Stock Yards Bancorp, Inc. (SYBT): Business Model Canvas [Dec-2025 Updated]

You're looking to crack the code on how Stock Yards Bancorp, Inc. actually makes its money, and honestly, it's a classic regional bank play, but with a smart twist. As someone who's spent two decades dissecting these balance sheets, I see a model built on high-touch relationship banking across Kentucky, Indiana, and Ohio, supported by 73 full-service branches and $9.31 billion in assets as of September 30, 2025. The real engine, though, is the diversification into wealth management alongside a solid 3.56% Net Interest Margin in Q3 2025, which shows they are using their assets efficiently. Dive into the full Business Model Canvas below to see exactly how their key activities and customer segments drive that stability and growth.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Key Partnerships

You're looking at the network of relationships Stock Yards Bancorp, Inc. relies on to execute its business plan. For a regional bank, these external relationships are critical for distribution, specialized services, and validation.

Secondary market investors for residential mortgages

Stock Yards Bank & Trust Company originates residential mortgage loans for both purchase and refinancing transactions and generally sells these loans into the secondary market. This activity directly impacts the non-interest income stream.

For instance, in the third quarter of 2025, mortgage banking income showed growth:

• Mortgage banking income increased by 13% over the third quarter of 2024.
• This translated to an increase of $140,000 over the third quarter of 2024.

The bank also has specific programs, like the Right at Home Program, which targets low-to-moderate income homebuyers in specific counties across Kentucky, Indiana, and Ohio, suggesting a partnership with local housing authorities or community development entities to meet those guidelines, though specific partner names aren't detailed.

Core banking and fintech solution providers

While specific core banking system providers aren't named, Stock Yards Bancorp, Inc. actively engages with the technology side of finance. Management participated in the Raymond James 2025 U.S. Bank and Banking on Tech Conferences in August/September 2025, signaling engagement with the evolving tech landscape.

The bank's Commercial Banking segment offers services like online banking and mobile banking, which rely on underlying technology partners. The bank also utilizes an arrangement with a third party broker-dealer to provide securities brokerage services.

Institutional investors and investment banks (e.g., Piper Sandler)

The relationship with investment banks and research firms provides crucial third-party validation and access to institutional capital markets. Piper Sandler, an independent investment bank and research firm, is a key external validator.

Here's a look at the relationship with Piper Sandler as of late 2025:

Also, the Chairman and CEO participated in one-on-one meetings with institutional investors in September 2025.

Correspondent banking partners for services outside the footprint

Stock Yards Bancorp, Inc. extends its reach beyond its primary markets using correspondent banking relationships as part of its Commercial Banking segment offerings. The bank's footprint covers Louisville, central, eastern and northern Kentucky, Indianapolis, and Cincinnati metropolitan markets.

The bank also offers international banking services, which inherently rely on a network of correspondent banks for cross-border transactions. The company has 72 branches across 3 states, as of a late 2023 report, indicating a reliance on its physical network supplemented by these external banking relationships for broader coverage.

Local community organizations for market penetration

Stock Yards Bank & Trust Company emphasizes active participation in the lives of its customers in all markets to help them thrive. The Director of Community Engagement & Outreach maintains strong relationships with community-based charitable and non-profit organizations to support the bank's CRA (Community Reinvestment Act) and fair lending programs.

The bank supports community access to homeownership through specific programs:

• The Right at Home Program serves specific counties in Kentucky, Indiana, and Ohio.
• For first-time homebuyers in this program, completion of a first-time homebuyer education course is required.

The bank also looks to partner with minority-owned and women-owned suppliers. The bank's operations span markets including Louisville, Indianapolis, and Cincinnati.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Key Activities

You're looking at the core engine of Stock Yards Bancorp, Inc. as of late 2025. These are the actions management focuses on every day to keep the firm running and growing.

Commercial and retail loan origination and servicing is central to the operation. By the end of the third quarter of 2025, total loans stood at $6.93 billion, which represented a 10% increase year-over-year. You saw strong activity in commercial real estate, which grew by $403 million during that third quarter alone. The yield earned on total loans for the quarter ended September 30, 2025, hit 6.19%.

For deposit gathering and treasury management services, the results show solid funding growth. Total deposits expanded by 14% over the past year leading up to the third quarter of 2025. This robust funding base helped drive net interest income up 19% year-over-year to reach $77.0 million for Q3 2025. Treasury management fees specifically generated $2.9 million in Q3 2025.

