• Stock Yards Bancorp Reports First Quarter Earnings of $25.9 Million or $0.88 Per Diluted Share

    Source: Nasdaq GlobeNewswire / 24 Apr 2024 07:30:01   America/New_York

    LOUISVILLE, Ky., April 24, 2024 (GLOBE NEWSWIRE) -- Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported earnings of $25.9 million, or $0.88 per diluted share, for the first quarter ended March 31, 2024. This compares to net income of $29.0 million, or $0.99 per diluted share, for the first quarter of 2023. Steady loan growth, strong asset quality and robust non-interest income generation contributed to first quarter operating results.

                
    (dollar amounts in thousands, except per share data)1Q24
    		 4Q23
    		 1Q23
    Net income$25,887  $23,944  $   29,048 
    Net income per share, diluted         0.88           0.82           0.99 
                
    Net interest income$        60,070  $        62,016  $        63,072 
    Provision for credit losses(1) 1,425   6,046   2,625 
    Non-interest income 23,271   24,417   22,047 
    Non-interest expenses 48,961   50,013   45,314 
                
    Net interest margin 3.20%  3.25%  3.59%
    Efficiency ratio(2) 58.68%  57.80%  53.13%
    Tangible common equity to tangible assets(3) 8.36%  8.09%  7.74%
    Annualized return on average assets(4) 1.28%  1.17%  1.55%
    Annualized return on average equity(4) 12.09%  11.62%  15.15%
        


    “It was a great start of the year for us, with steady loan growth, solid asset quality metrics, and diversified non-interest income streams contributing to first quarter 2024 results,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Total loans increased $607 million, or 12%, over the last 12 months, $79 million of which was generated during the first quarter of this year. We continue to see broad-based loan demand from our customers throughout our markets.

    “Strong non-interest income once again propelled our operating results for the first quarter of 2024. Wealth Management & Trust (WM&T) posted another record quarter, benefiting from strong equity market performance, coupled with net new business growth and a record $7.50 billion in Assets Under Management (AUM) at quarter end. Strong card income, treasury management and record brokerage fees, driven by increased demand and customer expansion, served to cap off a strong first quarter,” Hillebrand continued. “While our net interest margin contracted 5 basis points over the linked quarter, as the increase in cost of funds continued to outpace the growth in yields on earning assets, the pace of net interest margin contraction has begun to moderate. We anticipate net interest margin compression will stabilize during the second quarter of 2024, and we are currently projecting net interest margin expansion before the end of the year.”

    At March 31, 2024, the Company had $8.12 billion in assets, $5.85 billion in loans and $6.61 billion in total deposits. The Company’s combined enterprise, which encompasses 72 branch offices across three contiguous states, will continue to benefit from a diversified geographic footprint that provides significant growth opportunities in both the banking and WM&T arenas.

    Key factors contributing to the first quarter of 2024 results included:

    • Total loans increased $607 million, or 12%, over the last 12 months, while growing $79 million, or 1%, on the linked quarter. The yield earned on loans increased to 5.95% for the first quarter of 2024, benefiting from interest rate expansion, and to a slightly lesser extent, average balance growth.
    • Deposit balances declined $62 million, or 1%, on the linked quarter, as non-interest bearing demand accounts contracted $68 million, or 4%. The fourth quarter of each year reflects elevated cash levels consistent with the seasonal increase in public funds.
    • Costs of funds expansion continued to outpace earning asset yield growth during the first quarter of 2024. Net interest income declined $3.0 million, or 5%, for the first quarter of 2024 compared to the first quarter a year ago, with net interest margin compressing 39 bps to 3.20%. On the linked quarter, net interest income declined $1.9 million, or 3%, while net interest margin contracted 5 bps to 3.20%, representing the slowest pace of margin contraction since the first quarter of 2023.
    • While credit quality remains stable in comparison to traditional metrics, credit loss expense on loans(1) of $1.2 million was recorded for the first quarter of 2024. Despite modest loan growth and annual CECL model methodology updates, credit loss expense on loans benefited from a slightly improving unemployment forecast, net recoveries and a reduction in specific reserves.
    • Non-interest income increased $1.2 million, or 6%, over the first quarter of 2023. WM&T income expanded $1.2 million, or 13%, to a record $10.8 million, benefitting from strong quarterly fees, improved market conditions and net new business expansion. Treasury management fees once again experienced double digit growth, increasing $307,000, or 13% over the last 12 months. While card and brokerage income combined to increase $311,000, other non-interest income declined $576,000 over the first quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.
    • Total non-interest expenses increased $3.6 million, or 8%, during the first quarter of 2024 compared to the first quarter of 2023, primarily due to higher compensation and benefits expenses associated with employee growth, annual merit increases and elevated health insurance claims activity. Overall, non-interest expenses generally remained in line with management expectations.
    • Tangible common equity per share(3) was $22.50 at March 31, 2024, compared to $21.95 at December 31, 2023, and $19.66 at March 31, 2023. Over the past several quarters, tangible common equity and tangible book value have been impacted by the volatile interest rate market and corresponding impact on accumulated other comprehensive income/loss, primarily as a result of changes in unrealized losses in the available for sale debt securities portfolio, which has a current weighted average life of 5.0 years.

