Stock Yards Bancorp Reports Record Second Quarter 2018 Earnings of $13.6 Million or $0.59 Per Diluted Share

Strong Growth in Interest Income Continues, Reflecting Ongoing Momentum in Loan Growth

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 and six months ended June 30, 2018. Total revenue, comprising net interest income and non-interest income, was $40.1 million for the second quarter of 2018 compared with $38.2 million for the first quarter of 2018 and $36.8 million for the second quarter of 2017. Net income for the second quarter of 2018 totaled $13.6 million or $0.59 per diluted share compared with $13.4 million or $0.58 per diluted share for the first quarter of 2018 and $10.6 million or $0.46 per diluted share for the second quarter of 2017.

 
(dollar amounts in thousands, except per share data)         2Q18     1Q18     2Q17
Net interest income $ 28,674 $ 27,309 $ 25,245
Provision for loan losses 1,235 735 600
Non-interest income 11,435 10,909 11,525
Non-interest expense   22,136     21,027     21,209  
Net income before income taxes 16,738 16,456 14,961
Income tax expense   3,159     3,052     4,359  
Net income $ 13,579   $ 13,404   $ 10,602  
Net income per share, diluted $ 0.59 $ 0.58 $ 0.46
Net interest margin 3.88 % 3.79 % 3.60 %
Efficiency ratio 55.07 % 54.89 % 57.37 %
Common equity Tier 1 capital ratio 12.18 % 12.16 % 12.51 %
Annualized return on average equity 15.94 % 16.15 % 13.12 %
Annualized return on average assets 1.74 % 1.76 % 1.42 %
 

Key highlights of the Company's performance for the second quarter of 2018 included:

  • Ongoing and exceptional loan growth, which increased the Company's loan portfolio 3% on a sequential-quarter basis and 12% year over year;
  • A higher net interest margin, reflecting both increased volume and rate;
  • A continuation of historically strong credit quality metrics;
  • Another solid performance by the Wealth Management and Trust Group; and
  • The benefit of a lower marginal tax rate.

"Our results for the period – the second consecutive quarter of record growth – clearly show the strong earnings power of the Company and the potential for attractive and predictable income expansion in the future," said David P. Heintzman, Chairman and Chief Executive Officer. "The key levers driving earnings continue to be remarkable loan growth together with historically strong credit quality, an improving net interest margin and solid revenue contributions from our fee-based services. Importantly, our results underscore our strategies for steady, organic growth over the long term – building our business one relationship at a time – a way of doing business that continues to distinguish Stock Yards Bancorp from the competition and differentiate our company's performance from peer community banks."

Commenting on loan growth, Ja Hillebrand, President, said, "We were very pleased to see the momentum that has characterized our lending activities over the past several years extend into the second quarter of 2018. With this continued progress, both loan production and loan growth reached a record level for the first half of the year, significantly outpacing the previous high point set two years ago. In turn, this growth, along with the impact of higher interest rates, provided a significant stimulus to interest income, which increased $5.0 million or 18% compared with the second quarter of 2017.

"As has been the case for some time, our growth reflects ongoing success in core loan categories, particularly commercial real estate and commercial and industrial loans," Hillebrand continued. "Notably, all three of our markets have participated in our overall growth, and while Louisville remains the largest of these, we are especially pleased with the accelerating performance of our Indianapolis market. As we look toward the second half of the year, and knowing that the late summer months are a seasonally slower period for us, we continue to believe that our current loan pipeline positions us to grow our total loan portfolio for the year in the range of mid- to high-single digits, unchanged from the outlook we expressed last quarter."

As previously announced, Hillebrand will assume the responsibilities of Chief Executive Officer of the Company and the Bank, effective October 1, 2018, succeeding Heintzman as he moves into the role of Executive Chairman of the Board.

Non-interest income remained strong in the second quarter, representing 29% of total revenue, adding diverse revenue streams to augment net interest income and helping provide a platform for attractive and predictable long-term growth. The Wealth Management and Trust Group, with $2.9 billion of assets under management, remained the dominant source of fee income, contributing 47% of total non-interest income in the second quarter. Wealth management and trust continues to benefit from the addition of new customer relationships as well as the strong performance of the stock market. Wealth management and trust expects revenue for the full year to increase in the range of 4%-6%. On the other hand, a general slowdown in mortgage banking continues to weigh on its revenue, as rates have risen and housing inventory remained tight.

The Company noted that second quarter results also benefited from recent tax reform. With the implementation of the Tax Cuts and Jobs Act of 2017, the Company's effective tax rate decreased to 18.9% from 29.1% in the second quarter of 2017.

Concluding, Heintzman said, "We are pleased with the Company's noteworthy progress and financial results through the first half, which not only continue a solid trend, but also position us to achieve another great year. This progress reflects strong underpinnings, like organic loan growth, improved margins, diversified revenue sources, and exceptional credit quality, all occurring across three vibrant markets – each where we have significant opportunities for ongoing expansion. As I look toward my retirement at the end of 2018, I am grateful for what we, as a company, have accomplished, including the creation of a strong and service-oriented culture and the internal development of talent within our organization, as we have nurtured the legacy passed down to me 14 years ago. These foundational traits allow us to approach with great confidence the transition in leadership to Ja and his team on October 1, 2018. We believe that Stock Yards Bancorp is well positioned to reach new heights, and we are confident in Ja's abilities to build on our long and distinguished heritage."

Second Quarter 2018 Compared with Second Quarter 2017

Total assets increased $197 million or 6% to $3.32 billion.

  • This primarily reflected ongoing growth in the Company's loan portfolio, which rose $268.3 million or 12%.

Total deposits increased $62 million or 2% to $2.54 billion.

  • This reflected an increase in all deposit categories except money market deposits.
  • Core deposits, which exclude brokered deposits and time deposits greater than $250,000, were 98% of total deposits.

Asset quality, which has trended within a narrow range over the past several years, remained at historically strong levels.

  • Non-performing loans (NPLs) were $7.4 million or 0.29% of total loans outstanding versus $6.1 million or 0.26% of total loans outstanding.
  • Non-performing assets (NPAs), which include NPLs along with other real estate owned (OREO) and repossessed assets, were $7.7 million or 0.23% of total assets versus $9.3 million or 0.30% of total assets.
  • Net charge-offs remained at a reasonably low level relative to average loans outstanding.
  • Reflecting many factors, including growth in the loan portfolio and qualitative considerations, the loan loss provision increased $635 thousand.
  • The allowance for loan losses relative to total loans decreased 13 basis points to 0.96%.

The Company remained "well capitalized" – the highest capital rating for financial institutions.

  • Total equity to assets was 10.40% and tangible common equity ratio was 10.35% (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).
  • Even with its strong capital position, the Company still produces industry-leading returns on equity due to its superior earnings performance.
  • Stock Yards Bancorp continues to pursue strategies to enhance stockholder value, including a substantial and sustained dividend payout ratio. In May 2018, Stock Yards Bancorp's Board of Directors maintained its quarterly cash dividend at $0.23 per common share.

Net interest income – the Company's largest source of revenue – increased approximately $3.4 million or 14% to $28.7 million.

  • Interest income rose $5.0 million or 18%. Much of this increase reflected higher volume driven by strong momentum in loan growth, and the remainder was due to higher rates on interest-earning assets.
  • As expected, interest expense remained under rate pressure due to rising deposit costs, which is expected to increase over the balance of 2018 due to competition for deposits. Given these circumstances, management anticipates that the impact of the prime rate increase in June 2018 will be revenue neutral. As of June 30, 2018, the Company's 12-month deposit beta was 47% of the movement in the prime rate, and management expects that to increase.
  • Net interest margin increased 28 basis points to 3.88%. These improvements primarily reflected the positive impact of three increases in the prime rate during 2017 along with the first one in 2018.
  • Approximately 40% of the Company's loans are priced at variable rates, so future rate increases will benefit this part of the portfolio. The remainder of the portfolio is priced at fixed rates, and as these loans renew and new loans originate, pricing will be subject to competitive conditions and prevailing interest rates. Fixed-rate pricing is generally indexed to the five-year treasury rate, and as the yield curve continues to flatten, fixed-rate loans may not provide a significant lift in yields.

