EX-99.1 2 a50539673ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

S.Y. Bancorp Reports Record Earnings for 2012 as Net Income Increases 9% to $25.8 Million or $1.85 Per Diluted Share

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 23, 2013--S.Y. 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 2012 together with higher net income for the fourth quarter ended December 31, 2012. These achievements reflected continued strong trends in the Company's banking operations, especially with increased gains on sales of mortgage loans, which helped blunt the impact of accelerated loan repayments and margin compression related to the unprecedented low interest rate environment. The following is a summary of the Company's reported results:

     

Quarter Ended December 31,

 

2012

 

2011

Change

Net income $ 6,514,000 $ 6,342,000 3%
Net income per share, diluted $ 0.47 0.46 2%
Return on average equity 12.67% 13.46%
Return on average assets 1.22% 1.25%
 

Year Ended December 31,

 

2012

 

2011

Change

Net income $ 25,801,000 $ 23,604,000 9%
Net income per share, diluted $ 1.85 $ 1.71 8%
Return on average equity 13.06% 13.14%
Return on average assets 1.25% 1.20%
 

Fourth quarter results included:

  • A $740 thousand prepayment penalty received on $15 million tax-free loan, resulting in tax equivalent income of $1.1 million. The repayment of this loan will reduce 2013 net interest margin by approximately seven basis points and reduce 2013 net income by approximately $1.4 million.
  • A $1.1 million prepayment penalty paid by the Company for the early repayment of approximately $30 million in FHLB advances, which will save $2.1 million in cumulative future interest expense.

"We are pleased to report another record year of earnings and a solid financial performance for 2012," said David P. Heintzman, Chairman and CEO. "In spite of the uncertainties and challenges that have overshadowed our economy for many years, our record earnings continued to translate into attractive returns on assets and equity for our stockholders. These results underscore significant contributions from key profit areas like commercial banking, investment management and trust, and our mortgage origination business. With respect to the last area, our mortgage loan origination group more than doubled its revenue from the prior year as customers took advantage of historically low rates to refinance as well as purchase new homes.


"Looking at this progress from a geographic standpoint," Heintzman continued, "our continued growth in total assets, loans and deposits demonstrates the success of our strategy to capitalize on a strong community bank presence in Louisville and increasing visibility in Indianapolis and Cincinnati. Thinking about our business in terms of revenue sources, banking continues to be the most significant area, yet growth in investment management and trust, along with mortgage lending, helped increase non-interest income to 34% of total revenues from 32% in 2011."

Heintzman also pointed out that in December 2012, the Company announced an acquisition that will benefit Stock Yards Bank & Trust by expanding its Louisville footprint to an adjacent county with the highest household income in the state. "On December 19, 2012, we entered into a definitive agreement to acquire The Bancorp, Inc. ("Bancorp") in a cash-and-stock transaction valued at approximately $19.9 million," he said. "Bancorp, headquartered in La Grange, Kentucky, is the holding company for THE BANK – Oldham County, Inc., which has four branches, one each in La Grange, Louisville, Crestwood and Prospect. The combination of our two banks should create the largest locally owned community bank in the Louisville MSA in terms of deposits relative to the total deposits in the MSA."

As of September 30, 2012, THE BANK – Oldham County had approximately $137.4 million in assets, $46.8 million in loans, $114.9 million in deposits and $19.4 million in tangible common equity. The transaction, which is subject to regulatory approval, the approval of the shareholders of Bancorp and other customary conditions, is anticipated to close early in the second quarter of 2013. It is expected to be slightly accretive to earnings per share for 2013, excluding transaction costs, and more so thereafter.

Concluding, Heintzman said, "We are pleased with the Company's results for 2012 and the continuation of our record of success; however, the outlook for next year is clearly more challenging as we anticipate ongoing margin compression due to the low interest rate environment and highly competitive lending conditions. Still, we are well positioned fundamentally in our markets with a strong line-up of products and services, like our investment management and trust services, which clearly differentiates Stock Yards Bank & Trust from most other community banks, and with the Bank's impending cross-county expansion via the acquisition of Bancorp. While we remain cautious on the economy next year, we gain confidence from the Company's proven ability to deliver superior long-term performance, which has enabled our continued ranking as one of the top-performing community banks in the country."

