Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 46

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 46
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)

			53.10

			Unvested at December 31, 2024

			102

			$
			54.92

			Unvested at January 1, 2025

			102

			$
			54.92

			Shares awarded

			38

			76.12

			Restrictions lapsed and shares released

			(31
			)

			51.64

			Shares cancelled

			(3
			)

			61.44

			Unvested at June 30, 2025

			106

			$
			62.18

48

Shares expected to be awarded for PSUs granted to executive officers of Bancorp, the three-year performance period for which began January 1 of the award year, are as follows:

			Vesting 

			Shares 

			Grant

			period

			Fair

			expected to

			year

			in years

			value

			be awarded

			2023

			3

			54.33

			18,765

			2024

			3

			41.84

			49,957

			2025

			3

			67.61

			39,940

49

			(20) 

			Derivative Financial Instruments

Periodically, Bancorp enters into interest rate swap transactions with borrowers who desire to hedge exposure to rising interest rates, while at the same time entering into an offsetting interest rate swap, with substantially matching terms, with another approved independent counterparty. These are undesignated derivative instruments and are recognized on the balance sheet at fair value. Because of matching terms of offsetting contracts and collateral provisions mitigating any non-performance risk, changes in fair value subsequent to initial recognition have an insignificant effect on earnings. Exchanges of cash flows related to undesignated interest rate swap agreements were offsetting and therefore had no effect on Bancorp’s earnings or cash flows.

Interest rate swap agreements derive their value from underlying interest rates. These transactions involve both credit and market risk. Notional amounts are amounts on which calculations, payments and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Bancorp is exposed to credit-related losses