Stock Yards Bancorp, Inc.

Highlighted By Strong Loan Growth

LOUISVILLE, Ky., April 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 record earnings of $33.3 million, or $1.13 per diluted share, for the first quarter ended March 31, 2025. This compares to net income of $25.9 million, or $0.88 per diluted share, for the first quarter of 2024. Continued strong loan growth contributed to solid first quarter 2025 operating results.

(dollar amounts in thousands, except per share data)  1Q25    4Q24    1Q24  Net income $ 33,271   $ 31,694   $ 25,887  Net income per share, diluted  1.13    1.07    0.88   Net interest income $ 70,552   $ 69,969   $ 60,070  Provision for credit losses(1)  900    2,675    1,425  Non-interest income  22,996    23,507    23,271  Non-interest expenses  51,027    51,657    48,961   Net interest margin  3.46 %   3.44 %   3.20 % Efficiency ratio(2)  54.50 %   55.21 %   58.68 % Tangible common equity to tangible assets(3)  8.72 %   8.44 %   8.36 % Annualized return on average assets(4)  1.52 %   1.45 %   1.28 % Annualized return on average equity(4)  14.14 %   13.45 %   12.09 %

“We started off the year strong, delivering record first quarter earnings highlighted by strong loan growth,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “In addition to record earnings, the highlight of the quarter was total loans increasing a record $797 million, or 14%, over the last 12 months, with $126 million of growth generated during the first quarter. We experienced growth within nearly every loan category and across all markets, representing our best first quarter of net loan growth when adjusted for acquisition-related activity and our second best first quarter of loan production. Additionally, credit quality metrics remain strong and improved from the prior quarter end. While we have a lot of positive momentum to be excited about, the uncertainty in the marketplace with respect to possible tariffs and the global economy could have an impact on our business customers, and we anticipate growth to moderate.”

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“Non-interest revenue contributed to our solid operating results for the first quarter of 2025,” Hillebrand continued. “We are encouraged by the 3% increase in WM&T income compared to the linked quarter, as recent key hires are contributing to production and were able to overcome a significant equity market decline. We are excited about the opportunities our WM&T group has going forward as recent hires continue to establish themselves. Treasury management fees continued to benefit from our growing customer base. In addition, mortgage, brokerage and card income all posted meaningful contributions.”

“We continue to expand our deposit base, which grew $685 million, or 10% over the past 12 months, led mainly by a successful time deposit campaign during the first quarter. Organic growth remains our primary focus while improving our overall funding position. First quarter net interest margin expanded 26 basis points compared to the prior year quarter and two basis points on the linked quarter, boosted by strong loan growth, higher interest earning asset yields in part due to a payoff of a significant non-accrual relationship, and a reduction in our cost of funds,” said Hillebrand.

As of March 31, 2025, the Company had $9.00 billion in assets, $6.65 billion in loans and $7.29 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 MSA at the very end of March.

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

Total loans increased $797 million, or 14%, over the last 12 months, while growing $126 million, or 2%, on the linked quarter. Broad based loan growth during the quarter included increases in all markets for the fourth consecutive quarter. Nearly all loan categories expanded over the last 12 months. Commercial real estate loan growth of $334 million led all categories, benefiting from strong construction-to-permanent financing conversion over the past 12 months. The yield earned on total loans totaled 6.13% for the first quarter of 2025, with yield expansion and increased production driving an 18-basis point increase compared to the same period in 2024. Deposit balances expanded $685 million, or 10%, 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 $18.2 million, or 1%, while interest-bearing deposits grew $667 million, or 13%, led in large part by time deposit growth. On the linked quarter, total deposits expanded $128 million, or 2%. Non-interest-bearing demand accounts increased $43 million, or 3%, while total interest-bearing deposit accounts increased $84.3 million, or 1%, led by time deposit growth. Net interest income increased $10.5 million, or 17%, for the first quarter of 2025 compared to the first quarter a year ago. Net interest margin expanded 26 basis points to 3.46% for the first quarter of 2025 compared to the first quarter a year ago, boosted by the overall growth in interest earning assets and a decline in the cost of funds, marking the second consecutive quarter funding costs have decreased. On the linked quarter, net interest income increased $583,000, or 1%, while net interest margin expanded two basis points. However, adjusted for the impact of the previously mentioned benefit from non-accrual payoff activity, net interest margin was down 1 bp compared to the linked quarter, as the funding mix weighed on net interest income. Provision for credit loss expense(1) of $900,000 was recorded for the first quarter of 2025, primarily attributed to strong loan growth and increased specific reserves, which were partially offset by net recoveries and annual CECL model methodology updates. Traditional credit quality statistics remained strong at quarter-end. Non-interest income declined $275,000, or 1%, over the first quarter of 2024. Wealth Management & Trust (WM&T) income decreased $124,000, or 1%, to $10.6 million, as otherwise solid performance was muted by significant equity market declines. Treasury management fees grew $48,000, or 2%, over the last 12 months to $2.7 million. Card income decreased $174,000, or 4% over the first quarter of 2024, as a result of lower transaction volume. Total non-interest expenses increased $2.1 million, or 4%, during the first quarter of 2025 compared to the first quarter of 2024, and decreased $630,000, or 1%, on the linked quarter. Tangible common equity per share(3) was $26.01 on March 31, 2025, compared to $24.82 on December 31, 2024, and $22.50 on March 31, 2024.