During 2012, S.Y. Bancorp's total assets increased $95.2 million or 5%, reaching $2.15 billion at December 31, 2012, compared with $2.05 billion at December 31, 2011. The loan portfolio year over year reflected growth of almost 3%; however, net growth in loans was more than 4% exclusive of a $40 million loan that the Bank originated and participated $25 million to other banks, with Stock Yards Bank & Trust retaining certain control. This loan was repaid in 2012, which reduced loan totals by $40 million, but also eliminated other liabilities of $25 million representing the participating amount. Loan production for the year totaled more than $400 million, the highest level on record, but that was obscured by accelerated loan payments.

The Company's capital levels continued to strengthen during the fourth quarter of 2012 on a sequential-quarter basis. The Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and Total risk-based capital ratio were 10.79%, 13.17% and 14.42%, respectively, at December 31, 2012, with each exceeding the required minimum of 5%, 6% and 10%, respectively, necessary to be deemed a "well-capitalized" institution – the highest capital rating for financial institutions. The Total risk-based capital ratio declined slightly from levels at December 31, 2011, as a result of the Company's first quarter 2012 prepayment of $10 million of subordinated debentures that qualified as Tier 2 capital.


The ratio of tangible common equity to total tangible assets was 9.52% at December 31, 2012, 9.55% at September 30, 2012, and 9.11% as of December 31, 2011 (see reconciliation of GAAP and non-GAAP measures later in this release). The Company intends to maintain capital ratios at historically high levels, at least until such time as the economy demonstrates sustained improvement, and to remain well positioned to pursue expansion and other opportunities that may arise.

Net interest income – the Company's largest source of revenue – increased $294,000 or 2% in the fourth quarter of 2012 to $18.3 million from $18.0 million in the year-earlier period. This increase reflected primarily growth in the loan portfolio. The increased amount of interest earning assets also helped the Company offset the impact of ongoing margin compression. In the fourth quarter of 2012, net interest margin was 3.78% versus 3.91% in the fourth quarter of 2011 and 3.92% in the third quarter of 2012. For the year ended December 31, 2012, net interest income increased $3.2 million or 5% to $74.0 million from $70.7 million in the prior-year period. Net interest margin for year ended December 31, 2012, decreased five basis points to 3.94% from 3.99% a year ago.

Net interest margin in 2012 has reflected a higher amount of prepayment fees associated with a surge in loan refinancing activity. Adjusting for these sources of additional income, the Company's more normalized or core net interest margin has trended downward throughout 2012, declining to 3.74% for the fourth quarter from 3.85% for third quarter, 3.94% in the second quarter, and 4.00% for the first quarter (see reconciliation of GAAP and non-GAAP measures later in this release). The core net margin for the year 2012 declined 13 basis points to 3.88% from 4.01% for the year 2011. Management believes these core margins better reveal the increasing pressure of a low interest rate environment and a highly competitive loan market, and it expects margin compression to continue in 2013, with net interest margins declining up to 30 basis points from 2012.

Non-performing loans (NPLs) totaled $30.0 million or 1.90% of total loans outstanding at December 31, 2012, down from $31.2 million or 1.98% of total loans outstanding at September 30, 2012, but up from $23.3 million or 1.51% of total loans at December 31, 2011. Non-performing assets (NPAs), which include NPLs, OREO and repossessed assets, were $37.4 million or 1.74% of total assets at December 31, 2012, down from $38.1 million or 1.81% of total assets at September 30, 2012, but up from $31.1 million or 1.51% of total assets at December 31, 2011. The Company strives to identify risk in its portfolio early and establish an allocation based on the Company's allowance methodology.

Net charge-offs in the fourth quarter of 2012 totaled $1.8 million or 0.12% of average loans compared with net charge-offs of $3.0 million or 0.19% of average loans in the third quarter of 2012 and $2.4 million or 0.16% of average loans in the year-earlier period. Net charge-offs for the year ended December 31, 2012, were 0.60% of average loans compared with 0.55% of average loans in the prior-year period.

