Repurchase Agreements

6 Months Ended

Jun. 30, 2023

Note 6 – 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 $300.3 million and $273.8 million at June 30, 2023 and December 31, 2022, 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 June 30, 2023 and December 31, 2022 is presented in the following tables:

	June 30, 2023
	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	$	19,951	$	2,000	$	0	$	22,608	$	44,559
State and political subdivisions		99,257		1,391		0		7,898		108,546
U.S. government sponsored agency mortgage-backed securities		23,552		7,609		0		43,633		74,794
Asset-backed securities		1,121		0		0		0		1,121
Total	$	143,881	$	11,000	$	0	$	74,139	$	229,020

	December 31, 2022
	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	$	21,679	$	34	$	2,979	$	1,832	$	26,524
State and political subdivisions		96,627		466		9,634		2,140		108,867
U.S. government sponsored agency mortgage-backed securities		17,964		0		52,387		9,385		79,736
Asset-backed securities		304		0		0		0		304
Total	$	136,574	$	500	$	65,000	$	13,357	$	215,431