Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 79

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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06% for the same period of the prior year. The nine months ended September 30, 2025 also benefitted from the payoff of two non-accrual loans during the period, which included approximately $828,000 of interest income.

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			Despite the decline in average investment securities, there was a $1.9 million, or 8%, increase in interest income (FTE) on the portfolio for the nine months ended September 30, 2025 compared to the same period of 2024. This increase was driven by temporarily reinvesting a portion of lower-yielding maturities at significantly higher short-term rates to satisfy collateral pledging requirements. As a result, the corresponding yield on the portfolio climbed to 2.50% for the nine months ended September 30, 2025, compared to 2.06% for the prior year period. These short-term securities ultimately matured toward the end of the third quarter and were not reinvested.

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			Interest income on FFS and interest bearing due from bank balances increased $3.5 million, or 57%, for the nine months ended September 30, 2025, consistent with the average balance increase. The yield on these assets decreased 96 bps to 4.43% for the nine months ended September 30, 2025 compared to the same period of 2024 due to rate reductions enacted by the FRB over the last 12 months.

Total average interest bearing liabilities increased $715 million, or 13%, to $6.33 billion for the nine month period ended September 30, 2025 compared with the same period in 2024.

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			Average interest bearing deposits increased $781 million, or 16%, for the nine months ended September 30, 2025 compared to the same period in 2024. Bancorp experienced a $485 million, or 46%, increase in average time deposits and increases of $178 million, or 8%, and $124 million, or 10%, increase in average interest bearing demand and money market deposits, respectively, as a result of depositors seeking higher-yielding deposit products in the current environment.

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			Average FHLB advances decreased $37 million, or 9%, for the nine months ended September 30, 2025 compared to the same period of the prior year. Bancorp’s utilization of overnight borrowings declined