Stock Yards Bancorp Appoints William Otten Chief Credit Officer >SYBT

Over the past six months, Stock Yards Bank’s shares (currently trading at $66.08) have posted a disappointing 10.8% loss, well below the S&P 500’s 14.1% gain. This might have investors contemplating their next move.

Following the pullback, is this a buying opportunity for SYBT? Find out in our full research report, it’s free for active Edge members.

Why Does Stock Yards Bank Spark Debate?

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Two Positive Attributes:

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.

Stock Yards Bank’s net interest income has grown at a 17.1% annualized rate over the last five years, better than the broader banking industry and faster than its total revenue. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.

2. Growing TBVPS Reflects Strong Asset Base

Tangible book value per share (TBVPS) serves as a key indicator of a bank’s financial strength, representing the hard assets available to shareholders after removing intangible assets that could evaporate during financial distress.

Stock Yards Bank’s TBVPS increased by 9.2% annually over the last five years, and growth has recently accelerated as TBVPS grew at an exceptional 18.5% annual clip over the past two years (from $20.17 to $28.30 per share).

One Reason to be Careful:

Low Net Interest Margin Hinders Flexibility

Net interest margin (NIM) represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services.

Over the past two years, we can see that Stock Yards Bank’s net interest margin averaged a subpar 3.4%, meaning it must compensate for lower profitability through increased loan originations.

Final Judgment

Stock Yards Bank’s positive characteristics outweigh the negatives. With the recent decline, the stock trades at 1.8× forward P/B (or $66.08 per share). Is now a good time to initiate a position? See for yourself in our comprehensive research report, it’s free for active Edge members .

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company Stock Yards Bank jumped 3.7%. Is now the time to buy Stock Yards Bank? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company German American Bancorp jumped 3.6%. Is now the time to buy German American Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Republic Bancorp jumped 3.6%. Is now the time to buy Republic Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company TriCo Bancshares jumped 3.6%. Is now the time to buy TriCo Bancshares? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Regions Financial jumped 3.7%. Is now the time to buy Regions Financial? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Stock Yards Bank (SYBT)

Stock Yards Bank’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 28 days ago when the stock gained 3% on the news that a cooler-than-expected inflation report fueled optimism for potential Federal Reserve interest rate cuts. 

The September Consumer Price Index (CPI) report indicated a 3.0% year-over-year increase in prices, just below the 3.1% that economists had forecast. While still above the Federal Reserve's 2% target, investors interpreted this softer inflation reading as a sign that price pressures are easing. This development increases the likelihood that the central bank may move to cut interest rates. Lower interest rates can benefit banks by reducing their cost of funding and potentially stimulating loan demand from businesses and consumers. The positive sentiment was widespread, contributing to a broader market rally that saw the S&P 500, Dow, and Nasdaq all reach new record highs.

Stock Yards Bank is down 8% since the beginning of the year, and at $64.66 per share, it is trading 22.1% below its 52-week high of $83.01 from July 2025. Investors who bought $1,000 worth of Stock Yards Bank’s shares 5 years ago would now be looking at an investment worth $1,580.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how National Bank Holdings and the rest of the regional banks stocks fared in Q3.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.2%.

While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.

National Bank Holdings

Operating under familiar local brands like Community Banks of Colorado, Bank Midwest, and Bank of Jackson Hole, National Bank Holdings operates regional banks across Colorado, Kansas, Missouri, Wyoming, Texas, and other western states, offering commercial, business, and consumer banking services.

National Bank Holdings reported revenues of $108.9 million, up 2.7% year on year. This print exceeded analysts’ expectations by 3.9%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ net interest income estimates.

Unsurprisingly, the stock is down 3.1% since reporting and currently trades at $35.89.

Read our full report on National Bank Holdings here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 2.1% since reporting. It currently trades at $66.93.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

As expected, the stock is down 19.3% since the results and currently trades at $62.17.

Read our full analysis of The Bancorp’s results here.

Hilltop Holdings

Transformed from a residential communities business to a financial services powerhouse in 2007, Hilltop Holdings is a Texas-based financial holding company that provides banking, broker-dealer, and mortgage origination services.

Hilltop Holdings reported revenues of $330.2 million, up 7.5% year on year. This result surpassed analysts’ expectations by 6.3%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

The stock is flat since reporting and currently trades at $32.60.

Read our full, actionable report on Hilltop Holdings here, it’s free for active Edge members.

Stock Yards Bank

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Stock Yards Bank reported revenues of $101.5 million, up 13.1% year on year. This number topped analysts’ expectations by 1.7%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ net interest income estimates but a significant miss of analysts’ tangible book value per share estimates.

The stock is down 2.8% since reporting and currently trades at $65.36.

Read our full, actionable report on Stock Yards Bank here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Regional banking company Stock Yards Bancorp reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 13.1% year on year to $101.5 million. Its GAAP profit of $1.23 per share was 6% above analysts’ consensus estimates.

Is now the time to buy Stock Yards Bank? Find out by accessing our full research report, it’s free for active Edge members.

Stock Yards Bank (SYBT) Q3 CY2025 Highlights:

• Net Interest Income: $77.04 million vs analyst estimates of $75.58 million (18.6% year-on-year growth, 1.9% beat)
• Net Interest Margin: 3.6% vs analyst estimates of 3.5% (3.3 basis point beat)
• Revenue: $101.5 million vs analyst estimates of $99.82 million (13.1% year-on-year growth, 1.7% beat)
• Efficiency Ratio: 53% vs analyst estimates of 53% (in line)
• EPS (GAAP): $1.23 vs analyst estimates of $1.16 (6% beat)
• Tangible Book Value per Share: $28.30 vs analyst estimates of $28.03 (15.2% year-on-year growth, 1% beat)
• Market Capitalization: $1.98 billion

“We delivered another record quarter, marked by strong loan production and our sixth consecutive quarter of loan growth across all markets,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer.

Company Overview

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Sales Growth

Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Luckily, Stock Yards Bank’s revenue grew at an incredible 16% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers, a helpful starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Stock Yards Bank’s annualized revenue growth of 6.3% over the last two years is below its five-year trend, but we still think the results were respectable.

This quarter, Stock Yards Bank reported year-on-year revenue growth of 13.1%, and its $101.5 million of revenue exceeded Wall Street’s estimates by 1.7%.

Net interest income made up 73% of the company’s total revenue during the last five years, meaning lending operations are Stock Yards Bank’s largest source of revenue.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. Traditional metrics like EPS are helpful but face distortion from M&A activity and loan loss accounting rules.

Stock Yards Bank’s TBVPS grew at an exceptional 9.2% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 18.5% annually over the last two years from $20.17 to $28.30 per share.

Over the next 12 months, Consensus estimates call for Stock Yards Bank’s TBVPS to grow by 11.8% to $31.65, top-notch growth rate.

Key Takeaways from Stock Yards Bank’s Q3 Results

It was encouraging to see Stock Yards Bank beat analysts’ net interest income and net interest margin expectations this quarter. We were also happy its revenue, EPS, and TBVPS outperformed Wall Street’s estimates. Overall, this print had some key positives. The stock remained flat at $66.42 immediately after reporting.

Indeed, Stock Yards Bank had a rock-solid quarterly earnings result, but is this stock a good investment here? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.