Stock Yards Bancorp Reports First Quarter Earnings of $25.9 Million or $0.88 Per Diluted Share
LOUISVILLE, Ky., April 24, 2024 (GLOBE NEWSWIRE) -- Stock Yards Bancorp, Inc. (NASDAQ:SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported earnings of $25.9 million, or $0.88 per diluted share, for the first quarter ended March 31, 2024. This compares to net income of $29.0 million, or $0.99 per diluted share, for the first quarter of 2023. Steady loan growth, strong asset quality and robust non-interest income generation contributed to first quarter operating results.
| (dollar amounts in thousands, except per share data) | 1Q24 | 4Q23 | 1Q23 | ||||||||
| Net income | $ | 25,887 | $ | 23,944 | $ | 29,048 | |||||
| Net income per share, diluted | 0.88 | 0.82 | 0.99 | ||||||||
| Net interest income | $ | 60,070 | $ | 62,016 | $ | 63,072 | |||||
| Provision for credit losses(1) | 1,425 | 6,046 | 2,625 | ||||||||
| Non-interest income | 23,271 | 24,417 | 22,047 | ||||||||
| Non-interest expenses | 48,961 | 50,013 | 45,314 | ||||||||
| Net interest margin | 3.20 | % | 3.25 | % | 3.59 | % | |||||
| Efficiency ratio(2) | 58.68 | % | 57.80 | % | 53.13 | % | |||||
| Tangible common equity to tangible assets(3) | 8.36 | % | 8.09 | % | 7.74 | % | |||||
| Annualized return on average assets(4) | 1.28 | % | 1.17 | % | 1.55 | % | |||||
| Annualized return on average equity(4) | 12.09 | % | 11.62 | % | 15.15 | % | |||||
"It was a great start of the year for us, with steady loan growth, solid asset quality metrics, and diversified non-interest income streams contributing to first quarter 2024 results," commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. "Total loans increased $607 million, or 12%, over the last 12 months, $79 million of which was generated during the first quarter of this year. We continue to see broad-based loan demand from our customers throughout our markets.
"Strong non-interest income once again propelled our operating results for the first quarter of 2024. Wealth Management & Trust (WM&T) posted another record quarter, benefiting from strong equity market performance, coupled with net new business growth and a record $7.50 billion in Assets Under Management (AUM) at quarter end. Strong card income, treasury management and record brokerage fees, driven by increased demand and customer expansion, served to cap off a strong first quarter," Hillebrand continued. "While our net interest margin contracted 5 basis points over the linked quarter, as the increase in cost of funds continued to outpace the growth in yields on earning assets, the pace of net interest margin contraction has begun to moderate. We anticipate net interest margin compression will stabilize during the second quarter of 2024, and we are currently projecting net interest margin expansion before the end of the year."
At March 31, 2024, the Company had $8.12 billion in assets, $5.85 billion in loans and $6.61 billion in total deposits. The Company's combined enterprise, which encompasses 72 branch offices across three contiguous states, will continue to benefit from a diversified geographic footprint that provides significant growth opportunities in both the banking and WM&T arenas.
Key factors contributing to the first quarter of 2024 results included:
- Total loans increased $607 million, or 12%, over the last 12 months, while growing $79 million, or 1%, on the linked quarter. The yield earned on loans increased to 5.95% for the first quarter of 2024, benefiting from interest rate expansion, and to a slightly lesser extent, average balance growth.
- Deposit balances declined $62 million, or 1%, on the linked quarter, as non-interest bearing demand accounts contracted $68 million, or 4%. The fourth quarter of each year reflects elevated cash levels consistent with the seasonal increase in public funds.
- Costs of funds expansion continued to outpace earning asset yield growth during the first quarter of 2024. Net interest income declined $3.0 million, or 5%, for the first quarter of 2024 compared to the first quarter a year ago, with net interest margin compressing 39 bps to 3.20%. On the linked quarter, net interest income declined $1.9 million, or 3%, while net interest margin contracted 5 bps to 3.20%, representing the slowest pace of margin contraction since the first quarter of 2023.
- While credit quality remains stable in comparison to traditional metrics, credit loss expense on loans(1) of $1.2 million was recorded for the first quarter of 2024. Despite modest loan growth and annual CECL model methodology updates, credit loss expense on loans benefited from a slightly improving unemployment forecast, net recoveries and a reduction in specific reserves.
- Non-interest income increased $1.2 million, or 6%, over the first quarter of 2023. WM&T income expanded $1.2 million, or 13%, to a record $10.8 million, benefitting from strong quarterly fees, improved market conditions and net new business expansion. Treasury management fees once again experienced double digit growth, increasing $307,000, or 13% over the last 12 months. While card and brokerage income combined to increase $311,000, other non-interest income declined $576,000 over the first quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.
- Total non-interest expenses increased $3.6 million, or 8%, during the first quarter of 2024 compared to the first quarter of 2023, primarily due to higher compensation and benefits expenses associated with employee growth, annual merit increases and elevated health insurance claims activity. Overall, non-interest expenses generally remained in line with management expectations.
- Tangible common equity per share(3) was $22.50 at March 31, 2024, compared to $21.95 at December 31, 2023, and $19.66 at March 31, 2023. Over the past several quarters, tangible common equity and tangible book value have been impacted by the volatile interest rate market and corresponding impact on accumulated other comprehensive income/loss, primarily as a result of changes in unrealized losses in the available for sale debt securities portfolio, which has a current weighted average life of 5.0 years.
