UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
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EXCHANGE ACT OF 1934
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Date of Report (date of earliest event reported): July 24, 2019
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STOCK YARDS BANCORP, INC.
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(Exact name of registrant as specified in its charter)
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Kentucky
(State or other jurisdiction of incorporation or organization) |
1-13661
(Commission File Number) |
61-1137529
(I.R.S. Employer Identification No.) |
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1040 East Main Street, Louisville, Kentucky, 40206
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(Address of principal executive offices)
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(502) 582-2571
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(Registrant's telephone number, including area code)
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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:
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☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading
Symbol(s)
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Name of each exchange
on which registered
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Common stock, no par value per share
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SYBT
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The NASDAQ Stock Market, LLC
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Emerging growth company
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☐
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ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
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On July 24, 2019, 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 second
quarter ended June 30, 2019.
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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.
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ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.
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D. Exhibits
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SIGNATURE
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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.
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STOCK YARDS BANCORP, INC. | |||
Date: July 24, 2019
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By:
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/s/ T. Clay Stinnett |
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T. Clay Stinnett, Executive Vice | |||
President, Treasurer and Chief | |||
Financial Officer |
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Exhibit 99.1
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Record Loan Production;
Record Diluted Earnings Per Share,
Both Including and Excluding Non-Recurring Items
LOUISVILLE, Ky.--(BUSINESS WIRE)--July 24, 2019--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 record results for both the second quarter and six months ended June 30, 2019. Total revenue, comprising net interest income and non-interest income, increased 7% to $43.0 million for the second quarter of 2019 from $40.1 million for the second quarter of 2018. Net income before income taxes increased 5% to $17.6 million for the second quarter of 2019 from $16.7 million for the comparable quarter, despite incurring $1.3 million in one-time transaction costs related to the acquisition of King Bancorp, Inc. Net income for the second quarter of 2019, which includes a non‑recurring state income tax benefit, rose 22% to $16.5 million or $0.72 per diluted share from $13.6 million or $0.59 per diluted share for the second quarter of 2018.
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(dollar amounts in thousands, except per share data) |
2Q19 |
1Q19 |
2Q18 |
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Net interest income |
$ |
30,774 |
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$ |
29,657 |
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$ |
28,674 |
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Provision for loan and lease losses |
– |
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|
600 |
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1,235 |
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Non-interest income |
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12,263 |
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11,062 |
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11,435 |
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Non-interest expenses |
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25,464 |
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22,639 |
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22,136 |
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|||
Income before income tax expense |
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17,573 |
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17,480 |
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16,738 |
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|||
Income tax expense |
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1,030 |
|
|
1,839 |
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|
3,159 |
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|||
Net income |
$ |
16,543 |
|
$ |
15,641 |
|
$ |
13,579 |
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|||
Net income per share, diluted |
$ |
0.72 |
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$ |
0.68 |
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$ |
0.59 |
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Net interest margin |
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3.81 |
% |
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3.89 |
% |
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3.88 |
% |
|||
Efficiency ratio |
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59.09 |
% |
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55.52 |
% |
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55.07 |
% |
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Tangible common equity to tangible assets (1) |
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10.85 |
% |
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11.47 |
% |
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10.35 |
% |
|||
Annualized return on average equity |
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17.40 |
% |
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17.09 |
% |
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15.94 |
% |
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Annualized return on average assets |
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1.93 |
% |
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1.94 |
% |
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1.74 |
% |
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Key factors affecting the Company’s results for the second quarter of 2019 included:
“As our record results reflect, Stock Yards Bancorp had a very successful second quarter,” said James A. (Ja) Hillebrand, Chief Executive Officer. “We posted solid net income, return on average assets and return on average equity. Record loan production and strong net loan growth drove the net interest income increase of $2.1 million or 7% compared with the second quarter of 2018. Our loan portfolio increased $186 million compared to June 30, 2018, and $216 million compared to December 31, 2018, with $160 million of this growth in both comparisons attributable to the KSB acquisition. Moreover, we ended the second quarter with a very robust loan pipeline leading into the summer months, positioning the Company for continued heightened loan production. Despite such growth, we are committed to preserving credit quality, as evidenced by our key metrics that remain at sound levels and are some of the highest among community banks.
“Non-interest income remained strong and continues to represent diversified revenue streams poised for attractive and predictable long-term growth,” Hillebrand continued. “The WM&T group, with approximately $3.1 billion of assets under management, continued to be a leading source of fee income, with revenues increasing 6% versus the year-earlier period and contributing 46% of total non-interest income in the second quarter of 2019. Debit/credit card income and treasury management fees combined grew 20% to account for 27% of second quarter 2019 total non-interest income. These diverse sources of revenue remain key to long-term stability in our growth and demonstrate our sound business model.”
Hillebrand also noted that, as a result of the KSB transaction and proximity of acquired branch locations to existing Stock Yards branch locations, the Company expects to divest three acquired branch locations in Louisville during the third quarter of 2019. Also in the third quarter, the Company will open a new branch location in Mt. Washington, Bullitt County, an area that has expanded significantly over the last several years and represents a natural extension of the Company’s concentrated presence in metropolitan Louisville.
