SYBT Reports Record Deposit Growth in a
Difficult Operating Environment
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 second quarter ended June 30, 2020. Net
income for the second quarter was $13.4 million, or $0.59 per
diluted share, compared with net income of $16.5 million, or $0.72
per diluted share, for the second quarter of 2019. The
comparability of second quarter net income was impacted by a
favorable state tax law change and acquisition deal costs during
the second quarter of 2019.
(dollar amounts in thousands, except per
share data)
2Q20
1Q20
2Q19
Net interest income
$ 33,528
$ 32,446
$ 30,802
Provision for credit losses
5,550
5,550
–
Non-interest income
12,622
12,536
12,224
Non-interest expenses
24,884
23,950
25,453
Income before income tax
expense
15,716
15,482
17,573
Income tax expense
2,348
2,250
1,030
Net income
$ 13,368
$ 13,232
$ 16,543
Net income per share, diluted
$ 0.59
$ 0.58
$ 0.72
Net interest margin
3.27%
3.71%
3.81%
Efficiency ratio
53.87%
53.19%
59.08%
Tangible common equity to
tangible assets(1)
9.39%
10.48%
10.85%
Annualized return on average
equity
12.90%
13.18%
17.40%
Annualized return on average
assets
1.25%
1.43%
1.93%
In commenting on the second quarter results, Chief Executive
Officer James A. (Ja) Hillebrand said, “In this quarter of
significant pandemic-related and broad-based economic challenges,
we delivered solid results, as we continued to work diligently to
support customers, communities and our employees while prudently
managing risk. Our second quarter results reflect the benefit of
our diversified business model with pre-tax, pre-provision income
increasing 21%(2), led by record mortgage banking income and
controlled non-interest expenses when compared to the same quarter
last year.
“Our team of lenders rose to the challenge during the quarter,
as our participation in the Small Business Administration’s (SBA)
Paycheck Protection Program (PPP) stood out in our markets. Our
expertise, agility and ultimate success in this arena as a
community bank not only allowed us to assist over 3,200 customers
and originate $647 million in loans, but also add new relationships
with strong future growth opportunities.
“Despite minimal charge-offs and sound credit metrics, under the
CECL methodology we recorded a significant provision for credit
losses during the second quarter based on the predicted impact of
the pandemic due to rising unemployment forecasts and changing
macro-economic conditions. While we realize the recovery may be a
marathon and not a sprint, having significant loan reserves,
excluding PPP loans of 1.68%(3), brings a strong sense of comfort
as we navigate through the pandemic.”
Key factors impacting second quarter of 2020 results
included:
- Record deposit growth of $528 million, or 17%, with the
majority of the growth in non-interest bearing products.
- Loan growth of $527 million for the quarter - aided by PPP
originations.
- Despite significant average loan balance growth over the second
quarter of 2019, net interest margin compressed 54 basis points to
3.27%, affected by the 225 basis point drop in the Federal Funds
Target Rate (FFTR) over the past 12 months, along with the impact
of significant growth in PPP loans and excess liquidity due to
deposit growth.
- A concentration of commercial and industrial (C&I)
borrowers paid down their operating lines of credit during the
second quarter. The overall decline in line utilization led to the
recording of $1.5 million in additional non-interest expense
related to credit exposures for unfunded off-balance sheet
commitments. The Bank had a total liability of $6 million accrued
at June 30, 2020 related to such exposures.
- Non-interest income increased $398 thousand, or 3%, over the
second quarter of 2019, driven by record mortgage banking results
and solid performance from the Wealth Management and Trust
(WM&T) and Treasury Management areas.
- Non-interest expenses were well-controlled during the period
and declined over the second quarter of 2019, which included
acquisition deal costs.
Hillebrand added, “In a very difficult operating environment, we
achieved increases in both net interest income, fueled by PPP loan
growth and falling deposit costs, and non-interest income led by
record mortgage banking income. We have also continued our
conservative stance towards credit, preparing our balance sheet for
the potential impacts of the pandemic. Also, we were honored to
once again be ranked in the top 10% of community banks through the
2019 Raymond James Community Bankers Cup based on profitability,
operational efficiency and balance sheet metrics.
“Against the backdrop of the pandemic and disruptions in our
geographic locations, our team has focused intently on controlling
what we can in order to protect our business. We feel that we have
adequately reserved for future contingencies based upon the current
economic environment, unemployment forecasts and consumer behavior
trends. Further, we have taken full advantage of investments made
in technology in order to continue to service and stay connected to
our customers, worked aggressively to protect our financial
position and taken actions to ensure that we are well-positioned to
drive our business forward. We also continue to monitor all state
and local developments in order to protect our employees and
customers. Based on our strong capital base, diversified loan
portfolio, conservative loan underwriting philosophy and multiple
sources of revenue, we expect to navigate these uncertain times
and, I believe, come out of the current crisis stronger than we
entered.”
