Stock Yards Bancorp Reports Fourth Quarter Earnings of $23.9 Million or $0.82 Per Diluted Share and Record Earnings for the Year

来源: Nasdaq GlobeNewswire / 24 1月 2024 07:30:01 America/New_York

LOUISVILLE, Ky., Jan. 24, 2024 (GLOBE NEWSWIRE) -- Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported earnings of $23.9 million, or $0.82 per diluted share, for the fourth quarter ended December 31, 2023. This compares to net income of $29.8 million, or $1.01 per diluted share, for the fourth quarter of 2022. For the year ended December 31, 2023, the Company produced record net income of $107.7 million, and diluted earnings per share of $3.67. Strong loan growth across all markets and deposit growth contributed to solid fourth quarter and full year 2023 operating results.


(dollar amounts in thousands, except per share data)	4Q23			3Q23			4Q22
Net income	$	23,944		$	27,092		$	29,817
Net income per share, diluted		0.82			0.92			1.01

Net interest income	$	62,016		$	61,315		$	65,263
Provision for credit losses⁽¹⁾		6,046			2,775			3,375
Non-interest income		24,417			22,896			23,142
Non-interest expenses		50,013			46,702			45,946

Net interest margin		3.25	%		3.34	%		3.64	%
Efficiency ratio⁽²⁾		57.80	%		55.38	%		51.85	%
Tangible common equity to tangible assets⁽³⁾		8.09	%		7.69	%		7.44	%
Annualized return on average assets⁽⁴⁾		1.17	%		1.38	%		1.56	%
Annualized return on average equity⁽⁴⁾		11.62	%		13.26	%		15.99	%

“I am pleased with our fourth quarter and record full year 2023 results, highlighted by strong loan production and fee income led by Wealth Management & Trust (WM&T). We continue to see broad-based loan demand from our customers throughout our markets. Total loans, excluding PPP loans, increased $580 million, or 11%, over the last 12 months, of which $155 million was generated during the fourth quarter, setting a record for the best fourth quarter of organic loan expansion in the Company’s history. Thanks to the dedication and commitment of our employees, our net income surpassed the $100 million mark for the first time in 2023,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer.

“Net interest income increased for the second consecutive linked quarter, due to loan growth and continued yield expansion from assets re-pricing. However, our net interest margin contracted over the linked quarter, as the increase in cost of funds continued to outpace the growth in yields on earning assets. We anticipate net interest margin compression will most likely persist into the first part of the year,” Hillebrand continued. “Deposit balances expanded nicely during the fourth quarter, increasing $268 million, or 4%, on the linked quarter and increasing $279 million, or 4%, over the last 12 months. We continue to focus on organic growth, while avoiding brokered deposits, which provide more expensive funding than in-market deposit relationships.”

“Non-interest income, led by fourth quarter gains in several categories, once again fueled our operating results. WM&T posted another record year, benefiting from strong equity and fixed income market performance, coupled with net new business growth. Robust card income, treasury management and brokerage fees, driven by increased demand and customer expansion, served to cap off a record fee income year for us. We look forward to carrying this momentum into 2024 – our 120^th year of operation – with an unwavering focus on cultivating full customer relationships,” said Hillebrand.

At December 31, 2023, the Company had $8.17 billion in assets, $5.77 billion in loans and $6.67 billion in total deposits. The Company’s combined enterprise, which encompasses 71 branch offices across three contiguous states, will continue to benefit from a diversified geographic footprint that provides significant growth opportunities in both the banking and WM&T arenas.

Key factors contributing to the fourth quarter of 2023 results included:

Loan growth and loan production represented the best fourth quarter in the Company’s history. Total loans, excluding PPP loans, increased $155 million, or 3%, on the linked quarter. The yield earned on loans expanded to 5.79% for the fourth quarter of 2023, benefiting from average balance growth and to a lesser extent, interest rate expansion.
Deposit balances expanded $268 million, or 4%, on the linked quarter, as interest bearing deposits grew $434 million and non-interest bearing deposits contracted by $166 million.
- Interest bearing demand accounts increased $197 million, or 9%, consistent with seasonal public funds activity.
- Money market accounts expanded $134 million, or 12%, led by growth in WM&T money market funds held at the Bank.
- Time deposits grew by $120 million, or 14%, a tribute to successful marketing of promotional products, primarily in the Central Kentucky market.
Increasing costs of funds continued to outpace earning asset yield growth during the fourth quarter of 2023. Net interest income declined $3.2 million, or 5%, for the fourth quarter of 2023 compared to the fourth quarter a year ago, with net interest margin compressing 39 bps to 3.25%. While net interest margin also declined on the linked quarter, contracting 9 basis points from 3.34%, net interest income increased $701,000. Given the current interest rate environment, the change in deposit mix has and will continue to place pressure on funding costs.
While credit quality remains strong in comparison to traditional metrics, credit loss expense on loans of $5.8 million was recorded for the fourth quarter of 2023. The Bank recorded a $4.1 million charge-off related to a single Commercial & Industrial (C&I) relationship in late December. The Bank became aware of credit deterioration in the third quarter of 2023 and the relationship was downgraded at that time. The relationship was subsequently placed on non-accrual in the fourth quarter. The Bank considers this to be a conservative approach to an isolated situation with one customer and no additional loss is anticipated. Despite the charge-off, management remains confident in the current quality of the loan portfolio, as demonstrated by the relatively low concentration of classified and delinquent loans, and does not believe this instance is reflective of broader portfolio concerns. With the allowance for credit losses to total loans standing at 1.38%, the Bank is well-positioned based on current credit metrics and forecasts in the allowance for credit losses model.
Non-interest income increased $1.3 million, or 6%, over the fourth quarter of 2022. WM&T income expanded $878K, or 10%, to $10.1 million, benefitting from improved market conditions and net new business expansion. Card income set quarterly and year to date records, led by interchange income expansion and increased debit card processor incentives and treasury management fees once again demonstrated double digit growth. Fee income expansion in the fourth quarter of 2023 is especially notable given $1.3 million in non-recurring gains on sale of premises and equipment recorded in the fourth quarter of 2022.
Total non-interest expenses increased $4.1 million, or 9%, during the fourth quarter of 2023 compared to the fourth quarter of 2022, primarily due to higher compensation expense tied to employee growth and expense recorded related to an executive retirement agreement. Further, additional occupancy expense was incurred related to the relocation of all WM&T employees to a consolidated central location.
Tangible common equity per share⁽³⁾ was $21.95 at December 31, 2023, compared to $20.17 at September 30, 2023, and $18.50 at December 31, 2022. Over the past several quarters, tangible common equity and tangible book value have been impacted by the volatile interest rate market and corresponding impact on accumulated other comprehensive income/loss, primarily as a result of changes in unrealized losses in the available for sale debt securities portfolio, which has a current weighted average life of 5.5 years.

Highlights for the year ended December 31, 2023:

Loans (excluding PPP) grew $580 million, or 11%, over the past 12 months, marking the third consecutive year of double digit loan growth.
Average loans increased $604 million, or 13%, for the year.
Loan production set a new record for 2023.
Deposit balances grew by $279 million, or 4%, over the past 12 months. Interest bearing demand, money market, and time deposit expansion combined to more than offset declines in non-interest bearing demand accounts.
Net interest income increased $13.9 million, or 6%, over 2022.
Loan yield expansion led to net interest margin expanding four basis points to 3.39% in 2023 over 2022.
WM&T income reached and surpassed record levels during the year, increasing $3.7 million, or 10%, over the past 12 months, reflecting improved market conditions and net new business growth. Assets Under Management (AUM) surpassed the $7 billion mark at year-end.
Customer expansion and increased transaction volume led to record 2023 card, treasury management and brokerage income.

Hillebrand concluded, “In January, Stock Yards was named to Stephen’s 2024 Bank Industry & Top Picks List as the top Small-Cap stock with upside price potential. We were also named to Stephen’s 2024 Best Ideas List, as the top company within the Midwest Bank category. In November, we were once again nationally recognized by American Banker Magazine as one of the Best Banks to Work for in 2023. The Best Banks to Work For program identifies and honors U.S. banks for outstanding employee satisfaction. In addition, in May, we were named a winner of the 2022 Raymond James Community Bankers Cup, which recognizes the top 10% of community banks with assets between $500 million and $10 billion based on various profitability, operational efficiency and balance sheet metrics, marking our 8^th time being named to the Raymond James Community Bankers Cup. These recognitions are a testament to the dedication of our employees, who continue to work diligently to support our customers. We will not rest on our laurels as we enter 2024 – our 120^th year of service to the communities we are honored to serve.”

Results of Operations – Fourth Quarter 2023 Compared with Fourth Quarter 2022

Net interest income, the Company’s largest source of revenue, decreased by $3.2 million, or 5%, to $62.0 million. While strong organic loan growth boosted net interest income over the past 12 months, the cost of interest bearing liabilities more than offset the increase in total interest income.

Total interest income increased by $20.1 million, or 27%, to $95.2 million.
- Interest income and fees on loans increased $18.7 million, or 29%, over the prior year quarter. Consistent with the $582 million, or 11%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 79 basis points, or 16%, over the past 12 months to 5.79%.
- Interest income on securities decreased $413,000, or 5%, compared to the fourth quarter of 2022. While average securities balances have declined $168 million, or 9%, over the past 12 months, the rate earned on securities has increased 9 bps to 2.05%, as lower rate securities either matured or paid down.
- Average overnight funds increased $24 million quarter over prior year quarter, with interest income increasing $1.4 million consistent with the increase in seasonal public funds accounts. The Federal Reserve Bank has increased the rate paid on reserve balances meaningfully during the past 12 months, which has significantly benefited related interest income on excess cash held at the Bank.

Total interest expense increased $23.3 million to $33.2 million, as the cost of interest bearing liabilities increased 158 basis points to 2.44%.
- Interest expense on deposits increased $20.6 million over the past 12 months, as the overall cost of interest bearing deposits increased from 0.81% for the fourth quarter of 2022 to 2.34%. Deposit costs during the fourth quarter of 2023 have been significantly impacted by changes in mix, individual rate exceptions, successful new product promotions and growth in the WM&T money market account. Average interest bearing deposit balances increased $597 million, or 13%, from the fourth quarter of 2022 to the fourth quarter of 2023, with time deposits representing $458 million of the increase.
- Interest expense on Federal Home Loan Bank (FHLB) advances totaled $2.1 million for the fourth quarter of 2023. The Bank had $200 million in FHLB advances outstanding at the end of the fourth quarter of 2023.

The Bank recorded $5.8 million in credit loss expense for loans during the fourth quarter of 2023. In addition to strong loan growth, a flat unemployment projection and other factors within the CECL allowance model, the Bank recorded $4.7 million in charge-offs, with $4.1 million attributed to one C&I relationship offset by $235,000 in total recoveries. The Bank also recorded a $275,000 expense for off balance sheet exposures associated with expansion of Construction & Land Development (C&LD) and C&I lines of credit (increased availability and utilization). For the fourth quarter of 2022, consistent with strong loan growth and deterioration within the future unemployment rate forecast, the Company recorded $3.6 million in provision for credit losses on loans and a $225,000 benefit to credit loss expense for off balance sheet exposures. In addition, the Bank recorded a $1.6 million specific reserve for a Commercial Real Estate loan during the fourth quarter of 2022.

Non-interest income increased $1.3 million, or 6%, to $24.4 million.

WM&T income ended the fourth quarter of 2023 at $10.1 million, increasing $878,000, or 10%, over the fourth quarter of 2022. WM&T income benefited from strong fourth quarter equity and fixed income market performance, coupled with quarterly estate fees collected and net new business growth.
WM&T AUM expanded $575 million, or 9%, over the past 12 months consistent with market performance and net new business growth. With the especially strong market performance experienced in November and December, AUM once again surpassed the $7 billion mark.
Treasury management fees increased $253,000, or 11%, compared to the fourth quarter of 2022, driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income, new product sales and continued product expansion to the customer base added through recent merger activity.
Card income increased $328,000, or 7%, over the fourth quarter of 2022, driven by increased interchange income and credit card processor spend incentives. While card volume has increased over 2022, interchange rate compression has placed pressure on growth.
The Company recognized $1.3 million in non-recurring gains on sales of premises and equipment in the fourth quarter of 2022 related to the disposition of acquired locations.
Other non-interest income, which primarily includes swap fees, letter of credit fees and OREO activity increased by $527,000, or 34%, over the fourth quarter of 2022. During the fourth quarter of 2023, the Company sold other real estate owned and Visa Class B stock for $207,000 and $487,000 in non-recurring gains, respectively.

Non-interest expenses increased $4.1 million, or 9%, compared to the fourth quarter of 2022, to $50.0 million.

Compensation and employee benefits expense combined to increase $1.5 million, or 6%, compared to the fourth quarter of 2022, consistent with a 4% increase in full time equivalent employees and expense recorded related to an executive retirement agreement.
Net occupancy and equipment expenses increased $1.3 million, or 34%, over the fourth quarter of 2022 primarily due to the relocation of all WM&T employees to a consolidated central location.
Technology and communication expenses, which include computer software amortization, equipment depreciation and expenditures related to investments in technology needed to maintain and improve the quality of customer delivery channels, information security and internal resources, increased $865,000, or 23%, consistent with software upgrades, equipment upgrades, customer expansion and increased transaction activity.
Legal and professional fees increased $801,000 compared to the fourth quarter of 2022, led by increased compliance-related consulting in preparation for expanded regulatory oversight in conjunction with future growth in total assets.
During the fourth quarter of 2022, the Company sold its partial interest in an investment adviser subsidiary that was acquired from Commonwealth Bancshares, realizing a non-recurring pre-tax loss of $870,000. Also, intangible amortization expense decreased $443,000, or 28%, during the fourth quarter of 2023, consistent with the sale of the investment advisor and the prior year intangible asset write-off.

Financial Condition – December 31, 2023 Compared with December 31, 2022

Total assets increased $674 million, or 9%, year over year to $8.17 billion.

Total loans (excluding PPP) increased $580 million, or 11%, to $5.77 billion, with the largest sources of growth stemming from the commercial real estate and residential real estate portfolios. In addition to the strong growth, the Company has benefitted from the higher rate environment in 2023 that has generally slowed loan payoff activity. Total line of credit usage was 39.2% as of December 31, 2023, compared to 42.3% as of December 31, 2022, driven by strong production. C&I line of credit usage was 28.6% as of December 31, 2023, compared to 33.1% as of December 31, 2022.

Total investment securities, which spiked during the second quarter of 2021 and the first quarter of 2022 in part due to acquisitions, decreased $147 million, or 9%, year over year. Maturities/pay-downs of lower yielding investments have boosted the overall portfolio yield to 2.05% for the fourth quarter of 2023, from 1.96% in the fourth quarter of 2022. In 2023, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.

Total deposits increased $279 million, or 4%, over the past 12 months, led by interest bearing demand and time deposit expansion which was partially offset by a decline in non-interest bearing demand deposits.

During the fourth quarter of 2023, the Company recorded net loan charge-offs of $4.5 million, with $4.1 million attributed to one C&I relationship. This compares to $152,000 in net charge offs during the fourth quarter of 2022. Non-performing loans⁽⁵⁾ totaled $19 million, or 0.33% of total loans outstanding at December 31, 2023, compared to $15 million, or 0.29% of total loans outstanding at December 31, 2022. The ratio of allowance for credit losses to loans⁽⁵⁾ ended at 1.38% at December 31, 2023 compared to 1.41% at December 31, 2022.

At December 31, 2023, the Company continued to be “well-capitalized,” the highest regulatory capital rating for financial institutions, with all capital ratios remaining strong. Total equity to assets⁽³⁾ was 10.50% and the tangible common equity ratio⁽³⁾ was 8.09% at December 31, 2023, compared to 10.14% and 7.44% at December 31, 2022, respectively. Interest rate volatility over the last 12 months has significantly impacted unrealized losses within the available for sale debt securities portfolio.

In November 2023, the board of directors declared a quarterly cash dividend of $0.30 per common share. The dividend was paid December 29, 2023 to shareholders of record as of December 18, 2023.

No shares have been purchased since 2020, and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2025.

Results of Operations – Fourth Quarter 2023 Compared with Third Quarter 2023

Net interest margin declined 9 basis points on the linked quarter to 3.25%, as cost of funds growth continued to outpace earning asset yield growth.

Net interest income expanded $701,000, or 1%, over the prior quarter to $62.1 million, as management is optimistic that net interest margin contraction is starting to slow.

Total interest income increased $6.3 million, or 7%, led predominantly by the increase in interest income on loans.
- Interest income and fees on loans increased $4.5 million, or 6%, over the linked quarter. Average loans increased $190 million, or 4%, and the corresponding yield earned increased 13 basis points over the linked quarter.
- Average overnight funds increased $134 million over the linked quarter with interest income increasing $1.9 million. The fourth quarter of each year reflects elevated cash levels consistent with the seasonal increase in public funds.
Total interest expense increased $5.6 million, or 20%, led by a $8.3 million, or 39%, increase in the cost of total interest-bearing deposits, which was partially offset by a $2.8 million decline in FHLB borrowings expense.

The Company recorded $6.0 million in provision for credit losses⁽¹⁾ during the fourth quarter of 2023, which included a $5.8 million provision for credit losses on loans and $275,000 of credit loss expense for off-balance sheet exposures. During the third quarter of 2023, the Company recorded $2.8 million in provision for credit losses, which included a $2.3 million provision for credit losses on loans and $475,000 of credit loss expense for off-balance sheet exposures.

Non-interest income increased $1.5 million, or 7% on the linked quarter, led by record card income, strong swap and letter of credit fees, OREO activity and the sale of Visa Class B stock.

Non-interest expenses increased $3.3 million, or 7%, to $50.0 million, as increased compensation, net occupancy expense, technology expense and consulting expenses more than off-set a decline in employee benefits.

Financial Condition – December 31, 2023 Compared with September 30, 2023

Total assets increased $267 million, or 3%, on the linked quarter to $8.17 billion.

Total loans expanded $154 million, or 3%, on the linked quarter, led by increases in nearly every category, with the C&I and C&LD loan portfolios leading the growth. Total line of credit usage was 39.2% as of December 31, 2023, compared to 38.8% as of September 30, 2023, driven by strong production. C&I line of credit usage was 28.6% as of December 31, 2023, compared to 26.8% as of September 30, 2023.

Total deposits increased $268 million, or 4%, on the linked quarter. Total interest bearing deposits increased $434 million, on the linked quarter, as increases in interest bearing demand, money market accounts and time deposits more than offset the $166 million contraction in non-interest bearing demand. Excluding public funds, total deposits increased $121 million on the linked quarter.

About the Company

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.17 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 Stock Market under the symbol “SYBT.”

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 banking subsidiary operates; competition for the Company’s customers from other providers of financial services; changes in, or forecasts of, future political and economic conditions, inflation and efforts to control it; government legislation and regulation, which change 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. Refer to Stock Yards’ Annual Report on Form 10-K for the year ended December 31, 2022, as well as its other filings with the SEC for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

Contact: T. Clay Stinnett
Executive Vice President,
Treasurer and Chief Financial Officer
(502) 625-0890

Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2023 Earnings Release
(In thousands unless otherwise noted)
	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
Income Statement Data	2023		2022		2023		2022

Net interest income, fully tax equivalent (6)	$	62,112	$	65,469	$	247,869	$	234,267
Interest income:
Loans	$	82,715	$	64,033	$	302,044	$	216,138
Federal funds sold and interest bearing due from banks	3,526		2,173		8,411		6,018
Mortgage loans held for sale	38		13		211		190
Investment securities and FHLB stock	8,962		8,931		36,030		29,306
Total interest income	95,241		75,150		346,696		251,652
Interest expense:
Deposits	29,645		9,022		81,585		16,412
Securities sold under agreements to repurchase and
other short-term borrowings	843		399		2,776		721
Federal Home Loan Bank advances	2,155		12		12,768		12
Subordinated debentures	582		454		2,235		1,124
Total interest expense	33,225		9,887		99,364		18,269
Net interest income	62,016		65,263		247,332		233,383
Provision for credit losses (1)	6,046		3,375		13,796		10,257
Net interest income after provision for credit losses	55,970		61,888		233,536		223,126
Non-interest income:
Wealth management and trust services	10,099		9,221		39,802		36,111
Deposit service charges	2,244		2,183		8,866		8,286
Debit and credit card income	5,374		5,046		19,438		18,623
Treasury management fees	2,531		2,278		10,033		8,590
Mortgage banking income	823		209		3,705		3,210
Loss on sale of securities	(44)		-		(44)		-
Net investment product sales commissions and fees	860		833		3,205		3,063
Bank owned life insurance	576		545		2,253		1,597
Gain (Loss) on sale of premises and equipment	(105)		1,295		(30)		4,341
Other	2,059		1,532		4,992		5,328
Total non-interest income	24,417		23,142		92,220		89,149
Non-interest expenses:
Compensation	24,494		23,398		91,876		86,640
Employee benefits	3,829		3,421		18,451		16,568
Net occupancy and equipment	5,150		3,843		16,384		14,298
Technology and communication	4,612		3,747		17,318		14,897
Debit and credit card processing	1,719		1,470		6,481		5,909
Marketing and business development	1,754		1,544		5,990		5,005
Postage, printing and supplies	903		893		3,604		3,354
Legal and professional	1,293		492		3,958		2,943
FDIC Insurance	1,060		730		3,911		2,758
Amortization of investments in tax credit partnerships	324		88		1,294		353
Capital and deposit based taxes	601		799		2,476		2,621
Merger expenses	-		-		-		19,500
Intangible amortization	1,167		1,610		4,686		5,544
Loss on disposition of LFA	-		870		-		870
Other	3,107		3,041		11,400		10,531
Total non-interest expenses	50,013		45,946		187,829		191,791
Income before income tax expense	30,374		39,084		137,927		120,484
Income tax expense	6,430		9,174		30,179		27,190
Net income	23,944		29,910		107,748		93,294
Less: net income attributed to non-controlling interest	-		93		-		322
Net income available to stockholders	$	23,944	$	29,817	$	107,748	$	92,972

Net income per share - Basic	$	0.82	$	1.02	$	3.69	$	3.24
Net income per share - Diluted	0.82		1.01		3.67		3.21
Cash dividend declared per share	0.30		0.29		1.18		1.14

Weighted average shares - Basic	29,226		29,157		29,212		28,672
Weighted average shares - Diluted	29,331		29,428		23,343		28,922

					December 31,
Balance Sheet Data					2023		2022

Investment securities					$	1,471,016	$	1,617,834
Loans					5,771,038		5,205,918
Allowance for credit losses on loans					79,374		73,531
Total assets					8,170,102		7,496,261
Non-interest bearing deposits					1,548,624		1,950,198
Interest bearing deposits					5,122,124		4,441,054
Federal Home Loan Bank advances					200,000		50,000
Stockholders' equity					858,103		760,432
Total shares outstanding					29,329		29,259
Book value per share (3)					$	29.26	$	25.99
Tangible common equity per share (3)					21.95		18.50
Market value per share					51.49		64.98

Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2023 Earnings Release

	Three Months Ended				Twelve Months Ended
	December 31,				December 31,
Average Balance Sheet Data	2023		2022		2023		2022

Federal funds sold and interest bearing due from banks	$	258,950	$	235,448	$	164,314	$	477,341
Mortgage loans held for sale	5,305		6,735		6,822		8,835
Investment securities	1,618,799		1,786,383		1,687,639		1,670,324
Federal Home Loan Bank stock	20,519		10,928		22,123		11,741
Loans	5,676,193		5,094,356		5,422,865		4,819,124
Total interest earning assets	7,579,766		7,133,850		7,303,763		6,987,365
Total assets	8,116,569		7,559,260		7,775,574		7,438,880
Non-interest bearing deposits	1,663,962		2,097,858		1,763,157		2,053,213
Interest bearing deposits	5,025,240		4,428,582		4,608,575		4,385,393
Total deposits	6,689,202		6,526,440		6,371,732		6,438,606
Securities sold under agreement to repurchase	130,148		117,138		123,111		122,154
Federal Home Loan Bank advances	205,435		1,087		280,068		274
Subordinated debentures	26,706		26,309		26,558		21,733
Total interest bearing liabilities	5,401,135		4,582,005		5,052,106		4,538,911
Total stockholders' equity	817,682		740,007		801,593		738,798

Performance Ratios
Annualized return on average assets (4)	1.17%		1.56%		1.39%		1.25%
Annualized return on average equity (4)	11.62%		15.99%		13.44%		12.58%
Net interest margin, fully tax equivalent	3.25%		3.64%		3.39%		3.35%
Non-interest income to total revenue, fully tax equivalent	28.22%		26.12%		27.12%		27.56%
Efficiency ratio, fully tax equivalent (2)	57.80%		51.85%		55.23%		59.30%

Capital Ratios
Total stockholders' equity to total assets (3)					10.50%		10.14%
Tangible common equity to tangible assets (3)					8.09%		7.44%
Average stockholders' equity to average assets					10.31%		9.93%
Total risk-based capital					12.43%		12.54%
Common equity tier 1 risk-based capital					11.04%		11.04%
Tier 1 risk-based capital					11.43%		11.47%
Leverage					9.62%		9.33%

Loan Segmentation
Commercial real estate - non-owner occupied					$	1,561,689	$	1,443,813
Commercial real estate - owner occupied					907,424		788,936
Commercial and industrial					1,302,809		1,230,976
Commercial and industrial - PPP					4,319		18,593
Residential real estate - owner occupied					708,893		591,515
Residential real estate - non-owner occupied					358,715		312,474
Construction and land development					531,324		445,690
Home equity lines of credit					211,390		200,725
Consumer					145,340		139,461
Leases					15,503		13,322
Credit cards					23,632		20,413
Total loans and leases					$	5,771,038	$	5,205,918

Asset Quality Data
Non-accrual loans					$	19,058	$	14,242
Troubled debt restructurings					-		-
Loans past due 90 days or more and still accruing					110		892
Total non-performing loans					19,168		15,134
Other real estate owned					10		677
Total non-performing assets					$	19,178	$	15,811
Non-performing loans to total loans (5)					0.33%		0.29%
Non-performing assets to total assets					0.23%		0.21%
Allowance for credit losses on loans to total loans (5)					1.38%		1.41%
Allowance for credit losses on loans to average loans					1.46%		1.53%
Allowance for credit losses on loans to non-performing loans					414%		486%
Net (charge-offs) recoveries	$	(4,472)	$	(152)	$	(6,628)	$	1
Net (charge-offs) recoveries to average loans (7)	-0.08%		0.00%		-0.12%		0.00%

Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2023 Earnings Release

	Quarterly Comparison
Income Statement Data	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22

Net interest income, fully tax equivalent (6)	$	62,112	$	61,437	$	61,074	$	63,245	$	65,469
Net interest income	$	62,016	$	61,315	$	60,929	$	63,072	$	65,263
Provision for credit losses (1)	6,046		2,775		2,350		2,625		3,375
Net interest income after provision for credit losses	55,970		58,540		58,579		60,447		61,888
Non-interest income:
Wealth management and trust services	10,099		10,030		10,146		9,527		9,221
Deposit service charges	2,244		2,272		2,201		2,149		2,183
Debit and credit card income	5,374		4,870		4,712		4,482		5,046
Treasury management fees	2,531		2,635		2,549		2,318		2,278
Mortgage banking income	823		814		1,030		1,038		209
Loss on sale of securities	(44)		-		-		-		-
Net investment product sales commissions and fees	860		791		800		754		833
Bank owned life insurance	576		569		559		549		545
Gain (Loss) on sale of premises and equipment	(105)		302		(225)		(2)		1,295
Other	2,059		613		1,088		1,232		1,532
Total non-interest income	24,417		22,896		22,860		22,047		23,142
Non-interest expenses:
Compensation	24,494		23,379		22,107		21,896		23,398
Employee benefits	3,829		4,508		5,061		5,053		3,421
Net occupancy and equipment	5,150		3,821		3,514		3,899		3,843
Technology and communication	4,612		4,236		4,219		4,251		3,747
Debit and credit card processing	1,719		1,637		1,706		1,419		1,470
Marketing and business development	1,754		1,357		1,784		1,095		1,544
Postage, printing and supplies	903		938		889		874		893
Legal and professional	1,293		1,049		819		797		492
FDIC Insurance	1,060		937		779		1,135		730
Amortization of investments in tax credit partnerships	324		323		324		323		88
Capital and deposit based taxes	601		629		607		639		799
Merger expenses	-		-		-		-		-
Intangible amortization	1,167		1,167		1,172		1,180		1,610
Loss on disposition of LFA	-		-		-		-		870
Other	3,107		2,721		2,819		2,753		3,041
Total non-interest expenses	50,013		46,702		45,800		45,314		45,946
Income before income tax expense	30,374		34,734		35,639		37,180		39,084
Income tax expense	6,430		7,642		7,975		8,132		9,174
Net income	23,944		27,092		27,664		29,048		29,910
Less: net income attributed to non-controlling interest	-		-		-		-		93
Net income available to stockholders	$	23,944	$	27,092	$	27,664	$	29,048	$	29,817


Net income per share - Basic	$	0.82	$	0.93	$	0.95	$	1.00	$	1.02
Net income per share - Diluted	0.82		0.92		0.94		0.99		1.01
Cash dividend declared per share	0.30		0.30		0.29		0.29		0.29

Weighted average shares - Basic	29,226		29,223		29,223		29,178		29,157
Weighted average shares - Diluted	29,331		29,336		29,340		29,365		29,428

	Quarterly Comparison
Balance Sheet Data	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22

Cash and due from banks	$	94,466	$	79,538	$	111,126	$	87,922	$	82,515
Federal funds sold and interest bearing due from banks	171,493		113,499		103,204		229,076		84,852
Mortgage loans held for sale	6,056		6,535		7,069		6,397		2,606
Investment securities	1,471,016		1,465,453		1,542,753		1,600,603		1,617,834
Federal Home Loan Bank stock	16,236		26,241		27,366		23,226		10,928
Loans	5,771,038		5,617,084		5,418,609		5,243,104		5,205,918
Allowance for credit losses on loans	79,374		78,075		77,710		75,673		73,531
Goodwill	194,074		194,074		194,074		194,074		194,074
Total assets	8,170,102		7,903,430		7,732,552		7,667,648		7,496,261
Non-interest bearing deposits	1,548,624		1,714,918		1,766,132		1,845,302		1,950,198
Interest bearing deposits	5,122,124		4,687,889		4,442,248		4,511,893		4,441,054
Securities sold under agreements to repurchase	152,991		113,894		138,347		104,578		133,342
Federal funds purchased	12,852		11,518		11,646		14,745		8,789
Federal Home Loan Bank advances	200,000		350,000		400,000		275,000		50,000
Subordinated debentures	26,740		26,641		26,541		26,442		26,343
Stockholders' equity	858,103		806,918		808,082		794,368		760,432
Total shares outstanding	29,329		29,323		29,323		29,324		29,259
Book value per share (3)	$	29.26	$	27.52	$	27.56	$	27.09	$	25.99
Tangible common equity per share (3)	21.95		20.17		20.17		19.66		18.50
Market value per share	51.49		39.29		45.37		55.14		64.98

Capital Ratios
Total stockholders' equity to total assets (3)	10.50%		10.21%		10.45%		10.36%		10.14%
Tangible common equity to tangible assets (3)	8.09%		7.69%		7.87%		7.74%		7.44%
Average stockholders' equity to average assets	10.07%		10.39%		10.53%		10.26%		9.79%
Total risk-based capital	12.43%		12.71%		12.78%		12.91%		12.54%
Common equity tier 1 risk-based capital	11.04%		11.17%		11.20%		11.30%		11.04%
Tier 1 risk-based capital	11.43%		11.57%		11.61%		11.73%		11.47%
Leverage	9.62%		9.80%		9.83%		9.56%		9.33%

Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2023 Earnings Release

	Quarterly Comparison
Average Balance Sheet Data	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22

