19:33:15 EDT Thu 28 Mar 2024
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Stock Yards Bancorp Second Quarter 2016 Net Income Rises 12% to a Record $10.1 Million

2016-07-27 07:30 ET - News Release

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     20152016     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 EndedSix Months Ended
June 30,June 30,
2016201520162015
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
 

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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