In closing, Hillebrand said, “The outstanding results for the second quarter reflect healthy economies in our geographic locations, diversified revenue streams, the hard work of over 600 dedicated employees and solid execution of our strategic business plan. As evidenced by the second quarter authorization of a share repurchase plan, our Board is also highly optimistic about the Company’s future. I am pleased to announce that we have repurchased approximately 107 thousand shares of stock at a weighted average cost of $34.15 per share during the quarter. We are excited about the remainder of the year, supported by attractive business fundamentals, a robust loan production pipeline and the opportunity to welcome our new KSB customers to our broad suite of product offerings. Considering the solid fundamentals driving our business, the economic vibrancy of the markets we serve, and the opportunities we continue to see ahead as we pursue long-term growth, we remain confident about our future and our ability to continue to reward our shareholders for their loyalty.”
Second Quarter 2019 Compared with Second Quarter 2018
Net interest income – the Company’s largest source of revenue – increased approximately $2.1 million or 7% to $30.8 million.
Non-interest income increased $828 thousand or 7% to $12.3 million.
Non-interest expenses increased $3.3 million or 15% to $25.5 million.
The Company’s effective tax rate declined to 5.9% from 18.9%.
June 30, 2019 Compared with June 30, 2018
Total loans increased $186 million or 7% to $2.8 billion.
Total deposits increased $343 million or 14% to $2.9 billion.
Asset quality, which has remained exceptional and has trended within a narrow range over the past several years, remains sound. 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 will eventually result in higher provisioning for loan and lease losses.
The Company remained “well capitalized” – the highest capital rating for financial institutions.
Second Quarter 2019 Compared to First Quarter 2019
Net interest margin decreased eight basis points to 3.81% from 3.89% primarily due to the following:
Net interest income increased 4%.
Non-interest income increased 11%.
Non-interest expenses increased 12%.
The Company’s effective tax rate declined to 5.9% for the second quarter of 2019 from 10.5% for the first quarter of 2019.
June 30, 2019 Compared to March 31, 2019
Total loans increased $238 million or 9%.
Total deposits increased $131 million or 5%.
Asset quality remained at historically strong levels.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $3.5 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.
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 subsidiary operates; competition for the Company’s customers from other providers of financial services; government legislation and regulation, which change 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, 2018.
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||
Second Quarter 2019 Earnings Release | ||||||||||||
(In thousands unless otherwise noted) | ||||||||||||
Three Months Ended |
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Six Months Ended |
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June 30, |
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June 30, |
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Income Statement Data |
2019 |
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2018 |
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2019 |
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2018 |
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Net interest income, fully tax equivalent (2) |
$ |
30,829 |
$ |
28,759 |
$ |
60,542 |
$ |
56,161 |
||||
Interest income: | ||||||||||||
Loans and leases |
$ |
33,419 |
$ |
29,456 |
$ |
64,963 |
$ |
56,518 |
||||
Federal funds sold and interest bearing due from banks |
|
830 |
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163 |
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1,563 |
|
431 |
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Mortgage loans held for sale |
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43 |
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44 |
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80 |
|
79 |
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Securities |
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2,676 |
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2,341 |
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5,391 |
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4,720 |
||||
Total interest income |
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36,968 |
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32,004 |
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71,997 |
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61,748 |
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Interest expense: | ||||||||||||
Deposits |
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5,652 |
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2,674 |
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10,718 |
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4,751 |
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Securities sold under agreements to repurchase and other short-term borrowings |
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92 |
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427 |
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177 |
|
550 |
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Federal Home Loan Bank (FHLB) advances and long-term debt |
|
450 |
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229 |
|
671 |
|
464 |
||||
Total interest expense |
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6,194 |
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3,330 |
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11,566 |
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5,765 |
||||
Net interest income |
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30,774 |
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28,674 |
|
60,431 |
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55,983 |
||||
Provision for loan and lease losses |
|
- |
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1,235 |
|
600 |
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1,970 |
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Net interest income after provision for loan and lease losses |
|
30,774 |
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27,439 |
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59,831 |
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54,013 |
||||
Non-interest income: | ||||||||||||
Wealth management and trust services |
|
5,662 |
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5,344 |
|
11,101 |
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10,844 |
||||
Deposit service charges |
|
1,336 |
|
1,447 |
|
2,583 |
|
2,858 |
||||
Debit and credit card income |
|
2,168 |
|
1,689 |
|
3,912 |
|
3,197 |
||||
Treasury management fees |
|
1,202 |
|
1,113 |
|
2,359 |
|
2,160 |
||||
Mortgage banking income |
|
796 |
|
746 |
|
1,278 |
|
1,322 |
||||
Net investment product sales commissions and fees |
|
364 |
|
397 |
|
720 |
|
801 |
||||
Bank owned life insurance |
|
184 |
|
191 |
|
362 |
|
378 |
||||
Other |
|
551 |
|
508 |
|
1,010 |
|
784 |
||||
Total non-interest income |
|
12,263 |
|
11,435 |
|
23,325 |
|
22,344 |
||||
Non-interest expenses: | ||||||||||||
Compensation |
|
12,715 |
|
11,703 |
|
24,516 |
|
22,673 |
||||
Employee benefits |
|
2,908 |
|
2,512 |
|
5,550 |
|
5,145 |
||||
Net occupancy and equipment |
|
1,976 |
|
1,811 |
|
3,834 |
|
3,629 |
||||
Technology and communication |
|
1,848 |
|
1,685 |
|
3,621 |
|
3,315 |
||||
Debit and credit card processing |
|
631 |
|
579 |
|
1,218 |
|
1,145 |
||||
Marketing and business development |
|
903 |
|
805 |
|
1,528 |
|
1,451 |
||||
Postage, printing, and supplies |
|
410 |
|
400 |
|
816 |
|
791 |
||||
Legal and professional |
|
1,523 |
|
504 |
|
2,057 |
|
997 |
||||
FDIC insurance |
|
248 |
|
238 |
|
486 |
|
480 |
||||
Amortization/impairment of investments in tax credit partnerships |
|
52 |
|
58 |
|
104 |
|
58 |
||||
Capital and deposit based taxes |
|
967 |
|
862 |
|
1,871 |
|
1,714 |
||||
Other |
|
1,283 |
|
979 |
|
2,502 |
|
1,765 |
||||
Total non-interest expenses |
|
25,464 |
|
22,136 |
|
48,103 |
|
43,163 |
||||
Income before income tax expense |
|
17,573 |
|
16,738 |
|
35,053 |
|
33,194 |
||||
Income tax expense |
|
1,030 |
|
3,159 |
|
2,869 |
|
6,211 |
||||
Net income |
$ |
16,543 |
$ |
13,579 |
$ |
32,184 |
$ |
26,983 |
||||
Net income per share - Basic |
$ |
0.73 |
$ |
0.60 |
$ |
1.42 |
$ |
1.19 |
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Net income per share - Diluted |
|
0.72 |
|
0.59 |
|
1.40 |
|
1.17 |
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Cash dividend declared per share |
|
0.26 |
|
0.23 |
|
0.51 |
|
0.46 |
||||
Weighted average shares - Basic |
|
22,689 |
|
22,625 |
|
22,675 |
|
22,601 |
||||
Weighted average shares - Diluted |
|
22,949 |
|
22,967 |
|
22,948 |
|
22,959 |
||||
June 30, |
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Balance Sheet Data |
2019 |
|
2018 |
|||||||||
Loans and leases |
$ |
2,763,880 |
$ |
2,577,960 |
||||||||
Allowance for loan and lease losses |
|
26,416 |
|
24,873 |
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Total assets |
|
3,463,823 |
|
3,323,840 |
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Non-interest bearing deposits |
|
777,652 |
|
715,974 |
||||||||
Interest bearing deposits |
|
2,105,801 |
|
1,824,487 |
||||||||
FHLB advances |
|
84,279 |
|
48,821 |
||||||||
Stockholders' equity |
|
389,365 |
|
345,515 |
||||||||
Total shares outstanding |
|
22,721 |
|
22,746 |
||||||||
Book value per share (1) |
$ |
17.14 |
$ |
15.19 |
||||||||
Tangible common equity per share (1) |
|
16.46 |
|
15.11 |
||||||||
Market value per share |
|
36.15 |
|
38.15 |
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||
Second Quarter 2019 Earnings Release | ||||||||||||||||
Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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Average Balance Sheet Data |
2019 |
2018 |
2019 |
2018 |
||||||||||||
Federal funds sold and interest bearing due from banks |
$ |
137,130 |
|
$ |
36,985 |
|
$ |
129,701 |
|
$ |
53,991 |
|
||||
Mortgage loans held for sale |
|
3,794 |
|
|
2,975 |
|
|
2,766 |
|
|
2,539 |
|
||||
Securities available for sale |
|
435,391 |
|
|
401,369 |
|
|
436,498 |
|
|
409,494 |
|
||||
FHLB stock and other securities |
|
10,590 |
|
|
8,925 |
|
|
10,392 |
|
|
8,310 |
|
||||
Loans and leases |
|
2,668,058 |
|
|
2,540,537 |
|
|
2,603,878 |
|
|
2,495,868 |
|
||||
Total earning assets |
|
3,244,941 |
|
|
2,973,704 |
|
|
3,173,069 |
|
|
2,952,638 |
|
||||
Total assets |
|
3,436,175 |
|
|
3,132,494 |
|
|
3,354,172 |
|
|
3,111,807 |
|
||||
Interest bearing deposits |
|
2,112,768 |
|
|
1,846,730 |
|
|
2,080,976 |
|
|
1,869,864 |
|
||||
Total deposits |
|
2,867,360 |
|
|
2,548,372 |
|
|
2,805,872 |
|
|
2,555,738 |
|
||||
Securities sold under agreement to repurchase other short-term borrowings |
|
51,743 |
|
|
|
150,173 |
|
|
|
50,357 |
|
|
|
124,000 |
|
|
FHLB advances and other long-term borrowings |
|
74,420 |
|
|
48,929 |
|
|
61,264 |
|
|
49,087 |
|
||||
Total interest bearing liabilities |
|
2,238,931 |
|
|
2,045,832 |
|
|
2,192,597 |
|
|
2,042,951 |
|
||||
Total stockholders' equity |
|
381,270 |
|
|
341,637 |
|
|
376,198 |
|
|
339,117 |
|
||||
Performance Ratios | ||||||||||||||||
Annualized return on average assets |
|
1.93 |
% |
|
1.74 |
% |
|
1.93 |
% |
|
1.75 |
% |
||||
Annualized return on average equity |
|
17.40 |
% |
|
15.94 |
% |
|
17.25 |
% |
|
16.05 |
% |
||||
Net interest margin, fully tax equivalent |
|
3.81 |
% |
|
3.88 |
% |
|
3.85 |
% |
|
3.84 |
% |
||||
Non-interest income to total revenue, fully tax equivalent |
|
28.46 |
% |
|
28.45 |
% |
|
27.81 |
% |
|
28.46 |
% |
||||
Efficiency ratio, fully tax equivalent (3) |
|
59.09 |
% |
|
55.07 |
% |
|
57.36 |
% |
|
54.98 |
% |
||||
Capital Ratios | ||||||||||||||||
Total stockholders' equity to total assets (1) |
|
11.24 |
% |
|
10.40 |
% |
||||||||||
Tangible common equity to tangible assets (1) |
|
10.85 |
% |
|
10.35 |
% |
||||||||||
Average stockholders' equity to average assets |
|
11.22 |
% |
|
10.90 |
% |
||||||||||
Total risk-based capital |
|
12.67 |
% |
|
13.06 |
% |
||||||||||
Common equity tier 1 risk-based capital |
|
11.82 |
% |
|
12.18 |
% |
||||||||||
Tier 1 risk-based capital |
|
11.82 |
% |
|
12.18 |
% |
||||||||||
Leverage |
|
10.91 |
% |
|
11.19 |
% |
||||||||||
Loans by Type | ||||||||||||||||
Commercial and industrial |
$ |
860,085 |
|
$ |
855,015 |
|
||||||||||
Construction and land development |
|
257,801 |
|
|
238,224 |
|
||||||||||
Real estate mortgage - commercial investment |
|
696,421 |
|
|
622,777 |
|
||||||||||
Real estate mortgage - owner occupied commercial |
|
452,719 |
|
|
420,999 |
|
||||||||||
Real estate mortgage - 1-4 family residential |
|
338,957 |
|
|
277,735 |
|
||||||||||
Home equity - first lien |
|
46,012 |
|
|
53,257 |
|
||||||||||
Home equity - junior lien |
|
67,948 |
|
|
66,323 |
|
||||||||||
Consumer |
|
43,937 |
|
|
43,630 |
|
||||||||||
Total loans and leases |
$ |
2,763,880 |
|
$ |
2,577,960 |
|
||||||||||
Asset Quality Data | ||||||||||||||||
Non-accrual loans |
$ |
3,030 |
|
$ |
6,422 |
|
||||||||||
Troubled debt restructurings |
|
37 |
|
|
817 |
|
||||||||||
Loans past due 90 days or more and still accruing |
|
861 |
|
|
134 |
|
||||||||||
Total non-performing loans |
|
3,928 |
|
|
7,373 |
|
||||||||||
Other real estate owned |
|
563 |
|
|
360 |
|
||||||||||
Total non-performing assets |
$ |
4,491 |
|
$ |
7,733 |
|
||||||||||
Non-performing loans to total loans |
|
0.14 |
% |
|
0.29 |
% |
||||||||||
Non-performing assets to total assets |
|
0.13 |
% |
|
0.23 |
% |
||||||||||
Allowance for loan and lease losses to total loans |
|
0.96 |
% |
|
0.96 |
% |
||||||||||
Allowance for loan and lease losses to average loans |
|
1.01 |
% |
|
1.00 |
% |
||||||||||
Allowance for loan and lease losses to non-performing loans |
|
673 |
% |
|
337 |
% |
||||||||||
Net charge-offs (recoveries) |
$ |
48 |
|
$ |
565 |
|
$ |
(282 |
) |
$ |
1,982 |
|
||||
Net charge-offs (recoveries) to average loans (4) |
|
0.00 |
% |
|
0.02 |
% |
|
-0.01 |
% |
|
0.08 |
% |
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
Second Quarter 2019 Earnings Release | ||||||||||||||||||||
Quarterly Comparison | ||||||||||||||||||||
Income Statement Data | 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | |||||||||||||||
Net interest income, fully tax equivalent (2) |
$ |
30,829 |
|
$ |
29,713 |
|
$ |
29,972 |
|
$ |
28,590 |
|
$ |
28,759 |
|
|||||
Net interest income |
$ |
30,774 |
|
$ |
29,657 |
|
$ |
29,912 |
|
$ |
28,521 |
|
$ |
28,674 |
|
|||||
Provision for loan and lease losses |
|
- |
|
|
600 |
|
|
- |
|
|
735 |
|
|
1,235 |
|
|||||
Net interest income after provision for loan and lease losses |
|
30,774 |
|
|
29,057 |
|
|
29,912 |
|
|
27,786 |
|
|
27,439 |
|
|||||
Non-interest income: | ||||||||||||||||||||
Wealth management and trust services |
|
5,662 |
|
|
5,439 |
|
|
5,312 |
|
|
5,380 |
|
|
5,344 |
|
|||||
Deposit service charges |
|
1,336 |
|
|
1,247 |
|
|
1,419 |
|
|
1,482 |
|
|
1,447 |
|
|||||
Debit and credit card income |
|
2,168 |
|
|
1,744 |
|
|
1,813 |
|
|
1,759 |
|
|
1,689 |
|
|||||
Treasury management fees |
|
1,202 |
|
|
1,157 |
|
|
1,260 |
|
|
1,151 |
|
|
1,113 |
|
|||||
Mortgage banking income |
|
796 |
|
|
482 |
|
|
534 |
|
|
712 |
|
|
746 |
|
|||||
Net investment product sales commissions and fees |
|
364 |
|
|
356 |
|
|
432 |
|
|
444 |
|
|
397 |
|
|||||
Bank owned life insurance |
|
184 |
|
|
178 |
|
|
565 |
|
|
186 |
|
|
191 |
|
|||||
Other |
|
551 |
|
|
459 |
|
|
241 |
|
|
312 |
|
|
508 |
|
|||||
Total non-interest income |
|
12,263 |
|
|
11,062 |
|
|
11,576 |
|
|
11,426 |
|
|
11,435 |
|
|||||
Non-interest expenses: | ||||||||||||||||||||
Compensation |
|
12,715 |
|
|
11,801 |
|
|
11,824 |
|
|
11,607 |
|
|
11,703 |
|
|||||
Employee benefits |
|
2,908 |
|
|
2,642 |
|
|
2,452 |
|
|
2,501 |
|
|
2,512 |
