| 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)
June 30 2024
December 31 2023
Hotel/motel
$
417,161
$
395,765
Commercial real estate residential
480,418
417,943
Commercial real estate nonresidential
825,934
778,637
Dealer floorplans
76,222
70,308
Commercial other
352,041
321,082
Commercial loans
2,151,776
1,983,735
Real estate mortgage
978,144
937,524
Home equity lines
154,311
147,036
Residential loans
1,132,455
1,084,560
Consumer direct
157,327
159,106
Consumer indirect
819,689
823,505
Consumer loans
977,016
982,611
Loans and lease financing
$
4,261,247
$
4,050,906 The loan portfolios presented above are net of unearned fees and unamortized premiums.
Unearned fees included above totaled $0.6 million as of June 30, 2024 and $ million as of December 31, 2023, while the unamortized premiums on the indirect lending portfolio totaled $ million as of June 30, 2024 and $ 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 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 loan going from construction to permanent financing. These loans are originated based on the borrower’s ability to service the debt and arily 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 - family/multi-family properties. These loans are
originated based on the borrower’s ability to service the debt and arily 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 arily 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 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. I ndirect 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 $0.4 million at June 30, 2024 and $0.2 million at December 31, 2023. The following tables present the balance in the ACL for the periods ended June 30, 2024,
December 31, 2023 and June 30, 2023
Three Months Ended June 30, 2024
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
4,940
$
(493
)
$
0
$
0
$
4,447
Commercial real estate residential
4,128
211
0
10
4,349
Commercial real estate nonresidential
8,178
478
0
50
8,706
Dealer floorplans
721
(160
)
0
0
561
Commercial other
3,799
149
(679
)
116
3,385
Real estate mortgage
10,325
1,535
(24
)
4
11,840
Home equity
1,304
8
0
6
1,318
Consumer direct
3,571
131
(189
)
91
3,604
Consumer indirect
13,605
1,113
(1,944
)
1,164
13,938
Total
$
50,571
$
2,972
$
(2,836
)
$
1,441
$
52,148
Six Months Ended June 30, 2024
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
4,592
$
(145
)
$
0
$
0
$
4,447
Commercial real estate residential
4,285
50
0
14
4,349
Commercial real estate nonresidential
7,560
1,093
0
53
8,706
Dealer floorplans
659
(98
)
0
0
561
Commercial other
3,760
263
(846
)
208
3,385
Real estate mortgage
10,197
1,676
(51
)
18
11,840
Home equity
1,367
(57
)
0
8
1,318
Consumer direct
3,261
934
(722
)
131
3,604
Consumer indirect
13,862
1,912
(3,884
)
2,048
13,938
Total
$
49,543
$
5,628
$
(5,503
)
$
2,480
$
52,148
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 June 30, 2023
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
5,287
$
(95
)
$
0
$
0
$
5,192
Commercial real estate residential
5,157
(1,384
)
(28
)
4
3,749
Commercial real estate nonresidential
9,010
(1,393
)
(9
)
189
7,797
Dealer floorplans
1,694
(537
)
0
0
1,157
Commercial other
4,782
2,387
(1,073
)
80
6,176
Real estate mortgage
7,917
10
(55
)
12
7,884
Home equity
1,044
76
(13
)
1
1,108
Consumer direct
1,746
807
(82
)
92
2,563
Consumer indirect
10,046
2,138
(693
)
901
12,392
Total
$
46,683
$
2,009
$
(1,953
)
$
1,279
$
48,018
Six Months Ended June 30, 2023
(in thousands)
Beginning Balance
Provision Charged to Expense
Losses Charged Off
Recoveries
Ending Balance
ACL
Hotel/motel
$
5,171
$
21
$
0
$
0
$
5,192
Commercial real estate residential
4,894
(1,198
)
(28
)
81
3,749
Commercial real estate nonresidential
9,419
(1,946
)
(9
)
333
7,797
Dealer floorplans
1,776
(619
)
0
0
1,157
Commercial other
5,285
1,971
(1,260
)
180
6,176
Real estate mortgage
7,932
31
(95
)
16
7,884
Home equity
1,106
12
(13
)
3
1,108
Consumer direct
