Stock Yards Bancorp Again Posts Record Net Income as Third Quarter 2016 Earnings Increase 13% to $10.5
Million
Diluted Earnings Per Share Increase 12% to a Record $0.46 for the Quarter
Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the
Louisville, Indianapolis and Cincinnati metropolitan markets, today reported results for the third quarter and nine months ended
September 30, 2016. Net income for the third quarter of 2016 increased 13% to $10.5 million or $0.46 per diluted share from $9.3
million or $0.41 per diluted share for the third quarter of 2015. Net income for the nine months ended September 30, 2016,
increased 10% to $30.4 million or $1.34 per diluted share from $27.5 million or $1.23 per diluted share. Please note that all per
share information in this release has been adjusted for and reflects the three-for-two stock split distributed in May 2016.
The Company's performance for the third quarter of 2016 reflected several positive factors, including:
- Robust organic net loan growth, building on momentum witnessed over the past several years;
- Credit quality at historically strong levels;
- Growing fee income lead by revenue from the Company's wealth management and trust services; and
- Solid returns on average assets and equity of 1.44% and 13.47%, respectively.
"Stock Yards Bancorp turned in another exceptional performance for the third quarter of 2016, with record net income for the
second consecutive quarter," said David P. Heintzman, Chairman and Chief Executive Officer. "Considering the low-rate environment
in which we find ourselves, we believe a 13% increase in net income for the quarter – together with strong loan growth, higher fee
income and a solid return on assets – continues to set the Company apart from many of its peers and demonstrates why Stock Yards
Bancorp is considered one of the country's best-performing community banks.
"The foundation of our growth remains on the banking side of our business, where production and net loans have continued to
increase throughout the past year," Heintzman continued. "Importantly, this success reflects ongoing expansion in key categories,
like commercial and industrial lending and owner-occupied commercial real estate, which are at the center of our long-term
strategy. We also continue to limit our exposure to commercial real estate lending and remain well under regulatory guidelines for
that category. With 9% net loan growth through the first nine months of the year and a 14% increase for the trailing 12 months,
together with a strong pipeline as we head into the final quarter of 2016, we continue to expect a good earnings lift going forward
from our expanding loan portfolio.
"In tandem with the success of our lenders, we are pleased to note ongoing strength in our fee-based businesses, which generated
31.4% of our revenue in the third quarter of 2016, up from 31.0% for the second quarter and 31.1% in the year-earlier period,"
Heintzman added. "This proportional increase represents quite a feat considering our ongoing loan growth and the related interest
income effect it has produced."
Heintzman pointed out that revenue from wealth management and trust services continues to lead the increase in fee income.
Wealth management and trust's revenue is accelerating due largely to new account growth, with approximately $2.4 billion in assets
under management as of September 30, 2016. Other factors affecting its revenue included nonrecurring fees, such as those earned for
estate settlement and the administration of company-sponsored retirement plans, as well as positive returns in the overall
securities markets. The performance of the Bank's mortgage banking department also remained strong in the third quarter of 2016,
with higher revenue versus both the second quarter and the year-earlier period.
Concluding, Heintzman said, "We are very pleased with Stock Yards Bancorp's progress through the first nine months of 2016,
measured in terms of both growth and asset quality. The Company's efforts behind these improvements have now culminated in
back-to-back quarters of record net income. We also are encouraged by the momentum we see still building in lending and fee-based
revenue. Together, these factors continue to position our company to deliver predictable, reliable earnings growth and, in turn,
provide greater returns to our stockholders."
Total assets increased $314 million or 12% at September 30, 2016, to $2.94 billion from $2.62 billion at September 30, 2015.
Driving this increase was ongoing growth in the Company's loan portfolio, which rose $268 million or 14% to $2.22 billion at
September 30, 2016, from $1.95 billion at September 30, 2015. The Company continues to provide substantial support for its
balance sheet growth through increased deposits. Total deposits increased $249 million or 12% to $2.39 billion at September 30,
2016, from $2.14 billion at September 30, 2015, reflecting growth in existing accounts as well as the addition of new accounts
during the past year. On a linked-quarter basis, total deposits increased slightly due to increases in money market deposits and
non-interest bearing demand deposits, which more than offset a decrease in interest-bearing demand deposits. Core deposits, which
exclude brokered deposits and time deposits greater than $250,000, held steady at 98.5% of total deposits as of September 30,
2016.
The Company continued to sustain strong capital levels in the third quarter of 2016, remaining "well capitalized" – the highest
capital rating for financial institutions. Stock Yards Bancorp's tangible common equity ratio as of September 30, 2016, was 10.54%
(tangible common equity is a non-GAAP financial measure; see reconciliation of total stockholders' equity to tangible common equity
and total assets to tangible assets later in this release).
With its balance sheet strength, Stock Yards Bancorp has continued to pursue capital strategies to enhance stockholder value,
highlighted by seven increases in the cash dividend rate during the past five years for a cumulative increase of approximately 50%
since 2011. Meanwhile, the Company has maintained its financial flexibility to pursue strategic expansion and acquisition
opportunities that may arise. While some may view the Company's capital level as unnecessarily high, management believes Stock
Yards Bancorp is in an enviable position of being able to maintain high levels of capital for strength and stability while, at the
same time, producing strong returns on stockholders' equity.
Net interest income – the Company's largest source of revenue – increased $2.7 million or 12% to $24.8 million in the third
quarter of 2016 from $22.1 million in the prior-year quarter. The increase reflected the impact of further growth in the loan
portfolio together with a reduction in interest costs. Net interest income increased $6.7 million or 10% to $72.2 million in the
first nine months of 2016 from $65.5 million in the prior-year period, reflecting the same factors.
