• Stock Yards Bancorp Reports Second Quarter Earnings of $27.6 Million or $0.94 Per Diluted Share

    来源: Nasdaq GlobeNewswire / 24 7月 2024 06:30:01   America/Chicago

    LOUISVILLE, Ky., July 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 $27.6 million, or $0.94 per diluted share, for the second quarter ended June 30, 2024. This compares to net income of $27.7 million, or $0.94 per diluted share, for the second quarter of 2023. Record loan growth, stable asset quality and net interest margin expansion contributed to second quarter operating results.

        
    (dollar amounts in thousands, except per share data)2Q24
    		 1Q24
    		 2Q23
    Net income$27,598  $25,887  $27,664 
    Net income per share, diluted 0.94   0.88   0.94 
        
    Net interest income$62,022  $60,070  $60,929 
    Provision for credit losses(1) 1,300   1,425   2,350 
    Non-interest income 23,655   23,271   22,860 
    Non-interest expenses 49,109   48,961   45,800 
        
    Net interest margin 3.26%  3.20%  3.42%
    Efficiency ratio(2) 57.26%  58.68%  54.57%
    Tangible common equity to tangible assets(3) 8.42%  8.36%  7.87%
    Annualized return on average assets(4) 1.35%  1.28%  1.46%
    Annualized return on average equity(4) 12.64%  12.09%  13.87%
        


    “Our second quarter results were solid, with record quarterly loan growth, stable credit quality metrics, solid contributions from our non-interest income revenue sources and net interest margin expansion,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Total loans increased $652 million, or 12%, over the last 12 months, $221 million of which was generated during the second quarter of this year. Just as important, second quarter loan growth, led by an increase in Commercial & Industrial (C&I) line of credit expansion, was experienced within all loan categories and spread across all markets.

    “Once again, strong non-interest income helped to fuel our operating results for the second quarter of 2024, with our Treasury Management and Wealth Management & Trust (WM&T) groups posting record quarterly revenue. While treasury management fees continued to benefit from customer growth and increased transaction volume, WM&T income was boosted by strong equity market performance, quarterly fees, and net new business expansion,” Hillebrand continued. “Further, we are encouraged by our net interest margin improvement and prospects for continued expansion. Second quarter net interest margin expanded six basis points compared to the linked quarter, boosted by robust loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion.”

    As of June 30, 2024, the Company had $8.32 billion in assets, $6.07 billion in loans and $6.57 billion in total deposits. The Company’s combined enterprise, which encompasses 72 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 second quarter of 2024 results included:

    • Total loans increased $652 million, or 12%, over the last 12 months, while growing a record $221 million, or 4%, on the linked quarter. Broad based loan growth during the quarter included increases in all markets and across all loan categories, with C&I growth of $63 million, or 5%, posting the largest gain. The yield earned on loans increased to 6.06% for the second quarter of 2024, benefiting from average balance growth and interest rate expansion.
    • Deposit balances expanded $361 million, or 6% over the last 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $284 million, or 16%, while interest-bearing deposits grew $645 million, or 15%, led by time deposit growth. On the linked quarter, total deposits contracted $40 million, or 1%, led entirely by interest-bearing deposits.
    • Net interest income increased $1.1 million, or 2%, for the second quarter of 2024 compared to the second quarter a year ago, with net interest margin compressing 16 bps to 3.26%. On the linked quarter, net interest income increased $2.0 million, or 3%, while net interest margin expanded 6 bps to 3.26%, representing the first time in six quarters that net interest margin has expanded.
    • The Company recorded credit loss expense(1) of $1.3 million for the second quarter of 2024, consistent with strong loan growth and other factors within the CECL allowance model.
    • Non-interest income increased $795,000, or 3%, over the second quarter of 2023. WM&T income expanded $649,000, or 6%, to a record $10.8 million, benefitting from strong quarterly fees, improved market conditions and net new business expansion. Treasury management fees also set a record, growing $276,000, or 11% over the last 12 months to $2.8 million. While card income increased $211,000, other non-interest income declined $588,000 over the second quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.
    • Total non-interest expenses increased $3.3 million, or 7%, during the second quarter of 2024 compared to the second quarter of 2023, primarily due to higher compensation and benefits expenses associated with annual merit increases, increased bonus accruals and elevated health insurance claims activity. Overall, non-interest expenses tracked closely to management expectations.
    • Tangible common equity per share(3) was $23.22 on June 30, 2024, compared to $22.50 on March 31, 2024, and $20.17 on June 30, 2023.

    Hillebrand concluded, “In May 2024, we once again received the 2023 Raymond James Community Bankers Cup award, recognizing the top 10% of community banks based on various profitability, operational efficiency, and balance sheet metrics. The pool of banks considered for recognition included all exchange-traded domestic banks with assets between $500 million and $10 billion as of December 31, 2023. This recognition not only reflects the success of Stock Yards, but our dedication to providing high quality service to the communities we serve.” Stock Yards Bancorp has been awarded the Raymond James Community Bankers Cup a total of nine times.

    Results of Operations – Second Quarter 2024, Compared with Second Quarter 2023

    Net interest income, the Company’s largest source of revenue, increased by $1.1 million, or 2%, to $62.0 million. Strong organic loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion contributed to net interest income growth.

    • Total interest income increased by $17.2 million, or 21%, to $100.3 million.
      • Interest income and fees on loans increased $17.7 million, or 24%, over the prior year quarter. Consistent with the $687 million, or 13%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 57 basis points over the past 12 months to 6.06%.
      • Interest income on securities decreased $1.2 million, or 13%, compared to the second quarter of 2023. While average securities balances have declined $227 million, or 13%, over the past 12 months, the rate earned on securities remained steady at 2.05%. Over the past 12 months, cash flows from investment portfolio maturities and pay downs have been utilized to fund loan growth and provide liquidity in lieu of redeployment into the portfolio.
      • Interest income on overnight funds increased $493,000, or 30%, consistent with the $27 million quarter over prior year quarter average balance increase coupled with the increase in the Federal Funds Target Rate.
    • Total interest expense increased $16.1 million, or 73%, to $38.3 million, as the cost of interest-bearing liabilities increased 94 basis points to 2.75%. For the fifth consecutive linked quarter end, the pace of expansion of total interest-bearing liability costs has slowed.
      • Interest expense on deposits increased $14.5 million over the past 12 months, as the overall cost of interest- bearing deposits increased to 2.56% in the second quarter of 2024 from 1.55% in the second quarter of 2023. Interest expense expansion was spread over most deposit categories, with time deposits expanding the most at $6.2 million.
      • Interest expense on Federal Home Loan Bank (FHLB) advances increased $1.3 million, or 33%. In 2024, in lieu of aggressive deposit promotions, the Company has increased short-term borrowings to fund loan growth, in anticipation of securities maturing in the second half of 2024.

    For the second quarter of 2024, consistent with strong loan growth, a slight deterioration in unemployment projections, net recoveries, a marginal increase in specific reserves and other factors within the CECL allowance model, the Company recorded $1.1 million in credit loss expense(1) for loans. In addition, the Company recorded $225,000 expense for off balance sheet exposures associated with expansion of Construction & Land Development and C&I lines of credit. For the second quarter of 2023, the Company recorded $2.2 million in credit loss expense for loans and $200,000 provision expense for off balance sheet exposures.

    Non-interest income increased $795,000, or 3%, to $23.7 million compared to the second quarter of 2023.

    • WM&T income ended the second quarter of 2024 at a record $10.8 million, increasing $649,000, or 6%, over the second quarter of 2023. WM&T income benefited from net new business growth and equity market performance, coupled with higher quarterly fees collected. WM&T AUM expanded $503 million, or 7%, over the past 12 months to $7.48 billion at quarter end.
    • Compared to the second quarter of 2023, treasury management fees increased $276,000, or 11%, to a record $2.8 million. The consistent treasury management growth has been driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income, new product sales and continued expansion of existing relationships.
    • Card income increased $211,000, or 4%, over the second quarter of 2023, driven by transaction volume and increased interchange income.
    • Other non-interest income declined $588,000 over the second quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.

    Non-interest expenses, which tracked closely with management expectations, increased $3.3 million, or 7%, compared to the second quarter of 2023, to $49.1 million.

    • Compensation and benefits expense increased $2.5 million, or 9%, compared to the second quarter of 2023, consistent with the increase in annual merit increases, increased bonus accruals and elevated health insurance claims activity.
    • Net occupancy and equipment expenses increased $305,000, or 9%, over the second quarter of 2023, 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 $675,000, or 16%, consistent with software upgrades and increased compliance expense.
    • Marketing and business development expenses decreased $188,000 or 11%, compared to the second quarter of 2023 primarily due to lower advertising and customer entertainment expense.
    • Legal and professional fees increased $366,000 compared to the second quarter of 2023, led by increased compliance-related consulting in preparation for expanded regulatory oversight in conjunction with future growth and higher collection related legal expenses.
    • FDIC insurance expense increased $382,000, or 49%, compared to the second quarter of 2023. This expense moves in tandem with asset growth and the FDIC mandated uniform base rate assessment (which was increased in the second quarter of the prior year).
    • Amortization of investments in tax credit partnerships declined $324,000 compared to the second quarter of 2023. Effective January 1, 2024, the Bank adopted ASU 2023-02 and began booking tax credit amortization expense for all income tax credit projects as a component of tax expense via the proportional amortization method.
    • Other non-interest expenses declined $533,000, or 19%, compared to the second quarter of 2023, primarily due to the Company’s strategic decision to exit its insurance captive in late 2023.

