Stock Yards Bancorp (SYBT) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $36.2 million ($1.23 per diluted share), up 23% year-over-year, driven by strong loan and deposit growth and stable credit quality.

• For the nine months ended September 30, 2025, net income was $103.5 million, up 25% year-over-year, with diluted EPS of $3.51.

• Sixth consecutive quarter of loan growth across all markets, with notable milestones in Cincinnati and Indianapolis.

• Diversified non-interest income streams, with mortgage and brokerage businesses growing, while wealth management income declined but AUM increased.

• Total assets reached $9.31 billion, a 5% increase from year-end 2024, driven by strong loan and deposit growth.

Financial highlights

• Net interest income (FTE) for Q3 2025 was $77.1 million, up 19% year-over-year; NIM increased to 3.56%.

• Total loans grew $651 million (10%) year-over-year to $6.93 billion, led by CRE, residential real estate, C&I lines, and C&D segments.

• Deposit balances rose $918 million (14%) year-over-year to $7.64 billion, with notable growth in time deposits.

• Non-interest income decreased 1% in Q3 2025 to $24.5 million, while non-interest expenses increased 11% to $53.8 million, mainly due to higher compensation.

• Provision for credit losses on loans was $1.6 million, down from $4.3 million in Q3 2024.

Outlook and guidance

• Management expects continued loan and deposit growth, but notes potential for increased pricing pressure and competition as interest rates are projected to decline further in late 2025 and early 2026.

• Net interest margin expected to remain stable, but potential interest rate cuts could pose headwinds.

• Continued focus on organic growth and strengthening the funding base, with two new branch locations planned by year-end.

• Asset sensitivity remains, with net interest income projected to benefit from rising rates and decline if rates fall.