| Loans | Note 4 – Loans Major classifications of loans, net of unearned income, deferred loan origination costs and fees, and net premiums on acquired loans, are summarized
as follows:
(in thousands)
March 31 2024
December 31 2023
Hotel/motel
$
416,759
$
395,765
Commercial real estate residential
456,585
417,943
Commercial real estate nonresidential
813,904
778,637
Dealer floorplans
77,221
70,308
Commercial other
320,701
321,082
Commercial loans
2,085,170
1,983,735
Real estate mortgage
955,616
937,524
Home equity lines
151,577
147,036
Residential loans
1,107,193
1,084,560
Consumer direct
155,807
159,106
Consumer indirect
813,005
823,505
Consumer loans
968,812
982,611
Loans and lease financing
$
4,161,175
$
4,050,906 The loan portfolios presented above are net of unearned fees and unamortized premiums. Unearned fees included above totaled $0.8 million as of March 31, 2024 and December 31, 2023, while the unamortized premiums on the indirect lending portfolio totaled $30.9 million as of March 31, 2024 and $31.4
million as of December 31, 2023. CTBI has segregated and evaluates our loan portfolio through nine portfolio segments with similar risk characteristics. 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. Hotel/motel loans are a significant concentration for CTBI, representing
approximately 10.0% of total loans. This industry has unique risk characteristics as it is highly susceptible to changes in the
domestic and global economic environments, which can cause the industry to experience substantial volatility. Additionally, any hotel/motel construction loans would be included in this segment as CTBI’s construction loans are primarily completed
as one loan going from construction to permanent financing. 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. Commercial real estate residential loans are commercial purpose
construction and permanent financed loans for commercial purpose 1-4 family/multi-family properties. 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. Commercial real estate nonresidential loans are secured by nonfarm,
nonresidential 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. Construction for
commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing. Dealer floorplans consist of loans to dealerships to finance inventory and are collateralized under a blanket security agreement and without specific
liens on individual units. This risk is mitigated by the use of periodic inventory audits. These audits are performed monthly and follow up is required on any out of compliance items identified. These audits are subject to increasing frequency
when fact patterns suggest more scrutiny is required. Commercial
other loans consist of agricultural loans, receivable financing, 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 equipment, or other assets, although such loans may be uncollateralized but guaranteed. Residential real estate loans are a mixture of fixed rate and adjustable
rate first and second lien residential mortgage loans and also include real estate construction loans which are typically for owner-occupied properties. The terms of the real estate construction loans are generally short-term with permanent
financing upon completion. As a policy, CTBI holds adjustable rate loans and sells the majority of our 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 primarily 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. Indirect loans are primarily fixed rate consumer 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 included in the loan balances above were loans held for sale in the amount of $57 thousand at March 31, 2024 and $152 thousand at December 31, 2023. The following tables present the balance in
the ACL for the periods ended March 31, 2024, December 31, 2023 and March 31, 2023.
Three Months Ended March 31, 2024
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
4,592
$
348
$
0
$
0
$
4,940
Commercial real estate residential
4,285
(161
)
0
4
4,128
Commercial real estate nonresidential
7,560
615
0
3
8,178
Dealer floorplans
659
62
0
0
721
Commercial other
3,760
114
(167
)
92
3,799
Real estate mortgage
10,197
141
(27
)
14
10,325
Home equity
1,367
(65
)
0
2
1,304
Consumer direct
3,261
803
(533
)
40
3,571
Consumer indirect
13,862
799
(1,940
)
884
13,605
Total
$
49,543
$
2,656
$
(2,667
)
$
1,039
$
50,571
Year Ended December 31, 2023
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
5,171
$
(579
)
$
0
$
0
$
4,592
Commercial real estate residential
4,894
(706
)
(28
)
125
4,285
Commercial real estate nonresidential
9,419
(2,252
)
(294
)
687
7,560
Dealer floorplans
1,776
(1,117
)
0
0
659
Commercial other
5,285
(91
)
(1,900
)
466
3,760
Real estate mortgage
7,932
2,364
(140
)
41
10,197
Home equity
1,106
278
(23
)
6
1,367
Consumer direct
1,694
1,804
(541
)
304
3,261
Consumer indirect
8,704
