Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 40

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 40
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 offset this interest rate risk the Bank enters into derivatives, such as mandatory forward contracts to sell loans. The fair value of these mandatory forward contracts will fluctuate as market interest rates fluctuate, and the change in the value of these instruments is expected to largely, though not entirely, offset the change in fair value of loans held for sale and rate lock commitments. The objective of this activity is to minimize the exposure to losses on rate lock loan commitments and loans held for sale due to market interest rate fluctuations. The net effect of derivatives on earnings will depend on risk management activities and a variety of other factors, including: market interest rate volatility; the amount of rate lock commitments that close; the ability to fill the forward contracts before expiration; and the time period required to close and sell loans.

The following table includes the notional amounts and fair values of mortgage loans held for sale and mortgage banking derivatives:

			June 30, 2025

			December 31, 2024

			(in thousands)

			Notional 

			Amount

			Fair Value

			Notional 

			Amount

			Fair Value

			Included in Mortgage loans held for sale:

			Mortgage loans held for sale, at fair value

			$
			4,804

			$
			5,014

			$
			6,199

			$
			6,286

			Included in other assets:

			Rate lock loan commitments

			$
			10,103

			$
			450

			$
			7,138

			$
			225

			Mandatory forward contracts

			-

			-

			9,000

			56

			Included in other liabilities

			Mandatory forward contracts

			$
			10,250

			$
			86

			$
			-

			$
			-

43

			(16) 

			Accumulated Other Comprehensive Income (Loss)

The following table illustrates activity within the balances of AOCI, net of tax, by component:

			Net unrealized

			Net unrealized

			Minimum

			gains (losses)

			gains (losses)

			pension

			on available for 

			on cash

			liability

			(in thousands)

			sale debt securities

			flow hedges

			adjustment

			Total