Stock Yards Bancorp's Net Income Jumps 25% on Strong Loan Growth

TL;DR

**SYBT is crushing it with a 25% net income jump and solid loan growth, making it a strong buy in regional banking.**

AI Summary

Stock Yards Bancorp, Inc. (SYBT) reported a strong financial performance for the nine months ended September 30, 2025, with net income increasing by 24.9% to $103.5 million, up from $82.8 million in the prior year. This growth was primarily driven by a significant 18.0% increase in total interest income, reaching $346.4 million compared to $302.6 million in 2024, largely due to higher interest on loans. Net interest income also saw a substantial rise of 18.2%, from $187.1 million to $221.1 million. The provision for credit losses decreased by 28.3% to $5.1 million from $7.1 million, indicating improved asset quality or a more favorable economic outlook. Total assets grew to $9.31 billion as of September 30, 2025, from $8.86 billion at December 31, 2024, an increase of 5.0%. Total deposits increased by 6.7% to $7.64 billion from $7.17 billion, with non-interest bearing deposits growing by 9.1% to $1.59 billion. Stockholders' equity also strengthened, rising to $1.04 billion from $940.5 million, a 10.7% increase.

Why It Matters

SYBT's robust performance, marked by significant net income and loan growth, signals a healthy regional banking environment and effective management strategies. For investors, the 24.9% increase in net income and 10.7% rise in stockholders' equity suggest strong profitability and balance sheet resilience, potentially leading to continued dividend growth (cash dividends increased from $0.31 to $0.32 per share in Q3 2025). Employees benefit from a stable and growing company, while customers see a bank with increasing lending capacity. In a competitive landscape, SYBT's ability to grow deposits and loans while reducing credit loss provisions positions it favorably against peers, demonstrating operational efficiency and sound risk management.

Risk Assessment

Risk Level: low — The risk level is low due to a significant decrease in the provision for credit losses by 28.3% to $5.05 million for the nine months ended September 30, 2025, compared to $7.05 million in the prior year. Additionally, the allowance for credit losses on loans increased to $92.16 million from $86.94 million, indicating a conservative approach to potential loan defaults despite the lower provision expense.

Analyst Insight

Investors should consider increasing their position in SYBT, given the strong net income growth of 24.9% and robust loan portfolio expansion. The reduced provision for credit losses and increased stockholders' equity suggest a well-managed bank with improving asset quality and financial stability.

Financial Highlights

debt To Equity

7.94

revenue

$346,400,000

total Assets

$9,307,376,000

total Debt

$397,535,000

net Income

$103,500,000

eps

$3.51

cash Position

$756,289,000

revenue Growth

+18.0%

Revenue Breakdown

Key Numbers

• $103.5M — Net Income (Increased by 24.9% for the nine months ended September 30, 2025, from $82.8M in 2024.)
• $346.4M — Total Interest Income (Increased by 18.0% for the nine months ended September 30, 2025, from $302.6M in 2024.)
• $221.1M — Net Interest Income (Increased by 18.2% for the nine months ended September 30, 2025, from $187.1M in 2024.)
• $5.05M — Provision for Credit Losses (Decreased by 28.3% for the nine months ended September 30, 2025, from $7.05M in 2024.)
• $9.31B — Total Assets (Increased by 5.0% from $8.86B at December 31, 2024.)
• $7.64B — Total Deposits (Increased by 6.7% from $7.17B at December 31, 2024.)
• $1.04B — Total Stockholders' Equity (Increased by 10.7% from $940.5M at December 31, 2024.)
• $1.23 — Diluted EPS (Q3 2025) (Increased from $1.00 in Q3 2024.)
• $3.51 — Diluted EPS (YTD 2025) (Increased from $2.82 in YTD 2024.)
• $0.32 — Cash Dividends Declared (Q3 2025) (Increased from $0.31 in Q3 2024.)

