XML 21 R10.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Securities
 3 Months Ended
Mar. 31, 2024
Securities [Abstract]  
Securities
Note 3 – Securities


The amortized cost and fair value of debt securities at March 31, 2024 are summarized as follows:

Available-for-Sale

(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
U.S. Treasury and government agencies
  
$
367,961
    
$
115
    
$
(27,575
)
  
$
340,501
  
State and political subdivisions
    
311,207
      
31
      
(49,808
)
    
261,430
  
U.S. government sponsored agency mortgage-backed securities
    
500,922
      
228
      
(64,774
)
    
436,376
  
Asset-backed securities
    
73,660
      
0
      
(462
)
    
73,198
  
Total available-for-sale securities
  
$
1,253,750
    
$
374
    
$
(142,619
)
  
$
1,111,505
  


The amortized cost and fair value of debt securities at December 31, 2023 are summarized as follows:

Available-for-Sale

(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
U.S. Treasury and government agencies
  
$
381,268
    
$
121
    
$
(26,572
)
  
$
354,817
  
State and political subdivisions
    
313,147
      
88
      
(48,290
)
    
264,945
  
U.S. government sponsored agency mortgage-backed securities
    
518,836
      
36
      
(62,136
)
    
456,736
  
Asset-backed securities
    
87,993
      
0
      
(767
)
    
87,226
  
Total available-for-sale securities
  
$
1,301,244
    
$
245
    
$
(137,765
)
  
$
1,163,724
  



The amortized cost and fair value of debt securities at March 31, 2024 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

 
Available-for-Sale
  
(in thousands)
  
Amortized
Cost
    
Fair Value
  
Due in one year or less
  
$
105,493
    
$
102,371
  
Due after one through five years
    
275,234
      
249,805
  
Due after five through ten years
    
136,040
      
118,168
  
Due after ten years
    
162,401
      
131,587
  
U.S. government sponsored agency mortgage-backed securities
    
500,922
      
436,376
  
Asset-backed securities
    
73,660
      
73,198
  
Total debt securities
  
$
1,253,750
    
$
1,111,505
  


During the three months ended March 31, 2024, we had an unrealized gain of $371 thousand from the fair value adjustment of equity securities.  During the three months ended March 31, 2023, we had a net securities gain of $218 thousand, consisting of a pre-tax gain of $4 thousand on the sale of AFS securities and an unrealized gain of $214 thousand from the fair value adjustment of equity securities.


Equity Securities at Fair Value


CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value.  Equity securities at fair value as of March 31, 2024 were $3.5 million, as a result of a $371 thousand increase in the fair value in the first quarter 2024.  The fair value of equity securities increased $214 thousand in the first quarter 2023.  No equity securities were sold during the three months ended March 31, 2024 and 2023.



The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $737.6 million at March 31, 2024 and $761.5 million at December 31, 2023.


The amortized cost of securities sold under agreements to repurchase amounted to $332.4 million at March 31, 2024 and $333.6 million at December 31, 2023.


CTBI evaluates its investment portfolio on a quarterly basis for impairment.  The analysis performed as of March 31, 2024 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related.  The percentage of total debt securities with unrealized losses as of March 31, 2024 was 96.8% compared to 97.3% as of December 31, 2023.  The following table provides the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of March 31, 2024 that are not deemed to have credit losses.


Available-for-Sale

(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Losses
    
Fair Value
  
Less Than 12 Months
                  
U.S. Treasury and government agencies
  
$
2,785
    
$
(1
)
  
$
2,784
  
State and political subdivisions
    
11,081
      
(234
)
    
10,847
  
U.S. government sponsored agency mortgage-backed securities
    
2,869
      
(18
)
    
2,851
  
Asset-backed securities
    
1,932
      
(3
)
    
1,929
  
Total <12 months
    
18,667
      
(256
)
    
18,411
  
                         
12 Months or More
                        
U.S. Treasury and government agencies
    
351,685
      
(27,574
)
    
324,111
  
State and political subdivisions
    
297,619
      
(49,574
)
    
248,045
  
U.S. government sponsored agency mortgage-backed securities
    
479,271
      
(64,756
)
    
414,515
  
Asset-backed securities
    
71,728
      
(459
)
    
71,269
  
Total ≥12 months
    
1,200,303
      
(142,363
)
    
1,057,940
  
                         
Total
                        
U.S. Treasury and government agencies
    
354,470
      
(27,575
)
    
326,895
  
State and political subdivisions
    
308,700
      
(49,808
)
    
258,892
  
U.S. government sponsored agency mortgage-backed securities
    
482,140
      
(64,774
)
    
417,366
  
Asset-backed securities
    
73,660
      
(462
)
    
73,198
  
Total
  
$
1,218,970
    
$
(142,619
)
  
$
1,076,351
  


The analysis performed as of December 31, 2023 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related.  The following table provides the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2023 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Losses
    
Fair Value
  
Less Than 12 Months
                  
U.S. Treasury and government agencies
  
$
3,761
    
$
(5
)
  
$
3,756
  
State and political subdivisions
    
16,154
      
(1,250
)
    
14,904
  
U.S. government sponsored agency mortgage-backed securities
    
16,056
      
(289
)
    
15,767
  
Asset-backed securities
    
0
      
0
   
0
  
Total <12 months
    
35,971
      
(1,544
)
    
34,427
  
                         
12 Months or More
                        
U.S. Treasury and government agencies
    
361,038
      
(26,567
)
    
334,471
  
State and political subdivisions
    
284,397
      
(47,040
)
    
237,357
  
U.S. government sponsored agency mortgage-backed securities
    
500,763
      
(61,847
)
    
438,916
  
Asset-backed securities
    
87,993
      
(767
)
    
87,226
  
Total ≥12 months
    
1,234,191
      
(136,221
)
    
1,097,970
  
                         
Total
                        
U.S. Treasury and government agencies
    
364,799
      
(26,572
)
    
338,227
  
State and political subdivisions
    
300,551
      
(48,290
)
    
252,261
  
U.S. government sponsored agency mortgage-backed securities
    
516,819
      
(62,136
)
    
454,683
  
Asset-backed securities
    
87,993
      
(767
)
    
87,226
  
Total
  
$
1,270,162
    
$
(137,765
)
  
$
1,132,397
  

U.S. Treasury and Government Agencies


The unrealized losses in U.S. Treasury and government agencies were caused by interest rate changes.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity.  CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost.

State and Political Subdivisions


The unrealized losses in securities of state and political subdivisions were caused by interest rate changes.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity.  CTBI does not intend to sell the investments before recovery of their amortized cost and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost.

U.S. Government Sponsored Agency Mortgage-Backed Securities


The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate changes.  CTBI expects to recover the amortized cost basis over the term of the securities.  CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost.

Asset-Backed Securities


The unrealized losses in asset-backed securities were caused by interest rate changes.  The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity.  CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost.