Executive Summary

Record quarter: Net income $33.3M and diluted EPS $1.13, driven by strong organic loan growth and modestly higher net interest margin; EPS beat consensus by ~$0.14 while revenue was roughly in line to slightly below S&P Global’s bank “revenue” definition . EPS estimate $0.99 vs. actual $1.13; revenue estimate $92.84M vs. actual $92.65M*.
Net interest margin expanded to 3.46% (up 26 bps YoY, +2 bps QoQ) on asset mix/yield improvements and lower funding costs; efficiency ratio improved to 54.50% (vs. 55.21% in Q4 and 58.68% in Q1’24) .
Loans rose $797M YoY (+14%) and $126M QoQ (+2%); deposits up $685M YoY (+10%) and $128M QoQ (+2%), aided by a successful time deposit campaign; credit quality remained strong with NPLs at 0.24% of loans .
Management flagged external risks (tariffs/global economy) and expects growth to moderate; quarterly dividend maintained at $0.31 (paid Apr 1) .

What Went Well and What Went Wrong

What Went Well

“Record first quarter earnings highlighted by strong loan growth” with $126M QoQ and $797M YoY loan expansion; growth broad-based across nearly all categories and markets .
NIM improvement and funding progress: NIM 3.46% (+26 bps YoY, +2 bps QoQ) with reduced cost of funds and a payoff on a significant non‑accrual, while deposits grew $128M QoQ (+2%) and $685M YoY (+10%) .
Non-interest income resilience: WM&T rose 3% QoQ despite equity market declines; treasury management and mortgage/brokerage/card income contributed; CEO highlighted recent WM&T hires and opportunities .

What Went Wrong

Non-interest income down 1% YoY (WM&T −1% YoY; card income −4% YoY on lower volumes); AUM contracted 9% YoY on market performance .
Funding mix headwind: Adjusted for the non‑accrual payoff, NIM would have been down ~1 bp QoQ as higher-cost deposits/FHLB usage weighed; interest expense on FHLB advances up $1.7M YoY with average balances +$192M .
Management cautioned that “uncertainty … with respect to possible tariffs and the global economy could have an impact on our business customers,” and anticipates growth moderation near term .

Financial Results

Metric	Q1 2024	Q4 2024	Q1 2025
Diluted EPS ($)	$0.88	$1.07	$1.13
Net Interest Income ($MM)	$60.07	$69.97	$70.55
Non-Interest Income ($MM)	$23.27	$23.51	$22.996
Total Revenue – Non‑GAAP ($MM)	$83.44	$93.56	$93.63
Net Interest Margin (%)	3.20%	3.44%	3.46%
Efficiency Ratio (%)	58.68%	55.21%	54.50%
Provision for Credit Losses ($MM)	$1.425	$2.675	$0.900
ROAA (%)	1.28%	1.45%	1.52%
ROAE (%)	12.09%	13.45%	14.14%

Segment and balance mix

Loans ($MM)	Q1 2024	Q4 2024	Q1 2025
CRE – Non‑Owner	$1,609.5	$1,835.9	$1,870.4
CRE – Owner	$931.97	$1,002.85	$1,004.77
Commercial & Industrial	$1,293.70	$1,438.65	$1,463.75
Construction & Land Dev.	$532.18	$623.01	$679.35
Total Loans	$5,849.7	$6,520.4	$6,646.4

Deposits ($MM)	Q1 2024	Q4 2024	Q1 2025
Interest‑bearing Demand	$2,414.1	$2,649.1	$2,545.9
Money Market	$1,241.8	$1,404.0	$1,343.0
Time Deposits	$1,035.4	$1,237.8	$1,476.5
Non‑interest Demand	$1,481.2	$1,456.1	$1,499.4
Total Deposits	$6,609.1	$7,166.4	$7,294.0

KPIs and asset quality

KPI	Q1 2024	Q4 2024	Q1 2025
Tangible Common Equity / Tangible Assets (%)	8.36%	8.44%	8.72%
Tangible Book Value/Share ($)	$22.50	$24.82	$26.01
Non‑performing Loans / Loans (%)	0.24%	0.34%	0.24%
Allowance for Credit Losses / Loans (%)	1.38%	1.33%	1.34%
WM&T AUM ($BN)	$7.50	$7.07	$6.80

Notes: Total Revenue – Non‑GAAP equals net interest income (FTE) + non‑interest income per company footnote .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Growth Outlook	2025	Not provided	Management anticipates growth to moderate due to macro/tariff uncertainty	N/A (qualitative)
Dividend per Share	Q1 2025	$0.31 (Q4 precedent)	$0.31 declared; paid Apr 1, 2025	Maintained
Funding/Deposits	2025	Not provided	Continued focus on organic deposit growth and improving funding mix	N/A (qualitative)

No explicit numerical guidance on revenue, NIM, opex, tax rate, or segment growth was provided in filings/press releases for Q1 2025 .

