LOUISVILLE, Ky., Jan. 26, 2023 (GLOBE NEWSWIRE) — Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in Louisville, Central and Eastern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets, today reported earnings for the fourth quarter ended December 31, 2023. Net income for the fourth quarter was $24.6 million, or $0.92 per diluted share, compared with net income of $17.7 million, or $0.78 per diluted share, for the fourth quarter of 2020. Net income for the twelve months ended December 31, 2023 ended at a record $74.6 million, or $2.97 per diluted share, compared to $58.9 million, or $2.59 per diluted share, in 2020. Strong organic balance sheet growth across all markets, the successful entry into the Central/Eastern Kentucky market and record levels of non-interest income highlighted by card income, wealth management and trust and treasury management, contributed to a strong 2023.
| (dollar amounts in thousands, except per share data) | 4Q21 | 3Q21 | 4Q20 | ||||||
| Net interest income | $ | 46,182 | $ | 45,483 | $ | 36,252 | |||
| Provision for credit loss expense(6) | (1,900 | ) | (1,525 | ) | 500 | ||||
| Non-interest income | 18,604 | 17,614 | 13,698 | ||||||
| Non-interest expenses | 34,572 | 34,558 | 29,029 | ||||||
| Income before income tax expense | 32,114 | 30,064 | 20,421 | ||||||
| Income tax expense | 7,525 | 6,902 | 2,685 | ||||||
| Net income | $ | 24,589 | $ | 23,162 | $ | 17,736 | |||
| Net income per share, diluted | $ | 0.92 | $ | 0.87 | $ | 0.78 | |||
| Net interest margin | 3.07 | % | 3.14 | % | 3.35 | % | |||
| Efficiency ratio(4) | 53.24 | % | 54.63 | % | 58.06 | % | |||
| Tangible common equity to tangible assets(1) | 8.22 | % | 8.64 | % | 9.28 | % | |||
| Annualized return on average equity(7) | 14.60 | % | 13.92 | % | 16.27 | % | |||
| Annualized return on average assets(7) | 1.52 | % | 1.50 | % | 1.56 | % | |||
“We delivered excellent fourth quarter and full year 2023 results, highlighted by strong organic loan growth, record loan production and solid revenue growth, both organically and from acquired assets,” said James A. (Ja) Hillebrand, Chairman and Chief Executive Officer. “Additionally, we reported record non-interest income during the quarter, a complement to our diversified income revenue streams. Treasury management fees and card income reached record levels at year-end due to increases in new business, volume and usage, while wealth management and trust income also generated record results, driven by record net new business development and strong market appreciation. We achieved this growth while keeping operating expenses under control.
“In addition to growing the company organically, our successful entry into the Central/Eastern Kentucky market, through our merger with Kentucky Bancshares in the second quarter, contributed significantly to our 2023 operating results,” Hillebrand continued. “The merger has exceeded our expectations and was a meaningful driver of our record results for the year. Additionally, this new market provides tremendous opportunity for future growth by increasing our scale and reach. We are exceptionally pleased with the progress we have made through the dedicated efforts of our employees. We anticipate, similar to our prior successful mergers, the merger with Kentucky Bancshares will result in significant benefits in 2023 and beyond.”
At December 31, 2023, the Company had $6.65 billion in assets, $4.17 billion in loans and $5.79 billion in total deposits. The combined enterprise, with 63 branch offices, has and will continue to benefit from a diversified geographic footprint that provides significant growth opportunities in both the banking and wealth management arenas.
“Following the success of our prior mergers, we are confident that our announced merger with Commonwealth Bancshares, Inc. (Commonwealth) will provide exceptional opportunities to generate additional growth going forward. This combination brings together two Louisville based community banks who are like-minded with complementary cultures. The transaction not only builds upon our already prominent market share in the Louisville market, as Commonwealth is the largest privately-held bank headquartered in the Louisville MSA, but also expands our presence in the attractive Shelby County and Northern Kentucky markets. We have received regulatory approvals from the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation and are currently awaiting regulatory holding company approval from the Federal Reserve Board. At this juncture, we anticipate closing sometime during the first quarter of 2023,” concluded Hillebrand.
Commonwealth, headquartered in Louisville, Kentucky, operates 15 retail branches, including nine in Jefferson County, four in Shelby County and two in Northern Kentucky. As of December 31, 2023, Commonwealth reported approximately $1.31 billion in assets, $680 million in loans, $1.15 billion in deposits and $88 million in tangible common equity. Commonwealth also maintains a Wealth Management and Trust Department with total assets under management of $2.73 billion at December 31, 2023.
Additional key factors contributing to the fourth quarter of 2023 results included:
- Organic loan growth (excluding PPP), totaled $71 million for the fourth quarter of 2023. Loan balances across all four primary markets ended at historical highs at December 31, 2023.
- Deposit growth was robust at $446 million on a linked quarter basis.
- Total interest income increased $9.2 million, or 24%, for the fourth quarter of 2023 compared to the fourth quarter of 2020.
- Interest income on non-PPP loans increased $10.1 million, or 34%, over the fourth quarter of 2020, with a large portion of the increase representing the Central/Eastern Kentucky market contribution. Additionally, significant fluctuation in PPP-related income had a major impact on the comparison between periods. PPP interest/fee income totaled $3.7 million and $6.1 million for the fourth quarters of 2023 and 2020, respectively.
- Interest expense declined $761,000, or 36%, as the Bank benefited from lower stated interest rates on interest bearing deposits and the decline in FHLB advances.
- Despite an 18 basis point benefit from the PPP loan portfolio for the fourth quarter of 2023, net interest margin (NIM) continued to be negatively impacted by loan yield contraction and significant ongoing levels of excess balance sheet liquidity.
- Consistent with further improvement and stabilization in the Federal Reserve unemployment forecast, solid credit quality statistics and increased credit line utilization, a net reduction of $1.9 million in credit loss reserves was recorded for the fourth quarter of 2023, compared to a net reserve build of $500,000 for the fourth quarter of 2020.
- Non-interest income increased 36% over the fourth quarter of 2020 boosted by solid contributions from Central/Eastern Kentucky, along with strong growth in legacy income sources. Significant growth in assets under management tied to record net new business and strong market performance resulted in record wealth management and trust income of $7.4 million for the quarter and record ending assets under management of $4.80 billion. Deposit service charges, enhanced by the Central/Eastern Kentucky market and continued recovery from the pandemic, increased 77% over the fourth quarter of 2020. Card income and treasury management fees once again set historic quarterly records, representing 81% and 24% increases over the fourth quarter of 2020, respectively. Consistent with the continued decline in loan origination volume, mortgage banking income was down 38% quarter over prior year quarter.
Highlights for the year ended December 31, 2023:
- Seven months of activity generated by the Kentucky Bancshares merger exceeded management expectations and stood out as a meaningful contributor to operating results.
- Loans (excluding PPP) grew $1.05 billion over the past twelve months with $756 million of the growth attributed to the Central/Eastern Kentucky market.
- Excluding the Central/Eastern Kentucky market, the legacy bank grew loans by 10%, or $291 million. Loan balances across all markets ended the year at historic highs.
- Deposit balances grew by $1.80 billion over the past twelve months with $1.08 billion of the growth attributed to the Central/Eastern Kentucky market. Non-interest bearing deposits and interest bearing demand deposits represented $569 million and $776 million of the growth, respectively.
- In 2023, PPP income totaled $22.0 million, compared to $13.6 million for 2020. Going into 2023, approximately $4.6 million in net unrecognized PPP fee income remains to be recognized.
- Since the early part of 2020, ongoing loan yield contraction accompanied with significant excess balance sheet liquidity has led to NIM compression.
- Wide fluctuations within the provision for credit losses over recent periods are consistent with the pandemic and subsequent recovery, Central/Eastern Kentucky market expansion, legacy bank net loan growth and other factors within the CECL allowance for credit loss model. Steady improvement within the Federal Reserve’s forecast of future unemployment throughout 2023 further led to the release of credit loss reserves.
- Wealth management income reached and surpassed record levels over the past six consecutive quarters, with assets under management soaring $949 million over the past twelve months. Record net new business and market performance have served to elevate asset-based fees.
- Recovery from pandemic levels and the entrance into Central/Eastern Kentucky have significantly boosted deposit fees.
- Customer expansion and transaction growth have led to record 2023 card and treasury management income.
- Brokerage income ended the year strong, reflective of the Central/Eastern Kentucky contribution and higher trading volumes.
Hillebrand added, “In November, we were one of 25 banks with asset size between $3 billion to $10 billion that were nationally recognized by American Banker Magazine as one of the Best Banks to Work for in 2023. The Best Banks to Work For program identifies and honors U.S. banks for outstanding employee satisfaction. In addition, in March, we were one of 30 financial institutions recognized in the inaugural Hovde High Performer List, based on our prior year results. Criteria to be admitted included market capitalization below $1 billion, above median average pre-provision ROA, loan and deposit growth and tangible book value growth. These recognitions are an honor and a testament to the dedication of our employees, who continue to work diligently to support our communities.”
Results of Operations – Fourth Quarter 2023 Compared with Fourth Quarter 2020
Net interest income, the Company’s largest source of revenue, increased 27%, or $9.9 million, to $46.2 million, driven by higher interest income on non-PPP loans and the continued decline in cost of funds.
- Total interest income increased by $9.2 million, or 24%, to $47.5 million, primarily due to increased interest income on non-PPP loans, partly offset by continued earning-asset yield contraction.
- Total interest expense declined 36%, to $1.3 million. Interest expense on deposits decreased $523,000, or 29%, as the cost of interest bearing deposits declined to 0.13% in the fourth quarter of 2023 from 0.27% in the fourth quarter a year ago, as the Company continued to benefit significantly from the strategic lowering of stated deposit rates. Average interest bearing deposit balances, predominantly demand accounts, surged $1.11 billion, or 41%, consistent with the Central/Eastern Kentucky market expansion.
- NIM decreased 28 basis points to 3.07% for the fourth quarter of 2023 from 3.35% for the fourth quarter a year ago. During the quarter, forgiveness within the PPP loan portfolio and related fee income recognition had an 18 basis point positive impact to NIM. Overall NIM continues to be negatively impacted by loan yield contraction and significant ongoing excess balance sheet liquidity, which represented a 35 basis point negative impact compared to a year ago.
- Interest income on non-PPP loans increased $10.1 million, or 34%, over the prior year quarter. Despite a $1.12 billion, or 39%, increase in average non-PPP loans, significant rate contraction impacted the portfolio, with the average quarterly yield earned on non-PPP loans contracting 16 basis points over the past twelve months to 3.98%. PPP interest and fee income totaled $3.7 million and $6.1 million for the fourth quarters of 2023 and 2020, respectively.
- Interest income on debt securities increased $1.4 million, or 68%, compared to the fourth quarter of 2020. Despite a $589 million increase in average balance of securities, the corresponding interest income increase was muted by the overall decline in rates earned.
The Company recorded a net benefit of $1.9 million for credit losses during the fourth quarter of 2023, which included a $1.1 million benefit to provision for credit losses for loans and a $800,000 net benefit to provision for credit losses for off-balance sheet exposures consistent with the improvement in underlying CECL model factors along with increased line utilization in the Commercial & Industrial portfolio during the quarter.
Non-interest income increased $4.9 million, or 36%, to $18.6 million.
- Wealth management and trust income totaled a record $7.4 million for the fourth quarter of 2023, increasing $1.6 million, or 27%, over the fourth quarter a year ago. Significant growth in assets under management tied to record net new business and strong market performance served to boost asset-based fees and led to an increase of assets under management by $949 million over the past twelve months.
- Retail deposit service charges increased $827,000 compared to the fourth quarter a year ago, a period severely impacted by the pandemic. The increase also reflects the expansion into Central/Eastern Kentucky.
- Card income increased $1.8 million, or 81%, over the fourth quarter of 2020. Growth trends in both debit and credit card portfolios remain positive, as card income benefited significantly from improving economic activity, with consumers and businesses increasing their spending, complimented by a meaningful contribution from the Central/Eastern Kentucky market.
- Treasury management fees increased by $365,000, or 24%, driven by increased transaction volume, new product sales and customer base expansion. In addition, calling efforts to existing customers have led to significant increases in online services, reporting, ACH origination, remote deposit and fraud mitigation services.
- Mortgage banking income, which primarily consists of gain on sale of loans, servicing income and mortgage servicing rights amortization, was $1.1 million for the fourth quarter of 2023, down 38% from the fourth quarter a year ago primarily due to a decline in mortgage originations stemming from a rising rate environment that has cooled.
Non-interest expenses increased $5.5 million to $34.6 million.
- Compensation and employee benefits expense increased $4.1 million, or 25%, primarily due to the increase in full time equivalent employees associated with the merger. Full time equivalent employees increased to 820 at December 31, 2023, from 641 at December 31, 2020, as the Bank added 184 associates in connection with its expansion into Central/Eastern Kentucky.
- Net occupancy and equipment expenses increased $530,000, or 25%, as 19 branches were added with the second quarter expansion into Central/Eastern Kentucky.
- 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 $609,000, or 26%. The majority of the increase related to the merger, as the system conversion did not occur until late August.
- Card processing expense increased $636,000, consistent with the card income revenue trend discussed throughout.
- Marketing and business development expense, which includes all costs associated with promoting the Bank, community investment, retaining customers and acquiring new business increased $958,000, compared to the fourth quarter a year ago, a period significantly impacted by the pandemic. Consistent with the Company’s strategic plan, a significant investment was made to advertise and promote the Bank in the Central/Eastern Kentucky market in the fourth quarter of 2023. In addition, the Company increased its contribution to the Bank’s foundation established to support various community initiatives, due to outstanding 2023 operational results.
- Capital and deposit tax declined $506,000, or 48%, as the Company has transitioned to record Kentucky state income tax as a component of tax expense.