Hillebrand concluded, “In April 2025, we were named to the Stephens Art Collector 2025 List. This report from Stephens looks at companies that are well-positioned over the next five-plus years to generate strong returns for shareholders over the long-term, and Stock Yards was one of only five banks named to the list. In addition, in March 2025, 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 2024. 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 reflects the dedication and commitment of our employees and our high-level of service to the communities we operate in.”

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

Net interest income, the Company’s largest source of revenue, increased by $10.5 million, or 17%, to $70.6 million. Strong organic loan growth and correlating interest income expansion contributed to significant net interest income expansion.

Total interest income increased by $14.6 million, or 15%, to $111.2 million.

Interest income and fees on loans increased $13.8 million, or 16%, over the prior year quarter. Consistent with the $788 million, or 14%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 18 basis points over the past 12 months to 6.13%. Approximately $628,000 in additional interest was collected in the first quarter of 2025 primarily related to a large loan recovery that was placed on non-accrual and partially charged off in late 2023, which provided approximately 4 bps of benefit to loan yields for the first quarter of 2025, largely offsetting the impact of the rate reductions enacted by the Federal Reserve in the latter part of 2024. Interest income on securities increased $846,000, or 10%, compared to the first quarter of 2024. While average securities balances declined $122 million, or 8%, over the past 12 months, the rate earned on securities improved 44 basis points to 2.51%, as a result of lower-yielding investment maturities. Over the past 12 months, cash flows from investment portfolio maturities and amortization have been utilized to fund loan growth and provide liquidity in lieu of redeployment into the portfolio. Average overnight funds increased $26 million for the first quarter of 2025 compared to the year ago quarter. However, corresponding interest income decreased $95,000, or 5%, over the prior year quarter due to the previously mentioned rate reductions enacted by the Federal Reserve.

Total interest expense increased $4.1 million, or 11%, to $40.6 million, but the cost of interest-bearing liabilities decreased two basis points to 2.63%.

Interest expense on deposits increased $2.7 million, or 9% over the past 12 months, attributed entirely to the time deposit category and consistent with the successful CD promotion run during the first quarter of 2025. However, the overall cost of interest-bearing deposits decreased to 2.51% in the first quarter of 2025 from 2.53% in the first quarter of 2024, due largely to the previously mentioned rate reductions enacted by the Federal Reserve. The Bank relied more on overnight and long-term fixed FHLB advances during the first quarter of 2025. Average FHLB advance balances grew $192 million, or 70%, resulting in additional FHLB expense of $1.7 million compared to the first quarter of 2024, with the cost of funds declining 27 basis points to 4.12% over the same period.

The Company recorded provision for credit losses on loans expense(1) of $900,000 for the first quarter of 2025, consistent with strong loan growth and increased specific reserves, which were partially offset by $971,000 in net recoveries and annual CECL model methodology updates. No provision for credit losses on off balance sheet exposures was recorded for the first quarter of 2025 due to relatively flat utilization trends. For the first quarter of 2024, the Company recorded $1.2 million in provision for credit losses on loans and $250,000 in provision for credit losses on off balance sheet exposures associated with Construction & Land Development and Commercial & Industrial (C&I) lines of credit expansion.

