Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 68

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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Interest income experienced a $29.3 million, or 15%, increase as a result of significant average earning asset growth, far surpassing the $7.4 million, or 10%, increase in interest expense driven by growth in interest-bearing liabilities. Interest income for the six months ended June 30, 2025 also benefitted from the payoff of a large non-accrual relationship, including interest income, during the first quarter.

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			While Bancorp has experienced a shift to a higher-costing deposit mix over the past several quarters, the cost of interest bearing deposits was flat at 2.55% for the six months ended June 30, 2025 compared to the same period of the prior year, stemming from the impact of the FRB’s rate cuts enacted over the latter part of 2024. However, the overall cost of deposits, including non-interest bearing deposits, increased 7 bps to 2.03% for the six months ended June 30, 2025 compared to the same period of 2024 due to a decline in average non-interest bearing deposits.

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			NIM increased 27 bps to 3.50% for the six months ended June 30, 2025, compared to the same period of the prior year, driven by average earning assets growth and a decline in the cost of interest-bearing liabilities.

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			Non-interest income increased $418,000, or 1%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, as swap fees and growth in treasury management revenue and investment product sales helped overcome declines in WM&T revenue, deposit service charges and card income.

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			Non-interest expenses increased $5.7 million, or 6%, for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, driven mainly by higher compensation expenses associated with increased bonus accrual levels, increased net occupancy expenses and elevated marketing expenses related to promotional deposit campaigns that ran primarily during the first quarter of 2025.

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			Bancorp’s efficiency ratio (FTE) for the six months ended June 30, 2025 was 54.15% compared to 57.96% for the six months ended June 30, 2024. This improvement is attributed to strong net interest income growth,