Stock Yards Bancorp Reports Record Third Quarter Earnings of $36.2 Million or $1.23 Per Diluted Share

Core Insights - Stock Yards Bancorp, Inc. reported record earnings of $36.2 million, or $1.23 per diluted share, for Q3 2025, a significant increase from $29.4 million, or $1.00 per diluted share, in Q3 2024, driven by solid loan and deposit growth and strong credit quality metrics [1][2]. Financial Performance - Net income increased by $6.9 million, or 23.5%, from Q3 2024 to Q3 2025 [2]. - Net interest income rose by $12.1 million, or 19%, to $77.0 million compared to Q3 2024, attributed to significant average earning asset balance growth and improved yields [5][19]. - Non-interest income decreased by $321,000, or 1%, compared to Q3 2024, but increased by $128,000, or 1%, on a linked quarter basis [8][21]. - Total non-interest expenses increased by $5.4 million, or 11%, compared to Q3 2024, reflecting higher compensation and marketing expenses [9][22]. Loan and Deposit Growth - Total loans increased by $651 million, or 10%, year-over-year, reaching $6.93 billion, with broad-based growth across all markets [6][13]. - Deposit balances expanded by $918 million, or 14%, over the past 12 months, with a notable increase in non-interest bearing deposits, which now account for 21% of total deposits [15][16]. - The company achieved a net interest margin of 3.56%, an increase of 23 basis points compared to Q3 2024, driven by earning asset growth and yield expansion [5][19]. Credit Quality - Provision for credit losses on loans was recorded at $1.6 million for Q3 2025, a decrease from $4.3 million in Q3 2024, indicating strong credit quality [7][20]. - Non-performing loans totaled $18.7 million, or 0.27% of total loans outstanding, consistent with the previous year [16]. Capital and Equity - As of September 30, 2025, the company maintained a "well-capitalized" status, with total equity to assets at 11.19% and a tangible common equity ratio of 9.16% [17][32]. - Tangible common equity per share increased to $28.30 from $24.58 a year earlier [30]. Strategic Developments - The company opened a new branch in the Indianapolis metropolitan market and plans to open two additional locations by the end of the year, expanding its geographic footprint [4]. - Wealth Management & Trust income decreased by 2% year-over-year, but assets under management increased by $163 million, or 2%, indicating positive momentum [12].