Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 98

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 incentives received from card processors. Debit and credit card revenue decreased $74,000, or 1%, and $334,000, or 2%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, attributed mainly to lower transaction volumes. Total debit card income decreased $43,000, or 1%, and $204,000, or 2%, and total credit card income decreased $31,000, or 2%, and $130,000, or 3%, for the three and nine month periods ended September 30, 2025, compared the same periods of the prior year. While Bancorp generally expects this revenue stream to grow with continued expansion of the customer base, interchange rate compression and fluctuations in business and consumer spend levels could serve as challenges to future growth.

Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. Treasury management fees decreased $16,000, or 1%, and increased $212,000, or 3%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024. While both periods have benefitted from organic growth and new product sales in addition to broad fee increases implemented towards the end of the first quarter, the decrease for the three month period is attributed to the prior year period experiencing elevated levels of foreign currency exchange income.

Mortgage banking income primarily includes gains on sales of mortgage loans and net loan servicing income offset by MSR amortization. Bancorp’s mortgage banking department predominantly originates residential mortgage loans to be sold in the secondary market, primarily to FNMA and FHLMC. Bancorp offers conventional, VA, FHA and GNMA financing for purchases and refinances, as well as programs for first-time homebuyers. Interest rates on mortgage loans directly influence the volume of business transacted by the mortgage-banking department. Mortgage banking revenue increased $140,000, or 13%, and $186,000, or 6%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, driven by higher origination volumes related largely to the addition of new sales officers.

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Net investment product sales commissions and fees are generated primarily on stock, bond and mutual fund sales, as well as wrap fees earned on brokerage accounts via an arrangement with a third party broker-dealer. Wrap fees represent charges for investment programs