Stock Yards Bancorp, Inc.
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
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.
Jun 30, 2025 · Filed Aug 5, 2025
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 2025-03-31; filed 2025-05-06.
0001437749-25-014698
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001437749-25-024786
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 195 previous paragraphs and 209 current paragraphs.
117 unchanged; 72 reworded; 15 added; 6 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 84 previous and 111 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 (15)
Current report
Net interest income (FTE) increased $11.5 million, or 18%, for the three months ended June 30, 2025 compared to the same period of 2024, as the impact of significant loan growth on interest income far surpassed the increase in interest expense tied to interest bearing deposit growth.
Current report
Total interest expense increased $3.2 million, or 8%, for the three months ended June 30, 2025 compared to the same period of 2024, driven almost entirely by increased time deposit expense associated with successful CD promotion, which was only partially offset by a decline in interest expense on FHLB advances.
Current report
Net Interest Income (FTE)–** Six months ended June 30, 2025 compared to June 30, 2024:**
Current report
Net interest spread (FTE) and NIM (FTE) were 2.85% and 3.50%, for the six months ended June 30, 2025, compared to 2.50% and 3.23% for the same period in 2024, respectively.
Current report
Net interest income (FTE) increased $21.9 million, or 18%, for the six months ended June 30, 2025 compared to the same period of 2024, as the impact of significant loan growth on interest income far surpassed the increase in interest expense tied to interest bearing deposit growth.
Current report
Total interest income (FTE) increased $29.3 million, or 15%, to $226 million for the six months ended June 30, 2025, as compared to the same period of 2024.
Current report
Total average interest bearing liabilities increased $703 million, or 13%, to $6.27 billion for the six month period ended June 30, 2025 compared with the same period in 2024.
Current report
Total interest expense increased $7.4 million, or 10%, for the six months ended June 30, 2025 compared to the same period of 2024, driven entirely by increased time deposit expense associated with successful CD promotion, which was only partially offset by smaller declines in every other interest-bearing liability category. Despite the increased expense, the cost of interest-bearing deposits was flat at 2.55% and total interest-bearing liability cost declined 6 bps 2.64%, which was attributed to the impact of the FRB’s interest rate reductions enacted in the latter part of 2024.
Current report
Average Balance Sheets and Interest Rates (FTE)–** Six-Month Comparison**
Current report
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.
Current report
A gain on the sale of premises and equipment totaling $74,000 was recorded for the three and six month periods ended June 30, 2025, compared to a gain of $20,000 for the three and six month periods of the prior year. The gain recorded for the current year stems mainly from the sale of a property owned through a prior acquisition that had been held for sale.
Current report
Other non-interest income increased $677,000, or 135%, and $561,000, or 49%, for the three and six month periods ended June 30, 2025 compared with the same periods of 2024. The increases for the current year stemmed largely from recording $577,000 of swap fees during the second quarter of this year, and to a lesser extent, appreciation within insurance policies held outside of Bancorp’s traditional BOLI policies.
Current report
Other non-interest expenses increased $210,000, or 9%, and $53,000, or 1%, for the three and six month periods ended June 30, 2025, as compared to the same periods of 2024. The increases over the prior year stemmed mainly from higher credit card rewards, increases in premiums for insurance policies related to general bank liabilities and fluctuations in the level of check and card losses.
Current report
On July 4, 2025, President Trump signed into law the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14” and commonly referred to as the One Big Beautiful Bill (“the Act”). Bancorp is currently evaluating income tax implications of the Act, but does not expect the Act to have a material impact on the financial statements.
Current report
SSUAR declined $36 million, or 22%, between December 31, 2024 and June 30, 2025, driven in part by normal fluctuation as well as a small number of clients within the product switching into other deposit offerings.
Removed paragraphs (6)
Previous report
Net interest income (FTE) increased $10.5 million, or 17%, for the three months ended March 31, 2025 compared to the same period of 2024, as significant average loan growth and the benefit of higher rates upon average interest earning assets far surpassed increased interest expense tied to interest bearing liability growth.
