S.Y. Bancorp Reports Record Quarterly Earnings, with Net Income Increasing 15% over Prior Year to $7.7 Million or $0.53 Per Diluted Share

Excluding Unusual Items, Net Income for the Third Quarter Increased 10% to $7.4 Million or $0.51 Per Diluted Share

Business Wire

LOUISVILLE, Ky.--(BUSINESS WIRE)--

S.Y. Bancorp, Inc. (SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville, Indianapolis and Cincinnati metropolitan markets, today reported record results for the third quarter and first nine months of 2013. The Company's performance continued to underscore solid contributions from key areas of the Company, including:

  • Continued net loan growth as well as a stable pipeline of new loan opportunities;
  • Growing confidence in credit quality that supported a lower loan loss provision compared with the prior-year quarter; and
  • Higher revenue from the investment management and trust services department.

The following is a summary of the Company's reported results:

                           

Quarter Ended September 30,

2013

2012

Change

Net income $ 7,682,000 $ 6,682,000 15%
Net income per share, diluted $ 0.53 $ 0.48 10%
Return on average equity 13.70% 13.31%
Return on average assets 1.35% 1.27%
 

Nine Months Ended September 30,

2013

2012

Change

Net income $ 20,857,000 $ 19,287,000 8%
Net income per share, diluted $ 1.47 $ 1.38 7%
Return on average equity 12.86% 13.20%
Return on average assets 1.27% 1.26%
 

The Company's results for the third quarter and first nine months of 2013 included the effect of several unusual items. Excluding these items, net income for the third quarter of 2013 and year-to-date period ended September 30, 2013, was $7.4 million or $0.51 per diluted shares and $21.1 million or $1.49 per diluted share, respectively. See reconciliation of GAAP and non-GAAP measures later in this release.

Commenting on the results, David Heintzman, Chairman and Chief Executive Officer, said, "We are pleased to announce another solid quarterly performance by S.Y. Bancorp, demonstrating the diversity of our revenue streams. Continued loan growth and an ongoing improvement in credit quality, combined with an increased contribution from our investment management and trust services, helped boost our results to a record amount for the third quarter.

"During the third quarter, our loan production reached the strongest level on record for a quarter, as we closed $146 million in new loans, resulting in $42 million of net growth since June 30," Heintzman continued. "Importantly, all of our markets participated in this growth, which continues to drive earnings and a higher loan portfolio. We were particularly pleased to see our business in Oldham County gain traction following our acquisition of THE BANCorp, INC. ("BANCorp"), the holding company for THE BANK – Oldham County, in the second quarter, as both net loans and deposits have grown. Mortgage banking also has increased in our Oldham County market, along with new investment management and trust business.

"As our loan volume has strengthened, so too has our credit quality continued to signal further improvement," Heintzman added. "Non-performing loans and assets continue to decline, both in absolute terms and relative to total loans and assets. Also, leading indicators of credit quality problems, such as past due and watch list loans, continue to show positive trends. With these indications of lower risk in our loan portfolio, and consistent with the second quarter of 2013, we again were positioned to reduce our provision for loan losses compared with the prior-year quarter." Heintzman pointed out that an increase in net charge-offs for the third quarter reflected the charge down of a single non-accrual loan for which the Company had previously allocated a partial specific reserve.

In addition to the momentum seen in its banking operations, Heintzman noted that the Company's investment management and trust services department continued to make a significant contribution to earnings in the third quarter, generating a 14% increase in income. The department, which has $2.14 billion in assets under management, has benefited from new business growth as well as the strengthening of stock market conditions. It continues to rank among the top 100 bank trust departments in the nation, based on revenue. On the other hand, Heintzman said, lending volume for the Company's mortgage division slowed in the third quarter of 2013 as, consistent with national trends, refinancing activity declined in the face of rising interest rates. Purchase loan activity, however, has continued to rise, with the number of purchase loans increasing 18% in the third quarter over the year-earlier quarter and 24% for the year-to-date period.