Hillebrand concluded, "In March 2024, S&P Global Market Intelligence once again recognized Stock Yards as one of the Top 50 Best Performing Community Banks with total assets between $3 and $10 billion at the end of 2023. The rankings assess the performance of banking institutions based on returns, growth and funding, while placing a premium on balance sheet strength and risk profile. This recognition showcases the dedication and commitment of our employees and the unmatched service to our communities we operate in."
Results of Operations – First Quarter 2024 Compared with First Quarter 2023
Net interest income, the Company's largest source of revenue, decreased by $3.0 million, or 5%, to $60.1 million. While strong organic loan growth has boosted net interest income over the past 12 months, the cost of interest bearing liabilities more than offset the increase in interest income.
- Total interest income increased by $17.1 million, or 21%, to $96.5 million.
- Interest income and fees on loans increased $17.1 million, or 25%, over the prior year quarter. Consistent with the $572 million, or 11%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 61 basis points over the past 12 months to 5.95%.
- Interest income on securities decreased $783,000, or 9%, compared to the first quarter of 2023. While average securities balances have declined $176 million, or 10%, over the past 12 months, the rate earned on securities remained steady at 2.07%. Over the past 12 months, cash flows from investment portfolio maturities and pay downs have been utilized to fund loan growth and provide liquidity in lieu of redeployment.
- Average overnight funds increased $13.2 million quarter over prior year quarter, with interest income increasing $515,000, or 33% consistent with the increase in the Federal Funds Target Rate.
- Total interest expense increased $20.1 million to $36.5 million, as the cost of interest bearing liabilities increased 127 basis points to 2.65%. For the fourth consecutive linked quarter end, the pace of expansion of total interest bearing liability costs has slowed.
- Interest expense on deposits increased $18.4 million over the past 12 months, as the overall cost of interest bearing deposits increased to 2.53% in the first quarter of 2024 from 1.22% in the first quarter of 2023. Interest expense expansion was spread over the majority of categories, with time deposits expanding the most at $7.9 million.
- Interest expense on Federal Home Loan Bank (FHLB) advances totaled $3.0 million for the first quarter of 2024 compared to $1.7 million for the same period in 2023.
For the first quarter of 2024, consistent with modest loan growth, a slight improvement in unemployment projections, net recoveries, specific reserve reductions and other factors within the CECL allowance model, the Company recorded $1.2 million in credit loss expense(1) for loans. In addition, the Company recorded $250,000 expense for off balance sheet exposures associated with expansion of Construction & Land Development and Commercial & Industrial (C&I) lines of credit (increased availability). For the first quarter of 2023, the Company recorded $2.3 million in credit loss expense for loans and $375,000 provision expense for off balance sheet exposures. In addition, the Bank recorded $1.4 million in specific reserves for one large relationship during the first quarter of 2023.
Non-interest income increased $1.2 million, or 6%, to $23.3 million.
- WM&T income ended the first quarter of 2024 at a record $10.8 million, increasing $1.2 million, or 13%, over the first quarter of 2023. WM&T income benefited significantly from strong first quarter equity market performance, coupled with quarterly fees collected. WM&T AUM expanded $732 million, or 11%, over the past 12 months to a record $7.50 billion at quarter end.
- Treasury management fees increased $307,000, or 13%, compared to the first quarter of 2023, driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income, new product sales and continued expansion of existing relationships.
- Card income increased $200,000, or 4%, over the first quarter of 2023, driven by transaction volume and increased interchange income.
- Other non-interest income declined $576,000 over the first quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.
Non-interest expenses increased $3.6 million, or 8%, compared to the first quarter of 2023, to $49.0 million.
- Compensation expense increased $2.3 million, compared to the first quarter of 2023, consistent with the increase in full time equivalent employees and annual merit-based salary increases.
- Employee benefits increased $823,000, or 16%, compared to the first quarter of 2023, primarily attributed to elevated health insurance claim activity and higher 401(k) matching and payroll tax expenses.
- Net occupancy and equipment expenses decreased $229,000, or 6%, over the first quarter of 2023, primarily due to the relocation of all WM&T employees to a consolidated central location.
- Technology and communication expenses, which include computer software amortization, equipment depreciation and expenditures related to investments in technology needed to maintain and improve the quality of customer delivery channels, information security and internal resources, increased $818,000, or 19%, consistent with compliance related software upgrades, customer expansion and increased transaction activity.
- Card processing expense increased $327,000, consistent with higher interchange processing.
- Legal and professional fees increased $318,000 compared to the first quarter of 2023, led by increased compliance-related consulting in preparation for expanded regulatory oversight in conjunction with future growth in total assets and higher collection related legal expenses.
- Amortization of investments in tax credit partnerships declined $323,000 compared to the first quarter of 2023. Effective January 1, 2024, the Bank adopted ASU 2023-02 and began booking tax credit amortization expense for all income tax credit projects as a component of tax expense via the proportional amortization method.
- Other non-interest expenses declined $284,000, or 10%, compared to the first quarter of 2023, primarily due to the Company's strategic decision to exit its insurance captive in late 2023.
Financial Condition – March 31, 2024 Compared with March 31, 2023
Total assets increased $455 million, or 6%, year over year to $8.12 billion.
Total loans increased $607 million, or 12%, to $5.85 billion, with the commercial real estate, residential real estate and C&I portfolio expanding 12%, 15% and 7%, respectively. In addition to the strong growth, the Company has benefitted from the higher rate environment that has generally slowed loan payoff activity. Total line of credit usage was 38.9% as of March 31, 2024, compared to 41.1% as of March 31, 2023, driven by strong line production and generally slow utilization. C&I line of credit usage was 27.3% as of March 31, 2024, compared to 30.5% as of March 31, 2023.
Total investment securities decreased $221 million, or 14%, year over year. The overall portfolio yield was 2.07% for the first quarter of 2024, which was unchanged from the first quarter of 2023. Over the past 12 months, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.
Total deposits increased $252 million, or 4%, over the past 12 months, led by interest bearing demand, money market and time deposit expansion, which was partially offset by a decline in non-interest bearing demand deposits.
During the first quarter of 2024, the Company recorded net loan recoveries of $348,000. This compares to $108,000 in net charge offs during the first quarter of 2023. Non-performing loans totaled $14 million, or 0.24% of total loans outstanding at March 31, 2024, compared to $18 million, or 0.35% of total loans outstanding at March 31, 2023. The ratio of allowance for credit losses to loans ended at 1.38% at March 31, 2024 compared to 1.44% at March 31, 2023.
At March 31, 2024, the Company continued to be "well-capitalized," the highest regulatory capital rating for financial institutions, with all capital ratios experiencing meaningful growth. Total equity to assets(3) was 10.77% and the tangible common equity ratio(3) was 8.36% at March 31, 2024, compared to 10.36% and 7.74% at March 31, 2023, respectively.
In February 2024, the board of directors declared a quarterly cash dividend of $0.30 per common share. The dividend was paid April 1, 2024 to shareholders of record as of March 18, 2024.
No shares have been purchased since 2020, and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2025.
Results of Operations – First Quarter 2024 Compared with Fourth Quarter 2023
Net interest margin declined 5 basis points on the linked quarter to 3.20%, as cost of funds growth continued to outpace earning asset yield growth.
Net interest income decreased $1.9 million, or 3%, over the prior quarter to $60.1 million.
- Total interest income increased $1.3 million, or 1%, led by the increase in interest income on loans.
- Interest income and fees on loans increased $3.1 million, or 4%, over the linked quarter. Average loans increased $133 million, or 2%, and the corresponding yield earned increased 16 basis points over the linked quarter to 5.95%.
- Average overnight funds decreased $105 million over the linked quarter with interest income decreasing $1.4 million. The fourth quarter of each year reflects elevated cash levels consistent with the seasonal increase in public funds.
- Total interest expense increased $3.3 million, or 10%, led by a $2.2 million, or 7%, increase in the cost of interest-bearing deposits.
The Company recorded $1.4 million in provision for credit losses(1) during the first quarter of 2024, which included a $1.2 million provision for credit losses on loans and $250,000 of credit loss expense for off-balance sheet exposures. During the fourth quarter of 2023, the Company recorded $6.0 million in provision for credit losses, which included a $5.8 million provision for credit losses on loans and $275,000 of credit loss expense for off-balance sheet exposures. Provision for credit loss expense on loans in the fourth quarter of 2023 was inclusive of $4.7 million in charge-offs, with $4.1 million attributed to one C&I relationship.
Non-interest income decreased $1.1 million, or 5%, on the linked quarter, primarily due to several non-recurring items that occurred during the fourth quarter of 2023.
- Total interest WM&T income expanded $672,000, or 7%, consistent with market expansion and net new business growth.
- Card income declined $692,000, or 13%, as the fourth quarter of 2023 included $605,000 in annual debit card processor incentives.
- Visa Class B stock was sold in the fourth quarter of 2023 resulting in a non-recurring gain of $487,000.
- Swap fee income declined $387,000 on the linked quarter.
- OREO related sales in the fourth quarter of 2023 generated a $207,000 gain.
Non-interest expenses decreased $1.1 million, or 2%, to $49.0 million, as a decrease in compensation expense and lower consulting expenses more than off-set an increases in employee benefits and net occupancy expense. The fourth quarter of 2023 included $1.9 million of total additional pre-tax expense recorded related to an executive retirement agreement and the relocation of all WM&T employees to a consolidated central location.
Financial Condition – March 31, 2024 Compared with December 31, 2023
Total assets decreased $47 million on the linked quarter to $8.12 billion.
Total loans expanded $79 million, or 1%, on the linked quarter, led by increases in nearly every category, with the commercial real estate loan portfolio leading the growth. Total line of credit usage was 38.9% as of March 31, 2024, compared to 39.2% as of December 31, 2023, driven by strong production. C&I line of credit usage was 27.3% as of March 31, 2024, compared to 28.6% as of December 31, 2023.
Total deposits decreased $62 million, or 1%, on the linked quarter primarily due to seasonal public funds runoff totaling $36 million. Non-interest bearing demand accounts contracted $68 million, or 4%, as the Company's deposit mix continues to shift to interest bearing accounts.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.12 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company's common shares trade on The NASDAQ Stock Market under the symbol "SYBT."
This report contains forward-looking statements under the Private Securities Litigation Reform Act that involve risks and uncertainties. Although the Company's management believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of these assumptions could be inaccurate. Therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. Factors that could cause actual results to differ from those discussed in forward-looking statements include, but are not limited to: economic conditions both generally and more specifically in the markets in which the Company and its banking subsidiary operates; competition for the Company's customers from other providers of financial services; changes in, or forecasts of, future political and economic conditions, inflation and efforts to control it; government legislation and regulation, which change and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. Refer to Stock Yards' Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the SEC for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.
