XML 20 R8.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Securities | 6 Months Ended
--- | ---
Jun. 30, 2017
Securities [Abstract] |
Securities | 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 June 30, 2017 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 |  | $ | 236,345 |  |  | $ | 173 |  |  | $ | (460 | ) |  | $ | 236,058 |
State and political subdivisions |  |  | 129,872 |  |  |  | 2,833 |  |  |  | (763 | ) |  |  | 131,942 |
U.S. government sponsored agency mortgage-backed securities |  |  | 219,961 |  |  |  | 836 |  |  |  | (2,925 | ) |  |  | 217,872 |
Total debt securities |  |  | 586,178 |  |  |  | 3,842 |  |  |  | (4,148 | ) |  |  | 585,872 |
CRA investment funds |  |  | 25,000 |  |  |  | 90 |  |  |  | (594 | ) |  |  | 24,496 |
Total available-for-sale securities |  | $ | 611,178 |  |  | $ | 3,932 |  |  | $ | (4,742 | ) |  | $ | 610,368 |
Held-to-Maturity
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
State and political subdivisions |  | $ | 858 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 858 |
Total held-to-maturity securities |  | $ | 858 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 858 |
The amortized cost and fair value of securities at December 31, 2016 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 |  | $ | 223,014 |  |  | $ | 193 |  |  | $ | (743 | ) |  | $ | 222,464 |
State and political subdivisions |  |  | 133,351 |  |  |  | 1,957 |  |  |  | (1,792 | ) |  |  | 133,516 |
U.S. government sponsored agency mortgage-backed securities |  |  | 227,574 |  |  |  | 1,008 |  |  |  | (3,526 | ) |  |  | 225,056 |
Total debt securities |  |  | 583,939 |  |  |  | 3,158 |  |  |  | (6,061 | ) |  |  | 581,036 |
CRA investment funds |  |  | 25,000 |  |  |  | 76 |  |  |  | (718 | ) |  |  | 24,358 |
Total available-for-sale securities |  | $ | 608,939 |  |  | $ | 3,234 |  |  | $ | (6,779 | ) |  | $ | 605,394 |
Held-to-Maturity
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
State and political subdivisions |  | $ | 866 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 867 |
Total held-to-maturity securities |  | $ | 866 |  |  | $ | 1 |  |  | $ | 0 |  |  | $ | 867 |
The amortized cost and fair value of securities at June 30, 2017 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 |  | $ | 69,861 |  |  | $ | 69,819 |  |  | $ | 0 |  |  | $ | 0 |
Due after one through five years |  |  | 162,304 |  |  |  | 163,221 |  |  |  | 858 |  |  |  | 858 |
Due after five through ten years |  |  | 51,203 |  |  |  | 52,067 |  |  |  | 0 |  |  |  | 0 |
Due after ten years |  |  | 82,849 |  |  |  | 82,893 |  |  |  | 0 |  |  |  | 0 |
U.S. government sponsored agency mortgage-backed securities |  |  | 219,961 |  |  |  | 217,872 |  |  |  | 0 |  |  |  | 0 |
Total debt securities |  |  | 586,178 |  |  |  | 585,872 |  |  |  | 858 |  |  |  | 858 |
CRA investment funds |  |  | 25,000 |  |  |  | 24,496 |  |  |  | 0 |  |  |  | 0 |
Total securities |  | $ | 611,178 |  |  | $ | 610,368 |  |  | $ | 858 |  |  | $ | 858 |
During the three months ended June 30, 2017, there was a net gain of $18 thousand on sales and calls of AFS securities, consisting of a pre-tax gain of $30 thousand and a pre-tax loss of $12 thousand. During the three months ended June 30, 2016, there was a net loss of $4 thousand on calls of AFS securities, consisting of a pre-tax gain of $1 thousand and a pre-tax loss of $5 thousand. During the six months ended June 30, 2017, there was a combined gain of $10 thousand on sales and calls of AFS securities, consisting of a pre-tax gain of $29 thousand and a pre-tax loss of $19 thousand. During the six months ended June 30, 2016, there was a combined gain of $64 thousand on sales and calls of AFS securities, consisting of a pre-tax gain of $69 thousand and a pre-tax loss of $5 thousand. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $224.1 million at June 30, 2017 and $221.2 million at December 31, 2016. The amortized cost of securities sold under agreements to repurchase amounted to $297.1 million at June 30, 2017 and $303.5 million at December 31, 2016. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of June 30, 2017 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related. The percentage of total investments with unrealized losses as of June 30, 2017 was 60.7% compared to 65.6% as of December 31, 2016. 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 June 30, 2017 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of June 30, 2017. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 139,137 |  |  | $ | (419 | ) |  | $ | 138,718 |
State and political subdivisions |  |  | 26,970 |  |  |  | (742 | ) |  |  | 26,228 |
U.S. government sponsored agency mortgage-backed securities |  |  | 132,510 |  |  |  | (2,076 | ) |  |  | 130,434 |
Total debt securities |  |  | 298,617 |  |  |  | (3,237 | ) |  |  | 295,380 |
CRA investment funds |  |  | 17,500 |  |  |  | (347 | ) |  |  | 17,153 |
Total <12 months temporarily impaired AFS securities |  |  | 316,117 |  |  |  | (3,584 | ) |  |  | 312,533 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 21,647 |  |  |  | (41 | ) |  |  | 21,606 |