- A large tax credit was completed during the fourth quarter a year ago, leading to $2.9 million in additional tax credit amortization expense for that period.
- Other non-interest expenses increased $1.3 million, or 92%, primarily due to merger related items such as core deposit intangible amortization, increased card rewards expense and insurance captive expenses.
Financial Condition – December 31, 2023 Compared with December 31, 2020
Total assets increased $2.04 billion year over year, or 44%, to $6.65 billion boosted by the merger and strong organic growth.
Total loans increased $638 million year over year, or 18%, to $4.17 billion. Excluding the PPP loan portfolio, total loans increased $1.05 billion, or 35%, over the past twelve months. Approximately $756 million of the year over year growth was associated with the Central/Eastern Kentucky market and $291 million, or 10%, related to legacy bank growth. Total line of credit usage increased to 41% as of December 31, 2023, from 38% at December 31, 2020, with commercial and industrial line usage increasing meaningfully, but remaining below pre-pandemic levels.
The Company acquired nearly $400 million in debt securities related to the current year merger and has deployed $192 million of excess cash into securities in 2023, contributing significantly to the $593 million of growth in the investment portfolio over the past twelve months.
Total deposits increased $1.80 billion, or 45%, from December 31, 2020 to December 31, 2023, with non-interest bearing deposits representing $569 million of the growth. Both period end and average deposit balances ended at record levels at December 31, 2023, as the Central/Eastern Kentucky market added approximately $1.08 billion to total deposits.
Asset quality, which has trended within a narrow range over the past several years, has remained solid. During the fourth quarter of 2023, the Company recorded net loan charge-offs of $1.5 million compared to net loan recoveries of $19,000 in the fourth quarter of 2020. Non-performing loans totaled $7 million, or 0.18%(2) of total loans outstanding (excluding PPP) compared to $13 million, or 0.44%(2) of total loans (excluding PPP) outstanding at December 31, 2020. These strong metrics along with an improving economic forecast, resulted in a ratio of allowance for credit losses to loans (excluding PPP) of 1.34%(2) at December 31, 2023.
At December 31, 2023, the Company remained “well-capitalized,” the highest regulatory capital rating for financial institutions. Total equity to assets was 10.17% and the tangible common equity ratio was 8.22%(1) at December 31, 2023, compared to 9.56%(1) and 9.28%(1), respectively, at December 31, 2020.
In November, 2023, the board of directors declared a cash dividend of $0.28 per common share. The dividend was paid on December 31, 2023, to stockholders of record as of December 20, 2023.
No shares were repurchased in the current year and approximately 741,000 shares remain eligible for repurchase under the current buy-back plan, which expires in May 2023.
Results of Operations – Fourth Quarter 2023 Compared with Third Quarter 2023
Net interest income increased $699,000, or 2%, over the prior quarter to $46.2 million, consistent with the continued decline in cost of funds and organic loan growth. While overall NIM was challenged by increased levels of excess liquidity, loan yield contraction showed signs of stabilization in the fourth quarter of 2023.
Due to continued improvement in the unemployment forecast combined with solid traditional credit metrics, the Company recorded a $1.1 million benefit to provision for credit losses on loans in the fourth quarter of 2023. During the third quarter of 2023, the Company recorded a net benefit of $1.0 million to provision for credit losses on loans.
Non-interest income increased $990,000, or 6%, to $18.6 million. Higher card income, deposit service fees, wealth management and trust service fees, treasury management fees and mortgage banking income all contributed to the quarterly increase.
Non-interest expenses remained flat compared to the prior quarter at $34.6 million.
Financial Condition – December 31, 2023, Compared with September 30, 2023
Total assets increased $465 million on a linked quarter basis to $6.65 billion, reflecting organic increases in loans and investment securities.
Total loans (excluding PPP) increased $71 million, or 2%, on a linked quarter basis. Total line of credit usage was 41% as of December 31, 2023 and unchanged compared to September 30, 2023. While remaining well below pre-pandemic levels, commercial and industrial line usage increased to 32% at year-end compared to 29% at September 30, 2023.
Total deposits increased $445 million, or 8%, on a linked quarter basis, due to higher deposit levels consistent with the seasonal increase in public funds and growth in balances for both existing and new customers.
About the Company
Louisville, Kentucky-based Stock Yards Bancorp, Inc., with $6.65 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: the possibility that any of the anticipated benefits of the proposed Commonwealth Bancshares merger will not be realized or will not be realized within the expected time period; the risk that integration of Commonwealth Bancshares’ operations with those of Stock Yards will be materially delayed or will be more costly or difficult than expected; diversion of management’s attention from ongoing business operations and opportunities due to the merger; the challenges of integrating and retaining key employees; the effect of the announcement of the merger on the combined company’s respective customer and employee relationships and operating results; the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; dilution caused by Stock Yards’ issuance of additional shares of Stock Yards common stock in connection with the merger; economic conditions both generally and more specifically in the markets in which the Company and its subsidiary operates; competition for the Company’s customers from other providers of financial services; government legislation and regulation, which change and over which the Company has no control; changes in interest rates; material unforeseen changes in liquidity, results of operations, or financial condition of the Company’s customers; and other risks detailed in the Company’s filings with the Securities and Exchange Commission, all of which are difficult to predict and many of which are beyond the control of the Company. Refer to Stock Yards’ Annual Report on Form 10-K for the year ended December 31, 2020, 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) | ||||||||||||||||||||
| Fourth Quarter 2023 Earnings Release | ||||||||||||||||||||
| (In thousands unless otherwise noted) | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| Income Statement Data | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Net interest income, fully tax equivalent (3) | $ | 46,328 | $ | 36,301 | $ | 171,508 | $ | 136,133 | ||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans | $ | 43,671 | $ | 36,007 | $ | 164,073 | $ | 137,699 | ||||||||||||
| Federal funds sold and interest bearing due from banks | 287 | 65 | 645 | 738 | ||||||||||||||||
| Mortgage loans held for sale | 74 | 174 | 249 | 533 | ||||||||||||||||
| Securities | 3,476 | 2,093 | 12,109 | 8,901 | ||||||||||||||||
| Total interest income | 47,508 | 38,339 | 177,076 | 147,871 | ||||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 1,279 | 1,802 | 5,627 | 10,478 | ||||||||||||||||
| Securities sold under agreements to repurchase and | ||||||||||||||||||||
| other short-term borrowings | 11 | 8 | 38 | 72 | ||||||||||||||||
| Federal Home Loan Bank advances | 36 | 277 | 337 | 1,400 | ||||||||||||||||
| Total interest expense | 1,326 | 2,087 | 6,002 | 11,950 | ||||||||||||||||
| Net interest income | 46,182 | 36,252 | 171,074 | 135,921 | ||||||||||||||||
| Provision for credit losses (6) | (1,900 | ) | 500 | (753 | ) | 18,418 | ||||||||||||||
| Net interest income after provision for credit losses | 48,082 | 35,752 | 171,827 | 117,503 | ||||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Wealth management and trust services | 7,379 | 5,805 | 27,613 | 23,406 | ||||||||||||||||
| Deposit service charges | 1,907 | 1,080 | 5,852 | 4,161 | ||||||||||||||||
| Debit and credit card income | 4,012 | 2,219 | 13,456 | 8,480 | ||||||||||||||||
| Treasury management fees | 1,871 | 1,506 | 6,912 | 5,407 | ||||||||||||||||
| Mortgage banking income | 1,062 | 1,708 | 4,724 | 6,155 | ||||||||||||||||
| Net investment product sales commissions and fees | 764 | 487 | 2,553 | 1,775 | ||||||||||||||||
| Bank owned life insurance | 272 | 166 | 914 | 693 | ||||||||||||||||
| Other | 1,337 | 727 | 3,826 | 1,822 | ||||||||||||||||
| Total non-interest income | 18,604 | 13,698 | 65,850 | 51,899 | ||||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Compensation | 17,146 | 14,072 | 63,034 | 51,368 | ||||||||||||||||
| Employee benefits | 3,189 | 2,173 | 13,479 | 11,064 | ||||||||||||||||
| Net occupancy and equipment | 2,667 | 2,137 | 9,688 | 8,182 | ||||||||||||||||
| Technology and communication | 2,956 | 2,347 | 11,145 | 8,732 | ||||||||||||||||
| Debit and credit card processing | 1,334 | 698 | 4,494 | 2,606 | ||||||||||||||||
| Marketing and business development | 1,793 | 835 | 4,150 | 2,383 | ||||||||||||||||
| Postage, printing and supplies | 714 | 423 | 2,213 | 1,778 | ||||||||||||||||
| Legal and professional | 755 | 597 | 2,583 | 2,392 | ||||||||||||||||
| FDIC Insurance | 706 | 323 | 1,847 | 1,217 | ||||||||||||||||
| Amortization of investments in tax credit partnerships | 52 | 2,955 | 367 | 3,096 | ||||||||||||||||
| Capital and deposit based taxes | 549 | 1,055 | 2,090 | 4,386 | ||||||||||||||||
| Merger expenses | – | – | 19,025 | – | ||||||||||||||||
| Federal Home Loan Bank early termination penalty | – | – | 474 | – | ||||||||||||||||
| Other | 2,711 | 1,414 | 7,691 | 4,455 | ||||||||||||||||
| Total non-interest expenses | 34,572 | 29,029 | 142,280 | 101,659 | ||||||||||||||||
| Income before income tax expense | 32,114 | 20,421 | 95,397 | 67,743 | ||||||||||||||||
| Income tax expense | 7,525 | 2,685 | 20,752 | 8,874 | ||||||||||||||||
| Net income | $ | 24,589 | $ | 17,736 | $ | 74,645 | $ | 58,869 | ||||||||||||
| Net income per share – Basic | $ | 0.93 | $ | 0.79 | $ | 3.00 | $ | 2.61 | ||||||||||||
| Net income per share – Diluted | 0.92 | 0.78 | 2.97 | 2.59 | ||||||||||||||||
| Cash dividend declared per share | 0.28 | 0.27 | 1.10 | 1.08 | ||||||||||||||||
| Weighted average shares – Basic | 26,492 | 22,593 | 24,898 | 22,563 | ||||||||||||||||
| Weighted average shares – Diluted | 26,800 | 22,794 | 25,156 | 22,768 | ||||||||||||||||
| December 31, | ||||||||||||||||||||
| Balance Sheet Data | 2021 | 2020 | ||||||||||||||||||
| Loans | $ | 4,169,303 | $ | 3,531,596 | ||||||||||||||||
| Allowance for credit losses on loans | 53,898 | 51,920 | ||||||||||||||||||
| Total assets | 6,646,025 | 4,608,629 | ||||||||||||||||||
| Non-interest bearing deposits | 1,755,754 | 1,187,057 | ||||||||||||||||||
| Interest bearing deposits | 4,031,760 | 2,801,577 | ||||||||||||||||||
| Federal Home Loan Bank advances | – | 31,639 | ||||||||||||||||||
| Stockholders’ equity | 675,869 | 440,701 | ||||||||||||||||||
| Total shares outstanding | 26,596 | 22,692 | ||||||||||||||||||
| Book value per share (1) | $ | 25.41 | $ | 19.42 | ||||||||||||||||
| Tangible common equity per share (1) | 20.09 | 18.78 | ||||||||||||||||||
| Market value per share | 63.88 | 40.48 | ||||||||||||||||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
| Fourth Quarter 2023 Earnings Release | ||||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||
| Average Balance Sheet Data | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Federal funds sold and interest bearing due from banks | $ | 699,222 | $ | 271,277 | $ | 446,783 | $ | 229,905 | ||||||||||||
