• Stock Yards Bancorp Reports Third Quarter Earnings of $29.4 Million or $1.00 Per Diluted Share

    Source: Nasdaq GlobeNewswire / 23 Oct 2024 06:30:01   America/Chicago

    LOUISVILLE, Ky., Oct. 23, 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 $29.4 million, or $1.00 per diluted share, for the third quarter ended September 30, 2024. This compares to net income of $27.1 million, or $0.92 per diluted share, for the third quarter of 2023. Continued strong loan growth and net interest margin expansion fueled third quarter operating results.

                
                
    (dollar amounts in thousands, except per share data)3Q24
    		 2Q24
    		 3Q23
    Net income$29,360  $27,598  $27,092 
    Net income per share, diluted 1.00   0.94   0.92 
        
    Net interest income$64,979  $62,022  $61,315 
    Provision for credit losses(1) 4,325   1,300   2,775 
    Non-interest income 24,797   23,655   22,896 
    Non-interest expenses 48,452   49,109   46,702 
        
    Net interest margin 3.33%  3.26%  3.34%
    Efficiency ratio(2) 53.92%  57.26%  55.38%
    Tangible common equity to tangible assets(3) 8.79%  8.42%  7.69%
    Annualized return on average assets(4) 1.39%  1.35%  1.38%
    Annualized return on average equity(4) 12.83%  12.64%  13.26%
                
                

    “Stock Yards delivered the best third quarter in our history, highlighted by strong loan demand and production, solid contributions from our non-interest income revenue sources and linked quarter net interest margin expansion,” commented James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Total loans increased $661 million, or 12%, over the last 12 months, with $207 million of growth generated during the third quarter. We experienced growth within all loan categories and across all markets. Deposit balances expanded $323 million, or 5%, over the past 12 months, with balances growing $157 million, or 2%, during the third quarter. Deposit growth was also spread across all markets, enhanced by strategic time deposit marketing efforts. We continue to focus on organic growth, while avoiding brokered deposits and improving our funding position, which is contributing meaningfully to our net interest margin expansion.”

    “Non-interest revenue once again contributed to our strong operating results for the third quarter of 2024, led by expansion in several categories,” Hillebrand continued. “Treasury management fees continued to benefit from customer base growth and increased transaction volume. WM&T income was boosted by estate fees and solid market conditions. In addition, mortgage, brokerage and card income all posted meaningful contributions. As previously mentioned, we are encouraged by our net interest margin improvement and prospects for continued expansion. Third quarter net interest margin expanded seven basis points on the linked quarter, boosted by substantial loan growth, higher interest earning asset yields and a moderating cost of funds expansion.”

    As of September 30, 2024, the Company had $8.44 billion in assets, $6.28 billion in loans and $6.73 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.

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

    • Total loans increased $661 million, or 12%, over the last 12 months, while growing $207 million, or 3%, on the linked quarter. Broad based loan growth during the quarter included increases in all markets and across all loan categories, with Construction Land & Development (CL&D) growth of $88 million posting the largest gain. The yield earned on loans increased to 6.17% for the third quarter of 2024, benefiting primarily from significant average loan balance growth.
    • Deposit balances expanded $323 million, or 5%, over the last 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $207 million, or 12%, while interest-bearing deposits grew $530 million, or 11%, led by time deposit growth. On the linked quarter, total deposits expanded $157 million, or 2%. Non-interest-bearing demand accounts increased $26 million, or 2%, while total interest-bearing deposit accounts increased $131 million, or 3%.
    • Net interest income increased $3.7 million, or 6%, for the third quarter of 2024 compared to the third quarter a year ago, with net interest margin compressing one basis point to 3.33%. On the linked quarter, net interest income increased $3.0 million, or 5%, while net interest margin expanded 7 basis points to 3.33%.
    • Provision for credit loss expense(1) of $4.3 million was recorded for the third quarter of 2024, primarily attributed to strong loan growth and deterioration within the Federal Reserve Bank’s unemployment rate forecast used in the CECL allowance model. Traditional credit quality statistics remained strong for the quarter.
    • Non-interest income increased $1.9 million, or 8%, over the third quarter of 2023. WM&T income expanded $901,000, or 9%, to $10.9 million, with strong estate fees and improved market conditions more than offsetting a decline in net new business expansion. Treasury management fees grew $304,000, or 12%, over the last 12 months to a record $2.9 million. Card income increased $213,000, or 4% over the third quarter of 2023 consistent with increased transaction volume. Other non-interest income increased $315,000 over the third quarter of 2023, mainly due to increased swap fees collected.
    • Total non-interest expenses increased $1.8 million, or 4%, during the third quarter of 2024 compared to the third quarter of 2023, and decreased $657,000, or 1%, on the linked quarter. Overall, non-interest expenses continued to track closely to management expectations.
    • Tangible common equity per share(3) was $24.58 on September 30, 2024, compared to $23.22 on June 30, 2024, and $20.17 on September 30, 2023.

