-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PXKCFnXx1qCki9PjeygrCrdmeWLV/poDXNV02L3TI0Xym1HUCZgsmRyw4e4CuR6/ GnnwutMJKQPIOYuTQTMOLg== 0001157523-07-009892.txt : 20071017 0001157523-07-009892.hdr.sgml : 20071017 20071017092815 ACCESSION NUMBER: 0001157523-07-009892 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20071017 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071017 DATE AS OF CHANGE: 20071017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: S Y BANCORP INC CENTRAL INDEX KEY: 0000835324 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 611137529 STATE OF INCORPORATION: KY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13661 FILM NUMBER: 071175458 BUSINESS ADDRESS: STREET 1: 1040 E MAIN ST CITY: LOUISVILLE STATE: KY ZIP: 40206 BUSINESS PHONE: 5025822571 MAIL ADDRESS: STREET 1: 1040 EAST MAIN STREET CITY: LOUISVILLE STATE: KY ZIP: 40206 8-K 1 a5520008.txt S.Y. BANCORP, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): October 17, 2007 S.Y. BANCORP, INC. (Exact name of registrant as specified in its charter) Kentucky 1-13661 61-1137529 -------- -------- ---------- (State or other jurisdiction of (Commission (I.R.S. Employer incorporation or organization) File Number) Identification No.) 1040 East Main Street, Louisville, Kentucky, 40206 -------------------------------------------------- (Address of principal executive offices) (502) 582-2571 -------------- (Registrant's telephone number, including area code) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On October 17, 2007, S.Y. Bancorp, Inc. issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated by reference, announcing earnings for the third quarter and nine months ended September 30, 2007. The information in this Form 8-K and the attached Exhibits shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS. D. Exhibits 99.1 Press Release dated October 17, 2007 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Date: October 17, 2007 S.Y. BANCORP, INC. By: /s/ Nancy B. Davis -------------------------------- Nancy B. Davis, Executive Vice President, Treasurer and Chief Financial Officer EX-99.1 2 a5520008ex99-1.txt EXHIBIT 99.1 Exhibit 99.1 S.Y. Bancorp Announces Higher Third Quarter Earnings as Net Income Per Diluted Share Increases 11% to $0.41 LOUISVILLE, Ky.--(BUSINESS WIRE)--Oct. 17, 2007--S.Y. Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville metropolitan area, Indianapolis and Cincinnati, today reported results for the third quarter and nine months ended September 30, 2007. Highlights of the third quarter included higher earnings, largely driven by ongoing growth in non-interest income, particularly with respect to the Company's investment management and trust services, and the continuation of strong credit quality characteristics in the loan portfolio, which have helped counter increasing competitive pressures affecting loan growth and interest margins. A summary of results for the third quarter and year-to-date period follows: Quarter ended September 30, 2007 2006 Change - ------------------------------------- ----------- ----------- ------ Net income $ 5,887,000 $ 5,421,000 9% Net income per share, diluted $ 0.41 $ 0.37 11% Return on average equity 16.50% 16.29% Return on average assets 1.66% 1.60% Nine months ended September 30, 2007 2006 Change - ------------------------------------- ----------- ----------- ------ Net income $ 17,888,000 $ 16,609,000 8% Net income per share, diluted $ 1.23 $ 1.13 9% Return on average equity 17.00% 17.03% Return on average assets 1.70% 1.65% Commenting on the announcement, David Heintzman, Chairman and Chief Executive Officer, said, "Against the backdrop of an intensely competitive operating environment, which has affected our loan growth and pressured our net interest margin, the Company continued to produce solid earnings performance and high returns for our stockholders. Our success despite difficult industry conditions demonstrates the importance we have placed on expanding our revenue base, with one key factor in those efforts being the growth of our investment management and trust operations. These services continue to complement and provide synergy for our banking activities. This department has developed a sound and growing reputation supported by solid, consistent investment performance for our clients. We were gratified to see revenue growth of 12% in the third quarter from our investment management and trust operations, clearly the largest source of non-interest income, as total assets under management increased 13.3% to $1.7 billion over the past year primarily due to market appreciation. "It is noteworthy that the Company has produced consistent earnings even as we have ramped up our expansion activities, adding to our presence in Indianapolis and entering the Cincinnati market," Heintzman continued. "The Indianapolis market has been instrumental to our overall loan growth over the past year, and we expect that the upcoming opening of our second office there will add further momentum to our efforts to reach new customers. In Cincinnati, we recently selected a prominent downtown location for our flagship office and are well underway in building a team of experienced lenders to lead our expansion there." Concluding, Heintzman added, "Looking ahead to the final quarter of the year, we remain concerned about general market forces, including a highly competitive marketplace, the effect of declining interest rates, and overall conditions in the economy. Competition will continue to restrain loan growth and will place additional pressure on net interest margin. Taking a longer-term view, however, we remain excited about the prospects of expanding our reach to new markets and the growth opportunities created by that expansion." Net interest income, the Company's largest source of revenue, declined $66,000, or less than 1%, in the third quarter of 2007 compared with the year-earlier period. Net interest income increased $504,000 or 1% in the first nine months of 2007 compared with the same period last year. The third quarter decline in net interest income reflected modest growth in the Company's loan portfolio, which was more than offset by net interest margin compression. Net interest margin for the third quarter, at 4.18%, declined eight basis points from 4.26% in the second quarter of 2007 and was 21 basis points lower than the 4.39% reported in the year-earlier period. This ongoing margin pressure, which began in the third quarter last year, reflects the persistence of a relatively flat yield curve coupled with the impact of higher interest expense associated with local competition for deposits. The Company expects pressure on net interest margins to continue in the near term, and further reductions in short-term rates by the Federal Reserve could add more pressure. Non-performing loans for the third quarter declined 11% on a linked-quarter basis to $4,244,000 from $4,769,000 in the second quarter of 2007, and were 37% below non-performing loans of $6,765,000 in the third quarter of 2006. The ratio of non-performing loans to total loans was 0.37% in the third quarter of 2007, down from 0.41% in the second quarter of 2007 and 0.61% in the third quarter last year. Net charge-offs totaled 0.03% of average loans in the third quarter of 2007 compared with 0.04% in same period last year. However, in view of near-term concerns about the economy in general, the Company increased its provision for loan losses to $850,000 in the third quarter from $450,000 in the third quarter of 2006. For the first nine months of 2007, the loan loss provision totaled $2,090,000 versus $1,400,000 in the year-earlier period. The Company's allowance for loan losses was 1.08% of total loans at September 30, 2007, compared with 1.04% of total loans at June 30, 2007, and 1.11% at September 30, 2006. Management noted that the Company has no sub-prime loans in its portfolio. Non-interest income increased $557,000 or 8% in the third quarter compared with the same quarter last year, primarily due to higher investment management and trust income, which rose $345,000 or 12% during the quarter. This, along with higher bankcard transaction revenue, service charges on deposit accounts, brokerage fees and commissions, and other non-interest income offset lower gains on sales of mortgage loans for the quarter. Non-interest income increased $1,295,000 or 6% in the first nine months of 2007 compared with the year-earlier period, again driven primarily by higher investment management and trust income. Non-interest expense declined $386,000 or 3% in the third quarter of 2007 versus the same period last year. The decline for the third quarter primarily reflected the non-recurring impact in the year-earlier quarter of the write-off of $879,000 of unamortized issuance costs associated with the Company's trust preferred securities that were redeemed on July 1, 2006. Also, as a result of revised standard costs applied to the loan production process and an increase in loan volume, the Company's deferred salaries associated with loan originations in the third quarter of 2007 exceeded those amounts in the same period last year. These factors helped offset a rise in salaries and employee benefits expense related in part to the addition of staff associated with the development of a second office in the Indianapolis market and the Company's recent entry into the Cincinnati market. Non-interest expense declined $584,000 or 2% in the first nine months of 2007 compared with the year-earlier period, again primarily due to the write-off of unamortized issuance costs on the Company's trust preferred securities in the year-earlier period and the impact of deferred salary expense in 2007. These factors, along with a first quarter 2007 reduction in state bank taxes, resulting from tax credits purchased in the quarter, helped offset higher salaries and employee benefits, data processing and net occupancy expenses for the first nine months of 2007. The Company's third quarter efficiency ratio was to 53.95% compared with 53.22% in the second quarter of 2007 and 57.07% in the third quarter last year. S.Y. Bancorp's total assets for the third quarter increased 4% to $1.410 billion from $1.354 billion at September 30, 2006. The Company's loan portfolio also increased 4% to $1.157 billion from $1.117 billion for the year-earlier period, primarily due to steady loan growth throughout the year. Deposits of $1.067 billion at September 30, 2007, were level with the year-earlier period. In July, the Company's Board of Directors expanded the Company's stock repurchase plan by 550,000 shares, or approximately 4% of the Company's total common shares outstanding, increasing the remaining authorization at that time to 567,500 shares. In August, as a part of this stock repurchase program, the Company established a Rule 10b5-1 stock trading plan. During the third quarter, the Company repurchased approximately 316,000 shares, or about 2% of its shares outstanding. As of September 30, 2007, the Company had remaining authorization to repurchase approximately 251,500 shares. In August, the Board of Directors declared a regular quarterly cash dividend of $0.16 per share, which was distributed on October 1, 2007, to stockholders of record as of September 14, 2007. Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.410 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. 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. S.Y. Bancorp, Inc. Summary Unaudited Financial Information (in thousands except per share amounts) Third Quarter Nine Months Ended Ended September 30, September 30, --------------- --------------- 2007 2006 2007 2006 ------ ------ ------ ------ Interest income $23,062 $22,029 $68,483 $63,600 Interest expense 9,521 8,422 27,949 23,570 ------ ------ ------ ------ Net interest income 13,541 13,607 40,534 40,030 Provision for loan losses 850 450 2,090 1,400 ------ ------ ------ ------ Net interest income after provision for loan losses 12,691 13,157 38,444 38,630 Non-interest income 7,566 7,009 22,446 21,151 Non-interest expense 11,527 11,913 34,385 34,969 ------ ------ ------ ------ Net income before income taxes 