Stock Yards Bancorp Reports First Quarter Earnings of $36.6 Million or $1.24 Per Diluted Share
LOUISVILLE, Ky., April 22, 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 earnings of $36.6 million, or $1.24 per diluted share, for the first quarter ended March 31, 2026. This compares to net income of $33.3 million, or $1.13 per diluted share, for the first quarter ended March 31, 2025. Solid loan growth across all markets, combined with net interest margin expansion, strong credit quality metrics and record net new business generation from the Wealth Management & Trust (WM&T) group, contributed to first quarter 2026 operating results.
“We entered 2026 with strong momentum coming off the best year in the Company’s history, and our first quarter operating results reflect that,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. "Loan growth stood out in terms of both volume and credit quality, and that combination of growth and discipline continues to be a core focus for our team. Our Central Kentucky market crossed the $1 billion threshold for total loans this quarter, demonstrating our ability to enter new markets and replicate the full-service, community banking business model that has been the staple of our success. After entering this market through acquisition in 2021, Central Kentucky has continued to contribute to the growth we’ve experienced not only within the loan portfolio, but across our entire business. Equally noteworthy was the performance across our non-interest income categories. Our WM&T division delivered record revenue during the first quarter, while card income and treasury management fees continue to provide meaningful contributions, further solidifying non-interest income as a significant driver of our results.
“In addition to our financial performance, the highlight of the quarter was the signing of a definitive agreement to acquire Field & Main Bancorp, Inc.,” Hillebrand continued. “This partnership joins two community banks whose values and cultures are closely aligned and expands our reach into Western Kentucky—one of the most attractive and economically vibrant regions in the state. Field & Main’s franchise provides us with an immediately scalable presence in this region, and its community-first, relationship-driven culture aligns closely with Stock Yards’ longstanding focus on disciplined growth, profitability, and high-touch customer service. Together, the combined organization will be positioned to deepen market penetration, enhance operating leverage, and deliver expanded capabilities to customers across Western Kentucky and adjacent markets. We will officially welcome Field and Main Bank to the Stock Yards family during the second quarter, with the closing date set for May 1 st.”
Field & Main Bancorp, Inc (“Field & Main”), headquartered in Henderson, Kentucky, operates 6 total retail branches in Henderson, Lexington, and Cynthiana, Kentucky, and Evansville, Indiana. As of December 31, 2025, Field & Main reported approximately $861 million in assets, $652 million in loans, and $781 million in deposits. Field & Main also maintains a Wealth Management and Trust Department with total assets under management of approximately $800 million at December 31, 2025.
As of March 31, 2026, Stock Yards had $9.47 billion in assets, $7.23 billion in loans and $7.76 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 first quarter of 2026 included:
Hillebrand concluded, “During the first quarter, S&P Global Market Intelligence once again recognized Stock Yards as one of the Top 50 Best Performing Community Banks with total assets between $3 and $10 billion at the end of 2025. The rankings assess the performance of banking institutions based on returns, growth and funding, while placing a premium on balance sheet strength and risk profile. This recognition is a testament to our employees and the standard of service they deliver across every market we operate in.”
Results of Operations – First Quarter 2026, Compared with First Quarter 2025
Net interest income, the Company’s largest source of revenue, increased by $7.9 million, or 11%, to $78.4 million. Significant average earning asset balance growth led to strong net interest income expansion.
The Company recorded provision for credit losses on loans (1) of $1.6 million for the first quarter of 2026, compared to $900,000 in provision for credit losses on loans for the first quarter of 2025. The higher expense compared to the first quarter of 2025 reflected both the stronger loan growth experienced during the current quarter and the annual CECL model updates implemented in the prior year period. No expense for off balance sheet exposures was recorded for the first quarter of 2026 or the first quarter of 2025, as line of credit utilization improved and related availability declined.
Non-interest income increased $1.6 million, or 7%, to $24.6 million compared to the first quarter of 2025.
Non-interest expenses increased by $4.2 million, or 8%, to $55.2 million, compared to the first quarter of 2025.
