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Securities
 12 Months Ended
Dec. 31, 2024
Securities [Abstract]  
Securities
3.  Securities


The amortized cost and fair value of debt securities at December 31, 2024 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
  
$
360,027
    
$
84
    
$
(18,616
)
  
$
341,495
  
State and political subdivisions
    
304,588
      
12
      
(51,043
)
    
253,557
  
U.S. government sponsored agency mortgage-backed securities
    
471,000
      
131
      
(61,422
)
    
409,709
  
Asset-backed securities
    
51,034
      
10
      
(77
)
    
50,967
  
Total available-for-sale securities
  
$
1,186,649
    
$
237
    
$
(131,158
)
  
$
1,055,728
  


The amortized cost and fair value of debt securities at December 31, 2023 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
  
$
381,268
    
$
121
    
$
(26,572
)
  
$
354,817
  
State and political subdivisions
    
313,147
      
88
      
(48,290
)
    
264,945
  
U.S. government sponsored agency mortgage-backed securities
    
518,836
      
36
      
(62,136
)
    
456,736
  
Asset-backed securities
    
87,993
      
0
      
(767
)
    
87,226
  
Total available-for-sale securities
  
$
1,301,244
    
$
245
    
$
(137,765
)
  
$
1,163,724
  


The amortized cost and fair value of debt securities at December 31, 2024 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
  
$
113,132
    
$
112,391
  
Due after one through five years
    
286,927
      
265,720
  
Due after five through ten years
    
133,102
      
113,171
  
Due after ten years
    
131,454
      
103,770
  
U.S. government sponsored agency mortgage-backed securities
    
471,000
      
409,709
  
Asset-backed securities
    
51,034
      
50,967
  
Total debt securities
  
$
1,186,649
    
$
1,055,728
  


For the year ended December 31, 2024, we had a net securities gain of $631 thousand.  There was a net gain of $8 thousand realized on sales and calls of AFS securities, and an unrealized gain of $623 thousand from the fair value adjustment of equity securities.  There was a net gain of $996 thousand realized for the year 2023 and a net loss of $168 thousand realized for the year 2022.

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 December 31, 2024 were $3.8 million, as a result of a $623 thousand increase in the fair value in 2024.  The fair value of equity securities increased $992 thousand in 2023.  No equity securities were sold during 2024 or 2023.

The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $630.8 million at December 31, 2024 and $761.5 million at December 31, 2023.

The amortized cost of securities sold under agreements to repurchase amounted to $330.0 million at December 31, 2024 and $333.6 million at December 31, 2023.


CTBI evaluates its investment portfolio on a quarterly basis for impairment.  The analysis performed as of December 31, 2024 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 December 31, 2024 was 95.5% compared to 97.3% as of December 31, 2023.  The following table provides the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2024 that are not deemed to have credit losses.

Available-for-Sale

(in thousands)
  
Amortized
Cost
    
Gross
Unrealized
Losses
    
Fair Value
  
Less Than 12 Months
                  
U.S. Treasury and government agencies
  
$
1,396
    
$
(2
)
  
$
1,394
  
State and political subdivisions
    
14,262
      
(192
)
    
14,070
  
U.S. government sponsored agency mortgage-backed securities
    
28,028
      
(994
)
    
27,034
  
Asset-backed securities
    
24,545
      
(14
)
    
24,531
  
Total <12 months temporarily impaired AFS securities
    
68,231
      
(1,202
)
    
67,029
  
 
                        
12 Months or More
                        
U.S. Treasury and government agencies
    
351,315
      
(18,614
)
    
332,701
  
State and political subdivisions
    
288,445
      
(50,851
)
    
237,594
  
U.S. government sponsored agency mortgage-backed securities
    
416,270
      
(60,428
)
    
355,842
  
Asset-backed securities
    
15,579
      
(63
)
    
15,516
  
Total ≥12 months temporarily impaired AFS securities
    
1,071,609
      
(129,956
)
    
941,653
  
 
                        
Total
                        
U.S. Treasury and government agencies
    
352,711
      
(18,616
)
    
334,095
  
State and political subdivisions
    
302,707
      
(51,043
)
    
251,664
  
U.S. government sponsored agency mortgage-backed securities
    
444,298
      
(61,422
)
    
382,876
  
Asset-backed securities
    
40,124
      
(77
)
    
40,047
  
Total temporarily impaired AFS securities
  
$
1,139,840
    
$
(131,158
)
  
$
1,008,682
  


The analysis performed as of December 31, 2023 indicated that all impairment was considered temporary, market and interest rate driven, and not credit-related.  The following table provides the amortized cost, gross unrealized losses, and fair value, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31, 2023 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
  
$
3,761
    
$
(5
)
  
$
3,756
  
State and political subdivisions
    
16,154
      
(1,250
)
    
14,904
  
U.S. government sponsored agency mortgage-backed securities
    
16,056
      
(289
)
    
15,767
  
Asset-backed securities
    
0
      
0
   
0
  
Total <12 months temporarily impaired AFS securities
    
35,971
      
(1,544
)
    
34,427
  
 
                        
12 Months or More
                        
U.S. Treasury and government agencies
    
361,038
      
(26,567
)
    
334,471
  
State and political subdivisions
    
284,397
      
(47,040
)
    
237,357
  
U.S. government sponsored agency mortgage-backed securities
    
500,763
      
(61,847
)
    
438,916
  
Asset-backed securities
    
87,993
      
(767
)
    
87,226
  
Total ≥12 months temporarily impaired AFS securities
    
1,234,191
      
(136,221
)
    
1,097,970
  
 
                        
Total
                        
U.S. Treasury and government agencies
    
364,799
      
(26,572
)
    
338,227
  
State and political subdivisions
    
300,551
      
(48,290
)
    
252,261
  
U.S. government sponsored agency mortgage-backed securities
    
516,819
      
(62,136
)
    
454,683
  
Asset-backed securities
    
87,993
      
(767
)
    
87,226
  
Total temporarily impaired AFS securities
  
$
1,270,162
    
$
(137,765
)
  
$
1,132,397
  

U.S. Treasury and Government Agencies


The unrealized losses in U.S. Treasury and government agencies were caused by interest rate changes.  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 changes.  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 changes.  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 that we will be required to sell the investments before recovery of their amortized cost.

Asset-Backed Securities


The unrealized losses in asset-backed securities were caused by interest rate changes.  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.