[X]
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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
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For the fiscal year ended December 31, 2011
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Or
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[ ]
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
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For the transition period from _____________ to _____________
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Kentucky
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61-0979818
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(State or other jurisdiction of incorporation or organization)
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IRS Employer Identification No.
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346 North Mayo Trail
Pikeville, Kentucky
(address of principal executive offices)
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41501
(Zip Code)
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Yes
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No
ü
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Yes
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No
ü
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Yes
ü
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No
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Yes
ü
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No
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Large accelerated filer
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Accelerated filer
ü
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Non-accelerated filer
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Smaller reporting company
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(Do not check if a smaller reporting company)
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Yes
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No
ü
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Document
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Form 10-K
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(1) Proxy statement for the annual meeting of shareholders to be held April 24, 2012
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Part III
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♦
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Broadened the base for FDIC insurance assessments, eliminated the ceiling and increased the size of the floor of the Deposit Insurance Fund, and offset the impact of the minimum floor on institutions with less than $10 billion in assets. Assessments are now based on the average consolidated total assets less tangible equity capital of a financial institution.
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♦
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Removed the federal prohibition on payment of interest on demand deposits, thereby permitting businesses to have interest bearing checking accounts.
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♦
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Require new capital regulations which call for higher levels of capital. The same leverage and risk based capital requirements that apply to depository institutions now apply to holding companies. New issuances of trust preferred securities are no longer eligible to qualify as Tier 1 capital. However, CTBI’s currently outstanding trust preferred securities are grandfathered and are still considered in Tier 1 capital under the regulations. Under Dodd-Frank, and previously under Federal Reserve policy, we are required to act as a source of financial strength for our bank subsidiary and to commit sufficient resources to support it.
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♦
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Created a new agency, the Consumer Financial Protection Bureau (Bureau), responsible for the implementation of federal consumer protection laws. The Bureau has broad rule-making authority for a wide range of consumer protection laws that apply to all banks, including the authority to prohibit “unfair, deceptive or abusive” acts and practices. The term “abusive” is relatively new and untested, and we cannot predict how it will be interpreted and enforced. Although insured depository institutions with assets of $10 billion or less (such as CTBI) will continue to be supervised and examined by their primary federal regulators, rather than the Bureau, with respect to compliance with federal consumer protection laws, any change in regulatory environment may have a negative impact on all financial institutions. In February 2012, the Bureau announced that it was launching an inquiry into industry checking account overdraft programs to determine how these practices are impacting consumers. The full reach and the impact of the Bureau’s inquiries and rulemaking powers on the operations of financial institutions are currently unknown.
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♦
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Permanently increased the maximum amount of deposit insurance for banks, savings institutions and credit unions to $250,000 per depositor, retroactive to January 1, 2008, with noninterest bearing transaction accounts and IOLTA accounts having unlimited deposit insurance through December 31, 2012.
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♦
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Increased the authority of the Federal Reserve Board to examine CTBI and its non-bank subsidiaries and gave the Federal Reserve Board the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer. The Federal Reserve Board capped fees at 12 cents, subject to adjustment for fraud prevention costs. Although this requirement does not apply to CTBI, it may impact our ability to generate revenue at the same level as we have in the past.
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♦
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Restrict proprietary trading by banks, bank holding companies and others, and their acquisition and retention of ownership interests in and sponsorship of hedge funds and private equity funds, subject to an exception allowing a bank to organize and offer hedge funds and private equity funds to customers if certain conditions are met, including, among others, a requirement that the bank limit its ownership interest in any single fund to 3%, and its aggregate investment in all funds to 3%, of Tier 1 capital, with no director or employee of the bank holding an ownership interest in the fund unless he or she provides services directly to the funds.
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♦
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Require publicly traded companies to give stockholders a non-binding vote on executive compensation and so-called "golden parachute" payments in mergers and acquisitions. The legislation also directs the federal banking regulators to issue rules prohibiting incentive compensation that encourages inappropriate risks.
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♦
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Imposed new restrictions related to mortgage lending, such as new minimum underwriting standards, requiring certain loan provision qualifications, limitations on mortgage terms, and additional disclosures to mortgage borrowers and prohibits certain yield-spread compensation to mortgage originators.
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♦
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Permits banks to establish de novo interstate branches at a location where a bank based in that state could establish a branch, and requires banks and bank holding companies to be well-capitalized and well-managed in order to acquire banks outside their home state.
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♦
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Clients may not want, need, or qualify for our products and services;
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♦
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Borrowers may not be able to repay their loans;
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♦
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The value of the collateral securing our loans to borrowers may decline; and
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♦
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The quality of our loan portfolio may decline.
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♦
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The rate of inflation;
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♦
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The rate of economic growth;
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♦
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Employment levels;
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♦
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Monetary policies; and
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♦
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Instability in domestic and foreign financial markets.
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♦
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The length and severity of downturns in the local economies in which we operate or the national economy;
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♦
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The length and severity of downturns in one or more of the business sectors in which our customers operate, particularly the automobile, hotel/motel, coal, and residential development industries; or
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♦
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A rapid increase in interest rates.
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♦
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Commercial Real Estate Loans.
Repayment is dependent on income being generated in amounts sufficient to cover operating expenses and debt service. These loans also involve greater risks because they are generally not fully amortizing over a loan period, but rather have a balloon payment due at maturity. A borrower’s ability to make a balloon payment typically will depend on being able to either refinance the loan or timely sell the underlying property. As of December 31, 2011, commercial real estate loans, including multi-family loans, comprised approximately 36% of our total loan portfolio.
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♦
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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, 2011, other commercial loans comprised approximately 15% of our total loan portfolio.
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♦
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Construction and Development Loans.
The risk of loss is largely dependent on our initial estimate of whether the property’s value at completion equals or exceeds the cost of property construction and the availability of take-out financing. During the construction phase, a number of factors can result in delays or cost overruns. If our estimate is inaccurate or if actual construction costs exceed estimates, the value of the property securing our loan may be insufficient to ensure full repayment when completed through a permanent loan, sale of the property, or by seizure of collateral. As of December 31, 2011, construction and development loans comprised approximately 7% of our total loan portfolio.
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♦
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Safety and soundness guidelines;
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♦
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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 laws and other laws relating to discriminatory business practices; and
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♦
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Anti-competitive concerns with the proposed transaction.
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♦
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Actual or anticipated variations in earnings;
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♦
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Changes in analysts' recommendations or projections;
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♦
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CTBI's announcements of developments related to our businesses;
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♦
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Operating and stock performance of other companies deemed to be peers;
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♦
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New technology used or services offered by traditional and non-traditional competitors;
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♦
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News reports of trends, concerns, and other issues related to the financial services industry; and
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♦
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Additional governmental policies and enforcement of current laws.
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2011
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2010
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2009
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||||||||||||||||||||||||||||||||||
(in thousands)
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Average
Balances
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Interest
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Average
Rate
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Average
Balances
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Interest
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Average
Rate
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Average
Balances
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Interest
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Average
Rate
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|||||||||||||||||||||||||||
Earning
assets
:
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||||||||||||||||||||||||||||||||||||
Loans (1)(2)(3)
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$ | 2,580,351 | $ | 145,178 | 5.63 | % | $ | 2,461,225 | $ | 142,519 | 5.79 | % | $ | 2,383,875 | $ | 139,677 | 5.86 | % | ||||||||||||||||||
Loans held for sale
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749 | 112 | 14.95 | 1,040 | 111 | 10.67 | 1,580 | 359 | 22.72 | |||||||||||||||||||||||||||
Securities:
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||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies
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350,612 | 8,992 | 2.56 | 249,835 | 7,983 | 3.20 | 237,641 | 8,792 | 3.70 | |||||||||||||||||||||||||||
Tax exempt state and political subdivisions (3)
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51,565 | 2,634 | 5.11 | 43,128 | 2,456 | 5.69 | 47,801 | 2,839 | 5.94 | |||||||||||||||||||||||||||
Other securities
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30,492 | 1,141 | 3.74 | 36,927 | 951 | 2.58 | 20,812 | 777 | 3.73 | |||||||||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
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30,412 | 1,374 | 4.52 | 29,183 | 1,351 | 4.63 | 29,047 | 1,402 | 4.83 | |||||||||||||||||||||||||||
Federal funds sold
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31,000 | 84 | 0.27 | 89,598 | 234 | 0.26 | 66,619 | 193 | 0.29 | |||||||||||||||||||||||||||
Interest bearing deposits
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132,269 | 315 | 0.24 | 37,989 | 85 | 0.22 | 24,203 | 54 | 0.22 | |||||||||||||||||||||||||||
Other investments
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12,342 | 87 | 0.70 | 11,190 | 77 | 0.69 | 17,267 | 131 | 0.76 | |||||||||||||||||||||||||||
Investment in unconsolidated subsidiaries
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1,856 | 120 | 6.47 | 1,856 | 120 | 6.47 | 1,856 | 120 | 6.47 | |||||||||||||||||||||||||||
Total earning assets
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3,221,648 | $ | 160,037 | 4.97 | % | 2,961,971 | $ | 155,887 | 5.26 | % | 2,830,701 | $ | 154,344 | 5.45 | % | |||||||||||||||||||||
Allowance for loan and lease losses
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(35,808 | ) | (35,741 | ) | (32,599 | ) | ||||||||||||||||||||||||||||||
3,185,840 | 2,926,230 | 2,798,102 | ||||||||||||||||||||||||||||||||||
Nonearning assets:
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||||||||||||||||||||||||||||||||||||
Cash and due from banks
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70,239 | 66,740 | 59,940 | |||||||||||||||||||||||||||||||||
Premises and equipment, net
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55,445 | 49,468 | 50,843 | |||||||||||||||||||||||||||||||||
Other assets
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194,379 | 177,649 | 138,215 | |||||||||||||||||||||||||||||||||
Total assets
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$ | 3,505,903 | $ | 3,220,087 | $ | 3,047,100 | ||||||||||||||||||||||||||||||
Interest bearing liabilities:
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||||||||||||||||||||||||||||||||||||
Deposits:
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||||||||||||||||||||||||||||||||||||
Savings and demand deposits
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$ | 777,639 | $ | 2,824 | 0.36 | % | $ | 668,255 | $ | 3,074 | 0.46 | % | $ | 666,874 | $ | 4,002 | 0.60 | % | ||||||||||||||||||
Time deposits
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1,460,627 | 18,458 | 1.26 | 1,392,510 | 26,078 | 1.87 | 1,271,072 | 35,791 | 2.82 | |||||||||||||||||||||||||||
Repurchase agreements and federal funds purchased
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219,040 | 1,625 | 0.74 | 198,880 | 2,027 | 1.02 | 180,044 | 2,457 | 1.36 | |||||||||||||||||||||||||||
Advances from Federal Home Loan Bank
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21,670 | 99 | 0.46 | 20,286 | 79 | 0.39 | 47,434 | 1,291 | 2.72 | |||||||||||||||||||||||||||
Long-term debt
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61,341 | 3,999 | 6.52 | 61,341 | 3,999 | 6.52 | 61,341 | 3,999 | 6.52 | |||||||||||||||||||||||||||
Total interest bearing liabilities
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2,540,317 | $ | 27,005 | 1.06 | % | 2,341,272 | $ | 35,257 | 1.51 | % | 2,226,765 | $ | 47,540 | 2.13 | % | |||||||||||||||||||||
Noninterest bearing liabilities:
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||||||||||||||||||||||||||||||||||||
Demand deposits
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573,067 | 514,196 | 471,902 | |||||||||||||||||||||||||||||||||
Other liabilities
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36,746 | 30,974 | 30,722 | |||||||||||||||||||||||||||||||||
Total liabilities
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3,150,130 | 2,886,442 | 2,729,389 | |||||||||||||||||||||||||||||||||
Shareholders’ equity
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355,773 | 333,645 | 317,711 | |||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
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$ | 3,505,903 | $ | 3,220,087 | $ | 3,047,100 | ||||||||||||||||||||||||||||||
Net interest income, tax equivalent
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$ | 133,032 | $ | 120,630 | $ | 106,804 | ||||||||||||||||||||||||||||||
Less tax equivalent interest income
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1,577 | 1,376 | 1,294 | |||||||||||||||||||||||||||||||||
Net interest income
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$ | 131,455 | $ | 119,254 | $ | 105,510 | ||||||||||||||||||||||||||||||
Net interest spread
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3.91 | % | 3.75 | % | 3.32 | % | ||||||||||||||||||||||||||||||
Benefit of interest free funding
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0.22 | 0.32 | 0.45 | |||||||||||||||||||||||||||||||||
Net interest margin
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4.13 | % | 4.07 | % | 3.77 | % |
Total Change
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Change Due to
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Total Change
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Change Due to
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|||||||||||||||||||||
(in thousands)
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2011/2010 |
Volume
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Rate
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2010/2009 |
Volume
|
Rate
|
||||||||||||||||||
Interest income:
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||||||||||||||||||||||||
Loans
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$ | 2,659 | $ | 6,775 | $ | (4,116 | ) | $ | 2,842 | $ | 4,493 | $ | (1,651 | ) | ||||||||||
Loans held for sale
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1 | (26 | ) | 27 | (248 | ) | (148 | ) | (100 | ) | ||||||||||||||
U.S. Treasury and agencies
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1,009 | 2,793 | (1,784 | ) | (809 | ) | 434 | (1,243 | ) | |||||||||||||||
Tax exempt state and political subdivisions
|
178 | 448 | (270 | ) | (383 | ) | (286 | ) | (97 | ) | ||||||||||||||
Other securities
|
190 | (145 | ) | 335 | 174 | 468 | (294 | ) | ||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank stock
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23 | 56 | (33 | ) | (51 | ) | 7 | (58 | ) | |||||||||||||||
Federal funds sold
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(150 | ) | (148 | ) | (2 | ) | 41 | 61 | (20 | ) | ||||||||||||||
Interest bearing deposits
|
230 | 224 | 6 | 31 | 31 | 0 | ||||||||||||||||||
Other investments
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10 | 8 | 2 | (54 | ) | (49 | ) | (5 | ) | |||||||||||||||
Investment in unconsolidated subsidiaries
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total interest income
|
4,150 | 9,985 | (5,835 | ) | 1,543 | 5,011 | (3,468 | ) | ||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Savings and demand deposits
|
(250 | ) | 457 | (707 | ) | (928 | ) | 8 | (936 | ) | ||||||||||||||
Time deposits
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(7,620 | ) | 1,221 | (8,841 | ) | (9,713 | ) | 3,165 | (12,878 | ) | ||||||||||||||
Repurchase agreements and federal funds purchased
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(402 | ) | 190 | (592 | ) | (430 | ) | 238 | (668 | ) | ||||||||||||||
Advances from Federal Home Loan Bank
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20 | 6 | 14 | (1,212 | ) | (992 | ) | (220 | ) | |||||||||||||||
Long-term debt
|
0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||
Total interest expense
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(8,252 | ) | 1,874 | (10,126 | ) | (12,283 | ) | 2,419 | (14,702 | ) | ||||||||||||||
Net interest income
|
$ | 12,402 | $ | 8,111 | $ | 4,291 | $ | 13,826 | $ | 2,592 | $ | 11,234 |
Estimated Maturity at December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||
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
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|||||||||||||||||||||||||||||||||
U.S. Treasury, government agencies, and government sponsored agencies
|
$ | 20,699 | 2.91 | % | $ | 283,286 | 2.94 | % | $ | 121,956 | 2.66 | % | $ | 7,643 | 4.28 | % | $ | 433,584 | 2.88 | % | $ | 422,290 | ||||||||||||||||||||||
State and municipal obligations
|
5,184 | 4.78 | 15,786 | 4.62 | 23,055 | 4.93 | 28,119 | 5.37 | 72,144 | 5.02 | 68,358 | |||||||||||||||||||||||||||||||||
Other securities
|
42 | 0.00 | 20,675 | 2.87 | 0 | 0.00 | 953 | 1.69 | 21,670 | 2.81 | 21,083 | |||||||||||||||||||||||||||||||||
Total
|
$ | 25,925 | 3.28 | % | $ | 319,747 | 3.02 | % | $ | 145,011 | 3.02 | % | $ | 36,715 | 5.05 | % | $ | 527,398 | 3.17 | % | $ | 511,731 |
Estimated Maturity at December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total
Amortized Cost
|
Fair
Value
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
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|||||||||||||||||||||||||||||||||
State and municipal obligations
|
$ | 0 | 0.00 | % | $ | 0 | 0.00 | % | $ | 1,182 | 4.45 | % | $ | 0 | 0.00 | % | $ | 1,182 | 4.45 | % | $ | 1,182 | ||||||||||||||||||||||
Other securities
|
0 | 0.00 | 0 | 0.00 | 480 | 2.18 | 0 | 0.00 | 480 | 2.18 | 479 | |||||||||||||||||||||||||||||||||
Total
|
$ | 0 | 0.00 | % | $ | 0 | 0.00 | % | $ | 1,662 | 3.79 | % | $ | 0 | 0.00 | % | $ | 1,662 | 3.79 | % | $ | 1,661 |
Estimated Maturity at December 31, 2011
|
||||||||||||||||||||||||||||||||||||||||||||
Within 1 Year
|
1-5 Years
|
5-10 Years
|
After 10 Years
|
Total
Amortized Cost
|
Fair
Value
|
|||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
|||||||||||||||||||||||||||||||||
Total
|
$ | 25,925 | 3.28 | % | $ | 319,747 | 3.02 | % | $ | 146,673 | 3.03 | % | $ | 36,715 | 5.05 | % | $ | 529,060 | 3.18 | % | $ | 513,392 |
(in thousands)
|
Available-for-Sale
|
Held-to-Maturity
|
||||||
U.S. Treasury and government agencies
|
$ | 16,994 | $ | 0 | ||||
State and political subdivisions
|
44,529 | 1,576 | ||||||
U.S. government sponsored agencies
|
181,693 | 12,280 | ||||||
Other debt securities
|
0 | 480 | ||||||
Total debt securities
|
243,216 | 14,336 | ||||||
Marketable equity securities
|
20,540 | 0 | ||||||
Total securities
|
$ | 263,756 | $ | 14,336 |
(in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
$ | 120,577 | $ | 135,091 | $ | 141,440 | $ | 156,425 | $ | 143,773 | ||||||||||
Secured by real estate
|
798,887 | 807,049 | 707,500 | 663,663 | 640,574 | |||||||||||||||
Equipment lease financing
|
9,706 | 14,151 | 20,048 | 12,343 | 5,817 | |||||||||||||||
Commercial other
|
374,597 | 388,746 | 373,829 | 365,685 | 333,774 | |||||||||||||||
Total commercial
|
1,303,767 | 1,345,037 | 1,242,817 | 1,198,116 | 1,123,938 | |||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
53,534 | 56,910 | 51,311 | 56,298 | 69,021 | |||||||||||||||
Real estate mortgage
|
650,075 | 623,851 | 528,592 | 524,827 | 511,458 | |||||||||||||||
Home equity
|
84,841 | 85,103 | 82,135 | 84,567 | 88,207 | |||||||||||||||
Total residential
|
788,450 | 765,864 | 662,038 | 665,692 | 668,686 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
123,949 | 126,046 | 115,555 | 117,186 | 119,971 | |||||||||||||||
Consumer indirect
|
340,382 | 368,233 | 415,350 | 367,657 | 315,302 | |||||||||||||||
Total consumer
|
464,331 | 494,279 | 530,905 | 484,843 | 435,273 | |||||||||||||||
Total loans
|
$ | 2,556,548 | $ | 2,605,180 | $ | 2,435,760 | $ | 2,348,651 | $ | 2,227,897 | ||||||||||
Percent of total year-end loans
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
4.72 | % | 5.19 | % | 5.80 | % | 6.65 | % | 6.45 | % | ||||||||||
Secured by real estate
|
31.25 | 30.98 | 29.05 | 28.26 | 28.75 | |||||||||||||||
Equipment lease financing
|
0.38 | 0.54 | 0.82 | 0.53 | 0.26 | |||||||||||||||
Commercial other
|
14.65 | 14.92 | 15.35 | 15.57 | 14.98 | |||||||||||||||
Total commercial
|
51.00 | 51.63 | 51.02 | 51.01 | 50.44 | |||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
2.09 | 2.18 | 2.11 | 2.40 | 3.10 | |||||||||||||||
Real estate mortgage
|
25.43 | 23.95 | 21.70 | 22.35 | 22.96 | |||||||||||||||
Home equity
|
3.32 | 3.27 | 3.37 | 3.60 | 3.96 | |||||||||||||||
Total residential
|
30.84 | 29.40 | 27.18 | 28.35 | 30.02 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
4.85 | 4.84 | 4.74 | 4.99 | 5.38 | |||||||||||||||
Consumer indirect
|
13.31 | 14.13 | 17.06 | 15.65 | 14.16 | |||||||||||||||
Total consumer
|
18.16 | 18.97 | 21.80 | 20.64 | 19.54 | |||||||||||||||
Total loans
|
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % |
Maturity at December 31, 2011
|
||||||||||||||||
(in thousands)
|
Within One Year
|
After One but Within Five Years
|
After Five Years
|
Total
|
||||||||||||
Commercial secured by real estate and commercial other
|
$ | 233,794 | $ | 250,344 | $ | 689,346 | $ | 1,173,484 | ||||||||
Commercial and real estate construction
|
89,411 | 29,417 | 55,283 | 174,111 | ||||||||||||
$ | 323,205 | $ | 279,761 | $ | 744,629 | $ | 1,347,595 | |||||||||
Rate sensitivity:
|
||||||||||||||||
Fixed rate
|
$ | 71,798 | $ | 28,240 | $ | 62,502 | $ | 162,540 | ||||||||
Adjustable rate
|
251,407 | 251,521 | 682,127 | 1,185,055 | ||||||||||||
$ | 323,205 | $ | 279,761 | $ | 744,629 | $ | 1,347,595 |
(in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Nonaccrual loans
|
$ | 25,753 | $ | 45,021 | $ | 32,247 | $ | 40,945 | $ | 22,237 | ||||||||||
90 days or more past due and still accruing interest
|
11,515 | 17,014 | 9,067 | 11,245 | 9,622 | |||||||||||||||
Total nonperforming loans
|
37,268 | 62,035 | 41,314 | 52,190 | 31,859 | |||||||||||||||
Other repossessed assets
|
58 | 129 | 276 | 239 | 241 | |||||||||||||||
Foreclosed properties
|
56,545 | 42,935 | 37,333 | 10,425 | 7,851 | |||||||||||||||
Total nonperforming assets
|
$ | 93,870 | $ | 105,099 | $ | 78,923 | $ | 62,854 | $ | 39,951 | ||||||||||
Nonperforming assets to total loans and foreclosed properties
|
3.59 | % | 3.97 | % | 3.19 | % | 2.66 | % | 1.79 | % | ||||||||||
Allowance to nonperforming loans
|
89.01 | % | 56.10 | % | 79.01 | % | 59.06 | % | 88.06 | % |
(in thousands)
|
Nonaccrual loans
|
As a % of Loan Balances by Category
|
Accruing Loans Past Due 90 Days or More
|
As a % of Loan Balances by Category
|
Balances
|
|||||||||||||||
December 31, 2011
|
||||||||||||||||||||
Commercial construction
|
$ | 7,029 | 5.83 | % | $ | 3,292 | 2.73 | % | $ | 120,577 | ||||||||||
Commercial secured by real estate
|
9,810 | 1.23 | 3,969 | 0.50 | 798,887 | |||||||||||||||
Equipment lease financing
|
0 | 0.00 | 0 | 0.00 | 9,706 | |||||||||||||||
Commercial other
|
3,914 | 1.04 | 619 | 0.17 | 374,597 | |||||||||||||||
Real estate construction
|
607 | 1.13 | 16 | 0.03 | 53,534 | |||||||||||||||
Real estate mortgage
|
4,204 | 0.65 | 2,719 | 0.42 | 650,075 | |||||||||||||||
Home equity
|
189 | 0.22 | 346 | 0.41 | 84,841 | |||||||||||||||
Consumer direct
|
0 | 0.00 | 71 | 0.06 | 123,949 | |||||||||||||||
Consumer indirect
|
0 | 0.00 | 483 | 0.14 | 340,382 | |||||||||||||||
Total
|
$ | 25,753 | 1.01 | % | $ | 11,515 | 0.45 | % | $ | 2,556,548 | ||||||||||
December 31, 2010
|
||||||||||||||||||||
Commercial construction
|
$ | 13,138 | 9.73 | % | $ | 1,178 | 0.87 | % | $ | 135,091 | ||||||||||
Commercial secured by real estate
|
15,608 | 1.93 | 9,641 | 1.19 | 807,049 | |||||||||||||||
Equipment lease financing
|
0 | 0.00 | 0 | 0.00 | 14,151 | |||||||||||||||
Commercial other
|
9,338 | 2.40 | 1,692 | 0.44 | 388,746 | |||||||||||||||
Real estate construction
|
636 | 1.12 | 372 | 0.65 | 56,910 | |||||||||||||||
Real estate mortgage
|
6,137 | 0.98 | 3,337 | 0.53 | 623,851 | |||||||||||||||
Home equity
|
164 | 0.19 | 226 | 0.27 | 85,103 | |||||||||||||||
Consumer direct
|
0 | 0.00 | 70 | 0.06 | 126,046 | |||||||||||||||
Consumer indirect
|
0 | 0.00 | 498 | 0.14 | 368,233 | |||||||||||||||
Total
|
$ | 45,021 | 1.73 | % | $ | 17,014 | 0.65 | % | $ | 2,605,180 |
(in thousands)
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Allowance for loan and lease losses, beginning of year
|
$ | 34,805 | $ | 32,643 | $ | 30,821 | $ | 28,054 | $ | 27,526 | ||||||||||
Loans charged off:
|
||||||||||||||||||||
Commercial construction
|
2,510 | 1,695 | 3,435 | 1,491 | 273 | |||||||||||||||
Commercial secured by real estate
|
4,018 | 3,826 | 3,192 | 914 | 1,106 | |||||||||||||||
Commercial other
|
4,092 | 5,184 | 4,342 | 2,080 | 2,134 | |||||||||||||||
Real estate construction
|
319 | 22 | 330 | 125 | 32 | |||||||||||||||
Real estate mortgage
|
1,589 | 684 | 858 | 458 | 414 | |||||||||||||||
Home equity
|
171 | 358 | 223 | 288 | 133 | |||||||||||||||
Consumer direct
|
961 | 1,256 | 1,892 | 1,891 | 1,602 | |||||||||||||||
Consumer indirect
|
3,874 | 4,611 | 4,587 | 4,051 | 2,738 | |||||||||||||||
Total charge-offs
|
17,534 | 17,636 | 18,859 | 11,298 | 8,432 | |||||||||||||||
Recoveries of loans previously charged off:
|
||||||||||||||||||||
Commercial construction
|
30 | 6 | 204 | 25 | 0 | |||||||||||||||
Commercial secured by real estate
|
140 | 163 | 415 | 177 | 180 | |||||||||||||||
Commercial other
|
441 | 688 | 350 | 534 | 428 | |||||||||||||||
Real estate construction
|
26 | 19 | 7 | 5 | 1 | |||||||||||||||
Real estate mortgage
|
82 | 99 | 132 | 50 | 242 | |||||||||||||||
Home equity
|
16 | 23 | 18 | 10 | 8 | |||||||||||||||
Consumer direct
|
452 | 635 | 792 | 654 | 680 | |||||||||||||||
Consumer indirect
|
1,451 | 1,681 | 1,295 | 1,158 | 881 | |||||||||||||||
Total recoveries
|
2,638 | 3,314 | 3,213 | 2,613 | 2,420 | |||||||||||||||
Net charge-offs:
|
||||||||||||||||||||
Commercial construction
|
2,480 | 1,689 | 3,231 | 1,466 | 273 | |||||||||||||||
Commercial secured by real estate
|
3,878 | 3,663 | 2,777 | 737 | 926 | |||||||||||||||
Commercial other
|
3,651 | 4,496 | 3,992 | 1,546 | 1,706 | |||||||||||||||
Real estate construction
|
293 | 3 | 323 | 120 | 31 | |||||||||||||||
Real estate mortgage
|
1,507 | 585 | 726 | 408 | 172 | |||||||||||||||
Home equity
|
155 | 335 | 205 | 278 | 125 | |||||||||||||||
Consumer direct
|
509 | 621 | 1,100 | 1,237 | 922 | |||||||||||||||
Consumer indirect
|
2,423 | 2,930 | 3,292 | 2,893 | 1,857 | |||||||||||||||
Total net charge-offs
|
14,896 | 14,322 | 15,646 | 8,685 | 6,012 | |||||||||||||||
Provisions charged against operations
|
13,262 | 16,484 | 17,468 | 11,452 | 6,540 | |||||||||||||||
Balance, end of year
|
$ | 33,171 | $ | 34,805 | $ | 32,643 | $ | 30,821 | $ | 28,054 | ||||||||||
Allocation of allowance, end of year:
|
||||||||||||||||||||
Commercial construction
|
$ | 4,023 | $ | 4,332 | $ | 3,381 | $ | 3,645 | $ | 3,194 | ||||||||||
Commercial secured by real estate
|
11,753 | 12,327 | 10,961 | 11,304 | 9,081 | |||||||||||||||
Equipment lease financing
|
112 | 148 | 221 | 191 | 76 | |||||||||||||||
Commercial other
|
5,608 | 7,392 | 7,472 | 5,782 | 4,817 | |||||||||||||||
Real estate construction
|
354 | 271 | 291 | 281 | 335 | |||||||||||||||
Real estate mortgage
|
4,302 | 2,982 | 3,041 | 2,616 | 2,479 | |||||||||||||||
Home equity
|
562 | 407 | 455 | 422 | 428 | |||||||||||||||
Consumer direct
|
917 | 1,169 | 1,258 | 1,590 | 1,387 | |||||||||||||||
Consumer indirect
|
5,540 | 5,777 | 5,563 | 4,990 | 3,647 | |||||||||||||||
Unallocated
|
0 | 0 | 0 | 0 | 2,610 | |||||||||||||||
Balance, end of year
|
$ | 33,171 | $ | 34,805 | $ | 32,643 | $ | 30,821 | $ | 28,054 | ||||||||||
Average loans outstanding, net of deferred loan costs and fees
|
$ | 2,580,351 | $ | 2,461,225 | $ | 2,383,875 | $ | 2,283,180 | $ | 2,205,431 | ||||||||||
Loans outstanding at end of year, net of deferred loan costs and fees
|
$ | 2,556,548 | $ | 2,605,180 | $ | 2,435,760 | $ | 2,348,651 | $ | 2,227,897 | ||||||||||
Net charge-offs to average loan type:
|
||||||||||||||||||||
Commercial construction
|
1.93 | % | 1.20 | % | 2.22 | % | 0.98 | % | 0.19 | % | ||||||||||
Commercial secured by real estate
|
0.48 | 0.48 | 0.40 | 0.11 | 0.14 | |||||||||||||||
Commercial other
|
0.95 | 1.24 | 1.07 | 0.43 | 0.51 | |||||||||||||||
Real estate construction
|
0.58 | 0.01 | 0.64 | 0.19 | 0.05 | |||||||||||||||
Real estate mortgage
|
0.24 | 0.11 | 0.14 | 0.08 | 0.03 | |||||||||||||||
Home equity
|
0.18 | 0.40 | 0.25 | 0.33 | 0.14 | |||||||||||||||
Consumer direct
|
0.41 | 0.53 | 0.95 | 1.04 | 0.76 | |||||||||||||||
Consumer indirect
|
0.68 | 0.75 | 0.84 | 0.87 | 0.60 | |||||||||||||||
Total
|
0.58 | % | 0.58 | % | 0.66 | % | 0.38 | % | 0.27 | % | ||||||||||
Other ratios:
|
||||||||||||||||||||
Allowance to net loans, end of year
|
1.30 | % | 1.34 | % | 1.34 | % | 1.31 | % | 1.26 | % | ||||||||||
Allowance to net legacy loans, end of year
|
1.34 | % | 1.40 | % | 1.34 | % | 1.31 | % | 1.26 | % | ||||||||||
Provision for loan losses to average loans
|
0.51 | % | 0.67 | % | 0.73 | % | 0.50 | % | 0.30 | % |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Deposits:
|
||||||||||||
Noninterest bearing deposits
|
$ | 573,067 | $ | 514,196 | $ | 471,902 | ||||||
NOW accounts
|
21,622 | 20,919 | 19,478 | |||||||||
Money market accounts
|
500,179 | 422,329 | 430,818 | |||||||||
Savings accounts
|
255,838 | 225,007 | 216,578 | |||||||||
Certificates of deposit of $100,000 or more
|
632,961 | 576,382 | 480,653 | |||||||||
Certificates of deposit < $100,000 and other time deposits
|
827,666 | 816,128 | 790,419 | |||||||||
Total deposits
|
2,811,333 | 2,574,961 | 2,409,848 | |||||||||
Other borrowed funds:
|
||||||||||||
Repurchase agreements and federal funds purchased
|
219,040 | 198,880 | 180,044 | |||||||||
Advances from Federal Home Loan Bank
|
21,670 | 20,286 | 47,434 | |||||||||
Long-term debt
|
61,341 | 61,341 | 61,341 | |||||||||
Total other borrowed funds
|
302,051 | 280,507 | 288,819 | |||||||||
Total deposits and other borrowed funds
|
$ | 3,113,384 | $ | 2,855,468 | $ | 2,698,667 |
(in thousands)
|
Certificates of Deposit
|
Other Time Deposits
|
Total
|
|||||||||
Three months or less
|
$ | 187,377 | $ | 13,572 | $ | 200,949 | ||||||
Over three through six months
|
118,669 | 8,196 | 126,865 | |||||||||
Over six through twelve months
|
292,083 | 13,503 | 305,586 | |||||||||
Over twelve through sixty months
|
49,428 | 10,632 | 60,060 | |||||||||
Over sixty months
|
0 | 195 | 195 | |||||||||
$ | 647,557 | $ | 46,098 | $ | 693,655 |
Location
|
Owned
|
Leased
|
Total
|
||
Banking locations:
|
|||||
Community Trust Bank, Inc.
