Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 101

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 periods ended September 30, 2025, as compared with the same periods of 2024. The increases for both periods were driven largely by the previously mentioned growth in FTEs.

Net occupancy and equipment expenses primarily include depreciation, rent, property taxes, utilities and maintenance. Costs of capital asset additions flow through the statement of income over the lives of the assets in the form of depreciation expense. Net occupancy expense increased $311,000, or 8%, and $970,000, or 9%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, consistent with higher rent and depreciation expense. The nine month period was also impacted by elevated snow removal activity stemming from severe winter weather experienced in all of Bancorp’s markets earlier in the year. At September 30, 2025, Bancorp’s branch network consisted of 73 locations throughout Louisville, central, eastern and Northern Kentucky, as well as the MSAs of Indianapolis, Indiana and Cincinnati, Ohio.

Technology and communication expenses include computer software usage and licensing fees, equipment depreciation and expenditures related to investments in technology needed to maintain and improve the quality of customer delivery channels, information security and internal resources. Technology expense increased $337,000, or 7%, and decreased $25,000, or less than 1%, for the three and nine month periods ended September 30, 2025 compared to the same periods of 2024. The variances for both periods are attributed to the timing of technology spending and various upgrade expenses incurred in the prior year. Several planned technology investments began in the third quarter, driving the increase for the three month period and closing the gap on what had been a larger year-to-date variance through the first and second quarters of 2025.

Bancorp outsources processing for debit and commercial credit card operations, which generate significant revenue for the Company. The related expenses typically fluctuate consistent with transaction volumes. Debit and credit card processing expense increased $139,000, or 8%, and $309,000, or 6%, for the three and nine month periods ending September 30, 2025 compared to the same periods of the prior year, driven by higher processing fees, including increased fraud-mitigation expenses.

Marketing and business development expenses include all costs associated with promoting Bancorp, including community support, retaining customers and acquiring new business. Marketing and business development expenses increased $449,000, or 31%, and $1.