EX-99.1 2 a50790233ex99_1.htm EXHIBIT 99.1

Exhibit 99.1

S.Y. Bancorp Reports Record Results for the Year 2013

Excluding Non-Core Items, Net Income Per Diluted Share Increased 4% to $0.49 for the Fourth Quarter and 6% to $1.97 for the Year

LOUISVILLE, Ky.--(BUSINESS WIRE)--January 27, 2014--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 solid financial results for the fourth quarter and year ended December 31, 2013, with earnings per diluted share reaching $0.43 for the fourth quarter and a record $1.89 for the year.

The Company's performance continues to underscore solid contributions from key areas of the Company. Highlights of the fourth quarter included:

  • Ongoing net loan growth as well as a stable pipeline of new loan opportunities;
  • Further improvements in credit quality, reflecting a significant decline in non-performing loans and assets that supports a lower loan loss provision compared with the prior-year quarter;
  • Increased income from investment management and trust services;
  • The redemption of the Company's trust preferred securities, which will result in future interest savings; and
  • A 5% increase in the quarterly cash dividend.
The following is a summary of the Company's reported results:
     

Quarter Ended December 31,

2013

2012

Change

Net income $ 6,313,000 $ 6,514,000 (3 )%
Net income per share, diluted $ 0.43 $ 0.47 (9 )%
Return on average equity 10.90 % 12.67 %
Return on average assets 1.07 % 1.22 %
 

Year Ended December 31,

2013

2012

Change

Net income $ 27,170,000 $ 25,801,000 5 %
Net income per share, diluted $ 1.89 $ 1.85 2 %
Return on average equity 12.34 % 13.06 %
Return on average assets 1.22 % 1.25 %
 

The Company's results for the fourth quarter and year ended December 31, 2013, included the effect of several non-core items. Excluding these items, net income for the fourth quarter of 2013 and year-to-date period ended December 31, 2013, was $7.1 million or $0.49 per diluted shares and $28.3 million or $1.97 per diluted share, respectively. See reconciliation of GAAP and non-GAAP measures later in this release.

"This past year was an exciting and prosperous time for S.Y. Bancorp, highlighted by attractive growth in several aspects of our business, new opportunities realized, and higher earnings for the fourth consecutive year," said David P. Heintzman, Chairman and CEO. "These advances, in turn, translated into another year of strong returns for our shareholders, further solidifying our foundation for future growth and attesting to our standing as one of the top-performing community banks in the country."

Heintzman noted that the Company's second quarter acquisition of THE BANCorp, INC. ("BANCorp"), the holding company for THE BANK – Oldham County, was an important highlight of 2013. "The acquisition of BANCorp provided us with a physical presence in demographically attractive Oldham County and was successful for us from the start, marked by the ongoing loyalty of customers and effective integration efforts. Since the acquisition, we have experienced growth in both the loan portfolio and deposit base there, and our greater visibility in the area has resulted in increased traction with new business opportunities for commercial lending. It also has created a platform for the continued expansion of our investment management and trust services, as well as our mortgage origination services.

"Throughout 2013, we continued to see a strong performance in our banking operations, with all three of our markets experiencing higher loan production," Heintzman continued. "Combined, this growth resulted in record loan production for the year that topped $489 million, pushing our loan portfolio up $137 million or almost 9% in 2013. Excluding loans acquired in the BANCorp acquisition, core loan growth was more than 6% for the year. This loan growth also helped offset the net interest margin pressure we experienced in 2013."

Heintzman pointed out that while growing loan volume was instrumental to the Company's progress in 2013, strengthening credit quality metrics also were a key factor, allowing S.Y. Bancorp to reduce its credit costs – primarily the provision for loan losses. Non-performing assets (NPAs) have declined approximately 33% from the peak in 2012 and, relative to total assets, NPAs declined steadily over the last three quarters of 2013 to end the year at the lowest level since midyear 2011.

In addition to the momentum seen in its banking operations, Heintzman noted that the Company's investment management and trust services department achieved record revenue in 2013, which was capped by an 18% comparable increase in the final quarter. With $2.23 billion in assets under management – which rose 14% for the year – this department has benefited from new business growth as well as the overall stronger stock market conditions. It continues to rank among the top 100 bank trust departments in the nation, based on revenue.

The Bank's mortgage division experienced an 85% decline in refinancing volume in 2013 compared with volume for 2012. Loan refinancing demand declined in the wake of rising interest rates, consistent with national trends. Offsetting this to some extent, purchase loan activity increased 13% in 2013. As a result of these mixed trends, mortgage banking revenue for 2013 fell 31% from record achievements in 2012.

Concluding, Heintzman said, "We are pleased that the Company has again posted record results for the year, and we are excited about what the fundamental strength of our operations means for the Company and its shareholders going forward. With a consistent pipeline of new business for the year ahead, we believe the Company remains well positioned to extend its record of growth, profitability and attractive shareholder returns."

S.Y. Bancorp's total assets increased $241 million or 11% at December 31, 2013, reaching $2.39 billion compared with $2.15 billion at December 31, 2012. The Company's loan portfolio increased $136.8 million or 9% to $1.72 billion at December 31, 2013, compared with $1.58 billion at December 31, 2012. Total deposits increased $199.2 million or 11% to $1.98 billion at December 31, 2013, from $1.78 billion at December 31, 2012.

As reflected below, the Company's capital levels remained strong during the fourth quarter of 2013 and exceeded the required minimums of 5%, 6% and 10%, respectively, necessary to be deemed a "well-capitalized" institution – the highest capital rating for financial institutions.

 

Dec. 31,

2013

 

Sept. 30,

2013

 

Dec. 31,

2012

Tier 1 leverage ratio 9.75 % 11.21 % 10.79 %
Tier 1 risk-based capital ratio 12.29 % 13.66 % 13.17 %
Total risk-based capital ratio 13.54 % 14.91 % 14.42 %
 

On December 31, 2013, the Company redeemed at par all of its 10% fixed-rate cumulative trust preferred securities, or $30 million. The redemption will eliminate related future interest costs and is expected to add $0.13 to annual earnings per diluted share in 2014. In connection with this, the Company wrote off approximately $1.3 million ($835 thousand or $0.06 per diluted share after tax) in unamortized debt issuance costs in the fourth quarter, which was recorded as other non-interest expense. The redemption caused capital ratios to fall somewhat at December 31, 2013, compared with those of September 30, 2013, but all ratios remain well above regulatory thresholds.

The Company has maintained capital ratios at historically higher levels in light of current economic and political uncertainties and to remain well positioned to pursue expansion and other opportunities that may arise. Even with those objectives in mind, S.Y. Bancorp has continued to enhance stockholder value through steadily increased cash dividends, raising the dividend rate four times over the past three years.

Net interest income – the Company's largest source of revenue – increased $1.5 million or 8% to $19.8 million in the fourth quarter of 2013 from $18.3 million in the prior-year quarter. For 2013, net interest income increased $3.3 million or 5% to $77.3 million from $74.0 million in the prior-year period. In the fourth quarter of 2013, net interest margin was 3.61% versus 3.79% in the third quarter of 2013 and 3.78% in the fourth quarter of 2012. Net interest margin for the full year declined 20 basis points to 3.74% from 3.94% for 2012. Net interest margin in the fourth quarter of 2013 continued to reflect a higher amount of prepayment fees that management considers non-recurring. The Company's normalized or core net interest margin declined to 3.53% for the fourth quarter of 2013 from 3.63% for the third quarter of 2013, 3.66% in the second quarter, 3.77% in the first quarter of 2013, and 3.74% in the fourth quarter of 2012 (see reconciliation of GAAP and non-GAAP measures later in this release). The decline in core net interest margin in the fourth quarter of 2013 versus the linked third quarter was due primarily to excess liquidity caused by a temporary influx of public funds at the end of the year.

Non-performing loans (NPLs) totaled $23.0 million or 1.33% of total loans outstanding at December 31, 2013, compared with $30.5 million or 1.78% of total loans outstanding at September 30, 2013, and $30.0 million or 1.90% of total loans at December 31, 2012. Included in NPLs are loans that have been restructured totaling approximately $7.2 million at December 31, 2013, $8.6 million at September 30, 2013, and $11.0 million at December 31, 2012. These loans are performing in accordance with their restructured terms and are accruing interest. Non-performing assets (NPAs), which include NPLs and repossessed assets, were $28.5 million or 1.19% of total assets at December 31, 2013, a decrease from $37.0 million or 1.62% of total assets at September 30, 2013, and $37.4 million or 1.74% of total assets at December 31, 2012.