|
|||||
*
|
Pikeville Market (lease land to 3 owned locations)
|
9
|
1
|
10
|
|
10 locations in Pike County, Kentucky
|
|||||
Floyd/Knott/Johnson Market (lease land to 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 to 1 owned location)
|
2
|
0
|
2
|
||
1 location in Pike County, Kentucky, 1 location in Mingo County, West Virginia
|
|||||
Whitesburg Market
|
4
|
1
|
5
|
||
5 locations in Letcher County, Kentucky
|
|||||
Hazard Market (lease land to 2 owned locations)
|
4
|
0
|
4
|
||
4 locations in Perry County, Kentucky
|
|||||
*
|
Lexington Market (lease land to 2 owned locations)
|
3
|
2
|
5
|
|
5 locations in Fayette County, Kentucky
|
|||||
Winchester Market
|
2
|
0
|
2
|
||
2 locations in Clark County, Kentucky
|
|||||
Richmond Market (lease land to 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 to 2 owned locations)
|
2
|
3
|
5
|
|
2 locations in Woodford County, Kentucky, 2 locations in Franklin County, Kentucky, and 1 location in Scott County, Kentucky
|
|||||
Danville Market (lease land to 1 owned location)
|
3
|
0
|
3
|
||
2 locations in Boyle County, Kentucky and 1 location in Mercer County, Kentucky
|
|||||
*
|
Ashland Market (lease land to 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 to 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 to 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
|
1
|
4
|
|
3 locations in Campbell County, Tennessee and 1 location in Anderson County, Tennessee
|
|||||
Total banking locations
|
70
|
10
|
80
|
||
Operational locations:
|
|||||
Community Trust Bank, Inc.
|
|||||
Pikeville (Pike County, Kentucky) (lease land to 1 owned location)
|
1
|
0
|
1
|
||
Lexington (Fayette County, Kentucky)
|
0
|
1
|
1
|
||
Total operational locations
|
1
|
1
|
2
|
||
Total locations
|
71
|
11
|
82
|
Fiscal Year Ending December 31 ($)
|
||||||
2006
|
2007
|
2008
|
2009
|
2010
|
2011
|
|
Community Trust Bancorp, Inc.
|
100.00
|
68.94
|
94.96
|
66.28
|
81.78
|
86.55
|
NASDAQ Stock Market (U.S.)
|
100.00
|
108.47
|
66.35
|
95.38
|
113.19
|
113.81
|
NASDAQ Bank Stocks
|
100.00
|
79.26
|
57.79
|
48.42
|
57.29
|
51.19
|
Year Ended December 31
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Interest income
|
$ | 158,460 | $ | 154,511 | $ | 153,050 | $ | 167,611 | $ | 196,864 | ||||||||||
Interest expense
|
27,005 | 35,257 | 47,540 | 63,974 | 90,832 | |||||||||||||||
Net interest income
|
131,455 | 119,254 | 105,510 | 103,637 | 106,032 | |||||||||||||||
Provision for loan losses
|
13,262 | 16,484 | 17,468 | 11,452 | 6,540 | |||||||||||||||
Noninterest income
|
43,832 | 40,926 | 41,420 | 21,767 | 36,608 | |||||||||||||||
Noninterest expense
|
106,387 | 96,050 | 93,801 | 82,532 | 83,055 | |||||||||||||||
Income before income taxes
|
55,638 | 47,646 | 35,661 | 31,420 | 53,045 | |||||||||||||||
Income taxes
|
16,811 | 14,612 | 10,602 | 8,347 | 16,418 | |||||||||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | $ | 23,073 | $ | 36,627 | ||||||||||
Per common share:
|
||||||||||||||||||||
Basic earnings per share
|
$ | 2.54 | $ | 2.17 | $ | 1.66 | $ | 1.54 | $ | 2.42 | ||||||||||
Cash dividends declared-
|
$ | 1.23 | $ | 1.21 | $ | 1.20 | $ | 1.17 | $ | 1.10 | ||||||||||
as a % of net income
|
48.43 | % | 55.76 | % | 72.29 | % | 75.97 | % | 45.45 | % | ||||||||||
Book value, end of year
|
$ | 23.78 | $ | 22.08 | $ | 21.15 | $ | 20.44 | $ | 20.03 | ||||||||||
Market price, end of year
|
$ | 29.42 | $ | 28.96 | $ | 24.45 | $ | 36.75 | $ | 27.53 | ||||||||||
Market to book value, end of year
|
1.24 | x | 1.31 | x | 1.16 | x | 1.80 | x | 1.37 | x | ||||||||||
Price/earnings ratio, end of year
|
11.58 | x | 13.35 | x | 14.73 | x | 23.86 | x | 11.38 | x | ||||||||||
Cash dividend yield, end of year
|
4.18 | % | 4.18 | % | 4.91 | % | 3.18 | % | 4.00 | % | ||||||||||
At year-end:
|
||||||||||||||||||||
Total assets
|
$ | 3,591,179 | $ | 3,355,872 | $ | 3,086,659 | $ | 2,954,531 | $ | 2,902,684 | ||||||||||
Long-term debt
|
61,341 | 61,341 | 61,341 | 61,341 | 61,341 | |||||||||||||||
Shareholders’ equity
|
366,866 | 338,638 | 321,457 | 308,206 | 301,355 | |||||||||||||||
Averages:
|
||||||||||||||||||||
Assets
|
$ | 3,505,903 | $ | 3,220,087 | $ | 3,047,100 | $ | 2,921,217 | $ | 2,980,713 | ||||||||||
Deposits
|
2,811,333 | 2,574,961 | 2,409,848 | 2,303,720 | 2,352,902 | |||||||||||||||
Earning assets
|
3,221,648 | 2,961,971 | 2,830,701 | 2,703,054 | 2,760,014 | |||||||||||||||
Loans
|
2,580,351 | 2,461,225 | 2,383,875 | 2,283,180 | 2,205,431 | |||||||||||||||
Shareholders’ equity
|
355,773 | 333,645 | 317,711 | 308,401 | 294,106 | |||||||||||||||
Profitability ratios:
|
||||||||||||||||||||
Return on average assets
|
1.11 | % | 1.03 | % | 0.82 | % | 0.79 | % | 1.23 | % | ||||||||||
Return on average equity
|
10.91 | 9.90 | 7.89 | 7.48 | 12.45 | |||||||||||||||
Capital ratios:
|
||||||||||||||||||||
Equity to assets, end of year
|
10.22 | % | 10.09 | % | 10.41 | % | 10.43 | % | 10.38 | % | ||||||||||
Average equity to average assets
|
10.15 | 10.36 | 10.43 | 10.56 | 9.87 | |||||||||||||||
Risk based capital ratios:
|
||||||||||||||||||||
Tier 1 capital
|
||||||||||||||||||||
(to average assets)
|
9.89 | % | 10.16 | % | 10.38 | % | 10.37 | % | 10.32 | % | ||||||||||
Tier 1 capital
|
||||||||||||||||||||
(to risk weighted assets)
|
13.88 | 12.90 | 12.90 | 13.05 | 13.24 | |||||||||||||||
Total capital
|
||||||||||||||||||||
(to risk weighted assets)
|
15.14 | 14.10 | 14.15 | 14.30 | 14.49 | |||||||||||||||
Other significant ratios:
|
||||||||||||||||||||
Allowance to net loans, end of year
|
1.30 | % | 1.34 | % | 1.34 | % | 1.31 | % | 1.26 | % | ||||||||||
Allowance to net legacy loans, end of year
|
1.34 | 1.40 | 1.34 | 1.31 | 1.26 | |||||||||||||||
Allowance to nonperforming loans, end of year
|
89.01 | 56.10 | 79.01 | 59.06 | 88.06 | |||||||||||||||
Nonperforming assets to loans and foreclosed properties, end of year
|
3.59 | 3.97 | 3.19 | 2.66 | 1.79 | |||||||||||||||
Net interest margin
|
4.13 | 4.07 | 3.77 | 3.88 | 3.90 | |||||||||||||||
Other statistics:
|
||||||||||||||||||||
Average common shares outstanding
|
15,313 | 15,234 | 15,129 | 15,017 | 15,150 | |||||||||||||||
Number of full-time equivalent employees, end of year
|
1,015 | 1,041 | 982 | 986 | 1,011 |
Three Months Ended
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||
2011
|
||||||||||||||||
Net interest income
|
$ | 32,908 | $ | 33,095 | $ | 32,878 | $ | 32,574 | ||||||||
Net interest income, taxable equivalent basis
|
33,325 | 33,509 | 33,258 | 32,940 | ||||||||||||
Provision for loan losses
|
3,040 | 2,515 | 3,320 | 4,387 | ||||||||||||
Noninterest income
|
11,559 | 10,942 | 10,593 | 10,738 | ||||||||||||
Noninterest expense
|
26,867 | 25,827 | 27,146 | 26,547 | ||||||||||||
Net income
|
9,888 | 10,665 | 8,970 | 9,304 | ||||||||||||
Per common share:
|
||||||||||||||||
Basic earnings per share
|
$ | 0.64 | $ | 0.70 | $ | 0.59 | $ | 0.61 | ||||||||
Diluted earnings per share
|
0.64 | 0.70 | 0.58 | 0.61 | ||||||||||||
Dividends declared
|
0.31 | 0.31 | 0.305 | 0.305 | ||||||||||||
Common stock price:
|
||||||||||||||||
High
|
$ | 29.99 | $ | 28.82 | $ | 28.74 | $ | 30.35 | ||||||||
Low
|
22.28 | 22.64 | 26.00 | 27.03 | ||||||||||||
Last trade
|
29.42 | 23.29 | 27.72 | 27.67 | ||||||||||||
Selected ratios:
|
||||||||||||||||
Return on average assets, annualized
|
1.09 | % | 1.20 | % | 1.03 | % | 1.11 | % | ||||||||
Return on average common equity, annualized
|
10.71 | 11.75 | 10.23 | 10.96 | ||||||||||||
Net interest margin, annualized
|
3.98 | 4.11 | 4.17 | 4.27 |
Three Months Ended
|
December 31
|
September 30
|
June 30
|
March 31
|
||||||||||||
2010
|
||||||||||||||||
Net interest income
|
$ | 31,254 | $ | 29,377 | $ | 29,278 | $ | 29,345 | ||||||||
Net interest income, taxable equivalent basis
|
31,609 | 29,721 | 29,614 | 29,686 | ||||||||||||
Provision for loan losses
|
3,980 | 3,676 | 3,106 | 5,722 | ||||||||||||
Noninterest income
|
11,046 | 10,597 | 9,542 | 9,741 | ||||||||||||
Noninterest expense
|
24,956 | 23,998 | 23,655 | 23,441 | ||||||||||||
Net income
|
9,240 | 8,450 | 8,553 | 6,791 | ||||||||||||
Per common share:
|
||||||||||||||||
Basic earnings per share
|
$ | 0.61 | $ | 0.55 | $ | 0.56 | $ | 0.45 | ||||||||
Diluted earnings per share
|
0.60 | 0.55 | 0.56 | 0.45 | ||||||||||||
Dividends declared
|
0.305 | 0.305 | 0.30 | 0.30 | ||||||||||||
Common stock price:
|
||||||||||||||||
High
|
$ | 29.91 | $ | 28.00 | $ | 31.56 | $ | 28.32 | ||||||||
Low
|
26.52 | 24.50 | 24.89 | 22.15 | ||||||||||||
Last trade
|
28.96 | 27.09 | 25.10 | 27.07 | ||||||||||||
Selected ratios:
|
||||||||||||||||
Return on average assets, annualized
|
1.11 | % | 1.04 | % | 1.06 | % | 0.88 | % | ||||||||
Return on average common equity, annualized
|
10.71 | 9.95 | 10.40 | 8.47 | ||||||||||||
Net interest margin, annualized
|
4.15 | 3.95 | 4.00 | 4.20 |
♦
|
Our Business
|
♦
|
Financial Goals and Performance
|
♦
|
Results of Operations and Financial Condition
|
♦
|
Contractual Obligations and Commitments
|
♦
|
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
|
2011 Goals
|
2011 Performance
|
Variance
|
2012 Goals
|
|
Earnings Per Share
|
$2.56
|
$2.54
|
($0.02)
|
$2.55 - $2.71
|
Net Income
|
$39.1 million
|
$38.8 million
|
($0.3 million)
|
$39.5 - $42 million
|
ROAA
|
1.16%
|
1.09%
|
(0.07%)
|
1.08% - 1.15%
|
ROAE
|
11.11%
|
10.71%
|
(0.40%)
|
10.50% – 11.00%
|
Revenues
|
$173.8 million
|
$175.3 million
|
$1.5 million
|
$176 - $186 million
|
Noninterest Revenue
as of % of Total Revenue
|
24.1%
|
25.0%
|
0.9%
|
20% - 25%
|
Assets
|
$3.4 billion
|
$3.6 billion
|
$0.2 billion
|
$3.65 - $3.85 billion
|
Loans
|
$2.7 billion
|
$2.6 billion
|
($0.1 billion)
|
$2.6 - $2.8 billion
|
Deposits
, including Repurchase Agreements
|
$2.9 billion
|
$3.1 billion
|
$0.2 billion
|
$3.1 - $3.3 billion
|
Shareholders’ Equity
|
$361 million
|
$367 million
|
$6 million
|
$380 - $400 million
|
♦
|
Earnings per share for the year 2011 increased $0.37 per share from prior year with increased net interest income and noninterest income and decreased provision for loan loss partially offset by increased noninterest expense.
|
♦
|
Noninterest expense was significantly impacted by a $3.2 million decrease in the carrying value of two groups of foreclosed properties that were vandalized. Claims have been filed with the insurance carriers and discussions are ongoing. Since no agreement has been reached, the amount of recovery is uncertain. Accordingly, the entire decrease in the carrying value of the properties has been charged against earnings and no estimate of insurance recovery is reflected at December 31, 2011.
|
♦
|
Our net interest margin for the year 2011 of 4.13% was a 6 basis point increase from prior year.
|
♦
|
Our nonperforming loans at $37.3 million decreased from the $62.0 million at December 31, 2010. Nonperforming assets at $93.9 million were an $11.2 million decrease from prior year.
|
♦
|
Our loan loss provision for the year 2011 was $3.2 million below 2010.
|
♦
|
Net loan charge-offs for the year 2011 of $14.9 million, or 0.58% of average loans annualized, was an increase from the $14.3 million, or 0.58%, experienced for 2010.
|
♦
|
Our loan loss reserve as a percentage of total loans outstanding at December 31, 2011 decreased to 1.30% compared to 1.34% at December 31, 2010. Our reserve coverage (allowance for loan loss reserve to nonperforming loans) of 93.3% at September 30, 2011 began to show improvement from the 59.0% and 56.1% at June 30, 2011 and December 31, 2010, respectively. Our December 31, 2011 reserve coverage of 89.0% evidenced two consecutive quarters of continued improvement. Several of the matrices and factors utilized in evaluating the adequacy of our loan loss reserve also show significant improvement, including level of past dues, nonperforming loans, and nonaccrual loans, and after two consecutive quarters of continued improvement, we determined that our loan loss reserve of 1.30% was adequate. The allowance-to-legacy loan ratio, which excludes acquired loans, was 1.34%, and 1.40%, respectively, at December 31, 2011 and December 31, 2010.
|
♦
|
Noninterest income for the year ended December 31, 2011 increased 7.1% from prior year, primarily due to increased gains on sales of loans, deposit service charges, and trust revenue.
|
♦
|
Our loan portfolio decreased $48.6 million from prior year.
|
♦
|
Our investment portfolio increased $188.7 million from prior year.
|
♦
|
Deposits, including repurchase agreements, increased $201.1 million from prior year.
|
♦
|
Our tangible common equity/tangible assets ratio remains strong at 8.52%.
