Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 91

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 91
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 (consisting of all loans 30 days or more past due) totaled $34 million and $32 million at March 31, 2025 and December 31, 2024. Delinquent loans to total loans were 0.50% at both March 31, 2025 and December 31, 2024, respectively. The increase in delinquent loans over this period was primarily driven by two unrelated CRE relationships totaling $4 million that went past due during the first quarter.

Allowance for Credit Losses on Loans 

The ACL for loans is a valuation allowance for loans estimated at each balance sheet date in accordance with GAAP. When Bancorp deems all or a portion of a loan to be uncollectible, the appropriate amount is written off and the ACL is reduced by the same amount. Subsequent recoveries, if any, are credited to the ACL when received. Allocations of the ACL may be made for specific loans, but the entire ACL for loans is available for any loan that, in Bancorp’s judgment, should be charged-off. See the Footnote titled “Summary of Significant Accounting Policies” from Bancorp’s most recent Annual Report on Form 10-K for discussion of Bancorp’s ACL methodology on loans.

Bancorp’s ACL for loans was $89 million as of March 31, 2025 compared to $87 million as of December 31, 2024. Provision expense for credit losses on loans of $900,000 was recorded for the first quarter of 2025, consistent with solid loan growth, and to a lesser extent, offset by a stable FRB unemployment forecast and annual CECL model updates. Further, net recoveries of $971,000 were recorded for the three months ended March 31, 2025, serving to increase the ACL for loans.

The ACL for loans calculation and resulting credit loss expense is significantly impacted by changes in forecasted economic conditions. Should the forecast for economic conditions change, Bancorp could experience further adjustments in its required ACL for loans.

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The following table sets forth the ACL by category of loan:

			March 31, 2025

			December 31, 2024

			(dollars in thousands) 

			Allocated

			Allowance

			% of Total 

			ACL on 

			loans

			ACL for

			loans to 

			Total Loans

			Allocated 

			Allowance