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SY

Stock Yards Bancorp, Inc. (SYBT)·Q3 2025 Earnings Summary

Executive Summary

  • Record Q3 2025 results: net income $36.2M and diluted EPS $1.23, with NIM up to 3.56% and efficiency ratio improved to 52.99% driven by strong loan growth and stable funding costs .
  • EPS beat Wall Street consensus by 6% (actual $1.23 vs $1.16*), while revenue modestly missed on SPGI’s definition ($99.5M* actual vs $99.9M* consensus); estimate counts: 6 EPS and 5 revenue contributors* [Q3 2025]*.
  • Deposits rose $918M YoY (+14%) with non-interest-bearing deposits at 21% of total; loans rose $651M YoY (+10%), credit quality remained strong with NPLs at 0.27% of loans .
  • Management expects NIM to remain stable but flagged potential headwinds if rate cuts materialize; dividend increased to $0.32 in August, and two new branches expected by year-end as Cincinnati surpassed $1B loans .

What Went Well and What Went Wrong

What Went Well

  • Broad-based loan growth across all markets for a sixth consecutive quarter; Cincinnati surpassed $1B in total loans for the first time since entering the market in 2007 .
  • Net interest margin expansion (+23 bps YoY; +3 bps QoQ) with net interest income up 19% YoY and 5% QoQ, aided by earning asset growth and lower cost of funds .
  • Fee revenue breadth: mortgage banking and brokerage up YoY; WM&T AUM rose for a second consecutive quarter (+$163M YoY) despite lower non-recurring estate fees; management: “diversified sources of fee income continue to make meaningful contributions” .

What Went Wrong

  • Non-interest income declined 1% YoY and was constrained QoQ by absence of swap fees recorded in Q2 2025; “other” non-interest income fell $613K QoQ and was flat overall .
  • Operating expenses increased 11% YoY and 2% QoQ, primarily from higher compensation/bonus accruals, marketing, and other expense categories (credit card rewards, insurance) .
  • Management flagged potential NIM headwinds from prospective rate cuts before year-end and acknowledged elevated loan payoffs tempering growth, though underlying loan demand remains steady .

Financial Results

Core financials by quarter

MetricQ1 2025Q2 2025Q3 2025
Net Interest Income ($USD Millions)$70.6 $73.5 $77.0
Non-Interest Income ($USD Millions)$23.0 $24.3 $24.5
Total Revenue - Non-GAAP (FTE) ($USD Millions)$93.6 $97.9 $101.6
Net Income ($USD Millions)$33.3 $34.0 $36.2
Diluted EPS ($USD)$1.13 $1.15 $1.23

Margins and returns

MetricQ1 2025Q2 2025Q3 2025
Net Interest Margin (FTE)3.46% 3.53% 3.56%
Efficiency Ratio (FTE)54.50% 53.83% 52.99%
ROA (Annualized)1.52% 1.52% 1.56%
ROE (Annualized)14.14% 13.91% 14.16%

Estimates comparison (SPGI)

MetricQ1 2025Q2 2025Q3 2025
EPS Actual ($)1.13*1.15*1.23*
EPS Consensus ($)0.993*1.053*1.16*
EPS Surprise (%)+13.8%*+9.2%*+6.0%*
Revenue Actual ($USD Millions)92.648*95.646*99.538*
Revenue Consensus ($USD Millions)92.840*95.540*99.900*
Revenue Surprise (%)-0.2%*+0.1%*-0.4%*
# of EPS Estimates——6*
# of Revenue Estimates——5*

Values retrieved from S&P Global.*

Non-interest income breakdown

Metric ($USD Millions)Q1 2025Q2 2025Q3 2025
WM&T Income$10.65 $10.48 $10.70
Treasury Mgmt Fees$2.67 $3.01 $2.92
Mortgage Banking$0.92 $1.09 $1.25
Brokerage (Net investment prod. sales)$1.01 $0.98 $1.11
Card Income$4.51 $4.84 $5.01
Deposit Service Charges$2.08 $2.07 $2.28
Other$0.54 $1.18 $0.56

KPIs and balance sheet

KPIQ1 2025Q2 2025Q3 2025
Total Assets ($USD Billions)$9.00 $9.21 $9.31
Total Loans ($USD Billions)$6.65 $6.85 $6.93
Total Deposits ($USD Billions)$7.29 $7.51 $7.64
NPLs / Loans (%)0.24% 0.26% 0.27%
ACL / Loans (%)1.34% 1.32% 1.33%
Net (Charge-offs)/Recoveries ($000)+971 (342) (112)
Line of Credit Usage (%)46% 48% 47%
WM&T AUM ($USD Billions)$6.80 $7.19 $7.48