The Company's loan loss provision for the fourth quarter of 2012 was $2.5 million, resulting in an allowance for loan losses of 2.01% of total loans as of December 31, 2012. This compared with $2.5 million and 1.98%, respectively, for the third quarter of 2012 and $3.1 million and 1.93%, respectively, for the fourth quarter of 2011. Overall, management believes that the pace of loan downgrades continues to slow and an increasing number of loans are being upgraded. Problem loan resolution will continue to be a challenge going forward as the overall level of NPLs remains at a historically high level after peaking in the second quarter of 2012, but still compares favorably versus peers.


Although the Company sees some signs of an economic recovery in its markets and with its customers generally, management has not seen convincing signs that business conditions have begun to strengthen on a sustained and consistent basis. Accordingly, S.Y. Bancorp intends to remain cautious in assessing the potential risk in its loan portfolio. The Company expects the allowance for loan losses and other credit costs to remain at high levels compared with pre-recession amounts until there are clearer signs of economic recovery and credit metrics begin to show stronger improvement. Still, while NPLs and NPAs are above the Company's historic range for these metrics, they have continued to trend significantly better than those of $1-to-$2.5 billion publicly traded banks, which as of September 30, 2012, (fourth quarter peer data is not yet available) posted average NPLs and NPAs of 3.27% and 3.89% respectively, according to a leading source for industry data.

Non-interest income increased $898,000 or 10% to $10.1 million in the fourth quarter of 2012 compared with $9.2 million in the same quarter last year. The quarter-over-quarter increase primarily reflected a doubling of gains on sales of mortgage loans held for sale, which increased $714,000 or 98% in the fourth quarter. The Company's largest source of non-interest income, investment management and trust, grew $307,000 or 9% in the fourth quarter and closed the year with $1.96 billion in assets under management. Brokerage fees and commissions were up $143,000 or 24% on a comparable basis in the fourth quarter of 2012. Non-interest income increased $5.2 million or 16% to $38.5 million for the year ended December 31, 2012, compared with $33.2 million in the same period last year, primarily due to the same trends seen in the fourth quarter. It is noteworthy that the investment management and trust services department achieved a record level of new account openings during 2012, which will generate estimated annualized revenue of $1.4 million.

Non-interest expense increased $456,000 or 3% to $17.2 million in the fourth quarter of 2012 from $16.7 million in the same period last year. The increase in non-interest expense was due primarily to higher personnel costs, reflecting staffing additions across the Company's operations as it prepares for future growth, normal salary increases and a higher performance-based bonus accrual associated with the Company's improved performance in 2012. Non-interest expense increased $5.9 million or 10% to $65.5 million for the year ended December 31, 2012, from $59.6 million for 2011 and reflected the same trends seen in the fourth quarter as well as increased charge-downs and carrying costs on OREO. The Company's fourth quarter efficiency ratio was 59.15% compared with 60.57% in the fourth quarter of 2011; for the year, the efficiency ratio was 57.38% versus 56.47% for 2011.

It should be noted that the Company's fourth quarter results reflected a higher effective income tax rate versus the comparable period last year due to a benefit of approximately $700,000 of tax adjustments in the prior-year quarter associated with tax-advantaged investments. Net income before income taxes, which excludes the impact of these tax adjustments, increased 18% in the fourth quarter of 2012 versus the year-earlier quarter, thus more clearly demonstrating the Company's fundamental operating strength.

In November 2012, S.Y. Bancorp's Board of Directors increased its quarterly cash dividend 5% to $0.20 per common share. The latest dividend was distributed on December 31, 2012, to stockholders of record as of December 10, 2012.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with more than $2.15 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 trust preferred securities of S.Y. Bancorp Capital Trust II also trade on the NASDAQ Global Select Market under the symbol SYBTP.


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.