    Hillebrand concluded, “In September, we were one of only 30 banks in the U.S. to be named a “Sm-All Star” in Piper Sandler’s annual list of top-performing small-cap banks and thrifts in its “Class of 2024.” This elite annual list reflects the top banks in the industry across various metrics including growth, profitability, credit quality and capital strength. We are honored to be recognized by Piper Sandler as one of the top performing community banks in the nation, a testament to the solid foundation we have built to generate long term growth. Being named to this prestigious group is a noteworthy recognition of the hard work and dedication of the entire Stock Yards team.” Stock Yards Bancorp has been named to Piper Sandler’s Sm-All Stars list six times in 2008, 2011, 2019, 2020, 2022 and 2024.

    Results of Operations – Third Quarter 2024, Compared with Third Quarter 2023

    Net interest income, the Company’s largest source of revenue, increased by $3.7 million, or 6%, to $65.0 million. Strong organic loan growth and correlating interest income expansion contributed to net interest income growth.

    • Total interest income increased by $16.8 million, or 19%, to $105.7 million.
      • Interest income and fees on loans increased $17.5 million, or 22%, over the prior year quarter. Consistent with the $688 million, or 13%, increase in average loans and interest rate expansion, the average quarterly yield earned on loans increased 51 basis points over the past 12 months to 6.17%.
      • Interest income on securities decreased $1.1 million, or 13%, compared to the third quarter of 2023. While average securities balances have declined $235 million, or 14%, over the past 12 months, the rate earned on securities improved three basis points to 2.07%. Over the past 12 months, cash flows from investment portfolio maturities and pay downs have been utilized to fund loan growth and in lieu of redeployment into the portfolio.
      • Interest income on overnight funds increased $306,000, or 19%, consistent with the $24 million quarter over prior year quarter average balance increase.
         
    • Total interest expense increased $13.1 million, or 48%, to $40.7 million, as the cost of interest-bearing liabilities increased 68 basis points to 2.84%. For the sixth consecutive linked quarter end, the pace of expansion of total interest-bearing liability costs has slowed.
      • Interest expense on deposits increased $12.6 million over the past 12 months, as the overall cost of interest- bearing deposits increased to 2.68% in the third quarter of 2024 from 1.88% in the third quarter of 2023. Interest expense expansion was spread over most deposit categories, with time deposits and money market interest expense expanding the most at $5.5 million and $4.1 million, respectively.
      • Interest expense on Federal Home Loan Bank (FHLB) advances increased $292,000, or 6%, with the cost of funds declining 37 basis points to 4.49%. Consistent with third quarter investment securities maturities, the Bank relied less on overnight advances during the third quarter of 2024.

    For the third quarter of 2024, consistent with strong loan growth, a deterioration in unemployment rate projections and a slight increase in net charge-offs, offset by a reduction in specific reserves and other factors within the CECL allowance model, the Company recorded provision expense (1) of $4.3 million for loans. In addition, no provision expense for off balance sheet exposures was recorded. For the third quarter of 2023, the Company recorded $2.3 million in provision expense for loans and $475,000 of provision expense for off balance sheet exposures associated with expansion of C&LD and Commercial & Industrial (C&I) lines of credit.

    Non-interest income increased $1.9 million, or 8%, to $24.8 million compared to the third quarter of 2023.

    • WM&T income ended the third quarter of 2024 at $10.9 million, increasing $901,000, or 9%, over the third quarter of 2023. Despite positive equity market performance and strong estate fee revenue, WM&T income was muted by negative net new business.
    • Compared to the third quarter of 2023, treasury management fees increased $304,000, or 12%, to a record $2.9 million. The consistent treasury management growth has been driven by strong transaction volume, organic growth, modified fee schedules, strong foreign exchange income and new product sales.
    • Card income increased $213,000, or 4%, over the third quarter of 2023. Credit card interchange income and annual merchant incentives drove credit card income to a record $1.7 million. In addition, debit card income also posted growth over the prior period.
    • Other non-interest income, which includes swap fees, letter of credit fees and OREO activity, increased by $315,000. While swap fee income was strong in the third quarter of 2024, the Company’s Insurance Captive, which was not renewed in 2024, contributed approximately $302,000 to other non-interest income in the third quarter of 2023.