Concluding, Heintzman said, "Our solid results for the third quarter, combined with the momentum we developed in the first half of the year, position us to build on our record of growth, profitability and improved stockholder returns for 2013. Looking ahead, we are encouraged by the pipeline of new loans, which remains consistent with the past quarter. While this pipeline only gives visibility for a few months, it still bodes well for the fourth quarter. Near term, we continue to expect further compression in net interest margin and, somewhat more broadly, we remain concerned about continued stability in the economy given current interest rate and fiscal uncertainties. Nevertheless, we see strength in our three markets and have confidence in our style of community banking, both of which are good signs for continued growth in each market."

S.Y. Bancorp's total assets increased $187.0 million or 9% at September 30, 2013, reaching $2.29 billion compared with $2.10 billion at September 30, 2012. The Company's loan portfolio increased $131.0 million or 8% to $1.71 billion at September 30, 2013, compared with $1.58 billion at September 30, 2012. Total deposits increased $192.4 million or 11% to $1.88 billion at September 30, 2013, from $1.69 billion at the end of the third quarter of 2012.

The Company's capital levels remained strong during the third quarter of 2013. The Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and Total risk-based capital ratio were 11.21%, 13.66% and 14.91%, respectively, at September 30, 2013. Each of these ratios exceeds the required minimum of 5%, 6% and 10%, respectively, necessary to be deemed a "well-capitalized" institution – the highest capital rating for financial institutions. The ratio of tangible common equity to total tangible assets was 9.78% at September 30, 2013, compared with 9.63% at June 30, 2013, and 9.55% as of September 30, 2012. See reconciliation of GAAP and non-GAAP measures later in this release. The Company intends to maintain capital ratios at historically higher levels in light of current economic and political uncertainties and to remain well positioned to pursue expansion and other opportunities that may arise. Even with those objectives, S.Y. Bancorp has continued its efforts to enhance stockholder value through steadily increased cash dividends, raising the dividend rate five times over the past six years.

In September 2013, the Company announced that it would redeem all of its 10% fixed-rate cumulative trust preferred securities, totaling $30 million. The redemption will eliminate related future interest costs and is expected to add $0.13 to annual earnings per diluted share beginning in 2014. In connection with this, the Company will write off approximately $1.3 million in unamortized debt issuance costs. Following the redemption, the Company's capital ratios are expected to remain well in excess of the regulatory minimum for well capitalized status.

Net interest income – the Company's largest source of revenue – increased $1.2 million or 7% to $20.0 million in the third quarter of 2013 from $18.8 million in the prior-year quarter. For the first nine months of 2013, net interest income increased $1.8 million or 3% to $57.5 million from $55.6 million in the prior-year period. In the third quarter of 2013, net interest margin was 3.79% versus 3.72% in the second quarter of 2013 and 3.92% in the third quarter of 2012. Net interest margin for the first nine months of 2013 declined 21 basis points to 3.78% from 3.99% a year ago. Net interest margin in the third quarter of 2013 continued to reflect a higher amount of prepayment fees that management considers non-recurring. The Company's more normalized or core net interest margin declined to 3.63% for the third quarter of 2013 from 3.66% for the second quarter of 2013, 3.77% in the first quarter of 2013, 3.74% in the fourth quarter of 2012, and 3.85% in the third quarter of 2012 (see reconciliation of GAAP and non-GAAP measures later in this release). Management believes these core margins better indicate the increasing pressure of a low interest rate environment and a highly competitive loan market, and it currently expects margin compression to continue in 2013, resulting in core net interest margin for the full year of between 3.65% and 3.70%.

Non-performing loans (NPLs) totaled $30.5 million or 1.78% of total loans outstanding at September 30, 2013, compared with $31.5 million or 1.89% of total loans outstanding at June 30, 2013, and $31.2 million or 1.98% of total loans at September 30, 2012. Included in NPLs are loans that have been restructured totaling approximately $8.6 million at September 30, 2013, $8.6 million at June 30, 2013, and $7.5 million at September 30, 2012. These loans are performing in accordance with their restructured terms and are accruing interest. Non-performing assets (NPAs), which include NPLs and repossessed assets, were $37.0 million or 1.62% of total assets at September 30, 2013, a decrease from $39.1 million or 1.73% of total assets at June 30, 2013, and $38.1 million or 1.81% of total assets at September 30, 2012.

Net charge-offs in the third quarter of 2013 totaled $4.3 million or 0.26% of average loans, up from $1.4 million or 0.08% of average loans in the second quarter of 2013 and $3.0 million or 0.19% of average loans in the year-earlier period. The increase in net charges-offs in the third quarter of 2013 reflected the charge down of a single non-accrual loan for which the Company had previously allocated a partial specific reserve.

The Company's loan loss provision for the third quarter of 2013 was $1.3 million, level with the second quarter of 2013 and down from $2.5 million in the prior-year quarter. The allowance for loan losses stood at 1.70% of total loans as of September 30, 2013, compared with 1.92% at June 30, 2013, and 1.98% at September 30, 2012. Management continues to see favorable trends in credit quality metrics and believes the Company remains adequately reserved based on its current assessment of overall risk in the loan portfolio.

Total non-interest income decreased $143 thousand or 2% to $9.7 million in the third quarter of 2013 compared with $9.8 million for the prior-year quarter. The decline primarily reflected a decrease of $618 thousand or 48% in gains on sales of mortgage loans. Partially offsetting the decline in gains on sales of mortgage loans was a $502 thousand or 14% increase in income from investment management and trust services for the third quarter of 2013. For the first nine months of 2013, total non-interest income increased $861 thousand or 3% to $29.2 million compared with $28.3 million in the first nine months of 2012, including the bargain purchase gain of $449 thousand related to the acquisition of BANCorp during the second quarter of 2013.

Total non-interest expense increased $526 thousand or 3% to $17.6 million in the third quarter of 2013 from $17.0 million in the same period last year. The change primarily reflected a $797 thousand or 8% increase in salaries and employee benefits, a $224 thousand or 17% increase in data processing expense, and a $157 thousand or 12% increase in net occupancy expenses. The increase in salaries and employee benefits on a comparable quarterly basis was attributable largely to health insurance expense and other employee benefits as well as the addition of personnel in connection with the acquisition of BANCorp. Virtually all of the increase in data processing was due to the acquisition, reflecting the temporary operation of dual data systems, which has now ended. Approximately one-half of the increase in occupancy costs was related to the acquisition and will be ongoing. Non-interest expense for the quarter benefitted from the elimination of a $505 thousand liability for expired debit card rewards, which was partially offset by a $365 thousand write-off of other real estate owned (OREO). Regulators limit the holding period for OREO to 10 years. For the first nine months of 2013, total non-interest expense increased $3.7 million or 8% to $52.0 million compared with $48.3 million in the first nine months of 2012. In addition to the impact of usual items in the third quarter of 2013, total non-interest expense for the year-to-date period ended September 30, 2013, included acquisition-related expenses of $1.5 million. The Company's third quarter efficiency ratio was 58.72% compared with 58.91% in the third quarter of 2012.

In August 2013, S.Y. Bancorp's Board of Directors declared a quarterly cash dividend of $0.20 per common share. The latest dividend was distributed on October 1, 2013, to stockholders of record as of September 9, 2013.

Louisville, Kentucky-based S.Y. Bancorp, Inc., with $2.29 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 Global Select Market under the symbol SYBT. The trust preferred securities of S.Y. Bancorp Capital Trust II also trade on the NASDAQ Global Select Market under the symbol SYBTP.

The following table provides a reconciliation of net income and earnings per diluted share to adjusted net income and adjusted earnings per diluted share, both non-GAAP measures. The Company provides non-GAAP earnings information to improve the comparability of its results and provide additional insight into the strength of the Company's operations.

