Diluted Earnings Per Share Increase to $0.45 for the Quarter
LOUISVILLE, Ky. -- (Business Wire)
Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards
Bank & Trust Company, with offices in the Louisville, Indianapolis and
Cincinnati metropolitan markets, today reported results for the second
quarter ended June 30, 2016, with net income increasing 12% to $10.1
million or $0.45 per diluted share from $9.0 million or $0.40 per
diluted share for the second quarter of 2015. Net income for the six
months ended June 30, 2016, increased 9% to $19.9 million or $0.88 per
diluted share from $18.3 million or $0.82 per diluted share. Please note
that all per share information in this release has been adjusted for the
three-for-two stock split that was distributed in May 2016.
The Company's performance for the second quarter of 2016 reflected
several positive factors, including:
-
Strong organic net loan growth, accelerating further from the first
quarter pace and building on the momentum seen over the past several
years;
-
Continued high credit quality;
-
The advantage of diverse sources of fee income, which continued to
contribute to revenue growth; and
-
Solid returns on average assets and equity of 1.42% and 13.53%,
respectively.
"We are pleased to report another strong performance by the Company in
the second quarter, highlighted by an increase of 12% in diluted
earnings per share compared with the year-earlier quarter," said David
P. Heintzman, Chairman and Chief Executive Officer. "These results,
driven by exceptional loan production and net loan growth, combined with
higher revenue from our fee-based businesses, particularly investment
management and trust services and mortgage banking, continue to set
Stock Yards Bank & Trust apart as a high-performing community bank –
both in our markets and from a national standpoint.
"Earlier this year, we reported the best-ever quarter in the Bank's
history in terms of loan growth and, now, with continued acceleration in
our loan production and record second quarter net loan growth, we are
pleased to have produced strong back-to-back quarters to power an
outstanding first half of 2016," Heintzman continued. "With a 7%
increase in our portfolio through the first six months of the year, and
a positive outlook for our loan pipeline heading into the third quarter,
we believe the Company is well positioned to extend its track record for
predictable, reliable earnings growth for 2016." Heintzman noted that
each of the Company's three markets are participating in loan growth
trends this year, led by Stock Yards Bank's home market of Louisville.
Additionally, in expanding its portfolio, the Company has continued to
focus on its core lines of business – commercial and industrial along
with owner-occupied real estate – and has avoided concentration in the
investment commercial real estate sector.
Heintzman pointed out that, following a rebound in asset quality after
the 2008 financial crisis, all key credit metrics have remained at
historically strong levels. While the Company continues to provide
prudently for possible credit losses, it currently sees no significant
indications of stress in credit quality.
According to Heintzman, the Company's fee-based income businesses
continued to make a significant contribution to the Company's results
for the second quarter. For the quarter, fee-based income represented
31% of total revenue, up from 30% in the first quarter of 2016. This
proportion remains well ahead of peers, but is down slightly from the
year-earlier quarter due to a 10% increase in net interest income driven
by outstanding loan growth. The Company's investment management and
trust department, with total assets under management reaching $2.3
billion, remained at the forefront in terms of fee-income production,
providing almost half of the Company's fee-based income in the second
quarter of 2016. Mortgage banking revenue also increased in the second
quarter, both sequentially and on a year-over-year basis, as pricing has
improved on loans sold into the secondary market.
In conclusion, Heintzman said, "At this midyear point, we are pleased
with the direction of our business, the positive economic conditions we
see across our markets, the inherent strength of our operations, and the
ongoing value that our customer-focused service brings to our business
model. These factors are all evident in the Company's first-half
performance. As we look ahead to the second half of 2016, we are
encouraged by the strength of our lending pipeline going into the third
quarter, as well as the diverse strength of our fee-income revenue;
together they provide a positive outlook for our second-half
performance. As always, we continue to pursue opportunities to further
enhance total return to stockholders and build on our reputation as one
of the top-performing community banks in the country."
Total assets increased $427 million or 17% at June 30, 2016, to $2.91
billion from $2.48 billion at June 30, 2015. Driving this increase was
continued growth in the Company's loan portfolio, which rose $276
million or 15% to $2.18 billion at June 30, 2016, from $1.90 billion at
June 30, 2015. On the funding side, total deposits likewise increased
$278 million or 13% to $2.35 billion at June 30, 2016, from $2.07
billion at June 30, 2015. On a linked-quarter basis, total deposits
declined slightly due to a seasonal drawdown in public funds. Core
deposits, as defined by the Company's primary regulator, held steady at
98.5% of total deposits as of June 30, 2016.
The Company continued to sustain strong capital levels in the second
quarter of 2016, remaining "well capitalized" – the highest capital
rating for financial institutions. Capital ratios, however, have
declined slightly over the past year as asset growth has outpaced the
capital contribution from net income. Stock Yards Bancorp's tangible
common equity ratio as of June 30, 2016, was 10.42% (tangible common
equity is a non-GAAP financial measure; see reconciliation of total
stockholders' equity to tangible common equity and total assets to
tangible assets later in this release). While some may consider the
Company's capital level excessive, management believes it is in an
enviable position being able to maintain high levels of capital for
strength and stability while, at the same time, producing strong returns
on stockholders' equity.