Results of Operations – Second Quarter
2020 Compared with Second Quarter 2019
Net interest income – the Company’s largest source of revenue –
increased approximately $2.7 million, or 9%, to $33.5 million
driven primarily by a 27% increase in average earning assets,
offset by a decline in net interest margin.
- Total interest income declined $490 thousand, or 1%, to $36.5
million, as a 27% increase in average earning assets was more than
offset by interest rate contraction.
- Interest expense decreased $3.2 million, or 52%, to $3.0
million. The decline in interest bearing deposit costs more than
offset the significant increase in average balances, as the Bank
has benefited from the strategic lowering of stated deposit
rates.
- Net interest margin decreased 54 basis points to 3.27% from
3.81%, as the Federal Reserve dropped short-term rates 225 basis
points over the last 12 months. Beyond potential pricing
pressure/competition and the absolute low level of rates, the
current economic outlook and prospects of a sustained historic low
rate environment, the Company has maintained significantly higher
levels of excess balance sheet liquidity driven in part by the
funding of PPP loans. To date, the Bank has funded PPP loans from
deposit growth. The PPP loans had an 11 basis point negative impact
to net interest margin, while excess liquidity had an even larger
impact.
Loan loss provisioning for the second quarter of 2020 was
significantly affected by the economic crisis and corresponding
impact on national unemployment forecast adjustments within the
CECL model. The provision for the second quarter of 2020 reflected
$4.6 million related to the potential impact of the pandemic,
offset by a reduction of $1.1 million associated with non-PPP loan
portfolio contraction. Additionally, during the second quarter, the
Bank recorded a $2.0 million specific reserve related to a
commercial real estate (CRE) loan that was placed on non-accrual
status.
Non-interest income increased $398 thousand, or 3%, to $12.6
million.
- WM&T income increased $64 thousand, or 1%, due to the
second quarter market rebound that started in April and continued
to the end of the quarter.
- Mortgage banking revenue increased $862 thousand, or 113%, as
sustained low mortgage rates continued to entice mortgage
refinancing and resulted in a record number of loans sold during
the quarter.
- Deposit service charges decreased $460 thousand, or 37%, and
debit/credit card income decreased $105 thousand, or 5%, due to
significantly lower transaction volumes in the COVID-19
environment.
- While the pandemic has also slowed business spending/activity
and international trade, treasury management income continues to
stand out as a consistent, growing source of revenue for the
Company, increasing 4%. The Treasury Management department was able
to overcome the significant decline in pandemic-related transaction
volume with new product sales and expansion within its customer
base. The demand for treasury products has increased during the
pandemic, as these products allow customers to operate more
efficiently in a decentralized environment.
Non-interest expenses decreased $569 thousand, or 2%, to $24.9
million.
- Compensation expense for the second quarter of 2020 decreased
$952 thousand, or 7%, primarily due to the volume of PPP loan
originations and the associated deferred salary costs and a
reduction in expected bonus levels compared to 2019, which was a
record year. In addition, compensation expense for the same period
last year included severance expenses associated with an
acquisition.
- Net occupancy and equipment expenses increased $122 thousand,
or 6%, primarily due to branch expansion over the past 12
months.
- Technology and communication expense for the second quarter of
2020 increased $99 thousand, or 5%, compared with the prior year
quarter, consistent with expanding customer facing software/system
functionality and the resulting higher licensing/maintenance
expense.
- Marketing and business development expense, which includes all
costs associated with promoting the Bank, community investment,
retaining customers and acquiring new business, decreased $438
thousand in the second quarter of 2020, mainly due to less
prospective customer entertainment and travel due to the
pandemic.
- Legal and professional fees decreased $895 thousand, or 59%, as
a result of higher levels of professional fees in the prior year
period as a result of acquisition expenses.
- Expenses related to capital and deposit based taxes increased
$258 thousand, or 27%, in line with overall balance sheet growth
driven by significant loan and deposit growth.
- Credit loss expense for off-balance sheet credit exposures
increased $1.5 million related to the decline in credit line
utilization.
Financial Condition – June 30, 2020
Compared with December 31, 2019
Total loans increased $619 million, or 22%, during the first six
months of the year. Excluding the PPP loan portfolio, total loans
contracted $11 million, with $67 million of growth in the CRE
portfolio offset by a $74 million decline in the C&I portfolio
– primarily operating lines of credit.
In response to requests from borrowers who experienced business
interruptions or personal cash flow interruptions related to the
pandemic, the Company has made short-term (predominantly 3 months)
loan modifications involving primarily full-payment deferrals.
Through the close of the second quarter, approximately $502 million
in full payment deferrals had been processed, with the largest
concentration in the CRE and C&I segments. Approximately 85% of
these short-term deferrals were made during the month of April with
the subsequent pace slowing significantly. Pursuant to the CARES
Act, these loan deferrals are not included in non-performing loan
statistics.
The Company’s management team continues to analyze the evolving
economic conditions in its markets while closely monitoring credit
metrics, particularly related to the following pandemic sensitive
industries:
Industry Segments (dollars in
millions)
Outstanding
% of Total Loans *
Shopping Centers
$
58
2.0 %
Lodging / Hotels
62
2.2 %
Nursing homes / Residential
Care
50
1.8 %
Recreation / Entertainment
56
2.0 %
Restaurants / Bars
30
1.0 %
Travel Related
24
0.8 %
* - Total loans exclude PPP
loans.
Total deposits increased $593 million, or 19%, from December 31,
2019 to June 30, 2020 with non-interest bearing deposits
representing $395 million of the increase. Both period end and
average deposit balances ended at record levels at June 30, 2020 in
part as a result of the second quarter PPP. Commercial customers
who were awarded SBA PPP funding have generally been slow in
deploying the funds held on deposit at the Bank. In addition,
customers appear to be exhibiting subdued behavior similar to the
Great Recession and maintaining higher deposit balances in
general.
At June 30, 2020, the Company remained “well capitalized” – the
highest regulatory capital rating for financial institutions with
increases in all capital ratios with the exception of the leverage
ratio due to outsized balance sheet growth attributed to PPP
participation. Total equity to assets was 9.69% and the tangible
common equity ratio was 9.39%(1) at June 30, 2020, compared to
10.91% and 10.55%(1), respectively, at December 31, 2019, with the
decline attributable to the January 1, 2020 CECL adoption, the
prior year acquisition and the impact of loan growth – especially
PPP. The Company expects to continue to build capital levels given
the current environment.
In May 2020, the Company’s Board of Directors continued the
dividend rate of $0.27 per common share initially set in November
2019. Given the current economic uncertainty, the Company is
committed to maintaining its current dividend level and will
continue to evaluate the related impact on capital levels
quarterly.
Based on recent economic developments and the increased
importance of capital preservation, no shares were repurchased in
2020. Approximately 741 thousand shares remain eligible for
repurchase under the current buy-back plan.
Results of Operations – Second Quarter
2020 Compared with First Quarter 2020
Net interest income increased $1.1 million over the prior
quarter to $33.5 million, reflecting strong average balance sheet
growth offset by significant interest rate movement over the same
period.
Loan provisioning in 2020 has been significantly impacted by the
economic crisis and its impact upon the national unemployment
forecast within the CECL model, changes in the loan mix and the
addition of a large specific reserve during the second quarter of
2020.
Non-interest income increased $86 thousand to $12.6 million.
- A significant increase in mortgage banking income was offset by
declines in WM&T income and deposit service charges. WM&T
income was boosted in the first quarter of 2020 by a large
non‑recurring estate fee and deposit service charges reflect
changes in customer behavior during the pandemic.
- Other non-interest income increased $315 thousand primarily due
to a fair value adjustment related to a company owned life
insurance policy that is tied to stock market performance.
Non-interest expenses increased $934 thousand, or 4%, to $24.9
million.
- Compensation expense decreased $470 thousand to $11.8 million
compared with the first quarter of 2020, due to elevated deferred
salary costs associated with PPP loan originations.
- Marketing and business development expenses declined consistent
with less prospective customer entertainment and travel due to the
pandemic.
- Credit loss expense for off-balance sheet credit exposures
increased $1.1 million to $1.5 million correlating with the decline
in credit line utilization.
Financial Condition – June 30, 2020
Compared with March 31, 2020
Total loans increased $527 million, or 18%, primarily
attributable to the PPP program. Excluding the PPP portfolio, total
loans contracted $103 million with the largest decline in the
C&I category. Total line of credit usage declined significantly
to 39% as of June 30, 2020 from 45% at March 31, 2020.
Total deposits increased $528 million, or 17%, on a linked
quarter basis. Commercial customers who were awarded SBA PPP
funding have generally been cautious in deploying the funds held on
deposit at the Bank. In addition, customers appear to be exhibiting
subdued behavior and are maintaining higher deposit balances in
general.
