Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 93

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 93
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43.7% and 44.3% of total non-interest income for the three and nine month periods ended September 30, 2025 compared to 44.1% and 45.3% for the same periods of the prior year. The decreases from the prior year were attributed to period over period declines in WM&T revenue related to the impact of business lost over the past 12 months.

WM&T Services:

The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue decreased $227,000, or 2%, and $663,000, or 2%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, attributed to the residual impact of business lost in prior periods in addition to lower estate fee income, the latter of which is non-recurring in nature.

Net new business refers to revenue generated from newly acquired customers, excluding revenue from upselling or cross-selling to existing active customers. It plays a crucial role in expanding Bancorp’s financial base and ensuring long-term sustainability and success. In the latter part of 2024, the WM&T department experienced negative net new business for the first time in several years, driven by employee attrition associated with aggressive recruiting and market competition for clients. Positions impacted by attrition have since been filled and Bancorp experienced positive net new business (annualized) during the nine months ended September 30, 2025. While recent trends suggest a turn-around regarding net new business is in process, the fallout from the previously mentioned employee attrition/client departures is still being felt, as it could take several quarters for benefit of new hire production to be realized.

Recurring fees earned for managing accounts are based on a percentage of market value of AUM and are typically assessed on a monthly basis. Recurring fees, which generally comprise the vast majority of WM&T revenue, increased $175,000, or 2%, and decreased $294,000, or 1%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024. While both the three and nine month periods ended September 30, 2025 were impacted by the previously mentioned lost business, the three month period benefitted from stronger market returns as compared to the same period of the prior year.

A portion of WM&T revenue, most notably executor and certain employee benefit plan-related fees, are non-recurring