SYBT Also Reports Third Quarter Record Loan
Production; Record Return on Average Assets and Return on Average
Equity
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 record results for both the third quarter and nine months
ended September 30, 2019. Total revenue, comprised of net interest
income and non-interest income, increased 14% to $45.4 million for
the third quarter of 2019 from $39.9 million for the third quarter
of 2018. Notwithstanding several non-recurring income items
recognized in the quarter, the company still posted record results.
Net income for the third quarter of 2019 rose 24% to $17.2 million
or $0.76 per diluted share from $13.9 million or $0.60 per diluted
share for the third quarter of 2018.
(dollar amounts in thousands, except per
share data)
3Q19
2Q19
3Q18
Net interest income
$
32,070
$
30,774
$
28,521
Provision for loan and lease
losses
400
–
735
Non-interest income
13,304
12,263
11,426
Non-interest expenses
23,957
25,464
21,781
Income before income tax
expense
21,017
17,573
17,431
Income tax expense
3,783
1,030
3,555
Net income
$
17,234
$
16,543
$
13,876
Net income per share, diluted
$
0.76
$
0.72
$
0.60
Net interest margin
3.86
%
3.81
%
3.79
%
Efficiency ratio
52.73
%
59.09
%
54.43
%
Tangible common equity to
tangible assets (1)
10.83
%
10.85
%
10.57
%
Annualized return on average
equity
17.41
%
17.40
%
15.67
%
Annualized return on average
assets
1.95
%
1.93
%
1.75
%
Key factors affecting the Company’s results for the third
quarter of 2019 included:
- Average loans increased $260 million year over year,
contributing to the 12% increase in net interest income on a
comparable quarter basis.
- Legacy (excluding the King Southern Bank (“KSB”) acquisition)
average loans increased $104 million or 4% year over year.
- Strong net loan growth of $93 million for the third quarter of
2019, building upon a strong second quarter of 2019.
- Continued robust loan production set a year to date record,
with loan payoffs/pay-downs trending lower in the second half of
2019.
- Net interest margin increased seven basis points to 3.86% from
the same period last year and increased five basis points on a
sequential quarterly basis. As the Federal Reserve Bank (FRB)
lowered rates twice during the third quarter, the Company followed
suit by lowering stated rates on most types of interest-bearing
deposit and certificates of deposit account types, offsetting the
decline in loan rates. Loan yields were also boosted during the
quarter by a higher than normal level of fee income. Continued
lowering of short term rates by the FRB and yield-curve inversion
will place pressure on net interest margin. It is likely that
future rate drops will not be fully offset through further deposit
rate declines.
- Continued strong growth in non-interest income, led by a 7%
increase in wealth management and trust (WM&T) services income,
as well as a 19% increase in debit and credit card income.
- Card income and treasury management fees, bolstered by
increased volume and usage, continued to stand out as diversifying
non-interest revenue streams, representing a combined 25% of total
non-interest income.
- Sustained strong credit quality metrics continued to result in
low provisioning, with the Company recording a $400 thousand
provision for loan and lease losses in the third quarter.
- The Company’s Mt. Washington branch opened during the quarter
and has exceeded expectations. It represents a natural extension of
the Company’s existing Bullitt County franchise and complements the
recent expansion into Nelson County via the KSB acquisition.
- Non-recurring items boosted Bank Owned Life Insurance (BOLI)
income and other non-interest income during the quarter.
“Stock Yards Bancorp closed out a great third quarter, setting
records in net income, loan production and returns on average
assets and equity,” said Chief Executive Officer James A. (Ja)
Hillebrand. “Exceptional loan production and strong net loan growth
drove a $3.5 million or 12% net interest income increase compared
with the third quarter of 2018. Loan growth has continued to
accelerate through 2019, as we have focused heavily on growing and
expanding customer relationships in addition to integrating our new
KSB customer base. Our loan portfolio increased $93 million this
quarter due to the hard work of our entire lending team. Prudent
deposit rate management also contributed to a steady net interest
margin. Our credit quality metrics remain at sound levels and are
some of the highest relative to our peers. Our core deposit growth
is strong, further highlighting our optimism for the future. We
ended the third quarter with a solid loan pipeline, positioning the
Company for continued strength in loan production heading into the
final quarter of the year.
“Non-interest income increased 16% and continues to demonstrate
stable and diversified revenue streams. The WM&T group, with
assets under management rising to over $3 billion, continued to be
a leading source of fee income, with revenues increasing 7% versus
the year-earlier period and contributing 43% of total non-interest
income in the third quarter of 2019. Debit/credit card income and
treasury management fees combined grew 16% to account for 25% of
third quarter 2019 total non-interest income. We are also pleased
to note the on-going contribution of mortgage banking income, which
grew a healthy 17%. These diverse revenue sources remain key to the
long-term stability in our growth and demonstrate our sound
business model.
“While the competitive landscape is intense, we remain
optimistic based on our loan pipeline and core deposit base growth
and we continue to deliver market share gains. We are excited about
the opportunities in the markets we serve to continue the Company’s
legacy of growth and performance. As evidenced by the second
quarter authorization of a share repurchase plan, our Board of
Directors shares our enthusiasm about the Company’s future. I am
pleased to announce that through the end of the third quarter, we
have repurchased approximately 259 thousand shares of stock at a
weighted average cost of $35.46 per share. Approximately 741
thousand shares remain available for repurchase under the current
buy-back plan.”
In closing, Hillebrand said, “The outstanding results for the
third quarter reflect solid execution of our strategic plan by our
dedicated team of professionals. I am pleased to note that we were
named to the 2019 Bank and Thrift SM-ALL STARS by Sandler O’Neill
& Partners during the quarter, one of only 30 institutions to
receive this honor based on our continued growth, profitability,
credit quality and capital strength. We are honored to be
recognized and are confident in our ability to continue to deliver
value to our shareholders.”
Third Quarter 2019 Compared with Third
Quarter 2018
Net interest income – the Company’s largest source of revenue –
increased approximately $3.5 million or 12% to $32.1 million.
Legacy net interest income increased $2.1 million or 7%.
- Net interest margin increased seven basis points to 3.86% from
3.79%, primarily due to a decline in deposit rates, which more than
offset the decline in loan rates during the quarter, as the FRB cut
rates twice. Rates on loans and thus earning assets were boosted by
a higher than normal level of loan fees during the quarter.
- Total interest income rose $5.0 million or 15% to $38.0 million
driven by an increase in interest income on loans consistent with
growth in the portfolio. Excluding the KSB contribution, interest
income on loans exceeded the prior year by $2.6 million or 9%.
- Interest expense increased $1.4 million or 31% over the prior
year quarter due to a higher volume of interest bearing deposits,
with approximately $394 thousand of the increase related to the KSB
deposit portfolio, which was concentrated in time deposits.
Non-interest income increased $1.9 million or 16% to $13.3
million.
- WM&T income increased $358 thousand or 7% due to increased
new business generation, continued strong market performance and
growth in corporate retirement plans. WM&T continues to
represent a steady source of growth in non-interest income for the
Company.
- Debit and credit card income and treasury management fees both
showed continued double digit growth, accounting for approximately
25% of total non-interest income during the quarter.
- Mortgage banking revenue increased 17% over the prior year
period primarily as a result of the decline in long-term rates
during the third quarter.
- BOLI income increased $301 thousand during the quarter,
reflecting the receipt of life insurance proceeds during the
quarter.
- Other non-interest income increased $723 thousand in large part
due to interest rate swap fees on loans recognized during the
quarter totaling $374 thousand. Other income was also impacted by a
gain of $212 thousand on the sale of Visa Class B stock and life
insurance proceeds recognized outside our normal BOLI program of
$142 thousand.
Non-interest expenses increased $2.2 million or 10% to $24.0
million.
- Excluding ongoing KSB expenses, non-interest expenses would
have increased $1.6 million or 7%.