7,110
(5,333
)
3,381
13,862
Total
$
45,981
$
6,811
$
(8,259
)
$
5,010
$
49,543
Three Months Ended March 31, 2023
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
5,171
$
116
$
0
$
0
$
5,287
Commercial real estate residential
4,894
186
0
77
5,157
Commercial real estate nonresidential
9,419
(553
)
0
144
9,010
Dealer floorplans
1,776
(82
)
0
0
1,694
Commercial other
5,285
(416
)
(187
)
100
4,782
Real estate mortgage
7,932
21
(40
)
4
7,917
Home equity
1,106
(64
)
0
2
1,044
Consumer direct
1,694
105
(156
)
103
1,746
Consumer indirect
8,704
1,803
(1,382
)
921
10,046
Total
$
45,981
$
1,116
$
(1,765
)
$
1,351
$
46,683 Using the ACL software, forecasts include gross domestic product (GDP), retail
sales and housing price index considerations. CTBI leverages economic projections from the Federal Open Market Committee to obtain various forecasts for unemployment rate and gross domestic product, the PNC forecast for the Case-Shiller
National Home Price Index, and the Wells Fargo forecast for the Advanced Retail Sales. CTBI has elected to forecast the first four quarters of the credit loss estimate and revert to a long-run average of each considered economic factor, as
permitted in ASC 326-20-30-9, over four quarters. All periods during the reasonable and supportable forecast period are utilizing a forecasted probability of default. Loss driver analysis was
performed during which regression models were built relating default rates of the various segments to the economic factors noted above. Historical loss data for both CTBI and segment-specific selected peers was incorporated from Federal Financial
Institutions Examination Council call report data. For loss given default, the Frye-Jacobs LGD estimation technique was utilized in the ACL software provided a risk curve that most approximates the asset class under consideration. Management
elected to evaluate internal prepayment experience over a trailing timeframe to determine the appropriate prepayment and curtailment rates to be used in the credit loss estimate. CTBI uses management judgement for
qualitative loss factors such as delinquency trends, supervision and administration, quality control exceptions, collateral values, and industry concentrations. The ACL software allows management to approve a “worst case” scenario or a maximum
loss rate for each segment. Qualitative dollars available for allocation then become the difference between the worst case and the ACL quantitative reserve estimate. Each factor is then given a risk weighting that is applied to determine a
basis point allocation. The qualitative loss factors are as follows:
•
Changes in delinquency trends by loan segment
•
Changes in international, national, regional, and local conditions
•
The effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses
•
The existence and effect of any concentrations of credit and changes in the levels of such concentrations
•
A supervision and administration allocation based on CTBI’s loan review process
•
Exceptions in lending policies and procedures as measured by quarterly loan portfolio exceptions reports
•
Changes in the nature and volume of the portfolio and terms of loans
•
Changes in the experience, depth, and ability of lending management Our provision for credit losses for the
quarter increased $0.8 million from prior quarter and $1.5 million from prior year same quarter. Our reserve coverage (ACL to nonperforming loans) at March 31, 2024 was 319.0%, compared to 354.7% at December 31, 2023 and 382.3% at March 31, 2023. Our credit loss reserve as a percentage of total loans outstanding at March 31, 2024 remained at 1.22% from December 31, 2023, down from the 1.24%
at March 31, 2023. Management continues to note the continued
impact of global uncertainty, the current rate of inflation, the uncertain interest rate environment, and the fact that there is no immediate end foreseen, and these conditions are now part of qualitative factors noted above. As in previous
periods, an allocation was made for delinquency trends, industry concentrations, supervisory and administration, loan exceptions, and collateral values. Refer
to Note 1 to the condensed consolidated financial statements for further information regarding our nonaccrual policy. Nonaccrual loans and loans 90 days past due and still accruing segregated by class of loans for both March 31, 2024 and December
31, 2023 were as follows:
March 31, 2024
(in thousands)
Nonaccrual Loans with No ACL
Nonaccrual Loans with ACL
90+ and Still Accruing
Total Nonperforming Loans
Hotel/motel
$
0
$
0
$
0
$
0
Commercial real estate residential
0
283
1,458
1,741
Commercial real estate nonresidential
0
632
2,136
2,768
Commercial other
232
398
748
1,378
Total commercial loans
232
1,313
4,342
5,887
Real estate mortgage
0
2,149
5,853
8,002
Home equity lines
0
157
588
745
