☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
|
Kentucky
|
61-0979818
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
346 North Mayo Trail
P.O. Box 2947
Pikeville, Kentucky
|
41502
|
|
(Address of principal executive offices) | (Zip code) |
(606) 432-1414 |
(Registrant’s telephone number) |
Securities registered pursuant to Section 12(b) of the Act: |
Common Stock
(Title of class)
|
CTBI
|
The NASDAQ Global Select Market
|
(Trading symbol)
|
(Name of exchange on which registered)
|
Yes ☐
|
No ☑
|
Yes ☐
|
No ☑
|
Yes ☑
|
No ☐
|
Yes ☑
|
No ☐
|
Large Accelerated Filer ☐
|
Accelerated Filer ☑
|
Non-accelerated Filer ☐
|
Smaller Reporting Company ☐
|
Emerging Growth Company ☐
|
Yes ☑
|
No ☐
|
Yes ☐
|
No ☑
|
1 | |
|
|
1 | |
1 | |
4 | |
15 | |
15 | |
17 | |
17 | |
17 | |
18 | |
19 |
|
19 |
|
20 | |
21 | |
38 | |
39 |
|
43 | |
99 | |
101 | |
101 | |
103 | |
103 | |
103 | |
103 | |
103 | |
103 | |
103 | |
104 | |
104 | |
105 | |
106 |
Item 1. |
Business
|
•
|
Clients may not want, need, or qualify for our products and services;
|
•
|
Borrowers may not be able to repay their loans;
|
•
|
The value of the collateral securing our loans to borrowers may decline; and
|
•
|
The quality of our loan portfolio may decline.
|
•
|
The rate of inflation;
|
•
|
The rate of economic growth;
|
•
|
Employment levels;
|
•
|
Monetary policies; and
|
•
|
Instability in domestic and foreign financial markets.
|
•
|
The length and severity of downturns in the local economies in which we operate or the national economy;
|
•
|
The length and severity of downturns in one or more of the business sectors in which our customers operate, particularly the automobile, hotel/motel, and residential development industries; or
|
•
|
A rapid increase in interest rates.
|
•
|
Commercial Real Estate Residential. Repayment is dependent on income being generated in amounts sufficient to cover
operating expenses and debt service. As of December 31, 2023, commercial real estate residential loans comprised approximately 10% of our total loan portfolio.
|
•
|
Commercial Real Estate Nonresidential. Repayment is dependent on income being generated in amounts sufficient to cover
operating expenses and debt service. As of December 31, 2023, commercial real estate nonresidential loans comprised approximately 19% of our total loan portfolio.
|
•
|
Hotel/Motel. The hotel and motel industry is highly susceptible to changes in the domestic and global economic environments, which has caused the industry to
experience substantial volatility due to the recent global pandemic. As of December 31, 2023, hotel/motel loans comprised approximately 10% of our total loan portfolio.
|
•
|
Other Commercial Loans. Repayment is generally dependent upon the successful operation of the borrower’s business. In
addition, the collateral securing the loans may depreciate over time, be difficult to appraise, be illiquid, or fluctuate in value based on the success of the business. As of December 31, 2023, other commercial loans comprised
approximately 10% of our total loan portfolio.
|
•
|
Safety and soundness guidelines;
|
•
|
Compliance with all laws including the USA PATRIOT Act, the International Money Laundering Abatement and Anti-Terrorist Financing Act, the Sarbanes-Oxley Act and the related rules and regulations
promulgated under such Act or the Exchange Act, the Equal Credit Opportunity Act, the Fair Housing Act, the Community Reinvestment Act, the Home Mortgage Disclosure Act, and all other applicable fair lending and consumer protection laws
and other laws relating to discriminatory business practices; and
|
•
|
Anti-competitive concerns with the proposed transaction.
|
•
|
Actual or anticipated variations in earnings;
|
•
|
Changes in analysts’ recommendations or projections;
|
•
|
CTBI’s announcements of developments related to our businesses;
|
•
|
Operating and stock performance of other companies deemed to be peers;
|
•
|
New technology used or services offered by traditional and non-traditional competitors;
|
•
|
News reports of trends, concerns, and other issues related to the financial services industry; and
|
•
|
Additional governmental policies and enforcement of current laws.
|
Item 2. |
Properties
|
Location
|
Owned
|
Leased
|
Total
|
|||||||||
Banking locations:
|
||||||||||||
Community Trust Bank, Inc.
|
||||||||||||
* Pikeville Market (lease land at 3 owned locations)
|
9
|
1
|
10
|
|||||||||
10 locations in Pike County, Kentucky
|
||||||||||||
Floyd/Knott/Johnson Market (lease land at 1 owned location)
|
3
|
1
|
4
|
|||||||||
2 locations in Floyd County, Kentucky, 1 location in Knott County, Kentucky, and 1 location in Johnson County, Kentucky
|
||||||||||||
Tug Valley Market (lease land at 1 owned location)
|
2
|
0
|
2
|
|||||||||
1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia
|
||||||||||||
Whitesburg Market (lease land at 1 owned location)
|
4
|
1
|
5
|
|||||||||
5 locations in Letcher County, Kentucky
|
||||||||||||
Hazard Market (lease land at 2 owned locations)
|
3
|
0
|
3
|
|||||||||
3 locations in Perry County, Kentucky
|
||||||||||||
* Lexington Market (lease land at 3 owned locations)
|
4
|
2
|
6
|
|||||||||
6 locations in Fayette County, Kentucky
|
||||||||||||
Winchester Market
|
2
|
0
|
2
|
|||||||||
2 locations in Clark County, Kentucky
|
||||||||||||
Richmond Market (lease land at 1 owned location)
|
3
|
0
|
3
|
|||||||||
3 locations in Madison County, Kentucky
|
||||||||||||
Mt. Sterling Market
|
2
|
0
|
2
|
|||||||||
2 locations in Montgomery County, Kentucky
|
||||||||||||
Versailles Market (lease land at 2 owned locations)
|
3
|
2
|
5
|
|||||||||
1 location in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 2 locations in Scott County, Kentucky
|
||||||||||||
* Danville Market (lease land at 1 owned location)
|
3
|
0
|
3
|
|||||||||
2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky
|
||||||||||||
* Ashland Market (lease land at 1 owned location)
|
5
|
0
|
5
|
|||||||||
4 locations in Boyd County, Kentucky and 1 location in Greenup County, Kentucky
|
||||||||||||
Flemingsburg Market
|
3
|
0
|
3
|
|||||||||
3 locations in Fleming County, Kentucky
|
||||||||||||
Advantage Valley Market
|
3
|
1
|
4
|
|||||||||
2 locations in Lincoln County, West Virginia, 1 location in Wayne County, West Virginia, and 1 location in Cabell County, West Virginia
|
||||||||||||
Summersville Market
|
1
|
0
|
1
|
|||||||||
1 location in Nicholas County, West Virginia
|
||||||||||||
Middlesboro Market (lease land at 1 owned location)
|
3
|
0
|
3
|
|||||||||
3 locations in Bell County, Kentucky
|
||||||||||||
Williamsburg Market
|
5
|
0
|
5
|
|||||||||
2 locations in Whitley County, Kentucky and 3 locations in Laurel County, Kentucky
|
||||||||||||
Campbellsville Market (lease land at 2 owned locations)
|
8
|
0
|
8
|
|||||||||
2 locations in Taylor County, Kentucky, 2 locations in Pulaski County, Kentucky, 1 location in Adair County, Kentucky, 1 location in Green County, Kentucky, 1 location in Russell County, Kentucky, and 1
location in Marion County, Kentucky
|
||||||||||||
Mt. Vernon Market
|
2
|
0
|
2
|
|||||||||
2 locations in Rockcastle County, Kentucky
|
||||||||||||
* LaFollette Market
|
3
|
0
|
3
|
|||||||||
2 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee
|
||||||||||||
Total banking locations
|
71
|
8
|
79
|
|||||||||
Operational locations:
|
||||||||||||
Community Trust Bank, Inc.
|
||||||||||||
Pikeville (Pike County, Kentucky) (lease land at 1 owned location)
|
1
|
0
|
1
|
|||||||||
Total operational locations
|
1
|
0
|
1
|
|||||||||
Total locations
|
72
|
8
|
80
|
Item 3. |
Legal Proceedings
|
Item 4. |
Mine Safety Disclosures
|
Name and Age (1)
|
Positions and Offices
Currently Held
|
Date First Became
Executive Officer
|
Principal Occupation
|
||
Mark A. Gooch; 65
|
Vice Chairman, President, and Chief Executive Officer
|
1997
|
(2)
|
|
Vice Chairman, President, and CEO of CTBI
|
Kevin J. Stumbo; 63
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
2002
|
Executive Vice President/Chief Financial Officer of CTBI
|
||
Richard W. Newsom; 69
|
Executive Vice President
|
2002
|
(3)
|
|
Executive Vice President/President of CTB
|
Andy D. Waters; 58
|
Executive Vice President
|
2011
|
President and CEO of CTIC
|
||
C. Wayne Hancock; 49
|
Executive Vice President and Secretary
|
2014
|
(4)
|
|
Executive Vice President/Chief Legal Officer of CTB
|
James B. Draughn; 64
|
Executive Vice President
|
2001
|
Executive Vice President/Operations of CTB
|
||
Steven E. Jameson; 67
|
Executive Vice President
|
2004
|
(5)
|
|
Executive Vice President/Chief Internal Audit & Risk Officer of CTB
|
Ricky D. Sparkman; 61
|
Executive Vice President
|
2002
|
Executive Vice President/South Central Region President of CTB
|
||
D. Andrew Jones; 61
|
Executive Vice President
|
2010
|
Executive Vice President/Northeastern Region President of CTB
|
||
David Tackett; 58
|
Executive Vice President
|
2022
|
(6)
|
|
Executive Vice President/Eastern Region President of CTB
|
Billie J. Dollins; 63
|
Executive Vice President
|
2023
|
(7)
|
|
Executive Vice President/Central Kentucky Region President of CTB
|
Mark E. Smith; 53
|
Executive Vice President
|
2024
|
(8)
|
|
Executive Vice President/Chief Credit Officer of CTB
|
(1) |
The ages listed for CTBI’s executive officers are as of February 28, 2024.
|
(2) |
Mr. Gooch became President of CTBI on July 27, 2021 and assumed the additional positions of Vice Chairman and Chief Executive Officer of CTBI effective February 7, 2022, upon the retirement of Jean R. Hale. Mr. Gooch retained his
previous position as Chief Executive Officer of CTB and assumed the additional roles of Chairman of CTB and Chairman of CTIC also effective with Ms. Hale’s retirement on February 7, 2022.
|
(3) |
Mr. Newsom became President of CTB on February 7, 2022. He previously served as President of the Eastern Region of CTB.
|
(4) |
Mr. Hancock became Secretary of CTBI on February 7, 2022.
|
(5) |
Mr. Jameson is a non-voting member of the Executive Committee.
|
(6) |
Mr. Tackett became Executive Vice President of CTBI and President of the Eastern Region of CTB on February 7, 2022. He previously held the position of President of the Floyd, Knott, and Johnson Market of CTB.
|
(7) |
Ms. Dollins became Executive Vice President of CTBI and President of the Central Kentucky Region of CTB on January 3, 2023, following the retirement of Larry W. Jones. She previously held the position of President of the Versailles
Market of CTB.
|
(8) |
James J. Gartner, former Executive Vice President of CTBI and Executive Vice President/Chief Credit Officer of CTB, retired effective December 29, 2023. Mr. Smith was named Executive Vice President of CTBI and Executive Vice
President/Chief Credit Officer of CTB effective January 2, 2024.
|
Item 5. |
Market for the Registrant’s Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities
|
Fiscal Year Ending December 31 ($)
|
||||||
|
2018
|
2019
|
2020
|
2021
|
2022
|
2023
|
Community Trust Bancorp, Inc.
|
100.00
|
121.48
|
100.49
|
122.54
|
133.78
|
132.99
|
NASDAQ Stock Market (U.S.)
|
100.00
|
131.17
|
159.07
|
200.26
|
160.75
|
203.23
|
NASDAQ Bank Stocks
|
100.00
|
137.18
|
119.62
|
164.26
|
135.89
|
149.56
|
Item 6. |
[Reserved]
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
❖
|
Our Business
|
❖
|
Financial Goals and Performance
|
❖
|
Results of Operations and Financial Condition
|
❖
|
Liquidity and Market Risk
|
❖
|
Interest Rate Risk
|
❖
|
Capital Resources
|
❖
|
Impact of Inflation, Changing Prices, and Economic Conditions
|
❖
|
Stock Repurchase Program
|
❖
|
Critical Accounting Policies and Estimates
|
2023 Goals
|
2023 Performance
|
2024 Goals
|
|
Basic earnings per share
|
$4.57 - $4.75
|
$4.36
|
$4.31 - $4.49
|
Net income
|
$82.0 - $85.4 million
|
$78.0 million
|
$77.7 - $80.8 million
|
ROAA
|
1.50% - 1.56%
|
1.40%
|
1.33% - 1.39%
|
ROAE
|
12.26% - 12.76%
|
11.75%
|
10.99% - 11.44%
|
Revenues
|
$237.9 - $247.6 million
|
$230.8 million
|
$236.8 - $246.5 million
|
Noninterest revenue as % of total revenue
|
24.00% - 26.00%
|
25.00%
|
23.50% - 25.50%
|
Assets
|
$5.38 - $5.72 billion
|
$5.77 billion
|
$5.74 - $6.10 billion
|
Loans
|
$3.77 - $3.92 billion
|
$4.05 billion
|
$4.18 - $4.35 billion
|
Deposits, including repurchase agreements
|
$4.64 - $4.83 billion
|
$4.95 billion
|
$4.97 - $5.17 billion
|
Shareholders’ equity
|
$686.5 - $714.5 million
|
$702.2 million
|
$711.2 - $740.3 million
|
❖
|
Net interest income for the year ended December 31, 2023 increased $4.0 million, or 2.4%, from December 31, 2022 with a $114.8 million increase in average earning assets.
|
❖
|
Provision for credit losses was $6.8 million for the year ended December 31, 2023 compared to $4.9 million for the year ended December 31, 2022.
|
❖
|
Our loan portfolio increased $341.6 million, or 9.2%, from December 31, 2022 to December 31, 2023.
|
❖
|
Net loan charge-offs were $3.2 million, or 0.08% of average loans annualized, for the year ended December 31, 2023 compared to $0.7 million, or 0.02% of average loans annualized, for the year ended
December 31, 2022.
|
❖
|
Our total nonperforming loans at $14.0 million at December 31, 2023 decreased $1.3 million, or 8.8%, from December 31, 2022. Nonperforming assets at $15.6 million decreased $3.4 million, or 17.9%, from
December 31, 2022.
|
❖
|
Deposits, including repurchase agreements, at December 31, 2023 increased $308.3 million, or 6.6%, from December 31, 2022.
|
❖
|
Noninterest income for the year ended December 31, 2023 of $57.7 million decreased $0.3 million, or 0.4%, compared to the year ended December 31, 2022.
|
❖
|
Noninterest expense for the year ended December 31, 2023 of $125.4 million increased $4.3 million, or 3.6%, compared to the year ended December 31, 2022.
