Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock
Yards Bank & Trust Company, with offices in Louisville, Central
and Eastern Kentucky, as well as the Indianapolis and Cincinnati
metropolitan markets, today reported earnings for the second
quarter ended June 30, 2021. Net income for the second quarter was
$4.2 million, or $0.17 per diluted share, reflecting $18.1 million
in merger expenses and $7.4 million in merger related credit loss
expense for the quarter. This compares to net income of $13.4
million, or $0.59 per diluted share, for the second quarter of
2020. The results for the second quarter of 2021 also included
strong organic loan growth and record levels of non-interest income
highlighted by wealth management and trust along with card income
and treasury management fees.
|
|
|
|
(dollar amounts in thousands, except per share data) |
2Q21 |
1Q21 |
2Q20 |
Net interest income |
$ |
41,584 |
|
$ |
37,825 |
|
$ |
33,528 |
|
Provision for credit loss expense(6) |
|
4,147 |
|
|
(1,475 |
) |
|
7,025 |
|
Non-interest income |
|
15,788 |
|
|
13,844 |
|
|
12,622 |
|
Non-interest expenses |
|
48,177 |
|
|
24,973 |
|
|
23,409 |
|
Income before income tax expense |
|
5,048 |
|
|
28,171 |
|
|
15,716 |
|
Income tax expense |
|
864 |
|
|
5,461 |
|
|
2,348 |
|
Net income |
$ |
4,184 |
|
$ |
22,710 |
|
$ |
13,368 |
|
Net income per share, diluted |
$ |
0.17 |
|
$ |
0.99 |
|
$ |
0.59 |
|
Net interest margin |
|
3.36 |
% |
|
3.39 |
% |
|
3.27 |
% |
Efficiency ratio(4) |
|
83.86 |
% |
|
48.29 |
% |
|
50.67 |
% |
Tangible common equity to tangible assets(1) |
|
8.57 |
% |
|
8.97 |
% |
|
9.39 |
% |
Annualized return on average equity(7) |
|
3.25 |
% |
|
20.71 |
% |
|
12.90 |
% |
Annualized return on average assets(7) |
|
0.32 |
% |
|
1.96 |
% |
|
1.25 |
% |
|
|
|
|
“The highlight of the second quarter was
completing the acquisition of Kentucky Bancshares,” said James A.
(Ja) Hillebrand, Chairman and Chief Executive Officer. “The merger
added $1.3 billion in assets, $742 million in loans, and $1.0
billion in total deposits to our quarter end balances, and is
already having an impact on our operating results, increasing the
scale and reach of the Company and providing tremendous opportunity
for future revenue growth. This strategic combination enhances our
entry into the attractive Central and Eastern Kentucky markets,
including the Lexington MSA, Kentucky’s second largest market.
While costs associated with the merger impacted second quarter
earnings, we believe that the majority of merger related expenses
are behind us.”
“We are on track for our system conversion
scheduled for August,” Hillebrand continued. “Although additional
work remains to complete the full integration of the two companies
and realize the expected operating synergies, we are exceptionally
pleased with the progress we have made through the dedicated
efforts of our employees and expect that, similar to our two prior
acquisitions, the acquisition of Kentucky Bancshares will result in
significant benefits to our expanding group of clients,
communities, employees and shareholders.”
With the completion of the Kentucky Bancshares
acquisition, at June 30, 2021, the Company had $6.1 billion in
assets, $4.2 billion in net loans and $5.3 billion in total
deposits. The combined enterprise, with 63 branch offices, has and
will continue to benefit from a diversified geographic footprint
with significant growth opportunities.
Another key activity for the first half of 2021
related to the additional COVID-19 stimulus relief, which was
signed into law in late 2020, and allowed for a second round of PPP
funding through early May. “Consistent with the first round, our
team of lenders rose to the challenge. Our participation in the
second round of PPP once again stood out in our markets – driving
PPP loan originations over $900 million in total. Our expertise and
ultimate success in helping our customers not only allowed us to
close over 2,100 loans with total originations in excess of $260
million for the second round, but also added new client
relationships with strong future growth opportunities,” said
Hillebrand.
“Due to further economic forecast improvements,
updates to our modeling and continued solid performance of the loan
portfolio during the current quarter, we recorded a net benefit of
$2.7 million to provision for credit losses for legacy Stock Yards
loan portfolio, excluding loans acquired from Kentucky Bancshares.
This compares to $5.6 million in credit loss expense for loans in
the second quarter a year ago. Additionally, in accordance with
CECL, we added an additional $7.4 million in merger related credit
loss expense associated with the non-Purchase Credit Deteriorated
Kentucky Bancshares loans we acquired, bringing our total allowance
for credit losses on loans to $59 million. We feel that we are
well-positioned for future growth, having established credit loan
loss reserves to total loans (excluding PPP loans), of 1.55%(2) at
June 30, 2021,” said Hillebrand.
Additional key factors impacting the second
quarter of 2021 results included:
- Loan growth within the legacy Stock
Yards portfolio, excluding loans acquired from Kentucky Bancshares
and PPP loans, totaled $81 million, or 3%, compared to the first
quarter of 2021 and $269 million, or 10%, compared to the second
quarter a year ago.
- Average legacy Stock Yards loan
balance growth totaled $109 million compared to the first quarter
of 2021 and $220 million compared to the second quarter a year
ago.
- Despite ongoing loan yield
contraction, net interest income increased $8.1 million, or 24%,
boosted by $6.9 million in PPP income, the aforementioned organic
loan growth and a $1.5 million decline in funding costs.
- Driven by a 20 basis point benefit
from PPP loans, net interest margin (NIM) expanded nine basis
points to 3.36% compared to the second quarter a year ago.
Excluding the PPP benefit, NIM continued to be negatively impacted
by loan yield contraction accompanied with significant ongoing
excess balance sheet liquidity.
- Net provision for credit losses
totaled $4.1 million in the second quarter of 2021 versus $7.0
million in the second quarter of 2020. Included in these totals,
credit loss reserves for off-balance sheet credit exposures
reflected a net reduction of $550,000 for the second quarter of
2021 compared to net build of $1.5 million for the second quarter
of 2020.
- Non-interest income increased 25%
over the second quarter of 2020, reflecting record debit/credit
card income and record treasury management fees. Significant growth
in assets under management and strong market performance served to
elevate wealth management and trust services income to a record
quarter. Deposit service charges increased 54% due largely to the
impact of the pandemic to the prior period.
Results of Operations – Second Quarter 2021 Compared
with Second Quarter 2020
Net interest income – the Company’s largest
source of revenue – increased $8.1 million, or 24%, to $41.6
million, driven primarily by PPP loan fees and a significant
decline in cost of funds.
- Total interest income rose $6.6
million, or 18%, to $43.1 million, primarily due to an increase in
interest income on loans resulting from strong PPP income, partly
offset by continued yield contraction.
- With regard to the first round of
PPP lending, as of June 30, 2021 approximately 82% of total loan
originations (in terms of dollars) had been forgiven by the SBA and
another 10% have been submitted for forgiveness. With regard to fee
income, approximately 95% of the $19.6 million in fee income
received has been recognized life to date.
- The second round of PPP expired on
May 5, 2021. The Bank has received $12.3 million in fees that will
be recognized over the earlier of 5 years or at loan forgiveness.
As second round borrowers are not required to make payments for 16
months, it is probable that a significant portion of the borrowing
base will seek forgiveness in early to mid-2022.
