Stock Yards Bancorp(SYBT) - 2025 Q3 - Quarterly Results

Financial Performance - Stock Yards Bancorp reported record net income of $36.2 million, or $1.23 per diluted share, for Q3 2025, up from $29.4 million, or $1.00 per diluted share, in Q3 2024, representing a 23% increase in net income year-over-year[2] - Net income for Q3 2025 was $36,241,000, up from $29,360,000 in the third quarter of 2024, representing a year-over-year increase of 23.5%[30] - Net income for Q3 2025 was $36,241 million, an increase of 6.5% from $34,024 million in Q2 2025[38] - Basic net income per share rose to $1.23, up from $1.16 in the previous quarter, reflecting a 6.0% increase[38] Loan and Deposit Growth - Total loans increased by $651 million, or 10%, year-over-year, reaching $6.93 billion, with commercial real estate loans leading the growth at $403 million[7] - Total loans and leases increased to $6,929,456,000 in Q3 2025, compared to $6,278,133,000 in Q3 2024, reflecting a growth of 10.4% year-over-year[35] - Total deposits grew by $918 million, or 14%, over the past 12 months, with non-interest-bearing deposits accounting for 21% of total deposits[16] - Total deposits rose to $7,541,304,000 as of September 30, 2025, up from $6,558,286,000 a year prior, representing a 14.9% increase[33] Interest Income and Margin - Net interest income rose by $12.1 million, or 19%, to $77.0 million compared to Q3 2024, driven by significant growth in average earning assets and improved yields[6] - Total interest income rose by $5.3 million, or 5%, with interest income on loans increasing by $4.2 million, or 4%, driven by an average loan increase of $127 million, or 2%, and a yield of 6.19%[23] - Net interest income for the third quarter of 2025 was $77,119,000, compared to $65,064,000 in the same quarter of 2024, reflecting a significant year-over-year increase[30] - Net interest margin expanded by 23 basis points to 3.56% for Q3 2025, supported by strong loan growth and higher yields on interest-earning assets[20] Non-Interest Income and Expenses - Non-interest income decreased by $321,000, or 1%, to $24.5 million compared to Q3 2024, with a notable decline in Wealth Management & Trust income attributed to lower non-recurring estate fees[10][13] - Total non-interest expenses increased by $5.4 million, or 11%, to $53.8 million compared to Q3 2024, primarily due to higher compensation expenses[11] - Non-interest income for Q3 2025 was $24,476,000, slightly up from $24,348,000 in Q2 2025, showing a 0.5% increase[37] Asset Growth - As of September 30, 2025, total assets increased by $870 million, or 10%, year-over-year, reaching $9.31 billion[14] - Total assets as of September 30, 2025, reached $9,216,803,000, up from $8,384,605,000 a year earlier, indicating a 9.9% year-over-year increase[33] - Total assets increased to $9,307,376 million, compared to $9,208,986 million in Q2 2025, marking a growth of 1.07%[38] Credit Quality - The company maintained a strong credit quality with non-performing loans totaling $18.7 million, or 0.27% of total loans outstanding, consistent with the previous year[17] - Non-performing loans to total loans remained stable at 0.27% in Q3 2025, consistent with the previous year[36] - The provision for credit losses was $1,975,000 in Q3 2025, down from $2,175,000 in Q2 2025, indicating a decrease in expected credit losses[37] Shareholder Returns - The board of directors increased the quarterly cash dividend to $0.32 per common share, paid on October 1, 2025[19] - The company declared a cash dividend of $0.32 per share for the third quarter of 2025, compared to $0.31 per share in the same quarter of 2024[32] - Book value per share increased to $35.32 as of September 30, 2025, compared to $31.76 in the previous year[32] Operational Efficiency - The efficiency ratio improved to 52.99% in Q3 2025 from 53.92% in Q2 2025, indicating enhanced operational efficiency[35] - Marketing and business development expenses increased by $449,000, or 31%, compared to the third quarter of 2024, primarily due to elevated advertising expenses and increased customer entertainment costs[22]