 $ 15,299 $ 33 $ 4,993 $ 581 $ 5,662 $ 747 $ 1,866 $ 7,283 $ 37,133 Provision charged to expense (19 ) (1 ) (14 ) 210 49 276 113 47 5 666 Losses charged off (6 ) (249 ) 0 (549 ) 0 (158 ) (53 ) (166 ) (1,262 ) (2,443 ) Recoveries 28 53 0 308 0 6 0 110 530 1,035 Ending balance $ 672 $ 15,102 $ 19 $ 4,962 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 36,391 Ending balance: Individually evaluated for impairment $ 25 $ 1,301 $ 0 $ 65 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,391 Collectively evaluated for impairment $ 647 $ 13,801 $ 19 $ 4,897 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 35,000 Loans Ending balance: Individually evaluated for impairment $ 4,766 $ 29,240 $ 0 $ 10,124 $ 873 $ 1,196 $ 0 $ 0 $ 0 $ 46,199 Collectively evaluated for impairment $ 69,516 $ 1,168,364 $ 3,290 $ 329,213 $ 63,568 $ 711,041 $ 96,755 $ 137,657 $ 487,818 $ 3,067,222 Nine Months Ended September 30, 2017 (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 Allowance for loan losses Beginning balance $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (239 ) 1,622 (23 ) 1,229 0 1 87 243 1,739 4,659 Losses charged off (10 ) (776 ) 0 (1,386 ) 0 (321 ) (57 ) (675 ) (3,898 ) (7,123 ) Recoveries 37 65 0 463 1 79 3 404 1,870 2,922 Ending balance $ 672 $ 15,102 $ 19 $ 4,962 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 36,391 Ending balance: Individually evaluated for impairment $ 25 $ 1,301 $ 0 $ 65 $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,391 Collectively evaluated for impairment $ 647 $ 13,801 $ 19 $ 4,897 $ 630 $ 5,786 $ 807 $ 1,857 $ 6,556 $ 35,000 Loans Ending balance: Individually evaluated for impairment $ 4,766 $ 29,240 $ 0 $ 10,124 $ 873 $ 1,196 $ 0 $ 0 $ 0 $ 46,199 Collectively evaluated for impairment $ 69,516 $ 1,168,364 $ 3,290 $ 329,213 $ 63,568 $ 711,041 $ 96,755 $ 137,657 $ 487,818 $ 3,067,222 Year Ended December 31, 2017 (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 Allowance for loan losses Beginning balance $ 884 $ 14,191 $ 42 $ 4,656 $ 629 $ 6,027 $ 774 $ 1,885 $ 6,845 $ 35,933 Provision charged to expense (237 ) 2,281 (24 ) 1,744 31 189 257 418 2,862 7,521 Losses charged off (10 ) (2,038 ) 0 (1,893 ) 0 (615 ) (178 ) (965 ) (5,386 ) (11,085 ) Recoveries 49 75 0 532 0 87 4 525 2,510 3,782 Ending balance $ 686 $ 14,509 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 36,151 Ending balance: Individually evaluated for impairment $ 25 $ 966 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 991 Collectively evaluated for impairment $ 661 $ 13,543 $ 18 $ 5,039 $ 660 $ 5,688 $ 857 $ 1,863 $ 6,831 $ 35,160 Loans Ending balance: Individually evaluated for impairment $ 4,584 $ 31,465 $ 0 $ 9,481 $ 318 $ 1,564 $ 0 $ 0 $ 0 $ 47,412 Collectively evaluated for impairment $ 71,895 $ 1,157,215 $ 3,042 $ 341,553 $ 67,040 $ 708,006 $ 99,356 $ 137,754 $ 489,667 $ 3,075,528 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Other Real Estate Owned [Abstract] | |
Activity for Other Real Estate Owned | Activity for other real estate owned was as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Beginning balance of other real estate owned $ 30,262 $ 32,785 $ 31,996 $ 35,856 New assets acquired 849 2,722 3,692 4,303 Capitalized costs 0 0 0 0 Fair value adjustments (670 ) (884 ) (1,990 ) (2,871 ) Sale of assets (775 ) (2,575 ) (4,032 ) (5,240 ) Ending balance of other real estate owned $ 29,666 $ 32,048 $ 29,666 $ 32,048 |
Major Classifications of Foreclosed Properties | The major classifications of foreclosed properties are shown in the following table: (in thousands) September 30 2018 December 31 2017 1-4 family $ 5,475 $ 5,908 Agricultural/farmland 0 68 Construction/land development/other 15,230 16,158 Multifamily 88 176 Non-farm/non-residential 8,873 9,686 Total foreclosed properties $ 29,666 $ 31,996 |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Repurchase Agreements [Abstract] | |
Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase by Class of Collateral Pledged | The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables: September 30, 2018 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and U.S. Treasury and government agencies $ 42,375 $ 41,540 $ 0 $ 34,733 $ 118,648 State and political subdivisions 61,820 5,961 0 7,306 75,087 U.S. government sponsored agency mortgage-backed securities 13,374 24,499 0 19,375 57,248 Total $ 117,569 $ 72,000 $ 0 $ 61,414 $ 250,983 December 31, 2017 Remaining Contractual Maturity of the Agreements (in thousands) Overnight and Up to 30 days 30-90 days Greater Than Total Repurchase agreements and U.S. Treasury and government agencies $ 24,957 $ 0 $ 16,771 $ 67,867 $ 109,595 State and political subdivisions 62,620 0 567 12,161 75,348 U.S. government sponsored agency mortgage-backed securities 13,360 0 4,662 40,849 58,871 Total $ 100,937 $ 0 $ 22,000 $ 120,877 $ 243,814 |
Fair Market Value of Financia_2
Fair Market Value of Financial Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Fair Market Value of Financial Assets and Liabilities [Abstract] | |
Fair Value Assets Measured on Recurring Basis | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis as of September 30, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques. Fair Value Measurements at September 30, 2018 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 242,799 $ 91,465 $ 151,334 $ 0 State and political subdivisions 123,992 0 123,992 0 U.S. government sponsored agenc y mortgage-backed securities 201,911 0 201,911 0 Other debt securities 506 0 506 0 Mortgage servicing rights 3,815 0 0 3,815 (in thousands) Fair Value Measurements at December 31, 2017 Using Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – recurring basis Available-for-sale securities: U.S. Treasury and government agencies $ 210,572 $ 64,598 $ 145,974 $ 0 State and political subdivisions 145,015 0 145,015 0 U.S. government sponsored agenc y mortgage-backed securities 205,309 0 205,309 0 Other debt securities 507 0 507 0 CRA investment funds 24,358 24,358 0 0 Mortgage servicing rights 3,484 0 0 3,484 |
Reconciliation of the Beginning and Ending Balance of Recurring Fair Value Measurements Using Significant Unobservable (Level 3) Inputs | Following is a reconciliation of the beginning and ending balances of recurring fair value measurements recognized in the accompanying balance sheet using significant unobservable (Level 3) inputs for the three and nine months ended September 30, 2018 and 2017: Mortgage Servicing Rights Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Beginning balance $ 3,772 $ 3,304 $ 3,484 $ 3,433 Total recognized gains (losses) Included in net income 45 5 341 (73 ) Issues 118 98 329 269 Settlements (120 ) (124 ) (339 ) (346 ) Ending balance $ 3,815 $ 3,283 $ 3,815 $ 3,283 Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date $ 45 $ 5 $ 341 $ (73 ) |
Realized and Unrealized Gains and Losses for Items Included in Net Income in the Consolidated Statements of Income | Realized and unrealized gains and losses for items reflected in the table above are included in net income in the consolidated statements of income as follows: Noninterest Income Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2018 2017 2018 2017 Total gains (losses) $ (75 ) $ (119 ) $ 2 $ (419 ) |
Fair Value Measurements of Recognized Assets Measured on Nonrecurring Basis | The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of September 30, 2018 and December 31, 2017 and indicate the level within the fair value hierarchy of the valuation techniques. Fair Value Measurements at September 30, 2018 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 556 $ 0 $ 0 $ 556 Other real estate owned 7,640 0 0 7,640 Fair Value Measurements at December 31, 2017 Using (in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured – nonrecurring basis Impaired loans (collateral dependent) $ 2,709 $ 0 $ 0 $ 2,709 Other real estate owned 18,951 0 0 18,951 |
Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements | The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at September 30, 2018 and December 31, 2017. (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at September 30, 2018 Valuation Technique(s) Unobservable Input Range (Weighted Average) Mortgage servicing rights $ 3,815 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 28.0% (8.3%) Probability of default 0.0% - 100.0% (2.5%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $ 556 Market comparable properties Marketability discount 10.0% - 100.0% (44.1%) Other real estate owned $ 7,640 Market comparable properties Comparability adjustments 6.0% - 32.0% (15.7%) (in thousands) Quantitative Information about Level 3 Fair Value Measurements Fair Value at December 31, 2017 Valuation Technique(s) Unobservable Input Range (Weighted Average) Mortgage servicing rights $ 3,484 Discount cash flows, computer pricing model Constant prepayment rate 7.0% - 45.0% (10.0%) Probability of default 0.0% - 100.0% (3.0%) Discount rate 10.0% - 11.5% (10.1%) Impaired loans (collateral-dependent) $ 2,709 Market comparable properties Marketability discount 1.9% - 89.8% (38.5%) Other real estate owned $ 18,951 Market comparable properties Comparability adjustments 6.0% - 58.6% (15.0%) |
