v3.26.1
Fair Value of Financial Assets and Liabilities (Tables)
3 Months Ended
Mar. 31, 2026
Fair Value of Financial Assets and Liabilities [Abstract]  
Fair Value Measurements of Assets Measured on Recurring Basis
The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a recurring basis and indicate the level within the fair value hierarchy of the valuation techniques.

         
Fair Value Measurements at
March 31, 2026 Using
 
(in thousands)
 
Fair Value
   
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Assets measured – recurring basis
                       
Available-for-sale securities:
                       
U.S. Treasury and government agencies
 
$
160,469
   
$
0
   
$
160,469
   
$
0
 
State and political subdivisions
   
263,881
     
0
     
263,881
     
0
 
Agency mortgage-backed securities
   
641,461
     
0
     
641,461
     
0
 
Asset-backed securities
   
22,394
     
0
     
22,394
     
0
 
Equity securities at fair value
   
3,666
     
0
     
0
     
3,666
 
Mortgage servicing rights
   
6,728
     
0
     
0
     
6,728
 

         
Fair Value Measurements at
December 31, 2025 Using
 
(in thousands)
 
Fair Value
   
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant Unobservable Inputs
(Level 3)
 
Assets measured – recurring basis
                       
Available-for-sale securities:
                       
U.S. Treasury and government agencies
 
$
235,759
   
$
0
   
$
235,759
   
$
0
 
State and political subdivisions
   
266,891
     
0
     
266,891
     
0
 
Agency mortgage-backed securities
   
588,262
     
0
     
588,262
     
0
 
Asset-backed securities
   
29,807
     
0
     
29,807
     
0
 
Equity securities at fair value
   
4,154
     
0
     
0
     
4,154
 
Mortgage servicing rights
   
6,751
     
0
     
0
     
6,751
 
Reconciliation of Beginning and Ending Balance of Recurring Fair Value Measurements Using Significant Unobservable (Level 3) Inputs
Following is a reconciliation of the beginning and ending balances of recurring fair value measurements, for the periods indicated, using significant unobservable (Level 3) inputs:

   
Three Months Ended
March 31
 
   
2026
   
2025
 
(in thousands)
 
Equity
Securities
at Fair
Value
   
Mortgage
Servicing
Rights
   
Equity
Securities
at Fair
Value
   
Mortgage
Servicing
Rights
 
Beginning balance
 
$
4,154
   
$
6,751
   
$
3,781
   
$
7,357
 
Total unrealized gains (losses)
                               
Included in net income
   
(488
)
   
146
     
480
     
(113
)
Issues
   
0
     
22
     
0
     
20
 
Settlements
   
0
     
(191
)
   
0
     
(171
)
Ending balance
 
$
3,666
   
$
6,728
   
$
4,261
   
$
7,093
 
                                 
Total gains (losses) for the period included in net income attributable to the change in unrealized gains or losses related to assets still held at the reporting date
 
$
(488
)
 
$
146
   
$
480
   
$
(113
)
Realized and Unrealized Gains and Losses for Items Included in Net Income in Consolidated Statements of Income
Realized and unrealized gains and losses for items reflected in the tables above are included in net income in the consolidated statements of income as follows:

Noninterest Income
     
   
Three Months Ended
March 31
 
(in thousands)
 
2026
   
2025
 
Total gains (losses)
 
$
(533
)
 
$
196
 
Fair Value Measurements of Assets Measured on Nonrecurring Basis
The following tables present the fair value measurements of assets recognized in the accompanying balance sheets measured at fair value on a nonrecurring basis as of March 31, 2026 and December 31, 2025 and indicate the level within the fair value hierarchy of the valuation techniques.

         
Fair Value Measurements at
March 31, 2026 Using
 
(in thousands)
 
Fair Value
   
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Assets measured – nonrecurring basis
                       
Other real estate owned
 
$
26
   
$
0
   
$
0
   
$
26
 
         
Fair Value Measurements at
December 31, 2025 Using
 
(in thousands)
 
Fair Value
   
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Assets measured – nonrecurring basis
                       
Collateral dependent loans
 
$
697
   
$
0
   
$
0
   
$
697
 
Other real estate owned
   
13
     
0
     
0
     
13
 
Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements for the periods indicated.
   
Quantitative Information about Level 3 Fair Value Measurements
 
(in thousands)
 
Fair Value at
March 31,
2026
 
Valuation
Technique(s)
Unobservable Input
 
Range (Weighted
Average)
 
Equity securities at fair value
 
$
3,666
 
Discounted cash flows
Discount rate
 
8.0% - 12.0%
(10.0%)

             
Conversion date
 
Dec 2027 - Dec 2029
(Dec 2028)

                 
Mortgage servicing rights
 
$
6,728
 
Discounted cash flows
Constant prepayment rate
 
5.5% - 28.9%
(6.5%)

             
Cost to service
 
$66 - $450
($77)

             
Probability of default
 
0.0% - 100.0%
(1.5%)

             
Discount rate
 
9.00% - 12.82%
(9.7%)

                 
Other real estate owned
 
$
26
 
Market comparable properties
Comparability adjustments
 
10.34% - 10.34%
(10.34%)


