| Securities |
Note 2 – Securities
The amortized cost and fair value of debt securities available-for-sale at March 31, 2026 and December 31, 2025 are summarized as follows:
| |
|
March 31, 2026
|
|
|
(in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair Value
|
|
|
U.S. Treasury and government agencies
|
|
$
|
168,047 |
|
|
$
|
58 |
|
|
$
|
(7,636 |
)
|
|
$
|
160,469 |
|
|
State and political subdivisions
|
|
|
302,785 |
|
|
|
75 |
|
|
|
(38,979 |
)
|
|
|
263,881 |
|
|
Agency mortgage-backed securities
|
|
|
685,399 |
|
|
|
682 |
|
|
|
(44,620 |
)
|
|
|
641,461 |
|
|
Asset-backed securities
|
|
|
22,488 |
|
|
|
24 |
|
|
|
(118 |
)
|
|
|
22,394 |
|
|
Total available-for-sale securities
|
|
$
|
1,178,719 |
|
|
$
|
839 |
|
|
$
|
(91,353 |
)
|
|
$
|
1,088,205 |
|
| |
|
December 31, 2025
|
|
|
(in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair Value
|
|
|
U.S. Treasury and government agencies
|
|
$
|
243,840 |
|
|
$
|
65 |
|
|
$
|
(8,146 |
)
|
|
$
|
235,759 |
|
|
State and political subdivisions
|
|
|
303,118 |
|
|
|
117 |
|
|
|
(36,344 |
)
|
|
|
266,891 |
|
|
Agency mortgage-backed securities
|
|
|
630,172 |
|
|
|
1,119 |
|
|
|
(43,029 |
)
|
|
|
588,262 |
|
|
Asset-backed securities
|
|
|
29,808 |
|
|
|
57 |
|
|
|
(58 |
)
|
|
|
29,807 |
|
|
Total available-for-sale securities
|
|
$
|
1,206,938 |
|
|
$
|
1,358 |
|
|
$
|
(87,577 |
)
|
|
$
|
1,120,719 |
|
The amounts reported in the preceding tables exclude accrued interest on securities of $4.4 million and $4.5 million at March 31, 2026 and December 31, 2025, respectively, which is presented as a component of accrued interest receivable in the consolidated balance sheets.
The amortized cost and fair value of debt securities at March 31, 2026 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
|
|
$
|
13,979 |
|
|
$
|
13,885 |
|
|
Due after one through five years
|
|
|
227,853 |
|
|
|
216,136 |
|
|
Due after five through ten years
|
|
|
122,634 |
|
|
|
107,884 |
|
|
Due after ten years
|
|
|
106,366 |
|
|
|
86,445 |
|
|
Agency mortgage-backed securities
|
|
|
685,399 |
|
|
|
641,461 |
|
|
Asset-backed securities
|
|
|
22,488 |
|
|
|
22,394 |
|
|
Total debt securities
|
|
$
|
1,178,719 |
|
|
$
|
1,088,205 |
|
During the three months ended March 31, 2026 and 2025, we had an unrealized loss of $488 thousand and an unrealized gain of $480 thousand, respectively, from the fair value adjustment of equity securities.
The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $592.8 million and $602.6 million at March 31, 2026 and December 31, 2025, respectively. The fair value of securities pledged was $545.1 million and $556.9 million at March 31, 2026 and December 31, 2025, respectively.
The amortized cost of securities sold under agreements to repurchase amounted to $397.5 million and $386.8 million at March 31, 2026 and December 31, 2025, respectively. The fair value of securities pledged was $365.6 million and $358.1 million at March 31, 2026 and December 31, 2025, respectively. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of March 31, 2026 and December 31, 2025 indicates that all impairment is market and interest rate driven and not credit-related. The percentage of total debt securities with unrealized losses as of March 31, 2026 was 86.7% compared to 85.4% as of December 31, 2025. The following tables provide the amortized cost, gross unrealized losses, and fair value of debt securities available-for-sale, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of the periods indicated that are not deemed to have credit losses.
