Stock Yards Bancorp, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
SYBT$79.26-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-04.
0001437749-26-025620
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0000835324-26-000004
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 219 previous paragraphs and 314 current paragraphs.
113 unchanged; 94 reworded; 105 added; 12 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 111 previous and 21 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (105)
Current report
•Changes in, or forecasts of, future political and economic conditions, inflation or recession and efforts to control related developments;
Current report
•changes in laws and regulations or the interpretation thereof;
Current report
•accuracy of assumptions and estimates used in establishing the ACL for loans, ACL for off-balance sheet credit exposures and other estimates;
Current report
•impairment of investment securities;
Current report
•impairment of goodwill, MSRs, other intangible assets and/or DTAs;
Current report
•ability to effectively navigate an economic slowdown or other economic or market disruptions;
Current report
•changes in fiscal, monetary, and/or regulatory policies;
Current report
•changes in tax polices including but not limited to changes in federal and state statutory rates;
Current report
•behavior of securities and capital markets, including changes in interest rates, market volatility and liquidity;
Current report
•ability to effectively manage capital and liquidity;
Current report
•long-term and short-term interest rate fluctuations, as well as the shape of the U.S. Treasury yield curve;
Current report
•the magnitude and frequency of changes to the FFTR implemented by the Federal Open Market Committee of the FRB;
Current report
•competitive product and pricing pressures;
Current report
•projections of revenue, expenses, capital expenditures, losses, EPS, dividends, capital structure, etc.;
Current report
•integration of acquired financial institutions, businesses or future acquisitions;
Current report
•changes in the credit quality of Bancorp’s customers and counterparties, deteriorating asset quality and charge-off levels;
Current report
•changes in technology instituted by Bancorp, its counterparties or competitors;
Current report
•changes to or the effectiveness of Bancorp’s overall internal control environment;
Current report
•adequacy of Bancorp’s risk management framework, disclosure controls and procedures and internal control over financial reporting;
Current report
•changes in applicable accounting standards, including the introduction of new accounting standards;
Current report
•changes in investor sentiment or behavior;
Current report
•changes in consumer/business spending or savings behavior;
Current report
•ability to appropriately address social, environmental and sustainability concerns that may arise from business activities;
Current report
•occurrence of natural or man-made disasters or calamities, including health emergencies, the spread of infectious diseases, pandemics or outbreaks of hostilities, and Bancorp’s ability to deal effectively with disruptions caused by the foregoing;
Current report
•ability to maintain the security of its financial, accounting, technology, data processing and other operational systems and facilities;
Current report
•ability to withstand disruptions that may be caused by any failure of its operational systems or those of third parties;
Current report
•ability to effectively defend itself against cyberattacks or other attempts by unauthorized parties to access information of Bancorp, its vendors or its customers or to disrupt systems; and
Current report
•other risks and uncertainties reported from time-to-time in Bancorp’s filings with the SEC, including Part I Item 1A “Risk Factors”of Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025.
Current report
•Net income totaled a record $43.5 million for the three months ended September 30, 2026, resulting in diluted EPS of $1.40, compared to net income of $36.2 million for the three months ended September 30, 2025, which resulted in diluted EPS of $1.23.
Current report
•The three months ended September 30, 2026 represented the first full quarter of activity associated with the FM acquisition, which contributed approximately $7.8 million in net interest income, $2.0 million in non-interest income and $6.2 million in non-interest expense, including $678,000 of non-recurring merger-related charges.
Current report
•Total loans increased $1.06 billion, or 15%, compared to September 30, 2025, driven by the loan portfolio acquired from FM in addition to solid organic growth. Average loans also increased $1.06 million, or 15%, for the three months ended September 30, 2026 compared to the same period of the prior year.
Current report
•Bancorp’s ACL on loans increased $16 million, or 17%, compared to September 30, 2025, driven by organic and acquisition-related loan growth.
Current report
◦Provision for credit losses on loans of $700,000 was recorded for the three months ended September 30, 2026, consistent with moderate loan growth that was partially offset by an improved unemployment forecast and strong credit quality metrics.
Current report
◦The ACL on loans was increased $18 million as a result of the loan portfolio added through the FM acquisition.
Current report
•Deposit balances increased $746 million, or 10%, compared to September 30, 2025, which was attributed primarily to the deposit portfolio assumed through the FM acquisition.
Current report
•Net interest income (FTE) totaled $92.7 million for the three months ended September 30, 2026, representing an increase of $15.6 million, or 20%, compared to the three months ended September 30, 2025.
Current report
◦Interest income experienced a $14.1 million, or 12%, increase over this period as a result of strong average loan growth, which was coupled with a $1.5 million, or 3%, decrease in interest expense stemming from lower deposit costs that were the result of strategically lowering rates in tandem with interest rate reductions implemented by the FRB in the latter part of 2025, despite the interest expense added as a result of the FM acquisition.
Current report
◦NIM increased 32 bps to 3.88% for the three months ended September 30, 2026, compared to the same period of the prior year, driven by a 31 bps decline in the cost of interest-bearing liabilities and a 7 bps improvement in earning asset yields.