As anticipated, net interest margin (on a fully tax-equivalent basis) remained under pressure in the third quarter of 2016,
which has been the case throughout the past year and primarily reflective of the impact of a highly competitive lending market. In
the third quarter of 2016, net interest margin was 3.65%, benefiting from substantial prepayment fee income, compared with 3.59% in
the second quarter of 2016 and 3.66% in the third quarter of 2015. The Company's normalized or core net interest margin (core net
interest margin is a non-GAAP financial measure; see reconciliation of net interest margin to core interest margin later in this
release) was 3.59% for the third quarter of 2016, down one basis point from the second quarter of 2016 and down seven basis points
from the third quarter of 2015. Management anticipates that margin pressure will continue due to competition and the current
low-rate environment. Further, since approximately 64% of the Company's loan portfolio are priced at fixed rates and 12% are priced
at variable rates with floors of 4%, future rate increases will not fully benefit the Company until new fixed-rate loans begin to
originate at higher rates and the prime rate, currently at 3.5%, rises to exceed the floor associated with variable rate loans.
The Company's solid asset quality metrics continued to trend within a narrow range during the third quarter of 2016, having
returned to these historically strong levels over the past several years. Non-performing loans (NPLs) totaled $8.0 million or 0.36%
of total loans outstanding at September 30, 2016, versus $6.4 million or 0.29% of total loans outstanding at June 30, 2016,
and $11.2 million or 0.57% of total loans outstanding at September 30, 2015. Similarly, non-performing assets, which include NPLs
along with other real estate owned (OREO) and repossessed assets, were $13.0 million or 0.44% of total assets at September 30,
2016, versus $11.5 million or 0.40% of total assets at June 30, 2016, and $15.8 million or 0.60% of total assets at September 30,
2015. Net charge-offs in the third quarter of 2016 totaled $22 thousand versus $60 thousand in the second quarter of 2016 and $1.7
million in the third quarter of 2015.
Reflecting a number of factors, including loan growth and qualitative considerations, the Company recorded a loan loss provision
of $1.3 million during the third quarter of 2016 compared with $750 thousand in the second quarter of 2016 and no loan loss
provision in the third quarter of 2015. The Company's allowance for loan losses was 1.10% of total loans as of September 30, 2016,
versus 1.06% as of June 30, 2016, and 1.11% at September 30, 2015.
Total non-interest income in the third quarter of 2016 increased $1.4 million or 14% to $11.4 million from $10.0 million in the
prior-year quarter. This increase primarily reflected higher fee income from wealth management and trust services, growth in
mortgage banking revenue, and greater bankcard transaction revenue. Total non-interest income for the nine months ended September
30, 2016, increased $2.3 million or 8% to $32.2 million from $29.9 million in the prior-year period, reflecting contributions from
wealth management and trust services, bankcard transactions and mortgage banking.
Total non-interest expense for the third quarter of 2016 increased $2.1 million or 11% to $20.5 million from $18.4 million in
the prior-year quarter. The increase was primarily due to an increase in amortization of investments in tax-credit partnerships,
which resulted in a reduction in the Company's effective tax rate for the quarter, generating income tax savings that exceeded
amortization expense. In addition, salaries and employee benefits increased due to higher salaries and wages reflecting normal
salary increases, the addition of personnel associated with growth and operational support, and increased incentive compensation
related to accelerating loan and earnings growth. For the nine months ended September 30, 2016, total non-interest expense
increased $5.2 million or 9% to $60.3 million from $55.1 million in the prior-year period, largely reflecting the same trends noted
for the quarter.
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $2.9 billion in assets, was incorporated in 1988 as a bank holding
company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company's common
shares trade on the NASDAQ Global Select Market under the symbol SYBT.
The following table provides a reconciliation of total stockholders' equity, in accordance with US GAAP, to tangible common
equity, which is a non-GAAP financial measure. The Company provides the tangible common equity ratio, in addition to those defined
by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.
| |
|
Tangible Common Equity Ratio
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
Sept. 30, |
|
June 30, |
|
Sept. 30, |
|
|
2016 |
|
2016 |
|
2015 |
| Total stockholders' equity (a) |
|
$ |
311,570 |
|
|
$ |
305,051 |
|
|
$ |
280,948 |
|
| Less goodwill |
|
|
(682 |
) |
|
|
(682 |
) |
|
|
(682 |
) |
| Less core deposit intangible |
|
|
(1,453 |
) |
|
|
(1,500 |
) |
|
|
(1,654 |
) |
| Tangible common equity (c) |
|
$ |
309,435 |
|
|
$ |
302,869 |
|
|
$ |
278,612 |
|
|
|
|
|
|
|
|
| Total assets (b) |
|
$ |
2,938,665 |
|
|
$ |
2,909,519 |
|
|
$ |
2,624,607 |
|
| Less goodwill |
|
|
(682 |
) |
|
|
(682 |
) |
|
|
(682 |
) |
| Less core deposit intangible |
|
|
(1,453 |
) |
|
|
(1,500 |
) |
|
|
(1,654 |
) |
| Tangible assets (d) |
|
$ |
2,936,530 |
|
|
$ |
2,907,337 |
|
|
$ |
2,622,271 |
|
|
|
|
|
|
|
|
| Total stockholders' equity to total assets (a/b) |
|
|
10.60 |
% |
|
|
10.48 |
% |
|
|
10.70 |
% |
| Tangible common equity ratio (c/d) |
|
|
10.54 |
% |
|
|
10.42 |
% |
|
|
10.62 |
% |
|
|
|
|
|
|
|
The following table provides a reconciliation of net interest margin in accordance with US GAAP to core net interest margin,
which is a non-GAAP financial measure. Core net interest margin excludes the effect of prepayment penalty income from borrowers,
the accretion of purchase accounting loan fair value adjustments, and the effect of excess liquidity, which the Company defines as
the combined amount of federal funds sold and short-term securities available for sale, typically maturing in one week or less, in
excess of $60 million. The Company provides this information to illustrate sequentially the trend in quarterly net interest margin
to show the impact of those items on net interest margin.
