Stock Yards Bancorp Reports Record Second Quarter Earnings of $34.0 Million or $1.15 Per Diluted Share
LOUISVILLE, Ky., July 23, 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 earnings of $34.0 million, or $1.15 per diluted share, for the second quarter ended June 30, 2025. This compares to net income of $27.6 million, or $0.94 per diluted share, for the second quarter of 2024. Strong loan and deposit growth contributed to record second quarter 2025 operating results.
(dollar amounts in thousands, except per share data)
2Q25
1Q25
2Q24
Net income
$
34,024
$
33,271
$
27,598
Net income per share, diluted
1.15
1.13
0.94
Net interest income
$
73,473
$
70,552
$
62,022
Provision for credit losses(1)
2,175
900
1,300
Non-interest income
24,348
22,996
23,655
Non-interest expenses
52,700
51,027
49,109
Net interest margin
3.53
%
3.46
%
3.26
%
Efficiency ratio(2)
53.83
%
54.50
%
57.26
%
Tangible common equity to tangible assets(3)
8.86
%
8.72
%
8.42
%
Annualized return on average assets(4)
1.52
%
1.52
%
1.35
%
Annualized return on average equity(4)
13.91
%
14.14
%
12.64
%
"We concluded the first half of 2025 with strong momentum, delivering record second quarter earnings that reflect continued exceptional profitability, fueled in large part by robust loan growth and net interest margin expansion," commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. "A key highlight of the quarter was the $779 million, or 13%, year-over-year increase in total loans, with $204 million of that growth occurring in the second quarter. This expansion was broad-based, with nearly every loan category and all markets contributing to the overall growth. Although we initially projected moderate loan growth in light of persistent global economic uncertainties, the second quarter reflected a more resilient environment. Loan production and demand remained steady, and credit quality metrics continued to be strong. In addition to our noteworthy loan growth, net interest margin expanded by 27 basis points year-over-year and 7 basis points from the prior quarter, as we continue to see expanding yields on our earning assets as well as better-than-expected funding costs. This was a powerful combination that drove profitability for the period."
"Non-interest revenue was a strong contributor to our solid operating results in the second quarter of 2025," Hillebrand continued. "Treasury management fees benefited from increased fees and a growing customer base, while mortgage, brokerage, and card income all made meaningful contributions. Although Wealth Management & Trust (WM&T) income declined compared to the prior quarter, assets under management increased at quarter end following three consecutive quarters of decline. Looking ahead, we are encouraged by the traction in net new business and the strength of the teams we have put in place. Recent key hires are already contributing to production, and we are optimistic about the continued momentum in our WM&T group as these individuals further establish themselves and drive new opportunities."
"We continue to successfully expand our deposit base, which grew $938 million, or 14% over the past 12 months, driven in large part by a successful time deposit campaign earlier in the year. We are particularly encouraged with the performance of our non-interest bearing deposits, which continue to represent over 20% of total deposits. Our focus remains on organic growth while strengthening our overall funding position. We expect our net interest margin to remain steady as we anticipate deposit competition to be stronger in the second half of the year," said Hillebrand.
As of June 30, 2025, the Company had $9.21 billion in assets, $6.85 billion in loans and $7.51 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 slated to be opened in 2025, which will expand the Company's footprint into Bardstown, Kentucky and Liberty Township, Ohio, a suburb of Cincinnati.
Key factors contributing to the second quarter of 2025 results included:
Total loans increased $779 million, or 13%, over the last 12 months, while growing $204 million, or 3%, on the linked quarter. Broad based loan growth during the quarter included increases in all markets for the fifth consecutive quarter and was well spread amongst categories. Commercial real estate loan growth of $405 million led all categories, with C&I, residential real estate and C&D lending segments also contributing to year over year growth. The yield earned on total loans ended at 6.13% for the second quarter of 2025, with yield expansion and strong average balance growth driving a 7-basis point increase compared to the same period in 2024.
