XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.20.2

Securities | 6 Months Ended
--- | ---
Jun. 30, 2020
Securities [Abstract] |
Securities | Note 3 – Securities Debt 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. As of June 30, 2020, CTBI had no held-to-maturity securities. The amortized cost and fair value of debt securities at June 30, 2020 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 |  | $ | 89,335 |  |  | $ | 550 |  |  | $ | (453 | ) |  | $ | 89,432 |
State and political subdivisions |  |  | 120,194 |  |  |  | 5,752 |  |  |  | (28 | ) |  |  | 125,918 |
U.S. government sponsored agency mortgage-backed securities |  |  | 459,327 |  |  |  | 11,023 |  |  |  | (395 | ) |  |  | 469,955 |
Other debt securities |  |  | 56,536 |  |  |  | 0 |  |  |  | (1,362 | ) |  |  | 55,174 |
Total available-for-sale securities |  | $ | 725,392 |  |  | $ | 17,325 |  |  | $ | (2,238 | ) |  | $ | 740,479 |
The amortized cost and fair value of debt securities at December 31, 2019 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 |  | $ | 171,250 |  |  | $ | 476 |  |  | $ | (576 | ) |  | $ | 171,150 |
State and political subdivisions |  |  | 99,403 |  |  |  | 2,941 |  |  |  | (37 | ) |  |  | 102,307 |
U.S. government sponsored agency mortgage-backed securities |  |  | 291,874 |  |  |  | 4,443 |  |  |  | (1,072 | ) |  |  | 295,245 |
Other debt securities |  |  | 31,418 |  |  |  | 0 |  |  |  | (276 | ) |  |  | 31,142 |
Total available-for-sale securities |  | $ | 593,945 |  |  | $ | 7,860 |  |  | $ | (1,961 | ) |  | $ | 599,844 |
Held-to-Maturity
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Fair Value |
State and political subdivisions |  | $ | 517 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 517 |
Total held-to-maturity securities |  | $ | 517 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 517 |
The amortized cost and fair value of debt securities at June 30, 2020 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 |  | $ | 12,136 |  |  | $ | 12,195 |
Due after one through five years |  |  | 19,933 |  |  |  | 20,503 |
Due after five through ten years |  |  | 95,400 |  |  |  | 96,332 |
Due after ten years |  |  | 82,060 |  |  |  | 86,320 |
U.S. government sponsored agency mortgage-backed securities |  |  | 459,327 |  |  |  | 469,955 |
Other debt securities |  |  | 56,536 |  |  |  | 55,174 |
Total debt securities |  | $ | 725,392 |  |  | $ | 740,479 |
During the three months ended June 30, 2020, we had a net securities gain of $937 thousand, consisting of a pre-tax gain of $565 thousand realized on sales and calls of AFS securities and an unrealized gain of $372 thousand from the fair market value adjustment of equity securities. During the three months ended June 30, 2019, we had a net securities gain of $204 thousand, consisting of a pre-tax gain of $5 thousand realized on sales and calls of AFS securities and an unrealized gain of $199 thousand from the fair market value adjustment of equity securities. During the six months ended June 30, 2020, we had a net securities gain of $1.2 million, consisting of a pre-tax gain of $1.1 million realized on sales and calls of AFS securities and an unrealized gain of $0.1 million from the fair market value adjustment of equity securities. During the six months ended June 30, 2019, we had a net securities gain of $560 thousand, consisting of a pre-tax gain of $6 thousand realized on sales and calls of AFS securities and an unrealized gain of $554 thousand from the fair market value adjustment of equity securities. Equity Securities at Fair Value CTBI made the election permitted by ASC 321-10-35-2 to record its Visa Class B shares at fair value. Equity securities at fair value as of June 30, 2020 were $2.1 million, as a result of a $0.4 million increase in the fair market value in the second quarter 2020. The fair market value of equity securities increased $0.2 million in the second quarter 2019. No equity securities were sold during the second quarter 2020. The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $218.3 million at June 30, 2020 and $239.1 million at December 31, 2019. The amortized cost of securities sold under agreements to repurchase amounted to $308.7 million at June 30,2020 and $261.5 million at December 31, 2019. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of June 30, 2020 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 June 30,2020 was 26.8% compared to 42.8% as of December 31, 2019. 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, 2020 that are not deemed to have credit losses. As stated above, CTBI had no HTM securities as of June 30, 2020. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 23,440 |  |  | $ | (112 | ) |  | $ | 23,328 |
