Record Year-To-Date Results, Both Including
and Excluding Non-recurring Items
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 both the fourth quarter and year ended
December 31, 2019.
Total revenue, comprised of net interest income and non-interest
income, increased 11% to $45.9 million for the fourth quarter of
2019 from $41.5 million for the fourth quarter of 2018. Net income
for the fourth quarter of 2019 rose 14% to $16.6 million or $0.73
per diluted share from $14.7 million or $0.64 per diluted share for
the fourth quarter of 2018.
Record year-to-date net income of $66.1 million, which increased
$10.6 million or 19%, reflected record loan production, completion
of a successful bank acquisition, record wealth management and
trust (WM&T) income, continued strong credit metrics and solid
organic growth. In addition, 2019 net income was impacted favorably
by approximately $3.6 million in non-recurring items, most notably
state income tax benefits offset by acquisition deal costs.
Twelve Months Ended December
31,
(dollar amounts in thousands, except per
share data)
4Q19
3Q19
4Q18
2019
2018
Net interest income
$
32,720
$
32,070
$
29,912
$
125,221
$
114,416
Provision for loan and lease
losses
-
400
-
1,000
2,705
Non-interest income
13,161
13,304
11,576
49,790
45,346
Non-interest expenses
26,291
23,957
24,565
98,351
89,509
Income before income tax
expense
19,590
21,017
16,923
75,660
67,548
Income tax expense
2,941
3,783
2,265
9,593
12,031
Net income
$
16,649
$
17,234
$
14,658
$
66,067
$
55,517
Net income per share, diluted
$
0.73
$
0.76
$
0.64
$
2.89
$
2.42
Net interest margin
3.70
%
3.86
%
3.84
%
3.81
%
3.83
%
Efficiency ratio
57.24
%
52.73
%
59.12
%
56.13
%
55.92
%
Tangible common equity to
tangible assets(1)
10.55
%
10.83
%
11.05
%
10.55
%
11.05
%
Annualized return on average
equity
16.48
%
17.41
%
16.23
%
17.09
%
16.00
%
Annualized return on average
assets
1.78
%
1.95
%
1.78
%
1.90
%
1.76
%
Key factors affecting the Company’s results for the fourth
quarter of 2019 included:
- Average loans increased $289 million year over year,
contributing to the 9% increase in net interest income on a
comparable quarter basis.
- Total loans increased 12% and legacy (excluding the King
Southern Bank (“KSB”) acquisition) loans increased 6% year over
year, as record loan production was partially muted by elevated
payoffs.
- Continued strong growth in non-interest income, with WM&T
income increasing 9%, as assets under management grew to a record
$3.3 billion, led by both record net new business generation and
strong market returns. Card income and treasury management fees,
bolstered by increased volume and usage, also continued to stand
out as diversifying non-interest revenue streams, representing a
combined 26% of total non-interest income.
- Sustained strong credit quality metrics and minimal charge-offs
resulted in no provision for loan and lease losses in the fourth
quarter.
“Stock Yards Bancorp had a great fourth quarter and year, with
strong growth in net income, record loan production and solid
deposit growth,” said Chief Executive Officer James A. (Ja)
Hillebrand. “Our loan portfolio increased $297 million or 12% in
2019, with solid contribution from all three of our markets and
credit quality metrics remained strong relative to our peers.
Prudent interest rate management drove a $2.8 million or 9%
increase in net interest income compared with the fourth quarter of
2018 and a $10.8 million or 9% increase compared with the full year
2018. We ended the year with a robust loan pipeline, positioning us
for continued strength in loan production heading into 2020.
“Non-interest income increased 14% and 10% for the fourth
quarter and full year of 2019 and continues to demonstrate stable
and diversified revenue streams. The WM&T group continued to be
a leading source of fee income, representing 46% of total
non-interest income for 2019, and ending at record levels. Debit
and credit card income and treasury management fees combined grew
13% to account for 26% of fourth quarter 2019 total non-interest
income. We are also pleased to note the on-going contribution of
mortgage banking income, which grew a healthy 83% in the fourth
quarter. These diverse revenue sources remain key to the long-term
stability of our growth and demonstrate our sound business
model.