Non-interest income decreased $275,000, or 1%, to $23.0 million compared to the first quarter of 2024.

WM&T income ended the first quarter of 2025 at $10.6 million, decreasing $124,000, or 1%, over the first quarter of 2024, as positive business activity was offset by significant equity market declines. Assets under management contracted $692 million, or 9%, compared to the first quarter of 2024. Compared to the first quarter of 2024, treasury management fees increased $48,000, or 2%, to $2.7 million. Consistent treasury management growth has been driven by strong organic growth, modified fee schedules and new product sales. Card income declined $174,000, or 4% as a result of lower transaction volumes. Brokerage income grew $145,000, or 17%, ending at a record $1.0 million, attributed to the addition of a new broker and the benefit of portfolios shifting to more wrap fee-based business.

Non-interest expenses increased by $2.1 million, or 4%, compared to the first quarter of 2024, to $51.0 million.

Compensation expense increased $1.7 million, or 7%, compared to the first quarter of 2024, consistent with merit-based increases and full-time equivalent employee expansion. Employee benefits decreased $91,000, or 2%, compared to the first quarter of 2024, as lower health insurance expense more than offset increases in 401(k) matching expense and payroll tax expenses. Net occupancy and equipment expenses increased $453,000, or 12%, over the first quarter of 2024, as the current period included expenses related to increased snow removal associated with severe weather events, rent, and depreciation expense. Marketing and business development expense increased $440,000, or 41%, compared to the first quarter of 2024. The quarter over prior year quarter increase relates to elevated advertising expense tied primarily to time deposit product promotions. Other non-interest expenses declined $157,000, or 6%, compared to the first quarter of 2024, primarily due to significant declines in check and card losses in addition to the benefit of modifications made to the corporate credit card rewards program.

Financial Condition – March 31, 2025, Compared with March 31, 2024

Total assets increased $874 million, or 11%, year over year to $9.00 billion.

Total loans increased $797 million, or 14%, to $6.65 billion, with growth spread across nearly all categories and markets. Total line of credit usage ended at 46% as of March 31, 2025, compared to 39% as of March 31, 2024. C&I line of credit usage expanded to 34% as of period end, representing the highest level of utilization since 2020, however still well below pre-pandemic levels.

Total investment securities decreased $132 million, or 10%, year over year. Over the past 12 months, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.

Total deposits increased $685 million, or 10%, 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. Non-interest-bearing demand accounts increased $18 million, or 1%, however, average non-interest bearing demand accounts declined $75 million, or 5%. Total interest-bearing deposits grew $667 million, or 13%, led primarily by time deposit growth, and average total interest-bearing deposit accounts increased $536 million, or 11% over the past 12 months.

Non-performing loans totaled $16 million, or 0.24% of total loans outstanding on March 31, 2025, compared to $14 million, or 0.24% of total loans outstanding on March 31, 2024. The ratio of allowance for credit losses to loans ended at 1.34% on March 31, 2025, compared to 1.38% on March 31, 2024.

As of March 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 10.84% and the tangible common equity ratio(3) was 8.72% on March 31, 2025, compared to 10.77% and 8.36% on March 31, 2024, respectively.

In February 2025, the board of directors declared a quarterly cash dividend of $0.31 per common share. The dividend was paid April 1, 2025, to shareholders of record as of March 17, 2025.

No shares have been purchased since 2020, and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2025.

Results of Operations – First Quarter 2025, Compared with Fourth Quarter 2024

Net interest margin expanded two basis points on the linked quarter to 3.46%, boosted by strong loan growth, higher interest earning asset yields and a decline in cost of funds.

Net interest income increased $583,000, or 1%, over the prior quarter to $70.6 million. Net interest income and net interest margin benefitted from $628,000 in additional interest collected primarily related to one large loan that was placed on non-accrual and partially charged off in late 2023.

Total interest income increased $858,000, or 1%.

Interest income on loans, including fees, increased $1.8 million, or 2%. Average loans increased $216 million, or 3%, and the corresponding yield earned expanded three basis points to 6.13%. Excluding the impact of the non-accrual payoff noted above, total loan yields would have experienced a slight contraction during the first quarter of 2025, due in part to the impact of the Federal Reserve Board’s 25 basis point interest rate cut enacted in December 2024. Total interest expense increased $275,000, or 1%.

