Exhibit 99.1

S.Y. Bancorp Announces Fourth Quarter 2010 Earnings Per Diluted Share of $0.44 versus $0.21 in the Year-Earlier Quarter

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 25, 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 significantly improved financial results for the fourth quarter and year ended December 31, 2010. The following is a summary of the Company's reported results:

S.Y. Bancorp's higher earnings for the fourth quarter of 2010 compared with the prior-year period reflected strong results from the Company's core banking services as well as solid growth in other revenue sources. Consistent loan growth over the past year, along with a comparable quarterly improvement in the Company's net interest margin, provided a significant increase in net interest income for the fourth quarter of 2010. This increase, combined with higher non-interest income – led by ongoing growth in investment management and trust income – resulted in a 17% increase in total revenue for the fourth quarter compared with the year-earlier period. The Company's results for the fourth quarter and year ended December 31, 2010, also reflected lower loan loss provisions compared with prior-year periods primarily due to a $4.1 million loan loss provision in the fourth quarter of 2009 related to a fraudulent loan.

Commenting on the reported results, David Heintzman, Chairman and Chief Executive Officer, said, "S.Y. Bancorp posted another solid quarterly performance to close 2010, highlighted by growth in revenue and earnings, along with improved returns on average equity and assets. Equally telling of the Company's accomplishments in 2010, our earnings for the year matched the previous record amount of $1.67 per diluted share, posted for 2007 prior to the onset of the recession. As banks continue to struggle with serious asset quality issues, loan growth and capital adequacy, we are indeed pleased with our results for 2010 and the Company's resiliency in light of continued economic difficulty and its impact on our customers."

Continuing, Heintzman said, "We credit our success in 2010 to a broad-based strategy that capitalizes on our strong community bank presence in Louisville, coupled with our growing presence in Indianapolis and Cincinnati. This customer-focused approach to banking enabled us to increase our loan portfolio by $73 million in 2010 and provide core funding to support that growth in the form of $75 million in new deposits. Our newer markets in Indianapolis and Cincinnati continued to factor importantly in this growth.

"Additionally, the diversification of our revenue sources also has contributed greatly to our performance," Heintzman added. "While our brokerage and mortgage operations have continued to rebound from the effects of the recession, our investment management and trust department demonstrated significant growth during 2010, adding new fee income from both an expanding client base and a rebounding stock market. Total assets under management by our investment management and trust department now stand at nearly $1.7 billion."

Concluding, Heintzman said, "Although we are pleased with the Company's results for 2010, which mark significant progress in many important areas, we know the economic recovery remains uneven and uncertain, which will exert continued pressure on asset quality. Several things must improve to remedy this, including the job market and real estate values, so we believe we have by no means completed this economic cycle. Still, we remain confident in our strategies, our market positioning for consistent growth over the long term, the resiliency of our markets, and our ability to take advantage of market expansion opportunities in the ever-changing banking landscape. We also believe our culture, which provides an unmatched level of customer service together with a broad and responsive array of financial services and products, continues to distinguish the Company as a top performer among community banks across the country."

S.Y. Bancorp's total assets increased $111 million during 2010 to $1.903 billion from $1.791 billion at December 31, 2009. The Company's loan portfolio increased $73 million during the year to $1.508 billion at December 31, 2010, compared with $1.435 billion at December 31, 2009. Likewise, total deposits increased $75 million to $1.493 billion at December 31, 2010, from $1.418 billion a year ago.

In the fourth quarter of 2010, capital levels continued to strengthen and remained well in excess of that 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 December 31, 2010, were 10.31%, 12.06% and 13.93%, 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 (see reconciliation of GAAP/non-GAAP measures later in this release) was 8.89% as of December 31, 2010, up from 8.88% at September 30, 2010, and 8.54% at December 31, 2009.

Net interest income – the Company's largest source of revenue – increased $1,791,000 in the fourth quarter of 2010 to $17,324,000 from $15,533,000 in the year-earlier period. This increase primarily reflected continued growth in net interest-earning assets combined with a higher quarter-over-quarter net interest margin. In the fourth quarter of 2010, net interest margin was 3.92%, down five basis points from 3.97% in the third quarter of 2010, but up 20 basis points versus 3.72% in the fourth quarter of 2009. For the year ended December 31, 2010, net interest income increased $8,204,000 to $66,879,000 compared with $58,675,000 in the previous year. Net interest margin for the year ended December 31, 2010, rose 25 basis points to 3.93% from 3.68% for 2009.