1,694
912
(238
)
195
2,563
Consumer indirect
8,704
3,941
(2,075
)
1,822
12,392
Total
$
45,981
$
3,125
$
(3,718
)
$
2,630
$
48,018 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, providing 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 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 June 30, 2024 and December 31, 2023 were as follows:
June 30, 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
661
657
1,318
Commercial real estate nonresidential
0
616
4,448
5,064
Commercial other
235
621
796
1,652
Total commercial loans
235
1,898
5,901
8,034
Real estate mortgage
0
2,387
7,316
9,703
Home equity lines
0
156
760
916
Total residential loans
0
2,543
8,076
10,619
Consumer direct
0
451
91
542
Consumer indirect
0
0
635
635
Total consumer loans
0
451
726
1,177
Loans and lease financing
$
235
$
4,892
$
14,703
$
19,830
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 June 30, 2024 and December 31, 2023 (includes loans 90
days past due and still accruing as well):
June 30, 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
$
417,161
$
417,161
Commercial real estate residential
1,136
187
1,318
2,641
477,777
480,418
Commercial real estate nonresidential
1,017
8,274
4,779
14,070
811,864
825,934
Dealer floorplans
0
0
0
0
76,222
76,222
Commercial other
1,192
516
1,312
3,020
349,021
352,041
Total commercial loans
3,345
8,977
7,409
19,731
2,132,045
2,151,776
Real estate mortgage
1,356
3,250
8,531
13,137
965,007
978,144
Home equity lines
939
220
891
2,050
152,261
154,311
Total residential loans
2,295
3,470
9,422
15,187
1,117,268
1,132,455
Consumer direct
582
143
542
1,267
156,060
157,327
Consumer indirect
4,713
1,483
635
6,831
812,858
819,689
Total consumer loans
5,295
1,626
1,177
8,098
968,918
977,016
Loans and lease financing
$
10,935
$
14,073
$
18,008
$
43,016
$
4,218,231
$
4,261,247
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 9.8% 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
➢
Watch
➢
Other assets especially mentioned (OAEM)
➢
Substandard
➢
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 and based on last credit decision or year of origination:
Term Loans Amortized Cost Basis by Origination Year
(in thousand s) June 30
2024
2023
2022
2021
2020
Prior
Revolving Loans
Total
Hotel/motel
Risk rating:
Pass
$
19,737
$
77,799
$
151,121
$
27,578
$
17,388
$
78,805
$
5,274
$
377,702
Watch
0
11,411
2,776
6,681
4,537
8,011 0
33,416
OAEM
0
0
0
0
0
0
0
0
Substandard
0
0
4,089
0
0
1,954
0
6,043
Doubtful
0
0
0
0
0
0
0
0
Total hotel/motel
19,737
89,210
157,986
34,259
21,925
88,770
5,274
417,161
Commercial real estate residential
Risk rating:
Pass
107,700
92,041
87,418
78,240
28,580
42,351
16,998
453,328
Watch
1,244
2,412
4,212
3,918
1,805
6,519
139
20,249
OAEM
0
122
0
0
0
89
70
281
Substandard
0
824
524
413
344
4,455
0
6,560
Doubtful
0
0
0
0
0
0
0
0
Total commercial real estate residential
108,944
95,399
92,154
82,571
30,729
53,414
17,207
480,418
Commercial real estate nonresidential
Risk rating:
Pass
106,957
130,895
130,451
126,349
70,121
167,723
32,753
765,249
Watch
3,575
1,359
3,638
8,870
2,501
7,799
483
28,225
OAEM
0
0
15
379
0
1,446
0
1,840
Substandard
2,081
3,902
1,601
2,266
11,230
9,538
0
30,618
Doubtful
0
0
0
0
0
2
0
2
Total commercial real estate nonresidential
112,613
136,156
135,705
137,864
83,852
186,508
33,236
825,934
Dealer floorplans
Risk rating:
Pass
0
0
0
0
0
0
74,114
74,114
Watch
0
0
0
0
0
0
2,108
2,108
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
76,222
76,222
Commercial other
Risk rating:
Pass
65,651
53,144
43,262
28,313
27,086
21,461
75,364
314,281
Watch
1,151
921
631
387
127
723
14,406
18,346
OAEM
81
28
0
8,749
0
0
30
8,888
Substandard
955
4,505
2,615
483
478
211
1,279
10,526
Doubtful
0
0
0
0
0
0
0
0
Total commercial other
67,838
58,598
46,508
37,932
27,691
22,395
91,079
352,041
Commercial other current period gross charge-offs (813 ) 0 (20 ) (6 ) (2 ) (5 ) 0 (846 )
Commercial loans
Risk rating:
Pass
300,045
353,879
412,252
260,480
143,175
310,340
204,503
1,984,674
Watch
5,970
16,103
11,257
19,856
8,970
23,052
17,136
102,344
OAEM
81
150
15
9,128
0
1,535
100
11,009
Substandard
3,036
9,231
8,829
3,162
12,052
16,158
1,279
53,747
Doubtful
0
0
0
0
0
2
0
2
Total commercial loans
$
309,132
$
379,363
$
432,353
$
292,626
$
164,197
$
351,087
$
223,018
$
2,151,776
Total commercial loans current period gross charge-offs $ (813 ) $ 0 $ (20 ) $ (6 ) $ (2 ) $ (5 ) $ 0 $ (846 )
Term Loans Amortized Cost Basis by Origination Year
(in thousand s) 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
$
42,029
$
4,042
$
357,096
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
753
0
753
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
June 30
2024
2023
2022
2021
2020
Prior
Revolving Loans
Total
Home equity lines
Performing
$
0
$
0
$
0
$
0
$
0
$
7,596
$
145,799
$
153,395
Nonperforming
0
0
0
0
0
488
428
916
Total home equity lines
0
0
0
0
0
8,084
146,227
154,311
Mortgage loans
Performing
79,103
205,074
150,267
152,504
112,667
268,826
0
968,441
Nonperforming
0
676
649
597
511
7,270
0
9,703
Total mortgage loans
79,103
205,750
150,916
153,101
113,178
276,096
0
978,144
Mortgage loans current period gross charge-offs 0 0 0 0 0 (51 ) 0 (51 )
Residential loans
Performing
79,103
205,074
150,267
152,504
112,667
276,422
145,799
1,121,836
Nonperforming
0
676
649
597
511
7,758
428
10,619
Total residential loans $
79,103 $
205,750 $
150,916 $
153,101 $
113,178 $
284,180 $
146,227 $
1,132,455
Total residential loans current period gross charge-offs $ 0 $ 0 $ 0 $ 0 $ 0 $ (51 ) $ 0 $ (51 )
Consumer direct loans
Performing
$
32,437
$
47,077
$
27,577
$
21,495
$
12,421
$
15,778
$
0
$
156,785
Nonperforming
0
54
452
27
9
0
0
542
Total consumer direct loans
32,437
47,131
28,029
21,522
12,430
15,778
0
157,327
Total consumer direct loans current period gross charge-offs (3 ) (124 ) (516 ) (33 ) (9 ) (37 ) 0 (722 )
Consumer indirect loans
Performing
158,849
299,197
204,799
85,689
50,804
19,716
0
819,054
Nonperforming
6
186
238
132
65
8
0
635
Total consumer indirect loans
158,855
299,383
205,037
85,821
50,869
19,724
0
819,689
Total consumer indirect loans current period gross charge-offs (54 ) (1,255 ) (1,436 ) (829 ) (140 ) (170 ) 0 (3,884 )
Consumer loans
Performing
191,286
346,274
232,376
107,184
63,225
35,494
0
975,839
Nonperforming
6
240
690
159
74
8
0
1,177
Total consumer loans $
191,292 $
346,514 $
233,066 $
107,343 $
63,299 $
35,502 $
0 $
977,016
Total consumer loans current period gross charge-offs $ (57 ) $ (1,379 ) $ (1,952 ) $ (862 ) $ (149 ) $ (207 ) $ 0 $ (4,606 )
(in thousands)
Term Loans Amortized Cost Basis by Origination Year
December 31
2023
2022
2021
2020
2019
Prior
Revolving Loans
Total
Home equity lines
Performing
$
0
$
0
$
0
$
0
$
0
$
7,630
$
138,663
$
146,293
Nonperforming
0
0
0
0
0
442
301
743
Total home equity lines
0
0
0
0
0
8,072
138,964
147,036
Home equity lines current period gross charge-offs 0 0 0 0 0 (23 ) 0 (23 )
Mortgage loans
Performing
200,442
162,407
159,857
119,772
56,601
231,147
0
930,226
Nonperforming
0
200
151
192
533
6,222
0
7,298
Total mortgage loans
200,442
162,607
160,008
119,964
57,134
237,369
0
937,524
Mortgage loans current period gross charge-offs 0 0 (47 ) 0 (40 ) (53 ) 0 (140 )
Residential loans
Performing
200,442
162,407
159,857
119,772
56,601
238,777
138,663
1,076,519
Nonperforming
0
200
151
192
533
6,664
301
8,041
Total residential loans
$
200,442
$
162,607
$
160,008
$
119,964
$
57,134
$
245,441
$
138,964
$
1,084,560
Total residential loans current period gross charge-offs $ 0 $ 0 $ (47 ) $ 0 $ (40 ) $ (76 ) $ 0 $ (163 )
Consumer direct loans
Performing
$
63,686
$
34,722
$
26,250
$
15,560
$
6,951
$
11,922
$
0
$
159,091
Nonperforming
0
4
11
0
0
0
0
15
Total consumer direct loans
63,686
34,726
26,261
15,560
6,951
11,922
0
159,106
Total consumer direct loans current period gross charge-offs (65 ) (263 ) (129 ) (37 ) (27 ) |