    Hillebrand concluded, “In March 2024, S&P Global Market Intelligence once again recognized Stock Yards as one of the Top 50 Best Performing Community Banks with total assets between $3 and $10 billion at the end of 2023. The rankings assess the performance of banking institutions based on returns, growth and funding, while placing a premium on balance sheet strength and risk profile. This recognition showcases the dedication and commitment of our employees and the unmatched service to our communities we operate in.”

    Results of Operations – First Quarter 2024 Compared with First Quarter 2023

    Net interest income, the Company’s largest source of revenue, decreased by $3.0 million, or 5%, to $60.1 million. While strong organic loan growth has boosted net interest income over the past 12 months, the cost of interest bearing liabilities more than offset the increase in interest income.

    • Total interest income increased by $17.1 million, or 21%, to $96.5 million.
      • Interest income and fees on loans increased $17.1 million, or 25%, over the prior year quarter. Consistent with the $572 million, or 11%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 61 basis points over the past 12 months to 5.95%.
      • Interest income on securities decreased $783,000, or 9%, compared to the first quarter of 2023. While average securities balances have declined $176 million, or 10%, over the past 12 months, the rate earned on securities remained steady at 2.07%. Over the past 12 months, cash flows from investment portfolio maturities and pay downs have been utilized to fund loan growth and provide liquidity in lieu of redeployment.
      • Average overnight funds increased $13.2 million quarter over prior year quarter, with interest income increasing $515,000, or 33% consistent with the increase in the Federal Funds Target Rate.
    • Total interest expense increased $20.1 million to $36.5 million, as the cost of interest bearing liabilities increased 127 basis points to 2.65%. For the fourth consecutive linked quarter end, the pace of expansion of total interest bearing liability costs has slowed.
      • Interest expense on deposits increased $18.4 million over the past 12 months, as the overall cost of interest bearing deposits increased to 2.53% in the first quarter of 2024 from 1.22% in the first quarter of 2023. Interest expense expansion was spread over the majority of categories, with time deposits expanding the most at $7.9 million.
      • Interest expense on Federal Home Loan Bank (FHLB) advances totaled $3.0 million for the first quarter of 2024 compared to $1.7 million for the same period in 2023.

    For the first quarter of 2024, consistent with modest loan growth, a slight improvement in unemployment projections, net recoveries, specific reserve reductions and other factors within the CECL allowance model, the Company recorded $1.2 million in credit loss expense(1) for loans. In addition, the Company recorded $250,000 expense for off balance sheet exposures associated with expansion of Construction & Land Development and Commercial & Industrial (C&I) lines of credit (increased availability). For the first quarter of 2023, the Company recorded $2.3 million in credit loss expense for loans and $375,000 provision expense for off balance sheet exposures. In addition, the Bank recorded $1.4 million in specific reserves for one large relationship during the first quarter of 2023.

    Non-interest income increased $1.2 million, or 6%, to $23.3 million.

    • WM&T income ended the first quarter of 2024 at a record $10.8 million, increasing $1.2 million, or 13%, over the first quarter of 2023. WM&T income benefited significantly from strong first quarter equity market performance, coupled with quarterly fees collected. WM&T AUM expanded $732 million, or 11%, over the past 12 months to a record $7.50 billion at quarter end.
    • Treasury management fees increased $307,000, or 13%, compared to the first quarter of 2023, driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income, new product sales and continued expansion of existing relationships.
    • Card income increased $200,000, or 4%, over the first quarter of 2023, driven by transaction volume and increased interchange income.
    • Other non-interest income declined $576,000 over the first quarter of 2023, as the Company elected to strategically exit its insurance captive in late 2023.

    Non-interest expenses increased $3.6 million, or 8%, compared to the first quarter of 2023, to $49.0 million.

    • Compensation expense increased $2.3 million, compared to the first quarter of 2023, consistent with the increase in full time equivalent employees and annual merit-based salary increases.
    • Employee benefits increased $823,000, or 16%, compared to the first quarter of 2023, primarily attributed to elevated health insurance claim activity and higher 401(k) matching and payroll tax expenses.
    • Net occupancy and equipment expenses decreased $229,000, or 6%, over the first quarter of 2023, primarily due to the relocation of all WM&T employees to a consolidated central location.
    • Technology and communication expenses, which include computer software amortization, equipment depreciation and expenditures related to investments in technology needed to maintain and improve the quality of customer delivery channels, information security and internal resources, increased $818,000, or 19%, consistent with compliance related software upgrades, customer expansion and increased transaction activity.
    • Card processing expense increased $327,000, consistent with higher interchange processing.
    • Legal and professional fees increased $318,000 compared to the first quarter of 2023, led by increased compliance-related consulting in preparation for expanded regulatory oversight in conjunction with future growth in total assets and higher collection related legal expenses.
    • Amortization of investments in tax credit partnerships declined $323,000 compared to the first quarter of 2023. Effective January 1, 2024, the Bank adopted ASU 2023-02 and began booking tax credit amortization expense for all income tax credit projects as a component of tax expense via the proportional amortization method.
    • Other non-interest expenses declined $284,000, or 10%, compared to the first quarter of 2023, primarily due to the Company’s strategic decision to exit its insurance captive in late 2023.

    Financial Condition – March 31, 2024 Compared with March 31, 2023

    Total assets increased $455 million, or 6%, year over year to $8.12 billion.

    Total loans increased $607 million, or 12%, to $5.85 billion, with the commercial real estate, residential real estate and C&I portfolio expanding 12%, 15% and 7%, respectively. In addition to the strong growth, the Company has benefitted from the higher rate environment that has generally slowed loan payoff activity. Total line of credit usage was 38.9% as of March 31, 2024, compared to 41.1% as of March 31, 2023, driven by strong line production and generally slow utilization. C&I line of credit usage was 27.3% as of March 31, 2024, compared to 30.5% as of March 31, 2023.

    Total investment securities decreased $221 million, or 14%, year over year. The overall portfolio yield was 2.07% for the first quarter of 2024, which was unchanged from the first quarter of 2023. Over the past 12 months, cash flows from the investment portfolio have been utilized to fund loan growth and provide liquidity in lieu of redeployment.

    Total deposits increased $252 million, or 4%, over the past 12 months, led by interest bearing demand, money market and time deposit expansion, which was partially offset by a decline in non-interest bearing demand deposits.

    During the first quarter of 2024, the Company recorded net loan recoveries of $348,000. This compares to $108,000 in net charge offs during the first quarter of 2023. Non-performing loans totaled $14 million, or 0.24% of total loans outstanding at March 31, 2024, compared to $18 million, or 0.35% of total loans outstanding at March 31, 2023. The ratio of allowance for credit losses to loans ended at 1.38% at March 31, 2024 compared to 1.44% at March 31, 2023.

    At March 31, 2024, the Company continued to be “well-capitalized,” the highest regulatory capital rating for financial institutions, with all capital ratios experiencing meaningful growth. Total equity to assets(3) was 10.77% and the tangible common equity ratio(3) was 8.36% at March 31, 2024, compared to 10.36% and 7.74% at March 31, 2023, respectively.

    In February 2024, the board of directors declared a quarterly cash dividend of $0.30 per common share. The dividend was paid April 1, 2024 to shareholders of record as of March 18, 2024.

    No shares have been purchased since 2020, and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2025.

    Results of Operations – First Quarter 2024 Compared with Fourth Quarter 2023

    Net interest margin declined 5 basis points on the linked quarter to 3.20%, as cost of funds growth continued to outpace earning asset yield growth.

    Net interest income decreased $1.9 million, or 3%, over the prior quarter to $60.1 million.

    • Total interest income increased $1.3 million, or 1%, led by the increase in interest income on loans.
      • Interest income and fees on loans increased $3.1 million, or 4%, over the linked quarter. Average loans increased $133 million, or 2%, and the corresponding yield earned increased 16 basis points over the linked quarter to 5.95%.
    • Average overnight funds decreased $105 million over the linked quarter with interest income decreasing $1.4 million. The fourth quarter of each year reflects elevated cash levels consistent with the seasonal increase in public funds.
    • Total interest expense increased $3.3 million, or 10%, led by a $2.2 million, or 7%, increase in the cost of interest-bearing deposits.