Previous report
Total interest expense increased $4.1 million, or 11%, for the three months ended March 31, 2025 compared to the same period of 2024, driven by average interest bearing deposit and FHLB advance growth. Despite this growth, the cost of interest bearing liabilities decreased 2 bps to 2.63% for the three months ended March 31, 2025 compared to the same period of 2024, driven by the interest rate cuts enacted by the Fed in the latter part of 2024.
Previous report
Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. This category continues to stand out as a consistent, growing source of revenue for Bancorp and increased $48,000, or 2%, for the three month period ended March 31, 2025, as compared with the same period of 2024, organic growth, increased transaction volume and new product sales. Bancorp remains optimistic about the growth prospects for this revenue stream as the customer base continues to grow and the suite of services offered within Bancorp’s treasury management platform expands.
Previous report
Other non-interest income decreased $116,000, or 18%, for the three months ended March 31, 2025 compared with the same period of 2024, which was attributed mainly to a decline in revenue generated by insurance policies outside of traditional BOLI policies as a result of the general equity and fixed income market depreciation experienced during the first quarter.
Previous report
Other non-interest expenses decreased $157,000, or 6%, for the three month period ended March 31, 2025, as compared to the same period of 2024, driven by significant declines in fraudulent check and card losses in addition to lower collections-related expenses.
Previous report
SSUAR declined $12 million, or 7%, between December 31, 2024 and March 31, 2025, as the result of normal fluctuations.
Reworded paragraphs (72)
Previous wording
At March 31, 2025, Bancorp’s loan portfolio consisted of approximately 66% fixed and 34% 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 March 31, 2025, approximately 59% and 41% of Bancorp’s variable rate loan portfolio was indexed to Prime and SOFR, respectively.
Current wording
At June 30, 2025, 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, 2025, approximately 56% and 44% of Bancorp’s variable rate loan portfolio was indexed to Prime and SOFR, respectively.
Previous wording
Prime rate, the five year treasury note rate and one month term SOFR are included in the preceding tables to provide a general indication of the interest rate environment in which Bancorp has operated during the past 12 months. The FRB increased the FFTR a total of 100 bps in 2023 via four separate 25 bps rate hikes, two of which occurred during the first quarter of 2023. These increases took the FFTR to a range of 5.25% - 5.50%, and Prime to 8.50%, in July of 2023. Interest rates remained at these levels until September 2024, when the FRB implemented its first rate reduction in over four years, beginning its attempt to avoid recession and pilot a “soft landing,” with three separate decreases of the FFTR over the final four months of 2024, ultimately lowering the FFTR a total of 100 bps to a range of 4.25% - 4.50%, and Prime to 7.50%, as of December 31, 2024. The FFTR and Prime rate remained at these levels through the first quarter of 2025.
Current wording
Prime rate, the five year treasury note rate and one month term SOFR are included in the preceding tables to provide a general indication of the interest rate environment in which Bancorp has operated during the past 12 months. The FRB increased the FFTR a total of 100 bps in 2023 via four separate 25 bps rate hikes, two of which occurred during the first quarter of 2023. These increases took the FFTR to a range of 5.25% - 5.50%, and Prime to 8.50%, in July of 2023. Interest rates remained at these levels until September 2024, when the FRB implemented its first rate reduction in over four years, beginning its attempt to avoid recession and pilot a “soft landing,” with three separate decreases of the FFTR over the final four months of 2024, ultimately lowering the FFTR a total of 100 bps to a range of 4.25% - 4.50%, and Prime to 7.50%, as of December 31, 2024. The FFTR and Prime rate remained at these levels through the June 30, 2025. While the FRB decided against further rate reductions during the first six months of 2025, recent projections indicate the likelihood for some level of rate reduction over the second half of 2025.
Previous wording
While the FRB decided against further rate reductions during the first quarter of 2025, recent projections indicate the likelihood for rate reductions over the rest of 2025. Bancorp expects the potential for pricing pressure/competition for both loans and deposits to increase in the coming quarters.
