Stock Yards Bancorp Reports Record Net Income for the Fourth Quarter and Full Year 2016 as Earnings Per Diluted Share Rise to $0.46 and $1.80, Respectively

LOUISVILLE, Ky.--()--Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville, Indianapolis and Cincinnati metropolitan markets, today reported results for the fourth quarter and year ended December 31, 2016. Net income for the fourth quarter of 2016 increased 10% to $10.6 million or $0.46 per diluted share – a record in terms of net income for a quarter and equaling the best net income per diluted share for a quarter in the Company's history – compared with $9.6 million or $0.43 per diluted share for the fourth quarter of 2015. Net income for the year ended December 31, 2016, increased 10% to a record $41.0 million or $1.80 per diluted share from $37.2 million or $1.65 per diluted share. All per share information in this release has been adjusted for and reflects the three-for-two stock split distributed in May 2016.

“A discussion of the past year would be incomplete without acknowledging the increase in the Company's share price”

The Company's performance for the fourth quarter of 2016 reflected several positive factors, including:

  • Remarkable net loan growth, capitalizing on the momentum that has been building over the past several years and resulting in 10% net interest income growth versus the year-earlier quarter;
  • Credit quality reached historically strong levels;
  • Significantly higher fee income, led by wealth management and trust; and
  • Solid returns on average assets and equity of 1.41% and 13.44%, respectively.

"We are pleased to report a strong finish to 2016, capping another year of growth and increasing profitability, as total assets surpassed $3 billion and net income reached another record amount," said David P. Heintzman, Chairman and Chief Executive Officer. "A central driver for this performance can be seen in our outstanding loan production this past year, which marked a new high point for the Bank and, importantly, reflected increases across all three of our markets. This progress, in turn, powered a 13% rise in our loan portfolio for the year, while credit quality metrics remained exceptionally strong. The Company's results also reflected a 9% increase in fee-based income, which continued to comprise 31% of our total revenue for 2016. This level is well ahead of peers and even more impressive given the higher net interest income associated with loan portfolio growth. Together, these factors continue to drive consistent, predictable results that translate into attractive returns on assets and equity, and provide the foundation for steadily higher cash dividends for our stockholders."

Commenting further on loan growth, Heintzman noted that many customers increasingly have begun to utilize credit facilities put in place since the last financial crisis, resulting in increased conversion of loan production into loans outstanding. Consistent with its strategy, management continues to focus on select loan categories, such as commercial and industrial lending and owner-occupied commercial real estate, as the Company builds its loan portfolio. Meanwhile, the Company remains well under regulatory guidelines for commercial real estate lending.

Speaking to the growth of fee-based income, Heintzman said, "The substantial amount and diverse sources of this revenue continue to set us apart from most other community banks. Our most significant source of fee income, wealth management and trust, produced almost one-half of the year's total, as it grew assets under management 13% to $2.5 billion. This increase reflected not only a rising stock market during 2016, but also the best year ever for wealth management and trust in terms of adding new clients. Also contributing to wealth management and trust's fee income for 2016 was an increase in non-recurring revenue related to estate settlement and corporate retirement plans. Because of this momentum and with an impressive pipeline of new business opportunities, we look for another solid performance from this area in the coming year." Heintzman also noted that, in tandem with wealth management and trust, the Company's other platforms for fee-based service, including service charges on deposit accounts, bank card income, mortgage banking, and securities brokerage, also posted higher revenue in 2016.

"A discussion of the past year would be incomplete without acknowledging the increase in the Company's share price," Heintzman continued. "We recognize much of the increase reflected external factors beyond our control, most notably the stock market rally that occurred after the presidential election. However, we also note that almost one-half of the increase in our share price during 2016 preceded that event. This indicates, in our view, the Company's fundamental strengths, strategic advantages, long-term prospects, and the way those factors combine to shape a consistent, long-term performance that continues to place Stock Yards Bancorp among the nation's top-performing community banks."

In conclusion, Heintzman said, "We have long considered that the best way to build our business is through organic growth, one relationship at a time. Our entire organization is aligned on that philosophy, and we believe it shows in the loyalty that our customers express, which, in turn, reflects in the Company's record performance for 2016. Coming off of a year of exceptional loan growth and significantly higher fee-based income, and the high expectations they may foster, we nonetheless are pleased to begin 2017 with strong momentum throughout our business and across our markets. Considering this and the Company's strong capital base, we look forward to future success and growth."

Total assets increased $222 million or 8% at December 31, 2016, to $3.04 billion from $2.82 billion at December 31, 2015. Driving this increase was ongoing growth in the Company's loan portfolio, which rose a record $272 million or 13% to $2.31 billion at December 31, 2016, from $2.03 billion at December 31, 2015. The Company continues to provide substantial support for its balance sheet growth through increased deposits. Total deposits increased $149 million or 6% to $2.52 billion at December 31, 2016, from $2.37 billion at December 31, 2015, reflecting growth across most deposit account categories, including non-interest bearing accounts, for both existing and new customers. Core deposits, which exclude brokered deposits and time deposits greater than $250,000, held steady at 98.4% of total deposits as of December 31, 2016.

The Company continued to sustain strong capital levels in the fourth quarter of 2016, remaining "well capitalized" – the highest capital rating for financial institutions. Stock Yards Bancorp's tangible common equity ratio as of December 31, 2016, was 10.27% (tangible common equity is a non-GAAP financial measure; see reconciliation of total stockholders' equity to tangible common equity and total assets to tangible assets later in this release).

With its balance sheet strength, Stock Yards Bancorp has continued to pursue capital strategies to enhance stockholder value, including a substantial and sustained dividend payout ratio. These efforts reflect nine dividend increases during the past five years, including two during 2016, for a cumulative increase of approximately 58% since 2011. Meanwhile, the Company has maintained its financial flexibility to pursue strategic expansion and acquisition opportunities that may arise. While some may consider the Company's capital level as higher than needed, management believes Stock Yards Bancorp's stockholders value its ability to maintain high levels of capital for strength, stability and expansion, as opportunities arise, while, at the same time, producing consistently strong returns.

Net interest income – the Company's largest source of revenue – increased $2.3 million or 10% to $25.1 million in the fourth quarter of 2016 from $22.8 million in the prior-year quarter. The increase reflected the impact of further growth in the loan portfolio together with stable, deposit-driven funding costs. Net interest income increased $8.9 million or 10% to $97.3 million in 2016 from $88.3 million in the prior-year period, reflecting the same factors.

As anticipated, net interest margin (on a fully tax-equivalent basis) remained under pressure in the fourth quarter of 2016, continuing a trend that has spanned the last several years and reflecting the impact of a highly competitive lending market. In the fourth quarter of 2016, net interest margin was 3.56% compared with 3.65% in the third quarter of 2016 and 3.57% in the fourth quarter of 2015. The Company's normalized or core net interest margin (core net interest margin is a non-GAAP financial measure; see reconciliation of net interest margin to core interest margin later in this release) was 3.60% for the fourth quarter of 2016, up one basis point from the third quarter of 2016 and level with the fourth quarter of 2015. Considering the recent increase in short-term interest rates implemented by the Federal Open Market Committee and with the expectation of additional increases in 2017, management anticipates that net interest margins will increase during the coming year. Since approximately 67% of the Company's loan portfolio is priced at fixed rates and 12% is priced at variable rates with floors of 4%, future rate increases will not fully benefit the Company until existing fixed-rate loans renew and new fixed-rate loans originate at higher rates, and the prime rate, currently at 3.75%, rises to exceed the floor associated with variable rate loans.

The Company's solid asset quality metrics have continued to trend within a narrow range over the past several years and reached historically strong levels during the fourth quarter of 2016. Non-performing loans (NPLs) totaled $6.7 million or 0.29% of total loans outstanding at December 31, 2016, versus $8.0 million or 0.36% of total loans outstanding at September 30, 2016, and $8.9 million or 0.44% of total loans outstanding at December 31, 2015. Similarly, non-performing assets, which include NPLs along with other real estate owned and repossessed assets, were $11.7 million or 0.39% of total assets at December 31, 2016, versus $13.0 million or 0.44% of total assets at September 30, 2016, and $13.5 million or 0.48% of total assets at December 31, 2015. Net charge-offs in the fourth quarter of 2016 totaled $862 thousand versus $22 thousand in the third quarter of 2016 and net recoveries of $77 thousand in the fourth quarter of 2015. Management considers the present asset quality metrics to be exceptionally strong and, recognizing the cyclical nature of the lending business, believes they will normalize over the long term.

Reflecting a number of factors, including loan growth and qualitative considerations, the Company recorded a loan loss provision of $500 thousand during the fourth quarter of 2016 compared with $1.3 million in the third quarter of 2016 and $750 thousand in the fourth quarter of 2015. The Company's allowance for loan losses was 1.04% of total loans as of December 31, 2016, versus 1.10% as of September 30, 2016, and 1.10% at December 31, 2015.

Total non-interest income in the fourth quarter of 2016 increased $1.2 million or 12% to $11.3 million from $10.1 million in the prior-year quarter. This increase reflected higher fee income from various sources, but particularly from wealth management and trust. Total non-interest income for the year ended December 31, 2016, increased $3.6 million or 9% to $43.5 million from $40.0 million in the prior-year period, again led by fee income from wealth management and trust.

Total non-interest expense for the fourth quarter of 2016 increased $3.0 million or 16% to $21.3 million from $18.3 million in the prior-year quarter. The increase reflected the addition of personnel associated with growth and operational support, higher incentive compensation related to accelerating loan and earnings growth, and increases in certain employee benefits. Additionally, the amortization of investments in tax-credit partnerships was higher compared with the year-earlier quarter as the Company has increased its commitment to customers pursuing tax-advantaged projects primarily involving historical redevelopment. These investments generate income tax savings that exceed amortization expense. For the year ended December 31, 2016, total non-interest expense increased $8.1 million or 11% to $81.5 million from $73.4 million in the prior-year period, largely reflecting the same trends noted for the quarter. The net effect of amortization of investments in tax-credit partnerships and related income tax savings added approximately $0.04 to the Company's net income per diluted share for 2016.

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.0 billion in assets, was incorporated in 1988 as a bank holding company. It is the parent company of Stock Yards Bank & Trust Company, which was established in 1904. The Company's common shares trade on the NASDAQ Global Select Market under the symbol SYBT.

The following table provides a reconciliation of total stockholders' equity, in accordance with US GAAP, to tangible common equity, which is a non-GAAP financial measure. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

 
Reconciliation of Total Stockholders' Equity to Tangible Common Equity Ratio

(Dollars in thousands)

   
  Dec. 31, Sept. 30,

Dec. 31,

2016 2016

2015

Total stockholders' equity (a) $ 313,872 $ 311,570 $ 286,519
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,405 )   (1,453 )   (1,601 )
Tangible common equity (c) $ 311,785   $ 309,435   $ 284,236  
 
Total assets (b) $ 3,038,659 $ 2,938,665 $ 2,816,801
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,405 )   (1,453 )   (1,601 )
Tangible assets (d) $ 3,036,572   $ 2,936,530   $ 2,814,518  
 
Total stockholders' equity to total assets (a/b) 10.33 % 10.60 % 10.17 %
Tangible common equity ratio (c/d)   10.27 %   10.54 %   10.10 %
 

The following table provides a reconciliation of net interest margin in accordance with US GAAP to core net interest margin, which is a non-GAAP financial measure. Core net interest margin excludes the effect of prepayment penalty income from borrowers, the accretion of purchase accounting loan fair value adjustments, and the effect of excess liquidity, which the Company defines as the combined amount of federal funds sold and short-term securities available for sale, typically maturing in one week or less, in excess of $60 million. The Company provides this information to illustrate sequentially the trend in quarterly net interest margin to show the impact of those items on net interest margin.