| |
| Reconciliation of Net Interest Margin to Core
Interest Margin |
| |
|
Sept. 30, |
|
June 30, |
|
March 31, |
|
Dec. 31, |
|
Sept. 30, |
|
2016 |
|
2016 |
|
2016 |
|
2015 |
|
2015 |
| Net interest margin |
3.65 |
% |
|
3.59 |
% |
|
3.56 |
% |
|
3.57 |
% |
|
3.66 |
% |
| Prepayment penalties |
(0.07 |
) |
|
(0.02 |
) |
|
(0.05 |
) |
|
(0.02 |
) |
|
(0.01 |
) |
| Accretion of fair value adjustments |
-- |
|
|
-- |
|
|
-- |
|
|
(0.01 |
) |
|
(0.02 |
) |
| Excess liquidity |
0.01 |
|
|
0.03 |
|
|
0.13 |
|
|
0.06 |
|
|
0.03 |
|
| Core net interest margin |
3.59 |
% |
|
3.60 |
% |
|
3.64 |
% |
|
3.60 |
% |
|
3.66 |
% |
|
|
|
|
|
|
|
|
|
|
This report contains forward-looking statements under the Private Securities Litigation Reform Act that involve risks and
uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained
herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking
statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in
forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets
in which the Company and its subsidiaries operate; competition for the Company's customers from other providers of financial
services; government legislation and regulation, which change from time to time and over which the Company has no control; changes
in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's
customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are
difficult to predict and many of which are beyond the control of the Company. See Risk Factors outlined in the Company's Form 10-K
for the year ended December 31, 2015.
|
|
|
|
|
|
|
| Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
| Third Quarter 2016 Earnings Release |
| (In thousands unless otherwise noted) |
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
Income Statement Data
|
|
|
|
|
|
|
|
|
|
|
| Net interest income, fully tax equivalent (1) |
|
$ |
24,963 |
|
$ |
22,312 |
|
$ |
72,816 |
|
$ |
66,196 |
| Interest income: |
|
|
|
|
|
|
|
|
|
|
| Loans |
|
|
|
$ |
23,436 |
|
$ |
20,924 |
|
$ |
67,992 |
|
$ |
61,951 |
| Federal funds sold |
|
|
|
|
95 |
|
|
65 |
|
|
395 |
|
|
184 |
| Mortgage loans held for sale |
|
|
|
|
66 |
|
|
67 |
|
|
185 |
|
|
180 |
| Securities |
|
|
|
|
2,345 |
|
|
2,228 |
|
|
7,232 |
|
|
6,816 |
| Total interest income |
|
|
|
|
25,942 |
|
|
23,284 |
|
|
75,804 |
|
|
69,131 |
| Interest expense: |
|
|
|
|
|
|
|
|
|
|
| Deposits |
|
|
|
|
941 |
|
|
900 |
|
|
2,916 |
|
|
2,811 |
| Federal funds purchased and short-term borrowing |
|
|
19 |
|
|
7 |
|
|
57 |
|
|
19 |
| Securities sold under agreements to repurchase |
|
|
38 |
|
|
42 |
|
|
100 |
|
|
111 |
| Federal Home Loan Bank (FHLB) advances |
|
|
184 |
|
|
254 |
|
|
552 |
|
|
694 |
| Total interest expense |
|
|
|
|
1,182 |
|
|
1,203 |
|
|
3,625 |
|
|
3,635 |
| Net interest income |
|
|
|
|
24,760 |
|
|
22,081 |
|
|
72,179 |
|
|
65,496 |
| Provision for loan losses |
|
|
|
|
1,250 |
|
|
- |
|
|
2,500 |
|
|
- |
| Net interest income after provision for loan losses |
|
|
23,510 |
|
|
22,081 |
|
|
69,679 |
|
|
65,496 |
| Non-interest income: |
|
|
|
|
|
|
|
|
|
|
| Wealth management and trust services |
|
|
|
|
4,800 |
|
|
4,373 |
|
|
14,219 |
|
|
13,576 |
| Service charges on deposit accounts |
|
|
|
|
2,544 |
|
|
2,342 |
|
|
6,952 |
|
|
6,621 |
| Bankcard transaction |
|
|
|
|
1,455 |
|
|
1,223 |
|
|
4,198 |
|
|
3,591 |
| Mortgage banking |
|
|
|
|
1,072 |
|
|
772 |
|
|
2,896 |
|
|
2,513 |
| Securities brokerage |
|
|
|
|
558 |
|
|
585 |
|
|
1,539 |
|
|
1,545 |
| Bank owned life insurance |
|
|
|
|
216 |
|
|
222 |
|
|
657 |
|
|
670 |
| Other non-interest income |
|
|
|
|
713 |
|
|
468 |
|
|
1,757 |
|
|
1,361 |
| Total non-interest income |
|
|
|
|
11,358 |
|
|
9,985 |
|
|
32,218 |
|
|
29,877 |
| Non-interest expense: |
|
|
|
|
|
|
|
|
|
|
| Salaries and employee benefits |
|
|
|
|
12,048 |
|
|
11,333 |
|
|
36,214 |
|
|
33,816 |
| Net occupancy |
|
|
|
|
1,646 |
|
|
1,518 |
|
|
4,716 |
|
|
4,437 |
| Data processing |
|
|
|
|
1,747 |
|
|
1,572 |
|
|
5,172 |
|
|
4,782 |
| Furniture and equipment |
|
|
|
|
277 |
|
|
282 |
|
|
853 |
|
|
789 |
| FDIC insurance |
|
|
|
|
356 |
|
|
318 |
|
|
1,035 |
|
|
932 |
| Amortization of investment in tax credit partnerships |
|
1,015 |
|
|
158 |
|
|
3,046 |
|
|
475 |
| Other non-interest expenses |
|
|
|
|
3,429 |
|
|
3,249 |
|
|
9,215 |
|
|
9,845 |
| Total non-interest expense |
|
|
|
|
20,518 |
|
|
18,430 |
|
|
60,251 |
|
|
55,076 |
| Net income before income tax expense |
|
|
|
|
14,350 |
|
|
13,636 |
|
|
41,646 |
|
|
40,297 |
| Income tax expense |
|
|
|
|
3,883 |
|
|
4,352 |
|
|
11,235 |
|
|
12,756 |
| Net income |
|
|
|
$ |
10,467 |
|
$ |
9,284 |
|
$ |
30,411 |
|
$ |
27,541 |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares - basic (2) |
|
|
|
|
22,385 |
|
|
22,131 |
|
|
22,325 |
|
|
22,056 |
| Weighted average shares - diluted |
|
|
|
|
22,803 |
|
|
22,479 |
|
|
22,711 |
|
|
22,410 |
|
|
|
|
|
|
|
|
|
|
|
| Net income per share, basic |
|
|
|
$ |
0.47 |
|
$ |
0.42 |
|
$ |
1.36 |
|
$ |
1.25 |
| Net income per share, diluted |
|
|
|
|
0.46 |
|
|
0.41 |
|
|
1.34 |
|
|
1.23 |
| Cash dividend declared per share |
|
|
|
|
0.18 |
|
|
0.16 |
|
|
0.53 |
|
|
0.47 |
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Data (at period end) |
|
|
|
|
|
|
|
|
|
|
| Total loans |
|
|
|
|
|
|
|
$ |
2,222,706 |
|
$ |
1,954,425 |
| Allowance for loan losses |
|
|
|
|
|
|
|
|
24,369 |
|
|
21,614 |
| Total assets |
|
|
|
|
|
|
|
|
2,938,665 |
|
|
2,624,607 |
| Non-interest bearing deposits |
|
|
|
|
|
|
|
|
680,078 |
|
|
595,039 |
| Interest bearing deposits |
|
|
|
|
|
|
|
|
1,710,519 |
|
|
1,546,539 |
| Federal Home Loan Bank advances |
|
|
|
|
|
|
|
|
51,366 |
|
|
43,699 |
| Stockholders' equity |
|
|
|
|
|
|
|
|
311,570 |
|
|
280,948 |
| Total shares outstanding |
|
|
|
|
|
|
|
|
22,563 |
|
|
22,303 |
| Book value per share |
|
|
|
|
|
|
|
|
13.81 |
|
|
12.60 |
| Market value per share |
|
|
|
|
|
|
|
|
32.96 |
|
|
24.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
| Third Quarter 2016 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, |
|
September 30, |
|
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| Average federal funds sold |
|
|
|
$ |
72,673 |
|
|
$ |
86,008 |
|
|
$ |
100,653 |
|
|
$ |
76,508 |
|
| Average mortgage loans held for sale |
|
|
|
|
5,070 |
|
|
|
5,045 |
|
|
|
4,918 |
|
|
|
5,464 |
|
| Average securities available for sale |
|
|
|
|
466,462 |
|
|
|
402,487 |
|
|
|
474,925 |
|
|
|
409,010 |
|
| Average FHLB stock and other securities |
|
|
6,347 |
|
|
|
6,347 |
|
|
|
6,347 |
|
|
|
6,347 |
|
| Average loans |
|
|
|
|
2,188,089 |
|
|
|
1,923,762 |
|
|
|
2,124,921 |
|
|
|
1,896,592 |
|
| Average earning assets |
|
|
|
|
2,722,324 |
|
|
|
2,416,364 |
|
|
|
2,700,587 |
|
|
|
2,386,168 |
|
| Average assets |
|
|
|
|
2,883,146 |
|
|
|
2,560,680 |
|
|
|
2,853,390 |
|
|
|
2,528,498 |
|
| Average interest bearing deposits |
|
|
|
|
1,738,315 |
|
|
|
1,557,177 |
|
|
|
1,751,000 |
|
|
|
1,570,424 |
|
| Average total deposits |
|
|
|
|
2,395,003 |
|
|
|
2,129,583 |
|
|
|
2,388,813 |
|
|
|
2,112,343 |
|
| Average securities sold under agreement |
|
|
|
|
|
|
|
|
| to repurchase |
|
|
|
|
68,835 |
|
|
|
71,144 |
|
|
|
60,438 |
|
|
|
64,541 |
|
| Average federal funds purchased and |
|
|
|
|
|
|
|
|
|
|
| other short term borrowings |
|
|
|
|
23,471 |
|
|
|
16,156 |
|
|
|
25,021 |
|
|
|
15,484 |
|
| Average Federal Home Loan Bank advances |
|
|
44,194 |
|
|
|
42,732 |
|
|
|
43,533 |
|
|
|
40,196 |
|
| Average interest bearing liabilities |
|
|
|
|
