| 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, 2013 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 | | $ | 61,100 | | | $ | 435 | | | $ | (272 | ) | | $ | 61,263 | | State and political subdivisions | | | 115,724 | | | | 4,949 | | | | (225 | ) | | | 120,448 | | U.S. government sponsored agency mortgage-backed securities | | | 428,787 | | | | 11,992 | | | | (309 | ) | | | 440,470 | | Total debt securities | | | 605,611 | | | | 17,376 | | | | (806 | ) | | | 622,181 | | Marketable equity securities | | | 55,000 | | | | 606 | | | | (277 | ) | | | 55,329 | | Total available-for-sale securities | | $ | 660,611 | | | $ | 17,982 | | | $ | (1,083 | ) | | $ | 677,510 | |
Held-to-Maturity
(in thousands) | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | U.S. Treasury and government agencies | | $ | 480 | | | $ | 0 | | | $ | (7 | ) | | $ | 473 | | State and political subdivisions | | | 1,182 | | | | 1 | | | | 0 | | | | 1,183 | | Total held-to-maturity securities | | $ | 1,662 | | | $ | 1 | | | $ | (7 | ) | | $ | 1,656 | |
The amortized cost and fair value of securities as of December 31, 2012 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 | | $ | 60,625 | | | $ | 463 | | | $ | (173 | ) | | $ | 60,915 | | State and political subdivisions | | | 107,987 | | | | 5,369 | | | | (135 | ) | | | 113,221 | | U.S. government sponsored agency mortgage-backed securities | | | 370,246 | | | | 13,347 | | | | (12 | ) | | | 383,581 | | Total debt securities | | | 538,858 | | | | 19,179 | | | | (320 | ) | | | 557,717 | | Marketable equity securities | | | 45,000 | | | | 791 | | | | (165 | ) | | | 45,626 | | Total available-for-sale securities | | $ | 583,858 | | | $ | 19,970 | | | $ | (485 | ) | | $ | 603,343 | |
Held-to-Maturity
(in thousands) | | Amortized Cost | | | Gross Unrealized Gains | | | Gross Unrealized Losses | | | Fair Value | | U.S. Treasury and government agencies | | $ | 480 | | | $ | 0 | | | $ | (4 | ) | | $ | 476 | | State and political subdivisions | | | 1,182 | | | | 1 | | | | 0 | | | | 1,183 | | Total held-to-maturity securities | | $ | 1,662 | | | $ | 1 | | | $ | (4 | ) | | $ | 1,659 | |
The amortized cost and fair value of securities at March 31, 2013 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 | | $ | 7,602 | | | $ | 7,653 | | | $ | 0 | | | $ | 0 | | Due after one through five years | | | 23,004 | | | | 24,051 | | | | 0 | | | | 0 | | Due after five through ten years | | | 107,594 | | | | 109,952 | | | | 1,182 | | | | 1,183 | | Due after ten years | | | 38,624 | | | | 40,055 | | | | 480 | | | | 473 | | U.S. government sponsored agency mortgage-backed securities | | | 428,787 | | | | 440,470 | | | | 0 | | | | 0 | | Total debt securities | | | 605,611 | | | | 622,181 | | | | 1,662 | | | | 1,656 | | Marketable equity securities | | | 55,000 | | | | 55,329 | | | | 0 | | | | 0 | | Total securities | | $ | 660,611 | | | $ | 677,510 | | | $ | 1,662 | | | $ | 1,656 | |
There were no sales of securities and no gains or losses realized as of March 31, 2013 or 2012.
The amortized cost of securities pledged as collateral, to secure public deposits and for other purposes, was $258.6 million at March 31, 2013 and $262.4 million at December 31, 2012.