    The Company recorded $1.4 million in provision for credit losses(1) during the first quarter of 2024, which included a $1.2 million provision for credit losses on loans and $250,000 of credit loss expense for off-balance sheet exposures. During the fourth quarter of 2023, the Company recorded $6.0 million in provision for credit losses, which included a $5.8 million provision for credit losses on loans and $275,000 of credit loss expense for off-balance sheet exposures. Provision for credit loss expense on loans in the fourth quarter of 2023 was inclusive of $4.7 million in charge-offs, with $4.1 million attributed to one C&I relationship.

    Non-interest income decreased $1.1 million, or 5%, on the linked quarter, primarily due to several non-recurring items that occurred during the fourth quarter of 2023.

    • Total interest WM&T income expanded $672,000, or 7%, consistent with market expansion and net new business growth.
    • Card income declined $692,000, or 13%, as the fourth quarter of 2023 included $605,000 in annual debit card processor incentives.
    • Visa Class B stock was sold in the fourth quarter of 2023 resulting in a non-recurring gain of $487,000.
    • Swap fee income declined $387,000 on the linked quarter.
    • OREO related sales in the fourth quarter of 2023 generated a $207,000 gain.

    Non-interest expenses decreased $1.1 million, or 2%, to $49.0 million, as a decrease in compensation expense and lower consulting expenses more than off-set an increases in employee benefits and net occupancy expense. The fourth quarter of 2023 included $1.9 million of total additional pre-tax expense recorded related to an executive retirement agreement and the relocation of all WM&T employees to a consolidated central location.

    Financial Condition – March 31, 2024 Compared with December 31, 2023

    Total assets decreased $47 million on the linked quarter to $8.12 billion.

    Total loans expanded $79 million, or 1%, on the linked quarter, led by increases in nearly every category, with the commercial real estate loan portfolio leading the growth. Total line of credit usage was 38.9% as of March 31, 2024, compared to 39.2% as of December 31, 2023, driven by strong production. C&I line of credit usage was 27.3% as of March 31, 2024, compared to 28.6% as of December 31, 2023.

    Total deposits decreased $62 million, or 1%, on the linked quarter primarily due to seasonal public funds runoff totaling $36 million. Non-interest bearing demand accounts contracted $68 million, or 4%, as the Company’s deposit mix continues to shift to interest bearing accounts.

    About the Company

    Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.12 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 Stock 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 banking subsidiary operates; competition for the Company’s customers from other providers of financial services; changes in, or forecasts of, future political and economic conditions, inflation and efforts to control it; 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. Refer to Stock Yards’ Annual Report on Form 10-K for the year ended December 31, 2023, as well as its other filings with the SEC for a more detailed discussion of risks, uncertainties and factors that could cause actual results to differ from those discussed in the forward-looking statements.

    Contact: T. Clay Stinnett
    Executive Vice President,
    Treasurer and Chief Financial Officer
    (502) 625-0890


    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    First Quarter 2024 Earnings Release
    (In thousands unless otherwise noted)
      Three Months Ended
      March 31,
    Income Statement Data 2024 2023
             
    Net interest income, fully tax equivalent (5) $60,167  $ 63,245 
    Interest income:        
    Loans $ 85,840  $ 68,787 
    Federal funds sold and interest bearing due from banks  2,096   1,581 
    Mortgage loans held for sale  31   41 
    Federal Home Loan Bank stock  468   165 
    Investment securities  8,110   8,893 
    Total interest income  96,545   79,467 
    Interest expense:        
    Deposits  31,866   13,499 
    Securities sold under agreements to repurchase  931   456 
    Federal funds purchased  136   177 
    Federal Home Loan Bank advances  2,997   1,734 
    Subordinated debentures  545   529 
    Total interest expense  36,475   16,395 
    Net interest income  60,070   63,072 
    Provision for credit losses (1)  1,425   2,625 
    Net interest income after provision for credit losses  58,645   60,447 
    Non-interest income:        
    Wealth management and trust services  10,771   9,527 
    Deposit service charges  2,136   2,149 
    Debit and credit card income  4,682   4,482 
    Treasury management fees  2,625   2,318 
    Mortgage banking income  948   1,038 
    Net investment product sales commissions and fees  865   754 
    Bank owned life insurance  588   549 
    Gain (loss) on sale of premises and equipment  -   (2)
    Other  656   1,232 
    Total non-interest income  23,271   22,047 
    Non-interest expenses:        
    Compensation  24,221   21,896 
    Employee benefits  5,876   5,053 
    Net occupancy and equipment  3,670   3,899 
    Technology and communication  5,069   4,251 
    Debit and credit card processing  1,746   1,419 
    Marketing and business development  1,075   1,095 
    Postage, printing and supplies  926   874 
    Legal and professional  1,115   797 
    FDIC insurance  1,112   1,135 
    Capital and deposit based taxes  630   639 
    Intangible amortization  1,052   1,180 
    Amortization of investments in tax credit partnerships  -   323 
    Other  2,469   2,753 
    Total non-interest expenses  48,961   45,314 
    Income before income tax expense  32,955   37,180 
    Income tax expense  7,068   8,132 
    Net income $25,887  $ 29,048 
             
