Stock Yards Bancorp's Second Quarter 2017 Net Income Increases 5% to $10.6 Million

Diluted Earnings Per Share Increases 2% to $0.46

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 second quarter ended June 30, 2017, with net income increasing 5% to $10.6 million or $0.46 per diluted share from $10.1 million or $0.45 per diluted share for the second quarter of 2016. Net income for the six months ended June 30, 2017, increased 7% to $21.4 million or $0.92 per diluted share from $19.9 million or $0.88 per diluted share.

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

  • The continued positive effect of solid loan growth over the past 12 months, which has increased the Company's loan portfolio more than 6% 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:

 

         

Three Months Ended June 30,

   

Six Months Ended June 30,

 

 

2017

       

2016

     

Change

 

2017

       

2016

     

Change

Net income $ 10,602,000 $ 10,109,000 5 % $ 21,393,000 $ 19,944,000 7 %
Net income per share, diluted $ 0.46 $ 0.45 2 % $ 0.92 $ 0.88 5 %
Return on average equity 13.12 % 13.53 % 13.45 % 13.52 %
Return on average assets 1.42 % 1.42 % 1.44 % 1.41 %

"We are pleased to report another solid performance by the Company for the second quarter, highlighted by growth in our loan portfolio, the continuation of solid credit quality metrics, and ongoing market penetration by wealth management and trust," said David P. Heintzman, Chairman and Chief Executive Officer. "While we are gratified to see a continued strengthening in our business generally and a rebound in our loan portfolio compared with a first quarter decline, we had anticipated even greater loan growth in the first half based on the strength of our loan pipeline and the high loan production levels we have sustained. Additionally, the expected benefit of a March prime rate increase was countered by higher deposit rates on certain accounts and the effects of liquidity and a flattening of the yield curve during the second quarter, which pressured net interest margin for the period. Still, we remain confident in the long-term growth prospects ahead for the Company and continue to expect an improved performance in the second half of the year."

The pace of loan production remained strong in the second quarter, tracking the Company's three-year average, Heintzman said. Each market contributed to Stock Yards Bancorp's increasing pipeline, but particularly the Company's largest market – Louisville. Loan production in the Company's core lines of business – notably commercial and industrial – continues to grow steadily and recent prime rate increases have not affected loan demand. However, several factors have restrained the more robust loan growth the Company expected for the second quarter, including significant loan principal repayments primarily related to commercial construction projects, where maturing loans were not replaced with permanent financing, and from commercial real estate borrowers who sold collateral or their business. These transitions did not result in a loss of customers, since they normally have other significant relationships with the Bank, but these events nonetheless temporarily subdue net loan growth. Also, business owners seem to be taking a more cautious stance given mounting uncertainty around important legislation and changes to the regulatory environment now under consideration in Washington and how the resulting changes might affect the overall direction of the economy. Despite these headwinds, and considering the strength of the Company's loan pipeline, management anticipates increasing momentum in net loan growth during the second half of the year, resulting in an overall mid-single digit percentage increase in the loan portfolio for the year.

Heintzman also noted that the Company's fee-based income continued to make a significant contribution to the Company's results for the second quarter. For the quarter, fee-based income increased to 31.5% of total revenue from 29.8% in the first quarter of 2017 and 30.8% in the year-earlier quarter. Again, wealth management and trust, accounting for nearly half of the Company's fee-based income, contributed most significantly to the increase in fee income for the quarter versus the year-earlier quarter. With approximately $2.64 billion of assets under management, its growth reflected primarily the addition of new customer relationships along with stock market gains during the quarter.

"Looking ahead to the second half of 2017, we are excited about the opportunities we see before us," Heintzman said in concluding. "We remain confident in our ability to again deliver a solid performance for the year, chiefly due to the attractive loan pipeline we have in place, our continued strength in key lending sectors that are vital to the Louisville economy, and the city's growing prominence among national developers that increasingly consider our area for new projects. Anticipated and ongoing growth of fee income also factors into our outlook, especially with respect to wealth management and trust, which diversifies our sources of income and differentiates Stock Yards Bank and Trust from most other community banks. While net interest margin may remain pressured going forward, we believe the Company's strategic positioning across its markets will allow Stock Yards Bank & Trust to maintain its position as one of the nation's high-performing community banks."

Total assets increased $217 million or 7% at June 30, 2017, to $3.13 billion from $2.91 billion at June 30, 2016. Ongoing growth in the Company's loan portfolio primarily accounted for this increase, as the portfolio rose $134 million or 6% to $2.31 billion at June 30, 2017, from $2.18 billion at June 30, 2016. Increasing deposit balances continue to provide substantial support for the Company's balance sheet growth; total deposits advanced $129 million or 5% to $2.48 billion at June 30, 2017, from $2.35 billion at June 30, 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 99% of total deposits as of June 30, 2017.

Stock Yards Bancorp remained "well capitalized" in the second quarter of 2017– the highest capital rating for financial institutions. The Company's tangible common equity ratio as of June 30, 2017, was 10.38% (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 this capital strength, Stock Yards Bancorp continues to pursue strategies to enhance stockholder value, including a substantial and sustained dividend payout ratio. In May 2017, Stock Yards Bancorp's Board of Directors reinforced the Company's interest in growing stockholder value by increasing the quarterly cash dividend 5% to $0.20 per common share. Since the beginning of 2012, the Company has raised its quarterly dividend rate a total of 10 times, including two increases in each of the past three years, resulting in a cumulative increase of 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 appreciate this capital strength for the stability and potential for expansion it provides and, at the same time, welcome the consistently strong returns the Company produces.

Net interest income – the Company's largest source of revenue – increased approximately $1.3 million or 5% to $25.2 million in the second quarter of 2017 from $24.0 million in the prior-year quarter. The increase reflected ongoing growth in the Company's loan portfolio and higher interest rates on earning assets, net of the impact of a recent rise in funding costs, primarily in the form of higher deposit rates. Net interest income increased $3.0 million or 6% to $50.4 million in the first half of 2017 from $47.4 million in the prior-year period.

On a sequential-quarter basis, net interest income increased $73 thousand from the first quarter of 2017, while net interest margin (on a fully tax-equivalent basis) was 3.60% compared with 3.63% in the first quarter of 2017 and 3.59% in the second quarter of 2016. Despite the Federal Open Market Committee's action to raise the federal funds target rate in March, which increased the prime lending rate to 4%, the Company acted proactively to pass on a significant portion of the resulting increase in interest income to retail deposit customers in the form of higher savings and money market rates. These account holders have not seen an increase in their rates in nearly 10 years. 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 3.62% for the second quarter of 2017, down two basis points from the first quarter of 2017 and up two basis points versus the second quarter of 2016. The primary reasons for the pressure on net interest margin was an unexpected flattening of the yield curve over the past several months and heightened competition on pricing. Excess liquidity also continues to affect net interest margin; however, those deposit relationships remain profitable.

The 25 basis point rate hike approved on June 15 occurred too late to benefit second quarter net interest margin. Increasing the prime rate to 4.25%, it did allow virtually all of the variable rate loans in the Company's portfolio to break through any remaining rate floors. Accordingly, these loans will enhance net interest margin going forward, to the extent not offset generally by the current flat yield curve. Approximately 61% of the Company's loans are priced at fixed rates, so recent and 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. Future increases in interest rate levels also could put additional 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 for the second quarter of 2017. Non-performing loans (NPLs) totaled $6.1 million or 0.26% of total loans outstanding at June 30, 2017, versus $6.1 million or 0.27% of total loans outstanding at March 31, 2017, and $6.4 million or 0.29% of total loans outstanding at June 30, 2016. Similarly, non-performing assets, which include NPLs along with other real estate owned and repossessed assets (OREO), were $9.3 million or 0.30% of total assets at June 30, 2017, down from $10.1 million or 0.33% of total assets at March 31, 2017, and $11.5 million or 0.40% of total assets at June 30, 2016. A net recovery of charge-offs in the second quarter of 2017 totaled $34 thousand versus net charge-offs of $426 thousand in the first quarter of 2017 and $60 thousand in the second quarter of 2016. While the Company is very pleased with these strong asset quality metrics, management recognizes the cyclic nature of banking and believes these metrics 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 $600 thousand during the second quarter of 2017 compared with $900 thousand in the first quarter of 2017 and $750 thousand in the second quarter of 2016. The provision for the second quarter of 2017 took into account both the generally favorable trend in most asset quality statistics, offset somewhat by a slight increase in the level of classified loans and a potential exposure for one group of classified loans noted during the Company's quarterly review. As a result, the Company's allowance for loan losses remained adequate in management's view at 1.09% of total loans as of June 30, 2017, versus 1.08% at March 31, 2017, and 1.06% at June 30, 2016.

Total non-interest income in the second quarter of 2017 increased $897 thousand or 8% to $11.7 million from $10.8 million in the prior-year quarter. This increase reflected primarily higher income from various sources, including wealth management and trust, bank-owned life insurance, which included a death benefit of $348 thousand, and increased service charges related to both deposit accounts and treasury and cash management services. These increases were offset partially by a decline in gains on sales of mortgage loans held for sale as the market for home refinancing continues to slow and the inventory of homes for sale tightens. Total non-interest income for the six months ended June 30, 2017, increased $1.6 million or 8% to $22.5 million from $20.9 million in the prior-year period, reflecting trends similar to those noted for the second quarter.

Total non-interest expense for the second quarter of 2017 increased approximately $1.2 million or 6% to $21.3 million from $20.2 million in the prior-year quarter. The increase primarily reflected the impact of personnel added to support growth and operations and, to a lesser extent, health insurance costs under the Company's self-insured plan. Additionally, the amortization of investments in tax-credit partnerships was lower compared with the year-earlier quarter; the timing of these investments can cause the expense and corresponding tax benefits to vary widely. For the six months ended June 30, 2017, total non-interest expense increased $2.8 million or 7% to $42.5 million from $39.7 million for the same period last year, largely reflecting the same trends noted for the quarter.

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.1 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,
2017

March 31,
2017

June 30,
2016

Total stockholders' equity (a) $ 326,500 $ 319,687 $ 305,051
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,313 )   (1,358 )   (1,500 )
Tangible common equity (c) $ 324,505   $ 317,647   $ 302,869  
 
Total assets (b) $ 3,126,762 $ 3,033,343 $ 2,909,519
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,313 )   (1,358 )   (1,500 )
Tangible assets (d) $ 3,124,767   $ 3,031,303   $ 2,907,337  
 
Total stockholders' equity to total assets (a/b) 10.44 % 10.54 % 10.48 %
Tangible common equity ratio (c/d)   10.38 %   10.48 %   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 effects of prepayment penalty income from borrowers and 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,
2017

 

March 31,
2017

 

Dec. 31,
2016

 

Sept. 30,
2016

 

June 30,
2016

Net interest margin 3.60 % 3.63 % 3.56 % 3.65 % 3.59 %
Prepayment penalties / late charges (0.03 ) (0.02 ) (0.02 ) (0.07 ) (0.02 )
Excess liquidity 0.05   0.03   0.06   0.01   0.03  
Core net interest margin 3.62 % 3.64 % 3.60 % 3.59 % 3.60 %
 

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)
Second Quarter 2017 Earnings Release
(In thousands unless otherwise noted)
     
Three Months Ended Six Months Ended
June 30, June 30,
  2017     2016   2017     2016
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,434 $ 24,165 $ 50,816 $ 47,853
Interest income:
Loans $ 24,351 $ 22,563 $ 48,411 $ 44,556
Federal funds sold 276 111 410 300
Mortgage loans held for sale 53 59 97 119
Securities   2,333   2,429   4,728   4,887
Total interest income   27,013   25,162   53,646   49,862
Interest expense:
Deposits 1,481 979 2,644 1,975
Federal funds purchased and short-term borrowings 29 23 48 38
Securities sold under agreements to repurchase 32 29 67 62
Federal Home Loan Bank (FHLB) advances   239   181   471   368
Total interest expense   1,781   1,212   3,230   2,443
Net interest income 25,232 23,950 50,416 47,419
Provision for loan losses   600   750   1,500   1,250
Net interest income after provision for loan losses   24,632   23,200   48,916   46,169
Non-interest income:
Wealth management and trust services 5,153 4,807 10,247 9,419
Service charges on deposit accounts 2,439 2,262 4,846 4,408
Bankcard transaction 1,514 1,433 2,920 2,743
Mortgage banking 897 1,030 1,599 1,824
Securities brokerage 494 538 1,033 981
Bank owned life insurance 556 220 760 441
Other non-interest income   622   488   1,067   1,044
Total non-interest income   11,675   10,778   22,472   20,860
Non-interest expense:
Salaries and employee benefits 12,849 11,971 26,261 24,166
Net occupancy 1,514 1,546 3,144 3,070
Data processing 2,121 1,881 3,989 3,425
Furniture and equipment 268 291 545 576
FDIC insurance 244 351 474 679
Amortization of investment in tax credit partnerships 615 1,016 1,231 2,031
Other non-interest expenses   3,735   3,137   6,850   5,786
Total non-interest expense   21,346   20,193   42,494   39,733
Net income before income tax expense 14,961 13,785 28,894 27,296
Income tax expense   4,359   3,676   7,501   7,352
Net income $ 10,602 $ 10,109 $ 21,393 $ 19,944
 