State and political subdivisions |  |  | 2,383 |  |  |  | (21 | ) |  |  | 2,362 |
U.S. government sponsored agency mortgage-backed securities |  |  | 30,644 |  |  |  | (849 | ) |  |  | 29,795 |
Total debt securities |  |  | 54,674 |  |  |  | (911 | ) |  |  | 53,763 |
CRA investment funds |  |  | 5,000 |  |  |  | (247 | ) |  |  | 4,753 |
Total ≥12 months temporarily impaired AFS securities |  |  | 59,674 |  |  |  | (1,158 | ) |  |  | 58,516 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 160,784 |  |  |  | (460 | ) |  |  | 160,324 |
State and political subdivisions |  |  | 29,353 |  |  |  | (763 | ) |  |  | 28,590 |
U.S. government sponsored agency mortgage-backed securities |  |  | 163,154 |  |  |  | (2,925 | ) |  |  | 160,229 |
Total debt securities |  |  | 353,291 |  |  |  | (4,148 | ) |  |  | 349,143 |
CRA investment funds |  |  | 22,500 |  |  |  | (594 | ) |  |  | 21,906 |
Total temporarily impaired AFS securities |  | $ | 375,791 |  |  | $ | (4,742 | ) |  | $ | 371,049 |
U.S. Treasury and Government Agencies The unrealized losses in U.S. Treasury and government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at June 30, 2017, because CTBI does not intend to sell the investments and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. State and Political Subdivisions The unrealized losses in securities of state and political subdivisions were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than par which will equal amortized cost at maturity. CTBI does not consider those investments to be other-than-temporarily impaired at June 30, 2017, because CTBI does not intend to sell the investments before recovery of their amortized cost and it is not more likely than not that we will be required to sell the investments before recovery of their amortized cost, which may be maturity. U.S. Government Sponsored Agency Mortgage-Backed Securities The unrealized losses in U.S. government sponsored agency mortgage-backed securities were caused by interest rate increases. CTBI expects to recover the amortized cost basis over the term of the securities. CTBI does not consider those investments to be other-than-temporarily impaired at June 30, 2017, because (i) the decline in market value is attributable to changes in interest rates and not credit quality, (ii) CTBI does not intend to sell the investments, and (iii) it is not more likely than not we will be required to sell the investments before recovery of their amortized cost, which may be maturity. CRA Investment Funds CTBI’s CRA investment funds consist of investments in fixed income mutual funds ($24.5 million of the total fair value and $594 thousand of the total unrealized losses in common stock investments). The severity of the impairment (fair value is approximately 2.4% less than cost) and the duration of the impairment correlates with the decline in long-term interest rates in 2017. CTBI evaluated the near-term prospects of these funds in relation to the severity and duration of the impairment. Based on that evaluation, CTBI does not consider those investments to be other-than-temporarily impaired at June 30, 2017. The analysis performed as of December 31, 2016 indicated that all impairment was considered temporary, market and interest rate 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, 2016 that are not deemed to be other-than-temporarily impaired. There were no held-to-maturity securities that were deemed to be impaired as of December 31, 2016. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 158,732 |  |  | $ | (716 | ) |  | $ | 158,016 |
State and political subdivisions |  |  | 53,491 |  |  |  | (1,780 | ) |  |  | 51,711 |
U.S. government sponsored agency mortgage-backed securities |  |  | 135,939 |  |  |  | (2,646 | ) |  |  | 133,293 |
Total debt securities |  |  | 348,162 |  |  |  | (5,142 | ) |  |  | 343,020 |
CRA investment funds |  |  | 17,500 |  |  |  | (444 | ) |  |  | 17,056 |
Total <12 months temporarily impaired AFS securities |  |  | 365,662 |  |  |  | (5,586 | ) |  |  | 360,076 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 1,880 |  |  |  | (27 | ) |  |  | 1,853 |
State and political subdivisions |  |  | 751 |  |  |  | (12 | ) |  |  | 739 |
U.S. government sponsored agency mortgage-backed securities |  |  | 31,132 |  |  |  | (880 | ) |  |  | 30,252 |
Total debt securities |  |  | 33,763 |  |  |  | (919 | ) |  |  | 32,844 |
CRA investment funds |  |  | 5,000 |  |  |  | (274 | ) |  |  | 4,726 |
Total ≥12 months temporarily impaired AFS securities |  |  | 38,763 |  |  |  | (1,193 | ) |  |  | 37,570 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 160,612 |  |  |  | (743 | ) |  |  | 159,869 |
State and political subdivisions |  |  | 54,242 |  |  |  | (1,792 | ) |  |  | 52,450 |
U.S. government sponsored agency mortgage-backed securities |  |  | 167,071 |  |  |  | (3,526 | ) |  |  | 163,545 |
Total debt securities |  |  | 381,925 |  |  |  | (6,061 | ) |  |  | 375,864 |
CRA investment funds |  |  | 22,500 |  |  |  | (718 | ) |  |  | 21,782 |
Total temporarily impaired AFS securities |  | $ | 404,425 |  |  | $ | (6,779 | ) |  | $ | 397,646 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration