Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 90

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 90
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 part to attrition associated with employee retirements and market competition. Positions impacted by attrition have since been filled and Bancorp experienced positive net new business (annualized) during the six months ended June 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, decreased $300,000, or 3%, and $470,000, or 2%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024. The decrease was driven largely by the previously mentioned impact of lost business.

A portion of WM&T revenue, most notably executor and certain employee benefit plan-related fees, are non-recurring in nature and the timing of these revenues corresponds with the related administrative activities. For this reason, such fees are subject to greater period over period fluctuation. Total non-recurring fees decreased $11,000 and increased $34,000 for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024.

AUM, stated at market value, totaled $7.19 billion at June 30, 2025 compared with $7.07 billion at December 31, 2024 and $7.48 billion at June 30, 2024. The decrease in AUM between June 30, 2024 and June 30, 2025 is attributed mainly to business lost over the past year. However, AUM expansion was experienced during between the first and second quarters of 2025, marking the first quarter of AUM growth after several consecutive quarters of contraction.

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Contracts between WM&T and their customers do not permit performance-based fees and accordingly, none of the WM&T revenue is performance based. Management believes the WM&T department will continue to factor significantly in Bancorp’s financial results and provide strategic diversity to revenue streams.

Detail of WM&T Service Income by Account Type:

			Three months ended June 30,

			Six months ended June 30,

			(in thousands)

			2025

			2024

			2025