Weighted average shares - basic 22,783 22,336 22,788 22,295
Weighted average shares - diluted 23,241 22,704 23,271 22,658
 
Net income per share, basic $ 0.47 $ 0.45 $ 0.94 $ 0.89
Net income per share, diluted 0.46 0.45 0.92 0.88
Cash dividend declared per share 0.20 0.18 0.39 0.35
 
Balance Sheet Data (at period end)
Total loans $ 2,309,668 $ 2,175,551
Allowance for loan losses 25,115 23,141
Total assets 3,126,762 2,909,519
Non-interest bearing deposits 696,085 637,812
Interest bearing deposits 1,782,461 1,712,136
Federal Home Loan Bank advances 50,433 43,002
Stockholders' equity 326,500 305,051
Total shares outstanding 22,662 22,510
Book value per share 14.41 13.55
Market value per share 38.90 28.23
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2017 Earnings Release
           
Three Months Ended Six Months Ended
June 30, June 30,
  2017     2016     2017     2016  
Average Balance Sheet Data
Average federal funds sold $ 105,786 $ 85,914 $ 85,657 $ 114,797
Average mortgage loans held for sale 4,505 5,432 3,729 4,840
Average securities available for sale 454,834 475,275 470,435 479,203
Average FHLB stock and other securities 6,376 6,347 6,361 6,347
Average loans 2,280,122 2,142,530 2,286,795 2,092,990
Average earning assets 2,830,211 2,705,358 2,834,328 2,689,600
Average assets 2,994,209 2,858,624 2,996,567 2,838,345
Average interest bearing deposits 1,812,290 1,736,478 1,829,339 1,757,413
Average total deposits 2,496,256 2,400,547 2,501,538 2,385,682
Average securities sold under agreement
to repurchase 60,336 53,514 64,379 56,193
Average federal funds purchased and
other short term borrowings 18,451 28,152 17,046 25,804
Average Federal Home Loan Bank advances 50,543 43,081 50,704 43,198
Average interest bearing liabilities 1,941,620 1,861,225 1,961,468 1,882,608
Average stockholders' equity 324,014 300,553 320,866 296,547
 
Performance Ratios
Annualized return on average assets 1.42 % 1.42 % 1.44 % 1.41 %
Annualized return on average equity 13.12 % 13.53 % 13.45 % 13.52 %
Net interest margin, fully tax equivalent 3.60 % 3.59 % 3.62 % 3.58 %

Non-interest income to total revenue, fully tax equivalent

31.46 % 30.84 % 30.66 % 30.36 %
Efficiency ratio (2) 57.52 % 57.79 % 57.98 % 57.82 %
 
Capital Ratios
Average stockholders' equity to average assets 10.82 % 10.51 % 10.71 % 10.45 %
Common equity tier 1 capital 12.51 % 12.06 %
Tier 1 risk-based capital 12.51 % 12.06 %
Total risk-based capital 13.49 % 13.01 %
Leverage 10.88 % 10.46 %
 
Loans by Type
Commercial and industrial $ 749,036 $ 721,956
Construction and development 196,619 156,371
Real estate mortgage - commercial investment 547,196 488,187
Real estate mortgage - owner occupied commercial 408,558 418,113
Real estate mortgage - 1-4 family residential 255,939 240,770
Home equity - first lien 52,560 52,360
Home equity - junior lien 65,344 65,999
Consumer   34,416     31,795  
Total loans $ 2,309,668   $ 2,175,551  
 
Asset Quality Data
Allowance for loan losses to total loans 1.09 % 1.06 %
Allowance for loan losses to average loans 1.10 % 1.11 %
Allowance for loan losses to non-performing loans 411.25 % 361.58 %
Nonaccrual loans $ 4,913 $ 4,970
Troubled debt restructuring 963 1,020
Loans - 90 days past due & still accruing 231 410
Total non-performing loans 6,107 6,400
OREO and repossessed assets   3,185     5,093  
Total non-performing assets $ 9,292 $ 11,493
Non-performing loans to total loans 0.26 % 0.29 %
Non-performing assets to total assets 0.30 % 0.40 %
Net charge-offs to average loans (3) 0.00 % 0.00 % 0.02 % 0.03 %
Net charge-offs $ (34 ) $ 60 $ 392 $ 550
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2017 Earnings Release
                   