Stock Yards Bancorp has continued to pursue capital strategies to
enhance stockholder value. In May 2016, the Company's Board of Directors
declared a three-for-two split of the Company's common stock, effected
in the form of a 50% stock dividend. Because of the Company's
consistently sound capital position, continued strong performance, as
well as the Board's ongoing confidence in future earnings growth, the
Board also raised the Company's split-adjusted quarterly dividend rate
8% to $0.18 per common share on the next regular cash dividend, which
was distributed to stockholders of record on July 1, 2016. This marked
the seventh increase in the dividend over the past five years, for a
cumulative increase of approximately 50% since 2011. The Company has
maintained its financial flexibility to pursue strategic expansion and
acquisition opportunities that may arise, and management and the
Company's Board continue to consider alternatives to deploy capital in
methods that will drive higher long-term stockholder value.
Net interest income – the Company's largest source of revenue –
increased $2.1 million or 10% to $24.0 million in the second quarter of
2016 from $21.8 million in the prior-year quarter. The increase
reflected the impact of ongoing growth in the loan portfolio, coupled
with continued restraint on interest costs. Net interest income
increased $4.0 million or 9% to $47.4 million in the first half of 2016
from $43.4 million in the prior-year period.
As anticipated, net interest margin (on a fully tax-equivalent basis)
remained under pressure in the second quarter of 2016, reflecting
primarily the impact of heightened competition on lending rates. In the
second quarter of 2016, net interest margin was 3.59% versus 3.56% in
the first quarter of 2016 and 3.75% in the second quarter of 2015. The
Company's normalized or core net interest margin (core net interest
margin is a non-GAAP financial measure, see reconciliation of net
interest margin to core interest margin later in this release) was 3.60%
for the second quarter of 2016, down four basis points from the first
quarter of 2016 and down nine basis points from the second quarter of
2015. The decrease in core net interest margin in the second quarter of
2016 versus the linked first quarter was due primarily to decreasing
rates earned on loans.
Management anticipates that margin pressure will continue due to
competition and the low-rate environment. Further, since approximately
64% of the Company's loan portfolio is priced at fixed rates and 13% is
priced at variable rates with floors of 4%, rate increases will not
fully benefit the Company until new fixed-rate loans originate at higher
rates and the prime rate, currently at 3.5%, rises to exceed the 4%
floors associated with variable rate loans.
Non-performing loans (NPLs) totaled $6.4 million or 0.29% of total loans
outstanding at June 30, 2016, down from $8.9 million or 0.43% of total
loans outstanding at March 31, 2016, and $9.9 million or 0.52% of total
loans outstanding at June 30, 2015. Similarly, non-performing assets,
which include NPLs along with other real estate owned (OREO) and
repossessed assets, were $11.5 million or 0.40% of total assets at June
30, 2016, versus $14.0 million or 0.49% of total assets at March 31,
2016, and $14.1 million or 0.57% of total assets at June 30, 2015. These
positive trends, ongoing for more than three years, have enabled the
Company to reach asset quality levels that have not been experienced
consistently since periods prior to the 2008 financial crisis. Net
charge-offs in the second quarter of 2016 totaled $60 thousand versus
$490 thousand in the first quarter of 2016 and $1.6 million in the
second quarter of 2015.
During the second quarter of 2016, the Company recorded a loan loss
provision of $750 thousand, compared with $500 thousand in the first
quarter of 2016 and no loan loss provision in the second quarter of
2015. The Company's allowance for loan losses was 1.06% of total loans
as of June 30, 2016, versus 1.07% as of March 31, 2016, and 1.23% at
June 30, 2015.
Total non-interest income in the second quarter of 2016 increased $559
thousand or 5% to $10.8 million from $10.2 million in the prior-year
quarter. This increase reflected, among other things, growth in bankcard
transaction revenue, increased revenue from investment management and
trust services, and higher mortgage banking revenue. Total non-interest
income for the six months ended June 30, 2016, increased $968 thousand
or 5% to $20.9 million from $19.9 million in the prior-year period,
reflecting trends similar to those of the second quarter.
Total non-interest expense for the second quarter of 2016 increased $1.3
million or 7% to $20.2 million from $18.9 million in the prior-year
quarter. The increase reflected in part the amortization of investments
in tax-credit partnerships, which was more than offset by related tax
credits that reduced the Company's effective tax rate for the second
quarter of 2016. In addition, salaries and employee benefits increased
due to higher salaries and wages, reflecting normal salary increases,
the addition of personnel associated with further market expansion, and
increased incentive compensation related to accelerating loan and
earnings growth. These increases were partially offset by lower health
insurance costs. Due to a recovery of previously written-off OREO during
the second quarter, recorded as a credit to other non-interest expense,
versus OREO expense in the prior-year quarter, other non-interest
expense declined compared with that in the year-earlier quarter. For the
six months ended June 30, 2016, total non-interest expense increased to
$3.1 million or 8% to $39.7 million from $36.6 million in the prior-year
period, largely reflecting the same trends noted for the quarter.
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $2.9 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 following table provides a reconciliation of total stockholders'
equity, in accordance with US GAAP, to tangible common equity, which is
a non-GAAP financial measure. 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.
