Executive Summary

Record Q2 results: net income $34.0M and $1.15 diluted EPS, driven by robust loan growth (+$204M q/q; +$779M y/y) and 7bp NIM expansion to 3.53% .
EPS beat Wall Street: $1.15 actual vs $1.053 consensus (+9%); revenue slightly above consensus ($95.65M actual vs $95.54M) [Values retrieved from S&P Global]*.
Non-interest income rose 6% q/q to $24.3M on swap fees, treasury management, and card income; efficiency improved to 53.83% vs 54.50% in Q1 .
Outlook: management expects NIM “to remain steady” amid stronger deposit competition in 2H, while credit quality remains solid (NPLs 0.26% of loans) .

What Went Well and What Went Wrong

What Went Well

Broad-based loan and deposit growth: loans +$779M y/y to $6.85B; deposits +$938M y/y to $7.51B; every market contributed for the fifth straight quarter .
Margin expansion: NIM up 27bp y/y and 7bp q/q to 3.53%, with earning asset growth and better-than-expected funding costs .
Non-interest income strength: swap fees ($557K), treasury management fees ($3.0M, +6% y/y record), and brokerage income (+23%) supported results .

Management quote: “Record second quarter earnings… fueled in large part by robust loan growth and net interest margin expansion” — James A. (Ja) Hillebrand, CEO .

What Went Wrong

Higher operating expenses: non-interest expenses +$1.7M q/q and +$3.6M y/y; compensation (+11% y/y) and marketing (+22% y/y) were key drivers .
Provision increased: $2.175M total, reflecting strong loan growth, slightly deteriorating economic forecast, and increased specific reserves .
WM&T pressure: wealth management & trust income -3% y/y to $10.5M; AUM down $286M y/y despite improving q/q .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$69.969	$70.552	$73.473
Non-Interest Income ($USD Millions)	$23.507	$22.996	$24.348
Total Revenue - Non-GAAP (FTE NII + Non-Interest) ($USD Millions)	$93.564	$93.632	$97.908
Net Income ($USD Millions)	$31.694	$33.271	$34.024
Diluted EPS ($USD)	$1.07	$1.13	$1.15
Net Interest Margin (%)	3.44%	3.46%	3.53%
Efficiency Ratio (%)	55.21%	54.50%	53.83%
ROAA (Annualized) (%)	1.45%	1.52%	1.52%
ROAE (Annualized) (%)	13.45%	14.14%	13.91%

Segment and KPI breakdown:

Non-Interest Income Components ($USD Millions)	Q4 2024	Q1 2025	Q2 2025
Wealth Mgmt & Trust (WM&T)	$10.346	$10.647	$10.483
Treasury Management Fees	$2.675	$2.673	$3.005
Debit & Credit Card Income	$5.394	$4.508	$4.837
Mortgage Banking	$0.781	$0.917	$1.094
Brokerage/Investment Product Fees	$0.991	$1.010	$0.980
Bank-Owned Life Insurance	$0.626	$0.622	$0.629
Other (incl. swap fees)	$0.479	$0.540	$1.177

Balance Sheet & Credit KPIs	Q4 2024	Q1 2025	Q2 2025
Assets ($USD Billions)	$8.86	$9.00	$9.21
Loans ($USD Billions)	$6.52	$6.65	$6.85
Deposits ($USD Billions)	$7.17	$7.29	$7.51
Non-Performing Loans / Loans (%)	0.34%	0.24%	0.26%
ACL / Loans (%)	1.33%	1.34%	1.32%
Tangible Common Equity / Tangible Assets (%)	8.44%	8.72%	8.86%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Net Interest Margin	2H 2025	Anticipated continued expansion into 2025 (Q4 commentary)	Expect NIM to remain steady; deposit competition stronger in 2H	Moderated (expansion → steady)
Loan Growth	2025	Anticipate growth to moderate (Q1 outlook)	Loan production and demand remained steady; broad-based growth in Q2	Better-than-feared near term
Dividend	Regular	$0.31 declared for Q2 (paid Jul 1)	Increased to $0.32 in Aug for Q3 payment	Raised
Share Repurchase Authorization	2025–2027	Prior plan expired May 2025	New plan to repurchase up to 1M shares; 2-year term	Initiated

Note: No quantitative revenue/expense/tax-rate ranges provided; outlook was qualitative.

Earnings Call Themes & Trends

Earnings call transcript for Q2 2025 was not available in our document set; themes below reflect multi-quarter management commentary from earnings releases.

Topic	Previous Mentions (Q4 2024)	Previous Mentions (Q1 2025)	Current Period (Q2 2025)	Trend
Net Interest Margin	Expansion continued; +11bp q/q; expected to continue into 2025	+2bp q/q; funding costs declined; one-off non-accrual payoff aided yields	+7bp q/q to 3.53%; expect steady NIM with stronger deposit competition	Stabilizing
Loan Growth	Record q/q +$242M; broad-based; Indy surpassed $1B	+$126M q/q; all markets; mgmt anticipated moderation	+$204M q/q; fifth straight quarter with growth in all markets	Strong/ongoing
Deposits & Pricing	Mix shifted to higher-cost deposits; strong q/q growth	CD campaign drove growth; overall cost of interest-bearing deposits fell y/y	Deposits +$213M q/q; expect stronger competition in 2H	Competitive pressures rising
Wealth Mgmt & AUM	WM&T income +2% y/y; net new business slowed	WM&T income +3% q/q; AUM -9% y/y; equity market decline	WM&T income -3% y/y; AUM improved after 3 quarters of decline	Improving AUM, mixed income
Credit Quality	NPLs 0.34%; ACL/Loans 1.33%	NPLs 0.24%; ACL/Loans 1.34%	NPLs 0.26%; ACL/Loans 1.32%	Solid/stable

Management Commentary

“We concluded the first half of 2025 with strong momentum, delivering record second quarter earnings… robust loan growth and net interest margin expansion.” — James A. (Ja) Hillebrand, CEO .
“We continue to successfully expand our deposit base… non-interest bearing deposits continue to represent over 20% of total deposits… We expect our net interest margin to remain steady as we anticipate deposit competition to be stronger in the second half of the year.” — Hillebrand .
“Treasury management fees benefited… mortgage, brokerage, and card income all made meaningful contributions.” — Hillebrand .
“Having an active share repurchase authorization in place allows us the flexibility to buy back stock when it aligns with our capital allocation strategy.” — Hillebrand .

Q&A Highlights

Earnings call transcript for Q2 2025 was not available; Q&A details could not be reviewed in this dataset. Themes above reflect prepared remarks from company earnings releases .

Estimates Context

Quarter	EPS Actual ($)	EPS Consensus ($)	Surprise ($ / %)	Revenue Actual ($M)	Revenue Consensus ($M)	Surprise ($M / %)
Q2 2025	1.15	1.05333*	+0.09667 / +9%*	95.646*	95.540*	+0.106 / +0.1%*
Q1 2025	1.13	0.99333*	+0.13667 / +13.8%*	92.648*	92.840*	-0.192 / -0.2%*
Q4 2024	1.07	0.99*	+0.08 / +8.1%*	90.801*	90.980*	-0.179 / -0.2%*

Values with asterisks were retrieved from S&P Global.

Implications: Q2 EPS beat was notable; revenue was in line. Recent pattern shows consistent EPS outperformance vs consensus, with revenues near estimates. Estimate revisions may modestly trend higher for EPS given margin resilience and loan growth.

Key Takeaways for Investors

Operating momentum intact: strong loan production across markets, steady-to-improving NIM, and diversified fee growth support earnings durability .
Credit quality remains a differentiator: low NPL ratio (0.26%) and ACL/Loans 1.32%; net charge-offs minimal, underpinning risk-adjusted profitability .
Watch deposit competition: management cautions stronger competition in 2H; monitor pricing pressure and time-deposit mix on funding costs and NIM trajectory .
Capital return optionality: new 1M-share repurchase authorization and dividend increase to $0.32 in August signal confidence in capital and earnings power .
WM&T stabilizing: AUM up q/q after prior declines; incremental fee growth from treasury and brokerage complements spread income .
Near-term trading: EPS beats and a “steady NIM” outlook are supportive; sensitivity to funding cost trends and macro (competition, rates) warrant vigilance .
Medium-term thesis: ongoing organic growth, disciplined credit, and balanced revenue mix position SYBT well; track expense discipline given higher compensation and marketing outlays .

Citations:

Q2 press release and financial tables .
Q2 8-K and exhibits .
Q1 press release and financial tables .
Q4 press release and financial tables .
Dividend announcements and RJ Community Bankers Cup .

Stock Yards Bancorp, Inc. (SYBT)·Q2 2025 Earnings Summary