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 24, 2018
STOCK YARDS BANCORP, INC.
(Exact
name of registrant as specified in its charter)
Kentucky |
1-13661 |
61-1137529 |
(State or other jurisdiction of incorporation or organization) |
(Commission File Number)
|
(I.R.S. Employer 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ⃞ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ⃞
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. |
On October 24, 2018, Stock Yards 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, 2018. |
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 |
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 24, 2018 |
STOCK YARDS BANCORP, INC. |
||
|
||||
|
|
By: |
/s/ Nancy B. Davis |
|
Nancy B. Davis, Executive Vice |
||||
President, Treasurer and Chief |
||||
Financial Officer |
Exhibit 99.1
Stock Yards Bancorp Reports Record Earnings for the Third Quarter 2018 of $13.9 Million or $0.60 Per Diluted Share
LOUISVILLE, Ky.--(BUSINESS WIRE)--October 24, 2018--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, 2018. Total revenue, comprising net interest income and non-interest income, increased to $39.9 million for the third quarter of 2018 from $37.1 million for the third quarter of 2017. Net income for the third quarter of 2018 rose to $13.9 million or $0.60 per diluted share from $11.7 million or $0.51 per diluted share for the third quarter of 2017.
(dollar amounts in thousands, except per share data) | 3Q18 | 2Q18 | 3Q17 | |||||||||
Net interest income | $ | 28,521 | $ | 28,674 | $ | 26,173 | ||||||
Provision for loan losses | 735 | 1,235 | 150 | |||||||||
Non-interest income | 11,426 | 11,435 | 10,945 | |||||||||
Non-interest expense | 21,781 | 22,136 | 21,168 | |||||||||
Net income before income taxes | 17,431 | 16,738 | 15,800 | |||||||||
Income tax expense | 3,555 | 3,159 | 4,096 | |||||||||
Net income | $ | 13,876 | $ | 13,579 | $ | 11,704 | ||||||
Net income per share, diluted | $ | 0.60 | $ | 0.59 | $ | 0.51 | ||||||
Net interest margin | 3.79 | % | 3.88 | % | 3.66 | % | ||||||
Efficiency ratio | 54.43 | % | 55.07 | % | 56.72 | % | ||||||
Common equity Tier 1 capital ratio | 12.61 | % | 12.18 | % | 12.67 | % | ||||||
Annualized return on average equity | 15.67 | % | 15.94 | % | 14.03 | % | ||||||
Annualized return on average assets | 1.75 | % | 1.74 | % | 1.53 | % | ||||||
Key factors affecting the Company's performance for the third quarter of 2018 included:
"With net income reaching a record level for the third consecutive quarter, the Company's financial results again include a significant lift from tax reform and highlight the successful strategies we have pursued to grow and diversify our business," said James A. (Ja) Hillebrand, Chief Executive Officer. "These strategic underpinnings – across attractive markets and complementary service lines – have helped us not only achieve an enviable performance over the long term, but also continue to position Stock Yards Bank & Trust to capitalize on new opportunities as we extend our reach in the future.
"While loan production and growth did not meet our expectations in the third quarter, primarily because of softer demand in this seasonally slower period, a few large loan pay-offs and lower line of credit utilization, we remain confident in our market presence and position," Hillebrand continued. "Over the past year, we have organically increased our loan portfolio 9%, which has factored prominently in the additional $13.0 million of interest income year to date in 2018. Importantly, all three of our markets have contributed to this achievement. The year-over-year increase in the portfolio also highlights our continued strength in core lending categories like commercial and industrial loans, real estate mortgage for commercial investment, and owner occupied commercial real estate."
Hillebrand noted that, complementing the Company's higher year-over-year increase in the loan portfolio, credit quality also has remained historically strong. Reflecting this, non-performing assets (NPAs) at September 30, 2018, have declined to the lowest amount in five years.
