Stock Yards Bancorp Reports Record First Quarter Earnings of $22.7 Million or $0.99 per Diluted Share Nasdaq:SYBT

Stock Yards Bancorp Reports Record First Quarter Earnings of $22.7 Million or $0.99 per Diluted Share Nasdaq:SYBT

News Highlights

LOUISVILLE, Ky., April 21, 2021 (News) — Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville, Indianapolis and Cincinnati metropolitan markets, today reported record earnings for the first quarter ended March 31, 2021. Net income for the first quarter increased 72% to $22.7 million, or $0.99 per diluted share, compared with net income of $13.2 million, or $0.58 per diluted share, for the first quarter of 2020. Strong core deposit growth, as well as significant fee and interest income from the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”), contributed to record profitability for the quarter.

    
(dollar amounts in thousands, except per share data)1Q214Q201Q20
Net interest income$37,825 $36,252 $32,446 
Provision for credit loss expense(6) (1,475) 500  5,925 
Non-interest income 13,844  13,698  12,536 
Non-interest expenses 24,973  29,029  23,575 
Income before income tax expense 28,171  20,421  15,482 
Income tax expense 5,461  2,685  2,250 
Net income$22,710 $17,736 $13,232 
Net income per share, diluted$0.99 $0.78 $0.58 
Net interest margin 3.39% 3.35% 3.71%
Efficiency ratio(4) 48.29% 58.06% 52.35%
Tangible common equity to tangible assets(1) 8.97% 9.28% 10.48%
Annualized return on average equity 20.71% 16.27% 13.18%
Annualized return on average assets 1.96% 1.56% 1.43%
    

“Stock Yards again delivered record earnings for the quarter, supported by strong revenue generation, substantial deposit growth, a release of credit loss reserves and controlled operating expenses,” said James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “In addition to our financial performance, a highlight of the quarter was the signing of a definitive agreement to acquire Kentucky Bancshares, Inc. This transaction expands our presence into the attractive Central Kentucky market and represents a complementary fit with our organization. The combination of our two companies provides the opportunity to create efficiencies and enhance the value of the combined entity while offering Kentucky Bank customers broader product offerings, increased lending capabilities and an expanded branch delivery system that stretches throughout the Louisville, Indianapolis and Northern Kentucky/Cincinnati metropolitan markets. We remain on track to welcome Kentucky Bank to the Stock Yards family with an anticipated closing date during the second quarter.”

Kentucky Bancshares, headquartered in Paris, Kentucky, is the holding company for Kentucky Bank, which operates 19 branches in 11 communities throughout Central Kentucky serving the Lexington, Kentucky metropolitan statistical area and each of its contiguous counties. As of March 31, 2021, Kentucky Bancshares reported approximately $1.3 billion in assets, $766 million in loans, $1.0 billion in deposits and $113 million in tangible common equity.

Another key activity for the first quarter related to the additional COVID-19 stimulus relief, which was signed into law in late 2020, allowing for a second round of PPP funding through May 31, 2021. The program offers new PPP loans for companies that did not receive PPP funds in 2020 in addition to “second draw” loans targeted at hard-hit businesses that exhausted their initial PPP proceeds. Consistent with the first round, the Company was very active in this program in the first quarter of 2021, closing over 1,600 loans with total originations in excess of $241 million with fee income of nearly $9 million received that will be recognized over the earlier of five years or loan forgiveness. The Company is estimating that approximately 40% of these loans will be forgiven in 2021. As these borrowers are not required to make payments for 10 months, it is probable that a significant portion of the borrowing base will defer forgiveness until early 2022.

“Due to an improvement in forecasted economic indicators utilized during the current quarter, we recorded a net benefit of $1.2 million to provision for credit losses for loans during the first quarter. This compares to a $5.6 million provision expense for loans in the first quarter a year ago. We feel that we are well positioned as we navigate through the pandemic, having built up significant loan loss reserves, excluding PPP loans, of 1.68%(2) at March 31, 2021,” said Hillebrand.

Additional key factors impacting the first quarter of 2021 results included:

