Stock Yards Bancorp, Inc.
For the period ended Sep 30, 2025. Filed Nov 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.
Sep 30, 2025 · Filed Nov 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 2025-06-30; filed 2025-08-05.
0001437749-25-024786
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001437749-25-033206
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 209 previous paragraphs and 211 current paragraphs.
113 unchanged; 91 reworded; 7 added; 5 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 111 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 (7)
Current report
Net Interest Income (FTE)–** Nine months ended September 30, 2025 compared to September 30, 2024:**
Current report
Average Balance Sheets and Interest Rates (FTE)–** Nine-Month Comparison**
Current report
Other non-interest income decreased $364,000, or 39%, and increased $197,000, or 9%, for the three and nine month periods ended September 30, 2025 compared with the same periods of 2024. The variances for both periods are attributed mainly to the timing and size of swap fee revenue, which is non-recurring in nature and can be relatively volatile.
Current report
Other assets decreased $7 million, or 2%, to $302 million between December 31, 2024 and September 30, 2025. Other liabilities decreased $45 million, or 17%, to $214 million over the same period. The decrease in other assets was associated mainly with declines in DTAs and interest rate swap assets driven by changes in the interest rate environment generally, which were only partially offset by additional tax credit investments. The decrease in other liabilities was driven largely by a reduction in accrued tax credit investment contributions, which are made according to scheduled contractual commitments related to the respective investments.
Current report
During the current year, Bancorp implemented ICS (insured cash sweep), a new deposit product offering for larger depositors that require collateralization. This product was added to the portfolio of offerings to allow flexibility for both liquidity needs and strategic balance sheet management, as we continue to grow towards $10 billion in total assets. ICS allows us to provide the necessary collateralization for public funds clients and other larger depositors in the form of a reciprocal network of other banks, which effectively spreads large deposit balances amongst enough participating banks to achieve FDIC coverage for each client. In turn, we receive deposits from other banks, helping them to achieve a similar goal. As collateral is provided to our clients through this network, the investments securities we would have otherwise had to pledge as collateral are now unrestricted from a liquidity perspective.
Current report
Additionally, the ICS network provides a one-way sell service, which will enable us to move large deposit balances off balance sheet temporarily by sending an equivalent amount of cash to the same network of participating banks. In this scenario, we do not receive any deposits, effectively helping us lower total assets (and total liabilities by lowering total deposits) to remain under the $10 billion threshold. Such activity occurs overnight and the deposits (and cash) are brought back on balance sheet the next day.
Current report
While both the reciprocal and one-way sell services offered by the ICS network may be utilized by Bancorp, the deposit customers of the Bank remain our customers. ICS effectively sweeps balances back and forth, so customers are minimally affected by the operational requirements and are provided the security of FDIC coverage.
Removed paragraphs (5)
Previous report
Item 2.** ** Management**’s Discussion and Analysis of Financial Condition and Results of Operations
Previous report
Net Interest Income (FTE)–** Six months ended June 30, 2025 compared to June 30, 2024:**
Previous report
Average Balance Sheets and Interest Rates (FTE)–** Six-Month Comparison**
Previous 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.
Previous report
Other assets decreased $2 million, or less than 1%, to $307 million between December 31, 2024 and June 30, 2025. Other liabilities decreased $24 million, or 9%, to $235 million over the same period. The increase in other assets stemmed mainly from appreciation within insurance policies held outside of Bancorp’s traditional BOLI. Further, an increase in tax credit investment assets and a decrease in interest rate swap derivative assets were largely offsetting. The decrease in other liabilities was driven largely by a reduction in various accrued liabilities, such as employee incentive compensation and tax credit investment contributions.
Reworded paragraphs (91)
Previous wording
The following table presents an overview of Bancorp’s financial performance for the six months ended June 30, 2025 and 2024:
Current wording
The following table presents an overview of Bancorp’s financial performance for the nine months ended September 30, 2025 and 2024:
Previous wording
General highlights for the six months ended June 30, 2025 compared to June 30, 2024:
Current wording
General highlights for the nine months ended September 30, 2025 compared to September 30, 2024:
Previous 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.
Current wording
At September 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 September 30, 2025, approximately 55% and 45% 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 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.
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 mid-September 2025, when the FRB reduced the FFTR 25 bps to 4.00% - 4.25%, ultimately taking Prime to 7.25%.
Previous wording
Bancorp expects the potential for pricing pressure/competition for both loans and deposits to increase in the coming quarters.
Current wording
Recent projections indicate the likelihood for additional rate reductions in the fourth quarter of 2025 and the first half of 2026. As a result, pricing pressure/competition for both loans and deposits could increase in the coming quarters.
Previous wording
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 wording
Net interest spread (FTE) and NIM (FTE) were 2.90% and 3.56%, for the three months ended September 30, 2025, compared to 2.57% and 3.33% for the same period in 2024, respectively.
Previous wording
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 wording
Net interest income (FTE) increased $12.1 million, or 19%, for the three months ended September 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.
Previous wording
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.