    Financial Condition – June 30, 2024, Compared with June 30, 2023

    Total assets increased $583 million, or 8%, year over year to $8.32 billion.

    Total loans increased $652 million, or 12%, to $6.07 billion, with the commercial real estate and C&I portfolio combining to represent 56% of the growth. In addition to the robust loan growth, the Company has benefitted from the higher rate environment that has generally slowed or muted loan payoff activity. Total line of credit usage was 41.1% as of June 30, 2024, compared to 40.1% as of June 30, 2023, with C&I line of credit usage expanding to 30.8% as of period end.

    Total investment securities decreased $200 million, or 13%, year over year. The overall portfolio yield was 2.05% for the second quarter of 2024, which was unchanged from the second quarter of 2023. Over the past 12 months, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.

    Total deposits increased $361 million, or 6%, over the past 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $284 million, or 16%, while interest-bearing deposits grew $645 million, or 15%, led by time deposit growth.

    For the first six months of 2024, the Company recorded net loan recoveries of $531,000. This compares to $221,000 in net charge offs during the same period in 2023. Non-performing loans totaled $18 million, or 0.29% of total loans outstanding on June 30, 2024, compared to $18 million, or 0.33% of total loans outstanding on June 30, 2023. The ratio of allowance for credit losses to loans ended at 1.35% on June 30, 2024, compared to 1.43% on June 30, 2023.

    As of June 30, 2024, the Company continued to be “well-capitalized,” the highest regulatory capital rating for financial institutions, with all capital ratios experiencing meaningful growth. Total equity to assets(3) was 10.76% and the tangible common equity ratio(3) was 8.42% on June 30, 2024, compared to 10.45% and 7.87% on June 30, 2023, respectively.

    In May 2024, the board of directors declared a quarterly cash dividend of $0.30 per common share. The dividend was paid July 1, 2024, to shareholders of record as of June 17, 2024.

    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 – Second Quarter 2024, Compared with First Quarter 2024

    Net interest margin improved six basis points on the linked quarter to 3.26%, boosted by loan growth, higher interest earning asset yields and a slow-down in deposit cost expansion.

    Net interest income increased $2.0 million, or 3%, over the prior quarter to $62.0 million.

    • Total interest income increased $3.8 million, or 4%, led by the increase in interest income on loans.
    • Total interest expense increased $1.8 million, or 5%,
      • Interest expense on deposits decreased $243,000, led by the interest-bearing demand and money market categories.
      • Interest expense on FHLB advances increased $2.3 million, or 76%. The Bank has increased short-term borrowings to fund current year loan growth (in lieu of aggressive deposit promotions), in anticipation of securities maturing in the second half of the year.

    The Company recorded $1.3 million in provision for credit losses(1) during the second quarter of 2024, which included a $1.1 million provision for credit losses on loans and $225,000 of credit loss expense for off-balance sheet exposures. During the first quarter of 2024, the Company recorded $1.4 million in provision for credit losses, which included a $1.2 million provision for credit losses on loans and $250,000 of credit loss expense for off-balance sheet exposures.

    Non-interest income increased $384,000, or 2%, on the linked quarter.

    • WM&T income expanded $24,000 to record levels, consistent with market expansion and net new business growth.
    • Card income increased $241,000, or 5%, consistent with increased transaction volume.
    • Treasury management fees increased $200,000, ending at $2.8 million, a quarterly record.

    Non-interest expenses increased $148,000, to $49.1 million, as decreases in employee benefits and technology and communication expenses were offset by increases in compensation, net occupancy and equipment and marketing and business development expenses.

    Financial Condition – June 30, 2024, Compared with March 31, 2024

    Total assets increased $192 million, or 2%, on the linked quarter to $8.32 billion.

    Total loans expanded $221 million, or 4%, on the linked quarter, led by increases in every loan category. Total line of credit usage was 41.1% as of June 30, 2024, compared to 38.9% as of March 31, 2024, driven by strong production. C&I line of credit usage totaled 30.8% as of June 30, 2024, compared to 27.3% as of March 31, 2024.

    Total deposits decreased $40 million, or 1%, on the linked quarter. Non-interest-bearing demand accounts increased $1 million, while total interest-bearing deposit accounts contracted $41 million. Time deposit growth of $22 million was partially offset by $64 million of money market contraction.

    About the Company

    Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.32 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, 2023, 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)
    Second Quarter 2024 Earnings Release
    (In thousands unless otherwise noted)
      Three Months Ended
    		 Six Months Ended
    		   
      June 30,
    		 June 30,
    		   
    Income Statement Data 2024
    		 2023
    		 2024
    		 2023
    		   
                    
    Net interest income, fully tax equivalent (5) $62,113  $61,074  $122,279  $124,319    
    Interest income:               
    Loans $90,018  $72,308  $175,858  $141,095    
    Federal funds sold and interest bearing due from banks 2,157  1,664  4,253  3,245    
    Mortgage loans held for sale 74  77  105  118    
    Federal Home Loan Bank stock 470  275  938  440    
    Investment securities 7,585  8,739  15,695  17,632    
    Total interest income 100,304  83,063  196,849  162,530    
    Interest expense:               
    Deposits 31,623  17,081  63,489  30,580    
    Securities sold under agreements to repurchase 771  376  1,702  832    
    Federal funds purchased 139  170  275  347    
    Federal Home Loan Bank advances 5,263  3,962  8,260  5,696    
    Subordinated debentures 486  545  1,031  1,074    
    Total interest expense 38,282  22,134  74,757  38,529    
    Net interest income 62,022  60,929  122,092  124,001    
    Provision for credit losses (1) 1,300  2,350  2,725  4,975    
    Net interest income after provision for credit losses 60,722  58,579  119,367  119,026    
    Non-interest income:               
    Wealth management and trust services 10,795  10,146  21,566  19,673    
    Deposit service charges 2,180  2,201  4,316  4,350    
    Debit and credit card income 4,923  4,712  9,605  9,194    
    Treasury management fees 2,825  2,549  5,450  4,867    
    Mortgage banking income 1,017  1,030  1,965  2,068    
    Net investment product sales commissions and fees 800  800  1,665  1,554    
    Bank owned life insurance 595  559  1,183  1,108    
    Gain (loss) on sale of premises and equipment 20  (225) 20  (227)   
    Other 500  1,088  1,156  2,320    
    Total non-interest income 23,655  22,860  46,926  44,907    
    Non-interest expenses:               
    Compensation 24,634  22,107  48,855  44,003    
    Employee benefits 5,086  5,061  10,962  10,114    
    Net occupancy and equipment 3,819  3,514  7,489  7,413    
    Technology and communication 4,894  4,219  9,963  8,470    
    Debit and credit card processing 1,811  1,706  3,557  3,125    
    Marketing and business development 1,596  1,784  2,671  2,879    
    Postage, printing and supplies 913  889  1,839  1,763    
    Legal and professional 1,185  819  2,300  1,616    
    FDIC insurance 1,161  779  2,273  1,914    
    Capital and deposit based taxes 673  607  1,303  1,246    
    Intangible amortization 1,051  1,172  2,103  2,352    
    Amortization of investments in tax credit partnerships -  324  -  647    
    Other 2,286  2,819  4,755  5,572    
    Total non-interest expenses 49,109  45,800  98,070  91,114    
    Income before income tax expense 35,268  35,639  68,223  72,819    
    Income tax expense 7,670  7,975  14,738  16,107    
    Net income $27,598  $27,664  $53,485  $56,712    
                    
    Net income per share - Basic $0.94  $0.95  $1.83  $1.94    
    Net income per share - Diluted 0.94  0.94  1.82  1.93    
    Cash dividend declared per share 0.30  0.29  0.60  0.58    
                    
    Weighted average shares - Basic 29,283  29,223  29,267  29,200    
    Weighted average shares - Diluted 29,383  29,340  29,372  29,353    
                    
          June 30,
    		   
    Balance Sheet Data       2024
    		 2023
    		   
                    
    Investment securities       $1,342,354  $1,542,753    
    Loans       6,070,963  5,418,609    
    Allowance for credit losses on loans       82,155  77,710    
    Total assets       8,315,325  7,732,552    
    Non-interest bearing deposits       1,482,514  1,766,132    
    Interest bearing deposits       5,086,724  4,442,248    
    Federal Home Loan Bank advances       400,000  400,000    
    Accumulated other comprehensive income (loss)       (94,980) (107,416)   
    Stockholders' equity       894,535  808,082    
                    
