Stock Yards Bancorp recently released its 10-Q report. Stock Yards Bancorp, Inc. is a Louisville-based bank holding company for Stock Yards Bank & Trust Company, which operates through two segments: Commercial Banking and WM&T. Commercial Banking provides lending, deposit, treasury management, merchant services, international and correspondent banking, credit card services, and brokerage services through a third-party arrangement, while WM&T provides investment management, financial and retirement planning, trust and estate services, and retirement plan management.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
For the three months ended March 31, 2026, net income rose to $36.6 million from $33.3 million a year earlier, a gain of $3.3 million, or 10%. Diluted earnings per share increased to $1.24 from $1.13, also up 10%.
Net interest income on an FTE basis increased to $78.5 million from $70.6 million, up $7.9 million, or 11%. The net interest margin widened to 3.65% from 3.46%, a 19-basis-point increase, and the net interest spread rose to 3.08% from 2.83%, a 25-basis-point increase.
Average interest-earning assets climbed to $8.73 billion from $8.27 billion, while average interest-bearing liabilities increased to $6.65 billion from $6.25 billion, both up 6%. Interest income increased $6.5 million, or 6%, while interest expense fell $1.4 million, or 3%, as lower-cost liquidity reduced the need for overnight borrowings.
Total loans increased $580 million, or 9%, versus March 31, 2025, with growth led by commercial real estate and commercial and industrial lending. Average loans increased $520 million, or 8%, over the same period.
The allowance for credit losses on loans increased $4.8 million, or 5%, from a year earlier. Provision for credit losses on loans was $1.6 million, compared with $900,000 in the prior-year quarter.
Deposits rose $463 million, or 6%, from March 31, 2025, driven by interest-bearing demand deposits and time deposits, with management pointing to promotional CD activity in the prior year.
Non-interest income increased $1.6 million, or 7%, including a $479,000 gain on the sale of a former branch location. Non-interest expense increased $4.2 million, or 8%, mainly because of higher compensation and employee benefit costs tied to FTE growth, merit increases, higher bonus accruals, and continued technology spending.
The efficiency ratio improved to 53.58% from 54.50%. Return on assets improved to 1.58% from 1.52%, while return on equity declined to 13.63% from 14.14%.
As of March 31, 2026, Bancorp remained well-capitalized. Total stockholders’ equity to total assets increased to 11.65% from 11.28% at December 31, 2025 and 10.84% at March 31, 2025. Tangible common equity to tangible assets rose to 9.69% from 9.32% and 8.72% over the same periods. Today the company's shares have moved 2.14% to a price of $72.69. If you want to know more, read the company's complete 10-Q report here.