Current wording
Total average interest earning assets increased $802 million, or 10%, for the three months ended September 30, 2025, as compared to the same period of 2024, attributed to substantial average loan and interest-bearing cash balance 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 15 bps to 5.56%, as the previously mentioned loan growth, coupled with the repricing of matured/renewed loans at higher rates, lifted yields compared to the prior period.
Previous 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.
Current wording
Total interest income (FTE) increased $14.5 million, or 14%, to $120.3 million for the three months ended September 30, 2025, as compared to the same period of 2024.
Previous 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.
Current wording
Total average interest bearing liabilities increased $738 million, or 13%, to $6.44 billion for the three month period ended September 30, 2025 compared with the same period in 2024.
Previous wording
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 wording
Total interest expense increased $2.5 million, or 6%, for the three months ended September 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.
Previous 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.
Current wording
Net interest spread (FTE) and NIM (FTE) were 2.86% and 3.52%, for the nine months ended September 30, 2025, compared to 2.52% and 3.26% for the same period in 2024, respectively.
Previous wording
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 wording
Net interest income (FTE) increased $34.0 million, or 18%, for the nine months ended September 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.
Previous 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%.
Current wording
Total average interest earning assets increased $737 million, or 10%, for the nine months ended September 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 24 bps to 5.51%.
Previous wording
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 wording
Total interest income (FTE) increased $43.8 million, or 14%, to $347 million for the nine months ended September 30, 2025, as compared to the same period of 2024.
Previous wording
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 wording
Total average interest bearing liabilities increased $715 million, or 13%, to $6.33 billion for the nine month period ended September 30, 2025 compared with the same period in 2024.
Previous wording
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 wording
Total interest expense increased $9.9 million, or 9%, for the nine months ended September 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 smaller declines in virtually every other interest-bearing liability category. Despite the increased expense, the cost of interest-bearing deposits declined 3 bps to 2.56% and total interest-bearing liability cost declined 10 bps 2.65%, which was attributed to the impact of the FRB’s interest rate reductions enacted over the last 12 months.
Previous wording
Bancorp’s interest rate sensitivity analysis details that increases in interest rates of 100 and 200 bps would have a positive effect on net interest income, while decreases in interest rates of 100 and 200 bps would have a negative impact. These results depict an asset-sensitive interest rate risk profile. The increase in net interest income in the rising rate scenarios is primarily due to variable rate loans and short-term investments repricing more quickly than deposits and short-term borrowings. Net interest income decreases in the falling rate scenarios because rates on non-maturity deposits cannot be lowered sufficiently to offset the decline in interest income associated with assets that immediately reprice as rates fall.
Current wording
Bancorp’s interest rate sensitivity analysis indicates that increases in interest rates of 100 and 200 bps would have a positive effect on net interest income, while decreases in interest rates of 100 and 200 bps would have a negative impact. These results depict an asset-sensitive interest rate risk profile. The increase in net interest income in the rising rate scenarios is primarily due to variable rate loans and short-term investments repricing more quickly than deposits and short-term borrowings. Net interest income decreases in the falling rate scenarios because rates on non-maturity deposits cannot be lowered sufficiently to offset the decline in interest income associated with assets that immediately reprice as rates fall.
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 56%) or SOFR (approximately 44%).
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 55%) or SOFR (approximately 45%).
Previous wording
In addition, Bancorp periodically uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps. These interest rate swaps are designated as cash flow hedges as described in the Footnote titled “Derivative Financial Instruments.” For these derivatives, the effective portion of gains or losses is reported as a component of OCI and is subsequently reclassified into earnings as an adjustment to interest expense in periods in which the hedged forecasted transaction affects earnings.
Current wording
In addition, Bancorp periodically uses derivative financial instruments as part of its interest rate risk management, including interest rate swaps. These interest rate swaps are designated as cash flow hedges as described in the Footnote titled “Derivative Financial Instruments.” For these derivatives, the effective portion of gains or losses is reported as a component of OCI and is subsequently reclassified into earnings as an adjustment to interest expense in periods in which the hedged transaction affects earnings.
Previous 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.
Current wording
The ACL for loans totaled $92 million as of September 30, 2025 compared to $85 million at September 30, 2024, representing an ACL to total loans ratio of 1.33% and 1.36% for the respective periods.
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 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 were consistent with strong loan growth, changes within the FRB’s national 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
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.
Current wording
Provision expense on loans of $4.3 million and $6.6 million was recorded for the three and nine month periods ended September 30, 2024. Expense for the prior year was driven mainly to strong loan growth and deterioration in the FRB’s national unemployment forecast. Net charge offs of $1.1 million and $606,000 were recorded for the three and nine month periods ended September 30, 2024, serving to decrease the ACL for loans.
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 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.
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 also increased between December 31, 2024 and September 30, 2025. Provision expense of $425,000 and $350,000 for off balance sheet credit exposures was recorded for the three and nine month periods ended September 30, 2025, respectively, driven by increased availability associated with new line production, particularly within the C&D segment. The lower expense recorded for the nine month period stemmed from recording a credit to provision expense for off balance sheet credit exposures during the first quarter, consistent with improved utilization and thus reduced availability for that period. The ACL for off balance sheet exposures totaled $7.1 million as of September 30, 2025.