Total residential loans
0
2,306
6,441
8,747
Consumer direct
0
451
48
499
Consumer indirect
0
0
719
719
Total consumer loans
0
451
767
1,218
Loans and lease financing
$
232
$
4,070
$
11,550
$
15,852
December 31, 2023
(in thousands)
Nonaccrual Loans with No ACL
Nonaccrual Loans with ACL
90+ and Still Accruing
Total Nonperforming Loans
Hotel/motel
$
0
$
0
$
0
$
0
Commercial real estate residential
0
498
1,059
1,557
Commercial real estate nonresidential
0
680
2,270
2,950
Dealer floorplans 0 0 0 0
Commercial other
236
452
162
850
Total commercial loans
236
1,630
3,491
5,357
Real estate mortgage
0
1,996
5,302
7,298
Home equity lines
0
186
557
743
Total residential loans
0
2,182
5,859
8,041
Consumer direct
0
0
15
15
Consumer indirect
0
0
555
555
Total consumer loans
0
0
570
570
Loans and lease financing
$
236
$
3,812
$
9,920
$
13,968 Discussion of the Nonaccrual Policy The accrual of interest income on loans is
discontinued when management believes, after considering economic and business conditions, collateral value, and collection efforts, that the borrower’s financial condition is such that the collection of interest is doubtful. Cash payments
received on nonaccrual loans generally are applied against principal, and interest income is only recorded once principal recovery is reasonably assured. Any loans greater than 90 days past due must be well secured and in the process of collection to continue accruing interest. See Note 1 to the condensed consolidated financial statements for further discussion on
our nonaccrual policy. The following tables present CTBI’s loan portfolio aging analysis, segregated by class, as of March 31, 2024 and December 31, 2023 (includes loans 90
days past due and still accruing as well):
March 31, 2024
(in thousands)
30-59 Days Past Due
60-89 Days Past Due
90+ Days Past Due
Total Past Due
Current
Total Loans
Hotel/motel
$
0
$
0
$
0
$
0
$
416,759
$
416,759
Commercial real estate residential
406
0
1,741
2,147
454,438
456,585
Commercial real estate nonresidential
1,295
757
2,490
4,542
809,362
813,904
Dealer floorplans
0
0
0
0
77,221
77,221
Commercial other
317
172
1,201
1,690
319,011
320,701
Total commercial loans
2,018
929
5,432
8,379
2,076,791
2,085,170
Real estate mortgage
894
2,471
6,801
10,166
945,450
955,616
Home equity lines
749
317
719
1,785
149,792
151,577
Total residential loans
1,643
2,788
7,520
11,951
1,095,242
1,107,193
Consumer direct
623
168
499
1,290
154,517
155,807
Consumer indirect
3,596
831
719
5,146
807,859
813,005
Total consumer loans
4,219
999
1,218
6,436
962,376
968,812
Loans and lease financing
$
7,880
$
4,716
$
14,170
$
26,766
$
4,134,409
$
4,161,175
December
31, 2023
(in thousands)
30-59 Days Past Due
60-89 Days Past Due
90+ Days Past Due
Total Past Due
Current
Total Loans
Hotel/motel
$
0
$
0
$
0
$
0
$
395,765
$
395,765
Commercial real estate residential
1,047
275
1,525
2,847
415,096
417,943
Commercial real estate nonresidential
549
332
2,619
3,500
775,137
778,637
Dealer floorplans
0
0
0
0
70,308
70,308
Commercial other
663
494
641
1,798
319,284
321,082
Total commercial loans
2,259
1,101
4,785
8,145
1,975,590
1,983,735
Real estate mortgage
1,323
3,455
6,168
10,946
926,578
937,524
Home equity lines
911
273
707
1,891
145,145
147,036
Total residential loans
2,234
3,728
6,875
12,837
1,071,723
1,084,560
Consumer direct
1,013
118
15
1,146
157,960
159,106
Consumer indirect
4,550
1,029
555
6,134
817,371
823,505
Total consumer loans
5,563
1,147
570
7,280
975,331
982,611
Loans and lease financing
$
10,056
$
5,976
$
12,230
$
28,262
$
4,022,644
$
4,050,906 The risk characteristics of CTBI’s material portfolio segments are as follows: Hotel/motel loans are a significant concentration for CTBI, representing approximately 10.0% of total loans. This industry has unique risk characteristics as it is highly susceptible to changes in the domestic and global economic environments, which can cause the industry to
experience substantial volatility. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Hotel/motel 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. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade
criteria. Commercial construction loans generally are made to customers for the purpose of building income-producing properties, and any hotel/motel construction loan would be included in this segment. 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. Commercial real estate residential loans are commercial purpose construction and permanent financed loans for commercial purpose 1-4
family/multi-family properties. All commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and
risk grade criteria. Commercial residential 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. Commercial real estate nonresidential loans are secured by nonfarm, nonresidential properties, farmland, and other commercial real estate.