|
(dollars in thousands) | Change 2011 vs. 2010 | |||||||||||||||||||
Year Ended December 31
|
2011
|
2010
|
2009
|
Amount
|
Percent
|
|||||||||||||||
Net interest income
|
$ | 131,455 | $ | 119,254 | $ | 105,510 | $ | 12,201 | 10.2 | % | ||||||||||
Provision for loan losses
|
13,262 | 16,484 | 17,468 | (3,222 | ) | (19.5 | ) | |||||||||||||
Noninterest income
|
43,832 | 40,926 | 41,420 | 2,906 | 7.1 | |||||||||||||||
Noninterest expense
|
106,387 | 96,050 | 93,801 | 10,337 | 10.8 | |||||||||||||||
Income taxes
|
16,811 | 14,612 | 10,602 | 2,199 | 15.0 | |||||||||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | $ | 5,793 | 17.5 | % | ||||||||||
Average earning assets
|
$ | 3,221,648 | $ | 2,961,971 | $ | 2,830,701 | $ | 259,677 | 8.8 | % | ||||||||||
Yield on average earnings assets
|
4.97 | % | 5.26 | % | 5.45 | % | (0.29 | )% | (5.5 | )% | ||||||||||
Cost of interest bearing funds
|
1.06 | % | 1.51 | % | 2.13 | % | (0.45 | )% | (29.8 | )% | ||||||||||
Net interest margin
|
4.13 | % | 4.07 | % | 3.77 | % | 0.06 | % | 1.5 | % |
(in thousands) | December 31, 2011 | |||||||||||||||||||
Loan Category
|
Balance
|
Variance from Prior Year
|
Net Charge-Offs
|
Nonperforming
|
ALLL
|
|||||||||||||||
Commercial:
|
||||||||||||||||||||
Construction
|
$ | 120,577 | (10.7 | )% | $ | 2,480 | $ | 10,321 | $ | 4,023 | ||||||||||
Secured by real estate
|
798,887 | (1.0 | ) | 3,878 | 13,779 | 11,753 | ||||||||||||||
Equipment lease financing
|
9,706 | (31.4 | ) | 0 | 0 | 112 | ||||||||||||||
Other commercial
|
374,597 | (3.6 | ) | 3,651 | 4,533 | 5,608 | ||||||||||||||
Total commercial
|
1,303,767 | (3.1 | ) | 10,009 | 28,633 | 21,496 | ||||||||||||||
Residential:
|
||||||||||||||||||||
Real estate construction
|
53,534 | (5.9 | ) | 293 | 623 | 354 | ||||||||||||||
Real estate mortgage
|
650,075 | 4.2 | 1,507 | 6,923 | 4,302 | |||||||||||||||
Home equity
|
84,841 | (0.3 | ) | 155 | 535 | 562 | ||||||||||||||
Total residential
|
788,450 | 2.9 | 1,955 | 8,081 | 5,218 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Consumer direct
|
123,949 | (1.7 | ) | 509 | 71 | 917 | ||||||||||||||
Consumer indirect
|
340,382 | (7.6 | ) | 2,423 | 483 | 5,540 | ||||||||||||||
Total consumer
|
464,331 | (6.1 | ) | 2,932 | 554 | 6,457 | ||||||||||||||
Total loans
|
$ | 2,556,548 | (1.9 | )% | $ | 14,896 | $ | 37,268 | $ | 33,171 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
1-4 family
|
$ | 20,065 | $ | 18,792 | ||||
Agricultural/farmland
|
652 | 58 | ||||||
Construction/land development/other
|
23,006 | 10,207 | ||||||
Multifamily
|
1,841 | 4,594 | ||||||
Non-farm/non-residential
|
10,981 | 9,284 | ||||||
Total foreclosed properties
|
$ | 56,545 | $ | 42,935 |
Contractual Obligations:
|
Payments Due by Period
|
|||||||||||||||
(in thousands)
|
Total
|
1 Year
|
2-5 Years
|
After 5 Years
|
||||||||||||
Deposits without stated maturity
|
$ | 1,424,884 | $ | 1,424,884 | $ | 0 | $ | 0 | ||||||||
Certificates of deposit and other time deposits
|
1,453,475 | 1,310,595 | 141,618 | 1,262 | ||||||||||||
Repurchase agreements and other short-term borrowings
|
230,281 | 230,281 | 0 | 0 | ||||||||||||
Advances from Federal Home Loan Bank
|
21,609 | 20,194 | 479 | 936 | ||||||||||||
Interest on advances from Federal Home Loan Bank*
|
141 | 41 | 90 | 10 | ||||||||||||
Long-term debt
|
61,341 | 0 | 0 | 61,341 | ||||||||||||
Interest on long-term debt*
|
67,434 | 2,608 | 9,996 | 54,830 | ||||||||||||
Annual rental commitments under leases
|
7,092 | 1,533 | 2,863 | 2,696 | ||||||||||||
Total contractual obligations
|
$ | 3,266,257 | $ | 2,990,136 | $ | 155,046 | $ | 121,075 |
Other Commitments:
|
Amount of Commitment - Expiration by Period
|
|||||||||||||||
(in thousands)
|
Total
|
1 Year
|
2-5 Years
|
After 5 Years
|
||||||||||||
Standby letters of credit
|
$ | 50,201 | $ | 36,898 | $ | 13,303 | $ | 0 | ||||||||
Commitments to extend credit
|
370,671 | 297,537 | 59,663 | 13,471 | ||||||||||||
Total other commitments
|
$ | 420,872 | $ | 334,435 | $ | 72,966 | $ | 13,471 |
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
3.32%
|
+300
|
2.08%
|
+200
|
1.03%
|
+100
|
0.46%
|
-25
|
(0.25)%
|
Change in Interest Rates
(basis points)
|
Percentage Change in Net Interest Income
(12 Months)
|
+400
|
2.48%
|
+300
|
1.45%
|
+200
|
0.58%
|
+100
|
0.22%
|
-25
|
(0.09)%
|
(dollars in thousands) |
1-3 Months
|
4-6 Months
|
7-9 Months
|
10-12 Months
|
2-3
Years
|
4-5
Years
|
> 5
Years
|
|||||||||||||||||||||
Assets
|
$ | 1,577,366 | $ | 222,402 | $ | 179,410 | $ | 176,307 | $ | 660,291 | $ | 168,059 | $ | 607,344 | ||||||||||||||
Liabilities and
Equity
|
892,369 | 418,902 | 378,314 | 640,120 | 829,930 | 29,701 | 401,843 | |||||||||||||||||||||
Repricing difference
|
684,996 | (196,500 | ) | (198,904 | ) | (463,812 | ) | (169,639 | ) | 138,358 | 205,501 | |||||||||||||||||
Cumulative GAP
|
684,996 | 488,496 | 289,592 | (174,221 | ) | (343,860 | ) | (205,501 | ) | 0 | ||||||||||||||||||
RSA/RSL
|
1.77 | x | 0.53 | x | 0.47 | x | 0.28 | x | 0.80 | x | 5.66 | x | 1.51 | x | ||||||||||||||
Cumulative GAP to total assets
|
19.07 | % | 13.60 | % | 8.06 | % | (4.85 | )% | (9.58 | )% | (5.72 | )% | 0.00 | % |
Board Authorizations
|
Repurchases*
|
Shares Available for Repurchase
|
||
Average Price ($)
|
# of Shares
|
|||
1998
|
500,000
|
-
|
0
|
|
1999
|
0
|
15.89
|
131,517
|
|
2000
|
1,000,000
|
11.27
|
694,064
|
|
2001
|
0
|
14.69
|
444,945
|
|
2002
|
0
|
19.48
|
360,287
|
|
2003
|
1,000,000
|
21.58
|
235,668
|
|
2004
|
0
|
25.45
|
55,000
|
|
2005
|
0
|
-
|
0
|
|
2006
|
0
|
-
|
0
|
|
2007
|
0
|
31.42
|
196,500
|
|
2008
|
0
|
28.08
|
93,500
|
|
2009
|
0
|
-
|
0
|
|
2010
|
0
|
-
|
0
|
|
2011
|
0
|
-
|
0
|
|
Total
|
2,500,000
|
17.52
|
2,211,481
|
288,519
|
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Beginning balance, January 1
|
$ | 65,499 | $ | 65,059 | $ | 65,059 | ||||||
Acquisition adjustments
|
(9 | ) | 440 | 0 | ||||||||
Ending balance, December 31
|
$ | 65,490 | $ | 65,499 | $ | 65,059 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Beginning balance, January 1
|
$ | 1,342 | $ | 648 | $ | 1,282 | ||||||
Amortization
|
(213 | ) | (430 | ) | (634 | ) | ||||||
Acquisition adjustments
|
(12 | ) | 1,124 | 0 | ||||||||
Ending balance, December 31, 2011
|
$ | 1,117 | $ | 1,342 | $ | 648 |
(dollars in thousands)
December 31
|
2011
|
2010
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 69,723 | $ | 62,559 | ||||
Interest bearing deposits
|
166,057 | 70,086 | ||||||
Federal funds sold
|
2,701 | 26,338 | ||||||
Cash and cash equivalents
|
238,481 | 158,983 | ||||||
Certificates of deposit in other banks
|
11,875 | 14,762 | ||||||
Securities available-for-sale at fair value (amortized cost of $511,731 and $332,658, respectively)
|
527,398 | 338,675 | ||||||
Securities held-to-maturity at amortized cost (fair value of $1,661 and $1,662, respectively)
|
1,662 | 1,662 | ||||||
Loans held for sale
|
536 | 455 | ||||||
Loans
|
2,556,548 | 2,605,180 | ||||||
Allowance for loan losses
|
(33,171 | ) | (34,805 | ) | ||||
Net loans
|
2,523,377 | 2,570,375 | ||||||
Premises and equipment, net
|
54,297 | 55,343 | ||||||
Federal Home Loan Bank stock
|
25,673 | 25,673 | ||||||
Federal Reserve Bank stock
|
4,883 | 4,434 | ||||||
Goodwill
|
65,490 | 65,499 | ||||||
Core deposit intangible (net of accumulated amortization of $7,499 and $7,260, respectively)
|
1,117 | 1,342 | ||||||
Bank owned life insurance
|
43,483 | 39,697 | ||||||
Mortgage servicing rights
|
2,282 | 3,161 | ||||||
Other real estate owned
|
56,965 | 42,935 | ||||||
Other assets
|
33,660 | 32,876 | ||||||
Total assets
|
$ | 3,591,179 | $ | 3,355,872 | ||||
Liabilities and shareholders’ equity:
|
||||||||
Deposits
|
||||||||
Noninterest bearing
|
$ | 584,735 | $ | 525,478 | ||||
Interest bearing
|
2,293,624 | 2,180,639 | ||||||
Total deposits
|
2,878,359 | 2,706,117 | ||||||
Repurchase agreements
|
217,177 | 188,275 | ||||||
Federal funds purchased and other short-term borrowings
|
13,104 | 9,680 | ||||||
Advances from Federal Home Loan Bank
|
21,609 | 21,238 | ||||||
Long-term debt
|
61,341 | 61,341 | ||||||
Other liabilities
|
32,723 | 30,583 | ||||||
Total liabilities
|
3,224,313 | 3,017,234 | ||||||
Shareholders’ equity:
|
||||||||
Preferred stock, 300,000 shares authorized and unissued
|
- | - | ||||||
Common stock, $5 par value, shares authorized 25,000,000; shares outstanding 2011 – 15,429,992; 2010 – 15,334,410
|
77,151 | 76,673 | ||||||
Capital surplus
|
156,101 | 154,615 | ||||||
Retained earnings
|
123,431 | 103,439 | ||||||
Accumulated other comprehensive income, net of tax
|
10,183 | 3,911 | ||||||
Total shareholders’ equity
|
366,866 | 338,638 | ||||||
Total liabilities and shareholders’ equity
|
$ | 3,591,179 | $ | 3,355,872 |
(in thousands except per share data)
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Interest income:
|
||||||||||||
Interest and fees on loans, including loans held for sale
|
$ | 144,635 | $ | 142,109 | $ | 139,736 | ||||||
Interest and dividends on securities:
|
||||||||||||
Taxable
|
10,133 | 8,934 | 9,569 | |||||||||
Tax exempt
|
1,712 | 1,601 | 1,845 | |||||||||
Interest and dividends on Federal Reserve Bank and Federal Home Loan Bank stock
|
1,374 | 1,351 | 1,402 | |||||||||
Other, including interest on federal funds sold
|
606 | 516 | 498 | |||||||||
Total interest income
|
158,460 | 154,511 | 153,050 | |||||||||
Interest expense:
|
||||||||||||
Interest on deposits
|
21,282 | 29,152 | 39,793 | |||||||||
Interest on repurchase agreements and other short-term borrowings
|
1,625 | 2,027 | 2,457 | |||||||||
Interest on advances from Federal Home Loan Bank
|
99 | 79 | 1,291 | |||||||||
Interest on long-term debt
|
3,999 | 3,999 | 3,999 | |||||||||
Total interest expense
|
27,005 | 35,257 | 47,540 | |||||||||
Net interest income
|
131,455 | 119,254 | 105,510 | |||||||||
Provision for loan losses
|
13,262 | 16,484 | 17,468 | |||||||||
Net interest income after provision for loan losses
|
118,193 | 102,770 | 88,042 | |||||||||
Noninterest income:
|
||||||||||||
Service charges on deposit accounts
|
25,576 | 23,255 | 21,970 | |||||||||
Gains on sales of loans, net
|
1,749 | 1,642 | 4,324 | |||||||||
Trust income
|
6,354 | 5,846 | 5,047 | |||||||||
Loan related fees
|
2,372 | 3,247 | 3,817 | |||||||||
Bank owned life insurance
|
1,721 | 1,676 | 1,241 | |||||||||
Securities gains and losses
|
218 | 0 | 654 | |||||||||
Other noninterest income
|
5,842 | 5,260 | 4,367 | |||||||||
Total noninterest income
|
43,832 | 40,926 | 41,420 | |||||||||
Noninterest expense:
|
||||||||||||
Officer salaries and employee benefits
|
8,379 | 8,244 | 8,169 | |||||||||
Other salaries and employee benefits
|
40,416 | 39,020 | 35,392 | |||||||||
Occupancy, net
|
7,929 | 7,058 | 6,836 | |||||||||
Equipment
|
3,750 | 3,865 | 4,679 | |||||||||
Data processing
|
6,495 | 6,889 | 6,064 | |||||||||
Bank franchise tax
|
4,290 | 4,065 | 3,684 | |||||||||
Legal fees
|
2,644 | 2,727 | 2,395 | |||||||||
Professional fees
|
1,256 | 1,199 | 1,350 | |||||||||
FDIC insurance
|
3,192 | 4,410 | 5,795 | |||||||||
Other real estate owned provision and expense
|
8,604 | 2,626 | 3,281 | |||||||||
Other noninterest expense
|
19,432 | 15,947 | 16,156 | |||||||||
Total noninterest expense
|
106,387 | 96,050 | 93,801 | |||||||||
Income before income taxes
|
55,638 | 47,646 | 35,661 | |||||||||
Income taxes
|
16,811 | 14,612 | 10,602 | |||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | ||||||
Basic earnings per share
|
$ | 2.54 | $ | 2.17 | $ | 1.66 | ||||||
Diluted earnings per share
|
2.53 | 2.16 | 1.65 |
(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, January 1, 2009
|
15,077,324 | $ | 75,386 | $ | 149,982 | $ | 81,943 | $ | 895 | $ | 308,206 | |||||||||||||
Net income
|
25,059 | 25,059 | ||||||||||||||||||||||
Net change in unrealized gain/loss on securities available-for-sale, net of tax of ($1,786)
|
3,318 | 3,318 | ||||||||||||||||||||||
Comprehensive income
|
28,377 | |||||||||||||||||||||||
Cash dividends declared ($1.20 per share)
|
(18,162 | ) | (18,162 | ) | ||||||||||||||||||||
Issuance of common stock
|
117,739 | 589 | 1,703 | 2,292 | ||||||||||||||||||||
Issuance of restricted stock
|
5,710 | 29 | (29 | ) | 0 | |||||||||||||||||||
Stock-based compensation and related excess tax benefits
|
947 | 947 | ||||||||||||||||||||||
Other adjustments
|
(203 | ) | (203 | ) | ||||||||||||||||||||
Balance, December 31, 2009
|
15,200,773 | 76,004 | 152,400 | 88,840 | 4,213 | 321,457 | ||||||||||||||||||
Net income
|
33,034 | 33,034 | ||||||||||||||||||||||
Net change in unrealized gain/loss on securities available-for-sale, net of tax of $162
|
(302 | ) | (302 | ) | ||||||||||||||||||||
Comprehensive income
|
32,732 | |||||||||||||||||||||||
Cash dividends declared ($1.21 per share)
|
(18,435 | ) | (18,435 | ) | ||||||||||||||||||||
Issuance of common stock
|
93,115 | 466 | 1,409 | 1,875 | ||||||||||||||||||||
Issuance of restricted stock
|
44,996 | 225 | (225 | ) | 0 | |||||||||||||||||||
Forfeiture of restricted stock
|
(4,474 | ) | (22 | ) | 22 | 0 | ||||||||||||||||||
Stock-based compensation and related excess tax benefits
|
1,009 | 1,009 | ||||||||||||||||||||||
Balance, December 31, 2010
|
15,334,410 | 76,673 | 154,615 | 103,439 | 3,911 | 338,638 | ||||||||||||||||||
Net income
|
38,827 | 38,827 | ||||||||||||||||||||||
Net change in unrealized gain/loss on securities available-for-sale, net of tax of ($3,378)
|
6,272 | 6,272 | ||||||||||||||||||||||
Comprehensive income
|
45,099 | |||||||||||||||||||||||
Cash dividends declared ($1.23 per share)
|
(18,835 | ) | (18,835 | ) | ||||||||||||||||||||
Issuance of common stock
|
50,256 | 251 | 1,040 | 1,291 | ||||||||||||||||||||
Issuance of restricted stock
|
45,542 | 228 | (228 | ) | 0 | |||||||||||||||||||
Forfeiture of restricted stock
|
(216 | ) | (1 | ) | 1 | 0 | ||||||||||||||||||
Stock-based compensation and related excess tax benefits
|
673 | 673 | ||||||||||||||||||||||
Balance, December 31, 2011
|
15,429,992 | $ | 77,151 | $ | 156,101 | $ | 123,431 | $ | 10,183 | $ | 366,866 |
(in thousands)
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
4,216 | 4,377 | 5,239 | |||||||||
Deferred taxes
|
(94 | ) | 219 | 2,918 | ||||||||
Stock-based compensation
|
650 | 804 | 536 | |||||||||
Excess tax benefits of stock-based compensation
|
23 | 205 | 411 | |||||||||
Provision for loan losses
|
13,262 | 16,484 | 17,468 | |||||||||
Fair value adjustments to other real estate owned and other repossessed assets
|
6,464 | 689 | 1,368 | |||||||||
Securities gains
|
(218 | ) | 0 | (654 | ) | |||||||
Gains on sale of mortgage loans held for sale
|