Non-interest income decreased $90 thousand or 1% to $11.4 million.

  • This was due primarily to a reduction in income from bank owned life insurance as well as fee income from mortgage banking, both of which were partially offset by higher revenue from wealth management and trust services and fees from debit and credit cards.

Non-interest expense increased $0.9 million or 4% to $22.1 million.

  • This increase primarily reflected higher compensation expense, which included incentive compensation related to loan production and company performance. Also increasing were employee benefits, due to higher health insurance costs, employment taxes and retirement plan expenses, technology and communications costs, and marketing and business development expenses.
  • These increases were partially offset by a reduction in amortization/impairment of investment in tax credit partnerships due to the irregular timing of such opportunities, which can cause corresponding expenses and tax benefits to vary widely.

The Company's effective tax rate decreased to 18.9% from 29.1%.

  • The decrease reflected lower marginal tax rates resulting from tax reform in December 2017.
  • The year-earlier effective tax rate benefited from significantly more tax savings related to investments in tax credit partnerships and stock-based compensation deductions.

Second Quarter 2018 Compared with First Quarter 2018

Total assets increased $38 million or 1%.

  • This primarily reflected ongoing growth in the Company's loan portfolio, which rose $65.6 million or 3%.

Total deposits decreased $33 million.

  • This reflected a seasonal decline in most deposit categories other than time deposits and non-interest-bearing demand deposits.

Asset quality remained at historically strong levels on a sequential-quarter basis.

  • Reflecting the successful resolution of several non-accrual loans, NPLs declined to $7.4 million or 0.29% of total loans outstanding versus $12.3 million or 0.49% of total loans outstanding.
  • NPAs were $7.7 million or 0.23% of total assets versus $12.6 million or 0.38% of total assets.
  • Net charge-offs declined.
  • The loan loss provision increased $500 thousand to $1.2 million for reasons mentioned earlier.
  • The allowance for loan losses relative to total loans was unchanged at 0.96%.

Net interest income increased approximately $1.4 million or 5%.

  • Interest income rose $2.3 million or 8%, reflecting both volume and rate.
  • Interest expense rose 37% as the Company boosted deposit rates in early May and late June.
  • Net interest margin increased nine basis points to 3.88%.

Non-interest income increased $526 thousand or 5%.

  • This primarily reflected higher other non-interest income, fee income from debit and credit cards and mortgage banking, which were more than offset by a slight decline in revenue from wealth management and trust services following a better-than-expected performance in the first quarter.

Non-interest expense increased $1.1 million or 5%.

  • This increase primarily reflected higher compensation expense, marketing and business development, and other non-interest expense. These increases were partially offset by a reduction in employee benefits.

The Company's effective tax rate increased to 18.9% from 18.5%.

About the Company

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.3 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 to evaluate capital adequacy.

 
Tangible Common Equity Ratio

(Dollars in thousands)

       
       

June 30,

2018

March 31,

2018

June 30,

2017

Total stockholders' equity $ 345,515 $ 337,702 $ 326,500
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,139 )   (1,182 )   (1,313 )
Tangible common equity $ 343,694   $ 335,838   $ 324,505  
 
Total assets $ 3,323,840 $ 3,285,480 $ 3,126,762
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,139 )   (1,182 )   (1,313 )
Tangible assets $ 3,322,019   $ 3,283,616   $ 3,124,767  
 
Total stockholders' equity to total assets 10.40 % 10.28 % 10.44 %
Tangible common equity ratio   10.35 %   10.23 %   10.38 %
 

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, 2017.