Current report
•Non-interest income increased $3.2 million, or 13%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, which was the result of both organic growth and acquisition-related activity.
Current report
•Non-interest expenses increased $10.3 million, or 19%, for the three months ended September 30, 2026, compared to the three months ended September 30, 2025, attributed to higher compensation and employee benefit expense in addition to continued investment in technology and the impact of the FM acquisition.
Showing the first 40 of 105 passages. Open the source sections for the rest.
Removed paragraphs (12)
Previous report
Total interest income (FTE) increased $13.3 million, or 12%, to $128.4 million for the three months ended June 30, 2026, as compared to the same period of 2025.
Previous report
Net Interest Income (FTE)–** Six months ended June 30, 2026 compared to June 30, 2025:**
Previous report
Total interest income (FTE) increased $19.8 million, or 9%, to $246.1 million for the six months ended June 30, 2026, as compared to the same period of 2025.
Previous report
Average Balance Sheets and Interest Rates (FTE)–** Six-Month Comparison**
Previous report
(1) Ratios are not annualized
Previous report
Negative provision (credit to expense) of $75,000 for off balance sheet credit exposures was recorded for the three and six month periods ended June 30, 2025, as line of credit utilization improved during the first half of 2025, reducing the reserve necessary for line availability. The ACL for off balance sheet exposures totaled $6.7 million as of June 30, 2025.
Previous report
Other non-interest expenses increased $346,000, or 14%, and $474,000, or 10%, for the three and six month periods ended June 30, 2026 as compared to the same periods of 2025, driven mainly by costs associated with growth in the ICS deposit product offering and the impact of the FM acquisition in addition to other miscellaneous expenses.
Previous report
Income Tax Expense
Previous report
Bancorp occasionally enters into loan participation agreements with other banks to diversify credit risk. For certain participation loans sold, Bancorp has retained effective control of the loans, typically by restricting the participating institutions from pledging or selling their ownership share of the loan without permission from Bancorp. GAAP requires the participated portion of these loans to be recorded as secured borrowings. These participated loans are included in the C&I and CRE loan portfolio segments with a corresponding liability recorded in other liabilities. At both June 30, 2026 and December 31, 2025, the total participated portion of loans of this nature totaled $2 million.
Previous report
The ACL for off balance sheet credit exposures, which is separate from the ACL for loan and recorded in other liabilities on the consolidated balance sheets, increased $375,000 between December 31, 2025 and June 30, 2026. While no provision expense was recorded for off balance sheet credit exposures for the three and six months ended June 30, 2026, the liability was increased as a result of the line of credit portfolio added through the FM acquisition, with the corresponding offset recorded to goodwill (as opposed to provision expense). The lack of expense for the first half of 2026, is consistent with lower availability (excluding acquisition-related activity) stemming from improved utilization. The ACL for off balance sheet exposures totaled $8.3 million as of June 30, 2026.
Previous report
Other assets increased $21 million, or 7%, to $326 million between December 31, 2025 and June 30, 2026. Other liabilities decreased $25 million, or 11%, to $196 million over the same period. While the increase for other assets was due in larger part to the impact of the FM acquisition, while decrease in other liabilities was driven by a reduction in various accrued liabilities, such as employee incentive compensation and other benefit-related accruals in addition to accrued tax liabilities.
Previous report
The ACL for off balance sheet credit exposures, which is separate from the ACL for loan and recorded in other liabilities on the consolidated balance sheets, increased $375,000 between December 31, 2025 and June 30, 2026. While no provision expense was recorded for off balance sheet credit exposures for the three and six months ended June 30, 2026, the liability was increased as a result of the line of credit portfolio added through the FM acquisition, with the corresponding offset recorded to goodwill (as opposed to provision expense). The lack of expense for the first half of 2026, is consistent with lower availability (excluding acquisition-related activity) stemming from improved utilization. The ACL for off balance sheet exposures totaled $8.3 million as of June 30, 2026.
Reworded paragraphs (94)
Previous wording
SYB, established in 1904, is a state-chartered non-member financial institution that provides services throughout the state of Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio markets through 81 full service banking center locations. The Bank is registered with, and subject to supervision, regulation and examination by the FDIC and the Kentucky Department of Financial Institutions.
Current wording
SYB, established in 1904, is a state-chartered non-member financial institution that provides services throughout the state of Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio markets through 82 full service banking center locations. The Bank is registered with, and subject to supervision, regulation and examination by the FDIC and the Kentucky Department of Financial Institutions.
Previous wording
On May 1, 2026, Bancorp completed its acquisition of Field & Main Bancorp, Inc. and its wholly owned subsidiary, Field & Main Bank, a Henderson, Kentucky-based commercial bank and trust company, which operated 6 retail branches, including three in Henderson County, Kentucky and one each in Lexington, Kentucky, Cynthiana, Kentucky and Evansville, Indiana. At the time of acquisition and including purchase accounting adjustments, FM had $839 million in assets, including $626 million in net loans, $56 million in investment securities, and $765 million in deposits in addition to maintaining a Wealth Management and Trust Department with total assets under management of approximately $825 million. Bancorp acquired all outstanding common stock of Field & Main Bancorp, Inc. in an all-stock transaction that resulted in total consideration paid to Field & Main Bancorp, Inc. shareholders of $112 million.