Stockholders’ equity increased $11 million in the second quarter
of 2020 compared with the prior quarter, with net income of $13.4
million and the positive change in equity related to the Bank’s
investment portfolio offset by dividends declared.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $4.3
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 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 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; the effects of the FRB’s benchmark interest
rate cuts on liquidity and margins; the potential adverse effects
of the coronavirus or any other pandemic on the ability of
borrowers to satisfy their obligations to the Company, the level of
the Company’s non-performing assets, the demand for the Company’s
loans or its other products and services, other aspects of the
Company’s business and operations, and financial markets and
economic growth, 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, 2019.
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Second Quarter 2020 Earnings Release (In
thousands unless otherwise noted)
Three Months Ended Six
Months Ended June 30, June 30, Income
Statement Data
2020
2019
2020
2019
Net interest income, fully tax equivalent (4)
$ 33,573
$ 30,857
$ 66,066
$ 60,597
Interest income: Loans
$ 34,099
$ 33,447
$ 67,848
$ 65,018
Federal funds sold and interest bearing due from banks
88
830
619
1,563
Mortgage loans held for sale
125
43
186
80
Securities
2,194
2,676
4,735
5,391
Total interest income
36,506
36,996
73,388
72,052
Interest expense: Deposits
2,607
5,652
6,569
10,718
Securities sold under agreements to repurchase and
other short-term borrowings
10
92
55
177
Federal Home Loan Bank (FHLB) advances and other long-term debt
361
450
790
671
Total interest expense
2,978
6,194
7,414
11,566
Net interest income
33,528
30,802
65,974
60,486
Provision for credit losses
5,550
-
11,100
600
Net interest income after provision for credit losses
27,978
30,802
54,874
59,886
Non-interest income: Wealth management and trust services
5,726
5,662
11,944
11,101
Deposit service charges
800
1,260
2,083
2,438
Debit and credit card income
2,063
2,168
4,043
3,912
Treasury management fees
1,249
1,202
2,533
2,359
Mortgage banking income
1,622
760
2,468
1,210
Net investment product sales commissions and fees
391
364
857
720
Bank owned life insurance
176
184
355
362
Other
595
624
875
1,130
Total non-interest income
12,622
12,224
25,158
23,232
Non-interest expenses: Compensation
11,763
12,715
23,996
24,516
Employee benefits
2,871
2,807
6,038
5,362
Net occupancy and equipment
2,089
1,967
3,970
3,816
Technology and communication
1,947
1,848
3,960
3,621
Debit and credit card processing
603
631
1,259
1,218
Marketing and business development
465
903
1,025
1,528
Postage, printing and supplies
442
410
883
816
Legal and professional
628
1,523
1,251
2,057
Amortization of investments in tax credit partnerships
53
52
89
104
Capital and deposit based taxes
1,225
967
2,255
1,871
Credit loss expense for off-balance sheet exposures
1,475
-
1,850
-
Other
1,323
1,630
2,258
3,156
Total non-interest expenses
24,884
25,453
48,834
48,065
Income before income tax expense
15,716
17,573
31,198
35,053
Income tax expense
2,348
1,030
4,598
2,869
Net income
$ 13,368
$ 16,543
$ 26,600
$ 32,184
Net income per share - Basic
$ 0.59
$ 0.73
$ 1.18
$ 1.42
Net income per share - Diluted
0.59
0.72
1.17
1.40
Cash dividend declared per share
0.27
0.26
0.54
0.51
Weighted average shares - Basic
22,560
22,689
22,538
22,675
Weighted average shares - Diluted
22,739
22,949
22,737
22,948
June 30, Balance Sheet Data
2020
2019
Loans
$ 3,464,077
$ 2,763,880
Allowance for credit losses
47,708
26,416
Total assets
4,334,533
3,463,823
Non-interest bearing deposits
1,205,253
777,652
Interest bearing deposits
2,521,903
2,105,801
FHLB advances
61,432
84,279
Stockholders' equity
420,231
389,365
Total shares outstanding
22,667
22,721
Book value per share (1)
$ 18.54