"The continued strength of non-interest income continues to differentiate Stock Yards Bank & Trust and show diversity of our sources of revenue," Hillebrand added. "Chief among these, accounting for 47% of non-interest income, is our Wealth Management and Trust Group. With $2.97 billion of assets under management, it registered ongoing revenue growth this past quarter sequentially and was up 7% on a comparable quarter basis as it benefited from the addition of new customer relationships as well as a strong stock market during the third quarter. It remains on track to post a full-year revenue increase of approximately 5%-6%. In other fee-based areas, we continue to be pleased with the growth of revenue from debit and credit cards activities as well as treasury management, both of which have helped offset a general slowdown in mortgage banking caused by rising rates and a tight housing market."
Concluding, Hillebrand said, "While we were disappointed by the decline in our loan portfolio during the third quarter, we are on target with our pipeline for the remainder of the year, which should enable us to finish 2018 with loan growth in the mid-single digits. This progress, combined with continued solid credit quality and the strength of our fee-based services, position us for continued growth in 2019 as we continue to build our business the Stock Yards' way – one relationship at a time. It's a belief that has served us well for 114 years, it's a philosophy upon which we have grown in three attractive markets, and it's at the core of how we continue to set ourselves apart from peer community banks."
Third Quarter 2018 Compared with Third Quarter 2017
Total assets increased $169 million or 5% to $3.32 billion.
Total deposits increased $116 million or 5% to $2.60 billion.
Asset quality, which has trended within a narrow range over the past several years, remained at historically strong levels. While the Company is pleased with this performance, management recognizes the cyclical nature of banking and believes asset quality metrics will normalize over the long term, which would eventually result in higher provisioning for loan losses.
The Company remained "well capitalized" – the highest capital rating for financial institutions.
Net interest income – the Company's largest source of revenue – increased approximately $2.3 million or 9% to $28.5 million.
Non-interest income increased $481 thousand or 4% to $11.4 million.
Non-interest expense increased $613 thousand or 3% to $21.8 million.
The Company's effective tax rate decreased to 20.4% from 25.9%.
Third Quarter 2018 Compared with Second Quarter 2018
Total assets were essentially flat.
Total deposits increased $58 million.
Asset quality remained at historically strong levels.
Net interest income remained essentially flat.
Non-interest income remained essentially flat.
Non-interest expense was down 2%.
The Company's effective tax rate increased to 20.4% from 18.9% as stock-based compensation deductions largely occur in the first quarter and the proportional benefit diminishes as the year progresses.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.3 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 to evaluate capital adequacy.
Tangible Common Equity Ratio
(Dollars in thousands) |
||||||||||||
Sept. 30, |
June 30, |
Sept. 30, |
||||||||||
Total stockholders' equity | $ | 352,980 | $ | 345,515 | $ | 334,255 | ||||||
Less goodwill | (682 | ) | (682 | ) | (682 | ) | ||||||
Less core deposit intangible | (1,098 | ) | (1,139 | ) | (1,269 | ) | ||||||
Tangible common equity | $ | 351,200 | $ | 343,694 | $ | 332,304 | ||||||
Total assets | $ | 3,324,797 | $ | 3,323,840 | $ | 3,155,913 | ||||||
Less goodwill | (682 | ) | (682 | ) | (682 | ) | ||||||
Less core deposit intangible | (1,098 | ) | (1,139 | ) | (1,269 | ) | ||||||
Tangible assets | $ | 3,323,017 | $ | 3,322,019 | $ | 3,153,962 | ||||||
Total stockholders' equity to total assets | 10.62 | % | 10.40 | % | 10.59 | % | ||||||
Tangible common equity ratio | 10.57 | % | 10.35 | % | 10.54 | % | ||||||
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, 2017.
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||
Third Quarter 2018 Earnings Release | ||||||||||||||
(In thousands unless otherwise noted) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||
Income Statement Data | ||||||||||||||
Net interest income, fully tax equivalent (1) | $ | 28,590 | $ | 26,372 | $ | 84,751 | $ | 77,223 | ||||||
Interest income: | ||||||||||||||
Loans | $ | 30,359 | $ | 25,410 | $ | 86,877 | $ | 73,856 | ||||||
Federal funds sold and interest bearing deposits | 373 | 388 | 804 | 798 | ||||||||||
Mortgage loans held for sale | 42 | 48 | 121 | 145 | ||||||||||
Securities | 2,247 | 2,274 | 6,967 | 7,002 | ||||||||||
Total interest income | 33,021 | 28,120 | 94,769 | 81,801 | ||||||||||
Interest expense: | ||||||||||||||
Deposits | 3,972 | 1,593 | 8,723 | 4,237 | ||||||||||
Securities sold under agreements to repurchase and other short-term borrowings |
300 | 110 | 850 | 225 | ||||||||||
Federal Home Loan Bank (FHLB) advances | 228 | 244 | 692 | 715 | ||||||||||
Total interest expense | 4,500 | 1,947 | 10,265 | 5,177 | ||||||||||
Net interest income | 28,521 | 26,173 | 84,504 | 76,624 | ||||||||||
Provision for loan losses | 735 | 150 | 2,705 | 1,650 | ||||||||||
Net interest income after provision for loan losses | 27,786 | 26,023 | 81,799 | 74,974 | ||||||||||
Non-interest income: | ||||||||||||||
Wealth management and trust services | 5,380 | 5,025 | 16,224 | 15,272 | ||||||||||
Deposit service charges | 1,482 | 1,568 | 4,340 | 4,583 | ||||||||||
Debit and credit cards | 1,759 | 1,492 | 4,956 | 4,412 | ||||||||||
Treasury management | 1,151 | 1,083 | 3,311 | 3,187 | ||||||||||
Mortgage banking | 712 | 781 | 2,034 | 2,380 | ||||||||||
Gain (loss) on securities available for sale | - | 31 | - | 31 | ||||||||||
Net investment product sales commissions and fees | 444 | 404 | 1,245 | 1,147 | ||||||||||
Bank owned life insurance | 186 | 204 | 564 | 964 | ||||||||||
Other non-interest income | 312 | 357 | 1,096 | 1,116 | ||||||||||
Total non-interest income | 11,426 | 10,945 | 33,770 | 33,092 | ||||||||||
Non-interest expense: | ||||||||||||||
Compensation | 11,607 | 10,614 | 34,280 | 31,849 | ||||||||||
Employee benefits | 2,501 | 2,368 | 7,646 | 7,392 | ||||||||||
Net occupancy and equipment | 1,914 | 1,937 | 5,543 | 5,626 | ||||||||||
Technology and communication | 2,183 | 1,905 | 6,643 | 5,873 | ||||||||||
Marketing and business development | 740 | 611 | 2,191 | 1,743 | ||||||||||
Postage, printing, and supplies | 370 | 355 | 1,161 | 1,108 | ||||||||||
Legal and professional | 501 | 571 | 1,498 | 1,642 | ||||||||||
FDIC insurance | 238 | 242 | 718 | 716 | ||||||||||
Amortization/impairment of investments in tax credit partnerships | - | 616 | 58 | 1,847 | ||||||||||
Capital and deposit based taxes | 738 | 732 | 2,452 | 2,262 | ||||||||||
Other non-interest expenses | 989 | 1,217 | 2,754 | 3,314 | ||||||||||
Total non-interest expense | 21,781 | 21,168 | 64,944 | 63,372 | ||||||||||
Net income before income tax expense | 17,431 | 15,800 | 50,625 | 44,694 | ||||||||||
Income tax expense | 3,555 | 4,096 | 9,766 | 11,597 | ||||||||||
Net income | $ | 13,876 | $ | 11,704 | $ | 40,859 | $ | 33,097 | ||||||
Weighted average shares - basic | 22,636 | 22,542 | 22,613 | 22,524 | ||||||||||
Weighted average shares - diluted | 22,968 | 22,964 | 22,956 | 22,984 | ||||||||||
Net income per share, basic | $ | 0.61 | $ | 0.52 | $ | 1.81 | $ | 1.47 | ||||||
Net income per share, diluted | 0.60 | 0.51 | 1.78 | 1.44 | ||||||||||
Cash dividend declared per share | 0.25 | 0.20 | 0.71 | 0.59 | ||||||||||
Balance Sheet Data (at period end) | ||||||||||||||
Total loans | $ | 2,534,483 | $ | 2,335,120 | ||||||||||
Allowance for loan losses | 25,222 | 24,948 | ||||||||||||
Total assets | 3,324,797 | 3,155,913 | ||||||||||||
Non-interest bearing deposits | 705,386 | 676,824 | ||||||||||||
Interest bearing deposits | 1,892,652 | 1,805,142 | ||||||||||||
Federal Home Loan Bank advances | 48,500 | 50,110 | ||||||||||||
Stockholders' equity | 352,980 | 334,255 | ||||||||||||
Total shares outstanding | 22,746 | 22,669 | ||||||||||||
Book value per share | 15.52 | 14.75 | ||||||||||||
Market value per share | 36.30 | 38.00 | ||||||||||||
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||
Third Quarter 2018 Earnings Release | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||||
Average Balance Sheet Data | ||||||||||||||||||
Federal funds sold and interest bearing deposits | $ | 73,197 | $ | 120,927 | $ | 60,463 | $ | 97,543 | ||||||||||
Mortgage loans held for sale | 2,980 | 3,515 | 2,688 | 3,656 | ||||||||||||||
Securities available for sale | 372,251 | 439,601 | 396,943 | 460,044 | ||||||||||||||
FHLB stock and other securities | 10,370 | 7,666 | 9,004 | 6,801 | ||||||||||||||
Loans | 2,547,474 | 2,308,806 | 2,513,259 | 2,294,213 | ||||||||||||||
Earning assets | 2,990,401 | 2,861,144 | 2,965,364 | 2,843,364 | ||||||||||||||
Assets | 3,153,406 | 3,027,088 | 3,125,826 | 3,006,853 | ||||||||||||||
Interest bearing deposits | 1,874,853 | 1,800,653 | 1,871,545 | 1,819,672 | ||||||||||||||
Total deposits | 2,590,156 | 2,498,468 | 2,567,336 | 2,500,503 | ||||||||||||||
Securities sold under agreement to repurchase other short term borrowings |
116,287 | 101,341 | 121,401 | 88,137 | ||||||||||||||
Federal Home Loan Bank advances | 48,612 | 50,221 | 48,927 | 50,541 | ||||||||||||||
Interest bearing liabilities | 2,039,752 | 1,952,215 | 2,041,873 | 1,958,350 | ||||||||||||||
Stockholders' equity | 351,376 | 330,864 | 343,249 | 324,235 | ||||||||||||||
Performance Ratios | ||||||||||||||||||
Annualized return on average assets | 1.75 | % | 1.53 | % | 1.75 | % | 1.47 | % | ||||||||||
Annualized return on average equity | 15.67 | % | 14.03 | % | 15.92 | % | 13.65 | % | ||||||||||
Net interest margin, fully tax equivalent | 3.79 | % | 3.66 | % | 3.82 | % | 3.63 | % | ||||||||||
Non-interest income to total revenue, fully tax equivalent |
28.55 | % | 29.33 | % | 28.49 | % | 30.00 | % | ||||||||||
Efficiency ratio, fully tax equivalent | 54.43 | % | 56.72 | % | 54.80 | % | 57.45 | % | ||||||||||
Capital Ratios | ||||||||||||||||||
Total stockholders' equity to total assets | 10.62 | % | 10.59 | % | ||||||||||||||
Average stockholders' equity to average assets | 11.14 | % | 10.93 | % | 10.98 | % | 10.78 | % | ||||||||||
Common equity tier 1 capital | 12.61 | % | 12.67 | % | ||||||||||||||
Tier 1 risk-based capital | 12.61 | % | 12.67 | % | ||||||||||||||
Total risk-based capital | 13.50 | % | 13.64 | % | ||||||||||||||
Leverage | 11.40 | % | 11.02 | % | ||||||||||||||
Loans by Type | ||||||||||||||||||
Commercial and industrial | $ | 816,252 | $ | 750,728 | ||||||||||||||
Construction and development | 233,107 | 195,299 | ||||||||||||||||
Real estate mortgage - commercial investment | 630,000 | 576,810 | ||||||||||||||||
Real estate mortgage - owner occupied commercial | 420,098 | 397,804 | ||||||||||||||||
Real estate mortgage - 1-4 family residential | 274,409 | 261,707 | ||||||||||||||||
Home equity - first lien | 46,062 | 51,925 | ||||||||||||||||
Home equity - junior lien | 67,105 | 63,416 | ||||||||||||||||
Consumer | 47,450 | 37,431 | ||||||||||||||||
Total loans | $ | 2,534,483 | $ | 2,335,120 | ||||||||||||||
Asset Quality Data | ||||||||||||||||||
Allowance for loan losses to total loans | 1.00 | % | 1.07 | % | ||||||||||||||
Allowance for loan losses to average loans | 1.00 | % | 1.09 | % | ||||||||||||||
Allowance for loan losses to non-performing loans | 505.86 | % | 411.14 | % | ||||||||||||||
Nonaccrual loans | $ | 3,982 | $ | 4,858 | ||||||||||||||
Troubled debt restructuring | 792 | 949 | ||||||||||||||||
Loans - 90 days past due & still accruing | 212 | 261 | ||||||||||||||||
Total non-performing loans | 4,986 | 6,068 | ||||||||||||||||
OREO and repossessed assets | 1,604 | 2,640 | ||||||||||||||||
Total non-performing assets | 6,590 | 8,708 | ||||||||||||||||
Non-performing loans to total loans | 0.20 | % | 0.26 | % | ||||||||||||||
Non-performing assets to total assets | 0.20 | % | 0.28 | % | ||||||||||||||
Net charge-offs to average loans (2) | 0.02 | % | 0.01 | % | 0.09 | % | 0.03 | % | ||||||||||
Net charge-offs | $ | 386 | $ | 317 | $ | 2,368 | $ | 709 | ||||||||||
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
Third Quarter 2018 Earnings Release | ||||||||||||||||||||
Five Quarter Comparison | ||||||||||||||||||||
9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 9/30/17 | ||||||||||||||||
Income Statement Data | ||||||||||||||||||||
Net interest income, fully tax equivalent (1) | $ | 28,590 | $ | 28,759 | $ | 27,402 | $ | 27,223 | $ | 26,372 | ||||||||||
Net interest income | $ | 28,521 | $ | 28,674 | $ | 27,309 | $ | 27,029 | $ | 26,173 | ||||||||||
Provision for loan losses | 735 | 1,235 | 735 | 900 | 150 | |||||||||||||||
Net interest income after provision for loan losses | 27,786 | 27,439 | 26,574 | 26,129 | 26,023 | |||||||||||||||
Wealth management and trust services | 5,380 | 5,344 | 5,500 | 5,233 | 5,025 | |||||||||||||||
Deposit service charges | 1,482 | 1,447 | 1,411 | 1,589 | 1,568 | |||||||||||||||
Debit and credit cards | 1,759 | 1,689 | 1,508 | 1,567 | 1,492 | |||||||||||||||
Treasury management | 1,151 | 1,113 | 1,047 | 1,110 | 1,083 | |||||||||||||||
Mortgage banking | 712 | 746 | 576 | 841 | 781 | |||||||||||||||