Five Quarter Comparison
  6/30/17     3/31/17     12/31/16     9/30/16     6/30/16  
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,434   $ 25,382   $ 25,272   $ 24,963   $ 24,165  
Net interest income $ 25,232 $ 25,184 $ 25,075 $ 24,760 $ 23,950
Provision for loan losses   600     900     500     1,250     750  
Net interest income after provision for loan losses   24,632     24,284     24,575     23,510     23,200  
Wealth management and trust services 5,153 5,094 4,936 4,800 4,807
Service charges on deposit accounts 2,439 2,407 2,519 2,544 2,262
Bankcard transaction 1,514 1,406 1,457 1,455 1,433
Mortgage banking 897 702 1,001 1,072 1,030
Securities brokerage 494 539 606 558 538
Bank owned life insurance 556 204 214 216 220
Other non-interest income   622     445     586     713     488  
Total non-interest income   11,675     10,797     11,319     11,358     10,778  
Salaries and employee benefits 12,849 13,412 12,971 12,048 11,971
Net occupancy 1,514 1,630 1,563 1,646 1,546
Data processing 2,121 1,868 1,901 1,747 1,881
Furniture and equipment 268 277 290 277 291
FDIC Insurance 244 230 146 356 351
Amortization of investment in tax credit partnerships 615 616 1,412 1,015 1,016
Other non-interest expenses   3,735     3,115     2,986     3,429     3,137  
Total non-interest expense   21,346     21,148     21,269     20,518     20,193  
Net income before income tax expense 14,961 13,933 14,625 14,350 13,785
Income tax expense   4,359     3,142     4,009     3,883     3,676  
Net income $ 10,602   $ 10,791   $ 10,616   $ 10,467   $ 10,109  
 
Weighted average shares - basic 22,783 22,492 22,448 22,385 22,336
Weighted average shares - diluted 23,241 23,002 22,952 22,803 22,704
 
Net income per share, basic $ 0.47 $ 0.48 $ 0.47 $ 0.47 $ 0.45
Net income per share, diluted 0.46 0.47 0.46 0.46 0.45
Cash dividend declared per share 0.20 0.19 0.19 0.18 0.18
 
Balance Sheet Data (at period end)
Cash and due from banks $ 44,902 $ 43,583 $ 39,709 $ 41,533 $ 40,618
Federal funds sold 80,223 45,898 8,264 16,360 9,616
Mortgage loans held for sale 3,055 3,884 3,213 5,959 6,405
Securities available for sale 576,291 556,144 570,074 541,681 567,307
FHLB stock and other securities 7,666 6,347 6,347 6,347 6,347
Total loans 2,309,668 2,272,778 2,305,375 2,222,706 2,175,551
Allowance for loan losses 25,115 24,481 24,007 24,369 23,141
Total assets 3,126,762 3,033,343 3,039,481 2,938,665 2,909,519
Non-interest bearing deposits 696,085 686,535 680,156 680,078 637,812
Interest bearing deposits 1,782,461 1,857,720 1,840,392 1,710,519 1,712,136
Securities sold under agreements to repurchase 65,024 65,701 67,595 67,315 57,437
Federal funds purchased and other short-term borrowings 161,463 10,975 47,374 76,387 114,154
Federal Home Loan Bank advances 50,433 50,755 51,075 51,366 43,002
Stockholders' equity 326,500 319,687 313,872 311,570 305,051
Total shares outstanding 22,662 22,661 22,617 22,563 22,510
Book value per share 14.41 14.11 13.88 13.81 13.55
Market value per share 38.90 40.65 46.95 32.96 28.23
 
Capital Ratios
Average stockholders' equity to average assets 10.82 % 10.59 % 10.54 % 10.72 % 10.51 %
Common equity tier 1 capital 12.51 % 12.51 % 12.10 % 12.07 % 12.06 %
Tier 1 risk-based capital 12.51 % 12.51 % 12.10 % 12.07 % 12.06 %
Total risk-based capital 13.49 % 13.49 % 13.04 % 13.05 % 13.01 %
Leverage 10.88 % 10.64 % 10.54 % 10.63 % 10.46 %
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2017 Earnings Release
           
