Stock Yards Bancorp Reports First Quarter 2017 Net Income up 10% to $10.8 Million or $0.47 Per Diluted Share

LOUISVILLE, Ky.--()--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 first quarter ended March 31, 2017. Net income for the first quarter of 2017 increased 10% to $10.8 million or $0.47 per diluted share compared with $9.8 million or $0.44 per diluted share for the first quarter of 2016. Please note that all share and per share information in this release has been adjusted for and reflects a three-for-two stock split distributed in May 2016.

The Company's performance for the first quarter of 2017 reflected several positive factors, including:

  • The continued positive effect of strong loan growth over the past 12 months, which has increased the Company's loan portfolio almost 9% year over year;
  • Credit quality that remains at historically strong levels;
  • Significant growth in fee income, driven by the Wealth Management and Trust Group; and
  • Solid returns on average assets and equity.

The following is a summary of the Company's reported results:

     

Quarter Ended March 31,

2017

2016

Change

Net income $ 10,791,000 $ 9,835,000 10 %
Net income per share, diluted $ 0.47 $ 0.44 7 %
Return on average equity 13.78 % 13.52 %
Return on average assets 1.46 % 1.40 %
 

The Company's results for the first quarter of 2017 reflect implementation of a new accounting pronouncement, which changes the way excess tax benefits related to share-based payment awards are recorded. Prior to 2017, these were recorded in additional paid-in capital and, thus, did not affect earnings. Beginning in 2017, these amounts are recorded within tax expense or as a reduction of tax expense on the income statement. The benefit from this accounting change, which is primarily a first quarter event in the case of Stock Yards Bancorp, was approximately $0.04 per diluted share. Had this pronouncement been in effect last year, first quarter 2016 diluted earnings per share would have increased by $0.02.

"The Company's first quarter results showed good momentum in our business, as we exceeded net income for the prior-year period, posted year-over-year expansion of our loan portfolio, and continued to record attractive growth in fee-based income," said David P. Heintzman, Chairman and Chief Executive Officer. "This progress, coming off record results last year, marks a solid start to 2017 and gives us confidence that the Company is poised to deliver another solid performance for the coming year."

Heintzman noted that loan production remained on a strong pace in the first quarter of 2017 – the Company's second best production quarter ever and 10% ahead of a moving three-year average for the period. Because of solid loan production trends over the past several years, the Company has achieved notable loan portfolio expansion. In turn, this has continued to drive higher net interest income – a key factor supporting earnings growth. The Company's robust loan production for the first quarter was obscured by significant loan principal repayments. These primarily resulted from commercial construction projects for which loans matured and did not continue as permanent financing and from commercial real estate borrowers who sold collateral or their business.

Again, in the first quarter of 2017, wealth management and trust reported strong results as fee income rose 10% from the year-earlier quarter. This growth was driven primarily by new customer additions and stock market gains during the quarter. With $2.6 billion of assets under management and accounting for almost one-half of total fee income for the first quarter, wealth management and trust not only diversifies the Company's sources of income, it increasingly provides it with a significant point of differentiation in the community banking arena. Service charges on deposit accounts also improved year over year in the first quarter of 2017, while another source of fee income, mortgage lending, contracted on a comparable basis due largely to limited home inventory available for sale.

Heintzman also announced that the Company recently was named again to the 2016 KBW Bank Honor Roll, a selection based on a bank's 10-year performance record. For all banks with more than $500 million in total assets, only 15 banks, including Stock Yards Bancorp, achieved this prestigious ranking, down from 18 last year. The Company also recently received the 2016 Raymond James Community Bankers Cup, which recognizes the top 10% of community banks in the country with assets between $500 million and $10 billion. Stock Yards Bancorp has attained this award in each of the five years since its inception. Additionally, S&P Global Market Intelligence has included the Company in its annual rankings of 2016's 100 best-performing community banks between $1 billion and $10 billion in assets based on six core financial performance metrics.

"As we look ahead to the balance of 2017, we remain confident about the Company's long-term strategies for growth," Heintzman said. "Our loan pipeline is solid and our business is diverse – not only across the markets we serve, but also in the sources of our revenues – and our capital strength allows us to be agile in the pursuit of new opportunities. We believe these competitive advantages, combined with a dedication to delivering unsurpassed customer service that is shared by all of us at Stock Yards Bancorp, will enable the Company to extend its record in 2017 for consistent, predictable results and drive higher intrinsic stockholder value."

Total assets increased $209 million or 7% at March 31, 2017, to $3.03 billion from $2.82 billion at March 31, 2016. Ongoing growth in the Company's loan portfolio primarily accounted for this increase, as the portfolio rose $178 million or almost 9% to $2.27 billion at March 31, 2017, from $2.09 billion at March 31, 2016. The Company continues to provide substantial support for its balance sheet growth through increased deposits. Total deposits increased $178 million or 8% to $2.54 billion at March 31, 2017, from $2.37 billion at March 31, 2016, reflecting growth from both existing and new customers and across most account categories, including non-interest bearing accounts. Core deposits, which exclude brokered deposits and time deposits greater than $250,000, held steady at 98.5% of total deposits as of March 31, 2017.

The Company continued to sustain strong capital levels in the first quarter of 2017, remaining "well capitalized" – the highest capital rating for financial institutions. Stock Yards Bancorp's tangible common equity ratio as of March 31, 2017, was 10.48% (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).

With its balance sheet strength, Stock Yards Bancorp has continued to pursue capital strategies to enhance stockholder value, including a substantial and sustained dividend payout ratio. In February 2017, these efforts continued as Stock Yards Bancorp's Board of Directors declared a quarterly cash dividend of $0.19 per common share, which continued the higher rate set by the Board in November 2016. Since 2011, there have been nine dividend increases, including two during 2016, for a cumulative increase of approximately 58%. Meanwhile, the Company has maintained financial flexibility to pursue strategic expansion and acquisition opportunities that may arise. Management believes Stock Yards Bancorp's stockholders value this capital strength for stability and potential expansion and, at the same time, welcome the consistently strong returns the Company produces.

Net interest income – the Company's largest source of revenue – increased $1.7 million or 7% to $25.2 million in the first quarter of 2017 from $23.5 million in the prior-year quarter. The increase reflected the impact of ongoing growth in the loan portfolio together with stable, deposit-driven funding costs.

Even as the lending market remains highly competitive, net interest margin (on a fully tax-equivalent basis) improved in the first quarter of 2017, reflecting the impact of recent increases in short-term interest rates. In the first quarter of 2017, net interest margin was 3.63% compared with 3.56% in both the fourth quarter of 2016 and the first quarter of 2016. 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 3.64% for the first quarter of 2017, up four basis point from the fourth quarter of 2016 and up one basis point from the first quarter of 2016. Considering the prospects of additional rate hikes by the Federal Open Market Committee during 2017, management anticipates that net interest margin will continue to improve during the coming year. Approximately 61% of the Company's loans are priced at fixed rates, so future rate increases will not benefit the Company appreciably with respect to this part of the portfolio until existing fixed-rate loans renew and new fixed-rate loans originate at higher rates. With the prime rate currently at 4.0%, the majority of the Company's variable rate loans have interest rates at or above any floors. With an additional rate increase, more than 90% of the Company's variable portfolio will bear higher effective rates. Future increases in interest rate levels also could put upward pressure on deposit costs.

The Company's solid asset quality metrics, which have trended within a narrow range over the past several years, remained at historically strong levels during the first quarter of 2017. Non-performing loans (NPLs) totaled $6.1 million or 0.27% of total loans outstanding at March 31, 2017, versus $6.7 million or 0.29% of total loans outstanding at December 31, 2016, and $8.9 million or 0.43% of total loans outstanding at March 31, 2016. Similarly, non-performing assets, which include NPLs along with other real estate owned and repossessed assets (OREO), were $10.1 million or 0.33% of total assets at March 31, 2017, versus $11.7 million or 0.39% of total assets at December 31, 2016, and $14.0 million or 0.49% of total assets at March 31, 2016. Net charge-offs in the first quarter of 2017 totaled $426 thousand versus $862 thousand in the fourth quarter of 2016 and $490 thousand in the first quarter of 2016. Management considers the present asset quality metrics to be remarkable and, recognizing the inevitably cyclic nature of banking, believes they will normalize over the long term.

Reflecting a number of factors, including loan growth and qualitative considerations, the Company recorded a loan loss provision of $900 thousand during the first quarter of 2017 compared with $500 thousand in both the fourth quarter of 2016 and the first quarter of 2016. During its quarterly review of qualitative factors, the Company noted an elevation in potential exposure for one group of classified loans. Due to this increase, the Company raised its qualitative allocation for the allowance for the first quarter of 2017. The Company's allowance for loan losses was 1.08% of total loans as of March 31, 2017, versus 1.04% as of December 31, 2016, and 1.07% at March 31, 2016.

Total non-interest income in the first quarter of 2017 increased $715 thousand or 7% to $10.8 million from $10.1 million in the prior-year quarter. This increase reflected primarily higher fee income from various sources, mainly from wealth management and trust along with increased service charges on deposit accounts, together which were offset by a decline in gains on sales of mortgage loans held for sale. The Company continues to develop revenue from treasury and cash management services to commercial customers. This revenue now represents more than 25% of service charge income and has increased 15% from the first quarter of 2016.

Total non-interest expense for the first quarter of 2017 increased $1.6 million or 8% to $21.1 million from $19.5 million in the prior-year quarter. The increase reflected the addition of personnel associated with growth and operational support, higher sales-through-service incentive awards, increased management incentive compensation related to loan and earnings growth, and health insurance costs under the Company's self-insured plan. Other non-interest expense also increased year over year, due to recoveries of OREO expenses in the prior-year period. Additionally, the amortization of investments in tax-credit partnerships was lower compared with the year-earlier quarter as one tax-advantaged project that was expected to commence in the first quarter of 2017 did not. These investments generate income tax savings that exceed amortization expense. The net effect of amortization of investments in tax-credit partnerships and related income tax savings added approximately $0.01 to the Company's net income per diluted share for both the first quarter of 2017 and the first quarter of 2016.

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.0 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.

 
Reconciliation of Total Stockholders' Equity to Tangible Common Equity Ratio

(Dollars in thousands)

   
  March 31, Dec. 31, March 31,
2017 2016 2016
Total stockholders' equity (a) $ 319,687 $ 313,872 $ 296,323
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,358 )   (1,405 )   (1,549 )
Tangible common equity (c) $ 317,647   $ 311,785   $ 294,092  
Total assets (b) $ 3,033,343 $ 3,039,481 $ 2,824,107
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,358 )   (1,405 )   (1,549 )
Tangible assets (d) $ 3,031,303   $ 3,037,394   $ 2,821,876  
Total stockholders' equity to total assets (a/b) 10.54 % 10.33 % 10.49 %
Tangible common equity ratio (c/d)   10.48 %   10.26 %   10.42 %
 

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 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 Net Interest Margin
 
  March 31,   Dec. 31,   Sept. 30,   June 30,   March 31,
2017 2016 2016 2016 2016
Net interest margin 3.63 % 3.56 % 3.65 % 3.59 % 3.56 %
Prepayment penalties (0.02 ) (0.02 ) (0.07 ) (0.02 ) (0.05 )
Excess liquidity 0.03   0.06   0.01   0.03   0.13  
Core net interest margin 3.64 % 3.60 % 3.59 % 3.60 % 3.64 %
 

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, 2016.

 

Stock Yards Bancorp, Inc. Financial Information (unaudited)

First Quarter 2017 Earnings Release
(In thousands unless otherwise noted)
  Quarter Ended
March 31,
2017   2016
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,382 $ 23,688
Interest income:
Loans $ 24,060 $ 21,993
Federal funds sold 134 189
Mortgage loans held for sale 44 60
Securities   2,395   2,458
Total interest income   26,633   24,700
Interest expense:
Deposits 1,163 996
Federal funds purchased and short-term borrowing 19 15
Securities sold under agreements to repurchase 35 33
Federal Home Loan Bank (FHLB) advances   232   187
Total interest expense   1,449   1,231
Net interest income 25,184 23,469
Provision for loan losses   900   500
Net interest income after provision for loan losses   24,284   22,969
Non-interest income:
Wealth management and trust services 5,094 4,612
Service charges on deposit accounts 2,407 2,146
Bankcard transaction 1,406 1,310
Mortgage banking 702 794
Securities brokerage 539 443
Bank owned life insurance 204 221
Other non-interest income   445   556
Total non-interest income   10,797   10,082
Non-interest expense:
Salaries and employee benefits 13,412 12,195
Net occupancy 1,630 1,524
Data processing 1,868 1,544
Furniture and equipment 277 285
FDIC insurance 230 328
Amortization of investment in tax credit partnerships 616 1,015
Other non-interest expenses   3,115   2,649
Total non-interest expense   21,148   19,540
Net income before income tax expense 13,933 13,511
Income tax expense   3,142   3,676
Net income $ 10,791 $ 9,835
 