1,874,815 |
|
|
|
1,687,209 |
|
|
|
1,879,991 |
|
|
|
1,690,645 |
|
| Average stockholders' equity |
|
|
|
|
309,045 |
|
|
|
276,563 |
|
|
|
300,743 |
|
|
|
270,955 |
|
|
|
|
|
|
|
|
|
|
|
|
| Performance Ratios |
|
|
|
|
|
|
|
|
|
|
| Annualized return on average assets |
|
|
|
|
1.44 |
% |
|
|
1.44 |
% |
|
|
1.42 |
% |
|
|
1.46 |
% |
| Annualized return on average equity |
|
|
|
|
13.47 |
% |
|
|
13.32 |
% |
|
|
13.51 |
% |
|
|
13.59 |
% |
| Net interest margin, fully tax equivalent |
|
|
|
|
3.65 |
% |
|
|
3.66 |
% |
|
|
3.60 |
% |
|
|
3.71 |
% |
| Non-interest income to total revenue, fully |
|
|
|
|
|
|
|
|
| tax equivalent |
|
|
|
|
31.27 |
% |
|
|
30.92 |
% |
|
|
30.67 |
% |
|
|
31.10 |
% |
| Efficiency ratio |
|
|
|
|
56.49 |
% |
|
|
57.06 |
% |
|
|
57.36 |
% |
|
|
57.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Capital Ratios |
|
|
|
|
|
|
|
|
|
|
| Average stockholders' equity to average assets |
|
|
10.72 |
% |
|
|
10.80 |
% |
|
|
10.54 |
% |
|
|
10.72 |
% |
| Common equity tier 1 capital |
|
|
|
|
|
|
|
|
12.07 |
% |
|
|
12.68 |
% |
| Tier 1 risk-based capital |
|
|
|
|
|
|
|
|
12.07 |
% |
|
|
12.68 |
% |
| Total risk-based capital |
|
|
|
|
|
|
|
|
13.05 |
% |
|
|
13.68 |
% |
| Leverage |
|
|
|
|
|
|
|
|
10.63 |
% |
|
|
10.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Loans by Type |
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
|
|
|
|
|
|
$ |
708,508 |
|
|
$ |
610,877 |
|
| Construction and development |
|
|
|
|
|
|
|
|
191,987 |
|
|
|
128,820 |
|
| Real estate mortgage - commercial investment |
|
|
|
|
|
|
510,128 |
|
|
|
446,116 |
|
| Real estate mortgage - owner occupied commercial |
|
|
|
|
|
|
412,733 |
|
|
|
402,683 |
|
| Real estate mortgage - 1-4 family residential |
|
|
|
|
|
|
245,229 |
|
|
|
222,643 |
|
| Home equity - first lien |
|
|
|
|
|
|
|
|
54,837 |
|
|
|
49,937 |
|
| Home equity - junior lien |
|
|
|
|
|
|
|
|
65,605 |
|
|
|
62,223 |
|
| Consumer |
|
|
|
|
|
|
|
|
33,679 |
|
|
|
31,126 |
|
| Total loans |
|
|
|
|
|
|
|
$ |
2,222,706 |
|
|
$ |
1,954,425 |
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses to total loans |
|
|
|
|
|
|
|
|
1.10 |
% |
|
|
1.11 |
% |
| Allowance for loan losses to average loans |
|
|
1.11 |
% |
|
|
1.12 |
% |
|
|
1.15 |
% |
|
|
1.14 |
% |
| Allowance for loan losses to non-performing loans |
|
|
|
|
|
|
305.84 |
% |
|
|
193.03 |
% |
| Nonaccrual loans |
|
|
|
|
|
|
|
$ |
6,889 |
|
|
$ |
9,574 |
|
| Troubled debt restructuring |
|
|
|
|
|
|
|
|
999 |
|
|
|
1,079 |
|
| Loans - 90 days past due & still accruing |
|
|
|
|
|
|
80 |
|
|
|
544 |
|
| Total non-performing loans |
|
|
|
|
|
|
|
|
7,968 |
|
|
|
11,197 |
|
| OREO and repossessed assets |
|
|
|
|
|
|
|
|
5,042 |
|
|
|
4,607 |
|
| Total non-performing assets |
|
|
|
|
|
|
|
|
13,010 |
|
|
|
15,804 |
|
| Non-performing loans to total loans |
|
|
|
|
|
|
|
|
0.36 |
% |
|
|
0.57 |
% |
| Non-performing assets to total assets |
|
|
|
|
|
|
|
|
0.44 |
% |
|
|
0.60 |
% |
| Net charge-offs to average loans (3) |
|
|
|
|
0.00 |
% |
|
|
0.09 |
% |
|
|
0.03 |
% |
|
|
0.17 |
% |
| Net charge-offs |
|
|
|
$ |
22 |
|
|
$ |
1,694 |
|
|
$ |
572 |
|
|
$ |
3,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
| Third Quarter 2016 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
Five Quarter Comparison |
|
|
9/30/16 |
|
6/30/16 |
|
3/31/16 |
|
12/31/15 |
|
9/30/15 |
| Income Statement Data |
|
|
|
|
|
|
|
|
|
|
| Net interest income, fully tax equivalent (1) |
|
$ |
24,963 |
|
|
$ |
24,165 |
|
|
$ |
23,687 |
|
|
$ |
23,050 |
|
|
$ |
22,312 |
|
| Net interest income |
|
$ |
24,760 |
|
|
$ |
23,950 |
|
|
$ |
23,469 |
|
|
$ |
22,822 |
|
|
$ |
22,081 |
|
| Provision for loan losses |
|
|
1,250 |
|
|
|
750 |
|
|
|
500 |
|
|
|
750 |
|
|
|
- |
|