   
Quantitative Information about Level 3 Fair Value Measurements
 
(in thousands)
 
Fair Value at
December 31,
2025
 
Valuation
Technique(s)
Unobservable Input
 
Range (Weighted
Average)
 
Equity securities at fair value
 
$
4,154
 
Discounted cash flows
Discount rate
 
8.0% - 12.0%
(10.0%)

             
Conversion date
 
Dec 2027 - Dec 2029
(Dec 2028)
 
                   
Mortgage servicing rights
 
$
6,751
 
Discounted cash flows
Constant prepayment rate
 
5.5% - 30.4%
(6.5%)

             
Cost to service
 
$67 - $817
($77)

             
Probability of default
 
0.0% - 100.0%
(1.5%)

             
Discount rate
 
9.0% - 11.5%
(9.7%)

                   
Collateral-dependent loans
 
$
697
 
Market comparable properties
Marketability discount
 
24.2% - 24.2%
(24.2%)

                   
Other real estate owned
 
$
13
 
Market comparable properties
Comparability adjustments
 
0.0% - 0.0%
(0.0%)

Fair Value of Financial Instruments and Levels within Fair Value Hierarchy of Valuation Techniques
The following tables present estimated fair value of CTBI’s financial instruments as of March 31, 2026 and December 31, 2025 and indicate the level within the fair value hierarchy of the valuation techniques.

         
Fair Value Measurements
at March 31, 2026 Using
 
(in thousands)
 
Carrying
Amount
   
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
                       
Cash and cash equivalents
 
$
358,655
   
$
358,655
   
$
0
   
$
0
 
Certificates of deposit in other banks
   
245
     
0
     
245
     
0
 
Debt securities available-for-sale
   
1,088,205
     
0
     
1,088,205
     
0
 
Equity securities at fair value
   
3,666
     
0
     
0
     
3,666
 
Loans held for sale
   
73
     
74
     
0
     
0
 
Loans, net
   
4,929,500
     
0
     
0
     
4,976,103
 
Federal Home Loan Bank stock
   
5,200
     
0
     
5,200
     
0
 
Federal Reserve Bank stock
   
4,887
     
0
     
4,887
     
0
 
Mortgage servicing rights
   
6,728
     
0
     
0
     
6,728
 
Accrued interest receivable
   
25,591
     
0
     
25,591
     
0
 
                                 
Financial liabilities:
                               
Deposits
 
$
5,434,220
   
$
1,262,835
   
$
3,966,881
   
$
0
 
Repurchase agreements
   
298,721
     
0
     
298,686
     
0
 
Federal funds purchased
   
500
     
0
     
500
     
0
 
Advances from Federal Home Loan Bank
   
288
     
0
     
299
     
0
 
Long-term debt
   
63,724
     
0
     
57,716
     
0
 
Accrued interest payable
   
11,567
     
0
     
11,567
     
0
 
                                 
Unrecognized financial instruments:
                               
Letters of credit
 
$
0
   
$
0
   
$
0
   
$
0
 
Commitments to extend credit
   
0
     
0
     
0
     
0
 
Forward sale commitments
   
0
     
0
     
0
     
0
 
         
Fair Value Measurements
at December 31, 2025 Using
 
(in thousands)
 
Carrying
Amount
   
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
   
Significant
Other
Observable
Inputs
(Level 2)
   
Significant
Unobservable
Inputs
(Level 3)
 
Financial assets:
                       
Cash and cash equivalents
 
$
363,684
   
$
363,684
   
$
0
   
$
0
 
Certificates of deposit in other banks
   
245
     
0
     
245
     
0
 
Debt securities available-for-sale
   
1,120,719
     
0
     
1,120,719
     
0
 
Equity securities at fair value
   
4,154
     
0
     
0
     
4,154
 
Loans held for sale
   
211
     
214
     
0
     
0
 
Loans, net
   
4,834,773
     
0
     
0
     
4,918,385
 
Federal Home Loan Bank stock
   
5,200
     
0
     
5,200
     
0
 
Federal Reserve Bank stock
   
4,887
     
0
     
4,887
     
0
 
Mortgage servicing rights
   
6,751
     
0
     
0
     
6,751
 
Accrued interest receivable
   
25,957
     
0
     
25,957
     
0
 
                                 
Financial liabilities:
                               
Deposits
 
$
5,389,058
   
$
1,263,243
   
$
3,896,447
   
$
0
 
Repurchase agreements
   
308,799
     
0
     
308,769
     
0
 
Federal funds purchased
   
500
     
0
     
500
     
0
 
Advances from Federal Home Loan Bank
   
293
     
0
     
304
     
0
 
Long-term debt
   
63,784
     
0
     
60,483
     
0
 
Accrued interest payable
   
8,535
     
0
     
8,535
     
0
 
                                 
Unrecognized financial instruments:
                               
Letters of credit
 
$
0
   
$
0
   
$
0
   
$
0
 
Commitments to extend credit
   
0
     
0
     
0
     
0
 
Forward sale commitments
   
0
     
0
     
0
     
0