 
Reconciliation of Net Interest Margin to Core Net Interest Margin
 
  Dec. 31,   Sept. 30,   June 30,   March 31,  

Dec. 31,

2016 2016 2016 2016

2015

Net interest margin 3.56 % 3.65 % 3.59 % 3.56 % 3.57 %
Prepayment penalties (0.02 ) (0.07 ) (0.02 ) (0.05 ) (0.02 )
Accretion of fair value adjustments -- -- -- -- (0.01 )
Excess liquidity 0.06   0.01   0.03   0.13   0.06  
Core net interest margin 3.60 % 3.59 % 3.60 % 3.64 % 3.60 %
 

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 subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company's customers; and other risks detailed in the Company's filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. See Risk Factors outlined in the Company's Form 10-K for the year ended December 31, 2015.

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2016 Earnings Release
(In thousands unless otherwise noted)
  Three Months Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,272 $ 23,050 $ 98,088 $ 89,246
Interest income:
Loans $ 23,806 $ 21,420 $ 91,798 $ 83,371
Federal funds sold 96 79 491 263
Mortgage loans held for sale 52 69 237 249
Securities   2,414   2,471   9,646   9,287
Total interest income   26,368   24,039   102,172   93,170
Interest expense:
Deposits 1,027 928 3,943 3,739
Federal funds purchased and short-term borrowing 19 6 76 25
Securities sold under agreements to repurchase 36 38 136 149
Federal Home Loan Bank (FHLB) advances   211   245   763   939
Total interest expense   1,293   1,217   4,918   4,852
Net interest income 25,075 22,822 97,254 88,318
Provision for loan losses   500   750   3,000   750
Net interest income after provision for loan losses   24,575   22,072   94,254   87,568
Non-interest income:
Wealth management and trust services 4,936 4,450 19,155 18,026
Service charges on deposit accounts 2,519 2,285 9,471 8,906
Bankcard transaction 1,457 1,285 5,655 4,876
Mortgage banking 1,001 975 3,897 3,488
Securities brokerage 606 449 2,145 1,994
Bank owned life insurance 214 219 871 889
Other non-interest income   586   410   2,343   1,771
Total non-interest income   11,319   10,073   43,537   39,950
Non-interest expense:
Salaries and employee benefits 12,971 10,893 49,185 44,709
Net occupancy 1,563 1,475 6,279 5,912
Data processing 1,901 1,566 7,073 6,348
Furniture and equipment 290 285 1,143 1,074
FDIC insurance 146 326 1,181 1,258
Amortization of investment in tax credit partnerships 1,412 159 4,458 634
Other non-interest expenses   2,986   3,618   12,201   13,463
Total non-interest expense   21,269   18,322   81,520   73,398
Net income before income tax expense 14,625 13,823 56,271 54,120
Income tax expense   4,009   4,177   15,244   16,933
Net income $ 10,616 $ 9,646 $ 41,027 $ 37,187
 
Weighted average shares - basic (2) 22,448 22,183 22,356 22,088
Weighted average shares - diluted 22,952 22,566 22,792 22,459
 
Net income per share, basic $ 0.47 $ 0.43 $ 1.84 $ 1.68
Net income per share, diluted 0.46 0.43 1.80 1.65
Cash dividend declared per share 0.19 0.17 0.72 0.64
 
Balance Sheet Data (at period end)
Total loans $ 2,305,375 $ 2,033,007
Allowance for loan losses 24,007 22,441
Total assets 3,038,659 2,816,801
Non-interest bearing deposits 680,156 583,768
Interest bearing deposits 1,840,392 1,787,934
Federal Home Loan Bank advances 51,075 43,468
Stockholders' equity 313,872 286,519
Total shares outstanding 22,617 22,379
Book value per share 13.88 12.80
Market value per share 46.95 25.19
 

 
Stock Yards Bancorp, Inc. Financial Information (unaudited)

Fourth Quarter 2016 Earnings Release

         
Three Months Ended Year Ended
December 31, December 31,
2016 2015 2016 2015
Average Balance Sheet Data
Average federal funds sold $ 70,186 $ 99,903 $ 92,994 $ 82,405
Average mortgage loans held for sale 4,770 4,991 4,881 5,345
Average securities available for sale 494,868 471,349 479,938 424,723
Average FHLB stock and other securities 6,347 6,347 6,347 6,347
Average loans 2,261,104 1,986,289 2,159,153 1,919,201
Average earning assets 2,821,373 2,561,650 2,730,949 2,430,400
Average assets 2,984,696 2,708,630 2,886,396 2,573,901
Average interest bearing deposits 1,802,150 1,664,979 1,763,858 1,594,256
Average total deposits 2,488,590 2,271,431 2,413,894 2,152,441
Average securities sold under agreement
to repurchase 69,318 66,918 62,670 65,140
Average federal funds purchased and
other short term borrowings 18,076 14,147 23,275 15,147
Average Federal Home Loan Bank advances 51,183 43,546 45,455 41,041
Average interest bearing liabilities 1,940,727 1,789,590 1,895,258 1,715,584
Average stockholders' equity 314,299 284,824 304,151 274,451
 
Performance Ratios
Annualized return on average assets 1.41 % 1.41 % 1.42 % 1.44 %
Annualized return on average equity 13.44 % 13.44 % 13.49 % 13.55 %
Net interest margin, fully tax equivalent 3.56 % 3.57 % 3.59 % 3.67 %
Non-interest income to total revenue, fully
tax equivalent 30.93 % 30.41 % 30.74 % 30.92 %
Efficiency ratio 58.13 % 55.32 % 57.56 % 56.81 %
 
Capital Ratios
Average stockholders' equity to average assets 10.53 % 10.52 % 10.54 % 10.66 %
Common equity tier 1 capital 12.10 % 12.32 %
Tier 1 risk-based capital 12.10 % 12.32 %
Total risk-based capital 13.04 % 13.31 %
Leverage 10.54 % 10.53 %
 
Loans by Type
Commercial and industrial $ 736,841 $ 644,398
Construction and development 213,844 155,667
Real estate mortgage - commercial investment 538,886 436,989
Real estate mortgage - owner occupied commercial 408,292 420,666
Real estate mortgage - 1-4 family residential 249,498 226,575
Home equity - first lien 55,325 50,115
Home equity - junior lien 67,519 63,066
Consumer   35,170     35,531  
Total loans $ 2,305,375   $ 2,033,007  
 
Asset Quality Data
Allowance for loan losses to total loans 1.04 % 1.10 %
Allowance for loan losses to average loans 1.06 % 1.13 % 1.11 % 1.17 %
Allowance for loan losses to non-performing loans 357.94 % 251.33 %
Nonaccrual loans $ 5,295 $ 7,693
Troubled debt restructuring 974 1,060
Loans - 90 days past due & still accruing 438 176
Total non-performing loans 6,707 8,929
OREO and repossessed assets   5,033     4,541  
Total non-performing assets $ 11,740 $ 13,470
Non-performing loans to total loans 0.29 % 0.44 %
Non-performing assets to total assets 0.39 % 0.48 %
Net charge-offs to average loans (3) 0.04 % 0.00 % 0.07 % 0.17 %
Net charge-offs $ 862 $ (77 ) $ 1,434 $ 3,229
 