Key Players & Entities

• Stock Yards Bancorp, Inc. (company) — registrant
• Stock Yards Bank & Trust Company (company) — wholly owned subsidiary
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• Nasdaq Stock Market, LLC (company) — exchange where SYBT is registered
• ASU 2023-09 (other) — accounting standard update
• Kentucky (other) — state of incorporation
• Louisville (other) — city of principal executive offices

FAQ

Industry Context

The banking industry is navigating a complex environment characterized by evolving interest rate landscapes and ongoing digital transformation. Competition remains fierce, with traditional banks facing pressure from both neobanks and fintech disruptors. Deposit growth and effective management of interest-earning assets are critical for maintaining profitability.

Regulatory Implications

As a financial institution, Stock Yards Bancorp, Inc. is subject to stringent regulatory oversight from bodies like the Federal Reserve and FDIC. Compliance with capital adequacy requirements, consumer protection laws, and anti-money laundering regulations is paramount and requires continuous investment in systems and personnel.

What Investors Should Do

1. Monitor net interest margin trends.
2. Analyze the growth in non-interest bearing deposits.
3. Assess the trend in provision for credit losses.
4. Evaluate the deployment of increased cash and equivalents.

Glossary

Provision for credit losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (A decrease in this provision suggests improved asset quality or a more optimistic economic outlook for the bank's loan portfolio.)

Non-interest bearing deposits

Deposits held in accounts that do not earn interest, such as many checking accounts. (Growth in these deposits is favorable as the bank does not pay interest on them, contributing positively to net interest margin.)

Available for sale debt securities

Investments in debt securities that are not classified as held-to-maturity or trading securities, and are reported at fair value. (Changes in the fair value of these securities can impact other comprehensive income and equity.)

Held to maturity debt securities

Investments in debt securities that the institution has the intent and ability to hold until maturity. (These are reported at amortized cost, and their fair value is disclosed but does not directly impact the balance sheet unless impaired.)

Allowance for credit losses on loans

A contra-asset account that reduces the carrying amount of loans to their estimated net realizable value. (The balance of this allowance reflects the bank's assessment of potential loan defaults.)

Year-Over-Year Comparison

Stock Yards Bancorp, Inc. has demonstrated significant year-over-year improvement. Total interest income surged by 18.0% to $346.4 million, driving a comparable 18.2% increase in net interest income to $221.1 million. The provision for credit losses saw a notable decrease of 28.3%, indicating a healthier loan portfolio or a more optimistic outlook. Total assets grew by 5.0% to $9.31 billion, supported by a 6.7% increase in total deposits, with non-interest bearing deposits showing a strong 9.1% rise. Stockholders' equity also strengthened by 10.7% to $1.04 billion.

Filing Documents

• sybt20250930_10q.htm (10-Q) — 7412KB
• ex_879538.htm (EX-10.1) — 58KB
• ex_879539.htm (EX-31.1) — 8KB
• ex_879540.htm (EX-31.2) — 8KB
• ex_879541.htm (EX-32) — 6KB
• syblogo.jpg (GRAPHIC) — 17KB
• 0001437749-25-033206.txt ( ) — 32607KB
• sybt-20250930.xsd (EX-101.SCH) — 148KB
• sybt-20250930_def.xml (EX-101.DEF) — 957KB
• sybt-20250930_lab.xml (EX-101.LAB) — 736KB
• sybt-20250930_pre.xml (EX-101.PRE) — 1021KB
• sybt-20250930_cal.xml (EX-101.CAL) — 115KB
• sybt20250930_10q_htm.xml (XML) — 10035KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. 4 Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Income 5 Condensed Consolidated Statements of Comprehensive Income 6 Condensed Consolidated Statements of Changes in Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 9 Notes to Condensed Consolidated Financial Statements 11

