Stock Yards Bancorp, Inc. (SYBT): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Stock Yards Bancorp, Inc. (SYBT) through the lens of the Boston Consulting Group Matrix, mapping where the capital should flow based on market growth and relative market share as of late 2025. Honestly, SYBT presents a compelling picture: core lending is a clear Star, fueled by 10% year-over-year loan growth and Net Interest Income soaring 19% to $77.0 million, while the Wealth Management & Trust Group acts as a dependable Cash Cow, providing 44% of non-interest income from $7.48 billion in AUM. Still, the real strategic challenge lies in deciding how much fuel to pour into the Question Marks, like the Cincinnati market now topping $1 billion in loans, versus managing the low-growth Dogs in the portfolio. Let's break down exactly where SYBT's resources are best deployed right now.

Background of Stock Yards Bancorp, Inc. (SYBT)

You're looking at the foundation of Stock Yards Bancorp, Inc. (SYBT), the bank holding company for Stock Yards Bank & Trust Company. The bank itself has a long history, established way back in 1904 in Louisville, Kentucky, though the holding company was incorporated later, in 1988. As of late 2025, Stock Yards Bancorp, Inc. operates across Kentucky, Indiana, and Ohio, with offices in markets like Louisville, Indianapolis, and Cincinnati; in fact, the Cincinnati market recently hit a milestone of $1 billion in total loans.

The company organizes its business into two main segments for reporting: Commercial Banking and Wealth Management and Trust (WM&T). The Commercial Banking segment is where the majority of the revenue comes from, offering a full suite of services including various loan and deposit products, private banking, mortgage banking, and treasury management services for both individuals and businesses. The WM&T segment focuses on investment management, trust, and estate services, managing assets under management approximating $7.48 billion, which ranks it among the top 150 trust companies nationally by revenue.

Looking at the most recent concrete numbers from the third quarter ended September 30, 2025, Stock Yards Bancorp, Inc. reported record net income of $36.2 million, translating to $1.23 per diluted share. This strong result was underpinned by solid growth; total assets stood at $9.31 billion. Total loans grew by 10% year-over-year to reach $6.93 billion, with commercial real estate loans showing significant growth within that total.

The bank's core profitability metric, net interest income, saw a healthy increase of 19% compared to the prior year's third quarter, hitting $77.0 million for Q3 2025. This was supported by the net interest margin expanding to 3.56%. Deposits also expanded robustly, growing 14% over the trailing twelve months. Still, non-interest income saw a slight dip, decreasing by 1% to $24.5 million in the third quarter of 2025. On the capital side, tangible common equity per share was $28.30 as of September 30, 2025, reflecting an accelerated growth rate of 18.5% annually over the last two years.

Stock Yards Bancorp, Inc. (SYBT) - BCG Matrix: Stars

The Star quadrant represents business units or products operating in a high-growth market where Stock Yards Bancorp, Inc. maintains a high market share. These units are leaders and require significant investment to maintain their growth trajectory, often resulting in a near break-even cash flow situation.

The core lending portfolio is clearly positioned as a Star, evidenced by its consistent, high-velocity expansion across all markets for the sixth consecutive quarter. Total loans increased by 10% year-over-year, reaching $6.93 billion as of September 30, 2025. This growth is supported by a strong asset base, with total assets reported at $9.31 billion at the same date.

This market leadership translates directly into robust revenue generation, particularly in Net Interest Income (NII). For the third quarter of 2025, NII expanded by 19% to $77.0 million. This expansion was fueled by significant earning asset growth and improved yields, with the net interest margin expanding to 3.56% in Q3 2025.

The sustained earnings momentum confirms the strength of these high-share operations. Stock Yards Bancorp, Inc. achieved a record net income of $103.54 million for the first nine months of 2025, a substantial increase from $82.85 million reported for the same nine-month period in the prior year. The third quarter alone contributed $36.24 million to this total.

Dominance in the home market remains a key characteristic of a Star position. Stock Yards Bancorp, Inc., headquartered in Louisville, Kentucky, is recognized as the largest community bank in the Louisville metropolitan area. Furthermore, the successful execution of the growth strategy is visible in other key markets, with both the Indianapolis and Cincinnati markets surpassing the $1 billion mark in total loans.

