Company: SYBT
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001437749-25-014698
Chunk: 85

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 85
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 changes in loan mix, as higher assessments are levied on C&D lending concentrations, a segment which grew as a percentage of total loans.

Capital and deposit based taxes, which consist primarily of capital-based local income taxes and franchise taxes, increased $70,000, or 11%, for the three month period ended March 31, 2025 compared to the same period of 2024. Bancorp’s capital and deposit based tax expense is based on deposits held within various local taxing districts, as well as gross revenues generated within/appropriated to the state of Ohio, which is the only state Bancorp operates in with a capital-based deposit tax.

Intangible amortization expense consists of amortization associated with the CDI of acquired deposit portfolios, as well as an intangible related to customer list of the WM&T business line added through a past acquisition. The intangibles are amortized on an accelerated basis over a period of approximately ten years. Intangible amortization expense decreased $138,000, or 13%, for the three month period ended March 31, 2025 compared to the same period of the prior year, which is attributed to the accelerated depreciation method for which intangible assets are amortized.

Other non-interest expenses decreased $157,000, or 6%, for the three month period ended March 31, 2025, as compared to the same period of 2024, driven by significant declines in fraudulent check and card losses in addition to lower collections-related expenses.

69

Income Tax Expense

A comparison of income tax expense and ETR follows:

			Three months ended March 31,

			(dollars in thousands)

			2025

			2024

			$/bp Variance

			% Variance

			Income before income tax expense

			$
			41,621

			$
			32,955

			$
			8,666

			26
			%

			Income tax expense

			8,350

			7,068

			1,282

			18

			Effective tax rate

			20.06
			%

			21.45
			%

			(139) bps

			(6
			)

Fluctuations in the ETR are primarily attributed to the following:

			●

			The impact of state income taxes, net of federal benefit, serves to increase the overall ETR and fluctuates