The amortized cost of securities sold under agreements to repurchase amounted to $237.0 million at March 31, 2013 and $237.3 million at December 31, 2012. Certain investments in debt and marketable equity securities are reported in the financial statements at amounts less than their historical costs. CTBI evaluates its investment portfolio on a quarterly basis for impairment. The analysis performed as of March 31, 2013 indicates that all impairment is considered temporary, market driven, and not credit-related. The percentage of total investments with unrealized losses as of March 31, 2013 was 22.2% compared to 14.8% as of December 31, 2012. 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, 2013 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 | | $ | 48,078 | | | $ | (272 | ) | | $ | 47,806 | | State and political subdivisions | | | 17,012 | | | | (212 | ) | | | 16,800 | | U.S. government sponsored agency mortgage-backed securities | | | 55,489 | | | | (309 | ) | | | 55,180 | | Total debt securities | | | 120,579 | | | | (793 | ) | | | 119,786 | | Marketable equity securities | | | 30,000 | | | | (277 | ) | | | 29,723 | | Total <12 months temporarily impaired AFS securities | | | 150,579 | | | | (1,070 | ) | | | 149,509 | | | | | | | | | | | | | | | | 12 Months or More | | | | | | | | | | | | | State and political subdivisions | | | 1,106 | | | | (13 | ) | | | 1,093 | | Total ≥12 months temporarily impaired AFS securities | | | 1,106 | | | | (13 | ) | | | 1,093 | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | U.S. Treasury and government agencies | | | 48,078 | | | | (272 | ) | | | 47,806 | | State and political subdivisions | | | 18,118 | | | | (225 | ) | | | 17,893 | | U.S. government sponsored agency mortgage-backed securities | | | 55,489 | | | | (309 | ) | | | 55,180 | | Total debt securities | | | 121,685 | | | | (806 | ) | | | 120,879 | | Marketable equity securities | | | 30,000 | | | | (277 | ) | | | 29,723 | | Total temporarily impaired AFS securities | | $ | 151,685 | | | $ | (1,083 | ) | | $ | 150,602 | |
Held-to-Maturity
(in thousands) | | Amortized Cost | | | Gross Unrealized Losses | | | Fair Value | | Less Than 12 Months | | | | | | | | | | U.S. Treasury and government agencies | | $ | 480 | | | $ | (7 | ) | | $ | 473 | | Total temporarily impaired HTM securities | | $ | 480 | | | $ | (7 | ) | | $ | 473 | |
The analysis performed as of December 31, 2012 indicated that all impairment was considered temporary, market 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, 2012 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 | | $ | 47,576 | | | $ | (173 | ) | | $ | 47,403 | | State and political subdivisions | | | 11,126 | | | | (135 | ) | | | 10,991 | | U.S. government sponsored agency mortgage-backed securities | | | 10,563 | | | | (12 | ) | | | 10,551 | | Total debt securities | | | 69,265 | | | | (320 | ) | | | 68,945 | | Marketable equity securities | | | 20,000 | | | | (165 | ) | | | 19,835 | | Total <12 months temporarily impaired AFS securities | | | 89,265 | | | | (485 | ) | | | 88,780 | | | | | | | | | | | | | | | | Total | | | | | | | | | | | | | U.S. Treasury and government agencies | | | 47,576 | | | | (173 | ) | | | 47,403 | | State and political subdivisions | | | 11,126 | | | | (135 | ) | | | 10,991 | | U.S. government sponsored agency mortgage-backed securities | | | 10,563 | | | | (12 | ) | | | 10,551 | | Total debt securities | | | 69,265 | | | | (320 | ) | | | 68,945 | | Marketable equity securities | | | 20,000 | | | | (165 | ) | | | 19,835 | | Total temporarily impaired AFS securities | | $ | 89,265 | | | $ | (485 | ) | | $ | 88,780 | |
Held-to-Maturity
(in thousands) | | Amortized Cost | | | Gross Unrealized Losses | | | Fair Value | | Less Than 12 Months | | | | | | | | | | U.S. Treasury and government agencies | | $ | 480 | | | $ | (4 | ) | | $ | 476 | | Total temporarily impaired HTM securities | | $ | 480 | | | $ | (4 | ) | | $ | 476 | |
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