Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 103

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 103
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 tool for liquidity management. In managing the composition of the balance sheet, Bancorp seeks a balance between earnings sources, credit and liquidity considerations.

Investment securities decreased $138 million, or 10%, to $1.22 billion at June 30, 2025 compared to $1.36 billion at December 31, 2024. This decline was driven mainly by scheduled maturities within the treasury portfolio specifically, and to a lesser extent, normal pay down activity. Investment in the securities portfolio during the first half of 2025 consisted of purchasing short term treasury securities to put excess liquidity to work and provide collateral to meet pledging requirements, while still offering the funding flexibility allowed by their short duration.

FHLB Stock

FHLB stock holdings increased $1 million to $23 million at June 30, 2025 compared to $22 million at December 31, 2024. The increase was driven by fluctuations in FHLB borrowing activity during the first six months 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 six months of 2025, as overnight borrowings were utilized amidst solid loan growth and deposit fluctuations, primarily during the first quarter. Bancorp’s FHLB stock holdings are expected to fluctuate consistent with borrowing activity from period to period.

Loans

Total loans increased $330 million, or 5%, from December 31, 2024 to June 30, 2025. The loan growth experienced during the first half of 2025 was well spread across loan categories, with CRE, C&I line of credit and residential real estate growth leading the way.

Total line of credit utilization has experienced steady improvement over the past several quarters, ending at 47.8% as of June 30, 2025 compared to 45.9% at December 31, 2024 and 41.1% at June 30, 2024. Similarly, utilization within the C&I portfolio improved to 36.9% at June 30, 2025 compared to 33.7% at December 31, 2024 and 30.8% at June 30, 2024, which was evidenced by the solid growth seen within the C&I line of credit segment of the loan portfolio.

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Bancorp’s credit exposure