| Mortgage loans held for sale | 12,556 | 28,951 | 11,170 | 20,156 | ||||||||||||||||
| Available for sale debt securities | 1,099,235 | 510,677 | 898,934 | 453,082 | ||||||||||||||||
| Federal Home Loan Bank stock | 9,376 | 11,284 | 10,824 | 11,284 | ||||||||||||||||
| Loans | 4,172,676 | 3,483,298 | 3,951,257 | 3,304,909 | ||||||||||||||||
| Total interest earning assets | 5,993,065 | 4,305,487 | 5,318,968 | 4,019,336 | ||||||||||||||||
| Total assets | 6,406,612 | 4,512,874 | 5,626,886 | 4,217,593 | ||||||||||||||||
| Interest bearing deposits | 3,798,666 | 2,689,103 | 3,302,262 | 2,507,545 | ||||||||||||||||
| Total deposits | 5,559,577 | 3,888,247 | 4,881,057 | 3,608,487 | ||||||||||||||||
| Securities sold under agreement to repurchase and other short term borrowings | 86,911 | 55,825 | 73,130 | 49,820 | ||||||||||||||||
| Federal Home Loan Bank advances | 7,174 | 48,771 | 16,317 | 61,483 | ||||||||||||||||
| Total interest bearing liabilities | 3,892,751 | 2,793,699 | 3,391,709 | 2,618,848 | ||||||||||||||||
| Total stockholders’ equity | 668,287 | 433,596 | 573,261 | 420,119 | ||||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Annualized return on average assets (7) | 1.52 | % | 1.56 | % | 1.33 | % | 1.40 | % | ||||||||||||
| Annualized return on average equity (7) | 14.60 | % | 16.27 | % | 13.02 | % | 14.01 | % | ||||||||||||
| Net interest margin, fully tax equivalent | 3.07 | % | 3.35 | % | 3.22 | % | 3.39 | % | ||||||||||||
| Non-interest income to total revenue, fully tax equivalent | 28.65 | % | 27.40 | % | 27.74 | % | 27.60 | % | ||||||||||||
| Efficiency ratio, fully tax equivalent (4) | 53.24 | % | 58.06 | % | 59.94 | % | 54.06 | % | ||||||||||||
| Capital Ratios | ||||||||||||||||||||
| Total stockholders’ equity to total assets (1) | 10.17 | % | 9.56 | % | ||||||||||||||||
| Tangible common equity to tangible assets (1) | 8.22 | % | 9.28 | % | ||||||||||||||||
| Average stockholders’ equity to average assets | 10.19 | % | 9.96 | % | ||||||||||||||||
| Total risk-based capital | 12.79 | % | 13.36 | % | ||||||||||||||||
| Common equity tier 1 risk-based capital | 11.94 | % | 12.23 | % | ||||||||||||||||
| Tier 1 risk-based capital | 11.94 | % | 12.23 | % | ||||||||||||||||
| Leverage | 8.86 | % | 9.57 | % | ||||||||||||||||
| Loan Segmentation | ||||||||||||||||||||
| Commercial real estate – non-owner occupied | $ | 1,128,244 | $ | 833,470 | ||||||||||||||||
| Commercial real estate – owner occupied | 678,405 | 508,672 | ||||||||||||||||||
| Commercial and industrial | 967,022 | 775,154 | ||||||||||||||||||
| Commercial and industrial – PPP | 140,734 | 550,186 | ||||||||||||||||||
| Residential real estate – owner occupied | 400,695 | 239,191 | ||||||||||||||||||
| Residential real estate – non-owner occupied | 281,018 | 140,930 | ||||||||||||||||||
| Construction and land development | 299,206 | 291,764 | ||||||||||||||||||
| Home equity lines of credit | 138,976 | 95,366 | ||||||||||||||||||
| Consumer | 104,294 | 71,874 | ||||||||||||||||||
| Leases | 13,622 | 14,786 | ||||||||||||||||||
| Credit cards | 17,087 | 10,203 | ||||||||||||||||||
| Total loans and leases | $ | 4,169,303 | $ | 3,531,596 | ||||||||||||||||
| Asset Quality Data | ||||||||||||||||||||
| Non-accrual loans | $ | 6,712 | $ | 12,514 | ||||||||||||||||
| Troubled debt restructurings | 12 | 16 | ||||||||||||||||||
| Loans past due 90 days or more and still accruing | 684 | 649 | ||||||||||||||||||
| Total non-performing loans | 7,408 | 13,179 | ||||||||||||||||||
| Other real estate owned | 7,212 | 281 | ||||||||||||||||||
| Total non-performing assets | $ | 14,620 | $ | 13,460 | ||||||||||||||||
| Non-performing loans to total loans (2) | 0.18 | % | 0.37 | % | ||||||||||||||||
| Non-performing assets to total assets | 0.22 | % | 0.29 | % | ||||||||||||||||
| Allowance for credit losses on loans to total loans (2) | 1.29 | % | 1.47 | % | ||||||||||||||||
| Allowance for credit losses on loans to average loans | 1.36 | % | 1.57 | % | ||||||||||||||||
| Allowance for credit losses on loans to non-performing loans | 728 | % | 394 | % | ||||||||||||||||
| Net (charge-offs) recoveries | $ | (1,535 | ) | $ | 19 | $ | (6,176 | ) | $ | (1,645 | ) | |||||||||
| Net (charge-offs) recoveries to average loans (5) | -0.04 | % | 0.00 | % | -0.16 | % | -0.05 | % | ||||||||||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
| Fourth Quarter 2023 Earnings Release | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Income Statement Data | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Net interest income, fully tax equivalent (3) | $ | 46,328 | $ | 45,643 | $ | 41,661 | $ | 37,874 | $ | 36,301 | ||||||||||
| Net interest income | $ | 46,182 | $ | 45,483 | $ | 41,584 | $ | 37,825 | $ | 36,252 | ||||||||||
| Provision for credit losses (6) | (1,900 | ) | (1,525 | ) | 4,147 | (1,475 | ) | 500 | ||||||||||||
| Net interest income after provision for credit losses | 48,082 | 47,008 | 37,437 | 39,300 | 35,752 | |||||||||||||||
| Non-interest income: | ||||||||||||||||||||
| Wealth management and trust services | 7,379 | 7,128 | 6,858 | 6,248 | 5,805 | |||||||||||||||
| Deposit service charges | 1,907 | 1,768 | 1,233 | 944 | 1,080 | |||||||||||||||
| Debit and credit card income | 4,012 | 3,887 | 3,284 | 2,273 | 2,219 | |||||||||||||||
| Treasury management fees | 1,871 | 1,771 | 1,730 | 1,540 | 1,506 | |||||||||||||||
| Mortgage banking income | 1,062 | 915 | 1,303 | 1,444 | 1,708 | |||||||||||||||
| Net investment product sales commissions and fees | 764 | 780 | 545 | 464 | 487 | |||||||||||||||
| Bank owned life insurance | 272 | 275 | 206 | 161 | 166 | |||||||||||||||
| Other | 1,337 | 1,090 | 629 | 770 | 727 | |||||||||||||||
| Total non-interest income | 18,604 | 17,614 | 15,788 | 13,844 | 13,698 | |||||||||||||||
| Non-interest expenses: | ||||||||||||||||||||
| Compensation | 17,146 | 17,381 | 15,680 | 12,827 | 14,072 | |||||||||||||||
| Employee benefits | 3,189 | 3,662 | 3,367 | 3,261 | 2,173 | |||||||||||||||
