XML 22 R10.htm IDEA: XBRL DOCUMENT
v3.19.1

Securities | 3 Months Ended
--- | ---
Mar. 31, 2019
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 March 31, 2019 are summarized as follows: Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 178,233 |  |  | $ | 195 |  |  | $ | (951 | ) |  | $ | 177,477 |
State and political subdivisions |  |  | 123,147 |  |  |  | 1,524 |  |  |  | (942 | ) |  |  | 123,729 |
U.S. government sponsored agency mortgage-backed securities |  |  | 299,658 |  |  |  | 2,036 |  |  |  | (4,103 | ) |  |  | 297,591 |
Other debt securities |  |  | 506 |  |  |  | 0 |  |  |  | (4 | ) |  |  | 502 |
Total available-for-sale securities |  | $ | 601,544 |  |  | $ | 3,755 |  |  | $ | (6,000 | ) |  | $ | 599,299 |
Held-to-Maturity
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
March 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 619 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 619 |
Total held-to-maturity securities |  | $ | 619 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 619 |
The amortized cost and fair value of securities at December 31, 2018 are summarized as follows: Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 219,358 |  |  | $ | 48 |  |  | $ | (1,468 | ) |  | $ | 217,938 |
State and political subdivisions |  |  | 126,280 |  |  |  | 633 |  |  |  | (2,425 | ) |  |  | 124,488 |
U.S. government sponsored agency mortgage-backed securities |  |  | 255,969 |  |  |  | 397 |  |  |  | (5,547 | ) |  |  | 250,819 |
Other debt securities |  |  | 507 |  |  |  | 0 |  |  |  | (6 | ) |  |  | 501 |
Total available-for-sale securities |  | $ | 602,114 |  |  | $ | 1,078 |  |  | $ | (9,446 | ) |  | $ | 593,746 |
Held-to-Maturity
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and political subdivisions |  | $ | 649 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 649 |
Total held-to-maturity securities |  | $ | 649 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 649 |
The amortized cost and fair value of debt securities at March 31, 2019 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 |  | $ | 29,546 |  |  | $ | 29,499 |  |  | $ | 619 |  |  | $ | 619 |
Due after one through five years |  |  | 93,079 |  |  |  | 93,111 |  |  |  | 0 |  |  |  | 0 |
Due after five through ten years |  |  | 80,646 |  |  |  | 80,248 |  |  |  | 0 |  |  |  | 0 |
Due after ten years |  |  | 98,109 |  |  |  | 98,348 |  |  |  | 0 |  |  |  | 0 |
U.S. government sponsored agency mortgage-backed securities |  |  | 299,658 |  |  |  | 297,591 |  |  |  | 0 |  |  |  | 0 |
Other debt securities |  |  | 506 |  |  |  | 502 |  |  |  | 0 |  |  |  | 0 |
Total debt securities |  | $ | 601,544 |  |  | $ | 599,299 |  |  | $ | 619 |  |  | $ | 619 |
As of March 31, 2019, there was a net securities gain of $356 thousand. There was a pre-tax gain of $1 thousand realized on sales of AFS securities, and an unrealized gain of $355 thousand from the fair market value adjustment of equity securities. As of March 31, 2018, there was a net securities loss of $288 thousand. There was a net gain of $148 thousand realized on sales and calls of AFS securities, consisting of a pre-tax gain of $281 thousand and a pre-tax loss of $133 thousand. This net securities loss included a loss of $436 thousand from the sale of CTBI’s CRA investment funds. Equity Securities at Fair Value In 2008, Visa distributed 9,918 shares of Visa Class B restricted stock to CTBI which, upon resolution of certain pending legal matters, will become unrestricted and convertible into Visa Class A shares. Following this distribution, significant concern existed about the ultimate realizable value of these shares, and because CTBI did not have a basis in the stock, the shares were previously not recorded as an asset on CTBI’s balance sheet. In recent years, the concern over the realizable value has stabilized, and in late 2017 and 2018, several sales of Visa Class B shares have occurred. While not traded in observable markets, these sales were reported by several financial institutions in various SEC 8-K and 10-K filings. In 2018, FASB issued a technical correction to its guidance regarding equity securities, ASC 321-10-35-2, allowing an entity to subsequently elect to record an equity security without a readily determinable fair value. In 2018, CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value. On December 31, 2018, CTBI recorded a $1.2 million gain on the recognition of the fair value of 9,918 Visa Class B shares held in its portfolio. Equity securities at fair value as of March 31, 2019 were $1.5 million, as a result of a fair market value increase in the first quarter 2019. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $234.8 million at March 31, 2019 and $258.8 million at December 31, 2018. The amortized cost of securities sold under agreements to repurchase amounted to $278.0 million at March 31, 2019 and $289.1 million at December 31, 2018. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of March 31, 2019 indicates that all impairment is considered temporary, market and interest rate driven, and not credit-related. The percentage of total debt securities with unrealized losses as of March 31, 2019 was 55.9% compared to 75.7% as of December 31, 2018. 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, 2019 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 March 31, 2019. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 22,910 |  |  | $ | (8 | ) |  | $ | 22,902 |
State and political subdivisions |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
U.S. government sponsored agency mortgage-backed securities |  |  | 935 |  |  |  | (3 | ) |  |  | 932 |
Other debt securities |  |  | 506 |  |  |  | (4 | ) |  |  | 502 |
Total <12 months temporarily impaired AFS securities |  |  | 24,351 |  |  |  | (15 | ) |  |  | 24,336 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 120,811 |  |  |  | (943 | ) |  |  | 119,868 |
State and political subdivisions |  |  | 39,558 |  |  |  | (942 | ) |  |  | 38,616 |
U.S. government sponsored agency mortgage-backed securities |  |  | 156,877 |  |  |  | (4,100 | ) |  |  | 152,777 |
Other debt securities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total ≥12 months temporarily impaired AFS securities |  |  | 317,246 |  |  |  | (5,985 | ) |  |  | 311,261 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 143,721 |  |  |  | (951 | ) |  |  | 142,770 |
State and political subdivisions |  |  | 39,558 |  |  |  | (942 | ) |  |  | 38,616 |
U.S. government sponsored agency mortgage-backed securities |  |  | 157,812 |  |  |  | (4,103 | ) |  |  | 153,709 |
Other debt securities |  |  | 506 |  |  |  | (4 | ) |  |  | 502 |
Total temporarily impaired AFS securities |  | $ | 341,597 |  |  | $ | (6,000 | ) |  | $ | 335,597 |
The analysis performed as of December 31, 2018 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, 2018 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, 2018. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 78,905 |  |  | $ | (271 | ) |  | $ | 78,634 |
State and political subdivisions |  |  | 21,707 |  |  |  | (194 | ) |  |  | 21,513 |
U.S. government sponsored agency mortgage-backed securities |  |  | 61,940 |  |  |  | (377 | ) |  |  | 61,563 |
Other debt securities |  |  | 507 |  |  |  | (6 | ) |  |  | 501 |
Total <12 months temporarily impaired AFS securities |  |  | 163,059 |  |  |  | (848 | ) |  |  | 162,211 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 97,955 |  |  |  | (1,197 | ) |  |  | 96,758 |
State and political subdivisions |  |  | 51,911 |  |  |  | (2,231 | ) |  |  | 49,680 |
U.S. government sponsored agency mortgage-backed securities |  |  | 147,658 |  |  |  | (5,170 | ) |  |  | 142,488 |
Other debt securities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total ≥12 months temporarily impaired AFS securities |  |  | 297,524 |  |  |  | (8,598 | ) |  |  | 288,926 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 176,860 |  |  |  | (1,468 | ) |  |  | 175,392 |
State and political subdivisions |  |  | 73,618 |  |  |  | (2,425 | ) |  |  | 71,193 |
U.S. government sponsored agency mortgage-backed securities |  |  | 209,598 |  |  |  | (5,547 | ) |  |  | 204,051 |
Other debt securities |  |  | 507 |  |  |  | (6 | ) |  |  | 501 |
Total temporarily impaired AFS securities |  | $ | 460,583 |  |  | $ | (9,446 | ) |  | $ | 451,137 |
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 March 31, 2019, 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 March 31, 2019, 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 March 31, 2019, 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. Other Debt Securities The unrealized losses in other debt securities 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 March 31, 2019, 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.

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration