Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 68

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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%, for the three months ended March 31, 2025 compared to the same period of the prior year. Bancorp currently utilizes a $300 million term advance in conjunction with four separate interest rate swaps of varying maturities in an effort to secure longer-term funding at a more favorable rate. Bancorp has also utilized overnight borrowings more heavily during the first quarter of 2025 to fund loan growth, but all overnight borrowings were paid off prior to period end, attributed largely to interest bearing deposit growth.

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			Average SSUAR decreased $6 million, or 4%, for the three months ended March 31, 2025 compared to the same period of the prior year, representing normal fluctuation.

Total interest expense increased $4.1 million, or 11%, for the three months ended March 31, 2025 compared to the same period of 2024, driven by average interest bearing deposit and FHLB advance growth. Despite this growth, the cost of interest bearing liabilities decreased 2 bps to 2.63% for the three months ended March 31, 2025 compared to the same period of 2024, driven by the interest rate cuts enacted by the Fed in the latter part of 2024.

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			Total interest bearing deposit expense increased $2.7 million, or 9%, driven by growth in the time deposit portfolio associated with successful promotional campaigns, which was only partially offset by decreases in interest expense for the other interest-bearing deposit categories. While the cost of interest bearing deposits declined 2 bps to 2.63% compared to the first quarter of 2024, the cost of total deposits increased 5 bps to 2.00% over the same period, which is the result of the continued deposit mix shift towards more interest bearing deposits.

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			Interest expense on FHLB borrowings increased $1.7 million, or 58%, for the three months ended March 31, 2025, as compared to same period of the prior year, driven by increased borrowing activity.

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			Interest expense on SSUAR decreased $117,000, or 13%, for the three months ended March 31, 2025, as compared to the same period of the prior year, consistent with the average balance decrease.

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Average Balance Sheets and Interest Rates (FTE) – Three-Month Comparison

			Three months ended March