Deposit balances expanded $938 million, or 14%, over the last 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts increased $32 million, or 2%, while interest-bearing deposits grew $905 million, or 18%, led in large part by time deposit growth. On the linked quarter, total deposits expanded $213 million, or 3%. Non-interest-bearing demand accounts increased $16 million, or 1%, while total interest-bearing deposit accounts increased $197 million, or 3%, led by time deposit growth.
Net interest income increased $11.5 million, or 18%, for the second quarter of 2025 compared to the second quarter a year ago. Net interest margin expanded 27 basis points to 3.53% for the second quarter of 2025 compared to the second quarter a year ago, driven by strong earning asset growth and yield expansion that was coupled with a decline in the cost of funds. On the linked quarter, net interest income increased $2.9 million, or 4%, while net interest margin expanded 7 basis points, boosted by continued loan growth and higher yields on interest earning assets, which outpaced a moderate increase in the cost of funds.
Provision for credit loss expense(1) of $2.2 million was recorded for the second quarter of 2025, primarily attributed to strong loan growth, a slightly deteriorating economic forecast and increased specific reserves. Traditional credit quality statistics remained strong at quarter-end.
Non-interest income increased $693,000 over the second quarter of 2024. Other non-interest income increased $677,000, driven mainly by $557,000 of swap fees, while treasury management fees grew $180,000, or 6%, over the last 12 months to a record $3.0 million and brokerage income grew $180,000, or 23%. This activity more than offset a $312,000, or 3%, decline in WM&T income. Further, a $74,000 gain on the sale of premises and equipment was recorded during the quarter related mainly to the sale of a property owned by the Bank as a result of a prior acquisition.
Total non-interest expenses increased $3.6 million, or 7%, during the second quarter of 2025 compared to the second quarter of 2024, and increased $1.7 million, or 3%, on the linked quarter.
Tangible common equity per share(3) was $27.06 on June 30, 2025, compared to $26.01 on March 31, 2025, and $23.22 on June 30, 2024.
Hillebrand concluded, "In June 2025, we were honored to once again be named a recipient of the 2024 Raymond James Community Bankers Cup—an award that recognizes the top 10% of community banks nationwide based on key measures such as profitability, operational efficiency, and balance sheet strength. This distinction was awarded from a pool of all U.S.-based, exchange-traded banks with assets between $500 million and $10 billion as of December 31, 2024. This achievement highlights not only Stock Yards' strong performance but also our continued commitment to delivering exceptional service to the communities we proudly serve." Stock Yards Bancorp has been awarded the Raymond James Community Bankers Cup a total of 10 times.
Results of Operations, Second Quarter 2025, Compared with Second Quarter 2024
Net interest income, the Company's largest source of revenue, increased by $11.5 million, or 18%, to $73.5 million. Significant average earning asset balance growth and improved yields led to strong interest income expansion.
Total interest income increased by $14.7 million, or 15%, to $115 million.
Interest income and fees on loans increased $13.0 million, or 14%, over the prior year quarter. Driven by the $773 million, or 13%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 7 basis points over the past 12 months to 6.13%.
Interest income on securities increased $936,000, or 12%, compared to the second quarter of 2024. While average securities balances declined $154 million, or 10%, over the past 12 months, the rate earned on securities improved 52 basis points to 2.57%, as a portion of lower-yielding investment maturities were reinvested at higher short-term rates for balance sheet management strategies. Over the past 12 months, cash flows from investment portfolio maturities and amortization have been primarily utilized to fund loan growth and provide liquidity.
Average overnight funds increased $91 million for the second quarter of 2025 compared to the same period of the prior year, driving a $573,000, or 27%, increase in corresponding interest income despite rate reductions enacted by the Federal Reserve in late 2024.
Total interest expense increased $3.2 million, or 8%, to $41.5 million, but the cost of interest-bearing liabilities decreased 10 basis points to 2.65%.
