Securities

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Note 3 - Securities

Securities are classified into held-to-maturity and available-for-sale categories. Held-to-maturity (HTM) securities are those that CTBI has the positive intent and ability to hold to maturity and are reported at amortized cost. Available-for-sale (AFS) securities are those that CTBI may decide to sell if needed for liquidity, asset-liability management or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included as a separate component of equity, net of tax.

The amortized cost and fair value of securities at March 31, 2012 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	31,270	$	783	$	(3	)	$	32,050
State and political subdivisions		77,959		3,354		(187	)		81,126
U.S. government sponsored agency mortgage-backed securities		470,250		9,583		(610	)		479,223
Collateralized mortgage obligations		452		12		0			464
Total debt securities		579,931		13,732		(800	)		592,863
Marketable equity securities		20,582		625		(92	)		21,115
Total available-for-sale securities	$	600,513	$	14,357	$	(892	)	$	613,978

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
State and political subdivisions	$	1,182	$	2	$	0	$	1,184
Other debt securities		480		0		0		480
Total held-to-maturity securities	$	1,662	$	2	$	0	$	1,664

The amortized cost and fair value of securities as of December 31, 2011 are summarized as follows:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and government agencies	$	32,077	$	1,171	$	0		$	33,248
State and political subdivisions		68,358		3,816		(30	)		72,144
U.S. government sponsored agency mortgage-backed securities		390,213		10,180		(57	)		400,336
Collateralized mortgage obligations		501		6		0			507
Total debt securities		491,149		15,173		(87	)		506,235
Marketable equity securities		20,582		718		(137	)		21,163
Total available-for-sale securities	$	511,731	$	15,891	$	(224	)	$	527,398

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
State and political subdivisions	$	1,182	$	0	$	0		$	1,182
Other debt securities		480		0		(1	)		479
Total held-to-maturity securities	$	1,662	$	0	$	(1	)	$	1,661

The amortized cost and fair value of securities at March 31, 2012 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				Held-to-Maturity
(in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	4,744	$	4,791	$	0	$	0
Due after one through five years		22,717		23,444		0		0
Due after five through ten years		44,651		46,008		1,182		1,184
Due after ten years		37,117		38,933		0		0
U.S. government sponsored agency mortgage-backed securities		470,250		479,223		0		0
Collateralized mortgage obligations		452		464		0		0
Other securities		0		0		480		480
Total debt securities		579,931		592,863		1,662		1,664
Marketable equity securities		20,582		21,115		0		0
Total securities	$	600,513	$	613,978	$	1,662	$	1,664

There were no pre-tax gains or losses as of March 31, 2012 or 2011.

The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $188.2 million at March 31, 2012 and $198.6 million at December 31, 2011.

The amortized cost of securities sold under agreements to repurchase amounted to $239.7 million at March 31, 2012 and $217.2 million at December 31, 2011.

Certain investments in debt and marketable equity securities are reported in the financial statements at amounts less than their historical costs. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of March 31, 2012 indicates that all impairment is considered temporary, market driven, and not credit-related. The percentage of total investments with unrealized losses as of March 31, 2012 was 20.2% compared to 4.8% as of December 31, 2011. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of March 31, 2012 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	1,977	$	(3	)	$	1,974
State and political subdivisions		11,917		(186	)		11,731
U.S. government sponsored agency mortgage-backed securities		110,833		(610	)		110,223
Collateralized mortgage obligations		0		0			0
Total debt securities		124,727		(799	)		123,928
Marketable equity securities		0		0			0
Total <12 months temporarily impaired AFS securities		124,727		(799	)		123,928

12 Months or More
U.S. Treasury and government agencies		0		0			0
State and political subdivisions		106		(1	)		105
U.S. government sponsored agency mortgage-backed securities		0		0			0
Collateralized mortgage obligations		0		0			0
Total debt securities		106		(1	)		105
Marketable equity securities		329		(92	)		237
Total ?12 months temporarily impaired AFS securities		435		(93	)		342

Total
U.S. Treasury and government agencies		1,977		(3	)		1,974
State and political subdivisions		12,023		(187	)		11,836
U.S. government sponsored agency mortgage-backed securities		110,833		(610	)		110,223
Collateralized mortgage obligations		0		(0	)		0
Total debt securities		124,833		(800	)		124,033
Marketable equity securities		329		(92	)		237
Total temporarily impaired AFS securities	$	125,162	$	(892	)	$	124,270

As of March 31, 2012, there were no held-to-maturity securities with unrealized losses.

The analysis performed as of December 31, 2011 indicated that all impairment was considered temporary, market driven, and not credit-related. The following tables provide the amortized cost, gross unrealized losses, and fair market value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2011 that are not deemed to be other-than-temporarily impaired.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
U.S. Treasury and government agencies	$	0	$	0		$	0
State and political subdivisions		6,173		(25	)		6,148
U.S. government sponsored agency mortgage-backed securities		17,900		(57	)		17,843
Total debt securities		24,073		(82	)		23,991
Marketable equity securities		0		0			0
Total <12 months temporarily impaired AFS securities		24,073		(82	)		23,991

12 Months or More
U.S. Treasury and government agencies		0		0			0
State and political subdivisions		613		(5	)		608
U.S. government sponsored agency mortgage-backed securities		0		0			0
Total debt securities		613		(5	)		608
Marketable equity securities		329		(137	)		192
Total ?12 months temporarily impaired AFS securities		942		(142	)		800

Total
U.S. Treasury and government agencies		0		0			0
State and political subdivisions		6,786		(30	)		6,756
U.S. government sponsored agency mortgage-backed securities		17,900		(57	)		17,843
Total debt securities		24,686		(87	)		24,599
Marketable equity securities		329		(137	)		192
Total temporarily impaired AFS securities	$	25,015	$	(224	)	$	24,791

Held-to-Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses			Fair Value
Less Than 12 Months
State and political subdivisions	$	0	$	0		$	0
Other debt securities		480		(1	)		479
Total temporarily impaired HTM securities	$	480	$	(1	)	$	479

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

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