“We are pleased with the Company’s growth during 2019. These
achievements reaffirm the road map we have in place to increase our
business across our markets and also reflect the hard work everyone
at Stock Yards Bank & Trust puts forth in building long-term
customer relationships. While the competitive landscape is intense,
we remain optimistic based on our loan pipeline and core deposit
growth. We continue to deliver market share gains and are excited
about the opportunities in the markets we serve to continue the
Company’s legacy of growth and performance.”
In closing, Hillebrand said, “The outstanding results for 2019
reflect the solid execution of our strategic plan to grow in our
markets of Louisville, Cincinnati and Indianapolis, while
completing a successful acquisition and expanding our dedicated
team of professionals. Our continued growth, profitability, credit
quality and capital strength demonstrate our ability to continue to
deliver value to our shareholders, and we remain confident in our
Company’s progress as we move forward into the new decade.”
Fourth Quarter 2019 Compared with
Fourth Quarter 2018
Net interest income – the Company’s largest source of revenue –
increased approximately $2.8 million or 9% to $32.7 million. Legacy
net interest income increased $1.5 million or 5%.
- Total interest income rose $2.8 million or 8% to $37.8 million
driven by an increase in interest income on loans consistent with
growth in the portfolio, as well as an increase in loan fees.
Excluding the KSB contribution, interest income on loans exceeded
the prior year by $892 thousand or 3%.
- Interest expense remained flat at $5.1 million despite $617
thousand in additional interest expense related to KSB.
- Net interest margin decreased 14 basis points to 3.70% from
3.84%, primarily due to a higher than normal level of excess
balance sheet liquidity at year end 2019, which was partially
offset by elevated loan fees. The excess liquidity is expected to
decline during the first half of 2020 and will cause net interest
margin to rise from fourth quarter 2019, as deposit balances are
expected to return to more normalized levels. As the Federal
Reserve Bank (FRB) lowered rates for the third time in 2019, the
Company followed suit by lowering stated rates on most types of
interest-bearing deposit and certificates of deposit account types,
partially offsetting the decline in loan rates. Continued lowering
of short term rates by the FRB and yield-curve inversion could
place pressure on net interest margin, as future rate drops will
likely not be fully offset through further deposit rate
declines.
Non-interest income increased $1.6 million or 14% to $13.2
million.
- WM&T income increased $492 thousand or 9% due to increased
new business generation, continued strong market performance and
growth in corporate retirement plans.
- Mortgage banking revenue increased $444 thousand or 83%
primarily as a result of the continued decline in long-term
rates.
- Debit and credit card income once again demonstrated double
digit growth, accounting for approximately 16% of total
non-interest income during the quarter.
- Non-recurring life insurance proceeds boosted Bank Owned Life
Insurance (BOLI) income for the fourth quarter of the prior
year.
- Other non-interest income increased $614 thousand, in large
part due to interest rate swap fees. Opportunities to earn swap fee
income are sporadic due to the specialized nature of these types of
transactions.
Non-interest expenses increased $1.7 million or 7% to $26.3
million.
- Approximately $500 thousand of the increase related to
recurring KSB expenses, concentrated in compensation, employee
benefits, net occupancy and capital and deposit based taxes.
- Compensation expense for the fourth quarter of 2019 increased
$1.6 million or 14% compared with the prior-year quarter.
Additional bonus expense was recorded consistent with record
operating results in addition to an overall increase in headcount,
highlighted by the Company’s efforts to add loan production talent
to support strategic growth initiatives.
- Marketing and business development expense rose $459 thousand
or 51%, as the Company increased its contribution to the Bank’s
foundation, established to support various community initiatives,
due to outstanding 2019 results.
- Net occupancy and equipment expenses increased $274 thousand or
13% due to additional depreciation expense and routine operating
expenses associated with 2019 branch expansion.