- Compensation expense for the third quarter of 2019 increased
$723 thousand or 6% compared with the prior-year quarter related to
an overall increase in headcount, led by the Company’s efforts to
add loan production talent to support strategic growth initiatives
in addition to the KSB acquisition.
- Employee benefits rose $407 thousand or 16% due to elevated
medical claims, increased 401(k) matching expense and increased
FICA expense consistent with compensation growth.
- Net occupancy and equipment expenses increased $285 thousand or
15% due to the addition of the Mt. Washington and KSB
branches.
- Technology and communication expenses increased $246 thousand
or 15%, as the Company added new hardware and software to support
capacity and capabilities for customers.
- The Company recorded no FDIC insurance expense during the
quarter as the target national FDIC Reserve Ratio was reached
during the period and credits were issued to qualifying
institutions.
September 30, 2019 Compared with
September 30, 2018
Total loans increased $322 million or 13% to $2.9 billion.
- Approximately $152 million of the growth in loans was a direct
result of the KSB acquisition.
- Excluding the KSB acquisition, the loan portfolio grew by a net
$170 million or 7%, bolstered by record loan production over the
previous 12 months.
Total deposits increased $348 million or 13% to $2.9
billion.
- Approximately $99 million in deposit growth during this period
was due to the KSB acquisition.
- Growth in deposits was led by a solid increase in non-interest
bearing deposits, interest bearing demand deposits and time
deposits.
- Core deposits, which exclude brokered deposits and time
deposits greater than $250 thousand, represented 97% of total
deposits.
Asset quality, which has remained exceptional and has trended
within a narrow range over the past several years, remained sound.
While the Company is pleased with this performance, management
recognizes the cyclical nature of the economy and believes asset
quality metrics will normalize over the long term, which will
eventually result in higher provisioning for loan and lease
losses.
- Non-performing loans (NPLs) were $3.2 million or 0.11% of total
loans outstanding versus $5.0 million or 0.20% of total loans
outstanding a year ago.
- Non-performing assets (NPAs), which include NPLs along with
other real estate owned and repossessed assets, totaled $3.8
million or 0.11% of total assets versus $6.6 million or 0.20% of
total assets.
- The allowance for loan and lease losses relative to total
end-of-period loans was 0.94%, down slightly from 2018 levels.
The Company remained “well capitalized” – the highest capital
rating for financial institutions.
- Total equity to assets was 11.21% and the tangible common
equity ratio was 10.83%,(1) compared to 10.62% and 10.57%,
respectively, with the fluctuation primarily associated with record
earnings slightly offset by the KSB acquisition.
- Even with its strong capital position, the Company continues to
consistently achieve industry-leading returns on equity due to its
superior earnings performance.
- Stock Yards Bancorp continues to pursue and consider strategies
to enhance stockholder value, including a substantial and sustained
dividend payout ratio. In August 2019, the Company's board of
directors continued the higher dividend rate of $0.26 per common
share initially set in May 2019. With the May increase, Stock Yards
Bancorp has raised its quarterly dividend rate 11 times since 2013,
including two increases during 2018 and each of the previous four
years.
Third Quarter 2019 Compared to Second
Quarter 2019
Net interest income increased $1.3 million or 4%, as loan growth
during the quarter, combined with a slight increase in margin, led
to a record for the quarter.
Non-interest income increased 8%.
- WM&T, deposit service charges, treasury management fees and
mortgage banking all showed increases for the linked quarter
comparison.
- BOLI and other income increased due to the receipt of life
insurance proceeds during the quarter.
- Swap fees totaling $108 thousand and $374 thousand were
recognized during the second and third quarters, respectively.
- A one-time gain of $212 thousand on the sale of Visa Class B
stock was realized during the third quarter of 2019.
Non-interest expenses improved 6%.
- As a result of the closing of the KSB acquisition on May 1,
2019, second quarter non-interest expenses included $1.3 million in
pre-tax acquisition-related expenses, professional fees and
compensation-related expenses.
- The company recorded no FDIC insurance expense during the third
quarter of 2019.
The Company’s effective tax rate increased to 18.0% for the
third quarter of 2019 from 5.9% for the second quarter of 2019.
- During the second quarter of 2019, Kentucky tax law changed to
allow a bank holding company’s net operating losses to offset
against net revenues generated by banks, beginning in 2021. In
connection with this change, the Company recognized a non-recurring
state deferred tax asset and corresponding state income tax
benefit, the effect of which added $0.11 to net income per diluted
share for the second quarter of 2019.
September 30, 2019 Compared to June 30,
2019
Total loans increased $93 million or 3%.
- The Company experienced continued strong production during the
third quarter with loan pipelines remaining solid headed into the
fourth quarter of 2019.
Total deposits increased $63 million or 2%.
- Money market, interest bearing demand and non-interest bearing
deposit balances showed solid growth on the linked quarter
basis.
Asset quality remained at historically strong levels.
- The allowance for loan and lease losses relative to total
end-of-period loans was 0.94%, a decrease of two basis points.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.5
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.
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 subsidiary
operates; competition for the Company’s customers from other
providers of financial services; 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. See Risk Factors outlined in the Company’s Form
10-K for the year ended December 31, 2018.
Stock Yards Bancorp, Inc. Financial
Information (unaudited) Third Quarter 2019 Earnings
Release (In thousands unless otherwise noted)
Three Months Ended
Nine Months Ended
September 30,
September 30,
Income Statement Data
2019
2018
2019
2018
Net interest income, fully tax equivalent (2)
$
32,131
$
28,590
$
92,673
$
84,751
Interest income: Loans and leases
$
35,022
$
30,359
$
99,985
$
86,877
Federal funds sold and interest bearing due from banks
566
373
2,129
804
Mortgage loans held for sale
41
42
121
121
Securities
2,344
2,247
7,735
6,967
Total interest income
37,973
33,021
109,970
94,769
Interest expense: Deposits
5,316
3,972
16,034
8,723
Securities sold under agreements to repurchase and other short-term
borrowings
78
300
255
850
Federal Home Loan Bank (FHLB) advances and other long-term debt
509
228
1,180
692
Total interest expense
5,903
4,500
17,469
10,265
Net interest income
32,070
28,521
92,501
84,504
Provision for loan and lease losses
400
735
1,000
2,705
Net interest income after provision for loan and lease losses
31,670
27,786
91,501
81,799
Non-interest income: Wealth management and trust services
5,738
5,380
16,839
16,224
Deposit service charges
1,444
1,482
4,027
4,340
Debit and credit card income
2,102
1,759
6,014
4,956
Treasury management fees
1,264
1,151
3,623
3,311
Mortgage banking income
834
712
2,112
2,034
Net investment product sales commissions and fees
400
444
1,120
1,245
Bank owned life insurance
487
186
849
564
Other
1,035
312
2,045
1,096
Total non-interest income
13,304
11,426
36,629
33,770
Non-interest expenses: Compensation
12,330
11,607
36,846
34,280
Employee benefits
2,908
2,501
8,458
7,646
Net occupancy and equipment
2,199
1,914
6,033
5,543
Technology and communication
1,841
1,595
5,462
4,910