Current wording
On May 1, 2026, Bancorp completed its acquisition of Field & Main Bancorp, Inc. and its wholly owned subsidiary, Field & Main Bank, a Henderson, Kentucky-based commercial bank and trust company, which operated 6 retail branches, including three in Henderson County, Kentucky and one each in Lexington, Kentucky, Cynthiana, Kentucky and Evansville, Indiana. At the time of acquisition and including purchase accounting adjustments, FM had $838 million in assets, including $624 million in net loans, $56 million in investment securities, and $765 million in deposits in addition to maintaining a Wealth Management and Trust Department with total assets under management of approximately $825 million. Bancorp acquired all outstanding common stock of Field & Main Bancorp, Inc. in an all-stock transaction that resulted in total consideration paid to Field & Main Bancorp, Inc. shareholders of $112 million.
Previous wording
Bancorp recorded goodwill of $44 million and incurred pre-tax merger related expenses totaling $2.3 million for the three months ended June 30, 2026 as a result of the FM acquisition.
Current wording
Bancorp recorded goodwill of $46 million and incurred pre-tax merger related expenses totaling $3.0 million for the nine months ended September 30, 2026 as a result of the FM acquisition.
Previous wording
Further, the FM acquisition served to increase the ACL on loans by $16 million at acquisition date. This increase consisted of $11 million attributed to the acquired PCD loan portfolio and $5 million attributed to the acquired non-PCD portfolio, with the corresponding offset for both recorded to goodwill.
Current wording
Further, the FM acquisition served to increase the ACL on loans by $18 million at acquisition date. This increase consisted of $11 million attributed to the acquired PCD loan portfolio and $5 million attributed to the acquired non-PCD portfolio recognized as part of the initial purchase accounting for the acquisition.
Previous wording
The following table presents an overview of Bancorp’s financial performance for the six months ended June 30, 2026 and 2025:
Current wording
The following table presents an overview of Bancorp’s financial performance for the nine months ended September 30, 2026 and 2025:
Previous wording
General highlights for the six months ended June 30, 2026 compared to June 30, 2025:
Current wording
General highlights for the nine months ended September 30, 2026 compared to September 30, 2025:
Previous wording
At June 30, 2026, Bancorp’s loan portfolio consisted of approximately 64% fixed and 36% variable rate loans. At inception, most of Bancorp’s fixed rate loans are generally priced in relation to the five year treasury note. Bancorp’s variable rate loans are typically indexed to either Prime or one month term SOFR, repricing as those rates change. At June 30, 2026, approximately 55% and 45% of Bancorp’s variable rate loan portfolio was indexed to Prime and SOFR, respectively.
Current wording
At September 30, 2026, Bancorp’s loan portfolio consisted of approximately 64% fixed and 36% variable rate loans. At inception, most of Bancorp’s fixed rate loans are generally priced in relation to the five year treasury note. Bancorp’s variable rate loans are typically indexed to either Prime or one month term SOFR, repricing as those rates change. At September 30, 2026, approximately 54% and 46% of Bancorp’s variable rate loan portfolio was indexed to Prime and SOFR, respectively.
Previous wording
Towards the end of 2025, slight steepness on the longest portion of the yield curve began to be experienced, as three consecutive 25 bps rate reductions from the FRB in September, October and December resulted in the FFTR falling to a range of 3.50% - 3.75%, and Prime to 6.75%, as of December 31, 2025. While these levels were maintained through June 30, 2026, the yield curve continued to improve during the first half of this year, with spreads on the portion of the curve that is most critical to Bancorp’s business (overnight through 5 years) showing a semblance of normalization during the second quarter after battling flatness/inversion during the first three months of 2026.
Current wording
Towards the end of 2025, slight steepness on the longest portion of the yield curve began to be experienced, as three consecutive 25 bps rate reductions from the FRB in September, October and December resulted in the FFTR falling to a range of 3.50% - 3.75%, and Prime to 6.75%, as of December 31, 2025. These levels were maintained through September 16, 2026, when the FRB implemented a rate increase that took the FFTR to a range of 3.75% - 4.00% and Prime to 7.00%. The yield curve has gradually improved during 2026, with spreads on the portion of the curve that is most critical to Bancorp’s business (overnight through 5 years) showing a semblance of normalization after battling flatness/inversion ephor the past several years.
Previous wording
The NIM expansion experienced during the three months ended June 30, 2026 compared to recent quarters was attributed mainly to a continued decline in the cost of interest-bearing deposits. Bancorp strategically lowered deposit rates in tandem with FRB rate reductions and the repricing of the time deposit portfolio as the prior year’s promotional rates have adjusted to lower current offerings has provided significant benefit to NIM. In addition, while earning-asset yields have been challenged by lower rates, excess liquidity provided by deposit growth and the scheduled maturity of lower-yielding investment securities over the past 12 months has been used to fund higher-yielding loan growth, providing gradual improvement to yields.