Here's a look at the key performance indicators supporting the Star classification as of Q3 2025:

The growth is broad-based, though certain segments are leading the charge. You can see the primary drivers of this high-growth, high-share status:

• Commercial real estate loan growth led all categories with an increase of $403 million year-over-year.
• The Cincinnati market achieved a milestone of $1 billion in total loans.
• Brokerage income reached a record $1.1 million in Q3 2025, growing 22% year-over-year.
• The company operates across Kentucky, Indiana, and Ohio metropolitan markets.

The continued investment required to maintain this market position is reflected in the increase in non-interest expenses, which rose by 11% in Q3 2025 compared to Q3 2024, primarily due to higher compensation and marketing expenses. This spending is the necessary fuel for a Star to eventually transition into a Cash Cow when market growth naturally decelerates.

Stock Yards Bancorp, Inc. (SYBT) - BCG Matrix: Cash Cows

You're looking at the core engine of Stock Yards Bancorp, Inc. (SYBT) here-the business units that generate more cash than they need to maintain their market position. These Cash Cows operate in mature, lower-growth segments but command a high market share, meaning they are highly profitable and require minimal new investment to sustain their cash flow.

The Wealth Management & Trust (WM&T) Group is definitely positioned as a Cash Cow for Stock Yards Bancorp, Inc. This group provides stable, high-margin fee income, which is the hallmark of a mature, high-share business unit. The stability comes from the long-term nature of trust and investment management relationships.

Here are the hard numbers supporting the WM&T Group's status:

• WM&T income contributed a significant 44% of total non-interest income for the first nine months of 2025.
• Assets Under Management (AUM) stood at approximately $7.48 billion as of Q3 2025.
• This AUM level ranks the Wealth Management Group among the country's top 150 trust companies in terms of revenue.

The group's performance in Q3 2025 specifically showed WM&T income at $10.7 million, against total non-interest income of $24.476 million for that quarter. While Q3 2025 income saw a slight dip of 2% year-over-year to $10.7 million, this was attributed to a decline in non-recurring estate fees, not a loss of core market share or profitability. Still, the AUM grew for the second consecutive quarter, showing positive momentum from market returns and new sales team hires.

The established deposit base further solidifies the low-cost funding advantage that supports the high margins of these Cash Cows. This funding strength is critical because it keeps the cost of funds down, which directly boosts profitability, especially when net interest margin expands. For the second quarter of 2025, the established deposit base grew 14% year-over-year, reaching $7.51 billion as of June 30, 2025. The third quarter continued this trend, with deposits expanding 14% over the last 12 months.

You can see the key metrics for this cash-generating segment below:

Because this business unit is a market leader in a mature space, the strategy here is about maintenance and efficiency. Investments should focus on infrastructure that improves operational efficiency, like technology to streamline trust administration, rather than aggressive market expansion spending. This allows Stock Yards Bancorp, Inc. to passively milk the gains, which fund the riskier Question Marks in the portfolio. The efficiency ratio for the entire company improved to 52.99% in Q3 2025, showing that management is focused on keeping support costs low relative to revenue generation.

The stability of this unit is evident in the consistent dividend policy; the board declared a quarterly cash dividend of $0.32 per common share in August 2025, a clear sign of confidence in the underlying cash generation capabilities of the firm's established businesses.

Stock Yards Bancorp, Inc. (SYBT) - BCG Matrix: Dogs

Dogs, are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Stock Yards Bancorp, Inc. (SYBT), the Dog quadrant is characterized by areas where market share or growth is constrained, often involving legacy operations or fee streams facing structural headwinds. These units require careful management to prevent them from consuming disproportionate resources relative to their returns.

Non-interest-bearing deposits, a key funding component, illustrate a trend that can be viewed as a Dog characteristic in a rising-rate environment, even if the absolute dollar amount grew. While total deposits expanded by 14% year-over-year as of Q3 2025, the mix continued to shift away from these lower-cost sources into higher-cost deposits, such as time deposits which surged 31% in Q1 2025 on a year-over-year basis. Non-interest-bearing demand accounts did increase by $81 million, or 5% year-over-year as of September 30, 2025, but the overall strategic pressure is toward more expensive funding.

