Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 80

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 80
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 the nine months ended September 30, 2025, consistent with substantial interest-bearing deposit growth. No overnight borrowings were outstanding as of September 30, 2025. Bancorp currently utilizes a $300 million term advance in conjunction with four separate interest rate swaps of varying maturities in an effort to secure longer-term funding at more favorable rates. This advance represents the only outstanding FHLB borrowing as of September 30, 2025.

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			Average SSUAR decreased $26 million, or 17%, for the nine months ended September 30, 2025 compared to the same period of the prior year, driven by both normal fluctuation and a number of clients moving into other deposit offerings.

Total interest expense increased $9.9 million, or 9%, for the nine months ended September 30, 2025 compared to the same period of 2024, driven almost entirely by increased time deposit expense associated with successful CD promotion, which was only partially offset by smaller declines in virtually every other interest-bearing liability category. Despite the increased expense, the cost of interest-bearing deposits declined 3 bps to 2.56% and total interest-bearing liability cost declined 10 bps 2.65%, which was attributed to the impact of the FRB’s interest rate reductions enacted over the last 12 months.

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			Total interest bearing deposit expense increased $13.9 million, or 14%, driven by growth in the time deposit portfolio associated with successful promotional CD products offered through April of this year. The cost of interest bearing deposits declined 3 bps compared to the nine months ended September 30, 2024, which was driven by Bancorp’s ability to reduce deposit rates consistent with the rate reductions implemented by the FRB over the last 12 months.

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			Interest expense on FHLB borrowings decreased $3.0 million, or 22%, for the nine months ended September 30, 2025, as compared to same period of the prior year. Both overnight borrowing volume and cost declined consistent with interest-bearing deposit growth and the FRB’s previously mentioned rate cuts.

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			Interest expense on SSUAR decreased $612,000, or 23%, for the nine months ended September 30, 2025, as compared to the same period of the prior year, consistent with the average balance decrease and rate reductions.

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Average Balance Sheets and Interest Rates (FTE