Stock Yards Bancorp Reports Record 2021 Earnings and Strong Fourth Quarter Earnings of $24.6 Million or $0.92 per Diluted Share

Highlighted by Solid Organic Balance Sheet Growth and Record Levels of Non-Interest Income


LOUISVILLE, Ky., Jan. 26, 2022 (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, 2021. 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, 2021 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 2021.

    
(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 2021 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 2021 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 2022 and beyond.”

At December 31, 2021, 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 2022,” 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, 2021, 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, 2021.

Additional key factors contributing to the fourth quarter of 2021 results included:

  • Organic loan growth (excluding PPP), totaled $71 million for the fourth quarter of 2021. Loan balances across all four primary markets ended at historical highs at December 31, 2021.
  • 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 2021 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 2021 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 2021, 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 2021, 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, 2021:

  • 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 2021, PPP income totaled $22.0 million, compared to $13.6 million for 2020. Going into 2022, 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 2021 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 2021 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 2021. 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 2021 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 2021 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 2021 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 2021 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 2021, 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 2021, 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 2021, 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, 2021, 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 2021. In addition, the Company increased its contribution to the Bank’s foundation established to support various community initiatives, due to outstanding 2021 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, 2021 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, 2021, 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 2021, 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, 2021, 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, 2021, 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 2021, 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, 2021.

At December 31, 2021, 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, 2021, compared to 9.56%(1) and 9.28%(1), respectively, at December 31, 2020.

In November, 2021, the board of directors declared a cash dividend of $0.28 per common share. The dividend was paid on December 31, 2021, to stockholders of record as of December 20, 2021.

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 2021 Compared with Third Quarter 2021

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 2021.

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 2021. During the third quarter of 2021, 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, 2021, Compared with September 30, 2021

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, 2021 and unchanged compared to September 30, 2021. While remaining well below pre-pandemic levels, commercial and industrial line usage increased to 32% at year-end compared to 29% at September 30, 2021.

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 2021 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 2021 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 2021 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 2021 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, 2021, 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%