Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 98

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 98
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 the same periods of 2024. The increases were attributed primarily to higher bonus accrual levels associated with the strong performance experienced through the first half of 2025, and to a lesser extent, growth in full time equivalent employees. Net full time equivalent employees totaled 1,118 at June 30, 2025 compared to 1,080 at December 31, 2024 and 1,062 at June 30, 2024.

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Employee benefits consists of all personnel-related expense not included in compensation, with the most significant items being health insurance, payroll taxes and employee retirement plan contributions. Employee benefits increased $244,000, or 5%, and $153,000, or 1%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024, driven by higher 401(k) matching expense and payroll tax expenses related to the previously mentioned growth in FTEs, which more than offset a decline in health insurance expense attributed to lower claims activity.

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 $206,000, or 5%, and $659,000, or 9%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024, consistent with higher rent and depreciation expense. The six 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 June 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 decreased $121,000, or 2%, and $362,000, or 4%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024, due to temporarily lower technology spending and various upgrade expenses incurred in the prior year. However, Bancorp does expect technology-related expenses to increase over the second half of 2025, as several