8,730 8,253 26,505 24,812 Provision for income taxes 2,843 2,832 8,617 8,203 ------ ------ ------ ------ Net income $ 5,887 $ 5,421 $17,888 $16,609 ====== ====== ====== ====== Net income per share Basic $ 0.42 $ 0.38 $ 1.25 $ 1.15 Diluted $ 0.41 $ 0.37 $ 1.23 $ 1.13 Weighted average shares outstanding Basic 14,185 14,426 14,299 14,471 Diluted 14,400 14,718 14,525 14,736 Sept. 30, Dec. 31, Sept. 30, 2007 2006 2006 --------- --------- --------- Total assets $1,410,453 $1,426,321 $1,353,893 Total loans 1,156,899 1,148,954 1,116,799 Non-interest bearing deposits 167,614 179,657 168,190 Interest-bearing deposits 899,815 923,585 898,774 --------- --------- --------- Total deposits 1,067,429 1,103,242 1,066,964 Stockholders' equity 138,623 137,444 134,576 Book value per share 9.90 9.54 9.32 Unaudited supplemental financial information for the third quarter and nine months ended September 30, 2007 and 2006, appears on the following pages. S. Y. Bancorp, Inc. Financial Information Third Quarter 2007 Earnings Release (all figures other than per share amounts and number of employees are expressed in thousands unless otherwise noted) Third Quarter Ended Nine Months Ended September 30, September 30, ------------------- --------------------- 2007 2006 2007 2006 ----------- ------- ---------- ---------- Income Statement Data Net interest income, fully tax equivalent (1) $ 13,802 $13,865 $ 41,355 $ 40,777 =========== ======= ========== ========== Net interest income $ 13,541 $13,607 $ 40,534 $ 40,030 Provision for loan losses 850 450 2,090 1,400 ----------- ------- ---------- ---------- Net interest income after provision for loan losses 12,691 13,157 38,444 38,630 ----------- ------- ---------- ---------- Gain on the sale of securities - - - - Investment management and trust income 3,227 2,882 9,760 8,600 Service charges on deposit accounts 2,260 2,188 6,482 6,596 Bankcard transaction revenue 596 509 1,728 1,495 Gains on sales of mortgage loans held for sale 227 326 874 933 Brokerage commissions and fees 498 460 1,443 1,559 Other non-interest income 758 644 2,159 1,968 ----------- ------- ---------- ---------- Total non-interest income 7,566 7,009 22,446 21,151 ----------- ------- ---------- ---------- Salaries and employee benefits expense 6,865 6,356 20,104 19,800 Net occupancy expense 917 899 2,737 2,608 Data processing expense 979 929 3,045 2,819 Furniture and equipment expense 291 285 873 888 Amortization and writeoff of issuance costs of trust preferred - 879 - 897 State bank taxes 326 327 815 971 Other non-interest expenses 2,149 2,238 6,811 6,986 ----------- ------- ---------- ---------- Total non-interest expense 11,527 11,913 34,385 34,969 ----------- ------- ---------- ---------- Net income before income tax expense 8,730 8,253 26,505 24,812 Income tax expense 2,843 2,832 8,617 8,203 ----------- ------- ---------- ---------- Net income $ 5,887 $ 5,421 $ 17,888 $ 16,609 =========== ======= ========== ========== Weighted average shares - basic 14,185 14,426 14,299 14,471 Weighted average shares - diluted 14,400 14,718 14,525 14,736 Basic earnings per share $ 0.42 $ 0.38 $ 1.25 $ 1.15 Diluted earnings per share 0.41 0.37 1.23 1.13 Cash dividend declared per share 0.16 0.15 0.47 0.42 Balance Sheet Data (at period end) Total loans $1,156,899 $1,116,799 Allowance for loan losses 12,550 12,442 Total assets 1,410,453 1,353,893 Non-interest bearing deposits 167,614 168,190 Interest bearing deposits 899,815 898,774 Federal home loan bank advances 70,000 30,000 Subordinated debentures 90 120 Stockholders' equity 138,623 134,576 Total shares outstanding 14,005 14,442 Book value per share 9.90 9.32 Market value per share 27.04 29.67 S. Y. Bancorp, Inc. Financial Information Third Quarter 2007 Earnings Release Third Quarter Ended Nine Months Ended September 30, September 30, ----------------------- ----------------------- 2007 2006 2007 2006 ----------- ----------- ----------- ----------- Average Balance Sheet Data Average loans $1,155,211 $1,097,176 $1,152,709 $1,082,517 Average assets 1,409,653 1,347,654 1,405,845 1,344,175 