• Stock Yards Bancorp Reports Solid Third Quarter Earnings of $27.1 Million or $0.92 Per Diluted Share

    来源: Nasdaq GlobeNewswire / 25 10月 2023 07:30:00   America/New_York

    Results Highlighted by Strong Loan Growth

    LOUISVILLE, Ky., Oct. 25, 2023 (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 $27.1 million, or $0.92 per diluted share, for the third quarter ended September 30, 2023. This compares to net income of $28.5 million, or $0.97 per diluted share, for the third quarter of 2022. The results for the third quarter of 2023 were highlighted by near-record loan growth, linked quarter deposit growth and strong levels of non-interest income.

        
    (dollar amounts in thousands, except per share data)3Q232Q233Q22
    Net income$27,092 $27,664 $   28,455 
    Net income per share, diluted         0.92          0.94          0.97 
        
    Net interest income$        61,315 $        60,929 $        62,376 
    Provision for credit losses(1) 2,775  2,350  4,803 
    Non-interest income 22,896  22,860  24,864 
    Non-interest expenses 46,702  45,800  44,873 
        
    Net interest margin 3.34% 3.42% 3.46%
    Efficiency ratio(2) 55.38% 54.57% 51.30%
    Tangible common equity to tangible assets(3) 7.69% 7.87% 6.78%
    Annualized return on average assets(4) 1.38% 1.46% 1.47%
    Annualized return on average equity(4) 13.26% 13.87% 14.85%
        

    “The highlight of the quarter was continued strong broad-based loan demand from our customers throughout our markets,” said James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Total loans, excluding PPP loans, increased $559 million, or 11%, over the last 12 months, of which $201 million was achieved during the third quarter. We remain positive about the opportunities in our markets, as loan pipelines and overall business activity remains steady. While there continues to be discussion of continued economic headwinds and the possibility for an industry-wide negative credit cycle, we remain optimistic regarding the overall strength of our loan portfolio. We continue to maintain strong credit fundamentals and our credit quality metrics continue to be solid. Our prospecting is really paying off, as some of the larger institutions in our markets are scaling back their lending efforts. While a more severe economic downturn could always impact loan growth expectations, we have consistently shown our ability to take advantage of strategic lending opportunities when others are pulling back. Our history demonstrates our ability to generate strong revenue and earnings growth, which is why we think we will continue to grow through this economic cycle.”

    “While we did experience net interest margin contraction for the third consecutive quarter, I am pleased with our continued loan yield expansion and linked quarter increase in net interest income. On the heels of two consecutive quarters of decline, deposit balances posted strong growth during the third quarter, increasing $194 million, or 3% growth for the linked quarter. A majority of the growth during the quarter was attributed to strategic deposit promotions within our markets. We continue to focus on organic growth, while avoiding brokered deposits, which provide less stable funding than local retail and commercial deposit relationships,” Hillebrand continued. “In addition to a significant shift in the mix of non-interest bearing and interest bearing deposits, we have experienced anticipated public funds run off throughout the year. When excluding public funds, we have posted total deposit growth in seven of the past nine months.”

    “Recurring non-interest income once again continues to fuel operating results, and was led by gains in several categories. Treasury management fees reached new highs at quarter-end, primarily driven by increased demand and customer expansion. In addition, Wealth Management and Trust (“WM&T) had another strong quarter, with net new business growth outweighing unfavorable market conditions. During challenging economic times, we remain focused on full customer relationships and the continued expansion of our customer base. Our history of success as a community bank is rooted in the unwavering, unified mission of providing exceptional service to our customers and meeting all of their banking and WM&T needs,” concluded Hillebrand.

    At September 30, 2023, the Company had $7.90 billion in assets, $5.62 billion in loans and $6.40 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 third quarter of 2023 results included:

    • Total loans, excluding PPP loans, increased $559 million, or 11%, over the last 12 months, while growing $201 million, or 4%, on the linked quarter. Loan production set a new quarterly record during the third quarter of 2023. The yield earned on loans, excluding PPP loans, expanded to 5.67% for the third quarter of 2023 – the highest level earned since mid-2011.
    • Deposit balances increased $194 million, or 3%, on the linked quarter, as interest bearing deposits increased $246 million and non-interest bearing deposits contracted by $51 million.
      • Interest bearing demand accounts increased $59 million, or 3%, attributed to promotional offerings in the Cincinnati and Indianapolis markets.
      • Money market accounts expanded $83 million, or 8%.
      • Time deposits grew by $131 million, or 18%, led by the successful marketing of new product promotions, primarily in the Central Kentucky market.
      • Given the current interest rate environment, the change in deposit mix continues to place pressure on funding costs.
    • Increasing cost of funds continued to outpace earning asset yield growth during the third quarter of 2023. Net interest income declined $1.1 million, or 2%, for the third quarter of 2023 compared to the third quarter a year ago with net interest margin compressing 12 bps to 3.34%. While net interest margin also declined on the linked quarter, contracting 8 basis points from 3.42%, net interest income increased $386,000.
    • With continued strong credit quality statistics, the Bank recorded a provision for credit losses(1) of $2.8 million for the third quarter of 2023, largely consistent with strong loan growth.
    • Non-interest income declined $2.0 million, or 8%, over the third quarter of 2022. The Company recognized $3.1 million in non-recurring gains on sales of premises and equipment in the third quarter of 2022 compared to $302,000 for the third quarter of 2023. New business growth drove WM&T income, and treasury management fees once again set a quarterly record.
    • Total non-interest expenses remained well-controlled and consistent with management expectations.
    • Tangible common equity per share(3) was $20.17 at September 30, 2023, compared to $20.17 at June 30, 2023, and $16.98 at September 30, 2022. Over the past several quarters, tangible common equity and tangible book value have been impacted by the marked increase in interest rates and the related negative impact on accumulated other comprehensive income/loss, primarily as a result of unrealized losses in the available for sale debt securities portfolio. These securities, which management has the ability and intent to hold to maturity, are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, have a long history of no credit losses and a current duration of 5.5 years.

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

    Net interest income, the Company’s largest source of revenue, decreased by $1.1 million, or 2%, to $61.3 million. Although strong organic loan growth has 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 $21.5 million, or 32%, to $88.9 million.
      • Interest income and fees on loans increased $21.5 million, or 38%, over the prior year quarter. Consistent with the $554 million, or 11%, increase in average non-PPP loans and interest rate expansion, the average quarterly yield earned on non-PPP loans increased 114 basis points, or 25%, over the past 12 months to 5.67%. PPP interest and fee income totaled $27,000 and $703,000 for the third quarters of 2023 and 2022, respectively. As of September 30, 2023, approximately $100,000 in PPP deferred fees remained to be recognized.
      • Interest income on securities increased $562,000, or 7%, compared to the third quarter of 2022. While average securities balances have declined $110 million, or 6%, over the past 12 months, the rate earned on securities has increased 24 bps to 2.04%, consistent with higher yields earned on securities purchased in 2022.
      • Due to a $318 million decline in average balances, interest income on overnight funds decreased $810,000, or 33%, over the prior year quarter. The Federal Reserve Bank (FRB) has increased the rate paid on reserve balances meaningfully during the last several quarters, which has significantly benefitted related interest income.
    • Total interest expense increased $22.6 million to $27.6 million, as the cost of interest bearing liabilities increased 173 basis points to 2.16%.
      • Interest expense on deposits increased $16.9 million over the past 12 months, as the overall cost of interest bearing deposits increased from 0.40% for the third quarter of 2022 to 1.88%. Deposit costs during the third quarter of 2023 have been significantly impacted by individual rate exceptions and successful new product promotions. Along with cost of funds expansion, the Bank has experienced changes in the mix of deposits. Average interest bearing deposit balances increased $64 million, or 1%, from the third quarter of 2022 to the third quarter of 2023, with non-time deposits (interest bearing demand savings and money markets) compressing $231 million and time deposits increasing $295 million.
      • Interest expense on Federal Home Loan Bank (FHLB) advances totaled $4.9 million for the third quarter of 2023. The Bank had $350 million in FHLB advances outstanding at the end of the third quarter of 2023, with $150 million of the advances maturing overnight.

    The Company recorded $2.8 million in provision for credit losses(1) during the third quarter of 2023, which included a $2.3 million provision for credit losses on loans and $475,000 of credit loss expense for off-balance sheet exposures. Although credit quality statistics remain strong, the Company recorded credit loss expense based upon strong loan growth offset by improvement in the future unemployment forecast and a reduction in specific reserves due to charge-offs. The increased off-balance sheet exposure expense correlated with increased availability and falling utilization. For the third quarter of 2022, consistent with strong loan growth and deterioration within the future unemployment rate forecast, the Company recorded a $4.1 million provision for credit losses on loans and a $700,000 provision for credit losses for off balances sheet exposures.

    Non-interest income decreased $2.0 million, or 8%, to $22.9 million.

    • WM&T income ended the third quarter of 2023 at $10.0 million, increasing $878,000, or 10%, over the third quarter of 2022. Net new business growth has boosted income over the past twelve months.
    • Treasury management fees set a quarterly record, increasing $414,000, or 19%, driven by increased transaction volume, modified fee schedules, strong foreign exchange income, new product sales and both organic and acquisition-related customer base expansion.
    • Card income increased $160,000, or 3%, over the third quarter of 2022, driven by a $153,000 overall increase in interchange income. While card volume has increased over the past several periods, interchange rate compression has placed pressure on income expansion.
    • The Company recognized $3.1 million in non-recurring gains on sales of premises and equipment in the third quarter of 2022 compared to $302,000 for the third quarter of 2023. All sales related to the disposition of acquired branches closed subsequent to the prior year merger.

    Non-interest expenses increased $1.8 million, or 4%, compared to the third quarter of 2022, to $46.7 million.

    • Compensation and employee benefits expense combined to increase $639,000, or 2%, compared to the third quarter of 2022 consistent with an increase in full time equivalent employees.
    • 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 $489,000, or 13%, consistent with customer expansion and increased transaction activity.
    • Intangible amortization expense decreased $443,000, or 28%, consistent with the Company’s fourth quarter 2022 disposal of its partial interest in Landmark Financial Advisors.

    Financial Condition – September 30, 2023 Compared with September 30, 2022

    Total assets increased $349 million, or 5%, year over year to $7.90 billion.

    Total loans increased $544 million, or 11%, to $5.62 billion, with over half of the growth stemming from the commercial real estate portfolio. Excluding the PPP loan portfolio, total loans increased $559 million over the past 12 months.

    Total investment securities, which spiked during the second quarter of 2021 and the first quarter of 2022 due to acquisitions, decreased $162 million, or 10%, year over year. Higher yielding investment purchases made in 2022 boosted the overall portfolio yield to 2.04% during the third quarter of 2023, from 1.80% in the third 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 contracted $98 million, or 2%, over the past 12 months, led by a $485 million decline in non-interest bearing demand deposits, partially offset by interest bearing demand and time deposit expansion. Approximately $64 million of the decline was associated with public funds run-off.

    Asset quality has remained strong during 2023. During the third quarter of 2023, the Company recorded net loan charge-offs of $1.9 million, primarily related to three commercial & industrial relationships, the largest being $1.2 million that was fully reserved for in a prior period. This compared to $382,000 in net charge offs during the third quarter of 2022. Non-performing loans(5) totaled $17 million, or 0.31% of total loans outstanding compared to $11 million, or 0.21% of total loans outstanding at September 30, 2022. The ratio of allowance for credit losses to loans (5) ended at 1.39% at September 30, 2023 compared to 1.38% at September 30, 2022.

    At September 30, 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 10.21% and the tangible common equity ratio(3) was 7.69% at September 30, 2023, compared to 9.63% and 6.78% at September 30, 2022, respectively. The increase in interest rates over the last 12 months have led to outsized unrealized losses within the available for sale debt securities portfolio, with the decline in accumulated other comprehensive income/loss putting pressure on the tangible common equity ratio, which has been steadily improving subsequent to acquisition activity in 2022 and 2021.

    In August 2023, the board of directors increased the quarterly cash dividend to $0.30 per common share. The dividend was paid October 2, 2023, to shareholders of record as of September 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 – Third Quarter 2023 Compared with Second Quarter 2023

    Net interest income increased $386,000, or 1%, over the prior quarter to $61.3 million. Net interest margin declined 8 basis points on the linked quarter to 3.34%, as cost of funds growth outpaced earning asset yield growth.

    The Company recorded $2.8 million in provision for credit losses(1) during the third quarter of 2023, which included a $2.3 million provision for credit losses on loans and $475,000 of credit loss expense for off-balance sheet exposures. During the second quarter of 2023, the Company recorded $2.4 million in provision for credit losses, which included a $2.2 million provision for credit losses on loans and a $200,000 credit loss expense for off-balance sheet exposures.

    Non-interest income increased $36,000 to $22.9 million on the linked quarter, consistent with expansion in treasury management fees and card income. On the linked quarter, WM&T income declined $116,000, or 1%, consistent with a downturn in both fixed and equity markets.

    Non-interest expenses increased $902,000, or 2%, to $46.7 million, as increased compensation, net occupancy expense and consulting project expenses more than off-set declines in employee benefits and marketing and business development expense.

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

    Total assets increased $171 million on the linked quarter to $7.90 billion.

    Total loans increased $198 million, or 4%, on the linked quarter, led by increases in the Commercial real estate, Commercial & industrial and Construction and land development loan portfolios. Total line of credit usage was 38.8% as of September 30, 2023, compared to 40.1% as of June 30, 2023, driven by strong production (new lines that have yet to fund). Commercial & Industrial line usage was 26.8% as of September 30, 2023, compared to 29.6% as of June 30, 2023.