Net charge-offs in the fourth quarter of 2013 totaled $2.0 million or 0.12% of average loans, down from $4.3 million or 0.26% of average loans in the third quarter of 2013, but up slightly from $1.8 million or 0.12% of average loans in the year-earlier period. Net charge-offs for the year were 0.60% of average loans, unchanged from net charge-offs for 2012.

The Company's loan loss provision for the fourth quarter of 2013 was $1.6 million, up from $1.3 million in the third quarter of 2013 and compared with $2.5 million in the prior-year quarter. The loan loss provision for the year was $6.6 million, down $4.9 million or 43% from $11.5 million for 2012. The allowance for loan losses stood at 1.66% of total loans as of December 31, 2013, compared with 1.70% at September 30, 2013, and 2.01% at December 31, 2012. Management believes the Company remains adequately reserved based on its current assessment of overall risk in the loan portfolio.

Total non-interest income decreased $316 thousand or 3% to $9.8 million in the fourth quarter of 2013 compared with $10.1 million for the prior-year quarter. The decline primarily reflected a decrease of $1.3 million or 68% in mortgage banking revenue, which was partially offset by a $652 thousand or 18% increase in income from investment management and trust services. For 2013, in addition to changes similar to those discussed for the fourth quarter, total non-interest income increased 1% to $39.0 million compared with $38.5 million in 2012, including the bargain purchase gain of $449 thousand related to the acquisition of BANCorp during the second quarter of 2013.

Total non-interest expense increased $2.2 million or 13% to $19.4 million in the fourth quarter of 2013 from $17.2 million in the same period last year. The change primarily reflected a $1.2 million or 12% increase in salaries and employee benefits, a $477 thousand or 42% increase in data processing expense, and a $588 thousand or 15% increase in other non-interest expense. The increase in salaries and employee benefits was attributable to the addition of personnel in connection with the acquisition of BANCorp and the expansion of the Bank's investment management and trust department, normal salary increases, higher performance-based compensation, and increased benefit costs. The increase in data processing expense primarily reflected a refund of fees in 2012 that benefited the prior-year fourth quarter and the reissuance of debit cards in the fourth quarter of 2013, an action related to the recent selection of a new bank card processor. Other non-interest expense increased primarily due to the write-off of $1.3 million in debt issuance costs in connection with the Company's redemption of its trust preferred securities. For 2013, total non-interest expense increased $5.9 million or 9% to $71.4 million compared with $65.5 million in 2012. In addition to the items of note for the fourth quarter, total non-interest expense for 2013 included second quarter acquisition-related expenses of $1.5 million and a third quarter write-off of other real estate owned totaling $365 thousand, which were partially offset by the elimination in the third quarter of a $505 thousand liability for expired debit card rewards.

In November 2013, S.Y. Bancorp's Board of Directors declared a quarterly cash dividend of $0.21 per common share, a 5% increase over the previous rate of $0.20 per common share. The latest dividend was distributed on December 31, 2013, to stockholders of record as of December 9, 2013.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $2.39 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 net income and earnings per diluted share to adjusted net income and adjusted earnings per diluted share, both non-GAAP measures. The Company provides non-GAAP earnings information to improve the comparability of its results and provide additional insight into the strength of the Company's operations.

Reconciliation of GAAP and Non-GAAP Measures

(Amounts in thousands; adjustments expressed net of tax)

 
  Quarter Ended

December 31,

  Year Ended

December 31,

2013   2012 2013   2012
Net income as reported $ 6,313 $ 6,514 $ 27,170 $ 25,801
Write-off of debt issuance costs 835 -- 835 --
Acquisition costs, net of gain on acquisition -- -- 613 --
Other   --   --   (331 )   --
Adjusted net income $ 7,148 $ 6,514 $ 28,287   $ 25,801
 
Earnings per diluted share as reported $ 0.43 $ 0.47 $ 1.89 $ 1.85
Write-off of debt issuance costs 0.06 -- 0.06 --
Acquisition costs, net of gain on acquisition -- -- 0.04 --
Other   --   --   (0.02 )   --
Adjusted earnings per diluted share $ 0.49 $ 0.47 $ 1.97   $ 1.85
 

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

(Dollars in thousands)

   
 