| Net occupancy and equipment | 2,667 | 2,732 | 2,244 | 2,045 | 2,137 | |||||||||||||||
| Technology and communication | 2,956 | 3,173 | 2,670 | 2,346 | 2,347 | |||||||||||||||
| Debit and credit card processing | 1,334 | 1,479 | 976 | 705 | 698 | |||||||||||||||
| Marketing and business development | 1,793 | 1,011 | 822 | 524 | 835 | |||||||||||||||
| Postage, printing and supplies | 714 | 630 | 460 | 409 | 423 | |||||||||||||||
| Legal and professional | 755 | 700 | 666 | 462 | 597 | |||||||||||||||
| FDIC Insurance | 706 | 387 | 349 | 405 | 323 | |||||||||||||||
| Amortization of investments in tax credit partnerships | 52 | 53 | 231 | 31 | 2,955 | |||||||||||||||
| Capital and deposit based taxes | 549 | 556 | 527 | 458 | 1,055 | |||||||||||||||
| Merger expenses | – | 525 | 18,100 | 400 | – | |||||||||||||||
| Federal Home Loan Bank early termination penalty | – | – | 474 | – | – | |||||||||||||||
| Other | 2,711 | 2,269 | 1,611 | 1,100 | 1,414 | |||||||||||||||
| Total non-interest expenses | 34,572 | 34,558 | 48,177 | 24,973 | 29,029 | |||||||||||||||
| Income before income tax expense | 32,114 | 30,064 | 5,048 | 28,171 | 20,421 | |||||||||||||||
| Income tax expense | 7,525 | 6,902 | 864 | 5,461 | 2,685 | |||||||||||||||
| Net income | $ | 24,589 | $ | 23,162 | $ | 4,184 | $ | 22,710 | $ | 17,736 | ||||||||||
| Net income per share – Basic | $ | 0.93 | $ | 0.87 | $ | 0.17 | $ | 1.00 | $ | 0.79 | ||||||||||
| Net income per share – Diluted | 0.92 | 0.87 | 0.17 | 0.99 | 0.78 | |||||||||||||||
| Cash dividend declared per share | 0.28 | 0.28 | 0.27 | 0.27 | 0.27 | |||||||||||||||
| Weighted average shares – Basic | 26,492 | 26,485 | 23,932 | 22,622 | 22,593 | |||||||||||||||
| Weighted average shares – Diluted | 26,800 | 26,726 | 24,171 | 22,865 | 22,794 | |||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Balance Sheet Data | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Cash and due from banks | $ | 62,304 | $ | 84,520 | $ | 58,477 | $ | 43,061 | $ | 43,179 | ||||||||||
| Federal funds sold and interest bearing due from banks | 898,888 | 500,421 | 481,716 | 289,920 | 274,766 | |||||||||||||||
| Mortgage loans held for sale | 8,614 | 10,201 | 5,420 | 6,579 | 22,547 | |||||||||||||||
| Available for sale debt securities | 1,180,298 | 1,070,148 | 1,006,908 | 672,167 | 586,978 | |||||||||||||||
| Federal Home Loan Bank stock | 9,376 | 9,376 | 14,475 | 10,228 | 11,284 | |||||||||||||||
| Loans | 4,169,303 | 4,189,117 | 4,206,392 | 3,635,156 | 3,531,596 | |||||||||||||||
| Allowance for credit losses on loans | 53,898 | 56,533 | 59,424 | 50,714 | 51,920 | |||||||||||||||
| Goodwill | 135,830 | 135,830 | 136,529 | 12,513 | 12,513 | |||||||||||||||
| Total assets | 6,646,025 | 6,181,188 | 6,088,072 | 4,794,075 | 4,608,629 | |||||||||||||||
| Non-interest bearing deposits | 1,755,754 | 1,744,790 | 1,743,953 | 1,370,183 | 1,187,057 | |||||||||||||||
| Interest bearing deposits | 4,031,760 | 3,597,234 | 3,516,153 | 2,829,779 | 2,801,577 | |||||||||||||||
| Securities sold under agreements to repurchase | 75,466 | 74,406 | 63,942 | 51,681 | 47,979 | |||||||||||||||
| Federal funds purchased | 10,374 | 10,908 | 10,947 | 8,642 | 11,464 | |||||||||||||||
| Federal Home Loan Bank advances | – | 10,000 | 10,000 | 24,180 | 31,639 | |||||||||||||||
| Stockholders’ equity | 675,869 | 663,547 | 651,089 | 443,232 | 440,701 | |||||||||||||||
| Total shares outstanding | 26,596 | 26,585 | 26,588 | 22,781 | 22,692 | |||||||||||||||
| Book value per share (1) | $ | 25.41 | $ | 24.96 | $ | 24.49 | $ | 19.46 | $ | 19.42 | ||||||||||
| Tangible common equity per share (1) | 20.09 | 19.63 | 19.16 | 18.82 | 18.78 | |||||||||||||||
| Market value per share | 63.88 | 58.65 | 50.89 | 51.06 | 40.48 | |||||||||||||||
| Capital Ratios | ||||||||||||||||||||
| Total stockholders’ equity to total assets (1) | 10.17 | % | 10.73 | % | 10.69 | % | 9.25 | % | 9.56 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 8.22 | % | 8.64 | % | 8.57 | % | 8.97 | % | 9.28 | % | ||||||||||
| Average stockholders’ equity to average assets | 10.43 | % | 10.75 | % | 9.88 | % | 9.44 | % | 9.61 | % | ||||||||||
| Total risk-based capital | 12.79 | % | 12.61 | % | 12.80 | % | 13.39 | % | 13.36 | % | ||||||||||
| Common equity tier 1 risk-based capital | 11.94 | % | 11.69 | % | 11.79 | % | 12.32 | % | 12.23 | % | ||||||||||
| Tier 1 risk-based capital | 11.94 | % | 11.69 | % | 11.79 | % | 12.32 | % | 12.23 | % | ||||||||||
| Leverage | 8.86 | % | 8.98 | % | 10.26 | % | 9.46 | % | 9.57 | % | ||||||||||
| Stock Yards Bancorp, Inc. Financial Information (unaudited) | ||||||||||||||||||||
| Fourth Quarter 2023 Earnings Release | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| Average Balance Sheet Data | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Federal funds sold and interest bearing due from banks | $ | 699,222 | $ | 532,549 | $ | 313,954 | $ | 235,370 | $ | 271,277 | ||||||||||
| Mortgage loans held for sale | 12,556 | 8,875 | 8,678 | 14,618 | 28,951 | |||||||||||||||
| Available for sale debt securities | 1,099,235 | 1,034,712 | 793,696 | 661,175 | 510,677 | |||||||||||||||
| Loans | 4,172,676 | 4,173,260 | 3,844,662 | 3,605,760 | 3,483,298 | |||||||||||||||
| Total interest earning assets | 5,993,065 | 5,760,760 | 4,972,914 | 4,527,563 | 4,305,487 | |||||||||||||||
| Total assets | 6,406,612 | 6,139,176 | 5,226,654 | 4,710,836 | 4,512,874 | |||||||||||||||
| Interest bearing deposits | 3,798,666 | 3,525,785 | 3,055,360 | 2,815,986 | 2,689,103 | |||||||||||||||
| Total deposits | 5,559,577 | 5,297,917 | 4,552,583 | 4,094,179 | 3,888,247 | |||||||||||||||
| Securities sold under agreement to repurchase and federal funds purchased | 86,911 | 82,048 | 66,591 | 56,536 | 55,825 | |||||||||||||||
| Federal Home Loan Bank advances | 7,174 | 10,000 | 19,135 | 29,270 | 48,771 | |||||||||||||||
| Total interest bearing liabilities | 3,892,751 | 3,617,833 | 3,141,086 | 2,901,792 | 2,793,699 | |||||||||||||||
| Total stockholders’ equity | 668,287 | 660,099 | 516,427 | 444,821 | 433,596 | |||||||||||||||
