Company: SYBT
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001437749-25-033206
Chunk: 40

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 40
---
			3,077

Activity for capitalized mortgage servicing rights was as follows:

			Three months ended

			Nine months ended

			September 30,

			September 30,

			(in thousands)

			2025

			2024

			2025

			2024

			Balance, beginning of period

			$
			10,706

			$
			12,197

			$
			11,333

			$
			13,082

			Additions for mortgage loans sold

			322

			247

			828

			682

			Amortization

			(581
			)

			(536
			)

			(1,714
			)

			(1,856
			)

			Impairment

			—

			—

			—

			—

			Balance, end of period

			$
			10,447

			$
			11,908

			$
			10,447

			$
			11,908

42

The estimated fair value of MSRs at September 30, 2025 and December 31, 2024 was $23 million and $25 million, respectively. There was no valuation allowance recorded for MSRs as of September 30, 2025 and December 31, 2024, as fair value exceeded carrying value. The fair value of MSRs at September 30, 2025 was determined using discount rates ranging from 9.5% to 12.5%, prepayment speeds ranging from 6.4% to 11.3%, depending on the characteristics of the specific rights (rate, maturity, etc.), and a weighted average default rate of 0.5%. The fair value of MSRs at December 31, 2024 was determined using discount rates ranging from 10.0% to 13.0%, prepayment speeds ranging from 5.3% to 10.5%, depending on the characteristics of the specific rights, and a weighted average default rate of 0.6%.

Total outstanding principal balances of loans serviced for others were $1.75 billion and $1.82 billion at September 30, 2025 and December 31, 2024, respectively.

Mortgage banking derivatives used in the ordinary course of business consist primarily of mandatory forward sales contracts and interest