Stock Yards Bancorp (SYBT) 8-K S.Y. Bancorp Announces Record Quarterly Per Share Results as Diluted EPS Increase 5% over Same Period Last Year

Exhibit 99.1

S.Y. Bancorp Announces Record Quarterly Per Share Results as Diluted EPS Increase 5% over Same Period Last Year

LOUISVILLE, Ky.--(BUSINESS WIRE)--S.Y. Bancorp, Inc. (NASDAQ:SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville metropolitan area, Indianapolis and Cincinnati, today reported financial results for the second quarter and first half of 2008. Highlights of the report, which reflected record earnings per share for the quarter, included a continued upswing in quarterly loan growth despite turmoil in the economy, as the Company's loan portfolio increased 14% year over year in the second quarter, surpassing the 9% year-over-year growth in the first quarter of 2008. Concurrent with this growth, the Company also reported that asset quality remained solid. A summary of results for the second quarter and six-month period follows:

Quarter Ended June 30,		2008		2007	Change
Net income	$	6,129,000	$	6,297,000	-3%
Net income per share, diluted	$	0.45	$	0.43	5%
Return on average equity		18.30%		17.90%
Return on average assets		1.60%		1.80%
Six Months Ended June 30,		2008		2007	Change
Net income	$	11,167,000	$	12,001,000	-7%
Net income per share, diluted	$	0.82	$	0.82	0%
Return on average equity		16.85%		17.26%
Return on average assets		1.49%		1.72%

Commenting on the Company's progress, David Heintzman, Chairman and Chief Executive Officer, said, "It is gratifying that, in the face of difficult economic conditions, S.Y. Bancorp has continued to demonstrate sound long-term fundamentals, most notably signified by robust loan growth. Despite national economic trends, our asset quality has remained strong. All of these factors bode well for the Company's fundamental performance in the future and serve to counter the near-term impact of our expansion to new markets, which has placed additional pressure on earnings as these newer offices continue to gain momentum."

Heintzman pointed out that in the fourth quarter of 2007, the Company opened a second office in Indianapolis and entered the Cincinnati market with one new office there. Expenses for those offices were in the process of ramping up in the second half of 2007 in terms of personnel and office space, and those expenses only reached normalized operating levels beginning in 2008. While these expansion initiatives contributed to the Company's loan growth in the second quarter, their start-up expenses also weighed on Company's second quarter earnings as the breakeven point for new offices is usually 18 months or more.

Heintzman noted that recent weakness in the broader stock market has hurt one important area of non-interest income for the Company. Income from investment management and trust services, which constitutes the single largest component of non-interest income, has been virtually flat in 2008 compared with average double-digit increases in the last several years. While assets under management declined slightly to $1.536 billion at June 30, 2008, growth from net new accounts was nearly $50 million or double that of second quarter 2007.

Concluding, Heintzman said, "Recent capital management strategies, primarily focused on stock repurchases, resulted in higher earnings per share for the second quarter of 2008 versus the year-earlier period despite slightly lower net income for the period. Although we are pleased with our progress in many aspects of our business, we remain cautious about the near term, knowing that current economic pressures will continue to have an impact on already fluid conditions in the housing and credit markets. We believe the Company's second quarter performance was solid given these conditions, showing the fundamental strength and diversity of our business and markets, and we remain confident in our strategies to drive top- and bottom-line growth over the longer term."

S.Y. Bancorp's total assets increased 12% to $1.596 billion at June 30, 2008, from $1.425 billion at June 30, 2007, and were up 5% from $1.517 billion at March 31, 2008. The year-over-year change in total assets was driven by strong growth in the Company's loan portfolio, which rose 14% to $1.321 billion at June 30, 2008, from $1.163 billion at June 30, 2007, and 2% versus $1.290 billion at March 31, 2008. Deposits increased 16% to $1.263 billion at June 30, 2008, compared with $1.085 billion a year ago, and were up 10% from $1.148 billion at the end of the first quarter of 2008, with increases largely reflecting higher time deposits.

