Stock Yards Bancorp Again Posts Record Net Income as Third Quarter 2016 Earnings Increase 13% to $10.5 Million

Diluted Earnings Per Share Increase 12% to a Record $0.46 for the Quarter

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 third quarter and nine months ended September 30, 2016. Net income for the third quarter of 2016 increased 13% to $10.5 million or $0.46 per diluted share from $9.3 million or $0.41 per diluted share for the third quarter of 2015. Net income for the nine months ended September 30, 2016, increased 10% to $30.4 million or $1.34 per diluted share from $27.5 million or $1.23 per diluted share. Please note that all per share information in this release has been adjusted for and reflects the three-for-two stock split distributed in May 2016.

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

  • Robust organic net loan growth, building on momentum witnessed over the past several years;
  • Credit quality at historically strong levels;
  • Growing fee income lead by revenue from the Company's wealth management and trust services; and
  • Solid returns on average assets and equity of 1.44% and 13.47%, respectively.

"Stock Yards Bancorp turned in another exceptional performance for the third quarter of 2016, with record net income for the second consecutive quarter," said David P. Heintzman, Chairman and Chief Executive Officer. "Considering the low-rate environment in which we find ourselves, we believe a 13% increase in net income for the quarter – together with strong loan growth, higher fee income and a solid return on assets – continues to set the Company apart from many of its peers and demonstrates why Stock Yards Bancorp is considered one of the country's best-performing community banks.

"The foundation of our growth remains on the banking side of our business, where production and net loans have continued to increase throughout the past year," Heintzman continued. "Importantly, this success reflects ongoing expansion in key categories, like commercial and industrial lending and owner-occupied commercial real estate, which are at the center of our long-term strategy. We also continue to limit our exposure to commercial real estate lending and remain well under regulatory guidelines for that category. With 9% net loan growth through the first nine months of the year and a 14% increase for the trailing 12 months, together with a strong pipeline as we head into the final quarter of 2016, we continue to expect a good earnings lift going forward from our expanding loan portfolio.

"In tandem with the success of our lenders, we are pleased to note ongoing strength in our fee-based businesses, which generated 31.4% of our revenue in the third quarter of 2016, up from 31.0% for the second quarter and 31.1% in the year-earlier period," Heintzman added. "This proportional increase represents quite a feat considering our ongoing loan growth and the related interest income effect it has produced."

Heintzman pointed out that revenue from wealth management and trust services continues to lead the increase in fee income. Wealth management and trust's revenue is accelerating due largely to new account growth, with approximately $2.4 billion in assets under management as of September 30, 2016. Other factors affecting its revenue included nonrecurring fees, such as those earned for estate settlement and the administration of company-sponsored retirement plans, as well as positive returns in the overall securities markets. The performance of the Bank's mortgage banking department also remained strong in the third quarter of 2016, with higher revenue versus both the second quarter and the year-earlier period.

Concluding, Heintzman said, "We are very pleased with Stock Yards Bancorp's progress through the first nine months of 2016, measured in terms of both growth and asset quality. The Company's efforts behind these improvements have now culminated in back-to-back quarters of record net income. We also are encouraged by the momentum we see still building in lending and fee-based revenue. Together, these factors continue to position our company to deliver predictable, reliable earnings growth and, in turn, provide greater returns to our stockholders."

Total assets increased $314 million or 12% at September 30, 2016, to $2.94 billion from $2.62 billion at September 30, 2015. Driving this increase was ongoing growth in the Company's loan portfolio, which rose $268 million or 14% to $2.22 billion at September 30, 2016, from $1.95 billion at September 30, 2015. The Company continues to provide substantial support for its balance sheet growth through increased deposits. Total deposits increased $249 million or 12% to $2.39 billion at September 30, 2016, from $2.14 billion at September 30, 2015, reflecting growth in existing accounts as well as the addition of new accounts during the past year. On a linked-quarter basis, total deposits increased slightly due to increases in money market deposits and non-interest bearing demand deposits, which more than offset a decrease in interest-bearing demand deposits. Core deposits, which exclude brokered deposits and time deposits greater than $250,000, held steady at 98.5% of total deposits as of September 30, 2016.