  • Record diluted quarterly EPS exceeding the previous record set in the fourth quarter of 2020.
  • COVID-19 related loan deferrals declined significantly to 0.45% of total loans (excluding PPP) at the end of the first quarter of 2021 from 1.24% of total loans three months earlier.
  • Average loan balance growth, excluding PPP, totaled $95 million, or 3%, on a linked quarter basis.
  • Deposit balances remained at record levels, with additional PPP and federal stimulus payments contributing to strong quarterly deposit growth of $211 million. In total, deposit balances have increased $1.0 billion over the last twelve months.
  • Net interest margin (NIM) compressed 32 basis points to 3.39% compared to the first quarter a year ago. NIM continued to be negatively impacted by loan yield contraction accompanied with ongoing excess balance sheet liquidity offset by the positive impact of PPP.
  • Despite ongoing contraction in loan yields, net interest income increased $5.4 million, or 17%, over the first quarter of 2020, boosted by $7.0 million in PPP income and a significant decline in cost of funds.
  • Non-interest income increased 10% over the first quarter of 2020, reflecting record debit/credit card income and treasury management fees and continued strong mortgage banking income. While slowly rebounding, deposit service charges continue to be impacted by pandemic related stimulus and general changes in customer behavior/spending.
  • Non-interest expenses reflected moderate increases in compensation, technology and communication and FDIC insurance premiums. Legal and professional fees reflected $400,000 in expense related to the pending Kentucky Bancshares acquisition. Capital and deposit tax declined significantly, as the Company transitioned to report Kentucky state income tax as a component of tax expense in accordance with the State law change taking effect this quarter.

Hillebrand added, “In March, we were one of 30 financial institutions recognized in the inaugural Hovde High Performer List based on our prior year results. Criteria to be admitted included market capitalization below $1 billion, above median average pre-provision ROA, loan and deposit growth, and tangible book value growth. In their screening methodology, Hovde eliminated 261 financial institutions, or nearly 90% of the potential class of banks and thrifts that trade on major exchanges. This recognition is an honor and a testament to the dedication of our employees, who continue to work diligently to support the communities we serve.”

Results of Operations – First Quarter 2021 Compared with First Quarter 2020

Net interest income – the Company’s largest source of revenue – increased $5.4 million, or 17%, to $37.8 million, driven primarily by PPP loan fees and a significant decline in cost of funds.

  • Total interest income rose $2.6 million, or 7%, to $39.5 million, primarily due to a 10% 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 March 31, 2021, approximately 41% of total loan originations (in terms of dollars) had been forgiven by the SBA and another 21% have been submitted for forgiveness. With regard to fee income, approximately 73% of the $19.5 million in fee income received has been recognized life to date. Round one PPP borrowers are required to begin making payments in July, which will likely accelerate forgiveness submissions for this round of PPP.
  • Interest expense declined $2.7 million, or 62%, to $1.7 million. Interest expense on deposits decreased $2.5 million, or 62%, as the cost of interest bearing deposits declined to 0.22% in the first quarter of 2021 from 0.69% in the first quarter a year ago. While average interest bearing deposit balances surged $499 million, or 22%, the Company significantly benefited from the strategic lowering of stated deposit rates in early 2020 in tandem with the Federal Reserve’s short-term interest rate moves and the corresponding lowering of CD offering rates.
  • NIM decreased 32 basis points to 3.39% for the first quarter of 2021 from 3.71% in the first quarter a year ago. NIM contraction was primarily driven by lower interest rates, coupled with higher levels of excess balance sheet liquidity. The Company has maintained significantly higher levels of balance sheet liquidity driven in part by the funding of PPP loans through deposit growth. During the quarter, the PPP loan portfolio and the related fee income had a 21 basis point positive impact to NIM, while excess liquidity had a 14 basis point negative impact.

Due to continued improvement in the unemployment forecast combined with minimal net charge-offs and solid traditional credit metrics including and excluding PPP loans, the Bank recorded a $1.2 million net benefit to provision for credit losses for loans in the first quarter of 2021. In addition, a $275,000 net benefit was recorded to provision for credit losses for off balance sheet exposures consistent with improvement in underlying CECL model factors.

Non-interest income increased $1.3 million, or 10%, to $13.8 million.

  • Wealth management and trust income totaled $6.2 million for the first quarter of 2021 and slightly exceeded the first quarter a year ago. Despite a meaningful decline in non-recurring estate fees, significant growth in assets under management and record market performance served to elevate asset-based fees.
  • Retail deposit service charges decreased $339,000, or 26%, primarily related to a decline in non-sufficient funds fees collected. Stimulus checks, more lucrative unemployment compensation, diminished pandemic spending and PPP funding have all had a sustained impact upon our customers’ spending and savings behavior.
  • Debit/credit card income increased $293,000, or 15%. Growth trends in both portfolios remain positive with debit card business benefitting from a significant increase in signature, or in person, payment presentment.
  • Treasury management fees increased by $256,000, or 20%, 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 increased $598,000, or 71%, to $1.4 million for the first quarter of 2021. While rising mortgage rates, tight housing supply and diminishing affordability driven by surging housing prices will likely weigh on the enthusiasm of home buyers in the months ahead, the pipeline of viable loans going into the second quarter of 2021 was strong, with incoming applications remaining steady.

Non-interest expenses increased $1.4 million, or 6%, to $25.0 million.