- Interest expense declined 49%, to
$1.5 million. Interest expense on deposits decreased $1.2 million,
or 45%, as the cost of interest bearing deposits declined to 0.19%
in the second quarter of 2021 from 0.42% in the second quarter a
year ago. While average interest bearing deposit balances surged
$555 million, or 22%, the Company significantly benefited from the
strategic lowering of stated deposit rates in 2019 and early 2020
in tandem with the Federal Reserve’s short-term interest rate moves
and the corresponding lowering of CD offering rates.
- NIM increased nine basis points to
3.36% for the second quarter of 2021 from 3.27% for the second
quarter a year ago. During the quarter, forgiveness within the PPP
loan portfolio and related fee income recognition had a 20 basis
point positive impact to NIM. NIM continues to be negatively
impacted by loan yield contraction and significant ongoing excess
balance sheet liquidity which represented an 18 basis point
negative impact.
The Company recorded a net $4.1 million
provision to credit loss expense during the second quarter of 2021,
which included a $2.7 million benefit to provision for credit
losses for legacy Stock Yards loans and a $7.4 million provision
for credit losses for acquired loans. In addition, during the
second quarter of 2021 the Company recorded a $550,000 net benefit
to provision for credit losses for off-balance sheet exposures
consistent with improvement in underlying CECL model factors.
Non-interest income increased $3.2 million, or
25%, to $15.8 million.
- Wealth management and trust income
totaled a record $6.9 million for the second quarter of 2021,
increasing $1.1 million, or 20%, over the second quarter a year
ago. Record net new business growth, significant growth in assets
under management and record market performance served to elevate
asset-based fees and boost income.
- Retail deposit service charges
increased $433,000, or 54%, compared to the second quarter a year
ago, a period severely impacted by the pandemic.
- Debit/credit card income increased
$1.2 million, or 59%, over the second quarter of 2020. Growth
trends in both portfolios remain positive, as card income
benefitted significantly from continued increases in economic
activity with consumers and businesses increasing their spending
activities.
- Treasury management fees increased
by $481,000, or 39%, driven by increased transaction volume, new
product sales and customer base expansion. In addition, calling
efforts to existing customers have led to significant increases in
online services, reporting, ACH origination, remote deposit and
fraud mitigation services.
- Mortgage banking revenue was $1.3
million for the second quarter of 2021. Home purchase and refinance
application volume remained steady throughout the quarter.
Non-interest expenses increased $24.8 million,
to $48.2 million, with $20.4 million of the increase associated
with the Kentucky Bancshares merger.
- Compensation expense increased $3.9
million, or 33%, primarily due to the increase in full time
equivalent employees. Full time equivalent employees increased from
620 at June 30, 2020 to 823 at June 30, 2021, as the Bank added 189
associates in connection with the Kentucky Bancshares acquisition,
contributing $973,000 to the total compensation increase.
Additional incentive compensation of $2.1 million was accrued in
the second quarter of 2021 consistent with the Company’s operating
performance.
- Employee benefits increased
$496,000, or 17%, primarily due to elevated 401(k) and payroll tax
expenses associated with the above mentioned increase in full time
equivalent employees.
- Net occupancy and equipment
expenses increased $207,000, or 10%, as 19 branches were added in
the current quarter acquisition.
- Technology and communication
expense for the second quarter of 2021 increased $671,000, or 34%,
consistent with expanded data storage and increased expenses
related to the third quarter 2020 switch to a hosted core system.
Additional technology expense of $307,000 was added related to the
acquisition during the quarter, mostly attributable to the running
of separate core banking systems until the third quarter
conversion.
- Card processing expense increased
$373,000, or 62%, consistent with the income trend noted
above.
- Marketing and business development
expense, which includes all costs associated with promoting the
Bank, community investment, retaining customers and acquiring new
business increased $357,000, or 77%, compared to the second quarter
a year ago which included the peak of the pandemic.
- Capital and deposit tax declined
$698,000, or 57%, as the Company has transitioned to record
Kentucky state income tax as a component of tax expense.
- Merger expenses totaled $18.1
million in the second quarter of 2021. Substantially all of the
merger expenses related to the Kentucky Bancshares acquisition were
recognized during the second quarter of 2021 and the Company
expects remaining expenses will be minimal over the remainder of
the year.
- During the second quarter of 2021,
the Company paid off $14 million of term FHLB advances prior to
their maturity and incurred an early termination fee of
$474,000.
Financial Condition – June 30, 2021 Compared with June
30, 2020
Total loans increased $742 million year over
year, or 21%, to $4.2 billion. Excluding the PPP loan portfolio,
total loans increased $995 million, or 35%, during the year, with
$487 million of growth in the commercial real estate portfolio,
$108 million of growth in the commercial and industrial portfolio
and $297 million of growth in residential real estate loans. Credit
line usage improved during the second quarter, while remaining well
below pre-pandemic levels.
The Company acquired nearly $400 million in
securities related to the Kentucky Bancshares acquisition and sold
approximately $92 million during the second quarter contributing
significantly to the $522 million of growth in the portfolio over
the past twelve months.
Asset quality, which has trended within a narrow
range over the past several years, has remained solid. During the
second quarter of 2021, the Company recorded net loan charge-offs
of $2.7 million, primarily related to one commercial real estate
relationship that had been fully reserved for in 2020. This
compared to net loan recoveries of $15,000 in the second quarter of
2020. Non-performing loans were $13.9 million, or 0.36%(2), of
total loans (excluding PPP) outstanding compared to $14.4 million,
or 0.51%(2), of total loans (excluding PPP) outstanding at June 30,
2020.
Total deposits increased $1.5 billion, or 41%,
from June 30, 2020 to June 30, 2021, with non-interest bearing
deposits representing $539 million of the increase. Excluding
deposits added from the Kentucky Bancshares acquisition, total
deposits increased $512 million year over year, with non-interest
bearing deposits representing $184 million of the increase. Both
period end and average deposit balances ended at record levels at
June 30, 2021. Federal programs such as the PPP and stimulus checks
have boosted deposit balances.
At June 30, 2021, the Company remained “well
capitalized,” the highest regulatory capital rating for financial
institutions. Total equity to assets was 10.69% and the tangible
common equity ratio was 8.57%(1) at June 30, 2021, compared to
9.69% and 9.39%(1), respectively, at June 30, 2020.
In June 2021, the Board of Directors continued
the prior quarter dividend rate of $0.27 per common share. The
Company will continue to evaluate dividend rate increases in
relation to maintaining strong capital levels.
No shares were repurchased in the current year
and approximately 741,000 shares remain eligible for repurchase
under the current buy-back plan which expires in May 2023.
Results of Operations – Second Quarter 2021 Compared
with First Quarter 2021
Net interest income increased $3.8 million, or
10%, over the prior quarter to $41.6 million, led by the
acquisition, organic loan growth, PPP fee recognition and the
continued decline in cost of funds.
As previously discussed, the Company recorded
$4.1 million in provision for credit loss expense during the second
quarter of 2021 compared to a $1.2 million benefit to provision for
credit loss expense for loans in the prior quarter. In addition,
consistent with improvement in underlying CECL model factors, a net
benefit was recorded to provision for credit losses for off-balance
sheet exposures of $550,000 and $275,000 in the second quarter of
2021 and first quarter of 2021, respectively.
Non-interest income increased $1.9 million, or
14%, to $15.8 million. Record wealth management and trust service
fees, debit/credit card income and treasury management fees more
than offset a modest second quarter reduction in mortgage banking
and other non-interest income.
Non-interest expenses increased $23.2 million,
or 93%, to $48.2 million with $20.4 million of the increase
associated with the Kentucky Bancshares acquisition. Merger
expenses totaled $18.1 million in the second quarter of 2021,
compared to $400,000 of merger expenses in the prior quarter.
Compensation expense increased $2.9 million, to
$15.7 million compared with the first quarter of 2021, due to the
addition of 189 full time equivalent employees in association with
the acquisition and additional incentive compensation accrued
during the current quarter.
