Exhibit 99.1

S.Y. Bancorp Second Quarter 2011 Earnings Increase 8% to $0.43 per Diluted Share Versus $0.40 for the Year-Earlier Quarter

LOUISVILLE, Ky.--(BUSINESS WIRE)--July 20, 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 higher earnings for the second quarter and first half of 2011. Reflecting ongoing strong results from its banking operations, as well as solid revenue diversification contributed by its investment management and trust department, net income per diluted share for the second quarter rose 8% compared with the prior-year period. The following is a summary of the Company's reported results:

Commenting on the announcement, David Heintzman, Chairman and Chief Executive Officer, said, "We are pleased to report that our banking platforms in Louisville, Indianapolis and Cincinnati continued to deliver a solid performance in the second quarter of 2011. These attractive markets continued to translate into steady loan portfolio growth, which coupled with a strong, stable margin, again produced higher net interest income for the quarter. Also, our expanding investment management and trust department activities complement these banking operations – significantly in our home market and increasingly in our newer markets – creating additional opportunities to further diversify our revenues. With these sound business fundamentals, we have built a solid track record for S.Y. Bancorp. Reflected by our consistent earnings growth, high returns on equity and assets, and periodic dividend increases, we have established the Company as one of the top-performing community banks in the country."

Regarding the Bank's investment management and trust department, Heintzman noted that it continues to grow, with revenue up 13% for the second quarter versus the year-earlier quarter and accounting for 45% of the Company's total non-interest income. Boosted by investment management and trust services income, the Company's total non-interest income stands at almost one-third of its total revenue. Heintzman added, "This department continues to be a great differentiator from virtually all other community banks. By offering these services in our community banking model, we truly can offer customers services for all of life's stages. As we often say, we have the sophistication of financial products of large regional banks, but delivered inside a community bank."

Concluding, Heintzman said, "While we are pleased with the Company's ongoing success and progress, we recognize the environment in which we operate remains uncertain and fragile. As we have indicated before, the prolonged duration of this economic downturn continues to take a toll on borrowers, even some who so far have weathered this storm. Thus, we continue to anticipate increased credit risk in this climate, until such time that we experience a sustained and meaningful upturn in the real estate market and employment levels. Against this backdrop, we remain confident in our long-term growth strategies, the conservative credit culture that has enabled us to sidestep some of the problems experienced by many other banks, and in our employees, who constantly strive to redefine excellence in banking for our customers."

S.Y. Bancorp's total assets increased $83.9 million or 5% to $1.943 billion at June 30, 2011, from $1.859 billion at June 30, 2010. The Company's loan portfolio increased $61.6 million or 4% to $1.539 billion at June 30, 2011, compared with $1.477 billion at June 30, 2010. Likewise, total deposits increased $58.5 million or 4% to $1.532 billion at June 30, 2011, from $1.474 billion a year ago.

In the second 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 June 30, 2011, were 10.55%, 12.26% and 14.12%, 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 9.17% as of June 30, 2011, up from 9.00% at March 31, 2011, and 8.68% at June 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 $1.1 million or 6% in the second quarter of 2011 to $17.6 million from $16.5 million in the year-earlier period. This change reflected primarily an increase in net-interest-earning assets in the context of a stable net interest margin. In the second quarter of 2011, net interest margin was 3.98%, down two basis points from 4.00% in the first quarter of 2011, yet up one basis point from 3.97% in the second quarter of 2010. For the first half of 2011, net interest income increased $2.6 million or 8% to $34.9 million from $32.3 million in the prior-year period. Net interest margin for the first half of 2011 increased eight basis points to 3.99% from 3.91% a year ago.

Non-performing loans (NPLs) totaled $17.5 million or 1.14% of total loans outstanding at June 30, 2011, up from $15.1 million or 0.99% of total period-end loans at March 31, 2011, and $13.8 million or 0.93% of period-end loans at June 30, 2010. The increase in non-accrual loans from the first quarter of 2011 arose from several unrelated borrowers; these loans are considered well secured, do not individually exceed approximately $2 million, and do not pose significant potential losses for the Company, in management's opinion. Non-performing assets (NPAs), which include NPLs, OREO and repossessed assets, increased slightly to $24.7 million or 1.27% of total assets at June 30, 2011, compared with $24.2 million or 1.26% of total assets at March 31, 2011, and was up from $15.8 million or 0.85% of total assets at June 30, 2010. At current levels, NPLs and NPAs are at the high end of the Company's historic range for these metrics. While second quarter 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 publicly traded banks, which as of March 31, 2011, posted average NPLs and NPAs of 5.39% and 4.28%, respectively, according to a leading industry data service.

The strengthening of the economy continues to be inconsistent, and the prolonged economic downturn experienced by many borrowers continues to affect credit quality. These conditions will likely have an ongoing effect 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 second quarter of 2011 totaled $2.0 million or 0.13% of average loans, up from $1.4 million or 0.09% of average loans in the first quarter of 2011 and $1.3 million or 0.09% of average loans in the year-earlier period. Net charge-offs for the first six months of 2011 currently annualize to 0.44% of average loans compared with 0.30% of average loans in the prior-year period. Although net charge-offs were up slightly in the second quarter of 2011 compared with the first quarter, they remain in-line with the overall levels experienced in 2010 and continue to compare favorably with the Company's peers.

The Company's loan loss provision for the second quarter of 2011 was $2.6 million, which, taking into account net charge-offs for the quarter, increased the Company's allowance for loan losses to 1.79% of total loans at June 30, 2011. In the first quarter of 2011, the provision was $2.8 million and the allowance was 1.78% of total loans at March 31, 2011. In the second quarter of 2010, the provision was $2.4 million and the allowance was 1.55% at June 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 in its historically conservative stance toward credit quality, with a cautious assessment of 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 increased $229,000 or 3% to $8.2 million in the second quarter of 2011 compared with $7.9 million in the same quarter last year. The increase primarily reflected 13% higher investment management and trust services income versus the year-earlier quarter, which was partially offset by lower amounts of service charge income and other non-interest income. Non-interest income increased $258,000 or 2% to $16.2 million in the first half of 2011 compared with $15.9 million in the prior-year period, again primarily reflecting a higher level of investment management and trust services income, as well as higher bankcard transaction revenue, that was partially offset by lower other non-interest income.

Non-interest expense increased $344,000 or 2% to $14.7 million in the second quarter of 2011 versus $14.4 million in the same period last year, largely reflecting normal annual salary increases that were partially offset by lower FDIC insurance associated with a change in the assessment base. Non-interest expense increased $1.4 million or 5% to $29.6 million in the first half of 2011 compared with $28.1 million in the same period last year, reflecting the same trends seen in the second quarter, but also the additional impact of an increase in other non-interest expense. The Company's second quarter efficiency ratio was 56.29% compared with 58.00% in the second quarter of 2010.

In May 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 July 1, 2011, to stockholders of record as of June 13, 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