| Contact: | T. Clay Stinnett Executive Vice President, Treasurer and Chief Financial Officer (502) 625-0890 |
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | |||||||||
| First Quarter 2024 Earnings Release | |||||||||
| (In thousands unless otherwise noted) | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| Income Statement Data | 2024 | 2023 | |||||||
| Net interest income, fully tax equivalent (5) | $ | 60,167 | $ | 63,245 | |||||
| Interest income: | |||||||||
| Loans | $ | 85,840 | $ | 68,787 | |||||
| Federal funds sold and interest bearing due from banks | 2,096 | 1,581 | |||||||
| Mortgage loans held for sale | 31 | 41 | |||||||
| Federal Home Loan Bank stock | 468 | 165 | |||||||
| Investment securities | 8,110 | 8,893 | |||||||
| Total interest income | 96,545 | 79,467 | |||||||
| Interest expense: | |||||||||
| Deposits | 31,866 | 13,499 | |||||||
| Securities sold under agreements to repurchase | 931 | 456 | |||||||
| Federal funds purchased | 136 | 177 | |||||||
| Federal Home Loan Bank advances | 2,997 | 1,734 | |||||||
| Subordinated debentures | 545 | 529 | |||||||
| Total interest expense | 36,475 | 16,395 | |||||||
| Net interest income | 60,070 | 63,072 | |||||||
| Provision for credit losses (1) | 1,425 | 2,625 | |||||||
| Net interest income after provision for credit losses | 58,645 | 60,447 | |||||||
| Non-interest income: | |||||||||
| Wealth management and trust services | 10,771 | 9,527 | |||||||
| Deposit service charges | 2,136 | 2,149 | |||||||
| Debit and credit card income | 4,682 | 4,482 | |||||||
| Treasury management fees | 2,625 | 2,318 | |||||||
| Mortgage banking income | 948 | 1,038 | |||||||
| Net investment product sales commissions and fees | 865 | 754 | |||||||
| Bank owned life insurance | 588 | 549 | |||||||
| Gain (loss) on sale of premises and equipment | - | (2 | ) | ||||||
| Other | 656 | 1,232 | |||||||
| Total non-interest income | 23,271 | 22,047 | |||||||
| Non-interest expenses: | |||||||||
| Compensation | 24,221 | 21,896 | |||||||
| Employee benefits | 5,876 | 5,053 | |||||||
| Net occupancy and equipment | 3,670 | 3,899 | |||||||
| Technology and communication | 5,069 | 4,251 | |||||||
| Debit and credit card processing | 1,746 | 1,419 | |||||||
| Marketing and business development | 1,075 | 1,095 | |||||||
| Postage, printing and supplies | 926 | 874 | |||||||
| Legal and professional | 1,115 | 797 | |||||||
| FDIC insurance | 1,112 | 1,135 | |||||||
| Capital and deposit based taxes | 630 | 639 | |||||||
| Intangible amortization | 1,052 | 1,180 | |||||||
| Amortization of investments in tax credit partnerships | - | 323 | |||||||
| Other | 2,469 | 2,753 | |||||||
| Total non-interest expenses | 48,961 | 45,314 | |||||||
| Income before income tax expense | 32,955 | 37,180 | |||||||
| Income tax expense | 7,068 | 8,132 | |||||||
| Net income | $ | 25,887 | $ | 29,048 | |||||
| Net income per share - Basic | $ | 0.89 | $ | 1.00 | |||||
| Net income per share - Diluted | 0.88 | 0.99 | |||||||
| Cash dividend declared per share | 0.30 | 0.29 | |||||||
| Weighted average shares - Basic | 29,250 | 29,178 | |||||||
| Weighted average shares - Diluted | 29,361 | 29,365 | |||||||
| March 31, | |||||||||
| Balance Sheet Data | 2024 | 2023 | |||||||
| Investment securities | $ | 1,379,212 | $ | 1,600,603 | |||||
| Loans | 5,849,715 | 5,243,104 | |||||||
| Allowance for credit losses on loans | 80,897 | 75,673 | |||||||
| Total assets | 8,123,128 | 7,667,648 | |||||||
| Non-interest bearing deposits | 1,481,217 | 1,845,302 | |||||||
| Interest bearing deposits | 5,127,863 | 4,511,893 | |||||||
| Federal Home Loan Bank advances | 200,000 | 275,000 | |||||||
| Accumulated other comprehensive income (loss) | (95,054 | ) | (100,943 | ) | |||||
| Stockholders' equity | 874,711 | 794,368 | |||||||
| Total shares outstanding | 29,393 | 29,324 | |||||||
| Book value per share (3) | $ | 29.76 | $ | 27.09 | |||||
| Tangible common equity per share (3) | 22.50 | 19.66 | |||||||
| Market value per share | 48.91 | 55.14 | |||||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | |||||||||
| First Quarter 2024 Earnings Release | |||||||||
| Three Months Ended | |||||||||
| March 31, | |||||||||
| Average Balance Sheet Data | 2024 | 2023 | |||||||
| Federal funds sold and interest bearing due from banks | $ | 153,990 | $ | 140,831 | |||||
| Mortgage loans held for sale | 4,629 | 6,460 | |||||||
| Investment securities | 1,578,401 | 1,754,620 | |||||||
| Federal Home Loan Bank stock | 21,121 | 15,496 | |||||||
| Loans | 5,808,924 | 5,236,879 | |||||||
| Total interest earning assets | 7,567,065 | 7,154,286 | |||||||