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2016 Earnings Release
 
Five Quarter Comparison
12/31/16 9/30/16 6/30/16 3/31/16 12/31/15
Income Statement Data
Net interest income, fully tax equivalent (1) $ 25,272   $ 24,963   $ 24,165   $ 23,687   $ 23,050  
Net interest income $ 25,075 $ 24,760 $ 23,950 $ 23,469 $ 22,822
Provision for loan losses   500     1,250     750     500     750  
Net interest income after provision for loan losses   24,575     23,510     23,200     22,969     22,072  
Wealth management and trust services 4,936 4,800 4,807 4,612 4,450
Service charges on deposit accounts 2,519 2,544 2,262 2,146 2,285
Bankcard transaction 1,457 1,455 1,433 1,310 1,285
Mortgage banking 1,001 1,072 1,030 794 975
Securities brokerage 606 558 538 443 449
Bank owned life insurance 214 216 220 221 219
Other non-interest income   586     713     488     556     410  
Total non-interest income   11,319     11,358     10,778     10,082     10,073  
Salaries and employee benefits 12,971 12,048 11,971 12,195 10,893
Net occupancy 1,563 1,646 1,546 1,524 1,475
Data processing 1,901 1,747 1,881 1,544 1,566
Furniture and equipment 290 277 291 285 285
FDIC Insurance 146 356 351 328 326
Amortization of investment in tax credit partnerships 1,412 1,015 1,016 1,015 159
Other non-interest expenses   2,986     3,429     3,137     2,649     3,618  
Total non-interest expense   21,269     20,518     20,193     19,540     18,322  
Net income before income tax expense 14,625 14,350 13,785 13,511 13,823
Income tax expense   4,009     3,883     3,676     3,676     4,177  
Net income $ 10,616   $ 10,467   $ 10,109   $ 9,835   $ 9,646  
 
Weighted average shares - basic 22,448 22,385 22,336 22,254 22,183
Weighted average shares - diluted 22,952 22,803 22,704 22,592 22,566
 
Net income per share, basic $ 0.47 $ 0.47 $ 0.45 $ 0.44 $ 0.43
Net income per share, diluted 0.46 0.46 0.45 0.44 0.43
Cash dividend declared per share 0.19 0.18 0.18 0.17 0.17
 
Balance Sheet Data (at period end)
Cash and due from banks $ 39,709 $ 41,533 $ 40,618 $ 35,022 $ 35,895
Federal funds sold 8,264 16,360 9,616 13,016 67,938
Mortgage loans held for sale 3,213 5,959 6,405 3,984 6,800
Securities available for sale 570,074 541,681 567,307 569,012 565,876
FHLB stock and other securities 6,347 6,347 6,347 6,347 6,347
Total loans 2,305,375 2,222,706 2,175,551 2,094,488 2,033,007
Allowance for loan losses 24,007 24,369 23,141 22,451 22,441
Total assets 3,038,659 2,938,665 2,909,519 2,824,107 2,816,801
Non-interest bearing deposits 680,156 680,078 637,812 606,375 583,768
Interest bearing deposits 1,840,392 1,710,519 1,712,136 1,759,725 1,787,934
Securities sold under agreements to repurchase 67,595 67,315 57,437 54,781 64,526
Federal funds purchased 47,374 76,387 114,154 30,083 22,477
Federal Home Loan Bank advances 51,075 51,366 43,002 43,236 43,468
Stockholders' equity 313,872 311,570 305,051 296,323 286,519
Total shares outstanding 22,617 22,563 22,510 22,478 22,379
Book value per share 13.88 13.81 13.55 13.18 12.80
Market value per share 46.95 32.96 28.23 25.69 25.19
 
Capital Ratios
Average stockholders' equity to average assets 10.53 % 10.72 % 10.51 % 10.38 % 10.52 %
Common equity tier 1 capital 12.10 % 12.07 % 12.06 % 12.23 % 12.32 %
Tier 1 risk-based capital 12.10 % 12.07 % 12.06 % 12.23 % 12.32 %
Total risk-based capital 13.04 % 13.05 % 13.01 % 13.19 % 13.31 %
Leverage 10.54 % 10.63 % 10.46 % 10.35 % 10.53 %
 

