Stock Yards Bancorp Reports Record Fourth Quarter Earnings of $36.6 Million or $1.24 Per Diluted Share
LOUISVILLE, Ky., Jan. 27, 2026 (GLOBE NEWSWIRE) -- Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported record earnings of $36.6 million, or $1.24 per diluted share, for the fourth quarter ended December 31, 2025. This compares to net income of $31.7 million, or $1.07 per diluted share, for the fourth quarter ended December 31, 2024. Solid loan and deposit growth, coupled with non-interest income growth and excellent credit quality metrics, contributed to record fourth quarter 2025 operating results. For the year ended December 31, 2025, the Company produced record net income of $140.2 million, or $4.75 per diluted share, a 22% increase over the prior year, led by loan growth in all markets combined with net interest margin expansion and strong credit quality.
“2025 was a banner year for Stock Yards, reflecting exceptional performance with record earnings for the fourth quarter and the full year,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “We delivered solid loan growth during this quarter, our seventh consecutive quarter of growth across all markets, which demonstrates the strength of our franchise. Loan production exceeded 2024 levels, reflecting that our origination engine is performing exceptionally well and our customer relationships remain strong. While year over year loan growth came in at 8%, marking the first time in 4 years below double digits, this remains well above peer averages and reflects healthy portfolio dynamics as we navigate a normalizing credit environment. The elevated payoff activity we experienced in the second half of the year was driven by a back-log of stabilized construction projects that refinanced with permanent lenders, reflecting expected payoffs from successful projects as opposed to customer attrition. Credit quality remains strong and stable, underpinned by our disciplined underwriting approach and proactive portfolio management. These results reflect our consistent execution and commitment to sustainable growth as we enter 2026.
“Fourth quarter results benefited from widespread gains across our non-interest income categories and delivered notable value to the bottom line,” Hillebrand continued. “Our Wealth Management & Trust (WM&T) division achieved record results during the fourth quarter, with both revenue and assets under management reaching all-time highs. These results are especially impressive considering the division faced negative net new business for the first time in several years in late 2024. The turnaround in 2025 was fueled by robust market performance and a return to positive net new business, thanks in part to our strengthened, experienced sales team. We're optimistic about WM&T’s momentum and its role in driving our future growth.
“During the year, we grew our deposit base by $625 million, representing 9% growth. This expansion was attributed mainly to the success of our time deposit campaign launched in the first half of the year. Our CD promotions strategically featured short-term maturities, positioning them to reprice downward in the current rate environment. We remain committed to fostering organic growth while simultaneously strengthening the durability of our funding structure. Despite facing two interest rate cuts during the fourth quarter, our net interest margin held steady and improved slightly during the period, largely attributable to strong earning asset growth and a decline in the cost of interest-bearing liabilities,” said Hillebrand.
As of December 31, 2025, the Company had $9.54 billion in assets, $7.04 billion in loans and $7.79 billion in total deposits. The Company’s combined enterprise, which encompasses 75 branch offices across three contiguous states, will continue to benefit from a diversified geographic and economic footprint, including new branches that opened during the fourth quarter of 2025 in Bardstown, Kentucky and Liberty Township, Ohio, a suburb of Cincinnati. Further, the Company announced the appointment of a Bowling Green Market President in early December, expanding its footprint into south central Kentucky and providing another avenue for future growth.
Key factors contributing to the fourth quarter of 2025 results included:
Highlights for the year ended December 31, 2025:
Hillebrand concluded, “In December, Piper Sandler recognized Stock Yards as one of only 24 banks in the U.S. to be named a 'Sm-All Star' on their annual list of top-performing small-cap banks and thrifts. This elite list reflects the industry's leading institutions across multiple metrics, including growth, profitability, credit quality, and capital strength. Being named among the nation's top-performing community banks is a powerful validation of our strategy and momentum, and this distinction highlights the exceptional effort and commitment of the entire Stock Yards team.” Stock Yards Bancorp has been named to Piper Sandler’s Sm-All Stars list seven times in 2008, 2011, 2019, 2020, 2022, 2024 and 2025.
Results of Operations – Fourth Quarter 2025, Compared with Fourth Quarter 2024
Net interest income, the Company’s largest source of revenue, increased by $9.3 million, or 13%, to $79.3 million. Significant average earning asset balance growth and to a lesser extent, improved yields, led to strong net interest income expansion.
The Company recorded provision for credit losses on loans (1) of $850,000 for the fourth quarter of 2025, consistent with solid loan growth, a slightly improved economic forecast, a $2.0 million decline in specific reserve allocations, and net charge offs of $1.1 million. Additionally, the Company recorded $800,000 of expense for off balance sheet exposures for the fourth quarter of 2025 associated with increased availability related to C&D lines of credit. For the fourth quarter of 2024, the Company recorded $2.2 million in provision for credit losses on loans and $450,000 of expense for off balance sheet exposures.
Non-interest income increased $1.6 million, or 7%, to $25.1 million compared to the fourth quarter of 2024.
Non-interest expenses increased by $3.2 million, or 6%, to $54.8 million, compared to the fourth quarter of 2024.
The Company recorded income tax expense of $11.3 million for the fourth quarter of 2025, with an effective tax rate of 23.6%. This compared to income tax expense of $7.5 million in the fourth quarter of 2024, with an effective tax rate of 19.0%. The effective tax rate in the fourth quarter of 2025 was higher than the prior year period due to changes in the anticipated timing of certain tax credit investment benefits.
Financial Condition – December 31, 2025, Compared with December 31, 2024
Total assets increased $673 million, or 8%, year over year to $9.54 billion.