  • Compensation expense increased $594,000, or 5%, primarily due to annual merit-based salary increases, an increase in full time equivalent employees, and increased incentive compensation, partially offset by an expense reduction attributable to the origination of PPP loans.
  • Employee benefits increased $94,000, or 3%, primarily due to elevated 401(k) and payroll tax expenses, which was partially offset by lower health insurance expense.
  • Technology and communication expense for the first quarter of 2021 increased $283,000, or 14%, consistent with expanded data storage and increased expenses related to the hosted core system.
  • Marketing and business development expense, which includes all costs associated with promoting the Bank, community investment, retaining customers and acquiring new business, has remained significantly below historic levels consistent with reduced travel and customer entertainment expense related to the pandemic.
  • Legal and professional fees reflected approximately $400,000 in expense related to the pending Kentucky Bancshares acquisition.

Financial Condition – March 31, 2021 Compared with March 31, 2020

Total loans increased $698 million, or 24%, to $3.6 billion. Excluding the PPP loan portfolio, total loans increased $85 million, or 3%, during the year, with $128 million of growth in the commercial real estate portfolio and $45 million of growth in residential real estate loans, partially offset by a $114 million decrease in the commercial and industrial portfolio tied to line of credit usage. Similar to what was experienced in the second quarter of 2020, a portion of the Company’s customer base that received second round PPP funding have utilized their excess liquidity to pay down operating lines.

In an effort to deploy excess balance sheet liquidity, the Company continued its strategy of expanding the investment portfolio, growing total investment securities by a net $226 million, or 51%, over the past twelve months.

Asset quality, which has trended within a narrow range over the past several years, has remained strong. During the first quarter of 2021, the Company recorded net loan charge-offs of $6,000, compared to net loan charge-offs of $54,000 in the first quarter of 2020. Non-performing loans were $14.3 million, or 0.47%(2), of total loans (excluding PPP) outstanding compared to $6.0 million, or 0.21%, of total loans outstanding at March 31, 2020. Approximately $10 million of the non-accrual loan balance at March 31, 2021 and December 31, 2020 relates to one commercial real estate relationship that was placed on non-accrual status during the second quarter of 2020.

Total deposits increased $1.0 billion, or 31%, from March 31, 2020 to March 31, 2021, with non-interest bearing deposits representing $511 million of the increase. The mix of deposits has also improved with higher-cost time deposits declining $55 million over the past twelve months. Both period end and average deposit balances ended at record levels at March 31, 2021. Federal programs such as the PPP and stimulus checks have boosted deposit balances.

At March 31, 2021, the Company remained “well capitalized,” the highest regulatory capital rating for financial institutions. Total equity to assets was 9.25% and the tangible common equity ratio was 8.97%(1) at March 31, 2021, compared to 10.83% and 10.48%(1), respectively, at March 31, 2020, with the decline attributable to the January 1, 2020 CECL adoption, loan growth and a $12 million accumulated other comprehensive equity decline associated with the late first quarter increase in bond yields.

In March 2021, the Board of Directors continued the dividend rate of $0.27 per common share initially set in November 2019. The Company will continue to evaluate dividend rate increases in relation to maintaining strong capital levels.

No shares were repurchased in the first quarter of 2021 and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan which expires in May 2021.

Results of Operations – First Quarter 2021 Compared with Fourth Quarter 2020

Net interest income increased $1.6 million, or 4%, over the prior quarter to $37.8 million, led by loan growth, PPP fee recognition and the continued decline in cost of funds.

Due to continued improvement in the unemployment forecast combined with minimal net charge-offs and solid traditional credit metrics including and excluding PPP loans, the Company recorded a $1.2 million benefit to provision for credit losses for loans in the first quarter of 2021, compared to $1.4 million 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 $275,000 and $900,000 in the first quarter of 2021 and fourth quarter of 2020, respectively.

Non-interest income increased $146,000 to $13.8 million. Increases in wealth management and trust service fees, debit/credit card income and higher treasury management fees more than offset a modest first quarter reduction in mortgage banking income.

Non-interest expenses decreased $4.1 million, or 14%, to $25.0 million.

  • Compensation expense decreased $1.2 million, to $12.8 million compared with the fourth quarter of 2020 due to higher fourth quarter incentive compensation expense and deferred expenses associated with the latest round of PPP loans originated in the current quarter.
  • Employee benefits increased $1.1 million primarily due to higher health insurance expense, 401(k) expense and payroll tax expenses.
  • The fourth quarter of 2020 reflected the completion of a large tax credit project and elevated amortization of investment in tax credit partnership expense, with a corresponding offset to tax expense spread proportionately over the year.
  • Capital and deposit tax expense declined significantly, as the Company transitioned to report Kentucky state income tax as a component of tax expense.

Financial Condition March 31, 2021, Compared with December 31, 2020

Total assets increased $185 million on a linked quarter basis to $4.8 billion, reflecting significant increases in both loans and investment securities.

