Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 65

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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 months ended June 30, 2025 compared to the same period of the prior year.

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			Bancorp’s ACL on loans increased $8.6 million, or 10%, compared to June 30, 2024. The increase over the past 12 months was attributed to significant loan growth, slight deterioration within the unemployment forecast and increased specific reserves, which were only partially offset by annual CECL model updates.

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			Provision for credit losses on loans totaled $2.3 million for the three months ended June 30, 2025, compared to $1.1 million for the three months ended June 30, 2024.

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			Deposit balances increased $938 million, or 14%, compared to June 30, 2024, most notably by growth in time deposits tied to the success of competitive CD offerings.

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			Net interest income (FTE) totaled $73.6 million for the three months ended June 30, 2025, representing an increase of $11.5 million, or 18%, compared to the three months ended June 30, 2024.

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			Interest income experienced a $14.7 million, or 15%, increase over this period as a result of significant average earning asset growth, far surpassing the $3.2 million, or 8%, increase in interest expense driven by growth in interest-bearing liabilities.

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			Bancorp has continued to experience a shift in the deposit mix towards higher-yielding offerings, driven in large part by time deposit growth. As a result, the overall cost of deposits, including non-interest bearing deposits, increased 10 bps to 2.06% compared to the second quarter of 2024.

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			However, despite higher deposit costs, the overall cost of interest-bearing liabilities declined 10 bps for the three months ended June 30, 2025 compared to the same period of the prior year, as the previously mentioned deposit growth all but eliminated the need for more expensive overnight borrowings through FHLB.

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			NIM increased 27 bps to 3.53% for the three months ended June 30, 2025, compared to the same period of the prior year, driven primarily by the previously mentioned earning asset growth and decline in the cost of total interest bearing liabilities.

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			Non-interest income increased