    Total shares outstanding       29,388  29,323    
    Book value per share (3)       $30.44  $27.56    
    Tangible common equity per share (3)       23.22  20.17    
    Market value per share       49.67  45.37    
                    
    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    Second Quarter 2024 Earnings Release
                    
      Three Months Ended
    		 Six Months Ended
    		   
      June 30,
    		 June 30,
    		   
    Average Balance Sheet Data 2024
    		 2023
    		 2024
    		 2023
    		   
                    
    Federal funds sold and interest bearing due from banks $158,512  $131,958  $156,251  $136,369    
    Mortgage loans held for sale 6,204  8,420  5,417  7,446    
    Investment securities 1,491,865  1,719,045  1,535,132  1,736,734    
    Federal Home Loan Bank stock 29,735  25,074  25,428  20,311    
    Loans 5,973,801  5,286,597  5,891,363  5,261,876    
    Total interest earning assets 7,660,117  7,171,094  7,613,591  7,162,736    
    Total assets 8,246,735  7,579,439  8,200,049  7,587,211    
    Non-interest bearing deposits 1,515,708  1,781,338  1,508,155  1,829,554    
    Interest bearing deposits 4,971,804  4,414,599  5,015,274  4,447,194    
    Total deposits 6,487,512  6,195,937  6,523,429  6,276,748    
    Securities sold under agreements to repurchase 147,327  133,051  156,133  117,525    
    Federal funds purchased 10,127  13,602  10,144  14,915    
    Federal Home Loan Bank advances 441,484  348,352  357,967  256,215    
    Subordinated debentures 26,806  26,508  26,800  26,458    
    Total interest bearing liabilities 5,597,548  4,916,112  5,566,338  4,862,307    
    Accumulated other comprehensive income (loss) (99,640) (102,970) (97,693) (104,856)   
    Total stockholders' equity 878,233  799,886  869,616  788,782    
                    
    Performance Ratios               
    Annualized return on average assets (4) 1.35%  1.46%  1.31%  1.51%    
    Annualized return on average equity (4) 12.64%  13.87%  12.37%  14.50%    
    Net interest margin, fully tax equivalent 3.26%  3.42%  3.23%  3.50%    
    Non-interest income to total revenue, fully tax equivalent 27.58%  27.43%  27.73%  26.63%    
    Efficiency ratio, fully tax equivalent (2) 57.26%  54.47%  57.96%  53.84%    
                    
    Capital Ratios               
    Total stockholders' equity to total assets (3)       10.76%  10.45%    
    Tangible common equity to tangible assets (3)       8.42%  7.87%    
    Average stockholders' equity to average assets       10.61%  10.40%    
    Total risk-based capital       12.62%  12.78%    
    Common equity tier 1 risk-based capital       11.07%  11.20%    
    Tier 1 risk-based capital       11.43%  11.61%    
    Leverage       9.95%  9.83%    
                    
    Loan Segmentation               
    Commercial real estate - non-owner occupied       $1,652,614  $1,477,733    
    Commercial real estate - owner occupied       943,013  873,980    
    Commercial and industrial       1,356,970  1,233,642    
    Residential real estate - owner occupied       749,870  664,870    
    Residential real estate - non-owner occupied       365,846  338,727    
    Construction and land development       586,820  451,324    
    Home equity lines of credit       223,304  202,574    
    Consumer       151,221  139,602    
    Leases       17,258  13,967    
    Credit cards       24,047  22,190    
    Total loans and leases       $6,070,963  $5,418,609    
                    
    Asset Quality Data               
    Non-accrual loans       $17,371  $17,364    
    Modifications to borrowers experiencing financial difficulty       -  -    
    Loans past due 90 days or more and still accruing       186  437    
    Total non-performing loans       17,557  17,801    
    Other real estate owned       10  677    
    Total non-performing assets       $17,567  $18,478    
    Non-performing loans to total loans       0.29%  0.33%    
    Non-performing assets to total assets       0.21%  0.24%    
    Allowance for credit losses on loans to total loans       1.35%  1.43%    
    Allowance for credit losses on loans to average loans       1.39%  1.48%    
    Allowance for credit losses on loans to non-performing loans       468%  437%    
    Net (charge-offs) recoveries $183  $(113) $531  $(221)   
    Net (charge-offs) recoveries to average loans (6) 0.00%  0.00%  0.01%  0.00%    
                    
    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    Second Quarter 2024 Earnings Release
                    
      Quarterly Comparison
    Income Statement Data 6/30/24
    		 3/31/24
    		 12/31/23
    		 9/30/23
    		 6/30/23
                    
    Net interest income, fully tax equivalent (5) $62,113  $60,167  $62,112  $61,437  $61,074 
    Net interest income $62,022  $60,070  $62,016  $61,315  $60,929 
    Provision for credit losses (1) 1,300  1,425  6,046  2,775  2,350 
    Net interest income after provision for credit losses 60,722  58,645  55,970  58,540  58,579 
    Non-interest income:               
    Wealth management and trust services 10,795  10,771  10,099  10,030  10,146 
    Deposit service charges 2,180  2,136  2,244  2,272  2,201 
    Debit and credit card income 4,923  4,682  5,374  4,870  4,712 
    Treasury management fees 2,825  2,625  2,531  2,635  2,549 
    Mortgage banking income 1,017  948  823  814  1,030 
    Loss on sale of securities -  -  (44) -  - 
    Net investment product sales commissions and fees 800  865  860  791  800 
    Bank owned life insurance 595  588  576  569  559 
    Gain (loss) on sale of premises and equipment 20  -  (105) 302  (225)
    Other 500  656  2,059  613  1,088 
    Total non-interest income 23,655  23,271  24,417  22,896  22,860 
    Non-interest expenses:               
    Compensation 24,634  24,221  24,494  23,379  22,107 
    Employee benefits 5,086  5,876  3,829  4,508  5,061 
    Net occupancy and equipment 3,819  3,670  5,150  3,821  3,514 
    Technology and communication 4,894  5,069  4,612  4,236  4,219 
    Debit and credit card processing 1,811  1,746  1,719  1,637  1,706 
    Marketing and business development 1,596  1,075  1,754  1,357  1,784 
    Postage, printing and supplies 913  926  903  938  889 
    Legal and professional 1,185  1,115  1,293  1,049  819 
    FDIC insurance 1,161  1,112  1,060  937  779 
    Capital and deposit based taxes 673  630  601  629  607 
    Intangible amortization 1,051  1,052  1,167  1,167  1,172 
    Amortization of investments in tax credit partnerships -  -  324  323  324 
    Other 2,286  2,469  3,107  2,721  2,819 
    Total non-interest expenses 49,109  48,961  50,013  46,702  45,800 
    Income before income tax expense 35,268  32,955  30,374  34,734  35,639 
    Income tax expense 7,670  7,068  6,430  7,642  7,975 
    Net income $27,598  $25,887  $23,944  $27,092  $27,664 
                    
                    
    Net income per share - Basic $0.94  $0.89  $0.82  $0.93  $0.95 
    Net income per share - Diluted 0.94  0.88  0.82  0.92  0.94 
    Cash dividend declared per share 0.30  0.30  0.30  0.30  0.29 
                    
    Weighted average shares - Basic 29,283  29,250  29,226  29,223  29,223 
    Weighted average shares - Diluted 29,383  29,361  29,331  29,336  29,340 
                    
      Quarterly Comparison
    Balance Sheet Data 6/30/24
    		 3/31/24
    		 3/31/24
    		 9/30/23
    		 6/30/23
                    
    Cash and due from banks $85,441  $71,676  $94,466  $79,538  $111,126 
    Federal funds sold and interest bearing due from banks 118,910  88,547  171,493  113,499  103,204 
    Mortgage loans held for sale 6,438  6,462  6,056  6,535  7,069 
    Investment securities 1,342,354  1,379,212  1,471,016  1,465,453  1,542,753 
    Federal Home Loan Bank stock 31,462  24,675  16,236  26,241  27,366 
    Loans 6,070,963  5,849,715  5,771,038  5,617,084  5,418,609 
    Allowance for credit losses on loans 82,155  80,897  79,374  78,075  77,710 
    Goodwill 194,074  194,074  194,074  194,074  194,074 
    Total assets 8,315,325  8,123,128  8,170,102  7,903,430  7,732,552 
    Non-interest bearing deposits 1,482,514  1,481,217  1,548,624  1,714,918  1,766,132 
    Interest bearing deposits 5,086,724  5,127,863  5,122,124  4,687,889  4,442,248 
    Securities sold under agreements to repurchase 152,948  162,528  152,991  113,894  138,347 
    Federal funds purchased 10,029  9,961  12,852  11,518  11,646 
    Federal Home Loan Bank advances 400,000  200,000  200,000  350,000  400,000 
    Subordinated debentures 26,806  26,806  26,740  26,641  26,541 
    Accumulated other comprehensive income (loss) (94,980) (95,054) (92,798) (127,905) (107,416)
    Stockholders' equity 894,535  874,711  858,103  806,918  808,082 
                    