 
 
 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2018 Earnings Release
(In thousands unless otherwise noted)
 
      Three Months Ended     Six Months Ended
June 30, June 30,
2018     2017 2018     2017
Income Statement Data
Net interest income, fully tax equivalent (1) $ 28,759 $ 25,447 $ 56,161 $ 50,851
Interest income:
Loans $ 29,456 $ 24,364 $ 56,518 $ 48,446
Federal funds sold and interest bearing deposits 163 276 431 410
Mortgage loans held for sale 44 53 79 97
Securities   2,341   2,333   4,720   4,728
Total interest income   32,004   27,026   61,748   53,681
Interest expense:
Deposits 2,674 1,481 4,751 2,644

Securities sold under agreements to repurchase and other short-term borrowings

427 61 550 115
Federal Home Loan Bank (FHLB) advances   229   239   464   471
Total interest expense   3,330   1,781   5,765   3,230
Net interest income 28,674 25,245 55,983 50,451
Provision for loan losses   1,235   600   1,970   1,500
Net interest income after provision for loan losses   27,439   24,645   54,013   48,951
Non-interest income:
Wealth management and trust services 5,344 5,153 10,844 10,247
Deposit service charges 1,447 1,516 2,858 3,015
Debit and credit cards 1,689 1,514 3,197 2,920
Treasury management 1,113 1,082 2,160 2,104
Mortgage banking 746 897 1,322 1,599
Net investment product sales commissions and fees 397 357 801 743
Bank owned life insurance 191 556 378 760
Other non-interest income   508   450   784   759
Total non-interest income   11,435   11,525   22,344   22,147
Non-interest expense:
Compensation 11,703 10,566 22,673 21,235
Employee benefits 2,512 2,282 5,145 5,024
Net occupancy and equipment 1,811 1,782 3,629 3,689
Technology and communication 2,264 2,120 4,460 3,968
Marketing and business development 805 687 1,451 1,132
Postage, printing, and supplies 400 382 791 753
Legal and professional 504 642 997 1,071
FDIC insurance 238 244 480 474
Amortization/impairment of investments in tax credit partnerships 58 615 58 1,231
Capital and deposit based taxes 862 766 1,714 1,530
Other non-interest expenses   979   1,123   1,765   2,097
Total non-interest expense   22,136   21,209   43,163   42,204
Net income before income tax expense 16,738 14,961 33,194 28,894
Income tax expense   3,159   4,359   6,211   7,501
Net income $ 13,579 $ 10,602 $ 26,983 $ 21,393
 
Weighted average shares - basic 22,625 22,538 22,601 22,515
Weighted average shares - diluted 22,979 22,996 22,975 22,998
 
Net income per share, basic $ 0.60 $ 0.47 $ 1.19 $ 0.95
Net income per share, diluted 0.59 0.46 1.17 0.93
Cash dividend declared per share 0.23 0.20 0.46 0.39
 
Balance Sheet Data (at period end)
Total loans $ 2,577,960 $ 2,309,668
Allowance for loan losses 24,873 25,115
Total assets 3,323,840 3,126,762
Non-interest bearing deposits 715,974 696,085
Interest bearing deposits 1,824,487 1,782,461
Federal Home Loan Bank advances 48,821 50,433
Stockholders' equity 345,515 326,500
Total shares outstanding 22,746 22,662
Book value per share 15.19 14.41
Market value per share 38.15 38.90

 
 
 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2018 Earnings Release
                   
Three Months Ended Six Months Ended
June 30, June 30,
2018 2017 2018 2017
Average Balance Sheet Data
Federal funds sold and interest bearing deposits $ 36,985 $ 105,786 $ 53,991 $ 85,657
Mortgage loans held for sale 2,975 4,505 2,539 3,729
Securities available for sale 401,369 454,834 409,494 470,435
FHLB stock and other securities 8,925 6,376 8,310 6,361
Loans 2,540,537 2,280,122 2,495,868 2,286,795
Earning assets 2,973,704 2,830,211 2,952,638 2,834,328
Assets 3,132,494 2,994,209 3,111,807 2,996,567
Interest bearing deposits 1,846,730 1,812,290 1,869,864 1,829,339
Total deposits 2,548,372 2,496,256 2,555,738 2,501,538
Securities sold under agreement to repurchase
other short term borrowings 150,173 78,787 124,000 81,425
Federal Home Loan Bank advances 48,929 50,543 49,087 50,704
Interest bearing liabilities 2,045,832 1,941,620 2,042,951 1,961,468
Stockholders' equity 341,637 324,014 339,117 320,866
 
Performance Ratios
Annualized return on average assets 1.74 % 1.42 % 1.75 % 1.44 %
Annualized return on average equity 15.94 % 13.12 % 16.05 % 13.45 %
Net interest margin, fully tax equivalent 3.88 % 3.60 % 3.84 % 3.62 %

Non-interest income to total revenue, fully tax equivalent

28.45 % 31.17 % 28.46 % 30.34 %
Efficiency ratio, fully tax equivalent 55.07 % 57.37 % 54.98 % 57.82 %
 
Capital Ratios
Total stockholders' equity to total assets 10.40 % 10.44 %
Average stockholders' equity to average assets 10.91 % 10.82 % 10.90 % 10.71 %
Common equity tier 1 capital 12.18 % 12.51 %
Tier 1 risk-based capital 12.18 % 12.51 %
Total risk-based capital 13.06 % 13.49 %
Leverage 11.19 % 10.88 %
 
Loans by Type
Commercial and industrial $ 855,015 $ 749,036
Construction and development 238,224 196,619
Real estate mortgage - commercial investment 622,777 547,196
Real estate mortgage - owner occupied commercial 420,999 408,558
Real estate mortgage - 1-4 family residential 277,735 255,939
Home equity - first lien 53,257 52,560
Home equity - junior lien 66,323 65,344
Consumer   43,630     34,416  
Total loans $ 2,577,960   $ 2,309,668  
 
Asset Quality Data
Allowance for loan losses to total loans 0.96 % 1.09 %
Allowance for loan losses to average loans 1.00 % 1.10 %
Allowance for loan losses to non-performing loans 337.35 % 411.25 %
Nonaccrual loans $ 6,422 $ 4,913
Troubled debt restructuring 817 963
Loans - 90 days past due & still accruing 134 231
Total non-performing loans 7,373 6,107
OREO and repossessed assets 360 3,185
Total non-performing assets 7,733 9,292
Non-performing loans to total loans 0.29 % 0.26 %
Non-performing assets to total assets 0.23 % 0.30 %
Net charge-offs to average loans (2) 0.02 % 0.00 % 0.08 % 0.02 %
Net charge-offs $ 565 $ (34 ) $ 1,982 $ 392

 
 
 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2018 Earnings Release
                         
Five Quarter Comparison
6/30/18 3/31/18 12/31/17 9/30/17 6/30/17
Income Statement Data
Net interest income, fully tax equivalent (1) $ 28,759   $ 27,402   $ 27,223   $ 26,372   $ 25,447  
Net interest income $ 28,674 $ 27,309 $ 27,029 $ 26,173 $ 25,245
Provision for loan losses   1,235     735     900     150     600  
Net interest income after provision for loan losses   27,439     26,574     26,129     26,023     24,645  
Wealth management and trust services 5,344 5,500 5,233 5,025 5,153
Deposit service charges 1,447 1,411 1,588 1,569 1,516
Debit and credit cards 1,689 1,508 1,567 1,492 1,514
Treasury management 1,113 1,047 1,110 1,083 1,082
Mortgage banking 746 576 841 781 897
Gain (loss) on securities available for sale - - (263 ) 31 -
Net investment product sales commissions and fees 397 404 482 404 357
Bank owned life insurance 191 187 195 204 556
Other non-interest income   508     276     652     358     450  
Total non-interest income   11,435     10,909     11,405     10,947     11,525  
Compensation 11,703 10,970 10,732 10,614 10,566
Employee benefits 2,512 2,633 2,595 2,368 2,282
Net occupancy and equipment 1,811 1,818 1,767 1,937 1,782
Technology and communication 2,264 2,196 2,083 1,906 2,120
Marketing and business development 805 646 973 611 687
Postage, printing, and supplies 400 391 368 354 382
Legal and professional 504 493 751 571 642
FDIC insurance 238 242 244 242 244