$ 17.14
Tangible common equity per share (1)
17.89
16.46
Market value per share
40.20
36.15
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Second Quarter 2020 Earnings Release
Three Months Ended Six Months Ended June 30,
June 30, Average Balance Sheet Data
2020
2019
2020
2019
Federal funds sold and interest bearing due from banks
$ 285,617
$ 137,130
$ 227,090
$ 129,701
Mortgage loans held for sale
18,010
3,794
11,481
2,766
Securities available for sale
412,368
435,391
429,525
436,498
FHLB stock
11,284
10,590
11,284
10,392
Loans
3,396,767
2,658,036
3,144,218
2,593,712
Total earning assets
4,124,046
3,244,941
3,823,598
3,173,069
Total assets
4,317,430
3,436,175
4,013,775
3,354,172
Interest bearing deposits
2,500,315
2,112,768
2,408,545
2,080,976
Total deposits
3,713,451
2,867,360
3,416,847
2,805,872
Securities sold under agreement to repurchase and other short-term
borrowings
49,940
51,743
46,840
50,357
FHLB advances and other long-term borrowings
63,896
74,420
68,918
61,264
Total interest bearing liabilities
2,614,151
2,238,931
2,524,303
2,192,597
Total stockholders' equity
416,920
381,270
410,311
376,198
Performance Ratios Annualized return on average
assets
1.25%
1.93%
1.33%
1.93%
Annualized return on average equity
12.90%
17.40%
13.04%
17.25%
Net interest margin, fully tax equivalent
3.27%
3.81%
3.47%
3.85%
Non-interest income to total revenue, fully tax equivalent
27.32%
28.37%
27.58%
27.71%
Efficiency ratio, fully tax equivalent (5)
53.87%
59.08%
53.53%
57.34%
Capital Ratios Total stockholders' equity to total
assets (1)
9.69%
11.24%
Tangible common equity to tangible assets (1)
9.39%
10.85%
Average stockholders' equity to average assets
10.22%
11.22%
Total risk-based capital
13.50%
12.67%
Common equity tier 1 risk-based capital
12.39%
11.82%
Tier 1 risk-based capital
12.39%
11.82%
Leverage
9.50%
10.91%
Loan Segmentation Commercial real estate - non-owner
occupied
$ 815,464
$ 706,310
Commercial real estate - owner occupied
472,457
440,216
Commercial and industrial
764,480
837,752
Commercial and industrial - PPP
630,082
-
Residential real estate - owner occupied
215,891
247,789
Residential real estate - non-owner occupied
139,121
105,509
Construction and land development
255,447
253,358
Home equity lines of credit
103,672
99,610
Consumer
43,758
43,937
Leases
14,843
21,914
Credit cards - commercial
8,862
7,485
Total loans and leases
$ 3,464,077
$ 2,763,880
Asset Quality Data Non-accrual loans
$ 14,262
$ 3,030
Troubled debt restructurings
45
37
Loans past due 90 days or more and still accruing
48
861
Total non-performing loans
14,355
3,928
Other real estate owned
493
563
Total non-performing assets
$ 14,848
$ 4,491
Non-performing loans to total loans
0.41%
0.14%
Non-performing assets to total assets
0.34%
0.13%
Allowance for credit losses to total loans
1.38%
0.96%
Allowance for credit losses to average loans
1.52%
1.02%
Allowance for credit losses to non-performing loans
332%
673%
Net (charge-offs) recoveries
$ 15
$ (48)
$ (39)
$ 282
Net (charge-offs) recoveries to average loans (6)
0.00%
0.00%
0.00%
0.01%
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Second Quarter 2020 Earnings Release
Quarterly Comparison Income Statement Data
6/30/20 3/31/20 12/31/19 9/30/19
6/30/19 Net interest income, fully tax equivalent (4)
$ 33,573
$ 32,494
$ 32,808
$ 32,167
$ 30,857
Net interest income
$ 33,528
$ 32,446
$ 32,756
$ 32,106
$ 30,802
Provision for credit losses
5,550
5,550
-
400
-
Net interest income after provision for credit losses
27,978
26,896
32,756
31,706
30,802
Non-interest income: Wealth management and trust services
5,726
6,218
5,804
5,738
5,662
Deposit service charges
800
1,283
1,399
1,356
1,260
Debit and credit card income
2,063
1,980
2,109
2,102
2,168
Treasury management fees
1,249
1,284
1,369
1,264
1,202
Mortgage banking income
1,622
846
930
794
760
Net investment product sales commissions and fees
391
466
378
400
364
Bank owned life insurance
176
179