| Total assets | 8,153,364 | 7,579,439 | |||||||
| Non-interest bearing deposits | 1,500,602 | 1,878,307 | |||||||
| Interest bearing deposits | 5,058,743 | 4,480,151 | |||||||
| Total deposits | 6,559,345 | 6,358,458 | |||||||
| Securities sold under agreements to repurchase | 164,979 | 122,049 | |||||||
| Federal funds purchased | 10,161 | 16,243 | |||||||
| Federal Home Loan Bank advances | 274,451 | 163,056 | |||||||
| Subordinated debentures | 26,794 | 26,408 | |||||||
| Total interest bearing liabilities | 5,535,128 | 4,807,907 | |||||||
| Accumulated other comprehensive income (loss) | (95,747 | ) | (106,763 | ) | |||||
| Total stockholders' equity | 861,029 | 777,555 | |||||||
| Performance Ratios | |||||||||
| Annualized return on average assets (4) | 1.28 | % | 1.55 | % | |||||
| Annualized return on average equity (4) | 12.09 | % | 15.15 | % | |||||
| Net interest margin, fully tax equivalent | 3.20 | % | 3.59 | % | |||||
| Non-interest income to total revenue, fully tax equivalent | 27.89 | % | 25.85 | % | |||||
| Efficiency ratio, fully tax equivalent (2) | 58.68 | % | 53.13 | % | |||||
| Capital Ratios | |||||||||
| Total stockholders' equity to total assets (3) | 10.77 | % | 10.36 | % | |||||
| Tangible common equity to tangible assets (3) | 8.36 | % | 7.74 | % | |||||
| Average stockholders' equity to average assets | 10.56 | % | 10.26 | % | |||||
| Total risk-based capital | 12.69 | % | 12.91 | % | |||||
| Common equity tier 1 risk-based capital | 11.11 | % | 11.30 | % | |||||
| Tier 1 risk-based capital | 11.49 | % | 11.73 | % | |||||
| Leverage | 9.82 | % | 9.56 | % | |||||
| Loan Segmentation | |||||||||
| Commercial real estate - non-owner occupied | $ | 1,609,483 | $ | 1,467,780 | |||||
| Commercial real estate - owner occupied | 931,973 | 805,417 | |||||||
| Commercial and industrial | 1,293,696 | 1,214,779 | |||||||
| Residential real estate - owner occupied | 723,234 | 620,417 | |||||||
| Residential real estate - non-owner occupied | 360,958 | 322,748 | |||||||
| Construction and land development | 532,183 | 439,673 | |||||||
| Home equity lines of credit | 212,443 | 200,933 | |||||||
| Consumer | 145,022 | 136,412 | |||||||
| Leases | 16,619 | 13,207 | |||||||
| Credit cards | 24,104 | 21,738 | |||||||
| Total loans and leases | $ | 5,849,715 | $ | 5,243,104 | |||||
| Asset Quality Data | |||||||||
| Non-accrual loans | $ | 13,984 | $ | 17,389 | |||||
| Modifications to borrowers experiencing financial difficulty | - | - | |||||||
| Loans past due 90 days or more and still accruing | 106 | 894 | |||||||
| Total non-performing loans | 14,090 | 18,283 | |||||||
| Other real estate owned | 10 | 677 | |||||||
| Total non-performing assets | $ | 14,100 | $ | 18,960 | |||||
| Non-performing loans to total loans | 0.24 | % | 0.35 | % | |||||
| Non-performing assets to total assets | 0.17 | % | 0.25 | % | |||||
| Allowance for credit losses on loans to total loans | 1.38 | % | 1.44 | % | |||||
| Allowance for credit losses on loans to average loans | 1.39 | % | 1.45 | % | |||||
| Allowance for credit losses on loans to non-performing loans | 574 | % | 414 | % | |||||
| Net (charge-offs) recoveries | $ | 348 | $ | (108 | ) | ||||
| Net (charge-offs) recoveries to average loans (6) | 0.01 | % | 0.00 | % | |||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
| First Quarter 2024 Earnings Release | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Income Statement Data | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||||||||||||
| Net interest income, fully tax equivalent (5) | $ | 60,167 | $ | 62,112 | $ | 61,437 | $ | 61,074 | $ | 63,245 | ||||||||||
| Net interest income | $ | 60,070 | $ | 62,016 | $ | 61,315 | $ | 60,929 | $ | 63,072 | ||||||||||
| Provision for credit losses (1) | 1,425 | 6,046 | 2,775 | 2,350 | 2,625 | |||||||||||||||
| Net interest income after provision for credit losses | 58,645 | 55,970 | 58,540 | 58,579 | 60,447 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Wealth management and trust services | 10,771 | 10,099 | 10,030 | 10,146 | 9,527 | |||||||||||||||
| Deposit service charges | 2,136 | 2,244 | 2,272 | 2,201 | 2,149 | |||||||||||||||
| Debit and credit card income | 4,682 | 5,374 | 4,870 | 4,712 | 4,482 | |||||||||||||||
| Treasury management fees | 2,625 | 2,531 | 2,635 | 2,549 | 2,318 | |||||||||||||||
| Mortgage banking income | 948 | 823 | 814 | 1,030 | 1,038 | |||||||||||||||
| Loss on sale of securities | - | (44 | ) | - | - | - | ||||||||||||||
| Net investment product sales commissions and fees | 865 | 860 | 791 | 800 | 754 | |||||||||||||||