|
(dollars in thousands)
|
Change 2023 vs. 2022
|
|||||||||||||||
Year Ended December 31
|
2023
|
2022
|
Amount
|
Percent
|
||||||||||||
Net interest income
|
$
|
173,110
|
$
|
169,102
|
$
|
4,008
|
2.4
|
%
|
||||||||
Provision for credit losses (recovery)
|
6,811
|
4,905
|
1,906
|
38.9
|
||||||||||||
Noninterest income
|
57,659
|
57,916
|
(257
|
)
|
(0.4
|
)
|
||||||||||
Noninterest expense
|
125,390
|
121,071
|
4,319
|
3.6
|
||||||||||||
Income taxes
|
20,564
|
19,228
|
1,336
|
6.9
|
||||||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
(3,810
|
)
|
(4.7
|
)%
|
|||||||
Average earning assets
|
$
|
5,244,128
|
$
|
5,129,345
|
$
|
114,783
|
2.2
|
%
|
||||||||
Yield on average earnings assets, tax equivalent*
|
5.15
|
%
|
3.87
|
%
|
1.28
|
%
|
33.1
|
%
|
||||||||
Cost of interest bearing funds
|
2.72
|
%
|
0.85
|
%
|
1.87
|
%
|
220.0
|
%
|
||||||||
Net interest margin, tax equivalent*
|
3.32
|
%
|
3.32
|
%
|
0.0
|
%
|
0.0
|
%
|
2023
|
2022
|
|||||||||||||||||||||||
(in thousands)
|
Average
Balances
|
Interest
|
Average
Rate
|
Average
Balances
|
Interest
|
Average
Rate
|
||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans (1)(2)(3)
|
$
|
3,888,585
|
$
|
231,114
|
5.94
|
%
|
$
|
3,552,941
|
$
|
169,950
|
4.78
|
%
|
||||||||||||
Loans held for sale
|
228
|
31
|
13.60
|
893
|
94
|
10.53
|
||||||||||||||||||
Securities:
|
||||||||||||||||||||||||
U.S. Treasury and agencies
|
855,300
|
17,369
|
2.03
|
1,022,511
|
14,699
|
1.44
|
||||||||||||||||||
Tax exempt state and political subdivisions (3)
|
105,158
|
3,568
|
3.39
|
119,118
|
3,795
|
3.19
|
||||||||||||||||||
Other securities
|
243,012
|
9,894
|
4.07
|
260,423
|
6,996
|
2.69
|
||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
10,841
|
759
|
7.00
|
12,388
|
603
|
4.87
|
||||||||||||||||||
Federal funds sold
|
256
|
9
|
3.52
|
414
|
15
|
3.62
|
||||||||||||||||||
Interest bearing deposits
|
138,646
|
6,968
|
5.03
|
158,563
|
2,484
|
1.57
|
||||||||||||||||||
Other investments
|
245
|
0
|
0.00
|
245
|
0
|
0.00
|
||||||||||||||||||
Investment in unconsolidated subsidiaries
|
1,857
|
129
|
6.95
|
1,849
|
62
|
3.35
|
||||||||||||||||||
Total earning assets
|
$
|
5,244,128
|
$
|
269,841
|
5.15
|
%
|
$
|
5,129,345
|
$
|
198,698
|
3.87
|
%
|
||||||||||||
Allowance for credit losses
|
(47,606
|
)
|
(43,081
|
)
|
||||||||||||||||||||
5,196,522
|
5,086,264
|
|||||||||||||||||||||||
Nonearning assets:
|
||||||||||||||||||||||||
Cash and due from banks
|
61,184
|
59,645
|
||||||||||||||||||||||
Premises and equipment and right of use assets, net
|
60,232
|
53,928
|
||||||||||||||||||||||
Other assets
|
254,203
|
238,859
|
||||||||||||||||||||||
Total assets
|
$
|
5,572,141
|
$
|
5,438,696
|
||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||
Savings and demand deposits
|
$
|
2,136,653
|
$
|
52,336
|
2.45
|
%
|
$
|
2,020,065
|
$
|
16,526
|
0.82
|
%
|
||||||||||||
Time deposits
|
1,071,584
|
28,831
|
2.69
|
1,027,726
|
7,542
|
0.73
|
||||||||||||||||||
Repurchase agreements and federal funds purchased
|
219,591
|
8,994
|
4.10
|
243,102
|
2,540
|
1.04
|
||||||||||||||||||
Advances from Federal Home Loan Bank
|
18,494
|
1,004
|
5.43
|
898
|
20
|
2.23
|
||||||||||||||||||
Long-term debt
|
64,351
|
4,257
|
6.62
|
57,841
|
1,943
|
3.36
|
||||||||||||||||||
Finance lease liability
|
3,469
|
118
|
3.40
|
1,589
|
69
|
4.34
|
||||||||||||||||||
Total interest bearing liabilities
|
$
|
3,514,142
|
$
|
95,540
|
2.72
|
%
|
$
|
3,351,221
|
$
|
28,640
|
0.85
|
%
|
||||||||||||
Noninterest bearing liabilities:
|
||||||||||||||||||||||||
Demand deposits
|
1,343,917
|
1,398,778
|
||||||||||||||||||||||
Other liabilities
|
50,418
|
46,274
|
||||||||||||||||||||||
Total liabilities
|
4,908,477
|
4,796,273
|
||||||||||||||||||||||
Shareholders’ equity
|
663,664
|
642,423
|
||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$
|
5,572,141
|
$
|
5,438,696
|
||||||||||||||||||||
Net interest income, tax equivalent
|
$
|
174,301
|
$
|
170,058
|
||||||||||||||||||||
Less tax equivalent interest income
|
1,191
|
956
|
||||||||||||||||||||||
Net interest income
|
$
|
173,110
|
$
|
169,102
|
||||||||||||||||||||
Net interest spread
|
2.43
|
%
|
3.02
|
%
|
||||||||||||||||||||
Benefit of interest free funding
|
0.89
|
0.30
|
||||||||||||||||||||||
Net interest margin
|
3.32
|
%
|
3.32
|
%
|
Total
Change
|
Change Due to
|
|||||||||||
(in thousands)
|
2023/2022
|
Volume
|
Rate
|
|||||||||
Interest income:
|
||||||||||||
Loans
|
$
|
61,164
|
$
|
17,147
|
$
|
44,017
|
||||||
Loans held for sale
|
(63
|
)
|
(55
|
)
|
(8
|
)
|
||||||
U.S. Treasury and agencies
|
2,670
|
(2,122
|
)
|
4,792
|
||||||||
Tax exempt state and political subdivisions
|
(227
|
)
|
(426
|
)
|
199
|
|||||||
Other securities
|
2,898
|
(440
|
)
|
3,338
|
||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
|
156
|
(68
|
)
|
224
|
||||||||
Federal funds sold
|
(6
|
)
|
(6
|
)
|
0
|
|||||||
Interest bearing deposits
|
4,484
|
(275
|
)
|
4,759
|
||||||||
Other investments
|
0
|
0
|
0
|
|||||||||
Investment in unconsolidated subsidiaries
|
67
|
0
|
67
|
|||||||||
Total interest income
|
71,143
|
13,755
|
57,388
|
|||||||||
Interest expense:
|
||||||||||||
Savings and demand deposits
|
35,810
|
1,007
|
34,803
|
|||||||||
Time deposits
|
21,289
|
335
|
20,954
|
|||||||||
Repurchase agreements and federal funds purchased
|
6,454
|
(223
|
)
|
6,677
|
||||||||
Advances from Federal Home Loan Bank
|
984
|
917
|
67
|
|||||||||
Long-term debt
|
2,314
|
241
|
2,073
|
|||||||||
Finance lease liability
|
49
|
67
|
(18
|
)
|
||||||||
Total interest expense
|
66,900
|
2,344
|
64,556
|
|||||||||
Net interest income
|
$
|
4,243
|
$
|
11,411
|
$
|
(7,168
|
)
|
(dollars in thousands)
Year Ended December 31
|
2023
|
2022
|
Percent Change
|
|||||||||
Components of net interest income:
|
||||||||||||
Income on earning assets
|
$
|
268,650
|
$
|
197,742
|
35.9
|
%
|
||||||
Expense on interest bearing liabilities
|
95,540
|
28,640
|
233.6
|
%
|
||||||||
Net interest income
|
173,110
|
169,102
|
2.4
|
%
|
||||||||
TEQ
|
1,191
|
956
|
24.6
|
%
|
||||||||
Net interest income, tax equivalent
|
$
|
174,301
|
$
|
170,058
|
2.5
|
%
|
||||||
Average yield and rates paid:
|
||||||||||||
Earning assets yield
|
5.15
|
%
|
3.87
|
%
|
33.1
|
%
|
||||||
Rate paid on interest bearing liabilities
|
2.72
|
%
|
0.85
|
%
|
220.0
|
%
|
||||||
Gross interest margin
|
2.43
|
%
|
3.02
|
%
|
(19.6
|
)%
|
||||||
Net interest margin
|
3.32
|
%
|
3.32
|
%
|
0.0
|
%
|
||||||
Average balances:
|
||||||||||||
Investment securities
|
$
|
1,203,470
|
$
|
1,402,052
|
(14.2
|
)%
|
||||||
Loans
|
$
|
3,888,585
|
$
|
3,552,941
|
9.4
|
%
|
||||||
Earning assets
|
$
|
5,244,128
|
$
|
5,129,345
|
2.2
|
%
|
||||||
Interest-bearing liabilities
|
$
|
3,514,142
|
$
|
3,351,221
|
4.9
|
%
|
(dollars in thousands)
Year Ended December 31
|
2023
|
2022
|
Percent
Change
|
|||||||||
Deposit service charges
|
$
|
29,935
|
$
|
29,049
|
3.0
|
%
|
||||||
Trust revenue
|
13,025
|
12,394
|
5.1
|
%
|
||||||||
Gains on sales of loans
|
395
|
1,525
|
(74.1
|
)%
|
||||||||
Loan related fees
|
3,792
|
6,185
|
(38.7
|
)%
|
||||||||
Bank owned life insurance revenue
|
3,517
|
2,708
|
29.8
|
%
|
||||||||
Brokerage revenue
|
1,473
|
1,846
|
(20.2
|
)%
|
||||||||
Other
|
5,522
|
4,209
|
31.2
|
%
|
||||||||
Total noninterest income
|
$
|
57,659
|
$
|
57,916
|
(0.4
|
)%
|
(dollars in thousands)
Year Ended December 31
|
2023
|
2022
|
Percent
Change
|
|||||||||
Salaries
|
$
|
51,283
|
$
|
48,934
|
4.8
|
%
|
||||||
Employee benefits
|
22,428
|
23,556
|
(4.8
|
)%
|
||||||||
Net occupancy and equipment
|
11,843
|
11,083
|
6.9
|
%
|
||||||||
Data processing
|
9,726
|
8,910
|
9.2
|
%
|
||||||||
Legal and professional fees
|
3,350
|
3,434
|
(2.4
|
)%
|
||||||||
Advertising and marketing
|
3,214
|
3,005
|
7.0
|
%
|
||||||||
Taxes other than property and payroll
|
1,706
|
1,570
|
8.7
|
%
|
||||||||
Net other real estate owned expense
|
350
|
456
|
(23.4
|
)%
|
||||||||
Other
|
21,490
|
20,123
|
6.8
|
%
|
||||||||
Total noninterest expense
|
$
|
125,390
|
$
|
121,071
|
3.6
|
%
|
(dollars in thousands)
|
December 31, 2023
|
|||||||||||||||||||
Loan Category
|
Balance
|
Variance from Prior Year
|
Net (Charge-Offs)/ Recoveries
|
Nonperforming
|
ACL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Hotel/motel
|
$
|
395,765
|
15.2
|
%
|
$
|
0
|
$
|
0
|
$
|
4,592
|
||||||||||
Commercial real estate residential
|
417,943
|
12.1
|
97
|
1,557
|
4,285
|
|||||||||||||||
Commercial real estate nonresidential
|
778,637
|
2.1
|
393
|
2,950
|
7,560
|
|||||||||||||||
Dealer floorplans
|
70,308
|
(9.3
|
)
|
0
|
0
|
659
|
||||||||||||||
Commercial other
|
321,082
|
2.8
|
(1,434
|
)
|
850
|
3,760
|
||||||||||||||
Total commercial
|
1,983,735
|
6.1
|
(944
|
)
|
5,357
|
20,856
|
||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate mortgage
|
937,524
|
13.6
|
(99
|
)
|
7,298
|
10,197
|
||||||||||||||
Home equity
|
147,036
|
22.0
|
(17
|
)
|
743
|
1,367
|
||||||||||||||
Total residential
|
1,084,560
|
14.7
|
(116
|
)
|
8,041
|
11,564
|
||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
159,106
|
1.0
|
(237
|
)
|
15
|
3,261
|
||||||||||||||
Consumer indirect
|
823,505
|
11.7
|
(1,952
|
)
|
555
|
13,862
|
||||||||||||||
Total consumer
|
982,611
|
9.8
|
(2,189
|
)
|
570
|
17,123
|
||||||||||||||
Total loans
|
$
|
4,050,906
|
9.2
|
%
|
$
|
(3,249
|
)
|
$
|
13,968
|
$
|
49,543
|
(dollars in thousands)
|
2023
|
2022
|
Percent
Change
|
|||||||||
Noninterest bearing deposits
|
$
|
1,260,690
|
$
|
1,394,915
|
(9.6
|
)%
|
||||||
Interest bearing deposits
|
||||||||||||
Interest checking
|
123,927
|
112,265
|
10.4
|
%
|
||||||||
Money market savings
|
1,525,537
|
1,348,809
|
13.1
|
%
|
||||||||
Savings accounts
|
535,063
|
654,380
|
(18.2
|
)%
|
||||||||
Time deposits
|
1,279,405
|
915,774
|
39.7
|
%
|
||||||||
Repurchase agreements
|
225,245
|
215,431
|
4.6
|
%
|
||||||||
Total interest bearing deposits and repurchase agreements
|
3,689,177
|
3,246,659
|
13.6
|
%
|
||||||||
Total deposits and repurchase agreements
|
$
|
4,949,867
|
$
|
4,641,574
|
6.6
|
%
|
(in thousands)
|
2023
|
2022
|
||||||
Deposits:
|
||||||||
Noninterest bearing deposits
|
$
|
1,343,917
|
$
|
1,398,778
|
||||
Interest bearing deposits
|
128,061
|
104,631
|
||||||
Money market accounts
|
1,407,611
|
1,248,067
|
||||||
Savings accounts
|
600,981
|
667,367
|
||||||
Certificates of deposit of $100,000 or more
|
572,959
|
556,849
|
||||||
Certificates of deposit < $100,000 and other time deposits
|
498,625
|
470,877
|
||||||
Total deposits
|
4,552,154
|
4,446,569
|
||||||
Other borrowed funds:
|
||||||||
Repurchase agreements and federal funds purchased
|
219,591
|
243,102
|
||||||
Advances from Federal Home Loan Bank
|
18,494
|
898
|
||||||
Long-term debt
|
64,351
|
57,841
|
||||||
Finance lease liability
|
3,469
|
1,589
|
||||||
Total other borrowed funds
|
305,905
|
303,430
|
||||||
Total deposits and other borrowed funds
|
$
|
4,858,059
|
$
|
4,749,999
|
Estimated Maturity at December 31, 2023
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total Fair Value
|
Amortized Cost
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
|||||||||||||||||||||||||||||||||
U.S. Treasury, government agencies, and government sponsored agency mortgage-backed securities
|
$
|
25,996
|
2.66
|
%
|
$
|
336,805
|
1.31
|
%
|
$
|
61,380
|
4.11
|
%
|
$
|
387,372
|
2.25
|
%
|
$
|
811,553
|
2.01
|
%
|
$
|
900,104
|
||||||||||||||||||||||
State and political subdivisions
|
3,782
|
3.66
|
22,458
|
2.90
|
100,655
|
2.12
|
138,050
|
2.49
|
264,945
|
2.40
|
313,147
|
|||||||||||||||||||||||||||||||||
Asset-backed securities
|
0
|
0.00
|
0
|
0.00
|
68,053
|
7.01
|
19,173
|
6.39
|
87,226
|
6.88
|
87,993
|
|||||||||||||||||||||||||||||||||
Total
|
$
|
29,778
|
2.79
|
%
|
$
|
359,263
|
1.41
|
%
|
$
|
230,088
|
4.10
|
%
|
$
|
544,595
|
2.46
|
%
|
$
|
1,163,724
|
2.47
|
%
|
$
|
1,301,244
|
Maturity at December 31, 2023
|
||||||||||||||||
(in thousands)
|
Within
one year |
After one
but within
five years
|
After
five years
|
Total
|
||||||||||||
Commercial secured by real estate and commercial other
|
$
|
225,512
|
$
|
163,087
|
$
|
1,423,460
|
$
|
1,812,059
|
||||||||
Commercial and real estate construction
|
70,070
|
23,270
|
193,066
|
286,406
|
||||||||||||
$
|
295,582
|
$
|
186,357
|
$
|
1,616,526
|
$
|
2,098,465
|
|||||||||
Rate sensitivity:
|
||||||||||||||||
Predetermined rate
|
$
|
52,585
|
$
|
86,552
|
$
|
73,797
|
$
|
212,934
|
||||||||
Adjustable rate
|
242,997
|
99,805
|
1,542,729
|
1,885,531
|
||||||||||||
$
|
295,582
|
$
|
186,357
|
$
|
1,616,526
|
$
|
2,098,465
|
(in thousands)
|
Certificates of Deposit
|
Other Time Deposits
|
Total
|
|||||||||
Three months or less
|
$
|
165,959
|
$
|
7,721
|
$
|
173,680
|
||||||
Over three through six months
|
246,052
|
24,859
|
270,911
|
|||||||||
Over six through twelve months
|
241,584
|
18,360
|
259,944
|
|||||||||
Over twelve through sixty months
|
50,627
|
11,529
|
62,156
|
|||||||||
Over sixty
|
0
|
0
|
0
|
|||||||||
$
|
704,222
|
$
|
62,469
|
$
|
766,691
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
11.50%
|
+300
|
8.89%
|
+200
|
6.29%
|
+100
|
3.65%
|
-100
|
(0.67)%
|
-200
|
(2.41)%
|
-300
|
(4.06)%
|
-400
|
(5.68)%
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
9.98%
|
+300
|
7.26%
|
+200
|
4.60%
|
+100
|
1.94%
|
-100
|
(1.95)%
|
-200
|
(3.92)%
|
-300
|
(5.96)%
|
-400
|
(7.91)%
|
Board Authorizations
|
Repurchases*
|
Shares Available for
Repurchase
|
||
Average Price ($)
|
# of Shares
|
|||
1998
|
500,000
|
-
|
0
|
|
1999
|
0
|
14.45
|
144,669
|
|
2000
|
1,000,000
|
10.25
|
763,470
|
|
2001
|
0
|
13.35
|
489,440
|
|
2002
|
0
|
17.71
|
396,316
|
|
2003
|
1,000,000
|
19.62
|
259,235
|
|
2004
|
0
|
23.14
|
60,500
|
|
2005
|
0
|
-
|
0
|
|
2006
|
0
|
-
|
0
|
|
2007
|
0
|
28.56
|
216,150
|
|
2008
|
0
|
25.53
|
102,850
|
|
2009-2019
|
0
|
-
|
0
|
|
2020
|
1,000,000
|
33.64
|
32,664
|
|
2021
|
0
|
-
|
0
|
|
2022
|
0
|
-
|
0
|
|
2023
|
0
|
-
|
0
|
|
Total
|
3,500,000
|
16.17
|
2,465,294
|
1,034,706
|
(dollars in thousands)
December 31
|
2023