    Net income per share - Basic $ 0.89  $ 1.00 
    Net income per share - Diluted  0.88   0.99 
    Cash dividend declared per share  0.30   0.29 
             
    Weighted average shares - Basic  29,250   29,178 
    Weighted average shares - Diluted  29,361   29,365 
             
      March 31,
    Balance Sheet Data  2024 2023
             
    Investment securities $ 1,379,212  $ 1,600,603 
    Loans  5,849,715   5,243,104 
    Allowance for credit losses on loans  80,897   75,673 
    Total assets  8,123,128   7,667,648 
    Non-interest bearing deposits  1,481,217   1,845,302 
    Interest bearing deposits  5,127,863   4,511,893 
    Federal Home Loan Bank advances  200,000   275,000 
    Accumulated other comprehensive income (loss)  (95,054)  (100,943)
    Stockholders' equity  874,711   794,368 
             
    Total shares outstanding  29,393   29,324 
    Book value per share (3) $ 29.76  $ 27.09 
    Tangible common equity per share (3)  22.50   19.66 
    Market value per share  48.91   55.14 
             
             
    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    First Quarter 2024 Earnings Release
             
      Three Months Ended
      March 31,
    Average Balance Sheet Data 2024 2023
             
    Federal funds sold and interest bearing due from banks $ 153,990  $ 140,831 
    Mortgage loans held for sale  4,629   6,460 
    Investment securities  1,578,401   1,754,620 
    Federal Home Loan Bank stock  21,121   15,496 
    Loans  5,808,924   5,236,879 
    Total interest earning assets  7,567,065   7,154,286 
    Total assets  8,153,364   7,579,439 
    Non-interest bearing deposits  1,500,602   1,878,307 
    Interest bearing deposits  5,058,743   4,480,151 
    Total deposits  6,559,345   6,358,458 
    Securities sold under agreements to repurchase  164,979   122,049 
    Federal funds purchased  10,161   16,243 
    Federal Home Loan Bank advances  274,451   163,056 
    Subordinated debentures  26,794   26,408 
    Total interest bearing liabilities  5,535,128   4,807,907 
    Accumulated other comprehensive income (loss)  (95,747)  (106,763)
    Total stockholders' equity  861,029   777,555 
             
    Performance Ratios        
    Annualized return on average assets (4)  1.28%  1.55%
    Annualized return on average equity (4)  12.09%  15.15%
    Net interest margin, fully tax equivalent  3.20%  3.59%
    Non-interest income to total revenue, fully tax equivalent  27.89%  25.85%
    Efficiency ratio, fully tax equivalent (2)  58.68%  53.13%
             
    Capital Ratios        
    Total stockholders' equity to total assets (3)  10.77%  10.36%
    Tangible common equity to tangible assets (3)  8.36%  7.74%
    Average stockholders' equity to average assets  10.56%  10.26%
    Total risk-based capital  12.69%  12.91%
    Common equity tier 1 risk-based capital  11.11%  11.30%
    Tier 1 risk-based capital  11.49%  11.73%
    Leverage  9.82%  9.56%
             
    Loan Segmentation        
    Commercial real estate - non-owner occupied $ 1,609,483  $ 1,467,780 
    Commercial real estate - owner occupied  931,973   805,417 
    Commercial and industrial  1,293,696   1,214,779 
    Residential real estate - owner occupied  723,234   620,417 
    Residential real estate - non-owner occupied  360,958   322,748 
    Construction and land development  532,183   439,673 
    Home equity lines of credit  212,443   200,933 
    Consumer  145,022   136,412 
    Leases  16,619   13,207 
    Credit cards  24,104   21,738 
    Total loans and leases $ 5,849,715  $ 5,243,104 
             