Gain (loss) on securities available for sale | - | - | - | (263 | ) | 31 | ||||||||||||||
Net investment product sales commissions and fees | 444 | 397 | 404 | 482 | 404 | |||||||||||||||
Bank owned life insurance | 186 | 191 | 187 | 195 | 204 | |||||||||||||||
Other non-interest income | 312 | 508 | 276 | 653 | 357 | |||||||||||||||
Total non-interest income | 11,426 | 11,435 | 10,909 | 11,407 | 10,945 | |||||||||||||||
Compensation | 11,607 | 11,703 | 10,970 | 10,732 | 10,614 | |||||||||||||||
Employee benefits | 2,501 | 2,512 | 2,633 | 2,595 | 2,368 | |||||||||||||||
Net occupancy and equipment | 1,914 | 1,811 | 1,818 | 1,767 | 1,937 | |||||||||||||||
Technology and communication | 2,183 | 2,264 | 2,196 | 2,084 | 1,905 | |||||||||||||||
Marketing and business development | 740 | 805 | 646 | 973 | 611 | |||||||||||||||
Postage, printing, and supplies | 370 | 400 | 391 | 367 | 355 | |||||||||||||||
Legal and professional | 501 | 504 | 493 | 751 | 571 | |||||||||||||||
FDIC insurance | 238 | 238 | 242 | 244 | 242 | |||||||||||||||
Amortization/impairment of investment in | ||||||||||||||||||||
tax credit partnerships | - | 58 | - | 5,277 | 616 | |||||||||||||||
Capital and deposit based taxes | 738 | 862 | 852 | 1,178 | 732 | |||||||||||||||
Other non-interest expenses | 989 | 979 | 786 | 1,080 | 1,217 | |||||||||||||||
Total non-interest expense | 21,781 | 22,136 | 21,027 | 27,048 | 21,168 | |||||||||||||||
Net income before income tax expense | 17,431 | 16,738 | 16,456 | 10,488 | 15,800 | |||||||||||||||
Income tax expense | 3,555 | 3,159 | 3,052 | 5,542 | 4,096 | |||||||||||||||
Net income | $ | 13,876 | $ | 13,579 | $ | 13,404 | $ | 4,946 | $ | 11,704 | ||||||||||
Weighted average shares - basic | 22,636 | 22,625 | 22,577 | 22,555 | 22,542 | |||||||||||||||
Weighted average shares - diluted | 22,968 | 22,979 | 22,942 | 22,993 | 22,964 | |||||||||||||||
Net income per share, basic | $ | 0.61 | $ | 0.60 | $ | 0.59 | $ | 0.22 | $ | 0.52 | ||||||||||
Net income per share, diluted | 0.60 | 0.59 | 0.58 | 0.22 | 0.51 | |||||||||||||||
Cash dividend declared per share | 0.25 | 0.23 | 0.23 | 0.21 | 0.20 | |||||||||||||||
Balance Sheet Data (at period end) | ||||||||||||||||||||
Cash and due from banks | $ | 66,029 | $ | 44,052 | $ | 41,622 | $ | 41,982 | $ | 47,700 | ||||||||||
Federal funds sold and interest bearing deposits | 54,451 | 10,948 | 15,254 | 97,266 | 81,378 | |||||||||||||||
Mortgage loans held for sale | 2,533 | 2,053 | 4,239 | 2,964 | 5,459 | |||||||||||||||
Securities available for sale | 550,091 | 574,570 | 598,081 | 574,524 | 571,522 | |||||||||||||||
FHLB stock and other securities | 10,370 | 10,370 | 8,876 | 7,646 | 7,666 | |||||||||||||||
Total loans | 2,534,483 | 2,577,960 | 2,512,388 | 2,409,570 | 2,335,120 | |||||||||||||||
Allowance for loan losses | 25,222 | 24,873 | 24,203 | 24,885 | 24,948 | |||||||||||||||
Total assets | 3,324,797 | 3,323,840 | 3,285,480 | 3,239,646 | 3,155,913 | |||||||||||||||
Non-interest bearing deposits | 705,386 | 715,974 | 681,936 | 674,697 | 676,824 | |||||||||||||||
