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

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 25
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 exceeds the amortization expense associated with them, resulting in a positive impact on net income. In addition to income tax benefits, these investments also serve as an economical means of achieving CRA goals. The investments in such partnerships are recorded in other assets on the consolidated balance sheets, while the corresponding contribution requirements are recorded in other liabilities. While contributions are made periodically over the life of the respective investments, which can be up to 10 years depending on the type of investment, the majority of contributions associated with a respective investment are made within the first few years after entering the partnership.

Bancorp’s investments in tax credit partnerships, including the related unfunded contributions, totaled $194 million and $185 million as of September 30, 2025 and December 31, 2024, respectively, and are included in other assets on the condensed consolidated balance sheets.

As of September 30, 2025, Bancorp’s expected payments for unfunded contributions related to investments in tax credit partnerships, which are accrued and included in other liabilities on the condensed consolidated balance sheets, were as follows:

			(dollars in thousands)

			September 30, 2025

			Remainder of 2025

			$
			24,095

			2026

			53,724

			2027

			24,627

			2028

			3,173

			2029

			1,479

			Thereafter

			7,387

			Total unfunded contributions

			$
			114,485

The following table presents tax credits and other tax benefits recognized in addition to amortization expense related to Bancorp’s investment in tax credit partnerships for the three and nine month periods ended September 30, 2025 and 2024:

			Three months ended

			Nine months ended

			September 30,

			September 30,

			(in thousands)

			2025

			2024

			2025

			2024

			Proportional amortization method:

			Tax credits and other tax benefits recognized

			$
			5,751

			$
			2,448

			$
			17,160

			$
			9,570

			Amortization expense in provision for income taxes

			4,402

			1,927

			13,295

			7,753