| Bank owned life insurance | 588 | 576 | 569 | 559 | 549 | |||||||||||||||
| Gain (loss) on sale of premises and equipment | - | (105 | ) | 302 | (225 | ) | (2 | ) | ||||||||||||
| Other | 656 | 2,059 | 613 | 1,088 | 1,232 | |||||||||||||||
| Total non-interest income | 23,271 | 24,417 | 22,896 | 22,860 | 22,047 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Compensation | 24,221 | 24,494 | 23,379 | 22,107 | 21,896 | |||||||||||||||
| Employee benefits | 5,876 | 3,829 | 4,508 | 5,061 | 5,053 | |||||||||||||||
| Net occupancy and equipment | 3,670 | 5,150 | 3,821 | 3,514 | 3,899 | |||||||||||||||
| Technology and communication | 5,069 | 4,612 | 4,236 | 4,219 | 4,251 | |||||||||||||||
| Debit and credit card processing | 1,746 | 1,719 | 1,637 | 1,706 | 1,419 | |||||||||||||||
| Marketing and business development | 1,075 | 1,754 | 1,357 | 1,784 | 1,095 | |||||||||||||||
| Postage, printing and supplies | 926 | 903 | 938 | 889 | 874 | |||||||||||||||
| Legal and professional | 1,115 | 1,293 | 1,049 | 819 | 797 | |||||||||||||||
| FDIC insurance | 1,112 | 1,060 | 937 | 779 | 1,135 | |||||||||||||||
| Capital and deposit based taxes | 630 | 601 | 629 | 607 | 639 | |||||||||||||||
| Intangible amortization | 1,052 | 1,167 | 1,167 | 1,172 | 1,180 | |||||||||||||||
| Amortization of investments in tax credit partnerships | - | 324 | 323 | 324 | 323 | |||||||||||||||
| Other | 2,469 | 3,107 | 2,721 | 2,819 | 2,753 | |||||||||||||||
| Total non-interest expenses | 48,961 | 50,013 | 46,702 | 45,800 | 45,314 | |||||||||||||||
| Income before income tax expense | 32,955 | 30,374 | 34,734 | 35,639 | 37,180 | |||||||||||||||
| Income tax expense | 7,068 | 6,430 | 7,642 | 7,975 | 8,132 | |||||||||||||||
| Net income | $ | 25,887 | $ | 23,944 | $ | 27,092 | $ | 27,664 | $ | 29,048 | ||||||||||
| Net income per share - Basic | $ | 0.89 | $ | 0.82 | $ | 0.93 | $ | 0.95 | $ | 1.00 | ||||||||||
| Net income per share - Diluted | 0.88 | 0.82 | 0.92 | 0.94 | 0.99 | |||||||||||||||
| Cash dividend declared per share | 0.30 | 0.30 | 0.30 | 0.29 | 0.29 | |||||||||||||||
| Weighted average shares - Basic | 29,250 | 29,226 | 29,223 | 29,223 | 29,178 | |||||||||||||||
| Weighted average shares - Diluted | 29,361 | 29,331 | 29,336 | 29,340 | 29,365 | |||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Balance Sheet Data | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||||||||||||
| Cash and due from banks | $ | 71,676 | $ | 94,466 | $ | 79,538 | $ | 111,126 | $ | 87,922 | ||||||||||
| Federal funds sold and interest bearing due from banks | 88,547 | 171,493 | 113,499 | 103,204 | 229,076 | |||||||||||||||
| Mortgage loans held for sale | 6,462 | 6,056 | 6,535 | 7,069 | 6,397 | |||||||||||||||
| Investment securities | 1,379,212 | 1,471,016 | 1,465,453 | 1,542,753 | 1,600,603 | |||||||||||||||
| Federal Home Loan Bank stock | 24,675 | 16,236 | 26,241 | 27,366 | 23,226 | |||||||||||||||
| Loans | 5,849,715 | 5,771,038 | 5,617,084 | 5,418,609 | 5,243,104 | |||||||||||||||
| Allowance for credit losses on loans | 80,897 | 79,374 | 78,075 | 77,710 | 75,673 | |||||||||||||||
| Goodwill | 194,074 | 194,074 | 194,074 | 194,074 | 194,074 | |||||||||||||||
| Total assets | 8,123,128 | 8,170,102 | 7,903,430 | 7,732,552 | 7,667,648 | |||||||||||||||
| Non-interest bearing deposits | 1,481,217 | 1,548,624 | 1,714,918 | 1,766,132 | 1,845,302 | |||||||||||||||
| Interest bearing deposits | 5,127,863 | 5,122,124 | 4,687,889 | 4,442,248 | 4,511,893 | |||||||||||||||
| Securities sold under agreements to repurchase | 162,528 | 152,991 | 113,894 | 138,347 | 104,578 | |||||||||||||||
| Federal funds purchased | 9,961 | 12,852 | 11,518 | 11,646 | 14,745 | |||||||||||||||
| Federal Home Loan Bank advances | 200,000 | 200,000 | 350,000 | 400,000 | 275,000 | |||||||||||||||
| Subordinated debentures | 26,806 | 26,740 | 26,641 | 26,541 | 26,442 | |||||||||||||||
| Accumulated other comprehensive income (loss) | (95,054 | ) | (92,798 | ) | (127,905 | ) | (107,416 | ) | (100,943 | ) | ||||||||||
| Stockholders' equity | 874,711 | 858,103 | 806,918 | 808,082 | 794,368 | |||||||||||||||
| Total shares outstanding | 29,393 | 29,329 | 29,323 | 29,323 | 29,324 | |||||||||||||||
| Book value per share (3) | $ | 29.76 | $ | 29.26 | $ | 27.52 | $ | 27.56 | $ | 27.09 | ||||||||||
| Tangible common equity per share (3) | 22.50 | 21.95 | 20.17 | 20.17 | 19.66 | |||||||||||||||
| Market value per share | 48.91 | 51.49 | 39.29 | 45.37 | 55.14 | |||||||||||||||
| Capital Ratios | ||||||||||||||||||||
| Total stockholders' equity to total assets (3) | 10.77 | % | 10.50 | % | 10.21 | % | 10.45 | % | 10.36 | % | ||||||||||