|
Tangible Common Equity Ratio (Dollars in thousands) |
|
|
| |
|
| |
|
|
| June 30, 2016 | | | March 31, 2016 | | | June 30, 2015 |
Total stockholders' equity (a)
| | |
$
|
305,051
| | | |
$
|
296,323
| | | |
$
|
272,382
| |
Less goodwill
| | | |
(682
|
)
| | | |
(682
|
)
| | | |
(682
|
)
|
Less core deposit intangible
| | |
|
(1,500
|
)
| | |
|
(1,549
|
)
| | |
|
(1,706
|
)
|
Tangible common equity (c)
| | |
$
|
302,869
|
| | |
$
|
294,092
|
| | |
$
|
269,994
|
|
| | | | | | | | |
|
Total assets (b)
| | |
$
|
2,909,519
| | | |
$
|
2,824,107
| | | |
$
|
2,482,687
| |
Less goodwill
| | | |
(682
|
)
| | | |
(682
|
)
| | | |
(682
|
)
|
Less core deposit intangible
| | |
|
(1,500
|
)
| | |
|
(1,549
|
)
| | |
|
(1,706
|
)
|
Tangible assets (d)
| | |
$
|
2,907,337
|
| | |
$
|
2,821,876
|
| | |
$
|
2,480,299
|
|
| | | | | | | | |
|
Total stockholders' equity to total assets (a/b)
| | | |
10.48
|
%
| | | |
10.49
|
%
| | | |
10.97
|
%
|
Tangible common equity ratio (c/d)
| | |
|
10.42
|
%
| | |
|
10.42
|
%
| | |
|
10.89
|
%
|
| | | | | | | | |
|
The following table provides a reconciliation of net interest margin in
accordance with US GAAP to core net interest margin, which is a non-GAAP
financial measure. Core net interest margin excludes the effect of
prepayment penalty and late charge income from borrowers, the accretion
of purchase accounting loan fair value adjustments, and the effect of
excess liquidity, which the Company defines as the combined amount of
federal funds sold and short-term securities available for sale,
typically maturing in one week or less, in excess of $60 million. The
Company provides this information to illustrate sequentially the trend
in quarterly net interest margin to show the impact of those items on
net interest margin.
|
Reconciliation of Net Interest Margin to Core Interest Margin |
|
|
|
| June 30, 2016 |
|
| March 31, 2016 |
|
| Dec. 31, 2015 |
|
| Sept. 30, 2015 |
|
| June 30, 2015 |
Net interest margin
| | |
3.59
|
%
| | |
3.56
|
%
| | |
3.57
|
%
| | |
3.66
|
%
| | |
3.75
|
%
|
Prepayment penalties / late charges
| | |
(0.02
|
)
| | |
(0.05
|
)
| | |
(0.02
|
)
| | |
(0.01
|
)
| | |
(0.03
|
)
|
Accretion of fair value adjustments
| | |
--
| | | |
--
| | | |
(0.01
|
)
| | |
(0.02
|
)
| | |
(0.01
|
)
|
Excess liquidity
| | |
0.03
|
| | |
0.13
|
| | |
0.06
|
| | |
0.03
|
| | |
(0.02
|
)
|
Core net interest margin
| | |
3.60
|
%
| | |
3.64
|
%
| | |
3.60
|
%
| | |
3.66
|
%
| | |
3.69
|
%
|
| | | | | | | | | | | | | | |
|
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. See Risk Factors outlined in the
Company's Form 10-K for the year ended December 31, 2015.
|
|
| |
Stock Yards Bancorp, Inc. Financial Information (unaudited) |
Second Quarter 2016 Earnings Release |
(In thousands unless otherwise noted) |
| | | Three Months Ended |
|
| Six Months Ended |
| | | June 30, | | | June 30, |
| | | 2016 |
|
| 2015 | | | 2016 |
|
| 2015 |
Income Statement Data | | | | | | | | | | | | |
Net interest income, fully tax equivalent (1)
| | |
$
|
24,165
| | |
$
|
22,035
| | |
$
|
47,853
| | |
$
|
43,884
|
Interest income:
| | | | | | | | | | | | |
Loans
| | |
$
|
22,563
| | |
$
|
20,612
| | |
$
|
44,556
| | |
$
|
41,027
|
Federal funds sold
| | | |
111
| | | |
51
| | | |
300
| | | |
119
|
Mortgage loans held for sale
| | | |
59
| | | |
74
| | | |
119
| | | |
113
|
Securities
| | |
|
2,429
| | |
|
2,263
| | |
|
4,887
| | |
|
4,588
|
Total interest income
| | |
|
25,162
| | |
|
23,000
| | |
|
49,862
| | |
|
45,847
|
Interest expense:
| | | | | | | | | | | | |
Deposits
| | | |
979
| | | |
938
| | | |
1,975
| | | |
1,911
|
Federal funds purchased and short-term borrowing
| | | |
23
| | | |
5
| | | |
38
| | | |
12
|
Securities sold under agreements to repurchase
| | | |
29
| | | |
32
| | | |
62
| | | |
69
|
Federal Home Loan Bank (FHLB) advances
| | |
|
181
| | |
|
224
| | |
|
368
| | |
|
440
|
Total interest expense
| | |
|
1,212
| | |
|
1,199
| | |
|
2,443
| | |
|
2,432
|
Net interest income
| | | |
23,950
| | | |
21,801
| | | |
47,419
| | | |
43,415
|
Provision for loan losses
| | |
|
750
| | |
|
-
| | |
|
1,250
| | |
|
-
|
Net interest income after provision for loan losses
| | |
|
23,200
| | |
|
21,801
| | |
|
46,169
| | |
|
43,415
|
Non-interest income:
| | | | | | | | | | | | |
Investment management and trust income
| | | |
4,807
| | | |
4,651
| | | |
9,419
| | | |
9,203
|
Service charges on deposit accounts
| | | |
2,262
| | | |
2,199
| | | |
4,408
| | | |
4,279
|
Bankcard transaction revenue
| | | |
1,433
| | | |
1,246
| | | |
2,743
| | | |
2,368
|
Mortgage banking revenue
| | | |
1,030
| | | |
913
| | | |
1,824
| | | |
1,741
|
Brokerage commissions and fees
| | | |
538
| | | |
499
| | | |
981
| | | |
960
|
Bank owned life insurance
| | | |
220
| | | |
226
| | | |
441
| | | |
448
|
Other non-interest income
| | |
|
488
| | |
|
485
| | |
|
1,044
| | |
|
893
|
Total non-interest income
| | |
|
10,778
| | |
|
10,219
| | |
|
20,860
| | |
|
19,892
|
Non-interest expense:
| | | | | | | | | | | | |
Salaries and employee benefits expense
| | | |
11,971
| | | |
11,383
| | | |
24,166
| | | |
22,483
|
Net occupancy expense
| | | |
1,546
| | | |
1,450
| | | |
3,070
| | | |
2,919
|
Data processing expense
| | | |
1,881
| | | |
1,756
| | | |
3,425
| | | |
3,210
|
Furniture and equipment expense
| | | |
291
| | | |
260
| | | |
576
| | | |
507
|
FDIC insurance expense
| | | |
351
| | | |
317
| | | |
679
| | | |
614
|
Amortization of investment in tax credit partnerships
| | | |
1,016
| | | |
159
| | | |
2,031
| | | |
317
|
Other non-interest expenses
| | |
|
3,137
| | |
|
3,542
| | |
|
5,786
| | |
|
6,596
|
Total non-interest expense
| | |
|
20,193
| | |
|
18,867
| | |
|
39,733
| | |
|
36,646
|
Net income before income tax expense
| | | |
13,785
| | | |
13,153
| | | |
27,296
| | | |
26,661
|
Income tax expense
| | |
|
3,676
| | |
|
4,151
| | |
|
7,352
| | |
|
8,404
|
Net income
| | |
$
|
10,109
| | |
$
|
9,002
| | |
$
|
19,944
| | |
$
|
18,257
|
| | | | | | | | | | | |
|
Weighted average shares - basic (2)
| | | |
22,336
| | | |
22,065
| | | |
22,295
| | | |
22,018
|
Weighted average shares - diluted
| | | |
22,704
| | | |
22,404
| | | |
22,658
| | | |
22,353
|
| | | | | | | | | | | |
|
Net income per share, basic
| | |
$
|
0.45
| | |
$
|
0.41
| | |
$
|
0.89
| | |
$
|
0.83
|
Net income per share, diluted
| | | |
0.45
| | | |
0.40
| | | |
0.88
| | | |
0.82
|
Cash dividend declared per share
| | | |
0.18
| | | |
0.16
| | | |
0.35
| | | |
0.31
|
| | | | | | | | | | | |
|
Balance Sheet Data (at period end) | | | | | | | | | | | | |
Total loans
| | | | | | | | |
$
|
2,175,551
| | |
$
|
1,899,302
|
Allowance for loan losses
| | | | | | | | | |
23,141
| | | |
23,308
|
Total assets
| | | | | | | | | |
2,909,519
| | | |
2,482,687
|
Non-interest bearing deposits
| | | | | | | | | |
637,812
| | | |
551,723
|
Interest bearing deposits
| | | | | | | | | |
1,712,136
| | | |
1,520,042
|
Federal Home Loan Bank advances
| | | | | | | | | |
43,002
| | | |
38,855
|
Stockholders' equity
| | | | | | | | | |
305,051
| | | |
272,382
|
Total shares outstanding
| | | | | | | | | |
22,510
| | | |
22,277
|
Book value per share
| | | | | | | | | |
13.55
| | | |
12.23
|
Market value per share
| | | | | | | | | |
28.23
| | | |
25.19
|
| | | | | | | | | | | |
|
|
Stock Yards Bancorp, Inc. Financial Information (unaudited) |
Second Quarter 2016 Earnings Release |
|
|
| |
|
| |
|
| |
|
| |
| | | Three Months Ended | | | Six Months Ended |
| | | June 30, | | | June 30, |
| | | 2016 | | | 2015 | | | 2016 | | | 2015 |
Average Balance Sheet Data | | | | | | | | | | | | |
Average federal funds sold
| | |
$
|
85,914
| | | |
$
|
56,671
| | | |
$
|
114,797
| | | |
$
|
71,679
| |
Average mortgage loans held for sale
| | | |
5,432
| | | | |
7,701
| | | | |
4,840
| | | | |
5,678
| |
Average securities available for sale
| | | |
475,275
| | | | |
406,854
| | | | |
479,203
| | | | |
412,325
| |
Average FHLB stock and other securities
| | | |
6,347
| | | | |
6,347
| | | | |
6,347
| | | | |
6,347
| |
Average loans
| | | |
2,142,530
| | | | |
1,887,913
| | | | |
2,092,990
| | | | |
1,882,782
| |
Average earning assets
| | | |
2,705,358
| | | | |
2,357,555
| | | | |
2,689,600
| | | | |
2,370,820
| |
Average assets
| | | |
2,858,624
| | | | |
2,498,677
| | | | |
2,838,345
| | | | |
2,512,140
| |
Average interest bearing deposits
| | | |
1,736,478
| | | | |
1,557,922
| | | | |
1,757,413
| | | | |
1,577,155
| |
Average total deposits
| | | |
2,400,547
| | | | |
2,090,448
| | | | |
2,385,682
| | | | |
2,103,578
| |
Average securities sold under agreement to repurchase
| | | |
53,514
| | | | |
58,060
| | | | |
56,193
| | | | |
61,185
| |
Average federal funds purchased and other short term borrowings
| | | |
28,152
| | | | |
14,420
| | | | |
25,804
| | | | |
15,142
| |
Average Federal Home Loan Bank advances
| | | |
43,081
| | | | |
41,017
| | | | |
43,198
| | | | |
38,907
| |
Average interest bearing liabilities
| | | |
1,861,225
| | | | |
1,671,419
| | | | |
1,882,608
| | | | |
1,692,389
| |
Average stockholders' equity
| | | |
300,553
| | | | |
271,477
| | | | |
296,558
| | | | |
268,104
| |
| | | | | | | | | | | |
|
Performance Ratios | | | | | | | | | | | | |
Annualized return on average assets
| | | |
1.42
|
%
| | | |
1.45
|
%
| | | |
1.41
|
%
| | | |
1.47
|
%
|
Annualized return on average equity
| | | |
13.53
|
%
| | | |
13.30
|
%
| | | |
13.52
|
%
| | | |
13.73
|
%
|
Net interest margin, fully tax equivalent
| | | |
3.59
|
%
| | | |
3.75
|
%
| | | |
3.58
|
%
| | | |
3.73
|
%
|
Non-interest income to total revenue, fully tax equivalent
| | | |
30.84
|
%
| | | |
31.68
|
%
| | | |
30.36
|
%
| | | |
31.19
|
%
|
Efficiency ratio
| | | |
57.79
|
%
| | | |
58.50
|
%
| | | |
57.82
|
%
| | | |
57.46
|
%
|
| | | | | | | | | | | |
|
Capital Ratios | | | | | | | | | | | | |
Average stockholders' equity to average assets
| | | |
10.51
|
%
| | | |
10.86
|
%
| | | |
10.45
|
%
| | | |
10.67
|
%
|
Common equity tier 1 capital
| | | | | | | | | |
12.06
|
%
| | | |
12.72
|
%
|
Tier 1 risk-based capital
| | | | | | | | | |
12.06
|
%
| | | |
12.72
|
%
|
Total risk-based capital
| | | | | | | | | |
13.01
|
%
| | | |
13.82
|
%
|
Leverage
| | | | | | | | | |
10.46
|
%
| | | |
10.83
|
%
|
| | | | | | | | | | | |
|
Loans by Type | | | | | | | | | | | | |
Commercial and industrial
| | | | | | | | |
$
|
721,956
| | | |
$
|
595,584
| |
Construction and development
| | | | | | | | | |
156,371
| | | | |
122,239
| |
Real estate mortgage - commercial investment
| | | | | | | | | |
572,438
| | | | |
524,696
| |
Real estate mortgage - owner occupied commercial
| | | | | | | | | |
333,862
| | | | |
302,342
| |
Real estate mortgage - 1-4 family residential
| | | | | | | | | |
240,770
| | | | |
216,864
| |
Home equity - first lien
| | | | | | | | | |
52,360
| | | | |
42,612
| |
Home equity - junior lien
| | | | | | | | | |
65,999
| | | | |
65,354
| |
Consumer
| | | | | | | | | |
31,795
| | | | |
29,611
| |
| | | | | | | | | | | |
|
Asset Quality Data | | | | | | | | | | | | |
Allowance for loan losses to total loans
| | | | | | | | | |
1.06
|
%
| | | |
1.23
|
%
|
Allowance for loan losses to average loans
| | | | | | | | | |
1.11
|
%
| | | |
1.24
|
%
|
Allowance for loan losses to non-performing loans
| | | | | | | | | |
361.58
|
%
| | | |
236.08
|
%
|
Nonaccrual loans
| | | | | | | | |
$
|
4,970
| | | |
$
|
8,781
| |
Troubled debt restructuring
| | | | | | | | | |
1,020
| | | | |
1,092
| |
Loans - 90 days past due & still accruing
| | | | | | | | | |
410
| | | | |
-
| |
Total non-performing loans
| | | | | | | | | |
6,400
| | | | |
9,873
| |
OREO and repossessed assets
| | | | | | | | | |
5,093
| | | | |
4,296
| |
Total non-performing assets
| | | | | | | | | |
11,493
| | | | |
14,169
| |
Non-performing loans to total loans
| | | | | | | | | |
0.29
|
%
| | | |
0.52
|
%
|
Non-performing assets to total assets
| | | | | | | | | |
0.40
|
%
| | | |
0.57
|
%
|
Net charge-offs to average loans (3)
| | | |
0.00
|
%
| | | |
0.08
|
%
| | | |
0.03
|
%
| | | |
0.09
|
%
|
Net charge-offs
| | |
$
|
60
| | | |
$
|
1,574
| | | |
$
|
550
| | | |
$
|
1,612
| |
| | | | | | | | | | | | | | | | | | | |
|
|
Stock Yards Bancorp, Inc. Financial Information (unaudited) |
Second Quarter 2016 Earnings Release |
|
|
|
| Five Quarter Comparison |
| | | 6/30/16 |
|
| 3/31/16 |
|
| 12/31/15 |
|
| 9/30/15 |
|
| 6/30/15 |
Income Statement Data | | | | | | | | | | | | | | | |
