Repurchase Agreements

3 Months Ended

Mar. 31, 2024

Note 6 – Repurchase Agreements

We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets.

We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of investment securities available-for-sale pledged as collateral under repurchase agreements totaled $294.1 million and $296.6 million at March 31, 2024 and December 31, 2023, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of March 31, 2024 and December 31, 2023 is presented in the following tables:

	March 31, 2024
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	22,889	$	0	$	22,000	$	4,673	$	49,562
State and political subdivisions		103,406		0		0		11,072		114,478
U.S. government sponsored agency mortgage-backed securities		18,425		0		0		48,209		66,634
Asset-backed securities		3,997		0		0		0		3,997
Total	$	148,717	$	0	$	22,000	$	63,954	$	234,671

	December 31, 2023
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	21,156	$	19	$	1,817	$	23,640	$	46,632
State and political subdivisions		98,053		481		5,962		3,219		107,715
U.S. government sponsored agency mortgage-backed securities		17,538		0		41,521		9,269		68,328
Asset-backed securities		2,570		0		0		0		2,570
Total	$	139,317	$	500	$	49,300	$	36,128	$	225,245