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

Rhea-AI Summary

Stock Yards Bancorp (NASDAQ: SYBT) reported record third quarter earnings of $29.4 million, or $1.00 per diluted share, compared to $27.1 million ($0.92 per share) in Q3 2023. The company saw total loans increase by $661 million (12%) year-over-year, with $207 million growth in Q3. Deposits expanded by $323 million (5%) over 12 months. Net interest income rose to $65.0 million, up 6% from Q3 2023, while net interest margin was 3.33%. Non-interest income grew 8% to $24.8 million, driven by wealth management, treasury fees, and card income. The company maintained strong asset quality with non-performing loans at 0.27% of total loans.

Positive

• Record quarterly earnings of $29.4 million, up from $27.1 million YoY
• Strong loan growth of 12% ($661 million) year-over-year
• Net interest income increased 6% to $65.0 million
• Non-interest income grew 8% to $24.8 million
• Deposit growth of 5% ($323 million) over 12 months

Negative

• Non-interest bearing deposits declined 12% ($207 million) year-over-year
• Interest expense increased 48% to $40.7 million
• Higher provision for credit losses at $4.3 million vs $2.8 million in Q3 2023

Insights

Financial Analyst

Stock Yards Bancorp delivered impressive Q3 2024 results with $29.4 million in earnings ($1.00 per share), up from $27.1 million ($0.92 per share) in Q3 2023. Key highlights include robust loan growth of 12% year-over-year, reaching $6.28 billion and improved net interest margin of 3.33%.

The bank's performance shows strong fundamentals with deposit growth of 5% YoY to $6.73 billion, despite industry challenges. Credit quality remains solid with non-performing loans at just 0.27% of total loans. The efficiency ratio improved to 53.92%, indicating better operational performance.

Most notably, the bank's strategic focus on organic growth while avoiding brokered deposits has contributed to margin expansion. The 7 basis point improvement in net interest margin on a linked-quarter basis is particularly impressive in the current rate environment.

Market Research Analyst

The bank's diversified revenue streams and geographic expansion strategy are paying off. Non-interest income grew 8% YoY to $24.8 million, with notable contributions from Wealth Management & Trust ($10.9 million) and record treasury management fees ($2.9 million).

The bank's presence across three states with 72 branch offices provides significant market diversification. The recognition as a Piper Sandler "Sm-All Star" (one of only 30 banks nationwide) validates their business model and execution capability. The dividend increase to $0.31 per share demonstrates management's confidence in sustainable growth.

Record Third Quarter Results Highlighted by Linked Quarter Net Interest Margin Expansion and Robust Loan Growth

