Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 106

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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 to a lesser extent, normal pay down activity. Investment in the securities portfolio during the first nine months of 2025 consisted of purchasing short-term treasury securities to put excess liquidity to work and provide collateral to meet pledging requirements, while still offering the funding flexibility allowed by their short duration. Bancorp opted to let these short-term investments mature toward the end of the third quarter, providing liquidity to fund continued loan growth and the ability to strategically manage the balance sheet.

FHLB Stock

FHLB stock holdings decreased $886,000, or 4%, to $21 million at September 30, 2025 compared to $22 million at December 31, 2024. The increase was driven by fluctuations in FHLB borrowing activity during the first nine months of 2025, as FHLB members are required to hold certain levels of FHLB stock in relation to the amount of their borrowings. Bancorp’s reliance on overnight borrowings through the FHLB was gradually eliminated through the first nine months of 2025, consistent with substantial deposit growth. Bancorp’s FHLB stock holdings are expected to fluctuate consistent with borrowing activity from period to period.

Loans

Total loans increased $409 million, or 6%, from December 31, 2024 to September 30, 2025. The loan growth experienced during the first nine months of 2025 was well spread across loan categories, with CRE, residential real estate and C&I line of credit growth leading the way.

Total line of credit utilization has experienced steady improvement over the past several quarters, ending at 46.8% as of September 30, 2025 compared to 45.9% at December 31, 2024 and 43.2% at September 30, 2024. Similarly, utilization within the C&I portfolio improved to 36.8% at September 30, 2025 compared to 33.7% at December 31, 2024 and 31.8% at September 30, 2024, which was evidenced by the solid growth seen within the C&I line of credit segment of the loan portfolio.

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Bancorp’s credit exposure is diversified between businesses and individuals. No specific industry concentration exceeds 10% of loans outstanding. While Bancorp has a diversified loan portfolio, a customer’s ability to honor loan agreements is somewhat dependent upon the economic stability and/or industry in which that customer does business. Loans outstanding and related