Fair Value of Financial Instruments and Levels within the Fair Value Hierarchy of the Valuation Techniques | The following table presents estimated fair value of CTBI’s financial instruments as of September 30, 2018 and indicates the level within the fair value hierarchy of the valuation techniques. In accordance with the prospective adoption of ASU 2016-01, the fair values as of September 30, 2018 were measured using an exit price notion. Fair Value Measurements at September 30, 2018 Using (in thousands) Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 171,333 $ 171,333 $ 0 $ 0 Certificates of deposit in other banks 5,145 0 5,134 0 Securities available-for-sale 569,208 91,465 477,743 0 Securities held-to-maturity 659 0 660 0 Loans held for sale 1,029 1,050 0 0 Loans, net 3,142,097 0 0 3,137,941 Federal Home Loan Bank stock 14,713 0 14,713 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 14,628 0 14,628 0 Mortgage servicing rights 3,815 0 0 3,815 Financial liabilities: Deposits $ 3,273,646 $ 826,804 $ 2,460,736 $ 0 Repurchase agreements 250,983 0 0 251,261 Federal funds purchased 1,305 0 1,305 0 Advances from Federal Home Loan Bank 787 0 845 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 4,381 0 4,381 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 The following table presents estimated fair value of CTBI’s financial instruments as of December 31, 2017 and indicates the level within the fair value hierarchy of the valuation techniques. (in thousands) Fair Value Measurements at December 31, 2017 Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial assets: Cash and cash equivalents $ 175,274 $ 175,274 $ 0 $ 0 Certificates of deposit in other banks 9,800 0 9,772 0 Securities available-for-sale 585,761 88,956 496,805 0 Securities held-to-maturity 659 0 660 0 Loans held for sale 1,033 1,060 0 0 Loans, net 3,086,789 0 0 3,092,437 Federal Home Loan Bank stock 17,927 0 17,927 0 Federal Reserve Bank stock 4,887 0 4,887 0 Accrued interest receivable 13,338 0 13,338 0 Mortgage servicing rights 3,484 0 0 3,484 Financial liabilities: Deposits $ 3,263,863 $ 790,930 $ 2,319,278 $ 0 Repurchase agreements 243,814 0 0 243,932 Federal funds purchased 7,312 0 7,312 0 Advances from Federal Home Loan Bank 845 0 841 0 Long-term debt 59,341 0 0 44,166 Accrued interest payable 2,228 0 2,228 0 Unrecognized financial instruments: Letters of credit $ 0 $ 0 $ 0 $ 0 Commitments to extend credit 0 0 0 0 Forward sale commitments 0 0 0 0 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30 September 30 (in thousands except per share data) 2018 2017 2018 2017 Numerator: Net income $ 16,106 $ 13,763 $ 43,519 $ 36,581 Denominator: Basic earnings per share: Weighted average shares 17,691 17,633 17,683 17,625 Diluted earnings per share: Effect of dilutive stock options and restricted stock grants 19 20 17 20 Adjusted weighted average shares 17,710 17,653 17,700 17,645 Earnings per share: Basic earnings per share $ 0.91 $ 0.78 $ 2.46 $ 2.08 Diluted earnings per share 0.91 0.78 2.46 2.07 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Amounts Reclassified from Accumulated Other Comprehensive Income (AOCI) | Amounts reclassified from accumulated other comprehensive income (AOCI) and the affected line items in the statements of income during the three and nine months ended September 30, 2018 and 2017 were: Amounts Reclassified from AOCI (in thousands) Three Months Ended September 30 Nine Months Ended September 30 2018 2017 2018 2017 Affected line item in the statements of income Securities gains $ (2 ) $ 48 $ 149 $ 58 Tax expense 0 17 32 20 Total reclassifications out of AOCI $ (2 ) $ 31 $ 117 $ 38 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2018USD ($)PaymentQuarter | Dec. 31, 2017USD ($) | |
New Accounting Standards [Abstract] | ||
Equity securities | $ 25 | |
Unrealized holding loss on securities | $ (0.6) | |
Federal corporate income tax rate | 21.00% | |
Loans [Abstract] | ||
Past due period after which loans must be well secured and in the process of collection to continue accruing interest | 90 days | |
Period of current principal and interest payments for reclassifying nonaccrual loans as accruing loans | 6 months | |
Allowance for Loan and Lease Losses [Abstract] | ||
Number of delinquent monthly payments before loan charge off | Payment | 5 | |
Threshold period past due for initiation of foreclosure proceedings | 120 days | |
Current value assessment period for past due loans secured against real estate | 90 days | |
Historical loan loss review period | Quarter | 12 | |
Minimum [Member] | ||
New Accounting Standards [Abstract] | ||
Net present value of all potential lease payments | $ 10.1 | |
Other Real Estate Owned [Abstract] | ||
Typical frequency of periodic reviews | 12 months | |
Maximum [Member] | ||
New Accounting Standards [Abstract] | ||
Net present value of all potential lease payments | $ 20.3 | |
Other Real Estate Owned [Abstract] | ||
Typical frequency of periodic reviews | 18 months | |
Frequency of periodic reviews in general | 24 months | |
Commercial [Member] | Unsecured Commercial Loan [Member] | ||
Allowance for Loan and Lease Losses [Abstract] | ||
Charge off threshold for loans considered uncollectible | 90 days | |
Consumer [Member] | Closed-End Consumer Loan [Member] | ||
Allowance for Loan and Lease Losses [Abstract] | ||
Charge off threshold for loans considered uncollectible | 120 days |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Stock-based Compensation [Abstract] | ||||
Stock based compensation expense | $ 553 | $ 447 | ||
Stock Options [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Stock based compensation expense | $ 11 | $ 14 | 74 | $ 42 |
Unrecognized compensation expense related to unvested stock option awards | 48 | $ 48 | ||
Unrecognized compensation expense, weighted average period | 1 year 2 months 12 days | |||
Options granted to purchase shares of CTBI common stock (in shares) | 0 | 0 | ||
Restricted Stock [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Stock based compensation expense | 143 | 131 | $ 479 | $ 405 |
Dividend paid on stock based compensation | 13 | $ 13 | 38 | $ 40 |
Unrecognized compensation expense related to restricted stock grants | $ 1,200 | $ 1,200 | ||
Unrecognized compensation expense, weighted average period | 2 years 7 months 6 days | |||
Granted (in shares) | 0 | 0 | 11,320 | 23,668 |
2015 Plan [Member] | Restricted Stock [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Award vesting period | 4 years | |||
2015 Plan [Member] | Restricted Stock [Member] | Maximum [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Period of certain participant employee termination events following change in control for restriction on restricted stock granted to lapse | 24 months | |||
2015 Plan [Member] | Granted In 2017 [Member] | Restricted Stock [Member] | ||||
Stock-based Compensation [Abstract] | ||||
Granted (in shares) | 5,000 | |||
Award vesting period | 5 years |
Securities, Available-for-sale
Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 582,983 | $ 565,199 |
Gross unrealized gains | 626 | 2,544 |
Gross unrealized losses | (14,401) | (6,340) |
Fair value | 569,208 | 561,403 |
Equity Securities, Available-for-sale [Abstract] | ||
Amortized cost | 25,000 | |
Available-for-sale [Abstract] | ||
Amortized cost | 582,983 | 590,199 |
Gross unrealized gains | 626 | 2,620 |
Gross unrealized losses | (14,401) | (7,058) |
Available-for-sale securities | 569,208 | 585,761 |
U.S. Treasury and Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 246,153 | 211,574 |
Gross unrealized gains | 0 | 170 |
Gross unrealized losses | (3,354) | (1,172) |
Fair value | 242,799 | 210,572 |
State and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 127,423 | 144,159 |
Gross unrealized gains | 480 | 2,017 |
Gross unrealized losses | (3,911) | (1,161) |
Fair value | 123,992 | 145,015 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 208,900 | 208,959 |
Gross unrealized gains | 146 | 357 |
Gross unrealized losses | (7,135) | (4,007) |
Fair value | 201,911 | 205,309 |
Other Debt Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 507 | 507 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1) | 0 |
Fair value | 506 | 507 |
CRA Investments Funds [Member] | ||
Equity Securities, Available-for-sale [Abstract] | ||
Amortized cost | 0 | 25,000 |
Gross unrealized gains | 0 | 76 |
Gross unrealized losses | 0 | (718) |
Fair value | $ 0 | $ 24,358 |
