Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 109

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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As of September 30, 2025, non-accrual loans totaled $19 million compared to $22 million at December 31, 2024. The decrease in total non-accrual loans between December 31, 2024 and September 30, 2025 stemmed mainly from the payoff of two CRE relationships during the first quarter and the paydown of another during the second quarter.

Non-performing assets as of September 30, 2025 consisted of approximately 90 loans, ranging in individual amounts up to $4 million, and one residential real estate property held as OREO.

Delinquent Loans

Delinquent loans (consisting of all loans 30 days or more past due) totaled $32 million at both September 30, 2025 and December 31, 2024. Delinquent loans to total loans were 0.47% and 0.50% at September 30, 2025 and December 31, 2024, respectively.

80

Allowance for Credit Losses on Loans 

The ACL for loans is a valuation allowance for loans estimated at each balance sheet date in accordance with GAAP. When Bancorp deems all or a portion of a loan to be uncollectible, the appropriate amount is written off and the ACL is reduced by the same amount. Subsequent recoveries, if any, are credited to the ACL when received. Allocations of the ACL may be made for specific loans, but the entire ACL for loans is available for any loan that, in Bancorp’s judgment, should be charged-off. See the Footnote titled “Summary of Significant Accounting Policies” from Bancorp’s most recent Annual Report on Form 10-K for discussion of Bancorp’s ACL methodology on loans.

Bancorp’s ACL for loans was $92 million as of September 30, 2025 compared to $87 million as of December 31, 2024. Provision expense for credit losses on loans of $4.7 million was recorded for the nine months ended September 30, 2025, consistent with strong loan growth, changes in the FRB’s national unemployment forecast, increased specific reserves and annual CECL model updates. Further, net recoveries of $517,000 were recorded for the nine months ended September 30, 2025, serving to increase the ACL for loans.

The ACL for loans calculation and resulting credit loss expense is significantly impacted by changes in forecasted economic conditions. Should the forecast for economic