Interest expense on deposits increased $5.9 million, or 19% over the past 12 months, attributed almost entirely to the time deposit category and consistent with the successful CD promotion that ran through mid-April. Despite ending the promotions early in the second quarter and lowering time deposit rates, the Company continued to experience solid time deposit growth through the end of the quarter. The overall cost of interest-bearing deposits increased to 2.59% for the second quarter of 2025 from 2.56% for the second quarter of 2024.
As a result of strong interest-bearing deposit growth over the past 12 months, average FHLB advance balances declined $138 million, or 31%, resulting in a $2.4 million, or 45%, decrease in the corresponding FHLB expense compared to the second quarter of 2024, with the related cost of funds declining 92 basis points to 3.85% over the same period.
The Company recorded provision for credit losses on loans expense of $2.3 million for the second quarter of 2025, consistent with strong loan growth, a slightly deteriorating economic forecast, increased specific reserves, and net charge offs of $342,000. Additionally, the Company recorded a $75,000 credit to expense for off balance sheet exposures for the second quarter of 2025 due to increased utilization trends. For the second quarter of 2024, the Company recorded $1.1 million in provision for credit losses on loans and $225,000 in provision for credit losses on off balance sheet exposures associated with increased availability related to Construction & Land Development and Commercial & Industrial (C&I) lines of credit.
Non-interest income increased $693,000, or 3%, to $24.3 million compared to the second quarter of 2024.
WM&T income ended the second quarter of 2025 at $10.5 million, a decrease of $312,000, or 3%, over the second quarter of 2024. Assets under management contracted $286 million, or 4%, compared to the second quarter of 2024.
Compared to the second quarter of 2024, treasury management fees increased $180,000, or 6%, to a record $3.0 million. Consistent treasury management growth has been driven by fee increases, strong organic growth and new product sales.
Brokerage income grew $180,000, or 23%, to $980,000, attributed to the addition of a new broker and the benefit of portfolios shifting to more profitable wrap fee-based business.
Non-interest expenses increased by $3.6 million, or 7%, to $52.7 million, compared to the second quarter of 2024.
Compensation expense increased $2.6 million, or 11%, compared to the second quarter of 2024, consistent with higher bonus accrual levels tied to strong year-to-date results, annual merit-based increases and full-time equivalent employee expansion. Employee benefits increased $244,000, or 5%, compared to the second quarter of 2024, as increases in 401(k) matching expense and payroll tax expenses more than offset lower health insurance expense.
Net occupancy and equipment expenses increased $206,000, or 5%, over the second quarter of 2024, as the current period included expenses related to increased rent and depreciation expense.
Marketing and business development expense increased $355,000, or 22%, compared to the second quarter of 2024. The quarter over prior year quarter increase relates to elevated advertising expense tied primarily to time deposit product promotions in addition to increased customer entertainment and sponsorships.
Other non-interest expenses increased $210,000, or 9%, compared to the second quarter of 2024, primarily attributed to higher credit card rewards and to a lesser extent, increased insurance costs.
Financial Condition, June 30, 2025, Compared with June 30, 2024
Total assets increased $894 million, or 11%, year over year to $9.21 billion.
Total loans increased $779 million, or 13%, to $6.85 billion, with growth spread across categories and markets. Total line of credit usage ended at 48% as of June 30, 2025, compared to 41% as of June 30, 2024. C&I line of credit usage expanded to 37% as of period end, representing the highest level of utilization since 2020, however still well below pre-pandemic levels.
Total investment securities decreased $121 million, or 9%, year over year. Over the past 12 months, cash flows from the investment portfolio have been primarily utilized to fund loan growth and provide liquidity, while a portion of lower-yielding maturities have been reinvested at higher short-term rates for balance sheet management strategies.
Total deposits increased $938 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 $905 million, or 18%, led primarily by time deposit growth, and average total interest-bearing deposit accounts increased $849 million, or 17% over the past 12 months. Non-interest-bearing demand accounts increased $32 million, or 2%, however, average non-interest bearing demand accounts declined $27 million, or 2%.