    Asset Quality Data        
    Non-accrual loans $ 13,984  $ 17,389 
    Modifications to borrowers experiencing financial difficulty  -   - 
    Loans past due 90 days or more and still accruing  106   894 
    Total non-performing loans  14,090   18,283 
    Other real estate owned  10   677 
    Total non-performing assets $ 14,100  $ 18,960 
    Non-performing loans to total loans  0.24%  0.35%
    Non-performing assets to total assets  0.17%  0.25%
    Allowance for credit losses on loans to total loans  1.38%  1.44%
    Allowance for credit losses on loans to average loans  1.39%  1.45% 
    Allowance for credit losses on loans to non-performing loans  574%  414%
    Net (charge-offs) recoveries $ 348  $ (108)
    Net (charge-offs) recoveries to average loans (6)  0.01%  0.00%
             

     

               
    Stock Yards Bancorp, Inc. Financial Information (unaudited)             
    First Quarter 2024 Earnings Release             
               
      Quarterly Comparison
    Income Statement Data 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
                         
    Net interest income, fully tax equivalent (5) $60,167  $62,112  $61,437  $61,074  $63,245 
    Net interest income $60,070  $62,016  $61,315  $60,929  $63,072 
    Provision for credit losses (1)  1,425   6,046   2,775   2,350   2,625 
    Net interest income after provision for credit losses  58,645   55,970   58,540   58,579   60,447 
    Non-interest income:                    
    Wealth management and trust services  10,771   10,099   10,030   10,146   9,527 
    Deposit service charges  2,136   2,244   2,272   2,201   2,149 
    Debit and credit card income  4,682   5,374   4,870   4,712   4,482 
    Treasury management fees  2,625   2,531   2,635   2,549   2,318 
    Mortgage banking income  948   823   814   1,030   1,038 
    Loss on sale of securities  -   (44)  -   -   - 
    Net investment product sales commissions and fees  865   860   791   800   754 
    Bank owned life insurance  588   576   569   559   549 
    Gain (loss) on sale of premises and equipment  -   (105)  302   (225)  (2)
    Other  656   2,059   613   1,088   1,232 
    Total non-interest income  23,271   24,417   22,896   22,860   22,047 
    Non-interest expenses:                    
    Compensation  24,221   24,494   23,379   22,107   21,896 
    Employee benefits  5,876   3,829   4,508   5,061   5,053 
    Net occupancy and equipment  3,670   5,150   3,821   3,514   3,899 
    Technology and communication  5,069   4,612   4,236   4,219   4,251 
    Debit and credit card processing  1,746   1,719   1,637   1,706   1,419 
    Marketing and business development  1,075   1,754   1,357   1,784   1,095 
    Postage, printing and supplies  926   903   938   889   874 
    Legal and professional  1,115   1,293   1,049   819   797 
    FDIC insurance  1,112   1,060   937   779   1,135 
    Capital and deposit based taxes  630   601   629   607   639 
    Intangible amortization  1,052   1,167   1,167   1,172   1,180 
    Amortization of investments in tax credit partnerships  -   324   323   324   323 
    Other  2,469   3,107   2,721   2,819   2,753 
    Total non-interest expenses  48,961   50,013   46,702   45,800   45,314 
    Income before income tax expense  32,955   30,374   34,734   35,639   37,180 
    Income tax expense  7,068   6,430   7,642   7,975   8,132 
    Net income $25,887  $23,944  $27,092  $27,664  $29,048 
                         
                         
    Net income per share - Basic $0.89  $0.82  $0.93  $0.95  $1.00 
    Net income per share - Diluted  0.88   0.82   0.92   0.94   0.99 
    Cash dividend declared per share  0.30   0.30   0.30   0.29   0.29 
                         
    Weighted average shares - Basic  29,250   29,226   29,223   29,223   29,178 
    Weighted average shares - Diluted  29,361   29,331   29,336   29,340   29,365 
                         
      Quarterly Comparison
    Balance Sheet Data 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
                         
    Cash and due from banks $71,676  $94,466  $79,538  $111,126  $87,922 
    Federal funds sold and interest bearing due from banks  88,547   171,493   113,499   103,204   229,076 
    Mortgage loans held for sale  6,462   6,056   6,535   7,069   6,397 
    Investment securities  1,379,212   1,471,016   1,465,453   1,542,753   1,600,603 
    Federal Home Loan Bank stock  24,675   16,236   26,241   27,366   23,226 
    Loans  5,849,715   5,771,038   5,617,084   5,418,609   5,243,104 
    Allowance for credit losses on loans  80,897   79,374   78,075   77,710   75,673 
    Goodwill  194,074   194,074   194,074   194,074   194,074 
    Total assets  8,123,128   8,170,102   7,903,430   7,732,552   7,667,648 
    Non-interest bearing deposits  1,481,217   1,548,624   1,714,918   1,766,132   1,845,302 
    Interest bearing deposits  5,127,863   5,122,124   4,687,889   4,442,248   4,511,893 
    Securities sold under agreements to repurchase  162,528   152,991   113,894   138,347   104,578 
    Federal funds purchased  9,961   12,852   11,518   11,646   14,745 
    Federal Home Loan Bank advances  200,000   200,000   350,000   400,000   275,000 
    Subordinated debentures  26,806   26,740   26,641   26,541   26,442 
    Accumulated other comprehensive income (loss)  (95,054)  (92,798)  (127,905)  (107,416)  (100,943)
    Stockholders' equity  874,711   858,103   806,918   808,082   794,368 
                         
