Exhibit 99.1

S.Y. Bancorp Reports Record Earnings for 2011 as Fourth Quarter Net Income Increases 5% to $6.3 Million or $0.46 Per Diluted Share

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 25, 2012--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 higher earnings for the fourth quarter of 2011 and record net income for the year. The following is a summary of the Company's reported results:

The Company's results for the fourth quarter reflected a continued increase in net interest income as a result of growth of the loan portfolio and other interest-earning assets. Fourth quarter earnings also benefited from approximately $700,000 of tax adjustments associated with the Company's tax-advantaged investments, which resulted in a lower tax provision for the quarter. Additionally, during the fourth quarter the Company recorded write-downs on other real estate owned (OREO) intended to position the Company to move those properties more quickly from the balance sheet; the after-tax effect of the write-downs, along with increased charitable contributions in the quarter, totaled approximately $550,000.

Commenting on the results, David Heintzman, Chairman and Chief Executive Officer, said, "Our company is pleased to announce solid fourth quarter results, with higher comparative earnings and a continued strong performance in terms of returns on assets and equity. Despite the challenges and uncertainties that have characterized our economy for several years, we reported continued growth in total assets, loans and deposits, reflecting a successful strategy to capitalize on our strong community bank presence in Louisville together with an expanding presence in Indianapolis and Cincinnati. With this continued growth, our company marked a milestone at the end of the fourth quarter, surpassing $2 billion in total assets. Our investment management and trust department, a distinctive and valuable feature of the Company with $1.7 billion assets under management at year's end, also contributed to our fourth quarter results. Together, these factors enabled S.Y. Bancorp to finish 2011 in a positive fashion, resulting in total earnings for the year of a record $1.71 per diluted share and providing a strong foundation for the year ahead.

"We also were pleased that our credit quality metrics did not deteriorate during the fourth quarter," Heintzman continued. "If these conditions can be sustained, it could signal a stabilization of our credit quality, but that may not necessarily correlate with a meaningful economic recovery. As a result, we continue to maintain a cautious stance toward risk in our portfolio and anticipate ongoing higher levels of allowance and provision for bad debts."

Heintzman also noted that the Bank launched an equipment leasing operation in December. This venture is not expected to contribute directly to the Company's results until 2013, but it will provide an additional service for corporate customers and should aid business development efforts by creating more opportunities to approach commercial and industrial companies.

Concluding, Heintzman said, "We are pleased with the Company's results for 2011, which demonstrated the continued success of our customer-focused approach to our markets and the strategies we have employed to enhance the performance of our business model and lay the groundwork for future growth. We have seen some signs of an improving economy, especially in Louisville, our primary market, and our confidence in a recovery is growing. However, we recognize that any economic recovery remains uncertain and fragile, so we intend to continue our conservative posture with respect to potential risk in our portfolio and our efforts to maintain strong credit quality. Our company is well positioned – with attractive geographic diversification and a strong line-up of banking and trust services – to extend its record over the long term as one of the top-performing community banks in the country. Moreover, considering our company's strong capital base, S.Y. Bancorp remains attractively positioned to take advantage of acquisitions in an evolving banking environment, if and when prudent opportunities arise."

S.Y. Bancorp's total assets increased $150.2 million or 8% during 2011, reaching $2.053 billion at December 31, 2011, compared with $1.903 billion at December 31, 2010. The Company's loan portfolio increased $36.4 million or 2% to $1.545 billion at December 31, 2011, compared with $1.508 billion at December 31, 2010. Total deposits increased $124.3 million or 8% to $1.618 billion at December 31, 2011, from $1.493 billion a year ago.

The Company's capital levels continued to strengthen during the fourth quarter of 2011 and for the year, remaining well above those required to be considered "well-capitalized" under regulatory standards – the highest capital rating for financial institutions. The Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and Total risk-based capital ratio at December 31, 2011, were 10.53%, 12.77% and 14.63%, respectively, all exceeding 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 9.11% as of December 31, 2011, versus 9.20% at September 30, 2011, and 8.89% at December 31, 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 $692,000 or 4% in the fourth quarter of 2011 to $18.0 million from $17.3 million in the year-earlier period. This increase reflected primarily the continued growth of interest-earning assets. In the fourth quarter of 2011, net interest margin was 3.91%, down slightly from 3.93% in the third quarter of 2011, and eight basis points below 3.99% in the fourth quarter of 2010. These declines reflected the ongoing impact of a low interest rate environment, a competitive loan market, and the Company's excess liquidity, all of which are likely to continue in the foreseeable future. For the year ended December 31, 2011, net interest income increased $3.9 million or 6% to $70.7 million from $66.9 million in the prior-year period. Net interest margin for the year ended December 31, 2011, remained unchanged at 3.99% compared with 2010.

All references above to net interest margin consistently apply a revised methodology for calculating net interest margin and net interest spread, implemented in the fourth quarter of 2011, to exclude participation loans sold from the calculations. Such loans remain on the Bank's balance sheet as required by generally accepted accounting principles because the Bank retains some form of effective control; however, the Bank receives no interest income on the sold portion of these loans. Under its revised methodology, these participation loans sold are excluded in the calculation of margins, which, in the Company's view, provides a more accurate determination of the performance of its loan portfolio. A comparison of margins for 2010 and 2011 under both the previous and revised methodologies appears later in this press release.