Financial Condition June 30, 2021, Compared with March
31, 2021
Total assets increased $1.3 billion on a linked
quarter basis to $6.1 billion, reflecting the acquisition of
Kentucky Bancshares, as well as significant increases in organic
loans and investment securities.
Total loans increased $571 million on a linked
quarter basis to $4.2 billion at quarter end and the deployment of
excess liquidity combined with the addition of the Kentucky
Bancshares securities portfolio led to a $335 million increase in
securities. Total line of credit usage increased to 39% as of
June 30, 2021, from 37% at March 31, 2021 with commercial and
industrial line usage increasing meaningfully, but still well below
pre-pandemic levels.
Total deposits increased $1.1 billion, or 25%,
on a linked quarter basis due in part to the acquisition of
Kentucky Bancshares, but also as a result of organic growth in
deposit balances with both existing and new customers. Federal
programs such as the PPP, stimulus checks and increased
unemployment benefits have boosted deposit balances in 2021.
Additionally, economic uncertainty surrounding the pandemic has
resulted in a portion of the customer base maintaining generally
higher deposit balances.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp,
Inc., with $6.1 billion in assets, was incorporated in 1988 as a
bank holding company. It is the parent company of Stock Yards Bank
& Trust Company, which was established in 1904. The Company’s
common shares trade on The NASDAQ Stock Market under the symbol
“SYBT.”
Forward-looking Statements
Certain statements contained in this
communication, which are not statements of historical fact,
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, certain plans, expectations,
goals, projections and benefits relating to the merger transaction
between Stock Yards and Kentucky Bancshares, which are subject to
numerous assumptions, risks and uncertainties. Words or phrases
such as “anticipate,” “believe,” “aim,” “can,” “conclude,”
“continue,” “could,” “estimate,” “expect,” “foresee,” “goal,”
“intend,” “may,” “might,” “outlook,” “possible,” “plan,” “predict,”
“project,” “potential,” “seek,” “should,” “target,” “will,” “will
likely,” “would,” or the negative of these terms or other
comparable terminology, as well as similar expressions, are
intended to identify forward-looking statements but are not the
exclusive means of identifying such statements.
Forward-looking statements are not historical
facts but instead express only management’s beliefs regarding
future results or events, many of which, by their nature, are
inherently uncertain and outside of the management’s control. It is
possible that actual results and outcomes may differ, possibly
materially, from the anticipated results or outcomes indicated in
these forward-looking statements. In addition to factors disclosed
in reports filed by Stock Yards with the SEC, risks and
uncertainties for Stock Yards include but are not limited to: the
possibility that any of the anticipated benefits of the proposed
merger will not be realized or will not be realized within the
expected time period; the risk that integration of Kentucky
Bancshares’ operations with those of Stock Yards will be materially
delayed or will be more costly or difficult than expected;
diversion of management's attention from ongoing business
operations and opportunities due to the merger; the challenges of
integrating and retaining key employees; the effect of the
announcement of the merger on the combined company's respective
customer and employee relationships and operating results; the
possibility that the merger may be more expensive to complete than
anticipated, including as a result of unexpected factors or events;
dilution caused by Stock Yards’ issuance of additional shares of
Stock Yards common stock in connection with the merger; the
magnitude and duration of the COVID-19 pandemic and its impact on
the global economy and financial market conditions and the
business, results of operations and financial condition of the
combined company; and general competitive, economic, political and
market conditions and fluctuations. All forward-looking statements
included in this communication are made as of the date hereof and
are based on information available at that time. Except as required
by law, Stock Yards assumes no obligation to update any
forward-looking statement to reflect events or circumstances that
occur after the date the forward-looking statements were made.
Please refer to Stock Yards’ Annual Report on
Form 10-K for the year ended December 31, 2020, and its Quarterly
Report on Form 10-Q for the three months ended March 31, 2021, as
well as its other filings with the SEC for a more detailed
discussion of risks, uncertainties and factors that could cause
actual results to differ from those discussed in the
forward-looking statements.
Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
|
Second Quarter 2021 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands unless otherwise noted) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
Income Statement Data |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully tax equivalent (3) |
|
|
|
|
$ |
41,661 |
|
|
$ |
33,573 |
|
|
$ |
79,535 |
|
|
$ |
66,066 |
|
Interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
$ |
40,095 |
|
|
$ |
34,099 |
|
|
$ |
77,095 |
|
|
$ |
67,848 |
|
Federal funds sold and interest bearing due from banks |
|
|
|
|
84 |
|
|
88 |
|
|
150 |
|
|
619 |
|
Mortgage loans held for sale |
|
|
|
|
58 |
|
|
125 |
|
|
122 |
|
|
186 |
|
Securities |
|
|
|
|
2,865 |
|
|
2,194 |
|
|
5,253 |
|
|
4,735 |
|
Total interest income |
|
|
|
|
43,102 |
|
|
36,506 |
|
|
82,620 |
|
|
73,388 |
|
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
1,435 |
|
|
2,607 |
|
|
2,945 |
|
|
6,569 |
|
Securities sold under
agreements to repurchase and other short-term borrowings |