Amortization/impairment of investment in tax credit partnerships

58 - 5,277 616 615
Capital and deposit based taxes 862 852 1,178 732 766
Other non-interest expenses   979     786     1,078     1,219     1,123  
Total non-interest expense   22,136     21,027     27,046     21,170     21,209  
Net income before income tax expense 16,738 16,456 10,488 15,800 14,961
Income tax expense   3,159     3,052     5,542     4,096     4,359  
Net income $ 13,579   $ 13,404   $ 4,946   $ 11,704   $ 10,602  
 
Weighted average shares - basic 22,625 22,577 22,555 22,542 22,538
Weighted average shares - diluted 22,979 22,942 22,993 22,964 22,996
 
Net income per share, basic $ 0.60 $ 0.59 $ 0.22 $ 0.52 $ 0.47
Net income per share, diluted 0.59 0.58 0.22 0.51 0.46
Cash dividend declared per share 0.23 0.23 0.21 0.20 0.20
 
Balance Sheet Data (at period end)
Cash and due from banks $ 44,052 $ 41,622 $ 41,982 $ 47,700 $ 44,902
Federal funds sold and interest bearing deposits 10,948 15,254 97,266 81,378 80,223
Mortgage loans held for sale 2,053 4,239 2,964 5,459 3,055
Securities available for sale 574,570 598,081 574,524 571,522 576,291
FHLB stock and other securities 10,370 8,876 7,646 7,666 7,666
Total loans 2,577,960 2,512,388 2,409,570 2,335,120 2,309,668
Allowance for loan losses 24,873 24,203 24,885 24,948 25,115
Total assets 3,323,840 3,285,480 3,239,646 3,155,913 3,126,762
Non-interest bearing deposits 715,974 681,936 674,697 676,824 696,085
Interest bearing deposits 1,824,487 1,891,428 1,903,598 1,805,142 1,782,461
Securities sold under agreements to repurchase 58,808 67,892 70,473 71,863 65,024
Federal funds purchased and other short-term borrowings 286,460 215,233 161,352 161,961 161,463
Federal Home Loan Bank advances 48,821 49,140 49,458 50,110 50,433
Stockholders' equity 345,515 337,702 333,644 334,255 326,500
Total shares outstanding 22,746 22,730 22,679 22,669 22,662
Book value per share 15.19 14.86 14.71 14.75 14.41
Market value per share 38.15 35.10 37.70 38.00 38.90
 
Capital Ratios
Total stockholders' equity to total assets 10.40 % 10.28 % 10.30 % 10.59 % 10.44 %
Average stockholders' equity to average assets 10.91 % 10.89 % 10.81 % 10.93 % 10.82 %
Common equity tier 1 capital 12.18 % 12.16 % 12.57 % 12.67 % 12.51 %
Tier 1 risk-based capital 12.18 % 12.16 % 12.57 % 12.67 % 12.51 %
Total risk-based capital 13.06 % 13.04 % 13.52 % 13.64 % 13.49 %
Leverage 11.19 % 11.05 % 10.70 % 11.02 % 10.88 %

 
 
 
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Second Quarter 2018 Earnings Release
             
Five Quarter Comparison
6/30/18 3/31/18 12/31/17 9/30/17 6/30/17
Average Balance Sheet Data