(1,749 | ) | (1,642 | ) | (4,324 | ) | ||||||
(Gains)/losses on sale of assets, net
|
(34 | ) | 139 | 56 | ||||||||
Proceeds from sale of mortgage loans held for sale
|
81,095 | 82,324 | 217,458 | |||||||||
Funding of mortgage loans held for sale
|
(79,427 | ) | (79,319 | ) | (214,328 | ) | ||||||
Amortization of securities premiums and discounts, net
|
3,719 | 2,422 | 2,121 | |||||||||
Change in cash surrender value of bank owned life insurance
|
(1,407 | ) | (1,580 | ) | (1,037 | ) | ||||||
Death benefits received on bank owned life insurance
|
79 | 0 | 0 | |||||||||
Mortgage servicing rights:
|
||||||||||||
Fair value adjustments
|
1,405 | 769 | 107 | |||||||||
New servicing assets created
|
(526 | ) | (524 | ) | (1,345 | ) | ||||||
Changes in:
|
||||||||||||
Other assets
|
(746 | ) | 1,259 | (13,605 | ) | |||||||
Other liabilities
|
(1,213 | ) | 1,644 | 261 | ||||||||
Net cash provided by operating activities
|
64,326 | 61,304 | 37,709 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Certificates of deposit in other banks:
|
||||||||||||
Purchase of certificates of deposit
|
0 | (16,363 | ) | (29,400 | ) | |||||||
Maturity of certificates of deposit
|
2,887 | 1,701 | 29,400 | |||||||||
Securities available-for-sale:
|
||||||||||||
Purchase of securities
|
(312,615 | ) | (168,612 | ) | (139,999 | ) | ||||||
Proceeds from sales
|
12,045 | 0 | 43,415 | |||||||||
Proceeds from prepayments and maturities
|
117,996 | 127,072 | 97,397 | |||||||||
Securities held-to-maturity:
|
||||||||||||
Purchase of securities
|
(480 | ) | (480 | ) | (480 | ) | ||||||
Proceeds from prepayments and maturities
|
480 | 13,154 | 11,705 | |||||||||
Change in loans, net
|
4,632 | (75,996 | ) | (135,211 | ) | |||||||
Purchase of premises and equipment
|
(3,116 | ) | (2,426 | ) | (2,265 | ) | ||||||
Proceeds from sale of premises and equipment
|
271 | 9 | 24 | |||||||||
Additional investment in Federal Reserve Bank stock
|
(449 | ) | (23 | ) | (11 | ) | ||||||
Redemption of equity securities
|
0 | 0 | 3 | |||||||||
Proceeds from sale of other real estate owned and repossessed assets
|
9,258 | 7,480 | 5,999 | |||||||||
Additional investment in other real estate owned
|
(744 | ) | (225 | ) | (1,928 | ) | ||||||
Additional investment in bank owned life insurance
|
(2,458 | ) | 0 | (12,945 | ) | |||||||
Net cash received in acquisition
|
0 | 2,906 | 0 | |||||||||
Net cash used in investing activities
|
(172,293 | ) | (111,803 | ) | (134,296 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Change in deposits, net
|
172,242 | 79,794 | 130,375 | |||||||||
Change in repurchase agreements, federal funds purchased, and other short-term borrowings, net
|
32,326 | 4,853 | 23,762 | |||||||||
Advances from Federal Home Loan Bank
|
571 | 40,000 | 20,000 | |||||||||
Payments on advances from Federal Home Loan Bank
|
(200 | ) | (40,632 | ) | (60,056 | ) | ||||||
Issuance of common stock
|
1,291 | 1,875 | 2,292 | |||||||||
Excess tax benefits of stock-based compensation
|
(23 | ) | (205 | ) | (411 | ) | ||||||
Dividends paid
|
(18,742 | ) | (18,332 | ) | (18,124 | ) | ||||||
Net cash provided by financing activities
|
187,465 | 67,353 | 97,838 | |||||||||
Net increase in cash and cash equivalents
|
79,498 | 16,854 | 1,251 | |||||||||
Cash and cash equivalents at beginning of year
|
158,983 | 142,129 | 140,878 | |||||||||
Cash and cash equivalents at end of year
|
$ | 238,481 | $ | 158,983 | $ | 142,129 | ||||||
Supplemental disclosures:
|
||||||||||||
Income taxes paid
|
$ | 13,680 | $ | 15,820 | $ | 6,695 | ||||||
Interest paid
|
27,682 | 36,095 | 49,424 | |||||||||
Non-cash activities
|
||||||||||||
Loans to facilitate the sale of other real estate owned and other repossessed assets
|
2,517 | 1,209 | 946 | |||||||||
Common stock dividends accrued, paid in subsequent quarter
|
4,753 | 4,677 | 4,561 | |||||||||
Real estate acquired in settlement of loans
|
31,536 | 11,806 | 33,301 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Beginning balance, January 1
|
$ | 65,499 | $ | 65,059 | $ | 65,059 | ||||||
Acquisition adjustments
|
(9 | ) | 440 | 0 | ||||||||
Ending balance, December 31
|
$ | 65,490 | $ | 65,499 | $ | 65,059 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Beginning balance, January 1
|
$ | 1,342 | $ | 648 | $ | 1,282 | ||||||
Amortization
|
(213 | ) | (430 | ) | (634 | ) | ||||||
Acquisition adjustments
|
(12 | ) | 1,124 | 0 | ||||||||
Ending balance, December 31, 2011
|
$ | 1,117 | $ | 1,342 | $ | 648 |
(in thousands)
|
||||
Fair value of consideration
|
||||
Cash paid (24,759 shares @ $650)
|
$ | 16,093 | ||
Payoff of LaFollette Corporation debt
|
1,213 | |||
Total consideration paid
|
17,306 | |||
Assets acquired
|
||||
Cash
|
20,212 | |||
Loans, net of purchase discounts
|
118,602 | |||
Federal Reserve Bank and Federal Home Loan Bank stock
|
1,036 | |||
Securities
|
29,784 | |||
Other real estate owned
|
2,726 | |||
Premises and equipment
|
7,622 | |||
Accrued interest receivable
|
708 | |||
Core deposit intangible
|
1,124 | |||
Other assets
|
1,824 | |||
Total assets acquired
|
183,638 | |||
Liabilities assumed
|
||||
Deposits
|
164,114 | |||
Repurchase agreements
|
426 | |||
Federal Home Loan Bank advances
|
1,199 | |||
Accrued interest payable
|
158 | |||
Other liabilities
|
875 | |||
Total liabilities assumed
|
166,772 | |||
Net assets acquired
|
16,866 | |||
Goodwill
|
$ | 440 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 32,077 | $ | 1,171 | $ | 0 | $ | 33,248 | ||||||||
State and political subdivisions
|
68,358 | 3,816 | (30 | ) | 72,144 | |||||||||||
U.S. government sponsored agency mortgage-backed securities
|
390,213 | 10,180 | (57 | ) | 400,336 | |||||||||||
Collateralized mortgage obligations
|
501 | 6 | 0 | 507 | ||||||||||||
Total debt securities
|
491,149 | 15,173 | (87 | ) | 506,235 | |||||||||||
Marketable equity securities
|
20,582 | 718 | (137 | ) | 21,163 | |||||||||||
Total available-for-sale securities
|
$ | 511,731 | $ | 15,891 | $ | (224 | ) | $ | 527,398 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
State and political subdivisions
|
$ | 1,182 | $ | 0 | $ | 0 | $ | 1,182 | ||||||||
Other debt securities
|
480 | 0 | (1 | ) | 479 | |||||||||||
Total held-to-maturity securities
|
$ | 1,662 | $ | 0 | $ | (1 | ) | $ | 1,661 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 29,154 | $ | 330 | $ | (230 | ) | $ | 29,254 | |||||||
State and political subdivisions
|
52,017 | 690 | (842 | ) | 51,865 | |||||||||||
U.S. government sponsored agency mortgage-backed securities
|
230,905 | 6,690 | (352 | ) | 237,243 | |||||||||||
Total debt securities
|
312,076 | 7,710 | (1,424 | ) | 318,362 | |||||||||||
Marketable equity securities
|
20,582 | 41 | (310 | ) | 20,313 | |||||||||||
Total available-for-sale securities
|
$ | 332,658 | $ | 7,751 | $ | (1,734 | ) | $ | 338,675 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Fair Value
|
||||||||||||
State and political subdivisions
|
$ | 1,182 | $ | 0 | $ | 0 | $ | 1,182 | ||||||||
Other debt securities
|
480 | 0 | 0 | 480 | ||||||||||||
Total held-to-maturity securities
|
$ | 1,662 | $ | 0 | $ | 0 | $ | 1,662 |
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||||||
(in thousands)
|
Amortized Cost
|
Fair Value
|
Amortized Cost
|
Fair Value
|
||||||||||||
Due in one year or less
|
$ | 5,642 | $ | 5,698 | $ | 0 | $ | 0 | ||||||||
Due after one through five years
|
20,943 | 21,565 | 0 | 0 | ||||||||||||
Due after five through ten years
|
41,496 | 43,362 | 1,182 | 1,182 | ||||||||||||
Due after ten years
|
32,354 | 34,767 | 0 | 0 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
390,213 | 400,336 | 0 | 0 | ||||||||||||
Collateralized mortgage obligations
|
501 | 507 | 0 | 0 | ||||||||||||
Other securities
|
0 | 0 | 480 | 479 | ||||||||||||
Total debt securities
|
491,149 | 506,235 | 1,662 | 1,661 | ||||||||||||
Marketable equity securities
|
20,582 | 21,163 | 0 | 0 | ||||||||||||
Total securities
|
$ | 511,731 | $ | 527,398 | $ | 1,662 | $ | 1,661 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
State and political subdivisions
|
$ | 6,173 | $ | (25 | ) | $ | 6,148 | |||||
U.S. government sponsored agency mortgage-backed securities
|
17,900 | (57 | ) | 17,843 | ||||||||
Total debt securities
|
24,073 | (82 | ) | 23,991 | ||||||||
Marketable equity securities
|
0 | 0 | 0 | |||||||||
24,073 | (82 | ) | 23,991 | |||||||||
12 Months or More
|
||||||||||||
State and political subdivisions
|
613 | (5 | ) | 608 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
0 | 0 | 0 | |||||||||
Total debt securities
|
613 | (5 | ) | 608 | ||||||||
Marketable equity securities
|
329 | (137 | ) | 192 | ||||||||
942 | (142 | ) | 800 | |||||||||
Total
|
||||||||||||
State and political subdivisions
|
6,786 | (30 | ) | 6,756 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
17,900 | (57 | ) | 17,843 | ||||||||
Total debt securities
|
24,686 | (87 | ) | 24,599 | ||||||||
Marketable equity securities
|
329 | (137 | ) | 192 | ||||||||
Total temporarily impaired AFS securities
|
$ | 25,015 | $ | (224 | ) | $ | 24,791 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
State and political subdivisions
|
$ | 0 | $ | 0 | $ | 0 | ||||||
Other debt securities
|
480 | (1 | ) | 479 | ||||||||
Total temporarily impaired HTM securities
|
$ | 480 | $ | (1 | ) | $ | 479 |
(in thousands)
|
Amortized Cost
|
Gross Unrealized Losses
|
Fair Value
|
|||||||||
Less Than 12 Months
|
||||||||||||
U.S. Treasury and government agencies
|
$ | 10,384 | $ | (230 | ) | $ | 10,154 | |||||
State and political subdivisions
|
24,624 | (826 | ) | 23,798 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
30,016 | (352 | ) | 29,664 | ||||||||
Total debt securities
|
65,024 | (1,408 | ) | 63,616 | ||||||||
Marketable equity securities
|
42 | (17 | ) | 25 | ||||||||
65,066 | (1,425 | ) | 63,641 | |||||||||
12 Months or More
|
||||||||||||
U.S. Treasury and government agencies
|
0 | 0 | 0 | |||||||||
State and political subdivisions
|
590 | (16 | ) | 574 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
0 | 0 | 0 | |||||||||
Total debt securities
|
590 | (16 | ) | 574 | ||||||||
Marketable equity securities
|
329 | (293 | ) | 36 | ||||||||
919 | (309 | ) | 610 | |||||||||
Total
|
||||||||||||
U.S. Treasury and government agencies
|
10,384 | (230 | ) | 10,154 | ||||||||
State and political subdivisions
|
25,214 | (842 | ) | 24,372 | ||||||||
U.S. government sponsored agency mortgage-backed securities
|
30,016 | (352 | ) | 29,664 | ||||||||
Total debt securities
|
65,614 | (1,424 | ) | 64,190 | ||||||||
Marketable equity securities
|
371 | (310 | ) | 61 | ||||||||
Total temporarily impaired securities
|
$ | 65,985 | $ | (1,734 | ) | $ | 64,251 |
(in thousands)
|
December 31
2011
|
December 31
2010
|
||||||
Commercial construction
|
$ | 120,577 | $ | 135,091 | ||||
Commercial secured by real estate
|
798,887 | 807,049 | ||||||
Equipment lease financing
|
9,706 | 14,151 | ||||||
Commercial other
|
374,597 | 388,746 | ||||||
Real estate construction
|
53,534 | 56,910 | ||||||
Real estate mortgage
|
650,075 | 623,851 | ||||||
Home equity
|
84,841 | 85,103 | ||||||
Consumer direct
|
123,949 | 126,046 | ||||||
Consumer indirect
|
340,382 | 368,233 | ||||||
Total loans
|
$ | 2,556,548 | $ | 2,605,180 |
(in thousands)
|
2011
|
2010
|
||||||
Beginning balance
|
$ | 2,995 | $ | 0 | ||||
Additions
|
0 | 3,152 | ||||||
Accretion
|
(1,067 | ) | (126 | ) | ||||
Disposals
|
(1,208 | ) | (31 | ) | ||||
Ending balance
|
$ | 720 | $ | 2,995 |
(in thousands)
|
December 31
2011
|
December 31
2010
|
||||||
Commercial:
|
||||||||
Commercial construction
|
$ | 7,029 | $ | 13,138 | ||||
Commercial secured by real estate
|
9,810 | 15,608 | ||||||
Commercial other
|
3,914 | 9,338 | ||||||
Residential:
|
||||||||
Real estate construction
|
607 | 636 | ||||||
Real estate mortgage
|
4,204 | 6,137 | ||||||
Home equity
|
189 | 164 | ||||||
Total nonaccrual loans
|
$ | 25,753 | $ | 45,021 |
December 31, 2011
|
||||||||||||||||||||||||||||
(in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90+ Days Past Due
|
Total Past Due
|
Current
|
Total Loans
|
90+ and Accruing*
|
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
Commercial construction
|
$ | 362 | $ | 33 | $ | 10,171 | $ | 10,566 | $ | 110,011 | $ | 120,577 | $ | 3,292 | ||||||||||||||
Commercial secured by real estate
|
4,566 | 2,978 | 11,998 | 19,542 | 779,345 | 798,887 | 3,969 | |||||||||||||||||||||
Equipment lease financing
|
0 | 0 | 0 | 0 | 9,706 | 9,706 | 0 | |||||||||||||||||||||
Commercial other
|
2,286 | 688 | 2,504 | 5,478 | 369,119 | 374,597 | 619 | |||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||||||
Real estate construction
|
305 | 91 | 622 | 1,018 | 52,516 | 53,534 | 16 | |||||||||||||||||||||
Real estate mortgage
|
2,067 | 4,974 | 6,547 | 13,588 | 636,487 | 650,075 | 2,719 | |||||||||||||||||||||
Home equity
|
968 | 312 | 482 | 1,762 | 83,079 | 84,841 | 346 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer direct
|
1,723 | 171 | 71 | 1,965 | 121,984 | 123,949 | 71 | |||||||||||||||||||||
Consumer indirect
|
2,684 | 755 | 483 | 3,922 | 336,460 | 340,382 | 483 | |||||||||||||||||||||
Total
|
$ | 14,961 | $ | 10,002 | $ | 32,878 | $ | 57,841 | $ | 2,498,707 | $ | 2,556,548 | $ | 11,515 |
December 31, 2010
|
||||||||||||||||||||||||||||
(in thousands)
|
30-59 Days Past Due
|
60-89 Days Past Due
|
90+ Days Past Due
|
Total Past Due
|
Current
|
Total Loans
|
90+ and Accruing*
|
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
Commercial construction
|
$ | 1,800 | $ | 545 | $ | 14,290 | $ | 16,635 | $ | 118,456 | $ | 135,091 | $ | 1,178 | ||||||||||||||
Commercial secured by real estate
|
6,382 | 8,618 | 22,195 | 37,195 | 769,854 | 807,049 | 9,641 | |||||||||||||||||||||
Equipment lease financing
|
0 | 0 | 0 | 0 | 14,151 | 14,151 | 0 | |||||||||||||||||||||
Commercial other
|
6,737 | 539 | 5,039 | 12,315 | 376,431 | 388,746 | 1,692 | |||||||||||||||||||||
Residential:
|
||||||||||||||||||||||||||||
Real estate construction
|
109 | 767 | 1,009 | 1,885 | 55,025 | 56,910 | 372 | |||||||||||||||||||||
Real estate mortgage
|
1,478 | 3,764 | 8,844 | 14,086 | 609,765 | 623,851 | 3,337 | |||||||||||||||||||||
Home equity
|
885 | 276 | 295 | 1,456 | 83,647 | 85,103 | 226 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Consumer direct
|
1,569 | 242 | 70 | 1,881 | 124,165 | 126,046 | 70 | |||||||||||||||||||||
Consumer indirect
|
2,851 | 684 | 498 | 4,033 | 364,200 | 368,233 | 498 | |||||||||||||||||||||
Total
|
$ | 21,811 | $ | 15,435 | $ | 52,240 | $ | 89,486 | $ | 2,515,694 | $ | 2,605,180 | $ | 17,014 |
♦
|
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.