    Total deposits increased $194 million, or 3%, on the linked quarter. Total interest bearing deposits increased $246 million, on the linked quarter, as a $131 million increase in time deposits, $59 million increase in interest bearing demand deposits and $83 million increase in money market accounts more than offset by contraction in non-interest bearing demand and savings accounts. Excluding public funds, total deposits increased $267 million on the linked quarter.

    About the Company

    Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $7.90 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)        
    Third Quarter 2023 Earnings Release        
    (In thousands unless otherwise noted)        
      Three Months Ended Nine Months Ended
      September 30, September 30,
    Income Statement Data 2023 2022 2023 2022
             
    Net interest income, fully tax equivalent (6) $ 61,437 $ 62,608 $ 185,757 $ 168,797
    Interest income:        
    Loans $ 78,234 $ 56,750 $ 219,329 $ 152,105
    Federal funds sold and interest bearing due from banks 1,640 2,450 4,885 3,845
    Mortgage loans held for sale 55 103 173 177
    Securities 8,996 8,107 27,068 20,375
    Total interest income 88,925 67,410 251,455 176,502
    Interest expense:        
    Deposits 21,360 4,449 51,940 7,390
    Securities sold under agreements to repurchase and        
    other short-term borrowings 754 226 1,933 322
    Federal Home Loan Bank advances 4,917 - 10,613 -
    Subordinated debentures 579 359 1,653 670
    Total interest expense 27,610 5,034 66,139 8,382
    Net interest income 61,315 62,376 185,316 168,120
    Provision for credit losses (1) 2,775 4,803 7,750 6,882
    Net interest income after provision for credit losses 58,540 57,573 177,566 161,238
    Non-interest income:        
    Wealth management and trust services 10,030 9,152 29,703 26,890
    Deposit service charges 2,272 2,179 6,622 6,103
    Debit and credit card income 4,870 4,710 14,064 13,577
    Treasury management fees 2,635 2,221 7,502 6,312
    Mortgage banking income 814 703 2,882 3,001
    Net investment product sales commissions and fees 791 892 2,345 2,230
    Bank owned life insurance 569 516 1,677 1,052
    Gain (Loss) on sale of premises and equipment 302 3,074 75 3,046
    Other 613 1,417 2,933 3,796
    Total non-interest income 22,896 24,864 67,803 66,007
    Non-interest expenses:        
    Compensation 23,379 23,069 67,382 63,242
    Employee benefits 4,508 4,179 14,622 13,147
    Net occupancy and equipment 3,821 3,767 11,234 10,455
    Technology and communication 4,236 3,747 12,706 11,150
    Debit and credit card processing 1,637 1,437 4,762 4,439
    Marketing and business development 1,357 1,244 4,236 3,461
    Postage, printing and supplies 938 903 2,701 2,461
    Legal and professional 1,049 774 2,665 2,451
    FDIC Insurance 937 847 2,851 2,028
    Amortization of investments in tax credit partnerships 323 88 970 265
    Capital and deposit based taxes 629 722 1,875 1,822
    Merger expenses - - - 19,500
    Intangible amortization 1,167 1,610 3,519 3,934
    Other 2,721 2,486 8,293 7,490
    Total non-interest expenses 46,702 44,873 137,816 145,845
    Income before income tax expense 34,734 37,564 107,553 81,400
    Income tax expense 7,642 9,024 23,749 18,016
    Net income 27,092 28,540 83,804 63,384
    Less: net income attributed to non-controlling interest - 85 - 229
    Net income available to stockholders $ 27,092 $ 28,455 $ 83,804 $ 63,155
             
    Net income per share - Basic $ 0.93 $ 0.98 $ 2.87 $ 2.22
    Net income per share - Diluted 0.92 0.97 2.86 2.20
    Cash dividend declared per share 0.30 0.29 0.88 0.85
             
    Weighted average shares - Basic 29,223 29,144 29,208 28,509
    Weighted average shares - Diluted 29,336 29,404 29,347 28,752
             
        September 30,
    Balance Sheet Data      2023 2022
             
    Investment securities     $ 1,465,463 $ 1,627,298
    Loans     5,617,084 5,072,877
    Allowance for credit losses on loans     78,075 70,083
    Total assets     7,903,430 7,554,210
    Non-interest bearing deposits     1,714,918 2,200,041
    Interest bearing deposits     4,687,889 4,300,732
    Federal Home Loan Bank advances     350,000 -
    Stockholders' equity     806,918 727,754
    Total shares outstanding     29,323 29,242
    Book value per share (3)     $ 27.52 $ 24.89
    Tangible common equity per share (3)     20.17 16.98
    Market value per share     39.29 68.01
             
    Stock Yards Bancorp, Inc. Financial Information (unaudited)        
    Third Quarter 2023 Earnings Release        
             
      Three Months Ended Nine Months Ended
      September 30, September 30,
    Average Balance Sheet Data 2023 2022 2023 2022
             
    Federal funds sold and interest bearing due from banks $ 124,653 $ 442,880 $ 132,421 $ 557,578
    Mortgage loans held for sale 7,112 8,694 7,333 9,542
    Investment securities 1,659,888 1,769,597 1,710,838 1,631,212
    Federal Home Loan Bank stock 27,290 11,712 22,663 12,015
    Loans 5,486,262 4,948,898 5,337,493 4,726,371
    Total interest earning assets 7,305,205 7,181,781 7,210,748 6,936,718
    Total assets 7,805,154 7,661,720 7,660,658 7,398,311
    Interest bearing deposits 4,509,411 4,444,983 4,468,160 4,370,839
    Total deposits 6,241,135 6,614,263 6,264,746 6,409,007
    Securities sold under agreement to repurchase 127,063 139,749 120,740 123,845
    Federal Home Loan Bank advances 401,630 - 305,220 -
    Subordinated debentures 26,606 26,210 26,508 20,191
    Total interest bearing liabilities 5,076,486 4,619,927 4,934,485 4,524,390
    Total stockholders' equity 810,710 760,322 796,172 738,391
             
    Performance Ratios        
    Annualized return on average assets (4) 1.38% 1.47% 1.46% 1.14%
    Annualized return on average equity (4) 13.26% 14.85% 14.07% 11.44%
    Net interest margin, fully tax equivalent 3.34% 3.46% 3.44% 3.25%
    Non-interest income to total revenue, fully tax equivalent 27.15% 28.43% 26.74% 28.11%
    Efficiency ratio, fully tax equivalent (2) 55.38% 51.30% 54.35% 62.11%
             
    Capital Ratios        
    Total stockholders' equity to total assets (3)     10.21% 9.63%
    Tangible common equity to tangible assets (3)     7.69% 6.78%
    Average stockholders' equity to average assets     10.39% 9.98%
    Total risk-based capital     12.71% 12.16%
    Common equity tier 1 risk-based capital     11.17% 10.69%
    Tier 1 risk-based capital     11.57% 11.13%
    Leverage     9.80% 8.85%
             
    Loan Segmentation        
    Commercial real estate - non-owner occupied     $ 1,508,615 $ 1,415,180
    Commercial real estate - owner occupied     945,122 819,727
    Commercial and industrial     1,246,200 1,170,241
    Commercial and industrial - PPP     4,827 19,469
    Residential real estate - owner occupied     696,162 557,638
    Residential real estate - non-owner occupied     350,386 302,936
    Construction and land development     480,120 414,632
    Home equity lines of credit     203,184 199,485
    Consumer     143,703 138,843
    Leases     14,710 13,959
    Credit cards     24,055 20,767
    Total loans and leases     $ 5,617,084 $ 5,072,877
             
    Asset Quality Data        
    Non-accrual loans     $ 17,227 $ 10,580
    Troubled debt restructurings     - -
    Loans past due 90 days or more and still accruing     1 32
    Total non-performing loans     17,228 10,612
    Other real estate owned     427 996
    Total non-performing assets     $ 17,655 $ 11,608
    Non-performing loans to total loans (5)     0.31% 0.21%
    Non-performing assets to total assets     0.22% 0.15%
    Allowance for credit losses on loans to total loans (5)     1.39% 1.38%
    Allowance for credit losses on loans to average loans     1.46% 1.48% 
    Allowance for credit losses on loans to non-performing loans     453% 660%
    Net (charge-offs) recoveries $ (1,935) $ (382) $ (2,156) $ 153
    Net (charge-offs) recoveries to average loans (7) -0.04% -0.01% -0.04% 0.00%
             
    Stock Yards Bancorp, Inc. Financial Information (unaudited)        
    Third Quarter 2023 Earnings Release        
             
      Quarterly Comparison
    Income Statement Data 9/30/23 6/30/23 3/31/23 12/31/22
             
    Net interest income, fully tax equivalent (6) $ 61,437 $ 61,074 $ 63,245 $ 65,469
    Net interest income $ 61,315 $ 60,929 $ 63,072 $ 65,263
    Provision for credit losses (1) 2,775 2,350 2,625 3,375
    Net interest income after provision for credit losses 58,540 58,579 60,447 61,888
    Non-interest income:        
    Wealth management and trust services 10,030 10,146 9,527 9,221
    Deposit service charges 2,272 2,201 2,149 2,183
    Debit and credit card income 4,870 4,712 4,482 5,046
    Treasury management fees 2,635 2,549 2,318 2,278
    Mortgage banking income 814 1,030 1,038 209
    Net investment product sales commissions and fees 791 800 754 833
    Bank owned life insurance 569 559 549 545
    Gain (Loss) on sale of premises and equipment 302 (225) (2) 1,295
    Other 613 1,088 1,232 1,532
    Total non-interest income 22,896 22,860 22,047 23,142
    Non-interest expenses:        
    Compensation 23,379 22,107 21,896 23,398
    Employee benefits 4,508 5,061 5,053 3,421
    Net occupancy and equipment 3,821 3,514 3,899 3,843
    Technology and communication 4,236 4,219 4,251 3,747
    Debit and credit card processing 1,637 1,706 1,419 1,470
    Marketing and business development 1,357 1,784 1,095 1,544
    Postage, printing and supplies 938 889 874 893
    Legal and professional 1,049 819 797 492
    FDIC Insurance 937 779 1,135 730
    Amortization of investments in tax credit partnerships 323 324 323 88
    Capital and deposit based taxes 629 607 639 799
    Merger expenses - - - -
    Intangible amortization 1,167 1,172 1,180 1,610
    Loss on disposition of Landmark Financial Advisors - - - 870
    Other 2,721 2,819 2,753 3,041
    Total non-interest expenses 46,702 45,800 45,314 45,946
    Income before income tax expense 34,734 35,639 37,180 39,084
    Income tax expense 7,642 7,975 8,132 9,174
    Net income 27,092 27,664 29,048 29,910
    Less: net income attributed to non-controlling interest - - - 93
    Net income available to stockholders $ 27,092 $ 27,664 $ 29,048 $ 29,817
             
             
    Net income per share - Basic $ 0.93 $ 0.95 $ 1.00 $ 1.02
    Net income per share - Diluted 0.92 0.94 0.99 1.01
    Cash dividend declared per share 0.30 0.29 0.29 0.29
             
    Weighted average shares - Basic 29,223 29,223 29,178 29,157
    Weighted average shares - Diluted 29,336 29,340 29,365 29,428
             
      Quarterly Comparison
    Balance Sheet Data 9/30/23 6/30/23 3/31/23 12/31/22
             
    Cash and due from banks $ 79,538 $ 111,126 $ 87,922 $ 82,515
    Federal funds sold and interest bearing due from banks 113,499 103,204 229,076 84,852
    Mortgage loans held for sale 6,535 7,069 6,397 2,606
    Investment securities 1,465,453 1,542,753 1,600,603 1,617,834
    Federal Home Loan Bank stock 26,241 27,366 23,226 10,928
    Loans 5,617,084 5,418,609 5,243,104 5,205,918
    Allowance for credit losses on loans 78,075 77,710 75,673 73,531
    Goodwill 194,074 194,074 194,074 194,074
    Total assets 7,903,430 7,732,552 7,667,648 7,496,261
    Non-interest bearing deposits 1,714,918 1,766,132 1,845,302 1,950,198
    Interest bearing deposits 4,687,889 4,442,248 4,511,893 4,441,054
    Securities sold under agreements to repurchase 113,894 138,347 104,578 133,342
    Federal funds purchased 11,518 11,646 14,745 8,789
    Federal Home Loan Bank advances 350,000 400,000 275,000 50,000
    Subordinated debentures 26,641 26,541 26,442 26,343
    Stockholders' equity 806,918 808,082 794,368 760,432
    Total shares outstanding 29,323 29,323 29,324 29,259
    Book value per share (3) $ 27.52 $ 27.56 $ 27.09 $ 25.99
    Tangible common equity per share (3) 20.17 20.17 19.66 18.50
    Market value per share 39.29 45.37 55.14 64.98
             
    Capital Ratios        
    Total stockholders' equity to total assets (3) 10.21% 10.45% 10.36% 10.14%
    Tangible common equity to tangible assets (3) 7.69% 7.87% 7.74% 7.44%
    Average stockholders' equity to average assets 10.39% 10.53% 10.26% 9.79%
    Total risk-based capital 12.71% 12.78% 12.91% 12.54%
    Common equity tier 1 risk-based capital 11.17% 11.20% 11.30% 11.04%
    Tier 1 risk-based capital 11.57% 11.61% 11.73% 11.47%
    Leverage 9.80% 9.83% 9.56% 9.33%
             
    Stock Yards Bancorp, Inc. Financial Information (unaudited)        
    Third Quarter 2023 Earnings Release        
             
