Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 86

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 consistent with the level of pre-tax income that is taxable at the state level. The ETR was increased by 2.84% for the three months ended March 31, 2025, compared to an increase of 3.27% for the three months ended March 31, 2024. The impact to the ETR attributed to state income taxes for the current year was lower compared to the prior year, despite higher pre-tax income, due to recognizing more interest income from U.S. treasury securities, which is tax-exempt at the state level.

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			The stock based compensation component of the ETR fluctuates consistent with the level of SAR exercise activity in addition to the levels of PSU, RSA and RSU vesting. The ETR was reduced by 0.65% for the three months ended March 31, 2025 compared to an increase of 0.32% for the same period of 2024, consistent with exercise and vesting activity. 

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			The cash surrender value of life insurance policies can vary widely from period to period, driven largely by market changes. The related impact is inversely correlated with the ETR generally, with cash surrender value declines typically serving to increase the ETR and vice versa. Changes in the cash surrender value of life insurance policies decreased the ETR by 0.22% and 0.96% for the three months ended March 31, 2025 and 2024, respectively.

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			Bancorp invests in certain partnerships that yield federal income tax credits. Taken as a whole, the tax benefit of these investments exceeds amortization expense, resulting in a positive impact on net income. The timing and magnitude of these transactions may vary widely from period to period. Cumulative tax credit activity for the three months ended March 31, 2025 and 2024 served to reduce the ETR 2.70% and 0.69%, respectively.

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			Tax-exempt interest income earned on loans and investment securities reduced the ETR by 0.34% and 0.49% for the three months ended March 31, 2025 and 2024, respectively.

70

			Financial Condition – March 31, 2025 Compared to December 31, 2024

Overview

Total assets increased $134 million, or 2%, to $9.00 billion at March 31, 2025 from $