|
♦
|
A
loss
grading applies to loans that are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery value, but rather it is not practical or desirable to defer writing off the asset. Losses must be taken in the period in which they surface as uncollectible, or in the case of collateral-dependent loans, a specific reserve in the amount of the expected loss is applied to the loan until the collateral is liquidated or we have taken possession and moved it into other real estate owned.
|
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Commercial Other
|
Equipment Leases
|
Total
|
|||||||||||||||
December 31, 2011
|
||||||||||||||||||||
Pass
|
$ | 85,886 | $ | 643,312 | $ | 323,471 | $ | 9,706 | $ | 1,062,375 | ||||||||||
Watch
|
17,721 | 78,611 | 38,185 | 0 | 134,517 | |||||||||||||||
OAEM
|
1,379 | 21,087 | 1,668 | 0 | 24,134 | |||||||||||||||
Substandard
|
8,783 | 46,238 | 7,364 | 0 | 62,385 | |||||||||||||||
Doubtful
|
6,808 | 9,639 | 3,909 | 0 | 20,356 | |||||||||||||||
Loss
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total
|
$ | 120,577 | $ | 798,887 | $ | 374,597 | $ | 9,706 | $ | 1,303,767 | ||||||||||
December 31, 2010
|
||||||||||||||||||||
Pass
|
$ | 80,235 | $ | 651,804 | $ | 315,495 | $ | 14,151 | $ | 1,061,685 | ||||||||||
Watch
|
27,510 | 80,128 | 57,716 | 0 | 165,354 | |||||||||||||||
OAEM
|
853 | 8,163 | 731 | 0 | 9,747 | |||||||||||||||
Substandard
|
13,987 | 53,141 | 7,348 | 0 | 74,476 | |||||||||||||||
Doubtful
|
12,506 | 13,813 | 7,456 | 0 | 33,775 | |||||||||||||||
Loss
|
0 | 0 | 0 | 0 | 0 | |||||||||||||||
Total
|
$ | 135,091 | $ | 807,049 | $ | 388,746 | $ | 14,151 | $ | 1,345,037 |
(in thousands)
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer
Indirect
|
Total
|
||||||||||||||||||
December 31, 2011
|
||||||||||||||||||||||||
Performing
|
$ | 52,911 | $ | 643,152 | $ | 84,306 | $ | 123,878 | $ | 339,899 | $ | 1,244,146 | ||||||||||||
Nonperforming (1)
|
623 | 6,923 | 535 | 71 | 483 | 8,635 | ||||||||||||||||||
Total
|
$ | 53,534 | $ | 650,075 | $ | 84,841 | $ | 123,949 | $ | 340,382 | $ | 1,252,781 | ||||||||||||
December 31, 2010
|
||||||||||||||||||||||||
Performing
|
$ | 55,902 | $ | 614,377 | $ | 84,713 | $ | 125,976 | $ | 367,735 | $ | 1,248,703 | ||||||||||||
Nonperforming (1)
|
1,008 | 9,474 | 390 | 70 | 498 | 11,440 | ||||||||||||||||||
Total
|
$ | 56,910 | $ | 623,851 | $ | 85,103 | $ | 126,046 | $ | 368,233 | $ | 1,260,143 |
December 31, 2011
|
||||||||||||||||||||
(in thousands)
|
Recorded Balance
|
Unpaid Contractual Principal Balance
|
Specific Allowance
|
Average Investment in Impaired Loans
|
Interest Income Recognized
|
|||||||||||||||
Loans without a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
$ | 4,778 | $ | 4,778 | $ | 0 | $ | 8,992 | $ | 252 | ||||||||||
Commercial secured by real estate
|
27,811 | 29,765 | 0 | 31,480 | 1,543 | |||||||||||||||
Commercial other
|
1,770 | 2,501 | 0 | 3,392 | 143 | |||||||||||||||
Real estate construction
|
27 | 27 | 0 | 19 | 1 | |||||||||||||||
Real estate mortgage
|
82 | 82 | 0 | 84 | 5 | |||||||||||||||
Consumer direct
|
93 | 93 | 0 | 82 | 9 | |||||||||||||||
Consumer indirect
|
112 | 112 | 0 | 99 | 12 | |||||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
5,794 | 6,643 | 2,203 | 7,681 | 0 | |||||||||||||||
Commercial secured by real estate
|
3,525 | 3,669 | 1,156 | 4,747 | 23 | |||||||||||||||
Commercial other
|
3,432 | 6,022 | 1,310 | 5,071 | 22 | |||||||||||||||
Commercial
|
47,110 | 53,378 | 4,669 | 61,363 | 1,983 | |||||||||||||||
Residential
|
109 | 109 | 0 | 103 | 6 | |||||||||||||||
Consumer
|
205 | 205 | 0 | 181 | 21 | |||||||||||||||
Total
|
$ | 47,424 | $ | 53,692 | $ | 4,669 | $ | 61,647 | $ | 2,010 |
December 31, 2010
|
||||||||||||||||||||
(in thousands)
|
Recorded Balance
|
Unpaid Contractual Principal Balance
|
Specific Allowance
|
Average Investment in Impaired Loans
|
Interest Income Recognized
|
|||||||||||||||
Loans without a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
$ | 6,313 | $ | 6,313 | $ | 0 | $ | 6,262 | $ | 43 | ||||||||||
Commercial secured by real estate
|
23,503 | 24,034 | 0 | 23,629 | 330 | |||||||||||||||
Commercial other
|
4,357 | 4,616 | 0 | 4,407 | 71 | |||||||||||||||
Real estate construction
|
790 | 790 | 0 | 790 | 0 | |||||||||||||||
Real estate mortgage
|
950 | 950 | 0 | 950 | 0 | |||||||||||||||
Loans with a specific valuation allowance:
|
||||||||||||||||||||
Commercial construction
|
9,528 | 10,813 | 2,554 | 9,686 | 0 | |||||||||||||||
Commercial secured by real estate
|
9,188 | 9,358 | 2,575 | 9,191 | 2 | |||||||||||||||
Commercial other
|
8,680 | 10,338 | 3,093 | 8,090 | 85 | |||||||||||||||
Commercial
|
61,569 | 65,472 | 8,222 | 61,265 | 531 | |||||||||||||||
Residential
|
1,740 | 1,740 | 0 | 1,740 | 0 | |||||||||||||||
Total
|
$ | 63,309 | $ | 67,212 | $ | 8,222 | $ | 63,005 | $ | 531 |
(in thousands)
|
December 31
2011
|
December 31
2010
|
||||||
Commercial:
|
||||||||
Commercial construction
|
$ | 5,464 | $ | 2,973 | ||||
Commercial secured by real estate
|
18,881 | 2,511 | ||||||
Commercial other
|
2,445 | 1,156 | ||||||
Residential:
|
||||||||
Real estate construction
|
27 | 0 | ||||||
Real estate mortgage
|
82 | 0 | ||||||
Consumer:
|
||||||||
Consumer direct
|
92 | 0 | ||||||
Consumer indirect
|
112 | 0 | ||||||
Total restructured loans
|
$ | 27,104 | $ | 6,640 |
Year Ended December 31, 2011
|
||||||||||||
(in thousands)
|
Number of Loans
|
Post-Modification Outstanding Balance
|
Net Charge-offs Resulting from Modification
|
|||||||||
Commercial:
|
||||||||||||
Commercial construction
|
7 | $ | 3,457 | $ | 0 | |||||||
Commercial secured by real estate
|
19 | 17,497 | 0 | |||||||||
Commercial other
|
13 | 2,068 | (1 | ) | ||||||||
Residential:
|
||||||||||||
Real estate construction
|
1 | 28 | 0 | |||||||||
Real estate mortgage
|
2 | 82 | 0 | |||||||||
Consumer:
|
||||||||||||
Consumer direct
|
8 | 93 | 0 | |||||||||
Consumer indirect
|
8 | 112 | 0 | |||||||||
Total troubled debt restructurings
|
58 | $ | 23,337 | $ | (1 | ) |
(in thousands)
|
December 31
2011
|
December 31
2010
|
||||||
Commercial:
|
||||||||
Commercial construction
|
$ | 1,323 | $ | 1,633 | ||||
Commercial secured by real estate
|
16,082 | 2,427 | ||||||
Commercial other
|
390 | 771 | ||||||
Residential:
|
||||||||
Real estate construction
|
0 | 0 | ||||||
Real estate mortgage
|
0 | 0 | ||||||
Consumer:
|
||||||||
Consumer direct
|
59 | 0 | ||||||
Consumer indirect
|
112 | 0 | ||||||
Total current restructured loans
|
$ | 17,966 | $ | 4,831 |
(in thousands)
|
Year Ended
December 31, 2011
|
|||||||
Number of Loans
|
Recorded Balance
|
|||||||
Commercial:
|
||||||||
Commercial construction
|
2 | $ | 3,913 | |||||
Commercial secured by real estate
|
2 | 1,669 | ||||||
Commercial other
|
6 | 1,280 | ||||||
Residential:
|
||||||||
Real estate construction
|
0 | 0 | ||||||
Real estate mortgage
|
0 | 0 | ||||||
Consumer:
|
||||||||
Consumer direct
|
1 | 7 | ||||||
Consumer indirect
|
0 | 0 | ||||||
Total defaulted restructured loans
|
11 | $ | 6,869 |
(in thousands)
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Net gain on sale of loans held for sale
|
$ | 1,749 | $ | 1,642 | $ | 4,324 | ||||||
Net loan servicing income (expense)
|
||||||||||||
Servicing fees
|
1,072 | 1,110 | 1,040 | |||||||||
Late fees
|
77 | 74 | 72 | |||||||||
Ancillary fees
|
278 | 269 | 512 | |||||||||
Fair value adjustments
|
(1,405 | ) | (769 | ) | (107 | ) | ||||||
Net loan servicing income (expense)
|
22 | 684 | 1,517 | |||||||||
Mortgage banking income
|
$ | 1,771 | $ | 2,326 | $ | 5,841 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Fair value of MSRs, beginning of period
|
$ | 3,161 | $ | 3,406 | $ | 2,168 | ||||||
New servicing assets created
|
526 | 524 | 1,345 | |||||||||
Change in fair value during the period due to:
|
||||||||||||
Time decay (1)
|
(124 | ) | (161 | ) | (136 | ) | ||||||
Payoffs (2)
|
(439 | ) | (190 | ) | (579 | ) | ||||||
Changes in valuation inputs or assumptions (3)
|
(842 | ) | (418 | ) | 608 | |||||||
Fair value of MSRs, end of period
|
$ | 2,282 | $ | 3,161 | $ | 3,406 |
(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)
|
2011
|
2010
|
||||||
Related party extensions of credit, beginning of period
|
$ | 19,545 | $ | 18,393 | ||||
New loans
|
5,295 | 2,794 | ||||||
Repayments
|
(1,281 | ) | (2,065 | ) | ||||
Decrease due to changes in related parties
|
(699 | ) | 423 | |||||
Related party extensions of credit, end of period
|
$ | 22,860 | $ | 19,545 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
ALLL balance, beginning of year
|
$ | 34,805 | $ | 32,643 | $ | 30,821 | ||||||
Provision charged to operations
|
13,262 | 16,484 | 17,468 | |||||||||
Recoveries
|
2,638 | 3,314 | 3,213 | |||||||||
Charge-offs
|
(17,534 | ) | (17,636 | ) | (18,859 | ) | ||||||
ALLL balance, end of year
|
$ | 33,171 | $ | 34,805 | $ | 32,643 |
2011
|
||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Commercial Other
|
Equipment Lease Financing
|
Real Estate Construction
|
Real Estate Mortgage
|
Home Equity
|
Consumer Direct
|
Consumer Indirect
|
Total
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Balance, beginning of year
|
$ | 4,332 | $ | 12,327 | $ | 7,392 | $ | 148 | $ | 271 | $ | 2,982 | $ | 407 | $ | 1,169 | $ | 5,777 | $ | 34,805 | ||||||||||||||||||||
Provision charged to expense
|
2,171 | 3,304 | 1,867 | (36 | ) | 376 | 2,827 | 310 | 257 | 2,186 | 13,262 | |||||||||||||||||||||||||||||
Losses charged off
|
2,510 | 4,018 | 4,092 | 0 | 319 | 1,589 | 171 | 961 | 3,874 | 17,534 | ||||||||||||||||||||||||||||||
Recoveries
|
30 | 140 | 441 | 0 | 26 | 82 | 16 | 452 | 1,451 | 2,638 | ||||||||||||||||||||||||||||||
Balance, end of year
|
$ | 4,023 | $ | 11,753 | $ | 5,608 | $ | 112 | $ | 354 | $ | 4,302 | $ | 562 | $ | 917 | $ | 5,540 | $ | 33,171 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,203 | $ | 1,156 | $ | 1,310 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 4,669 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 1,820 | $ | 10,597 | $ | 4,298 | $ | 112 | $ | 354 | $ | 4,302 | $ | 562 | $ | 917 | $ | 5,540 | $ | 28,502 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 10,572 | $ | 31,336 | $ | 5,202 | $ | 0 | $ | 27 | $ | 82 | $ | 0 | $ | 93 | $ | 112 | $ | 47,424 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 110,005 | $ | 767,551 | $ | 369,395 | $ | 9,706 | $ | 53,507 | $ | 649,993 | $ | 84,841 | $ | 123,856 | $ | 340,270 | $ | 2,509,124 |
2010
|
||||||||||||||||||||||||||||||||||||||||
(in thousands)
|
Commercial Construction
|
Commercial Secured by Real Estate
|
Commercial Other
|
Equipment Lease Financing
|
Real Estate Construction
|
Real Estate Mortgage
|
Home
Equity
|
Consumer Direct
|
Consumer Indirect
|
Total
|
||||||||||||||||||||||||||||||
Allowance for loan losses
|
||||||||||||||||||||||||||||||||||||||||
Beginning balance
|
$ | 3,381 | $ | 10,961 | $ | 7,472 | $ | 221 | $ | 291 | $ | 3,041 | $ | 455 | $ | 1,258 | $ | 5,563 | $ | 32,643 | ||||||||||||||||||||
Provision charged to expense
|
2,640 | 5,029 | 4,416 | (73 | ) | (17 | ) | 526 | 287 | 532 | 3,144 | 16,484 | ||||||||||||||||||||||||||||
Losses charged off
|
1,695 | 3,826 | 5,184 | 0 | 22 | 684 | 358 | 1,256 | 4,611 | 17,636 | ||||||||||||||||||||||||||||||
Recoveries
|
6 | 163 | 688 | 0 | 19 | 99 | 23 | 635 | 1,681 | 3,314 | ||||||||||||||||||||||||||||||
Ending balance
|
$ | 4,332 | $ | 12,327 | $ | 7,392 | $ | 148 | $ | 271 | $ | 2,982 | $ | 407 | $ | 1,169 | $ | 5,777 | $ | 34,805 | ||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 2,554 | $ | 2,575 | $ | 3,093 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 8,222 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 1,778 | $ | 9,752 | $ | 4,299 | $ | 148 | $ | 271 | $ | 2,982 | $ | 407 | $ | 1,169 | $ | 5,777 | $ | 26,583 | ||||||||||||||||||||
Loans
|
||||||||||||||||||||||||||||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
$ | 15,841 | $ | 32,691 | $ | 13,037 | $ | 0 | $ | 790 | $ | 950 | $ | 0 | $ | 0 | $ | 0 | $ | 63,309 | ||||||||||||||||||||
Collectively evaluated for impairment
|
$ | 119,250 | $ | 774,358 | $ | 375,709 | $ | 14,151 | $ | 56,120 | $ | 622,901 | $ | 85,103 | $ | 126,046 | $ | 368,233 | $ | 2,541,871 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Land and buildings
|
$ | 75,240 | $ | 75,319 | ||||
Leasehold improvements
|
5,113 | 5,022 | ||||||
Furniture, fixtures, and equipment
|
46,463 | 43,967 | ||||||
Construction in progress
|
621 | 928 | ||||||
127,437 | 125,236 | |||||||
Less accumulated depreciation and amortization
|
(73,140 | ) | (69,893 | ) | ||||
Total premises and equipment
|
$ | 54,297 | $ | 55,343 |
(in thousands)
|
2011
|
2010
|
||||||
Beginning balance of other real estate owned
|
$ | 42,935 | $ | 37,333 | ||||
Transfers in at lower of cost or fair value less estimated costs to sell
|
31,536 | 11,806 | ||||||
Additional investment
|
744 | 225 | ||||||
Fair value adjustments charged to expense
|
(6,464 | ) | (689 | ) | ||||
Sale of assets
|
(11,786 | ) | (8,466 | ) | ||||
Properties acquired through acquisition
|
0 | 2,726 | ||||||
Ending balance of other real estate owned
|
$ | 56,965 | $ | 42,935 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Noninterest bearing deposits
|
$ | 584,735 | $ | 525,478 | ||||