    Non-interest expenses, which tracked closely with management expectations, increased $1.8 million, or 4%, compared to the third quarter of 2023, to $48.5 million.

    • Compensation and benefits expense increased $2.3 million, or 9%, compared to the third quarter of 2023, consistent with annual merit-based increases and increased bonus levels, partially offset by lower health insurance claims.
    • 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 $264,000, or 6%, consistent with software upgrades and increased compliance-related expense.
    • Card processing expense increased $208,000, or 13%. Debit card interchange expense increased $103,000 while credit card expense increased $105,000, consistent with transaction growth and fraud mitigation efforts.
    • Amortization of investments in tax credit partnerships declined $323,000 compared to the third 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 $831,000, or 31%, compared to the third quarter of 2023, primarily due to modifications made to the corporate credit card reward program and significant declines in check and card losses, as well as the Company’s strategic decision to exit its Insurance Captive, which contributed $275,000 in expense to the third quarter of 2023.

    Financial Condition – September 30, 2024, Compared with September 30, 2023

    Total assets increased $534 million, or 7%, year over year to $8.44 billion.

    Total loans increased $661 million, or 12%, to $6.28 billion, with growth spread across all categories and markets. Total line of credit usage ended at 43.2% as of September 30, 2024, compared to 38.8% as of September 30, 2023, boosted by increased CL&D and C&I line usage. C&I line of credit usage expanded to 31.8% as of period end.

    Total investment securities decreased $229 million, or 16%, year over year. The overall portfolio yield was 2.07% for the third quarter of 2024, compared to 2.04% for the third 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 $323 million, or 5%, over the past 12 months, with the deposit mix continuing to shift from non-interest bearing and low interest-bearing deposits into higher cost deposits. Non-interest-bearing demand accounts declined $207 million, or 12%, while interest-bearing deposits grew $530 million, or 11%, led by $313 million of time deposit growth and $174 million of growth in money market balances.

    Non-performing loans totaled $17 million, or 0.27% of total loans outstanding on September 30, 2024, compared to $17 million, or 0.31% of total loans outstanding on September 30, 2023. The ratio of allowance for credit losses to loans ended at 1.36% on September 30, 2024, compared to 1.39% on September 30, 2023.

    As of September 30, 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 11.07% and the tangible common equity ratio(3) was 8.79% on September 30, 2024, compared to 10.21% and 7.69% on September 30, 2023, respectively.

    In August 2024, the board of directors increased the quarterly cash dividend to $0.31 per common share. The dividend was paid October 1, 2024, to shareholders of record as of September 16, 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 – Third Quarter 2024, Compared with Second Quarter 2024

    Net interest margin improved seven basis points on the linked quarter to 3.33%, boosted by strong loan growth, higher interest earning asset yields and a slow-down in cost of funds expansion.

    Net interest income increased $3.0 million, or 5%, over the prior quarter to $65.0 million.

    • Total interest income increased $5.4 million, or 5%.
      • Interest income, including fees, on loans increased $5.7 million, or 6%. Average loans increased $201 million, or 3%, and the corresponding yield earned increased 11 basis points to 6.17%.
    • Total interest expense increased $2.5 million, or 6%.
      • Interest expense on deposits increased $2.4 million, or 8%, led by a $76 million increase in average interest-bearing deposits concentrated within the time and money market categories.

    The Company recorded $4.3 million in provision for credit losses on loans(1) and no credit loss expense for off-balance sheet exposures during the third quarter of 2024. During the second quarter of 2024, the Company recorded $1.3 million in provision for credit losses, which included a $1.1 million provision for credit losses on loans and $225,000 of credit loss expense for off-balance sheet exposures.

    Non-interest income increased $1.1 million, or 5%, on the linked quarter, with increases in nearly every category.

    Non-interest expenses decreased $657,000 to $48.5 million, as increases in compensation expense were more than offset by decreases in employee benefits, marketing and business development and technology and communication expenses.