|
|||||
Net occupancy and equipment |
|
1,976 |
|
|
1,858 |
|
|
2,110 |
|
|
1,914 |
|
|
1,811 |
|
|||||
Technology and communication |
|
1,848 |
|
|
1,773 |
|
|
1,660 |
|
|
1,595 |
|
|
1,685 |
|
|||||
Debit and credit card processing |
|
631 |
|
|
587 |
|
|
594 |
|
|
588 |
|
|
579 |
|
|||||
Marketing and business development |
|
903 |
|
|
625 |
|
|
908 |
|
|
740 |
|
|
805 |
|
|||||
Postage, printing, and supplies |
|
410 |
|
|
406 |
|
|
397 |
|
|
370 |
|
|
400 |
|
|||||
Legal and professional |
|
1,523 |
|
|
534 |
|
|
1,116 |
|
|
501 |
|
|
504 |
|
|||||
FDIC insurance |
|
248 |
|
|
238 |
|
|
243 |
|
|
238 |
|
|
238 |
|
|||||
Amortization/impairment of investments in tax credit partnerships |
|
52 |
|
|
52 |
|
|
1,179 |
|
|
- |
|
|
58 |
|
|||||
Capital and deposit based taxes |
|
967 |
|
|
904 |
|
|
873 |
|
|
738 |
|
|
862 |
|
|||||
Other |
|
1,283 |
|
|
1,219 |
|
|
1,209 |
|
|
989 |
|
|
979 |
|
|||||
Total non-interest expenses |
|
25,464 |
|
|
22,639 |
|
|
24,565 |
|
|
21,781 |
|
|
22,136 |
|
|||||
Income before income tax expense |
|
17,573 |
|
|
17,480 |
|
|
16,923 |
|
|
17,431 |
|
|
16,738 |
|
|||||
Income tax expense |
|
1,030 |
|
|
1,839 |
|
|
2,265 |
|
|
3,555 |
|
|
3,159 |
|
|||||
Net income |
$ |
16,543 |
|
$ |
15,641 |
|
$ |
14,658 |
|
$ |
13,876 |
|
$ |
13,579 |
|
|||||
Net income per share - Basic |
$ |
0.73 |
|
$ |
0.69 |
|
$ |
0.65 |
|
$ |
0.61 |
|
$ |
0.60 |
|
|||||
Net income per share - Diluted |
|
0.72 |
|
|
0.68 |
|
|
0.64 |
|
|
0.60 |
|
|
0.59 |
|
|||||
Cash dividend declared per share |
|
0.26 |
|
|
0.25 |
|
|
0.25 |
|
|
0.25 |
|
|
0.23 |
|
|||||
Weighted average shares - Basic |
|
22,689 |
|
|
22,661 |
|
|
22,638 |
|
|
22,636 |
|
|
22,625 |
|
|||||
Weighted average shares - Diluted |
|
22,949 |
|
|
22,946 |
|
|
22,907 |
|
|
22,968 |
|
|
22,967 |
|
|||||
Quarterly Comparison | ||||||||||||||||||||
Balance Sheet Data | 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | |||||||||||||||
Cash and due from banks |
$ |
51,264 |
|
$ |
44,014 |
|
$ |
51,892 |
|
$ |
66,029 |
|
$ |
44,052 |
|
|||||
Federal funds sold and interest bearing due from banks |
|
64,775 |
|
|
67,326 |
|
|
147,047 |
|
|
54,451 |
|
|
10,948 |
|
|||||
Mortgage loans held for sale |
|
3,922 |
|
|
2,981 |
|
|
1,675 |
|
|
2,533 |
|
|
2,053 |
|
|||||
Securities available for sale |
|
423,579 |
|
|
507,131 |
|
|
436,995 |
|
|
550,091 |
|
|
574,570 |
|
|||||
FHLB stock and other securities |
|
11,316 |
|
|
9,779 |
|
|
10,370 |
|
|
10,370 |
|
|
10,370 |
|
|||||
Loans and leases |
|
2,763,880 |
|
|
2,525,709 |
|
|
2,548,171 |
|
|
2,534,483 |
|
|
2,577,960 |
|
|||||
Allowance for loan and lease losses |
|
26,416 |
|
|
26,464 |
|
|
25,534 |
|
|
25,222 |
|
|
24,873 |
|
|||||
Total assets |
|
3,463,823 |
|
|
3,281,016 |
|
|
3,302,924 |
|
|
3,324,797 |
|
|
3,323,840 |
|
|||||
Non-interest bearing deposits |
|
777,652 |
|
|
698,783 |
|
|
711,023 |
|
|
705,386 |
|
|
715,974 |
|
|||||
Interest bearing deposits |
|
2,105,801 |
|
|
2,053,757 |
|
|
2,083,333 |
|
|
1,892,652 |
|
|
1,824,487 |
|
|||||
Securities sold under agreements to repurchase |
|
33,809 |
|
|
34,633 |
|
|
36,094 |
|
|
53,883 |
|
|
58,808 |
|
|||||
Federal funds purchased and other short-term borrowings |
|
12,012 |
|
|
12,218 |
|
|
10,247 |
|
|
231,344 |
|
|
286,460 |
|
|||||
FHLB advances |
|
84,279 |
|
|
47,853 |
|
|
48,177 |
|
|
48,500 |
|
|
48,821 |
|
|||||
Stockholders' equity |
|
389,365 |
|
|
377,994 |
|
|
366,500 |
|
|
352,980 |
|
|
345,515 |
|
|||||
Total shares outstanding |
|
22,721 |
|
|
22,823 |
|
|
22,749 |
|
|
22,746 |
|
|
22,746 |
|
|||||
Book value per share (1) |
$ |
17.14 |
|
$ |
16.56 |
|
$ |
16.11 |
|
$ |
15.52 |
|
$ |
15.19 |
|
|||||
Tangible common equity per share (1) |
|
16.46 |
|
|
16.49 |
|
|
16.03 |
|
|
15.44 |
|
|
15.11 |
|
|||||
Market value per share |
|
36.15 |
|
|
33.81 |
|
|
32.80 |
|
|
36.30 |
|
|
38.15 |
|
|||||
Capital Ratios | ||||||||||||||||||||
Total stockholders' equity to total assets (1) |
|
11.24 |
% |
|
11.52 |
% |
|
11.10 |
% |
|
10.62 |
% |
|
10.40 |
% |
|||||
Tangible common equity to tangible assets (1) |
