Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 95

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 or 2%, from December 31, 2024 to March 31, 2025. Interest bearing deposits increased $84 million, or 2%, 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 $43 million, or 3%, as of period end, average non-interest bearing deposits decreased $67 million, or 4% decrease for the three months ended March 31, 2025 compared to the three months ended December 31, 2024.

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 2.00% from 1.95% for the three months ended March 31, 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.

75

Securities Sold Under Agreements to Repurchase

SSUAR declined $12 million, or 7%, between December 31, 2024 and March 31, 2025, as the result of normal fluctuations.

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 March 31, 2025 and December 31, 2024, all of these financing arrangements had overnight maturities and were secured by government sponsored enterprise obligations and government agency mortgage-backed securities that were owned and controlled by Bancorp.

SSUAR are collateralized by securities and are treated as financings; accordingly, the securities involved with the agreements are recorded as assets and are held by a safekeeping agent and the obligations to repurchase the securities are reflected as liabilities. All securities underlying the agreements are under Bancorp’s control.

Federal Funds Purchased 

FFP and other short-term borrowing balances were relatively flat between December 31, 2024 and March 31, 2025, increasing less than 1%. At March 31, 2025, FFP related mainly to excess liquidity held by downstream correspondent bank customers of Banc