Total loans increased $104 million on a linked quarter basis to $3.6 billion at quarter end and the deployment of excess liquidity led to a $85 million increase in securities. Total line of credit usage decreased to 37% as of March 31, 2021, from 38% at December 31, 2020. Commercial and industrial line usage decreased to 26% as of March 31, 2021, compared to 28% at December 31, 2020.

Total deposits increased $211 million, or 5%, on a linked quarter basis due to higher deposit levels consistent with growth in balances with both existing and new customers. Federal programs such as the PPP, stimulus checks and increased unemployment benefits have boosted deposit balances during the quarter. 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 $4.8 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: the possibility that any of the anticipated benefits of the proposed Kentucky Bancshares 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; economic conditions both generally and more specifically in the markets in which the Company and its subsidiary operates; competition for the Company’s customers from other providers of financial services; government legislation and regulation, which change and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company’s customers; the effects of government stimulus programs such as the Consolidated Appropriations Act; the effects of the FRB’s benchmark interest rate cuts on liquidity and margins; the potential adverse effects of the coronavirus or any other pandemic on the ability of borrowers to satisfy their obligations to the Company, the level of the Company’s non-performing assets, the demand for the Company’s loans or its other products and services, other aspects of the Company’s business and operations, and financial markets and economic growth, and other risks detailed in the Company’s filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. See “Risk Factors” outlined in the Company’s Form 10-K for the year ended December 31, 2020.

Stock Yards Bancorp, Inc. Financial Information (unaudited)       
First Quarter 2021 Earnings Release       
(In thousands unless otherwise noted)       
    Three Months Ended 
    March 31, 
Income Statement Data    2021   2020  
        
Net interest income, fully tax equivalent (3)   $37,874  $32,494  
Interest income:       
Loans   $37,000  $33,749  
Federal funds sold and interest bearing due from banks    66   531  
Mortgage loans held for sale    64   61  
Securities    2,388   2,541  
Total interest income    39,518   36,882  
Interest expense:       
Deposits    1,510   3,962  
Securities sold under agreements to repurchase and       
other short-term borrowings    7   45  
Federal Home Loan Bank (FHLB) advances    176   429  
Total interest expense    1,693   4,436  
Net interest income    37,825   32,446  
Provision for credit losses (6)    (1,475)  5,925  
Net interest income after provision for credit losses    39,300   26,521  
Non-interest income:       
Wealth management and trust services    6,248   6,218  
Deposit service charges    944   1,283  
Debit and credit card income    2,273   1,980  
Treasury management fees    1,540   1,284  
Mortgage banking income    1,444   846  
Net investment product sales commissions and fees    464   466  
Bank owned life insurance    161   179  
Other    770   280  
Total non-interest income    13,844   12,536  
Non-interest expenses:       
Compensation    12,827   12,233  
Employee benefits    3,261   3,167  
Net occupancy and equipment    2,045   1,831  
Technology and communication    2,346   2,063  
Debit and credit card processing    705   656  
Marketing and business development    524   560  
Postage, printing and supplies    409   441  
Legal and professional    862   623  
FDIC Insurance    405   129  
Amortization of investments in tax credit partnerships    31   36  
Capital and deposit based taxes    458   1,030  
Other    1,100   806  
Total non-interest expenses    24,973   23,575  
Income before income tax expense    28,171   15,482  
Income tax expense    5,461   2,250  
Net income   $22,710  $13,232  
        
Net income per share – Basic   $1.00  $0.59  
Net income per share – Diluted    0.99   0.58  
Cash dividend declared per share    0.27   0.27  
        
Weighted average shares – Basic    22,622   22,516  
Weighted average shares – Diluted    22,865   22,736  
        
    March 31, 
Balance Sheet Data     2021   2020  
        
Loans   $3,635,156  $2,937,366  
Allowance for credit losses on loans    50,714   42,143  
Total assets    4,794,075   3,784,586  
Non-interest bearing deposits    1,370,183   858,883  
Interest bearing deposits    2,829,779   2,339,995  
FHLB advances    24,180   69,191  
Stockholders’ equity    443,232   409,702  
Total shares outstanding    22,781   22,665  
Book value per share (1)   $19.46  $18.08  
Tangible common equity per share (1)    18.82   17.43  
Market value per share    51.06   28.93  
        
Stock Yards Bancorp, Inc. Financial Information (unaudited)       
First Quarter 2021 Earnings Release       
        
    Three Months Ended 
    March 31, 
Average Balance Sheet Data    2021   2020  
        
Federal funds sold and interest bearing due from banks   $235,370  $168,563  
Mortgage loans held for sale    14,618   4,953  
Available for sale debt securities    661,175   449,610  
FHLB stock    10,640   11,284  
Loans    3,605,760   2,891,668  
Total interest earning assets    4,527,563   3,526,078  
Total assets    4,710,836   3,710,119  
Interest bearing deposits    2,815,986   2,316,774  
Total deposits    4,094,179   3,120,242  
Securities sold under agreement to repurchase and other short term borrowings    56,536   43,739  
FHLB advances    29,270   73,939  
Total interest bearing liabilities    2,901,792   2,434,452  
Total stockholders’ equity    444,821   403,702  
        
Performance Ratios       
Annualized return on average assets    1.96%  1.43% 
Annualized return on average equity    20.71%  13.18% 
Net interest margin, fully tax equivalent    3.39%  3.71% 
Non-interest income to total revenue, fully tax equivalent    26.77%  27.84% 
Efficiency ratio, fully tax equivalent (4)    48.29%  52.35% 
        
Capital Ratios       
Total stockholders’ equity to total assets (1)    9.25%  10.83% 
Tangible common equity to tangible assets (1)    8.97%  10.48% 
Average stockholders’ equity to average assets    9.44%  10.88% 
Total risk-based capital    13.39%  12.75% 
Common equity tier 1 risk-based capital    12.32%  11.81% 
Tier 1 risk-based capital    12.32%  11.81% 
Leverage    9.46%  10.78% 
        
Loan Segmentation       
Commercial real estate – non-owner occupied   $876,523  $799,284  
Commercial real estate – owner occupied    527,316   476,534  
Commercial and industrial    769,773   883,868  
Commercial and industrial – PPP    612,885     
Residential real estate – owner occupied    262,516   219,221  
Residential real estate – non-owner occupied    136,380   134,734  
Construction and land development    281,815   246,040  
Home equity lines of credit    91,233   107,121  
Consumer    51,058   44,939  
Leases    14,115   15,476  
Credit cards – commercial    11,542   10,149  
Total loans and leases   $3,635,156  $2,937,366  
        
Asset Quality Data       
Non-accrual loans   $12,913  $4,235  
Troubled debt restructurings    15   52  
Loans past due 90 days or more and still accruing    1,377   1,762  
Total non-performing loans    14,305   6,049  
Other real estate owned    281   493  
Total non-performing assets   $14,586  $6,542  
Non-performing loans to total loans (2)    0.39%  0.21% 
Non-performing assets to total assets    0.30%  0.17% 
Allowance for credit losses on loans to total loans (2)    1.40%  1.43% 
Allowance for credit losses on loans to average loans    1.41%  1.46% 
Allowance for credit losses on loans to non-performing loans    355%  697% 
Net (charge-offs) recoveries   $(6) $(54) 
Net (charge-offs) recoveries to average loans (5)    0.00%  0.00% 
        
Stock Yards Bancorp, Inc. Financial Information (unaudited)          
First Quarter 2021 Earnings Release          
           
  Quarterly Comparison
Income Statement Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Net interest income, fully tax equivalent (3) $37,874  $36,301  $33,768  $33,573  $32,494 
Net interest income $37,825  $36,252  $33,695  $33,528  $32,446 
Provision for credit losses (6)  (1,475)  500   4,968   7,025   5,925 
Net interest income after provision for credit losses  39,300   35,752   28,727   26,503   26,521 
Non-interest income:          
Wealth management and trust services  6,248   5,805   5,657   5,726   6,218 
Deposit service charges  944   1,080   998   800   1,283 
Debit and credit card income  2,273   2,219   2,218   2,063   1,980 
Treasury management fees  1,540   1,506   1,368   1,249   1,284 
Mortgage banking income  1,444   1,708   1,979   1,622   846 
Net investment product sales commissions and fees  464   487   431   391   466 
Bank owned life insurance  161   166   172   176   179 
Other  770   727   220   595   280 
Total non-interest income  13,844   13,698   13,043   12,622   12,536 
Non-interest expenses:          
Compensation  12,827   14,072   13,300   11,763   12,233 
Employee benefits  3,261   2,173   2,853   2,871   3,167 
Net occupancy and equipment  2,045   2,137   2,177   2,037   1,831 
Technology and communication  2,346   2,347   2,323   1,999   2,063 
Debit and credit card processing  705   698   649   603   656 
Marketing and business development  524   835   523   465   560 
Postage, printing and supplies  409   423   472   442   441 
Legal and professional  862   597   544   628   623 
FDIC Insurance  405   323   435   330   129 
Amortization of investments in tax credit partnerships  31   2,955   52   53   36 
Capital and deposit based taxes  458   1,055   1,076   1,225   1,030 
Other  1,100   1,414   1,242   993   806 
Total non-interest expenses  24,973   29,029   25,646   23,409   23,575 
Income before income tax expense  28,171   20,421   16,124   15,716   15,482 
Income tax expense  5,461   2,685   1,591   2,348   2,250 
Net income $22,710  $17,736  $14,533  $13,368  $13,232 
           