The Wealth Management Group is a key value driver, focusing on investment management and trust administration. This group manages assets under management (AUM) approximating $7.48 billion. This activity contributed $10.7 million in WM&T income for the third quarter of 2025, marking the second consecutive quarter of AUM expansion.

Stock Yards Bancorp, Inc. is actively engaged in strategic expansion into new metropolitan markets. The company maintains offices across Louisville, central, eastern and northern Kentucky, plus the established Indianapolis, Indiana and Cincinnati, Ohio markets. The Cincinnati market itself hit a milestone of $1 billion in total loans. Furthermore, the recent hiring of a Bowling Green Market President signals a clear push to expand the footprint there.

Finally, maintaining a well-capitalized status is a non-negotiable activity for stability and regulatory standing. As of September 30, 2025, Stock Yards Bancorp, Inc. was rated "well-capitalized," the highest regulatory rating. The tangible common equity ratio stood at 9.16% on that date, up from 8.79% the prior year. Total assets for the company were reported at $9.31 billion as of the end of September 2025.

Here is a quick snapshot of some key financial metrics supporting these activities:

The operational focus involves several interconnected areas:

• Originate commercial and residential real estate loans.
• Grow non-interest-bearing demand accounts, which rose $74 million linked quarter.
• Expand presence in the Indianapolis and Cincinnati markets.
• Grow total assets, which increased $870 million year-over-year to $9.31 billion.
• Manage credit quality, with the allowance for credit losses to loans ratio at 1.33%.

Finance: draft next quarter's capital allocation plan by January 15th.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Key Resources

You're looking at the foundational assets that power Stock Yards Bancorp, Inc.'s relationship-based model. These aren't just line items; they are the tangible and intangible engines driving their performance in the regional banking space.

The sheer scale of the balance sheet is a primary resource. As of September 30, 2025, Stock Yards Bancorp, Inc. reported total assets of $9.31 billion. This size allows for significant lending capacity and operational stability, which is crucial when competing against much larger institutions.

Physical presence remains a bedrock resource for a relationship bank. Stock Yards Bancorp, Inc. maintains 73 full-service branch offices across its core markets. This network supports the local decision-making process that clients value.

The human capital, specifically the relationship managers and trust officers, represents an intangible but vital resource. These professionals deliver the personalized service that differentiates Stock Yards Bancorp, Inc. from more transactional competitors. This is directly tied to the success of the Wealth Management and Trust (WM&T) segment, which manages approximately $7.5 billion in assets as of September 30, 2025.

Financial strength, evidenced by regulatory standing, is a non-negotiable resource. Stock Yards Bancorp, Inc. continued to maintain the "well-capitalized," the highest regulatory capital rating for financial institutions as of September 30, 2025. This strong capital position is a key enabler for disciplined growth and weathering economic shifts.

The bank also relies on its technological infrastructure to support its service model. While operating within a highly regulated environment, the firm utilizes its own technology for client-facing services. You see evidence of this in the distinct login portals for Personal/Business Online Banking, Wealth Management & Trust, and others. This suggests dedicated platforms for digital banking and wealth management operations.

Here's a quick look at the core quantifiable resources as of the third quarter of 2025:

The physical footprint is concentrated across the three states, supporting the local relationship focus:

• Kentucky branch count: 59
• Indiana branch count: 10
• Ohio branch count: 6

The firm's commitment to operational excellence, which underpins these resources, is validated by external recognition. Stock Yards Bancorp, Inc. was named a Piper Sandler "Sm-All Star" for 2025, an accolade reflecting strong performance in growth, profitability, credit quality, and capital strength. That's seven times they've earned that distinction.

The technology platforms support essential daily functions, which you can see in the online access points:

• 24/7 account information viewing
• Internal transfers between accounts
• Online bill payments
• Mobile deposits

Finance: draft the Q4 2025 capital forecast incorporating the latest asset growth by Tuesday.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Value Propositions

You're looking at what Stock Yards Bancorp, Inc. offers its clients-it's not just transactions; it's a deep, personalized approach. The value proposition centers on a comprehensive, high-touch relationship banking model, built on over a century of history since its founding in 1904. This isn't a place where you're just an account number; it's about solving client problems, which is a key differentiator in today's market. This focus on relationships helps drive tangible results, like the record net income of $36.2 million reported for the third quarter ending September 30, 2025.