| Net interest income after provision for loan losses |
|
|
23,510 |
|
|
|
23,200 |
|
|
|
22,969 |
|
|
|
22,072 |
|
|
|
22,081 |
|
| Wealth management and trust services |
|
|
4,800 |
|
|
|
4,807 |
|
|
|
4,612 |
|
|
|
4,450 |
|
|
|
4,373 |
|
| Service charges on deposit accounts |
|
|
2,544 |
|
|
|
2,262 |
|
|
|
2,146 |
|
|
|
2,285 |
|
|
|
2,342 |
|
| Bankcard transaction |
|
|
1,455 |
|
|
|
1,433 |
|
|
|
1,310 |
|
|
|
1,285 |
|
|
|
1,223 |
|
| Mortgage banking |
|
|
1,072 |
|
|
|
1,030 |
|
|
|
794 |
|
|
|
975 |
|
|
|
772 |
|
| Securities brokerage |
|
|
558 |
|
|
|
538 |
|
|
|
443 |
|
|
|
449 |
|
|
|
585 |
|
| Bank owned life insurance |
|
|
216 |
|
|
|
220 |
|
|
|
221 |
|
|
|
219 |
|
|
|
222 |
|
| Other non-interest income |
|
|
713 |
|
|
|
488 |
|
|
|
556 |
|
|
|
410 |
|
|
|
468 |
|
| Total non-interest income |
|
|
11,358 |
|
|
|
10,778 |
|
|
|
10,082 |
|
|
|
10,073 |
|
|
|
9,985 |
|
| Salaries and employee benefits |
|
|
12,048 |
|
|
|
11,971 |
|
|
|
12,195 |
|
|
|
10,893 |
|
|
|
11,333 |
|
| Net occupancy |
|
|
1,646 |
|
|
|
1,546 |
|
|
|
1,524 |
|
|
|
1,475 |
|
|
|
1,518 |
|
| Data processing |
|
|
1,747 |
|
|
|
1,881 |
|
|
|
1,544 |
|
|
|
1,566 |
|
|
|
1,572 |
|
| Furniture and equipment |
|
|
277 |
|
|
|
291 |
|
|
|
285 |
|
|
|
285 |
|
|
|
282 |
|
| FDIC Insurance |
|
|
356 |
|
|
|
351 |
|
|
|
328 |
|
|
|
326 |
|
|
|
318 |
|
| Amortization of investment in tax credit partnerships |
|
|
1,015 |
|
|
|
1,016 |
|
|
|
1,015 |
|
|
|
159 |
|
|
|
158 |
|
| Other non-interest expenses |
|
|
3,429 |
|
|
|
3,137 |
|
|
|
2,649 |
|
|
|
3,618 |
|
|
|
3,249 |
|
| Total non-interest expense |
|
|
20,518 |
|
|
|
20,193 |
|
|
|
19,540 |
|
|
|
18,322 |
|
|
|
18,430 |
|
| Net income before income tax expense |
|
|
14,350 |
|
|
|
13,785 |
|
|
|
13,511 |
|
|
|
13,823 |
|
|
|
13,636 |
|
| Income tax expense |
|
|
3,883 |
|
|
|
3,676 |
|
|
|
3,676 |
|
|
|
4,177 |
|
|
|
4,352 |
|
| Net income |
|
$ |
10,467 |
|
|
$ |
10,109 |
|
|
$ |
9,835 |
|
|
$ |
9,646 |
|
|
$ |
9,284 |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares - basic |
|
|
22,385 |
|
|
|
22,336 |
|
|
|
22,254 |
|
|
|
22,183 |
|
|
|
22,131 |
|
| Weighted average shares - diluted |
|
|
22,803 |
|
|
|
22,704 |
|
|
|
22,592 |
|
|
|
22,567 |
|
|
|
22,479 |
|
|
|
|
|
|
|
|
|
|
|
|
| Net income per share, basic |
|
$ |
0.47 |
|
|
$ |
0.45 |
|
|
$ |
0.44 |
|
|
$ |
0.43 |
|
|
$ |
0.42 |
|
| Net income per share, diluted |
|
|
0.46 |
|
|
|
0.45 |
|
|
|
0.44 |
|
|
|
0.43 |
|
|
|
0.41 |
|
| Cash dividend declared per share |
|
|
0.18 |
|
|
|
0.18 |
|
|
|
0.17 |
|
|
|
0.17 |
|
|
|
0.16 |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance Sheet Data (at period end) |
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
41,533 |
|
|
$ |
40,618 |
|
|
$ |
35,022 |
|
|
$ |
35,895 |
|
|
$ |
37,335 |
|
| Federal funds sold |
|
|
16,360 |
|
|
|
9,616 |
|
|
|
13,016 |
|
|
|
67,938 |
|
|
|
17,859 |
|
| Mortgage loans held for sale |
|
|
5,959 |
|
|
|
6,405 |
|
|
|
3,984 |
|
|
|
6,800 |
|
|
|
5,539 |
|
| Securities available for sale |
|
|
541,681 |
|
|
|
567,307 |
|
|
|
569,012 |
|
|
|
565,876 |
|
|
|
504,366 |
|
| FHLB stock and other securities |
|
|
6,347 |
|
|
|
6,347 |
|
|
|
6,347 |
|
|
|
6,347 |
|
|
|
6,347 |
|
| Total loans |
|
|
2,222,706 |
|
|
|
2,175,551 |
|
|
|
2,094,488 |
|
|
|
2,033,007 |
|
|
|
1,954,425 |
|
| Allowance for loan losses |
|
|
24,369 |
|
|
|
23,141 |
|
|
|
22,451 |
|
|
|
22,441 |
|
|
|
21,614 |
|
| Total assets |
|
|
2,938,665 |
|
|
|
2,909,519 |
|
|
|
2,824,107 |
|
|
|
2,816,801 |
|
|
|
2,624,607 |
|
| Non-interest bearing deposits |
|
|
680,078 |
|
|
|
637,812 |
|
|
|
606,375 |
|
|
|
583,768 |
|
|
|
595,039 |
|
| Interest bearing deposits |
|
|
1,710,519 |
|
|
|
1,712,136 |
|
|
|
1,759,725 |
|
|
|
1,787,934 |
|
|
|
1,546,539 |