Debit and credit card processing
662
588
1,880
1,733
Marketing and business development
732
740
2,260
2,191
Postage, printing, and supplies
402
370
1,218
1,161
Legal and professional
524
501
2,581
1,498
FDIC insurance
-
238
486
718
Amortization/impairment of investments in tax credit partnerships
137
-
241
58
Capital and deposit based taxes
993
738
2,864
2,452
Other
1,229
989
3,731
2,754
Total non-interest expenses
23,957
21,781
72,060
64,944
Income before income tax expense
21,017
17,431
56,070
50,625
Income tax expense
3,783
3,555
6,652
9,766
Net income
$
17,234
$
13,876
$
49,418
$
40,859
Net income per share - Basic
$
0.76
$
0.61
$
2.18
$
1.81
Net income per share - Diluted
0.76
0.60
2.16
1.78
Cash dividend declared per share
0.26
0.25
0.77
0.71
Weighted average shares - Basic
22,550
22,636
22,633
22,613
Weighted average shares - Diluted
22,810
22,968
22,901
22,956
September 30,
Balance Sheet Data
2019
2018
Loans and leases
$
2,856,664
$
2,534,483
Allowance for loan and lease losses
26,877
25,222
Total assets
3,533,926
3,324,797
Non-interest bearing deposits
795,793
705,386
Interest bearing deposits
2,150,520
1,892,652
FHLB advances
81,985
48,500
Stockholders' equity
396,111
352,980
Total shares outstanding
22,597
22,746
Book value per share (1)
$
17.53
$
15.52
Tangible common equity per share (1)
16.87
15.44
Market value per share
36.69
36.30
Stock Yards Bancorp, Inc. Financial
Information (unaudited) Third Quarter 2019 Earnings
Release
Three Months Ended
Nine Months Ended
September 30,
September 30,
Average Balance Sheet Data
2019
2018
2019
2018
Federal funds sold and interest bearing due from banks
$
98,569
$
73,196
$
119,210
$
60,463
Mortgage loans held for sale
3,887
2,980
3,144
2,687
Securities available for sale
396,686
372,251
423,082
396,943
FHLB stock
11,317
10,370
10,704
9,004
Loans and leases
2,800,445
2,547,474
2,670,121
2,513,259
Total earning assets
3,310,904
3,006,271
3,226,261
2,982,356
Total assets
3,502,267
3,153,406
3,404,080
3,125,825
Interest bearing deposits
2,127,769
1,874,853
2,096,745
1,871,546
Total deposits
2,912,631
2,590,156
2,841,850
2,567,337
Securities sold under agreement to repurchase other short-term
borrowings
48,376
116,287
49,690
121,400
FHLB advances and other long-term borrowings
83,386
48,612
68,718
48,927
Total interest bearing liabilities
2,259,531
2,039,752
2,215,153
2,041,873
Total stockholders' equity
392,840
351,376
381,743
343,248
Performance Ratios Annualized return on average
assets
1.95
%
1.75
%
1.94
%
1.75
%
Annualized return on average equity
17.41
%
15.67
%
17.31
%
15.92
%
Net interest margin, fully tax equivalent
3.86
%
3.79
%
3.85
%
3.82
%
Non-interest income to total revenue, fully tax equivalent
29.28
%
28.55
%
28.33
%
28.49
%
Efficiency ratio, fully tax equivalent (3)
52.73
%
54.43
%
55.73
%
54.80
%
Capital Ratios Total stockholders' equity to total
assets (1)
11.21
%
10.62
%
Tangible common equity to tangible assets (1)
10.83
%
10.57
%
Average stockholders' equity to average assets
11.21
%
10.98
%
Total risk-based capital
12.53
%
13.50
%
Common equity tier 1 risk-based capital
11.69
%
12.61
%
Tier 1 risk-based capital
11.69
%
12.61
%
Leverage
10.90
%
11.40
%
Loans by Type Commercial and industrial
$
876,127
$
816,252
Construction and land development
283,465
233,107
Real estate mortgage - commercial investment
727,531
630,000
Real estate mortgage - owner occupied commercial
470,678
420,098
Real estate mortgage - 1-4 family residential
331,747
274,409
Home equity - first lien
51,015
46,062
Home equity - junior lien
72,533
67,105
Consumer
43,568
47,450
Total loans and leases
$
2,856,664
$
2,534,483
Asset Quality Data Non-accrual loans
$
2,722
$
3,982
Troubled debt restructurings
35
792
Loans past due 90 days or more and still accruing
487
212
Total non-performing loans
3,244
4,986
Other real estate owned
563
1,604
Total non-performing assets
$
3,807
$
6,590
Non-performing loans to total loans
0.11
%
0.20
%
Non-performing assets to total assets
0.11
%
0.20
%
Allowance for loan and lease losses to total loans
0.94
%
1.00
%
Allowance for loan and lease losses to average loans
1.01
%
1.00
%
Allowance for loan and lease losses to non-performing loans
829
%
506
%
Net charge-offs (recoveries)
$
(61
)
$
386
$
(343
)
$
2,368
Net charge-offs (recoveries) to average loans (4)
0.00
%
0.02
%
-0.01
%
0.09
%
Stock Yards Bancorp, Inc. Financial
Information (unaudited) Third Quarter 2019 Earnings
Release
Quarterly Comparison
Income Statement Data
9/30/19
6/30/19
3/31/19
12/31/18
9/30/18
Net interest income, fully tax equivalent (2)
$
32,131
$
30,829
$
29,713
$
29,972
$
28,590
Net interest income
$
32,070
$
30,774
$
29,657
$
29,912
$
28,521
Provision for loan and lease losses
400
-
600
-
735
Net interest income after provision for loan and lease losses
31,670
30,774
29,057
29,912
27,786
Non-interest income: Wealth management and trust services
5,738
5,662
5,439
5,312
5,380
Deposit service charges
1,444
1,336
1,247
1,419
1,482
Debit and credit card income
2,102
2,168
1,744
1,813
1,759
Treasury management fees
1,264
1,202
1,157
1,260
1,151
Mortgage banking income
834
796
482
534
712
Net investment product sales commissions and fees
400
364
356
432
444
Bank owned life insurance
487
184
178
565
186
Other
1,035
551
459
241
312
Total non-interest income
13,304
12,263
11,062
11,576
11,426
Non-interest expenses: Compensation
12,330
12,715
11,801
11,824
11,607
Employee benefits
2,908
2,908
2,642
2,452
2,501
Net occupancy and equipment
2,199
1,976
1,858
2,110
1,914
Technology and communication
1,841
1,848
1,773
1,660
1,595
Debit and credit card processing
662
631
587
594
588
Marketing and business development
732
903
625
908
740
Postage, printing, and supplies
402
410
406
397
370
Legal and professional
524
1,523
534
1,116
501
FDIC insurance
-
248
238
243
238
Amortization/impairment of investments in tax credit partnerships
137
52
52
1,179
-
Capital and deposit based taxes
993
967
904
873
738
Other
1,229
1,283
1,219
1,209
989
Total non-interest expenses
23,957
25,464
22,639
24,565
21,781
Income before income tax expense
21,017
17,573
17,480
16,923
17,431
Income tax expense
3,783
1,030
1,839
2,265
3,555
Net income
$
17,234
$
16,543
$
15,641
$
14,658
$
13,876
Net income per share - Basic
$
0.76
$
0.73
$
0.69
$
0.65
$
0.61
Net income per share - Diluted
0.76
0.72
0.68
0.64
0.60
Cash dividend declared per share
0.26
0.26
0.25
0.25
0.25
Weighted average shares - Basic
22,550
22,689
22,661
22,638
22,636
Weighted average shares - Diluted
22,810
22,949
22,946
22,907
22,968
Quarterly Comparison
Balance Sheet Data
9/30/19
6/30/19
3/31/19
12/31/18
9/30/18
Cash and due from banks
$
68,107
$
51,264
$
44,014
$
51,892
$
66,029
Federal funds sold and interest bearing due from banks
68,107
64,775
67,326
147,047
54,451
Mortgage loans held for sale
6,329