The service set is definitely broad, covering the full spectrum of financial needs. This diversified financial services approach means clients can consolidate their banking, lending, and wealth management needs with one trusted regional provider. The Commercial Banking side fuels the core, showing robust growth across the footprint in Kentucky, Indiana, and Ohio. For example, total loans grew to $6.93 billion as of Q3 2025, a 10% increase year-over-year. The fee-based services add stability and depth:

• Investment management and financial planning services through the Wealth Management & Trust (WM&T) segment.
• WM&T Assets Under Management (AUM) rose by $163 million year-over-year in Q3 2025.
• Commercial and industrial (C&I) line of credit usage expanded to 37% as of September 30, 2025.
• Mortgage banking and brokerage income showed year-over-year growth.

Customer confidence is directly tied to strong credit quality and financial stability. You want to see the numbers that prove the bank manages risk well, and Stock Yards Bancorp, Inc. delivered on that front in Q3 2025. They maintained the highest regulatory capital rating, designated as "well-capitalized." Here's a quick look at the key stability metrics as of September 30, 2025:

The operational model emphasizes local decision-making with regional scale and product depth. While the bank operates across a tri-state footprint covering Kentucky, Indiana, and Ohio, decisions are kept close to the customer, which speeds up service. This regional scale is evident in the asset base and market penetration; for instance, the Cincinnati market surpassed $1 billion in total loans for the first time. The bank's efficiency in using its assets is clearly shown in its profitability metrics. The Net Interest Margin (NIM) was 3.56% in Q3 2025, showing that earning asset yields expanded faster than the cost of funds, which is a direct result of effective asset deployment. Also, the efficiency ratio improved to 52.99% in that same quarter, showing good cost management alongside growth. If onboarding takes 14+ days, churn risk rises, so speed matters here.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Customer Relationships

You're looking at how Stock Yards Bancorp, Inc. keeps its clients engaged, which is really about balancing that old-school, personal touch with the digital tools everyone expects now. The relationship strategy centers on specialized advice for high-net-worth individuals and deep partnership for commercial borrowers.

Dedicated private banking and wealth management advisors are central to serving clients who need more than standard retail banking. The Wealth Management Group (WM&T) is a significant part of the value proposition, managing substantial assets across its services, which include investment management and trust services. As of the third quarter of 2025, the WM&T income stood at $10.7 million. The Assets Under Management for the WM&T Group approximated $7.48 billion. This group also offers dedicated private banking and brokerage services to these clients.

For commercial relationships, Stock Yards Bancorp, Inc. emphasizes a high-touch, personal service model. This is evident in the consistent loan growth across all markets, with total loans increasing by 10% year-over-year to $6.93 billion as of September 30, 2025. Commercial and Industrial (C&I) line of credit usage reached 37% as of the period end on September 30, 2025, showing active client utilization of committed credit facilities. The bank focuses on solving problems, not just selling products, working with each client on their unique challenges.

The community-focused engagement is grounded in the physical presence of local branch staff. Stock Yards Bank & Trust Company operates across 3 STATES, with 72 BRANCHES serving markets including Louisville, Central and Eastern Kentucky, Indianapolis, and Cincinnati. This local footprint supports the commitment to building strong, trusted relationships through knowledgeable employees. The bank actively supports local initiatives, for example, the Working In Neighborhoods (WIN) Build A House campaign raised over $200,000 last year to increase homeownership opportunities. They also partner with local organizations to host seminars focused on outreach to minority realtors and highlighting first-time homebuyer resources.

• Operates 72 BRANCHES across 3 STATES.
• Offers specialized programs like the 'Right at Home Loan Program' for low to moderate-income individuals.
• Maintains a commitment to community support, evidenced by participation in the WIN Build A House campaign which raised over $200,000 last year.
• The bank has been serving customers for 119 years as of late 2025.

To handle the day-to-day banking needs efficiently, Stock Yards Bancorp, Inc. provides automated self-service options. Clients use these tools for routine transactions, which frees up staff for more complex advisory work. The bank explicitly provides access to:

• Online banking access.
• Mobile banking platforms.
• Text banking services.
• Telebanking in both English and Spanish.

The Commercial Banking segment also includes treasury management services and merchant services as part of its broader offering to business clients.

Finance: draft 13-week cash view by Friday.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Channels

You're looking at how Stock Yards Bancorp, Inc. gets its value proposition to the customer base, which is a mix of traditional and modern delivery methods across its regional footprint.