Federal funds sold and interest bearing due from banks	$	258,950	$	124,653	$	131,958	$	140,831	$	235,448
Mortgage loans held for sale	5,305		7,112		8,420		6,460		6,735
Investment securities	1,618,799		1,659,888		1,719,045		1,754,620		1,786,383
Federal Home Loan Bank stock	20,519		27,290		25,074		15,496		10,928
Loans	5,676,193		5,486,262		5,286,597		5,236,879		5,094,356
Total interest earning assets	7,579,766		7,305,205		7,171,094		7,154,286		7,133,850
Total assets	8,116,569		7,805,154		7,594,901		7,579,439		7,559,260
Non-interest bearing deposits	1,663,962		1,731,724		1,781,338		1,878,307		2,097,858
Interest bearing deposits	5,025,240		4,509,411		4,414,599		4,480,151		4,428,582
Total deposits	6,689,202		6,241,135		6,195,937		6,358,458		6,526,440
Securities sold under agreement to repurchase	130,148		127,063		113,051		122,049		117,138
Federal Home Loan Bank advances	205,435		401,630		348,352		163,056		1,087
Subordinated debentures	26,706		26,606		26,508		26,408		26,309
Total interest bearing liabilities	5,401,135		5,076,486		4,916,112		4,807,907		4,582,005
Total stockholders' equity	817,682		810,710		799,886		777,555		740,007

Performance Ratios
Annualized return on average assets (4)	1.17%		1.38%		1.46%		1.55%		1.56%
Annualized return on average equity (4)	11.62%		13.26%		13.87%		15.15%		15.99%
Net interest margin, fully tax equivalent	3.25%		3.34%		3.42%		3.59%		3.64%
Non-interest income to total revenue, fully tax equivalent	28.22%		27.15%		27.24%		25.85%		26.12%
Efficiency ratio, fully tax equivalent (2)	57.80%		55.38%		54.57%		53.13%		51.85%

Loans Segmentation
Commercial real estate - non-owner occupied	$	1,561,689	$	1,557,977	$	1,527,453	$	1,467,780	$	1,443,813
Commercial real estate - owner occupied	907,424		896,522		825,026		805,417		788,936
Commercial and industrial	1,302,809		1,246,200		1,226,554		1,205,222		1,230,976
Commercial and industrial - PPP	4,319		4,827		7,088		9,557		18,593
Residential real estate - owner occupied	708,893		696,162		664,870		620,417		591,515
Residential real estate - non-owner occupied	358,715		349,624		337,961		322,748		312,474
Construction and land development	531,324		480,120		451,324		439,673		445,690
Home equity lines of credit	211,390		203,184		202,574		200,933		200,725
Consumer	145,340		143,703		139,602		136,412		139,461
Leases	15,503		14,710		13,967		13,207		13,322
Credit cards	23,632		24,055		22,190		21,738		20,413
Total loans and leases	$	5,771,038	$	5,617,084	$	5,418,609	$	5,243,104	$	5,205,918

Asset Quality Data
Non-accrual loans	$	19,058	$	17,227	$	17,364	$	17,389	$	14,242
Troubled debt restructurings	-		-		-		-		-
Loans past due 90 days or more and still accruing	110		1		437		894		892
Total non-performing loans	19,168		17,228		17,801		18,283		15,134
Other real estate owned	10		427		677		677		677
Total non-performing assets	$	19,178	$	17,655	$	18,478	$	18,960	$	15,811
Non-performing loans to total loans (5)	0.33%		0.31%		0.33%		0.35%		0.29%
Non-performing assets to total assets	0.23%		0.22%		0.24%		0.25%		0.21%
Allowance for credit losses on loans to total loans (5)	1.38%		1.39%		1.43%		1.44%		1.41%
Allowance for credit losses on loans to average loans	1.40%		1.42%		1.47%		1.45%		1.44%
Allowance for credit losses on loans to non-performing loans	414%		453%		437%		414%		486%
Net (charge-offs) recoveries	$	(4,472)	$	(1,935)	$	(113)	$	(108)	$	(152)
Net (charge-offs) recoveries to average loans (7)	-0.08%		-0.04%		0.00%		0.00%		0.00%

Other Information
Total assets under management (in millions)	$	7,160	$	6,670	$	6,976	$	6,764	$	6,585
Full-time equivalent employees	1,075		1,056		1,056		1,028		1,033

(1) - Detail of Provision for credit losses follows:
	Quarterly Comparison
(in thousands)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22
Provision for credit losses - loans	$	5,771	$	2,300	$	2,150	$	2,250	$	3,600
Provision for credit losses - off balance sheet exposures	275		475		200		375		(225)
Total provision for credit losses	$	6,046	$	2,775	$	2,350	$	2,625	$	3,375


(2) - The efficiency ratio, a non-GAAP measure, equals total non-interest expenses divided by the sum of net interest income (FTE) and non-interest income. In addition to the efficiency ratio presented, Bancorp considers an adjusted efficiency ratio to be important because it provides a comparable ratio after eliminating net gains (losses) on sales, calls, and impairment of investment securities, as well as net gains (losses) on sales of premises and equipment and disposition of any acquired assets, if applicable, and the fluctuation in non-interest expenses related to amortization of investments in tax credit partnerships and merger-related expenses.
	Quarterly Comparison
(Dollars in thousands)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22
Total non-interest expenses (a)	$	50,013	$	46,702	$	45,800	$	45,314	$	45,946
Less: Loss on disposition of LFA	-		-		-		-		(870)
Less: Amortization of investments in tax credit partnerships	(324)		(323)		(324)		(323)		(88)
Total non-interest expenses - Non-GAAP (c)	$	49,689	$	46,379	$	45,476	$	44,991	$	44,988

Total net interest income, fully tax equivalent	$	62,112	$	61,437	$	61,074	$	63,245	$	65,469
Total non-interest income	24,417		22,896		22,860		22,047		23,142
Total revenue - Non-GAAP (b)	86,529		84,333		83,934		85,292		88,611
Less: Gain/loss on sale of premises and equipment	105		(302)		225		2		(1,295)
Less: Loss on sale of securities	44		-		-		-		-
Total adjusted revenue - Non-GAAP (d)	$	86,678	$	84,031	$	84,159	$	85,294	$	87,316