Construction for commercial real estate nonresidential loans are also included in this segment as these loans are generally one loan for construction to permanent financing. All commercial real estate loans are viewed primarily as cash flow loans
and secondarily as loans secured by real estate. Management monitors and evaluates all commercial real estate loans based on collateral and risk grade criteria. Commercial nonresidential 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. Dealer floorplans are segmented separately as they are a unique product with unique risk factors. CTBI maintains strict processing procedures over
our floorplan product with any exceptions requested by a loan officer approved by the appropriate loan committee and the floorplan manager. Commercial other 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 our customers. 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. 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 is generally responsible for purchasing/funding consumer contracts with new and used automobile dealers. Dealer loan applications 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 borrowers, and on the collateral value. Upon a dealer being funded on an approved loan application and assignment of the
retail installment contract to CTB, CTB will have limited recourse with the dealer, as set forth in the CTB dealer agreement. On occasion, the dealer will execute a separate, full recourse agreement with CTB to obtain customer financing. 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:
➢
Pass grades
include investment grade, low risk, moderate risk, and acceptable risk loans. The loans range from loans that have no chance of resulting in a loss to loans that have a limited chance of resulting in a loss. Customers in this grade have
excellent to fair credit ratings. The cash flows are adequate to meet required debt repayments.
➢
Watch graded
loans are loans that warrant extra management attention but are not currently criticized. Loans on the watch list may be potential troubled credits or may warrant “watch” status for a reason not directly related to the asset quality of the
credit. The watch grade is a management tool to identify credits which may be candidates for future classification or may temporarily warrant extra management monitoring.
➢
Other assets especially mentioned (OAEM) reflects loans that are currently protected but are potentially weak. These loans constitute an undue and unwarranted credit risk but not to the point of justifying a classification of substandard. The credit
risk may be relatively minor yet constitute an unwarranted risk in light of circumstances surrounding a specific asset. Loans in this grade display potential weaknesses which may, if unchecked or uncorrected, inadequately protect CTBI’s
credit position at some future date. The loans may be adversely affected by economic or market conditions.
➢
Substandard
grading indicates that the loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These loans have a well-defined weakness or weaknesses that jeopardize the orderly
liquidation of the debt with the distinct possibility that CTBI will sustain some loss if the deficiencies are not corrected.