Securities, Held-to-maturity Se
Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Held-to-maturity [Abstract] | ||
Amortized cost | $ 659 | $ 659 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | 660 | 660 |
State and Political Subdivisions [Member] | ||
Held-to-maturity [Abstract] | ||
Amortized cost | 659 | 659 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | 0 | 0 |
Fair value | $ 660 | $ 660 |
Securities, Amortized Cost and
Securities, Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Available-for-sale, amortized cost [Abstract] | ||
Due in one year or less | $ 46,660 | |
Due after one through five years | 133,244 | |
Due after five through ten years | 76,825 | |
Due after ten years | 116,847 | |
Amortized cost | 582,983 | $ 590,199 |
Available-for-sale, fair value [Abstract] | ||
Due in one year or less | 46,471 | |
Due after one through five years | 131,223 | |
Due after five through ten years | 75,192 | |
Due after ten years | 113,905 | |
Total securities | 569,208 | 585,761 |
Held-to-maturity, amortized cost [Abstract] | ||
Due in one year or less | 0 | |
Due after one through five years | 659 | |
Due after five through ten years | 0 | |
Due after ten years | 0 | |
Amortized cost | 659 | 659 |
Held-to-maturity, fair value [Abstract] | ||
Due in one year or less | 0 | |
Due after one through five years | 660 | |
Due after five through ten years | 0 | |
Due after ten years | 0 | |
Total debt securities | 660 | $ 660 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Without single maturity date | 208,900 | |
Available-for-sale, fair value [Abstract] | ||
Without single maturity date | 201,911 | |
Held-to-maturity, amortized cost [Abstract] | ||
Without single maturity date | 0 | |
Held-to-maturity, fair value [Abstract] | ||
Without single maturity date | 0 | |
Other Debt Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Without single maturity date | 507 | |
Available-for-sale, fair value [Abstract] | ||
Without single maturity date | 506 | |
Held-to-maturity, amortized cost [Abstract] | ||
Without single maturity date | 0 | |
Held-to-maturity, fair value [Abstract] | ||
Without single maturity date | $ 0 |
Securities, Gains (Loss) on Sal
Securities, Gains (Loss) on Sales of Securities, Securities Pledged, and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Gains (Loss) on Sales of Securities [Abstract} | ||||||
Net gain (loss) realized on sales and calls of AFS securities | $ (2) | $ 48 | $ (288) | $ 58 | ||
Realized pre-tax gain on sales and calls of AFS securities | 150 | 284 | 179 | |||
Realized pre-tax loss on sales and calls of AFS securities | 2 | $ 102 | 572 | $ 121 | ||
Securities pledged as collateral to secure public deposit and for other purposes | 235,900 | 235,900 | $ 225,700 | |||
Amortized cost of securities sold under agreements to repurchase | $ 297,000 | $ 297,000 | $ 296,400 | |||
CRA Investments Funds [Member] | ||||||
Gains (Loss) on Sales of Securities [Abstract} | ||||||
Net gain (loss) realized on sales and calls of AFS securities | $ (436) |
Securities, Securities in Conti
Securities, Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Securities [Abstract] | ||
Percentage of total investment with unrealized losses | 90.50% | 69.50% |
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | $ 224,947 | $ 241,239 |
12 months or more | 304,984 | 173,642 |
Total | 529,931 | 414,881 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (3,486) | (2,004) |
12 months or more | (10,915) | (5,054) |
Total | (14,401) | (7,058) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 221,461 | 239,235 |
12 months or more | 294,069 | 168,588 |
Total | 515,530 | 407,823 |
U.S. Treasury and Government Agencies [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 132,224 | 136,688 |
12 months or more | 113,929 | 23,885 |
Total | 246,153 | 160,573 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (1,300) | (840) |
12 months or more | (2,054) | (332) |
Total | (3,354) | (1,172) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 130,924 | 135,848 |
12 months or more | 111,875 | 23,553 |
Total | 242,799 | 159,401 |
State and Political Subdivisions [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 59,535 | 34,283 |
12 months or more | 29,021 | 16,930 |
Total | 88,556 | 51,213 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (1,511) | (416) |
12 months or more | (2,400) | (745) |
Total | (3,911) | (1,161) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 58,024 | 33,867 |
12 months or more | 26,621 | 16,185 |
Total | 84,645 | 50,052 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 32,681 | 62,768 |
12 months or more | 162,034 | 117,827 |
Total | 194,715 | 180,595 |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (674) | (643) |
12 months or more | (6,461) | (3,364) |
Total | (7,135) | (4,007) |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 32,007 | 62,125 |
12 months or more | 155,573 | 114,463 |
Total | 187,580 | 176,588 |
Other Debt Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 507 | |
12 months or more | 0 | |
Total | 507 | |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (1) | |
12 months or more | 0 | |
Total | (1) | |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 506 | |
12 months or more | 0 | |
Total | $ 506 | |
Debt Securities [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 233,739 | |
12 months or more | 158,642 | |
Total | 392,381 | |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (1,899) | |
12 months or more | (4,441) | |
Total | (6,340) | |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 231,840 | |
12 months or more | 154,201 | |
Total | 386,041 | |
CRA Investments Funds [Member] | ||
Available-for-sale, amortized cost [Abstract] | ||
Less than 12 months | 7,500 | |
12 months or more | 15,000 | |
Total | 22,500 | |
Available-for-sale, gross unrealized losses [Abstract] | ||
Less than 12 months | (105) | |
12 months or more | (613) | |
Total | (718) | |
Available-for-sale, fair value [Abstract] | ||
Less than 12 months | 7,395 | |
12 months or more | 14,387 | |
Total | $ 21,782 |
Loans, Major Classifications of
Loans, Major Classifications of Loans, Net of Income and Deferred Loan Origination Cost (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018USD ($)Segment | Dec. 31, 2017USD ($) | |
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | $ 3,177,888 | $ 3,122,940 |
Number of portfolio segments | Segment | 9 | |
Loans held for sale [Abstract] | ||
Loans held for sale | $ 1,029 | 1,033 |
Commercial [Member] | Construction [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 81,472 | 76,479 |
Commercial [Member] | Real Estate [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 1,183,632 | 1,188,680 |
Commercial [Member] | Equipment Lease Financing [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 1,986 | 3,042 |
Commercial [Member] | Other [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 346,645 | 351,034 |
Residential [Member] | Construction [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 61,782 | 67,358 |
Residential [Member] | Real Estate [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 722,022 | 709,570 |
Residential [Member] | Home Equity [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 103,805 | 99,356 |
Consumer [Member] | Consumer Direct [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | 146,002 | 137,754 |
Consumer [Member] | Consumer Indirect [Member] | ||
Major Classification of Loans Net of Unearned Income, Deferred Loan Origination Costs and Net Premiums on Acquired Loans [Abstract] | ||
Total loans | $ 530,542 | $ 489,667 |
Loans, Nonaccrual Loans Segrega
Loans, Nonaccrual Loans Segregated by Class of Loans and Loan Portfolio Aging Analysis, Segregated by Class (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | $ 13,032 | $ 18,119 | |
Total Past Due | 47,705 | 45,403 | |
Current | 3,130,183 | 3,077,537 | |
Total Loans | 3,177,888 | 3,122,940 | |
90+ and Accruing | [1] | 8,005 | 10,176 |
Minimum threshold amount of loans requiring performance bond | 500 | ||
30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 14,147 | 13,401 | |
60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 15,449 | 8,632 | |
90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | $ 18,109 | 23,370 | |
Equipment Lease Financing [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Financing percentage requested for underwriting loans | 100.00% | ||
Commercial [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Loans | $ 1,613,735 | 1,619,235 | |
Commercial [Member] | Construction [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 619 | 1,207 | |
Total Past Due | 794 | 1,376 | |
Current | 80,678 | 75,103 | |
Total Loans | 81,472 | 76,479 | |
90+ and Accruing | [1] | 47 | 31 |
Commercial [Member] | Construction [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 127 | 138 | |