The following table provides a reconciliation of total stockholders' equity in accordance with US GAAP to tangible common equity in accordance with applicable regulatory requirements. 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

(Amounts in thousands)

   
 

Dec. 31,
2012

Sept. 30,
2012

Dec. 31,
2011

Tangible Common Equity Ratio
Total stockholders' equity (a) $ 205,075 $ 201,422 $ 187,686
Less goodwill   (682 )   (682 )   (682 )
Tangible common equity (c) $ 204,393   $ 200,740   $ 187,004  
 
Total assets (b) $ 2,148,262 $ 2,102,589 $ 2,053,097
Less goodwill   (682 )   (682 )   (682 )
Tangible assets (d) $ 2,147,580   $ 2,101,907   $ 2,052,415  
 
Total stockholders' equity to total assets (a/b) 9.55 % 9.58 % 9.14 %
Tangible common equity ratio (c/d)   9.52 %   9.55 %   9.11 %
 

The following table provides a reconciliation of net interest margin in accordance with US GAAP to normalized net interest margin. The Company provides this information to illustrate the trend in quarterly net interest margin sequentially during 2012 and to show the impact of prepayment fees and late charges on net interest margin. Prepayment fees and late charges did not have the similar effect of increasing net interest margin during 2011.

 
Reconciliation of Net Interest Margin to Normalized
         

Dec. 31,
2012

Sept. 30,
2012

June 30,
2012

March 31,
2012

Year to Date
2012   2011
Net interest margin 3.78 % 3.92 % 3.98 % 4.07 % 3.94 % 3.99 %

Prepayment penalties / late charges

(0.04 ) (0.07 ) (0.04 ) (0.07 ) (0.06 ) 0.02  

Normalized net interest margin

3.74 % 3.85 % 3.94 % 4.00 % 3.88 % 4.01 %
 

 
S. Y. Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2012 Earnings Release
(In thousands unless otherwise noted)
  Three Months Ended   Twelve Months Ended
December 31, December 31,
2012   2011 2012   2011
Income Statement Data
Net interest income, fully tax equivalent (1) $ 18,925 $ 18,388 $ 75,653 $ 72,262
Interest income
Loans $ 20,171 $ 19,706 $ 79,398 $ 79,049
Federal funds sold 104 88 320 255
Mortgage loans held for sale 127 88 344 231
Securities   1,632   1,687   6,839   6,504
Total interest income   22,034   21,569   86,901   86,039
Interest expense
Deposits 1,514 2,260 7,166 10,105
Federal funds purchased 7 7 31 38
Securities sold under agreements to repurchase 42 54 180 253
Federal Home Loan Bank (FHLB) advances 1,389 367 2,461 1,460
Subordinated debentures   772   865   3,113   3,451
Total interest expense   3,724   3,553   12,951   15,307
Net interest income 18,310 18,016 73,950 70,732
Provision for loan losses   2,475   3,100   11,500   12,600
Net interest income after provision for loan losses   15,835   14,916   62,450   58,132
Non-interest income
Investment management and trust income 3,603 3,296 14,278 13,841
Service charges on deposit accounts 2,175 2,223 8,516 8,348
Bankcard transaction revenue 1,018 940 3,985 3,722
Gains on sales of mortgage loans held for sale 1,439 725 4,321 2,122
Brokerage commissions and fees 749 606 2,593 2,219
Bank owned life insurance 263 258 1,006 1,019
Other non-interest income   880   1,181   3,758   1,973
Total non-interest income   10,127   9,229   38,457   33,244
Non-interest expense
Salaries and employee benefits expense 9,771 8,549 37,960 33,125
Net occupancy expense 1,453 1,291 5,651 5,192
Data processing expense 1,147 1,248 5,278 5,014
Furniture and equipment expense 341 301 1,306 1,299
FDIC insurance expense 399 356 1,494 1,655
Loss on other real estate owned 233 1,301 1,410 1,716
Other non-interest expenses   3,839   3,681   12,373   11,580
Total non-interest expense   17,183   16,727   65,472   59,581
Net income before income tax expense 8,779 7,418 35,435 31,795
Income tax expense   2,265   1,076   9,634   8,191
Net income $ 6,514 $ 6,342 $ 25,801 $ 23,604
 
Weighted average shares - basic 13,901 13,808 13,875 13,786
Weighted average shares - diluted 13,955 13,834 13,932 13,834
 
Net income per share, basic $ 0.47 $ 0.46 $ 1.86 $ 1.71
Net income per share, diluted 0.47 0.46 1.85 1.71
Cash dividend declared per share 0.20 0.18 0.77 0.72
 