|
|
|
|
9 |
|
|
10 |
|
|
16 |
|
|
55 |
|
Federal Home Loan Bank (FHLB) advances |
|
|
|
|
74 |
|
|
361 |
|
|
250 |
|
|
790 |
|
Total interest expense |
|
|
|
|
1,518 |
|
|
2,978 |
|
|
3,211 |
|
|
7,414 |
|
Net interest income |
|
|
|
|
41,584 |
|
|
33,528 |
|
|
79,409 |
|
|
65,974 |
|
Provision for credit losses (6) |
|
|
|
|
4,147 |
|
|
7,025 |
|
|
2,672 |
|
|
12,950 |
|
Net interest income after provision for credit losses |
|
|
|
|
37,437 |
|
|
26,503 |
|
|
76,737 |
|
|
53,024 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management and trust services |
|
|
|
|
6,858 |
|
|
5,726 |
|
|
13,106 |
|
|
11,944 |
|
Deposit service charges |
|
|
|
|
1,233 |
|
|
800 |
|
|
2,177 |
|
|
2,083 |
|
Debit and credit card income |
|
|
|
|
3,284 |
|
|
2,063 |
|
|
5,557 |
|
|
4,043 |
|
Treasury management fees |
|
|
|
|
1,730 |
|
|
1,249 |
|
|
3,270 |
|
|
2,533 |
|
Mortgage banking income |
|
|
|
|
1,303 |
|
|
1,622 |
|
|
2,747 |
|
|
2,468 |
|
Net investment product sales commissions and fees |
|
|
|
|
545 |
|
|
391 |
|
|
1,009 |
|
|
857 |
|
Bank owned life insurance |
|
|
|
|
206 |
|
|
176 |
|
|
367 |
|
|
355 |
|
Other |
|
|
|
|
629 |
|
|
595 |
|
|
1,399 |
|
|
875 |
|
Total non-interest income |
|
|
|
|
15,788 |
|
|
12,622 |
|
|
29,632 |
|
|
25,158 |
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
|
|
|
15,680 |
|
|
11,763 |
|
|
28,507 |
|
|
23,996 |
|
Employee benefits |
|
|
|
|
3,367 |
|
|
2,871 |
|
|
6,628 |
|
|
6,038 |
|
Net occupancy and equipment |
|
|
|
|
2,244 |
|
|
2,037 |
|
|
4,289 |
|
|
3,868 |
|
Technology and communication |
|
|
|
|
2,670 |
|
|
1,999 |
|
|
5,016 |
|
|
4,062 |
|
Debit and credit card processing |
|
|
|
|
976 |
|
|
603 |
|
|
1,681 |
|
|
1,259 |
|
Marketing and business development |
|
|
|
|
822 |
|
|
465 |
|
|
1,346 |
|
|
1,025 |
|
Postage, printing and supplies |
|
|
|
|
460 |
|
|
442 |
|
|
869 |
|
|
883 |
|
Legal and professional |
|
|
|
|
666 |
|
|
628 |
|
|
1,128 |
|
|
1,251 |
|
FDIC Insurance |
|
|
|
|
349 |
|
|
330 |
|
|
754 |
|
|
459 |
|
Amortization of investments in tax credit partnerships |
|
|
|
|
231 |
|
|
53 |
|
|
262 |
|
|
89 |
|
Capital and deposit based taxes |
|
|
|
|
527 |
|
|
1,225 |
|
|
985 |
|
|
2,255 |
|
Merger expenses |
|
|
|
|
18,100 |
|
|
- |
|
|
18,500 |
|
|
- |
|
Federal Home Loan Bank early termination penalty |
|
|
|
|
474 |
|
|
- |
|
|
474 |
|
|
- |
|
Other |
|
|
|
|
1,611 |
|
|
993 |
|
|
2,711 |
|
|
1,799 |
|
Total non-interest expenses |
|
|
|
|
48,177 |
|
|
23,409 |
|
|
73,150 |
|
|
46,984 |
|
Income before income tax expense |
|
|
|
|
5,048 |
|
|
15,716 |
|
|
33,219 |
|
|
31,198 |
|
Income tax expense |
|
|
|
|
864 |
|
|
2,348 |
|
|
6,325 |
|
|
4,598 |
|
Net income |
|
|
|
|
$ |
4,184 |
|
|
$ |
13,368 |
|
|
$ |
26,894 |
|
|
$ |
26,600 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Basic |
|
|
|
|
$ |
0.17 |
|
|
$ |
0.59 |
|
|
$ |
1.14 |
|
|
$ |
1.18 |
|
Net income per share - Diluted |
|
|
|
|
0.17 |
|
|
0.59 |
|
|
1.13 |
|
|
1.17 |
|
Cash dividend declared per share |
|
|
|
|
0.27 |
|
|
0.27 |
|
|
0.54 |
|
|
0.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic |
|
|
|
|
24,140 |
|
|
22,560 |
|
|
23,489 |
|
|
22,538 |
|
Weighted average shares - Diluted |
|
|
|
|
24,379 |
|
|
22,739 |
|
|
23,731 |
|
|
22,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, |
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
|
|
|
|
|
$ |
4,206,392 |
|
|
$ |
3,464,077 |
|
Allowance for credit losses on loans |
|
|
|
|
|
|
|
|
|
|
59,424 |
|
|
47,708 |
|
Total assets |
|
|
|
|
|
|
|
|
|
|
6,088,072 |
|
|
4,334,533 |
|
Non-interest bearing deposits |
|
|
|
|
|
|
|
|
|
|
1,743,953 |
|
|
1,205,253 |
|
Interest bearing deposits |
|
|
|
|
|
|
|
|
|
|
3,516,153 |
|
|
2,521,903 |
|
FHLB advances |
|
|
|
|
|
|
|
|
|
|
10,000 |
|
|
61,432 |
|
Stockholders' equity |
|
|
|
|
|
|
|
|
|
|
651,089 |
|
|
420,231 |
|
Total shares outstanding |
|
|
|
|
|
|
|
|
|
|
26,588 |
|
|
22,667 |
|
Book value per share (1) |
|
|
|
|
|
|
|
|
|
|
$ |
24.49 |
|
|
$ |
18.54 |
|
Tangible common equity per share (1) |
|
|
|
|
|
|
|
|
|
|
19.16 |
|
|
17.89 |
|
Market value per share |
|
|
|
|
|
|
|
|
|
|
50.89 |
|
|
40.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
|
Second Quarter 2021 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
|
June 30, |
|
June 30, |
Average Balance Sheet Data |
|
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest bearing due from banks |
|
|
|
|
$ |
313,954 |
|
|
$ |
285,617 |
|
|
$ |
274,880 |
|
|
$ |
227,090 |
|
Mortgage loans held for sale |
|
|
|
|
8,678 |
|
|
18,010 |
|
|
11,632 |
|
|
11,481 |
|
Available for sale debt securities |
|
|
|
|
793,696 |
|
|
412,368 |
|
|
727,801 |
|
|
429,525 |
|
FHLB stock |
|
|
|
|
11,924 |
|
|
11,284 |
|
|
11,285 |
|
|
11,284 |
|
Loans |
|
|
|
|
3,844,662 |
|
|
3,396,767 |
|
|
3,725,871 |
|
|
3,144,218 |
|
Total interest earning assets |
|
|
|
|
4,972,914 |
|
|
4,124,046 |
|
|
4,751,469 |
|
|
3,823,598 |
|
Total assets |
|
|
|
|
5,226,654 |
|
|
4,317,430 |
|
|
4,970,172 |
|
|
4,013,775 |
|
Interest bearing deposits |
|
|
|
|
3,055,360 |
|
|
2,500,315 |
|
|
2,936,334 |
|
|
2,408,545 |
|
Total deposits |
|
|
|
|
4,552,583 |
|
|
3,713,451 |
|
|
4,324,647 |
|
|
3,416,847 |
|
Securities sold under agreement to repurchase and other short term
borrowings |
|
|
|
|
66,591 |
|
|
49,940 |
|
|
61,592 |
|
|
46,840 |
|
FHLB advances |
|
|
|
|
19,135 |
|
|
63,896 |
|
|
24,174 |
|
|
68,918 |
|
Total interest bearing liabilities |
|
|
|
|
3,141,086 |
|
|
2,614,151 |
|
|
3,022,100 |
|
|
2,524,303 |
|
Total stockholders' equity |
|
|
|
|
516,427 |
|
|
416,920 |
|
|
480,822 |
|
|
410,311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets (7) |
|
|
|
|
0.32 |
% |
|
1.25 |
% |
|
1.09 |
% |
|
1.33 |
% |
Annualized return on average equity (7) |
|
|
|
|
3.25 |
% |
|
12.90 |
% |
|
11.28 |
% |
|
13.04 |
% |
Net interest margin, fully tax equivalent |
|
|
|
|
3.36 |
% |
|
3.27 |
% |
|
3.38 |