Commercial [Member] | Construction [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 116 | 0 | |
Commercial [Member] | Construction [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 551 | 1,238 | |
Commercial [Member] | Real Estate [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 5,061 | 7,028 | |
Total Past Due | 20,809 | 14,160 | |
Current | 1,162,823 | 1,174,520 | |
Total Loans | 1,183,632 | 1,188,680 | |
90+ and Accruing | [1] | 2,453 | 2,665 |
Commercial [Member] | Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 5,962 | 4,047 | |
Commercial [Member] | Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 8,174 | 1,599 | |
Commercial [Member] | Real Estate [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 6,673 | 8,514 | |
Commercial [Member] | Equipment Lease Financing [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 430 | |
Current | 1,986 | 2,612 | |
Total Loans | 1,986 | 3,042 | |
90+ and Accruing | [1] | 0 | 0 |
Commercial [Member] | Equipment Lease Financing [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 430 | |
Commercial [Member] | Equipment Lease Financing [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | Equipment Lease Financing [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial [Member] | Other [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 443 | 934 | |
Total Past Due | 1,630 | 1,564 | |
Current | 345,015 | 349,470 | |
Total Loans | 346,645 | 351,034 | |
90+ and Accruing | [1] | 90 | 87 |
Commercial [Member] | Other [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 549 | 835 | |
Commercial [Member] | Other [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 794 | 77 | |
Commercial [Member] | Other [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 287 | 652 | |
Residential [Member] | Construction [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 22 | 318 | |
Total Past Due | 671 | 649 | |
Current | 61,111 | 66,709 | |
Total Loans | 61,782 | 67,358 | |
90+ and Accruing | [1] | 11 | 223 |
Residential [Member] | Construction [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 420 | 224 | |
Residential [Member] | Construction [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 218 | 202 | |
Residential [Member] | Construction [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 33 | 223 | |
Residential [Member] | Real Estate [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 6,401 | 8,243 | |
Total Past Due | 14,888 | 18,698 | |
Current | 707,134 | 690,872 | |
Total Loans | 722,022 | 709,570 | |
90+ and Accruing | [1] | 4,413 | 6,293 |
Residential [Member] | Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 939 | 2,064 | |
Residential [Member] | Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 4,658 | 5,029 | |
Residential [Member] | Real Estate [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 9,291 | 11,605 | |
Residential [Member] | Home Equity [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Nonaccrual loans segregated by class of loans | 486 | 389 | |
Total Past Due | 1,803 | 1,201 | |
Current | 102,002 | 98,155 | |
Total Loans | 103,805 | 99,356 | |
90+ and Accruing | [1] | 310 | 167 |
Residential [Member] | Home Equity [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 917 | 595 | |
Residential [Member] | Home Equity [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 293 | 178 | |
Residential [Member] | Home Equity [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 593 | 428 | |
Consumer [Member] | Consumer Direct [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 1,219 | 1,193 | |
Current | 144,783 | 136,561 | |
Total Loans | 146,002 | 137,754 | |
90+ and Accruing | [1] | 36 | 62 |
Consumer [Member] | Consumer Direct [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 828 | 983 | |
Consumer [Member] | Consumer Direct [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 355 | 148 | |
Consumer [Member] | Consumer Direct [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 36 | 62 | |
Consumer [Member] | Consumer Indirect [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 5,891 | 6,132 | |
Current | 524,651 | 483,535 | |
Total Loans | 530,542 | 489,667 | |
90+ and Accruing | [1] | 645 | 648 |
Consumer [Member] | Consumer Indirect [Member] | 30-59 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 4,405 | 4,085 | |
Consumer [Member] | Consumer Indirect [Member] | 60-89 Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | 841 | 1,399 | |
Consumer [Member] | Consumer Indirect [Member] | 90+ Days Past Due [Member] | |||
Bank's Loan portfolio aging analysis, segregated by class [Abstract] | |||
Total Past Due | $ 645 | $ 648 | |
[1] | 90+ and Accruing are also included in 90+ Days Past Due column. |
Loans, Credit Risk Profile Base
Loans, Credit Risk Profile Based on Rating Category and Payment Activity and on Performing and Nonperforming Status, Segregated by Class (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | ||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 3,177,888 | $ 3,122,940 | |
Consumer mortgage loans secured by real estate properties for which formal foreclosure proceedings are in process | 4,400 | 3,700 | |
Commercial [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,613,735 | 1,619,235 | |
Commercial [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 1,400,940 | 1,430,207 | |
Commercial [Member] | Pass [Member] | Minimum [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Review period for loans | 12 months | ||
Commercial [Member] | Pass [Member] | Maximum [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Review period for loans | 18 months | ||
Commercial [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | $ 107,822 | 97,513 | |
Commercial [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 26,435 | 26,948 | |
Commercial [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 78,347 | 63,998 | |
Commercial [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 191 | 569 | |
Commercial [Member] | Construction [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 81,472 | 76,479 | |
Commercial [Member] | Construction [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 74,592 | 67,846 | |
Commercial [Member] | Construction [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 3,133 | 3,323 | |
Commercial [Member] | Construction [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,626 | 1,304 | |
Commercial [Member] | Construction [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 2,121 | 3,828 | |
Commercial [Member] | Construction [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 178 | |
Commercial [Member] | Real Estate [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,183,632 | 1,188,680 | |
Commercial [Member] | Real Estate [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,029,800 | 1,053,701 | |
Commercial [Member] | Real Estate [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 74,669 | 65,182 | |
Commercial [Member] | Real Estate [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 17,906 | 22,401 | |
Commercial [Member] | Real Estate [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 61,146 | 47,223 | |
Commercial [Member] | Real Estate [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 111 | 173 | |
Commercial [Member] | Equipment Leases [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,986 | 3,042 | |
Commercial [Member] | Equipment Leases [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,986 | 3,005 | |
Commercial [Member] | Equipment Leases [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Equipment Leases [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 37 | |
Commercial [Member] | Equipment Leases [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Equipment Leases [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 0 | 0 | |
Commercial [Member] | Other [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 346,645 | 351,034 | |
Commercial [Member] | Other [Member] | Pass [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 294,562 | 305,655 | |
Commercial [Member] | Other [Member] | Watch [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 30,020 | 29,008 | |
Commercial [Member] | Other [Member] | OAEM [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 6,903 | 3,206 | |
Commercial [Member] | Other [Member] | Substandard [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 15,080 | 12,947 | |
Commercial [Member] | Other [Member] | Doubtful [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 80 | 218 | |
Residential [Member] | Construction [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 61,782 | 67,358 | |
Residential [Member] | Construction [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 61,749 | 66,817 | |
Residential [Member] | Construction [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 33 | 541 |
Residential [Member] | Real Estate [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 722,022 | 709,570 | |
Residential [Member] | Real Estate [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 711,208 | 695,034 | |
Residential [Member] | Real Estate [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 10,814 | 14,536 |
Residential [Member] | Home Equity [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 103,805 | 99,356 | |
Residential [Member] | Home Equity [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 103,009 | 98,800 | |
Residential [Member] | Home Equity [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 796 | 556 |
Consumer [Member] | Consumer Direct [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 146,002 | 137,754 | |
Consumer [Member] | Consumer Direct [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 145,966 | 137,692 | |
Consumer [Member] | Consumer Direct [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 36 | 62 |
Consumer [Member] | Consumer Indirect [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 530,542 | 489,667 | |
Consumer [Member] | Consumer Indirect [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 529,897 | 489,019 | |
Consumer [Member] | Consumer Indirect [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | 645 | 648 |
Residential and Consumer Portfolio Segments [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,564,153 | 1,503,705 | |
Residential and Consumer Portfolio Segments [Member] | Performing [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | 1,551,829 | 1,487,362 | |
Residential and Consumer Portfolio Segments [Member] | Nonperforming [Member] | |||
Credit Risk Profile, Segregated by Class [Abstract] | |||
Loan portfolio based on credit risk profile | [1] | $ 12,324 | $ 16,343 |
[1] | A loan is considered nonperforming if it is 90 days or more past due and/or on nonaccrual. |
Loans, Impaired Loans, Average
Loans, Impaired Loans, Average Investments in Impaired Loans, and Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | $ 736 | $ 1,391 | $ 736 | $ 1,391 | $ 991 | |
Total impaired loans [Abstract] | ||||||
Recorded balance | 46,883 | 46,199 | 46,883 | 46,199 | 47,412 | |
Unpaid Contractual Principal Balance | 51,693 | 49,740 | 51,693 | 49,740 | 52,212 | |
Specific Allowance | 736 | 1,391 | 736 | 1,391 | 991 | |
Average Investment in Impaired Loans | 45,825 | 46,629 | 47,274 | 49,684 | 49,343 | |
Interest Income Recognized | [1] | 521 | 460 | 1,647 | 1,550 | 2,127 |
Commercial [Member] | Construction [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 2,804 | 4,613 | 2,804 | 4,613 | 4,431 | |
Unpaid Contractual Principal Balance | 2,804 | 4,621 | 2,804 | 4,621 | 4,439 | |
Average Investment in Impaired Loans | 2,865 | 4,662 | 3,795 | 4,955 | 4,835 | |
Interest Income Recognized | [1] | 26 | 50 | 132 | 136 | 200 |
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 153 | 153 | 153 | |||
Unpaid Contractual Principal Balance | 174 | 174 | 173 | |||
Specific Allowance | 0 | 25 | 0 | 25 | 25 | |
Average Investment in Impaired Loans | 153 | 156 | 155 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Total impaired loans [Abstract] | ||||||
Recorded balance | 2,804 | 4,766 | 2,804 | 4,766 | 4,584 | |
Unpaid Contractual Principal Balance | 2,804 | 4,795 | 2,804 | 4,795 | 4,612 | |
Specific Allowance | 0 | 25 | 0 | 25 | 25 | |
Average Investment in Impaired Loans | 2,865 | 4,815 | 3,795 | 5,111 | 4,990 | |
Interest Income Recognized | [1] | 26 | 50 | 132 | 136 | 200 |
Commercial [Member] | Real Estate [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 31,632 | 25,322 | 31,632 | 25,322 | 28,480 | |
Unpaid Contractual Principal Balance | 33,538 | 25,916 | 33,538 | 25,916 | 30,365 | |
Average Investment in Impaired Loans | 30,216 | 25,452 | 30,588 | 27,318 | 27,753 | |
Interest Income Recognized | [1] | 349 | 276 | 1,073 | 980 | 1,344 |
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 1,980 | 3,918 | 1,980 | 3,918 | 2,985 | |
Unpaid Contractual Principal Balance | 3,116 | 5,023 | 3,116 | 5,023 | 4,095 | |
Specific Allowance | 641 | 1,301 | 641 | 1,301 | 966 | |
Average Investment in Impaired Loans | 2,005 | 3,984 | 2,112 | 4,236 | 3,932 | |
Interest Income Recognized | [1] | 0 | 3 | 1 | 8 | 8 |
Total impaired loans [Abstract] | ||||||
Recorded balance | 33,612 | 29,240 | 33,612 | 29,240 | 31,465 | |
Unpaid Contractual Principal Balance | 36,654 | 30,939 | 36,654 | 30,939 | 34,460 | |
Specific Allowance | 641 | 1,301 | 641 | 1,301 | 966 | |
Average Investment in Impaired Loans | 32,221 | 29,436 | 32,700 | 31,554 | 31,685 | |
Interest Income Recognized | [1] | 349 | 279 | 1,074 | 988 | 1,352 |
Commercial [Member] | Equipment Lease Financing [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 0 | |||||
Unpaid Contractual Principal Balance | 0 | |||||
Average Investment in Impaired Loans | 0 | 45 | 34 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | |||||
Total impaired loans [Abstract] | ||||||
Recorded balance | 0 | |||||
Unpaid Contractual Principal Balance | 0 | |||||
Specific Allowance | 0 | |||||
Average Investment in Impaired Loans | 0 | 45 | 34 | |||
Interest Income Recognized | [1] | 0 | 0 | 0 | ||
Commercial [Member] | Other [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 8,268 | 9,994 | 8,268 | 9,994 | 9,481 | |
Unpaid Contractual Principal Balance | 10,034 | 11,804 | 10,034 | 11,804 | 11,252 | |
Average Investment in Impaired Loans | 8,518 | 10,191 | 8,857 | 10,717 | 10,444 | |
Interest Income Recognized | [1] | 125 | 123 | 405 | 396 | 539 |
Loans with a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 321 | 130 | 321 | 130 | 0 | |
Unpaid Contractual Principal Balance | 321 | 133 | 321 | 133 | 0 | |
Specific Allowance | 95 | 65 | 95 | 65 | 0 | |
Average Investment in Impaired Loans | 339 | 130 | 220 | 87 | 65 | |
Interest Income Recognized | [1] | 8 | 0 | 12 | 0 | 0 |
Total impaired loans [Abstract] | ||||||
Recorded balance | 8,589 | 10,124 | 8,589 | 10,124 | 9,481 | |
Unpaid Contractual Principal Balance | 10,355 | 11,937 | 10,355 | 11,937 | 11,252 | |
Specific Allowance | 95 | 65 | 95 | 65 | 0 | |
Average Investment in Impaired Loans | 8,857 | 10,321 | 9,077 | 10,804 | 10,509 | |
Interest Income Recognized | [1] | 133 | 123 | 417 | 396 | 539 |
Residential [Member] | Construction [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 873 | 873 | 318 | |||
Unpaid Contractual Principal Balance | 873 | 873 | 318 | |||
Average Investment in Impaired Loans | 0 | 860 | 106 | 569 | 534 | |
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 | 0 |
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | 0 | 0 | |||
Total impaired loans [Abstract] | ||||||
Recorded balance | 873 | 873 | 318 | |||
Unpaid Contractual Principal Balance | 873 | 873 | 318 | |||
Specific Allowance | 0 | 0 | 0 | |||
Average Investment in Impaired Loans | 0 | 860 | 106 | 569 | 534 | |
Interest Income Recognized | [1] | 0 | 0 | 0 | 0 | 0 |
Residential [Member] | Real Estate [Member] | ||||||
Loans without a specific valuation allowance [Abstract] | ||||||
Recorded Balance | 1,878 | 1,196 | 1,878 | 1,196 | 1,564 | |
Unpaid Contractual Principal Balance | 1,880 | 1,196 | 1,880 | 1,196 | 1,570 | |
Average Investment in Impaired Loans | 1,882 | 1,197 | 1,596 | 1,601 | 1,591 | |
Interest Income Recognized | [1] | 13 | 8 | 24 | 30 | 36 |
Loans with a specific valuation allowance [Abstract] | ||||||
Specific Allowance | 0 | 0 | 0 | 0 | 0 | |
Total impaired loans [Abstract] | ||||||
Recorded balance | 1,878 | 1,196 | 1,878 | 1,196 | 1,564 | |
Unpaid Contractual Principal Balance | 1,880 | 1,196 | 1,880 | 1,196 | 1,570 | |
Specific Allowance | 0 | 0 | 0 | 0 | 0 | |
Average Investment in Impaired Loans | 1,882 | 1,197 | 1,596 | 1,601 | 1,591 | |
Interest Income Recognized | [1] | $ 13 | $ 8 | $ 24 | $ 30 | $ 36 |
[1] | Cash basis interest is substantially the same as interest income recognized. |
Loans, Troubled Debt Restructur
Loans, Troubled Debt Restructurings Segregated by Class (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018USD ($)Loan | Sep. 30, 2017USD ($)Loan | Sep. 30, 2018USD ($)Loan | Sep. 30, 2017USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 7 | 7 | 36 | 25 | 43 |
Post-Modification Outstanding Balance | $ 2,692 | $ 397 | $ 7,157 | $ 2,722 | $ 5,547 |
Commitment to extend additional credit on loans modified in TDRs | $ 42 | $ 42 | |||
Defaulted restructured loans, number of loans | Loan | 3 | 3 | 5 | 3 | |
Defaulted restructured loans, recorded balance | $ 153 | $ 1,807 | $ 195 | $ 1,807 | |
Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 2,292 | 397 | 5,759 | 2,280 | 5,105 |
Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | 0 | 0 | 0 |
Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 400 | $ 0 | $ 1,398 | $ 442 | $ 442 |