    Total shares outstanding 29,388  29,393  29,329  29,323  29,323 
    Book value per share (3) 30.44  $29.76  $29.26  $27.52  $27.56 
    Tangible common equity per share (3) 23.22  22.50  21.95  20.17  20.17 
    Market value per share 49.67  48.91  51.49  39.29  45.37 
                    
    Capital Ratios               
    Total stockholders' equity to total assets (3) 10.76%  10.77%  10.50%  10.21%  10.45% 
    Tangible common equity to tangible assets (3) 8.42%  8.36%  8.09%  7.69%  7.87% 
    Average stockholders' equity to average assets 10.65%  10.56%  10.07%  10.39%  10.53% 
    Total risk-based capital 12.62%  12.69%  12.56%  12.71%  12.78% 
    Common equity tier 1 risk-based capital 11.07%  11.11%  11.04%  11.17%  11.20% 
    Tier 1 risk-based capital 11.43%  11.49%  11.43%  11.57%  11.61% 
    Leverage 9.95%  9.82%  9.62%  9.80%  9.83% 
                    
    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    Second Quarter 2024 Earnings Release
                    
      Quarterly Comparison
    Average Balance Sheet Data 6/30/24
    		 3/31/24
    		 12/31/23
    		 9/30/23
    		 6/30/23
                    
    Federal funds sold and interest bearing due from banks $158,512  $153,990  $258,950  $124,653  $131,958 
    Mortgage loans held for sale 6,204  4,629  5,305  7,112  8,420 
    Investment securities 1,491,865  1,578,401  1,618,799  1,659,888  1,719,045 
    Federal Home Loan Bank stock 29,735  21,121  20,519  27,290  25,074 
    Loans 5,973,801  5,808,924  5,676,193  5,486,262  5,286,597 
    Total interest earning assets 7,660,117  7,567,065  7,579,766  7,305,205  7,171,094 
    Total assets 8,246,735  8,153,364  8,116,569  7,805,154  7,594,901 
    Non-interest bearing deposits 1,515,708  1,500,602  1,663,962  1,731,724  1,781,338 
    Interest bearing deposits 4,971,804  5,058,743  5,025,240  4,509,411  4,414,599 
    Total deposits 6,487,512  6,559,345  6,689,202  6,241,135  6,195,937 
    Securities sold under agreement to repurchase 147,327  164,979  130,148  127,063  113,051 
    Federal funds purchased 10,127  10,161  13,606  11,776  13,602 
    Federal Home Loan Bank advances 441,484  274,451  205,435  401,630  348,352 
    Subordinated debentures 26,806  26,794  26,706  26,606  26,508 
    Total interest bearing liabilities 5,597,548  5,535,128  5,401,135  5,076,486  4,916,112 
    Accumulated other comprehensive income (loss) (99,640) (95,747) (125,843) (112,329) (102,970)
    Total stockholders' equity 878,233  861,029  817,682  810,710  799,886 
                    
    Performance Ratios               
    Annualized return on average assets (4) 1.35%  1.28%  1.17%  1.38%  1.46% 
    Annualized return on average equity (4) 12.64%  12.09%  11.62%  13.26%  13.87% 
    Net interest margin, fully tax equivalent 3.26%  3.20%  3.25%  3.34%  3.42% 
    Non-interest income to total revenue, fully tax equivalent 27.58%  27.89%  28.22%  27.15%  27.24% 
    Efficiency ratio, fully tax equivalent (2) 57.26%  58.68%  57.80%  55.38%  54.57% 
                    
    Loans Segmentation               
    Commercial real estate - non-owner occupied $1,652,614  $1,609,483  $1,561,689  $1,557,977  $1,527,453 
    Commercial real estate - owner occupied 943,013  931,973  907,424  896,522  825,026 
    Commercial and industrial 1,356,970  1,293,696  1,307,128  1,251,027  1,233,642 
    Residential real estate - owner occupied 749,870  723,234  708,893  696,162  664,870 
    Residential real estate - non-owner occupied 365,846  360,958  358,715  349,624  337,961 
    Construction and land development 586,820  532,183  531,324  480,120  451,324 
    Home equity lines of credit 223,304  212,443  211,390  203,184  202,574 
    Consumer 151,221  145,022  145,340  143,703  139,602 
    Leases 17,258  16,619  15,503  14,710  13,967 
    Credit cards 24,047  24,104  23,632  24,055  22,190 
    Total loans and leases $6,070,963  $5,849,715  $5,771,038  $5,617,084  $5,418,609 
                    
    Asset Quality Data               
    Non-accrual loans $17,371  $13,984  $19,058  $17,227  $17,364 
    Modifications to borrowers experiencing financial difficulty -  -  -  -  - 
    Loans past due 90 days or more and still accruing 186  106  110  1  437 
    Total non-performing loans 17,557  14,090  19,168  17,228  17,801 
    Other real estate owned 10  10  10  427  677 
    Total non-performing assets $17,567  $14,100  $19,178  $17,655  $18,478 
    Non-performing loans to total loans 0.29%  0.24%  0.33%  0.31%  0.33% 
    Non-performing assets to total assets 0.21%  0.17%  0.23%  0.22%  0.24% 
    Allowance for credit losses on loans to total loans 1.35%  1.38%  1.38%  1.39%  1.43% 
    Allowance for credit losses on loans to average loans 1.38%  1.39%  1.40%  1.42%  1.47% 
    Allowance for credit losses on loans to non-performing loans 468%  574%  414%  453%  437% 
    Net (charge-offs) recoveries $183  $348  $(4,472) $(1,935) $(113)
    Net (charge-offs) recoveries to average loans (6) 0.00%  0.01%  -0.08%  -0.04%  -0.00% 
                    
    Other Information               
    Total assets under management (in millions) $7,479  $7,496  $7,160  $6,670  $6,976 
    Full-time equivalent employees 1,051  1,062  1,075  1,056  1,056 
                    
    (1) - Detail of Provision for credit losses follows:
      Quarterly Comparison
    (in thousands) 6/30/24
    		 3/31/24
    		 12/31/23
    		 9/30/23
    		 6/30/23
    Provision for credit losses - loans $1,075  $1,175  $5,771  $2,300  $2,150 
    Provision for credit losses - off balance sheet exposures 225  250  275  475  200 
    Total provision for credit losses $1,300  $1,425  $6,046  $2,775  $2,350 
                    
                    
    (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.
      Quarterly Comparison
    (Dollars in thousands) 6/30/24
    		 3/31/24
    		 12/31/23
    		 9/30/23
    		 6/30/23
    Total non-interest expenses (a) $49,109  $48,961  $50,013  $46,702  $45,800 
                    
    Total net interest income, fully tax equivalent $62,113  $60,167  $62,112  $61,437  $61,074 
    Total non-interest income 23,655  23,271  24,417  22,896  22,860 
    Total revenue - Non-GAAP (b) 85,768  83,438  86,529  84,333  83,934 
                    
    Efficiency ratio - Non-GAAP (a/b) 57.26%  58.68%  57.80%  55.38%  54.57% 
                    
                    
                    
    (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) 6/30/24
    		 3/31/24
    		 12/31/23
    		 9/30/23
    		 6/30/23
    Total stockholders' equity - GAAP (a) $894,535  $874,711  $858,103  $806,918  $808,082 
    Less: Goodwill (194,074) (194,074) (194,074) (194,074) (194,074)
    Less: Core deposit and other intangibles (18,201) (19,252) (20,304) (21,471) (22,638)
    Tangible common equity - Non-GAAP (c) $682,260  $661,385  $643,725  $591,373  $591,370 
                    
    Total assets - GAAP (b) $8,315,325  $8,123,128  $8,170,102  $7,903,430  $7,732,552 
    Less: Goodwill (194,074) (194,074) (194,074) (194,074) (194,074)
    Less: Core deposit and other intangibles (18,201) (19,252) (20,304) (21,471) (22,638)
    Tangible assets - Non-GAAP (d) $8,103,050  $7,909,802  $7,955,724  $7,687,885  $7,515,840 
                    
    Total stockholders' equity to total assets - GAAP (a/b) 10.76%  10.77%  10.50%  10.21%  10.45% 
    Tangible common equity to tangible assets - Non-GAAP (c/d) 8.42%  8.36%  8.09%  7.69%  7.87% 
                    
    Total shares outstanding (e) 29,388  29,393  29,329  29,323  29,323 
                    
    Book value per share - GAAP (a/e) $30.44  $29.76  $29.26  $27.52  $27.56 
    Tangible common equity per share - Non-GAAP (c/e) 23.22  22.50  21.95  20.17  20.17 
                    
    (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.
                    
    (5) - 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.
                    
    (6) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized.
                    



    Primary Logo

分享