Net interest income, fully tax equivalent (1)
| | |
$
|
24,165
|
| | |
$
|
23,688
|
| | |
$
|
23,050
|
| | |
$
|
22,312
|
| | |
$
|
22,035
|
|
Net interest income
| | |
$
|
23,950
| | | |
$
|
23,469
| | | |
$
|
22,822
| | | |
$
|
22,081
| | | |
$
|
21,801
| |
Provision for loan losses
| | |
|
750
|
| | |
|
500
|
| | |
|
750
|
| | |
|
-
|
| | |
|
-
|
|
Net interest income after provision for loan losses
| | |
|
23,200
|
| | |
|
22,969
|
| | |
|
22,072
|
| | |
|
22,081
|
| | |
|
21,801
|
|
Investment management and trust income
| | | |
4,807
| | | | |
4,612
| | | | |
4,450
| | | | |
4,373
| | | | |
4,651
| |
Service charges on deposit accounts
| | | |
2,262
| | | | |
2,146
| | | | |
2,285
| | | | |
2,342
| | | | |
2,199
| |
Bankcard transaction revenue
| | | |
1,433
| | | | |
1,310
| | | | |
1,285
| | | | |
1,223
| | | | |
1,246
| |
Mortgage banking revenue
| | | |
1,030
| | | | |
794
| | | | |
975
| | | | |
772
| | | | |
913
| |
Brokerage commissions and fees
| | | |
538
| | | | |
443
| | | | |
449
| | | | |
585
| | | | |
499
| |
Bank owned life insurance
| | | |
220
| | | | |
221
| | | | |
219
| | | | |
222
| | | | |
226
| |
Other non-interest income
| | |
|
488
|
| | |
|
556
|
| | |
|
410
|
| | |
|
468
|
| | |
|
485
|
|
Total non-interest income
| | |
|
10,778
|
| | |
|
10,082
|
| | |
|
10,073
|
| | |
|
9,985
|
| | |
|
10,219
|
|
Salaries and employee benefits expense
| | | |
11,971
| | | | |
12,195
| | | | |
10,893
| | | | |
11,333
| | | | |
11,383
| |
Net occupancy expense
| | | |
1,546
| | | | |
1,524
| | | | |
1,475
| | | | |
1,518
| | | | |
1,450
| |
Data processing expense
| | | |
1,881
| | | | |
1,544
| | | | |
1,566
| | | | |
1,572
| | | | |
1,756
| |
Furniture and equipment expense
| | | |
291
| | | | |
285
| | | | |
285
| | | | |
282
| | | | |
260
| |
FDIC Insurance expense
| | | |
351
| | | | |
328
| | | | |
326
| | | | |
318
| | | | |
317
| |
Amortization of investment in tax credit partnerships
| | | |
1,016
| | | | |
1,015
| | | | |
159
| | | | |
158
| | | | |
159
| |
Other non-interest expenses
| | |
|
3,137
|
| | |
|
2,649
|
| | |
|
3,618
|
| | |
|
3,249
|
| | |
|
3,542
|
|
Total non-interest expense
| | |
|
20,193
|
| | |
|
19,540
|
| | |
|
18,322
|
| | |
|
18,430
|
| | |
|
18,867
|
|
Net income before income tax expense
| | | |
13,785
| | | | |
13,511
| | | | |
13,823
| | | | |
13,636
| | | | |
13,153
| |
Income tax expense
| | |
|
3,676
|
| | |
|
3,676
|
| | |
|
4,177
|
| | |
|
4,352
|
| | |
|
4,151
|
|
Net income
| | |
$
|
10,109
|
| | |
$
|
9,835
|
| | |
$
|
9,646
|
| | |
$
|
9,284
|
| | |
$
|
9,002
|
|
| | | | | | | | | | | | | | |
|
Weighted average shares - basic
| | | |
22,336
| | | | |
22,254
| | | | |
22,183
| | | | |
22,131
| | | | |
22,065
| |
Weighted average shares - diluted
| | | |
22,704
| | | | |
22,592
| | | | |
22,567
| | | | |
22,479
| | | | |
22,404
| |
| | | | | | | | | | | | | | |
|
Net income per share, basic
| | |
$
|
0.45
| | | |
$
|
0.44
| | | |
$
|
0.43
| | | |
$
|
0.42
| | | |
$
|
0.41
| |
Net income per share, diluted
| | | |
0.45
| | | | |
0.44
| | | | |
0.43
| | | | |
0.41
| | | | |
0.40
| |
Cash dividend declared per share
| | | |
0.18
| | | | |
0.17
| | | | |
0.17
| | | | |
0.16
| | | | |
0.16
| |
| | | | | | | | | | | | | | |
|
Balance Sheet Data (at period end) | | | | | | | | | | | | | | | |
Cash and due from banks
| | |
$
|
40,618
| | | |
$
|
35,022
| | | |
$
|
35,895
| | | |
$
|
37,335
| | | |
$
|
37,775
| |
Federal funds sold
| | | |
9,616
| | | | |
13,016
| | | | |
67,938
| | | | |
17,859
| | | | |
20,901
| |
Mortgage loans held for sale
| | | |
6,405
| | | | |
3,984
| | | | |
6,800
| | | | |
5,539
| | | | |
8,237
| |
Securities available for sale
| | | |
567,307
| | | | |
569,012
| | | | |
565,876
| | | | |
504,366
| | | | |
412,866
| |
FHLB stock and other securities
| | | |
6,347
| | | | |
6,347
| | | | |
6,347
| | | | |
6,347
| | | | |
6,347
| |
Total loans
| | | |
2,175,551
| | | | |
2,094,488
| | | | |
2,033,007
| | | | |
1,954,425
| | | | |
1,899,302
| |
Allowance for loan losses
| | | |
23,141
| | | | |
22,451
| | | | |
22,441
| | | | |
21,614
| | | | |
23,308
| |
Total assets