Interest bearing deposits | 1,892,652 | 1,824,487 | 1,891,428 | 1,903,598 | 1,805,142 | |||||||||||||||
Securities sold under agreements to repurchase | 53,883 | 58,808 | 67,892 | 70,473 | 71,863 | |||||||||||||||
Federal funds purchased and other short-term borrowings | 231,344 | 286,460 | 215,233 | 161,352 | 161,961 | |||||||||||||||
Federal Home Loan Bank advances | 48,500 | 48,821 | 49,140 | 49,458 | 50,110 | |||||||||||||||
Stockholders' equity | 352,980 | 345,515 | 337,702 | 333,644 | 334,255 | |||||||||||||||
Total shares outstanding | 22,746 | 22,746 | 22,730 | 22,679 | 22,669 | |||||||||||||||
Book value per share | 15.52 | 15.19 | 14.86 | 14.71 | 14.75 | |||||||||||||||
Market value per share | 36.30 | 38.15 | 35.10 | 37.70 | 38.00 | |||||||||||||||
Capital Ratios | ||||||||||||||||||||
Total stockholders' equity to total assets | 10.62 | % | 10.40 | % | 10.28 | % | 10.30 | % | 10.59 | % | ||||||||||
Average stockholders' equity to average assets | 11.14 | % | 10.91 | % | 10.89 | % | 10.81 | % | 10.93 | % | ||||||||||
Common equity tier 1 capital | 12.61 | % | 12.18 | % | 12.16 | % | 12.57 | % | 12.67 | % | ||||||||||
Tier 1 risk-based capital | 12.61 | % | 12.18 | % | 12.16 | % | 12.57 | % | 12.67 | % | ||||||||||
Total risk-based capital | 13.50 | % | 13.06 | % | 13.04 | % | 13.52 | % | 13.64 | % | ||||||||||
Leverage | 11.40 | % | 11.19 | % | 11.05 | % | 10.70 | % | 11.02 | % | ||||||||||
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
Third Quarter 2018 Earnings Release | ||||||||||||||||||||
Five Quarter Comparison | ||||||||||||||||||||
9/30/18 | 6/30/18 | 3/31/18 | 12/31/17 | 9/30/17 | ||||||||||||||||
Average Balance Sheet Data | ||||||||||||||||||||
Average Federal funds sold and interest | ||||||||||||||||||||
bearing deposits | $ | 73,197 | $ | 36,985 | $ | 71,186 | $ | 159,217 | $ | 120,927 | ||||||||||
Average mortgage loans held for sale | 2,980 | 2,975 | 2,098 | 3,213 | 3,515 | |||||||||||||||
Average investment securities | 372,251 | 401,369 | 417,708 | 455,727 | 439,601 | |||||||||||||||
Average loans | 2,547,474 | 2,540,537 | 2,450,703 | 2,352,310 | 2,308,806 | |||||||||||||||
Average earning assets | 2,990,401 | 2,973,704 | 2,931,338 | 2,959,817 | 2,861,144 | |||||||||||||||
Average assets | 3,153,406 | 3,132,494 | 3,090,891 | 3,128,765 | 3,027,088 | |||||||||||||||
Average interest bearing deposits | 1,874,853 | 1,846,730 | 1,893,256 | 1,900,650 | 1,800,653 | |||||||||||||||
Average total deposits | 2,590,156 | 2,548,372 | 2,563,184 | 2,594,225 | 2,498,468 | |||||||||||||||
Average securities sold under agreement to repurchase and other short term borrowings |
116,287 | 150,173 | 97,535 | 97,474 | 101,341 | |||||||||||||||
Average Federal Home Loan Bank advances | 48,612 | 48,929 | 49,247 | 49,583 | 50,221 | |||||||||||||||
Average interest bearing liabilities | 2,039,752 | 2,045,832 | 2,040,038 | 2,047,707 | 1,952,215 | |||||||||||||||
Average stockholders' equity | 351,376 | 341,637 | 336,570 | 338,368 | 330,864 | |||||||||||||||
Performance Ratios | ||||||||||||||||||||
Annualized return on average assets | 1.75 | % | 1.74 | % | 1.76 | % | 0.63 | % | 1.53 | % | ||||||||||