    Total shares outstanding  29,393   29,329   29,323   29,323   29,324 
    Book value per share (3) $29.76  $29.26  $27.52  $27.56  $27.09 
    Tangible common equity per share (3)  22.50   21.95   20.17   20.17   19.66 
    Market value per share  48.91   51.49   39.29   45.37   55.14 
                         
    Capital Ratios                    
    Total stockholders' equity to total assets (3)  10.77%  10.50%  10.21%  10.45%  10.36%
    Tangible common equity to tangible assets (3)  8.36%  8.09%  7.69%  7.87%  7.74%
    Average stockholders' equity to average assets  10.56%  10.07%  10.39%  10.53%  10.26%
    Total risk-based capital  12.69%  12.56%  12.71%  12.78%  12.91%
    Common equity tier 1 risk-based capital  11.11%  11.04%  11.17%  11.20%  11.30%
    Tier 1 risk-based capital  11.49%  11.43%  11.57%  11.61%  11.73%
    Leverage  9.82%  9.62%  9.80%  9.83%  9.56%
                         
                         
    Stock Yards Bancorp, Inc. Financial Information (unaudited)                       
    First Quarter 2024 Earnings Release                       
               
      Quarterly Comparison
    Average Balance Sheet Data 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
                         
    Federal funds sold and interest bearing due from banks $153,990  $258,950  $124,653  $131,958  $140,831 
    Mortgage loans held for sale  4,629   5,305   7,112   8,420   6,460 
    Investment securities  1,578,401   1,618,799   1,659,888   1,719,045   1,754,620 
    Federal Home Loan Bank stock  21,121   20,519   27,290   25,074   15,496 
    Loans  5,808,924   5,676,193   5,486,262   5,286,597   5,236,879 
    Total interest earning assets  7,567,065   7,579,766   7,305,205   7,171,094   7,154,286 
    Total assets  8,153,364   8,116,569   7,805,154   7,594,901   7,579,439 
    Non-interest bearing deposits  1,500,602   1,663,962   1,731,724   1,781,338   1,878,307 
    Interest bearing deposits  5,058,743   5,025,240   4,509,411   4,414,599   4,480,151 
    Total deposits  6,559,345   6,689,202   6,241,135   6,195,937   6,358,458 
    Securities sold under agreement to repurchase  164,979   130,148   127,063   113,051   122,049 
    Federal funds purchased  10,161   13,606   11,776   13,602   16,243 
    Federal Home Loan Bank advances  274,451   205,435   401,630   348,352   163,056 
    Subordinated debentures  26,794   26,706   26,606   26,508   26,408 
    Total interest bearing liabilities  5,535,128   5,401,135   5,076,486   4,916,112   4,807,907 
    Accumulated other comprehensive income (loss)  (95,747)  (125,843)  (112,329)  (102,970)  (106,763)
    Total stockholders' equity  861,029   817,682   810,710   799,886   777,555 
                         
    Performance Ratios                    
    Annualized return on average assets (4)  1.28%  1.17%  1.38%  1.46%  1.55%
    Annualized return on average equity (4)  12.09%  11.62%  13.26%  13.87%  15.15%
    Net interest margin, fully tax equivalent  3.20%  3.25%  3.34%  3.42%  3.59%
    Non-interest income to total revenue, fully tax equivalent  27.89%  28.22%  27.15%  27.24%  25.85%
    Efficiency ratio, fully tax equivalent (2)  58.68%  57.80%  55.38%  54.57%  53.13%
                         
    Loans Segmentation                    
    Commercial real estate - non-owner occupied $1,609,483  $1,561,689  $
    		1,557,977  $1,527,453  $1,467,780 
    Commercial real estate - owner occupied  931,973   907,424   896,522   825,026   805,417 
    Commercial and industrial  1,293,696   1,307,128   1,251,027   1,233,642   1,214,779 
    Residential real estate - owner occupied  723,234   708,893   696,162   664,870   620,417 
    Residential real estate - non-owner occupied  360,958   358,715   349,624   337,961   322,748 
    Construction and land development  532,183   531,324   480,120   451,324   439,673 
    Home equity lines of credit  212,443   211,390   203,184   202,574   200,933 
    Consumer  145,022   145,340   143,703   139,602   136,412 
    Leases  16,619   15,503   14,710   13,967   13,207 
    Credit cards  24,104   23,632   24,055   22,190   21,738 
    Total loans and leases $5,849,715  $5,771,038  $5,617,084  $5,418,609  $5,243,104 
                         