182
487
184
Other
595
280
816
1,068
624
Total non-interest income
12,622
12,536
12,987
13,209
12,224
Non-interest expenses: Compensation
11,763
12,233
13,473
12,330
12,715
Employee benefits
2,871
3,167
2,510
2,819
2,807
Net occupancy and equipment
2,089
1,881
2,374
2,189
1,967
Technology and communication
1,947
2,013
1,636
1,841
1,848
Debit and credit card processing
603
656
613
662
631
Marketing and business development
465
560
1,367
732
903
Postage, printing and supplies
442
441
434
402
410
Legal and professional
628
623
433
524
1,523
Amortization of investments in tax credit partnerships
53
36
837
137
52
Capital and deposit based taxes
1,225
1,030
1,006
993
967
Credit loss expense for off-balance sheet exposures
1,475
375
-
-
-
Other
1,323
935
1,470
1,269
1,630
Total non-interest expenses
24,884
23,950
26,153
23,898
25,453
Income before income tax expense
15,716
15,482
19,590
21,017
17,573
Income tax expense
2,348
2,250
2,941
3,783
1,030
Net income
$ 13,368
$ 13,232
$ 16,649
$ 17,234
$ 16,543
Net income per share - Basic
$ 0.59
$ 0.59
$ 0.74
$ 0.76
$ 0.73
Net income per share - Diluted
0.59
0.58
0.73
0.76
0.72
Cash dividend declared per share
0.27
0.27
0.27
0.26
0.26
Weighted average shares - Basic
22,560
22,516
22,493
22,550
22,689
Weighted average shares - Diluted
22,739
22,736
22,760
22,810
22,949
Quarterly Comparison Balance Sheet Data
6/30/20 3/31/20 12/31/19 9/30/19
6/30/19 Cash and due from banks
$ 46,362
$ 47,662
$ 46,863
$ 68,107
$ 51,264
Federal funds sold and interest bearing due from banks
178,032
206,849
202,861
68,107
64,775
Mortgage loans held for sale
17,364
8,141
8,748
6,329
3,922
Securities available for sale
485,249
445,813
470,738
375,601
423,579
FHLB stock
11,284
11,284
11,284
11,284
11,284
Loans
3,464,077
2,937,366
2,845,016
2,856,664
2,763,880
Allowance for credit losses
47,708
42,143
26,791
26,877
26,416
Total assets
4,334,533
3,784,586
3,724,197
3,533,926
3,463,823
Non-interest bearing deposits
1,205,253
858,883
810,475
795,793
777,652
Interest bearing deposits
2,521,903
2,339,995
2,323,463
2,150,520
2,105,801
Securities sold under agreements to repurchase
42,722
32,366
31,985
33,172
33,809
Federal funds purchased
8,401
9,747
10,887
9,957
12,012
FHLB advances
61,432
69,191
79,953
81,985
84,279
Stockholders' equity
420,231
409,702
406,297
396,111
389,365
Total shares outstanding
22,667
22,665
22,604
22,597
22,721
Book value per share (1)
$ 18.54
$ 18.08
$ 17.97
$ 17.53
$ 17.14
Tangible common equity per share (1)
17.89
17.43
17.32
16.87
16.46
Market value per share
40.20
28.93
41.06
36.69
36.15
Capital Ratios Total stockholders' equity to total
assets (1)
9.69%
10.83%
10.91%
11.21%
11.24%
Tangible common equity to tangible assets (1)
9.39%
10.48%
10.55%
10.83%
10.85%
Average stockholders' equity to average assets
9.66%
10.88%
10.81%
11.22%
11.10%
Total risk-based capital
13.50%
12.75%
12.85%
12.53%
12.67%
Common equity tier 1 risk-based capital
12.39%
11.81%
12.02%
11.69%
11.82%
Tier 1 risk-based capital
12.39%
11.81%
12.02%
11.69%
11.82%
Leverage
9.50%
10.78%
10.60%
10.90%
10.91%
Stock Yards Bancorp, Inc. Financial Information
(unaudited) Second Quarter 2020 Earnings Release
Quarterly Comparison Average Balance Sheet Data
6/30/20 3/31/20 12/31/19 9/30/19
6/30/19 Federal funds sold and interest bearing due
from banks
$ 285,617
$ 168,563
$ 187,865
$ 98,569
$ 137,130
Mortgage loans held for sale
18,010
4,953
5,889
3,887
3,794
Securities available for sale
412,368
449,610
476,360
396,686
435,391
Loans
3,396,767
2,891,668
2,828,142
2,791,389
2,658,036
Total earning assets
4,124,046
3,526,078
3,509,573
3,301,848
3,244,941
Total assets
4,317,430
3,710,119
3,709,250
3,502,267
3,436,175
Interest bearing deposits
2,500,315
2,316,774
2,284,195
2,127,769
2,112,768
Total deposits
3,713,451
3,120,242
3,108,640
2,912,631
2,867,360
Securities sold under agreement to repurchase and other short-term
borrowings
49,940
43,739
49,881
48,376
51,743
FHLB advances