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 58

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk. 89

Controls and Procedures

Item 4. Controls and Procedures. 89

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings. 89

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 89

Other Information

Item 5. Other Information 90

Exhibits

Item 6. Exhibits. 90

Signatures

Signatures 91 2 Table of Contents GLOSSARY OF ABBREVIATIONS AND ACRONYMS The acronyms and abbreviations identified in alphabetical order below are used throughout this Report on Form 10-Q: Acronym or Term Definition Acronym or Term Definition Acronym or Term Definition ACH Automatic Clearing House ESG Environmental, Social and Governance NIM Net Interest Margin (FTE) AFS Available for Sale ETR Effective Tax Rate NPV Net Present Value APIC Additional paid-in capital EVP Executive Vice President Net Interest Spread Net Interest Spread (FTE) ACL Allowance for Credit Losses FASB Financial Accounting Standards Board NM Not Meaningful AOCI Accumulated Other Comprehensive Income FDIC Federal Deposit Insurance Corporation OAEM Other Assets Especially Mentioned ASC Accounting Standards Codification FFP Federal Funds Purchased OREO Other Real Estate Owned ASU Accounting Standards Update FFS Federal Funds Sold PPP SBA Paycheck Protection Program ATM Automated Teller Machine FFTR Federal Funds Target Rate PV Present Value AUM Assets Under Management FHA Federal Housing Authority PCD Purchased Credit Deteriorated Bancorp / the Company Stock Yards Bancorp, Inc. FHC Financial Holding Company PD Probability of Default Bank / SYB Stock Yards Bank & Trust Company FHLB Federal Home Loan Bank of Cincinnati Prime The Wall Street Journal Prime Interest Rate BOLI Bank Owned Life Insurance FHLMC Federal Home Loan Mortgage Corporation Provision Provision for Credit Losses BP Basis Point - 1/100th of one percent FICA Federal Insurance Contributions Act PSU Performance Stock Unit C&D Construction and Land Development FNMA Federal National Mortgage Association ROA Return on Average Assets Captive SYB Insurance Company, Inc. FRB Federal Reserve Bank ROE Return on Average Equity C&I Commercial and Industrial FTE Fully Tax Equivalent RSA Restricted Stock Award CB Commonweal

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 (unaudited) and December 31, 2024 (in thousands, except share data) September 30, December 31, 2025 2024 Assets Cash and due from banks $ 84,357 $ 78,925 Federal funds sold and interest bearing due from banks 671,932 212,095 Total cash and cash equivalents 756,289 291,020 Mortgage loans held for sale, at fair value 6,045 6,286 Available for sale debt securities (amortized cost of $ 825,358 in 2025 and $ 1,114,961 in 2024, respectively) 737,520 990,114 Held to maturity debt securities (fair value of $ 183,811 in 2025 and $ 341,357 in 2024, respectively) 203,119 370,171 Federal Home Loan Bank stock, at cost 20,717 21,603 Loans 6,929,456 6,520,402 Allowance for credit losses on loans ( 92,160 ) ( 86,943 ) Net loans 6,837,296 6,433,459 Premises and equipment, net 116,214 112,736 Premises held for sale 1,684 2,321 Bank owned life insurance 91,252 89,370 Accrued interest receivable 28,512 27,697 Goodwill 194,074 194,074 Core deposit intangible 7,260 8,978 Customer list intangible 5,814 6,840 Other assets 301,580 308,750 Total assets $ 9,307,376 $ 8,863,419 Liabilities Deposits: Non-interest bearing $ 1,589,159 $ 1,456,138 Interest bearing 6,054,813 5,710,263 Total deposits 7,643,972 7,166,401 Securities sold under agreements to repurchase 73,149 162,967 Federal funds purchased 6,729 6,525 Subordinated debentures 26,806 26,806 Federal Home Loan Bank advances 300,000 300,000 Accrued interest payable 1,885 1,912 Other liabilities 213,691 258,332 Total liabilities 8,266,232 7,922,943 Commitments and contingent liabilities (Footnote 12) Stockholders ' equity Preferred stock, no par value. Authorized 1,000,000 shares; no shares issued or outstanding — — Common stock, no par value. Authorized 40,000,000 shares; iss

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