Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 112

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 segment.

Other Assets and Other Liabilities

Other assets decreased $2 million, or less than 1%, to $307 million between December 31, 2024 and June 30, 2025. Other liabilities decreased $24 million, or 9%, to $235 million over the same period. The increase in other assets stemmed mainly from appreciation within insurance policies held outside of Bancorp’s traditional BOLI. Further, an increase in tax credit investment assets and a decrease in interest rate swap derivative assets were largely offsetting. The decrease in other liabilities was driven largely by a reduction in various accrued liabilities, such as employee incentive compensation and tax credit investment contributions.

Deposits

Total deposits increased $340 million, or 5%, from December 31, 2024 to June 30, 2025. Interest bearing deposits increased $282 million, or 5%, tied primarily to the success of deposit promotions during the first quarter, which more than offset declines in interest bearing demand and money market deposits. While non-interest bearing deposits increased $59 million, or 4%, as of period end, average non-interest bearing deposits decreased $50 million, or 3%, for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.

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Bancorp continues to experience a shift in the deposit portfolio mix, as customers continue to seek higher-yielding alternatives to low-rate or non-interest bearing deposits in the higher rate environment. While the cost of interest-bearing deposits has moderated in recent quarters, the cost of total deposits (including non-interest deposits) increased to 2.03% from 1.96% for the six months ended June 30, 2025 compared to the same period of the prior year. Bancorp expects deposit costs to potentially weigh on NIM in the coming quarters due to deposit pricing pressure/competition and the continued shift in deposit mix.

Securities Sold Under Agreements to Repurchase

SSUAR declined $36 million, or 22%, between December 31, 2024 and June 30, 2025, driven in part by normal fluctuation as well as a small number of clients within the product switching into other deposit offerings.

SSUAR represent a funding source of Bancorp and are used by commercial customers in conjunction with collateralized corporate cash management accounts. Such repurchase agreements are considered financing agreements and mature within one business day from the transaction date. At June 30, 2025 and