|
10.85 |
% |
|
11.47 |
% |
|
11.05 |
% |
|
10.57 |
% |
|
10.35 |
% |
|||||
Average stockholders' equity to average assets |
|
11.10 |
% |
|
11.34 |
% |
|
10.99 |
% |
|
11.14 |
% |
|
10.91 |
% |
|||||
Total risk-based capital |
|
12.67 |
% |
|
14.04 |
% |
|
13.91 |
% |
|
13.50 |
% |
|
13.06 |
% |
|||||
Common equity tier 1 risk-based capital |
|
11.82 |
% |
|
13.11 |
% |
|
13.00 |
% |
|
12.61 |
% |
|
12.18 |
% |
|||||
Tier 1 risk-based capital |
|
11.82 |
% |
|
13.11 |
% |
|
13.00 |
% |
|
12.61 |
% |
|
12.18 |
% |
|||||
Leverage |
|
10.91 |
% |
|
11.57 |
% |
|
11.33 |
% |
|
11.40 |
% |
|
11.19 |
% |
Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
Second Quarter 2019 Earnings Release | ||||||||||||||||||||
Quarterly Comparison | ||||||||||||||||||||
Average Balance Sheet Data | 6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | |||||||||||||||
Federal funds sold and interest bearing due from banks |
$ |
137,130 |
|
$ |
122,189 |
|
$ |
86,725 |
|
$ |
73,196 |
|
$ |
36,985 |
|
|||||
Mortgage loans held for sale |
|
3,794 |
|
|
1,727 |
|
|
2,140 |
|
|
2,980 |
|
|
2,975 |
|
|||||
Securities available for sale |
|
435,391 |
|
|
437,619 |
|
|
468,856 |
|
|
372,251 |
|
|
401,369 |
|
|||||
Loans and leases |
|
2,668,058 |
|
|
2,538,940 |
|
|
2,539,750 |
|
|
2,547,474 |
|
|
2,540,537 |
|
|||||
Total earning assets |
|
3,244,941 |
|
|
3,100,352 |
|
|
3,096,931 |
|
|
2,990,401 |
|
|
2,973,704 |
|
|||||
Total assets |
|
3,436,175 |
|
|
3,271,257 |
|
|
3,260,322 |
|
|
3,153,406 |
|
|
3,132,494 |
|
|||||
Interest bearing deposits |
|
2,112,768 |
|
|
2,048,830 |
|
|
2,012,489 |
|
|
1,874,853 |
|
|
1,846,730 |
|
|||||
Total deposits |
|
2,867,360 |
|
|
2,743,701 |
|
|
2,738,678 |
|
|
2,590,156 |
|
|
2,548,372 |
|
|||||
Securities sold under agreement to repurchase and other short-term borrowings |
|
51,743 |
|
|
48,956 |
|
|
67,731 |
|
|
116,287 |
|
|
150,173 |
|
|||||
FHLB advances |
|
74,420 |
|
|
47,962 |
|
|
48,287 |
|
|
48,612 |
|
|
48,929 |
|
|||||
Total interest bearing liabilities |
|
2,238,931 |
|
|
2,145,748 |
|
|
2,128,507 |
|
|
2,039,752 |
|
|
2,045,832 |
|
|||||
Total stockholders' equity |
|
381,270 |
|
|
371,070 |
|
|
358,293 |
|
|
351,376 |
|
|
341,637 |
|
|||||
Performance Ratios | ||||||||||||||||||||
Annualized return on average assets |
|
1.93 |
% |
|
1.94 |
% |
|
1.78 |
% |
|
1.75 |
% |
|
1.74 |
% |
|||||
Annualized return on average equity |
|
17.40 |
% |
|
17.09 |
% |
|
16.23 |
% |
|
15.67 |
% |
|
15.94 |
% |
|||||
Net interest margin, fully tax equivalent |
|
3.81 |
% |
|
3.89 |
% |
|
3.84 |
% |
|
3.79 |
% |
|
3.88 |
% |
|||||
Non-interest income to total revenue, fully tax equivalent |
|
28.46 |
% |
|
27.13 |
% |
|
27.86 |
% |
|
28.55 |
% |
|
28.45 |
% |
|||||
Efficiency ratio, fully tax equivalent (3) |
|
59.09 |
% |
|
55.52 |
% |
|
55.52 |
% |
|
59.12 |
% |
|
55.07 |
% |
|||||
Loans by Type | ||||||||||||||||||||
Commercial and industrial |
$ |
860,085 |
|
$ |
827,747 |
|
$ |
833,524 |
|
$ |
816,252 |
|
$ |
855,015 |
|
|||||
Construction and land development |
|
257,801 |
|
|
244,548 |
|
|
255,142 |
|
|
233,107 |
|
|
238,224 |
|
|||||
Real estate mortgage - commercial investment |
|
696,421 |
|
|
586,648 |
|
|
588,610 |
|
|
630,000 |
|
|
622,777 |
|
|||||
Real estate mortgage - owner occupied commercial |
|
452,719 |
|
|
428,163 |
|
|
426,373 |
|
|
420,098 |
|
|
420,999 |
|
|||||
Real estate mortgage - 1-4 family residential |
|
338,957 |
|
|
277,847 |
|
|
276,017 |
|
|
274,409 |
|
|
277,735 |
|
|||||
Home equity - first lien |
|
46,012 |
|
|
48,656 |
|
|
49,500 |
|
|
46,062 |
|
|
53,257 |
|
|||||
Home equity - junior lien |
|
67,948 |
|
|
66,837 |
|
|
70,947 |
|
|
67,105 |
|
|
66,323 |
|
|||||
Consumer |
|
43,937 |
|
|
45,263 |
|
|
48,058 |
|
|
47,450 |
|
|
43,630 |
|
|||||
Total loans and leases |
$ |
2,763,880 |
|
$ |
2,525,709 |
|
$ |
2,548,171 |
|
$ |
2,534,483 |
|
$ |
2,577,960 |
|
|||||
Asset Quality Data | ||||||||||||||||||||
Non-accrual loans |
$ |
3,030 |
|
$ |
3,273 |
|
$ |
2,611 |
|
$ |
3,982 |
|
$ |
6,422 |
|
|||||
Troubled debt restructurings |
|
37 |
|
|
39 |
|
|
42 |
|
|
792 |
|
|
817 |
|
|||||
Loans past due 90 days or more and still accruing |
|
861 |
|
|
454 |
|
|
745 |
|
|
212 |
|
|
134 |
|
|||||
Total non-performing loans |
|
3,928 |
|
|
3,766 |
|
|
3,398 |
|
|
4,986 |
|
|
7,373 |
|
|||||
Other real estate owned |
|
563 |
|
|
878 |
|
|
1,018 |
|
|
1,604 |
|
|
360 |
|
|||||
Total non-performing assets |
$ |
4,491 |
|
$ |
4,644 |
|
$ |
4,416 |
|
$ |
6,590 |
|
$ |
7,733 |
|
|||||
Non-performing loans to total loans |
|
0.14 |
% |
|
0.15 |
% |
|
0.13 |
% |
|
0.20 |
% |
|
0.29 |
% |
|||||
Non-performing assets to total assets |
|
0.13 |
% |
|
0.14 |
% |
|
0.13 |
% |
|
0.20 |
% |
|
0.23 |
% |
|||||
Allowance for loan and lease losses to total loans |
|
0.96 |
% |
|
1.05 |
% |
|
1.00 |
% |
|
1.00 |
% |
|
0.96 |
% |
|||||
Allowance for loan and lease losses to average loans |
|
0.99 |
% |
|
1.04 |
% |
|
1.01 |
% |
|
1.00 |
% |
|
0.98 |
% |
|||||
Allowance for loan and lease losses to non-performing loans |
|
673 |
% |
|
703 |
% |
|
751 |
% |
|
506 |
% |
|
337 |
% |
|||||
Net charge-offs (recoveries) |
$ |
48 |
|
$ |
(330 |
) |
$ |
(312 |
) |
$ |
386 |
|
$ |
565 |
|
|||||
Net charge-offs (recoveries) to average loans (4) |
|
0.00 |
% |
|
-0.01 |
% |
|
-0.01 |
% |
|
0.02 |
% |
|
0.02 |
% |
|||||
Other Information | ||||||||||||||||||||
Total assets under management (in millions) |
$ |
3,068 |
|
$ |
2,970 |
|
$ |
2,765 |
|
$ |
2,969 |
|
$ |
2,852 |
|
|||||
Full-time equivalent employees |
|
615 |
|
|
596 |
|
|
591 |
|
|
593 |
|
|
581 |
|
(1) - The following table provides a reconciliation of total stockholders’ equity in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) to tangible stockholders’ equity, a non-GAAP disclosure. The Company provides the tangible book value per share, a non-GAAP measure, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy: | ||||||||||||||||||||
Quarterly Comparison | ||||||||||||||||||||
6/30/19 | 3/31/19 | 12/31/18 | 9/30/18 | 6/30/18 | ||||||||||||||||
Total stockholders' equity - GAAP (a) |
$ |
389,365 |
|
$ |
377,994 |
|
$ |
366,500 |
|
$ |
352,980 |
|
$ |
345,515 |
|
|||||
Less: Goodwill |
|
(12,825 |
) |
|
(682 |
) |
|
(682 |
) |
|
(682 |
) |
|
(682 |
) |
|||||
Less: Core deposit intangible |
|
(2,462 |
) |
|
(1,015 |
) |
|
(1,057 |
) |
|
(1,098 |
) |
|
(1,139 |
) |
|||||
Tangible common equity - Non-GAAP (c) |
$ |
374,078 |
|
$ |
376,297 |
|
$ |
364,761 |
|
$ |
351,200 |
|
$ |
343,694 |
|
|||||
Total assets - GAAP (b) |
$ |
3,463,823 |
|
$ |
3,281,016 |
|
$ |
3,302,924 |
|
$ |
3,324,797 |
|
$ |
3,323,840 |
|
|||||
Less: Goodwill |
|
(12,825 |
) |
|
(682 |
) |
|
(682 |
) |
|
(682 |
) |
|
(682 |
) |
|||||
Less: Core deposit intangible |
|
(2,462 |
) |
|
(1,015 |
) |
|
(1,057 |
) |
|
(1,098 |
) |
|
(1,139 |
) |
|||||
Tangible assets - Non-GAAP (d) |
$ |
3,448,536 |
|
$ |
3,279,319 |
|
$ |
3,301,185 |
|
$ |
3,323,017 |
|
$ |
3,322,019 |
|
|||||
Total stockholders' equity to total assets - GAAP (a/b) |
|
11.24 |
% |
|
11.52 |
% |
|
11.10 |
% |
|
10.62 |
% |
|
10.40 |
% |
|||||
Tangible common equity to tangible assets - Non-GAAP (c/d) |
|
10.85 |
% |
|
11.47 |
% |
|
11.05 |
% |
|
10.57 |
% |
|
10.35 |
% |
|||||
Total shares outstanding (e) |
|
22,721 |
|
|
22,823 |
|
|
22,749 |
|
|
22,746 |
|
|
22,746 |
|
|||||
Book value per share - GAAP (a/e) |
$ |
17.14 |
|
$ |
16.56 |
|
$ |
16.11 |
|
$ |
15.52 |
|
$ |
15.19 |
|
|||||
Tangible common equity per share - Non-GAAP (c/e) |
|
16.46 |
|
|
16.49 |
|
|
16.03 |
|
|
15.44 |
|
|
15.11 |
|
|||||
(2) - 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. | ||||||||||||||||||||
(3) - The efficiency ratio, a non-GAAP measure, equals total non interest expense divided by the sum of fully tax equivalent net interest income and non interest income. The ratio excludes net gains (losses) on sales, calls, and impairment of investment securities, if applicable. | ||||||||||||||||||||
(4) - Quarterly net charge-offs (recoveries) to average loans ratios are not annualized. |
T. Clay Stinnett
Executive Vice President,
Treasurer and Chief Financial Officer
(502) 625-0890