Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 88

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 88
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 stock holdings increased $7 million to $29 million at March 31, 2025 compared to $22 million at December 31, 2024. The increase was driven by fluctuations in FHLB borrowing activity during the first quarter of 2025, as FHLB members are required to hold certain levels of FHLB stock in relation to the amount of their borrowings. While period end FHLB borrowings were unchanged, average borrowing activity increased during the first quarter of 2025, as overnight borrowings were utilized amidst solid loan growth and deposit fluctuations. Bancorp’s FHLB stock holdings will fluctuate consistent with borrowing activity from period to period.

Loans

Total loans increased $126 million, or 2%, from December 31, 2024 to March 31, 2025. The loan growth experienced during the first quarter of 2025 was well spread across loan categories, with C&D, CRE and C&I line of credit growth leading the way.

Total line of credit utilization has experienced steady improvement over the past several quarters. While relatively flat at 45.7% as of March 31, 2025 compared to 45.9% at December 31, 2024, recent utilization has experienced strong improvement from 38.9% at March 31, 2024. Similarly, utilization within the C&I portfolio was 33.7% at both March 31, 2025 and December 31, 2024, compared to 27.3% at March 31, 2024.

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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 unfunded commitments are primarily concentrated within Bancorp’s current market areas, which encompass the Louisville, Kentucky MSA, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio MSAs.

CRE represents the largest segment of Bancorp’s loan portfolio, totaling $2.88 billion, or 43%, of total loans as of March 31, 2025. While a combination of sustained higher interest rates and rising central business district vacancies across the country have created credit and collateral concerns within the CRE sector generally, Bancorp believes the quality of its CRE portfolio, and the overall loan portfolio