Dec. 31,

2013

Sept. 30,

2013

Dec. 31,

2012

Total stockholders' equity (a) $ 229,444 $ 226,535 $ 205,075
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (2,151 )   (2,298 )   --  
Tangible common equity (c) $ 226,611   $ 223,555   $ 204,393  
 
Total assets (b) $ 2,389,262 $ 2,289,755 $ 2,148,262
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (2,151 )   (2,298 )   --  
Tangible assets (d) $ 2,386,429   $ 2,286,775   $ 2,147,580  
 
Total stockholders' equity to total assets (a/b) 9.60 % 9.89 % 9.55 %
Tangible common equity ratio (c/d)   9.50 %   9.78 %   9.52 %
 

The following table provides a reconciliation of net interest margin in accordance with US GAAP to core net interest margin. The Company provides this information to illustrate the trend in quarterly net interest margin sequentially during 2012 and 2013 and to show the impact of prepayment fees and late charges on net interest margin.

Reconciliation of Net Interest Margin to Core
 
 

Dec. 31,

2013

 

Sept. 30,

2013

 

June 30,

2013

 

March 31,

2013

 

Dec. 31,

2012

Net interest margin 3.61 % 3.79 % 3.72 % 3.83 % 3.78 %

Prepayment penalties / late charges

(0.06 ) (0.06 ) (0.04 ) (0.06 ) (0.04 )
Interest adjustment on non-accrual loan -- (0.07 ) -- -- --
Accretion of fair value adjustments (0.02 ) (0.03 ) (0.02 ) --   --  
Core net interest margin 3.53 % 3.63 % 3.66 % 3.77 % 3.74 %
 

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. Financial Information (unaudited)

Fourth Quarter 2013 Earnings Release
(In thousands unless otherwise noted)
 
  Three Months Ended   Twelve Months Ended
Dec 31, Dec 31,
2013   2012 2013   2012
Income Statement Data
Net interest income, fully tax equivalent (1) $ 20,096 $ 18,925 $ 78,306   $ 75,653
Interest income
Loans $ 19,941 $ 20,171 $ 78,703 $ 79,398
Federal funds sold 80 104 295 320
Mortgage loans held for sale 42 127 219 344
Securities   2,006   1,632   7,247     6,839
Total interest income   22,069   22,034   86,464     86,901
Interest expense
Deposits 1,178 1,514 5,011 7,166
Federal funds purchased 6 7 32 31
Securities sold under agreements to repurchase 40 42 146 180
Federal Home Loan Bank (FHLB) advances 230 1,389 887 2,461
Subordinated debentures   772   772   3,090     3,113
Total interest expense   2,226   3,724   9,166     12,951
Net interest income 19,843 18,310 77,298 73,950
Provision for loan losses   1,575   2,475   6,550     11,500
Net interest income after provision for loan losses   18,268   15,835   70,748     62,450
Non-interest income
Investment management and trust income 4,255 3,603 16,287 14,278
Service charges on deposit accounts 2,394 2,175 8,986 8,516
Bankcard transaction revenue 1,310 1,018 4,378 3,985
Mortgage banking revenue 608 1,882 3,978 5,771
Loss on the sale of securities - - (5 ) -
Brokerage commissions and fees 466 749 2,159 2,593
Bank owned life insurance 260 263 1,031 1,006
Gain on acquisition - - 449 -
Other non-interest income   518   437   1,739     2,308
Total non-interest income   9,811   10,127   39,002     38,457
Non-interest expense
Salaries and employee benefits expense 10,959 9,771 41,145 37,960
Net occupancy expense 1,427 1,453 5,615 5,651
Data processing expense 1,624 1,147 6,319 5,278
Furniture and equipment expense 280 341 1,126 1,306
FDIC insurance expense 376 399 1,431 1,494
Loss on other real estate owned 287 233 652 1,410
Acquisition costs - - 1,548 -
Other non-interest expenses   4,427   3,839   13,516     12,373
Total non-interest expense   19,380   17,183   71,352     65,472
Net income before income tax expense 8,699 8,779 38,398 35,435
Income tax expense   2,386   2,265   11,228     9,634
Net income $ 6,313 $ 6,514 $ 27,170   $ 25,801
 
Weighted average shares - basic 14,455 13,901 14,223 13,875
Weighted average shares - diluted 14,677 13,955 14,353 13,932
 