➢
Doubtful graded
loans have the weaknesses inherent in the substandard grading with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable
and improbable. The probability of loss is extremely high, but because of certain important and reasonably specific pending factors which may work to CTBI’s advantage or strengthen the asset(s), its classification as an estimated loss is
deferred until its more exact status may be determined. Pending factors include proposed merger, acquisition, or liquidation procedures, capital injection, perfecting liens on additional collateral, and refinancing plans. The following tables present the credit risk profile of CTBI’s commercial loan portfolio based on rating category and payment activity, segregated by
class of loans and based on last credit decision or year of origination:
Term Loans Amortized Cost Basis by Origination Year
(in thousands) March 31
2024
2023
2022
2021
2020
Prior
Revolving Loans
Total
Hotel/motel
Risk rating:
Pass
$
23,157
$
75,614
$
148,082
$
27,789
$
17,576
$
81,081
$
5,146
$
378,445
Watch
0
11,494
2,801
6,745
4,566
4,925
0
30,531
OAEM
0
0
3,982
0
0
1,954
0
5,936
Substandard
0
0
0
0
0
1,847
0
1,847
Doubtful
0
0
0
0
0
0
0
0
Total hotel/motel
23,157
87,108
154,865
34,534
22,142
89,807
5,146
416,759
Commercial real estate residential
Risk rating:
Pass
53,504
100,676
88,387
96,851
30,029
44,984
15,866
430,297
Watch
91
2,211
3,661
425
1,422
6,830
177
14,817
OAEM
0
0
0
0
0
62
0
62
Substandard
0
995
414
4,188
734
4,936
142
11,409
Doubtful
0
0
0
0
0
0
0
0
Total commercial real estate residential
53,595
103,882
92,462
101,464
32,185
56,812
16,185
456,585
Commercial real estate nonresidential
Risk rating:
Pass
50,150
152,323
135,583
133,424
66,865
190,555
32,112
761,012
Watch
0
548
3,643
6,249
2,298
7,637
338
20,713
OAEM
0
0
15
0
7,255
1,459
0
8,729
Substandard
470
4,341
1,594
2,523
4,480
9,966
74
23,448
Doubtful
0
0
0
0
0
2
0
2
Total commercial real estate nonresidential
50,620
157,212
140,835
142,196
80,898
209,619
32,524
813,904
Dealer floorplans
Risk rating:
Pass
0
0
0
0
0
0
76,789
76,789
Watch
0
0
0
0
0
0
432
432
OAEM
0
0
0
0
0
0
0
0
Substandard
0
0
0
0
0
0
0
0
Doubtful
0
0
0
0
0
0
0
0
Total dealer floorplans
0
0
0
0
0
0
77,221
77,221
Commercial other
Risk rating:
Pass
25,705
57,125
45,270
38,679
28,943
23,401
80,907
300,030
Watch
457
700
620
291
119
837
6,065
9,089
OAEM
0
28
0
0
0
0
30
58
Substandard
1,584
4,579
2,552
538
862
253
1,006
11,374
Doubtful
0
0
117
33
0
0
0
150
Total commercial other
27,746
62,432
48,559
39,541
29,924
24,491
88,008
320,701
Commercial other current period gross charge-offs (145 ) 0 (20 ) 0 (2 ) 0 0 (167 )
Commercial loans
Risk rating:
Pass
152,516
385,738
417,322
296,743
143,413
340,021
210,820
1,946,573
Watch
548
14,953
10,725
13,710
8,405
20,229
7,012
75,582
OAEM
0
28
3,997
0
7,255
3,475
30
14,785
Substandard
2,054
9,915
4,560
7,249
6,076
17,002
1,222
48,078
Doubtful
0
0
117
33
0
2
0
152
Total commercial loans
$
155,118
$
410,634
$
436,721
$
317,735
$
165,149
$
380,729
$
219,084
$
2,085,170
Total commercial loans current period gross charge-offs $ (145 ) $ 0 $ (20 ) $ 0 $ (2 ) $ 0 $ 0 $ (167 )
Term Loans Amortized Cost Basis by Origination Year
(in thousands) December 31
2023
2022
2021
2020
2019
Prior
Revolving Loans
Total
Hotel/motel
Risk rating:
Pass
$
79,651
$
144,826
$
28,011
$
17,664
$
40,873
$
42,030
$
4,042
$
357,097
Watch
11,569
2,826
6,835
4,623
3,361
1,648
0
30,862
OAEM
0
3,982
0
0
0
1,954
0
5,936
Substandard
0
0
0
0
0
1,118
0
1,118
Doubtful
0
0
0
0
0
752
0
752
Total hotel/motel
91,220
151,634
34,846
22,287
44,234
47,502
4,042
395,765
Commercial real estate residential
Risk rating:
Pass
109,304
89,119
98,896
30,972
11,908
36,964
14,700
391,863
Watch
2,317
2,131
473
1,395
721
6,359
124
13,520
OAEM
0
0
0
0
0
63
0
63
Substandard
760
854
4,532
834
285
5,232
0
12,497
Doubtful
0
0
0
0
0
0
0
0
Total commercial real estate residential
112,381
92,104
103,901
33,201
12,914
48,618
14,824
417,943
Commercial real estate residential current period gross charge-offs 0 0 (28 ) 0 0 0 0 (28 )
Commercial real estate nonresidential
Risk rating:
Pass
149,633
142,580
136,090
68,240
55,850
140,074
31,536
724,003
Watch
552
3,664
6,305
2,347
1,938
6,003
354
21,163
OAEM
2,375
15
0
7,255
0
1,486
0
11,131
Substandard
2,520
1,598
2,538
4,472
2,000
9,199
0
22,327
Doubtful
0
0
0
0
0
13
0
13
Total commercial real estate nonresidential
155,080
147,857
144,933
82,314
59,788
156,775
31,890
778,637
Commercial real estate nonresidential current period gross charge-offs 0 0 (7 ) 0 0 (287 ) 0 (294 )
Dealer floorplans
Risk rating:
Pass
0
0
0
0
0
0
70,308
70,308
Watch
0
0
0
0
0
0
0
0
OAEM
0
0
0
0
0
0
0
0
Substandard
0
0
0
0
0
0
0
0
Doubtful
0
0
0
0
0
0
0
0
Total dealer floorplans
0
0
0
0
0
0
70,308
70,308
Commercial other
Risk rating:
Pass
73,115
47,575
40,448
30,033
4,780
22,588
81,791
300,330
Watch
1,138
1,109
569
126
239
635
5,877
9,693
OAEM
29
0
0
0
0
0
30
59
Substandard
4,921
3,581
381
890
211
403
613
11,000
Doubtful
0
0
0
0
0
0
0
0
Total commercial other
79,203
52,265
41,398
31,049
5,230
23,626
88,311
321,082
Commercial other current period gross charge-offs (725 ) (710 ) (302 ) (27 ) (90 ) (46 ) 0 (1,900 )
Commercial loans
Risk rating:
Pass
411,703
424,100
303,445
146,909
113,411
241,655
202,377
1,843,600
Watch
15,576
9,730
14,182
8,491
6,259
14,645
6,355
75,238
OAEM
2,404
3,997
0
7,255
0
3,503
30
17,189
Substandard
8,201
6,033
7,451
6,196
2,496
15,952
613
46,942
Doubtful
0
0
0
0
0
766
0
766
Total commercial loans
$
437,884
$
443,860
$
325,078
$
168,851
$
122,166
$
276,521
$
209,375
$
1,983,735
Total commercial loans current period gross charge-offs $ (725 ) $ (710 ) $ (337 ) $ (27 ) $ (90 ) $ (333 ) $ 0 $ (2,222 ) 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:
(in thousands)
Term Loans Amortized Cost Basis by Origination Year
March 31
2024
2023
2022
2021
2020
Prior
Revolving Loans
Total
Home equity lines
Performing
$
0
$
0
$
0
$
0
$
0
$
7,846
$
142,986
$
150,832
Nonperforming
0
0
0
0
0
471
274
745
Total home equity lines
0
0
0
0
0
8,317
143,260
151,577
Mortgage loans
Performing
35,865
207,193
154,086
156,133
116,396
277,941
0
947,614
Nonperforming
0
29
469
188
192
7,124
0
8,002
Total mortgage loans
35,865
207,222
154,555
156,321
116,588
285,065
0
955,616
Mortgage loans current period gross charge-offs 0 0 0 0 0 (27 ) 0 (27 )
Residential loans
Performing
35,865
207,193
154,086
156,133
116,396
285,787
142,986
1,098,446
Nonperforming
0
29
469
188
192
7,595
274
8,747
Total residential loans
$
35,865
$
207,222
$
154,555
$
156,321
$
116,588
$
293,382
$
143,260
$
1,107,193
Total residential loans current period gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (27 ) $ 0 $ (27 )
Consumer direct loans
Performing
$
14,253
$
54,867
$
30,487
$
24,055
$
14,354
$
17,292
$
0
$
155,308
Nonperforming
0
44
451
0
4
0
0
499
Total consumer direct loans
14,253
54,911
30,938
24,055
14,358
17,292
0
155,807
Total consumer direct loans current period gross charge-offs 0 (24 ) (470 ) (14 ) (7 ) (18 ) 0 (533 )
Consumer |