% |
|
3.47 |
% |
Non-interest income to total revenue, fully tax equivalent |
|
|
|
|
27.48 |
% |
|
27.32 |
% |
|
27.14 |
% |
|
27.58 |
% |
Efficiency ratio, fully tax equivalent (4) |
|
|
|
|
83.86 |
% |
|
50.67 |
% |
|
67.01 |
% |
|
51.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets (1) |
|
|
|
|
|
|
|
|
|
|
10.69 |
% |
|
9.69 |
% |
Tangible common equity to tangible assets (1) |
|
|
|
|
|
|
|
|
|
|
8.57 |
% |
|
9.39 |
% |
Average stockholders' equity to average assets |
|
|
|
|
|
|
|
|
|
|
9.67 |
% |
|
10.22 |
% |
Total risk-based capital |
|
|
|
|
|
|
|
|
|
|
12.80 |
% |
|
13.50 |
% |
Common equity tier 1 risk-based capital |
|
|
|
|
|
|
|
|
|
|
11.79 |
% |
|
12.39 |
% |
Tier 1 risk-based capital |
|
|
|
|
|
|
|
|
|
|
11.79 |
% |
|
12.39 |
% |
Leverage |
|
|
|
|
|
|
|
|
|
|
10.26 |
% |
|
9.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan Segmentation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate - non-owner occupied |
|
|
|
|
|
|
|
|
|
|
$ |
1,170,461 |
|
|
$ |
815,464 |
|
Commercial real estate - owner occupied |
|
|
|
|
|
|
|
|
|
|
604,120 |
|
|
472,457 |
|
Commercial and industrial |
|
|
|
|
|
|
|
|
|
|
872,306 |
|
|
764,480 |
|
Commercial and industrial - PPP |
|
|
|
|
|
|
|
|
|
|
377,021 |
|
|
630,082 |
|
Residential real estate - owner occupied |
|
|
|
|
|
|
|
|
|
|
377,783 |
|
|
215,891 |
|
Residential real estate - non-owner occupied |
|
|
|
|
|
|
|
|
|
|
273,782 |
|
|
139,121 |
|
Construction and land development |
|
|
|
|
|
|
|
|
|
|
281,149 |
|
|
255,447 |
|
Home equity lines of credit |
|
|
|
|
|
|
|
|
|
|
142,468 |
|
|
103,672 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
78,171 |
|
|
43,758 |
|
Leases |
|
|
|
|
|
|
|
|
|
|
14,171 |
|
|
14,843 |
|
Credit cards - commercial |
|
|
|
|
|
|
|
|
|
|
14,960 |
|
|
8,862 |
|
Total loans and leases |
|
|
|
|
|
|
|
|
|
|
$ |
4,206,392 |
|
|
$ |
3,464,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
|
|
|
|
|
|
|
|
|
$ |
12,814 |
|
|
$ |
14,262 |
|
Troubled debt restructurings |
|
|
|
|
|
|
|
|
|
|
14 |
|
|
45 |
|
Loans past due 90 days or more and still accruing |
|
|
|
|
|
|
|
|
|
|
1,050 |
|
|
48 |
|
Total non-performing loans |
|
|
|
|
|
|
|
|
|
|
13,878 |
|
|
14,355 |
|
Other real estate owned |
|
|
|
|
|
|
|
|
|
|
648 |
|
|
493 |
|
Total non-performing assets |
|
|
|
|
|
|
|
|
|
|
$ |
14,526 |
|
|
$ |
14,848 |
|
Non-performing loans to total loans (2) |
|
|
|
|
|
|
|
|
|
|
0.33 |
% |
|
0.41 |
% |
Non-performing assets to total assets |
|
|
|
|
|
|
|
|
|
|
0.24 |
% |
|
0.34 |
% |
Allowance for credit losses on loans to total loans (2) |
|
|
|
|
|
|
|
|
|
|
1.41 |
% |
|
1.38 |
% |
Allowance for credit losses on loans to average loans |
|
|
|
|
|
|
|
|
|
|
1.59 |
% |
|
1.52 |
% |
|
Allowance for credit losses on loans to non-performing loans |
|
|
|
|
|
|
|
|
|
|
428 |
% |
|
332 |
% |
Net (charge-offs) recoveries |
|
|
|
|
$ |
(2,743 |
) |
|
$ |
15 |
|
|
$ |
(2,749 |
) |
|
$ |
(39 |
) |
Net (charge-offs) recoveries to average loans (5) |
|
|
|
|
-0.07 |
% |
|
0.00 |
% |
|
-0.07 |
% |
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
Second Quarter 2021 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
Income Statement Data |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, fully tax equivalent (3) |
|
$ |
41,661 |
|
|
$ |
37,874 |
|
|
$ |
36,301 |
|
|
$ |
33,768 |
|
|
$ |
33,573 |
|
Net interest income |
|
$ |
41,584 |
|
|
$ |
37,825 |
|
|
$ |
36,252 |
|
|
$ |
33,695 |
|
|
$ |
33,528 |
|
Provision for credit losses (6) |
|
4,147 |
|
|
(1,475 |
) |
|
500 |
|
|
4,968 |
|
|
7,025 |
|
Net interest income after provision for credit losses |
|
37,437 |
|
|
39,300 |
|
|
35,752 |
|
|
28,727 |
|
|
26,503 |
|
Non-interest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth management and trust services |
|
6,858 |
|
|
6,248 |
|
|
5,805 |
|
|
5,657 |
|
|
5,726 |
|
Deposit service charges |
|
1,233 |
|
|
944 |
|
|
1,080 |
|
|
998 |
|
|
800 |
|
Debit and credit card income |
|
3,284 |
|
|
2,273 |
|
|
2,219 |
|
|
2,218 |
|
|
2,063 |
|
Treasury management fees |
|
1,730 |
|
|
1,540 |
|
|
1,506 |
|
|
1,368 |
|
|
1,249 |
|
Mortgage banking income |
|
1,303 |
|
|
1,444 |
|
|
1,708 |
|
|
1,979 |
|
|
1,622 |
|
Net investment product sales commissions and fees |
|
545 |
|
|
464 |
|
|
487 |
|
|
431 |
|
|
391 |
|
Bank owned life insurance |
|
206 |
|
|
161 |
|
|
166 |
|
|
172 |
|
|
176 |
|
Other |
|
629 |
|
|
770 |
|
|
727 |
|
|
220 |
|
|
595 |
|
Total non-interest income |
|
15,788 |
|
|
13,844 |
|
|
13,698 |
|
|
13,043 |
|
|
12,622 |
|
Non-interest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation |
|
15,680 |
|
|
12,827 |
|
|
14,072 |
|
|
13,300 |
|
|
11,763 |
|
Employee benefits |
|
3,367 |
|
|
3,261 |
|
|
2,173 |
|
|
2,853 |
|
|
2,871 |
|
Net occupancy and equipment |
|
2,244 |
|
|
2,045 |
|
|
2,137 |
|
|
2,177 |
|
|
2,037 |
|
Technology and communication |
|
2,670 |
|
|
2,346 |
|
|
2,347 |
|
|
2,323 |
|
|
1,999 |
|
Debit and credit card processing |
|
976 |
|
|
705 |
|
|
698 |
|
|
649 |
|
|
603 |
|
Marketing and business development |
|
822 |
|
|
524 |
|
|
835 |
|
|
523 |
|
|
465 |
|
Postage, printing and supplies |
|
460 |
|
|
409 |
|
|
423 |
|
|
472 |
|
|
442 |
|
Legal and professional |
|
666 |
|
|
462 |
|
|
597 |
|
|
544 |
|
|
628 |
|
FDIC Insurance |
|
349 |
|
|
405 |
|
|
323 |
|
|
435 |
|
|
330 |
|
Amortization of investments in tax credit partnerships |
|
231 |
|
|
31 |
|
|
2,955 |
|
|
52 |
|
|
53 |
|
Capital and deposit based taxes |
|
527 |
|
|
458 |
|
|
1,055 |
|
|
1,076 |
|
|
1,225 |
|
Merger expenses |
|
18,100 |
|
|
400 |
|
|
- |
|
|
- |
|
|
- |
|
Federal Home Loan Bank early termination penalty |
|
474 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Other |
|
1,611 |
|
|
1,100 |
|
|
1,414 |
|
|
1,242 |
|
|
993 |
|
Total non-interest expenses |
|
48,177 |
|
|
24,973 |
|
|
29,029 |
|
|
25,646 |
|
|
23,409 |
|
Income before income tax expense |
|
5,048 |
|
|
28,171 |
|