Non-performing loans totaled $18.0 million, or 0.26% of total loans outstanding on June 30, 2025, compared to $17.6 million, or 0.29% of total loans outstanding on June 30, 2024. The ratio of allowance for credit losses to loans ended at 1.32% on June 30, 2025, compared to 1.35% on June 30, 2024.
As of June 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 10.92% and the tangible common equity ratio(3) was 8.86% on June 30, 2025, compared to 10.76% and 8.42% on June 30, 2024, respectively.
In May 2025, the board of directors declared a quarterly cash dividend of $0.31 per common share. The dividend was paid July 1, 2025, to shareholders of record as of June 16, 2025.
On July 15, 2025, the Company's Board of Directors adopted a share repurchase plan under which the Company may purchase up to 1 million shares of the Company's common stock. The share repurchase plan expires in two years and replaces the Company's prior repurchase plan, which expired in May 2025. The Company last repurchased shares in 2019.
"Having an active share repurchase authorization in place allows us the flexibility to buy back stock when it aligns with our capital allocation strategy," said Hillebrand.
Results of Operations, Second Quarter 2025, Compared with First Quarter 2025
Net interest margin expanded 7 basis points on the linked quarter to 3.53%, boosted by strong loan growth and higher interest earning asset yields, which more than offset a moderate increase in cost of funds.
Net interest income increased $2.9 million, or 4%, over the prior quarter to $73.5 million.
Total interest income increased $3.8 million, or 3%.
Interest income on loans, including fees, increased $3.4 million, or 3%. Average loans increased $150 million, or 2%, and the corresponding yield earned remained flat at 6.13%. However, non-accrual payoff activity provided approximately 4 basis points of benefit to loan yields for the first quarter of 2025.
Total interest expense increased $913,000, or 2%.
Interest expense on deposits increased $2.9 million, or 8%, led by $265 million, or 20%, of growth in average time deposit balances, which was driven in large part by the success of promotions that ran through mid-April. While the promotions ended early in the second quarter and time deposit rates were cut, the Bank's time deposit offerings remained competitive and continued to see growth through the end of the period, albeit at a slower pace compared to the linked quarter.
During the second quarter of 2025, the Company recorded $2.3 million in provision for credit losses on loans(1) and a $75,000 credit to expense for off balance sheet exposures. During the first quarter of 2025, the Company recorded $900,000 in provision for credit losses on loans and no provision for credit losses on off balance sheet exposures.
Non-interest income increased $1.4 million, or 6%, on the linked quarter, to $24.3 million. Other non-interest income increased $637,000, driven mainly by $557,000 of swap fees collected, while treasury management fees grew $332,000, or 12%, and card income grew $329,000, or 7%. This activity more than offset a $164,000, or 2%, decline in WM&T income. Further, a $74,000 gain on the sale of premises and equipment was recorded during the quarter related mainly to the sale of a property owned by the Bank as a result of a prior acquisition.
Non-interest expenses increased $1.7 million, or 3% on the linked quarter to $52.7 million, due to increases in compensation expense and marketing and business development expenses.
Financial Condition, June 30, 2025, Compared with March 31, 2025
Total assets increased $212 million, or 2%, on the linked quarter to $9.21 billion.
Total loans expanded $204 million, or 3%, on the linked quarter, with every market contributing to the growth. The CRE segment was the primary driver of growth for the quarter, increasing $126 million, or 4%, on the linked quarter. The residential real estate segment grew $47 million, or 4%, and C&I loans increased $27 million, or 2%, on the linked quarter. Total line of credit usage increased to 48% as of June 30, 2025, compared to 46% as of March 31, 2025. C&I line of credit usage increased to 37% as of June 30, 2025, from 34% at March 31, 2025.