 
Reconciliation of GAAP and Non-GAAP Measures

(Amounts in thousands; adjustments expressed net of tax)

 
    Quarter Ended

September 30,

    Nine Months Ended

September 30,

2013     2012 2013     2012
Net income as reported $ 7,682 $ 6,682 $ 20,857 $ 19,287
Elimination of debit card processing liability (323 ) -- (323 ) --
Interest adjustment on non-accrual loan (242 ) -- (242 ) --
OREO write-off per regulatory requirement 234 -- 234 --
Acquisition costs, net of gain on acquisition   --     --   613     --
Adjusted net income $ 7,351   $ 6,682 $ 21,139   $ 19,287
 
Earnings per diluted share as reported $ 0.53 $ 0.48 $ 1.47 $ 1.38
Elimination of debit card processing liability (0.02 ) -- (0.02 ) --
Interest adjustment on non-accrual loan (0.02 ) -- (0.02 ) --
OREO write-off per regulatory requirement 0.02 -- 0.02 --
Acquisition costs, net of gain on acquisition   --     --   0.04     --
Adjusted earnings per diluted share $ 0.51   $ 0.48 $ 1.49   $ 1.38
 

The following table provides a reconciliation of total stockholders' equity in accordance with US GAAP to tangible common equity in accordance with applicable regulatory requirements. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.

 
Tangible Common Equity Ratio

(Dollars in thousands)

       
   

Sept. 30,
2013

June 30,
2013

Sept. 30,
2012

Total stockholders' equity (a) $ 226,535 $ 220,352 $ 201,422
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (2,298 )   (2,445 )   --  
Tangible common equity (c) $ 223,555   $ 217,225   $ 200,740  
 
Total assets (b) $ 2,289,755 $ 2,258,600 $ 2,102,589
Less goodwill (682 ) (682 ) (682 )
Less core deposit intangible   (2,298 )   (2,445 )   --  
Tangible assets (d) $ 2,286,775   $ 2,255,473   $ 2,101,907  
 
Total stockholders' equity to total assets (a/b) 9.89 % 9.76 % 9.58 %
Tangible common equity ratio (c/d)   9.78 %   9.63 %   9.55 %
 

The following table provides a reconciliation of net interest margin in accordance with US GAAP to core net interest margin. The Company provides this information to illustrate the trend in quarterly net interest margin sequentially during 2012 and 2013 and to show the impact of prepayment fees and late charges on net interest margin.

                             

Reconciliation of Net Interest Margin to Core

 

Sept. 30,
2013

June 30,
2013

March 31,
2013

Dec. 31,
2012

Sept. 30,
2012

Net interest margin 3.79 % 3.72 % 3.83 % 3.78 % 3.92 %

Prepayment penalties / late charges

(0.06 ) (0.04 ) (0.06 ) (0.04 ) (0.07 )
Interest adjustment on non-accrual loan (0.07 ) -- -- -- --
Accretion of fair value adjustments (0.03 ) (0.02 ) --   --   --  
Core net interest margin 3.63 % 3.66 % 3.77 % 3.74 % 3.85 %
 

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 subsidiaries operate; competition for the Company's customers from other providers of financial services; government legislation and regulation, which change from time to time 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.

 

S.Y. Bancorp, Inc. Financial Information (unaudited)

Third Quarter 2013 Earnings Release
(In thousands unless otherwise noted)
 
    Three Months Ended     Nine Months Ended
Sept 30, Sept 30,
2013     2012 2013     2012
Income Statement Data
Net interest income, fully tax equivalent (1) $ 20,270 $ 19,140 $ 58,210   $ 56,728
Interest income
Loans $ 20,233 $ 19,874 $ 58,762 $ 59,227
Federal funds sold 63 82 215 216
Mortgage loans held for sale 57 98 177 217
Securities   1,914   1,638   5,241     5,207
Total interest income   22,267   21,692   64,395     64,867
Interest expense
Deposits 1,209 1,725 3,833 5,652
Federal funds purchased 9 46 26 138
Securities sold under agreements to repurchase 38 8 106 24
Federal Home Loan Bank (FHLB) advances 221 345 657 1,072
Subordinated debentures   773   773   2,318     2,341
Total interest expense   2,250   2,897   6,940     9,227
Net interest income 20,017 18,795 57,455 55,640
Provision for loan losses   1,325   2,475   4,975     9,025
Net interest income after provision for loan losses   18,692   16,320   52,480     46,615
Non-interest income
Investment management and trust income 4,017 3,515 12,032 10,675
Service charges on deposit accounts 2,348 2,161 6,592 6,341
Bankcard transaction revenue 1,087 985 3,068 2,967
Gains on sales of mortgage loans held for sale 659 1,277 2,333 2,882
Loss on the sale of securities - - (5 ) -
Brokerage commissions and fees 456 651 1,693 1,844
Bank owned life insurance 260 226 771 743
Gain on acquisition - - 449 -
Other non-interest income   825   980   2,258     2,878
Total non-interest income   9,652   9,795   29,191     28,330
Non-interest expense
Salaries and employee benefits expense 10,508 9,711 30,186 28,189
Net occupancy expense 1,522 1,365 4,188 4,198
Data processing expense 1,520 1,296 4,695 4,131
Furniture and equipment expense 269 347 846 965
FDIC insurance expense 348 398 1,055 1,095
Loss on other real estate owned 475 969 365 1,177
Acquisition costs - - 1,548 -
Other non-interest expenses   2,929   2,959   9,089     8,534
Total non-interest expense   17,571   17,045   51,972     48,289
Net income before income tax expense 10,773 9,070 29,699 26,656
Income tax expense   3,091   2,388   8,842     7,369
Net income $ 7,682 $ 6,682 $ 20,857   $ 19,287
 
Weighted average shares - basic 14,408 13,883 14,144 13,867
Weighted average shares - diluted 14,556 13,966 14,228 13,929
 
Net income per share, basic $ 0.53 $ 0.48 $ 1.47 $ 1.39
Net income per share, diluted 0.53 0.48 1.47 1.38
Cash dividend declared per share 0.20 0.19 0.60 0.57
 
Balance Sheet Data (at period end)
Total loans $ 1,709,258 $ 1,578,290
Allowance for loan losses 28,990 31,245
Total assets 2,289,755 2,102,589
Non-interest bearing deposits 429,297 359,097
Interest bearing deposits 1,453,154 1,330,933
Federal Home Loan Bank advances 32,422 60,423
Subordinated debentures 30,900 30,900
Stockholders' equity 226,535 201,422
Total shares outstanding 14,554 13,895
Book value per share 15.57 14.50
Market value per share 28.33 23.66
           

S.Y. Bancorp, Inc. Financial Information (unaudited)

Third Quarter 2013 Earnings Release
 
Three Months Ended Nine Months Ended
Sept 30, Sept 30,
2013 2012 2013 2012
Average Balance Sheet Data
Average federal funds sold $ 75,705 $ 110,263 $ 93,664 $ 96,366
Average mortgage loans held for sale 5,685 11,776 6,661 7,771
Average securities available for sale 360,055 266,799 323,148 265,343
Average FHLB stock and other securities 7,347 6,180 6,771 6,096
Average loans 1,674,049 1,551,423 1,628,261 1,529,440
Average earning assets 2,122,841 1,940,261 2,058,505 1,898,920
Average assets 2,264,937 2,093,512 2,193,010 2,051,312
Average interest bearing deposits 1,453,534 1,330,877 1,414,453 1,308,372
Average total deposits 1,867,229 1,677,819 1,807,772 1,638,030
Average securities sold under agreement
to repurchase 64,652 57,878 58,881 59,507
Average federal funds purchased and
other short term borrowings 19,628 19,366 20,370 20,084
Average Federal Home Loan Bank advances 31,970 60,424 31,904 60,426
Average subordinated debentures 30,900 30,900 30,900 31,666
Average interest bearing liabilities 1,600,684 1,499,445 1,556,508 1,480,055
Average stockholders' equity 222,528 199,766 216,879 195,217
 
Performance Ratios
Annualized return on average assets 1.35 % 1.27 % 1.27 % 1.26 %
Annualized return on average equity 13.70 % 13.31 % 12.86 % 13.20 %
Net interest margin, fully tax equivalent 3.79 % 3.92 % 3.78 % 3.99 %
Non-interest income to total revenue, fully
tax equivalent 32.26 % 33.85 % 33.40 % 33.31 %
Efficiency ratio 58.72 % 58.91 % 59.46 % 56.77 %
 
Capital Ratios
Average stockholders' equity to average assets 9.82 % 9.54 % 9.89 % 9.52 %
Tier 1 risk-based capital 13.66 % 13.09 %
Total risk-based capital 14.91 % 14.35 %
Leverage 11.21 % 10.76 %
 
Loans by Type
Commercial and industrial $ 500,478 $ 419,568
Construction and development 135,786 138,165
Real estate mortgage - commercial investment 429,832 417,357
Real estate mortgage - owner occupied commercial 326,523 301,017
Real estate mortgage - 1-4 family residential 180,162 158,013
Home equity - first lien 38,364 36,480
Home equity - junior lien 63,983 67,312
Consumer 34,130 40,378
 
Asset Quality Data
Allowance for loan losses to total loans 1.70 % 1.98 %
Allowance for loan losses to average loans 1.73 % 2.01 % 1.78 % 2.04 %
Allowance for loan losses to non-performing loans 95.10 % 100.19 %
Nonaccrual loans $ 20,284 $ 22,448
Troubled debt restructuring 8,585 7,511
Loans - 90 days past due & still accruing 1,615 1,228
Total non-performing loans 30,484 31,187
OREO and repossessed assets 6,565 6,939
Total non-performing assets 37,049 38,126
Non-performing loans to total loans 1.78 % 1.98 %
Non-performing assets to total assets 1.62 % 1.81 %
Net charge-offs to average loans (2) 0.26 % 0.19 % 0.48 % 0.49 %
Net charge-offs $ 4,315 $ 3,003 $ 7,866 $ 7,525
               

S.Y. Bancorp, Inc. Financial Information (unaudited)

Third Quarter 2013 Earnings Release
   
Five Quarter Comparison
9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Income Statement Data
Net interest income, fully tax equivalent (1) $ 20,270   $ 19,229   $ 18,711   $ 18,925   $ 19,140  
Net interest income $ 20,017 $ 18,975 $ 18,463 $ 18,310 $ 18,795
Provision for loan losses   1,325     1,325     2,325     2,475     2,475  
Net interest income after provision for loan losses   18,692     17,650     16,138     15,835     16,320  
Investment management and trust income 4,017 4,129 3,886 3,603 3,515
Service charges on deposit accounts 2,348 2,244 2,000 2,175 2,161
Bankcard transaction revenue 1,087 1,020 961 1,018 985
Gains on sales of mortgage loans held for sale 659 807 867 1,439 1,277
Loss on the sale of securities - (5 ) - - -
Brokerage commissions and fees 456 622 615 749 651
Bank owned life insurance 260 259 252 263 226
Gain on acquisition - 449 - - -
Other non-interest income   825     786     647     880     980  
Total non-interest income   9,652     10,311     9,228     10,127     9,795  
Salaries and employee benefits expense 10,508 10,021 9,657 9,771 9,711
Net occupancy expense 1,522 1,435 1,231 1,453 1,365
Data processing expense 1,520 1,819 1,356 1,147 1,296
Furniture and equipment expense 269 286 291 341 347
FDIC Insurance expense 348 357 350 399 398
Loss (gain) on other real estate owned 475 (74 ) (35 ) 233 969
Acquisition costs - 1,548 - - -
Other non-interest expenses   2,929     3,430     2,729     3,839     2,959  
Total non-interest expense   17,571     18,822     15,579     17,183     17,045  
Net income before income tax expense 10,773 9,139 9,787 8,779 9,070
Income tax expense   3,091     2,732     3,019     2,265     2,388  
Net income $ 7,682   $ 6,407   $ 6,768   $ 6,514   $ 6,682  
 