Net income per share – Basic $1.00  $0.79  $0.64  $0.59  $0.59 
Net income per share – Diluted  0.99   0.78   0.64   0.59   0.58 
Cash dividend declared per share  0.27   0.27   0.27   0.27   0.27 
           
Weighted average shares – Basic  22,622   22,593   22,582   22,560   22,516 
Weighted average shares – Diluted  22,865   22,794   22,802   22,739   22,736 
           
  Quarterly Comparison
Balance Sheet Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Cash and due from banks $43,061  $43,179  $49,517  $46,362  $47,662 
Federal funds sold and interest bearing due from banks  289,920   274,766   241,486   178,032   206,849 
Mortgage loans held for sale  6,579   22,547   23,611   17,364   8,141 
Available for sale debt securities  672,167   586,978   429,184   485,249   445,813 
FHLB stock  10,228   11,284   11,284   11,284   11,284 
Loans  3,635,156   3,531,596   3,472,481   3,464,077   2,937,366 
Allowance for credit losses on loans  50,714   51,920   50,501   47,708   42,143 
Total assets  4,794,075   4,608,629   4,365,129   4,334,533   3,784,586 
Non-interest bearing deposits  1,370,183   1,187,057   1,180,001   1,205,253   858,883 
Interest bearing deposits  2,829,779   2,801,577   2,574,517   2,521,903   2,339,995 
Securities sold under agreements to repurchase  51,681   47,979   40,430   42,722   32,366 
Federal funds purchased  8,642   11,464   9,179   8,401   9,747 
FHLB advances  24,180   31,639   56,536   61,432   69,191 
Stockholders’ equity  443,232   440,701   428,598   420,231   409,702 
Total shares outstanding  22,781   22,692   22,692   22,667   22,665 
Book value per share (1) $19.46  $19.42  $18.89  $18.54  $18.08 
Tangible common equity per share (1)  18.82   18.78   18.25   17.89   17.43 
Market value per share  51.06   40.48   34.04   40.20   28.93 
           
Capital Ratios          
Total stockholders’ equity to total assets (1)  9.25%  9.56%  9.82%  9.69%  10.83%
Tangible common equity to tangible assets (1)  8.97%  9.28%  9.52%  9.39%  10.48%
Average stockholders’ equity to average assets  9.44%  9.61%  9.85%  9.66%  10.88%
Total risk-based capital  13.39%  13.36%  13.79%  13.50%  12.75%
Common equity tier 1 risk-based capital  12.32%  12.23%  12.61%  12.39%  11.81%
Tier 1 risk-based capital  12.32%  12.23%  12.61%  12.39%  11.81%
Leverage  9.46%  9.57%  9.70%  9.50%  10.78%
           
Stock Yards Bancorp, Inc. Financial Information (unaudited)          
First Quarter 2021 Earnings Release          
           
  Quarterly Comparison
Average Balance Sheet Data 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Federal funds sold and interest bearing due from banks $235,370  $271,277  $194,100  $285,617  $168,563 
Mortgage loans held for sale  14,618   28,951   28,520   18,010   4,953 
Available for sale debt securities  661,175   510,677   442,089   412,368   449,610 
Loans  3,605,760   3,483,298   3,444,407   3,396,767   2,891,668 
Total interest earning assets  4,527,563   4,305,487   4,120,400   4,124,046   3,526,078 
Total assets  4,710,836   4,512,874   4,325,500   4,317,430   3,710,119 
Interest bearing deposits  2,815,986   2,689,103   2,521,838   2,500,315   2,316,774 
Total deposits  4,094,179   3,888,247   3,707,845   3,713,451   3,120,242 
Securities sold under agreement to repurchase  56,536   55,825   49,709   49,940   43,739 
FHLB advances  29,270   48,771   59,487   63,896   73,939 
Total interest bearing liabilities  2,901,792   2,793,699   2,631,034   2,614,151   2,434,452 
Total stockholders’ equity  444,821   433,596   426,049   416,920   403,702 
           
Performance Ratios          
Annualized return on average assets  1.96%  1.56%  1.34%  1.25%  1.43%
Annualized return on average equity  20.71%  16.27%  13.57%  12.90%  13.18%
Net interest margin, fully tax equivalent  3.39%  3.35%  3.26%  3.27%  3.71%
Non-interest income to total revenue, fully tax equivalent  26.77%  27.40%  27.86%  27.32%  27.84%
Efficiency ratio, fully tax equivalent (4)  48.29%  58.06%  54.79%  50.67%  52.35%
           