Commercial [Member] | Construction [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 4 | 2 | 2 | ||
Post-Modification Outstanding Balance | $ 458 | $ 114 | $ 114 | ||
Defaulted restructured loans, number of loans | Loan | 2 | 0 | 2 | 0 | |
Defaulted restructured loans, recorded balance | $ 147 | $ 0 | $ 147 | $ 0 | |
Commercial [Member] | Construction [Member] | Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 443 | 0 | 0 | ||
Commercial [Member] | Construction [Member] | Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | 0 | ||
Commercial [Member] | Construction [Member] | Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 15 | $ 114 | $ 114 | ||
Commercial [Member] | Real Estate [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 6 | 6 | 23 | 11 | 15 |
Post-Modification Outstanding Balance | $ 2,428 | $ 295 | $ 5,970 | $ 1,066 | $ 2,391 |
Defaulted restructured loans, number of loans | Loan | 0 | 2 | 1 | 2 | |
Defaulted restructured loans, recorded balance | $ 0 | $ 961 | $ 17 | $ 961 | |
Commercial [Member] | Real Estate [Member] | Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 2,028 | 295 | 4,587 | 874 | 2,199 |
Commercial [Member] | Real Estate [Member] | Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | 0 | 0 | 0 |
Commercial [Member] | Real Estate [Member] | Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 400 | $ 0 | $ 1,383 | $ 192 | $ 192 |
Commercial [Member] | Other [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 1 | 8 | 10 | 22 | |
Post-Modification Outstanding Balance | $ 102 | $ 465 | $ 373 | $ 1,208 | |
Defaulted restructured loans, number of loans | Loan | 1 | 0 | 2 | 0 | |
Defaulted restructured loans, recorded balance | $ 6 | $ 0 | $ 31 | $ 0 | |
Commercial [Member] | Other [Member] | Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 102 | 465 | 237 | 1,072 | |
Commercial [Member] | Other [Member] | Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | 0 | 0 | |
Commercial [Member] | Other [Member] | Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 0 | $ 0 | $ 136 | $ 136 | |
Residential [Member] | Construction [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 1 | 1 | |||
Post-Modification Outstanding Balance | $ 846 | $ 846 | |||
Residential [Member] | Construction [Member] | Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 846 | 846 | |||
Residential [Member] | Construction [Member] | Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | |||
Residential [Member] | Construction [Member] | Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 0 | $ 0 | |||
Residential [Member] | Real Estate [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Number of Loans | Loan | 1 | 1 | 1 | 3 | |
Post-Modification Outstanding Balance | $ 264 | $ 264 | $ 323 | $ 988 | |
Defaulted restructured loans, number of loans | Loan | 0 | 1 | 0 | 1 | |
Defaulted restructured loans, recorded balance | $ 0 | $ 846 | $ 0 | $ 846 | |
Residential [Member] | Real Estate [Member] | Term Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 264 | 264 | 323 | 988 | |
Residential [Member] | Real Estate [Member] | Rate Modification [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | 0 | 0 | 0 | 0 | |
Residential [Member] | Real Estate [Member] | Combination [Member] | |||||
Troubled Debt Restructurings Segregated by Class [Abstract] | |||||
Post-Modification Outstanding Balance | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | $ 35,771 | $ 37,133 | $ 36,151 | $ 35,933 | $ 35,933 |
Provision charged to expense | 1,543 | 666 | 4,418 | 4,659 | 7,521 |
Losses charged off | (2,828) | (2,443) | (8,331) | (7,123) | (11,085) |
Recoveries | 1,305 | 1,035 | 3,553 | 2,922 | 3,782 |
Ending balance | 35,791 | 36,391 | 35,791 | 36,391 | 36,151 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 736 | 1,391 | 736 | 1,391 | 991 |
Collectively evaluated for impairment | 35,055 | 35,000 | 35,055 | 35,000 | 35,160 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 46,883 | 46,199 | 46,883 | 46,199 | 47,412 |
Collectively evaluated for impairment | 3,131,005 | 3,067,222 | 3,131,005 | 3,067,222 | 3,075,528 |
Commercial [Member] | Construction [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 740 | 669 | 686 | 884 | 884 |
Provision charged to expense | 54 | (19) | 91 | (239) | (237) |
Losses charged off | 0 | (6) | 0 | (10) | (10) |
Recoveries | 23 | 28 | 40 | 37 | 49 |
Ending balance | 817 | 672 | 817 | 672 | 686 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 25 | 0 | 25 | 25 |
Collectively evaluated for impairment | 817 | 647 | 817 | 647 | 661 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 2,804 | 4,766 | 2,804 | 4,766 | 4,584 |
Collectively evaluated for impairment | 78,668 | 69,516 | 78,668 | 69,516 | 71,895 |
Commercial [Member] | Real Estate [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 14,658 | 15,299 | 14,509 | 14,191 | 14,191 |
Provision charged to expense | 298 | (1) | 895 | 1,622 | 2,281 |
Losses charged off | (460) | (249) | (937) | (776) | (2,038) |
Recoveries | 142 | 53 | 171 | 65 | 75 |
Ending balance | 14,638 | 15,102 | 14,638 | 15,102 | 14,509 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 641 | 1,301 | 641 | 1,301 | 966 |
Collectively evaluated for impairment | 13,997 | 13,801 | 13,997 | 13,801 | 13,543 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 33,612 | 29,240 | 33,612 | 29,240 | 31,465 |
Collectively evaluated for impairment | 1,150,020 | 1,168,364 | 1,150,020 | 1,168,364 | 1,157,215 |
Commercial [Member] | Equipment Lease Financing [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 17 | 33 | 18 | 42 | 42 |
Provision charged to expense | (2) | (14) | (3) | (23) | (24) |
Losses charged off | 0 | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 | 0 |
Ending balance | 15 | 19 | 15 | 19 | 18 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 15 | 19 | 15 | 19 | 18 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,986 | 3,290 | 1,986 | 3,290 | 3,042 |
Commercial [Member] | Other [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 4,637 | 4,993 | 5,039 | 4,656 | 4,656 |
Provision charged to expense | 82 | 210 | 98 | 1,229 | 1,744 |
Losses charged off | (521) | (549) | (1,078) | (1,386) | (1,893) |
Recoveries | 407 | 308 | 546 | 463 | 532 |
Ending balance | 4,605 | 4,962 | 4,605 | 4,962 | 5,039 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 95 | 65 | 95 | 65 | 0 |
Collectively evaluated for impairment | 4,510 | 4,897 | 4,510 | 4,897 | 5,039 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 8,589 | 10,124 | 8,589 | 10,124 | 9,481 |
Collectively evaluated for impairment | 338,056 | 329,213 | 338,056 | 329,213 | 341,553 |
Residential [Member] | Construction [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 618 | 581 | 660 | 629 | 629 |
Provision charged to expense | (44) | 49 | (58) | 0 | 31 |
Losses charged off | 0 | 0 | (28) | 0 | 0 |
Recoveries | 0 | 0 | 0 | 1 | 0 |
Ending balance | 574 | 630 | 574 | 630 | 660 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 574 | 630 | 574 | 630 | 660 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 873 | 0 | 873 | 318 |
Collectively evaluated for impairment | 61,782 | 63,568 | 61,782 | 63,568 | 67,040 |
Residential [Member] | Real Estate [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 5,234 | 5,662 | 5,688 | 6,027 | 6,027 |
Provision charged to expense | (566) | 276 | (625) | 1 | 189 |
Losses charged off | (136) | (158) | (550) | (321) | (615) |
Recoveries | 7 | 6 | 26 | 79 | 87 |
Ending balance | 4,539 | 5,786 | 4,539 | 5,786 | 5,688 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 4,539 | 5,786 | 4,539 | 5,786 | 5,688 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 1,878 | 1,196 | 1,878 | 1,196 | 1,564 |
Collectively evaluated for impairment | 720,144 | 711,041 | 720,144 | 711,041 | 708,006 |
Residential [Member] | Home Equity [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 866 | 747 | 857 | 774 | 774 |
Provision charged to expense | (9) | 113 | 18 | 87 | 257 |
Losses charged off | (19) | (53) | (38) | (57) | (178) |
Recoveries | 4 | 0 | 5 | 3 | 4 |
Ending balance | 842 | 807 | 842 | 807 | 857 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 842 | 807 | 842 | 807 | 857 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 103,805 | 96,755 | 103,805 | 96,755 | 99,356 |
Consumer [Member] | Consumer Direct [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 1,910 | 1,866 | 1,863 | 1,885 | 1,885 |
Provision charged to expense | 59 | 47 | 402 | 243 | 418 |
Losses charged off | (196) | (166) | (687) | (675) | (965) |
Recoveries | 133 | 110 | 328 | 404 | 525 |
Ending balance | 1,906 | 1,857 | 1,906 | 1,857 | 1,863 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,906 | 1,857 | 1,906 | 1,857 | 1,863 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 146,002 | 137,657 | 146,002 | 137,657 | 137,754 |