Current wording
The NIM expansion experienced this year has been attributed mainly to a continued decline in the cost of interest-bearing deposits. Bancorp strategically lowered deposit rates in tandem with FRB rate reductions and the repricing of the time deposit portfolio as the prior year’s promotional rates have adjusted to lower current offerings has provided significant benefit to NIM. In addition, while earning-asset yields have been challenged by lower rates, excess liquidity provided by deposit growth and the scheduled maturity of lower-yielding investment securities over the past 12 months has been used to fund higher-yielding loan growth, providing gradual improvement to yields. While the FRB's recent interest increase had minimal impact on the third quarter given it's mid-September timing, Bancorp does expect it to provide a net benefit to NIM in coming months, as improved earning asset yields should outpace increasing deposit costs.
Previous wording
Recent projections indicate that the FRB will likely hold rates steady during the second half of 2026. However, given current geopolitical uncertainty and regularly changing economic data/conditions, projections remain volatile. Further, Bancorp remains cautious regarding both loan and deposit rates as pricing related to competitive pressures could intensify in the coming quarters.
Current wording
Recent projections indicate the potential for another 25 bps rate increase from the FRB towards the end of 2026. However, given current geopolitical uncertainty and regularly changing economic data/conditions, projections remain volatile. Further, Bancorp remains cautious regarding both loan and deposit rates as pricing related to competitive pressures could intensify in the coming quarters.
Previous wording
Net interest spread (FTE) and NIM (FTE) were 3.26% and 3.84%, for the three months ended June 30, 2026, compared to 2.87% and 3.53% for the same period of 2025, respectively.
Current wording
Net interest spread (FTE) and NIM (FTE) were 3.28% and 3.88%, for the three months ended September 30, 2026, compared to 2.90% and 3.56% for the same period of 2025, respectively.
Previous wording
Net interest income (FTE) increased $14.4 million, or 20%, for the three months ended June 30, 2026 compared to the same period of 2025, driven by strong organic average loan growth, a decline in interest expense related to the strategic reduction of deposit rates in tandem with FRB rate cuts and the impact of the F&M acquisition, the latter of which represents two months worth of activity.
Current wording
Net interest income (FTE) increased $15.6 million, or 20%, for the three months ended September 30, 2026 compared to the same period of 2025, driven by solid organic average loan growth, a decline in interest expense related to the strategic reduction of deposit rates in tandem with FRB rate cuts and the impact of the FM acquisition. The third quarter of 2026 represents the first full quarter of activity associated with the FM acquisition.
Previous wording
Total average interest earning assets increased $810 million, or 10%, for the three months ended June 30, 2026, as compared to the same period of 2025, attributed to both organic average earning asset growth and the impact of the FM acquisition, which was partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. The rate earned on average earning assets increased 9 bps to 5.61% despite the impact of rate reductions implemented by the FRB in the latter part of 2025, as liquidity provided by the scheduled maturity of lower-yielding securities helped fund higher-yielding organic loan growth and earning assets added through the FM acquisition helped boost yields.
Current wording
Total average interest earning assets increased $888 million, or 10%, for the three months ended September 30, 2026, as compared to the same period of 2025, attributed to both organic average earning asset growth and the impact of the FM acquisition, which was partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. The rate earned on average earning assets increased 7 bps to 5.63% despite the impact of rate reductions implemented by the FRB in the latter part of 2025, as liquidity provided by the scheduled maturity of lower-yielding securities helped fund higher-yielding organic loan growth and earning assets added through the FM acquisition benefitted yields.
Previous wording
Total average interest bearing liabilities increased $628 million, or 10%, to $6.91 billion for the three month period ended June 30, 2026 compared with the same period in 2025, driven by both organic growth and the impact of the FM acquisition.
Current wording
Total average interest bearing liabilities increased $625 million, or 10%, to $7.06 billion for the three month period ended September 30, 2026 compared with the same period in 2025, driven by the impact of the FM acquisition and organic growth.
Previous wording
Total interest expense decreased $1.0 million, or 3%, for the three months ended June 30, 2026 compared to the same period of 2025 despite additional costs related to the acquired deposit portfolio, consistent with the strategic reduction of deposit rates in tandem with FRB rate reductions.
Current wording
Total interest expense decreased $1.5 million, or 3%, for the three months ended September 30, 2026 compared to the same period of 2025 despite additional costs related to the acquired deposit portfolio, consistent with the strategic reduction of deposit rates in tandem with FRB rate decreases.
Previous wording
Net interest spread (FTE) and NIM (FTE) were 3.17% and 3.75%, for the six months ended June 30, 2026, compared to 2.85% and 3.50% for the same period of 2025, respectively.
Current wording
Net interest spread (FTE) and NIM (FTE) were 3.21% and 3.79%, for the nine months ended September 30, 2026, compared to 2.86% and 3.52% for the same period of 2025, respectively.
Previous wording
Net interest income (FTE) increased $22.2 million, or 15%, for the six months ended June 30, 2026 compared to the same period of 2025, driven by the impact of strong organic average loan growth on interest income, a decline in interest expense related to eliminating the need for the more expensive overnight borrowings that were utilized through the first quarter of 2025 and the impact of the FM acquisition, the latter of which represents two months worth of activity.