Current wording
Bancorp expects the potential for pricing pressure/competition for both loans and deposits to increase in the coming quarters.
Previous wording
Net interest spread (FTE) and NIM (FTE) were 2.83% and 3.46%, for the three months ended March 31, 2025, compared to 2.49% and 3.20% for the same period in 2024, respectively. NIM during the three months ended March 31, 2025 was significantly impacted by the following:
Current wording
Net interest spread (FTE) and NIM (FTE) were 2.87% and 3.53%, for the three months ended June 30, 2025, compared to 2.52% and 3.26% for the same period in 2024, respectively.
Previous wording
Total interest income (FTE) increased $14.6 million, or 15%, to $111 million for the three months ended March 31, 2025, as compared to the same period of 2024.
Current wording
Total interest income (FTE) increased $14.7 million, or 15%, to $115.1 million for the three months ended June 30, 2025, as compared to the same period of 2024.
Previous wording
Total average interest bearing liabilities increased $719 million, or 13%, to $6.25 billion for the three month period ended March 31, 2025 compared with the same period in 2024.
Current wording
Total average interest bearing liabilities increased $688 million, or 12%, to $6.29 billion for the three month period ended June 30, 2025 compared with the same period in 2024.
Previous wording
Total average interest earning assets increased $703 million, or 9%, for the three months ended March 31, 2025, as compared to the same period of 2024, attributed to substantial average loan growth that was partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. However, as a result of a higher interest rate environment, the average rate earned on total average interest earning assets climbed 32 bps to 5.46%.
Current wording
Total average interest earning assets increased $704 million, or 9%, for the six months ended June 30, 2025, as compared to the same period of 2024, attributed to substantial average loan growth that was partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. The average rate earned on total average interest earning assets climbed 29 bps to 5.49%.
Previous wording
Bancorp’s loan portfolio is currently composed of approximately 66% fixed and 34% 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 59%) or SOFR (approximately 41%).
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 56%) or SOFR (approximately 44%).
Previous wording
The ACL for loans totaled $89 million as of March 31, 2025 compared to $81 million at March 31, 2024, representing an ACL to total loans ratio of 1.34% and 1.38% for the respective periods.
Current wording
The ACL for loans totaled $91 million as of June 30, 2025 compared to $82 million at June 30, 2024, representing an ACL to total loans ratio of 1.32% and 1.35% for the respective periods.
Previous wording
Provision expense on loans of $900,000 was recorded for the three month period ended March 31, 2025. Expense for the first quarter was attributed mainly to strong loan growth, increased specific reserves, and to a lesser extent, slight deterioration within the unemployment forecast, which were partially offset by annual CECL model updates. Additionally, net recoveries of $971,000 were recorded for the three month period ended March 31, 2025, serving to increase the ACL for loans.
Current 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 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.
Previous wording
Provision expense on loans of $1.2 million was recorded for the three month period ended March 31, 2024, consistent with modest loan growth, annual CECL model updates, a slight improvement in the unemployment forecast and a reduction in specific reserves. Net recoveries of $348,000 were recorded for the three months ended March 31, 2024.
Current wording
Provision expense on loans of $1.1 million and $2.3 million was recorded for the three and six month periods ended June 30, 2024. Expense for the prior year was driven by strong loan growth, slight deterioration in the unemployment forecast and offset by CECL model methodology updates. Net recoveries of $183,000 and $531,000 were recorded for the three and six month periods ended June 30, 2024.
Previous wording
While separate from the ACL for loans and recorded in other liabilities on the consolidated balance sheets, the ACL for off balance sheet credit exposures remained unchanged between December 31, 2024 and March 31, 2025. No provision for credit loss expense for off balance sheet credit exposures was recorded for the three months ended March 31, 2025, as overall utilization was flat during the first quarter. The ACL for off balance sheet credit exposures totaled $6.8 million as of March 31, 2025 and December 31, 2024.
Current wording
While separate from the ACL for loans and recorded in other liabilities on the consolidated balance sheets, the ACL for off balance sheet credit exposures was reduced between December 31, 2024 and June 30, 2025. 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 wording
Provision for credit loss expense for off balance sheet credit exposures of $250,000 was recorded for the three month period ended March 31, 2024. The ACL for off balance sheet credit exposures was $6.1 million as of March 31, 2024.
Current wording
Provision for credit loss expense for off balance sheet credit exposures of $225,000 and $475,000 was recorded for the three and six month periods ended June 30, 2024. The ACL for off balance sheet credit exposures was $6.3 million as of June 30, 2024.
Previous wording
Total non-interest income decreased $275,000, or 1%, for the three month period ended March 31, 2025 compared to the same period of 2024. Non-interest income comprised 24.6% and 27.9% of total revenues, defined as net interest income and non-interest income, for the three month periods ended March 31, 2025 and 2024, respectively, the decrease from prior year being attributed to the sharp rise in net interest income compared to prior year. WM&T services comprised 46.3% of total non-interest income for the three periods ended both March 31, 2025 and 2024, respectively.
Current wording
Total non-interest income increased $693,000, or 3%, and $418,000, or 1%, for the three and six month periods ended June 30, 2025, respectively, compared to the same periods of 2024. Non-interest income comprised 24.9% and 24.7% of total revenues, defined as net interest income and non-interest income, for the three and six month periods ended June 30, 2025 compared to 27.6% and 27.8% for the same periods of 2024, respectively. The decreases from prior year were attributed to the sharp rise in net interest income compared to prior year. WM&T services comprised 43.0% and 44.6% of total non-interest income for the three and six month periods ended June 30, 2025 compared to 45.6% and 46.0% for the same periods of the prior year. The decreases from the prior year were attributed to a combination of growth in other non-interest income streams as well as period over period declines in WM&T revenue.
Previous wording
The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue decreased $124,000, or 1%, for the three month period ended March 31, 2025, as compared with the same period of 2024, attributed largely to the significant market depreciation experienced during the first quarter, which more than offset an increase in net new business for the period.
Current wording
The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue decreased $312,000, or 3%, and $436,000, or 2%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024, attributed mainly to the residual impact of business lost in prior periods.
Previous wording
Net new business refers to revenue generated from newly acquired customers, excluding revenue from upselling or cross-selling to existing active customers. It plays a crucial role in expanding Bancorp’s financial base and ensuring long-term sustainability and success. In the latter part of 2024, the WM&T department experienced negative net new business for the first time in several years, driven in large 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 during the first quarter.
Current wording
Net new business refers to revenue generated from newly acquired customers, excluding revenue from upselling or cross-selling to existing active customers. It plays a crucial role in expanding Bancorp’s financial base and ensuring long-term sustainability and success. In the latter part of 2024, the WM&T department experienced negative net new business for the first time in several years, driven in large 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.
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, decreased $170,000, or 2%, for the three and month period ended March 31, 2025, as compared with the same period of 2024. The decrease was driven largely by the previously mentioned market depreciation.
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, 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.
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 increased $45,000 for the three month period ended March 31, 2025, as compared with the same period of 2024, driven by increased estate fee income.
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 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.
Previous wording
AUM, stated at market value, totaled $6.80 billion at March 31, 2025 compared with $7.07 billion at December 31, 2024 and $7.50 billion at March 31, 2024. The decrease in AUM between March 31, 2024 and March 31, 2025 is attributed mainly to the recent market downturn and to and decline in net new business experienced over the past year.
Current wording
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.
Previous wording
AUM (not included on balance sheet) decreased from $7.07 billion at December 31, 2024 to $6.80 billion at March 31, 2025 as follows:
Current wording
AUM (not included on balance sheet) increased from $7.07 billion at December 31, 2024 to $7.19 billion at June 30, 2025 as follows:
Previous wording
Deposit service charges, which consist of non-sufficient funds charges and to a lesser extent, other activity based charges, decreased $57,000, or 3%, for the three month period ended March 31, 2025, as compared with the same period 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.