Total deposits increased $213 million, or 3%, on the linked quarter. Non-interest-bearing demand accounts increased $16 million, or 1%, while total interest-bearing deposit accounts increased $197 million, or 3%.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $9.21 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 StinnettExecutive Vice President,Treasurer and Chief Financial Officer(502) 625-0890
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2025 Earnings Release
(In thousands unless otherwise noted)
Three Months Ended
Six Months Ended
June 30,
June 30,
Income Statement Data
2025
2024
2025
2024
Net interest income, fully tax equivalent (5)
$
73,560
$
62,113
$
144,196
$
122,279
Interest income:
Loans
$
103,009
$
90,018
$
202,609
$
175,858
Federal funds sold and interest bearing due from banks
2,730
2,157
4,731
4,253
Mortgage loans held for sale
78
74
155
105
Federal Home Loan Bank stock
662
470
1,194
938
Investment securities
8,521
7,585
17,477
15,695
Total interest income
115,000
100,304
226,166
196,849
Interest expense:
Deposits
37,511
31,623
72,092
63,489
Securities sold under agreements to repurchase
625
771
1,439
1,702
Federal funds purchased
72
139
142
275
Federal Home Loan Bank advances
2,908
5,263
7,649
8,260
Subordinated debentures
411
486
819
1,031
Total interest expense
41,527
38,282
82,141
74,757
Net interest income
73,473
62,022
144,025
122,092
Provision for credit losses (1)
2,175
1,300
3,075
2,725
Net interest income after provision for credit losses
71,298
60,722
140,950
119,367
Non-interest income:
Wealth management and trust services
10,483
10,795
21,130
21,566
Deposit service charges
2,069
2,180
4,148
4,316
Debit and credit card income
4,837
4,923
9,345
9,605
Treasury management fees
3,005
2,825
5,678
5,450
Mortgage banking income
1,094
1,017
2,011
1,965
Net investment product sales commissions and fees
980
800
1,990
1,665
Bank owned life insurance
629
595
1,251
1,183
Gain on sale of premises and equipment
74
20
74
20
Other
1,177
500
1,717
1,156
Total non-interest income
24,348
23,655
47,344
46,926
Non-interest expenses:
Compensation
27,279
24,634
53,211
48,855
Employee benefits
5,330
5,086
11,115
10,962
Net occupancy and equipment
4,025
3,819
8,148
7,489
Technology and communication
4,773
4,894
9,601
9,963
Debit and credit card processing
1,908
1,811
3,727
3,557
Marketing and business development
1,951
1,596
3,466
2,671
Postage, printing and supplies
937
913
1,906
1,839
Legal and professional
1,088
1,185
1,995
2,300
FDIC insurance
1,260
1,161
2,483
2,273
Capital and deposit based taxes
738
673
1,438
1,303
Intangible amortization
915
1,051
1,829
2,103
Other
2,496
2,286
4,808
4,755
Total non-interest expenses
52,700
49,109
103,727
98,070
Income before income tax expense
42,946
35,268
84,567
68,223
Income tax expense
8,922
7,670
17,272
14,738
Net income
$
34,024
$
27,598
$
67,295
$
53,485
Net income per share - Basic
$
1.16
$
0.94
$
2.29
$
1.83
Net income per share - Diluted
1.15
0.94
2.28
1.82
Cash dividend declared per share
0.31
0.30
0.62
0.60
Weighted average shares - Basic
29,364
29,283
29,356
29,267
Weighted average shares - Diluted
29,505
29,383
29,503
29,372
June 30,
Balance Sheet Data
2025
2024
Investment securities
$
1,221,842
$
1,342,354
Loans
6,850,273
6,070,963
Allowance for credit losses on loans
90,722
82,155
Total assets
9,208,986
8,315,325
Non-interest bearing deposits
1,514,924
1,482,514
Interest bearing deposits
5,991,826
5,086,724
Federal Home Loan Bank advances
300,000
400,000
Accumulated other comprehensive loss
(75,311)
(94,980)
Stockholders' equity
1,005,704
894,535
Total shares outstanding
29,473
29,388
Book value per share (3)
$
34.12
$
30.44
Tangible common equity per share (3)
27.06
23.22
Market value per share
78.98
49.67
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2025 Earnings Release
Three Months Ended
Six Months Ended
June 30,