Current wording
Net interest income (FTE) increased $37.8 million, or 17%, for the nine months ended September 30, 2026 compared to the same period of 2025, driven by the impact of strong average loan balance growth on interest income, a decline in interest expense related to both eliminating the need for the more expensive overnight borrowings that were utilized in the prior year and strategically lowering deposit rates, as well as the impact of the FM acquisition, the latter of which represents five months worth of activity.
Previous wording
Total average interest earning assets increased $638 million, or 8%, for the six months ended June 30, 2026, as compared to the same period of 2025, attributed primarily to average organic loan and interest-bearing cash balance growth, and to a lesser extent, the impact of the FM acquisition. This growth was only partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. The rate earned on average earning assets increased 5 bp to 5.54% despite the impact of rate reductions implemented by the FRB in the latter part of 2025, as liquidity provided by the scheduled maturity of lower-yielding securities helped fund higher-yielding loan growth. The earning assets added through the FM acquisition also provided benefit to earning asset yields for the six months ended June 30, 2026.
Current wording
Total average interest earning assets increased $722 million, or 9%, for the nine months ended September 30, 2026, as compared to the same period of 2025, attributed primarily to average organic loan balance growth, interest-bearing cash balance growth and the impact of the FM acquisition. This growth was only partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. The rate earned on average earning assets increased 6 bps to 5.57% despite the impact of rate reductions implemented by the FRB in the latter part of 2025, as liquidity provided by the scheduled maturity of lower-yielding securities helped fund loan growth and/or moved into higher-yielding cash balances. The earning assets added through the FM acquisition also provided benefit to earning asset yields for the nine months ended September 30, 2026.
Previous wording
Total average interest bearing liabilities increased $512 million, or 8%, to $6.78 billion for the six month period ended June 30, 2026 compared with the same period in 2025, attributed primarily to organic growth, and to a lesser extent, the impact of the FM acquisition.
Current wording
Total average interest bearing liabilities increased $550 million, or 9%, to $6.88 billion for the nine month period ended September 30, 2026 compared with the same period in 2025, attributed to organic growth and the impact of the FM acquisition.
Previous wording
Total interest expense decreased $2.4 million, or 3%, for the six months ended June 30, 2026 compared to the same period of 2025 despite the added costs associated with the FM acquisition, driven primarily by eliminating the necessity of more expensive overnight borrowings from the FHLB.
Current wording
Total interest expense decreased $3.9 million, or 3%, for the nine months ended September 30, 2026 compared to the same period of 2025 despite the added costs associated with the FM acquisition, driven in large part by eliminating the necessity of more expensive overnight borrowings from the FHLB and the strategic reduction of deposit rates in tandem with FRB rate cuts in the latter part of 2025.
Previous wording
Bancorp’s loan portfolio is currently composed of approximately 64% fixed and 36% variable rate loans, with the fixed rate portion pricing generally based on a spread to the five year treasury curve at the time of origination and the variable portion pricing based on an on-going spread to Prime (approximately 55%) or SOFR (approximately 45%).
Current wording
Bancorp’s loan portfolio is currently composed of approximately 64% fixed and 36% variable rate loans, with the fixed rate portion pricing generally based on a spread to the five year treasury curve at the time of origination and the variable portion pricing based on an on-going spread to Prime (approximately 54%) or SOFR (approximately 46%).
Previous wording
The ACL for loans totaled $109 million as of June 30, 2026 compared to $91 million at June, 2025, representing an ACL to total loans ratio of 1.38% and 1.32% for the respective periods. The ACL for loans was increased $16 million as a result of the loan portfolio added through the FM acquisition during the second quarter, with the corresponding offset recorded to goodwill (as opposed to provision for credit loss expense).
Current wording
The ACL for loans totaled $108 million as of September 30, 2026 compared to $92 million at September 30, 2025, representing an ACL to total loans ratio of 1.35% and 1.33% for the respective periods. The ACL for loans was increased $18 million as a result of the loan portfolio added through the FM acquisition, with the corresponding offset recorded to goodwill (as opposed to provision for credit loss expense).
Previous wording
No provision expense on loans was recorded for the three month period ended June 30, 2026, consistent with muted organic loans growth, strong credit quality metrics and annual CECL methodology updates made during the second quarter. Provision expense on loans totaling $1.6 million was recorded for the six month period ended June 30, 2026, driven primarily by strong organic loan growth that was concentrated in the first quarter and was only partially offset by improvement in the unemployment forecast and decreased specific reserves. Net charge off/recovery activity was minimal for both the three and six month periods ended June 30, 2026.
Current wording
Provision expense on loans of $700,000 was recorded for the three month period ended September 30, 2026, consistent with moderate organic loan growth, an improved unemployment forecast and strong credit quality metrics. Provision expense on loans totaling $2.3 million was recorded for the nine month period ended September 30, 2026, driven primarily by strong organic loan growth that was only partially offset by improvement in the unemployment forecast and decreased specific reserves. Net charge off/recovery activity totaled $4.0 million and $3.9 million the three and nine month periods ended September 30, 2026, serving to reduce the ACL for loans, as the majority of charge off activity was fully reserved for.