Efficiency ratio - Non-GAAP (a/b)	57.80%		55.38%		54.57%		53.13%		51.85%
Adjusted efficiency ratio - Non-GAAP (c/d)	57.33%		55.19%		54.04%		52.75%		51.52%

(3) - The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity, a non-GAAP disclosure. Bancorp provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy:

	Quarterly Comparison
(In thousands, except per share data)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22
Total stockholders' equity - GAAP (a)	$	858,103	$	806,918	$	808,082	$	794,368	$	760,432
Less: Goodwill	(194,074)		(194,074)		(194,074)		(194,074)		(194,074)
Less: Core deposit and other intangibles	(20,304)		(21,471)		(22,638)		(23,810)		(24,990)
Tangible common equity - Non-GAAP (c)	$	643,725	$	591,373	$	591,370	$	576,484	$	541,368

Total assets - GAAP (b)	$	8,170,102	$	7,903,430	$	7,732,552	$	7,667,648	$	7,496,261
Less: Goodwill	(194,074)		(194,074)		(194,074)		(194,074)		(194,074)
Less: Core deposit and other intangibles	(20,304)		(21,471)		(22,638)		(23,810)		(24,990)
Tangible assets - Non-GAAP (d)	$	7,955,724	$	7,687,885	$	7,515,840	$	7,449,764	$	7,277,197

Total stockholders' equity to total assets - GAAP (a/b)	10.50%		10.21%		10.45%		10.36%		10.14%
Tangible common equity to tangible assets - Non-GAAP (c/d)	8.09%		7.69%		7.87%		7.74%		7.44%

Total shares outstanding (e)	29,329		29,323		29,323		29,324		29,259

Book value per share - GAAP (a/e)	$	29.26	$	27.52	$	27.56	$	27.09	$	25.99
Tangible common equity per share - Non-GAAP (c/e)	21.95		20.17		20.17		19.66		18.50

(4) - Return on average assets equals net income divided by total average assets, annualized to reflect a full year return on average assets. Similarly, return on average equity equals net income divided by total average equity, annualized to reflect a full year return on average equity. Bancorp also considers adjusted return on average assets and return on average equity ratios important, as they reflect performance after removing net gains (losses) on certain sales of premises and equipment.
	Quarterly Comparison
(Dollars in thousands)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22

Net income attributable to stockholders - GAAP (a)	$	23,944	$	27,092	$	27,664	$	29,048	$	29,817
Add: Loss on disposition of LFA	-		-		-		-		870
Less: Gain/loss on sale of premises and equipment	105		(302)		225		2		(1,295)
Less: Tax effect of adjustments to net income	(23)		66		(50)		-		100
Total net income - Non-GAAP (b)	$	24,026	$	26,856	$	27,664	$	29,050	$	29,492

Total average assets (c)	$	8,116,569	$	7,805,154	$	7,594,901	$	7,579,439	$	7,559,260

Total average stockholder equity (d)	817,682		810,710		799,886		777,555		740,007

Return on average assets - GAAP (a/c)	1.17%		1.38%		1.46%		1.55%		1.56%
Return on average assets - Non-GAAP (b/c)	1.17%		1.37%		1.46%		1.55%		1.55%

Return on average equity - GAAP (a/d)	11.62%		13.26%		13.87%		15.15%		15.99%
Return on average equity - Non-GAAP (b/d)	11.66%		13.14%		13.87%		15.15%		15.81%

(5) - Allowance for credit losses on loans to total non-PPP loans represents the allowance for credit losses on loans, divided by total loans less PPP loans. Non-performing loans to total non-PPP loans represents non-performing loans, divided by total loans less PPP loans. Bancorp believes these non-GAAP disclosures are important because they provide a comparable ratio after eliminating the PPP loans, which are fully guaranteed by the U.S. SBA and have not been allocated for within the allowance for credit losses on loans and are not at risk of non-performance.
	Quarterly Comparison
(Dollars in thousands)	12/31/23		9/30/23		6/30/23		3/31/23		12/31/22

Total Loans - GAAP (a)	$	5,771,038	$	5,617,084	$	5,418,609	$	5,243,104	$	5,205,918
Less: PPP loans	(4,319)		(4,827)		(7,088)		(9,557)		(18,593)
Total non-PPP Loans - Non-GAAP (b)	$	5,766,719	$	5,612,257	$	5,411,521	$	5,233,547	$	5,187,325

Allowance for credit losses on loans (c)	$	79,374	$	78,075	$	77,710	$	75,673	$	73,531
Total non-performing loans (d)	19,168		17,228		17,801		18,283		15,134

Allowance for credit losses on loans to total loans - GAAP (c/a)	1.38%		1.39%		1.43%		1.44%		1.41%
Allowance for credit losses on loans to total loans - Non-GAAP (c/b)	1.38%		1.39%		1.44%		1.45%		1.42%

Non-performing loans to total loans - GAAP (d/a)	0.33%		0.31%		0.33%		0.35%		0.29%
Non-performing loans to total loans - Non-GAAP (d/b)	0.33%		0.31%		0.33%		0.35%		0.29%

(6) - Interest income on a FTE 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.

(7) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized.

Stock Yards Bancorp Reports Fourth Quarter Earnings of $23.9 Million or $0.82 Per Diluted Share and Record Earnings for the Year

Set Language