| Performance Ratios | ||||||||||||||||||||
| Annualized return on average assets (7) | 1.52 | % | 1.50 | % | 0.32 | % | 1.96 | % | 1.56 | % | ||||||||||
| Annualized return on average equity (7) | 14.60 | % | 13.92 | % | 3.25 | % | 20.71 | % | 16.27 | % | ||||||||||
| Net interest margin, fully tax equivalent | 3.07 | % | 3.14 | % | 3.36 | % | 3.39 | % | 3.35 | % | ||||||||||
| Non-interest income to total revenue, fully tax equivalent | 28.65 | % | 27.85 | % | 27.48 | % | 26.77 | % | 27.40 | % | ||||||||||
| Efficiency ratio, fully tax equivalent (4) | 53.24 | % | 54.63 | % | 83.86 | % | 48.29 | % | 58.06 | % | ||||||||||
| Loans Segmentation | ||||||||||||||||||||
| Commercial real estate – non-owner occupied | $ | 1,128,244 | $ | 1,142,647 | $ | 1,170,461 | $ | 876,523 | $ | 833,470 | ||||||||||
| Commercial real estate – owner occupied | 678,405 | 652,631 | 604,120 | 527,316 | 508,672 | |||||||||||||||
| Commercial and industrial | 967,022 | 910,923 | 845,038 | 742,505 | 775,154 | |||||||||||||||
| Commercial and industrial – PPP | 140,734 | 231,335 | 377,021 | 612,885 | 550,186 | |||||||||||||||
| Residential real estate – owner occupied | 400,695 | 398,069 | 377,783 | 262,516 | 239,191 | |||||||||||||||
| Residential real estate – non-owner occupied | 281,018 | 277,045 | 273,782 | 136,380 | 140,930 | |||||||||||||||
| Construction and land development | 299,206 | 303,642 | 281,149 | 281,815 | 291,764 | |||||||||||||||
| Home equity lines of credit | 138,976 | 140,027 | 142,468 | 91,233 | 95,366 | |||||||||||||||
| Consumer | 104,294 | 104,629 | 105,439 | 78,326 | 71,874 | |||||||||||||||
| Leases | 13,622 | 12,348 | 14,171 | 14,115 | 14,786 | |||||||||||||||
| Credit cards | 17,087 | 15,821 | 14,960 | 11,542 | 10,203 | |||||||||||||||
| Total loans and leases | $ | 4,169,303 | $ | 4,189,117 | $ | 4,206,392 | $ | 3,635,156 | $ | 3,531,596 | ||||||||||
| Asset Quality Data | ||||||||||||||||||||
| Non-accrual loans | $ | 6,712 | $ | 5,036 | $ | 12,814 | $ | 12,913 | $ | 12,514 | ||||||||||
| Troubled debt restructurings | 12 | 13 | 14 | 15 | 16 | |||||||||||||||
| Loans past due 90 days or more and still accruing | 684 | – | 1,050 | 1,377 | 649 | |||||||||||||||
| Total non-performing loans | 7,408 | 5,049 | 13,878 | 14,305 | 13,179 | |||||||||||||||
| Other real estate owned | 7,212 | 7,229 | 648 | 281 | 281 | |||||||||||||||
| Total non-performing assets | $ | 14,620 | $ | 12,278 | $ | 14,526 | $ | 14,586 | $ | 13,460 | ||||||||||
| Non-performing loans to total loans (2) | 0.18 | % | 0.12 | % | 0.33 | % | 0.39 | % | 0.37 | % | ||||||||||
| Non-performing assets to total assets | 0.22 | % | 0.20 | % | 0.24 | % | 0.30 | % | 0.29 | % | ||||||||||
| Allowance for credit losses on loans to total loans (2) | 1.29 | % | 1.35 | % | 1.41 | % | 1.40 | % | 1.47 | % | ||||||||||
| Allowance for credit losses on loans to average loans | 1.29 | % | 1.35 | % | 1.55 | % | 1.41 | % | 1.49 | % | ||||||||||
| Allowance for credit losses on loans to non-performing loans | 728 | % | 1120 | % | 428 | % | 355 | % | 394 | % | ||||||||||
| Net (charge-offs) recoveries | $ | (1,535 | ) | $ | (1,891 | ) | $ | (2,743 | ) | $ | (6 | ) | $ | 19 | ||||||
| Net (charge-offs) recoveries to average loans (5) | -0.04 | % | -0.05 | % | -0.07 | % | 0.00 | % | 0.00 | % | ||||||||||
| Other Information | ||||||||||||||||||||
| Total assets under management (in millions) | $ | 4,801 | $ | 4,506 | $ | 4,440 | $ | 3,989 | $ | 3,852 | ||||||||||
| Full-time equivalent employees | 820 | 794 | 823 | 638 | 641 | |||||||||||||||
| (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) | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Total stockholders’ equity – GAAP (a) | $ | 675,869 | $ | 663,547 | $ | 651,089 | $ | 443,232 | $ | 440,701 | ||||||||||
| Less: Goodwill | (135,830 | ) | (135,830 | ) | (136,529 | ) | (12,513 | ) | (12,513 | ) | ||||||||||
| Less: Core deposit intangible | (5,596 | ) | (5,871 | ) | (5,162 | ) | (1,885 | ) | (1,962 | ) | ||||||||||
| Tangible common equity – Non-GAAP (c) | $ | 534,443 | $ | 521,846 | $ | 509,398 | $ | 428,834 | $ | 426,226 | ||||||||||
| Total assets – GAAP (b) | $ | 6,646,025 | $ | 6,181,188 | $ | 6,088,072 | $ | 4,794,075 | $ | 4,608,629 | ||||||||||
| Less: Goodwill | (135,830 | ) | (135,830 | ) | (136,529 | ) | (12,513 | ) | (12,513 | ) | ||||||||||
| Less: Core deposit intangible | (5,596 | ) | (5,871 | ) | (5,162 | ) | (1,885 | ) | (1,962 | ) | ||||||||||
| Tangible assets – Non-GAAP (d) | $ | 6,504,599 | $ | 6,039,487 | $ | 5,946,381 | $ | 4,779,677 | $ | 4,594,154 | ||||||||||
| Total stockholders’ equity to total assets – GAAP (a/b) | 10.17 | % | 10.73 | % | 10.69 | % | 9.25 | % | 9.56 | % | ||||||||||
| Tangible common equity to tangible assets – Non-GAAP (c/d) | 8.22 | % | 8.64 | % | 8.57 | % | 8.97 | % | 9.28 | % | ||||||||||
| Total shares outstanding (e) | 26,596 | 26,585 | 26,588 | 22,781 | 22,692 | |||||||||||||||
| Book value per share – GAAP (a/e) | $ | 25.41 | $ | 24.96 | $ | 24.49 | $ | 19.46 | $ | 19.42 | ||||||||||
| Tangible common equity per share – Non-GAAP (c/e) | 20.09 | 19.63 | 19.16 | 18.82 | 18.78 | |||||||||||||||
| (2) – Allowance for credit losses on loans to total non-PPP loans represents the allowance for credit losses on loans, divided by total loans less PPP loans. Non-performing loans to total non-PPP loans represents non-performing loans, divided by total loans less PPP loans. Bancorp believes these non-GAAP disclosures are important because they provide 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 on loans and are not at risk of non-performance. | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| (Dollars in thousands) | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Total Loans – GAAP (a) | $ | 4,169,303 | $ | 4,189,117 | $ | 4,206,392 | $ | 3,635,156 | $ | 3,531,596 | ||||||||||
| Less: PPP loans | (140,734 | ) | (231,335 | ) | (377,021 | ) | (612,885 | ) | (550,186 | ) | ||||||||||