Weighted average shares - basic (2) 22,492 22,254
Weighted average shares - diluted 23,002 22,592
 
Net income per share, basic $ 0.48 $ 0.44
Net income per share, diluted 0.47 0.44
Cash dividend declared per share 0.19 0.17
 
Balance Sheet Data (at period end)
Total loans $ 2,272,778 $ 2,094,488
Allowance for loan losses 24,481 22,451
Total assets 3,033,343 2,824,107
Non-interest bearing deposits 686,535 606,375
Interest bearing deposits 1,857,720 1,759,725
Federal Home Loan Bank advances 50,755 43,236
Stockholders' equity 319,687 296,323
Total shares outstanding 22,661 22,478
Book value per share 14.11 13.18
Market value per share 40.65 25.69
 

   
Stock Yards Bancorp, Inc. Financial Information (unaudited)
First Quarter 2017 Earnings Release
 
Quarter Ended
March 31,
2017 2016
Average Balance Sheet Data
Average federal funds sold $ 65,304 $ 143,679
Average mortgage loans held for sale 2,943 4,249
Average securities available for sale 486,209 483,130
Average FHLB stock and other securities 6,347 6,347
Average loans 2,293,542 2,043,450
Average earning assets 2,838,491 2,673,842
Average assets 2,998,950 2,818,072
Average interest bearing deposits 1,846,579 1,778,347
Average total deposits 2,506,880 2,370,819

Average securities sold under agreement to repurchase

68,467 58,871

Average federal funds purchased and other short term borrowings

15,625 23,456
Average Federal Home Loan Bank advances 50,866 43,316
Average interest bearing liabilities 1,981,537 1,903,990
Average stockholders' equity 317,682 292,540
 

Performance Ratios

Annualized return on average assets 1.46 % 1.40 %
Annualized return on average equity 13.78 % 13.52 %
Net interest margin, fully tax equivalent 3.63 % 3.56 %

Non-interest income to total revenue, fully tax equivalent

29.84 % 29.85 %
Efficiency ratio 58.45 % 57.86 %
 
Capital Ratios
Average stockholders' equity to average assets 10.59 % 10.38 %
Common equity tier 1 capital 12.51 % 12.23 %
Tier 1 risk-based capital 12.51 % 12.23 %
Total risk-based capital 13.49 % 13.19 %
Leverage 10.64 % 10.35 %
 
Loans by Type
Commercial and industrial $ 736,633 $ 676,782
Construction and development 187,039 160,667
Real estate mortgage - commercial investment 546,957 452,173
Real estate mortgage - owner occupied commercial 406,209 417,285
Real estate mortgage - 1-4 family residential 244,349 234,199
Home equity - first lien 51,076 52,042
Home equity - junior lien 65,806 63,336
Consumer   34,709     38,004  
Total loans $ 2,272,778   $ 2,094,488  
 
Asset Quality Data
Allowance for loan losses to total loans 1.08 % 1.07 %
Allowance for loan losses to average loans 1.07 % 1.10 %
Allowance for loan losses to non-performing loans 402.18 % 251.75 %
Nonaccrual loans $ 5,099 $ 7,878
Troubled debt restructuring 988 1,040
Loans - 90 days past due & still accruing - -
Total non-performing loans 6,087 8,918
OREO and repossessed assets   3,989     5,049  
Total non-performing assets $ 10,076 $ 13,967
Non-performing loans to total loans 0.27 % 0.43 %
Non-performing assets to total assets 0.33 % 0.49 %
Net charge-offs to average loans (3) 0.02 % 0.02 %
Net charge-offs $ 426 $ 490
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
First Quarter 2017 Earnings Release
         