Average earning assets 1,311,152 1,251,388 1,309,989 1,249,697 Average deposits 1,063,718 1,060,109 1,078,815 1,053,535 Average long-term debt 70,090 30,568 62,220 46,066 Average interest bearing liabilities 1,057,138 1,013,960 1,056,505 1,011,307 Average stockholders' equity 141,583 132,066 140,700 130,357 Performance Ratios Annualized return on average assets 1.66% 1.60% 1.70% 1.65% Annualized return on average equity 16.50% 16.29% 17.00% 17.03% Net interest margin, fully tax equivalent 4.18% 4.39% 4.22% 4.35% Non-interest income to total revenue, fully tax equivalent 35.41% 33.58% 35.18% 34.15% Efficiency ratio 53.95% 57.07% 53.89% 56.47% Capital Ratios Average stockholders' equity to average assets 10.04% 9.80% 10.01% 9.70% Tier 1 risk-based capital 10.47% 10.81% Total risk-based capital 11.42% 11.82% Leverage 9.81% 10.00% Loans by Type Commercial and industrial $ 304,930 $ 248,230 Construction and development 123,505 123,404 Real estate mortgage - commercial investment 236,847 235,510 Real estate mortgage - owner occupied commercial 186,564 176,644 Real estate mortgage - 1-4 family residential 144,221 163,479 Home equity 136,064 132,053 Consumer 24,768 37,479 Asset Quality Data Allowance for loan losses to total loans 1.08% 1.11% Allowance for loan losses to average loans 1.09% 1.15% Allowance for loan losses to non- performing loans 295.71% 183.92% Nonaccrual loans $ 2,985 $ 5,998 Restructured loans - - Loans - 90 days past due & still accruing 1,259 767 Total non-performing loans 4,244 6,765 OREO and repossessed assets 3,436 2,895 Total non-performing assets 7,680 9,660 Non-performing loans to total loans 0.37% 0.61% Non-performing assets to total assets 0.54% 0.71% Net charge-offs to average loans (2) 0.15% 0.09% Net charge-offs $ 365 $ 400 $ 1,743 $ 993 Other Information Total assets under management (in millions) $ 1,707 $ 1,506 Full-time equivalent employees 443 433 S. Y. Bancorp, Inc. Financial Information Third Quarter 2007 Earnings Release Five Quarter Comparison ------------------------------------------------------ 9/30/07 6/30/07 3/31/07 12/31/06 9/30/06 ---------- ---------- ---------- ---------- ---------- Income Statement Data Net interest income, fully tax equivalent (1) $ 13,802 $ 13,856 $ 13,697 $ 14,135 $ 13,865 ========== ========== ========== ========== ========== Net interest income $ 13,541 $ 13,579 $ 13,414 $ 13,856 $ 13,607 Provision for loan losses 850 460 780 700 450 ---------- ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 12,691 13,119 12,634 13,156 13,157 ---------- ---------- ---------- ---------- ---------- Gain on the sale of securities - - - - - Investment management and trust income 3,227 3,336 3,197 3,032 2,882 Service charges on deposit accounts 2,260 2,204 2,018 2,195 2,188 Bankcard transaction revenue 596 590 542 533 509 Gains on sales of mortgage loans held for sale 227 391 256 337 326 Brokerage commissions and fees 498 452 493 414 460 Other non- interest income 758 751 650 1,020 644 ---------- ---------- ---------- ---------- ---------- Total non- interest income 7,566 7,724 7,156 7,531 7,009 ---------- ---------- ---------- ---------- ---------- Salaries and employee benefits expense 6,865 6,632 6,607 6,606 6,356 Net occupancy expense 917 930 890 872 899 Data processing expense 979 1,051 1,015 1,015 929 Furniture and equipment expense 291 290 292 264 285 Amortization and write-off of issuance costs of trust preferred securities - - - - 879 State bank taxes 326 311 178 327 327 Other non- interest expenses 2,149 2,270 2,392 2,557 2,238 ---------- ---------- ---------- ---------- ---------- Total non- interest expense 11,527 11,484 11,374 11,641 11,913 ---------- ---------- ---------- ---------- ---------- Net income before income tax expense 8,730 9,359 8,416 9,046 8,253 Income tax expense 2,843 3,062 2,712 2,759 2,832 ---------- ---------- ---------- ---------- ---------- Net income $ 5,887 $ 6,297 $ 5,704 $ 6,287 $ 5,421 ========== ========== ========== ========== ========== Weighted average shares - basic 14,185 14,325 14,389 14,436 14,426 Weighted