    Financial Condition – September 30, 2024, Compared with June 30, 2024

    Total assets increased $122 million, or 1%, on the linked quarter to $8.44 billion.

    Total loans expanded $207 million, or 3%, on the linked quarter, led by increases in nearly every loan category. Total line of credit usage was 43.2% as of September 30, 2024, compared to 41.1% as of June 30, 2024. C&I line of credit usage totaled 31.8% as of September 30, 2024, compared to 30.8% as of June 30, 2024.

    Total deposits increased $157 million, or 2%, on the linked quarter. Non-interest-bearing demand accounts increased $26 million, or 2%, while total interest-bearing deposit accounts increased $131 million, or 3%. Time deposits increased by $119 million and money market balances increased by $82 million on the linked quarter.

    About the Company

    Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $8.44 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.

                
    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    Third Quarter 2024 Earnings Release
    (In thousands unless otherwise noted)
                
     Three Months Ended Nine Months Ended
     September 30, September 30,
    Income Statement Data2024 2023 2024 2023
                
    Net interest income, fully tax equivalent (5)$65,064  $61,437  $187,344  $185,757 
    Interest income:           
    Loans$95,689  $78,234  $271,547  $219,329 
    Federal funds sold and interest bearing due from banks(1,946) (1,640) (6,199) (4,885)
    Mortgage loans held for sale47  55  152  173 
    Federal Home Loan Bank stock663  499  1,601  939 
    Investment securities7,377  8,497  23,072  26,129 
    Total interest income105,722  88,925  302,571  251,455 
    Interest expense:           
    Deposits33,997  21,360  97,486  51,940 
    Securities sold under agreements to repurchase937  597  2,639  1,429 
    Federal funds purchased120  157  395  504 
    Federal Home Loan Bank advances5,209  4,917  13,469  10,613 
    Subordinated debentures480  579  1,511  1,653 
    Total interest expense40,743  27,610  115,500  66,139 
    Net interest income64,979  61,315  187,071  185,316 
    Provision for credit losses (1)4,325  2,775  7,050  7,750 
    Net interest income after provision for credit losses60,654  58,540  180,021  177,566 
    Non-interest income:           
    Wealth management and trust services10,931  10,030  32,497  29,703 
    Deposit service charges2,314  2,272  6,630  6,622 
    Debit and credit card income5,083  4,870  14,688  14,064 
    Treasury management fees2,939  2,635  8,389  7,502 
    Mortgage banking income1,112  814  3,077  2,882 
    Net investment product sales commissions and fees915  791  2,580  2,345 
    Bank owned life insurance634  569  1,817  1,677 
    Gain (loss) on sale of premises and equipment(59) 302  (39) 75 
    Other928  613  2,084  2,933 
    Total non-interest income24,797  22,896  71,723  67,803 
    Non-interest expenses:           
    Compensation25,534  23,379  74,389  67,382 
    Employee benefits4,629  4,508  15,591  14,622 
    Net occupancy and equipment3,775  3,821  11,264  11,234 
    Technology and communication4,500  4,236  14,463  12,706 
    Debit and credit card processing1,845  1,637  5,402  4,762 
    Marketing and business development1,438  1,357  4,109  4,236 
    Postage, printing and supplies901  938  2,740  2,701 
    Legal and professional968  1,049  3,268  2,665 
    FDIC insurance1,095  937  3,368  2,851 
    Capital and deposit based taxes825  629  2,128  1,875 
    Intangible amortization1,052  1,167  3,155  3,519 
    Amortization of investments in tax credit partnerships-  323  -  970 
    Other1,890  2,721  6,645  8,293 
    Total non-interest expenses48,452  46,702  146,522  137,816 
    Income before income tax expense36,999  34,734  105,222  107,553 
    Income tax expense7,639  7,642  22,377  23,749 
    Net income$29,360  $27,092  $82,845  $83,804 
                
    Net income per share - Basic$1.00  $0.93  $2.83  $2.87 
    Net income per share - Diluted1.00  0.92  2.82  2.86 
    Cash dividend declared per share0.31  0.30  0.91  0.88 
                
    Weighted average shares - Basic29,299  29,223  29,277  29,208 
    Weighted average shares - Diluted29,445  29,336  29,396  29,347 
                