      Quarterly Comparison
    Average Balance Sheet Data 9/30/23 6/30/23 3/31/23 12/31/22
             
    Federal funds sold and interest bearing due from banks $ 124,653 $ 131,958 $ 140,831 $ 235,448
    Mortgage loans held for sale 7,112 8,420 6,460 6,735
    Investment securities 1,659,888 1,719,045 1,754,620 1,786,383
    Loans 5,486,262 5,286,597 5,236,879 5,094,356
    Total interest earning assets 7,305,205 7,171,094 7,154,286 7,133,850
    Total assets 7,805,154 7,594,901 7,579,439 7,559,260
    Interest bearing deposits 4,509,411 4,414,599 4,480,151 4,428,582
    Total deposits 6,241,135 6,195,937 6,358,458 6,526,440
    Securities sold under agreement to repurchase 127,063 113,051 122,049 117,138
    Federal Home Loan Bank advances 401,630 348,352 163,056 1,087
    Subordinated debentures 26,606 26,508 26,408 26,309
    Total interest bearing liabilities 5,076,486 4,916,112 4,807,907 4,582,005
    Total stockholders' equity 810,710 799,886 777,555 740,007
             
    Performance Ratios        
    Annualized return on average assets (4) 1.38% 1.46% 1.55% 1.56%
    Annualized return on average equity (4) 13.26% 13.87% 15.15% 15.99%
    Net interest margin, fully tax equivalent 3.34% 3.42% 3.59% 3.64%
    Non-interest income to total revenue, fully tax equivalent 27.15% 27.24% 25.85% 26.12%
    Efficiency ratio, fully tax equivalent (2) 55.38% 54.57% 53.13% 51.85%
             
    Loans Segmentation        
    Commercial real estate - non-owner occupied $ 1,508,615 $ 1,477,733 $ 1,421,660 $ 1,397,346
    Commercial real estate - owner occupied 945,122 873,980 850,766 834,629
    Commercial and industrial 1,246,200 1,226,554 1,205,222 1,230,976
    Commercial and industrial - PPP 4,827 7,088 9,557 18,593
    Residential real estate - owner occupied 696,162 664,870 620,417 591,515
    Residential real estate - non-owner occupied 350,386 338,727 323,519 313,248
    Construction and land development 480,120 451,324 439,673 445,690
    Home equity lines of credit 203,184 202,574 200,933 200,725
    Consumer 143,703 139,602 136,412 139,461
    Leases 14,710 13,967 13,207 13,322
    Credit cards 24,055 22,190 21,738 20,413
    Total loans and leases $ 5,617,084 $ 5,418,609 $ 5,243,104 $ 5,205,918
             
    Asset Quality Data        
    Non-accrual loans $ 17,227 $ 17,364 $ 17,389 $ 14,242
    Troubled debt restructurings - - - -
    Loans past due 90 days or more and still accruing 1 437 894 892
    Total non-performing loans 17,228 17,801 18,283 15,134
    Other real estate owned 427 677 677 677
    Total non-performing assets $ 17,655 $ 18,478 $ 18,960 $ 15,811
    Non-performing loans to total loans (5) 0.31% 0.33% 0.35% 0.29%
    Non-performing assets to total assets 0.22% 0.24% 0.25% 0.21%
    Allowance for credit losses on loans to total loans (5) 1.39% 1.43% 1.44% 1.41%
    Allowance for credit losses on loans to average loans 1.42% 1.47% 1.45% 1.44%
    Allowance for credit losses on loans to non-performing loans 453% 437% 414% 486%
    Net (charge-offs) recoveries $ (1,935) $ (113) $ (108) $ (152)
    Net (charge-offs) recoveries to average loans (7) -0.04% -0.00% -0.00% -0.00%
             
    Other Information        
    Total assets under management (in millions) $ 6,670 $ 6,976 $ 6,764 $ 6,585
    Full-time equivalent employees 1,067 1,064 1,044 1,040
             
    (1) - Detail of Provision for credit losses follows:
      Quarterly Comparison
    (in thousands) 9/30/23 6/30/23 3/31/23 12/31/22
    Provision for credit losses - loans $ 2,300 $ 2,150 $ 2,250 $ 3,600
    Provision for credit losses - off balance sheet exposures 475 200 375 (225)
    Total provision for credit losses $ 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) 9/30/23 6/30/23 3/31/23 12/31/22
    Total non-interest expenses (a) $ 46,702 $ 45,800 $ 45,314 $ 45,946
      Less: Loss on disposition of Landmark Financial Advisors - - - (870)
      Less: Amortization of investments in tax credit partnerships (323) (324) (323) (88)
    Total non-interest expenses - Non-GAAP (c) $ 46,379 $ 45,476 $ 44,991 $ 44,988
             