Previous wording
Provision expense on loans of $2.3 million and $3.2 million was recorded for the three and six month periods ended June 30, 2025. While expense for both periods of the prior year were consistent with strong loan growth, slight deterioration within the unemployment forecast and increased specific reserves, expense for the six month period was also impacted by annual CECL model updates made during the first quarter of 2025. Net charge offs of $342,000 and net recoveries of $629,000 were recorded for the three and six month periods ended June 30, 2025, respectively.
Current wording
Provision expense on loans of $1.6 million and $4.7 million was recorded for the three and nine month periods ended September 30, 2025. While expense for both periods of the prior year was consistent with strong loan growth, slight deterioration within the unemployment forecast and increased specific reserves, expense for the nine month period was also impacted by annual CECL model updates made during the first quarter of 2025. Net charge offs of $112,000 and net recoveries of $517,000 were recorded for the three and nine month periods ended September 30, 2025, respectively.
Previous wording
Bancorp’s loan portfolio is well-diversified with no significant concentrations of credit. Geographically, most loans are extended to borrowers in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The adequacy of the ACL is monitored on an ongoing basis and it is the opinion of management that the balance of the ACL at June 30, 2026 is adequate to absorb probable losses inherent in the loan portfolio as of the financial statement date.
Current wording
Bancorp’s loan portfolio is well-diversified with no significant concentrations of credit. Geographically, most loans are extended to borrowers throughout the state of Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. The adequacy of the ACL is monitored on an ongoing basis and it is the opinion of management that the balance of the ACL at September 30, 2026 is adequate to absorb probable losses inherent in the loan portfolio as of the financial statement date.
Previous wording
Total non-interest income increased $2.4 million, or 10%, and $4.0 million, or 8%, for the three and six month periods ended June 30, 2026 compared to the same periods of 2025. Non-interest income comprised 23.3% and 23.6% of total revenues, defined as net interest income and non-interest income, for the three and six month periods ended June 30, 2026 compared to 24.9% and 24.7% for the same periods of 2025. The decreases from the prior year are attributed to net interest income growth outpacing non-interest income. WM&T services comprised 47.0% and 46.5% of total non-interest income for the three and six month periods ended June 30, 2026 compared to 43.0% and 44.6% for the same periods of the prior year. The increases over the prior year were driven by WM&T revenue growth outpacing the other non-interest income categories.
Current wording
Total non-interest income increased $3.2 million, or 13%, and $7.2 million, or 10%, for the three and nine month periods ended September 30, 2026 compared to the same periods of 2025. Non-interest income comprised 23.0% and 23.4% of total revenues, defined as net interest income and non-interest income, for the three and nine month periods ended September 30, 2026 compared to 24.1% and 24.5% for the same periods of 2025. The decreases from the prior year are attributed to net interest income growth outpacing non-interest income. WM&T services comprised 46.5% and 46.6% of total non-interest income for the three and nine month periods ended September 30, 2026 compared to 43.7% and 44.3% for the same periods of the prior year. The increases over the prior year were driven by WM&T revenue growth outpacing the other non-interest income categories.
Previous wording
Total non-interest income attributed to the FM acquisition for the three and six month periods ended June 30, 2026 totaled $1.3 million and represents two full months of activity related to FM.
Current wording
Total non-interest income attributed to the FM acquisition for the three and nine month periods ended September 30, 2026 totaled $2.0 million and $3.3 million. The three months ended September 30, 2026 represents the first full quarter of activity associated with the acquisition of FM while the nine months ended September 30, 2026 represents five months of such activity.
Previous wording
The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue increased $2.1 million, or 20%, and $2.8 million, or 13%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025, attributed to AUM expansion over the past 12 months, which has been driven by both general market appreciation and new business development in addition to the impact of the FM acquisition, the latter of which contributed approximately $789,000 in revenue for the three and six month periods ended June 30, 2026.
Current wording
The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue increased $2.2 million, or 20%, and $4.9 million, or 15%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025, attributed to AUM expansion over the past 12 months, which has been driven by both general market appreciation and new business development in addition to the impact of the FM acquisition, the latter of which contributed approximately $1.2 million and $2.0 million in revenue for the three and nine month periods ended September 30, 2026.
Previous wording
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, increased $2.2 million, or 21%, and $3.0 million, or 14%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025, consistent with AUM expansion, general market appreciation and the impact of the FM acquisition.
Current wording
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, increased $2.1 million, or 20%, and $5.1 million, or 16%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025, consistent with AUM expansion, general market appreciation and the impact of the FM acquisition.
Previous wording
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 $76,000, or 25%, and $189,000, or 29%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025, due to the prior year periods experiencing stronger estate fee revenue.
Current wording
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 increased $46,000, or 16%, and decreased $143,000, or 15%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025, both the increase and the decrease for the respective periods being attributed to fluctuations in estate fee revenue.