         September 30,
    Balance Sheet Data       2024 2023
                
    Investment securities      $1,236,744  $1,465,463 
    Loans      6,278,133  5,617,084 
    Allowance for credit losses on loans      85,343  78,075 
    Total assets      8,437,280  7,903,430 
    Non-interest bearing deposits      1,508,203  1,714,918 
    Interest bearing deposits      5,217,870  4,687,889 
    Federal Home Loan Bank advances      325,000  350,000 
    Accumulated other comprehensive income (loss)      (75,273) (127,905)
    Stockholders' equity      934,094  806,918 
                
    Total shares outstanding      29,414  29,323 
    Book value per share (3)      $31.76  $27.52 
    Tangible common equity per share (3)      24.58  20.17 
    Market value per share      61.99  39.29 
                


    Stock Yards Bancorp, Inc. Financial Information (unaudited)
    Third Quarter 2024 Earnings Release
                
     Three Months Ended
    		 Nine Months Ended
     September 30,
    		 September 30,
    Average Balance Sheet Data2024 2023 2024 2023
                
    Federal funds sold and interest bearing due from banks$148,818  $124,653  $153,755  $132,421 
    Mortgage loans held for sale4,862  7,112  5,230  7,333 
    Investment securities1,424,815  1,659,888  1,498,092  1,710,838 
    Federal Home Loan Bank stock31,193  27,290  27,364  22,663 
    Loans6,174,309  5,486,262  5,986,366  5,337,493 
    Total interest earning assets7,783,997  7,305,205  7,670,807  7,210,748 
    Total assets8,384,605  7,805,154  8,262,017  7,660,658 
    Non-interest bearing deposits1,510,515  1,731,724  1,508,947  1,796,586 
    Interest bearing deposits5,047,771  4,509,411  5,026,185  4,468,160 
    Total deposits6,558,286  6,241,135  6,535,132  6,264,746 
    Securities sold under agreements to repurchase156,865  127,063  156,392  120,740 
    Federal funds purchased8,480  11,776  9,585  13,857 
    Federal Home Loan Bank advances461,141  401,630  392,609  305,220 
    Subordinated debentures26,806  26,606  26,802  26,508 
    Total interest bearing liabilities5,701,063  5,076,486  5,611,573  4,934,485 
    Accumulated other comprehensive income (loss)(88,362) (112,329) (94,560) (107,374)
    Total stockholders' equity910,274  810,710  883,267  796,172 
                
    Performance Ratios           
    Annualized return on average assets (4)1.39% 1.38% 1.34% 1.46%
    Annualized return on average equity (4)12.83% 13.26% 12.53% 14.07%
    Net interest margin, fully tax equivalent3.33% 3.34% 3.26% 3.44%
    Non-interest income to total revenue, fully tax equivalent27.59% 27.15% 27.69% 26.74%
    Efficiency ratio, fully tax equivalent (2)53.92% 55.38% 56.56% 54.35%
                
    Capital Ratios           
    Total stockholders' equity to total assets (3)      11.07% 10.21%
    Tangible common equity to tangible assets (3)      8.79% 7.69%
    Average stockholders' equity to average assets      10.69% 10.39%
    Total risk-based capital      12.73% 12.71%
    Common equity tier 1 risk-based capital      11.16% 11.17%
    Tier 1 risk-based capital      11.52% 11.57%
    Leverage      10.05% 9.80%
                
    Loan Segmentation           
    Commercial real estate - non-owner occupied      $1,686,448  $1,508,615 
    Commercial real estate - owner occupied      949,538  945,122 
    Commercial and industrial      1,379,293  1,251,027 
    Residential real estate - owner occupied      783,337  696,162 
    Residential real estate - non-owner occupied      381,051  350,386 
    Construction and land development      674,918  480,120 
    Home equity lines of credit      236,819  203,184 
    Consumer      143,684  143,703 
    Leases      16,760  14,710 
    Credit cards      26,285  24,055 
    Total loans and leases      $6,278,133  $5,617,084 
                
    Asset Quality Data           
    Non-accrual loans      $16,288  $17,227 
    Modifications to borrowers experiencing financial difficulty      -  - 
    Loans past due 90 days or more and still accruing      870  1 
    Total non-performing loans      17,158  17,228 
    Other real estate owned      10  427 
    Total non-performing assets      $17,168  $17,655 
    Non-performing loans to total loans      0.27% 0.31%
    Non-performing assets to total assets      0.20% 0.22%
    Allowance for credit losses on loans to total loans      1.36% 1.39%
    Allowance for credit  losses on loans to average loans      1.43% 1.46%
    Allowance for credit losses on loans to non-performing loans      497% 453%
    Net (charge-offs) recoveries$(1,137) $(1,935) $(606) $(2,156)
    Net (charge-offs) recoveries to average loans (6)-0.02% -0.04% -0.01% -0.04%
                