Interest expense on deposits, which decreased $1.5 million, or 4%, was more than offset by the increase in utilization of FHLB borrowings. However, maturities within the investment portfolio and the success of current CD promotions helped to eliminate the need for overnight borrowings by period end.

During the first quarter of 2025, the Company recorded $900,000 in provision for credit losses(1). During the fourth quarter of 2024, the Company recorded $2.2 million in provision for credit losses on loans and $450,000 of provision for credit losses on off-balance sheet exposures.

Non-interest income decreased $511,000, or 2%, on the linked quarter, to $23.0 million. WM&T income increased $301,000, or 3%, as tax fees and estate fees collected were able to overcome a significant equity market decline.

Non-interest expenses decreased $630,000, or 1% on the linked quarter to $51.0 million, due to decreases in compensation expense and marketing and business development expenses.

Financial Condition – March 31, 2025, Compared with December 31, 2024

Total assets increased $134 million, or 2%, on the linked quarter to $9.00 billion.

Total loans expanded $126 million, or 2%, on the linked quarter, led by increases in nearly every loan category. The Construction and Land Development segment led the growth, increasing $56 million, or 9%, on the linked quarter. Total line of credit usage was unchanged at 46% as of March 31, 2025, and at December 31, 2024. C&I line of credit usage totaled 34% as of March 31, 2025, unchanged from December 31, 2024.

Total deposits increased $128 million, or 2%, on the linked quarter. Non-interest-bearing demand accounts increased $43 million, or 3%, while total interest-bearing deposit accounts increased $84 million, or 1%.

About the Company

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $9.00 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