Balance Sheet Data (at period end)
Total loans $ 1,584,594 $ 1,544,845
Allowance for loan losses 31,881 29,745
Total assets 2,148,262 2,053,097
Non-interest bearing deposits 396,159 313,587
Interest bearing deposits 1,385,534 1,304,152
Federal Home Loan Bank advances 31,882 60,431
Subordinated debentures 30,900 40,900
Stockholders' equity 205,075 187,686
Total shares outstanding 13,915 13,819
Book value per share 14.74 13.58
Market value per share 22.42 20.53
 

S. Y. Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2012 Earnings Release
       
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Average Balance Sheet Data
Average federal funds sold $ 145,946 $ 115,869 $ 108,828 $ 86,600
Average mortgage loans held for sale 13,418 9,291 9,191 5,394
Average securities available for sale 267,723 224,653 261,378 213,874
Average FHLB stock and other securities 6,180 5,949 6,117 5,900
Average loans 1,573,469 1,539,227 1,563,918 1,529,556
Average earning assets (3) 1,991,271 1,864,616 1,922,134 1,809,043
Average assets 2,129,501 2,015,486 2,070,967 1,959,609
Average interest bearing deposits 1,346,908 1,297,173 1,318,060 1,272,398
Average total deposits 1,723,811 1,597,461 1,659,594 1,549,708

Average securities sold under agreement to repurchase

60,918 67,292 59,861 61,595

Average federal funds purchased and other short term borrowings

17,487 17,777 19,431 21,537
Average Federal Home Loan Bank advances 59,180 60,432 60,113 60,436
Average subordinated debentures 30,900 40,900 31,474 40,900
Average interest bearing liabilities 1,515,393 1,483,574 1,488,939 1,456,866
Average stockholders' equity 204,502 186,935 197,551 179,638
 
Performance Ratios
Annualized return on average assets 1.22 % 1.25 % 1.25 % 1.20 %
Annualized return on average equity 12.67 % 13.46 % 13.06 % 13.14 %
Net interest margin, fully tax equivalent (3) 3.78 % 3.91 % 3.94 % 3.99 %

Non-interest income to total revenue, fully tax equivalent

34.86 % 33.42 % 33.70 % 31.51 %
Efficiency ratio 59.15 % 60.57 % 57.38 % 56.47 %
 
Capital Ratios
Average stockholders' equity to average assets 9.60 % 9.27 % 9.54 % 9.17 %
Tier 1 risk-based capital 13.17 % 12.77 %
Total risk-based capital 14.42 % 14.63 %
Leverage 10.79 % 10.53 %
 
Loans by Type
Commercial and industrial $ 426,930 $ 393,729
Construction and development 131,253 147,637
Real estate mortgage - commercial investment 414,084 399,655
Real estate mortgage - owner occupied commercial 304,114 297,121
Real estate mortgage - 1-4 family residential 166,280 154,565
Home equity - first lien 39,363 38,637
Home equity - junior lien 65,790 76,687
Consumer 36,780 36,814
 
Asset Quality Data
Allowance for loan losses to total loans 2.01 % 1.93 %
Allowance for loan losses to average loans 2.03 % 1.93 % 2.04 % 1.94 %
Allowance for loan losses to non-performing loans 106.10 % 127.67 %
Nonaccrual loans $ 18,360 $ 18,737
Troubled debt restructuring 10,969 3,402
Loans - 90 days past due & still accruing 719 1,160
Total non-performing loans 30,048 23,299
OREO and repossessed assets 7,364 7,773
Total non-performing assets 37,412 31,072
Non-performing loans to total loans 1.90 % 1.51 %
Non-performing assets to total assets 1.74 % 1.51 %
Net charge-offs to average loans (2) 0.12 % 0.16 % 0.60 % 0.55 %
Net charge-offs $ 1,839 $ 2,421 $ 9,364 $ 8,398
 