Consumer [Member] | Consumer Indirect [Member] | |||||
Allowance for loan losses [Roll Forward] | |||||
Beginning balance | 7,091 | 7,283 | 6,831 | 6,845 | 6,845 |
Provision charged to expense | 1,671 | 5 | 3,600 | 1,739 | 2,862 |
Losses charged off | (1,496) | (1,262) | (5,013) | (3,898) | (5,386) |
Recoveries | 589 | 530 | 2,437 | 1,870 | 2,510 |
Ending balance | 7,855 | 6,556 | 7,855 | 6,556 | 6,831 |
Ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 7,855 | 6,556 | 7,855 | 6,556 | 6,831 |
Loans ending balance [Abstract] | |||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 530,542 | $ 487,818 | $ 530,542 | $ 487,818 | $ 489,667 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Activity for other real estate owned [Roll Forward] | ||||
Beginning balance of other real estate owned | $ 30,262 | $ 32,785 | $ 31,996 | $ 35,856 |
New assets acquired | 849 | 2,722 | 3,692 | 4,303 |
Capitalized costs | 0 | 0 | 0 | 0 |
Fair value adjustments | (670) | (884) | (1,990) | (2,871) |
Sale of assets | (775) | (2,575) | (4,032) | (5,240) |
Ending balance of other real estate owned | 29,666 | 32,048 | 29,666 | 32,048 |
Carrying cost and fair value adjustments for foreclosed properties | $ 1,100 | $ 1,300 | $ 3,300 | $ 4,100 |
Other Real Estate Owned, Major
Other Real Estate Owned, Major Classifications of Foreclosed Properties (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 29,666 | $ 31,996 |
1-4 Family [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 5,475 | 5,908 |
Agricultural/Farmland [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 0 | 68 |
Construction/Land Development/Other [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 15,230 | 16,158 |
Multifamily [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | 88 | 176 |
Non-farm/Non-residential [Member] | ||
Major Classifications of Foreclosed Properties [Abstract] | ||
Total foreclosed properties | $ 8,873 | $ 9,686 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - Securities Sold under Agreements to Repurchase [Member] - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | $ 250,983 | $ 243,814 |
Asset Pledged as Collateral [Member] | ||
Financial Instruments Pledged as Collateral [Abstract] | ||
Carrying value of investment securities available-for-sale pledged as collateral under repurchase agreements | 289,500 | 295,400 |
Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 117,569 | 100,937 |
Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 72,000 | 0 |
30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 22,000 |
Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 61,414 | 120,877 |
U.S. Treasury and Government Agencies [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 118,648 | 109,595 |
U.S. Treasury and Government Agencies [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 42,375 | 24,957 |
U.S. Treasury and Government Agencies [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 41,540 | 0 |
U.S. Treasury and Government Agencies [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 16,771 |
U.S. Treasury and Government Agencies [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 34,733 | 67,867 |
State and Political Subdivisions [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 75,087 | 75,348 |
State and Political Subdivisions [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 61,820 | 62,620 |
State and Political Subdivisions [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 5,961 | 0 |
State and Political Subdivisions [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 567 |
State and Political Subdivisions [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 7,306 | 12,161 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 57,248 | 58,871 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Overnight and Continuous [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 13,374 | 13,360 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Up to 30 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 24,499 | 0 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | 30-90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | 0 | 4,662 |
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | Greater Than 90 Days [Member] | ||
Remaining contractual maturity of securities sold under agreements to repurchase by class of collateral pledged [Abstract] | ||
Repurchase agreements and repurchase-to-maturity transactions | $ 19,375 | $ 40,849 |
Fair Market Value of Financia_3
Fair Market Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | $ 569,208 | $ 561,403 | $ 569,208 | $ 561,403 | ||
Assets measured-nonrecurring basis [Abstract] | ||||||
Impaired loans (collateral dependent) | 556 | 2,709 | 556 | 2,709 | ||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||||||
Total gains (losses) | (75) | $ (119) | $ 2 | $ (419) | ||
Minimum [Member] | ||||||
Other real estate owned [Abstract] | ||||||
Typical frequency of periodic reviews | 12 months | |||||
Maximum [Member] | ||||||
Other real estate owned [Abstract] | ||||||
Typical frequency of periodic reviews | 18 months | |||||
Frequency of periodic reviews in general | 24 months | |||||
U.S. Treasury and Government Agencies [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 242,799 | 210,572 | $ 242,799 | 210,572 | ||
State and Political Subdivisions [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 123,992 | 145,015 | 123,992 | 145,015 | ||
U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 201,911 | 205,309 | 201,911 | 205,309 | ||
Other Debt Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 506 | 507 | 506 | 507 | ||
Recurring [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Mortgage servicing rights | 3,815 | 3,484 | 3,815 | 3,484 | ||
Recurring [Member] | U.S. Treasury and Government Agencies [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 242,799 | 210,572 | 242,799 | 210,572 | ||
Recurring [Member] | State and Political Subdivisions [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 123,992 | 145,015 | 123,992 | 145,015 | ||
Recurring [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 201,911 | 205,309 | 201,911 | 205,309 | ||
Recurring [Member] | Other Debt Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 506 | 507 | 506 | 507 | ||
Recurring [Member] | CRA Investments Funds [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available for sale securities, equity securities | 24,358 | 24,358 | ||||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury and Government Agencies [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 91,465 | 64,598 | 91,465 | 64,598 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | State and Political Subdivisions [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Debt Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | CRA Investments Funds [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available for sale securities, equity securities | 24,358 | 24,358 | ||||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Mortgage servicing rights | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury and Government Agencies [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 151,334 | 145,974 | 151,334 | 145,974 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | State and Political Subdivisions [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 123,992 | 145,015 | 123,992 | 145,015 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 201,911 | 205,309 | 201,911 | 205,309 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other Debt Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 506 | 507 | 506 | 507 | ||
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | CRA Investments Funds [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available for sale securities, equity securities | 0 | 0 | ||||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Mortgage servicing rights | 3,815 | 3,484 | 3,815 | 3,484 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Treasury and Government Agencies [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | State and Political Subdivisions [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | U.S. Government Sponsored Agency Mortgage-backed Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other Debt Securities [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available-for-sale securities, debt securities | 0 | 0 | 0 | 0 | ||
Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | CRA Investments Funds [Member] | ||||||
Assets Measured at Fair Value on Recurring Basis [Abstract] | ||||||
Available for sale securities, equity securities | 0 | 0 | ||||
Recurring [Member] | Mortgage Servicing Rights [Member] | ||||||
Reconciliation of beginning and ending balances of recurring fair value measurements recognized in balance sheet using significant unobservable (Level 3) inputs [Roll Forward] | ||||||