Non-performing loans (NPLs) totaled $23.3 million or 1.51% of total loans outstanding at December 31, 2011, down from $27.9 million or 1.81% of total period-end loans at September 30, 2011, but up from $19.3 million or 1.28% of period-end loans at December 31, 2010. Non-performing assets (NPAs), which include NPLs, OREO and repossessed assets, also declined to $31.1 million or 1.51% of total assets at December 31, 2011, from $36.1 million or 1.81% of total assets at September 30, 2011, but NPAs were up from $24.8 million or 1.30% of total assets at December 31, 2010. While NPLs and NPAs are well above the Company's historic range for these metrics, they have continued to trend significantly better than those of $1-to-$2.5 billion publicly traded banks, which as of September 30, 2011, (fourth quarter peer data is not yet available) posted average NPLs and NPAs of 3.71% and 4.16%, respectively, according to a leading source for industry data.

The prolonged economic downturn continues to create credit fatigue among traditionally solid and stable borrowers who have been affected by the weak business environment. The risk of credit fatigue will continue until the real estate market and overall business conditions improve in a sustained manner. Additionally, should market conditions not improve and foreclosed assets increase significantly, the Company's flexibility to minimize losses by approaching collateral sales in an orderly fashion may be reduced and management may be forced to liquidate problem assets more rapidly, thus increasing the potential for loss on these assets. In fact, during the fourth quarter the Company moved to write-down certain OREO to obtain a more timely resolution of these properties.

Net charge-offs in the fourth quarter of 2011 totaled $2.4 million or 0.16% of average loans, down from $2.6 million or 0.17% of average loans in the third quarter of 2011 and $2.6 million or 0.17% of average loans in the year-earlier period. Net charge-offs for the year ended December 31, 2011, were 0.55% of average loans versus 0.40% of average loans in the prior-year period.

The Company's loan loss provision for the fourth quarter of 2011 was $3.1 million, bringing the Company's allowance for loan losses to 1.93% of total loans as of December 31, 2011. This compared with $4.1 million and 1.89%, respectively, for the third quarter of 2011 and $3.7 million and 1.69%, respectively, for the fourth quarter of 2010. Credit metrics remained stable in the fourth quarter of 2011, neither deteriorating nor demonstrating clear signs of improvement. Since the Company remains uncertain as to when business and economic conditions will show meaningful and sustained gains, 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 continued economic recovery and, thus, a more reliable indication of reduced overall credit risk.

Non-interest income declined $349,000 or 4% to $9.2 million in the fourth quarter of 2011 compared with $9.6 million in the same quarter last year. The decrease primarily reflected higher core revenues from investment management and trust services that were more than offset by one-time estate and retirement plan-related fees realized in the fourth quarter of 2010 that did not recur in 2011. Non-interest income declined $495,000 or 1% to $33.2 million for the year ended December 31, 2011, from $33.7 million in the prior-year period due primarily to a decline in the value of the Company's investment in a domestic private investment.

Non-interest expense increased $1.6 million or 11% to $16.7 million in the fourth quarter of 2011 from $15.1 million in the same period last year. This increase was due largely to write-downs on OREO properties along with higher state bank taxes. The Company also increased its philanthropic contributions in 2011. These increases were partially offset by reduced salaries and benefits, reflecting adjustments to year-to-date performance-based incentive accruals, and lower FDIC insurance expense. Non-interest expense increased $2.5 million or 4% to $59.6 million in the year ended December 31, 2011, from $57.1 million in the same period last year, reflecting largely the same factors that influenced the fourth quarter of 2011. The Company's fourth quarter efficiency ratio was 60.57% compared with 55.25% in the fourth quarter of 2010; for the year, the efficiency ratio was 56.47% versus 56.01% for 2010.

In the fourth quarter of 2011, the Company's income tax expense declined $997,000 or 48% to $1,076,000 from $2,073,000 in the year-earlier quarter, partly because of lower pre-tax income for the period and increased proportion of tax-exempt interest to pre-tax income. The reduced level of income tax expense primarily reflected an adjustment of approximately $700,000 to the Company's deferred tax assets that relates to tax-advantaged investments that the Company has made in its primary market area over the years. The lower income tax expense also reflected adjustments to update the Company's reserve for uncertain tax positions, which was reduced when the statute of limitations expired with the relevant taxing authorities. For the year, income tax expense declined $874,000 or 10% to $8,191,000 from $9,065,000 in 2010, reflecting the aforementioned adjustments.

In November 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 January 3, 2012, to stockholders of record as of December 12, 2011.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $2.1 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.

In the fourth quarter of 2011, the Company revised its methodology for calculating net interest margin and net interest spread, which excludes participation loans sold from the calculations. The following table provides a comparison of margins for 2010 and 2011 under both the previous and revised methodologies.

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