The Company recorded income tax expense of $9.6 million for the first quarter of 2026, with an effective tax rate of 20.7%. This compared to income tax expense of $8.4 million in the first quarter of 2025, with an effective tax rate of 20.1%.
Financial Condition – March 31, 2026, Compared with March 31, 2025
Total assets increased $469 million, or 5%, year over year to $9.47 billion.
Total loans increased $580 million, or 9%, to $7.23 billion, with growth well-spread across segments and markets. Total line of credit usage ended at 49% as of March 31, 2026, compared to 46% as of March 31, 2025. C&I line of credit usage expanded to 38% as of period end, compared to 34% as of March 31, 2025.
Total investment securities decreased $361 million, or 29%, 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 $463 million, or 6%, over the past 12 months, which was driven in nearly equal parts by interest-bearing demand and time deposit growth. Total interest-bearing deposits grew $506 million, or 9%, driven by some larger depositors increasing balances and the success of our promotional time deposit offerings over the course of the prior year. Non-interest-bearing demand accounts decreased $43 million, or 3%.
Non-performing loans totaled $11.4 million, or 0.16% of total loans outstanding on March 31, 2026, compared to $16.1 million, or 0.24% of total loans outstanding on March 31, 2025, the decrease being attributed mainly to the payoff of a few larger non-accrual loans during the prior quarter. The ratio of allowance for credit losses to loans ended at 1.30% on March 31, 2026, compared to 1.34% on March 31, 2025.
As of March 31, 2026, 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 11.65% and the tangible common equity ratio ( 3 ) was 9.69% on March 31, 2026, compared to 10.84% and 8.72% on March 31, 2025, respectively. Further, tangible book value per share increased to $30.41 at March 31, 2026, from $26.01 at March 31, 2025, representing an increase of 17% over the prior year.
In February 2026, the board of directors declared a quarterly cash dividend of $0.32 per common share. The dividend was paid April 1, 2026, to shareholders of record as of March 16, 2026.
Results of Operations – First Quarter 2026, Compared with Fourth Quarter 2025
Net interest margin expanded 8 basis points on the linked quarter to 3.65%, despite the impact of recent rate reductions enacted by the FRB. The biggest driver of net interest margin expansion was the decline in interest-bearing deposit costs compared to the linked quarter.
Net interest income decreased $829,000, or 1%, over the prior quarter.
During the first quarter of 2026, the Company recorded $1.6 million in provision for credit losses on loans (1) and no provision expense for off balance sheet exposures. During the fourth quarter of 2025, the Company recorded $850,000 in provision for credit losses on loans and $800,000 of provision for off balance sheet exposures.
Non-interest income decreased $534,000, or 2%, on the linked quarter, to $24.6 million. The decrease was largely attributed to annual debit card income incentives that are received in the fourth quarter each year in addition to lower interchange and NSF volumes. However, these declines were partially offset by recording a $479,000 gain on the sale of a former branch location in Florence, Kentucky that had been held for sale, in addition to record WM&T revenue.
Non-interest expenses increased $436,000, or 1% on the linked quarter to $55.2 million. Higher compensation, employee benefits and technology expenses were the main drivers of the linked quarter increase, partially offset by declines in marketing and legal and professional expenses.
Financial Condition – March 31, 2026, Compared with December 31, 2025
Total assets decreased $69 million, or 1%, on the linked quarter to $9.47 billion.
Total loans expanded $185 million, or 3%, on the linked quarter, with every market contributing to the increase. Growth for the quarter was driven by increases in the CRE and C&I portfolios. Total line of credit usage was 49% as of March 31, 2026, compared to 48% as of December 31, 2025. C&I line of credit usage increased to 38% as of March 31, 2026, compared to 37% at December 31, 2025. Utilization trends remain positive and well above the same period of the prior year.
Total deposits decreased $34 million on the linked quarter. Total non-interest bearing deposits increased $20 million, while total interest-bearing deposit accounts declined $54 million.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $9.47 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, 2025, 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.