LOUISVILLE, Ky.--(BUSINESS WIRE)--July 22, 2009--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 2009. The Company's second quarter earnings reflected ongoing strong fundamentals in the second quarter of 2009, as S.Y. Bancorp continued to post solid loan growth despite economic uncertainties that have made borrowers hesitant. The Company's loan portfolio increased 6% year over year as of June 30, 2009, closely tracking the 7% year-over-year growth at the end of the first quarter of 2009. Similarly, deposits also grew 6% year over year as of June 30, 2009. Second quarter 2009 earnings declined compared with the year-earlier period due primarily to three factors. First, S.Y. Bancorp incurred higher FDIC premiums, which reduced earnings for the second quarter and first six months of 2009 by $0.05 per diluted share and $0.07 per diluted share, respectively, due in large part to a special FDIC assessment in the second quarter of 2009. Second, net interest income now reflects additional interest expense related to the Company's trust preferred securities, which were issued in December 2008. Lastly, the Company increased its provision for loan losses as S.Y. Bancorp continued to respond aggressively to ongoing recessionary pressures that have resulted in a higher level of non-performing loans over the last year and some slippage in other credit quality metrics. A summary of results for the second quarter and six-month period follows:

Quarter Ended June 30,		2009			2008		Change
Net income	$	4,288,000		$	6,129,000		-30	%
Net income per share, diluted	$	0.31		$	0.45		-31	%
Return on average equity		11.53	%		18.30	%
Return on average assets		1.01	%		1.60	%

Six Months Ended June 30,		2009			2008		Change
Net income	$	9,025,000		$	11,167,000		-19	%
Net income per share, diluted	$	0.66		$	0.82		-20	%
Return on average equity		12.33	%		16.85	%
Return on average assets		1.10	%		1.49	%

Commenting on the Company's results, David Heintzman, Chairman and Chief Executive Officer, said, "Earnings for the second quarter declined against the backdrop of a severe and protracted recession. Facing these challenges, we have continued to approach credit quality with a sense of urgency and with a characteristic conservative stance that has underscored our approach to lending and relationship management all along. This discipline has enabled us to maintain a relatively low level of problem loans and charge-offs, even now as we compare against the minimal amounts we have reported over the past few years. We continue to fare better than many banks in terms of credit costs, although we believe no bank can remain immune from the immense pressures of this economic downturn."

In the second quarter of 2009, the Company's capital levels remained in excess of what is required to be considered "well-capitalized" under regulatory standards – the highest capital rating a financial institution can earn. The Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio at June 30, 2009, were 10.49%, 11.73% and 13.52%, respectively, all exceeding the required minimums of 5%, 6% and 10%, respectively, to be deemed a well-capitalized institution. The ratio of tangible common equity to total tangible assets (both non-GAAP measures – see reconciliation to closest GAAP measures later in this release) stood at 8.46% of total assets as of June 30, 2009, versus 8.39% at June 30, 2008, and 8.93% at March 31, 2009. The Company provides this ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy, as it reflects the level of capital available to withstand unexpected market conditions.

Heintzman noted that the Company's second quarter loan growth reflected ongoing stability in its home market of Louisville as well as the continued contribution from newer markets in Indianapolis and Cincinnati. Regarding Cincinnati, he pointed out that the Company recently acquired property for a second location there, with the office projected to open next year. "We are pleased with the steady growth we have seen in our newer locations in Indianapolis and Cincinnati, which reflects the attractive potential of these markets for a customer-service-oriented community bank like ours," he said. "These new markets have represented approximately 38% of our total loan growth over the past year." Still, Heintzman noted that the Company's newer locations in Indianapolis and Cincinnati continue to ramp up to profitability and, thus, these investments in future growth create some drag on current earnings.

Concluding, Heintzman said, "Considering the current economy, we view the state of our business from two vantage points. The first is credit quality, and we know this eroded somewhat in the second quarter. Because of our conservative credit culture and the resilient nature of our home market in Louisville, which so far has escaped many of the problems that other overheated markets around the country have experienced, we have been able to avoid many of the devastating problems that have affected other banks during this economic downturn. However, with the recession continuing, a risk continues that real estate values have yet to stabilize, business profits will continue to be stressed, and the financial strength of our borrowers and guarantors, which traditionally has represented an additional source of security for many loans, may continue to be negatively affected by the financial markets. As these conditions continue, it is prudent to anticipate that credit quality will remain under pressure and, thus, we expect our provision for loan losses will remain at elevated levels over at least the near term.

"Second, we look at our business from a fundamental standpoint, and with respect to continued growth in the future," Heintzman continued. "We are pleased with the progress being made in this regard, with continued growth in Louisville, Indianapolis and Cincinnati, and we believe this success underscores both immediate potential of the markets we serve and the demonstrated validity of the business model we use to expand to new markets. This long-term view, we believe, is one of the reasons why S.Y. Bancorp has earned a reputation as one of the best-performing community banks in the nation, as seen again last month when US Banker magazine ranked the Company nineteenth among the country's top 200 community banks and thrifts with total assets of less than $2 billion."

S.Y. Bancorp's total assets increased 9% to $1.747 billion at June 30, 2009, from $1.596 billion at June 30, 2008, and were up 7% from $1.631 billion at March 31, 2009. The change in total assets was driven by strong growth in the Company's loan portfolio, which rose 6% to $1.399 billion at June 30, 2009, from $1.321 billion at June 30, 2008, and 2% versus $1.376 billion at March 31, 2009. Deposits increased 6% to $1.337 billion at June 30, 2009, compared with $1.263 billion a year ago, and were up 4% from $1.286 billion at the end of the first quarter of 2009, with increases largely reflecting both higher time and demand deposits.

Despite ongoing loan growth, net interest income – the Company's largest source of revenue – declined $98,000 or less than 1% in the second quarter of 2009 compared with the year-earlier period due to a lower net interest margin. In the second quarter of 2009, net interest margin fell 43 basis points year over year to 3.66% from 4.09% in the second quarter of 2008, and was down 14 basis points from the first quarter of 2009. This margin erosion reflected the declining interest rate environment of the past year, higher interest expense in the current year related to the Company's December 2008 issuance of the trust preferred securities, and the impact of maintaining a significantly higher liquidity position in 2009, which management considers prudent to strengthen given the current operating environment. For the first half of 2009, net interest income increased $749,000 or 3% compared with the prior-year period. Net interest margin for the first half of 2009 was down 29 basis points to 3.73% from 4.02% a year ago.

The ratio of non-performing loans to total loans for the second quarter of 2009 increased to 0.63% from 0.42% in the second quarter of 2008 and, on a linked-quarter basis, rose from 0.43% in the first quarter of 2009. This increase reflected ongoing economic pressures as the recession continues and inevitably affects a larger number of borrowers; still, the current level of non-performing loans to total loans was within the range experienced for the past five years. Non-performing assets, however, which includes non-performing loans, other real estate owned and repossessed assets, have remained more stable over the past year, at $10,440,000 or 0.60% of total assets at June 30, 2009, versus $8,476,000 or 0.53% of total assets at the end of the year-earlier quarter, and $7,529,000 or 0.46% of total assets at March 31, 2009. Concurrent with the increase in non-performing loans, net charge-offs also increased in the second quarter of 2009, rising to $1,331,000 or 0.10% of average loans compared with $616,000 or 0.05% of average loans in the year-earlier quarter and $798,000 or 0.06% of average loans in the first quarter of 2009. Historically conservative in its stance toward credit quality, S.Y. Bancorp intends to remain vigilant as it formulates provisions for loan losses considering continued weakness in the economy and ongoing uncertainty surrounding the depth and duration of this recession.

Management considers the volatility and disruption experienced in credit markets over the past year and the effect of those factors on the Company's loan portfolio in determining the provision and allowance for loan losses, along with the stress placed on borrowers by deteriorating economic conditions and declining collateral values. Because of these risks, coupled with increases in the level of non-performing loans and classified assets, the Company increased its loan loss provision for the second quarter of 2009 to $2,200,000 from $975,000 in the year-earlier period. The Company's allowance for loan losses was 1.22% of total loans at June 30, 2009, up from 1.09% at June 30, 2008, and 1.18% at March 31, 2009.

Because of the relatively low level of non-performing assets, the Company thus far has been able to approach loan workouts and collateral sales in an orderly fashion to minimize losses. Should market conditions worsen and non-performing loans spike, this flexibility may be reduced, and management may need to liquidate problem loans more rapidly, thus increasing the possibility of larger losses.

Non-interest income increased $407,000 or 5% in the second quarter compared with the same quarter last year, largely reflecting an increase of $760,000 or 128% in other non-interest income related mainly to realized and unrealized gains of an investment in a domestic private equity fund recorded using the equity method of accounting, as well as an increase of $125,000 or 39% in gains on sales of mortgage loans. These higher amounts were offset partially by a continued decline in investment management and trust services income, which constitutes the single largest component of non-interest income. For the second quarter of 2009, investment management and trust services income fell $435,000 or 13% due to a year-over-year decline in stock market values generally, inasmuch as these fees largely track securities' market values, as well as a reduction in non-recurring estate fees. Non-interest income declined $509,000 or 3% in the first half of 2009 compared with the year-earlier period, representing lower management and trust income and service charge income, offset partially by higher other non-interest income.

Non-interest expense increased $1,698,000 or 14% in the second quarter of 2009 versus the same period last year. Higher non-interest expense for the quarter was due primarily to an increase of $1,155,000 in FDIC insurance expense, including a $786,000 special assessment, and $303,000 or 4% in salaries and employee benefits expense reflecting higher per capita salaries in 2009 due to the creation of new management-level positions, even though the Company's overall staffing level remains essentially flat. Non-interest expense rose $1,897,000 or 8% in the first half of 2009 compared with the year-earlier period primarily due to increased FDIC insurance expense, higher salaries and employee benefits expense, and higher state bank taxes. The Company's second quarter efficiency ratio was 61.96% compared with 55.25% in the second quarter of 2008 and 58.61% in the first quarter of 2009.

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, 2009, to stockholders of record as of June 15, 2009.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.747 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. Financial Information
Second Quarter 2009 Earnings Release
(In thousands unless otherwise noted)

	Second Quarter Ended				Six Months Ended
	June 30,				June 30,
		2009		2008		2009		2008
Income Statement Data
Net interest income, fully tax equivalent (1)	$	14,581	$	14,662	$	28,952	$	28,170
Interest income
Loans	$	19,204	$	20,050	$	37,947	$	40,382
Federal funds sold		17		84		20		139
Mortgage loans held for sale		105		87		181		148
Securities		1,471		1,256		3,166		2,686
Total interest income		20,797		21,477		41,314		43,355
Interest expense
Deposits		4,664		5,635		9,337		12,661
Securities sold under agreements to repurchase and federal funds purchased
		65		276		146		730
Other short-term borrowings		-		117		-		227
Federal Home Loan Bank advances		868		1,033		1,648		2,059
Subordinated debentures		883		1		1,758		2
Total interest expense		6,480		7,062		12,889		15,679
Net interest income		14,317		14,415		28,425		27,676
Provision for loan losses		2,200		975		3,825		2,200
Net interest income after provision for loan losses		12,117		13,440		24,600		25,476
Non-interest income
Investment management and trust income		2,801		3,236		5,472		6,515
Service charges on deposit accounts		2,038		2,117		3,849		4,109
Bankcard transaction revenue		747		691		1,406		1,312
Gains on sales of mortgage loans held for sale		444		319		943		755
Brokerage commissions and fees		437		444		822		885
Bank owned life insurance		245		258		488		510
Other non-interest income		1,352		592		1,645		1,048
Total non-interest income		8,064		7,657		14,625		15,134
Non-interest expense
Salaries and employee benefits expense		7,629		7,326		14,989		14,633
Net occupancy expense		1,013		1,036		2,021		2,045
Data processing expense		1,002		896		1,808		1,648
Furniture and equipment expense		307		276		599		552
State bank taxes		474		314		862		654
FDIC insurance expense		1,245		90		1,667		264
Other non-interest expenses		2,360		2,394		4,353		4,606
Total non-interest expense		14,030		12,332		26,299		24,402
Net income before income tax expense		6,151		8,765		12,926		16,208
Income tax expense		1,863		2,636		3,901		5,041
Net income	$	4,288	$	6,129	$	9,025	$	11,167

Weighted average shares - basic		13,564		13,409		13,532		13,431
Weighted average shares - diluted		13,729		13,584		13,683		13,598

Basic earnings per share	$	0.32	$	0.46	$	0.67	$	0.83
Diluted earnings per share		0.31		0.45		0.66		0.82
Cash dividend declared per share		0.17		0.17		0.34		0.34

Balance Sheet Data (at period end)
Total loans					$	1,398,679	$	1,320,509
Allowance for loan losses						17,077		14,456
Total assets						1,746,759		1,596,320
Non-interest bearing deposits						205,403		182,580
Interest bearing deposits						1,131,610		1,080,752
Federal home loan bank advances						90,458		90,000
Subordinated debentures						40,930		60
Stockholders' equity						149,524		134,848
Total shares outstanding						13,580		13,424
Book value per share						11.01		10.05
Market value per share						24.17		21.36

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2009 Earnings Release


	Second Quarter Ended						Six Months Ended
	June 30,						June 30,
		2009			2008			2009			2008
Average Balance Sheet Data
Average federal funds sold	$	30,751		$	16,690		$	17,348		$	11,494
Average investment securities		170,572			110,036			165,790			119,010
Average loans		1,390,379			1,308,304			1,375,964			1,271,745
Average earning assets		1,599,655			1,441,363			1,566,049			1,407,816
Average assets		1,694,508			1,536,473			1,661,208			1,503,313
Average interest bearing deposits		1,116,202			1,013,921			1,098,282			983,611
Average total deposits		1,311,330			1,187,325			1,287,681			1,152,600
Average federal funds purchased and securities sold under agreement to repurchase
		70,827			75,785			70,110			79,702
Average short-term borrowings		1,059			14,671			1,048			14,035
Average long-term debt		125,015			91,379			118,048			90,721
Average interest bearing liabilities		1,313,103			1,195,756			1,287,488			1,168,069
Average stockholders' equity		149,113			134,696			147,631			133,298

Performance Ratios
Annualized return on average assets		1.01	%		1.60	%		1.10	%		1.49	%
Annualized return on average equity		11.53	%		18.30	%		12.33	%		16.85	%
Net interest margin, fully tax equivalent		3.66	%		4.09	%		3.73	%		4.02	%
Non-interest income to total revenue, fully tax equivalent
Non-interest income to total revenue, fully tax equivalent		35.61	%		34.31	%		33.56	%		34.95	%
Efficiency ratio		61.96	%		55.25	%		60.35	%		56.35	%

Capital Ratios
Average stockholders' equity to average assets		8.80	%		8.77	%		8.89	%		8.87	%
Tier 1 risk-based capital								11.73	%		9.26	%
Total risk-based capital								13.52	%		10.26	%
Leverage								10.49	%		8.74	%

Loans by Type
Commercial and industrial							$	347,180		$	331,475
Construction and development								193,855			182,041
Real estate mortgage - commercial investment								286,237			250,007
Real estate mortgage - owner occupied commercial								226,755			222,134
Real estate mortgage - 1-4 family residential								153,316			154,661
Home equity - first lien								39,858
Home equity - junior lien								116,946
Home equity (2)											142,154
Consumer								34,532			38,037

Asset Quality Data
Allowance for loan losses to total loans								1.22	%		1.09	%
Allowance for loan losses to average loans								1.24	%		1.14	%
Allowance for loan losses to non-performing loans								193.62	%		263.75	%
Nonaccrual loans							$	6,123		$	4,938
Troubled debt restructuring								773			-
Loans - 90 days past due & still accruing								1,924			543
Total non-performing loans								8,820			5,481
OREO and repossessed assets								1,620			2,995
Total non-performing assets								10,440			8,476
Non-performing loans to total loans								0.63	%		0.42	%
Non-performing assets to total assets								0.60	%		0.53	%
Net charge-offs to average loans (3)		0.10	%		0.05	%		0.15	%		0.09	%
Net charge-offs	$	1,331		$	616		$	2,129		$	1,194

Other Information
Total assets under management (in millions)							$	1,375		$	1,536
Full-time equivalent employees								457			457

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2009 Earnings Release


	Five Quarter Comparison
		6/30/09		3/31/09		12/31/08		9/30/08			6/30/08
Income Statement Data
Net interest income, fully tax equivalent (1)	$	14,581	$	14,371	$	14,981	$	14,722		$	14,662
Net interest income	$	14,317	$	14,108	$	14,717	$	14,465		$	14,415
Provision for loan losses		2,200		1,625		950		900			975
Net interest income after provision for loan losses		12,117		12,483		13,767		13,565			13,440
Investment management and trust income		2,801		2,671		2,803		2,885			3,236
Service charges on deposit accounts		2,038		1,811		2,045		2,196			2,117
Bankcard transaction revenue		747		659		671		662			691
Gains on sales of mortgage loans held for sale		444		499		254		366			319
Gain (loss) on the sale of securities		-		-		-		(607	)		-
Brokerage commissions and fees		437		385		499		413			444
Bank owned life insurance		245		243		247		263			258
Other non-interest income		1,352		293		110		580			592
Total non-interest income		8,064		6,561		6,629		6,758			7,657
Salaries and employee benefits expense		7,629		7,360		6,565		6,966			7,326
Net occupancy expense		1,013		1,008		1,081		1,121			1,036
Data processing expense		1,002		806		838		840			896
Furniture and equipment expense		307		292		275		290			276
State bank taxes		474		388		340		340			314
FDIC Insurance expense		1,245		422		182		176			90
Other non-interest expenses		2,360		1,993		3,810		2,371			2,394
Total non-interest expense		14,030		12,269		13,091		12,104			12,332
Net income before income tax expense		6,151		6,775		7,305		8,219			8,765
Income tax expense		1,863		2,038		2,239		2,776			2,636
Net income	$	4,288	$	4,737	$	5,066	$	5,443		$	6,129

Weighted average shares - basic		13,564		13,500		13,463		13,435			13,409
Weighted average shares - diluted		13,729		13,637		13,675		13,652			13,584

Basic earnings per share	$	0.32	$	0.35	$	0.38	$	0.41		$	0.46
Diluted earnings per share		0.31		0.35		0.37		0.40			0.45
Cash dividend declared per share		0.17		0.17		0.17		0.17			0.17

Balance Sheet Data (at period end)
Total loans	$	1,398,679	$	1,376,225	$	1,349,637	$	1,316,661		$	1,320,509
Allowance for loan losses		17,077		16,208		15,381		14,785			14,456
Total assets		1,746,759		1,630,724		1,628,763		1,653,456			1,596,320
Non-interest bearing deposits		205,403		190,080		182,778		184,647			182,580
Interest bearing deposits		1,131,610		1,095,954		1,088,147		1,081,319			1,080,752
Federal home loan bank advances		90,458		70,460		70,000		90,000			90,000
Subordinated debentures		40,930		40,930		40,960		10,060			60
Stockholders' equity		149,524		146,931		144,500		138,910			134,848
Total shares outstanding		13,580		13,541		13,474		13,457			13,424
Book value per share		11.01		10.85		10.72		10.32			10.05
Market value per share		24.17		24.30		27.50		30.62			21.36

S. Y. Bancorp, Inc. Financial Information
Second Quarter 2009 Earnings Release

	Five Quarter Comparison
		6/30/09			3/31/09			12/31/08			9/30/08			6/30/08
Average Balance Sheet Data
Average loans	$	1,390,379		$	1,361,389		$	1,323,434		$	1,315,401		$	1,308,304
Average assets		1,694,508			1,627,538			1,616,476			1,647,361			1,536,473
Average earning assets		1,599,655			1,532,070			1,520,146			1,552,961			1,441,363
Average total deposits		1,311,330			1,263,769			1,268,244			1,292,493			1,187,325
Average long-term debt		125,015			111,003			85,909			90,169			91,379
Average interest bearing liabilities		1,313,103			1,261,589			1,251,603			1,294,216			1,195,756
Average stockholders' equity		149,113			146,132			141,129			136,664			134,696

Performance Ratios
Annualized return on average assets		1.01	%		1.18	%		1.25	%		1.31	%		1.60	%
Annualized return on average equity		11.53	%		13.15	%		14.28	%		15.84	%		18.30	%
Net interest margin, fully tax equivalent		3.66	%		3.80	%		3.92	%		3.79	%		4.09	%
Non-interest income to total revenue, fully tax equivalent
Non-interest income to total revenue, fully tax equivalent		35.61	%		31.23	%		30.68	%		31.46	%		34.31	%
Efficiency ratio		61.96	%		58.61	%		60.58	%		56.35	%		55.25	%

Capital Ratios
Average stockholders' equity to average assets		8.80	%		8.98	%		8.73	%		8.30	%		8.77	%
Tier 1 risk-based capital		11.73	%		12.07	%		12.11	%		9.55	%		9.26	%
Total risk-based capital		13.52	%		13.89	%		13.90	%		11.26	%		10.26	%
Leverage		10.49	%		10.75	%		10.62	%		8.40	%		8.74	%

Loans by Type
Commercial and industrial	$	347,180		$	364,004		$	348,174		$	338,373		$	331,475
Construction and development		193,855			172,759			167,402			173,879			182,041
Real estate mortgage - commercial investment		286,237			253,213			248,308			245,917			250,007
Real estate mortgage - owner occupied commercial		226,755			246,196			249,164			223,226			222,134
Real estate mortgage - 1-4 family residential		153,316			154,986			160,322			156,818			154,661
Home equity - 1st lien		39,858			35,014			22,973			24,458
Home equity - junior lien		116,946			119,791			122,535			118,672
Home equity (2)														142,154
Consumer		34,532			30,262			30,759			35,318			38,037

Asset Quality Data
Allowance for loan losses to total loans		1.22	%		1.18	%		1.14	%		1.12	%		1.09	%
Allowance for loan losses to average loans		1.23	%		1.19	%		1.16	%		1.12	%		1.10	%
Allowance for loan losses to non-performing loans		193.62	%		277.01	%		326.56	%		375.25	%		263.75	%
Nonaccrual loans	$	6,123		$	4,539		$	4,455		$	3,880		$	4,938
Troubled debt restructuring		773			-			-			-			-
Loans - 90 days past due & still accruing		1,924			1,312			255			60			543
Total non-performing loans		8,820			5,851			4,710			3,940			5,481
OREO and repossessed assets		1,620			1,678			1,656			3,182			2,995
Total non-performing assets		10,440			7,529			6,366			7,122			8,476
Non-performing loans to total loans		0.63	%		0.43	%		0.35	%		0.30	%		0.42	%
Non-performing assets to total assets		0.60	%		0.46	%		0.39	%		0.43	%		0.53	%
Net charge-offs to average loans (3)		0.10	%		0.06	%		0.03	%		0.04	%		0.05	%
Net charge-offs		1,331		$	798		$	354		$	571		$	616

Other Information
Total assets under management (in millions)	$	1,375		$	1,304		$	1,347		$	1,464		$	1,536
Full-time equivalent employees		457			460			464			459			457

(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) - In September 2008, the Company changed its presentation for disclosing the types of loans in its portfolio to provide more detailed information. Home equity lines of credit were divided into two categories - first lien and junior lien; however, it was not feasible to obtain comparable amounts for these categories for prior periods.

(3) - 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

D.	Exhibits

	99.1	Press Release dated July 22, 2009

Date:	July 22, 2009	S.Y. BANCORP, INC.

		By:	/s/ Nancy B. Davis
			Nancy B. Davis, Executive Vice
			President, Treasurer and Chief
			Financial Officer

Tangible Common Equity Ratio (Amounts in thousands)

		6/30/2009			3/31/2009			6/30/2008
Total stockholders' equity (a)	$	149,524		$	146,930		$	134,848
Less goodwill		(682	)		(682	)		(682	)
Less mortgage servicing rights		(1,140	)		(804	)		(400	)
Tangible common equity (c)	$	147,702		$	145,444		$	133,766

Total assets (b)	$	1,746,759		$	1,630,724		$	1,596,320
Less goodwill		(682	)		(682	)		(682	)
Less mortgage servicing rights		(1,140	)		(804	)		(400	)
Tangible assets (d)	$	1,744,937		$	1,629,238		$	1,595,238

Total stockholders' equity to total assets (a/b)		8.56	%		9.01	%		8.45	%
Tangible common equity ratio (c/d)		8.46	%		8.93	%		8.39	%