Loans Segmentation          
Commercial real estate – non-owner occupied $876,523  $833,470  $828,328  $815,464  $799,284 
Commercial real estate – owner occupied  527,316   508,672   492,825   472,457   476,534 
Commercial and industrial  769,773   802,422   731,850   764,480   883,868 
Commercial and industrial – PPP  612,885   550,186   642,056   630,082    
Residential real estate – owner occupied  262,516   239,191   211,984   215,891   219,221 
Residential real estate – non-owner occupied  136,380   140,930   143,149   139,121   134,734 
Construction and land development  281,815   291,764   257,875   255,447   246,040 
Home equity lines of credit  91,233   95,366   97,150   103,672   107,121 
Consumer  51,058   44,606   44,161   43,758   44,939 
Leases  14,115   14,786   13,981   14,843   15,476 
Credit cards – commercial  11,542   10,203   9,122   8,862   10,149 
Total loans and leases $3,635,156  $3,531,596  $3,472,481  $3,464,077  $2,937,366 
           
Asset Quality Data          
Non-accrual loans $12,913  $12,514  $12,358  $14,262  $4,235 
Troubled debt restructurings  15   16   18   45   52 
Loans past due 90 days or more and still accruing  1,377   649   1,152   48   1,762 
Total non-performing loans  14,305   13,179   13,528   14,355   6,049 
Other real estate owned  281   281   612   493   493 
Total non-performing assets $14,586  $13,460  $14,140  $14,848  $6,542 
Non-performing loans to total loans (2)  0.39%  0.37%  0.39%  0.41%  0.21%
Non-performing assets to total assets  0.30%  0.29%  0.32%  0.34%  0.17%
Allowance for credit losses on loans to total loans (2)  1.40%  1.47%  1.45%  1.38%  1.43%
Allowance for credit losses on loans to average loans  1.41%  1.49%  1.47%  1.40%  1.46%
Allowance for credit losses on loans to non-performing loans  355%  394%  373%  332%  697%
Net (charge-offs) recoveries $(6) $19  $(1,625) $15  $(54)
Net (charge-offs) recoveries to average loans (5)  0.00%  0.00%  -0.05%  0.00%  0.00%
           
Other Information          
Total assets under management (in millions) $3,989  $3,852  $3,414  $3,204  $2,961 
Full-time equivalent employees  638   641   626   620   618 
           
(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) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Total stockholders’ equity – GAAP (a) $443,232  $440,701  $428,598  $420,231  $409,702 
Less: Goodwill  (12,513)  (12,513)  (12,513)  (12,513)  (12,513)
Less: Core deposit intangible  (1,885)  (1,962)  (2,042)  (2,122)  (2,203)
Tangible common equity – Non-GAAP (c) $428,834  $426,226  $414,043  $405,596  $394,986 
           
Total assets – GAAP (b) $4,794,075  $4,608,629  $4,365,129  $4,334,533  $3,784,586 
Less: Goodwill  (12,513)  (12,513)  (12,513)  (12,513)  (12,513)
Less: Core deposit intangible  (1,885)  (1,962)  (2,042)  (2,122)  (2,203)
Tangible assets – Non-GAAP (d) $4,779,677  $4,594,154  $4,350,574  $4,319,898  $3,769,870 
           
Total stockholders’ equity to total assets – GAAP (a/b)  9.25%  9.56%  9.82%  9.69%  10.83%
Tangible common equity to tangible assets – Non-GAAP (c/d)  8.97%  9.28%  9.52%  9.39%  10.48%
           
Total shares outstanding (e)   22,781     22,692     22,692     22,667     22,665  
           
Book value per share – GAAP (a/e) $19.46  $19.42  $18.89  $18.54  $18.08 
Tangible common equity per share – Non-GAAP (c/e)  18.82   18.78   18.25   17.89   17.43 
           
(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) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Total Loans – GAAP (a) $3,635,156  $3,531,596  $3,472,481  $3,464,077  $2,937,366 
Less: PPP loans  (612,885)  (550,186)  (642,056)  (630,082)   
Total non-PPP Loans – Non-GAAP (b)  3,022,271   2,981,410   2,830,425   2,833,995   2,937,366 
           
Allowance for credit losses on loans (c) $50,714  $51,920  $50,501  $47,708  $42,143 
Non-performing loans (d)  14,305   13,179   13,528   14,355   6,049 
           
Allowance for credit losses on loans to total loans – GAAP (c/a)  1.40%  1.47%  1.45%  1.38%  1.43%
Allowance for credit losses on loans to total loans – Non-GAAP (c/b)  1.68%  1.74%  1.78%  1.68%  1.43%
           
Non-performing loans to total loans – GAAP (d/a)  0.39%  0.37%  0.39%  0.41%  0.21%
Non-performing loans to total loans – Non-GAAP (d/b)  0.47%  0.44%  0.48%  0.51%  0.21%
           
(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. The calculations below reflect the reclassification of credit loss expense for off-balance sheet exposures from non-interest expense to provision for credit losses, as described in footnote 6 below. 
 
