Fair Value of Financial Assets and Liabilities (Tables)
|
6 Months Ended |
Jun. 30, 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
June 30, 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
|
|
$
|
147,306 |
|
|
$
|
0 |
|
|
$
|
147,306 |
|
|
$
|
0 |
|
|
State and political subdivisions
|
|
|
247,985 |
|
|
|
0 |
|
|
|
247,985 |
|
|
|
0 |
|
|
Agency mortgage-backed securities
|
|
|
641,337 |
|
|
|
0 |
|
|
|
641,337 |
|
|
|
0 |
|
|
Asset-backed securities
|
|
|
15,053 |
|
|
|
0 |
|
|
|
15,053 |
|
|
|
0 |
|
|
Equity securities at fair value
|
|
|
4,578 |
|
|
|
0 |
|
|
|
0 |
|
|
|
4,578 |
|
|
Mortgage servicing rights
|
|
|
6,759 |
|
|
|
0 |
|
|
|
0 |
|
|
|
6,759 |
|
| |
|
|
|
|
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
June 30
|
|
| |
|
2026
|
|
|
2025
|
|
|
(in thousands)
|
|
Equity
Securities
at Fair
Value
|
|
|
Mortgage
Servicing
Rights
|
|
|
Equity
Securities
at Fair
Value
|
|
|
Mortgage
Servicing
Rights
|
|
|
Beginning balance
|
|
$
|
3,666 |
|
|
$
|
6,728 |
|
|
$
|
4,261 |
|
|
$
|
7,093 |
|
|
Total unrealized gains
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in net income
|
|
|
912 |
|
|
|
201 |
|
|
|
149 |
|
|
|
157 |
|
|
Issues
|
|
|
0 |
|
|
|
24 |
|
|
|
0 |
|
|
|
30 |
|
|
Settlements
|
|
|
0 |
|
|
|
(194 |
)
|
|
|
0 |
|
|
|
(184 |
)
|
|
Ending balance
|
|
$
|
4,578 |
|
|
$
|
6,759 |
|
|
$
|
4,410 |
|
|
$
|
7,096 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gains 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
|
|
$
|
912 |
|
|
$
|
201 |
|
|
$
|
149 |
|
|
$
|
157 |
|
| |
|
Six Months Ended
June 30
|
|
| |
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Included in net income
|
|
|
424 |
|
|
|
347 |
|
|
|
629 |
|
|
|
44 |
|
|
Issues
|
|
|
0 |
|
|
|
46 |
|
|
|
0 |
|
|
|
50 |
|
|
Settlements
|
|
|
0 |
|
|
|
(385 |
)
|
|
|
0 |
|
|
|
(355 |
)
|
|
Ending balance
|
|
$
|
4,578 |
|
|
$
|
6,759 |
|
|
$
|
4,410 |
|
|
$
|
7,096 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gains 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
|
|
$
|
424 |
|
|
$
|
347 |
|
|
$
|
629 |
|
|
$
|
44 |
|
|
| 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
|
|
|
Six Months Ended
|
|
| |
|
June 30
|
|
|
June 30
|
|
|
(in thousands)
|
|
2026
|
|
|
2025
|
|
|
2026
|
|
|
2025
|
|
|
Total gains
|
|
$
|
919 |
|
|
$
|
123 |
|
|
$
|
386 |
|
|
$
|
319 |
|
|
| 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 and indicate the level within the fair value hierarchy of the valuation techniques.
| |
|
|
|
|
Fair Value Measurements at
June 30, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Collateral dependent loans
|
|
$
|
7,253 |
|
|
$
|
0 |
|
|
$
|
0 |
|
|
$
|
7,253 |
|
|
Other real estate owned
|
|
|
164 |
|
|
|
0 |
|
|
|
0 |
|
|
|
164 |
|
| |
|
|
|
|
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
June 30, 2026
|
|
Valuation
Technique(s)
|
Unobservable Input
|
|
Range (Weighted
Average)
|
|
| Equity securities at fair value |
|
$ |
4,578 |
|
Discounted cash flows |
Discount rate |
|
|
8.0% - 12.0% (10.0%) |
|
| |
|
|
|
|
|
Conversion date
|
|
Dec 2027 - Dec 2029 (Dec 2028) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Mortgage servicing rights |
|
$ |
6,759 |
|
Discounted cash flows |
Constant prepayment rate |
|
|
5.5% - 25.0% (6.2%) |
|
| |
|
|
|
|
|
Cost to service
|
|
|
$66 - $517 ($77) |
|
| |
|
|
|
|
|
Probability of default
|
|
|
0.0% - 100.0% (1.3%) |
|
| |
|
|
|
|
|
Discount rate
|
|
|
9.0% - 13.6% (9.4%) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Collateral-dependent loans |
|
$ |
7,253 |
|
Market comparable properties |
Marketability discount |
|
|
0.0% - 0.0% (0.0%) |
|
| |
|
|
|
|
|
|
|
|
|
|
| Other real estate owned |
|
$ |
164 |
|
Market comparable properties |
Comparability adjustments |
|
|
16.0% - 27.6% (17.4%) |
|
| |
|
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 and indicate the level within the fair value hierarchy of the valuation techniques.
| |
|
|
|
|
Fair Value Measurements
at June 30, 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
|
|
$
|
514,347 |
|
|
$
|
514,347 |
|
|
$
|
0 |
|
|
$
|
0 |
|
|
Certificates of deposit in other banks
|
|
|
245 |
|
|
|
0 |
|
|
|
245 |
|
|
|
0 |
|
|
Debt securities available-for-sale
|
|
|
1,051,681 |
|
|
|
0 |
|
|
|
1,051,681 |
|
|
|
0 |
|
|
Equity securities at fair value
|
|
|
4,578 |
|
|
|
0 |
|
|
|
0 |
|
|
|
4,578 |
|
|
Loans, net
|
|
|
5,061,930 |
|
|
|
0 |
|
|
|
0 |
|
|
|
5,109,843 |
|
|
Federal Home Loan Bank stock
|
|
|
5,525 |
|
|
|
0 |
|
|
|
5,525 |
|
|
|
0 |
|
|
Federal Reserve Bank stock
|
|
|
4,887 |
|
|
|
0 |
|
|
|
4,887 |
|
|
|
0 |
|
|
Mortgage servicing rights
|
|
|
6,759 |
|
|
|
0 |
|
|
|
0 |
|
|
|
6,759 |
|
|
Accrued interest receivable
|
|
|
25,820 |
|
|
|
0 |
|
|
|
25,820 |
|
|
|
0 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
5,657,763 |
|
|
$
|
1,259,364 |
|
|
$
|
4,178,065 |
|
|
$
|
0 |
|
|
Repurchase agreements
|
|
|
297,094 |
|
|
|
0 |
|
|
|
297,155 |
|
|
|
0 |
|
|
Federal funds purchased
|
|
|
500 |
|
|
|
0 |
|
|
|
500 |
|
|
|
0 |
|
|
Advances from Federal Home Loan Bank
|
|
|
284 |
|
|
|
0 |
|
|
|
293 |
|
|
|
0 |
|
|
Long-term debt
|
|
|
63,664 |
|
|
|
0 |
|
|
|
58,903 |
|
|
|
0 |
|
|
Accrued interest payable
|
|
|
16,420 |
|
|
|
0 |
|
|
|
16,420 |
|
|
|
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 |
|
|