|
2022
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$
|
58,833
|
$
|
51,306
|
||||
Interest bearing deposits
|
212,567
|
77,380
|
||||||
Cash and cash equivalents
|
271,400
|
128,686
|
||||||
Certificates of deposit in other banks
|
245
|
245
|
||||||
Debt securities available-for-sale at fair value (amortized cost of $1,301,244 and $1,430,605, respectively)
|
1,163,724
|
1,256,226
|
||||||
Equity securities at fair value
|
3,158
|
2,166
|
||||||
Loans held for sale
|
152
|
109
|
||||||
Loans
|
4,050,906
|
3,709,290
|
||||||
Allowance for credit losses |
(49,543
|
)
|
(45,981
|
)
|
||||
Net loans
|
4,001,363
|
3,663,309
|
||||||
Premises and equipment, net
|
45,311
|
42,633
|
||||||
Operating right-of-use assets
|
12,607
|
13,809
|
||||||
Finance right-of-use assets |
3,096 | 3,262 | ||||||
Federal Home Loan Bank stock
|
4,712
|
6,676
|
||||||
Federal Reserve Bank stock
|
4,887
|
4,887
|
||||||
Goodwill
|
65,490
|
65,490
|
||||||
Bank owned life insurance
|
101,461
|
92,746
|
||||||
Mortgage servicing rights
|
7,665
|
8,468
|
||||||
Other real estate owned
|
1,616
|
3,671
|
||||||
Deferred tax asset |
28,141 | 39,878 | ||||||
Accrued interest receivable
|
23,575
|
19,592
|
||||||
Other assets
|
31,093
|
28,463
|
||||||
Total assets
|
$
|
5,769,696
|
$
|
5,380,316
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$
|
1,260,690
|
$
|
1,394,915
|
||||
Interest bearing
|
3,463,932
|
3,031,228
|
||||||
Total deposits
|
4,724,622
|
4,426,143
|
||||||
Repurchase agreements
|
225,245
|
215,431
|
||||||
Federal funds purchased
|
500
|
500
|
||||||
Advances from Federal Home Loan Bank
|
334
|
355
|
||||||
Long-term debt
|
64,241
|
57,841
|
||||||
Operating lease liability
|
12,958
|
14,160
|
||||||
Finance lease liability
|
3,435
|
3,468
|
||||||
Accrued interest payable
|
7,389
|
2,237
|
||||||
Other liabilities
|
28,764
|
32,134
|
||||||
Total liabilities
|
5,067,488
|
4,752,269
|
||||||
Commitments and contingencies (notes 17 and 19)
|
- |
- |
||||||
Shareholders’ equity:
|
||||||||
Preferred stock, 300,000 shares authorized and unissued
|
-
|
-
|
||||||
Common stock, $5.00
par value, shares authorized 25,000,000; shares outstanding 2023 – 17,999,840; 2022 – 17,918,280
|
89,999
|
89,591
|
||||||
Capital surplus
|
231,130
|
229,012
|
||||||
Retained earnings
|
484,400
|
438,596
|
||||||
Accumulated other comprehensive loss, net of tax
|
(103,321
|
)
|
(129,152
|
)
|
||||
Total shareholders’ equity
|
702,208
|
628,047
|
||||||
Total liabilities and shareholders’ equity
|
$
|
5,769,696
|
$
|
5,380,316
|
(in thousands except per share data)
Year Ended December 31
|
2023
|
2022
|
2021
|
|||||||||
Interest income:
|
||||||||||||
Interest and fees on loans, including loans held for sale
|
$
|
230,844
|
$
|
169,885
|
$
|
160,198
|
||||||
Interest and dividends on securities:
|
||||||||||||
Taxable
|
27,263
|
21,695
|
13,981
|
|||||||||
Tax exempt
|
2,678
|
2,998
|
3,098
|
|||||||||
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
|
759
|
603
|
486
|
|||||||||
Interest on Federal Reserve Bank deposits
|
6,831
|
2,439
|
372
|
|||||||||
Other, including interest on federal funds sold
|
275
|
122
|
34
|
|||||||||
Total interest income
|
268,650
|
197,742
|
178,169
|
|||||||||
Interest expense:
|
||||||||||||
Interest on deposits
|
81,167
|
24,068
|
12,753
|
|||||||||
Interest on repurchase agreements and federal funds purchased
|
8,994
|
2,540
|
1,254
|
|||||||||
Interest on advances from Federal Home Loan Bank
|
1,004
|
20
|
0
|
|||||||||
Interest on long-term debt
|
4,375
|
2,012
|
1,083
|
|||||||||
Total interest expense
|
95,540
|
28,640
|
15,090
|
|||||||||
Net interest income
|
173,110
|
169,102
|
163,079
|
|||||||||
Provision for credit losses (recovery) |
6,811
|
4,905
|
(6,386
|
)
|
||||||||
Net interest income after provision for credit losses (recovery) |
166,299
|
164,197
|
169,465
|
|||||||||
Noninterest income:
|
||||||||||||
Deposit related fees
|
29,935
|
29,049
|
26,529
|
|||||||||
Gains on sales of loans, net
|
395
|
1,525
|
6,820
|
|||||||||
Trust and wealth management income
|
13,025
|
12,394
|
12,644
|
|||||||||
Loan related fees
|
3,792
|
6,185
|
5,578
|
|||||||||
Bank owned life insurance
|
3,517
|
2,708
|
2,844
|
|||||||||
Brokerage revenue
|
1,473
|
1,846
|
1,962
|
|||||||||
Securities gains (losses)
|
996
|
(168
|
)
|
(158
|
)
|
|||||||
Other noninterest income
|
4,526
|
4,377
|
4,244
|
|||||||||
Total noninterest income
|
57,659
|
57,916
|
60,463
|
|||||||||
Noninterest expense:
|
||||||||||||
Officer salaries and employee benefits
|
15,206
|
15,922
|
19,713
|
|||||||||
Other salaries and employee benefits
|
58,505
|
56,568
|
54,401
|
|||||||||
Occupancy, net
|
8,900
|
8,380
|
8,306
|
|||||||||
Equipment
|
2,943
|
2,703
|
2,548
|
|||||||||
Data processing
|
9,726
|
8,910
|
8,039
|
|||||||||
Bank franchise tax
|
1,649
|
1,528
|
1,705
|
|||||||||
Legal fees
|
1,131
|
1,159
|
1,160
|
|||||||||
Professional fees
|
2,219
|
2,275
|
2,039
|
|||||||||
Advertising and marketing
|
3,214
|
3,005
|
2,928
|
|||||||||
FDIC insurance
|
2,483
|
1,447
|
1,381
|
|||||||||
Other real estate owned provision and expense
|
350
|
456
|
1,401
|
|||||||||
Repossession expense
|
531
|
546
|
344
|
|||||||||
Amortization of limited partnership investments
|
2,638
|
2,853
|
3,352
|
|||||||||
Other noninterest expense
|
15,895
|
15,319
|
11,968
|
|||||||||
Total noninterest expense
|
125,390
|
121,071
|
119,285
|
|||||||||
Income before income taxes
|
98,568
|
101,042
|
110,643
|
|||||||||
Income taxes
|
20,564
|
19,228
|
22,704
|
|||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
87,939
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized holding gains (losses) on debt securities available-for-sale:
|
||||||||||||
Unrealized holding gains (losses) arising during the period
|
36,863
|
(168,060
|
)
|
(24,827
|
)
|
|||||||
Less: Reclassification adjustments for realized gains (losses) included in net income
|
4
|
(81
|
)
|
60
|
||||||||
Tax expense (benefit)
|
11,028
|
(43,675
|
)
|
(6,471
|
)
|
|||||||
Other comprehensive income (loss), net of tax
|
25,831
|
(124,304
|
)
|
(18,416
|
)
|
|||||||
Comprehensive income (loss)
|
$
|
103,835
|
$
|
(42,490
|
)
|
$
|
69,523
|
|||||
Basic earnings per share
|
$
|
4.36
|
$
|
4.59
|
$
|
4.94
|
||||||
Diluted earnings per share
|
$
|
4.36
|
$
|
4.58
|
$
|
4.94
|
||||||
Weighted average shares outstanding-basic
|
17,887
|
17,836
|
17,786
|
|||||||||
Weighted average shares outstanding-diluted
|
17,900
|
17,851
|
17,804
|
(in thousands except per share and share amounts)
|
Common
Shares
|
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss),
Net of Tax
|
Total
|
||||||||||||||||||
Balance, December 31, 2020
|
17,810,401
|
$
|
89,052
|
$
|
225,507
|
$
|
326,738
|
$
|
13,568
|
$
|
654,865
|
|||||||||||||
Net income
|
87,939
|
87,939
|
||||||||||||||||||||||
Other comprehensive income (loss)
|
(18,416
|
)
|
(18,416
|
)
|
||||||||||||||||||||
Cash dividends declared ($1.57 per share)
|
(27,927
|
)
|
(27,927
|
)
|
||||||||||||||||||||
Issuance of common stock
|
41,168
|
205
|
760
|
965
|
||||||||||||||||||||
Issuance of restricted stock
|
9,193
|
46
|
(46
|
)
|
0
|
|||||||||||||||||||
Vesting of restricted stock
|
(17,681
|
)
|
(88
|
)
|
88
|
0
|
||||||||||||||||||
Stock-based compensation
|
776
|
776
|
||||||||||||||||||||||
Balance, December 31, 2021
|
17,843,081
|
89,215
|
227,085
|
386,750
|
(4,848
|
)
|
698,202
|
|||||||||||||||||
Net income
|
81,814
|
81,814
|
||||||||||||||||||||||
Other comprehensive income (loss)
|
(124,304
|
)
|
(124,304
|
)
|
||||||||||||||||||||
Cash dividends declared ($1.68 per share)
|
(29,968
|
)
|
(29,968
|
)
|
||||||||||||||||||||
Issuance of common stock
|
54,125
|
271
|
770
|
1,041
|
||||||||||||||||||||
Issuance of restricted stock
|
50,438
|
252
|
(252
|
)
|
0
|
|||||||||||||||||||
Vesting of restricted stock |
(29,364 | ) | (147 | ) | 147 | 0 | ||||||||||||||||||
Stock-based compensation
|
1,262
|
1,262
|
||||||||||||||||||||||
Balance, December 31, 2022
|
17,918,280
|
89,591
|
229,012
|
438,596
|
(129,152
|
)
|
628,047
|
|||||||||||||||||
Net income |
78,004 | 78,004 | ||||||||||||||||||||||
Other comprehensive income (loss) |
25,831 | 25,831 | ||||||||||||||||||||||
Cash dividends declared ($1.80 per share) |
(32,200 | ) | (32,200 | ) | ||||||||||||||||||||
Issuance of common stock |
52,857 | 265 | 864 | 1,129 | ||||||||||||||||||||
Issuance of restricted stock |
52,865 | 264 | (264 | ) | 0 | |||||||||||||||||||
Vesting of restricted stock |
(23,372 | ) | (117 | ) | 117 | 0 | ||||||||||||||||||
Forfeiture of restricted stock
|
(790 | ) | (4 | ) | 4 | |||||||||||||||||||
Stock-based compensation |
1,397 | 1,397 | ||||||||||||||||||||||
Balance, December 31, 2023 | 17,999,840 | $ | 89,999 | $ | 231,130 | $ | 484,400 | $ | (103,321 | ) | $ | 702,208 |
(in thousands)
Year Ended December 31
|
2023
|
2022
|
2021
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
87,939
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
5,351
|
5,219
|
5,033
|
|||||||||
Deferred taxes
|
709
|
3,250
|
2,330
|
|||||||||
Stock-based compensation
|
1,576
|
1,366
|
850
|
|||||||||
Provision for credit losses (recovery) |
6,811
|
4,905
|
(6,386
|
)
|
||||||||
Write-downs of other real estate owned and other repossessed assets
|
211
|
285
|
864
|
|||||||||
Gains on sale of loans held for sale
|
(395
|
)
|
(1,525
|
)
|
(6,820
|
)
|
||||||
Securities gains (losses) |
(4
|
)
|
81
|
(60
|
)
|
|||||||
Fair value adjustment in equity securities
|
(992
|
)
|
87
|
218
|
||||||||
Gains on sale of assets, net
|
(408
|
)
|
(354
|
)
|
(165
|
)
|
||||||
Proceeds from sale of mortgage loans held for sale
|
15,203
|
65,974
|
307,843
|
|||||||||
Funding of mortgage loans held for sale
|
(14,851
|
)
|
(61,926
|
)
|
(280,396
|
)
|
||||||
Amortization of securities premiums and discounts, net
|
2,658
|
5,466
|
8,010
|
|||||||||
Change in cash surrender value of bank owned life insurance
|
(2,361
|
)
|
(1,650
|
)
|
(1,873
|
)
|
||||||
Payment of operating lease liabilities
|
(1,560
|
)
|
(1,773
|
)
|
(1,693
|
)
|
||||||
Mortgage servicing rights:
|
||||||||||||
Fair value adjustments
|
965
|
(1,069
|
)
|
(428
|
)
|
|||||||
New servicing assets created
|
(162
|
)
|
(625
|
)
|
(2,278
|
)
|
||||||
Changes in:
|
||||||||||||
Accrued interest receivable
|
(3,983
|
)
|
(4,177
|
)
|
403
|
|||||||
Other assets
|
(2,630
|
)
|
2,507
|
4,918
|
||||||||
Accrued interest payable
|
5,152
|
1,221
|
(227
|
)
|
||||||||
Other liabilities
|
(3,562
|
)
|
608
|
(2,387
|
)
|
|||||||
Net cash provided by operating activities
|
85,732
|
99,684
|
115,695
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Certificates of deposit in other banks:
|
||||||||||||
Purchase of certificates of deposit
|
(245
|
)
|
0
|
0
|
||||||||
Maturity of certificates of deposit
|
245
|
0
|
0
|
|||||||||
Securities available-for-sale (AFS):
|
||||||||||||
Purchase of AFS securities
|
(19,478
|
)
|
(179,627
|
)
|
(797,445
|
)
|
||||||
Proceeds from sales of AFS securities
|
21,529
|
11,462
|
1,080
|
|||||||||
Proceeds from prepayments, calls, and maturities of AFS securities
|
124,656
|
193,843
|
305,361
|
|||||||||
Change in loans, net
|
(344,217
|
)
|
(302,466
|
)
|
146,050
|
|||||||
Purchase of premises and equipment
|
(6,322
|
)
|
(6,218
|
)
|
(2,373
|
)
|
||||||
Proceeds from sale and retirement of premises and equipment
|
375
|
620
|
830
|
|||||||||
Redemption of stock by Federal Home Loan Bank
|
1,964
|
1,463
|
1,909
|
|||||||||
Proceeds from sale of other real estate owned and repossessed assets
|
1,295
|
988
|
2,819
|
|||||||||
Additional investment in other real estate owned and repossessed assets |
(47 | ) | (73 | ) | 0 |
|||||||
Additional investment in bank owned life insurance
|
(6,690
|
)
|
0
|
(17,181
|
)
|
|||||||
Proceeds from settlement of bank owned life insurance
|
336
|
1
|
330
|
|||||||||
Net cash used in investing activities
|
(226,599
|
)
|
(280,007
|
)
|
(358,620
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Change in deposits, net
|
298,479
|
81,851
|
328,210
|
|||||||||
Change in repurchase agreements and federal funds purchased, net
|
9,814
|
(55,657
|
)
|
(84,774
|
)
|
|||||||
Advances from Federal Home Loan Bank
|
225,000
|
45,000
|
0
|
|||||||||
Payments on advances from Federal Home Loan Bank
|
(225,021
|
)
|
(45,020
|
)
|
(20
|
)
|
||||||
Payment of finance lease liabilities
|
(33
|
)
|
(24
|
)
|
(19
|
)
|
||||||
Proceeds from long-term debt/other borrowings
|
6,563 | 0 | 0 | |||||||||
Repayment of long-term debt/other borrowings
|
(163
|
)
|
0
|
0
|
||||||||
Issuance of common stock
|
1,129
|
1,041
|
965
|
|||||||||
Dividends paid
|
(32,187
|
)
|
(29,938
|
)
|
(27,916
|
)
|
||||||
Net cash provided by (used in) financing activities
|
283,581
|
(2,747
|
)
|
216,446
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
142,714
|
(183,070
|
)
|
(26,479
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
128,686
|
311,756
|
338,235
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
271,400
|
$
|
128,686
|
$
|
311,756
|
||||||
Supplemental disclosures:
|
||||||||||||
Income taxes paid
|
$
|
20,728
|
$
|
16,293
|
$
|
19,485
|
||||||
Interest paid
|
90,388
|
27,419
|
15,316
|
|||||||||
Non-cash activities:
|
||||||||||||
Loans to facilitate the sale of other real estate owned and repossessed assets
|
1,306
|
1,124
|
1,733
|
|||||||||
Common stock dividends accrued, paid in subsequent quarter
|
291
|
278
|
248
|
|||||||||
Real estate and assets acquired in settlement of loans
|
658
|
2,433
|
1,200
|
|||||||||
Right-of-use assets obtained in exchange for new operating/finance lease liabilities
|
358 |
5,539 |
0 |
|
● |
Service charges on deposit accounts represent 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 either fee based and collected upon the settlement of the transaction or commission based and recognized when our
performance obligation is completed each month or quarter, which is generally the time that payment is received. 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.
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
381,268
|
$
|
121
|
$
|
(26,572
|
)
|
$
|
354,817
|
|||||||
State and political subdivisions
|
313,147
|
88
|
(48,290
|
)
|
264,945
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
518,836
|
36
|
(62,136
|
)
|
456,736
|
|||||||||||
Asset-backed securities
|
87,993
|
0
|
(767
|
)
|
87,226
|
|||||||||||
Total available-for-sale securities
|
$
|
1,301,244
|
$
|
245
|
$
|
(137,765
|
)
|
$
|
1,163,724
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
418,579
|
$
|
212
|
$
|
(36,859
|
)
|
$
|
381,932
|
|||||||
State and political subdivisions
|
326,746
|
32
|
(61,676
|
)
|
265,102
|
|||||||||||
U.S. government sponsored agency mortgage-backed securities
|
593,917
|
1
|
(73,833
|
)
|
520,085
|
|||||||||||
Asset-backed securities
|
91,363
|
0
|
(2,256
|
)
|
89,107
|
|||||||||||
Total available-for-sale securities
|
$
|
1,430,605
|
$
|
245
|
$
|
(174,624
|
)
|
$
|
1,256,226
|
Available-for-Sale
|
||||||||
(in thousands)
|
Amortized
Cost
|
Fair Value
|
||||||
Due in one year or less
|
$
|
20,103
|
$
|
20,052
|
||||
Due after one through five years
|
372,903
|
345,658
|
||||||
Due after five through ten years
|
133,727
|
116,001
|
||||||
Due after ten years
|
167,682
|
138,051
|
||||||
U.S. government sponsored agency mortgage-backed securities
|
518,836
|
456,736
|
||||||
Asset-backed securities
|
87,993
|
87,226
|
||||||
Total debt securities
|
$
|
1,301,244
|
$
|
1,163,724
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
3,761
|
$
|
(5
|
)
|
$
|
3,756
|
|||||
State and political subdivisions
|
16,154
|
(1,250
|
)
|
14,904
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
16,056
|
(289
|
)
|
15,767
|
||||||||
Asset-backed securities
|
0
|
0
|
0
|
|||||||||
Total <12 months temporarily impaired AFS securities
|
35,971
|
(1,544
|
)
|
34,427
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
361,038
|
(26,567
|
)
|
334,471
|
||||||||
State and political subdivisions
|
284,397
|
(47,040
|
)
|
237,357
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
500,763
|
(61,847
|
)
|
438,916
|
||||||||
Asset-backed securities
|
87,993
|
(767
|
)
|
87,226
|
||||||||
Total ≥12 months temporarily impaired AFS securities
|
1,234,191
|
(136,221
|
)
|
1,097,970
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
364,799
|
(26,572
|
)
|
338,227
|
||||||||
State and political subdivisions
|
300,551
|
(48,290
|
)
|
252,261
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
516,819
|
(62,136
|
)
|
454,683
|
||||||||
Asset-backed securities
|
87,993
|
(767
|
)
|
87,226
|
||||||||
Total temporarily impaired AFS securities
|
$
|
1,270,162
|
$
|
(137,765
|
)
|
$
|
1,132,397
|
(in thousands)
|
Amortized
Cost
|
Gross
Unrealized
Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$
|
144,305
|
$
|
(6,953
|
)
|
$
|
137,352
|
|||||
State and political subdivisions
|
94,277
|
(6,257
|
)
|
88,020
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
139,314
|
(6,883
|
)
|
132,431
|
||||||||
Asset-backed securities
|
38,882
|
(1,231
|
)
|
37,651
|
||||||||
Total <12 months temporarily impaired AFS securities
|
416,778
|
(21,324
|
)
|
395,454
|
||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
249,424
|
(29,906
|
)
|
219,518
|
||||||||
State and political subdivisions
|
225,019
|
(55,419
|
)
|
169,600
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
454,357
|
(66,950
|
)
|
387,407
|
||||||||
Asset-backed securities
|
52,480
|
(1,025
|
)
|
51,455
|
||||||||
Total ≥12 months temporarily impaired AFS securities
|
981,280
|
(153,300
|
)
|
827,980
|
||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
393,729
|
(36,859
|
)
|
356,870
|
||||||||
State and political subdivisions
|
319,296
|
(61,676
|
)
|
257,620
|
||||||||
U.S. government sponsored agency mortgage-backed securities
|
593,671
|
(73,833
|
)
|
519,838
|
||||||||
Asset-backed securities
|
91,362
|
(2,256
|
)
|
89,106
|
||||||||
Total temporarily impaired AFS securities
|
$
|
1,398,058
|
$
|
(174,624
|
)
|
$
|
1,223,434
|
(in thousands)
|
December 31
2023
|
December 31
2022
|
||||||
Hotel/motel
|
$
|
395,765
|
$
|
343,640
|
||||
Commercial real estate residential
|
417,943
|
372,914
|
||||||
Commercial real estate nonresidential
|
778,637
|
762,349
|
||||||
Dealer floorplans
|
70,308
|
77,533
|
||||||
Commercial other
|
321,082
|
312,422
|
||||||
Commercial loans
|
1,983,735
|
1,868,858
|
||||||
Real estate mortgage
|
937,524
|
824,996
|
||||||
Home equity lines
|
147,036
|
120,540
|
||||||
Residential loans
|
1,084,560
|
945,536
|
||||||
Consumer direct
|
159,106
|
157,504
|
||||||
Consumer indirect
|
823,505
|
737,392
|
||||||
Consumer loans
|
982,611
|
894,896
|
||||||
Loans and lease financing
|
$
|
4,050,906
|
$
|
3,709,290
|
(in thousands)
|
ACL Software
June 30, 2023
|
CTBI Internal
ACL Model
June 30, 2023
|
Change in Allocation
|
|||||||||
Hotel/motel
|
$
|
5,192
|
$
|
6,038
|
$
|
(846
|
)
|
|||||
Commercial real estate residential
|
3,749
|
4,669
|
(920
|
)
|
||||||||
Commercial real estate nonresidential
|
7,797
|
8,794
|
(997
|
)
|
||||||||
Dealer floorplans
|
1,157
|
1,719
|
(562
|
)
|
||||||||
Commercial other
|
6,176
|
4,547
|
1,629
|
|||||||||
Commercial loans reserve allocation
|
24,071
|
25,767
|
(1,696
|
)
|
||||||||
Real estate mortgage
|
7,884
|
8,443
|
(559
|
)
|
||||||||
Home equity lines
|
1,108
|
1,065
|
43
|
|||||||||
Residential loans reserve allocation
|
8,992
|
9,508
|
(516
|
)
|
||||||||
Consumer direct
|
2,563
|
1,673
|
890
|
|||||||||
Consumer indirect
|
12,392
|
10,959
|
1,433
|
|||||||||
Consumer loans reserve allocation
|
14,955
|
12,632
|
2,323
|
|||||||||
Loans and lease financing allowance for credit loss
|
$
|
48,018
|
47,907
|
$
|
111
|
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
|
Year Ended
December 31, 2022
|
||||||||||||||||||||
(in thousands)
|
Beginning Balance
|
Provision Charged to Expense
|
Losses
Charged Off
|
Recoveries
|
Ending Balance
|
|||||||||||||||
ACL
|
||||||||||||||||||||
Hotel/motel
|
$
|
5,080
|
$
|
307
|
$
|
(216
|
)
|
$
|
0
|
$
|
5,171
|
|||||||||
Commercial real estate residential
|
3,986
|
951
|
(92
|
)
|
49
|
4,894
|
||||||||||||||
Commercial real estate nonresidential
|
8,884
|
(154
|
)
|
(46
|
)
|
735
|
9,419
|
|||||||||||||
Dealer floorplans
|
1,436
|
340
|
0
|
0
|
1,776
|
|||||||||||||||
Commercial other
|
4,422
|
947
|
(1,082
|
)
|
998
|
5,285
|
||||||||||||||
Real estate mortgage
|
7,637
|
466
|
(223
|
)
|
52
|
7,932
|
||||||||||||||
Home equity
|
866
|
257
|
(37
|
)
|
20
|
1,106
|
||||||||||||||
Consumer direct
|
1,951
|
(210
|
)
|
(609
|
)
|
562
|
1,694
|
|||||||||||||
Consumer indirect
|
7,494
|
2,001
|
(3,041
|
)
|
2,250
|
8,704
|
||||||||||||||
Total
|
$
|
41,756
|
$
|
4,905
|
$
|
(5,346
|
)
|
$
|
4,666
|
$
|
45,981
|
|
• |
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
|
|
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
|
December 31, 2022
|
||||||||||||||||
(in thousands)
|
Nonaccrual Loans
with No ACL
|
Nonaccrual Loans
with ACL
|
90+ and Still
Accruing
|
Total
Nonperforming
Loans
|
||||||||||||
Hotel/motel
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||||
Commercial real estate residential
|
0
|
355
|
258
|
613
|
||||||||||||
Commercial real estate nonresidential
|
0
|
1,116
|
1,947
|
3,063
|
||||||||||||
Dealer floorplans | 0 | 0 | 0 | 0 | ||||||||||||
Commercial other
|
0
|
982
|
369
|
1,351
|
||||||||||||
Total commercial loans
|
0
|
2,453
|
2,574
|
5,027
|
||||||||||||
Real estate mortgage
|
0
|
4,069
|
4,929
|
8,998
|
||||||||||||
Home equity lines
|
0
|
291
|
487
|
778
|
||||||||||||
Total residential loans
|
0
|
4,360
|
5,416
|
9,776
|
||||||||||||
Consumer direct
|
0
|
0
|
41
|
41
|
||||||||||||
Consumer indirect
|
0
|
0
|
465
|
465
|
||||||||||||
Total consumer loans
|
0
|
0
|
506
|
506
|
||||||||||||
Loans and lease financing
|
$
|
0
|
$
|
6,813
|
$
|
8,496
|
$
|
15,309
|
|
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
|
December 31, 2022
|
||||||||||||||||||||||||
(in thousands)
|
30-59 Days
Past Due
|
60-89
Days Past
Due
|
90+ Days
Past Due
|
Total
Past Due
|
Current
|
Total Loans
|
||||||||||||||||||
Hotel/motel
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
343,640
|
$
|
343,640
|
||||||||||||
Commercial real estate residential
|
602
|
225
|
574
|
1,401
|
371,513
|
372,914
|
||||||||||||||||||
Commercial real estate nonresidential
|
2,549
|
395
|
2,611
|
5,555
|
756,794
|
762,349
|
||||||||||||||||||
Dealer floorplans
|
0
|
0
|
0
|
0
|
77,533
|
77,533
|
||||||||||||||||||
Commercial other
|
1,029
|
850
|
496
|
2,375
|
310,047
|
312,422
|
||||||||||||||||||
Total commercial loans
|
4,180
|
1,470
|
3,681
|
9,331
|
1,859,527
|
1,868,858
|
||||||||||||||||||
Real estate mortgage
|
869
|
3,402
|
7,067
|
11,338
|
813,658
|
824,996
|
||||||||||||||||||
Home equity lines
|
786
|
44
|
740
|
1,570
|
118,970
|
120,540
|
||||||||||||||||||
Total residential loans
|
1,655
|
3,446
|
7,807
|
12,908
|
932,628
|
945,536
|
||||||||||||||||||
Consumer direct
|
555
|
126
|
41
|
722
|
156,782
|
157,504
|
||||||||||||||||||
Consumer indirect
|
4,407
|
764
|
465
|
5,636
|
731,756
|
737,392
|
||||||||||||||||||
Total consumer loans
|
4,962
|
890
|
506
|
6,358
|
888,538
|
894,896
|
||||||||||||||||||
Loans and lease financing
|
$
|
10,797
|
$
|
5,806
|
$
|
11,994
|
$
|
28,597
|
$
|
3,680,693
|
$
|
3,709,290
|
|
➢ |
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.