    Stock Yards Bancorp, Inc. Financial Information (unaudited)  
    Third Quarter 2024 Earnings Release  
                   
     Quarterly Comparison
    Income Statement Data9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
                   
    Net interest income, fully tax equivalent  (5)$65,064  $62,113  $60,167  $62,112  $61,437 
    Net interest income$64,979  $62,022  $60,070  $62,016  $61,315 
    Provision for credit losses (1)4,325  1,300  1,425  6,046  2,775 
    Net interest income after provision for credit losses60,654  60,722  58,645  55,970  58,540 
    Non-interest income:              
    Wealth management and trust services10,931  10,795  10,771  10,099  10,030 
    Deposit service charges2,314  2,180  2,136  2,244  2,272 
    Debit and credit card income5,083  4,923  4,682  5,374  4,870 
    Treasury management fees2,939  2,825  2,625  2,531  2,635 
    Mortgage banking income1,112  1,017  948  823  814 
    Loss on sale of securities-  -  -  (44) - 
    Net investment product sales commissions and fees915  800  865  860  791 
    Bank owned life insurance634  595  588  576  569 
    Gain (loss) on sale of premises and equipment(59) 20  -  (105) 302 
    Other928  500  656  2,059  613 
    Total non-interest income24,797  23,655  23,271  24,417  22,896 
    Non-interest expenses:              
    Compensation25,534  24,634  24,221  24,494  23,379 
    Employee benefits4,629  5,086  5,876  3,829  4,508 
    Net occupancy and equipment3,775  3,819  3,670  5,150  3,821 
    Technology and communication4,500  4,894  5,069  4,612  4,236 
    Debit and credit card processing1,845  1,811  1,746  1,719  1,637 
    Marketing and business development1,438  1,596  1,075  1,754  1,357 
    Postage, printing and supplies901  913  926  903  938 
    Legal and professional968  1,185  1,115  1,293  1,049 
    FDIC insurance1,095  1,161  1,112  1,060  937 
    Capital and deposit based taxes825  673  630  601  629 
    Intangible amortization1,052  1,051  1,052  1,167  1,167 
    Amortization of investments in tax credit partnerships-  -  -  324  323 
    Other1,890  2,286  2,469  3,107  2,721 
    Total non-interest expenses48,452  49,109  48,961  50,013  46,702 
    Income before income tax expense36,999  35,268  32,955  30,374  34,734 
    Income tax expense7,639  7,670  7,068  6,430  7,642 
    Net income$29,360  $27,598  $25,887  $23,944  $27,092 
                   
                   
    Net income per share - Basic$1.00  $0.94  $0.89  $0.82  $0.93 
    Net income per share - Diluted1.00  0.94  0.88  0.82  0.92 
    Cash dividend declared per share0.31  0.30  0.30  0.30  0.30 
                   
    Weighted average shares - Basic29,299  29,283  29,250  29,226  29,223 
    Weighted average shares - Diluted29,445  29,383  29,361  29,331  29,336 
                   
     Quarterly Comparison
    Balance Sheet Data9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
                   
    Cash and due from banks$108,825  $85,441  $71,676  $94,466  $79,538 
    Federal funds sold and interest bearing due from banks144,241  118,910  88,547  171,493  113,499 
    Mortgage loans held for sale4,822  6,438  6,462  6,056  6,535 
    Investment securities1,236,744  1,342,354  1,379,212  1,471,016  1,465,453 
    Federal Home Loan Bank stock29,419  31,462  24,675  16,236  26,241 
    Loans6,278,133  6,070,963  5,849,715  5,771,038  5,617,084 
    Allowance for credit losses on loans85,343  82,155  80,897  79,374  78,075 
    Goodwill194,074  194,074  194,074  194,074  194,074 
    Total assets8,437,280  8,315,325  8,123,128  8,170,102  7,903,430 
    Non-interest bearing deposits1,508,203  1,482,514  1,481,217  1,548,624  1,714,918 
    Interest bearing deposits5,217,870  5,086,724  5,127,863  5,122,124  4,687,889 
    Securities sold under agreements to repurchase149,852  152,948  162,528  152,991  113,894 
    Federal funds purchased6,442  10,029  9,961  12,852  11,518 
    Federal Home Loan Bank advances325,000  400,000  200,000  200,000  350,000 
    Subordinated debentures26,806  26,806  26,806  26,740  26,641 
    Accumulated other comprehensive income (loss)(75,273) (94,980) (95,054) (92,798) (127,905)
    Stockholders' equity934,094  894,535  874,711  858,103  806,918 
                   