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 Data	2024				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 sale	47				55				152				173
Federal Home Loan Bank stock	663				499				1,601				939
Investment securities	7,377				8,497				23,072				26,129
Total interest income	105,722				88,925				302,571				251,455
Interest expense:
Deposits	33,997				21,360				97,486				51,940
Securities sold under agreements to repurchase	937				597				2,639				1,429
Federal funds purchased	120				157				395				504
Federal Home Loan Bank advances	5,209				4,917				13,469				10,613
Subordinated debentures	480				579				1,511				1,653
Total interest expense	40,743				27,610				115,500				66,139
Net interest income	64,979				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 losses	60,654				58,540				180,021				177,566
Non-interest income:
Wealth management and trust services	10,931				10,030				32,497				29,703
Deposit service charges	2,314				2,272				6,630				6,622
Debit and credit card income	5,083				4,870				14,688				14,064
Treasury management fees	2,939				2,635				8,389				7,502
Mortgage banking income	1,112				814				3,077				2,882
Net investment product sales commissions and fees	915				791				2,580				2,345
Bank owned life insurance	634				569				1,817				1,677
Gain (loss) on sale of premises and equipment	(59		)		302				(39		)		75
Other	928				613				2,084				2,933
Total non-interest income	24,797				22,896				71,723				67,803
Non-interest expenses:
Compensation	25,534				23,379				74,389				67,382
Employee benefits	4,629				4,508				15,591				14,622
Net occupancy and equipment	3,775				3,821				11,264				11,234
Technology and communication	4,500				4,236				14,463				12,706
Debit and credit card processing	1,845				1,637				5,402				4,762
Marketing and business development	1,438				1,357				4,109				4,236
Postage, printing and supplies	901				938				2,740				2,701
Legal and professional	968				1,049				3,268				2,665
FDIC insurance	1,095				937				3,368				2,851
Capital and deposit based taxes	825				629				2,128				1,875
Intangible amortization	1,052				1,167				3,155				3,519
Amortization of investments in tax credit partnerships	-				323				-				970
Other	1,890				2,721				6,645				8,293
Total non-interest expenses	48,452				46,702				146,522				137,816
Income before income tax expense	36,999				34,734				105,222				107,553
Income tax expense	7,639				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 - Diluted	1.00				0.92				2.82				2.86
Cash dividend declared per share	0.31				0.30				0.91				0.88
Weighted average shares - Basic	29,299				29,223				29,277				29,208
Weighted average shares - Diluted	29,445				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 Data	2024				2023				2024				2023
Federal funds sold and interest bearing due from banks	$	148,818			$	124,653			$	153,755			$	132,421
Mortgage loans held for sale	4,862				7,112				5,230				7,333
Investment securities	1,424,815				1,659,888				1,498,092				1,710,838
Federal Home Loan Bank stock	31,193				27,290				27,364				22,663
Loans	6,174,309				5,486,262				5,986,366				5,337,493
Total interest earning assets	7,783,997				7,305,205				7,670,807				7,210,748
Total assets	8,384,605				7,805,154				8,262,017				7,660,658
Non-interest bearing deposits	1,510,515				1,731,724				1,508,947				1,796,586
Interest bearing deposits	5,047,771				4,509,411				5,026,185				4,468,160
Total deposits	6,558,286				6,241,135				6,535,132				6,264,746
Securities sold under agreements to repurchase	156,865				127,063				156,392				120,740
Federal funds purchased	8,480				11,776				9,585				13,857
Federal Home Loan Bank advances	461,141				401,630				392,609				305,220
Subordinated debentures	26,806				26,606				26,802				26,508
Total interest bearing liabilities	5,701,063				5,076,486				5,611,573				4,934,485
Accumulated other comprehensive income (loss)	(88,362		)		(112,329		)		(94,560		)		(107,374		)
Total stockholders' equity	910,274				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 equivalent	3.33		%		3.34		%		3.26		%		3.44		%
Non-interest income to total revenue, fully tax equivalent	27.59		%		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 Data	9-30-24				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 losses	60,654				60,722				58,645				55,970				58,540
Non-interest income:
Wealth management and trust services	10,931				10,795				10,771				10,099				10,030
Deposit service charges	2,314				2,180				2,136				2,244				2,272
Debit and credit card income	5,083				4,923				4,682				5,374				4,870
Treasury management fees	2,939				2,825				2,625				2,531				2,635
Mortgage banking income	1,112				1,017				948				823				814
Loss on sale of securities	-				-				-				(44		)		-
Net investment product sales commissions and fees	915				800				865				860				791
Bank owned life insurance	634				595				588				576				569
Gain (loss) on sale of premises and equipment	(59		)		20				-				(105		)		302
Other	928				500				656				2,059				613
Total non-interest income	24,797				23,655				23,271				24,417				22,896
Non-interest expenses:
Compensation	25,534				24,634				24,221				24,494				23,379
Employee benefits	4,629				5,086				5,876				3,829				4,508
Net occupancy and equipment	3,775				3,819				3,670				5,150				3,821
Technology and communication	4,500				4,894				5,069				4,612				4,236
Debit and credit card processing	1,845				1,811				1,746				1,719				1,637
Marketing and business development	1,438				1,596				1,075				1,754				1,357
Postage, printing and supplies	901				913				926				903				938
Legal and professional	968				1,185				1,115				1,293				1,049
FDIC insurance	1,095				1,161				1,112				1,060				937
Capital and deposit based taxes	825				673				630				601				629
Intangible amortization	1,052				1,051				1,052				1,167				1,167
Amortization of investments in tax credit partnerships	-				-				-				324				323
Other	1,890				2,286				2,469				3,107				2,721
Total non-interest expenses	48,452				49,109				48,961				50,013				46,702