Beginning balance | 3,772 | 3,283 | 3,304 | 3,484 | 3,433 | 3,433 |
Total recognized gains (losses) Included in net income | 45 | 5 | 341 | (73) | ||
Issues | 118 | 98 | 329 | 269 | ||
Settlements | (120) | (124) | (339) | (346) | ||
Ending balance | 3,815 | 3,484 | 3,283 | 3,815 | 3,283 | 3,484 |
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date | 45 | 5 | 341 | (73) | ||
Nonrecurring [Member] | ||||||
Impaired loan (collateral dependent) [Abstract] | ||||||
Impaired loans, fair value adjustments | 100 | 300 | 300 | 200 | 700 | 1,000 |
Other real estate owned [Abstract] | ||||||
Other real estate owned, fair value adjustment | 800 | 200 | $ 900 | 1,800 | $ 2,600 | 2,500 |
Nonrecurring [Member] | Fair Value [Member] | ||||||
Assets measured-nonrecurring basis [Abstract] | ||||||
Impaired loans (collateral dependent) | 556 | 2,709 | 556 | 2,709 | ||
Other real estate owned | 7,640 | 18,951 | 7,640 | 18,951 | ||
Nonrecurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||||||
Assets measured-nonrecurring basis [Abstract] | ||||||
Impaired loans (collateral dependent) | 0 | 0 | 0 | 0 | ||
Other real estate owned | 0 | 0 | 0 | 0 | ||
Nonrecurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||||||
Assets measured-nonrecurring basis [Abstract] | ||||||
Impaired loans (collateral dependent) | 0 | 0 | 0 | 0 | ||
Other real estate owned | 0 | 0 | 0 | 0 | ||
Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||||||
Assets measured-nonrecurring basis [Abstract] | ||||||
Impaired loans (collateral dependent) | 556 | 2,709 | 556 | 2,709 | ||
Other real estate owned | $ 7,640 | $ 18,951 | $ 7,640 | $ 18,951 |
Fair Market Value of Financia_4
Fair Market Value of Financial Assets and Liabilities, Quantitative Information about Level 3 Fair Value Measurements (Details) $ in Thousands | Sep. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights | $ 3,815 | $ 3,484 |
Impaired loans (collateral dependent) | 556 | 2,709 |
Other real estate owned | $ 7,640 | $ 18,951 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.070 | 0.070 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.280 | 0.450 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Constant Prepayment Rate [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.083 | 0.100 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 1 | 1 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Probability of Default [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.025 | 0.030 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.100 | 0.100 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.115 | 0.115 |
Significant Unobservable Inputs (Level 3) [Member] | Valuation, Income Approach [Member] | Discount Rate [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Mortgage servicing rights, measurement input | 0.101 | 0.101 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.100 | 0.019 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 1 | 0.898 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Marketability Discount [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Impaired loans (collateral dependent), measurement input | 0.441 | 0.385 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Minimum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.060 | 0.060 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Maximum [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.320 | 0.586 |
Significant Unobservable Inputs (Level 3) [Member] | Market Comparable Properties [Member] | Comparability Adjustment [Member] | Weighted Average [Member] | ||
Quantitative Information about Unobservable Inputs Used in Level 3 Fair Value Measurements [Abstract] | ||
Other real estate owned, measurement input | 0.157 | 0.150 |
Fair Market Value of Financia_5
Fair Market Value of Financial Assets and Liabilities, Estimated Fair Value of Financial Instruments and Indication of Level Within Fair Value Hierarchy of Valuation Techniques (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Financial assets [Abstract] | ||
Securities available-for-sale | $ 569,208 | $ 585,761 |
Securities held-to-maturity | 660 | 660 |
Mortgage servicing rights | 3,815 | 3,484 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 171,333 | 175,274 |
Certificates of deposits in other banks | 5,145 | 9,800 |
Securities available-for-sale | 569,208 | 585,761 |
Securities held-to-maturity | 659 | 659 |
Loans held for sale | 1,029 | 1,033 |
Loans, net | 3,142,097 | 3,086,789 |
Federal Home Loan Bank stock | 14,713 | 17,927 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Accrued interest receivable | 14,628 | 13,338 |
Mortgage servicing rights | 3,815 | 3,484 |
Financial liabilities [Abstract] | ||
Deposits | 3,273,646 | 3,263,863 |
Repurchase agreements | 250,983 | 243,814 |
Federal funds purchased | 1,305 | 7,312 |
Advances from Federal Home Loan Bank | 787 | 845 |
Long-term debt | 59,341 | 59,341 |
Accrued interest payable | 4,381 | 2,228 |
Unrecognized financial instruments [Abstract] | ||
Letters of credit | 0 | 0 |
Commitments to extend credit | 0 | 0 |
Forward sale commitments | 0 | 0 |
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 171,333 | 175,274 |
Certificates of deposits in other banks | 0 | 0 |
Securities available-for-sale | 91,465 | 88,956 |
Securities held-to-maturity | 0 | 0 |
Loans held for sale | 1,050 | 1,060 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Federal Reserve Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 826,804 | 790,930 |
Repurchase agreements | 0 | 0 |
Federal funds purchased | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Long-term debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Unrecognized financial instruments [Abstract] | ||
Letters of credit | 0 | 0 |
Commitments to extend credit | 0 | 0 |
Forward sale commitments | 0 | 0 |
Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposits in other banks | 5,134 | 9,772 |
Securities available-for-sale | 477,743 | 496,805 |
Securities held-to-maturity | 660 | 660 |
Loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Federal Home Loan Bank stock | 14,713 | 17,927 |
Federal Reserve Bank stock | 4,887 | 4,887 |
Accrued interest receivable | 14,628 | 13,338 |
Mortgage servicing rights | 0 | 0 |
Financial liabilities [Abstract] | ||
Deposits | 2,460,736 | 2,319,278 |
Repurchase agreements | 0 | 0 |
Federal funds purchased | 1,305 | 7,312 |
Advances from Federal Home Loan Bank | 845 | 841 |
Long-term debt | 0 | 0 |
Accrued interest payable | 4,381 | 2,228 |
Unrecognized financial instruments [Abstract] | ||
Letters of credit | 0 | 0 |
Commitments to extend credit | 0 | 0 |
Forward sale commitments | 0 | 0 |
Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposits in other banks | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net | 3,137,941 | 3,092,437 |
Federal Home Loan Bank stock | 0 | 0 |
Federal Reserve Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mortgage servicing rights | 3,815 | 3,484 |
Financial liabilities [Abstract] | ||
Deposits | 0 | 0 |
Repurchase agreements | 251,261 | 243,932 |
Federal funds purchased | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Long-term debt | 44,166 | 44,166 |
Accrued interest payable | 0 | 0 |
Unrecognized financial instruments [Abstract] | ||
Letters of credit | 0 | 0 |
Commitments to extend credit | 0 | 0 |
Forward sale commitments | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator [Abstract] | ||||
Net income | $ 16,106 | $ 13,763 | $ 43,519 | $ 36,581 |
Basic earnings per share [Abstract] | ||||
Weighted average shares (in shares) | 17,691,000 | 17,633,000 | 17,683,000 | 17,625,000 |
Diluted earnings per share [Abstract] | ||||
Effect of dilutive stock options and restricted stock grants (in shares) | 19,000 | 20,000 | 17,000 | 20,000 |
Adjusted weighted average shares (in shares) | 17,710,000 | 17,653,000 | 17,700,000 | 17,645,000 |
Earnings per share [Abstract] | ||||
Basic earnings per share (in dollars per share) | $ 0.91 | $ 0.78 | $ 2.46 | $ 2.08 |
Diluted earnings per share (in dollars per share) | $ 0.91 | $ 0.78 | $ 2.46 | $ 2.07 |
Options [Member] | ||||
Earnings Per Share [Abstract] | ||||
Options excluded from diluted calculations (in shares) | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amounts Reclassified from AOCI [Abstract] | ||||
Securities gains | $ (2) | $ 48 | $ (288) | $ 58 |
Tax expense | 3,044 | 5,811 | 8,425 | 15,010 |
Net income | 16,106 | 13,763 | 43,519 | 36,581 |
Unrealized Gains on AFS Securities [Member] | Reclassification Out of Accumulated Other Comprehensive Income [Member] | ||||
Amounts Reclassified from AOCI [Abstract] | ||||
Securities gains | (2) | 48 | 149 | 58 |
Tax expense | 0 | 17 | 32 | 20 |
Net income | $ (2) | $ 31 | $ 117 | $ 38 |