|
|
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 | ) |
|
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
(in thousands)
December 31 |
2022 |
2021 |
2020
|
2019 | 2018 | Prior | Revolving Loans | Total | ||||||||||||||||||||||||
Hotel/motel
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
145,262
|
$
|
36,002
|
$
|
17,742
|
$
|
54,328
|
$
|
13,178
|
$
|
35,179
|
$
|
545
|
$
|
302,236
|
||||||||||||||||
Watch
|
7,921
|
8,996
|
5,523
|
3,453
|
0
|
13,555
|
0 |
39,448
|
||||||||||||||||||||||||
OAEM
|
0
|
0
|
0
|
0
|
0
|
1,956
|
0
|
1,956
|
||||||||||||||||||||||||
Substandard
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Doubtful
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Total hotel/motel
|
|
153,183
|
|
44,998
|
|
23,265
|
|
57,781
|
|
13,178
|
|
50,690
|
|
545
|
|
343,640
|
||||||||||||||||
Commercial real estate residential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
119,826
|
|
110,963
|
|
38,423
|
|
15,467
|
|
10,492
|
|
36,307
|
|
14,297
|
|
345,775
|
||||||||||||||||
Watch
|
1,474
|
898
|
1,675
|
848
|
2,136
|
7,015
|
152
|
14,198
|
||||||||||||||||||||||||
OAEM
|
0
|
0
|
0
|
39
|
0
|
0
|
29
|
68
|
||||||||||||||||||||||||
Substandard
|
182
|
4,289
|
1,878
|
346
|
3,639
|
2,539
|
0
|
12,873
|
||||||||||||||||||||||||
Doubtful
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Total commercial real estate residential
|
|
121,482
|
|
116,150
|
|
41,976
|
|
16,700
|
|
16,267
|
|
45,861
|
|
14,478
|
|
372,914
|
||||||||||||||||
Commercial real estate nonresidential
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
|
175,220
|
|
171,311
|
|
80,932
|
|
70,848
|
|
44,099
|
|
137,575
|
|
23,166
|
|
703,151
|
||||||||||||||||
Watch
|
3,331
|
5,765
|
10,090
|
2,178
|
1,962
|
10,022
|
1,550
|
34,898
|
||||||||||||||||||||||||
OAEM
|
19
|
0
|
0
|
0
|
0
|
90
|
0
|
109
|
||||||||||||||||||||||||
Substandard
|
1,939
|
2,537
|
4,877
|
3,135
|
508
|
10,865
|
25
|
23,886
|
||||||||||||||||||||||||
Doubtful
|
0
|
0
|
0
|
0
|
0
|
305
|
0
|
305
|
||||||||||||||||||||||||
Total commercial real estate nonresidential
|
|
180,509
|
|
179,613
|
|
95,899
|
|
76,161
|
|
46,569
|
|
158,857
|
|
24,741
|
|
762,349
|
||||||||||||||||
Dealer floorplans | ||||||||||||||||||||||||||||||||
Risk rating: |
Pass
|
0
|
0
|
0
|
0
|
0
|
0
|
77,153
|
77,153
|
||||||||||||||||||||||||
Watch
|
0
|
0
|
0
|
0
|
0
|
0
|
380
|
380
|
||||||||||||||||||||||||
OAEM
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Substandard
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Doubtful
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||||||||
Total dealer floorplans
|
0
|
0
|
0
|
0
|
0
|
0
|
77,533
|
77,533
|
||||||||||||||||||||||||
Commercial other
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
78,846
|
60,550
|
34,841
|
8,922
|
2,333
|
23,961
|
77,355
|
286,808
|
||||||||||||||||||||||||
Watch
|
1,622
|
393
|
604
|
217
|
159
|
780
|
6,402
|
10,177
|
||||||||||||||||||||||||
OAEM
|
30
|
0
|
0
|
0
|
0
|
0
|
30
|
60
|
||||||||||||||||||||||||
Substandard
|
6,090
|
5,489
|
885
|
356
|
143
|
758
|
952
|
14,673
|
||||||||||||||||||||||||
Doubtful
|
466
|
129
|
0
|
109
|
0
|
0
|
0
|
704
|
||||||||||||||||||||||||
Total commercial other
|
87,054
|
66,561
|
36,330
|
9,604
|
2,635
|
25,499
|
84,739
|
312,422
|
||||||||||||||||||||||||
Commercial loans
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
519,154
|
378,826
|
171,938
|
149,565
|
70,102
|
233,022
|
192,516
|
1,715,123
|
||||||||||||||||||||||||
Watch
|
14,348
|
16,052
|
17,892
|
6,696
|
4,257
|
31,372
|
8,484
|
99,101
|
||||||||||||||||||||||||
OAEM
|
49
|
0
|
0
|
39
|
0
|
2,046
|
59
|
2,193
|
||||||||||||||||||||||||
Substandard
|
8,211
|
12,315
|
7,640
|
3,837
|
4,290
|
14,162
|
977
|
51,432
|
||||||||||||||||||||||||
Doubtful
|
466
|
129
|
0
|
109
|
0
|
305
|
0
|
1,009
|
||||||||||||||||||||||||
Total commercial loans
|
$
|
542,228
|
$
|
407,322
|
$
|
197,470
|
$
|
160,246
|
$
|
78,649
|
$
|
280,907
|
$
|
202,036
|
$
|
1,868,858
|
(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 | ) | (20 | ) | 0 | (541 | ) | |||||||||||||||||
Consumer indirect loans
|
||||||||||||||||||||||||||||||||
Performing
|
359,049
|
251,086
|
109,231
|
69,319
|
23,767
|
10,498
|
0
|
822,950
|
||||||||||||||||||||||||
Nonperforming
|
133
|
223
|
157
|
11
|
22
|
9
|
0
|
555
|
||||||||||||||||||||||||
Total consumer indirect loans
|
359,182
|
251,309
|
109,388
|
69,330
|
23,789
|
10,507
|
0
|
823,505
|
||||||||||||||||||||||||
Total consumer indirect loans current period gross charge-offs
|
(541 | ) | (2,320 | ) | (1,688 | ) | (492 | ) | (121 | ) | (171 | ) | 0 | (5,333 | ) | |||||||||||||||||
Consumer loans
|
||||||||||||||||||||||||||||||||
Performing
|
422,735
|
285,808
|
135,481
|
84,879
|
30,718
|
22,420
|
0
|
982,041
|
||||||||||||||||||||||||
Nonperforming
|
133
|
227
|
168
|
11
|
22
|
9
|
0
|
570
|
||||||||||||||||||||||||
Total consumer loans
|
$
|
422,868
|
$
|
286,035
|
$
|
135,649
|
$
|
84,890
|
$
|
30,740
|
$
|
22,429
|
$
|
0
|
$
|
982,611
|
||||||||||||||||
Total consumer loans current period gross charge-offs
|
$ |
(606 | ) | $ |
(2,583 | ) | $ |
(1,817 | ) | $ |
(529 | ) | $ |
(148 | ) | $ |
(191 | ) | $ |
0 | $ |
(5,874 | ) |
(in thousands)
|
Term Loans Amortized Cost Basis by Origination Year
|
|||||||||||||||||||||||||||||||
December 31
|
2022
|
2021
|
2020
|
2019
|
2018
|
Prior
|
Revolving Loans
|
Total
|
||||||||||||||||||||||||
Home equity lines
|
||||||||||||||||||||||||||||||||
Performing
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
10,195
|
$
|
109,567
|
$
|
119,762
|
||||||||||||||||
Nonperforming
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
502
|
|
276
|
|
778
|
||||||||||||||||
Total home equity lines
|
|
0
|
|
0
|
|
0
|
|
0
|
|
0
|
|
10,697
|
|
109,843
|
|
120,540
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Mortgage loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Performing
|
|
176,736
|
|
177,469
|
|
132,795
|
|
62,415
|
|
30,473
|
|
236,110
|
|
0
|
|
815,998
|
||||||||||||||||
Nonperforming
|
|
0
|
|
282
|
|
98
|
|
791
|
|
422
|
|
7,405
|
|
0
|
|
8,998
|
||||||||||||||||
Total mortgage loans
|
|
176,736
|
|
177,751
|
|
132,893
|
|
63,206
|
|
30,895
|
|
243,515
|
|
0
|
|
824,996
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Residential loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Performing
|
|
176,736
|
|
177,469
|
|
132,795
|
|
62,415
|
|
30,473
|
|
246,305
|
|
109,567
|
|
935,760
|
||||||||||||||||
Nonperforming
|
|
0
|
|
282
|
|
98
|
|
791
|
|
422
|
|
7,907
|
|
276
|
|
9,776
|
||||||||||||||||
Total residential loans
|
$ |
176,736
|
$ |
177,751
|
$ |
132,893
|
$ |
63,206
|
$ |
30,895
|
$ |
254,212
|
$ |
109,843
|
$ |
945,536
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Consumer direct loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Performing
|
$ |
62,239
|
$ |
42,014
|
$ |
23,921
|
$ |
11,166
|
$ |
6,766
|
$ |
11,357
|
$ |
0
|
$ |
157,463
|
||||||||||||||||
Nonperforming
|
|
25
|
|
11
|
|
5
|
|
0
|
|
0
|
|
0
|
|
0
|
|
41
|
||||||||||||||||
Total consumer direct loans
|
|
62,264
|
|
42,025
|
|
23,926
|
|
11,166
|
|
6,766
|
|
11,357
|
|
0
|
|
157,504
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Consumer indirect loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Performing
|
|
371,079
|
|
168,513
|
|
116,267
|
|
45,748
|
|
26,247
|
|
9,073
|
|
0
|
|
736,927
|
||||||||||||||||
Nonperforming
|
|
65
|
|
251
|
|
96
|
|
30
|
|
1
|
|
22
|
|
0
|
|
465
|
||||||||||||||||
Total consumer indirect loans
|
|
371,144
|
|
168,764
|
|
116,363
|
|
45,778
|
|
26,248
|
|
9,095
|
|
0
|
|
737,392
|
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Consumer loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Performing
|
|
433,318
|
|
210,527
|
|
140,188
|
|
56,914
|
|
33,013
|
|
20,430
|
|
0
|
|
894,390
|
||||||||||||||||
Nonperforming
|
|
90
|
|
262
|
|
101
|
|
30
|
|
1
|
|
22
|
|
0
|
|
506
|
||||||||||||||||
Total consumer loans
|
$
|
433,408
|
$
|
210,789
|
$
|
140,289
|
$
|
56,944
|
$
|
33,014
|
$
|
20,452
|
$
|
0
|
$
|
894,896
|
|
December 31, 2023
|
|||||||||||
(in thousands)
|
Number of
Loans
|
Recorded
Investment
|
Specific
Reserve
|
|||||||||
Hotel/motel
|
3
|
$
|
6,810
|
$
|
0
|
|||||||
Commercial real estate residential
|
2
|
5,080
|
0
|
|||||||||
Commercial real estate nonresidential
|
9
|
21,637
|
250
|
|||||||||
Commercial other
|
2
|
5,658
|
0
|
|||||||||
Total collateral dependent loans
|
16
|
$
|
39,185
|
$
|
250
|
December 31, 2022
|
||||||||||||
(in thousands)
|
Number of
Loans
|
Recorded
Investment
|
Specific
Reserve
|
|||||||||
Hotel/motel
|
1
|
$
|
1,168
|
$
|
0
|
|||||||
Commercial real estate residential
|
4
|
7,786
|
0
|
|||||||||
Commercial real estate nonresidential
|
8
|
14,718
|
200
|
|||||||||
Commercial other
|
2
|
8,926
|
1,000
|
|||||||||
Total collateral dependent loans
|
15
|
$
|
32,598
|
$
|
1,200
|
|
Interest Rate Reduction
|
Term Extension
|
|||||||||||||||
(in thousands)
|
Amortized Cost at
December 31, 2023
|
% of total
|
Amortized Cost at
December 31, 2023
|
% of total
|
||||||||||||
Hotel/motel
|
$
|
0
|
0.00
|
%
|
$
|
0
|
0.00
|
%
|
||||||||
Commercial real estate residential
|
534
|
0.13
|
|
1,788
|
0.43
|
|
||||||||||
Commercial real estate nonresidential
|
4,504
|
0.58 |
|
5,342
|
0.69
|
|
||||||||||
Dealer floorplans
|
0
|
0.00
|
|
0
|
0.00
|
|
||||||||||
Commercial other
|
0
|
0.00
|
|
6,025
|
1.88
|
|
||||||||||
Commercial loans
|
5,038
|
0.25
|
|
13,155
|
0.66
|
|
||||||||||
Real estate mortgage
|
581
|
0.06
|
|
5,431
|
0.58
|
|
||||||||||
Home equity lines
|
0
|
0.00
|
|
246
|
0.17
|
|
||||||||||
Residential loans
|
581
|
0.05
|
|
5,677
|
0.52
|
|
||||||||||
Consumer direct
|
0
|
0.00
|
|
165
|
0.10
|
|
||||||||||
Consumer indirect
|
0
|
0.00
|
|
334
|
0.04
|
|
||||||||||
Consumer loans
|
0
|
0.00
|
|
499
|
0.05
|
|
||||||||||
Loans and lease financing
|
$
|
5,619
|
0.14
|
%
|
$
|
19,331
|
0.48 | % |
Combination – Term Extension
and Interest Rate Reduction
|
Payment Change
|
|||||||||||||||
(in thousands)
|
Amortized Cost at
December 31, 2023 |
% of total
|
Amortized Cost at
December 31, 2023
|
% of total
|
||||||||||||
Hotel/motel
|
$
|
0
|
0.00
|
%
|
$
|
1,955
|
0.49
|
%
|
||||||||
Commercial real estate residential
|
0
|
0.00
|
|
218
|
0.05
|
|
||||||||||
Commercial real estate nonresidential
|
0
|
0.00
|
|
0
|
0.00
|
|
||||||||||
Dealer floorplans
|
0
|
0.00
|
|
0
|
0.00
|
|
||||||||||
Commercial other
|
29
|
0.01
|
|
288
|
0.09
|
|
||||||||||
Commercial loans
|
29
|
0.00
|
|
2,461
|
0.01
|
|
||||||||||
Real estate mortgage
|
1,101
|
0.12
|
|
0
|
0.00
|
|
||||||||||
Home equity lines
|
125
|
0.09
|
|
42
|
0.03
|
|
||||||||||
Residential loans
|
1,226
|
0.11
|
|
42
|
0.00
|
|
||||||||||
Consumer direct
|
0
|
0.00
|
|
18
|
0.01
|
|
||||||||||
Consumer indirect
|
0
|
0.00
|
|
0
|
0.00
|
|
||||||||||
Consumer loans
|
0
|
0.00
|
|
18
|
0.00
|
|
||||||||||
Loans and lease financing
|
$
|
1,255
|
0.03
|
%
|
$
|
2,521
|
0.06
|
%
|
Loan Type
|
Interest Rate Reduction
Financial Impact
|
Term Extension
Financial Impact
|
||
Hotel/motel
|
||||
Commercial real estate residential
|
Reduced weighted-average contractual interest rate from 9.5%
to 7.8%
|
Added a weighted-average 0.5 years to life of
the loans
|
||
Commercial real estate nonresidential
|
Reduced weighted-average contractual interest rate from 9.5% to 7.5%
|
Added a weighted-average 0.1
years to life of the loans
|
||
Dealer floorplans
|
||||
Commercial other
|
Added a weighted-average 3.0 years to life of
the loans
|
|||
Real estate mortgage
|
Reduced weighted-average contractual interest rate from 7.0% to 4.4%
|
Added a weighted-average 2.8 years to life of
the loans
|
||
Home equity lines
|
|
Added a weighted-average 6.1
years to life of the loans
|
||
Consumer direct
|
Removed a weighted-average 0.8
years to life of the loans
|
|||
Consumer indirect
|
Added a weighted-average 0.3
years to life of the loans
|
Loan Type
|
Combination – Term Extension and
Interest Rate Reduction
Financial Impact |
Payment Changes
Financial Impact
|
||
Hotel/motel
|
Provided payment changes that will be added to the end of the original loan term | |||
Commercial real estate residential
|
|
Provided payment changes that will be added to the end of the original loan term |
||
Commercial real estate nonresidential
|
||||
Dealer floorplans
|
||||
Commercial other
|
Reduced weighted-average contractual interest rate from 12.8% to 11.3% and increased the weighted-average life by
2.9 years |
Provided payment changes that will be added to the end of the original loan term
|
||
Real estate mortgage
|
Reduced weighted-average contractual interest rate from 6.3%
to 5.8% and increased the weighted-average life by 12.2 years
|
|||
Home equity lines
|
Reduced weighted-average contractual interest rate from 9.4%
to 8.1% and increased the weighted-average life by 9.3 years
|
Provided payment changes that will be added to the end of the original loan term
|
||
Consumer direct
|
Provided payment changes that will be added to the end of the original loan term
|
|||
Consumer indirect |
Year Ended
December 31, 2022
|
||||||||||||||||||||
Pre-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification |
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
6
|
$
|
659
|
$
|
0
|
$
|
66
|
$
|
725
|
|||||||||||
Commercial real estate nonresidential
|
8
|
1,206
|
0
|
118
|
1,324
|
|||||||||||||||
Hotel/motel
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
22
|
12,812
|
0
|
66
|
12,878
|
|||||||||||||||
Total commercial loans
|
36
|
14,677
|
0
|
250
|
14,927
|
|||||||||||||||
Real estate mortgage
|
5
|
593
|
1,309
|
0
|
1,902
|
|||||||||||||||
Total residential loans
|
5
|
593
|
1,309
|
0
|
1,902
|
|||||||||||||||
Total troubled debt restructurings
|
41
|
$
|
15,270
|
$
|
1,309
|
$
|
250
|
$
|
16,829
|
Year Ended
December 31, 2022
|
||||||||||||||||||||
Post-Modification Outstanding Balance
|
||||||||||||||||||||
(in thousands)
|
Number of
Loans
|
Term
Modification
|
Combination
|
Other
|
Total
Modification
|
|||||||||||||||
Commercial real estate residential
|
6
|
$
|
659
|
$
|
0
|
$
|
66
|
$
|
725
|
|||||||||||
Commercial real estate nonresidential
|
8
|
1,342
|
0
|
118
|
1,460
|
|||||||||||||||
Hotel/motel
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||
Commercial other
|
22
|
12,811
|
0
|
66
|
12,877
|
|||||||||||||||
Total commercial loans
|
36
|
14,812
|
0
|
250
|
15,062
|
|||||||||||||||
Real estate mortgage
|
5
|
593
|
1,309
|
0
|
1,902
|
|||||||||||||||
Total residential loans
|
5
|
593
|
1,309
|
0
|
1,902
|
|||||||||||||||
Total troubled debt restructurings
|
41
|
$
|
15,405
|
$
|
1,309
|
$
|
250
|
$
|
16,964
|
Past Due Status (Amortized Cost Basis)
|
||||||||||||||||
Current
|
30-89 Days
|
90+ Days
|
Nonaccrual
|
|||||||||||||
Hotel/motel
|
$
|
1,955
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||||
Commercial real estate residential
|
2,128
|
412
|
0
|
0
|
||||||||||||
Commercial real estate nonresidential
|
9,846
|
0
|
0
|
0
|
||||||||||||
Dealer floorplans
|
0
|
0
|
0
|
0
|
||||||||||||
Commercial other
|
5,683
|
371
|
0
|
287
|
||||||||||||
Real estate mortgage
|
6,382
|
0
|
361
|
370
|
||||||||||||
Home equity lines
|
361
|
0
|
32
|
21
|
||||||||||||
Consumer direct
|
159
|
24
|
0
|
0
|
||||||||||||
Consumer indirect
|
303
|
31
|
0
|
0
|
||||||||||||
Total |
$
|
26,817
|
$
|
838
|
$
|
393
|
$
|
678
|
(in thousands)
|
Year Ended
December 31, 2022
|
|||||||
Number of Loans
|
Recorded Balance
|
|||||||
Residential:
|
||||||||
Real estate mortgage
|
2
|
$ |
751
|
|||||
Total defaulted restructured loans
|
2
|
$
|
751
|
(in thousands)
Year Ended December 31
|
2023
|
2022
|
2021
|
|||||||||
Net gain on sale of mortgage loans held for sale
|
$
|
395
|
$
|
1,525
|
$
|
6,820
|
||||||
Net loan servicing income:
|
||||||||||||
Servicing fees
|
2,080
|
2,226
|
2,058
|
|||||||||
Late fees
|
81
|
78
|
67
|
|||||||||
Ancillary fees
|
36
|
94
|
848
|
|||||||||
Fair value adjustments
|
(965
|
)
|
1,069
|
428
|
||||||||
Net loan servicing income
|
1,232
|
3,467
|
3,401
|
|||||||||
Mortgage banking income
|
$
|
1,627
|
$
|
4,992
|
$
|
10,221
|
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||
Fair value of MSRs, beginning of year
|
$
|
8,468
|
$
|
6,774
|
$
|
4,068
|
||||||
New servicing assets created
|
162
|
625
|
2,278
|
|||||||||
Change in fair value during the year due to:
|
||||||||||||
Time decay (1)
|
(430
|
)
|
(450
|
)
|
(259
|
)
|
||||||
Payoffs (2)
|
(347
|
)
|
(429
|
)
|
(587
|
)
|
||||||
Changes in valuation inputs or assumptions (3)
|
(188
|
)
|
1,948
|
1,274
|
||||||||
Fair value of MSRs, end of year
|
$
|
7,665
|
$
|
8,468
|
$
|
6,774
|
(1) |
Represents decrease in value due to regularly scheduled
loan principal payments and partial loan paydowns.