|
20,421 |
|
|
16,124 |
|
|
15,716 |
|
Income tax expense |
|
864 |
|
|
5,461 |
|
|
2,685 |
|
|
1,591 |
|
|
2,348 |
|
Net income |
|
$ |
4,184 |
|
|
$ |
22,710 |
|
|
$ |
17,736 |
|
|
$ |
14,533 |
|
|
$ |
13,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - Basic |
|
$ |
0.17 |
|
|
$ |
1.00 |
|
|
$ |
0.79 |
|
|
$ |
0.64 |
|
|
$ |
0.59 |
|
Net income per share - Diluted |
|
0.17 |
|
|
0.99 |
|
|
0.78 |
|
|
0.64 |
|
|
0.59 |
|
Cash dividend declared per share |
|
0.27 |
|
|
0.27 |
|
|
0.27 |
|
|
0.27 |
|
|
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares - Basic |
|
24,140 |
|
|
22,622 |
|
|
22,593 |
|
|
22,582 |
|
|
22,560 |
|
Weighted average shares - Diluted |
|
24,379 |
|
|
22,865 |
|
|
22,794 |
|
|
22,802 |
|
|
22,739 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
Balance Sheet Data |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
58,477 |
|
|
$ |
43,061 |
|
|
$ |
43,179 |
|
|
$ |
49,517 |
|
|
$ |
46,362 |
|
Federal funds sold and interest bearing due from banks |
|
481,716 |
|
|
289,920 |
|
|
274,766 |
|
|
241,486 |
|
|
178,032 |
|
Mortgage loans held for sale |
|
5,420 |
|
|
6,579 |
|
|
22,547 |
|
|
23,611 |
|
|
17,364 |
|
Available for sale debt securities |
|
1,006,908 |
|
|
672,167 |
|
|
586,978 |
|
|
429,184 |
|
|
485,249 |
|
FHLB stock |
|
14,475 |
|
|
10,228 |
|
|
11,284 |
|
|
11,284 |
|
|
11,284 |
|
Loans |
|
4,206,392 |
|
|
3,635,156 |
|
|
3,531,596 |
|
|
3,472,481 |
|
|
3,464,077 |
|
Allowance for credit losses on loans |
|
59,424 |
|
|
50,714 |
|
|
51,920 |
|
|
50,501 |
|
|
47,708 |
|
Total assets |
|
6,088,072 |
|
|
4,794,075 |
|
|
4,608,629 |
|
|
4,365,129 |
|
|
4,334,533 |
|
Non-interest bearing deposits |
|
1,743,953 |
|
|
1,370,183 |
|
|
1,187,057 |
|
|
1,180,001 |
|
|
1,205,253 |
|
Interest bearing deposits |
|
3,516,153 |
|
|
2,829,779 |
|
|
2,801,577 |
|
|
2,574,517 |
|
|
2,521,903 |
|
Securities sold under agreements to repurchase |
|
63,942 |
|
|
51,681 |
|
|
47,979 |
|
|
40,430 |
|
|
42,722 |
|
Federal funds purchased |
|
10,947 |
|
|
8,642 |
|
|
11,464 |
|
|
9,179 |
|
|
8,401 |
|
FHLB advances |
|
10,000 |
|
|
24,180 |
|
|
31,639 |
|
|
56,536 |
|
|
61,432 |
|
Stockholders' equity |
|
651,089 |
|
|
443,232 |
|
|
440,701 |
|
|
428,598 |
|
|
420,231 |
|
Total shares outstanding |
|
26,588 |
|
|
22,781 |
|
|
22,692 |
|
|
22,692 |
|
|
22,667 |
|
Book value per share (1) |
|
$ |
24.49 |
|
|
$ |
19.46 |
|
|
$ |
19.42 |
|
|
$ |
18.89 |
|
|
$ |
18.54 |
|
Tangible common equity per share (1) |
|
19.16 |
|
|
18.82 |
|
|
18.78 |
|
|
18.25 |
|
|
17.89 |
|
Market value per share |
|
50.89 |
|
|
51.06 |
|
|
40.48 |
|
|
34.04 |
|
|
40.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets (1) |
|
10.69 |
% |
|
9.25 |
% |
|
9.56 |
% |
|
9.82 |
% |
|
9.69 |
% |
Tangible common equity to tangible assets (1) |
|
8.57 |
% |
|
8.97 |
% |
|
9.28 |
% |
|
9.52 |
% |
|
9.39 |
% |
Average stockholders' equity to average assets |
|
9.88 |
% |
|
9.44 |
% |
|
9.61 |
% |
|
9.85 |
% |
|
9.66 |
% |
Total risk-based capital |
|
12.80 |
% |
|
13.39 |
% |
|
13.36 |
% |
|
13.79 |
% |
|
13.50 |
% |
Common equity tier 1 risk-based capital |
|
11.79 |
% |
|
12.32 |
% |
|
12.23 |
% |
|
12.61 |
% |
|
12.39 |
% |
Tier 1 risk-based capital |
|
11.79 |
% |
|
12.32 |
% |
|
12.23 |
% |
|
12.61 |
% |
|
12.39 |
% |
Leverage |
|
10.26 |
% |
|
9.46 |
% |
|
9.57 |
% |
|
9.70 |
% |
|
9.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Yards Bancorp, Inc. Financial Information
(unaudited) |
|
Second Quarter 2021 Earnings Release |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Comparison |
Average Balance Sheet Data |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold and interest bearing due from banks |
|
$ |
313,954 |
|
|
$ |
235,370 |
|
|
$ |
271,277 |
|
|
$ |
194,100 |
|
|
$ |
285,617 |
|
Mortgage loans held for sale |
|
8,678 |
|
|
14,618 |
|
|
28,951 |
|
|
28,520 |
|
|
18,010 |
|
Available for sale debt securities |
|
793,696 |
|
|
661,175 |
|
|
510,677 |
|
|
442,089 |
|
|
412,368 |
|
Loans |
|
3,844,662 |
|
|
3,605,760 |
|
|
3,483,298 |
|
|
3,444,407 |
|
|
3,396,767 |
|
Total interest earning assets |
|
4,972,914 |
|
|
4,527,563 |
|
|
4,305,487 |
|
|
4,120,400 |
|
|
4,124,046 |
|
Total assets |
|
5,226,654 |
|
|
4,710,836 |
|
|
4,512,874 |
|
|
4,325,500 |
|
|
4,317,430 |
|
Interest bearing deposits |
|
3,055,360 |
|
|
2,815,986 |
|
|
2,689,103 |
|
|
2,521,838 |
|
|
2,500,315 |
|
Total deposits |
|
4,552,583 |
|
|
4,094,179 |
|
|
3,888,247 |
|
|
3,707,845 |
|
|
3,713,451 |
|
Securities sold under agreement to repurchase |
|
66,591 |
|
|
56,536 |
|
|
55,825 |
|
|
49,709 |
|
|
49,940 |
|
FHLB advances |
|
19,135 |
|
|
29,270 |
|
|
48,771 |
|
|
59,487 |
|
|
63,896 |
|
Total interest bearing liabilities |
|
3,141,086 |
|
|
2,901,792 |
|
|
2,793,699 |
|
|
2,631,034 |
|
|
2,614,151 |
|
Total stockholders' equity |
|
516,427 |
|
|
444,821 |
|
|
433,596 |
|
|
426,049 |
|
|
416,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performance Ratios |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized return on average assets (7) |
|
0.32 |
% |
|
1.96 |
% |
|
1.56 |
% |
|
1.34 |
% |
|
1.25 |
% |
Annualized return on average equity (7) |
|
3.25 |
% |
|
20.71 |
% |
|
16.27 |
% |
|
13.57 |
% |
|
12.90 |
% |
Net interest margin, fully tax equivalent |
|
3.36 |
% |
|
3.39 |
% |
|
3.35 |
% |
|
3.26 |
% |
|
3.27 |
% |
Non-interest income to total revenue, fully tax equivalent |
|
27.48 |
% |
|
26.77 |
% |
|
27.40 |
% |
|
27.86 |
% |
|
27.32 |
% |
Efficiency ratio, fully tax equivalent (4) |
|
83.86 |
% |
|
48.29 |
% |
|
58.06 |
% |
|
54.79 |
% |
|
50.67 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Segmentation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate - non-owner occupied |
|
$ |
1,170,461 |
|
|
$ |
876,523 |
|
|
$ |
833,470 |
|
|
$ |
828,328 |
|
|
$ |
815,464 |
|
Commercial real estate - owner occupied |
|
604,120 |
|
|
527,316 |
|
|
508,672 |
|
|
492,825 |
|
|