Previous wording
AUM, stated at market value, totaled $8.84 billion at June 30, 2026 compared with $7.64 billion at December 31, 2025 and $7.19 billion at June 30, 2025. The increase in AUM between June 30, 2025 and June 30, 2026 was attributed largely to the impact of the FM acquisition, but was also driven by appreciation within the equity and fixed income markets in addition to organic new business development over the past 12 months. AUM attributed to FM totaled $890 million as of June 30, 2026.
Current wording
AUM, stated at market value, totaled $8.95 billion at September 30, 2026 compared with $7.64 billion at December 31, 2025 and $7.48 billion at September 30, 2025. The increase in AUM between September 30, 2025 and September 30, 2026 was attributed largely to the impact of the FM acquisition, but was also driven by appreciation within the equity and fixed income markets in addition to organic new business development over the past 12 months. AUM totaling approximately $825 million were added as a result of the FM acquisition on May 1, 2026.
Previous wording
AUM (not included on balance sheet) increased from $7.64 billion at December 31, 2025 to $8.84 billion at June 30, 2026 as follows:
Current wording
AUM (not included on balance sheet) increased from $7.64 billion at December 31, 2025 to $8.95 billion at September 30, 2026 as follows:
Previous wording
(1) Non-managed assets represent those for which the WM&T department does not hold investment discretion.
Current wording
(1)Non-managed assets represent those for which the WM&T department does not hold investment discretion.
Previous wording
Deposit service charges, which consist of non-sufficient funds charges and to a lesser extent, other activity based charges, increased $299,000, or 14%, and $376,000, or 9%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025, driven by both acquisition-related activity and organic growth. However, 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 will be implementing compliance-related changes associated with regulatory deposit settlement requirements during the third quarter of 2026, which are consistent with changing industry practices and will negatively impact this revenue stream.
Current wording
Deposit service charges, which consist of non-sufficient funds charges and to a lesser extent, other activity based charges, increased $274,000, or 12%, and $650,000, or 10%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025, driven by both acquisition-related activity and organic growth. However, Bancorp implemented compliance-related changes associated with regulatory deposit settlement requirements during the third quarter of 2026, which are consistent with changing industry practices. While these changes were expected to negatively impact this revenue stream, they were countered by the decision to increase the overdraft limit on deposit accounts. Bancorp remains cautious regarding the outlook for deposit service charge revenue, as regulation and industry practice continues to evolve.
Previous wording
Debit and credit card income consists of interchange revenue, ancillary fees and incentives received from card processors. Debit and credit card revenue increased $307,000, or 6%, and $437,000, or 5%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025, attributed to both acquisition-related activity and organic growth. Debit card income increased $374,000, or 11%, and $515,000, or 8%, and total credit card income decreased $67,000, or 4%, and $78,000, or 3%, for the three and six month periods ended June 30, 2026 compared the same periods of the prior year. 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. Further, Bancorp will be subject to regulatory limitations on interchange transaction fees for debit card transactions after total consolidated assets exceed $10 billion as of any given December 31, which will negatively impact this revenue stream. Such limitations begin on July 1 of the calendar year immediately following the year an institution crosses this threshold. Bancorp expects to officially cross the $10 billion threshold for regulatory purposes on December 31, 2027.
Current wording
Debit and credit card income consists of interchange revenue, ancillary fees and incentives received from card processors. Debit and credit card revenue increased $602,000, or 12%, and $1.0 million, or 7%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025, attributed to both acquisition-related activity and organic growth. Debit card income increased $626,000, or 19%, and $1.1 million, or 12%, and total credit card income decreased $24,000, or 1%, and $103,000, or 2%, for the three and nine month periods ended September 30, 2026 compared the same periods of the prior year. 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. Further, Bancorp will be subject to regulatory limitations on interchange transaction fees for debit card transactions after total consolidated assets exceed $10 billion as of any given December 31, which will negatively impact this revenue stream. Such limitations begin on July 1 of the calendar year immediately following the year an institution crosses this threshold. Bancorp expects to officially cross the $10 billion threshold for regulatory purposes on December 31, 2027.
Previous wording
Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. Treasury management fees increased $170,000, or 6%, and $485,000 or 9%, for the year ended June 30, 2026 as compared with the same periods of 2025, driven by broad fee increases implemented towards the end of the first quarter of 2025 in addition to organic growth and new product sales. While the FM acquisition had little impact on overall treasury management fee income for the three and six month periods ended June 30, 2026, the customer base added through the acquisition is expected to provide opportunities for future growth given Bancorp’s ability to offer these new customers a broader array of treasury services.
Current wording
Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. Treasury management fees increased $404,000, or 14%, and $889,000 or 10%, for the three and nine month periods ended September 30, 2026 as compared with the same periods of 2025, driven by broad fee increases implemented towards the end of the first quarter of 2025 in addition to organic growth and new product sales. While the FM acquisition had little impact on overall treasury management fee income for the three and nine month periods ended September 30, 2026, the customer base added through the acquisition is expected to provide ample opportunity for future growth given Bancorp’s ability to offer these new customers a broader array of treasury services.
