Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 99

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 99
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 planned technology investments get underway.

Bancorp outsources processing for debit and commercial credit card operations, which generate significant revenue for the Company. The related expenses typically fluctuate consistent with transaction volumes. Debit and credit card processing expense increased $97,000, or 5%, and $170,000, or 5%, for the three and six month periods ending June 30, 2025 compared to the same periods of the prior year, driven by higher processing fees, including increased fraud-mitigation expenses.

Marketing and business development expenses include all costs associated with promoting Bancorp, including community support, retaining customers and acquiring new business. Marketing and business development expenses increased $355,000, or 22%, and $795,000, or 30%, for the three and six month periods ending June 30, 2025, as compared to the same periods of 2024, which was primarily the result of higher advertising expense tied to deposit product promotions in addition to increased customer entertainment and various corporate sponsorships.

Postage, printing and supplies expense increased $24,000, or 3% and $67,000, or 4%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024, consistent with the previously mentioned deposit product promotions.

Legal and professional fees decreased $97,000, or 8%, and $305,000, or 13%, for the three and six month periods ended June 30, 2025 compared to the same periods of the prior year, driven primarily by lower compliance-related consulting expense associated with Bancorp approaching $10 billion in total assets in addition to generally lower legal expenses.

FDIC insurance expense increased $99,000, or 9%, and $210,000, or 9%, for the three and six month periods ended June 30, 2025, as compared to the same periods of 2024, consistent with Bancorp’s growth in addition to changes in loan mix, as higher assessments are levied on C&D lending concentrations, a segment which grew as a percentage of total loans.

Capital and deposit based taxes, which consist primarily of capital-based local income taxes and franchise taxes, increased $65,000, or 10%, and $135,000, or 10%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024. Bancorp’s capital and deposit based tax expense is based on deposits held within