|
| Securities sold under agreements to repurchase |
|
|
67,315 |
|
|
|
57,437 |
|
|
|
54,781 |
|
|
|
64,526 |
|
|
|
67,557 |
|
| Federal funds purchased |
|
|
76,387 |
|
|
|
114,154 |
|
|
|
30,083 |
|
|
|
22,477 |
|
|
|
62,101 |
|
| Federal Home Loan Bank advances |
|
|
51,366 |
|
|
|
43,002 |
|
|
|
43,236 |
|
|
|
43,468 |
|
|
|
43,699 |
|
| Stockholders' equity |
|
|
311,570 |
|
|
|
305,051 |
|
|
|
296,323 |
|
|
|
286,519 |
|
|
|
280,948 |
|
| Total shares outstanding |
|
|
22,563 |
|
|
|
22,510 |
|
|
|
22,478 |
|
|
|
22,379 |
|
|
|
22,303 |
|
| Book value per share |
|
|
13.81 |
|
|
|
13.55 |
|
|
|
13.18 |
|
|
|
12.80 |
|
|
|
12.60 |
|
| Market value per share |
|
|
32.96 |
|
|
|
28.23 |
|
|
|
25.69 |
|
|
|
25.19 |
|
|
|
24.23 |
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Ratios |
|
|
|
|
|
|
|
|
|
|
| Average stockholders' equity to average assets |
|
|
10.72 |
% |
|
|
10.51 |
% |
|
|
10.38 |
% |
|
|
10.52 |
% |
|
|
10.80 |
% |
| Common equity tier 1 capital |
|
|
12.07 |
% |
|
|
12.06 |
% |
|
|
12.23 |
% |
|
|
12.32 |
% |
|
|
12.68 |
% |
| Tier 1 risk-based capital |
|
|
12.07 |
% |
|
|
12.06 |
% |
|
|
12.23 |
% |
|
|
12.32 |
% |
|
|
12.68 |
% |
| Total risk-based capital |
|
|
13.05 |
% |
|
|
13.01 |
% |
|
|
13.19 |
% |
|
|
13.31 |
% |
|
|
13.68 |
% |
| Leverage |
|
|
10.63 |
% |
|
|
10.46 |
% |
|
|
10.35 |
% |
|
|
10.53 |
% |
|
|
10.82 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
| Third Quarter 2016 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
Five Quarter Comparison |
|
|
9/30/16 |
|
6/30/16 |
|
3/31/16 |
|
12/31/15 |
|
9/30/15 |
| Average Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
| Average federal funds sold |
|
$ |
72,673 |
|
|
$ |
85,914 |
|
|
$ |
143,679 |
|
|
$ |
99,903 |
|
|
$ |
86,008 |
|
| Average mortgage loans held for sale |
|
|
5,070 |
|
|
|
5,432 |
|
|
|
4,249 |
|
|
|
4,991 |
|
|
|
5,045 |
|
| Average investment securities |
|
|
466,462 |
|
|
|
475,275 |
|
|
|
483,130 |
|
|
|
471,349 |
|
|
|
402,487 |
|
| Average loans |
|
|
2,188,089 |
|
|
|
2,142,530 |
|
|
|
2,043,450 |
|
|
|
1,986,289 |
|
|
|
1,923,762 |
|
| Average earning assets |
|
|
2,722,324 |
|
|
|
2,705,358 |
|
|
|
2,673,842 |
|
|
|
2,561,650 |
|
|
|
2,416,364 |
|
| Average assets |
|
|
2,883,146 |
|
|
|
2,858,624 |
|
|
|
2,818,072 |
|
|
|
2,708,630 |
|
|
|
2,560,680 |
|
| Average interest bearing deposits |
|
|
1,738,315 |
|
|
|
1,736,478 |
|
|
|
1,778,347 |
|
|
|
1,664,979 |
|
|
|
1,557,177 |
|
| Average total deposits |
|
|
2,395,003 |
|
|
|
2,400,547 |
|
|
|
2,370,819 |
|
|
|
2,271,431 |
|
|
|
2,129,583 |
|
| Average securities sold under agreement |
|
|
|
|
|
|
|
|
|
|
| to repurchase |
|
|
68,835 |
|
|
|
53,514 |
|
|
|
58,871 |
|
|
|
66,918 |
|
|
|
71,144 |
|
| Average federal funds purchased and |
|
|
|
|
|
|
|
|
|
|
| other short term borrowings |
|
|
23,471 |
|
|
|
28,152 |
|
|
|
23,456 |
|
|
|
14,147 |
|
|
|
16,156 |
|
| Average Federal Home Loan Bank advances |
|
|
44,194 |
|
|
|
43,081 |
|
|
|
43,316 |
|
|
|
43,546 |
|
|
|
42,732 |
|
| Average interest bearing liabilities |
|
|
1,874,815 |
|
|
|
1,861,225 |
|
|
|
1,903,990 |
|
|
|
1,789,590 |
|
|
|
1,687,209 |
|
| Average stockholders' equity |
|
|
309,045 |
|
|
|
300,553 |
|
|
|
292,540 |
|
|
|
284,824 |
|
|
|
276,563 |
|
|
|
|
|
|
|
|
|
|
|
|
| Performance Ratios |
|
|
|
|
|
|
|
|
|
|
| Annualized return on average assets |
|
|
1.44 |
% |
|
|
1.42 |
% |
|
|
1.40 |
% |
|
|
1.41 |
% |
|
|
1.44 |
% |
| Annualized return on average equity |
|
|
13.47 |
% |
|
|
13.53 |
% |
|
|
13.52 |
% |
|
|
13.44 |
% |
|
|
13.32 |
% |
| Net interest margin, fully tax equivalent |
|
|
3.65 |
% |
|
|
3.59 |
% |
|
|
3.56 |
% |
|
|
3.57 |
% |
|
|
3.66 |
% |
| Non-interest income to total revenue, fully |
|
|
|
|
|