Annualized return on average equity | 15.67 | % | 15.94 | % | 16.15 | % | 5.80 | % | 14.03 | % | ||||||||||
Net interest margin, fully tax equivalent | 3.79 | % | 3.88 | % | 3.79 | % | 3.65 | % | 3.66 | % | ||||||||||
Non-interest income to total revenue, fully tax equivalent |
28.55 | % | 28.45 | % | 28.47 | % | 29.53 | % | 29.33 | % | ||||||||||
Efficiency ratio, fully tax equivalent | 54.43 | % | 55.07 | % | 54.89 | % | 70.02 | % | 56.72 | % | ||||||||||
Loans by Type | ||||||||||||||||||||
Commercial and industrial | $ | 816,252 | $ | 855,015 | $ | 843,478 | $ | 779,014 | $ | 750,728 | ||||||||||
Construction and development | 233,107 | 238,224 | 235,872 | 214,900 | 195,299 | |||||||||||||||
Real estate mortgage - commercial investment | 630,000 | 622,777 | 590,942 | 594,902 | 576,810 | |||||||||||||||
Real estate mortgage - owner occupied commercial | 420,098 | 420,999 | 407,733 | 398,685 | 397,804 | |||||||||||||||
Real estate mortgage - 1-4 family residential | 274,409 | 277,735 | 272,900 | 262,110 | 261,707 | |||||||||||||||
Home equity - 1st lien | 46,062 | 53,257 | 51,595 | 57,110 | 51,925 | |||||||||||||||
Home equity - junior lien | 67,105 | 66,323 | 64,108 | 63,981 | 63,416 | |||||||||||||||
Consumer | 47,450 | 43,630 | 45,760 | 38,868 | 37,431 | |||||||||||||||
Total loans | $ | 2,534,483 | $ | 2,577,960 | $ | 2,512,388 | $ | 2,409,570 | $ | 2,335,120 | ||||||||||
Asset Quality Data | ||||||||||||||||||||
Allowance for loan losses to total loans | 1.00 | % | 0.96 | % | 0.96 | % | 1.03 | % | 1.07 | % | ||||||||||
Allowance for loan losses to average loans | 1.00 | % | 0.99 | % | 0.99 | % | 1.07 | % | 1.09 | % | ||||||||||
Allowance for loan losses to non-performing loans | 505.86 | % | 337.35 | % | 197.33 | % | 337.10 | % | 411.14 | % | ||||||||||
Nonaccrual loans | $ | 3,982 | $ | 6,422 | $ | 11,422 | $ | 6,511 | $ | 4,858 | ||||||||||
Troubled debt restructuring | 792 | 817 | 843 | 869 | 949 | |||||||||||||||
Loans - 90 days past due and still accruing | 212 | 134 | - | 2 | 261 | |||||||||||||||
Total non-performing loans | 4,986 | 7,373 | 12,265 | 7,382 | 6,068 | |||||||||||||||
OREO and repossessed assets | 1,604 | 360 | 360 | 2,640 | 2,640 | |||||||||||||||
Total non-performing assets | 6,590 | 7,733 | 12,625 | 10,022 | 8,708 | |||||||||||||||
Non-performing loans to total loans | 0.20 | % | 0.29 | % | 0.49 | % | 0.31 | % | 0.26 | % | ||||||||||
Non-performing assets to total assets | 0.20 | % | 0.23 | % | 0.38 | % | 0.31 | % | 0.28 | % | ||||||||||
Net charge-offs to average loans | 0.02 | % | 0.02 | % | 0.06 | % | 0.04 | % | 0.01 | % | ||||||||||
Net charge-offs (recoveries) | $ | 386 | $ | 565 | $ | 1,417 | $ | 963 | $ | 317 | ||||||||||
Other Information | ||||||||||||||||||||
Total assets under management (in millions) | $ | 2,969 | $ | 2,852 | $ | 2,883 | $ | 2,809 | $ | 2,746 | ||||||||||
Full-time equivalent employees | 593 | 581 | 589 | 580 | 581 | |||||||||||||||
(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:
Stock Yards Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive
Vice President and
Chief Financial Officer