| Total non-PPP Loans – Non-GAAP (b) | $ | 4,028,569 | $ | 3,957,782 | $ | 3,829,371 | $ | 3,022,271 | $ | 2,981,410 | ||||||||||
| Allowance for credit losses on loans (c) | $ | 53,898 | $ | 56,533 | $ | 59,424 | $ | 50,714 | $ | 51,920 | ||||||||||
| Total non-performing loans (d) | 7,408 | 5,049 | 13,878 | 14,305 | 13,179 | |||||||||||||||
| Allowance for credit losses on loans to total loans – GAAP (c/a) | 1.29 | % | 1.35 | % | 1.41 | % | 1.40 | % | 1.47 | % | ||||||||||
| Allowance for credit losses on loans to total loans – Non-GAAP (c/b) | 1.34 | % | 1.43 | % | 1.55 | % | 1.68 | % | 1.74 | % | ||||||||||
| Non-performing loans to total loans – GAAP (d/a) | 0.18 | % | 0.12 | % | 0.33 | % | 0.39 | % | 0.37 | % | ||||||||||
| Non-performing loans to total loans – Non-GAAP (d/b) | 0.18 | % | 0.13 | % | 0.36 | % | 0.47 | % | 0.44 | % | ||||||||||
| (3) – 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. | ||||||||||||||||||||
| (4) – 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. The ratio excludes net gains (losses) on sales, calls, and impairment of investment securities, if applicable. In addition to the efficiency ratio presented, Bancorp considers an adjusted efficiency ratio to be important because it provides a comparable ratio after eliminating the fluctuation in non-interest expenses related to amortization of investments in tax credit partnerships and non-recurring merger expenses. | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| (Dollars in thousands) | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Total non-interest expenses – GAAP (a) | $ | 34,572 | $ | 34,558 | $ | 48,177 | $ | 24,973 | $ | 29,029 | ||||||||||
| Less: Non-recurring merger expenses | – | (525 | ) | (18,100 | ) | (400 | ) | – | ||||||||||||
| Less: Amortization of investments in tax credit partnerships | (52 | ) | (53 | ) | (231 | ) | (31 | ) | (2,955 | ) | ||||||||||
| Total non-interest expenses – Non-GAAP (c) | $ | 34,520 | $ | 33,980 | $ | 29,846 | $ | 24,542 | $ | 26,074 | ||||||||||
| Total net interest income, fully tax equivalent | $ | 46,328 | $ | 45,643 | $ | 41,661 | $ | 37,874 | $ | 36,301 | ||||||||||
| Total non-interest income | 18,604 | 17,614 | 15,788 | 13,844 | 13,698 | |||||||||||||||
| Less: Gain/loss on sale of securities | – | – | – | – | – | |||||||||||||||
| Total revenue – GAAP (b) | $ | 64,932 | $ | 63,257 | $ | 57,449 | $ | 51,718 | $ | 49,999 | ||||||||||
| Efficiency ratio – GAAP (a/b) | 53.24 | % | 54.63 | % | 83.86 | % | 48.29 | % | 58.06 | % | ||||||||||
| Efficiency ratio – Non-GAAP (c/b) | 53.16 | % | 53.72 | % | 51.95 | % | 47.45 | % | 52.15 | % | ||||||||||
| Twelve months ended | ||||||||||||||||||||
| (Dollars in thousands) | 12/31/21 | 12/31/20 | ||||||||||||||||||
| Total non-interest expenses – GAAP (a) | $ | 142,280 | $ | 101,659 | ||||||||||||||||
| Less: Non-recurring merger expenses | (19,025 | ) | – | |||||||||||||||||
| Less: Amortization of investments in tax credit partnerships | (367 | ) | (3,096 | ) | ||||||||||||||||
| Total non-interest expenses – Non-GAAP (c) | $ | 122,888 | $ | 98,563 | ||||||||||||||||
| Total net interest income, fully tax equivalent | $ | 171,508 | $ | 136,133 | ||||||||||||||||
| Total non-interest income | 65,850 | 51,899 | ||||||||||||||||||
| Less: Gain/loss on sale of securities | – | – | ||||||||||||||||||
| Total revenue – GAAP (b) | $ | 237,358 | $ | 188,032 | ||||||||||||||||
| Efficiency ratio – GAAP (a/b) | 59.94 | % | 54.06 | % | ||||||||||||||||
| Efficiency ratio – Non-GAAP (c/b) | 51.77 | % | 52.42 | % | ||||||||||||||||
| (5) – Quarterly net (charge-offs) recoveries to average loans ratios are not annualized. | ||||||||||||||||||||
| (6) – Detail of Provision for credit losses follows: | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| (in thousands) | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Provision for credit losses – loans | $ | (1,100 | ) | $ | (1,000 | ) | $ | 4,697 | $ | (1,200 | ) | $ | 1,400 | |||||||
| Provision for credit losses – off balance sheet exposures | (800 | ) | (525 | ) | (550 | ) | (275 | ) | (900 | ) | ||||||||||
| Total provision for credit losses | $ | (1,900 | ) | $ | (1,525 | ) | $ | 4,147 | $ | (1,475 | ) | $ | 500 | |||||||
| (7) – 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. As a result of the substantial impact that non-recurring items related to the Kentucky Bancshares acquisition had on results for the three and six months ended June 30, 2023, Bancorp considers adjusted return on average assets and return on average equity ratios important as they reflect performance after removing certain merger expenses and purchase accounting adjustments. | ||||||||||||||||||||
| Quarterly Comparison | ||||||||||||||||||||
| (Dollars in thousands) | 12/31/21 | 9/30/21 | 6/30/21 | 3/31/21 | 12/31/20 | |||||||||||||||
| Net income, as reported (a) | $ | 24,589 | $ | 23,162 | $ | 4,184 | $ | 22,710 | $ | 17,736 | ||||||||||
| Add: Non-recurring merger expenses | – | 525 | 18,100 | 400 | – | |||||||||||||||
| Add: Provision for credit losses on non-PCD loans | – | – | 7,397 | – | – | |||||||||||||||
| Less: Tax effect of adjustments to net income | – | (121 | ) | (4,360 | ) | (78 | ) | – | ||||||||||||
| Total net income – Non-GAAP (b) | $ | 24,589 | $ | 23,577 | $ | 24,327 | $ | 23,026 | $ | 17,736 | ||||||||||
| Total average assets (c) | $ | 6,406,612 | $ | 6,139,176 | $ | 5,226,654 | $ | 4,710,836 | $ | 4,512,874 | ||||||||||
| Total average equity (d ) | 668,287 | 660,099 | 516,427 | 444,821 | 433,596 | |||||||||||||||
| Return on average assets – GAAP (a/c) | 1.52 | % | 1.50 | % | 0.32 | % | 1.96 | % | 1.56 | % | ||||||||||
| Return on average assets – Non-GAAP (b/c) | 1.52 | % | 1.52 | % | 1.87 | % | 1.98 | % | 1.56 | % | ||||||||||
| Return on average equity – GAAP (a/d) | 14.60 | % | 13.92 | % | 3.25 | % | 20.71 | % | 16.23 | % | ||||||||||
| Return on average equity – Non-GAAP (b/d) | 14.60 | % | 14.17 | % | 18.89 | % | 20.99 | % | 16.23 | % | ||||||||||