63,896
73,939
80,457
83,386
74,420
Total interest bearing liabilities
2,614,151
2,434,452
2,414,533
2,259,531
2,238,931
Total stockholders' equity
416,920
403,702
400,870
392,840
381,270
Performance Ratios Annualized return on average
assets
1.25%
1.43%
1.78%
1.95%
1.93%
Annualized return on average equity
12.90%
13.18%
16.48%
17.41%
17.40%
Net interest margin, fully tax equivalent
3.27%
3.71%
3.71%
3.87%
3.81%
Non-interest income to total revenue, fully tax equivalent
27.32%
27.84%
28.36%
29.11%
28.37%
Efficiency ratio, fully tax equivalent (5)
53.87%
53.19%
57.11%
52.67%
59.08%
Loans Segmentation Commercial real estate - non-owner
occupied
$ 815,464
$ 799,284
$ 746,283
$ 737,464
$ 706,310
Commercial real estate - owner occupied
472,457
476,534
474,329
458,526
440,216
Commercial and industrial
764,480
883,868
838,800
853,901
837,752
Commercial and industrial - PPP
630,082
-
-
-
-
Residential real estate - owner occupied
215,891
219,221
217,606
221,411
247,789
Residential real estate - non-owner occupied
139,121
134,734
134,995
127,934
105,509
Construction and land development
255,447
246,040
255,816
278,910
253,358
Home equity lines of credit
103,672
107,121
103,854
105,935
99,610
Consumer
43,758
44,939
47,467
43,568
43,937
Leases
14,843
15,476
16,003
19,934
21,914
Credit cards - commercial
8,862
10,149
9,863
9,081
7,485
Total loans and leases
$ 3,464,077
$ 2,937,366
$ 2,845,016
$ 2,856,664
$ 2,763,880
Asset Quality Data Non-accrual loans
$ 14,262
$ 4,235
$ 11,494
$ 2,722
$ 3,030
Troubled debt restructurings
45
52
34
35
37
Loans past due 90 days or more and still accruing
48
1,762
535
487
861
Total non-performing loans
14,355
6,049
12,063
3,244
3,928
Other real estate owned
493
493
493
563
563
Total non-performing assets
$ 14,848
$ 6,542
$ 12,556
$ 3,807
$ 4,491
Non-performing loans to total loans
0.41%
0.21%
0.42%
0.11%
0.14%
Non-performing assets to total assets
0.34%
0.17%
0.34%
0.11%
0.13%
Allowance for credit losses to total loans
1.38%
1.43%
0.94%
0.94%
0.96%
Allowance for credit losses to average loans
1.40%
1.46%
0.95%
0.96%
0.99%
Allowance for credit losses to non-performing loans
332%
697%
222%
829%
673%
Net (charge-offs) recoveries
$ 15
$ (54)
$ (86)
$ 61
$ (48)
Net (charge-offs) recoveries to average loans (6)
0.00%
0.00%
0.00%
0.00%
0.00%
Other Information Total assets under management (in
millions)
$ 3,204
$ 2,961
$ 3,320
$ 3,116
$ 3,068
Full-time equivalent employees
620
618
615
622
615
(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. 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)
6/30/20 3/31/20
12/31/19 9/30/19 6/30/19 Total
stockholders' equity - GAAP (a)
$ 420,231
$ 409,702
$ 406,297
$ 396,111
$ 389,365
Less: Goodwill
(12,513)
(12,513)
(12,513)
(12,593)
(12,826)
Less: Core deposit intangible
(2,122)
(2,203)
(2,285)
(2,373)
(2,461)
Tangible common equity - Non-GAAP (c)
$ 405,596
$ 394,986
$ 391,499
$ 381,145
$ 374,078
Total assets - GAAP (b)
$ 4,334,533
$ 3,784,586
$ 3,724,197
$ 3,533,926
$ 3,463,823
Less: Goodwill
(12,513)
(12,513)
(12,513)
(12,593)
(12,826)
Less: Core deposit intangible
(2,122)
(2,203)
(2,285)
(2,373)
(2,461)
Tangible assets - Non-GAAP (d)
$ 4,319,898
$ 3,769,870
$ 3,709,399
$ 3,518,960
$ 3,448,536
Total stockholders' equity to total assets - GAAP (a/b)
9.69%
10.83%
10.91%
11.21%
11.24%
Tangible common equity to tangible assets - Non-GAAP (c/d)
9.39%
10.48%
10.55%
10.83%
10.85%
Total shares outstanding (e)
22,667
22,665
22,604
22,597
22,721
Book value per share - GAAP (a/e)
$ 18.54
$ 18.08
$ 17.97
$ 17.53
$ 17.14
Tangible common equity per share - Non-GAAP (c/e)
17.89
17.43
17.32
16.87
16.46
(2) - Pre-tax, pre-provision income is a non-GAAP financial
measure. Bancorp believes this non-GAAP metric is important because
it provides a comparable basis after eliminating pandemic related
loan loss provisioning in 2020 in addition to significant state tax
adjustments posted in 2019 related to two separate State tax law
changes.