Previous 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.
Current wording
While no provision for credit loss expense for off balance sheet credit exposures was recorded for the three month period ended September 30, 2024, expense of $475,000 was recorded for the nine month period ended September 30, 2024, driven by increased availability in the C&D portfolio. The ACL for off balance sheet credit exposures was $6.3 million as of September 30, 2024.
Previous 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.
Current wording
Total non-interest income decreased $321,000, or 1%, and increased $97,000, or less 1%, for the three and nine month periods ended September 30, 2025, respectively, compared to the same periods of 2024. Non-interest income comprised 24.1% and 24.5% of total revenues, defined as net interest income and non-interest income, for the three and nine month periods ended September 30, 2025 compared to 27.6% and 27.7% 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 43.7% and 44.3% of total non-interest income for the three and nine month periods ended September 30, 2025 compared to 44.1% and 45.3% for the same periods of the prior year. The decreases from the prior year were attributed to period over period declines in WM&T revenue related to the impact of business lost over the past 12 months.
Previous 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.
Current wording
The magnitude of WM&T revenue distinguishes Bancorp from other community banks of similar asset size. WM&T revenue decreased $227,000, or 2%, and $663,000, or 2%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, attributed to the residual impact of business lost in prior periods in addition to lower estate fee income, the latter of which is non-recurring in nature.
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 (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.
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 by employee attrition associated with aggressive recruiting and market competition for clients. Positions impacted by attrition have since been filled and Bancorp experienced positive net new business (annualized) during the nine months ended September 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 $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.
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 $175,000, or 2%, and decreased $294,000, or 1%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024. While both the three and nine month periods ended September 30, 2025 were impacted by the previously mentioned lost business, the three month period benefitted from stronger market returns as compared to the same period of the prior year.
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 $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.
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 $403,000, or 59%, and $369,000, or 28%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024 due to the prior year periods experiencing particularly strong estate fee revenue.
Previous 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.
Current wording
AUM, stated at market value, totaled $7.48 billion at September 30, 2025 compared with $7.07 billion at December 31, 2024 and $7.32 billion at September 30, 2024. The increase in AUM between September 30, 2024 and September 30, 2025 was attributed to appreciation within the equity and fixed income markets over the past 12 months in addition to positive net new business through the first nine months of 2025. After experiencing 4 consecutive quarters of contraction beginning in the third quarter of 2024, AUM expanded during both the second and third quarters of 2025, as general market appreciation has aided positive net new business trends in recent months.
Previous 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:
Current wording
AUM (not included on balance sheet) increased from $7.07 billion at December 31, 2024 to $7.48 billion at September 30, 2025 as follows:
Previous wording
Managed assets are invested in instruments for which market values can be readily determined, the majority of which are sensitive to market fluctuations and consist of approximately 65% in equities and 35% in fixed income securities as of both June 30, 2025 and December 31, 2024. This composition has remained relatively consistent from period to period.
Current wording
Managed assets are invested in instruments for which market values can be readily determined, the majority of which are sensitive to market fluctuations and consist of approximately 66% in equities and 34% in fixed income securities as of September 30, 2025, compared to 65% and 35% as of December 31, 2024. This composition has remained relatively consistent from period to period.
Previous 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.
Current wording
Deposit service charges, which consist of non-sufficient funds charges and to a lesser extent, other activity based charges, decreased $33,000, or 1%, and $201,000, or 3%, for the three and nine month periods ended September 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 $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.
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 $74,000, or 1%, and $334,000, or 2%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, attributed mainly to lower transaction volumes. Total debit card income decreased $43,000, or 1%, and $204,000, or 2%, and total credit card income decreased $31,000, or 2%, and $130,000, or 3%, for the three and nine month periods ended September 30, 2025, 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.
Previous wording
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 wording
Treasury management fees primarily consist of fees earned for cash management services provided to commercial customers. Treasury management fees decreased $16,000, or 1%, and increased $212,000, or 3%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024. While both periods have benefitted from organic growth and new product sales in addition to broad fee increases implemented towards the end of the first quarter, the decrease for the three month period is attributed to the prior year period experiencing elevated levels of foreign currency exchange income.
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 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.
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 $140,000, or 13%, and $186,000, or 6%, for the three and nine month periods ended September 30, 2025, as compared with the same periods of 2024, driven by higher origination volumes related largely to the addition of new sales officers.
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 $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.
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 $197,000, or 22%, and $522,000, or 20%, for the three and nine month periods ended September 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%, 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.
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 decreased $3,000, or less than 1%, and increased $65,000, or 4%, for the three and nine month periods ending September 30, 2025 compared to the same periods of the prior year, consistent with yields within the policy plans compared to the prior year.
Previous wording
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 wording
While no activity was recorded for the three months ended September 30, 2025, a gain on the sale of premises and equipment totaling $74,000 was recorded for the nine month period ended September 30, 2025. 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. Losses on the sale of premises and equipment of $59,000 and $39,000 were recorded for the three and nine month periods ended September 30, 2024.
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