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2016 Earnings Release
 
Five Quarter Comparison
12/31/16 9/30/16 6/30/16 3/31/16 12/31/15
Average Balance Sheet Data
Average federal funds sold $ 70,186 $ 72,673 $ 85,914 $ 143,679 $ 99,903
Average mortgage loans held for sale 4,770 5,070 5,432 4,249 4,991
Average investment securities 494,868 466,462 475,275 483,130 471,349
Average loans 2,261,104 2,188,089 2,142,530 2,043,450 1,986,289
Average earning assets 2,821,373 2,722,324 2,705,358 2,673,842 2,561,650
Average assets 2,984,696 2,883,146 2,858,624 2,818,072 2,708,630
Average interest bearing deposits 1,802,150 1,738,315 1,736,478 1,778,347 1,664,979
Average total deposits 2,488,590 2,395,003 2,400,547 2,370,819 2,271,431
Average securities sold under agreement
to repurchase 69,318 68,835 53,514 58,871 66,918
Average federal funds purchased and
other short term borrowings 18,076 23,471 28,152 23,456 14,147
Average Federal Home Loan Bank advances 51,183 44,194 43,081 43,316 43,546
Average interest bearing liabilities 1,940,727 1,874,815 1,861,225 1,903,990 1,789,590
Average stockholders' equity 314,299 309,045 300,553 292,540 284,824
 
Performance Ratios
Annualized return on average assets 1.41 % 1.44 % 1.42 % 1.40 % 1.41 %
Annualized return on average equity 13.44 % 13.47 % 13.53 % 13.52 % 13.44 %
Net interest margin, fully tax equivalent 3.56 % 3.65 % 3.59 % 3.56 % 3.57 %
Non-interest income to total revenue, fully
tax equivalent 30.93 % 31.27 % 30.84 % 29.85 % 30.41 %
Efficiency ratio 58.13 % 56.49 % 57.79 % 57.86 % 55.32 %
 
Loans by Type
Commercial and industrial $ 736,841 $ 708,508 $ 721,956 $ 676,782 $ 644,398
Construction and development 213,844 191,987 156,371 160,667 155,667
Real estate mortgage - commercial investment 538,886 510,128 488,187 452,173 436,989
Real estate mortgage - owner occupied commercial 408,292 412,733 418,113 417,285 420,666
Real estate mortgage - 1-4 family residential 249,498 245,229 240,770 234,199 226,575
Home equity - 1st lien 55,325 54,837 52,360 52,042 50,115
Home equity - junior lien 67,519 65,605 65,999 63,336 63,066
Consumer   35,170     33,679     31,795     38,004     35,531  
Total loans $ 2,305,375   $ 2,222,706   $ 2,175,551   $ 2,094,488   $ 2,033,007  
 
Asset Quality Data
Allowance for loan losses to total loans 1.04 % 1.10 % 1.06 % 1.07 % 1.10 %
Allowance for loan losses to average loans 1.06 % 1.11 % 1.08 % 1.10 % 1.13 %
Allowance for loan losses to non-performing loans 357.94 % 305.84 % 361.58 % 251.75 % 251.33 %
Nonaccrual loans $ 5,295 $ 6,889 $ 4,970 $ 7,878 $ 7,693
Troubled debt restructuring 974 999 1,020 1,040 1,060
Loans - 90 days past due & still accruing 438 80 410 - 176
Total non-performing loans 6,707 7,968 6,400 8,918 8,929
OREO and repossessed assets   5,033     5,042     5,093     5,049     4,541  
Total non-performing assets $ 11,740 $ 13,010 $ 11,493 $ 13,967 $ 13,470
Non-performing loans to total loans 0.29 % 0.36 % 0.29 % 0.43 % 0.44 %
Non-performing assets to total assets 0.39 % 0.44 % 0.40 % 0.49 % 0.48 %
Net charge-offs to average loans 0.04 % 0.00 % 0.00 % 0.02 % 0.00 %
Net charge-offs (recoveries) $ 862 $ 22 $ 60 $ 490 $ (77 )
 
Other Information
Total assets under management (in millions) $ 2,523 $ 2,413 $ 2,342 $ 2,255 $ 2,238
Full-time equivalent employees 578 558 549 550 555
 
(1) - Interest income on a fully tax equivalent basis includes the additional amount of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in assets subject to federal, state and local taxes yielding the same after-tax income.
(2) - Share and per share information adjusted to reflect the 3 for 2 stock split - May 2016
(3) - Interim ratios not annualized
 

Contacts

Stock Yards Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President and Chief Financial Officer

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