The physical presence remains a core channel, anchored by a network of 73 physical branch offices as of March 31, 2025. These offices serve the Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets. This physical network supports the Commercial Banking segment's retail lending, deposit services, and commercial lending activities. The bank's total assets stood at $9.31 billion as of September 30, 2025, which these channels help to service and grow.

Relationship teams are central to the service delivery, particularly for higher-value segments. The Commercial Banking segment explicitly utilizes commercial and private banking relationship teams to deliver a range of loan and deposit products. The Wealth Management & Trust (WM&T) segment also relies on relationship-based service for investment management, financial planning, and trust administration.

Digital access is a necessary complement to the physical footprint. Stock Yards Bancorp, Inc. provides online banking and mobile application platforms that allow customers to conduct account management, bill payments, and remote deposits. These platforms support the overall deposit base, which was $7.29 billion as of March 31, 2025.

For retail customers, access to cash is managed through the bank's own infrastructure and partnerships. Retail customers have access to the bank's extensive ATM and ITM (interactive teller machine) network. For Private Banking Checking clients, this includes unlimited ATM fee rebates nationwide, with a daily ATM withdrawal limit set at $1,000.

The mortgage company acts as a distinct channel for residential loan origination within the Commercial Banking segment. For the quarter ending June 2025, the Mortgage Banking activity reported a figure of $1.1Mn.

Here's a quick look at the quantitative aspects of these channels as of late 2025 data points:

The delivery mechanism is clearly segmented to match the customer type, which is defintely a key part of their strategy.

• Commercial Banking segment utilizes relationship teams for C&I and CRE lending.
• WM&T segment focuses on investment management and trust services delivery.
• Online and mobile platforms support basic account management and bill pay.
• The branch network serves as the primary physical touchpoint across three states.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Customer Segments

Small to mid-sized businesses (Commercial & Industrial, CRE)

This segment is the core of the Commercial Banking operation, driving significant loan book expansion. Total loans stood at $6.93 billion as of September 30, 2025. Commercial Real Estate (CRE) loans led all categories in growth over the preceding twelve months. Commercial and Industrial (C&I) lines of credit usage expanded to 37% as of September 30, 2025, up from 32% on September 30, 2024. The bank has achieved a $1 billion loan milestone in the Cincinnati market and another $1 billion in the Indianapolis market individually.

Affluent and high-net-worth individuals requiring trust and investment services

The Wealth Management & Trust (WM&T) Group is a key differentiator, holding Assets Under Management (AUM) approximating $7.48 billion as of late 2025. This segment provides investment management, trust administration, private banking, and brokerage services. For the first nine months of 2025, WM&T fee income contributed 44% of the total non-interest income, which amounted to $71.8 million for the same period.

Retail customers in metropolitan and surrounding communities

Stock Yards Bancorp, Inc. serves individuals through its 73 branch offices across the Louisville, central, eastern, and northern Kentucky, Indianapolis, Indiana, and Cincinnati, Ohio metropolitan markets. Total deposits for the bank reached $7.64 billion as of September 30, 2025. The bank's total assets were $9.31 billion at that same date.

Residential real estate borrowers and depositors

Residential real estate loans contributed to the overall loan growth of 10% year-over-year, with total loans reaching $6.93 billion as of September 30, 2025. The mortgage company offers conventional, VA, and FHA financing, and generally sells these residential mortgage loans into the secondary market. Total deposits grew by $918 million, or 14%, over the last 12 months ending September 30, 2025.

Local municipalities and public entities

The Commercial Banking segment provides Treasury Management services, which are utilized by businesses and likely include public entities within its operating footprint in Kentucky, Indiana, and Ohio.

Here's a quick look at the financial scale tied to these customer groups as of September 30, 2025:

The customer relationship is supported by several service offerings:

• Commercial Banking provides deposit services and Treasury Management.
• The mortgage company offers conventional, VA, and FHA financing.
• WM&T provides investment management and trust administration.
• The bank operates 73 branch offices across its markets.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Cost Structure

You're looking at the expense side of Stock Yards Bancorp, Inc. (SYBT) operations as of late 2025. For a regional bank, the cost structure is heavily weighted toward people and the money it pays to hold deposits.

The largest single bucket of operating costs, outside of funding costs, is personnel. For the third quarter of 2025, compensation expense alone hit $28,836 thousand, and employee benefits added another $4,878 thousand for that period. This reflects the cost of maintaining a large employee base across the footprint.

Funding costs are critical. While the overall cost of funds saw a minor increase on a linked-quarter basis, the cost of interest-bearing deposits was reported at 2.60% in Q3 2025. The total interest expense on deposits for the quarter was $39,294 thousand.