  Quarterly Comparison
(Dollars in thousands) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Total non-interest expenses – GAAP (a) $24,973  $29,029  $25,646  $23,409  $23,575 
Less: Amortization of investments in tax credit partnerships  (31)  (2,955)  (52)  (53)  (36)
Total non-interest expenses – Non-GAAP (c) $24,942  $26,074  $25,594  $23,356  $23,539 
           
Total net interest income, fully tax equivalent $37,874  $36,301  $33,768  $33,573  $32,494 
Total non-interest income  13,844   13,698   13,043   12,622   12,536 
Less: Gain/loss on sale of securities               
Total revenue – GAAP (b) $51,718  $49,999  $46,811  $46,195  $45,030 
           
Efficiency ratio – GAAP (a/b)  48.29%  58.06%  54.79%  50.67%  52.35%
Efficiency ratio – Non-GAAP (c/b)  48.23%  52.15%  54.68%  50.56%  52.27%
           
(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. The efficiency ratios and adjusted efficiency ratios calculated above in footnote 4 reflect this reclassification. 
 
  Quarterly Comparison
(in thousands) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20
           
Provision for credit losses – loans $(1,200) $1,400  $4,418  $5,550  $5,550 
Provision for credit losses – off balance sheet exposures  (275)  (900)  550   1,475   375 
Total provision for credit losses  (1,475)  500   4,968   7,025   5,925 
           

  • Check the latest Business news updates and information updates.
  • Please share this news Stock Yards Bancorp Reports Record First Quarter Earnings of $22.7 Million or $0.99 per Diluted Share Nasdaq:SYBT with your friends and family to support us your one share helps us a lot.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Future Games Showcase, What, Where, and How to Watch, Date, and Event Age of Empires 4, Elden Ring, and Exclusive Game Trailers: Ruined King A League of Legends Story

Future Games Showcase, What, Where, and How to Watch, Date, and Event Age of Empires 4, Elden Ring, and Exclusive Game Trailers: Ruined King A League of Legends Story

This year will be slightly different as PC Gamer has combined with GamesRadar to host Future Games Show on the same day as the PC Gaming show. What Can We ...
Prisma Health and Greenville Drive team up for free vaccinations at baseball games

Prisma Health and Greenville Drive team up for free vaccinations at baseball games

For anyone needing their second dose, it must be a minimum of three weeks since their first dose, but no later than six weeks, said Prisma Health officials. ...
IGM Financial Inc. reports record first quarter earnings

IGM Financial Inc. reports record first quarter earnings

Wealthsimple Financial Corp. (Wealthsimple) announcement of a further equity fundraising increasing the value of IGM’s investment in Wealthsimple by $900 ...
Former Chief of Health: Docs wrote excessive opioid prescriptions

Former Chief of Health: Docs wrote excessive opioid prescriptions

Earlier this week, the defense also attempted to shift the blame away from their clients by arguing that what happens after delivery is out of the suppliers’ ...
Bastrop County Health Authority moving to Austin-Travis County work

Bastrop County Health Authority moving to Austin-Travis County work

Escott has been the interim health authority for 20 months throughout the COVID-19 pandemic and wasn’t being paid for it. He is now the city of Austin’s chief ...
Washington sues Allianz for excluding mental health coverage

Washington sues Allianz for excluding mental health coverage

According to the lawsuit, when the Attorney General’s Office asked about the policy, Allianz responded that “in many circumstances it is difficult to fairly ...
iBio Reports Successful COVID-19 Vaccine Toxicology Study

iBio Reports Successful COVID-19 Vaccine Toxicology Study

News HighlightsBRYAN, Texas, May 06, 2021 (News) — iBio, Inc. (NYSEA:IBIO) (“iBio” or the “Company”), a biotech innovator and biologics contract ...
The Epic vs. Test  Apple reveals how Microsoft never made money on Xbox hardware

The Epic vs. Test Apple reveals how Microsoft never made money on Xbox hardware

“We sell the consoles at a loss,” Wright said. Much of the discussion in the Epic v. Apple trial has come down to the amount of sales revenue that a digital ...
Greensill UK administrators say $ 3.7 billion in AUM collected so far

Greensill UK administrators say $ 3.7 billion in AUM collected so far

Some of Greensill’s assets were backed by insurance and Grant Thornton said investors may be able to recover some funds through insurance claims. It has ...
Revenue roughly doubled compared to Xbox Games & Services in 2019

Revenue roughly doubled compared to Xbox Games & Services in 2019

Information has been shared and commented on before Daniel Ahmed |, Nico Partners analyst. Through the document we can see that Microsoft is one of the ...
Show next
Compsmag - Latest News from tech, business and health
Logo