Net income per share, basic $ 0.44 $ 0.47 $ 1.91 $ 1.86
Net income per share, diluted 0.43 0.47 1.89 1.85
Cash dividend declared per share 0.21 0.20 0.81 0.77
 
Balance Sheet Data (at period end)
Total loans $ 1,721,350 $ 1,584,594
Allowance for loan losses 28,522 31,881
Total assets 2,389,262 2,148,262
Non-interest bearing deposits 423,350 396,159
Interest bearing deposits 1,557,587 1,385,534
Federal Home Loan Bank advances 34,329 31,882
Subordinated debentures - 30,900
Stockholders' equity 229,444 205,075
Total shares outstanding 14,609 13,915
Book value per share 15.71 14.74
Market value per share 31.92 22.42
 
 
 

S.Y. Bancorp, Inc. Financial Information (unaudited)

Fourth Quarter 2013 Earnings Release
 
  Three Months Ended   Twelve Months Ended
Dec 31, Dec 31,
2013   2012 2013   2012
Average Balance Sheet Data
Average federal funds sold $ 116,348 $ 145,946 $ 99,381 $ 108,828
Average mortgage loans held for sale 3,582 13,418 5,885 9,191
Average securities available for sale 378,575 267,723 337,119 261,378
Average FHLB stock and other securities 7,347 6,180 6,916 6,117
Average loans 1,713,062 1,573,469 1,656,777 1,563,918
Average earning assets 2,208,575 1,991,271 2,096,088 1,922,134
Average assets 2,351,127 2,129,501 2,232,868 2,070,967
Average interest bearing deposits 1,513,067 1,346,908 1,439,313 1,318,060
Average total deposits 1,949,209 1,723,811 1,843,426 1,659,594

Average securities sold under agreement to repurchase

66,244 60,918 60,737 59,861

Average federal funds purchased and other short term borrowings

17,102 17,487 19,546 19,431
Average Federal Home Loan Bank advances 34,341 59,180 32,518 60,113
Average subordinated debentures 29,221 30,900 30,477 31,474
Average interest bearing liabilities 1,659,975 1,515,393 1,582,591 1,488,939
Average stockholders' equity 229,685 204,502 220,107 197,551
 
Performance Ratios
Annualized return on average assets 1.07 % 1.22 % 1.22 % 1.25 %
Annualized return on average equity 10.90 % 12.67 % 12.34 % 13.06 %
Net interest margin, fully tax equivalent 3.61 % 3.78 % 3.74 % 3.94 %

Non-interest income to total revenue, fully tax equivalent

32.81 % 34.86 % 33.25 % 33.70 %
Efficiency ratio 64.80 % 59.15 % 60.82 % 57.38 %
 
Capital Ratios
Average stockholders' equity to average assets 9.77 % 9.60 % 9.86 % 9.54 %
Tier 1 risk-based capital 12.29 % 13.17 %
Total risk-based capital 13.54 % 14.42 %
Leverage 9.75 % 10.79 %
 
Loans by Type
Commercial and industrial $ 510,739 $ 426,930
Construction and development 129,590 131,253
Real estate mortgage - commercial investment 430,047 414,084
Real estate mortgage - owner occupied commercial 329,422 304,114
Real estate mortgage - 1-4 family residential 183,700 166,280
Home equity - first lien 40,251 39,363
Home equity - junior lien 63,403 65,790
Consumer 34,198 36,780
 
Asset Quality Data
Allowance for loan losses to total loans 1.66 % 2.01 %
Allowance for loan losses to average loans 1.66 % 2.03 % 1.72 % 2.04 %
Allowance for loan losses to non-performing loans 124.31 % 106.10 %
Nonaccrual loans $ 15,258 $ 18,360
Troubled debt restructuring 7,249 10,969
Loans - 90 days past due & still accruing 437 719
Total non-performing loans 22,944 30,048
OREO and repossessed assets 5,592 7,364
Total non-performing assets 28,536 37,412
Non-performing loans to total loans 1.33 % 1.90 %
Non-performing assets to total assets 1.19 % 1.74 %
Net charge-offs to average loans (2) 0.12 % 0.12 % 0.60 % 0.60 %
Net charge-offs $ 2,043 $ 1,839 $ 9,909 $ 9,364
 
 
 

S.Y. Bancorp, Inc. Financial Information (unaudited)