Current wording
Deposit service charges, which consist of non-sufficient funds charges and to a lesser extent, other activity based charges, decreased $111,000, or 5%, and $168,000, or 4%, for the three and six month periods ended June 30, 2025, 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.
Previous wording
Debit and credit card income consists of interchange revenue, ancillary fees and incentives received from card processors. Debit and credit card revenue decreased $174,000, or 4%, for the three month period ended March 31, 2025, as compared with the same period of 2024, attributed at least in part to severe weather during the first quarter within Bancorp’s markets. Total debit card income decreased $118,000, or 4%, and total credit card income decreased $56,000, or 4%, for the three month period ended March 31, 2025, compared the same period 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.
Current wording
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.
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 $31,000, or 3%, for the three month period ended March 31, 2025, as compared with the same period of 2024, driven by slower origination volumes.
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 increased $77,000, or 8%, and $46,000, or 2%, for the three and six month periods ended June 30, 2025, as compared with the same periods of 2024, driven by higher origination volumes.
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 $145,000, or 17%, for the three month period ended March 31, 2025 compared to the same period of 2024, attributed to the addition of a new broker and a general shift towards more wrap fee-based business.
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 $180,000, or 23%, and $325,000, or 20%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024, attributed to the addition of a new broker and a general shift towards more profitable wrap fee-based business.
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 $34,000, or 6%, for the three month period ending March 31, 2025 compared to the same period of the prior year, which was attributed to generally higher yields within the policy plans compared to the prior year.
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 $34,000, or 6%, and $68,000, or 6%, for the three and six month periods ending June 30, 2025 compared to the same periods of the prior year, which was attributed to generally higher yields within the policy plans compared to the prior year.
Previous wording
Total non-interest expenses increased $2.1 million, or 4%, for the three month period ended March 31, 2025 compared to the same period of 2024. Compensation and employee benefits comprised 62.2% of Bancorp’s total non-interest expenses for the three period ended March 31, 2025, compared to 61.5% for the same period of 2024.
Current wording
Total non-interest expenses increased $3.6 million, or 7%, and $5.7 million, or 6%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024. Compensation and employee benefits comprised 61.9% and 62.0% of Bancorp’s total non-interest expenses for the three and six month periods ended June 30, 2025, compared to 60.5% and 61.0% for the same periods of 2024.
Previous wording
Compensation, which includes salaries, incentives, bonuses and stock based compensation, increased $1.7 million, or 7%, for the three month period ended March 31, 2025, as compared with the same period of 2024, the increase attributed primarily to annual merit-based salary increases and growth in full time equivalent employees. Net full time equivalent employees totaled 1,089 at March 31, 2025 compared to 1,080 at December 31, 2024 and 1,062 at March 31, 2024.
Current wording
Compensation, which includes salaries, incentives, bonuses and stock based compensation, increased $2.6 million, or 11%, and $4.4 million, or 9%, for the three and six month periods ended June 30, 2025, as compared with 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.
Previous wording
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 decreased $91,000, or 2%, for the three month period ended March 31, 2025, as compared with the same period of 2024, driven mainly by lower health insurance claims activity.
Current wording
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.
Previous wording
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 $453,000, or 12%, for the three month period ended March 31, 2025, as compared with the same period of 2024, driven by elevated snow removal activity stemming from severe winter weather in addition to higher rent and depreciation expense. At March 31, 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.
Current wording
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.
Previous wording
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 $241,000, or 5%, for the three month period ended March 31, 2025 compared to the same period of 2024, due to lower depreciation levels, temporarily lower technology spending and various upgrade expenses incurred in the prior year.
Current wording
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 planned technology investments get underway.