- The Company recognized $837 thousand in amortization of
investments in tax credit partnerships compared to $1.1 million for
the same period in the prior year. The expense levels related to
these investments can fluctuate materially from period to period
based on the timing of project completion and allocation of tax
credits.
- Other non-interest expenses reflect the second consecutive
quarter of no FDIC insurance expense, as the target FDIC Reserve
Ratio was reached during the period and credits were issued to
qualifying institutions.
December 31, 2019 Compared with
December 31, 2018
Total loans increased $297 million or 12% to $2.8 billion.
- Excluding the KSB acquisition, the loan portfolio grew by 6%,
bolstered by record annual loan production, overcoming significant
levels of payoffs.
- With elevated levels of excess liquidity at year end due to
strong deposit growth, excess funds were invested in federal funds
sold and interest bearing due from banks and short term securities
available for sale, accounting for the increases over the prior
year.
Total deposits increased $340 million or 12% to $3.1
billion.
- Total legacy deposits increased $249 million or 9% due to
higher deposit levels consistent with the seasonal increase in
public funds and growth in balances with both existing and new
customers.
- Core deposits, which exclude brokered deposits and time
deposits greater than $250 thousand, represented 96% of total
deposits.
Asset quality, which 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 $12 million or 0.42% of total
loans outstanding versus $3 million or 0.13% of total loans
outstanding a year ago. The increase was due to one large
relationship placed on non-accrual status. The relationship has
been evaluated for potential loss and the Company believes its
estimated reserve is adequate at year end.
- Non-performing assets (NPAs), which include NPLs along with
other real estate owned, totaled $13 million or 0.34% of total
assets versus $4 million or 0.13% of total assets at December 31,
2018. The allowance for loan and lease losses relative to total
end-of-period loans was 0.94%, down six basis points from the same
period of 2018.
The Company remained “well capitalized” – the highest regulatory
capital rating for financial institutions.
- Total equity to assets was 10.91% and the tangible common
equity ratio was 10.55%,(1) at December 31, 2019, compared to
11.10% and 11.05%,(1) at December 31, 2018, with the fluctuation
associated with record earnings slightly offset by the KSB
acquisition and regular dividend payments to shareholders.
- Even with its strong capital position, the Company continues to
consistently achieve industry-leading returns on equity due to its
superior earnings performance.
- The Company continues to pursue and consider strategies to
enhance stockholder value, including a substantial and sustained
dividend payout ratio. In November 2019, the Company's Board of
Directors increased the Company’s quarterly cash dividend by $0.01
or 4% to $0.27 per common share. With the November increase, Stock
Yards Bancorp has raised its quarterly dividend rate 12 times since
2013, including two increases during 2019 and each of the previous
five years, resulting in a cumulative increase of 93% over that
time.
- In 2019, the Company repurchased approximately 259 thousand
shares of its 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.
Fourth Quarter 2019 Compared to Third
Quarter 2019
Net interest income increased during the quarter to $32.7
million, despite a declining net interest margin and significant
interest rate movement throughout the year. An increase in loan
prepayment fees and average balance sheet growth offset the
negative trends.
Non-interest income decreased slightly to $13.2 million.
- Increases in mortgage banking, treasury management fees and
WM&T income were offset by a decrease in both BOLI and other
income, which returned to more normalized levels in the fourth
quarter.
- BOLI and other income were significantly impacted by death
proceeds during the third quarter of 2019.
- Other non-interest income reflected swap fees of $374 thousand
and $304 thousand during the third and fourth quarters,
respectively, and 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 increased 10% to $26.3 million.
- Compensation expense for the fourth quarter of 2019 increased
$1.1 million primarily due to an increase in bonus expenses tied to
record Company operating results.
- Employee benefits expense declined 11%, consistent with the
decrease in self-insured medical claims.
- An additional $420 thousand in community support expenses were
recorded during the fourth quarter of 2019.
The Company’s effective tax rate decreased to 15.0% for the
fourth quarter of 2019 from 18.0% for the third quarter of 2019
primarily due to tax credits received for investments in federal
historic rehabilitation tax credit projects.
December 31, 2019 Compared to September
30, 2019
Total loans decreased $12 million due to expected loan payoffs
despite strong loan production for the quarter.
Total deposits increased $188 million or 6%.
- Despite expected seasonal increases, interest bearing demand,
money market 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 flat at 0.94% for both periods.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.7
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) Fourth Quarter 2019 Earnings Release (In
thousands unless otherwise noted)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Income Statement Data
2019
2018
2019
2018
Net interest income, fully tax equivalent (2)
$
32,772
$
29,972
$
125,445
$
114,723
Interest income: Loans and leases
$
34,357
$
31,591
$
134,342
$
118,467
Federal funds sold and interest bearing due from banks
804
503
2,933
1,307
Mortgage loans held for sale
61
45
182
166
Securities
2,573
2,865
10,308
9,833
Total interest income
37,795
35,004
147,765
129,773
Interest expense: Deposits
4,526
4,718
20,560
13,441
Securities sold under agreements to repurchase and other short-term
borrowings
63
142
318
992
Federal Home Loan Bank (FHLB) advances and other long-term debt
486
232
1,666
924
Total interest expense
5,075
5,092
22,544
15,357
Net interest income
32,720
29,912
125,221
114,416
Provision for loan and lease losses
-
-
1,000
2,705
Net interest income after provision for loan and lease losses
32,720
29,912
124,221
111,711
Non-interest income: Wealth management and trust services
5,804
5,312
22,643
21,536
Deposit service charges
1,486
1,419
5,513
5,759
Debit and credit card income
2,109
1,813
8,123
6,769
Treasury management fees
1,369
1,260
4,992
4,571
Mortgage banking income
978
534
3,090
2,568
Net investment product sales commissions and fees
378
432
1,498
1,677
Bank owned life insurance
182
565
1,031
1,129
Other
855
241
2,900
1,337
Total non-interest income
13,161
11,576
49,790
45,346
Non-interest expenses: Compensation
13,473
11,824
50,319
46,104
Employee benefits
2,580
2,452
11,038
10,098
Net occupancy and equipment
2,384
2,110
8,417
7,653
Technology and communication
1,636
1,659
7,098
6,569
Debit and credit card processing
613
595
2,493
2,328
Marketing and business development
1,367
908
3,627
3,099
Postage, printing, and supplies
434
397
1,652
1,558
Legal and professional
433
1,116
3,014
2,614
Amortization of investments in tax credit partnerships
837
1,179
1,078
1,237
Capital and deposit based taxes
1,006
873
3,870
3,325
Other
1,528
1,452
5,745
4,924
Total non-interest expenses
26,291
24,565
98,351
89,509
Income before income tax expense
19,590
16,923
75,660
67,548
Income tax expense
2,941
2,265
9,593
12,031
Net income
$
16,649
$
14,658
$
66,067
$
55,517
Net income per share - Basic
$
0.74
$
0.65
$
2.92
$
2.45
Net income per share - Diluted
0.73
0.64
2.89
2.42
Cash dividend declared per share
0.27
0.25
1.04
0.96
Weighted average shares - Basic
22,493
22,638
22,598
22,619
Weighted average shares - Diluted
22,760
22,907
22,865
22,944
December 31,
Balance Sheet Data
2019
2018
Loans and leases
$
2,845,016
$
2,548,171
Allowance for loan and lease losses
26,791
25,534
Total assets
3,724,197
3,302,924
Non-interest bearing deposits
810,475
711,023
Interest bearing deposits