Stock Yards Bancorp, Inc. Financial Information (unaudited)  First Quarter 2025 Earnings Release  (In thousands unless otherwise noted)  Three Months Ended  March 31,  Income Statement Data  2025  2024   Net interest income, fully tax equivalent (5)  $ 70,636  $ 60,167  Interest income:  Loans  $ 99,600  $ 85,840  Federal funds sold and interest bearing due from banks  2,001  2,096  Mortgage loans held for sale  77  31  Federal Home Loan Bank stock  532  468  Investment securities  8,956  8,110  Total interest income  111,166  96,545  Interest expense:  Deposits  34,581  31,866  Securities sold under agreements to repurchase  814  931  Federal funds purchased  70  136  Federal Home Loan Bank advances  4,741  2,997  Subordinated debentures  408  545  Total interest expense  40,614  36,475  Net interest income  70,552  60,070  Provision for credit losses (1)  900  1,425  Net interest income after provision for credit losses  69,652  58,645  Non-interest income:  Wealth management and trust services  10,647  10,771  Deposit service charges  2,079  2,136  Debit and credit card income  4,508  4,682  Treasury management fees  2,673  2,625  Mortgage banking income  917  948  Net investment product sales commissions and fees  1,010  865  Bank owned life insurance  622  588  Other  540  656  Total non-interest income  22,996  23,271  Non-interest expenses:  Compensation  25,932  24,221  Employee benefits  5,785  5,876  Net occupancy and equipment  4,123  3,670  Technology and communication  4,828  5,069  Debit and credit card processing  1,819  1,746  Marketing and business development  1,515  1,075  Postage, printing and supplies  969  926  Legal and professional  907  1,115  FDIC insurance  1,223  1,112  Capital and deposit based taxes  700  630  Intangible amortization  914  1,052  Other  2,312  2,469  Total non-interest expenses  51,027  48,961  Income before income tax expense  41,621  32,955  Income tax expense  8,350  7,068  Net income  $ 33,271  $ 25,887   Net income per share - Basic  $ 1.13  $ 0.89  Net income per share - Diluted  1.13  0.88  Cash dividend declared per share  0.31  0.30   Weighted average shares - Basic  29,349  29,250  Weighted average shares - Diluted  29,501  29,361   March 31,  Balance Sheet Data   2025  2024   Investment securities  $ 1,246,690  $ 1,379,212  Loans  6,646,360  5,849,715  Allowance for credit losses on loans  88,814  80,897  Total assets  8,997,478  8,123,128  Non-interest bearing deposits  1,499,383  1,481,217  Interest bearing deposits  5,794,583  5,127,863  Federal Home Loan Bank advances  300,000  200,000  Accumulated other comprehensive loss  (79,840)  (95,054)  Stockholders' equity  975,473  874,711   Total shares outstanding  29,469  29,393  Book value per share (3)  $ 33.10  $ 29.76  Tangible common equity per share (3)  26.01  22.50  Market value per share  69.06  48.91   Stock Yards Bancorp, Inc. Financial Information (unaudited)  First Quarter 2025 Earnings Release   Three Months Ended  March 31,  Average Balance Sheet Data  2025  2024   Federal funds sold and interest bearing due from banks  $ 180,439  $ 153,990  Mortgage loans held for sale  5,732  4,629  Investment securities  1,455,926  1,578,401  Federal Home Loan Bank stock  30,838  21,121  Loans  6,597,388  5,808,924  Total interest earning assets  8,270,323  7,567,065  Total assets  8,893,907  8,153,364  Non-interest bearing deposits  1,426,088  1,500,602  Interest bearing deposits  5,594,740  5,058,743  Total deposits  7,020,828  6,559,345  Securities sold under agreements to repurchase  158,985  164,979  Federal funds purchased  6,514  10,161  Federal Home Loan Bank advances  466,667  274,451  Subordinated debentures  26,806  26,794  Total interest bearing liabilities  6,253,712  5,535,128  Accumulated other comprehensive loss  (86,622)  (106,763)  Total stockholders' equity  954,040  861,029   Performance Ratios  Annualized return on average assets (4)  1.52%  1.28%  Annualized return on average equity (4)  14.14%  12.09%  Net interest margin, fully tax equivalent  3.46%  3.20%  Non-interest income to total revenue, fully tax equivalent  24.56%  27.89%  Efficiency ratio, fully tax equivalent (2)  54.50%  58.68%   Capital Ratios  Total stockholders' equity to total assets (3)  10.84%  10.77%  Tangible common equity to tangible assets (3)  8.72%  8.36%  Average stockholders' equity to average assets  10.73%  10.56%  Total risk-based