Net interest income, the Company's largest source of revenue, increased $795,000 or 6% in the second quarter of 2008 compared with the year-earlier period, reflecting primarily the impact of the Company's growing loan portfolio. Net interest margin for the second quarter declined 19 basis points year over year to 4.07% from 4.26% in the second quarter of 2007, but improved 12 basis points from 3.95% in the first quarter of the year. While the net interest margin expanded sequentially from the first quarter of 2008, management expects that strong competition for deposits used to fund loan growth will put pressure on margins in upcoming quarters. For the first half of 2008, net interest income increased $642,000 or 2% versus the same period last year, primarily because of strong loan growth, which offset pressure on net interest margin in the wake of recent rate cuts by the Federal Reserve together with competitive factors. For the first six months of 2008, the Company's net interest margin was 4.01% compared with 4.24% in the year-earlier period.

Non-performing loans for the second quarter increased to $5,481,000 from $4,769,000 in the second quarter of 2007, and, on a linked-quarter basis, increased from $4,589,000 in the first quarter of 2008. However, the ratio of non-performing loans to total loans was 0.42% in the second quarter of 2008, compared with 0.41% in the second quarter of last year, and up slightly from 0.36% in the first quarter of 2008. Despite the sequential quarterly increase in non-performing loans, non-performing loans to total loans, at 0.42%, remains below the average for the past five years. Also, net charge-offs totaled $616,000 in the second quarter of 2008, or 0.05% of average loans in the second quarter of 2008, which was unchanged from both the year-earlier quarter and the first quarter of 2008. Further, loans past due less than 90 days fell in the second quarter of 2008 compared with the first quarter of 2008.

The Company's allowance for loan losses was 1.09% of total loans at June 30, 2008, up from 1.04% at June 30, 2007, but unchanged from 1.09% at March 31, 2008. For the second quarter of 2008, the loan loss provision totaled $975,000 versus $460,000 in the year-earlier period. For the first six months of 2008, the loan loss provision totaled $2,200,000 versus $1,240,000 in the first half of 2007.

Non-interest income declined $57,000 or 1% in the second quarter compared with the same quarter last year, primarily due to lower investment management and trust income, which fell $100,000 or 3% during the quarter; reduced service charge income, which declined $87,000 or 4%; and lower gains on sales of mortgage loans, which were down $40,000 or 10%. These declines were partially offset by higher bankcard transaction revenue, which rose $101,000 or 17% for the quarter. Non-interest income increased $137,000 or 1% in the first half of 2008 compared with the year-earlier period, primarily reflecting a slowdown in service charge income and management and trust income.

Non-interest expense increased $817,000 or 7% in the second quarter of 2008 versus the same period last year. Higher non-interest expense for the quarter was due primarily to an increase of $735,000 or 11% in salaries and employee benefits, in part reflecting staffing costs for a second banking location in the Indianapolis market and a new banking office in the Cincinnati market, both opened since the first quarter last year, along with an associated increase of $106,000 in net occupancy expense. These increases were offset somewhat by a decline of $155,000 in data processing expenses. Non-interest expense rose $1,386,000 or 6% in the first half of 2008 compared with the year-earlier period primarily due to salaries and employee benefits.

The Company's second quarter efficiency ratio was 55.19% compared with 53.22% in the second quarter of 2007 and 57.26% in the first quarter of 2008.

In May, S.Y. Bancorp's Board of Directors declared its regular quarterly cash dividend of $0.17 per share. The latest dividend was distributed on July 1, 2008, to stockholders of record as of June 16, 2008. During the second quarter of 2008, S.Y. Bancorp made no repurchases of its common stock, choosing instead to use its capital to support loan growth. The Company has remaining authorization to purchase up to 163,000 shares under the current plan, which will expire in November 2008 unless otherwise extended or completed at an earlier date.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.596 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904.

This report contains forward-looking statements under the Private Securities Litigation Reform Act that involve risks and uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets in which the Company and its subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company.