| | | |
2,909,519
| | | | |
2,824,107
| | | | |
2,816,801
| | | | |
2,624,607
| | | | |
2,482,687
| |
Non-interest bearing deposits
| | | |
637,812
| | | | |
606,375
| | | | |
583,768
| | | | |
595,039
| | | | |
551,723
| |
Interest bearing deposits
| | | |
1,712,136
| | | | |
1,759,725
| | | | |
1,787,934
| | | | |
1,546,539
| | | | |
1,520,042
| |
Securities sold under agreements to repurchase
| | | |
57,437
| | | | |
54,781
| | | | |
64,526
| | | | |
67,557
| | | | |
64,418
| |
Federal funds purchased
| | | |
114,154
| | | | |
30,083
| | | | |
22,477
| | | | |
62,101
| | | | |
13,290
| |
Federal Home Loan Bank advances
| | | |
43,002
| | | | |
43,236
| | | | |
43,468
| | | | |
43,699
| | | | |
38,855
| |
Stockholders' equity
| | | |
305,051
| | | | |
296,323
| | | | |
286,519
| | | | |
280,948
| | | | |
272,382
| |
Total shares outstanding
| | | |
22,510
| | | | |
22,478
| | | | |
22,379
| | | | |
22,303
| | | | |
22,277
| |
Book value per share
| | | |
13.55
| | | | |
13.18
| | | | |
12.80
| | | | |
12.60
| | | | |
12.23
| |
Market value per share
| | | |
28.23
| | | | |
25.69
| | | | |
25.19
| | | | |
24.23
| | | | |
25.19
| |
| | | | | | | | | | | | | | |
|
Capital Ratios | | | | | | | | | | | | | | | |
Average stockholders' equity to average assets
| | | |
10.51
|
%
| | | |
10.38
|
%
| | | |
10.52
|
%
| | | |
10.80
|
%
| | | |
10.86
|
%
|
Common equity tier 1 capital
| | | |
12.06
|
%
| | | |
12.23
|
%
| | | |
12.32
|
%
| | | |
12.68
|
%
| | | |
12.72
|
%
|
Tier 1 risk-based capital
| | | |
12.06
|
%
| | | |
12.23
|
%
| | | |
12.32
|
%
| | | |
12.68
|
%
| | | |
12.72
|
%
|
Total risk-based capital
| | | |
13.01
|
%
| | | |
13.19
|
%
| | | |
13.31
|
%
| | | |
13.68
|
%
| | | |
13.82
|
%
|
Leverage
| | | |
10.46
|
%
| | | |
10.35
|
%
| | | |
10.53
|
%
| | | |
10.82
|
%
| | | |
10.83
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | | |
|
|
Stock Yards Bancorp, Inc. Financial Information (unaudited) |
Second Quarter 2016 Earnings Release |
|
|
|
| Five Quarter Comparison |
| | | 6/30/16 |
|
| 3/31/16 |
|
| 12/31/15 |
|
| 9/30/15 |
|
| 6/30/15 |
Average Balance Sheet Data | | | | | | | | | | | | | | | |
Average federal funds sold
| | |
$
|
85,914
| | | |
$
|
143,679
| | | |
$
|
99,903
| | | |
$
|
86,008
| | | |
$
|
56,671
| |
Average mortgage loans held for sale
| | | |
5,432
| | | | |
4,249
| | | | |
4,991
| | | | |
5,045
| | | | |
7,701
| |
Average investment securities
| | | |
475,275
| | | | |
483,130
| | | | |
471,349
| | | | |
402,487
| | | | |
406,854
| |
Average loans
| | | |
2,142,530
| | | | |
2,043,450
| | | | |
1,986,289
| | | | |
1,923,762
| | | | |
1,887,913
| |
Average earning assets
| | | |
2,705,358
| | | | |
2,673,842
| | | | |
2,561,650
| | | | |
2,416,364
| | | | |
2,357,555
| |
Average assets
| | | |
2,858,624
| | | | |
2,818,072
| | | | |
2,708,630
| | | | |
2,560,680
| | | | |
2,498,677
| |
Average interest bearing deposits
| | | |
1,736,478
| | | | |
1,778,347
| | | | |
1,664,979
| | | | |
1,557,177
| | | | |
1,557,922
| |
Average total deposits
| | | |
2,400,547
| | | | |
2,370,819
| | | | |
2,271,431
| | | | |
2,129,583
| | | | |
2,090,448
| |
Average securities sold under agreement to repurchase
| | | |
53,514
| | | | |
58,871
| | | | |
66,918
| | | | |
71,144
| | | | |
58,060
| |
Average federal funds purchased and other short term borrowings
| | | |
28,152
| | | | |
23,456
| | | | |
14,147
| | | | |
16,156
| | | | |
14,420
| |
Average Federal Home Loan Bank advances
| | | |
43,081
| | | | |
43,316
| | | | |
43,546
| | | | |
42,732
| | | | |
41,017
| |
Average interest bearing liabilities
| | | |
1,861,225
| | | | |
1,903,990
| | | | |
1,789,590
| | | | |
1,687,209
| | | | |
1,671,419
| |
Average stockholders' equity
| | | |
300,553
| | | | |
292,540
| | | | |
284,824
| | | | |
276,563
| | | | |
271,477
| |
| | | | | | | | | | | | | | |
|
Performance Ratios | | | | | | | | | | | | | | | |
Annualized return on average assets
| | | |
1.42
|
%
| | | |
1.40
|
%
| | | |
1.41
|
%
| | | |
1.44
|
%
| | | |
1.45
|
%
|
Annualized return on average equity
| | | |
13.53
|
%
| | | |
13.52
|
%
| | | |
13.44
|
%
| | | |
13.32
|
%