Previous wording
Bancorp outsources processing for debit and commercial credit card operations, which generate significant revenue for the Company. These expenses typically fluctuate consistent with transaction volumes. Debit and credit card processing expense increased $73,000, or 4%, for the three month period ending March 31, 2025 compared to the same period of last year, driven by higher processing fees.
Current wording
Bancorp outsources processing for debit and commercial credit card operations, which generate significant revenue for the Company. The related expenses typically fluctuate consistent with transaction volumes. Debit and credit card processing expense increased $97,000, or 5%, and $170,000, or 5%, for the three and six month periods ending June 30, 2025 compared to the same periods of the prior year, driven by higher processing fees, including increased fraud-mitigation expenses.
Previous wording
Marketing and business development expenses include all costs associated with promoting Bancorp, including community support, retaining customers and acquiring new business. Marketing and business development expenses increased $440,000, or 41%, for the three month period ending March 31, 2025, as compared to the same period of 2024, which was the result of higher advertising expense tied to deposit product promotions.
Current wording
Marketing and business development expenses include all costs associated with promoting Bancorp, including community support, retaining customers and acquiring new business. Marketing and business development expenses increased $355,000, or 22%, and $795,000, or 30%, for the three and six month periods ending June 30, 2025, as compared to the same periods of 2024, which was primarily the result of higher advertising expense tied to deposit product promotions in addition to increased customer entertainment and various corporate sponsorships.
Previous wording
Postage, printing and supplies expense increased $43,000, or 5%, for the three month period ended March 31, 2025 compared to the same period of 2024, consistent with the previously mentioned deposit product promotions.
Current wording
Postage, printing and supplies expense increased $24,000, or 3% and $67,000, or 4%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024, consistent with the previously mentioned deposit product promotions.
Previous wording
Legal and professional fees decreased $208,000, or 19%, for the three month period ended March 31, 2025 compared to the same period of the prior year, driven primarily by lower compliance-related consulting expense associated with Bancorp approaching $10 billion in total assets in addition to generally lower legal expenses.
Current wording
Legal and professional fees decreased $97,000, or 8%, and $305,000, or 13%, for the three and six month periods ended June 30, 2025 compared to the same periods of the prior year, driven primarily by lower compliance-related consulting expense associated with Bancorp approaching $10 billion in total assets in addition to generally lower legal expenses.
Previous wording
FDIC insurance expense increased $111,000, or 10%, for the three month period ended March 31, 2025, as compared to the same period of 2024, consistent with Bancorp’s growth in addition to changes in loan mix, as higher assessments are levied on C&D lending concentrations, a segment which grew as a percentage of total loans.
Current wording
FDIC insurance expense increased $99,000, or 9%, and $210,000, or 9%, for the three and six month periods ended June 30, 2025, as compared to the same periods of 2024, consistent with Bancorp’s growth in addition to changes in loan mix, as higher assessments are levied on C&D lending concentrations, a segment which grew as a percentage of total loans.
Previous wording
Capital and deposit based taxes, which consist primarily of capital-based local income taxes and franchise taxes, increased $70,000, or 11%, for the three month period ended March 31, 2025 compared to the same period of 2024. Bancorp’s capital and deposit based tax expense is based on deposits held within various local taxing districts, as well as gross revenues generated within/appropriated to the state of Ohio, which is the only state Bancorp operates in with a capital-based deposit tax.
Current wording
Capital and deposit based taxes, which consist primarily of capital-based local income taxes and franchise taxes, increased $65,000, or 10%, and $135,000, or 10%, for the three and six month periods ended June 30, 2025 compared to the same periods of 2024. Bancorp’s capital and deposit based tax expense is based on deposits held within various local taxing districts, as well as gross revenues generated within/appropriated to the state of Ohio, which is the only state Bancorp operates in with a capital-based deposit tax.
Previous wording
Intangible amortization expense consists of amortization associated with the CDI of acquired deposit portfolios, as well as an intangible related to customer list of the WM&T business line added through a past acquisition. The intangibles are amortized on an accelerated basis over a period of approximately ten years. Intangible amortization expense decreased $138,000, or 13%, for the three month period ended March 31, 2025 compared to the same period of the prior year, which is attributed to the accelerated depreciation method for which intangible assets are amortized.
