Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 117

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 our customers default on their resulting obligation to us, our maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those instruments.

The ACL for off balance sheet credit exposures, which is separate from the ACL for loans and recorded in other liabilities on the consolidated balance sheets, was $6.7 million as of June 30, 2025 and $6.8 million December 31, 2024, respectively. Negative provision (credit to expense) of $75,000 was recorded for off balance sheet credit exposures during the six month period ended June 30, 2025, as overall utilization improved and thus reduced the reserve necessary for line of credit availability.

Standby letters of credit are conditional commitments issued by Bancorp to guarantee the performance of a customer to a third party beneficiary. Those guarantees are primarily issued to support commercial transactions. Standby letters of credit generally have maturities of one to two years.

In addition to owned banking facilities, Bancorp has entered into long-term leasing arrangements for certain facilities. Bancorp also has required future payments for a non-qualified defined benefit retirement plan, TPS and the maturity of time deposits.

See the footnote titled “Commitments and Contingent Liabilities” for additional information regarding commitments.

Capital

At June 30, 2025, stockholders’ equity totaled $1.01 billion, representing an increase of $65 million, or 7%, compared to December 31, 2024, as net income of $67.3 million and an $15.8 million improvement in AOCI was offset by $18.3 million of dividends declared during the first six months of 2025. The improvement in AOCI was associated with changes in the interest rate environment and the corresponding impact on the valuation of the AFS debt securities portfolio and cash flow hedging derivatives. See the “Condensed Consolidated Statement of Changes in Stockholders’ Equity” for further detail of changes in equity. 

87

Bancorp’s TCE ratio and tangible book value per share, both non-GAAP disclosures, experienced improvement between December 31, 2024 and June 30, 2025, which stemmed largely from recording net income of $67.3 million. TCE was 8.86% at June 30, 2025 compared to 8.44% at December 31, 2024, while tangible book value per share was $27.06 at June 30, 2025