Income before income tax expense	36,999				35,268				32,955				30,374				34,734
Income tax expense	7,639				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 - Diluted	1.00				0.94				0.88				0.82				0.92
Cash dividend declared per share	0.31				0.30				0.30				0.30				0.30
Weighted average shares - Basic	29,299				29,283				29,250				29,226				29,223
Weighted average shares - Diluted	29,445				29,383				29,361				29,331				29,336
	Quarterly Comparison
Balance Sheet Data	9-30-24				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 banks	144,241				118,910				88,547				171,493				113,499
Mortgage loans held for sale	4,822				6,438				6,462				6,056				6,535
Investment securities	1,236,744				1,342,354				1,379,212				1,471,016				1,465,453
Federal Home Loan Bank stock	29,419				31,462				24,675				16,236				26,241
Loans	6,278,133				6,070,963				5,849,715				5,771,038				5,617,084
Allowance for credit losses on loans	85,343				82,155				80,897				79,374				78,075
Goodwill	194,074				194,074				194,074				194,074				194,074
Total assets	8,437,280				8,315,325				8,123,128				8,170,102				7,903,430
Non-interest bearing deposits	1,508,203				1,482,514				1,481,217				1,548,624				1,714,918
Interest bearing deposits	5,217,870				5,086,724				5,127,863				5,122,124				4,687,889
Securities sold under agreements to repurchase	149,852				152,948				162,528				152,991				113,894
Federal funds purchased	6,442				10,029				9,961				12,852				11,518
Federal Home Loan Bank advances	325,000				400,000				200,000				200,000				350,000
Subordinated debentures	26,806				26,806				26,806				26,740				26,641
Accumulated other comprehensive income (loss)	(75,273		)		(94,980		)		(95,054		)		(92,798		)		(127,905		)
Stockholders' equity	934,094				894,535				874,711				858,103				806,918
Total shares outstanding	29,414				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 share	61.99				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 assets	10.86		%		10.65		%		10.56		%		10.07		%		10.39		%
Total risk-based capital	12.73		%		12.62		%		12.69		%		12.56		%		12.71		%
Common equity tier 1 risk-based capital	11.16		%		11.07		%		11.11		%		11.04		%		11.17		%
Tier 1 risk-based capital	11.52		%		11.43		%		11.49		%		11.43		%		11.57		%
Leverage	10.05		%		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 Data	9-30-24				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 sale	4,862				6,204				4,629				5,305				7,112
Investment securities	1,424,815				1,491,865				1,578,401				1,618,799				1,659,888
Federal Home Loan Bank stock	31,193				29,735				21,121				20,519				27,290
Loans	6,174,309				5,973,801				5,808,924				5,676,193				5,486,262
Total interest earning assets	7,783,997				7,660,117				7,567,065				7,579,766				7,305,205
Total assets	8,384,605				8,246,735				8,153,364				8,116,569				7,805,154
Non-interest bearing deposits	1,510,515				1,515,708				1,500,602				1,663,962				1,731,724
Interest bearing deposits	5,047,771				4,971,804				5,058,743				5,025,240				4,509,411
Total deposits	6,558,286				6,487,512				6,559,345				6,689,202				6,241,135
Securities sold under agreement to repurchase	156,865				147,327				164,979				130,148				127,063
Federal funds purchased	8,480				10,127				10,161				13,606				11,776
Federal Home Loan Bank advances	461,141				441,484				274,451				205,435				401,630
Subordinated debentures	26,806				26,806				26,794				26,706				26,606
Total interest bearing liabilities	5,701,063				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' equity	910,274				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 equivalent	3.33		%		3.26		%		3.20		%		3.25		%		3.34		%
Non-interest income to total revenue, fully tax equivalent	27.59		%		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 occupied	949,538				943,013				931,973				907,424				945,122
Commercial and industrial	1,379,293				1,356,970				1,293,696				1,307,128				1,251,027
Residential real estate - owner occupied	783,337				749,870				723,234				708,893				696,162
Residential real estate - non-owner occupied	381,051				365,846				360,958				358,715				350,386
Construction and land development	674,918				586,820				532,183				531,324				480,120
Home equity lines of credit	236,819				223,304				212,443				211,390				203,184
Consumer	143,684				151,221				145,022				145,340				143,703
Leases	16,760				17,258				16,619				15,503				14,710
Credit cards	26,285				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 accruing	870				186				106				110				1
Total non-performing loans	17,158				17,557				14,090				19,168				17,228
Other real estate owned	10				10				10				10				427
Total non-performing assets	$	17,168			$	17,567			$	14,100			$	19,178			$	17,655
Non-performing loans to total loans	0.27		%		0.29		%		0.24		%		0.33		%		0.31		%
Non-performing assets to total assets	0.20		%		0.21		%		0.17		%		0.23		%		0.22		%
Allowance for credit losses on loans to total loans	1.36		%		1.35		%		1.38		%		1.38		%		1.39		%
Allowance for credit losses on loans to average loans	1.38		%		1.38		%		1.39		%		1.40		%		1.42		%
Allowance for credit losses on loans to non-performing loans	497		%		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 employees	1,068				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 income	24,797				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

FAQ

What was Stock Yards Bancorp's (SYBT) earnings per share in Q3 2024?

Stock Yards Bancorp reported earnings of $1.00 per diluted share in Q3 2024, compared to $0.92 per share in Q3 2023.

How much did SYBT's total loans grow in Q3 2024?

SYBT's total loans increased by $207 million (3%) in Q3 2024, and $661 million (12%) year-over-year.

What was SYBT's net interest margin in Q3 2024?

SYBT's net interest margin was 3.33% in Q3 2024, expanding 7 basis points from the previous quarter.

How much did SYBT's deposits grow in Q3 2024?

SYBT's deposits grew by $157 million (2%) in Q3 2024, and $323 million (5%) year-over-year.