Average Federal funds sold and interest bearing deposits

$ 36,985 $ 71,186 $ 159,217 $ 120,927 $ 105,786
Average mortgage loans held for sale 2,975 2,098 3,213 3,515 4,505
Average investment securities 401,369 417,708 455,727 439,601 454,834
Average loans 2,540,537 2,450,703 2,352,310 2,308,806 2,280,122
Average earning assets 2,973,704 2,931,338 2,959,817 2,861,144 2,830,211
Average assets 3,132,494 3,090,891 3,128,765 3,027,088 2,994,209
Average interest bearing deposits 1,846,730 1,893,256 1,900,650 1,800,653 1,812,290
Average total deposits 2,548,372 2,563,184 2,594,225 2,498,468 2,496,256

Average securities sold under agreement to repurchase and other short term borrowings

150,173 97,535 97,474 101,341 78,787
Average Federal Home Loan Bank advances 48,929 49,247 49,583 50,221 50,543
Average interest bearing liabilities 2,045,832 2,040,038 2,047,707 1,952,216 1,941,620
Average stockholders' equity 341,637 336,570 338,368 330,864 324,014
 
Performance Ratios
Annualized return on average assets 1.74 % 1.76 % 0.63 % 1.53 % 1.42 %
Annualized return on average equity 15.94 % 16.15 % 5.80 % 14.03 % 13.12 %
Net interest margin, fully tax equivalent 3.88 % 3.79 % 3.65 % 3.66 % 3.60 %

Non-interest income to total revenue, fully tax equivalent

28.45 % 28.47 % 29.53 % 29.33 % 31.17 %
Efficiency ratio, fully tax equivalent 55.07 % 54.89 % 70.02 % 56.73 % 57.37 %
 
Loans by Type
Commercial and industrial $ 855,015 $ 843,478 $ 779,014 $ 750,728 $ 749,036
Construction and development 238,224 235,872 214,900 195,299 196,619
Real estate mortgage - commercial investment 622,777 590,942 594,902 576,810 547,196
Real estate mortgage - owner occupied commercial 420,999 407,733 398,685 397,804 408,558
Real estate mortgage - 1-4 family residential 277,735 272,900 262,110 261,707 255,939
Home equity - 1st lien 53,257 51,595 57,110 51,925 52,560
Home equity - junior lien 66,323 64,108 63,981 63,416 65,344
Consumer   43,630     45,760     38,868     37,431     34,416  
Total loans $ 2,577,960   $ 2,512,388   $ 2,409,570   $ 2,335,120   $ 2,309,668  
 
Asset Quality Data
Allowance for loan losses to total loans 0.96 % 0.96 % 1.03 % 1.07 % 1.09 %
Allowance for loan losses to average loans 0.99 % 0.99 % 1.07 % 1.09 % 1.11 %
Allowance for loan losses to non-performing loans 337.35 % 197.33 % 337.10 % 411.14 % 411.25 %
Nonaccrual loans $ 6,422 $ 11,422 $ 6,511 $ 4,858 $ 4,913
Troubled debt restructuring 817 843 869 949 963
Loans - 90 days past due and still accruing 134 - 2 261 231
Total non-performing loans 7,373 12,265 7,382 6,068 6,107
OREO and repossessed assets 360 360 2,640 2,640 3,185
Total non-performing assets 7,733 12,625 10,022 8,708 9,292
Non-performing loans to total loans 0.29 % 0.49 % 0.31 % 0.26 % 0.26 %
Non-performing assets to total assets 0.23 % 0.38 % 0.31 % 0.28 % 0.30 %
Net charge-offs to average loans 0.02 % 0.06 % 0.04 % 0.01 % 0.00 %
Net charge-offs (recoveries) $ 565 $ 1,417 $ 963 $ 317 $ (34 )
 
Other Information
Total assets under management (in millions) $ 2,852 $ 2,883 $ 2,809 $ 2,746 $ 2,643
Full-time equivalent employees 581 589 580 581 585
 

(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) - 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