Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 71

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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 broad expense increases attributed to the Company’s growth over the past 12 months.

			●

			Bancorp’s efficiency ratio (FTE) for the nine months ended September 30, 2025 was 53.75% compared to 56.56% for the nine months ended September 30, 2024. This improvement is attributed to strong net interest income growth, which outpaced growth in non-interest expenses.

			Results of Operations 

Net Interest Income - Overview

As is the case with most banks, Bancorp’s primary revenue sources are net interest income and fee income from various financial services provided to customers. Net interest income is the difference between interest income earned on loans, investment securities and other interest earning assets less interest expense on deposit accounts and other interest bearing liabilities. Loan volume and interest rates earned on those loans are critical to overall profitability. Similarly, deposit volume is crucial to funding loans and rates paid on deposits directly impact profitability. New business volume is influenced by numerous economic factors including market interest rates, business spending, liquidity, consumer confidence and competitive conditions within the marketplace. The discussion that follows is based on FTE net interest income data.

Comparative information regarding net interest income follows:

			(dollars in thousands)

			Variance

			As of and for the three months ended September 30, 

			2025

			2024

			$/bp 

			% 

			Net interest income

			$
			77,037

			$
			64,979

			$
			12,058

			19
			%

			Net interest income (FTE)*

			77,119

			65,064

			12,055

			19
			%

			Net interest spread (FTE)*

			2.90
			%

			2.57
			%

			33 bps

			13
			%

			Net interest margin (FTE)*

			3.56
			%

			3.33
			%

			23 bps

			7
			%

			Average interest earning assets

			$
			8,586,419

			$
			7,783,997

			$
			802,422

			10
			%

			Average interest bearing liabilities

			6,439,410

			5