3,922
2,981
1,675
2,533
Securities available for sale
375,601
423,579
507,131
436,995
550,091
FHLB stock
11,316
11,316
9,779
10,370
10,370
Loans and leases
2,856,664
2,763,880
2,525,709
2,548,171
2,534,483
Allowance for loan and lease losses
26,877
26,416
26,464
25,534
25,222
Total assets
3,533,926
3,463,823
3,281,016
3,302,924
3,324,797
Non-interest bearing deposits
795,793
777,652
698,783
711,023
705,386
Interest bearing deposits
2,150,520
2,105,801
2,053,757
2,083,333
1,892,652
Securities sold under agreements to repurchase
33,172
33,809
34,633
36,094
53,883
Federal funds purchased
9,957
12,012
12,218
10,247
231,344
FHLB advances
81,985
84,279
47,853
48,177
48,500
Stockholders' equity
396,111
389,365
377,994
366,500
352,980
Total shares outstanding
22,597
22,721
22,823
22,749
22,746
Book value per share (1)
$
17.53
$
17.14
$
16.56
$
16.11
$
15.52
Tangible common equity per share (1)
16.87
16.46
16.49
16.03
15.44
Market value per share
36.69
36.15
33.81
32.80
36.30
Capital Ratios Total stockholders' equity to total
assets (1)
11.21
%
11.24
%
11.52
%
11.10
%
10.62
%
Tangible common equity to tangible assets (1)
10.83
%
10.85
%
11.47
%
11.05
%
10.57
%
Average stockholders' equity to average assets
11.22
%
11.10
%
11.34
%
10.99
%
11.14
%
Total risk-based capital
12.53
%
12.67
%
14.04
%
13.91
%
13.50
%
Common equity tier 1 risk-based capital
11.69
%
11.82
%
13.11
%
13.00
%
12.61
%
Tier 1 risk-based capital
11.69
%
11.82
%
13.11
%
13.00
%
12.61
%
Leverage
10.90
%
10.91
%
11.57
%
11.33
%
11.40
%
Stock Yards Bancorp, Inc. Financial
Information (unaudited) Third Quarter 2019 Earnings
Release
Quarterly Comparison
Average Balance Sheet Data
9/30/19
6/30/19
3/31/19
12/31/18
9/30/18
Federal funds sold and interest bearing due from banks
$
98,569
$
137,130
$
122,189
$
86,725
$
73,196
Mortgage loans held for sale
3,887
3,794
1,727
2,140
2,980
Securities available for sale
396,686
435,391
437,619
468,856
372,251
Loans and leases
2,800,445
2,668,058
2,538,940
2,539,750
2,547,474
Total earning assets
3,310,904
3,244,941
3,100,352
3,096,931
2,990,401
Total assets
3,502,267
3,436,175
3,271,257
3,260,322
3,153,406
Interest bearing deposits
2,127,769
2,112,768
2,048,830
2,012,489
1,874,853
Total deposits
2,912,631
2,867,360
2,743,701
2,738,678
2,590,156
Securities sold under agreement to repurchase and other short-term
borrowings
48,376
51,743
48,956
67,731
116,287
FHLB advances
83,386
74,420
47,962
48,287
48,612
Total interest bearing liabilities
2,259,531
2,238,931
2,145,748
2,128,507
2,039,752
Total stockholders' equity
392,840
381,270
371,070
358,293
351,376
Performance Ratios Annualized return on average
assets
1.95
%
1.93
%
1.94
%
1.78
%
1.75
%
Annualized return on average equity
17.41
%
17.40
%
17.09
%
16.23
%
15.67
%
Net interest margin, fully tax equivalent
3.86
%
3.81
%
3.89
%
3.84
%
3.79
%
Non-interest income to total revenue, fully tax equivalent
29.28
%
28.46
%
27.13
%
27.86
%
28.55
%
Efficiency ratio, fully tax equivalent (3)
52.73
%
59.09
%
55.52
%
59.12
%
54.43
%
Loans by Type Commercial and industrial
$
876,127
$
860,085
$
827,747
$
833,524
$
816,252
Construction and land development
283,465
257,801
244,548
255,142
233,107
Real estate mortgage - commercial investment
727,531
696,421
586,648
588,610
630,000
Real estate mortgage - owner occupied commercial
470,678
452,719
428,163
426,373
420,098
Real estate mortgage - 1-4 family residential