2,323,463
2,083,333
FHLB advances
79,953
48,177
Stockholders' equity
406,297
366,500
Total shares outstanding
22,604
22,749
Book value per share (1)
$
17.97
$
16.11
Tangible common equity per share (1)
17.32
16.03
Market value per share
41.06
32.80
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Fourth Quarter 2019 Earnings Release
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Average Balance Sheet Data
2019
2018
2019
2018
Federal funds sold and interest bearing due from banks
$
187,865
$
86,725
$
136,514
$
67,083
Mortgage loans held for sale
5,889
2,140
3,836
2,549
Securities available for sale
476,360
468,856
436,511
415,069
FHLB stock
11,317
10,370
10,858
9,348
Loans and leases
2,828,142
2,539,750
2,702,626
2,519,936
Total earning assets
3,509,573
3,096,931
3,290,345
2,998,526
Total assets
3,709,250
3,260,322
3,480,998
3,159,726
Interest bearing deposits
2,284,195
2,012,489
2,143,993
1,907,070
Total deposits
3,108,640
2,738,678
2,909,096
2,610,524
Securities sold under agreement to repurchase other short-term
borrowings
49,881
67,731
49,737
107,873
FHLB advances and other long-term borrowings
80,457
48,287
71,677
48,766
Total interest bearing liabilities
2,414,533
2,128,507
2,265,407
2,063,709
Total stockholders' equity
400,870
358,293
386,563
347,041
Performance Ratios Annualized return on average
assets
1.78
%
1.78
%
1.90
%
1.76
%
Annualized return on average equity
16.48
%
16.23
%
17.09
%
16.00
%
Net interest margin, fully tax equivalent
3.70
%
3.84
%
3.81
%
3.83
%
Non-interest income to total revenue, fully tax equivalent
28.65
%
27.86
%
28.41
%
28.33
%
Efficiency ratio, fully tax equivalent (3)
57.24
%
59.12
%
56.13
%
55.92
%
Capital Ratios Total stockholders' equity to total
assets (1)
10.91
%
11.10
%
Tangible common equity to tangible assets (1)
10.55
%
11.05
%
Average stockholders' equity to average assets
10.81
%
10.99
%
11.10
%
10.98
%
Total risk-based capital
12.85
%
13.91
%
Common equity tier 1 risk-based capital
12.02
%
13.00
%
Tier 1 risk-based capital
12.02
%
13.00
%
Leverage
10.60
%
11.33
%
Loans by Type Commercial and industrial
$
870,511
$
833,524
Construction and land development
260,182
255,142
Real estate mortgage - commercial investment
736,618
588,610
Real estate mortgage - owner occupied commercial
473,783
426,373
Real estate mortgage - 1-4 family residential
334,358
276,017
Home equity - first lien
48,620
49,500
Home equity - junior lien
73,477
70,947
Consumer
47,467
48,058
Total loans and leases
$
2,845,016
$
2,548,171
Asset Quality Data Non-accrual loans
$
11,494
$
2,611
Troubled debt restructurings
34
42
Loans past due 90 days or more and still accruing
535
745
Total non-performing loans
12,063
3,398
Other real estate owned
493
1,018
Total non-performing assets
$
12,556
$
4,416
Non-performing loans to total loans
0.42
%
0.13
%
Non-performing assets to total assets
0.34
%
0.13
%
Allowance for loan and lease losses to total loans
0.94
%
1.00
%
Allowance for loan and lease losses to average loans
0.99
%
1.01
%
Allowance for loan and lease losses to non-performing loans
222
%
751
%
Net charge-offs (recoveries)
$
86
$
(312
)
$
(257
)
$
2,056
Net charge-offs (recoveries) to average loans (4)
0.00
%
-0.01
%
-0.01
%
0.08
%
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Fourth Quarter 2019 Earnings Release
Quarterly Comparison
Income Statement Data
12/31/19
9/30/19
6/30/19
3/31/19
12/31/18
Net interest income, fully tax equivalent (2)
$
32,772
$
32,131
$
30,829
$
29,713
$