 
S. Y. Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2012 Earnings Release
         
Five Quarter Comparison
12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
Income Statement Data
Net interest income, fully tax equivalent (1) $ 18,925   $ 19,140   $ 18,667   $ 18,921   $ 18,388  
Net interest income $ 18,310 $ 18,795 $ 18,295 $ 18,550 $ 18,016
Provision for loan losses   2,475     2,475     2,475     4,075     3,100  
Net interest income after provision for loan losses   15,835     16,320     15,820     14,475     14,916  
Investment management and trust income 3,603 3,515 3,670 3,490 3,296
Service charges on deposit accounts 2,175 2,161 2,125 2,055 2,223
Bankcard transaction revenue 1,018 985 1,017 965 940
Gains on sales of mortgage loans held for sale 1,439 1,277 866 739 725
Brokerage commissions and fees 749 651 652 541 606
Bank owned life insurance 263 226 260 257 258
Other non-interest income   880     980     700     1,198     1,181  
Total non-interest income   10,127     9,795     9,290     9,245     9,229  
Salaries and employee benefits expense 9,771 9,711 9,426 9,052 8,549
Net occupancy expense 1,453 1,365 1,464 1,369 1,291
Data processing expense 1,147 1,296 1,522 1,313 1,248
Furniture and equipment expense 341 347 326 292 301
FDIC Insurance expense 399 398 346 351 356
Loss (gain) on other real estate owned 233 969 233 (25 ) 1,301
Other non-interest expenses   3,839     2,959     3,191     2,384     3,681  
Total non-interest expense   17,183     17,045     16,508     14,736     16,727  
Net income before income tax expense 8,779 9,070 8,602 8,984 7,418
Income tax expense   2,265     2,388     2,499     2,482     1,076  
Net income $ 6,514   $ 6,682   $ 6,103   $ 6,502   $ 6,342  
 
Weighted average shares - basic 13,901 13,883 13,874 13,844 13,808
Weighted average shares - diluted 13,955 13,966 13,941 13,890 13,834
 
Net income per share, basic $ 0.47 $ 0.48 $ 0.44 $ 0.47 $ 0.46
Net income per share, diluted 0.47 0.48 0.44 0.47 0.46
Cash dividend declared per share 0.20 0.19 0.19 0.19 0.18
 
Balance Sheet Data (at period end)
Cash and due from banks $ 42,610 $ 35,032 $ 34,789 $ 30,919 $ 32,901
Federal funds sold 25,093 17,351 35,533 23,032 22,019
Mortgage loans held for sale 14,047 13,417 6,608 6,935 4,381
Securities available for sale 386,440 360,946 333,143 348,699 352,185
FHLB stock and other securities 6,180 6,180 6,180 5,949 5,949
Total loans 1,584,594 1,578,290 1,577,826 1,531,740 1,544,845
Allowance for loan losses 31,881 31,245 31,773 31,206 29,745
Total assets 2,148,262 2,102,589 2,083,628 2,040,589 2,053,097
Non-interest bearing deposits 396,159 359,097 341,128 328,575 313,587
Interest bearing deposits 1,385,534 1,330,933 1,323,161 1,298,742 1,304,152
Securities sold under agreements to repurchase 59,045 54,127 50,700 59,506 66,026
Federal funds purchased 16,552 19,308 36,736 20,633 37,273
Federal Home Loan Bank advances 31,882 60,423 60,426 60,428 60,431
Subordinated debentures 30,900 30,900 30,900 30,900 40,900
Stockholders' equity 205,075 201,422 196,302 191,823 187,686
Total shares outstanding 13,915 13,895 13,878 13,872 13,819
Book value per share 14.74 14.50 14.14 13.83 13.58
Market value per share 22.42 23.66 23.95 23.20 20.53
 
Capital Ratios
Average stockholders' equity to average assets 9.60 % 9.54 % 9.57 % 9.44 % 9.27 %
Tier 1 risk-based capital 13.17 % 13.09 % 12.94 % 13.13 % 12.77 %
Total risk-based capital 14.42 % 14.35 % 14.20 % 14.39 % 14.63 %
Leverage 10.79 % 10.76 % 10.82 % 10.71 % 10.53 %
 