Loan and deposit segmentation

Segment ($USD Millions)3/31/256/30/259/30/25
CRE – Non-owner occupied (Loans)$1,870.4 $1,990.0 $1,947.9
CRE – Owner occupied (Loans)$1,004.8 $1,010.7 $1,091.1
Commercial & Industrial (Loans)$1,463.7 $1,491.1 $1,490.1
Resi RE – Owner occupied (Loans)$813.8 $851.3 $873.5
Construction & Land Dev. (Loans)$679.3 $671.0 $675.1
Home Equity LOC (Loans)$252.1 $263.8 $271.0
Time Deposits$1,476.5 $1,660.6 $1,719.3
Interest-bearing Demand$2,545.9 $2,520.4 $2,573.2
Money Market$1,343.0 $1,385.8 $1,341.7
Savings$429.2 $425.0 $420.6
Non-Interest-bearing Deposits$1,499.4 $1,514.9 $1,589.2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Interest Margin2H 2025“Remain steady; deposit competition stronger in 2H” “Remain stable; potential rate-cut headwinds” Maintained with caution
Loan GrowthFY 2025“Moderate growth anticipated amid macro uncertainties” Continued growth across all markets; payoffs temper but demand steady Maintained
Deposit MixFY 2025Non-interest-bearing >20% of total Non-interest-bearing ~21% of total Improved
DividendQ3 2025$0.31 declared in May Increased to $0.32, paid Oct 1 Raised
Branch Expansion2025Two new locations planned (Bardstown, KY; Liberty Twp., OH) Two locations expected by year-end; new Center Grove opened Mar Maintained
Share Repurchase Authorization2025–2027New 1M share plan adopted July 15 No update in Q3 release Maintained

Earnings Call Themes & Trends

Note: Q3 2025 earnings call transcript not available; themes compiled from press releases.

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Net Interest MarginQ1: +26 bps YoY to 3.46%; Q2: +27 bps YoY to 3.53% with stable outlook 3.56%; “expect NIM to remain stable; rate-cut headwinds possible” Improving but cautious
Loan Growth BreadthQ1: Growth across nearly all categories; best first-quarter net loan growth Sixth consecutive quarter across all markets; CRE led YoY; Cincinnati passed $1B Sustained, diversified
Deposit StrategyQ1: Time deposit campaign drove growth ; Q2: continued growth, >20% NIB Deposits +14% YoY; NIB ~21% of total; funding base strengthened Mix improving
Fee Income MixQ1/Q2: Treasury/ brokerage strong; WM&T soft but stabilizing Mortgage/brokerage up; WM&T AUM up for 2nd quarter Stabilizing with selective strength
Credit QualityQ1: NPLs 0.24%; net recoveries NPLs 0.27%; low net charge-offs Strong, stable
Macro/PolicyQ2: Stronger deposit competition expected H2 Rate-cut headwinds flagged; underlying loan demand steady Cautious on rates

Management Commentary

  • “We delivered another record quarter, marked by strong loan production and our sixth consecutive quarter of loan growth across all markets… Credit quality continues to be strong and stable” — Ja Hillebrand, Chairman & CEO .
  • “Our operating performance this quarter was supported by broad-based strength across non-interest revenue streams… mortgage and brokerage businesses… we remain confident about the continued trajectory of our WM&T group” .
  • “We continued expanding our deposit base… particularly encouraged by the stability of our non-interest bearing deposits… We expect our net interest margin to remain stable; headwinds from potential rate cuts… could present challenges” .
  • Prior quarters underscore consistency: “robust loan growth and net interest margin expansion” (Q2) and “record first quarter earnings highlighted by strong loan growth” (Q1) .

Q&A Highlights

The Q3 2025 earnings call transcript could not be retrieved; Q&A highlights and any on-call guidance clarifications are unavailable from primary sources in this dataset.

Estimates Context

  • Q3 EPS beat: actual $1.23 vs $1.16 consensus (+6.0%). Revenue modest miss on SPGI definition: $99.5M actual vs $99.9M consensus (-0.4%); 6 EPS and 5 revenue estimates contributed*. Values retrieved from S&P Global.*
  • Trajectory: SYBT beat EPS in Q1 (+13.8%) and Q2 (+9.2%); revenue was roughly in line to slightly mixed (Q1 miss -0.2%, Q2 beat +0.1%). Values retrieved from S&P Global.

Key Takeaways for Investors

  • Sustained earnings power: consecutive quarterly records, EPS momentum, and NIM expansion signal strong core profitability amid disciplined growth .
  • Funding resilience: deposits +14% YoY with NIB deposits ~21%; deposit initiatives and mix support NIM stability even as competition persists .
  • Balanced fee engine: mortgage and brokerage up; WM&T AUM rising for a second quarter suggests improving trajectory for wealth income .
  • Credit quality remains a pillar: NPLs 0.27%, ACL/loans 1.33%, minimal net charge-offs; reserves and utilization trends remain healthy .
  • Watch the rate path: management flagged potential NIM headwinds if rate cuts occur; monitor funding costs, deposit mix, and loan repricing .
  • Capital returns and growth footprint: dividend raised to $0.32; two new branches by year-end; Cincinnati crossing $1B loans adds regional scale .
  • Near-term trading lens: EPS beat vs consensus and improving NIM are supportive; any signs of rate-cut-induced margin compression or expense drift could temper sentiment; fee breadth and AUM trends are secondary positives .