Five Quarter Comparison
3/31/17 12/31/16 9/30/16 6/30/16 3/31/16
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,382   $ 25,272   $ 24,963   $ 24,165   $ 23,688  
Net interest income $ 25,184 $ 25,075 $ 24,760 $ 23,950 $ 23,469
Provision for loan losses   900     500     1,250     750     500  
Net interest income after provision for loan losses   24,284     24,575     23,510     23,200     22,969  
Wealth management and trust services 5,094 4,936 4,800 4,807 4,612
Service charges on deposit accounts 2,407 2,519 2,544 2,262 2,146
Bankcard transaction 1,406 1,457 1,455 1,433 1,310
Mortgage banking 702 1,001 1,072 1,030 794
Securities brokerage 539 606 558 538 443
Bank owned life insurance 204 214 216 220 221
Other non-interest income   445     586     713     488     556  
Total non-interest income   10,797     11,319     11,358     10,778     10,082  
Salaries and employee benefits 13,412 12,971 12,048 11,971 12,195
Net occupancy 1,630 1,563 1,646 1,546 1,524
Data processing 1,868 1,901 1,747 1,881 1,544
Furniture and equipment 277 290 277 291 285
FDIC Insurance 230 146 356 351 328
Amortization of investment in tax credit partnerships 616 1,412 1,015 1,016 1,015
Other non-interest expenses   3,115     2,986     3,429     3,137     2,649  
Total non-interest expense   21,148     21,269     20,518     20,193     19,540  
Net income before income tax expense 13,933 14,625 14,350 13,785 13,511
Income tax expense   3,142     4,009     3,883     3,676     3,676  
Net income $ 10,791   $ 10,616   $ 10,467   $ 10,109   $ 9,835  
 
Weighted average shares - basic 22,492 22,448 22,385 22,336 22,254
Weighted average shares - diluted 23,002 22,952 22,803 22,704 22,592
 
Net income per share, basic $ 0.48 $ 0.47 $ 0.47 $ 0.45 $ 0.44
Net income per share, diluted 0.47 0.46 0.46 0.45 0.44
Cash dividend declared per share 0.19 0.19 0.18 0.18 0.17
 
Balance Sheet Data (at period end)
Cash and due from banks $ 43,583 $ 39,709 $ 41,533 $ 40,618 $ 35,022
Federal funds sold 45,898 8,264 16,360 9,616 13,016
Mortgage loans held for sale 3,884 3,213 5,959 6,405 3,984
Securities available for sale 556,144 570,074 541,681 567,307 569,012
FHLB stock and other securities 6,347 6,347 6,347 6,347 6,347
Total loans 2,272,778 2,305,375 2,222,706 2,175,551 2,094,488
Allowance for loan losses 24,481 24,007 24,369 23,141 22,451
Total assets 3,033,343 3,039,481 2,938,665 2,909,519 2,824,107
Non-interest bearing deposits 686,535 680,156 680,078 637,812 606,375
Interest bearing deposits 1,857,720 1,840,392 1,710,519 1,712,136 1,759,725
Securities sold under agreements to repurchase 65,701 67,595 67,315 57,437 54,781
Federal funds purchased 10,975 47,374 76,387 114,154 30,083
Federal Home Loan Bank advances 50,755 51,075 51,366 43,002 43,236
Stockholders' equity 319,687 313,872 311,570 305,051 296,323
Total shares outstanding 22,661 22,617 22,563 22,510 22,478
Book value per share 14.11 13.88 13.81 13.55 13.18
Market value per share 40.65 46.95 32.96 28.23 25.69
 
Capital Ratios
Average stockholders' equity to average assets 10.59 % 10.54 % 10.72 % 10.51 % 10.38 %
Common equity tier 1 capital 12.51 % 12.10 % 12.07 % 12.06 % 12.23 %
Tier 1 risk-based capital 12.51 % 12.10 % 12.07 % 12.06 % 12.23 %
Total risk-based capital 13.49 % 13.04 % 13.05 % 13.01 % 13.19 %
Leverage 10.64 % 10.54 % 10.63 % 10.46 % 10.35 %
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
First Quarter 2017 Earnings Release
         