331,747
338,957
277,847
276,017
274,409
Home equity - first lien
51,015
46,012
48,656
49,500
46,062
Home equity - junior lien
72,533
67,948
66,837
70,947
67,105
Consumer
43,568
43,937
45,263
48,058
47,450
Total loans and leases
$
2,856,664
$
2,763,880
$
2,525,709
$
2,548,171
$
2,534,483
Asset Quality Data Non-accrual loans
$
2,722
$
3,030
$
3,273
$
2,611
$
3,982
Troubled debt restructurings
35
37
39
42
792
Loans past due 90 days or more and still accruing
487
861
454
745
212
Total non-performing loans
3,244
3,928
3,766
3,398
4,986
Other real estate owned
563
563
878
1,018
1,604
Total non-performing assets
$
3,807
$
4,491
$
4,644
$
4,416
$
6,590
Non-performing loans to total loans
0.11
%
0.14
%
0.15
%
0.13
%
0.20
%
Non-performing assets to total assets
0.11
%
0.13
%
0.14
%
0.13
%
0.20
%
Allowance for loan and lease losses to total loans
0.94
%
0.96
%
1.05
%
1.00
%
1.00
%
Allowance for loan and lease losses to average loans
0.96
%
0.99
%
1.04
%
1.01
%
1.00
%
Allowance for loan and lease losses to non-performing loans
829
%
673
%
703
%
751
%
506
%
Net charge-offs (recoveries)
$
(61
)
$
48
$
(330
)
$
(312
)
$
386
Net charge-offs (recoveries) to average loans (4)
0.00
%
0.00
%
-0.01
%
-0.01
%
0.02
%
Other Information Total assets under management (in
millions)
$
3,116
$
3,068
$
2,970
$
2,765
$
2,969
Full-time equivalent employees
622
615
596
591
593
(1) - The following table provides a
reconciliation of total stockholders’ equity in accordance with
U.S. Generally Accepted Accounting Principles (“GAAP”) to tangible
stockholders’ equity, a non-GAAP disclosure. The Company 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
9/30/19
6/30/19
3/31/19
12/31/18
9/30/18
Total stockholders' equity - GAAP (a)
$
396,111
$
389,365
$
377,994
$
366,500
$
352,980
Less: Goodwill
(12,593
)
(12,826
)
(682
)
(682
)
(682
)
Less: Core deposit intangible
(2,373
)
(2,461
)
(1,015
)
(1,057
)
(1,098
)
Tangible common equity - Non-GAAP (c)
$
381,145
$
374,078
$
376,297
$
364,761
$
351,200
Total assets - GAAP (b)
$
3,533,926
$
3,463,823
$
3,281,016
$
3,302,924
$
3,324,797
Less: Goodwill
(12,593
)
(12,826
)
(682
)
(682
)
(682
)
Less: Core deposit intangible
(2,373
)
(2,461
)
(1,015
)
(1,057
)
(1,098
)
Tangible assets - Non-GAAP (d)
$
3,518,960
$
3,448,536
$
3,279,319
$
3,301,185
$
3,323,017
Total stockholders' equity to total assets - GAAP (a/b)
11.21
%
11.24
%
11.52
%
11.10
%
10.62
%
Tangible common equity to tangible assets - Non-GAAP (c/d)
10.83
%
10.85
%
11.47
%
11.05
%
10.57
%
Total shares outstanding (e)
22,597
22,721
22,823
22,749
22,746
Book value per share - GAAP (a/e)
$
17.53
$
17.14
$
16.56
$
16.11
$
15.52
Tangible common equity per share - Non-GAAP (c/e)
16.87
16.46
16.49
16.03
15.44
(2) - 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. (3) - The
efficiency ratio, a non-GAAP measure, equals total non interest
expense divided by the sum of fully tax equivalent net interest
income and non interest income. The ratio excludes net gains
(losses) on sales, calls, and impairment of investment securities,
if applicable. (4) - Quarterly net charge-offs
(recoveries) to average loans ratios are not annualized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191023005125/en/
T. Clay Stinnett Executive Vice President, Treasurer and Chief
Financial Officer (502) 625-0890
Stock Yards Bancorp (NASDAQ:SYBT)
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