Five Quarter Comparison
  6/30/17     3/31/17     12/31/16     9/30/16     6/30/16  
Average Balance Sheet Data
Average federal funds sold $ 105,786 $ 65,304 $ 70,186 $ 72,673 $ 85,914
Average mortgage loans held for sale 4,505 2,943 4,770 5,070 5,432
Average investment securities 454,834 486,209 494,868 466,462 475,275
Average loans 2,280,122 2,293,542 2,261,104 2,188,089 2,142,530
Average earning assets 2,830,211 2,838,491 2,821,373 2,722,324 2,705,358
Average assets 2,994,209 2,998,950 2,984,696 2,883,146 2,858,624
Average interest bearing deposits 1,812,290 1,846,579 1,802,150 1,738,315 1,736,478
Average total deposits 2,496,256 2,506,880 2,488,590 2,395,003 2,400,547

Average securities sold under agreement to repurchase

60,336 68,467 69,318 68,835 53,514

Average federal funds purchased and other short term borrowings

18,451 15,625 18,076 23,471 28,152
Average Federal Home Loan Bank advances 50,543 50,866 51,183 44,194 43,081
Average interest bearing liabilities 1,941,620 1,981,537 1,940,727 1,874,815 1,861,225
Average stockholders' equity 324,014 317,682 314,299 309,045 300,553
 
Performance Ratios
Annualized return on average assets 1.42 % 1.46 % 1.41 % 1.44 % 1.42 %
Annualized return on average equity 13.12 % 13.78 % 13.44 % 13.47 % 13.53 %
Net interest margin, fully tax equivalent 3.60 % 3.63 % 3.56 % 3.65 % 3.59 %

Non-interest income to total revenue, fully tax equivalent

31.46 % 29.84 % 30.93 % 31.27 % 30.84 %
Efficiency ratio (2) 57.52 % 58.45 % 58.13 % 56.49 % 57.79 %
 
Loans by Type
Commercial and industrial $ 749,036 $ 736,633 $ 736,841 $ 708,508 $ 721,956
Construction and development 196,619 187,039 213,844 191,987 156,371
Real estate mortgage - commercial investment 547,196 546,957 538,886 510,128 488,187
Real estate mortgage - owner occupied commercial 408,558 406,209 408,292 412,733 418,113
Real estate mortgage - 1-4 family residential 255,939 244,349 249,498 245,229 240,770
Home equity - 1st lien 52,560 51,076 55,325 54,837 52,360
Home equity - junior lien 65,344 65,806 67,519 65,605 65,999
Consumer   34,416     34,709     35,170     33,679     31,795  
Total loans $ 2,309,668   $ 2,272,778   $ 2,305,375   $ 2,222,706   $ 2,175,551  
 
Asset Quality Data
Allowance for loan losses to total loans 1.09 % 1.08 % 1.04 % 1.10 % 1.06 %
Allowance for loan losses to average loans 1.10 % 1.07 % 1.06 % 1.11 % 1.08 %
Allowance for loan losses to non-performing loans 411.25 % 402.18 % 357.94 % 305.84 % 361.58 %
Nonaccrual loans $ 4,913 $ 5,099 $ 5,295 $ 6,889 $ 4,970
Troubled debt restructuring 963 988 974 999 1,020
Loans - 90 days past due & still accruing 231 - 438 80 410
Total non-performing loans 6,107 6,087 6,707 7,968 6,400
OREO and repossessed assets   3,185     3,989     5,033     5,042     5,093  
Total non-performing assets $ 9,292 $ 10,076 $ 11,740 $ 13,010 $ 11,493
Non-performing loans to total loans 0.26 % 0.27 % 0.29 % 0.36 % 0.29 %
Non-performing assets to total assets 0.30 % 0.33 % 0.39 % 0.44 % 0.40 %
Net charge-offs to average loans 0.00 % 0.02 % 0.04 % 0.00 % 0.00 %
Net charge-offs (recoveries) $ (34 ) $ 426 $ 862 $ 22 $ 60
 
Other Information
Total assets under management (in millions) $ 2,643 $ 2,615 $ 2,523 $ 2,413 $ 2,342
Full-time equivalent employees 585 582 578 558 549
 
(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) - Efficiency ratio represents non-interest expense divided by the sum of net interest income, fully tax equivalent, and non-interest income.
(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