Earnings Call Themes & Trends

Note: An earnings call transcript for Q1 2025 was not found in the document catalog; analysis reflects management’s Q1 press release plus prior quarter releases.

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Loan Growth & Line Utilization	Broad-based; loans +$207M QoQ; line utilization up to 43% (C&I ~32%)	Loans +$242M QoQ; line utilization 46% (C&I 34%)	Loans +$126M QoQ; line utilization 46% (C&I 34%)	Sustained growth; utilization elevated
Net Interest Margin	3.33% (+7 bps QoQ)	3.44% (+11 bps QoQ)	3.46% (+2 bps QoQ, +26 bps YoY)	Continued incremental expansion
Funding Costs/Mix	Deposit costs rising but pace slowing; mix shifting to higher-cost deposits	Deposit costs up YoY; reduced FHLB overnight; mix improved QoQ	Deposit cost down YoY (2.51% vs. 2.53%); greater FHLB usage YoY	Mixed: overall cost easing; FHLB reliance higher YoY
Non-Interest Income	WM&T strength, treasury & card records	WM&T +2% YoY; other income down on non-recurring items in prior year	WM&T −1% YoY but +3% QoQ; treasury/mortgage/brokerage/card contributed	Stable; modest YoY pressure, QoQ resilience
Asset Quality	NPLs ~0.27% of loans	NPLs 0.34% of loans; net charge-offs −0.01%	NPLs 0.24% of loans; net recoveries $0.971M	Improved vs. Q4
Macro/Tariffs	Not highlighted	Expect moderation in 2025	Tariff/global economy uncertainty could impact customers	Caution rising

Management Commentary

“We started off the year strong, delivering record first quarter earnings highlighted by strong loan growth… growth within nearly every loan category and across all markets… credit quality metrics remain strong… we anticipate growth to moderate.” — James A. (Ja) Hillebrand, Chairman & CEO .
“We continue to expand our deposit base… led mainly by a successful time deposit campaign… NIM expanded 26 bps YoY and 2 bps QoQ… boosted by strong loan growth, higher earning asset yields… and a reduction in our cost of funds.” — CEO .
“We are encouraged by the 3% increase in WM&T income compared to the linked quarter… recent key hires are contributing… Treasury management fees continued to benefit from our growing customer base.” — CEO .

Q&A Highlights

An earnings-call transcript for Q1 2025 was not available in the document catalog or IR site; therefore, no Q&A themes or clarifications beyond the press release can be cited for this quarter [functions ListDocuments returned none; IR page shows releases but no transcript link: https://stockyardsbancorp.q4ir.com/financials/quarterly-results/default.aspx].

Estimates Context

Metric	Q1 2025 Consensus	Q1 2025 Actual
Primary EPS Consensus Mean ($)	0.993*	1.13*
Revenue Consensus Mean ($MM)	92.84*	92.65*

Number of estimates: EPS (6), Revenue (5)*.
Outcome: EPS beat; revenue essentially in line to slight miss under S&P Global’s definition*.
Values retrieved from S&P Global.*

Key Takeaways for Investors

EPS beat driven by robust loan growth, modest NIM expansion, and lower provision; operating leverage improved with efficiency ratio at 54.5% .
Funding mix remains the swing factor: deposit cost easing helped NIM, but elevated FHLB usage adds expense; watch deposit campaign pace and terming of borrowings .
Credit quality tailwinds: NPLs fell back to 0.24% of loans and net recoveries supported a smaller provision; maintain vigilance on C&I/CL&D utilization at cyclical highs .
Non-interest income resilient QoQ despite market headwinds; WM&T hiring should aid production, but AUM sensitivity to equities persists .
Tactical stance: near-term upside tied to sustaining NIM gains and deposit growth while moderating loan growth; qualitative caution on tariffs/global macro may temper growth expectations .
Dividend maintained at $0.31; capital ratios improved; tangible book per share up to $26.01 supports valuation floor .
Estimate trajectory: Expect modest EPS upward bias if NIM holds and credit stays benign; revenue definitions differ for banks—track GAAP vs FTE total revenue and investor services contributions*.

Citations:
Press release and 8‑K Q1 2025:
Prior quarters (Q4/Q3 2024):
Dividend press release:
IR site reference: https://stockyardsbancorp.q4ir.com/financials/quarterly-results/default.aspx

Estimates note: Values retrieved from S&P Global.*

Stock Yards Bancorp, Inc. (SYBT)·Q1 2025 Earnings Summary