Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 90

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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33
			%

			1.36
			%

			1.33
			%

			1.36
			%

			ACL for loans to average total loans

			1.34
			%

			1.38
			%

			1.37
			%

			1.43
			%

(1) Ratios are not annualized

The ACL for loans totaled $92 million as of September 30, 2025 compared to $85 million at September 30, 2024, representing an ACL to total loans ratio of 1.33% and 1.36% for the respective periods.

Provision expense on loans of $1.6 million and $4.7 million was recorded for the three and nine month periods ended September 30, 2025. While expense for both periods were consistent with strong loan growth, changes within the FRB’s national unemployment forecast and increased specific reserves, expense for the nine month period was also impacted by annual CECL model updates made during the first quarter of 2025. Net charge offs of $112,000 and net recoveries of $517,000 were recorded for the three and nine month periods ended September 30, 2025, respectively.

Provision expense on loans of $4.3 million and $6.6 million was recorded for the three and nine month periods ended September 30, 2024. Expense for the prior year was driven mainly to strong loan growth and deterioration in the FRB’s national unemployment forecast. Net charge offs of $1.1 million and $606,000 were recorded for the three and nine month periods ended September 30, 2024, serving to decrease the ACL for loans.

While separate from the ACL for loans and recorded in other liabilities on the consolidated balance sheets, the ACL for off balance sheet credit exposures also increased between December 31, 2024 and September 30, 2025. Provision expense of $425,000 and $350,000 for off balance sheet credit exposures was recorded for the three and nine month periods ended September 30, 2025, respectively, driven by increased availability associated with new line production, particularly within the C&D segment. The lower expense recorded for the nine month period stemmed from recording a credit to provision expense for off balance sheet credit exposures during the first quarter, consistent with improved utilization and thus reduced availability for that period. The ACL for off balance sheet exposures totaled