Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 20

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 20
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,374

			51,646

			Investments in tax credit partnerships

			198,044

			185,424

			Derivative assets

			1,265

			12,437

			Prepaid assets

			5,306

			6,369

			WM&T fees receivable

			4,880

			4,523

			Mortgage servicing rights

			10,706

			11,333

			Other real estate owned

			10

			10

			Other

			18,173

			17,113

			Total other assets

			$
			306,782

			$
			308,750

Bancorp maintains life insurance policies other than BOLI in conjunction with its non-qualified defined benefit retirement and non-qualified compensation plans.

Bancorp periodically invests in certain partnerships that generate federal income tax credits. The tax benefit of these investments 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. For additional information, see the footnote titled “Income Taxes.”

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. For additional information, see the footnote titled “Derivative Financial Instruments.”

For additional information related to MSRs, see the footnote titled “Mortgage Banking Activities.”

31

			(7) 

			Income Taxes

Components of income tax expense from operations follows:

			Three months ended

			Six months ended

			June 30,

			June 30,

			(in thousands)

			2025

			2024

			2025

			2024

			Current income tax expense