    Asset Quality Data                    
    Non-accrual loans $13,984  $19,058  $17,227  $17,364  $17,389 
    Modifications to borrowers experiencing financial difficulty  -   -   -   -   - 
    Loans past due 90 days or more and still accruing  106   110   1   437   894 
    Total non-performing loans  14,090   19,168   17,228   17,801   18,283 
    Other real estate owned  10   10   427   677   677 
    Total non-performing assets $14,100  $19,178  $17,655  $18,478  $18,960 
    Non-performing loans to total loans  0.24%  0.33%  0.31%  0.33%  0.35%
    Non-performing assets to total assets  0.17%  0.23%  0.22%  0.24%  0.25%
    Allowance for credit losses on loans to total loans  1.38%  1.38%  1.39%  1.43%  1.44%
    Allowance for credit losses on loans to average loans  1.39%  1.40%  1.42%  1.47%  1.45%
    Allowance for credit losses on loans to non-performing loans  574%  414%  453%  437%  414%
    Net (charge-offs) recoveries $348  $(4,472) $(1,935) $(113) $(108)
    Net (charge-offs) recoveries to average loans (6)  0.01%  -0.08%   -0.04%  0.00%  0.00%
                         
    Other Information                    
    Total assets under management (in millions) $7,496  $7,160  $6,670  $6,976  $6,764 
    Full-time equivalent employees  1,062   1,075   1,056   1,056   1,028 
                         
    (1) - Detail of Provision for credit losses follows:
               
    (in thousands) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
    Provision for credit losses - loans $1,175  $5,771  $2,300  $2,150  $2,250 
    Provision for credit losses - off balance sheet exposures  250   275   475   200   375 
    Total provision for credit losses $1,425  $6,046  $2,775  $2,350  $2,625 
               
    (2) - The efficiency ratio, a non-GAAP measure, equals total non-interest expenses divided by the sum of net interest income (FTE) and non-interest income.
     
    (3) - The following table provides a reconciliation of total stockholders’ equity in accordance with GAAP to tangible stockholders’ equity, a non-GAAP disclosure. Bancorp 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
    (In thousands, except per share data) 3/31/24 12/31/23 9/30/23 6/30/23 3/31/23
    Total stockholders' equity - GAAP (a) $874,711  $858,103  $806,918  $808,082  $794,368 
    Less: Goodwill  (194,074)  (194,074)  (194,074)  (194,074)  (194,074)
    Less: Core deposit and other intangibles  (19,252)  (20,304)  (21,471)  (22,638)  (23,810)
    Tangible common equity - Non-GAAP (c) $661,385  $643,725  $591,373  $591,370  $576,484 
               
    Total assets - GAAP (b) $8,123,128  $8,170,102  $7,903,430  $7,732,552  $7,667,648 
    Less: Goodwill  (194,074)  (194,074)  (194,074)  (194,074)  (194,074)
    Less: Core deposit and other intangibles  (19,252)  (20,304)  (21,471)  (22,638)  (23,810)
    Tangible assets - Non-GAAP (d) $7,909,802  $7,955,724  $7,687,885  $7,515,840  $7,449,764 
               
    Total stockholders' equity to total assets - GAAP (a/b)  10.77%  10.50%  10.21%  10.45%  10.36%
    Tangible common equity to tangible assets - Non-GAAP (c/d)  8.36%  8.09%  7.69%  7.87%  7.74%
                         
    Total shares outstanding (e)  29,393   29,329   29,323   29,323   29,324 
                         
    Book value per share - GAAP (a/e) $29.76  $29.26  $27.52  $27.56  $27.09 
    Tangible common equity per share - Non-GAAP (c/e)  22.50   21.95   20.17   20.17   19.66 
                         
    (4) - Return on average assets equals net income divided by total average assets, annualized to reflect a full year return on average assets. Similarly, return on average equity equals net income divided by total average equity, annualized to reflect a full year return on average equity. 
     
    (5) - Interest income on a FTE 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.
     
    (6) - Quarterly net (charge-offs) recoveries to average loans ratios are not annualized.

     


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