NOW accounts
|
19,113 | 33,641 | ||||||
Money market deposits
|
556,765 | 450,289 | ||||||
Savings
|
264,271 | 229,466 | ||||||
Certificates of deposit and other time deposits of $100,000 or more
|
693,655 | 653,629 | ||||||
Certificates of deposit and other time deposits less than $100,000
|
759,820 | 813,614 | ||||||
Total deposits
|
$ | 2,878,359 | $ | 2,706,117 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Savings, NOW, and money market accounts
|
$ | 2,824 | $ | 3,074 | $ | 4,002 | ||||||
Certificates of deposit and other time deposits of $100,000 or more
|
8,778 | 11,695 | 15,059 | |||||||||
Certificates of deposit and other time deposits less than $100,000
|
9,680 | 14,383 | 20,732 | |||||||||
Total interest expense on deposits
|
$ | 21,282 | $ | 29,152 | $ | 39,793 |
Maturities by Period at December 31, 2011
|
||||||||||||||||||||||||||||
(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
|
$ | 693,655 | $ | 627,864 | $ | 38,073 | $ | 11,880 | $ | 3,882 | $ | 11,761 | $ | 195 | ||||||||||||||
Certificates of deposit and other time deposits less than $100,000
|
759,820 | 682,731 | 48,064 | 14,127 | 4,901 | 8,930 | 1,067 | |||||||||||||||||||||
Total maturities
|
$ | 1,453,475 | $ | 1,310,595 | $ | 86,137 | $ | 26,007 | $ | 8,783 | $ | 20,691 | $ | 1,262 |
(in thousands)
|
2011
|
2010
|
||||||
Monthly amortizing
|
$ | 1,609 | $ | 1,238 | ||||
Term
|
20,000 | 20,000 | ||||||
Total FHLB advances
|
$ | 21,609 | $ | 21,238 |
Principal Payments Due by Period at December 31, 2011
|
||||||||||||||||||||||||||||
(in thousands)
|
Total
|
Within 1 Year
|
2 Years
|
3 Years
|
4 Years
|
5 Years
|
After 5 Years
|
|||||||||||||||||||||
Outstanding advances, weighted average interest rate – 2.20%
|
$ | 1,609 | $ | 194 | $ | 138 | $ | 116 | $ | 114 | $ | 111 | $ | 936 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Advance #158, 0.37%, due 1/24/11
|
$ | 0 | $ | 20,000 | ||||
Advance #271, 0.25%, due 1/18/12
|
20,000 | 0 | ||||||
Total term advances
|
$ | 20,000 | $ | 20,000 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Subsidiaries:
|
||||||||
Repurchase agreements
|
$ | 217,177 | $ | 188,275 | ||||
Federal funds purchased
|
13,104 | 9,680 | ||||||
Total short-term debt
|
$ | 230,281 | $ | 197,955 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Parent:
|
||||||||
Junior subordinated debentures, 6.52%, due 6/1/37
|
$ | 61,341 | $ | 61,341 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Current income tax expense
|
$ | 16,905 | $ | 14,393 | $ | 7,684 | ||||||
Deferred income tax expense (benefit)
|
(94 | ) | 219 | 2,918 | ||||||||
Total income tax expense
|
$ | 16,811 | $ | 14,612 | $ | 10,602 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
Computed at the statutory rate
|
$ | 19,602 | 35.23 | % | $ | 16,818 | 35.71 | % | $ | 12,577 | 35.41 | % | ||||||||||||
Decrease resulting from:
|
||||||||||||||||||||||||
Tax-exempt interest
|
(948 | ) | (1.70 | ) | (806 | ) | (1.71 | ) | (739 | ) | (2.08 | ) | ||||||||||||
Housing and new markets credits
|
(1,007 | ) | (1.81 | ) | (507 | ) | (1.08 | ) | (654 | ) | (1.84 | ) | ||||||||||||
Dividends received deduction
|
(183 | ) | (0.33 | ) | (172 | ) | (0.36 | ) | (188 | ) | (0.53 | ) | ||||||||||||
Bank owned life insurance
|
(470 | ) | (0.85 | ) | (477 | ) | (1.01 | ) | (342 | ) | (0.96 | ) | ||||||||||||
ESOP dividend deduction
|
(262 | ) | (0.47 | ) | (245 | ) | (0.53 | ) | (230 | ) | (0.65 | ) | ||||||||||||
Other, net
|
79 | 0.14 | 1 | 0.01 | 178 | 0.50 | ||||||||||||||||||
Total
|
$ | 16,811 | 30.21 | % | $ | 14,612 | 31.03 | % | $ | 10,602 | 29.85 | % |
(in thousands)
|
2011
|
2010
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan and lease losses
|
$ | 11,610 | $ | 12,852 | ||||
Interest on nonperforming loans
|
883 | 1,427 | ||||||
Accrued expenses
|
356 | 582 | ||||||
Dealer reserve valuation
|
982 | 1,119 | ||||||
Allowance for other real estate owned
|
3,964 | 1,755 | ||||||
Write-down of auction rate securities
|
3,969 | 4,162 | ||||||
Other
|
317 | 688 | ||||||
Total deferred tax assets
|
22,080 | 22,585 | ||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
(16,852 | ) | (14,624 | ) | ||||
FHLB stock dividends
|
(4,956 | ) | (4,985 | ) | ||||
Loan fee income
|
(1,092 | ) | (1,288 | ) | ||||
Mortgage servicing rights
|
(799 | ) | (1,106 | ) | ||||
Capitalized lease obligations
|
(766 | ) | (2,275 | ) | ||||
Unrealized gains on AFS securities
|
(6,088 | ) | (2,710 | ) | ||||
Purchase accounting adjustments
|
0 | (354 | ) | |||||
Other
|
(1,028 | ) | (1,460 | ) | ||||
Total deferred tax liabilities
|
(31,581 | ) | (28,802 | ) | ||||
Net deferred tax liability
|
$ | (9,501 | ) | $ | (6,217 | ) |
(in thousands)
|
2011
|
2010
|
||||||
Balance at January 1
|
$ | 163 | $ | 409 | ||||
Additions based on tax positions related to current year
|
0 | 0 | ||||||
Additions for tax positions of prior years
|
0 | 20 | ||||||
Reductions for tax positions of prior years
|
0 | (266 | ) | |||||
Balance at December 31
|
$ | 163 | $ | 163 |
Plan Category
(shares in thousands)
|
Number of Shares to Be Issued Upon Exercise/Vesting
|
Weighted Average Price ($)
|
Shares Available for Future Issuance
|
Equity compensation plans approved by shareholders:
|
|||
Stock options
|
474
|
29.33
|
1,443 (a)
|
Restricted stock
|
97 (c)
|
27.91
|
(a)
|
Performance units
|
(d)
|
(b)
|
(a)
|
Stock appreciation rights (“SARs”)
|
(e)
|
(b)
|
(a)
|
Total
|
1,443
|
(a)
|
Under the 2006 Plan, 1.5 million shares (plus any shares reserved for issuance under the 1998 Stock Option Plan) were authorized for issuance as nonqualified and incentive stock options, SARS, restricted stock and performance units. As of December 31, 2011, the above shares remained available for issuance.
|
(b)
|
Not applicable
|
(c)
|
The maximum number of shares of Restricted Stock that may be granted is 400,000 shares, and the maximum that may be granted to a participant during any calendar year is 40,000 shares.
|
(d)
|
No performance units had been issued as of December 31, 2011. The maximum payment that can be made pursuant to Performance Units granted to any one Participant in any calendar year shall be $250,000.
|
(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 shall be 100,000 shares.
|
Plan Category
(shares in thousands)
|
Shares Available for Future Issuance
|
|||
Shares available at January 1, 2011
|
1,420,778 | |||
1998 Plan forfeitures in 2011
|
42,713 | |||
2006 Plan stock option issuances in 2011
|
0 | |||
2006 Plan restricted stock issuances in 2011
|
(45,542 | ) | ||
2006 Plan forfeitures in 2011
|
24,770 | |||
Shares available for future issuance
|
1,442,719 |
2011
|
2010
|
2009
|
||||||||||
Expected option life (in years)
|
-- | 7.5 | 7.5 | |||||||||
Expected volatility
|
-- | 0.391 | 0.371 | |||||||||
Expected dividend yield
|
-- | 4.78 | % | 4.02 | % | |||||||
Risk-free interest rate
|
-- | 3.139 | % | 2.23 | % |
December 31
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
177,125 | $ | 34.61 | 174,678 | $ | 34.85 | 165,678 | $ | 35.12 | |||||||||||||||
Granted
|
0 | -- | 4,525 | 25.09 | 9,000 | 29.82 | ||||||||||||||||||
Exercised
|
0 | -- | 0 | -- | 0 | -- | ||||||||||||||||||
Forfeited/expired
|
(24,554 | ) | 34.84 | (2,078 | ) | 33.83 | 0 | -- | ||||||||||||||||
Outstanding at end of year
|
152,571 | $ | 34.57 | 177,125 | $ | 34.61 | 174,678 | $ | 34.85 | |||||||||||||||
Exercisable at end of year
|
101,092 | $ | 37.81 | 90,962 | $ | 37.70 | 55,717 | $ | 38.43 |
Nonvested Shares
|
Shares
|
Weighted Average Grant Date Fair Value
|
||||||
Nonvested at January 1, 2011
|
86,163 | $ | 8.35 | |||||
Granted
|
0 | -- | ||||||
Vested
|
(10,130 | ) | 12.89 | |||||
Forfeited
|
(24,554 | ) | 10.29 | |||||
Nonvested at December 31, 2011
|
51,479 | $ | 6.53 |
2006 Option Plan
|
||||||||
Remaining Life
|
Outstanding Options
|
Weighted Average Price
|
||||||
Five years
|
89,846 | $ | 38.95 | |||||
Six years
|
49,200 | 28.32 | ||||||
Seven years
|
9,000 | 29.82 | ||||||
Eight years
|
4,525 | 25.09 | ||||||
Total outstanding
|
152,571 | |||||||
Weighted average price
|
$ | 34.57 |
December 31
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
Grants
|
Weighted Average Fair
Value
|
Grants
|
Weighted Average Fair
Value
|
Grants
|
Weighted Average Fair Value
|
|||||||||||||||||||
Outstanding at beginning of year
|
52,834 | $ | 26.10 | 16,786 | $ | 28.83 | 11,076 | $ | 28.32 | |||||||||||||||
Granted
|
45,542 | 30.09 | 44,996 | 25.09 | 5,710 | 29.82 | ||||||||||||||||||
Exercised
|
(1,617 | ) | 30.09 | (4,474 | ) | 26.14 | 0 | -- | ||||||||||||||||
Forfeited/expired
|
(216 | ) | 30.09 | (4,474 | ) | 26.14 | 0 | -- | ||||||||||||||||
Outstanding at end of year
|
96,543 | $ | 27.91 | 52,834 | $ | 26.10 | 16,786 | $ | 28.83 | |||||||||||||||
Exercisable at end of year
|
0 | -- | 0 | -- | 0 | -- |
December 31
|
2011
|
2010
|
2009
|
|||||||||||||||||||||
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
Options
|
Weighted Average Exercise Price
|
|||||||||||||||||||
Outstanding at beginning of year
|
371,077 | $ | 27.07 | 420,731 | $ | 25.64 | 500,454 | $ | 23.91 | |||||||||||||||
Granted
|
0 | -- | 0 | -- | 0 | -- | ||||||||||||||||||
Exercised
|
(6,824 | ) | 19.63 | (48,730 | ) | 14.66 | (79,723 | ) | 14.75 | |||||||||||||||
Forfeited/expired
|
(42,713 | ) | 29.94 | (924 | ) | 32.44 | 0 | -- | ||||||||||||||||
Outstanding at end of year
|
321,540 | $ | 26.85 | 371,077 | $ | 27.07 | 420,731 | $ | 25.64 | |||||||||||||||
Exercisable at end of year
|
321,540 | $ | 26.85 | 361,077 | $ | 26.92 | 386,498 | $ | 25.03 |
1998 Option Plan
|
||||||||
Remaining Life
|
Outstanding Options
|
Weighted Average Price
|
||||||
One year or less
|
74,819 | $ | 18.94 | |||||
Two years
|
39,062 | 20.99 | ||||||
Three years
|
48,950 | 27.62 | ||||||
Four years
|
69,786 | 30.88 | ||||||
Five years
|
88,923 | 32.44 | ||||||
Total outstanding
|
321,540 | |||||||
Weighted average price
|
$ | 26.84 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Options exercised
|
$ | 27 | $ | 627 | $ | 1,017 | ||||||
Options exercisable
|
833 | 1,206 | 1,057 | |||||||||
Outstanding options
|
833 | 1,206 | 1,057 |
Nonvested Shares
|
Shares
|
Weighted Average Grant Date Fair Value
|
||||||
Nonvested at January 1, 2011
|
10,000 | $ | 10.51 | |||||
Granted
|
0 | -- | ||||||
Vested
|
(10,000 | ) | 10.51 | |||||
Forfeited
|
0 | -- | ||||||
Nonvested at December 31, 2011
|
0 | $ | -- |
(in thousands)
|
Payments
|
Receipts
|
||||||
2012
|
$ | 1,533 | $ | 325 | ||||
2013
|
1,252 | 81 | ||||||
2014
|
747 | 45 | ||||||
2015
|
533 | 28 | ||||||
2016
|
331 | 23 | ||||||
Thereafter
|
2,696 | 0 | ||||||
Total
|
$ | 7,092 | $ | 502 |
(in thousands)
December 31
|
2011
|
2010
|
||||||||||||||
Carrying Amount
|
Estimated Fair Value
|
Carrying Amount
|
Estimated Fair Value
|
|||||||||||||
Financial assets
|
||||||||||||||||
Cash and cash equivalents
|
$ | 238,481 | $ | 238,481 | $ | 158,983 | $ | 158,983 | ||||||||
Certificates of deposit in other banks
|
11,875 | 11,860 | 14,762 | 14,775 | ||||||||||||
Securities available-for-sale
|
527,398 | 527,398 | 338,675 | 338,675 | ||||||||||||
Securities held-to-maturity
|
1,662 | 1,661 | 1,662 | 1,662 | ||||||||||||
Loans held for sale
|
536 | 550 | 455 | 462 | ||||||||||||
Loans, net
|
2,523,377 | 2,520,297 | 2,570,375 | 2,590,818 | ||||||||||||
Federal Home Loan Bank stock
|
25,673 | 25,673 | 25,673 | 25,673 | ||||||||||||
Federal Reserve Bank stock
|
4,883 | 4,883 | 4,434 | 4,434 | ||||||||||||
Accrued interest receivable
|
12,280 | 12,280 | 12,574 | 12,574 | ||||||||||||
Mortgage servicing rights
|
2,282 | 2,282 | 3,161 | 3,161 | ||||||||||||
Financial liabilities
|
||||||||||||||||
Deposits
|
$ | 2,878,359 | $ | 2,879,722 | $ | 2,706,117 | $ | 2,690,960 | ||||||||
Repurchase agreements
|
217,177 | 217,062 | 188,275 | 186,989 | ||||||||||||
Federal funds purchased
|
13,104 | 13,104 | 9,680 | 9,680 | ||||||||||||
Advances from Federal Home Loan Bank
|
21,609 | 21,617 | 21,238 | 21,213 | ||||||||||||
Long-term debt
|
61,341 | 31,030 | 61,341 | 30,894 | ||||||||||||
Accrued interest payable
|
2,171 | 2,171 | 2,848 | 2,848 | ||||||||||||
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, 2011 Using
|
|||||||||||||||
Fair Value
December 31
2011
|
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
|
$ | 33,248 | $ | 0 | $ | 33,248 | $ | 0 | ||||||||
State and political subdivisions
|
72,144 | 0 | 72,144 | 0 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
400,336 | 0 | 400,336 | 0 | ||||||||||||
Collateralized mortgage obligations
|
507 | 507 | 0 | 0 | ||||||||||||
Marketable equity securities
|
21,163 | 20,675 | 277 | 211 | ||||||||||||
Mortgage servicing rights
|
2,282 | 0 | 0 | 2,282 | ||||||||||||
Total recurring assets measured at fair value
|
$ | 529,680 | $ | 21,182 | $ | 506,005 | $ | 2,493 | ||||||||
Assets Measured – Nonrecurring Basis
|
||||||||||||||||
Impaired loans (collateral dependent)
|
$ | 7,898 | $ | 0 | $ | 0 | $ | 7,898 | ||||||||
Other real estate/assets owned
|
16,362 | 0 | 0 | 16,362 | ||||||||||||
Total nonrecurring assets measured at fair value
|
$ | 24,260 | $ | 0 | $ | 0 | $ | 24,260 |
(in thousands)
|
Fair Value Measurements at
December 31, 2010 Using
|
|||||||||||||||
Fair Value
December 31
2010
|