29,972
Net interest income
$
32,720
$
32,070
$
30,774
$
29,657
$
29,912
Provision for loan and lease losses
-
400
-
600
-
Net interest income after provision for loan and lease losses
32,720
31,670
30,774
29,057
29,912
Non-interest income: Wealth management and trust services
5,804
5,738
5,662
5,439
5,312
Deposit service charges
1,486
1,444
1,336
1,247
1,419
Debit and credit card income
2,109
2,102
2,168
1,744
1,813
Treasury management fees
1,369
1,264
1,202
1,157
1,260
Mortgage banking income
978
834
796
482
534
Net investment product sales commissions and fees
378
400
364
356
432
Bank owned life insurance
182
487
184
178
565
Other
855
1,035
551
459
241
Total non-interest income
13,161
13,304
12,263
11,062
11,576
Non-interest expenses: Compensation
13,473
12,330
12,715
11,801
11,824
Employee benefits
2,580
2,908
2,908
2,642
2,452
Net occupancy and equipment
2,384
2,199
1,976
1,858
2,110
Technology and communication
1,636
1,841
1,848
1,773
1,660
Debit and credit card processing
613
662
631
587
594
Marketing and business development
1,367
732
903
625
908
Postage, printing, and supplies
434
402
410
406
397
Legal and professional
433
524
1,523
534
1,116
Amortization of investments in tax credit partnerships
837
137
52
52
1,179
Capital and deposit based taxes
1,006
993
967
904
873
Other
1,528
1,229
1,531
1,457
1,452
Total non-interest expenses
26,291
23,957
25,464
22,639
24,565
Income before income tax expense
19,590
21,017
17,573
17,480
16,923
Income tax expense
2,941
3,783
1,030
1,839
2,265
Net income
$
16,649
$
17,234
$
16,543
$
15,641
$
14,658
Net income per share - Basic
$
0.74
$
0.76
$
0.73
$
0.69
$
0.65
Net income per share - Diluted
0.73
0.76
0.72
0.68
0.64
Cash dividend declared per share
0.27
0.26
0.26
0.25
0.25
Weighted average shares - Basic
22,493
22,550
22,689
22,661
22,638
Weighted average shares - Diluted
22,760
22,810
22,949
22,946
22,907
Quarterly Comparison
Balance Sheet Data
12/31/19
9/30/19
6/30/19
3/31/19
12/31/18
Cash and due from banks
$
46,863
$
68,107
$
51,264
$
44,014
$
51,892
Federal funds sold and interest bearing due from banks
202,861
68,107
64,775
67,326
147,047
Mortgage loans held for sale
8,748
6,329
3,922
2,981
1,675
Securities available for sale
470,738
375,601
423,579
507,131
436,995
FHLB stock
11,316
11,316
11,316
9,779
10,370
Loans and leases
2,845,016
2,856,664
2,763,880
2,525,709
2,548,171
Allowance for loan and lease losses
26,791
26,877
26,416
26,464
25,534
Total assets
3,724,197
3,533,926
3,463,823
3,281,016
3,302,924
Non-interest bearing deposits
810,475
795,793
777,652
698,783
711,023
Interest bearing deposits
2,323,463
2,150,520
2,105,801
2,053,757
2,083,333
Securities sold under agreements to repurchase
31,985
33,172
33,809
34,633
36,094
Federal funds purchased
10,887
9,957
12,012
12,218
10,247
FHLB advances
79,953
81,985
84,279
47,853
48,177
Stockholders' equity
406,297
396,111
389,365
377,994
366,500
Total shares outstanding
22,604
22,597
22,721
22,823
22,749
Book value per share (1)
$
17.97
$
17.53
$
17.14
$
16.56
$
16.11
Tangible common equity per share (1)
17.32
16.87
16.46
16.49
16.03
Market value per share
41.06
36.69
36.15
33.81
32.80
Capital Ratios Total stockholders' equity to total
assets (1)
10.91
%
11.21
%
11.24
%
11.52
%
11.10
%
Tangible common equity to tangible assets (1)
10.55
%
10.83
%
10.85
%
11.47
%
11.05
%
Average stockholders' equity to average assets
10.81
%
11.22
%
11.10
%
11.34
%
10.99
%
Total risk-based capital
12.85
%
12.53
%
12.67
%
14.04
%
13.91
%