472,457 |
|
Commercial and industrial |
|
872,306 |
|
|
769,773 |
|
|
802,422 |
|
|
731,850 |
|
|
764,480 |
|
Commercial and industrial - PPP |
|
377,021 |
|
|
612,885 |
|
|
550,186 |
|
|
642,056 |
|
|
630,082 |
|
Residential real estate - owner occupied |
|
377,783 |
|
|
262,516 |
|
|
239,191 |
|
|
211,984 |
|
|
215,891 |
|
Residential real estate - non-owner occupied |
|
273,782 |
|
|
136,380 |
|
|
140,930 |
|
|
143,149 |
|
|
139,121 |
|
Construction and land development |
|
281,149 |
|
|
281,815 |
|
|
291,764 |
|
|
257,875 |
|
|
255,447 |
|
Home equity lines of credit |
|
142,468 |
|
|
91,233 |
|
|
95,366 |
|
|
97,150 |
|
|
103,672 |
|
Consumer |
|
78,171 |
|
|
51,058 |
|
|
44,606 |
|
|
44,161 |
|
|
43,758 |
|
Leases |
|
14,171 |
|
|
14,115 |
|
|
14,786 |
|
|
13,981 |
|
|
14,843 |
|
Credit cards - commercial |
|
14,960 |
|
|
11,542 |
|
|
10,203 |
|
|
9,122 |
|
|
8,862 |
|
Total loans and leases |
|
$ |
4,206,392 |
|
|
$ |
3,635,156 |
|
|
$ |
3,531,596 |
|
|
$ |
3,472,481 |
|
|
$ |
3,464,077 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-accrual loans |
|
$ |
12,814 |
|
|
$ |
12,913 |
|
|
$ |
12,514 |
|
|
$ |
12,358 |
|
|
$ |
14,262 |
|
Troubled debt restructurings |
|
14 |
|
|
15 |
|
|
16 |
|
|
18 |
|
|
45 |
|
Loans past due 90 days or more and still accruing |
|
1,050 |
|
|
1,377 |
|
|
649 |
|
|
1,152 |
|
|
48 |
|
Total non-performing loans |
|
13,878 |
|
|
14,305 |
|
|
13,179 |
|
|
13,528 |
|
|
14,355 |
|
Other real estate owned |
|
648 |
|
|
281 |
|
|
281 |
|
|
612 |
|
|
493 |
|
Total non-performing assets |
|
$ |
14,526 |
|
|
$ |
14,586 |
|
|
$ |
13,460 |
|
|
$ |
14,140 |
|
|
$ |
14,848 |
|
Non-performing loans to total loans (2) |
|
0.33 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.39 |
% |
|
0.41 |
% |
Non-performing assets to total assets |
|
0.24 |
% |
|
0.30 |
% |
|
0.29 |
% |
|
0.32 |
% |
|
0.34 |
% |
Allowance for credit losses on loans to total loans (2) |
|
1.41 |
% |
|
1.40 |
% |
|
1.47 |
% |
|
1.45 |
% |
|
1.38 |
% |
Allowance for credit losses on loans to average loans |
|
1.55 |
% |
|
1.41 |
% |
|
1.49 |
% |
|
1.47 |
% |
|
1.40 |
% |
Allowance for credit losses on loans to non-performing loans |
|
428 |
% |
|
355 |
% |
|
394 |
% |
|
373 |
% |
|
332 |
% |
Net (charge-offs) recoveries |
|
$ |
(2,743 |
) |
|
$ |
(6 |
) |
|
$ |
19 |
|
|
$ |
(1,625 |
) |
|
$ |
15 |
|
Net (charge-offs) recoveries to average loans (5) |
|
-0.07 |
% |
|
0.00 |
% |
|
0.00 |
% |
|
-0.05% |
|
|
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets under management (in millions) |
|
$ |
4,440 |
|
|
$ |
3,989 |
|
|
$ |
3,852 |
|
|
$ |
3,414 |
|
|
$ |
3,204 |
|
Full-time equivalent employees |
|
823 |
|
|
638 |
|
|
641 |
|
|
626 |
|
|
620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity - GAAP (a) |
|
$ |
651,089 |
|
|
$ |
443,232 |
|
|
$ |
440,701 |
|
|
$ |
428,598 |
|
|
$ |
420,231 |
|
Less: Goodwill |
|
(136,529 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
Less: Core deposit intangible |
|
(5,162 |
) |
|
(1,885 |
) |
|
(1,962 |
) |
|
(2,042 |
) |
|
(2,122 |
) |
Tangible common equity - Non-GAAP (c) |
|
$ |
509,398 |
|
|
$ |
428,834 |
|
|
$ |
426,226 |
|
|
$ |
414,043 |
|
|
$ |
405,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets - GAAP (b) |
|
$ |
6,088,072 |
|
|
$ |
4,794,075 |
|
|
$ |
4,608,629 |
|
|
$ |
4,365,129 |
|
|
$ |
4,334,533 |
|
Less: Goodwill |
|
(136,529 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
|
(12,513 |
) |
Less: Core deposit intangible |
|
(5,162 |
) |
|
(1,885 |
) |
|
(1,962 |
) |
|
(2,042 |
) |
|
(2,122 |
) |
Tangible assets - Non-GAAP (d) |
|
$ |
5,946,381 |
|
|
$ |
4,779,677 |
|
|
$ |
4,594,154 |
|
|
$ |
4,350,574 |
|
|
$ |
4,319,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity to total assets - GAAP (a/b) |
|
10.69 |
% |
|
9.25 |
% |
|
9.56 |
% |
|
9.82 |
% |
|
9.69 |
% |
Tangible common equity to tangible assets - Non-GAAP (c/d) |
|
8.57 |
% |
|
8.97 |
% |
|
9.28 |
% |
|
9.52 |
% |
|
9.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shares outstanding (e) |
|
26,588 |
|
|
22,781 |
|
|
22,692 |
|
|
22,692 |
|
|
22,667 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per share - GAAP (a/e) |
|
$ |
24.49 |
|
|
$ |
19.46 |
|
|
$ |
19.42 |
|
|
$ |
18.89 |
|
|
$ |
18.54 |
|
Tangible common equity per share - Non-GAAP (c/e) |
|
19.16 |
|
|
18.82 |
|
|
18.78 |
|
|
18.25 |
|
|
17.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) - Allowance for credit losses on loans to total non-PPP loans
represents the allowance for credit losses on loans, divided by
total loans less PPP loans. Non-performing loans to total non-PPP
loans represents non-performing loans, divided by total loans less
PPP loans. Bancorp believes these non-GAAP disclosures are
important because they provide a comparable ratio after eliminating
the PPP loans, which are fully guaranteed by the U.S. SBA and have
not been allocated for within the allowance for credit losses on
loans and are not at risk of non-performance. |
|
|
Quarterly Comparison |
(Dollars in thousands) |
|
6/30/21 |
|
|
3/31/21 |
|
|
12/31/20 |
|
|
9/30/20 |
|
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans - GAAP (a) |
|
$ |
4,206,392 |
|
|
$ |
3,635,156 |
|
|
$ |
3,531,596 |
|
|
$ |
3,472,481 |
|
|
$ |
3,464,077 |
|
Less: PPP loans |
|
(377,021 |
) |
|
(612,885 |
) |
|
(550,186 |
) |
|
(642,056 |
) |
|
(630,082 |
) |
Total non-PPP Loans - Non-GAAP (b) |
|
3,829,371 |
|
|
3,022,271 |
|
|
2,981,410 |
|
|
2,830,425 |
|
|
2,833,995 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans (c) |
|
$ |
59,424 |
|
|
$ |
50,714 |
|
|
$ |
51,920 |
|
|
$ |
50,501 |
|
|
$ |
47,708 |
|
Non-performing loans (d) |
|
13,878 |
|
|
14,305 |
|
|
13,179 |
|
|
13,528 |
|
|
14,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses on loans to total loans - GAAP
(c/a) |
|
1.41 |
% |
|
1.40 |
% |
|
1.47 |
% |
|
1.45 |
% |
|
1.38 |
% |
Allowance for credit losses on loans to total loans - Non-GAAP
(c/b) |
|
1.55 |
% |
|
1.68 |
% |
|
1.74 |
% |
|
1.78 |
% |
|
1.68 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing loans to total loans - GAAP (d/a) |
|
0.33 |
% |
|
0.39 |
% |
|
0.37 |
% |
|
0.39 |
% |
|
0.41 |
% |
Non-performing loans to total loans - Non-GAAP (d/b) |
|
0.36 |
% |
|
0.47 |
% |
|
0.44 |
% |
|
0.48 |
% |
|
0.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) - Interest income on a FTE basis includes the additional amount
of interest income that would have been earned if investments in
certain tax-exempt interest earning assets had been made in assets
subject to federal, state and local taxes yielding the same
after-tax income. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4) - The efficiency ratio, a non-GAAP measure, equals total
non-interest expenses divided by the sum of net interest income
(FTE) and non-interest income. The ratio excludes net gains
(losses) on sales, calls, and impairment of investment securities,
if applicable. In addition to the efficiency ratio presented,
Bancorp considers an adjusted efficiency ratio to be important
because it provides a comparable ratio after eliminating the
fluctuation in non-interest expenses related to amortization of
investments in tax credit partnerships and non-recurring merger
expenses. |
|
|
Quarterly Comparison |
(Dollars in thousands) |
|
6/30/21 |
|
|
3/31/21 |
|
|
12/31/20 |
|
|
9/30/20 |
|
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-interest expenses - GAAP (a) |
|
$ |
48,177 |
|
|
$ |
24,973 |
|
|
$ |
29,029 |
|
|
$ |
25,646 |
|
|
$ |
23,409 |
|
Less: Non-recurring merger expenses |
|
(18,100 |
) |
|
(400 |
) |
|
- |
|
|
- |
|
|
- |
|
Less: Amortization of investments in tax credit partnerships |
|
(231 |
) |
|
(31 |
) |
|
(2,955 |
) |
|
(52 |
) |
|
(53 |
) |
Total non-interest expenses - Non-GAAP (c) |
|
$ |
29,846 |
|
|
$ |
24,542 |
|
|
$ |
26,074 |
|
|
$ |
25,594 |
|
|
$ |
23,356 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total net interest income, fully tax equivalent |
|
$ |
41,661 |
|
|
$ |
37,874 |
|
|
$ |
36,301 |
|
|
$ |
33,768 |
|
|
$ |
33,573 |
|
Total non-interest income |
|
15,788 |
|
|
13,844 |
|
|
13,698 |
|
|
13,043 |
|
|
12,622 |
|
Less: Gain/loss on sale of securities |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total revenue - GAAP (b) |
|
$ |
57,449 |
|
|
$ |
51,718 |
|
|
$ |
49,999 |
|
|
$ |
46,811 |
|
|
$ |
46,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - GAAP (a/b) |
|
83.86 |
% |
|
48.29 |
% |
|
58.06 |
% |
|
54.79 |
% |
|
50.67 |
% |
Efficiency ratio - Non-GAAP (c/b) |
|
51.95 |
% |
|
47.45 |
% |
|
52.15 |
% |
|
54.68 |
% |
|
50.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5) - Quarterly net (charge-offs) recoveries to average loans
ratios are not annualized. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6) - Effective for the three month period ended March 31, 2020,
the Company has reclassified credit loss expense for off-balance
sheet exposures from non-interest expense to provision for credit
losses and combined this with the provision for losses on loans on
the face of the income statement. |
|
|
Quarterly Comparison |
(in thousands) |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for credit losses - loans |
|
$ |
4,697 |
|
|
$ |
(1,200 |
) |
|
$ |
1,400 |
|
|
$ |
4,418 |
|
|
$ |
5,550 |
|
Provision for credit losses - off balance sheet exposures |
|
(550 |
) |
|
(275 |
) |
|
(900 |
) |
|
550 |
|
|
1,475 |
|
Total provision for credit losses |
|
4,147 |
|
|
(1,475 |
) |
|
500 |
|
|
4,968 |
|
|
7,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7) - Return on
average assets equals net income divided by total average assets,
annualized to reflect a full year return on average assets.
Similarly, return on average equity equals net income divided by
total average equity, annualized to reflect a full year return on
average equity. As a result of the substantial impact that
non-recurring items related to the Kentucky Bancshares acquisition
had on results for the three and six months ended June 30, 2021,
Bancorp considers adjusted return on average assets and return on
average equity ratios important as they reflect performance after
removing certain merger expenses and purchase accounting
adjustments. |
|
|
Quarterly Comparison |
(Dollars in thousands) |
|
6/30/21 |
|
3/31/21 |
|
12/31/20 |
|
9/30/20 |
|
6/30/20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported (a) |
|
$ |
4,184 |
|
|
$ |
22,710 |
|
|
$ |
17,736 |
|
|
$ |
14,533 |
|
|
$ |
13,368 |
|
Add: Non-recurring merger expenses |
|
18,100 |
|
|
400 |
|
|
- |
|
|
- |
|
|
- |
|
Add: Provision for credit losses on non-PCD loans |
|
7,397 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Less: Tax effect of adjustments to net income |
|
(5,354 |
) |
|
(84 |
) |
|
- |
|
|
- |
|
|
- |
|
Total net income - Non-GAAP (b) |
|
$ |
24,327 |
|
|
$ |
23,026 |
|
|
$ |
17,736 |
|
|
$ |
14,533 |
|
|
$ |
13,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average assets (c) |
|
$ |
5,226,654 |
|
|
$ |
4,710,836 |
|
|
$ |
4,512,874 |
|
|
$ |
4,325,500 |
|
|
$ |
4,317,430 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total average equity (d ) |
|
516,427 |
|
|
444,821 |
|
|
433,596 |
|
|
426,049 |
|
|
416,920 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets - GAAP (a/c) |
|
0.32 |
% |
|
1.96 |
% |
|
1.56 |
% |
|
1.34 |
% |
|
1.25 |
% |
Return on average assets - Non-GAAP (b/c) |
|
1.87 |
% |
|
1.98 |
% |
|
1.56 |
% |
|
1.34 |
% |
|
1.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average equity - GAAP (a/d) |
|
3.25 |
% |
|
20.71 |
% |
|
16.27 |
% |
|
13.57 |
% |
|
12.90 |
% |
Return on average equity - Non-GAAP (b/d) |
|
18.89 |
% |
|
20.71 |
% |
|
16.27 |
% |
|
13.57 |
% |
|
12.90 |
% |
Contact:T. Clay StinnettExecutive Vice President,Treasurer and
Chief Financial Officer(502) 625-0890
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