| Tangible common equity to tangible assets (3) | 8.36 | % | 8.09 | % | 7.69 | % | 7.87 | % | 7.74 | % | ||||||||||
| Average stockholders' equity to average assets | 10.56 | % | 10.07 | % | 10.39 | % | 10.53 | % | 10.26 | % | ||||||||||
| Total risk-based capital | 12.69 | % | 12.56 | % | 12.71 | % | 12.78 | % | 12.91 | % | ||||||||||
| Common equity tier 1 risk-based capital | 11.11 | % | 11.04 | % | 11.17 | % | 11.20 | % | 11.30 | % | ||||||||||
| Tier 1 risk-based capital | 11.49 | % | 11.43 | % | 11.57 | % | 11.61 | % | 11.73 | % | ||||||||||
| Leverage | 9.82 | % | 9.62 | % | 9.80 | % | 9.83 | % | 9.56 | % | ||||||||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
| First Quarter 2024 Earnings Release | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Average Balance Sheet Data | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||||||||||||
| Federal funds sold and interest bearing due from banks | $ | 153,990 | $ | 258,950 | $ | 124,653 | $ | 131,958 | $ | 140,831 | ||||||||||
| Mortgage loans held for sale | 4,629 | 5,305 | 7,112 | 8,420 | 6,460 | |||||||||||||||
| Investment securities | 1,578,401 | 1,618,799 | 1,659,888 | 1,719,045 | 1,754,620 | |||||||||||||||
| Federal Home Loan Bank stock | 21,121 | 20,519 | 27,290 | 25,074 | 15,496 | |||||||||||||||
| Loans | 5,808,924 | 5,676,193 | 5,486,262 | 5,286,597 | 5,236,879 | |||||||||||||||
| Total interest earning assets | 7,567,065 | 7,579,766 | 7,305,205 | 7,171,094 | 7,154,286 | |||||||||||||||
| Total assets | 8,153,364 | 8,116,569 | 7,805,154 | 7,594,901 | 7,579,439 | |||||||||||||||
| Non-interest bearing deposits | 1,500,602 | 1,663,962 | 1,731,724 | 1,781,338 | 1,878,307 | |||||||||||||||
| Interest bearing deposits | 5,058,743 | 5,025,240 | 4,509,411 | 4,414,599 | 4,480,151 | |||||||||||||||
| Total deposits | 6,559,345 | 6,689,202 | 6,241,135 | 6,195,937 | 6,358,458 | |||||||||||||||
| Securities sold under agreement to repurchase | 164,979 | 130,148 | 127,063 | 113,051 | 122,049 | |||||||||||||||
| Federal funds purchased | 10,161 | 13,606 | 11,776 | 13,602 | 16,243 | |||||||||||||||
| Federal Home Loan Bank advances | 274,451 | 205,435 | 401,630 | 348,352 | 163,056 | |||||||||||||||
| Subordinated debentures | 26,794 | 26,706 | 26,606 | 26,508 | 26,408 | |||||||||||||||
| Total interest bearing liabilities | 5,535,128 | 5,401,135 | 5,076,486 | 4,916,112 | 4,807,907 | |||||||||||||||
| Accumulated other comprehensive income (loss) | (95,747 | ) | (125,843 | ) | (112,329 | ) | (102,970 | ) | (106,763 | ) | ||||||||||
| Total stockholders' equity | 861,029 | 817,682 | 810,710 | 799,886 | 777,555 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Annualized return on average assets (4) | 1.28 | % | 1.17 | % | 1.38 | % | 1.46 | % | 1.55 | % | ||||||||||
| Annualized return on average equity (4) | 12.09 | % | 11.62 | % | 13.26 | % | 13.87 | % | 15.15 | % | ||||||||||
| Net interest margin, fully tax equivalent | 3.20 | % | 3.25 | % | 3.34 | % | 3.42 | % | 3.59 | % | ||||||||||
| Non-interest income to total revenue, fully tax equivalent | 27.89 | % | 28.22 | % | 27.15 | % | 27.24 | % | 25.85 | % | ||||||||||
| Efficiency ratio, fully tax equivalent (2) | 58.68 | % | 57.80 | % | 55.38 | % | 54.57 | % | 53.13 | % | ||||||||||
| Loans Segmentation | ||||||||||||||||||||
| Commercial real estate - non-owner occupied | $ | 1,609,483 | $ | 1,561,689 | $ | 1,557,977 | $ | 1,527,453 | $ | 1,467,780 | ||||||||||
| Commercial real estate - owner occupied | 931,973 | 907,424 | 896,522 | 825,026 | 805,417 | |||||||||||||||
| Commercial and industrial | 1,293,696 | 1,307,128 | 1,251,027 | 1,233,642 | 1,214,779 | |||||||||||||||
| Residential real estate - owner occupied | 723,234 | 708,893 | 696,162 | 664,870 | 620,417 | |||||||||||||||
| Residential real estate - non-owner occupied | 360,958 | 358,715 | 349,624 | 337,961 | 322,748 | |||||||||||||||
| Construction and land development | 532,183 | 531,324 | 480,120 | 451,324 | 439,673 | |||||||||||||||
| Home equity lines of credit | 212,443 | 211,390 | 203,184 | 202,574 | 200,933 | |||||||||||||||
| Consumer | 145,022 | 145,340 | 143,703 | 139,602 | 136,412 | |||||||||||||||
| Leases | 16,619 | 15,503 | 14,710 | 13,967 | 13,207 | |||||||||||||||
| Credit cards | 24,104 | 23,632 | 24,055 | 22,190 | 21,738 | |||||||||||||||
| Total loans and leases | $ | 5,849,715 | $ | 5,771,038 | $ | 5,617,084 | $ | 5,418,609 | $ | 5,243,104 | ||||||||||
| Asset Quality Data | ||||||||||||||||||||
| Non-accrual loans | $ | 13,984 | $ | 19,058 | $ | 17,227 | $ | 17,364 | $ | 17,389 | ||||||||||