The Company continued to sustain strong capital levels in the third quarter of 2016, remaining "well capitalized" – the highest capital rating for financial institutions. Stock Yards Bancorp's tangible common equity ratio as of September 30, 2016, was 10.54% (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, highlighted by seven increases in the cash dividend rate during the past five years for a cumulative increase of approximately 50% since 2011. Meanwhile, the Company has maintained its financial flexibility to pursue strategic expansion and acquisition opportunities that may arise. While some may view the Company's capital level as unnecessarily high, management believes Stock Yards Bancorp is in an enviable position of being able to maintain high levels of capital for strength and stability while, at the same time, producing strong returns on stockholders' equity.

Net interest income – the Company's largest source of revenue – increased $2.7 million or 12% to $24.8 million in the third quarter of 2016 from $22.1 million in the prior-year quarter. The increase reflected the impact of further growth in the loan portfolio together with a reduction in interest costs. Net interest income increased $6.7 million or 10% to $72.2 million in the first nine months of 2016 from $65.5 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 third quarter of 2016, which has been the case throughout the past year and primarily reflective of the impact of a highly competitive lending market. In the third quarter of 2016, net interest margin was 3.65%, benefiting from substantial prepayment fee income, compared with 3.59% in the second quarter of 2016 and 3.66% in the third 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 3.59% for the third quarter of 2016, down one basis point from the second quarter of 2016 and down seven basis points from the third quarter of 2015. Management anticipates that margin pressure will continue due to competition and the current low-rate environment. Further, since approximately 64% of the Company's loan portfolio are priced at fixed rates and 12% are priced at variable rates with floors of 4%, future rate increases will not fully benefit the Company until new fixed-rate loans begin to originate at higher rates and the prime rate, currently at 3.5%, rises to exceed the floor associated with variable rate loans.

The Company's solid asset quality metrics continued to trend within a narrow range during the third quarter of 2016, having returned to these historically strong levels over the past several years. Non-performing loans (NPLs) totaled $8.0 million or 0.36% of total loans outstanding at September 30, 2016, versus $6.4 million or 0.29% of total loans outstanding at June 30, 2016, and $11.2 million or 0.57% of total loans outstanding at September 30, 2015. Similarly, non-performing assets, which include NPLs along with other real estate owned (OREO) and repossessed assets, were $13.0 million or 0.44% of total assets at September 30, 2016, versus $11.5 million or 0.40% of total assets at June 30, 2016, and $15.8 million or 0.60% of total assets at September 30, 2015. Net charge-offs in the third quarter of 2016 totaled $22 thousand versus $60 thousand in the second quarter of 2016 and $1.7 million in the third quarter of 2015.

Reflecting a number of factors, including loan growth and qualitative considerations, the Company recorded a loan loss provision of $1.3 million during the third quarter of 2016 compared with $750 thousand in the second quarter of 2016 and no loan loss provision in the third quarter of 2015. The Company's allowance for loan losses was 1.10% of total loans as of September 30, 2016, versus 1.06% as of June 30, 2016, and 1.11% at September 30, 2015.

Total non-interest income in the third quarter of 2016 increased $1.4 million or 14% to $11.4 million from $10.0 million in the prior-year quarter. This increase primarily reflected higher fee income from wealth management and trust services, growth in mortgage banking revenue, and greater bankcard transaction revenue. Total non-interest income for the nine months ended September 30, 2016, increased $2.3 million or 8% to $32.2 million from $29.9 million in the prior-year period, reflecting contributions from wealth management and trust services, bankcard transactions and mortgage banking.

Total non-interest expense for the third quarter of 2016 increased $2.1 million or 11% to $20.5 million from $18.4 million in the prior-year quarter. The increase was primarily due to an increase in amortization of investments in tax-credit partnerships, which resulted in a reduction in the Company's effective tax rate for the quarter, generating income tax savings that exceeded amortization expense. In addition, salaries and employee benefits increased due to higher salaries and wages reflecting normal salary increases, the addition of personnel associated with growth and operational support, and increased incentive compensation related to accelerating loan and earnings growth. For the nine months ended September 30, 2016, total non-interest expense increased $5.2 million or 9% to $60.3 million from $55.1 million in the prior-year period, largely reflecting the same trends noted for the quarter.

Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $2.9 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.

 

Tangible Common Equity Ratio

(Dollars in thousands)

   
  Sept. 30, June 30, Sept. 30,
2016 2016 2015
Total stockholders' equity (a) $ 311,570 $ 305,051 $ 280,948
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,453 )   (1,500 )   (1,654 )
Tangible common equity (c) $ 309,435   $ 302,869   $ 278,612  
 
Total assets (b) $ 2,938,665 $ 2,909,519 $ 2,624,607
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (1,453 )   (1,500 )   (1,654 )
Tangible assets (d) $ 2,936,530   $ 2,907,337   $ 2,622,271  
 
Total stockholders' equity to total assets (a/b) 10.60 % 10.48 % 10.70 %
Tangible common equity ratio (c/d)   10.54 %   10.42 %   10.62 %
 

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 Interest Margin
 
Sept. 30,   June 30,   March 31,   Dec. 31,   Sept. 30,
2016 2016 2016 2015 2015
Net interest margin 3.65 % 3.59 % 3.56 % 3.57 % 3.66 %
Prepayment penalties (0.07 ) (0.02 ) (0.05 ) (0.02 ) (0.01 )
Accretion of fair value adjustments -- -- -- (0.01 ) (0.02 )
Excess liquidity 0.01   0.03   0.13   0.06   0.03  
Core net interest margin 3.59 % 3.60 % 3.64 % 3.60 % 3.66 %
 

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)
Third Quarter 2016 Earnings Release
(In thousands unless otherwise noted)
  Three Months Ended Nine Months Ended
September 30, September 30,
2016 2015 2016 2015

Income Statement Data

Net interest income, fully tax equivalent (1) $ 24,963 $ 22,312 $ 72,816 $ 66,196
Interest income:
Loans $ 23,436 $ 20,924 $ 67,992 $ 61,951
Federal funds sold 95 65 395 184
Mortgage loans held for sale 66 67 185 180
Securities   2,345   2,228   7,232   6,816
Total interest income   25,942   23,284   75,804   69,131
Interest expense:
Deposits 941 900 2,916 2,811
Federal funds purchased and short-term borrowing 19 7 57 19
Securities sold under agreements to repurchase 38 42 100 111
Federal Home Loan Bank (FHLB) advances   184   254   552   694
Total interest expense   1,182   1,203   3,625   3,635
Net interest income 24,760 22,081 72,179 65,496
Provision for loan losses   1,250   -   2,500   -
Net interest income after provision for loan losses   23,510   22,081   69,679   65,496
Non-interest income:
Wealth management and trust services 4,800 4,373 14,219 13,576
Service charges on deposit accounts 2,544 2,342 6,952 6,621
Bankcard transaction 1,455 1,223 4,198 3,591
Mortgage banking 1,072 772 2,896 2,513
Securities brokerage 558 585 1,539 1,545
Bank owned life insurance 216 222 657 670
Other non-interest income   713   468   1,757   1,361
Total non-interest income   11,358   9,985   32,218   29,877
Non-interest expense:
Salaries and employee benefits 12,048 11,333 36,214 33,816
Net occupancy 1,646 1,518 4,716 4,437
Data processing 1,747 1,572 5,172 4,782
Furniture and equipment 277 282 853 789
FDIC insurance 356 318 1,035 932
Amortization of investment in tax credit partnerships 1,015 158 3,046 475
Other non-interest expenses   3,429   3,249   9,215   9,845
Total non-interest expense   20,518   18,430   60,251   55,076
Net income before income tax expense 14,350 13,636 41,646 40,297
Income tax expense   3,883   4,352   11,235   12,756
Net income $ 10,467 $ 9,284 $ 30,411 $ 27,541
 
Weighted average shares - basic (2) 22,385 22,131 22,325 22,056
Weighted average shares - diluted 22,803 22,479 22,711 22,410
 
Net income per share, basic $ 0.47 $ 0.42 $ 1.36 $ 1.25
Net income per share, diluted 0.46 0.41 1.34 1.23
Cash dividend declared per share 0.18 0.16 0.53 0.47
 