Fourth Quarter 2013 Earnings Release
 
  Five Quarter Comparison
12/31/13   9/30/13   6/30/13   3/31/13   12/31/12
Income Statement Data
Net interest income, fully tax equivalent (1) $ 20,096   $ 20,270   $ 19,229   $ 18,711   $ 18,925  
Net interest income $ 19,843 $ 20,017 $ 18,975 $ 18,463 $ 18,310
Provision for loan losses   1,575     1,325     1,325     2,325     2,475  
Net interest income after provision for loan losses   18,268     18,692     17,650     16,138     15,835  
Investment management and trust income 4,255 4,017 4,129 3,886 3,603
Service charges on deposit accounts 2,394 2,348 2,244 2,000 2,175
Bankcard transaction revenue 1,310 1,087 1,020 961 1,018
Mortgage banking revenue 608 995 1,195 1,180 1,882
Loss on the sale of securities - - (5 ) - -
Brokerage commissions and fees 466 456 622 615 749
Bank owned life insurance 260 260 259 252 263
Gain on acquisition - - 449 - -
Other non-interest income   518     489     398     334     437  
Total non-interest income   9,811     9,652     10,311     9,228     10,127  
Salaries and employee benefits expense 10,959 10,508 10,021 9,657 9,771
Net occupancy expense 1,427 1,522 1,435 1,231 1,453
Data processing expense 1,624 1,520 1,819 1,356 1,147
Furniture and equipment expense 280 269 286 291 341
FDIC Insurance expense 376 348 357 350 399
Loss (gain) on other real estate owned 287 475 (74 ) (35 ) 233
Acquisition costs - - 1,548 - -
Other non-interest expenses   4,427     2,929     3,430     2,729     3,839  
Total non-interest expense   19,380     17,571     18,822     15,579     17,183  
Net income before income tax expense 8,699 10,773 9,139 9,787 8,779
Income tax expense   2,386     3,091     2,732     3,019     2,265  
Net income $ 6,313   $ 7,682   $ 6,407   $ 6,768   $ 6,514  
 
Weighted average shares - basic 14,455 14,408 14,203 13,814 13,901
Weighted average shares - diluted 14,677 14,556 14,243 13,851 13,955
 
Net income per share, basic $ 0.44 $ 0.53 $ 0.45 $ 0.49 $ 0.47
Net income per share, diluted 0.43 0.53 0.45 0.49 0.47
Cash dividend declared per share 0.21 0.20 0.20 0.20 0.20
 
Balance Sheet Data (at period end)
Cash and due from banks $ 34,519 $ 47,048 $ 41,480 $ 31,715 $ 42,610
Federal funds sold 36,251 23,472 36,177 27,745 25,093
Mortgage loans held for sale 1,757 3,829 7,080 4,576 14,047
Securities available for sale 490,031 401,063 402,807 362,904 386,440
FHLB stock and other securities 7,347 7,347 7,347 6,180 6,180
Total loans 1,721,350 1,709,258 1,666,991 1,600,960 1,584,594
Allowance for loan losses 28,522 28,990 31,980 32,022 31,881
Total assets 2,389,262 2,289,755 2,258,600 2,121,066 2,148,262
Non-interest bearing deposits 423,350 429,297 412,584 376,972 396,159
Interest bearing deposits 1,557,587 1,453,154 1,452,260 1,359,912 1,385,534
Securities sold under agreements to repurchase 62,615 56,225 56,554 50,879 59,045
Federal funds purchased 55,295 31,861 28,782 36,821 16,552
Federal Home Loan Bank advances 34,329 32,422 31,859 31,872 31,882
Subordinated debentures - 30,900 30,900 30,900 30,900
Stockholders' equity 229,444 226,535 220,352 208,897 205,075
Total shares outstanding 14,609 14,554 14,509 13,958 13,915
Book value per share 15.71 15.57 15.19 14.97 14.74
Market value per share 31.92 28.33 24.53 22.50 22.42
 
Capital Ratios
Average stockholders' equity to average assets 9.77 % 9.82 % 9.96 % 9.89 % 9.60 %
Tier 1 risk-based capital 12.29 % 13.66 % 13.75 % 13.60 % 13.17 %
Total risk-based capital 13.54 % 14.91 % 15.00 % 14.86 % 14.42 %
Leverage 9.75 % 11.21 % 11.26 % 11.11 % 10.79 %
 
 
 

