Company: SYBT
Filing Date: 2025-03-12
Form Type: DEF 14A
Source: 0001437749-25-007118
Chunk: 43

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-03-12
Form: DEF 14A
Chunk 43
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 organic loan growth in our history, we generated record levels of revenue and experienced solid deposit growth across all four of our markets: Louisville, Kentucky, Central Kentucky, Indianapolis, Indiana and Cincinnati, Ohio.

| ● | Our loan growth in 2024 was robust, with ending balances increasing by $749 million, or 13%, over the past year, and marking our fourth consecutive year of double-digit loan expansion. |

| ● | Credit quality metrics remained solid, with non-performing loans at 0.34% of total loans. We recorded credit loss expense of $9.7 million in 2024 and we established credit loss reserves to total loans of 1.33% at year end. |

| ● | Deposit balances expanded during the year, increasing $495 million, or 7%, with our deposit base reaching the $7 billion mark for the first time in our history. As anticipated, our deposit mix continued to shift from non-interest-bearing deposits into higher costing deposits during the year. |

| ● | The last two years have been difficult for the banking industry as a whole, fueled by inflationary concerns and volatile interest rates. Operating in a relatively higher interest rate environment, the Federal Reserve Board began reducing interest rates in September 2024, ultimately lowering interest rates 100 basis points. Despite the lowering of interest rates, our yield earned on loans, and in turn total earning assets, reached the highest levels achieved since 2008. Also, we experienced a significant slowdown in cost of funds expansion, particularly during the second half of the year, as short term interest rates fell. |

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In recognition of our continued growth and superior service to our clients, the Board of Directors took several steps to ensure compensation of key executives reflected the Company’s growth, the increased level of responsibility, and stellar performance in 2024. Of particular importance to the Board of Directors was that the Company’s level of profitability in 2024 was aligned with the Company’s strategic plan related to both its core operations as well as the expected accretive impact of the Kentucky Bancshares and Commonwealth Bancshares acquisitions.

| ● | For our NEOs, with the exception of Ms. Budnick, salaries and target annual incentives were not changed for 2024. Ms. Budnick’s salary and target annual incentive were increased in connection with her increased responsibilities related to her promotion to Executive Vice President (“EVP”) and Director of WM&T in January 2024. |

| ● | Further, the Compensation Committee