S.Y. Bancorp, Inc. Summary Unaudited Financial Information (in thousands except per share amounts)
	Second Quarter Ended June 30,				Six Months Ended June 30,
		2008		2007		2008		2007
Interest income	$	21,436	$	22,815	$	43,314	$	45,421
Interest expense		7,062		9,236		15,679		18,428
Net interest income		14,374		13,579		27,635		26,993
Provision for loan losses		975		460		2,200		1,240
Net interest income after provision for loan losses
		13,399		13,119		25,435		25,753
Non-interest income		7,667		7,724		15,017		14,880
Non-interest expense		12,301		11,484		24,244		22,858
Net income before income taxes		8,765		9,359		16,208		17,775
Income tax expense		2,636		3,062		5,041		5,774
Net income	$	6,129	$	6,297	$	11,167	$	12,001
Net income per share:
Basic	$	0.46	$	0.44	$	0.83	$	0.84
Diluted	$	0.45	$	0.43	$	0.82	$	0.82
Weighted average shares outstanding:
Basic		13,409		14,325		13,431		14,357
Diluted		13,584		14,536		13,598		14,588
			June 30, 2008		Dec. 31, 2007		June 30, 2007
Total assets			$	1,596,320	$	1,482,219	$	1,425,299
Total loans				1,320,509		1,201,938		1,162,906
Non-interest-bearing deposits				182,580		170,477		184,000
Interest-bearing deposits				1,080,752		936,230		901,316
Total deposits				1,263,332		1,106,707		1,085,316
Stockholders' equity				134,848		133,024		141,888
Book value per share				10.05		9.78		9.92

Unaudited supplemental financial information for the second quarter and six months ended June 30, 2008 and 2007, appears on the following pages.

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2008 Earnings Release
(all figures other than per share amounts and number of employees are expressed in thousands unless otherwise noted)
	Second Quarter Ended				Six Months Ended
	June 30,				June 30,
		2008		2007		2008		2007
Income Statement Data
Net interest income, fully tax equivalent (1)	$	14,621	$	13,856	$	28,129	$	27,553
Net interest income	$	14,374	$	13,579	$	27,635	$	26,993
Provision for loan losses		975		460		2,200		1,240
Net interest income after provision for loan losses		13,399		13,119		25,435		25,753
Gain on the sale of securities		-		-		-		-
Investment management and trust income		3,236		3,336		6,515		6,533
Service charges on deposit accounts		2,117		2,204		4,109		4,222
Bankcard transaction revenue		691		590		1,312		1,132
Gains on sales of mortgage loans held for sale		351		391		694		647
Brokerage commissions and fees		444		452		885		945
Bank owned life insurance		258		247		510		483
Other non-interest income		570		504		992		918
Total non-interest income		7,667		7,724		15,017		14,880
Salaries and employee benefits expense		7,367		6,632		14,555		13,239
Net occupancy expense		1,036		930		2,045		1,820
Data processing expense		896		1,051		1,648		2,066
Furniture and equipment expense		276		290		552		582
State bank taxes		314		311		654		489
Other non-interest expenses		2,412		2,270		4,790		4,662
Total non-interest expense		12,301		11,484		24,244		22,858
Net income before income tax expense		8,765		9,359		16,208		17,775
Income tax expense		2,636		3,062		5,041		5,774
Net income	$	6,129	$	6,297	$	11,167	$	12,001
Weighted average shares - basic		13,409		14,325		13,431		14,357
Weighted average shares - diluted		13,584		14,536		13,598		14,588
Basic earnings per share	$	0.46	$	0.44	$	0.83	$	0.84
Diluted earnings per share		0.45		0.43		0.82		0.82
Cash dividend declared per share		0.17		0.16		0.34		0.31
Balance Sheet Data (at period end)
Total loans					$	1,320,509	$	1,162,906
Allowance for loan losses						14,456		12,065
Total assets						1,596,320		1,425,299
Non-interest bearing deposits						182,580		184,000
Interest bearing deposits						1,080,752		901,316
Federal home loan bank advances						90,000		70,000
Subordinated debentures						60		90
Stockholders' equity						134,848		141,888
Total shares outstanding						13,424		14,298
Book value per share						10.05		9.92
Market value per share						21.36		23.76

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2008 Earnings Release
	Second Quarter Ended						Six Months Ended
	June 30,						June 30,
		2008			2007			2008			2007
Average Balance Sheet Data
Average loans	$	1,308,304		$	1,160,064		$	1,271,745		$	1,151,437
Average assets		1,536,473			1,401,020			1,503,313			1,403,910
Average earning assets		1,443,187			1,304,508			1,409,710			1,309,397
Average deposits		1,187,325			1,075,459			1,152,600			1,086,489
Average long-term debt		91,379			60,420			90,721			58,218
Average interest bearing liabilities		1,195,756			1,048,552			1,168,069			1,056,183
Average stockholders' equity		134,696			141,133			133,298			140,252
Performance Ratios
Annualized return on average assets		1.60	%		1.80	%		1.49	%		1.72	%
Annualized return on average equity		18.30	%		17.90	%		16.85	%		17.26	%
Net interest margin, fully tax equivalent		4.07	%		4.26	%		4.01	%		4.24	%
Non-interest income to total revenue, fully tax equivalent
		34.40	%		35.79	%		34.81	%		35.07	%
Efficiency ratio		55.19	%		53.22	%		56.19	%		53.87	%
Capital Ratios
Average stockholders' equity to average assets		8.77	%		10.07	%		8.87	%		9.99	%
Tier 1 risk-based capital								9.31			10.70
Total risk-based capital								10.32			11.62
Leverage								8.75			10.17
Loans by Type
Commercial and industrial							$	331,665		$	310,697
Construction and development								182,041			127,793
Real estate mortgage - commercial investment								264,743			227,530
Real estate mortgage - owner occupied commercial								207,398			183,199
Real estate mortgage - 1-4 family residential								160,152			145,165
Home equity								142,154			143,015
Consumer								38,037			25,507
Asset Quality Data
Allowance for loan losses to total loans								1.09	%		1.04	%
Allowance for loan losses to average loans								1.14	%		1.05	%
Allowance for loan losses to non-performing loans								263.75	%		252.99	%
Nonaccrual loans							$	4,938		$	4,055
Restructured loans								-			-
Loans - 90 days past due & still accruing								543			714
Total non-performing loans								5,481			4,769
OREO and repossessed assets								2,995			2,780
Total non-performing assets								8,476			7,549
Non-performing loans to total loans								0.42	%		0.41	%
Non-performing assets to total assets								0.53	%		0.53	%
Net charge-offs to average loans (2)								0.09	%		0.12	%
Net charge-offs	$	616		$	578		$	1,194		$	1,378
Other Information
Total assets under management (in millions)							$	1,536		$	1,669
Full-time equivalent employees								457			460

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2008 Earnings Release
	Five Quarter Comparison
		6/30/08		3/31/08		12/31/07		9/30/07		6/30/07
Income Statement Data
Net interest income, fully tax equivalent (1)	$	14,621	$	13,508	$	13,499	$	13,802	$	13,856
Net interest income	$	14,374	$	13,261	$	13,243	$	13,541	$	13,579
Provision for loan losses		975		1,225		1,435		850		460
Net interest income after provision for loan losses		13,399		12,036		11,808		12,691		13,119
Gain on the sale of securities		-		-		-		-		-
Investment management and trust income		3,236		3,279		3,126		3,227		3,336
Service charges on deposit accounts		2,117		1,992		2,276		2,260		2,204
Bankcard transaction revenue		691		621		631		596		590
Gains on sales of mortgage loans held for sale		351		343		290		227		391
Brokerage commissions and fees		444		441		486		498		452
Bank owned life insurance		258		252		252		250		247
Other non-interest income		570		422		739		508		504
Total non-interest income		7,667		7,350		7,800		7,566		7,724
Salaries and employee benefits expense		7,367		7,188		6,898		6,865		6,632
Net occupancy expense		1,036		1,009		985		917		930
Data processing expense		896		752		998		979		1,051
Furniture and equipment expense		276		276		275		291		290
State bank taxes		314		340		340		326		311
Other non-interest expenses		2,412		2,378		2,650		2,149		2,270
Total non-interest expense		12,301		11,943		12,146		11,527		11,484
Net income before income tax expense		8,765		7,443		7,462		8,730		9,359
Income tax expense		2,636		2,405		1,298		2,843		3,062
Net income	$	6,129	$	5,038	$	6,164	$	5,887	$	6,297
Weighted average shares - basic		13,409		13,452		13,779		14,185		14,325
Weighted average shares - diluted		13,584		13,610		13,974		14,400		14,536
Basic earnings per share	$	0.46	$	0.37	$	0.45	$	0.42	$	0.44
Diluted earnings per share		0.45		0.37		0.44		0.41		0.43
Cash dividend declared per share		0.17		0.17		0.16		0.16		0.16
Balance Sheet Data (at period end)
Total loans	$	1,320,509	$	1,289,913	$	1,201,938	$	1,156,899	$	1,162,906
Allowance for loan losses		14,456		14,097		13,450		12,550		12,065
Total assets		1,596,320		1,517,258		1,482,219		1,410,453		1,425,299
Non-interest bearing deposits		182,580		175,028		170,477		167,614		184,000
Interest bearing deposits		1,080,752		972,980		936,230		899,815		901,316
Federal home loan bank advances		90,000		90,000		90,000		70,000		70,000
Subordinated debentures		60		60		90		90		90
Stockholders' equity		134,848		131,547		133,024		138,623		141,888
Total shares outstanding		13,424		13,406		13,600		14,005		14,298
Book value per share		10.05		9.81		9.78		9.90		9.92
Market value per share		21.36		23.24		23.94		27.04		23.76

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2008 Earnings Release
	Five Quarter Comparison
		6/30/08		3/31/08		12/31/07		9/30/07		6/30/07
Average Balance Sheet Data
Average loans	$	1,308,304	$	1,235,185	$	1,178,068	$	1,155,211	$	1,160,064
Average assets		1,536,473		1,470,153		1,436,666		1,409,653		1,401,020
Average earning assets		1,443,187		1,376,233		1,341,624		1,311,152		1,304,508
Average deposits		1,187,325		1,117,873		1,089,400		1,063,718		1,075,459
Average long-term debt		91,379		90,062		76,394		70,090		60,420
Average interest bearing liabilities		1,195,756		1,140,382		1,089,233		1,057,138		1,048,552
Average stockholders' equity		134,696		131,901		135,370		141,583		141,133
Performance Ratios
Annualized return on average assets		1.60%		1.38%		1.70%		1.66%		1.80%
Annualized return on average equity		18.30%		15.36%		18.07%		16.50%		17.90%
Net interest margin, fully tax equivalent		4.07%		3.95%		3.99%		4.18%		4.26%
Non-interest income to total revenue, fully
tax equivalent		34.40%		35.24%		36.62%		35.41%		35.79%
Efficiency ratio		55.19%		57.26%		57.03%		53.95%		53.22%
Capital Ratios
Average stockholders' equity to average assets		8.77%		8.97%		9.42%		10.04%		10.07%
Tier 1 risk-based capital		9.31%		9.07%		9.82%		10.47%		10.70%
Total risk-based capital		10.32%		10.06%		10.82%		11.42%		11.62%
Leverage		8.75%		8.85%		9.21%		9.81%		10.17%
Loans by Type
Commercial and industrial	$	331,665	$	332,144	$	309,506	$	292,240	$	298,006
Construction and development		182,041		174,604		144,668		137,659		145,468
Real estate mortgage - commercial investment		264,743		252,706		240,610		236,847		227,530
Real estate mortgage - owner occupied commercial		207,398		202,714		200,122		186,564		183,199
Real estate mortgage - 1-4 family residential		160,152		148,324		145,362		142,757		140,181
Home equity		142,154		136,064		136,962		136,064		143,015
Consumer		38,037		43,357		24,708		24,768		25,507
Asset Quality Data
Allowance for loan losses to total loans		1.09%		1.09%		1.12%		1.08%		1.04%
Allowance for loan losses to average loans		1.14%		1.14%		1.16%		1.09%		1.05%
Allowance for loan losses to non-performing loans		263.75%		307.19%		399.11%		295.71%		252.99%
Nonaccrual loans	$	4,938	$	4,034	$	2,964	$	2,985	$	4,055
Restructured loans		-		-		-		-		-
Loans - 90 days past due & still accruing		543		555		406		1,259		714
Total non-performing loans		5,481		4,589		3,370		4,244		4,769
OREO and repossessed assets		2,995		3,715		3,831		3,436		2,780
Total non-performing assets		8,476		8,304		7,201		7,680		7,549
Non-performing loans to total loans		0.42%		0.36%		0.28%		0.37%		0.41%
Non-performing assets to total assets		0.53%		0.55%		0.49%		0.54%		0.53%
Net charge-offs to average loans (2)		0.09%		0.05%		0.05%		0.05%		0.05%
Net charge-offs	$	616	$	578	$	535	$	365	$	578
Other Information
Total assets under management (in millions)	$	1,536	$	1,549	$	1,669	$	1,707	$	1,669
Full-time equivalent employees		457		460		446		443		460

(1) - Interest income on a fully tax equivalent basis includes the additional amount of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in assets subject to federal, state and local taxes yielding the same after-tax income.

(2) - Amounts not annualized

Certain prior-period amounts have been reclassified to conform with current presentation.

CONTACT:
S.Y. Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President,
Treasurer and Chief Financial Officer