|
|
|
|
|
| tax equivalent |
|
|
31.27 |
% |
|
|
30.84 |
% |
|
|
29.85 |
% |
|
|
30.41 |
% |
|
|
30.92 |
% |
| Efficiency ratio |
|
|
56.49 |
% |
|
|
57.79 |
% |
|
|
57.86 |
% |
|
|
55.32 |
% |
|
|
57.06 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Loans by Type |
|
|
|
|
|
|
|
|
|
|
| Commercial and industrial |
|
$ |
708,508 |
|
|
$ |
721,956 |
|
|
$ |
676,782 |
|
|
$ |
644,398 |
|
|
$ |
610,877 |
|
| Construction and development |
|
|
191,987 |
|
|
|
156,371 |
|
|
|
160,667 |
|
|
|
155,667 |
|
|
|
128,820 |
|
| Real estate mortgage - commercial investment |
|
|
510,128 |
|
|
|
488,187 |
|
|
|
452,173 |
|
|
|
436,989 |
|
|
|
446,116 |
|
| Real estate mortgage - owner occupied commercial |
|
|
412,733 |
|
|
|
418,113 |
|
|
|
417,285 |
|
|
|
420,666 |
|
|
|
402,683 |
|
| Real estate mortgage - 1-4 family residential |
|
|
245,229 |
|
|
|
240,770 |
|
|
|
234,199 |
|
|
|
226,575 |
|
|
|
222,643 |
|
| Home equity - 1st lien |
|
|
54,837 |
|
|
|
52,360 |
|
|
|
52,042 |
|
|
|
50,115 |
|
|
|
49,937 |
|
| Home equity - junior lien |
|
|
65,605 |
|
|
|
65,999 |
|
|
|
63,336 |
|
|
|
63,066 |
|
|
|
62,223 |
|
| Consumer |
|
|
33,679 |
|
|
|
31,795 |
|
|
|
38,004 |
|
|
|
35,531 |
|
|
|
31,126 |
|
| Total loans |
|
$ |
2,222,706 |
|
|
$ |
2,175,551 |
|
|
$ |
2,094,488 |
|
|
$ |
2,033,007 |
|
|
$ |
1,954,425 |
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
| Allowance for loan losses to total loans |
|
|
1.10 |
% |
|
|
1.06 |
% |
|
|
1.07 |
% |
|
|
1.10 |
% |
|
|
1.11 |
% |
| Allowance for loan losses to average loans |
|
|
1.11 |
% |
|
|
1.08 |
% |
|
|
1.10 |
% |
|
|
1.13 |
% |
|
|
1.12 |
% |
| Allowance for loan losses to non-performing loans |
|
|
305.84 |
% |
|
|
361.58 |
% |
|
|
251.75 |
% |
|
|
251.33 |
% |
|
|
193.03 |
% |
| Nonaccrual loans |
|
$ |
6,889 |
|
|
$ |
4,970 |
|
|
$ |
7,878 |
|
|
$ |
7,693 |
|
|
$ |
9,574 |
|
| Troubled debt restructuring |
|
|
999 |
|
|
|
1,020 |
|
|
|
1,040 |
|
|
|
1,060 |
|
|
|
1,079 |
|
| Loans - 90 days past due & still accruing |
|
|
80 |
|
|
|
410 |
|
|
|
- |
|
|
|
176 |
|
|
|
544 |
|
| Total non-performing loans |
|
|
7,968 |
|
|
|
6,400 |
|
|
|
8,918 |
|
|
|
8,929 |
|
|
|
11,197 |
|
| OREO and repossessed assets |
|
|
5,042 |
|
|
|
5,093 |
|
|
|
5,049 |
|
|
|
4,541 |
|
|
|
4,607 |
|
| Total non-performing assets |
|
|
13,010 |
|
|
|
11,493 |
|
|
|
13,967 |
|
|
|
13,470 |
|
|
|
15,804 |
|
| Non-performing loans to total loans |
|
|
0.36 |
% |
|
|
0.29 |
% |
|
|
0.43 |
% |
|
|
0.44 |
% |
|
|
0.57 |
% |
| Non-performing assets to total assets |
|
|
0.44 |
% |
|
|
0.40 |
% |
|
|
0.49 |
% |
|
|
0.48 |
% |
|
|
0.60 |
% |
| Net charge-offs to average loans |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.02 |
% |
|
|
0.00 |
% |
|
|
0.09 |
% |
| Net charge-offs (recoveries) |
|
$ |
22 |
|
|
$ |
60 |
|
|
$ |
490 |
|
|
$ |
(77 |
) |
|
$ |
1,694 |
|
|
|
|
|
|
|
|
|
|
|
|
| Other Information |
|
|
|
|
|
|
|
|
|
|
| Total assets under management (in millions) |
|
$ |
2,413 |
|
|
$ |
2,342 |
|
|
$ |
2,255 |
|
|
$ |
2,238 |
|
|
$ |
2,189 |
|
| Full-time equivalent employees |
|
|
558 |
|
|
|
549 |
|
|
|
550 |
|
|
|
555 |
|
|
|
546 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) - Interest income on a fully tax equivalent basis includes the additional amount
of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in
assets subject to federal, state and local taxes yielding the same after-tax income. |
| (2) - Share and per share information adjusted to reflect the 3 for 2 stock split -
May 2016 |
| (3) - Interim ratios not annualized |
| |
Stock Yards Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President and Chief Financial Officer
View source version on businesswire.com: http://www.businesswire.com/news/home/20161026005279/en/