This growth, bolstered by acontinuation of sound credit quality trends, helped offset the impact of fallinginterest rates on the Company's net interest margin as well as declining stockmarket values on its trust department income. A summary of results for the firstquarter follows: Quarter Ended March 31, 2009 2008ChangeNet income $4,737,000 $5,038,000 -6%Net income per share, diluted$0.35$0.37-5 Return on average equity13.15% 15.36%Return on average assets1.18 % 1.38 % Commenting on the Company's progress, David Heintzman, Chairman and ChiefExecutive Officer, said, "In the midst of an uncertain economy, unprecedentedturmoil within the banking industry and ongoing pressures on businesses of allkinds, we are proud to announce that our company's earnings per share remainedat a strong level in the first quarter of 2009, down slightly from theyear-earlier quarter. This accomplishment, which sets us apart from many banksthat now report significant credit quality problems, declining income andreduced cash dividends, reflects the success of our conservative approach toexpanding our market reach, our commercial-lending focus, our cautious creditphilosophy, and our careful control of expenses. The Company's first quarterperformance also reflected ongoing stability in our home market of Louisville,as well as the contribution from expansion to Indianapolis and Cincinnati. Eventhough our newer locations in both of these additional markets continue to rampup to profitability and, thus, still cause some drag on earnings, Indianapolisand Cincinnati accounted for approximately 40% of total loan growth over thepast year." S.Y.

Bancorp's total assets increased 7% over the past year to $1.631 billion atMarch 31, 2009, from $1.517 billion at March 31, 2008, and were up slightly from$1.629 billion at year-end 2008. The year-over-year change in total assets wasdriven by strong growth in the Company's loan portfolio, which rose 7% to $1.376billion at March 31, 2009, from $1.290 billion at March 31, 2008, and $1.350billion at December 31, 2008. Deposits increased 12% to $1.286 billion at March31, 2009, compared with $1.148 billion a year ago and $1.271 billion at December31, 2008. Stockholders' equity increased 12% to $146.9 million at March 31,2009, from $131.5 million in the year-earlier period and $144.5 million atDecember 31, 2008.

As previously announced, the Company declined to participate in federal TARPfunding because its capital levels were and remain significantly ahead of whatis required to be considered "well-capitalized" under regulatory standards - thehighest capital rating a financial institution can earn. Reflecting bothhistorical capital strength as well as a successful offering of trust preferredsecurities in December 2008, the Company's Tier 1 leverage ratio, Tier 1risk-based capital ratio and total risk-based capital ratio at March 31, 2009,were 10.75%, 12.07% and 13.89%, respectively, all exceeding the requiredminimums of 5%, 6% and 10%, respectively, to be deemed a well-capitalizedinstitution. Tangible common equity at March 31, 2009, stood at 8.92% of totalassets, up from 8.80% at December 31, 2008, and 8.61% at March 31, 2008. Concluding, Heintzman said, "Although we are pleased with our progress in thefirst quarter, demonstrating the fundamental strength and diversity of ourbusiness and markets as well as the soundness of our growth strategies, we knowthe balance of 2009 remains challenging and uncertain. Because of ourconservative credit culture, as underscored by our low levels of non-performingloans and charge-offs, we have avoided many of the problems that have affectedother banks during this economic downturn, and even though we confront toughconditions in our home market, it has remained resilient. However, as therecession goes on, if real estate values fail to stabilize and the stock marketremains at depressed levels, the personal wealth of many of our borrowers andguarantors, which traditionally has represented an additional source of securityfor many loans, may continue to erode.