capital  12.85%  12.69%  Common equity tier 1 risk-based capital  11.25%  11.11%  Tier 1 risk-based capital  11.60%  11.49%  Leverage  9.98%  9.82%   Loan Segmentation  Commercial real estate - non-owner occupied  $ 1,870,352  $ 1,609,483  Commercial real estate - owner occupied  1,004,774  931,973  Commercial and industrial  1,463,746  1,293,696  Residential real estate - owner occupied  813,823  723,234  Residential real estate - non-owner occupied  381,429  360,958  Construction and land development  679,345  532,183  Home equity lines of credit  252,125  212,443  Consumer  140,009  145,022  Leases  14,460  16,619  Credit cards  26,297  24,104  Total loans and leases  $ 6,646,360  $ 5,849,715   Deposit Segmentation  Interest bearing demand  $ 2,545,858  $ 2,414,118  Savings  429,171  436,501  Money market  1,343,031  1,241,822  Time deposits  1,476,523  1,035,422  Non-Interest bearing deposits  1,499,383  1,481,217  Total deposits  $ 7,293,966  $ 6,609,080   Asset Quality Data  Non-accrual loans  $ 15,865  $ 13,984  Modifications to borrowers experiencing financial difficulty  -  -  Loans past due 90 days or more and still accruing  283  106  Total non-performing loans  16,148  14,090  Other real estate owned  85  10  Total non-performing assets  $ 16,233  $ 14,100  Non-performing loans to total loans  0.24%  0.24%  Non-performing assets to total assets  0.18%  0.17%  Allowance for credit losses on loans to total loans  1.34%  1.38%  Allowance for credit losses on loans to average loans  1.35%  1.39%  Allowance for credit losses on loans to non-performing loans  550%  574%  Net (charge-offs) recoveries  $ 971  $ 348  Net (charge-offs) recoveries to average loans (6)  0.01%  0.01%   Stock Yards Bancorp, Inc. Financial Information (unaudited)  First Quarter 2025 Earnings Release   Quarterly Comparison  Income Statement Data  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24   Net interest income, fully tax equivalent (5)  $ 70,636  $ 70,057  $ 65,064  $ 62,113  $ 60,167  Net interest income  $ 70,552  $ 69,969  $ 64,979  $ 62,022  $ 60,070  Provision for credit losses (1)  900  2,675  4,325  1,300  1,425  Net interest income after provision for credit losses  69,652  67,294  60,654  60,722  58,645  Non-interest income:  Wealth management and trust services  10,647  10,346  10,931  10,795  10,771  Deposit service charges  2,079  2,276  2,314  2,180  2,136  Debit and credit card income  4,508  5,394  5,083  4,923  4,682  Treasury management fees  2,673  2,675  2,939  2,825  2,625  Mortgage banking income  917  781  1,112  1,017  948  Net investment product sales commissions and fees  1,010  991  915  800  865  Bank owned life insurance  622  626  634  595  588  Gain (loss) on sale of premises and equipment  -  (61)  (59)  20  -  Other  540  479  928  500  656  Total non-interest income  22,996  23,507  24,797  23,655  23,271  Non-interest expenses:  Compensation  25,932  26,453  25,534  24,634  24,221  Employee benefits  5,785  4,677  4,629  5,086  5,876  Net occupancy and equipment  4,123  3,929  3,775  3,819  3,670  Technology and communication  4,828  4,744  4,500  4,894  5,069  Debit and credit card processing  1,819  1,860  1,845  1,811  1,746  Marketing and business development  1,515  2,815  1,438  1,596  1,075  Postage, printing and supplies  969  905  901  913  926  Legal and professional  907  843  968  1,185  1,115  FDIC insurance  1,223  1,171  1,095  1,161  1,112  Capital and deposit based taxes  700  653  825  673  630  Intangible amortization  914  1,330  1,052  1,051  1,052  Other  2,312  2,277  1,890  2,286  2,469  Total non-interest expenses  51,027  51,657  48,452  49,109  48,961  Income before income tax expense  41,621  39,144  36,999  35,268  32,955  Income tax expense  8,350  7,450  7,639  7,670  7,068  Net income  $ 33,271  $ 31,694  $ 29,360  $ 27,598  $ 25,887    Net income per share - Basic  $ 1.13  $ 1.08  $ 1.00  $ 0.94  $ 0.89  Net income per share - Diluted  1.13  1.07  1.00  0.94  0.88  Cash dividend declared per share  0.31  0.31  0.31  0.30  0.30   Weighted average shares - Basic  29,349  29,319  29,299  29,283  29,250  Weighted average shares - Diluted  29,501  29,493  29,445  29,383  29,361   Quarterly Comparison  Balance Sheet Data  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24   Cash and due from banks  $ 110,156  $ 78,925  $ 108,825  $ 85,441  $ 71,676  Federal funds sold and interest bearing