Certain fee income streams, often considered non-core or mature, fit the Dog profile due to low or negative growth. Card Income is one such area. In the first quarter of 2025, Card Income decreased by 4% compared to the first quarter of 2024, directly attributed to lower transaction volumes. This trend continued into the third quarter, where Card Income decreased by 1% (or $74,000) year-over-year.

Volatile and non-recurring revenue sources constrain total non-interest income growth, which saw a slight contraction in Q3 2025. Total Non-interest Income for the third quarter of 2025 was $24,476 thousand, a decrease of 1% compared to the third quarter of 2024. This was heavily influenced by the absence of expected one-time items.

Here's a breakdown of the non-interest income components that illustrate this volatility:

The absence of swap fees in Q3 2025, compared to $380,000 in Q3 2024, was a primary driver of the constraint. Furthermore, Other non-interest income, which includes swap fees, letter of credit fees, and OREO activity, decreased by $364,000 over the third quarter of 2024.

The physical footprint in the core market also presents Dog-like characteristics. These are the legacy, fully mature branches in the deepest parts of the Louisville market. While they require minimal investment to maintain operations, they offer limited potential for significant growth, tying up capital and management attention that could be better deployed in higher-growth areas like the new locations planned for Bardstown, Kentucky, and Liberty Township, Ohio.

These Dog segments are defined by:

• A strategic shift in funding mix away from non-interest-bearing deposits.
• Fee income streams like Card Income showing negative year-over-year growth of 4% in Q1 2025.
• Non-recurring revenue, such as the $380,000 in Q3 2024 swap fees, being entirely absent in Q3 2025.
• Total Non-interest Income declining by 1% to $24.5 million in Q3 2025 year-over-year.
• Mature physical assets in core markets offering limited upside.

Finance: draft 13-week cash view by Friday.

Stock Yards Bancorp, Inc. (SYBT) - BCG Matrix: Question Marks

The Question Marks quadrant for Stock Yards Bancorp, Inc. captures business units or markets characterized by high growth prospects but currently holding a low relative market share. These areas consume cash to fuel expansion but have not yet delivered substantial returns, representing near-term investment decisions for Stock Yards Bancorp, Inc.

Expansion markets like Cincinnati and Indianapolis fit this profile, as Stock Yards Bancorp, Inc. operates as a challenger against larger super-regional banks in these areas. The commitment to growth in these regions is evident in the balance sheet expansion.

The Cincinnati market specifically has demonstrated significant forward momentum, just surpassing the $1 billion milestone in total loans as of the third quarter of 2025. This achievement highlights the high growth potential in that geographic area, even as the bank continues to build its relative market share against established competitors. Overall, total loans for Stock Yards Bancorp, Inc. increased by $651 million, or 10%, over the 12 months ending September 30, 2025, showing broad-based growth across all markets, including these challengers.

Within the non-interest income streams, which are typically more rate-sensitive, mortgage banking and brokerage services show year-over-year improvement but remain a smaller component of the overall revenue picture. This category requires investment to scale against market incumbents.

Here is a breakdown of key non-interest income components for the third quarter of 2025 compared to the third quarter of 2024:

The need for significant initial capital investment to capture market share is reflected in the strategic expansion plans. Stock Yards Bancorp, Inc. has planned new branch openings for late 2025 in areas such as Bardstown, Kentucky, and Liberty Township, Ohio. These physical expansions are cash outflows necessary to establish a stronger foothold in growing markets, aligning with the classic Question Mark strategy of investing heavily to gain share or divest.

The overall asset base for Stock Yards Bancorp, Inc. stood at approximately $8 billion as of the third quarter of 2025.

• Expansion markets: Cincinnati and Indianapolis.
• Cincinnati loan milestone: Surpassed $1 billion in total loans (Q3 2025).
• Mortgage banking growth: Up 13% year-over-year in Q3 2025.
• Planned capital deployment: New branches in Bardstown, KY, and Liberty Township, OH, late 2025.