         
S. Y. Bancorp, Inc. Financial Information (unaudited)
Fourth Quarter 2012 Earnings Release
 
Five Quarter Comparison
12/31/12 9/30/12 6/30/12 3/31/12 12/31/11
Average Balance Sheet Data
Average federal funds sold $ 145,946 $ 110,263 $ 84,957 $ 93,724 $ 115,869
Average mortgage loans held for sale 13,418 11,776 5,718 5,776 9,291
Average investment securities 273,903 266,799 271,550 257,664 230,602
Average loans 1,573,469 1,583,269 1,554,840 1,543,778 1,539,227
Average earning assets (3) 1,991,271 1,940,261 1,885,727 1,870,318 1,864,616
Average assets 2,129,501 2,093,512 2,037,921 2,022,040 2,015,486
Average interest bearing deposits 1,346,908 1,330,877 1,300,307 1,293,685 1,297,173
Average total deposits 1,723,811 1,677,819 1,626,024 1,609,810 1,597,461

Average securities sold under agreement to repurchase

60,918 57,878 57,930 62,729 67,292

Average federal funds purchased and other short term borrowings

17,487 19,366 21,863 19,032 17,777
Average Federal Home Loan Bank advances 59,180 60,424 60,426 60,429 60,432
Average subordinated debentures 30,900 30,900 30,900 33,208 40,900
Average interest bearing liabilities 1,515,393 1,499,445 1,471,426 1,469,083 1,483,574
Average stockholders' equity 204,502 199,766 194,947 190,888 186,935
 
Performance Ratios
Annualized return on average assets 1.22 % 1.27 % 1.20 % 1.29 % 1.25 %
Annualized return on average equity 12.67 % 13.31 % 12.59 % 13.70 % 13.46 %
Net interest margin, fully tax equivalent (3) 3.78 % 3.92 % 3.98 % 4.07 % 3.91 %

Non-interest income to total revenue, fully tax equivalent

34.86 % 33.85 % 33.23 % 32.82 % 33.42 %
Efficiency ratio 59.15 % 58.91 % 59.05 % 52.32 % 60.57 %
 
Loans by Type
Commercial and industrial $ 426,930 $ 419,568 $ 417,112 $ 371,430 $ 393,729
Construction and development 131,253 138,165 139,328 143,337 147,637
Real estate mortgage - commercial investment 414,084 417,357 420,499 413,182 399,655
Real estate mortgage - owner occupied commercial 304,114 301,017 300,911 300,203 297,121
Real estate mortgage - 1-4 family residential 166,280 158,013 154,927 155,185 154,565
Home equity - 1st lien 39,363 36,480 37,902 37,746 38,637
Home equity - junior lien 65,790 67,312 71,408 74,688 76,687
Consumer 36,780 40,378 35,739 35,969 36,814
 
Asset Quality Data
Allowance for loan losses to total loans 2.01 % 1.98 % 2.01 % 2.04 % 1.93 %
Allowance for loan losses to average loans 2.03 % 1.97 % 2.04 % 2.02 % 1.93 %
Allowance for loan losses to non-performing loans 106.10 % 100.19 % 89.35 % 107.35 % 127.67 %
Nonaccrual loans $ 18,360 $ 22,448 $ 27,907 $ 19,232 $ 18,737
Troubled debt restructuring 10,969 7,511 7,541 9,443 3,402
Loans - 90 days past due & still accruing 719 1,228 112 394 1,160
Total non-performing loans 30,048 31,187 35,560 29,069 23,299
OREO and repossessed assets 7,364 6,939 7,041 8,550 7,773
Total non-performing assets 37,412 38,126 42,601 37,619 31,072
Non-performing loans to total loans 1.90 % 1.98 % 2.25 % 1.90 % 1.51 %
Non-performing assets to total assets 1.74 % 1.81 % 2.04 % 1.84 % 1.51 %
Net charge-offs to average loans (2) 0.12 % 0.19 % 0.12 % 0.17 % 0.16 %
Net charge-offs $ 1,839 $ 3,003 $ 1,908 $ 2,614 $ 2,421
 
Other Information
Total assets under management (in millions) $ 1,961 $ 1,923 $ 1,848 $ 1,839 $ 1,741
Full-time equivalent employees 495 490 482 480 480
 
(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) - Interim ratios not annualized
(3) - 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