Previous wording
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, VA, FHA and GNMA financing for purchases and refinances, as well as programs for first-time homebuyers. Interest rates on mortgage loans directly influence the volume of business transacted by the mortgage-banking department. Mortgage banking revenue decreased $81,000, or 7%, and $68,000, or 3%, for the three and six month periods ended June 30, 2026, as compared with the same periods of 2025. While overall volumes have remained steady, yields on mortgage loans sold in the secondary market have declined as a result of competitive pricing pressures, negatively impacting mortgage banking revenue. The FM acquisition had minimal impact on mortgage banking revenue for the three and six months ended June 30, 2026.
Current wording
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, VA, FHA and GNMA financing for purchases and refinances, as well as programs for first-time homebuyers. Interest rates on mortgage loans directly influence the volume of business transacted by the mortgage-banking department. Mortgage banking revenue decreased $376,000, or 30%, and $444,000, or 14%, for the three and nine month periods ended September 30, 2026, as compared with the same periods of 2025. While overall volumes have remained steady, yields on mortgage loans sold in the secondary market have declined as a result of competitive pricing pressures created by rising mortgage rates, negatively impacting mortgage banking revenue. The FM acquisition had minimal impact on mortgage banking revenue for the three and nine months ended September 30, 2026.
Previous wording
Net investment product sales commissions and fees are generated primarily on stock, bond and mutual fund sales, as well as wrap fees earned on brokerage accounts via an arrangement with a third party broker-dealer. Wrap fees represent charges for investment programs that bundle together a suite of services, such as brokerage, advisory, research and management and are based on a percentage of account assets. Bancorp deploys its financial advisors primarily through its branch network, while larger managed accounts are generally serviced by Bancorp’s WM&T group. Net investment product sales commissions and fees increased $94,000, or 10%, and $145,000, or 7%, for the three and six month periods ended June 30, 2026 compared to the same periods of 2025. The FM acquisition had minimal impact on this non-interest revenue stream.
Current wording
Net investment product sales commissions and fees are generated primarily on stock, bond and mutual fund sales, as well as wrap fees earned on brokerage accounts via an arrangement with a third party broker-dealer. Wrap fees represent charges for investment programs that bundle together a suite of services, such as brokerage, advisory, research and management and are based on a percentage of account assets. Bancorp deploys its financial advisors primarily through its branch network, while larger managed accounts are generally serviced by Bancorp’s WM&T group. Net investment product sales commissions and fees increased $104,000, or 9%, and $249,000, or 8%, for the three and nine month periods ended September 30, 2026 compared to the same periods of 2025, driven by a continued shift to more profitable wrap fee-based business and general market appreciation. The FM acquisition had minimal impact on this non-interest revenue stream.
Previous wording
BOLI assets represent the cash surrender value of life insurance policies on certain active and non-active employees who have provided consent for Bancorp to be the beneficiary for a portion of such policies. The related change in cash surrender value and any death benefits received under the policies are recorded as non-interest income and serves to offset the cost of various employee benefits. BOLI income increased $62,000, or 10%, and $72,000, or 6%, for the three and six month periods ended June 30, 2026 compared to the same periods of 2025, primarily as a result of adding BOLI assets totaling approximately $13 million as a result of the FM acquisition.
Current wording
BOLI assets represent the cash surrender value of life insurance policies on certain active and non-active employees who have provided consent for Bancorp to be the beneficiary for a portion of such policies. The related change in cash surrender value and any death benefits received under the policies are recorded as non-interest income and serves to offset the cost of various employee benefits. BOLI income increased $98,000, or 16%, and $170,000, or 9%, for the three and nine month periods ended September 30, 2026 compared to the same periods of 2025, primarily as a result of adding BOLI assets totaling approximately $13 million as a result of the FM acquisition.
Previous wording
A loss of $34,000 on the sale of premises and equipment was recorded for the three months ended June 30, 2026 while a gain of $445,000 was recorded for the six months ended June 30, 2026. Activity for the first half of 2026 consisted primarily of the sale of a former branch location during the first quarter of 2026, which was only partially offset by a loss recorded during the second quarter related to the disposal of miscellaneous equipment. A gain of $74,000 was recorded for the three and six month periods ended June 30, 2025 as a result of the sale of a property owned through a prior acquisition that had been held for sale.
Current wording
While no gain/loss on the sale of premises and equipment was recorded for the three months ended September 30, 2026, a gain of $445,000 was recorded for the nine months ended September 30, 2026, which consisted primarily of the sale of a former branch location during the first quarter of 2026, which was only partially offset by a loss recorded during the second quarter related to the disposal of miscellaneous equipment. No such activity was recorded during the three months ended September 30, 2025, however, a gain of $74,000 was recorded for the nine month period ended September 30, 2025 as a result of the sale of a property owned through a prior acquisition that had been held for sale.
Showing the first 40 of 94 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Current report — wording carried from elsewhere
2025, declining 20 bps to 1.84%. However, despite the decreases noted above, Bancorp remains cautious regarding deposit costs and anticipates higher funding costs going forward due to pricing pressure/competition and potential changes in the overall deposit mix.