State and political subdivisions |  |  | 536 |  |  |  | (28 | ) |  |  | 508 |
U.S. government sponsored agency mortgage-backed securities |  |  | 55,124 |  |  |  | (307 | ) |  |  | 54,817 |
Other debt securities |  |  | 56,030 |  |  |  | (1,341 | ) |  |  | 54,689 |
Total <12 months impaired AFS securities |  |  | 135,130 |  |  |  | (1,788 | ) |  |  | 133,342 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 49,653 |  |  |  | (341 | ) |  |  | 49,312 |
State and political subdivisions |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
U.S. government sponsored agency mortgage-backed securities |  |  | 15,503 |  |  |  | (88 | ) |  |  | 15,415 |
Other debt securities |  |  | 506 |  |  |  | (21 | ) |  |  | 485 |
Total ≥12 months impaired AFS securities |  |  | 65,662 |  |  |  | (450 | ) |  |  | 65,212 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 73,093 |  |  |  | (453 | ) |  |  | 72,640 |
State and political subdivisions |  |  | 536 |  |  |  | (28 | ) |  |  | 508 |
U.S. government sponsored agency mortgage-backed securities |  |  | 70,627 |  |  |  | (395 | ) |  |  | 70,232 |
Other debt securities |  |  | 56,536 |  |  |  | (1,362 | ) |  |  | 55,174 |
Total impaired AFS securities |  | $ | 200,792 |  |  | $ | (2,238 | ) |  | $ | 198,554 |
The analysis performed as of December 31, 2019 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, 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 December 31, 2019. Available-for-Sale
(in thousands) |  | Amortized Cost |  |  | Gross Unrealized Losses |  |  | Fair Value |
Less Than 12 Months |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  | $ | 25,955 |  |  | $ | (148 | ) |  | $ | 25,807 |
State and political subdivisions |  |  | 8,356 |  |  |  | (37 | ) |  |  | 8,319 |
U.S. government sponsored agency mortgage-backed securities |  |  | 19,317 |  |  |  | (100 | ) |  |  | 19,217 |
Other debt securities |  |  | 31,418 |  |  |  | (276 | ) |  |  | 31,142 |
Total <12 months temporarily impaired AFS securities |  |  | 85,046 |  |  |  | (561 | ) |  |  | 84,485 |
12 Months or More |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 82,339 |  |  |  | (428 | ) |  |  | 81,911 |
State and political subdivisions |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
U.S. government sponsored agency mortgage-backed securities |  |  | 91,609 |  |  |  | (972 | ) |  |  | 90,637 |
Other debt securities |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Total ≥12 months temporarily impaired AFS securities |  |  | 173,948 |  |  |  | (1,400 | ) |  |  | 172,548 |
Total |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury and government agencies |  |  | 108,294 |  |  |  | (576 | ) |  |  | 107,718 |
State and political subdivisions |  |  | 8,356 |  |  |  | (37 | ) |  |  | 8,319 |
U.S. government sponsored agency mortgage-backed securities |  |  | 110,926 |  |  |  | (1,072 | ) |  |  | 109,854 |
Other debt securities |  |  | 31,418 |  |  |  | (276 | ) |  |  | 31,142 |
Total temporarily impaired AFS securities |  | $ | 258,994 |  |  | $ | (1,961 | ) |  | $ | 257,033 |
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 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. 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 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. 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 intend to sell the investments, and it is not more likely than not we will be required to sell the investments before recovery of their amortized cost. 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 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.

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