S.Y. Bancorp, Inc. Financial Information (unaudited)

Fourth Quarter 2013 Earnings Release
         
Five Quarter Comparison
12/31/13 9/30/13 6/30/13 3/31/13 12/31/12
Average Balance Sheet Data
Average federal funds sold $ 116,348 $ 75,705 $ 95,029 $ 110,472 $ 145,946
Average mortgage loans held for sale 3,582 5,685 6,471 7,851 13,418
Average investment securities 385,922 367,402 338,020 283,411 273,903
Average loans 1,713,062 1,674,049 1,644,886 1,585,326 1,573,469
Average earning assets 2,208,575 2,122,841 2,073,415 1,979,128 1,991,271
Average assets 2,351,127 2,264,937 2,206,477 2,105,996 2,129,501
Average interest bearing deposits 1,513,067 1,453,534 1,427,469 1,361,349 1,346,908
Average total deposits 1,949,209 1,867,229 1,821,671 1,732,947 1,723,811

Average securities sold under agreement to repurchase

66,244 64,652 54,576 57,335 60,918

Average federal funds purchased and other short term borrowings

17,102 19,628 21,839 19,643 17,487
Average Federal Home Loan Bank advances 34,341 31,970 31,864 31,876 59,180
Average subordinated debentures 29,221 30,900 30,900 30,900 30,900
Average interest bearing liabilities 1,659,975 1,600,684 1,566,648 1,501,103 1,515,393
Average stockholders' equity 229,685 222,528 219,871 208,201 204,502
 
Performance Ratios
Annualized return on average assets 1.07 % 1.35 % 1.16 % 1.30 % 1.22 %
Annualized return on average equity 10.90 % 13.70 % 11.69 % 13.18 % 12.67 %
Net interest margin, fully tax equivalent 3.61 % 3.79 % 3.72 % 3.83 % 3.78 %

Non-interest income to total revenue, fully tax equivalent

32.81 % 32.26 % 34.91 % 33.03 % 34.86 %
Efficiency ratio 64.80 % 58.72 % 63.72 % 55.76 % 59.15 %
 
Loans by Type
Commercial and industrial $ 510,739 $ 500,478 $ 474,255 $ 455,258 $ 426,930
Construction and development 129,590 135,786 133,464 125,624 131,253
Real estate mortgage - commercial investment 430,047 429,832 419,035 412,954 414,084
Real estate mortgage - owner occupied commercial 329,422 326,523 321,518 306,924 304,114
Real estate mortgage - 1-4 family residential 183,700 180,162 180,700 165,179 166,280
Home equity - 1st lien 40,251 38,364 38,598 37,182 39,363
Home equity - junior lien 63,403 63,983 65,486 62,896 65,790
Consumer 34,198 34,130 33,935 34,943 36,780
 
Asset Quality Data
Allowance for loan losses to total loans 1.66 % 1.70 % 1.92 % 2.00 % 2.01 %
Allowance for loan losses to average loans 1.66 % 1.73 % 1.94 % 2.02 % 2.03 %
Allowance for loan losses to non-performing loans 124.31 % 95.10 % 101.63 % 95.55 % 106.10 %
Nonaccrual loans $ 15,258 $ 20,284 $ 20,886 $ 20,561 $ 18,360
Troubled debt restructuring 7,249 8,585 8,565 10,999 10,969
Loans - 90 days past due & still accruing 437 1,615 2,017 1,952 719
Total non-performing loans 22,944 30,484 31,468 33,512 30,048
OREO and repossessed assets 5,592 6,565 7,619 5,720 7,364
Total non-performing assets 28,536 37,049 39,087 39,232 37,412
Non-performing loans to total loans 1.33 % 1.78 % 1.89 % 2.09 % 1.90 %
Non-performing assets to total assets 1.19 % 1.62 % 1.73 % 1.85 % 1.74 %
Net charge-offs to average loans (2) 0.12 % 0.26 % 0.08 % 0.14 % 0.12 %
Net charge-offs $ 2,043 $ 4,315 $ 1,367 $ 2,184 $ 1,839
 
Other Information
Total assets under management (in millions) $ 2,229 $ 2,140 $ 2,047 $ 2,009 $ 1,961
Full-time equivalent employees 519 510 511 488 495
 
(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
 

CONTACT:
S.Y. Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President, Treasurer and Chief Financial Officer