Stock Yards Bancorp (SYBT) Q2 2026 earnings summary

Executive summary

• Achieved record net income of $40.1M ($1.31 per diluted share) for Q2 2026, up 18% YoY, and $76.7M for six months, up 14% YoY.

• Completed acquisition of Field & Main Bancorp, adding $839M in assets, $626M in loans, and $765M in deposits, with $44M in goodwill recorded.

• Net interest margin expanded to 3.84%, with strong credit quality and record non-interest income, especially from wealth management & trust, card income, and treasury management fees.

• Total assets grew 9% to $10.37B; stockholders' equity rose 16% to $1.25B.

Financial highlights

• Net interest income (FTE) for Q2 2026 was $87.9M, up 20% YoY; six-month net interest income was $166.4M, up 15%.

• NIM increased to 3.84% for Q2 2026 (up 31 bps YoY); six-month NIM was 3.75% (up 25 bps).

• Non-interest income rose 10% YoY for Q2 and 8% for six months, driven by wealth management and trust services.

• Non-interest expenses increased 21% YoY for Q2 and 15% for six months, including $2.3M in one-time merger expenses.

• Efficiency ratio (FTE) was 55.64% for Q2 and 54.66% for six months; adjusted ratios were 53.64% and 53.73%.

• Total loans grew 15% YoY to $7.88B, with $626M from the FM acquisition and $209M organic growth YTD.

• Deposits increased 13% YoY to $8.49B, with $765M from FM and $70M organic contraction YTD.

• Allowance for credit losses (ACL) on loans rose to $109M (1.38% of loans), up $16M from FM and $1.6M provision YTD.

Outlook and guidance

• Management expects continued NIM benefit from lower deposit costs and higher-yielding loan growth, but remains cautious on competitive pricing and funding costs.

• Loan pipeline remains steady for H2 2026, with margin expected to be near a peak as higher funding costs may offset favorable loan repricing.

• Projections indicate FRB will likely hold rates steady in H2 2026; economic and geopolitical uncertainty may impact future results.

• Bancorp intends to manage balance sheet to remain below $10B in assets at year-end 2026 to avoid regulatory fee caps.

• Remaining merger-related expenses from Field & Main, mainly systems conversion, expected in Q3 and Q4 2026.