Company: SYBT
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001437749-25-024786
Chunk: 94

Company: Stock Yards Bancorp, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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5, as compared with the same periods of 2024. Consistent with the banking industry generally, Bancorp has experienced a steady decline in the volume of fees earned on overdrawn checking accounts over the past several years. This trend has been driven by lower check presentment volume, which has in turn led to fewer overdrawn accounts in general. Further, Bancorp anticipates that future growth of this revenue stream could be significantly impacted by changing industry practices. Bancorp could be faced with strategic decisions surrounding deposit-related service charges in the future, which could negatively impact the contributions made by this, or similar, revenue streams.

Debit and credit card income consists of interchange revenue, ancillary fees and incentives received from card processors. Debit and credit card revenue decreased $86,000, or 2%, and $260,000, or 3%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024, attributed to declines in customer spending. Total debit card income decreased $44,000, or 1%, and $161,000, or 2%, and total credit card income decreased $43,000, or 3%, and $98,000, or 3%, for the three and six month periods ended June 30, 2025, compared the same periods of the prior year. The six month period was also impacted to some extent by severe weather experienced in all of Bancorp’s markets earlier in the year, which muted spending activity. While Bancorp generally expects this revenue stream to grow with continued expansion of the customer base, interchange rate compression and fluctuations in business and consumer spend levels could serve as challenges to future growth.

Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. Treasury management fees increased $180,000, or 6%, and $228,000, or 4%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024. While both periods benefitted from organic growth and new product sales, the three months ended June 30, 2025 represented the first full quarter of broad fee increases implemented earlier this year.

Mortgage banking income primarily includes gains on sales of mortgage loans and net loan servicing income offset by MSR amortization. Bancorp’s mortgage banking department predominantly originates residential mortgage loans to be sold in the secondary market, primarily to FNMA and FHLMC. Bancorp offers conventional