Quarterly Comparison (Dollars in thousands)
6/30/20 3/31/20 12/31/19 9/30/19
6/30/19 Net interest income
$ 33,528
$ 32,446
$ 32,756
$ 32,106
$ 30,802
Non-interest income
12,622
12,536
12,987
13,209
12,224
Non-interest expenses
24,884
23,950
26,153
23,898
25,453
Pre-tax, pre-provision income - Non-GAAP
$ 21,266
$ 21,032
$ 19,590
$ 21,417
$ 17,573
Pre-tax, pre-provision income - Non-GAAP
$ 21,266
$ 21,032
$ 19,590
$ 21,417
$ 17,573
Provision for credit losses
5,550
5,550
-
400
-
Income tax expense
2,348
2,250
2,941
3,783
1,030
Net income - GAAP
$ 13,368
$ 13,232
$ 16,649
$ 17,234
$ 16,543
(3) - Allowance to total non-PPP loans represents the
allowance for credit losses, divided by total loans less PPP loans.
Bancorp believes this non-GAAP ratio is important because it
provides a comparable ratio after eliminating the PPP loans, which
are fully guaranteed by the U.S. SBA and have not been allocated
for within the allowance for credit losses. Total Loans -
GAAP (b)
$ 3,464,077
$ 2,937,366
$ 2,845,016
$ 2,856,664
$ 2,763,880
Less: PPP loans
(630,082)
-
-
-
-
Total non-PPP Loans - Non-GAAP (c)
$ 2,833,995
$ 2,937,366
$ 2,845,016
$ 2,856,664
$ 2,763,880
Allowance for credit losses (a)
$ 47,708
$ 42,143
$ 26,791
$ 26,877
$ 26,416
Allowance for credit losses to total loans - GAAP (a/b)
1.38%
1.43%
0.94%
0.94%
0.96%
Allowance for credit losses to total loans - Non-GAAP (a/c)
1.68%
1.43%
0.94%
0.94%
0.96%
(4) - 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. (5) - The
efficiency ratio, a non-GAAP measure, equals total non-interest
expenses 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. In addition to the efficiency ratio normally
presented, Bancorp considers an adjusted efficiency ratio. Bancorp
believes this ratio is important because it provides a comparable
ratio after eliminating the fluctuation in non-interest expenses
related to amortization of investments in tax credit partnerships.
Quarterly Comparison (Dollars in thousands)
6/30/20 3/31/20 12/31/19 9/30/19
6/30/19 Total non-interest expenses - GAAP (a)
$ 24,884
$ 23,950
$ 26,153
$ 23,898
$ 25,453
Less: Amortization of investments in tax credit partnerships
(53)
(36)
(837)
(137)
(52)
Total non-interest expenses - Non-GAAP (c)
$ 24,831
$ 23,914
$ 25,316
$ 23,761
$ 25,401
Total net interest income, fully tax equivalent
$ 33,573
$ 32,494
$ 32,808
$ 32,167
$ 30,857
Total non-interest income
12,622
12,536
12,987
13,209
12,224
Less: Gain/loss on sale of securities
-
-
-
-
-
Total revenue - GAAP (b)
$ 46,195
$ 45,030
$ 45,795
$ 45,376
$ 43,081
Efficiency ratio - GAAP (a/b)
53.87%
53.19%
57.11%
52.67%
59.08%
Efficiency ratio - Non-GAAP (c/b)
53.75%
53.11%
55.28%
52.36%
58.96%
(6) - Quarterly net (charge-offs) recoveries to average
loans ratios are not annualized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200722005258/en/
T. Clay Stinnett Executive Vice President, Treasurer and Chief
Financial Officer (502) 625-0890
Stock Yards Bancorp (NASDAQ:SYBT)
Historical Stock Chart
From Mar 2024 to Apr 2024
Stock Yards Bancorp (NASDAQ:SYBT)
Historical Stock Chart
From Apr 2023 to Apr 2024