due from banks  293,580  212,095  144,241  118,910  88,547  Mortgage loans held for sale  7,797  6,286  4,822  6,438  6,462  Investment securities  1,246,690  1,360,285  1,236,744  1,342,354  1,379,212  Federal Home Loan Bank stock  29,315  21,603  29,419  31,462  24,675  Loans  6,646,360  6,520,402  6,278,133  6,070,963  5,849,715  Allowance for credit losses on loans  88,814  86,943  85,343  82,155  80,897  Goodwill  194,074  194,074  194,074  194,074  194,074  Total assets  8,997,478  8,863,419  8,437,280  8,315,325  8,123,128  Non-interest bearing deposits  1,499,383  1,456,138  1,508,203  1,482,514  1,481,217  Interest bearing deposits  5,794,583  5,710,263  5,217,870  5,086,724  5,127,863  Securities sold under agreements to repurchase  151,424  162,967  149,852  152,948  162,528  Federal funds purchased  6,540  6,525  6,442  10,029  9,961  Federal Home Loan Bank advances  300,000  300,000  325,000  400,000  200,000  Subordinated debentures  26,806  26,806  26,806  26,806  26,806  Accumulated other comprehensive income loss  (79,840)  (91,151)  (75,273)  (94,980)  (95,054)  Stockholders' equity  975,473  940,476  934,094  894,535  874,711   Total shares outstanding  29,469  29,431  29,414  29,388  29,393  Book value per share (3)  $ 33.10  $ 31.96  $ 31.76  $ 30.44  $ 29.76  Tangible common equity per share (3)  26.01  24.82  24.58  23.22  22.50  Market value per share  69.09  71.61  61.99  49.67  48.91   Capital Ratios  Total stockholders' equity to total assets (3)  10.84%  10.61%  11.07%  10.76%  10.77%  Tangible common equity to tangible assets (3)  8.72%  8.44%  8.79%  8.42%  8.36%  Average stockholders' equity to average assets  10.73%  10.76%  10.86%  10.65%  10.56%  Total risk-based capital  12.85%  12.73%  12.73%  12.62%  12.69%  Common equity tier 1 risk-based capital  11.25%  11.17%  11.16%  11.07%  11.11%  Tier 1 risk-based capital  11.60%  11.52%  11.52%  11.43%  11.49%  Leverage  9.98%  9.94%  10.05%  9.95%  9.82%   Stock Yards Bancorp, Inc. Financial Information (unaudited)  First Quarter 2025 Earnings Release   Quarterly Comparison  Average Balance Sheet Data  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24   Federal funds sold and interest bearing due from banks  $ 180,439  $ 251,209  $ 148,818  $ 158,512  $ 153,990  Mortgage loans held for sale  5,732  6,335  4,862  6,204  4,629  Investment securities  1,455,926  1,436,748  1,424,815  1,491,865  1,578,401  Federal Home Loan Bank stock  30,838  23,475  31,193  29,735  21,121  Loans  6,597,388  6,381,869  6,174,309  5,973,801  5,808,924  Total interest earning assets  8,270,323  8,099,636  7,783,997  7,660,117  7,567,065  Total assets  8,893,907  8,718,416  8,384,605  8,246,735  8,153,364  Non-interest bearing deposits  1,426,088  1,492,624  1,510,515  1,515,708  1,500,602  Interest bearing deposits  5,594,740  5,531,441  5,047,771  4,971,804  5,058,743  Total deposits  7,020,828  7,024,065  6,558,286  6,487,512  6,559,345  Securities sold under agreement to repurchase  158,985  148,414  156,865  147,327  164,979  Federal funds purchased  6,514  6,508  8,480  10,127  10,161  Federal Home Loan Bank advances  466,667  300,000  461,141  441,484  274,451  Subordinated debentures  26,806  26,806  26,806  26,806  26,794  Total interest bearing liabilities  6,253,712  6,013,169  5,701,063  5,597,548  5,535,128  Accumulated other comprehensive loss  (86,622)  (81,585)  (88,362)  (99,640)  (95,747)  Total stockholders' equity  954,040  937,782  910,274  878,233  861,029   Performance Ratios  Annualized return on average assets (4)  1.52%  1.45%  1.39%  1.35%  1.28%  Annualized return on average equity (4)  14.14%  13.45%  12.83%  12.64%  12.09%  Net interest margin, fully tax equivalent  3.46%  3.44%  3.33%  3.26%  3.20%  Non-interest income to total revenue, fully tax equivalent  24.56%  25.12%  27.59%  27.58%  27.89%  Efficiency ratio, fully tax equivalent (2)  54.50%  55.21%  53.92%  57.26%  58.68%   Loans Segmentation  Commercial real estate - non-owner occupied  $ 1,870,352  $ 1,835,935  $ 1,686,448  $ 1,652,614  $ 1,609,483  Commercial real estate - owner occupied  1,004,774  1,002,853  949,538  943,013  931,973  Commercial and industrial  1,463,746  1,438,654  1,379,293  1,356,970  1,293,696  Residential real estate - owner occupied  813,823  805,080  783,337  749,870  723,234  Residential real estate - non-owner occupied  381,429  382,744  381,051  365,846  360,958  