Stock Yards Bancorp Reports Record Third Quarter Earnings of $36.2 Million or $1.23 Per Diluted Share

LOUISVILLE, Ky., Oct. 29, 2025 (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 $36.2 million, or $1.23 per diluted share, for the third quarter ended September 30, 2025. This compares to net income of $29.4 million, or $1.00 per diluted share, for the third quarter ended September 30, 2024. Solid loan and deposit growth, coupled with strong credit quality metrics, contributed to third quarter 2025 operating results.

“We delivered another record quarter, marked by strong loan production and our sixth consecutive quarter of loan growth across all markets,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “While elevated loan payoffs tempered overall growth during the quarter, underlying loan demand remains steady. Credit quality continues to be strong and stable, supported by prudent underwriting standards and disciplined portfolio management. Additionally, we are proud to report that just three quarters after our Indianapolis market surpassed $1 billion in total loans, our Cincinnati market reached that same milestone during the third quarter for the first time since entering the market in 2007. These achievements reflect our sustained progress and disciplined growth strategy.”

“Our operating performance this quarter was supported by broad-based strength across non-interest revenue streams,” Hillebrand continued. “Highlighted by growth in our mortgage and brokerage businesses, our diversified sources of fee income continue to make meaningful contributions. While Wealth Management & Trust (WM&T) income declined compared to the prior-year quarter, assets under management increased for the second consecutive quarter following three quarters of decline. We are encouraged by the growth in net new business during the third quarter and the strength of the teams we have assembled. Recent strategic hires are already contributing to business development ahead of expectations, and we remain confident about the continued trajectory of our WM&T group as they continue to gain traction and help drive future growth.”

“Over the past twelve months, we continued expanding our deposit base, which increased by $918 million, or 14%. The growth was driven by the successful execution of a time deposit initiative earlier this year as well as an increase in non-interest bearing deposit balances. We are particularly encouraged by the stability of our non-interest bearing deposits, which now account for 21% of total deposits. As always, our priority is driving organic growth while enhancing the strength and resilience of our funding base. While we expect our net interest margin to remain stable, headwinds created by potential interest rate cuts before the end of the year could present challenges,” said Hillebrand.

As of September 30, 2025, the Company had $9.31 billion in assets, $6.93 billion in loans and $7.64 billion in total deposits. The Company’s combined enterprise, which encompasses 73 branch offices across three contiguous states, will continue to benefit from a diversified geographic and economic footprint, including the new Center Grove location that was opened in the Indianapolis metropolitan market at the end of March. Two additional locations are also expected to be opened by the end of the year, which will expand the Company’s footprint into Bardstown, Kentucky and Liberty Township, Ohio, a suburb of Cincinnati.

Key factors contributing to the third quarter of 2025 results included:

Results of Operations – Third Quarter 2025, Compared with Third Quarter 2024

Net interest income, the Company’s largest source of revenue, increased by $12.1 million, or 19%, to $77.0 million. Significant average earning asset balance growth and improved yields led to strong interest income expansion.

The Company recorded provision for credit losses on loans (1) expense of $1.6 million for the third quarter of 2025, consistent with strong loan growth, a slightly improved economic forecast, minor increases specific reserve allocations, and net charge offs of $112,000. Additionally, the Company recorded a $425,000 expense for off balance sheet exposures for the third quarter of 2025 associated with increased availability related to Construction & Land Development lines of credit. For the third quarter of 2024, the Company recorded $4.3 million in provision for credit losses on loans and no provision for credit losses on off balance sheet exposures.

Non-interest income decreased $321,000, or 1%, to $24.5 million compared to the third quarter of 2024.

Non-interest expenses increased by $5.4 million, or 11%, to $53.8 million, compared to the third quarter of 2024.

Financial Condition – September 30, 2025, Compared with September 30, 2024

Total assets increased $870 million, or 10%, year over year to $9.31 billion.

Total loans increased $651 million, or 10%, to $6.93 billion, with growth spread across segments and markets. Total line of credit usage ended at 47% as of September 30, 2025, compared to 43% as of September 30, 2024. C&I line of credit usage expanded to 37% as of period end, compared to 32% as of September 30, 2024.

Total investment securities decreased $296 million, or 24%, year over year. During the third quarter of 2025, $250 million in short-term Treasury Bills that had previously been utilized for seasonal collateral pledging purposes matured and were not reinvested, providing liquidity and funding for continued loan growth consistent with current balance sheet management strategies.

Total deposits increased $918 million, or 14%, 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 $837 million, or 16%, led primarily by time deposit growth. Non-interest-bearing demand accounts increased $81 million, or 5%.

Non-performing loans totaled $18.7 million, or 0.27% of total loans outstanding on September 30, 2025, compared to $17.2 million, or 0.27% of total loans outstanding on September 30, 2024. The ratio of allowance for credit losses to loans ended at 1.33% on September 30, 2025, compared to 1.36% on September 30, 2024.

As of September 30, 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 11.19% and the tangible common equity ratio ( 3 ) was 9.16% on September 30, 2025, compared to 11.07% and 8.79% on September 30, 2024, respectively.

In August 2025, the board of directors increased its quarterly cash dividend to $0.32 per common share. The dividend was paid October 1, 2025, to shareholders of record as of September 15, 2025.

Results of Operations – Third Quarter 2025, Compared with Second Quarter 2025

Net interest margin expanded 3 basis points on the linked quarter to 3.56%, boosted by strong loan growth and higher interest earning asset yields, which more than offset a minor increase in cost of funds.

Net interest income increased $3.6 million, or 5%, over the prior quarter to $77.0 million.

During the third quarter of 2025, the Company recorded $1.6 million in provision for credit losses on loans (1) and a $425,000 provision expense for off balance sheet exposures. During the second quarter of 2025, the Company recorded $2.3 million in provision for credit losses on loans and a $75,000 credit to expense for off balance sheet exposures.

Non-interest income increased $128,000, or 1%, on the linked quarter, to $24.5 million. While increases were seen for most non-interest revenue streams on the linked quarter, non-interest income growth continued to be challenged in the third quarter of 2025. Largely offsetting the increases noted above was a $613,000, or 52%, decline in other non-interest income, as 2Q25 benefitted from non-recurring activity that included $557,000 of swap fees collected and a $74,000 gain on the sale of premises and equipment related mainly to the sale of a property owned by the Bank as a result of a prior acquisition.

Non-interest expenses increased $1.1 million, or 2% on the linked quarter to $53.8 million, largely due to increases in compensation expense related to higher bonus accrual levels tied to strong year-to-date operating results.

Financial Condition – September 30, 2025, Compared with June 30, 2025

Total assets increased $98 million, or 1%, on the linked quarter to $9.31 billion.

Total loans expanded $79 million, or 1%, on the linked quarter, with every market contributing to the growth. The CRE segment was the primary driver of growth for the quarter, increasing $38 million, or 1%, while the residential real estate segment grew $26 million, or 2%. Total line of credit usage was 47% as of September 30, 2025, compared to 48% as of June 30, 2025. C&I line of credit usage was 37% as of September 30, 2025, unchanged from June 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 $137 million, or 2%, on the linked quarter. Non-interest-bearing demand accounts increased $74 million, or 5%, while total interest-bearing deposit accounts increased $63 million, or 1%.

About the Company

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $9.31 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.

Contact:

T. Clay Stinnett

Executive Vice President,

Treasurer and Chief Financial Officer

(502) 625-0890