v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Securities [Abstract]  
Securities
Note 2 – Securities

The amortized cost and fair value of debt securities available-for-sale are summarized as follows:

   
June 30, 2026
  
(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Gains
    
Gross
Unrealized
Losses
    
Fair Value
  
U.S. Treasury and government agencies
  
$
154,652
    
$
47
    
$
(7,393
)
  
$
147,306
  
State and political subdivisions
    
285,200
      
51
      
(37,266
)
    
247,985
  
Agency mortgage-backed securities
    
687,825
      
234
      
(46,722
)
    
641,337
  
Asset-backed securities
    
15,042
      
26
      
(15
)
    
15,053
  
Total available-for-sale securities
  
$
1,142,719
    
$
358
    
$
(91,396
)
  
$
1,051,681
  

   
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 $4.3 million and $4.5 million at June 30, 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 June 30, 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
  
$
300
    
$
299
  
Due after one through five years
    
222,575
      
210,730
  
Due after five through ten years
    
114,039
      
100,175
  
Due after ten years
    
102,938
      
84,087
  
Agency mortgage-backed securities
    
687,825
      
641,337
  
Asset-backed securities
    
15,042
      
15,053
  
Total debt securities
  
$
1,142,719
    
$
1,051,681
  

During the three months ended June 30, 2026, we had a net securities gain of $924 thousand, consisting of a pre-tax gain of $12 thousand on sales and calls of AFS securities and an unrealized gain of $912 thousand from the fair value adjustment of equity securities.  During the three months ended June 30, 2025, we had a net securities gain of $150 thousand, consisting of a pre-tax gain of $1 thousand on calls of AFS securities and an unrealized gain of $149 thousand from the fair value adjustment of equity securities.  During the six months ended June 30, 2026, we had a net securities gain of $436 thousand, consisting of a pre-tax gain of $12 thousand realized on sales and calls of AFS securities and an unrealized gain of $424 thousand from the fair value adjustment of equity securities.  During the six months ended June 30, 2025, we had a net securities gain of $630 thousand, consisting of a pre-tax gain of $1 thousand realized on calls of AFS securities and an unrealized gain of $629 thousand 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 $591.5 million and $602.6 million at June 30, 2026 and December 31, 2025, respectively.
The fair value of securities pledged was $541.7 million and $556.9 million at June 30, 2026 and December 31, 2025, respectively.

The amortized cost of securities sold under agreements to repurchase amounted to $400.2 million and $386.8 million at June 30, 2026 and December 31, 2025, respectively.  The fair value of securities pledged was $368.1 million and $358.1 million at June 30, 2026 and December 31, 2025, respectively.

CTBI evaluates its investment portfolio on a quarterly basis for impairment.  The analysis performed as of June 30, 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 June 30, 2026 was 93.8% 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.

   
June 30, 2026
  
(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Losses
    
Fair Value
  
Less Than 12 Months
                  
U.S. Treasury and government agencies
  
$
10
    
$
0
    
$
10
  
State and political subdivisions
    
11,818
      
(1,105
)
    
10,713
  
Agency mortgage-backed securities
    
286,796
      
(3,351
)
    
283,445
  
Asset-backed securities
    
8,276
      
(15
)
    
8,261
  
Total <12 months AFS securities with unrealized losses
    
306,900
      
(4,471
)
    
302,429
  
                         
12 Months or More
                        
U.S. Treasury and government agencies
    
151,452
      
(7,393
)
    
144,059
  
State and political subdivisions
    
262,693
      
(36,161
)
    
226,532
  
Agency mortgage-backed securities
    
357,320
      
(43,371
)
    
313,949
  
Asset-backed securities
    
0
      
0
      
0
  
Total ≥12 months AFS securities with unrealized losses
    
771,465
      
(86,925
)
    
684,540
  
                         
Total
                        
U.S. Treasury and government agencies
    
151,462
      
(7,393
)
    
144,069
  
State and political subdivisions
    
274,511
      
(37,266
)
    
237,245
  
Agency mortgage-backed securities
    
644,116
      
(46,722
)
    
597,394
  
Asset-backed securities
    
8,276
      
(15
)
    
8,261
  
Total AFS securities with unrealized losses
  
$
1,078,365
    
$
(91,396
)
  
$
986,969
  

   
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 June 30, 2026 were $4.6 million, as a result of a $912 thousand increase 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 six months of 2026.