Repurchase Agreements

9 Months Ended

Sep. 30, 2025

Note 5 – Repurchase Agreements

We utilize securities sold under agreements to repurchase to facilitate the needs of our customers and provide additional funding to our balance sheet. Repurchase agreements are transactions whereby we offer to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates CTBI to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are reflected in the accompanying consolidated balance sheets.

We monitor collateral levels on a continuous basis and maintain records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and we segregate the security from its general assets in accordance with regulations governing custodial holdings of securities. The primary risk with our repurchase agreements is market risk associated with the securities securing the transactions, as we may be required to provide additional collateral based on fair value changes of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents. The carrying value of investment securities available-for-sale pledged as collateral under repurchase agreements totaled $356.9 million and $292.2 million at September 30, 2025 and December 31, 2024, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included in the accompanying consolidated balance sheets as of September 30, 2025 and December 31, 2024 is presented in the following tables:

	September 30, 2025
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	11,849	$	0	$	13	$	11,222	$	23,084
State and political subdivisions		108,047		0		2,038		16,098		126,183
Agency mortgage-backed securities		25,506		0		481		95,090		121,077
Asset-backed securities		3,304		0		0		11,215		14,519
Total repurchase agreements	$	148,706	$	0	$	2,532	$	133,625	$	284,863

	December 31, 2024
	Remaining Contractual Maturity of the Agreements
(in thousands)	Overnight and Continuous		Up to 30 days		30-90 days		Greater Than 90 days		Total
Repurchase agreements and repurchase-to-maturity transactions:
U.S. Treasury and government agencies	$	23,240	$	11	$	7,657	$	25,482	$	56,390
State and political subdivisions		108,775		489		7,288		3,700		120,252
Agency mortgage-backed securities		17,756		0		34,355		7,091		59,202
Asset-backed securities		4,322		0		0		0		4,322
Total repurchase agreements	$	154,093	$	500	$	49,300	$	36,273	$	240,166

Repurchase agreements are subject to underlying agreements with master netting or similar arrangements, which provide for the right of setoff in the event of default or in the event of bankruptcy of either party to the transactions. Repurchase agreements are reported to these arrangements on a gross basis. The following table presents information regarding repurchase agreements as if it was presented on a net basis as of September 30, 2025 and December 31, 2024:

							Gross Amount Not Offset in the Balance Sheet
(in thousands)	Gross Amount of Recognized Liabilities		Gross Amount Offset in the Balance Sheet		Net Amount of Liabilities Presented in the Balance Sheet		Financial Instruments Posted as Collateral			Cash Posted as Collateral		Net Amount
September 30, 2025:
Repurchase agreements	$	284,863	$	0	$	284,863	$	(284,863	)	$	0	$	0

December 31, 2024:
Repurchase agreements	$	240,166	$	0	$	240,166	$	(240,166	)	$	0	$	0

Amounts disclosed for collateral received or posted include cash and securities up to and not exceeding the net amount of the repurchase agreement liability presented in the balance sheet. The fair value of the total collateral may exceed the amounts presented. Refer to Note 3 for the total fair value of financial instruments pledged as collateral for repurchase agreements.