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
|
$ | 29,254 | $ | 0 | $ | 29,254 | $ | 0 | ||||||||
State and political subdivisions
|
51,865 | 0 | 51,865 | 0 | ||||||||||||
U.S. government sponsored agency mortgage-backed securities
|
237,243 | 0 | 237,243 | 0 | ||||||||||||
Collateralized mortgage obligations
|
0 | 0 | 0 | 0 | ||||||||||||
Marketable equity securities
|
20,313 | 20,102 | 0 | 211 | ||||||||||||
Mortgage servicing rights
|
3,161 | 0 | 0 | 3,161 | ||||||||||||
Total recurring assets measured at fair value
|
$ | 341,836 | $ | 20,102 | $ | 318,362 | $ | 3,372 | ||||||||
Assets Measured – Nonrecurring Basis
|
||||||||||||||||
Impaired loans (collateral dependent)
|
$ | 16,589 | $ | 0 | $ | 0 | $ | 16,589 | ||||||||
Other real estate/assets owned
|
4,579 | 0 | 0 | 4,579 | ||||||||||||
Total nonrecurring assets measured at fair value
|
$ | 21,168 | $ | 0 | $ | 0 | $ | 21,168 |
Marketable Equity Securities
(in thousands)
|
2011
|
2010
|
||||||
Beginning balance, January 1
|
$ | 211 | $ | 211 | ||||
Total realized and unrealized gains and losses:
|
||||||||
Included in net income
|
0 | 0 | ||||||
Transfer of securities from Level 3 to Level 2
|
0 | 0 | ||||||
Purchases, issuances, and settlements
|
0 | 0 | ||||||
Ending balance, December 31
|
$ | 211 | $ | 211 |
Mortgage Servicing Rights
(in thousands)
|
2011
|
2010
|
||||||
Beginning balance, January 1
|
$ | 3,161 | $ | 3,406 | ||||
Total realized and unrealized gains and losses:
|
||||||||
Included in net income
|
(842 | ) | (418 | ) | ||||
Issuances
|
526 | 524 | ||||||
Settlements
|
(563 | ) | (351 | ) | ||||
Ending balance, December 31
|
$ | 2,282 | $ | 3,161 |
(in thousands)
|
2011
|
2010
|
||||||
Standby letters of credit
|
$ | 50,201 | $ | 54,690 | ||||
Commitments to extend credit
|
375,736 | 376,858 | ||||||
Total off-balance sheet financial instruments
|
$ | 425,937 | $ | 431,548 |
Actual
|
For Capital Adequacy Purposes
|
|||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||
As of December 31, 2011:
|
||||||||||||||||
Tier 1 capital (to average assets)
|
$ | 289,848 | 9.89 | % | $ | 117,229 | 4.00 | % | ||||||||
Tier 1 capital (to risk weighted assets)
|
289,848 | 13.88 | 83,530 | 4.00 | ||||||||||||
Total capital (to risk weighted assets)
|
381,038 | 15.14 | 201,341 | 8.00 | ||||||||||||
As of December 31, 2010:
|
||||||||||||||||
Tier 1 capital (to average assets)
|
$ | 327,030 | 10.16 | % | $ | 128,752 | 4.00 | % | ||||||||
Tier 1 capital (to risk weighted assets)
|
327,030 | 12.90 | 101,405 | 4.00 | ||||||||||||
Total capital (to risk weighted assets)
|
357,281 | 14.10 | 202,713 | 8.00 |
Actual
|
For Capital Adequacy Purposes
|
To Be Well-Capitalized Under Prompt Corrective Action Provision
|
||||||||||||||||||||||
(in thousands)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
Tier 1 capital (to average assets)
|
$ | 334,553 | 9.51 | % | $ | 140,716 | 4.00 | % | $ | 175,895 | 5.00 | % | ||||||||||||
Tier 1 capital (to risk weighted assets)
|
334,553 | 13.32 | 100,466 | 4.00 | 150,700 | 6.00 | ||||||||||||||||||
Total capital (to risk weighted assets)
|
366,243 | 14.58 | 200,956 | 8.00 | 251,195 | 10.00 |
As of December 31, 2010:
|
||||||||||||||||||||||||
Tier 1 capital (to average assets)
|
$ | 298,614 | 9.58 | % | $ | 124,682 | 4.00 | % | $ | 155,853 | 5.00 | % | ||||||||||||
Tier 1 capital (to risk weighted assets)
|
298,614 | 12.36 | 96,639 | 4.00 | 144,958 | 6.00 | ||||||||||||||||||
Total capital (to risk weighted assets)
|
328,865 | 13.62 | 193,166 | 8.00 | 241,457 | 10.00 |
(in thousands)
December 31
|
2011
|
2010
|
||||||
Assets:
|
||||||||
Cash on deposit
|
$ | 6,105 | $ | 5,805 | ||||
Investment in and advances to subsidiaries
|
421,572 | 393,400 | ||||||
Goodwill
|
4,973 | 4,973 | ||||||
Premises and equipment, net
|
211 | 85 | ||||||
Other assets
|
498 | 893 | ||||||
Total assets
|
$ | 433,359 | $ | 405,156 | ||||
Liabilities and shareholders’ equity:
|
||||||||
Long-term debt
|
$ | 61,341 | $ | 61,341 | ||||
Other liabilities
|
5,152 | 5,177 | ||||||
Total liabilities
|
66,493 | 66,518 | ||||||
Shareholders’ equity
|
366,866 | 338,638 | ||||||
Total liabilities and shareholders’ equity
|
$ | 433,359 | $ | 405,156 |
(in thousands)
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Income:
|
||||||||||||
Dividends from subsidiary banks
|
$ | 20,370 | $ | 34,620 | $ | 18,620 | ||||||
Other income
|
255 | 34 | 24 | |||||||||
Total income
|
20,625 | 34,654 | 18,644 | |||||||||
Expenses:
|
||||||||||||
Interest expense
|
3,999 | 3,999 | 3,999 | |||||||||
Depreciation expense
|
72 | 25 | 12 | |||||||||
Other expenses
|
1,808 | 1,557 | 1,190 | |||||||||
Total expenses
|
5,879 | 5,581 | 5,201 | |||||||||
Income before income taxes and equity in undistributed income of subsidiaries
|
14,746 | 29,073 | 13,443 | |||||||||
Income tax benefit
|
(2,277 | ) | (2,145 | ) | (2,002 | ) | ||||||
Income before equity in undistributed income of subsidiaries
|
17,023 | 31,218 | 15,445 | |||||||||
Equity in undistributed income of subsidiaries
|
21,804 | 1,816 | 9,614 | |||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 |
(in thousands)
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Depreciation
|
72 | 47 | 12 | |||||||||
Equity in undistributed earnings of subsidiaries
|
(21,804 | ) | (1,816 | ) | (9,614 | ) | ||||||
Stock-based compensation
|
555 | 393 | 70 | |||||||||
Excess tax benefit of stock-based compensation
|
23 | 205 | 411 | |||||||||
Changes in:
|
||||||||||||
Other assets
|
395 | 1,795 | (2,432 | ) | ||||||||
Other liabilities
|
0 | 675 | 3,497 | |||||||||
Net cash provided by operating activities
|
18,068 | 34,333 | 17,003 | |||||||||
Cash flows from investing activities:
|
||||||||||||
Purchase of premises and equipment
|
(198 | ) | (98 | ) | (46 | ) | ||||||
Repayment of investments in and advances to subsidiaries
|
(96 | ) | (411 | ) | (466 | ) | ||||||
Additional investment in subsidiaries
|
0 | (17,306 | ) | 0 | ||||||||
Net cash used in investing activities
|
(294 | ) | (17,815 | ) | (512 | ) | ||||||
Cash flows from financing activities:
|
||||||||||||
Issuance of common stock
|
1,291 | 1,875 | 2,292 | |||||||||
Excess tax benefit of stock-based compensation
|
(23 | ) | (205 | ) | (411 | ) | ||||||
Dividends paid
|
(18,742 | ) | (18,332 | ) | (18,124 | ) | ||||||
Net cash used in financing activities
|
(17,474 | ) | (16,662 | ) | (16,243 | ) | ||||||
Net increase (decrease) in cash and cash equivalents
|
300 | (144 | ) | 248 | ||||||||
Cash and cash equivalents at beginning of year
|
5,805 | 5,949 | 5,701 | |||||||||
Cash and cash equivalents at end of year
|
$ | 6,105 | $ | 5,805 | $ | 5,949 |
Year Ended December 31
|
2011
|
2010
|
2009
|
|||||||||
Numerator:
|
||||||||||||
Net income
(in thousands)
|
$ | 38,827 | $ | 33,034 | $ | 25,059 | ||||||
Denominator:
|
||||||||||||
Basic earnings per share:
|
||||||||||||
Weighted average shares
|
15,313,081 | 15,233,858 | 15,128,777 | |||||||||
Diluted earnings per share:
|
||||||||||||
Dilutive effect of equity grants
|
51,112 | 24,936 | 40,137 | |||||||||
Adjusted weighted average shares
|
15,364,193 | 15,258,794 | 15,168,914 | |||||||||
Earnings per share:
|
||||||||||||
Basic earnings per share
|
$ | 2.54 | $ | 2.17 | $ | 1.66 | ||||||
Diluted earnings per share
|
2.53 | 2.16 | 1.65 |
(in thousands)
|
2011
|
2010
|
2009
|
|||||||||
Reclassification adjustment, pretax:
|
||||||||||||
Change in unrealized net gains (losses) arising during year
|
$ | 9,868 | $ | (464 | ) | $ | 5,758 | |||||
Reclassification adjustment for realized gains included in net income
|
(218 | ) | 0 | (654 | ) | |||||||
Change in unrealized gains (losses) on securities available-for-sale
|
9,650 | (464 | ) | 5,104 | ||||||||
Related tax effects:
|
||||||||||||
Change in unrealized net gains (losses) arising during year
|
3,454 | (162 | ) | 2,015 | ||||||||
Reclassification adjustment for realized gains included in net income
|
(76 | ) | 0 | (229 | ) | |||||||
Deferred tax expense (benefit)
|
3,378 | (162 | ) | 1,786 | ||||||||
Reclassification adjustment, net of tax:
|
||||||||||||
Change in unrealized net gains (losses) arising during year
|
6,414 | (302 | ) | 3,743 | ||||||||
Reclassification adjustment for realized gains included in net income
|
(142 | ) | 0 | (425 | ) | |||||||
Change in other comprehensive income
|
$ | 6,272 | $ | (302 | ) | $ | 3,318 |
♦
|
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.
|
Date: March 15, 2012
|
|
/s/ Jean R. Hale | |
Jean R. Hale | |||
Chairman, President and Chief Executive Officer | |||
|
|
/s/ Kevin J. Stumbo | |
Kevin J. Stumbo | |||
Executive Vice President and Treasurer | |||
(Principal Financial Officer) |
Name and Age
(1)
|
Positions and Offices Currently Held
|
Date First Became
Director or
Executive Officer
|
Principal Occupation
|
|
Jean R. Hale; 65
|
Chairman, President and CEO
|
1992
|
Chairman, President and CEO of Community Trust Bancorp, Inc.
|
|
Mark A. Gooch; 53
|
Executive Vice President and Secretary
|
1997
|
President and CEO of Community Trust Bank, Inc.
|
|
Larry W. Jones; 65
|
Executive Vice President
|
2000
|
(2)
|
Executive Vice President/ Central Kentucky Region President of Community Trust Bank, Inc.
|
James B. Draughn; 52
|
Executive Vice President
|
2001
|
Executive Vice President/Operations of Community Trust Bank, Inc.
|
|
Kevin J. Stumbo; 51
|
Executive Vice President and Treasurer
|
2002
|
Executive Vice President/ Controller of Community Trust Bank, Inc.
|
|
Ricky D. Sparkman; 49
|
Executive Vice President
|
2002
|
Executive Vice President/ South Central Region President of Community Trust Bank, Inc.
|
|
Richard W. Newsom; 57
|
Executive Vice President
|
2002
|
Executive Vice President/ Eastern Region President of Community Trust Bank, Inc.
|
|
James J. Gartner; 70
|
Executive Vice President
|
2002
|
Executive Vice President/ Chief Credit Officer of Community Trust Bank, Inc.
|
|
Steven E. Jameson; 55
|
Executive Vice President
|
2004
|
(3)
|
Executive Vice President/ Chief Internal Audit & Risk Officer
|
D. Andrew Jones; 49
|
Executive Vice President
|
2010
|
(4)
|
Executive Vice President/ Northeastern Region President of Community Trust Bank, Inc.
|
Andy D. Waters; 46
|
Executive Vice President
|
2011
|
(5)
|
President and CEO of Community Trust and Investment Company
|
(1)
|
The ages listed for CTBI's executive officers are as of February 29, 2012.
|
(2)
|
Mr. Larry Jones was named Executive Vice President/Central Kentucky Region President of Community Trust Bank, Inc. in November 2010. Mr. Jones had served as Executive Vice President/Northeastern Region President since September 2002.
|
(3)
|
Mr. Jameson is a non-voting member of the Executive Committee.
|
(4)
|
Mr. Andrew Jones replaced Mr. Larry Jones as Executive Vice President/Northeastern Region President. Mr. Andrew Jones has been employed by Community Trust Bank, Inc. since 1987. His most recent position was Senior Vice President/Senior Lender of the Ashland Market which he had held since 2002.
|
(5)
|
Mr. Waters has been with Community Trust and Investment Company since 2004, serving as Senior Vice President/Manager of Trust and Estate Services prior to becoming President and CEO effective January 1, 2011.
|
A
|
B
|
C
|
|
Plan Category
(shares in thousands)
|
Number of Common Shares to be Issued Upon Exercise/Vesting
|
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:
|
|
||
Stock options
|
474
|
29.33
|
1,443
|
Restricted stock
|
97
|
27.91
|
|
Equity compensation plans not approved by shareholders
|
0
|
--
|
0
|
Total
|
1,443
|
COMMUNITY TRUST BANCORP, INC. | |||
Date: March 15, 2012
|
By:
|
/s/ Jean R. Hale | |
Jean R. Hale | |||
Chairman, President and Chief Executive Officer | |||
|
|
/s/ Kevin J. Stumbo | |
Kevin J. Stumbo | |||
Executive Vice President and Treasurer | |||
(Principal Financial Officer) |
March 15, 2012
|
/s/ Jean R. Hale
|
Chairman, President, and Chief Executive Officer
|
Jean R. Hale
|
||
March 15, 2012
|
/s/ Kevin J. Stumbo
|
Executive Vice President and Treasurer
(Principal Financial Officer)
|
Kevin J. Stumbo
|
||
March 15, 2012
|
/s/ Charles J. Baird
|
Director
|
Charles J. Baird
|
||
March 15, 2012
|
/s/ Nick Carter
|
Director
|
Nick Carter
|
||
March 15, 2012
|
/s/ Nick A. Cooley
|
Director
|
Nick A. Cooley
|
||
March 15, 2012
|
/s/ James E. McGhee, II
|
Director
|
James E. McGhee II
|
||
March 15, 2012
|
/s/ M. Lynn Parrish
|
Director
|
M. Lynn Parrish
|
||
March 15, 2012
|
/s/ James R. Ramsey
|
Director
|
James R. Ramsey
|
||
March 15, 2012
|
/s/ Anthony W. St. Charles
|
Director
|
Anthony W. St. Charles
|
Total % of Restricted Shares Vested | Applicable Vesting Date (% Vesting) |
25% | First Anniversary of Grant Date (25%) |
50%
|
Second Anniversary of Grant Date (25%) |
75% |
Third Anniversary of Grant Date (25%)
|
100% | Fourth Anniversary of Grant Date (25%) |
Community Trust Bancorp, Inc.
By:
Title:
Chairman, President & CEO
(“Company”)
(Signature of Employee)
(Printed Name of Employee)
|
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%
|
|
(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 operation 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.
|
|
(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 operation 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.
|