Non-performing loans (NPLs) totaled $19,314,000 or 1.28% of total loans outstanding at December 31, 2010, up from $12,495,000 or 0.84% of total period-end loans at September 30, 2010, and $12,101,000 or 0.84% of period-end loans at December 31, 2009. The increase from the third quarter of 2010 reflected the reclassification of several unrelated loans to non-performing status due to the ongoing economic stress on borrowers witnessed from 2008 through 2010. Non-performing assets (NPAs), which include NPLs, other real estate owned and repossessed assets, rose to $24,759,000 or 1.30% of total assets at December 31, 2010, primarily because of the increase in NPLs. NPAs totaled $17,438,000 or 0.93% of total assets at September 30, 2010, and $13,717,000 or 0.77% of total assets at December 31, 2009. At current levels, NPLs and NPAs remain above the Company's historic range for these metrics over the past five years. Still, while year-end peer data is not yet available, the Company's credit quality metrics have continued to trend significantly below those of $1-to-$2.5 billion publically traded banks, which as of September 30, 2010, posted average NPLs and NPAs of 4.75% and 4.19%, respectively, according to a leading industry data service.

Even as the economy begins to show some signs of general improvement, these emerging indications are not even or broad-based, and the extended duration of the economic downturn continues to weaken many borrowers. These conditions will likely have an ongoing effect on certain borrowers until the real estate market and overall business conditions improve. Moreover, 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 fourth quarter of 2010 totaled $2,586,000 or 0.17% of average loans versus $1,195,000 or 0.08% of average loans in the third quarter of 2010, with the increase primarily reflecting partial charge-offs taken on NPLs in the fourth quarter. In the year-earlier quarter, net charge-offs totaled $5,314,000 or 0.37% of average loans, $4,125,000 or 0.29% of which related to the aforementioned fraudulent loan. Net charge-offs for the year ended December 31, 2010, were 0.40% of average loans compared with 0.59% for the year ended December 31, 2009.

The Company's loan loss provision for the fourth quarter of 2010 was $3,695,000 compared with $2,695,000 in the third quarter of 2010 and $5,475,000 in the year-earlier period, with the fourth quarter 2009 amount including a provision for the fraudulent loan. 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, S.Y. Bancorp intends to continue with its historically conservative stance toward credit quality, remaining cautious in assessing the potential risk in the loan portfolio. The Company's allowance for loan losses was 1.69% of total loans at December 31, 2010, compared with 1.64% of total loans at September 30, 2010, and up from 1.39% at December 31, 2009.

Non-interest income increased $2,184,000 to $9,578,000 in the fourth quarter of 2010 compared with $7,394,000 in the same quarter last year. This increase primarily reflected a $745,000 increase in investment management and trust income – the Company's largest component of non-interest income. This increase also reflected increased gains on sales of mortgage loans in 2010, along with higher brokerage fees and commissions, bankcard transaction revenue, and other non-interest income. Non-interest income for the year ended December 31, 2010, increased $3,703,000 to $33,739,000 from $30,036,000 in the prior year, reflecting an increase of $2,080,000 in investment management and trust income along with higher bankcard transaction revenue and brokerage fees and commissions.

Non-interest expense increased $1,531,000 to $15,083,000 in the fourth quarter of 2010 versus $13,552,000 in the same period last year. The increase primarily reflected higher salaries and employee benefits expense due to increased staffing levels, mainly related to the Company's expansion in Cincinnati last year, profit-related bonus accruals, and higher health insurance costs. Non-interest expense increased $4,436,000 to $57,131,000 in the year ended December 31, 2010, from $52,695,000 in the year-earlier period primarily due to similar factors in addition to increased net occupancy expense and higher data processing costs, which together were partially offset by lower FDIC insurance due to the impact of a $786,000 special assessment in 2009 that did not recur in 2010. The Company's fourth quarter efficiency ratio was 55.25% compared with 58.44% in the fourth quarter of 2009; for the year, the efficiency ratio was 56.01% versus 58.70% for 2009. As management continues to maximize revenue and control expenses, the Company's efficiency ratio remains significantly ahead of the peer average – a testament to this successful effort.

In November 2010, S.Y. Bancorp's Board of Directors increased the quarterly cash dividend 6% to $0.18 per share. The latest dividend was distributed on January 3, 2011, to stockholders of record as of December 13, 2010.

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 to tangible common equity in accordance with applicable regulatory requirements and GAAP. 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
Executive Vice President, Treasurer and Chief Financial Officer
502-625-9176