    Total net interest income, fully tax equivalent $ 61,437 $ 61,074 $ 63,245 $ 65,469
    Total non-interest income 22,896 22,860 22,047 23,142
    Total revenue - Non-GAAP (b) 84,333 83,934 85,292 88,611
      Less: Gain/loss on sale of premises and equipment (302) 225 2 (1,295)
      Less: Gain/loss on sale of securities - - - -
    Total adjusted revenue - Non-GAAP (d) $ 84,031 $ 84,159 $ 85,294 $ 87,316
             
    Efficiency ratio - Non-GAAP (a/b) 55.38% 54.57% 53.13% 51.85%
    Adjusted efficiency ratio - Non-GAAP (c/d) 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) 9/30/23 6/30/23 3/31/23 12/31/22
    Total stockholders' equity - GAAP (a) $ 806,918 $ 808,082 $ 794,368 $ 760,432
      Less: Goodwill (194,074) (194,074) (194,074) (194,074)
      Less: Core deposit and other intangibles (21,471) (22,638) (23,810) (24,990)
    Tangible common equity - Non-GAAP (c) $ 591,373 $ 591,370 $ 576,484 $ 541,368
             
    Total assets - GAAP (b) $ 7,903,430 $ 7,732,552 $ 7,667,648 $ 7,496,261
      Less: Goodwill (194,074) (194,074) (194,074) (194,074)
      Less: Core deposit and other intangibles (21,471) (22,638) (23,810) (24,990)
    Tangible assets - Non-GAAP (d) $ 7,687,885 $ 7,515,840 $ 7,449,764 $ 7,277,197
             
    Total stockholders' equity to total assets - GAAP (a/b) 10.21% 10.45% 10.36% 10.14%
    Tangible common equity to tangible assets - Non-GAAP (c/d) 7.69% 7.87% 7.74% 7.44%
             
    Total shares outstanding (e) 29,323 29,323 29,324 29,259
             
    Book value per share - GAAP (a/e) $ 27.52 $ 27.56 $ 27.09 $ 25.99
    Tangible common equity per share - Non-GAAP (c/e) 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. As a result of the substantial impact of non-recurring items related to the Commonwealth Bancshares and Kentucky Bancshares acquisitions, Bancorp 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 and the disposition of any acquired assets, merger-related expenses and purchase accounting adjustments.
     
      Quarterly Comparison
    (Dollars in thousands) 9/30/23 6/30/23 3/31/23 12/31/22
             
    Net income attributable to stockholders - GAAP (a) $ 27,092 $ 27,664 $ 29,048 $ 29,817
      Add: Loss on disposition of Landmark Financial Advisors - - - 870
      Less: Gain/loss on sale of premises and equipment (302) 225 2 (1,295)
      Less: Tax effect of adjustments to net income 66 (50) - 100
    Total net income - Non-GAAP (b) $ 26,856 $ 27,664 $ 29,050 $ 29,492
             
    Total average assets (c) $ 7,805,154 $ 7,594,901 $ 7,579,439 $ 7,559,260
             
    Total average stockholder equity (d) 810,710 799,886 777,555 740,007
             
    Return on average assets - GAAP (a/c) 1.38% 1.46% 1.55% 1.56%
    Return on average assets - Non-GAAP (b/c) 1.37% 1.46% 1.55% 1.55%
             
    Return on average equity - GAAP (a/d) 13.26% 13.87% 15.15% 15.99%
    Return on average equity - Non-GAAP (b/d) 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) 9/30/23 6/30/23 3/31/23 12/31/22
             
    Total Loans - GAAP (a) $ 5,617,084 $ 5,418,609 $ 5,243,104 $ 5,205,918
      Less: PPP loans (4,827) (7,088) (9,557) (18,593)
    Total non-PPP Loans - Non-GAAP (b) $ 5,612,257 $ 5,411,521 $ 5,233,547 $ 5,187,325
             
    Allowance for credit losses on loans (c) $ 78,075 $ 77,710 $ 75,673 $ 73,531
    Total non-performing loans (d) 17,228 17,801 18,283 15,134
             
    Allowance for credit losses on loans to total loans - GAAP (c/a) 1.39% 1.43% 1.44% 1.41%
    Allowance for credit losses on loans to total loans - Non-GAAP (c/b) 1.39% 1.44% 1.45% 1.42%
             
    Non-performing loans to total loans - GAAP (d/a) 0.31% 0.33% 0.35% 0.29%
    Non-performing loans to total loans - Non-GAAP (d/b) 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.


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