| |
|
March 31, 2026
|
|
|
(in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair Value
|
|
|
Less Than 12 Months
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
$
|
823 |
|
|
$
|
(3 |
)
|
|
$
|
820 |
|
|
State and political subdivisions
|
|
|
25,176 |
|
|
|
(1,479 |
)
|
|
|
23,697 |
|
|
Agency mortgage-backed securities
|
|
|
186,784 |
|
|
|
(1,612 |
)
|
|
|
185,172 |
|
|
Asset-backed securities
|
|
|
8,516 |
|
|
|
(62 |
)
|
|
|
8,454 |
|
|
Total <12 months AFS securities with unrealized losses
|
|
|
221,299 |
|
|
|
(3,156 |
)
|
|
|
218,143 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months or More
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
|
163,641 |
|
|
|
(7,633 |
)
|
|
|
156,008 |
|
|
State and political subdivisions
|
|
|
265,604 |
|
|
|
(37,500 |
)
|
|
|
228,104 |
|
|
Agency mortgage-backed securities
|
|
|
372,343 |
|
|
|
(43,008 |
)
|
|
|
329,335 |
|
|
Asset-backed securities
|
|
|
11,953 |
|
|
|
(56 |
)
|
|
|
11,897 |
|
|
Total ≥12 months AFS securities with unrealized losses
|
|
|
813,541 |
|
|
|
(88,197 |
)
|
|
|
725,344 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
|
164,464 |
|
|
|
(7,636 |
)
|
|
|
156,828 |
|
|
State and political subdivisions
|
|
|
290,780 |
|
|
|
(38,979 |
)
|
|
|
251,801 |
|
|
Agency mortgage-backed securities
|
|
|
559,127 |
|
|
|
(44,620 |
)
|
|
|
514,507 |
|
|
Asset-backed securities
|
|
|
20,469 |
|
|
|
(118 |
)
|
|
|
20,351 |
|
|
Total AFS securities with unrealized losses
|
|
$
|
1,034,840 |
|
|
$
|
(91,353 |
)
|
|
$
|
943,487 |
|
| |
|
December 31, 2025
|
|
|
(in thousands)
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Losses
|
|
|
Fair Value
|
|
|
Less Than 12 Months
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
$
|
954 |
|
|
$
|
(2 |
)
|
|
$
|
952 |
|
|
State and political subdivisions
|
|
|
8,129 |
|
|
|
(1,232 |
)
|
|
|
6,897 |
|
|
Agency mortgage-backed securities
|
|
|
113,962 |
|
|
|
(633 |
)
|
|
|
113,329 |
|
|
Asset-backed securities
|
|
|
6,911 |
|
|
|
(2 |
)
|
|
|
6,909 |
|
|
Total <12 months AFS securities with unrealized losses
|
|
|
129,956 |
|
|
|
(1,869 |
)
|
|
|
128,087 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Months or More
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
|
238,808 |
|
|
|
(8,144 |
)
|
|
|
230,664 |
|
|
State and political subdivisions
|
|
|
274,927 |
|
|
|
(35,112 |
)
|
|
|
239,815 |
|
|
Agency mortgage-backed securities
|
|
|
384,506 |
|
|
|
(42,396 |
)
|
|
|
342,110 |
|
|
Asset-backed securities
|
|
|
16,235 |
|
|
|
(56 |
)
|
|
|
16,179 |
|
|
Total ≥12 months AFS securities with unrealized losses
|
|
|
914,476 |
|
|
|
(85,708 |
)
|
|
|
828,768 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury and government agencies
|
|
|
239,762 |
|
|
|
(8,146 |
)
|
|
|
231,616 |
|
|
State and political subdivisions
|
|
|
283,056 |
|
|
|
(36,344 |
)
|
|
|
246,712 |
|
|
Agency mortgage-backed securities
|
|
|
498,468 |
|
|
|
(43,029 |
)
|
|
|
455,439 |
|
|
Asset-backed securities
|
|
|
23,146 |
|
|
|
(58 |
)
|
|
|
23,088 |
|
|
Total AFS securities with unrealized losses
|
|
$
|
1,044,432 |
|
|
$
|
(87,577 |
)
|
|
$
|
956,855 |
|
Equity Securities at Fair Value
Equity securities at fair value as of March 31, 2026 were $3.7 million, as a result of a $488 thousand decrease in the fair value during the quarter. Equity securities at fair value as of December 31, 2025 were $4.2 million, as a result of a $373 thousand increase in the fair value in 2025. No equity securities were sold during 2025 or the first quarter of 2026.
|