|
(2) |
Represents decrease in value due to loans that paid off
during the period.
|
(3) |
Represents change in value resulting from market-driven
changes in interest rates.
|
(in thousands)
|
2023
|
2022
|
||||||
Related party extensions of credit, beginning of year
|
$
|
42,067
|
$
|
45,022
|
||||
New loans and advances on lines of credit
|
980
|
1,813
|
||||||
Repayments
|
(7,502
|
)
|
(4,749
|
)
|
||||
Decrease due to changes in related parties
|
(230
|
)
|
(19
|
)
|
||||
Related party extensions of credit, end of year
|
$
|
35,315
|
$
|
42,067
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
Land and buildings
|
$
|
82,929
|
$
|
81,345
|
||||
Leasehold improvements
|
4,858
|
4,797
|
||||||
Furniture, fixtures, and equipment
|
39,695
|
43,531
|
||||||
Construction in progress
|
2,790
|
589
|
||||||
Total premises and equipment
|
130,272
|
130,262
|
||||||
Less accumulated depreciation and amortization
|
(84,961
|
)
|
(87,629
|
)
|
||||
Premises and equipment, net
|
$
|
45,311
|
$
|
42,633
|
(in thousands)
|
2023
|
2022
|
||||||
Beginning balance of other real estate owned
|
$
|
3,671
|
$
|
3,486
|
||||
New assets acquired
|
658
|
2,433
|
||||||
Capitalized costs |
47 | 73 | ||||||
Fair value adjustments
|
(211
|
)
|
(285
|
)
|
||||
Sale of assets
|
(2,549
|
)
|
(2,036
|
)
|
||||
Ending balance of other real estate owned
|
$
|
1,616
|
$
|
3,671
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
1-4 family
|
$
|
827
|
$
|
859
|
||||
Construction/land development/other
|
383
|
867
|
||||||
Multifamily
|
0
|
0
|
||||||
Non-farm/non-residential
|
406
|
1,945
|
||||||
Total foreclosed properties
|
$
|
1,616
|
$
|
3,671
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
Noninterest bearing deposits
|
$
|
1,260,690
|
$
|
1,394,915
|
||||
Interest bearing demand deposits
|
123,927
|
112,265
|
||||||
Money market deposits
|
1,525,537
|
1,348,809
|
||||||
Savings
|
535,063
|
654,380
|
||||||
Certificates of deposit and other time deposits of $100,000 or more
|
766,691
|
531,424
|
||||||
Certificates of deposit and other time deposits less than $100,000
|
512,714
|
384,350
|
||||||
Total deposits
|
$
|
4,724,622
|
$
|
4,426,143
|
Maturities by Period at December 31, 2023
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Certificates of deposit and other time deposits of $100,000 or more
|
$
|
766,691
|
$
|
704,535
|
$
|
39,134
|
$
|
5,503
|
$
|
4,022
|
$
|
13,497
|
$
|
0
|
||||||||||||||
Certificates of deposit and other time deposits less than $100,000
|
512,714
|
460,426
|
28,547
|
9,474
|
7,994
|
5,924
|
349
|
|||||||||||||||||||||
Total maturities
|
$
|
1,279,405
|
$
|
1,164,961
|
$
|
67,681
|
$
|
14,977
|
$
|
12,016
|
$
|
19,421
|
$
|
349
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
Repurchase agreements
|
$
|
225,245
|
$
|
215,431
|
||||
Federal funds purchased
|
500
|
500
|
||||||
Total short-term debt
|
$
|
225,745
|
$
|
215,931
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
Junior subordinated debentures, 7.23%,
due 6/1/37
|
$
|
57,841
|
$
|
57,841
|
||||
Loan related borrowings, 3.25%, due 9/17/44
|
6,400 | 0 | ||||||
Total long-term debt
|
$ | 64,241 | $ | 57,841 |
December 31, 2023
|
||||||||||||||||||||
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||||
(in thousands)
|
Overnight
and
Continuous
|
Up to
30 days
|
30-90 days
|
Greater
Than
90 days
|
Total
|
|||||||||||||||
Repurchase agreements and repurchase-to-maturity transactions:
|
||||||||||||||||||||
U.S. Treasury and government agencies
|
$
|
21,156
|
$
|
19
|
$
|
1,817
|
$
|
23,640
|
$
|
46,632
|
||||||||||
State and political subdivisions
|
98,053
|
481
|
5,962
|
3,219
|
107,715
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
17,538
|
0
|
41,521
|
9,269
|
68,328
|
|||||||||||||||
Asset-backed securities
|
2,570 | 0 | 0 | 0 | 2,570 | |||||||||||||||
Total
|
$
|
139,317
|
$
|
500
|
$
|
49,300
|
$
|
36,128
|
$
|
225,245
|
December 31, 2022
|
||||||||||||||||||||
Remaining Contractual Maturity of the Agreements
|
||||||||||||||||||||
(in thousands)
|
Overnight
and
Continuous
|
Up to
30 days
|
30-90 days
|
Greater
Than
90 days
|
Total
|
|||||||||||||||
Repurchase agreements and repurchase-to-maturity transactions:
|
||||||||||||||||||||
U.S. Treasury and government agencies
|
$
|
21,679
|
$
|
34
|
$
|
2,979
|
$
|
1,832
|
$
|
26,524
|
||||||||||
State and political subdivisions
|
96,627
|
466
|
9,634
|
2,140
|
108,867
|
|||||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
17,964
|
0
|
52,387
|
9,385
|
79,736
|
|||||||||||||||
Asset-backed securities
|
304 | 0 | 0 | 0 | 304 | |||||||||||||||
Total
|
$
|
136,574
|
$
|
500
|
$
|
65,000
|
$
|
13,357
|
$
|
215,431
|
(in thousands)
|
2023
|
2022
|
||||||
Monthly amortizing
|
$
|
334
|
$
|
355
|
||||
Total FHLB advances
|
$
|
334
|
$
|
355
|
Principal Payments Due by Period at December 31, 2023
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Outstanding advances, weighted average interest rate – 0.05%
|
$
|
334
|
$
|
22
|
$
|
20
|
$
|
21
|
$
|
20
|
$
|
21
|
$
|
230
|
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||
Current federal income tax expense
|
$
|
14,954
|
$
|
14,882
|
$
|
16,160
|
||||||
Current state income tax expense
|
4,901
|
1,096
|
4,214
|
|||||||||
Deferred federal income tax expense
|
382
|
194
|
1,138
|
|||||||||
Deferred state income tax expense
|
327 | 3,056 | 1,192 | |||||||||
Total income tax expense
|
$
|
20,564
|
$
|
19,228
|
$
|
22,704
|
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||||||||||||||
Computed at the statutory rate
|
$
|
20,699
|
21.00
|
%
|
$
|
21,219
|
21.00
|
%
|
$
|
23,235
|
21.00
|
%
|
||||||||||||
Adjustments resulting from:
|
||||||||||||||||||||||||
Tax-exempt interest
|
(637
|
)
|
(0.65
|
)
|
(717
|
)
|
(0.70
|
)
|
(690
|
)
|
(0.62
|
)
|
||||||||||||
Housing and new markets credits
|
(3,205
|
)
|
(3.25
|
)
|
(3,105
|
)
|
(3.07
|
)
|
(3,939
|
)
|
(3.56
|
)
|
||||||||||||
Bank owned life insurance
|
(496
|
)
|
(0.50
|
)
|
(367
|
)
|
(0.36
|
)
|
(382
|
)
|
(0.35
|
)
|
||||||||||||
ESOP dividend deduction
|
(259
|
)
|
(0.26
|
)
|
(240
|
)
|
(0.24
|
)
|
(233
|
)
|
(0.21
|
)
|
||||||||||||
Stock option exercises and restricted stock vesting
|
(8
|
)
|
(0.01
|
)
|
(1
|
)
|
0.00
|
25
|
0.02
|
|||||||||||||||
State income taxes
|
4,131
|
4.19
|
3,281
|
3.25
|
4,270
|
3.86
|
||||||||||||||||||
Split dollar life insurance
|
126
|
0.13
|
(184
|
)
|
(0.19
|
)
|
212
|
0.19
|
||||||||||||||||
Other
|
213
|
0.21
|
(658
|
)
|
(0.66
|
)
|
206
|
0.19
|
||||||||||||||||
Total
|
$
|
20,564
|
20.86
|
%
|
$
|
19,228
|
19.03
|
%
|
$
|
22,704
|
20.52
|
%
|
(in thousands)
|
2023
|
2022
|
||||||
Deferred tax assets:
|
||||||||
Allowance for credit losses
|
$
|
12,361
|
$
|
11,472
|
||||
Interest on nonaccrual loans
|
277
|
362
|
||||||
Accrued expenses
|
1,633
|
2,969
|
||||||
Unrealized losses on AFS securities
|
34,311 | 45,339 | ||||||
Allowance for other real estate owned
|
49
|
223
|
||||||
Lease liabilities
|
4,090
|
4,398
|
||||||
Other
|
790
|
485
|
||||||
Total deferred tax assets
|
53,511
|
65,248
|
||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
(14,927
|
)
|
(14,859
|
)
|
||||
FHLB stock dividends
|
(341
|
)
|
(827
|
)
|
||||
Loan fee income
|
(1,519
|
)
|
(1,136
|
)
|
||||
Mortgage servicing rights
|
(1,912
|
)
|
(2,113
|
)
|
||||
Limited partnership investments
|
(843
|
)
|
(710
|
)
|
||||
Right of use assets
|
(3,918
|
)
|
(4,259
|
)
|
||||
Other
|
(1,910
|
)
|
(1,466
|
)
|
||||
Total deferred tax liabilities
|
(25,370
|
)
|
(25,370
|
)
|
||||
Net deferred tax asset
|
$
|
28,141
|
$
|
39,878
|
Plan Category (shares in thousands)
|
Number of
Shares to Be
Issued Upon
Exercise
|
Weighted
Average Price
|
Shares
Available for
Future Issuance
|
|||||||||
Equity compensation plans approved by shareholders:
|
||||||||||||
Stock options
|
20
|
$
|
32.27
|
348
|
(a)
|
|||||||
Restricted stock
|
(c)
|
(b)
|
(a)
|
|||||||||
Performance units
|
(d)
|
(b)
|
(a)
|
|||||||||
Stock appreciation rights (“SARs”)
|
(e)
|
(b)
|
(a)
|
|||||||||
Total
|
348
|
(a) |
Under the 2015 Plan, 550,000 shares are authorized for issuance; 206,949
have been issued as of December 31, 2023. In January of 2016, 18,069 restricted stock shares were issued under the terms of the 2015 Plan pursuant to awards granted under the 2006 Plan. Additional shares will not be issued pursuant to awards
granted from prior plans.
|
(b) |
Not applicable.
|
(c) |
The maximum number of shares of
restricted stock that may be granted is 550,000 shares, and the maximum that may be granted to a participant during any calendar
year is 75,000 shares.
|
(d) |
No performance units payable in stock had been issued as of December 31, 2023. The maximum payment that can be made pursuant to performance units granted to any one participant in any calendar year is $1,000,000.
|
(e) |
No SARS have been issued. The maximum number of shares with respect to which SARs may be granted to a participant during any calendar year is 100,000 shares.
|
Plan Category
|
Shares Available
for Future
Issuance
|
|||
Shares available at January 1, 2023
|
400,221
|
|||
Stock option grants
|
0
|
|||
Restricted stock grants
|
(52,865
|
)
|
||
Forfeitures
|
790
|
|||
Shares available for future issuance at December 31,
2023
|
348,146
|
December 31
|
2023
|
2022
|
2021
|
|||||||||||||||||||||
Grants
|
Weighted
Average
Fair
Value at
Grant
|
Grants
|
Weighted
Average
Fair
Value at
Grant
|
Grants
|
Weighted
Average
Fair
Value at
Grant
|
|||||||||||||||||||
Outstanding at beginning of year
|
68,137
|
$
|
44.13
|
47,063
|
$
|
42.90
|
55,551
|
$
|
44.04
|
|||||||||||||||
Granted
|
52,865
|
43.10
|
50,438
|
45.15
|
9,193
|
38.70
|
||||||||||||||||||
Vested
|
(23,372
|
)
|
43.32
|
(29,364
|
)
|
43.92
|
(17,681
|
)
|
44.31
|
|||||||||||||||
Forfeited
|
(790
|
)
|
44.87
|
0
|
-
|
0
|
-
|
|||||||||||||||||
Outstanding at end of year
|
96,840
|
$
|
43.75
|
68,137
|
$
|
44.13
|
47,063
|
$
|
42.90
|
December 31
|
2023
|
2022
|
2021
|
|||||||||||||||||||||
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
Options
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
|||||||||||||||
Granted
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Exercised
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Forfeited/expired
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||||||||||||||
Outstanding at end of year
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
|||||||||||||||
Exercisable at end of year
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
20,000
|
$
|
32.27
|
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||
Options exercised
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||
Options exercisable
|
232
|
273
|
227
|
|||||||||
Outstanding options
|
232
|
273
|
227
|
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||
Unrecognized compensation cost of nonvested share-based compensation arrangements granted under the plan at
year-end
|
$
|
2,954
|
$
|
2,108
|
$
|
1,093
|
||||||
Total fair value of shares vested for the year
|
974
|
1,306
|
664
|
|||||||||
Cash received from option exercises under all share-based payment arrangements for the year
|
0
|
0
|
0
|
|||||||||
Tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements for
the year
|
0
|
0
|
0
|
(in thousands)
|
Year Ended
December 31, 2023
|
Year Ended
December 31, 2022
|
||||||
Finance lease cost:
|
||||||||
Amortization of right-of-use assets – finance leases
|
$
|
166
|
$
|
64
|
||||
Interest on lease liabilities – finance leases
|
118
|
70
|
||||||
Total finance lease cost
|
284
|
134
|
||||||
Short-term lease cost
|
92
|
85
|
||||||
Operating lease cost
|
1,888
|
1,838
|
||||||
Total lease cost
|
2,264 | 2,057 | ||||||
Sublease income
|
(273
|
)
|
(249
|
)
|
||||
Net lease cost
|
$
|
1,991
|
$
|
1,808
|
(in thousands)
|
Year Ended
December 31, 2023
|
Year Ended
December 31, 2022
|
||||||
Finance lease – operating cash flows
|
$
|
128
|
$
|
67
|
||||
Finance lease – financing cash flows
|
$
|
33
|
$
|
24
|
||||
Operating lease – operating cash flows (fixed payments)
|
$
|
1,889
|
$
|
1,760
|
||||
Operating lease – operating cash flows (liability reduction)
|
$
|
1,455
|
$
|
1,424
|
||||
New right-of-use assets – operating leases
|
$
|
358
|
$
|
3,469
|
||||
New right-of-use assets – finance leases
|
$ | 0 | $ | 2,070 | ||||
Weighted average lease term – financing leases
|
26.12 years
|
27.10 years
|
||||||
Weighted average lease term – operating leases
|
13.20 years
|
13.84 years
|
||||||
Weighted average discount rate – financing leases
|
4.90
|
%
|
4.90
|
%
|
||||
Weighted average discount rate – operating leases
|
3.56
|
%
|
3.55
|
%
|
(in thousands)
|
Operating Leases
|
Finance Leases
|
||||||
2024
|
$
|
1,877
|
$
|
154
|
||||
2025
|
1,782
|
159
|
||||||
2026
|
1,774
|
170
|
||||||
2027
|
1,656
|
174
|
||||||
2028
|
1,257
|
179
|
||||||
Thereafter
|
8,137
|
6,070
|
||||||
Total lease payments
|
16,483
|
6,906
|
||||||
Less imputed interest
|
(3,525
|
)
|
(3,471
|
)
|
||||
Total
|
$
|
12,958
|
$
|
3,435
|
(in thousands)
|
Operating Leases
|
Finance Leases
|
||||||
2023
|
$
|
1,878
|
$
|
151
|
||||
2024
|
1,853
|
155
|
||||||
2025
|
1,748
|
160
|
||||||
2026
|
1,731
|
171
|
||||||
2027
|
1,620
|
175
|
||||||
Thereafter
|
9,393
|
6,362
|
||||||
Total lease payments
|
18,223
|
7,174
|
||||||
Less imputed interest
|
(4,063
|
)
|
(3,706
|
)
|
||||
Total
|
$
|
14,160
|
$
|
3,468
|
(in thousands)
|
Fair Value Measurements at
December 31, 2023
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
|
$
|
354,817
|
$
|
336,285
|
$
|
18,532
|
$
|
0
|
||||||||
State and political subdivisions
|
264,945
|
0
|
264,945
|
0
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
456,736
|
0
|
456,736
|
0
|
||||||||||||
Asset-backed securities
|
87,226
|
0
|
87,226
|
0
|
||||||||||||
Equity securities at fair value
|
3,158
|
0
|
0
|
3,158
|
||||||||||||
Mortgage servicing rights
|
7,665
|
0
|
0
|
7,665
|
(in thousands)
|
Fair Value Measurements at
December 31, 2022
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
|
$
|
381,932
|
$
|
346,265
|
$
|
35,667
|
$
|
0
|
||||||||
State and political subdivisions
|
265,102
|
0
|
265,102
|
0
|
||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
520,085
|
0
|
520,085
|
0
|
||||||||||||
Asset-backed securities
|
89,107
|
0
|
89,107
|
0
|
||||||||||||
Equity securities at fair value
|
2,166
|
0
|
0
|
2,166
|
||||||||||||
Mortgage servicing rights
|
8,468
|
0
|
0
|
8,468
|
(in thousands)
|
2023
|
2022
|
||||||||||||||
Equity
Securities
at Fair
Value
|
Mortgage
Servicing
Rights
|
Equity
Securities
at Fair
Value
|
Mortgage
Servicing
Rights
|
|||||||||||||
Beginning balance
|
$
|
2,166
|
$
|
8,468
|
$
|
2,253
|
$
|
6,774
|
||||||||
Total unrealized gains (losses)
|
||||||||||||||||
Included in net income
|
992
|
(188
|
)
|
(87
|
)
|
1,948
|
||||||||||
Issues
|
0
|
162
|
0
|
625
|
||||||||||||
Settlements
|
0
|
(777
|
)
|
0
|
(879
|
)
|
||||||||||
Ending balance
|
$
|
3,158
|
$
|
7,665
|
$
|
2,166
|
$
|
8,468
|
||||||||
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
|
$
|
992
|
$
|
(188
|
)
|
$
|
(87
|
)
|
$
|
1,948
|
Noninterest Income
|
||||||||
(in thousands)
|
2023
|
2022
|
||||||
Total gains (losses)
|
$
|
27
|
$
|
982
|
(in thousands)
|
Fair Value Measurements at
December 31, 2023
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 – nonrecurring basis
|
||||||||||||||||
Collateral dependent loans
|
$
|
8,397
|
$
|
0
|
$
|
0
|
$
|
8,397
|
||||||||
Other real estate owned
|
205
|
0
|
0
|
205
|
(in thousands)
|
Fair Value Measurements at
December 31, 2022
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 – nonrecurring basis
|
||||||||||||||||
Collateral dependent loans
|
$
|
2,703
|
$
|
0
|
$
|
0
|
$
|
2,703
|
||||||||
Other real estate owned
|
570
|
0
|
0
|
570
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
Fair Value at
December 31,
2023
|
Valuation
Technique(s)
|
Unobservable Input
|
Range (Weighted
Average)
|
||||||
Equity securities at fair value
|
$
|
3,158
|
Discount cash flows, computer pricing model
|
Discount rate
|
15.0% - 25.0%
(20.0%)
|
||||
Conversion date
|
Dec 2028 – Dec 2032
(Dec 2030)
|
||||||||
Mortgage servicing rights
|
$
|
7,665
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
0.0% - 77.6%
(7.5%)
|
||||
Probability of default
|
0.0% - 66.7%
(1.0%)
|
||||||||
Discount rate
|
9.5% - 12.0%
(10.0%)
|
||||||||
Collateral-dependent loans
|
$
|
8,397
|
Market comparable properties
|
Marketability discount
|
10.9% - 19.6%
(12.2%)
|
||||
Other real estate owned
|
$
|
205
|
Market comparable properties
|
Comparability adjustments
|
10.0% - 23.9%
(17.5%)
|
(in thousands)
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
Fair Value at
December 31,
2022
|
Valuation
Technique(s)
|
Unobservable Input
|
Range (Weighted
Average)
|
||||||
Equity securities at fair value
|
$
|
2,166
|
Discount cash flows, computer pricing model
|
Discount rate
|
8.0% - 12.0%
(10.0%)
|
||||
Conversion date
|
Dec 2025 - Dec 2029
(Dec 2027)
|
||||||||
Mortgage servicing rights
|
$
|
8,468
|
Discount cash flows, computer pricing model
|
Constant prepayment rate
|
6.5% - 28.0%
(7.1%)
|
||||
Probability of default
|
0.0% - 100.0%
(1.2%)
|
||||||||
Discount rate
|
9.5% - 12.0%
(10.0%)
|
||||||||
Collateral-dependent loans
|
$
|
2,703
|
Market comparable properties
|
Marketability discount
|
52.0% - 52.0%
(52.0%)
|
||||
Other real estate owned
|
$
|
570
|
Market comparable properties
|
Comparability adjustments
|
10.0% - 30.6%
(10.9%)
|
(in thousands)
|
Fair Value Measurements
at December 31, 2023
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
|
$
|
271,400
|
$
|
271,400
|
$
|
0
|
$
|
0
|
||||||||
Certificates of deposit in other banks
|
245
|
0
|
245
|
0
|
||||||||||||
Debt securities available-for-sale
|
1,163,724
|
336,285
|
827,439
|
0
|
||||||||||||
Equity securities at fair value
|
3,158
|
0
|
0
|
3,158
|
||||||||||||
Loans held for sale
|
152
|
154
|
0
|
0
|
||||||||||||
Loans, net
|
4,001,363
|
0
|
0
|
3,745,477
|
||||||||||||
Federal Home Loan Bank stock
|
4,712
|
0
|
4,712
|
0
|
||||||||||||
Federal Reserve Bank stock
|
4,887
|
0
|
4,887
|
0
|
||||||||||||
Accrued interest receivable
|
23,575
|
0
|
23,575
|
0
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
4,724,622
|
$
|
1,260,690
|
$
|
3,480,806
|
$
|
0
|
||||||||
Repurchase agreements
|
225,245
|
0
|
0
|
225,187
|
||||||||||||
Federal funds purchased
|
500
|
0
|
500
|
0
|
||||||||||||
Advances from Federal Home Loan Bank
|
334
|
0
|
349
|
0
|
||||||||||||
Long-term debt
|
64,241
|
0
|
0
|
50,326
|
||||||||||||
Accrued interest payable
|
7,389
|
0
|
7,389
|
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
|
(in thousands)
|
Fair Value Measurements
at December 31, 2022
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
|
$
|
128,686
|
$
|
128,686
|
$
|
0
|
$
|
0
|
||||||||
Certificates of deposit in other banks
|
245
|
0
|
245
|
0
|
||||||||||||
Debt securities available-for-sale
|
1,256,226
|
346,265
|
909,961
|
0
|
||||||||||||
Equity securities at fair value
|
2,166
|
0
|
0
|
2,166
|
||||||||||||
Loans held for sale
|
109
|
112
|
0
|
0
|
||||||||||||
Loans, net
|
3,663,309
|
0
|
0
|
3,511,810
|
||||||||||||
Federal Home Loan Bank stock
|
6,676
|
0
|
6,676
|
0
|
||||||||||||
Federal Reserve Bank stock
|
4,887
|
0
|
4,887
|
0
|
||||||||||||
Accrued interest receivable
|
19,592
|
0
|
19,592
|
0
|
||||||||||||
Financial liabilities:
|
||||||||||||||||
Deposits
|
$
|
4,426,143
|
$
|
1,394,915
|
$
|
3,050,144
|
$
|
0
|
||||||||
Repurchase agreements
|
215,431
|
0
|
0
|
215,542
|
||||||||||||
Federal funds purchased
|
500
|
0
|
500
|
0
|
||||||||||||
Advances from Federal Home Loan Bank
|
355
|
0
|
380
|
0
|
||||||||||||
Long-term debt
|
57,841
|
0
|
0
|
55,860
|
||||||||||||
Accrued interest payable
|
2,237
|
0
|
2,237
|
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
|
(in thousands)
|
2023
|
2022
|
||||||
Standby letters of credit
|
$
|
38,861
|
$
|
34,721
|
||||
Commitments to extend credit
|
997,158
|
839,549
|
||||||
Total off-balance sheet financial instruments
|
$
|
1,036,019
|
$
|
874,270
|
Actual
|
For Capital Adequacy
Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2023:
|
||||||||||||||||
CBLR
|
$
|
797,672
|
13.69
|
%
|
$
|
524,234
|
9.00
|
%
|
As of December 31, 2022:
|
||||||||||||||||
CBLR
|
$
|
750,159
|
13.55
|
%
|
$
|
498,148
|
9.00
|
%
|
Actual
|
For Capital Adequacy
Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2023:
|
||||||||||||||||
CBLR
|
$
|
766,180
|
13.22
|
%
|
$
|
521,612
|
9.00
|
%
|
As of December 31, 2022:
|
||||||||||||||||
CBLR
|
$
|
714,727
|
12.98
|
%
|
$
|
495,727
|
9.00
|
%
|
(in thousands)
December 31
|
2023
|
2022
|
||||||
Assets:
|
||||||||
Cash on deposit
|
$
|
3,183
|
$
|
2,933
|
||||
Investment in and advances to subsidiaries
|
759,048
|
679,425
|
||||||
Goodwill
|
4,973
|
4,973
|
||||||
Premises and equipment, net
|
237
|
133
|
||||||
Deferred tax asset
|
434
|
260
|
||||||
Other assets
|
49
|
4,808
|
||||||
Total assets
|
$
|
767,924
|
$
|
692,532
|
||||
Liabilities and shareholders’ equity:
|
||||||||
Long-term debt
|
$
|
61,341
|
$
|
61,341
|
||||
Other liabilities
|
4,375
|
3,144
|
||||||
Total liabilities
|
65,716
|
64,485
|
||||||
Shareholders’ equity
|
702,208
|
628,047
|
||||||
Total liabilities and shareholders’ equity
|
$
|
767,924
|
$
|
692,532
|
(in thousands)
Year Ended December 31
|
2023
|
2022
|
2021
|
|||||||||
Income:
|
||||||||||||
Dividends from subsidiaries
|
$
|
29,931
|
$
|
31,544
|
$
|
33,319
|
||||||
Other income
|
1,400
|
710
|
482
|
|||||||||
Total income
|
31,331
|
32,254
|
33,801
|
|||||||||
Expenses:
|
||||||||||||
Interest expense
|
4,287
|
2,060
|
1,090
|
|||||||||
Depreciation expense
|
125
|
75
|
70
|
|||||||||
Other expenses
|
4,718
|
4,833
|
5,878
|
|||||||||
Total expenses
|
9,130
|
6,968
|
7,038
|
|||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
22,201
|
25,286
|
26,763
|
|||||||||
Income tax benefit
|
(2,012
|
)
|
(1,808
|
)
|
(1,700
|
)
|
||||||
Income before equity in undistributed income of subsidiaries
|
24,213
|
27,094
|
28,463
|
|||||||||
Equity in undistributed income of subsidiaries
|
53,791
|
54,720
|
59,476
|
|||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
87,939
|
||||||
Other comprehensive income (loss):
|
||||||||||||
Unrealized holding gains (losses) on debt securities available-for-sale:
|
||||||||||||
Unrealized holding gains (losses) arising during the period
|
36,863
|
(168,060
|
)
|
(24,827
|
)
|
|||||||
Less: Reclassification adjustments for realized gains (losses) included in net income
|
4
|
(81
|
)
|
60
|
||||||||
Tax expense (benefit)
|
11,028
|
(43,675
|
)
|
(6,471
|
)
|
|||||||
Other comprehensive income (loss), net of tax
|
25,831
|
(124,304
|
)
|
(18,416
|
)
|
|||||||
Comprehensive income (loss)
|
$
|
103,835
|
$
|
(42,490
|
)
|
$
|
69,523
|
(in thousands)
Year Ended December 31
|
2023
|
2022
|
2021
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
87,939
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
125
|
76
|
69
|
|||||||||
Equity in undistributed earnings of subsidiaries
|
(53,791
|
)
|
(54,720
|
)
|
(59,476
|
)
|
||||||
Deferred taxes
|
(174
|
)
|
630
|
3,759
|
||||||||
Stock-based compensation
|
1,576
|
1,366
|
850
|
|||||||||
Gains on sale of assets, net
|
(48 | ) | 0 | 0 | ||||||||
Changes in:
|
||||||||||||
Other assets
|
4,758
|
611
|
(5,403
|
)
|
||||||||
Other liabilities
|
1,039
|
(1,115
|
)
|
1,037
|
||||||||
Net cash provided by operating activities
|
31,489
|
28,662
|
28,775
|
|||||||||
Cash flows from investing activities:
|
||||||||||||
Net purchases of premises and equipment
|
(229
|
)
|
(95
|
)
|
(66
|
)
|
||||||
Proceeds from sale and retirement of premises and equipment
|
48 | 0 | 0 | |||||||||
Net cash used in investing activities
|
(181
|
)
|
(95
|
)
|
(66
|
)
|
||||||
Cash flows from financing activities:
|
||||||||||||
Issuance of common stock
|
1,129
|
1,041
|
965
|
|||||||||
Dividends paid
|
(32,187
|
)
|
(29,938
|
)
|
(27,916
|
)
|
||||||
Net cash used in financing activities
|
(31,058
|
)
|
(28,897
|
)
|
(26,951
|
)
|
||||||
Net increase (decrease) in cash and cash equivalents
|
250
|
(330
|
)
|
1,758
|
||||||||
Cash and cash equivalents at beginning of year
|
2,933
|
3,263
|
1,505
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
3,183
|
$
|
2,933
|
$
|
3,263
|
Year Ended December 31
(in thousands except per share data)
|
2023
|
2022
|
2021
|
|||||||||
Numerator:
|
||||||||||||
Net income
|
$
|
78,004
|
$
|
81,814
|
$
|
87,939
|
||||||
Denominator:
|
||||||||||||
Basic earnings per share:
|
||||||||||||
Weighted average shares
|
17,887
|
17,836
|
17,786
|
|||||||||
Diluted earnings per share:
|
||||||||||||
Dilutive effect of equity grants
|
13
|
15
|
18
|
|||||||||
Adjusted weighted average shares
|
17,900
|
17,851
|
17,804
|
|||||||||
Earnings per share:
|
||||||||||||
Basic earnings per share
|
$
|
4.36
|
$
|
4.59
|
$
|
4.94
|
||||||
Diluted earnings per share
|
4.36
|
4.58
|
4.94
|
Amounts Reclassified from AOCI
|
||||||||||||
Year Ended December 31
(in thousands)
|
2023
|
2022
|
2021
|
|||||||||
Affected line item in the statements of income
|
||||||||||||
Securities gains (losses)
|
$
|
4
|
$
|
(81
|
)
|
$
|
60
|
|||||
Tax expense (benefit)
|
1
|
(21
|
)
|
16
|
||||||||
Total reclassifications out of AOCI
|
$
|
3
|
$
|
(60
|
)
|
$
|
44
|
|
• |
Obtained an understanding of the Company’s process for establishing the ACL, including the qualitative and forecast factor adjustments of the ACL
|
|
• |
Evaluated the design and tested the operating effectiveness of internal controls relating to management’s determination of the ACL, including controls over:
|
|
o |
Management’s process for identification, basis for development and related adjustments; including reasonableness, of the qualitative factor components of the ACL
|
|
o |
Management’s review of reliability and accuracy of data used to calculate and estimate the various components of the ACL, including accuracy of the calculation
|
|
• |
Evaluated the reasonableness of management’s application of qualitative factor adjustments to historical loss rates in the ACL, including:
|
|
o |
Evaluated completeness and accuracy of the information utilized as a basis for the qualitative factors to third party or internal sources
|
|
o |
Evaluated the relevance of inputs in the calculation utilized as a basis for the qualitative factors
|
|
o |
Inspected overall trends in credit quality by comparing the Company’s year-over-year changes in qualitative factors and the ACL
|
|
• |
Evaluated the mathematical accuracy of formulas used in setting qualitative factors and application of the factors to loan segments
|
Item 9. |
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
•
|
Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
|
•
|
Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and
|
•
|
Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
|
February 28, 2024
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
||
Vice Chairman, President, and Chief Executive Officer
|
||
/s/ Kevin J. Stumbo
|
||
Kevin J. Stumbo
|
||
Executive Vice President, Chief Financial Officer,
and Treasurer
|
Item 10. |
Directors, Executive Officers, and Corporate Governance
|
Item 11. |
Executive Compensation
|
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
|
A |
|
B |
|
C |
|
|||||||
Plan Category
(shares in thousands)
|
Number of Common
Shares to be Issued
Upon Exercise
|
Weighted Average Price
|
Number of Securities
Available for Future
Issuance Under Equity
Compensation Plans
(excluding securities
reflected in Column A)
|
|||||||||
Equity compensation plans approved by shareholders:
|
20
|
$
|
32.27
|
348
|
||||||||
Stock options
|
||||||||||||
Equity compensation plans not approved by shareholders
|
0
|
--
|
0
|
|||||||||
Total
|
348
|
Item 13. |
Certain Relationships, Related Transactions, and Director Independence
|
Item 14. |
Principal Accountant Fees and Services
|
Exhibit No.
|
Description of Exhibits
|
3.1
|
Articles of Incorporation and all amendments thereto {incorporated by reference to registration statement no. 33-35138}
|
By-laws of CTBI as amended July 25, 1995 {incorporated by reference to registration statement no. 33-61891}
|
|
By-laws of CTBI as amended January 29, 2008 {incorporated by reference to current report on Form 8-K filed January 30, 2008}
|
|
Description of CTBI’s Securities Registered under Section 12 of the Securities Exchange Act of 1934 {incorporated herein by reference to Exhibit 4.1 of Form 10-K for the fiscal year ended
December 31, 2021 under SEC file no. 000-111-29}
|
|
Community Trust Bancorp, Inc. Employee Stock Ownership Plan (effective January 1, 2007) {incorporated herein by reference to Exhibit 10.1 of Form 10-K for the fiscal year ended December 31, 2006 under SEC file
no. 000-111-29}
|
|
Community Trust Bancorp, Inc. Savings and Employee Stock Ownership Plan (Amendment Number One effective January 1, 2002, Amendment Number Two effective January 1, 2004, Amendment Number Three effective March
28, 2005, and Amendment Number Four effective January 1, 2006) {incorporated herein by reference to Exhibit 10.2 of Form 10-K for the fiscal year ended December 31, 2006 under SEC file no. 000-111-29}
|
|
Community Trust Bancorp, Inc. 1998 Stock Option Plan {incorporated by reference to registration statement no. 333-74217}
|
|
Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated by reference to Proxy Statement dated March 24, 2006}
|
Form of Severance Agreement between Community Trust Bancorp, Inc. and executive officers (currently in effect with respect to twelve executive officers) {incorporated herein by reference to Exhibit 10.4 of Form
10-K for the fiscal year ended December 31, 2001 under SEC file no. 000-111-29}
|
|
Senior Management Incentive Compensation Plan (2024) {incorporated herein by reference to Exhibit 10.7 of current report on Form 8-K dated January 23, 2024}
|
|
Restricted Stock Agreement {incorporated herein by reference to Exhibit 10.8 of Form 10-K for the fiscal year ended December 31, 2011 under SEC file no. 000-111-29}
|
|
Employee Incentive Compensation Plan (2024) {incorporated herein by reference to Exhibit 10.9 of current report on Form 8-K dated January 23, 2024}
|
|
Amendment to the Community Trust Bancorp, Inc. 2006 Stock Ownership Incentive Plan {incorporated herein by reference to Exhibit 10.10 of current report on Form 8-K dated January 24, 2012}
|
|
Community Trust Bancorp, Inc. 2015 Stock Ownership Incentive Plan {incorporated herein by reference to registration statement no. 333-208053}
|
|
Community Trust Bancorp, Inc. 2022 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to Exhibit 10.22 of current report on Form 8-K dated January 25, 2022}
|
|
Amendment to Community Trust Bancorp, Inc. 2022 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to Exhibit 10.23 of current report on Form 8-K dated February 3, 2022}
|
|
Community Trust Bancorp, Inc. 2023 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to Exhibit 10.24 of current report on Form 8-K dated January 24, 2023}
|
|
Community Trust Bancorp, Inc. 2024 Executive Committee Long-Term Incentive Compensation Plan {incorporated herein by reference to Exhibit 10.21 of current report on Form 8-K dated January 23, 2024}
|
|
Subsidiaries of the Registrant
|
|
Consent of FORVIS, LLP, Independent Registered Public Accounting Firm
|
|
Certification of Principal Executive Officer (Mark A. Gooch, Vice Chairman, President, and Chief Executive Officer)
|
|
Certification of Principal Financial Officer (Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer)
|
|
Certification of Mark A. Gooch, Vice Chairman, President, and Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
Certification of Kevin J. Stumbo, Executive Vice President, Chief Financial Officer, and Treasurer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
Community Trust Bancorp, Inc. Policy for the Recovery of Erroneously Awarded Compensation
|
|
Community Trust Bancorp, Inc. Dividend Reinvestment Plan, as amended December 20, 2013 {incorporated by reference to registration statement no. 333-193011}
|
|
101.INS
|
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase
|
104
|
Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)
|
Item 16. |
Form 10-K Summary
|
|
COMMUNITY TRUST BANCORP, INC. | ||
February 28, 2024
|
By:
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
|||
Vice Chairman, President, and Chief Executive Officer
|
|||
/s/ Kevin J. Stumbo
|
|||
Kevin J. Stumbo
|
|||
Executive Vice President, Chief Financial Officer, and Treasurer
|
February 28, 2024
|
/s/ M. Lynn Parrish
|
Chairman of the Board
|
M. Lynn Parrish
|
||
February 28, 2024
|
/s/ Mark A. Gooch
|
Vice Chairman, President, and Chief Executive Officer
|
Mark A. Gooch
|
||
February 28, 2024
|
/s/ Kevin J. Stumbo
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
Kevin J. Stumbo
|
||
February 28, 2024
|
/s/ Charles J. Baird
|
Director
|
Charles J. Baird
|
||
February 28, 2024
|
/s/ Franklin H. Farris, Jr.
|
Director
|
Franklin H. Farris, Jr.
|
February 28, 2024
|
/s/ Eugenia “Crit” Luallen
|
Director
|
Eugenia “Crit” Luallen
|
||
February 28, 2024
|
/s/ Ina Michelle Matthews
|
Director
|
Ina Michelle Matthews
|
||
February 28, 2024
|
/s/ James E. McGhee, II
|
Director
|
James E. McGhee II
|
||
February 28, 2024
|
/s/ Franky Minnifield
|
Director
|
Franky Minnifield
|
||
February 28, 2024
|
/s/ Jefferson F. Sandlin
|
Director
|
Jefferson F. Sandlin
|
||
February 28, 2024
|
/s/ Anthony W. St. Charles
|
Director
|
Anthony W. St. Charles
|
||
February 28, 2024
|
/s/ Chad C. Street
|
Director
|
Chad C. Street
|
||
February 28, 2024
|
/s/ Lillian (Kay) Webb
|
Director
|
Lillian (Kay) Webb
|
Jurisdiction of
Organization
|
Shares Owned by
CTBI
|
Percent Voting
Stock Held by
CTBI
|
|
Community Trust Bank, Inc., Pikeville, Kentucky
|
Kentucky
|
285,000 Common
|
100%
|
Community Trust and Investment Company, Lexington, Kentucky
|
Kentucky
|
500 Common
|
100%
|
CTBI Preferred Capital Trust III
|
Delaware
|
1,841 Common Trust Securities
|
100%
|
Community Trust Asset Management
|
Kentucky
|
2,000 Common
|
100%
|
(1) |
I have reviewed this annual report on Form 10-K of Community Trust Bancorp, Inc.;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of CTBI as of, and for, the
periods presented in this report;
|
(4) |
CTBI’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) |
evaluated the effectiveness of CTBI’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
|
|
(d) |
disclosed in this report any change in CTBI’s internal control over financial reporting that occurred during CTBI’s most recent fiscal quarter (CTBI’s fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonable likely to materially affect, CTBI’s internal control over financial reporting; and
|
(5) |
CTBI’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI’s auditors and the audit committee of CTBI’s board of directors (or persons performing the
equivalent functions):
|
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI’s ability to record, process, summarize and report
financial information and
|
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI’s internal control over financial reporting.
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
|
Vice Chairman, President, and Chief Executive Officer
|
|
February 28, 2024
|
(1) |
I have reviewed this annual report on Form 10-K of Community Trust Bancorp, Inc.;
|
(2) |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
(3) |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of CTBI as of, and for, the
periods presented in this report;
|
(4) |
CTBI’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for CTBI and have:
|
|
(a) |
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to CTBI, including its consolidated subsidiaries, is
made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b) |
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c) |
evaluated the effectiveness of CTBI’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report
based on such evaluation; and
|
|
(d) |
disclosed in this report any change in CTBI’s internal control over financial reporting that occurred during CTBI’s most recent fiscal quarter (CTBI’s fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonable likely to materially affect, CTBI’s internal control over financial reporting; and
|
(5) |
CTBI’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to CTBI’s auditors and the audit committee of CTBI’s board of directors (or persons performing the
equivalent functions):
|
|
(a) |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect CTBI’s ability to record, process, summarize and report
financial information and
|
|
(b) |
any fraud, whether or not material, that involves management or other employees who have a significant role in CTBI’s internal control over financial reporting.
|
/s/ Kevin J. Stumbo
|
|
Kevin J. Stumbo
|
|
Executive Vice President, Chief Financial Officer, and Treasurer
|
|
February 28, 2024
|
/s/ Mark A. Gooch
|
|
Mark A. Gooch
|
|
Vice Chairman, President, and Chief Executive Officer
|
|
February 28, 2024
|
/s/ Kevin J. Stumbo
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Kevin J. Stumbo
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Executive Vice President, Chief Financial Officer, and Treasurer
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February 28, 2024
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A. |
OVERVIEW
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B. |
RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
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(1) |
In the event of an Accounting Restatement, the Company will reasonably promptly recover the Erroneously Awarded Compensation Received in accordance with Nasdaq Rules and Rule 10D-1 as follows:
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(i) |
After an Accounting Restatement, the Compensation Committee (if composed entirely of independent directors, or in the absence of such a committee, a majority of independent directors serving on the Board) (the “Committee”) shall determine the amount of any Erroneously Awarded Compensation Received by each Executive Officer and shall promptly notify each Executive Officer with a written notice containing the
amount of any Erroneously Awarded Compensation and a demand for repayment or return of such compensation, as applicable.
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a. |
For Incentive-based Compensation based on (or derived from) the Company’s stock price or total shareholder return, where the amount of Erroneously Awarded Compensation is not subject to mathematical recalculation directly from the
information in the applicable Accounting Restatement:
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i. |
The amount to be repaid or returned shall be determined by the Committee based on a reasonable estimate of the effect of the Accounting Restatement on the Company’s stock price or total shareholder return upon which the Incentive-based
Compensation was Received; and
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ii. |
The Company shall maintain documentation of the determination of such reasonable estimate and provide the relevant documentation as required to the Nasdaq.
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(ii) |
The Committee shall have discretion to determine the appropriate means of recovering Erroneously Awarded Compensation based on the particular facts and circumstances.8 Notwithstanding the foregoing, except as
set forth in Section B(2) below, in no event may the Company accept an amount that is less than the amount of Erroneously Awarded Compensation in satisfaction of an Executive Officer’s obligations hereunder.
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(iii) |
To the extent that the Executive Officer has already reimbursed the Company for any Erroneously Awarded Compensation Received under any duplicative recovery obligations established by the Company or applicable law, it shall be
appropriate for any such reimbursed amount to be credited to the amount of Erroneously Awarded Compensation that is subject to recovery under this Policy. To the extent that an Executive Officer fails to repay all
Erroneously Awarded Compensation to the Company when due, the Company shall take all actions reasonable and appropriate to recover such Erroneously Awarded Compensation from the applicable Executive Officer. The applicable Executive Officer
shall be required to reimburse the Company for any and all expenses reasonably incurred (including legal fees) by the Company in recovering such Erroneously Awarded Compensation in accordance with the immediately preceding sentence.
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(2) |
Notwithstanding anything herein to the contrary, the Company shall not be required to take the actions contemplated by Section B(1) above if the Committee (which, as specified above, is composed entirely of independent directors or in
the absence of such a committee, a majority of the independent directors serving on the Board) determines that recovery would be impracticable and either of the following conditions are met:
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(i) |
The Committee has determined that the direct expenses paid to a third party to assist in enforcing the Policy would exceed the amount to be recovered. Before making this determination, the Company must make a reasonable attempt to
recover the Erroneously Awarded Compensation, documented such attempt(s) and provided such documentation; or
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(ii) |
Recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company, to fail to meet the requirements of Section 401(a)(13) or Section 411(a) of the Internal
Revenue Code of 1986, as amended, and regulations thereunder.
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C. |
DISCLOSURE REQUIREMENTS
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D. |
PROHIBITION OF INDEMNIFICATION
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E. |
ADMINISTRATION AND INTERPRETATION
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F. |
AMENDMENT; TERMINATION
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G. |
OTHER RECOVERY RIGHTS
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H. |
DEFINITIONS
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(1) |
“Accounting Restatement” means an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws,
including any required accounting restatement to correct an error in previously issued financial statements that is material to the previously issued financial statements (a “Big R” restatement), or that would result in a material
misstatement if the error were corrected in the current period or left uncorrected in the current period (a “little r” restatement).
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(2) |
“Clawback Eligible Incentive Compensation” means all Incentive-based Compensation Received by an Executive Officer (i) on or after the effective date
of the applicable Nasdaq rules, (ii) after beginning service as an Executive Officer, (iii) who served as an Executive Officer at any time during the applicable performance period relating to any Incentive-based Compensation (whether or not
such Executive Officer is serving at the time the Erroneously Awarded Compensation is required to be repaid to the Company), (iv) while the Company has a class of securities listed on a national securities exchange or a national securities
association, and (v) during the applicable Clawback Period (as defined below).
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(1) |
“Erroneously Awarded Compensation” means, with respect to each Executive Officer in connection with an Accounting Restatement, the amount of Clawback Eligible Incentive
Compensation that exceeds the amount of Incentive-based Compensation that otherwise would have been Received had it been determined based on the restated amounts, computed without regard to any taxes paid.16
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(2) |
“Executive Officer” means each individual who is currently or was previously designated as an “officer” of the Company as defined in Rule 16a-1(f) under the Exchange Act. For
the avoidance of doubt, the identification of an executive officer for purposes of this Policy shall include each executive officer who is or was identified pursuant to Item 401(b) of Regulation S-K or Item 6.A of Form 20-F, as applicable,
as well as the principal financial officer and principal accounting officer (or, if there is no principal accounting officer, the controller).
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(3) |
“Financial Reporting Measures” means measures that are determined and presented in accordance with the accounting principles used in preparing the Company’s financial
statements, and all other measures that are derived wholly or in part from such measures. Stock price and total shareholder return (and any measures that are derived wholly or in part from stock price or total shareholder return) shall, for
purposes of this Policy, be considered Financial Reporting Measures. For the avoidance of doubt, a Financial Reporting Measure need not be presented in the Company’s financial statements or included in a filing with the SEC.
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(4) |
“Incentive-based Compensation” means any compensation that is granted, earned or vested based wholly or in part upon the attainment of a Financial Reporting Measure.
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(5) |
“Nasdaq” means The Nasdaq Stock Market.
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(6) |
“Received” means, with respect to any Incentive-based Compensation, actual or deemed receipt, and Incentive-based Compensation shall be deemed received in the Company’s fiscal
period during which the Financial Reporting Measure specified in the Incentive-based Compensation award is attained, even if the payment or grant of the Incentive-based Compensation to the Executive Officer occurs after the end of that
period.
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(7) |
“Restatement Date” means the earlier to occur of (i) the date the Board, a committee of the Board or the officers of the Company authorized to take such action if Board action
is not required, concludes, or reasonably should have concluded, that the Company is required to prepare an Accounting Restatement, or (ii) the date a court, regulator or other legally authorized body directs the Company to prepare an
Accounting Restatement.
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