- Stock Yards Bancorp, Inc. (SYBT, Financial) reports record first-quarter earnings of $33.3 million, marking a 28.5% year-over-year increase.
- Loans grew by 14% over the past year, adding $797 million to the portfolio.
- Net interest income rose 17% to $70.6 million, with a net interest margin expansion to 3.46%.
Stock Yards Bancorp, Inc. (SYBT) announced record earnings for the first quarter ending March 31, 2025, with a net income of $33.3 million, or $1.13 per diluted share. This performance represents a significant increase from the $25.9 million, or $0.88 per diluted share, reported in the first quarter of 2024.
The bank's total loans surged by $797 million, or 14%, over the last 12 months, with a $126 million increase observed in the first quarter alone. This growth was broad-based, with significant contributions from the commercial real estate sector, which saw a $334 million expansion.
Net interest income saw a substantial rise of 17%, reaching $70.6 million. The net interest margin improved to 3.46%, up 26 basis points from the previous year, underscoring strong financial management and favorable interest earning strategies.
Deposits grew by $685 million, equivalent to a 10% year-over-year increase, driven by a successful time deposit campaign. The deposit mix, however, is shifting towards higher-cost deposits, yet the bank managed to lower the cost of interest-bearing deposits slightly to 2.51%.
Despite a 9% contraction in assets under management, Stock Yards Bancorp maintained solid credit quality metrics. Non-performing loans were kept at 0.24% of total loans, with the allowance for credit losses ratio at 1.34%. The efficiency ratio improved to 54.50%.
CEO James A. Hillebrand commented on the record earnings, attributing the success to robust loan growth and effective credit management. However, he cautioned that continued market uncertainties regarding tariffs and the global economy might moderate future growth.
With total assets reaching $9.00 billion, Stock Yards Bancorp remains well-capitalized, reinforcing its position across its operational markets in Kentucky, Indiana, and Ohio. This strategic geographical footprint continues to provide a buffer against localized economic challenges.
