Page 1

Stock Yards Bancorp Reports Strong Third Quarter Earnings of $ 23.2 Million or $ 0.86 Per Diluted Share Third Quarter Highlighted by Solid Organic Loan Growth and Record Levels of Operating Income LOUISVILLE , Ky . , Oct. 27 , 2021 ( GLOBE NEWSWIRE ) Stock Yards Bancorp , Inc. ( NASDAQ : SYBT ) , parent company of Stock Yards Bank & Trust Company , with offices in Louisville , Central and Eastern Kentucky , as well as the Indianapolis and Cincinnati metropolitan markets , today reported earnings for the third quarter ended September 30 , 2021. Net income for the third quarter was $ 23.2 million , or $ 0.86 per diluted share , compared with net income of $ 14.5 million , or $ 0.64 per diluted share , for the third quarter of 2020. Strong organic loan growth across all markets and record levels of operating ( non - interest ) income highlighted by wealth management and trust , card income and treasury management fees , contributed to strong profitability for the quarter . ( dollar amounts in thousands , except per share data ) Net interest income Provision for credit loss expense ( 6 ) Non - interest income Non - interest expenses Income before income tax expense Income tax expense Net income Net income per share , diluted Net interest margin Efficiency ratio ( 4 ) -- Tangible common equity to tangible assets ( 1 ) Annualized return on average equity ( 7 ) Annualized return on average assets ( 7 ) $ $ 3Q21 45,483 $ ( 1,525 ) 17,614 34,558 30,064 6,902 23,162 0.86 $ 3.14 % 54.63 % 8.64 % 13.92 % 1.50 % 2Q21 41,584 4,147 15,788 48,177 5,048 864 4,184 0.17 3.36 % 83.86 % 8.57 % 3.25 % 0.32 % EXHIBIT 99.1 $ $ $ 3Q20 33,695 4,968 13,043 25,646 16,124 1,591 14,533 0.64 3.26 % 54.79 % 9.52 % 13.57 % 1.34 % " We delivered strong earnings for the third quarter , highlighted by strong organic loan growth , record loan production , solid revenue growth from both organic and acquired assets and record operating income , ” said James A. ( Ja ) Hillebrand , Chairman and Chief Executive Officer . " In addition to solid organic growth , our successful merger with Kentucky Bancshares early in the second quarter of this year has contributed nicely to top line revenue growth . Further , we are confident that our recently announced merger of Commonwealth Bancshares , Inc. ( Commonwealth ) will provide tremendous opportunities to generate additional growth going forward . This combination brings together two Louisville based community banks who are like - minded with similar cultures . The transaction not only builds upon our already prominent market share in the Louisville market , as Commonwealth is the largest privately - held bank headquartered in the Louisville MSA , but also expands our presence in the attractive Shelby County and Northern Kentucky markets . Additionally , and just as important , this combination bolsters our wealth management capabilities , adding significant wealth and trust assets . We remain on track to welcome Commonwealth to the Stock Yards family with an anticipated legal closing date during the fourth quarter . " Commonwealth , headquartered in Louisville , Kentucky , operates 15 retail branches , including 9 in Jefferson County , four in Shelby County and two in Northern Kentucky . As of September 30 , 2021 , Commonwealth reported approximately $ 1.2 billion in assets , $ 711 million in loans ( excluding PPP ) , $ 1.0 billion in deposits and $ 89 million in tangible common equity . Commonwealth also maintains a Wealth Management and Trust Department with total assets under management of $ 2.6 billion at September 30 , 2021 . " During the third quarter , we completed our system conversion of Kentucky Bancshares and the majority of the costs associated with the merger were recognized during the second quarter . Although additional work remains to complete the full integration of the two companies and realize all expected operating synergies , we are exceptionally pleased with the progress we have made through the dedicated efforts of our employees . We anticipate , similar to our two prior successful mergers , the merger with Kentucky Bancshares will result in significant benefits to our expanding group of clients , communities , employees and shareholders , " said Hillebrand . " With loans growing by approximately $ 750 million and deposits by approximately $ 1 billion , the Kentucky Bancshares merger , which was completed on May 31 , 2021 , is already having a significant impact on our operating results - increasing our scale and reach and providing tremendous opportunity for future growth , " said Hillebrand . With the completion of the merger , at September 30 , 2021 , the Company had $ 6.2 billion in assets , $ 4.1 billion in net loans and $ 5.3 billion in total deposits . The combined enterprise , with 63 branch offices , has and will continue to benefit from a diversified geographic footprint with significant growth opportunities . " Due to further economic forecast improvements and continued solid performance of the loan portfolio during the current quarter , we recorded a net benefit of $ 1.5 million to provision for credit loss expense during the third quarter . This compares to a $ 5.0 million net provision expense in the third quarter a year ago . We feel that we are well - positioned for future growth , having established credit loss reserves to total loans ( excluding PPP loans ) , of 1.43 % ( ² ) at September 30 , 2021 , ” concluded Hillebrand . Additional key factors contributing to the third quarter of 2021 results included : • Organic loan growth , excluding PPP loans , totaled $ 128 million for the third quarter of 2021 – the second largest growth quarter in the company's history