Current wording
Intangible amortization expense consists of amortization associated with the CDI of acquired deposit portfolios, as well as an intangible related to customer list of the WM&T business line added through a past acquisition. The intangibles are amortized on an accelerated basis over a period of approximately ten years. Intangible amortization expense decreased $136,000, or 13%, and $274,000, or 13%, for the three and six month periods ended June 30, 2025 compared to the same period of the prior year, which is attributed to the accelerated depreciation method for which intangible assets are amortized.
Previous wording
Total assets increased $134 million, or 2%, to $9.00 billion at March 31, 2025 from $8.86 billion at December 31, 2024. The increase for the first quarter of 2025 was attributed to solid loan growth of $126 million, or 2%, and a $113 million, or 39%, increase in cash and cash equivalents, which was partially offset by a decline of $114 million, or 8%, in the investment securities portfolio attributed mainly to scheduled maturity activity.
Current wording
Total assets increased $346 million, or 4%, to $9.21 billion at June 30, 2025 from $8.86 billion at December 31, 2024. The increase for the first six months of 2025 was attributed to strong loan growth of $330 million, or 5%, and a $160 million, or 55%, increase in cash and cash equivalents, which was partially offset by a decline of $138 million, or 10%, in the investment securities portfolio attributed mainly to scheduled maturity activity.
Previous wording
Total liabilities increased $99 million, or 1%, to $8.02 billion at March 31, 2025 from $7.92 billion at December 31, 2024, with total deposits growing $128 million, or 2%, driven mainly by successful deposit promotions, and offset partially by smaller declines in SSURA and other liabilities.
Current wording
Total liabilities increased $280 million, or 4%, to $8.20 billion at June 30, 2025 from $7.92 billion at December 31, 2024, with total deposits growth of $340 million, or 5%, driven mainly by successful deposit promotions offset partially by smaller declines in SSURA and other liabilities.
Previous wording
Stockholders’ equity increased $35 million, or 4%, to $975 million at March 31, 2025 from $940 million at December 31, 2024, as net income of $33.3 million and a $11.3 million improvement in AOCI was offset by $9.1 million of cash dividends declared during the first quarter of 2025. The improvement in AOCI was associated with changes in the interest rate environment and the corresponding impact on the valuation of the AFS debt securities portfolio and cash flow hedging derivatives.
Current wording
Stockholders’ equity increased $65 million, or 7%, to $1.01 billion at June 30, 2025 from $940 million at December 31, 2024, as net income of $67.3 million and a $15.8 million improvement in AOCI was offset by $18.3 million of cash dividends declared during the first six months of 2025. The improvement in AOCI was associated with changes in the interest rate environment and the corresponding impact on the valuation of the AFS debt securities portfolio and cash flow hedging derivatives.
Showing the first 40 of 72 pairs. Open the source sections for the rest.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
The following table presents an overview of Bancorp’s financial performance for the six months ended June 30, 2025 and 2024:
Current report — wording carried from elsewhere
Additional discussion follows under the section titled “Results of Operations.”
Current report — wording carried from elsewhere
General highlights for the six months ended June 30, 2025 compared to June 30, 2024:
Current report — wording carried from elsewhere
*See table titled, "Average Balance Sheets and Interest Rates (FTE)" for detail of Net interest income (FTE).
Current report — wording carried from elsewhere
Total average interest earning assets increased $704 million, or 9%, for the three months ended June 30, 2025, as compared to the same period of 2024, attributed to substantial average loan growth that was partially offset by a decline in average investment securities driven by scheduled maturities and normal amortization. Further, the average rate earned on total average interest earning assets climbed 25 bps to 5.52%, as the previously mentioned loan growth, coupled with the repricing of matured/renewed loans and investment securities at higher rates, lifted yields compared to the prior period.