Common equity tier 1 risk-based capital
12.02
%
11.69
%
11.82
%
13.11
%
13.00
%
Tier 1 risk-based capital
12.02
%
11.69
%
11.82
%
13.11
%
13.00
%
Leverage
10.60
%
10.90
%
10.91
%
11.57
%
11.33
%
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Fourth Quarter 2019 Earnings Release
Quarterly
Comparison Average Balance Sheet Data
12/31/19 9/30/19 6/30/19
3/31/19 12/31/18
Federal funds sold and interest bearing due from
banks
$
187,865
$
98,569
$
137,130
$
122,189
$
86,725
Mortgage loans held for sale
5,889
3,887
3,794
1,727
2,140
Securities available for sale
476,360
396,686
435,391
437,619
468,856
Loans and leases
2,828,142
2,800,445
2,668,058
2,538,940
2,539,750
Total earning assets
3,509,573
3,310,904
3,244,941
3,100,352
3,096,931
Total assets
3,709,250
3,502,267
3,436,175
3,271,257
3,260,322
Interest bearing deposits
2,284,195
2,127,769
2,112,768
2,048,830
2,012,489
Total deposits
3,108,640
2,912,631
2,867,360
2,743,701
2,738,678
Securities sold under agreement to
repurchase and other short-term borrowings
49,881
48,376
51,743
48,956
67,731
FHLB advances
80,457
83,386
74,420
47,962
48,287
Total interest bearing liabilities
2,414,533
2,259,531
2,238,931
2,145,748
2,128,507
Total stockholders' equity
400,870
392,840
381,270
371,070
358,293
Performance Ratios
Annualized return on average
assets
1.78
%
1.95
%
1.93
%
1.94
%
1.78
%
Annualized return on average equity
16.48
%
17.41
%
17.40
%
17.09
%
16.23
%
Net interest margin, fully tax equivalent
3.70
%
3.86
%
3.81
%
3.89
%
3.84
%
Non-interest income to total revenue, fully tax equivalent
28.65
%
29.28
%
28.46
%
27.13
%
27.86
%
Efficiency ratio, fully tax equivalent (3)
57.24
%
52.73
%
59.09
%
55.52
%
59.12
%
Loans by Type
Commercial and industrial
$
870,511
$
876,127
$
860,085
$
827,747
$
833,524
Construction and land development
260,182
283,465
257,801
244,548
255,142
Real estate mortgage - commercial investment
736,618
727,531
696,421
586,648
588,610
Real estate mortgage - owner occupied commercial
473,783
470,678
452,719
428,163
426,373
Real estate mortgage - 1-4 family residential
334,358
331,747
338,957
277,847
276,017
Home equity - first lien
48,620
51,015
46,012
48,656
49,500
Home equity - junior lien
73,477
72,533
67,948
66,837
70,947
Consumer
47,467
43,568
43,937
45,263
48,058
Total loans and leases
$
2,845,016
$
2,856,664
$
2,763,880
$
2,525,709
$
2,548,171
Asset Quality Data
Non-accrual loans
$
11,494
$
2,722
$
3,030
$
3,273
$
2,611
Troubled debt restructurings
34
35
37
39
42
Loans past due 90 days or more and still accruing
535
487
861
454
745
Total non-performing loans
12,063
3,244
3,928
3,766
3,398
Other real estate owned
493
563
563
878
1,018
Total non-performing assets
$
12,556
$
3,807
$
4,491
$
4,644
$
4,416
Non-performing loans to total loans
0.42
%
0.11
%
0.14
%
0.15
%
0.13
%
Non-performing assets to total assets
0.34
%
0.11
%
0.13
%
0.14
%
0.13
%
Allowance for loan and lease losses to total loans
0.94
%
0.94
%
0.96
%
1.05
%
1.00
%
Allowance for loan and lease losses to average loans
0.95
%
0.96
%
0.99
%
1.04
%
1.01
%
Allowance for loan and lease losses to non-performing loans
222
%
829
%
673
%
703
%
751
%
Net charge-offs (recoveries)
$
86
$
(61
)
$
48
$
(330
)
$
(312
)
Net charge-offs (recoveries) to average loans (4)
0.00
%
0.00
%
0.00
%
-0.01
%
-0.01
%
Other Information
Total assets under management
(in millions)
$
3,320
$
3,116
$
3,068
$
2,970
$
2,765
Full-time equivalent employees
615
622
615
596
591
(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.
Bancorp provides the tangible book value per share, a non-GAAP
measure, in addition to those defined by banking regulators,
because of its widespread use by investors as a means to evaluate
capital adequacy:
Quarterly Comparison (In thousands, except
per share data)
12/31/19 9/30/19 6/30/19
3/31/19 12/31/18 Total stockholders' equity -
GAAP (a)
$
406,297
$
396,111
$
389,365
$
377,994
$
366,500
Less: Goodwill
(12,513
)
(12,593
)
(12,826
)
(682
)
(682
)
Less: Core deposit intangible
(2,285
)
(2,373
)
(2,461
)
(1,015
)
(1,057
)
Tangible common equity - Non-GAAP (c)
$
391,499
$
381,145
$
374,078
$
376,297
$
364,761
Total assets - GAAP (b)
$
3,724,197
$
3,533,926
$
3,463,823
$
3,281,016
$
3,302,924
Less: Goodwill
(12,513
)
(12,593
)
(12,826
)
(682
)
(682
)
Less: Core deposit intangible
(2,285
)
(2,373
)
(2,461
)
(1,015
)
(1,057
)
Tangible assets - Non-GAAP (d)
$
3,709,399
$
3,518,960
$
3,448,536
$
3,279,319
$
3,301,185
Total stockholders' equity to total assets - GAAP (a/b)
10.91
%
11.21
%
11.24
%
11.52
%
11.10
%
Tangible common equity to tangible assets - Non-GAAP (c/d)
10.55
%
10.83
%
10.85
%
11.47
%
11.05
%
Total shares outstanding (e)
22,604
22,597
22,721
22,823
22,749
Book value per share - GAAP (a/e)
$
17.97
$
17.53
$
17.14
$
16.56
$
16.11
Tangible common equity per share - Non-GAAP (c/e)
17.32
16.87
16.46
16.49
16.03
(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
expenses 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. In addition to the efficiency ratio normally
presented, Bancorp considers an adjusted efficiency ratio. Bancorp
believes this ratio is important because of it provides a
comparable ratio after eliminating the fluctuation in non-interest
expenses related to amortization of investments in tax credit
partnerships. The following table reconciles the efficiency ratio
calculation to the adjusted efficiency ratio calculation.
Quarterly Comparison (Dollars in thousands)
12/31/19
9/30/19 6/30/19 3/31/19 12/31/18
Total non-interest expenses (a)
$
26,291
$
23,957
$
25,464
$
22,639
$
24,565
Less: Amortization of investments in tax credit partnerships
(837
)
(137
)
(52
)
(52
)
(1,179
)
Total adjusted non-interest expenses (c)
$
25,454
$
23,820
$
25,412
$
22,587
$
23,386
Total net interest income, fully tax equivalent
$
32,772
$
32,131
$
30,829
$
29,713
$
29,972
Total non-interest income
13,161
13,304
12,263
11,062
11,576
Less: Gain/loss on sale of securities
-
-
-
-
-
Total revenue (b)
$
45,933
$
45,435
$
43,092
$
40,775
$
41,548
Efficiency ratio (a) / (b)
57.24
%
52.73
%
59.09
%
55.52
%
59.12
%
Adjusted Efficiency ratio (c) / (b)
55.42
%
52.43
%
58.97
%
55.39
%
56.29
%
(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/20200129005061/en/
T. Clay Stinnett Executive Vice President, Treasurer and Chief
Financial Officer (502) 625-0890
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