Total loans increased $521 million, or 8%, to $7.04 billion, with growth well-spread across segments and markets. Total line of credit usage ended at 48% as of December 31, 2025, compared to 46% as of December 31, 2024. C&I line of credit usage expanded to 37% as of period end, compared to 34% as of December 31, 2024.
Total investment securities decreased $439 million, or 32%, year over year, driven by the maturity of short-term Treasury Bills that had previously been utilized for seasonal collateral pledging purposes that were not reinvested, providing liquidity and funding for continued loan growth consistent with current balance sheet management strategies.
Total deposits increased $625 million, or 9%, over the past 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher-cost deposits. Total interest-bearing deposits grew $645 million, or 11%, led primarily by time deposit growth. Non-interest-bearing demand accounts decreased $20 million, or 1%.
Non-performing loans totaled $13.0 million, or 0.19% of total loans outstanding on December 31, 2025, compared to $22.2 million, or 0.34% of total loans outstanding on December 31, 2024, the decrease being attributed mainly to the payoff of a few larger non-accrual loans. The ratio of allowance for credit losses to loans ended at 1.30% on December 31, 2025, compared to 1.33% on December 31, 2024.
As of December 31, 2025, the Company continued to be “well-capitalized,” the highest regulatory capital rating for financial institutions, with all capital ratios experiencing meaningful growth. Total equity to assets (3) was 11.28% and the tangible common equity ratio (3) was 9.32% on December 31, 2025, compared to 10.61% and 8.44% on December 31, 2024, respectively. Further, tangible book value per share increased from $24.82 at December 31, 2024 to $29.50 at December 31, 2025, representing an increase of 19% over the prior year.
In November 2025, the board of directors declared a quarterly cash dividend of $0.32 per common share. The dividend was paid December 31, 2025, to shareholders of record as of December 15, 2025.
Results of Operations – Fourth Quarter 2025, Compared with Third Quarter 2025
Net interest margin expanded 1 basis point on the linked quarter to 3.57%, despite the impact of recent rate reductions enacted by the FRB, as the decline in average earning asset yields was outpaced by the decrease in the cost of interest-bearing liabilities.
Net interest income increased $2.2 million, or 3%, over the prior quarter to $79.3 million.
During the fourth quarter of 2025, the Company recorded $850,000 in provision for credit losses on loans (1) and $800,000 of provision for off balance sheet exposures. During the third quarter of 2025, the Company recorded $1.6 million in provision for credit losses on loans and $425,000 of provision for off balance sheet exposures.
Non-interest income increased $652,000, or 3%, on the linked quarter, to $25.1 million. While most non-interest revenue streams increased on the linked quarter, non-interest income growth was largely driven by a $510,000 increase for card income attributed to the receipt of annual volume-based debit card incentives, which are received in November of each year, in addition to a solid increase in WM&T revenue.
Non-interest expenses increased $975,000, or 2% on the linked quarter to $54.8 million. Legal and professional expenses and employee benefits were the main drivers of the linked quarter increase for non-interest expense due to higher legal accruals and increased health insurance claims.
Financial Condition – December 31, 2025, Compared with September 30, 2025
Total assets increased $229 million, or 2%, on the linked quarter to $9.54 billion.
Total loans expanded $112 million, or 2%, on the linked quarter, with every market contributing to the growth. The C&D segment was the primary driver of growth for the quarter, which offset elevated payoff activity within the CRE and C&I segments. Total line of credit usage was 48% as of December 31, 2025, compared to 47% as of September 30, 2025. C&I line of credit usage was 37% as of December 31, 2025, unchanged from September 30, 2025. While C&I line of credit utilization was flat and overall line of credit utilization experienced a slight decline over the linked quarter, utilization trends remain positive and well above the same period of the prior year.
Total deposits increased $147 million, or 2%, on the linked quarter. Total interest-bearing deposit accounts increased $300 million, or 5%, while total non-interest bearing deposits declined $153 million, or 10%.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $9.54 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company’s common shares trade on The Nasdaq Stock Market under the symbol “SYBT.”
This report contains forward-looking statements under the Private Securities Litigation Reform Act that involve risks and uncertainties. Although the Company’s management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets in which the Company and its banking subsidiary operates; competition for the Company’s customers from other providers of financial services; changes in, or forecasts of, future political and economic conditions, inflation and efforts to control it; government legislation and regulation, which change and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company’s customers; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. Refer to Stock Yards’ Annual Report on Form 10-K for the year ended December 31, 2024, as well as its other filings with the SEC for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2025 Earnings Release
(In thousands unless otherwise noted)
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2025 Earnings Release
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2025 Earnings Release
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2025 Earnings Release
(1) - Detail of Provision for credit losses follows:
(2) - The efficiency ratio, a non-GAAP measure, equals total non-interest expenses divided by the sum of net interest income (FTE) and non-interest income.
(3) - The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity, a non-GAAP disclosure. Bancorp provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy:
(4) - Return on average assets equals net income divided by total average assets, annualized to reflect a full year return on average assets. Similarly, return on average equity equals net income divided by total average equity, annualized to reflect a full year return on average equity.
(5) - Interest income on a FTE basis includes the additional amount of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in assets subject to federal, state and local taxes yielding the same after-tax income. Interest income, yields and ratios on a FTE basis are considered non-GAAP financial measures. Management believes net interest income on a FTE basis provides an insightful picture of the interest margin for comparison purposes. The FTE basis also allows management to assess the comparability of revenue arising from both taxable and tax-exempt sources. The FTE basis assumes a federal corporate income tax rate of 21%.
(6) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized.