Exhibit 99.1

S.Y. Bancorp Announces Third Quarter 2011 Earnings of $5.8 Million or $0.42 Per Diluted Share

LOUISVILLE, Ky.--(BUSINESS WIRE)--October 19, 2011--S.Y. Bancorp, Inc. (NASDAQ:SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville, Indianapolis and Cincinnati metropolitan markets, today reported earnings for the third quarter and first nine months of 2011. The Company's results reflected growth in net interest income, along with another solid performance by its investment management and trust department and lower non-interest expense. This growth, however, was offset by an increase in the provision for loan losses resulting from continued economic pressures on borrowers, as well as lower other non-interest income. Amid these cross currents, net income per diluted share for the third quarter declined 9% to $0.42 compared with the prior-year period, while net income per diluted share for the first nine months of the year increased 2% to $1.25. The following is a summary of the Company's reported results:

Commenting on the results, David Heintzman, Chairman and Chief Executive Officer, said, "Stock Yards Bank & Trust turned in another solid overall performance for the third quarter. Our loan portfolio was up slightly from the second quarter of 2011 during a time of mounting economic and political uncertainty, and was 3% higher on a year-over-year basis. Deposits also continued to rise and investment management and trust department income advanced 10% over the prior-year quarter. Each of these metrics indicates that, despite challenging business conditions, the Bank's markets, competitive position and strategic direction remained fundamentally strong during the third quarter.

"That said, we have long warned that an extended downturn in the economy, such as we have witnessed over the past several years, will increasingly take a toll on borrowers and affect credit quality," Heintzman continued. "During the third quarter, we saw the results of these pressures at Stock Yards Bank. In response to these challenges, we increased our loan loss provision for the third quarter of 2011, which largely accounted for the decline in earnings per diluted share versus the year-earlier quarter.

"We continue to believe the Bank's credit culture and its strategic direction position our company to weather the current economic downturn," Heintzman added. "Today's tough business conditions will not quickly subside, so additional turbulence is likely until the economy finds firmer footing – in terms of a stable housing market, job growth, confidence in the economy, and other factors. Against this backdrop, we remain confident that our strategies for market expansion, which have diversified our business across Louisville, Indianapolis and Cincinnati, will provide additional opportunities to expand the reach of our services. Also, the revenue diversification that we have created with our investment management and trust department, which has increased its assets under management 9% to $1.722 billion during the past 12 months, continues to drive a high level of non-interest income for the Bank." Heintzman noted that new business for the Bank's investment management and trust services has remained strong, as has the retention of existing relationships.

S.Y. Bancorp's total assets increased $106.8 million or 6% to $1.988 billion at September 30, 2011, from $1.881 billion at September 30, 2010. The Company's loan portfolio increased $49.7 million or 3% to $1.539 billion at September 30, 2011, compared with $1.489 billion at September 30, 2010. Total deposits increased $113.8 million or 8% to $1.577 billion at September 30, 2011, from $1.463 billion a year ago.

In the third quarter of 2011, capital levels continued to strengthen and remained well above those required to be considered "well-capitalized" under regulatory standards – the highest capital rating for financial institutions. The Tier 1 leverage ratio, Tier 1 risk-based capital ratio and Total risk-based capital ratio at September 30, 2011, were 10.50%, 12.56% and 14.43%, respectively, all exceeding the required minimums of 5%, 6% and 10%, respectively, necessary to be deemed a well-capitalized institution. The ratio of tangible common equity to total tangible assets was 9.20% as of September 30, 2011, up from 9.17% at June 30, 2011, and 8.88% at September 30, 2010 (see reconciliation of GAAP/non-GAAP measures later in this release). The Company intends to maintain capital ratios at these historically high levels at least until such time as the economy demonstrates sustained improvement.

Net interest income – the Company's largest source of revenue – increased $576,000 or 3% in the third quarter of 2011 to $17.8 million from $17.2 million in the year-earlier period. This change reflected primarily an increased level of interest-earning assets. In the third quarter of 2011, net interest margin was 3.87%, down 11 basis points from 3.98% in the second quarter of 2011, and down 10 basis points from 3.97% in the third quarter of 2010. Historically low interest rates combined with an ongoing higher level of non-accrual loans have pressured loan yields, and the low rates earned on excess liquidity also has had a detrimental effect on margins. For the first nine months of 2011, net interest income increased $3.1 million or 6% to $52.7 million from $49.6 million in the prior-year period. Net interest margin for the first nine months of 2011 increased two basis points to 3.95% from 3.93% a year ago, and ongoing pressure on net interest margin may continue depending on competitive loan pricing and balance sheet efficiency.

Non-performing loans (NPLs) totaled $27.9 million or 1.81% of total loans outstanding at September 30, 2011, up from $17.5 million or 1.14% of total period-end loans at June 30, 2011, and $12.5 million or 0.84% of period-end loans at September 30, 2010. The increase in non-accrual loans from the second quarter of 2011 primarily reflected the impact of a single commercial and industrial loan that transitioned to non-performing status after an extended period of time on the Company's watch list. The Company believes this credit is now moving toward an orderly liquidation. Non-performing assets (NPAs), which include NPLs, other real estate owned (OREO) and repossessed assets, increased to $36.1 million or 1.81% of total assets at September 30, 2011, compared with $24.7 million or 1.27% of total assets at June 30, 2011, and was up from $17.4 million or 0.93% of total assets at September 30, 2010. While NPLs and NPAs are well above the Company's historic range for these metrics, the credit watch list remains stable. Still, the Company's credit quality metrics have continued to trend significantly below those of $1-to-$2.5 billion publicly traded banks, which as of June 30, 2011 (third quarter peer data is not yet available), posted average NPLs and NPAs of 3.65% and 4.05%, respectively, according to a leading industry data service.

The Company currently sees no signs of strengthening in the credit cycle. The economic recovery continues to be uncertain and inconsistent, and the prolonged economic downturn experienced by many borrowers continues to create the further possibility of credit fatigue as traditionally solid and stable borrowers are affected increasingly by a weaker business environment. These conditions will likely have an ongoing impact on borrowers until the real estate market and overall business conditions improve. Additionally, should market conditions worsen and foreclosed assets increase significantly, the Company's flexibility to approach collateral sales in an orderly fashion to minimize losses may be reduced and management may be forced to liquidate problem loans more rapidly, thus increasing the loss on these assets.

Net charge-offs in the third quarter of 2011 totaled $2.6 million or 0.17% of average loans, up from $2.0 million or 0.13% of average loans in the second quarter of 2011 and $1.2 million or 0.08% of average loans in the year-earlier period. The majority of the third quarter 2011 charge-offs arose from the same commercial and industrial loan placed on non-accrual status. Net charge-offs for the first nine months of 2011 currently annualize to 0.39% of average loans compared with 0.23% of average loans in the prior-year period.

The Company's loan loss provision for the third quarter of 2011 was $4.1 million, which increased the Company's allowance for loan losses to 1.89% of total loans at September 30, 2011. The higher provision reflected both the increase in NPLs as well as the increase in net charge-offs for the third quarter. In the second quarter of 2011, the provision was $2.6 million and the allowance was 1.79% of total loans at June 30, 2011. In the third quarter of 2010, the provision was $2.7 million and the allowance was 1.64% at September 30, 2010. Since the Company is unable to determine how long business and economic conditions will continue to be depressed or when they will begin to improve meaningfully, S.Y. Bancorp intends to remain cautious in assessing the potential risk in its loan portfolio. Accordingly, the Company expects the allowance for loan losses to remain at a high level compared with historic amounts until there are clearer signs of a sustained economic recovery and, thus, a reduction in overall credit risk.

Non-interest income decreased $404,000 or 5% to $7.9 million in the third quarter of 2011 compared with $8.3 million in the same quarter last year. The decrease primarily reflected lower other non-interest income, which more than offset an increase in trust department income and bankcard transaction revenue for the third quarter. Non-interest income decreased $146,000 or 1% to $24.0 million in the first nine months of 2011 compared with $24.2 million in the prior-year period. The value of Company’s investment in a domestic private investment fund declined $601,000 in the third quarter of 2011 and $703,000 year-to-date.

Non-interest expense decreased $607,000 or 4% to $13.3 million in the third quarter of 2011 versus $13.9 million in the same period last year, largely due to the reversal of many performance-based bonus accruals as the Company has not achieved specified performance thresholds. Non-interest expense increased $806,000 or 2% to $42.9 million in the first nine months of 2011 compared with $42.0 million in the same period last year due to higher other non-interest expense earlier in 2011. The Company's third quarter efficiency ratio was 51.13% compared with 53.79% in the third quarter of 2010.

In August 2011, S.Y. Bancorp's Board of Directors declared its regular quarterly cash dividend of $0.18 per share. The latest dividend was distributed on October 3, 2011, to stockholders of record as of September 12, 2011.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.9 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. The Company's common shares trade on the NASDAQ Global Select Market under the symbol SYBT. The trust preferred securities of S.Y. Bancorp Capital Trust II also trade on the NASDAQ Global Select Market under the symbol SYBTP.

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.

The following table provides a reconciliation of total stockholders' equity in accordance with GAAP to tangible common equity in accordance with applicable regulatory requirements. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

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