Five Quarter Comparison
3/31/17 12/31/16 9/30/16 6/30/16 3/31/16
Average Balance Sheet Data
Average federal funds sold $ 65,304 $ 70,186 $ 72,673 $ 85,914 $ 143,679
Average mortgage loans held for sale 2,943 4,770 5,070 5,432 4,249
Average investment securities 486,209 494,868 466,462 475,275 483,130
Average loans 2,293,542 2,261,104 2,188,089 2,142,530 2,043,450
Average earning assets 2,838,491 2,821,373 2,722,324 2,705,358 2,673,842
Average assets 2,998,950 2,984,696 2,883,146 2,858,624 2,818,072
Average interest bearing deposits 1,846,579 1,802,150 1,738,315 1,736,478 1,778,347
Average total deposits 2,506,880 2,488,590 2,395,003 2,400,547 2,370,819

Average securities sold under agreement to repurchase

68,467 69,318 68,835 53,514 58,871

Average federal funds purchased and other short term borrowings

15,625 18,076 23,471 28,152 23,456
Average Federal Home Loan Bank advances 50,866 51,183 44,194 43,081 43,316
Average interest bearing liabilities 1,981,537 1,940,727 1,874,815 1,861,225 1,903,990
Average stockholders' equity 317,682 314,299 309,045 300,553 292,540
 
Performance Ratios
Annualized return on average assets 1.46 % 1.41 % 1.44 % 1.42 % 1.40 %
Annualized return on average equity 13.78 % 13.44 % 13.47 % 13.53 % 13.52 %
Net interest margin, fully tax equivalent 3.63 % 3.56 % 3.65 % 3.59 % 3.56 %

Non-interest income to total revenue, fully tax equivalent

29.84 % 30.93 % 31.27 % 30.84 % 29.85 %
Efficiency ratio 58.45 % 58.13 % 56.49 % 57.79 % 57.86 %
 
Loans by Type
Commercial and industrial $ 736,633 $ 736,841 $ 708,508 $ 721,956 $ 676,782
Construction and development 187,039 213,844 191,987 156,371 160,667
Real estate mortgage - commercial investment 546,957 538,886 510,128 488,187 452,173
Real estate mortgage - owner occupied commercial 406,209 408,292 412,733 418,113 417,285
Real estate mortgage - 1-4 family residential 244,349 249,498 245,229 240,770 234,199
Home equity - 1st lien 51,076 55,325 54,837 52,360 52,042
Home equity - junior lien 65,806 67,519 65,605 65,999 63,336
Consumer   34,709     35,170     33,679     31,795     38,004  
Total loans $ 2,272,778   $ 2,305,375   $ 2,222,706   $ 2,175,551   $ 2,094,488  
 
Asset Quality Data
Allowance for loan losses to total loans 1.08 % 1.04 % 1.10 % 1.06 % 1.07 %
Allowance for loan losses to average loans 1.07 % 1.06 % 1.11 % 1.08 % 1.10 %
Allowance for loan losses to non-performing loans 402.18 % 357.94 % 305.84 % 361.58 % 251.75 %
Nonaccrual loans $ 5,099 $ 5,295 $ 6,889 $ 4,970 $ 7,878
Troubled debt restructuring 988 974 999 1,020 1,040
Loans - 90 days past due & still accruing - 438 80 410 -
Total non-performing loans 6,087 6,707 7,968 6,400 8,918
OREO and repossessed assets   3,989     5,033     5,042     5,093     5,049  
Total non-performing assets $ 10,076 $ 11,740 $ 13,010 $ 11,493 $ 13,967
Non-performing loans to total loans 0.27 % 0.29 % 0.36 % 0.29 % 0.43 %
Non-performing assets to total assets 0.33 % 0.39 % 0.44 % 0.40 % 0.49 %
Net charge-offs to average loans 0.02 % 0.04 % 0.00 % 0.00 % 0.02 %
Net charge-offs (recoveries) $ 426 $ 862 $ 22 $ 60 $ 490
 
Other Information
Total assets under management (in millions) $ 2,615 $ 2,523 $ 2,413 $ 2,342 $ 2,255
Full-time equivalent employees 582 578 558 549 550
 
(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 has been adjusted for 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

Contacts

Stock Yards Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President and Chief Financial Officer