Balance Sheet Data (at period end)
Total loans $ 2,222,706 $ 1,954,425
Allowance for loan losses 24,369 21,614
Total assets 2,938,665 2,624,607
Non-interest bearing deposits 680,078 595,039
Interest bearing deposits 1,710,519 1,546,539
Federal Home Loan Bank advances 51,366 43,699
Stockholders' equity 311,570 280,948
Total shares outstanding 22,563 22,303
Book value per share 13.81 12.60
Market value per share 32.96 24.23
 

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Third Quarter 2016 Earnings Release
 
Three Months Ended Nine Months Ended
September 30, September 30,
2016 2015 2016 2015
Average Balance Sheet Data
Average federal funds sold $ 72,673 $ 86,008 $ 100,653 $ 76,508
Average mortgage loans held for sale 5,070 5,045 4,918 5,464
Average securities available for sale 466,462 402,487 474,925 409,010
Average FHLB stock and other securities 6,347 6,347 6,347 6,347
Average loans 2,188,089 1,923,762 2,124,921 1,896,592
Average earning assets 2,722,324 2,416,364 2,700,587 2,386,168
Average assets 2,883,146 2,560,680 2,853,390 2,528,498
Average interest bearing deposits 1,738,315 1,557,177 1,751,000 1,570,424
Average total deposits 2,395,003 2,129,583 2,388,813 2,112,343
Average securities sold under agreement
to repurchase 68,835 71,144 60,438 64,541
Average federal funds purchased and
other short term borrowings 23,471 16,156 25,021 15,484
Average Federal Home Loan Bank advances 44,194 42,732 43,533 40,196
Average interest bearing liabilities 1,874,815 1,687,209 1,879,991 1,690,645
Average stockholders' equity 309,045 276,563 300,743 270,955
 
Performance Ratios
Annualized return on average assets 1.44 % 1.44 % 1.42 % 1.46 %
Annualized return on average equity 13.47 % 13.32 % 13.51 % 13.59 %
Net interest margin, fully tax equivalent 3.65 % 3.66 % 3.60 % 3.71 %
Non-interest income to total revenue, fully
tax equivalent 31.27 % 30.92 % 30.67 % 31.10 %
Efficiency ratio 56.49 % 57.06 % 57.36 % 57.33 %
 
Capital Ratios
Average stockholders' equity to average assets 10.72 % 10.80 % 10.54 % 10.72 %
Common equity tier 1 capital 12.07 % 12.68 %
Tier 1 risk-based capital 12.07 % 12.68 %
Total risk-based capital 13.05 % 13.68 %
Leverage 10.63 % 10.82 %
 
Loans by Type
Commercial and industrial $ 708,508 $ 610,877
Construction and development 191,987 128,820
Real estate mortgage - commercial investment 510,128 446,116
Real estate mortgage - owner occupied commercial 412,733 402,683
Real estate mortgage - 1-4 family residential 245,229 222,643
Home equity - first lien 54,837 49,937
Home equity - junior lien 65,605 62,223
Consumer   33,679     31,126  
Total loans $ 2,222,706   $ 1,954,425  
 
Asset Quality Data
Allowance for loan losses to total loans 1.10 % 1.11 %
Allowance for loan losses to average loans 1.11 % 1.12 % 1.15 % 1.14 %
Allowance for loan losses to non-performing loans 305.84 % 193.03 %
Nonaccrual loans $ 6,889 $ 9,574
Troubled debt restructuring 999 1,079
Loans - 90 days past due & still accruing 80 544
Total non-performing loans 7,968 11,197
OREO and repossessed assets 5,042 4,607
Total non-performing assets 13,010 15,804
Non-performing loans to total loans 0.36 % 0.57 %
Non-performing assets to total assets 0.44 % 0.60 %
Net charge-offs to average loans (3) 0.00 % 0.09 % 0.03 % 0.17 %
Net charge-offs $ 22 $ 1,694 $ 572 $ 3,306
 

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Third Quarter 2016 Earnings Release
 