| | | |
13.30
|
%
|
Net interest margin, fully tax equivalent
| | | |
3.59
|
%
| | | |
3.56
|
%
| | | |
3.57
|
%
| | | |
3.66
|
%
| | | |
3.75
|
%
|
Non-interest income to total revenue, fully tax equivalent
| | | |
30.84
|
%
| | | |
29.85
|
%
| | | |
30.41
|
%
| | | |
30.92
|
%
| | | |
31.68
|
%
|
Efficiency ratio
| | | |
57.79
|
%
| | | |
57.86
|
%
| | | |
55.32
|
%
| | | |
57.06
|
%
| | | |
58.50
|
%
|
| | | | | | | | | | | | | | |
|
Loans by Type | | | | | | | | | | | | | | | |
Commercial and industrial
| | |
$
|
721,956
| | | |
$
|
676,782
| | | |
$
|
644,398
| | | |
$
|
610,877
| | | |
$
|
595,584
| |
Construction and development
| | | |
156,371
| | | | |
160,667
| | | | |
155,667
| | | | |
128,820
| | | | |
122,239
| |
Real estate mortgage - commercial investment
| | | |
572,438
| | | | |
541,121
| | | | |
528,290
| | | | |
536,226
| | | | |
524,696
| |
Real estate mortgage - owner occupied commercial
| | | |
333,862
| | | | |
328,337
| | | | |
329,365
| | | | |
312,573
| | | | |
302,342
| |
Real estate mortgage - 1-4 family residential
| | | |
240,770
| | | | |
234,199
| | | | |
226,575
| | | | |
222,643
| | | | |
216,864
| |
Home equity - 1st lien
| | | |
52,360
| | | | |
52,042
| | | | |
50,115
| | | | |
49,937
| | | | |
42,612
| |
Home equity - junior lien
| | | |
65,999
| | | | |
63,336
| | | | |
63,066
| | | | |
62,223
| | | | |
65,354
| |
Consumer
| | | |
31,795
| | | | |
38,004
| | | | |
35,531
| | | | |
31,126
| | | | |
29,611
| |
| | | | | | | | | | | | | | |
|
Asset Quality Data | | | | | | | | | | | | | | | |
Allowance for loan losses to total loans
| | | |
1.06
|
%
| | | |
1.07
|
%
| | | |
1.10
|
%
| | | |
1.11
|
%
| | | |
1.23
|
%
|
Allowance for loan losses to average loans
| | | |
1.08
|
%
| | | |
1.10
|
%
| | | |
1.13
|
%
| | | |
1.12
|
%
| | | |
1.23
|
%
|
Allowance for loan losses to non-performing loans
| | | |
361.58
|
%
| | | |
251.75
|
%
| | | |
251.33
|
%
| | | |
193.03
|
%
| | | |
236.08
|
%
|
Nonaccrual loans
| | |
$
|
4,970
| | | |
$
|
7,878
| | | |
$
|
7,693
| | | |
$
|
9,574
| | | |
$
|
8,781
| |
Troubled debt restructuring
| | | |
1,020
| | | | |
1,040
| | | | |
1,060
| | | | |
1,079
| | | | |
1,092
| |
Loans - 90 days past due & still accruing
| | | |
410
| | | | |
-
| | | | |
176
| | | | |
544
| | | | |
-
| |
Total non-performing loans
| | | |
6,400
| | | | |
8,918
| | | | |
8,929
| | | | |
11,197
| | | | |
9,873
| |
OREO and repossessed assets
| | | |
5,093
| | | | |
5,049
| | | | |
4,541
| | | | |
4,607
| | | | |
4,296
| |
Total non-performing assets
| | | |
11,493
| | | | |
13,967
| | | | |
13,470
| | | | |
15,804
| | | | |
14,169
| |
Non-performing loans to total loans
| | | |
0.29
|
%
| | | |
0.43
|
%
| | | |
0.44
|
%
| | | |
0.57
|
%
| | | |
0.52
|
%
|
Non-performing assets to total assets
| | | |
0.40
|
%
| | | |
0.49
|
%
| | | |
0.48
|
%
| | | |
0.60
|
%
| | | |
0.57
|
%
|
Net charge-offs to average loans
| | | |
0.00
|
%
| | | |
0.02
|
%
| | | |
0.00
|
%
| | | |
0.09
|
%
| | | |
0.08
|
%
|
Net charge-offs (recoveries)
| | |
$
|
60
| | | |
$
|
490
| | | |
$
|
(77
|
)
| | |
$
|
1,694
| | | |
$
|
1,574
| |
| | | | | | | | | | | | | | |
|
Other Information | | | | | | | | | | | | | | | |
Total assets under management (in millions)
| | |
$
|
2,342
| | | |
$
|
2,255
| | | |
$
|
2,238
| | | |
$
|
2,189
| | | |
$
|
2,289
| |
Full-time equivalent employees
| | | |
549
| | | | |
550
| | | | |
555
| | | | |
546
| | | | |
538
| |
|
(1) - Interest income on a fully tax equivalent basis includes the
additional amount of interest income that would have been earned if
investments in certain tax-exempt interest earning assets had been
made in assets subject to federal, state and local taxes yielding
the same after-tax income.
|
(2) - Share and per share information adjusted to reflect the 3 for
2 stock split - May 2016
|
(3) - Interim ratios not annualized
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727005283/en/
Contacts:
Stock Yards Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive
Vice President and Chief Financial Officer
Source: Stock Yards Bancorp, Inc.
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