average shares - diluted 14,400 14,536 14,642 14,728 14,718 Basic earnings per share $ 0.42 $ 0.44 $ 0.40 $ 0.44 $ 0.38 Diluted earnings per share 0.41 0.43 0.39 0.43 0.37 Cash dividend declared per share 0.16 0.16 0.15 0.15 0.15 Balance Sheet Data (at period end) Total loans $1,156,899 $1,162,906 $1,149,940 $1,148,954 $1,116,799 Allowance for loan losses 12,550 12,065 12,183 12,203 12,442 Total assets 1,410,453 1,425,299 1,414,364 1,426,321 1,353,893 Non-interest bearing deposits 167,614 184,000 174,383 179,657 168,190 Interest bearing deposits 899,815 901,316 935,395 923,585 898,774 Federal home loan bank advances 70,000 70,000 50,000 60,000 30,000 Subordinated debentures 90 90 90 120 120 Stockholders' equity 138,623 141,888 140,176 137,444 134,576 Total shares outstanding 14,005 14,298 14,373 14,400 14,442 Book value per share 9.90 9.92 9.75 9.54 9.32 Market value per share 27.04 23.76 24.86 28.00 29.67 S. Y. Bancorp, Inc. Financial Information Third Quarter 2007 Earnings Release Five Quarter Comparison 9/30/07 6/30/07 3/31/07 12/31/06 9/30/06 ---------- ---------- ---------- ---------- ---------- Average Balance Sheet Data Average loans $1,155,211 $1,160,064 $1,142,713 $1,127,456 $1,097,176 Average assets 1,409,653 1,401,020 1,406,832 1,381,770 1,347,654 Average earning assets 1,311,152 1,304,508 1,314,341 1,284,983 1,251,388 Average deposits 1,063,718 1,075,459 1,097,640 1,085,060 1,060,109 Average long- term debt 70,090 60,420 55,993 41,356 30,568 Average interest bearing liabilities 1,057,138 1,048,552 1,063,900 1,040,321 1,013,960 Average stockholders' equity 141,583 141,133 139,361 136,760 132,066 Performance Ratios Annualized return on average assets 1.66% 1.80% 1.64% 1.81% 1.60% Annualized return on average equity 16.50% 17.90% 16.60% 18.24% 16.29% Net interest margin, fully tax equivalent 4.18% 4.26% 4.23% 4.36% 4.39% Non-interest income to total revenue, fully tax equivalent 35.41% 35.79% 34.32% 34.76% 33.58% Efficiency ratio 53.95% 53.22% 54.54% 53.73% 57.07% Capital Ratios Average stockholders' equity to average assets 10.04% 10.07% 9.91% 9.90% 9.80% Tier 1 risk- based capital 10.47% 10.70% 10.89% 10.81% 10.81% Total risk- based capital 11.42% 11.62% 11.84% 11.77% 11.82% Leverage 9.81% 10.17% 9.97% 10.18% 10.00% Loans by Type Commercial and industrial $ 304,930 $ 310,697 $ 304,720 $ 286,987 $ 248,230 Construction and development 123,505 127,793 122,182 118,909 123,404 Real estate mortgage - commercial investment 236,847 227,530 237,759 242,742 235,510 Real estate mortgage - owner occupied commercial 186,564 183,199 173,915 178,439 176,644 Real estate mortgage - 1-4 family residential 144,221 145,165 144,708 152,349 163,479 Home equity 136,064 143,015 136,115 136,893 132,053 Consumer 24,768 25,507 30,541 32,635 37,479 Asset Quality Data Allowance for loan losses to total loans 1.08% 1.04% 1.06% 1.06% 1.11% Allowance for loan losses to average loans 1.09% 1.05% 1.07% 1.12% 1.13% Allowance for loan losses to non-performing loans 295.71% 252.99% 237.16% 180.70% 183.92% Nonaccrual loans $ 2,985 $ 4,055 $ 4,697 $ 5,900 $ 5,998 Restructured loans - - - - - Loans - 90 days past due & still accruing 1,259 714 440 853 767 Total non- performing loans 4,244 4,769 5,137 6,753 6,765 OREO and repossessed assets 3,436 2,780 2,666 2,466 2,895 Total non- performing assets 7,680 7,549 7,803 9,219 9,660 Non-performing loans to total loans 0.37% 0.41% 0.45% 0.59% 0.61% Non-performing assets to total assets 0.54% 0.53% 0.55% 0.65% 0.71% Net charge-offs to average loans (2) 0.05% 0.05% 0.07% 0.08% 0.40% Net charge-offs $ 365 $ 578 $ 800 $ 939 $ 400 Other Information Total assets under management (in millions) $ 1,707 $ 1,669 $ 1,603 $ 1,582 $ 1,506 Full-time equivalent employees 443 445 444 437 433 (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) - Amounts not annualized Certain prior-period amounts have been reclassified to conform with current presentation. CONTACT: S.Y. Bancorp, Inc. Nancy B. Davis, 502-625-9176 Executive Vice President, Treasurer and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----