Five Quarter Comparison
9/30/16 6/30/16 3/31/16 12/31/15 9/30/15
Income Statement Data
Net interest income, fully tax equivalent (1) $ 24,963   $ 24,165   $ 23,687   $ 23,050   $ 22,312  
Net interest income $ 24,760 $ 23,950 $ 23,469 $ 22,822 $ 22,081
Provision for loan losses   1,250     750     500     750     -  
Net interest income after provision for loan losses   23,510     23,200     22,969     22,072     22,081  
Wealth management and trust services 4,800 4,807 4,612 4,450 4,373
Service charges on deposit accounts 2,544 2,262 2,146 2,285 2,342
Bankcard transaction 1,455 1,433 1,310 1,285 1,223
Mortgage banking 1,072 1,030 794 975 772
Securities brokerage 558 538 443 449 585
Bank owned life insurance 216 220 221 219 222
Other non-interest income   713     488     556     410     468  
Total non-interest income   11,358     10,778     10,082     10,073     9,985  
Salaries and employee benefits 12,048 11,971 12,195 10,893 11,333
Net occupancy 1,646 1,546 1,524 1,475 1,518
Data processing 1,747 1,881 1,544 1,566 1,572
Furniture and equipment 277 291 285 285 282
FDIC Insurance 356 351 328 326 318
Amortization of investment in tax credit partnerships 1,015 1,016 1,015 159 158
Other non-interest expenses   3,429     3,137     2,649     3,618     3,249  
Total non-interest expense   20,518     20,193     19,540     18,322     18,430  
Net income before income tax expense 14,350 13,785 13,511 13,823 13,636
Income tax expense   3,883     3,676     3,676     4,177     4,352  
Net income $ 10,467   $ 10,109   $ 9,835   $ 9,646   $ 9,284  
 
Weighted average shares - basic 22,385 22,336 22,254 22,183 22,131
Weighted average shares - diluted 22,803 22,704 22,592 22,567 22,479
 
Net income per share, basic $ 0.47 $ 0.45 $ 0.44 $ 0.43 $ 0.42
Net income per share, diluted 0.46 0.45 0.44 0.43 0.41
Cash dividend declared per share 0.18 0.18 0.17 0.17 0.16
 
Balance Sheet Data (at period end)
Cash and due from banks $ 41,533 $ 40,618 $ 35,022 $ 35,895 $ 37,335
Federal funds sold 16,360 9,616 13,016 67,938 17,859
Mortgage loans held for sale 5,959 6,405 3,984 6,800 5,539
Securities available for sale 541,681 567,307 569,012 565,876 504,366
FHLB stock and other securities 6,347 6,347 6,347 6,347 6,347
Total loans 2,222,706 2,175,551 2,094,488 2,033,007 1,954,425
Allowance for loan losses 24,369 23,141 22,451 22,441 21,614
Total assets 2,938,665 2,909,519 2,824,107 2,816,801 2,624,607
Non-interest bearing deposits 680,078 637,812 606,375 583,768 595,039
Interest bearing deposits 1,710,519 1,712,136 1,759,725 1,787,934 1,546,539
Securities sold under agreements to repurchase 67,315 57,437 54,781 64,526 67,557
Federal funds purchased 76,387 114,154 30,083 22,477 62,101
Federal Home Loan Bank advances 51,366 43,002 43,236 43,468 43,699
Stockholders' equity 311,570 305,051 296,323 286,519 280,948
Total shares outstanding 22,563 22,510 22,478 22,379 22,303
Book value per share 13.81 13.55 13.18 12.80 12.60
Market value per share 32.96 28.23 25.69 25.19 24.23
 
Capital Ratios
Average stockholders' equity to average assets 10.72 % 10.51 % 10.38 % 10.52 % 10.80 %
Common equity tier 1 capital 12.07 % 12.06 % 12.23 % 12.32 % 12.68 %
Tier 1 risk-based capital 12.07 % 12.06 % 12.23 % 12.32 % 12.68 %
Total risk-based capital 13.05 % 13.01 % 13.19 % 13.31 % 13.68 %
Leverage 10.63 % 10.46 % 10.35 % 10.53 % 10.82 %
 

       
Stock Yards Bancorp, Inc. Financial Information (unaudited)
Third Quarter 2016 Earnings Release
 
Five Quarter Comparison
9/30/16 6/30/16 3/31/16 12/31/15 9/30/15
Average Balance Sheet Data
Average federal funds sold $ 72,673 $ 85,914 $ 143,679 $ 99,903 $ 86,008
Average mortgage loans held for sale 5,070 5,432 4,249 4,991 5,045
Average investment securities 466,462 475,275 483,130 471,349 402,487
Average loans 2,188,089 2,142,530 2,043,450 1,986,289 1,923,762
Average earning assets 2,722,324 2,705,358 2,673,842 2,561,650 2,416,364
Average assets 2,883,146 2,858,624 2,818,072 2,708,630 2,560,680
Average interest bearing deposits 1,738,315 1,736,478 1,778,347 1,664,979 1,557,177
Average total deposits 2,395,003 2,400,547 2,370,819 2,271,431 2,129,583
Average securities sold under agreement
to repurchase 68,835 53,514 58,871 66,918 71,144
Average federal funds purchased and
other short term borrowings 23,471 28,152 23,456 14,147 16,156
Average Federal Home Loan Bank advances 44,194 43,081 43,316 43,546 42,732
Average interest bearing liabilities 1,874,815 1,861,225 1,903,990 1,789,590 1,687,209
Average stockholders' equity 309,045 300,553 292,540 284,824 276,563
 
Performance Ratios
Annualized return on average assets 1.44 % 1.42 % 1.40 % 1.41 % 1.44 %
Annualized return on average equity 13.47 % 13.53 % 13.52 % 13.44 % 13.32 %
Net interest margin, fully tax equivalent 3.65 % 3.59 % 3.56 % 3.57 % 3.66 %
Non-interest income to total revenue, fully
tax equivalent 31.27 % 30.84 % 29.85 % 30.41 % 30.92 %
Efficiency ratio 56.49 % 57.79 % 57.86 % 55.32 % 57.06 %
 
Loans by Type
Commercial and industrial $ 708,508 $ 721,956 $ 676,782 $ 644,398 $ 610,877
Construction and development 191,987 156,371 160,667 155,667 128,820
Real estate mortgage - commercial investment 510,128 488,187 452,173 436,989 446,116
Real estate mortgage - owner occupied commercial 412,733 418,113 417,285 420,666 402,683
Real estate mortgage - 1-4 family residential 245,229 240,770 234,199 226,575 222,643
Home equity - 1st lien 54,837 52,360 52,042 50,115 49,937
Home equity - junior lien 65,605 65,999 63,336 63,066 62,223
Consumer   33,679     31,795     38,004     35,531     31,126  
Total loans $ 2,222,706   $ 2,175,551   $ 2,094,488   $ 2,033,007   $ 1,954,425  
 
Asset Quality Data
Allowance for loan losses to total loans 1.10 % 1.06 % 1.07 % 1.10 % 1.11 %
Allowance for loan losses to average loans 1.11 % 1.08 % 1.10 % 1.13 % 1.12 %
Allowance for loan losses to non-performing loans 305.84 % 361.58 % 251.75 % 251.33 % 193.03 %
Nonaccrual loans $ 6,889 $ 4,970 $ 7,878 $ 7,693 $ 9,574
Troubled debt restructuring 999 1,020 1,040 1,060 1,079
Loans - 90 days past due & still accruing 80 410 - 176 544
Total non-performing loans 7,968 6,400 8,918 8,929 11,197
OREO and repossessed assets 5,042 5,093 5,049 4,541 4,607
Total non-performing assets 13,010 11,493 13,967 13,470 15,804
Non-performing loans to total loans 0.36 % 0.29 % 0.43 % 0.44 % 0.57 %
Non-performing assets to total assets 0.44 % 0.40 % 0.49 % 0.48 % 0.60 %
Net charge-offs to average loans 0.00 % 0.00 % 0.02 % 0.00 % 0.09 %
Net charge-offs (recoveries) $ 22 $ 60 $ 490 $ (77 ) $ 1,694
 
Other Information
Total assets under management (in millions) $ 2,413 $ 2,342 $ 2,255 $ 2,238 $ 2,189
Full-time equivalent employees 558 549 550 555 546
 
(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

Contacts

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