Construction and land development  679,345  623,005  674,918  586,820  532,183  Home equity lines of credit  252,125  247,433  236,819  223,304  212,443  Consumer  140,009  144,644  143,684  151,221  145,022  Leases  14,460  15,514  16,760  17,258  16,619  Credit cards  26,297  24,540  26,285  24,047  24,104  Total loans and leases  $ 6,646,360  $ 6,520,402  $ 6,278,133  $ 6,070,963  $ 5,849,715   Deposit Segmentation  Interest bearing demand  $ 2,545,858  $ 2,649,142  $ 2,361,192  $ 2,422,828  $ 2,414,118  Savings  429,171  419,355  420,772  429,095  436,501  Money market  1,343,031  1,403,978  1,259,484  1,177,995  1,241,822  Time deposits  1,476,523  1,237,788  1,176,422  1,056,806  1,035,422  Non-Interest bearing deposits  1,499,383  1,456,138  1,508,203  1,482,514  1,481,217  Total deposits  $ 7,293,966  $ 7,166,401  $ 6,726,073  $ 6,569,238  $ 6,609,080   Asset Quality Data  Non-accrual loans  $ 15,865  $ 21,727  $ 16,288  $ 17,371  $ 13,984  Modifications to borrowers experiencing financial difficulty  -  -  -  -  -  Loans past due 90 days or more and still accruing  283  487  870  186  106  Total non-performing loans  16,148  22,214  17,158  17,557  14,090  Other real estate owned  85  10  10  10  10  Total non-performing assets  $ 16,233  $ 22,224  $ 17,168  $ 17,567  $ 14,100  Non-performing loans to total loans  0.24%  0.34%  0.27%  0.29%  0.24%  Non-performing assets to total assets  0.18%  0.25%  0.20%  0.21%  0.17%  Allowance for credit losses on loans to total loans  1.34%  1.33%  1.36%  1.35%  1.38%  Allowance for credit losses on loans to average loans  1.35%  1.36%  1.38%  1.38%  1.39%  Allowance for credit losses on loans to non-performing loans  550%  391%  497%  468%  574%  Net (charge-offs) recoveries  $ 971  $ (625)  $ (1,137)  $ 183  $ 348  Net (charge-offs) recoveries to average loans (6)  0.01%  -0.01%  -0.02%  0.00%  0.01%   Other Information  Total WM&T assets under management (in millions)  $ 6,804  $ 7,066  $ 7,317  $ 7,479  $ 7,496  Full-time equivalent employees  1,089  1,080  1,068  1,051  1,062   (1) - Detail of Provision for credit losses follows:  Quarterly Comparison  (in thousands)  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24  Provision for credit losses - loans  $ 900  $ 2,225  $ 4,325  $ 1,075  $ 1,175  Provision for credit losses - off balance sheet exposures  -  450  -  225  250  Total provision for credit losses  $ 900  $ 2,675  $ 4,325  $ 1,300  $ 1,425    (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.  Quarterly Comparison  (Dollars in thousands)  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24  Total non-interest expenses (a)  $ 51,027  $ 51,657  $ 48,452  $ 49,109  $ 48,961   Total net interest income, fully tax equivalent  $ 70,636  $ 70,057  $ 65,064  $ 62,113  $ 60,167  Total non-interest income  22,996  23,507  24,797  23,655  23,271  Total revenue - Non-GAAP (b)  93,632  93,564  89,861  85,768  83,438   Efficiency ratio - Non-GAAP (a/b)  54.50%  55.21%  53.92%  57.26%  58.68%    (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:   Quarterly Comparison  (In thousands, except per share data)  3-31-25  12-31-24  9-30-24  6-30-24  3-31-24  Total stockholders' equity - GAAP (a)  $ 975,473  $ 940,476  $ 934,094  $ 894,535  $ 874,711  Less: Goodwill  (194,074)  (194,074)  (194,074)  (194,074)  (194,074)  Less: Core deposit and other intangibles  (14,904)  (15,818)  (17,149)  (18,201)  (19,252)  Tangible common equity - Non-GAAP (c)  $ 766,495  $ 730,584  $ 722,871  $ 682,260  $ 661,385   Total assets - GAAP (b)  $ 8,997,478  $ 8,863,419  $ 8,437,280  $ 8,315,325  $ 8,123,128  Less: Goodwill  (194,074)  (194,074)  (194,074)  (194,074)  (194,074)  Less: Core deposit and other intangibles  (14,904)  (15,818)  (17,149)  (18,201)  (19,252)  Tangible assets - Non-GAAP (d)  $ 8,788,500  $ 8,653,527  $ 8,226,057  $ 8,103,050  $ 7,909,802   Total stockholders' equity to total assets - GAAP (a/b)  10.84%  10.61%  11.07%  10.76%  10.77%  Tangible common equity to tangible assets - Non-GAAP (c/d)  8.72%  8.44%  8.79%  8.42%  8.36%   Total shares outstanding (e)  29,469  29,431  29,414  29,388  29,393   Book value per share - GAAP (a/e)  $ 33.10  $ 31.96  $ 31.76  $ 30.44  $ 29.76  Tangible common equity per share - Non-GAAP (c/e)  26.01  24.82  24.58  23.22  22.50   (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.

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