Non-interest expenses show management is dealing with rising operational costs. Total non-interest expenses for Q3 2025 were $53,831 thousand, which represents an 11% year-over-year increase from Q3 2024's $48,452 thousand. This increase was primarily driven by higher compensation and bonus accruals, plus marketing expenses.

Physical presence is a fixed cost. Occupancy and equipment costs for the 73 branch network-spanning Louisville, central, eastern and northern Kentucky, plus Indianapolis and Cincinnati-totaled $4,086 thousand in Q3 2025, though the year-to-date figure was higher at $12,234 thousand. Remember, management noted plans for two new branches by the end of the year, which will put upward pressure on this line item going into 2026.

Credit quality management is a direct cost, too. The provision for credit losses recognized in Q3 2025 was $1,975 thousand. This provision kept the allowance for credit losses to total loans ratio steady at 1.33% as of September 30, 2025, which is a strong position, down slightly from 1.36% at the end of Q3 2024.

Here's a quick look at the major cost components for the third quarter of 2025:

You can see the cost structure is highly sensitive to both interest rate movements affecting deposit funding and personnel costs associated with market expansion.

• Personnel expenses are the largest component of non-interest costs.
• Interest expense on deposits is the primary funding cost.
• Non-interest expenses rose by 11% year-over-year in Q3 2025.
• Occupancy costs support the physical footprint, including planned expansion.
• Credit loss provisioning remains relatively low at $1,975 thousand for the quarter.

Finance: draft 13-week cash view by Friday.

Stock Yards Bancorp, Inc. (SYBT) - Canvas Business Model: Revenue Streams

You're looking at how Stock Yards Bancorp, Inc. actually makes its money, which is a classic, sturdy regional bank model, but with a nice kicker from wealth management. The core engine is definitely the loan book, but the non-interest income provides important diversification, which management noted helps them navigate rate changes. The bank reported total assets of $9.31 billion as of September 2025.

Net Interest Income (NII) from a loan portfolio of $6.93 billion

The primary revenue driver is the Net Interest Income (NII), which comes directly from the spread between what Stock Yards Bancorp, Inc. earns on its assets, like loans, and what it pays on its liabilities, like deposits. As of September 30, 2025, the total loan portfolio stood at $6.93 billion, reflecting a 10% year-over-year increase. This strong earning asset growth fueled a 19% year-over-year increase in NII for the third quarter of 2025. For that quarter, the Net Interest Income reached $77.0 million, with the Net Interest Margin (NIM) expanding to 3.56%. That's the bread and butter of the operation right there.

Here's a quick look at the major components of revenue as of the latest reported periods in 2025:

Fee-based income from Wealth Management & Trust services

The Wealth Management & Trust (WM&T) segment provides a fee-based stream that isn't directly tied to interest rate movements. As of Q3 2025, WM&T income was $10.7 million. This segment manages substantial client assets, with Assets Under Management (AUM) approximating $7.48 billion. The bank saw positive momentum here, with AUM increasing by $163 million compared to the third quarter of 2024.

Treasury management fees from commercial clients

Fees generated from Treasury Management services for commercial clients show consistent growth, which is a good indicator of commercial banking relationship depth. For the second quarter of 2025, these fees reached a record $3.0 million, which was up 6% over the second quarter of 2024.

Service charges on deposit accounts and card income

This category rolls up into the broader non-interest income. While the total non-interest income for Q3 2025 was $24.5 million, a slight 1% decrease year-over-year, specific components show mixed results. For instance, card income in the first quarter of 2025 was down 4% compared to the first quarter of 2024 due to lower transaction volume.

The overall non-interest income stream is diversified, and Stock Yards Bancorp, Inc. management noted that:

• WM&T income was constrained in Q3 2025 by the absence of non-recurring estate fees compared to the prior period.
• Mortgage banking income showed year-over-year growth in Q3 2025.
• The bank recorded a $74,000 gain on the sale of premises and equipment in Q2 2025.

Gains from selling residential mortgage loans into the secondary market

While specific, isolated figures for gains from selling residential mortgage loans aren't explicitly itemized separately from the overall non-interest income, the growth in mortgage banking income in Q3 2025 confirms activity in this area is contributing positively to the fee revenue base. The bank is clearly monetizing its origination activity by moving loans off the balance sheet.

Finance: draft 13-week cash view by Friday.