| Modifications to borrowers experiencing financial difficulty | - | - | - | - | - | |||||||||||||||
| Loans past due 90 days or more and still accruing | 106 | 110 | 1 | 437 | 894 | |||||||||||||||
| Total non-performing loans | 14,090 | 19,168 | 17,228 | 17,801 | 18,283 | |||||||||||||||
| Other real estate owned | 10 | 10 | 427 | 677 | 677 | |||||||||||||||
| Total non-performing assets | $ | 14,100 | $ | 19,178 | $ | 17,655 | $ | 18,478 | $ | 18,960 | ||||||||||
| Non-performing loans to total loans | 0.24 | % | 0.33 | % | 0.31 | % | 0.33 | % | 0.35 | % | ||||||||||
| Non-performing assets to total assets | 0.17 | % | 0.23 | % | 0.22 | % | 0.24 | % | 0.25 | % | ||||||||||
| Allowance for credit losses on loans to total loans | 1.38 | % | 1.38 | % | 1.39 | % | 1.43 | % | 1.44 | % | ||||||||||
| Allowance for credit losses on loans to average loans | 1.39 | % | 1.40 | % | 1.42 | % | 1.47 | % | 1.45 | % | ||||||||||
| Allowance for credit losses on loans to non-performing loans | 574 | % | 414 | % | 453 | % | 437 | % | 414 | % | ||||||||||
| Net (charge-offs) recoveries | $ | 348 | $ | (4,472 | ) | $ | (1,935 | ) | $ | (113 | ) | $ | (108 | ) | ||||||
| Net (charge-offs) recoveries to average loans (6) | 0.01 | % | -0.08 | % | -0.04 | % | 0.00 | % | 0.00 | % | ||||||||||
| Other Information | ||||||||||||||||||||
| Total assets under management (in millions) | $ | 7,496 | $ | 7,160 | $ | 6,670 | $ | 6,976 | $ | 6,764 | ||||||||||
| Full-time equivalent employees | 1,062 | 1,075 | 1,056 | 1,056 | 1,028 | |||||||||||||||
| (1) - Detail of Provision for credit losses follows: | ||||||||||||||||||||
| (in thousands) | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||||||||||||
| Provision for credit losses - loans | $ | 1,175 | $ | 5,771 | $ | 2,300 | $ | 2,150 | $ | 2,250 | ||||||||||
| Provision for credit losses - off balance sheet exposures | 250 | 275 | 475 | 200 | 375 | |||||||||||||||
| Total provision for credit losses | $ | 1,425 | $ | 6,046 | $ | 2,775 | $ | 2,350 | $ | 2,625 | ||||||||||
| (2) - The efficiency ratio, a non-GAAP measure, equals total non-interest expenses divided by the sum of net interest income (FTE) and non-interest income. | ||||||||||||||||||||
| (3) - The following table provides a reconciliation of total stockholders' equity in accordance with GAAP to tangible stockholders' equity, a non-GAAP disclosure. Bancorp provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy: | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| (In thousands, except per share data) | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||||||||||||
| Total stockholders' equity - GAAP (a) | $ | 874,711 | $ | 858,103 | $ | 806,918 | $ | 808,082 | $ | 794,368 | ||||||||||
| Less: Goodwill | (194,074 | ) | (194,074 | ) | (194,074 | ) | (194,074 | ) | (194,074 | ) | ||||||||||
| Less: Core deposit and other intangibles | (19,252 | ) | (20,304 | ) | (21,471 | ) | (22,638 | ) | (23,810 | ) | ||||||||||
| Tangible common equity - Non-GAAP (c) | $ | 661,385 | $ | 643,725 | $ | 591,373 | $ | 591,370 | $ | 576,484 | ||||||||||
| Total assets - GAAP (b) | $ | 8,123,128 | $ | 8,170,102 | $ | 7,903,430 | $ | 7,732,552 | $ | 7,667,648 | ||||||||||
| Less: Goodwill | (194,074 | ) | (194,074 | ) | (194,074 | ) | (194,074 | ) | (194,074 | ) | ||||||||||
| Less: Core deposit and other intangibles | (19,252 | ) | (20,304 | ) | (21,471 | ) | (22,638 | ) | (23,810 | ) | ||||||||||
| Tangible assets - Non-GAAP (d) | $ | 7,909,802 | $ | 7,955,724 | $ | 7,687,885 | $ | 7,515,840 | $ | 7,449,764 | ||||||||||
| Total stockholders' equity to total assets - GAAP (a/b) | 10.77 | % | 10.50 | % | 10.21 | % | 10.45 | % | 10.36 | % | ||||||||||
| Tangible common equity to tangible assets - Non-GAAP (c/d) | 8.36 | % | 8.09 | % | 7.69 | % | 7.87 | % | 7.74 | % | ||||||||||
| Total shares outstanding (e) | 29,393 | 29,329 | 29,323 | 29,323 | 29,324 | |||||||||||||||
| Book value per share - GAAP (a/e) | $ | 29.76 | $ | 29.26 | $ | 27.52 | $ | 27.56 | $ | 27.09 | ||||||||||
| Tangible common equity per share - Non-GAAP (c/e) | 22.50 | 21.95 | 20.17 | 20.17 | 19.66 | |||||||||||||||
| (4) - Return on average assets equals net income divided by total average assets, annualized to reflect a full year return on average assets. Similarly, return on average equity equals net income divided by total average equity, annualized to reflect a full year return on average equity. | ||||||||||||||||||||
| (5) - 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. | ||||||||||||||||||||
| (6) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized. | ||||||||||||||||||||