    Total shares outstanding29,414  29,388  29,393  29,329  29,323 
    Book value per share (3)31.76  $30.44  $29.76  $29.26  $27.52 
    Tangible common equity per share (3)24.58  23.22  22.50  21.95  20.17 
    Market value per share61.99  49.67  48.91  51.49  39.29 
                   
    Capital Ratios              
    Total stockholders' equity to total assets (3)11.07% 10.76% 10.77% 10.50% 10.21%
    Tangible common equity to tangible assets (3)8.79% 8.42% 8.36% 8.09% 7.69%
    Average stockholders' equity to average assets10.86% 10.65% 10.56% 10.07% 10.39%
    Total risk-based capital12.73% 12.62% 12.69% 12.56% 12.71%
    Common equity tier 1 risk-based capital11.16% 11.07% 11.11% 11.04% 11.17%
    Tier 1 risk-based capital11.52% 11.43% 11.49% 11.43% 11.57%
    Leverage10.05% 9.95% 9.82% 9.62% 9.80%
                   


    Stock Yards Bancorp, Inc. Financial Information (unaudited)   
    Third Quarter 2024 Earnings Release   
                   
     Quarterly Comparison
    Average Balance Sheet Data9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
                   
    Federal funds sold and interest bearing due from banks$148,818  $158,512  $153,990  $258,950  $124,653 
    Mortgage loans held for sale4,862  6,204  4,629  5,305  7,112 
    Investment securities1,424,815  1,491,865  1,578,401  1,618,799  1,659,888 
    Federal Home Loan Bank stock31,193  29,735  21,121  20,519  27,290 
    Loans6,174,309  5,973,801  5,808,924  5,676,193  5,486,262 
    Total interest earning assets7,783,997  7,660,117  7,567,065  7,579,766  7,305,205 
    Total assets8,384,605  8,246,735  8,153,364  8,116,569  7,805,154 
    Non-interest bearing deposits1,510,515  1,515,708  1,500,602  1,663,962  1,731,724 
    Interest bearing deposits5,047,771  4,971,804  5,058,743  5,025,240  4,509,411 
    Total deposits6,558,286  6,487,512  6,559,345  6,689,202  6,241,135 
    Securities sold under agreement to repurchase156,865  147,327  164,979  130,148  127,063 
    Federal funds purchased8,480  10,127  10,161  13,606  11,776 
    Federal Home Loan Bank advances461,141  441,484  274,451  205,435  401,630 
    Subordinated debentures26,806  26,806  26,794  26,706  26,606 
    Total interest bearing liabilities5,701,063  5,597,548  5,535,128  5,401,135  5,076,486 
    Accumulated other comprehensive income (loss)(88,362) (99,640) (95,747) (125,843) (112,329)
    Total stockholders' equity910,274  878,233  861,029  817,682  810,710 
                   
    Performance Ratios              
    Annualized return on average assets (4)1.39% 1.35% 1.28% 1.17% 1.38%
    Annualized return on average equity (4)12.83% 12.64% 12.09% 11.62% 13.26%
    Net interest margin, fully tax equivalent3.33% 3.26% 3.20% 3.25% 3.34%
    Non-interest income to total revenue, fully tax equivalent27.59% 27.58% 27.89% 28.22% 27.15%
    Efficiency ratio, fully tax equivalent (2)53.92% 57.26% 58.68% 57.80% 55.38%
                   
    Loans Segmentation              
    Commercial real estate - non-owner occupied$1,686,448  $1,652,614  $1,609,483  $1,561,689  $1,508,615 
    Commercial real estate - owner occupied949,538  943,013  931,973  907,424  945,122 
    Commercial and industrial1,379,293  1,356,970  1,293,696  1,307,128  1,251,027 
    Residential real estate - owner occupied783,337  749,870  723,234  708,893  696,162 
    Residential real estate - non-owner occupied381,051  365,846  360,958  358,715  350,386 
    Construction and land development674,918  586,820  532,183  531,324  480,120 
    Home equity lines of credit236,819  223,304  212,443  211,390  203,184 
    Consumer143,684  151,221  145,022  145,340  143,703 
    Leases16,760  17,258  16,619  15,503  14,710 
    Credit cards26,285  24,047  24,104  23,632  24,055 
    Total loans and leases$6,278,133  $6,070,963  $5,849,715  $5,771,038  $5,617,084 
                   
    Asset Quality Data              
    Non-accrual loans$16,288  $17,371  $13,984  $19,058  $17,227 
    Modifications to borrowers experiencing financial difficulty-  -  -  -  - 
    Loans past due 90 days or more and still accruing870  186  106  110  1 
    Total non-performing loans17,158  17,557  14,090  19,168  17,228 
    Other real estate owned10  10  10  10  427 
    Total non-performing assets$17,168  $17,567  $14,100  $19,178  $17,655 
    Non-performing loans to total loans0.27% 0.29% 0.24% 0.33% 0.31%
    Non-performing assets to total assets0.20% 0.21% 0.17% 0.23% 0.22%
    Allowance for credit losses on loans to total loans1.36% 1.35% 1.38% 1.38% 1.39%
    Allowance for credit losses on loans to average loans1.38% 1.38% 1.39% 1.40% 1.42%
    Allowance for credit losses on loans to non-performing loans497% 468% 574% 414% 453%
    Net (charge-offs) recoveries$(1,137) $183  $348  $(4,472) $(1,935)
    Net (charge-offs) recoveries to average loans (6)-0.02% 0.00% 0.01% -0.08% -0.04%
                   
    Other Information              
    Total WM&T assets under management (in millions)$7,317  $7,479  $7,496  $7,160  $6,670 
    Full-time equivalent employees1,068  1,051  1,062  1,075  1,056 
                   


    (1) - Detail of Provision for credit losses follows:
     Quarterly Comparison
    (in thousands)9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
    Provision for credit losses - loans$4,325  $1,075  $1,175  $5,771  $2,300 
    Provision for credit losses - off balance sheet exposures-  225  250  275  475 
    Total provision for credit losses$4,325  $1,300  $1,425  $6,046  $2,775 
                   
    (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.
     Quarterly Comparison
    (Dollars in thousands)9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
    Total non-interest expenses  (a)$48,452  $49,109  $48,961  $50,013  $46,702 
                   
    Total net interest income, fully tax equivalent$65,064  $62,113  $60,167  $62,112  $61,437 
    Total non-interest income24,797  23,655  23,271  24,417  22,896 
    Total revenue - Non-GAAP (b)89,861  85,768  83,438  86,529  84,333 
                   
    Efficiency ratio - Non-GAAP (a/b)53.92% 57.26% 58.68% 57.80% 55.38%
                   
    (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)9-30-24 6-30-24 3-31-24 12-31-23 9-30-23
    Total stockholders' equity - GAAP (a)$934,094  $894,535  $874,711  $858,103  $806,918 
    Less: Goodwill(194,074) (194,074) (194,074) (194,074) (194,074)
    Less: Core deposit and other intangibles(17,149) (18,201) (19,252) (20,304) (21,471)
    Tangible common equity - Non-GAAP (c)$722,871  $682,260  $661,385  $643,725  $591,373 
                   
    Total assets - GAAP (b)$8,437,280  $8,315,325  $8,123,128  $8,170,102  $7,903,430 
    Less: Goodwill(194,074) (194,074) (194,074) (194,074) (194,074)
    Less: Core deposit and other intangibles(17,149) (18,201) (19,252) (20,304) (21,471)
    Tangible assets - Non-GAAP (d)$8,226,057  $8,103,050  $7,909,802  $7,955,724  $7,687,885 
                   
    Total stockholders' equity to total assets - GAAP (a/b)11.07% 10.76% 10.77% 10.50% 10.21%
    Tangible common equity to tangible assets - Non-GAAP (c/d)8.79% 8.42% 8.36% 8.09% 7.69%
                   
    Total shares outstanding (e)29,414  29,388  29,393  29,329  29,323 
                   
    Book value per share - GAAP (a/e)$31.76  $30.44  $29.76  $29.26  $27.52 
    Tangible common equity per share - Non-GAAP (c/e)24.58  23.22  22.50  21.95  20.17 
                   
    (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.
                   


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

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