Weighted average shares - basic 14,408 14,203 13,814 13,901 13,883
Weighted average shares - diluted 14,556 14,243 13,851 13,955 13,966
 
Net income per share, basic $ 0.53 $ 0.45 $ 0.49 $ 0.47 $ 0.48
Net income per share, diluted 0.53 0.45 0.49 0.47 0.48
Cash dividend declared per share 0.20 0.20 0.20 0.20 0.19
 
Balance Sheet Data (at period end)
Cash and due from banks $ 47,048 $ 41,480 $ 31,715 $ 42,610 $ 35,032
Federal funds sold 23,472 36,177 27,745 25,093 17,351
Mortgage loans held for sale 3,829 7,080 4,576 14,047 13,417
Securities available for sale 401,063 402,807 362,904 386,440 360,946
FHLB stock and other securities 7,347 7,347 6,180 6,180 6,180
Total loans 1,709,258 1,666,991 1,600,960 1,584,594 1,578,290
Allowance for loan losses 28,990 31,980 32,022 31,881 31,245
Total assets 2,289,755 2,258,600 2,121,066 2,148,262 2,102,589
Non-interest bearing deposits 429,297 412,584 376,972 396,159 359,097
Interest bearing deposits 1,453,154 1,452,260 1,359,912 1,385,534 1,330,933
Securities sold under agreements to repurchase 56,225 56,554 50,879 59,045 54,127
Federal funds purchased 31,861 28,782 36,821 16,552 19,308
Federal Home Loan Bank advances 32,422 31,859 31,872 31,882 60,423
Subordinated debentures 30,900 30,900 30,900 30,900 30,900
Stockholders' equity 226,535 220,352 208,897 205,075 201,422
Total shares outstanding 14,554 14,509 13,958 13,915 13,895
Book value per share 15.57 15.19 14.97 14.74 14.50
Market value per share 28.33 24.53 22.50 22.42 23.66
 
Capital Ratios
Average stockholders' equity to average assets 9.82 % 9.96 % 9.89 % 9.60 % 9.54 %
Tier 1 risk-based capital 13.66 % 13.75 % 13.60 % 13.17 % 13.09 %
Total risk-based capital 14.91 % 15.00 % 14.86 % 14.42 % 14.35 %
Leverage 11.21 % 11.26 % 11.11 % 10.79 % 10.76 %
 

S.Y. Bancorp, Inc. Financial Information (unaudited)

Third Quarter 2013 Earnings Release
                   
Five Quarter Comparison
9/30/13 6/30/13 3/31/13 12/31/12 9/30/12
Average Balance Sheet Data
Average federal funds sold $ 75,705 $ 95,029 $ 110,472 $ 145,946 $ 110,263
Average mortgage loans held for sale 5,685 6,471 7,851 13,418 11,776
Average investment securities 367,402 338,020 283,411 273,903 266,799
Average loans 1,674,049 1,644,886 1,585,326 1,573,469 1,583,269
Average earning assets 2,122,841 2,073,415 1,979,128 1,991,271 1,940,261
Average assets 2,264,937 2,206,477 2,105,996 2,129,501 2,093,512
Average interest bearing deposits 1,453,534 1,427,469 1,361,349 1,346,908 1,330,877
Average total deposits 1,867,229 1,821,671 1,732,947 1,723,811 1,677,819

Average securities sold under agreement to repurchase

64,652 54,576 57,335 60,918 57,878

Average federal funds purchased and other short term borrowings

19,628 21,839 19,643 17,487 19,366
Average Federal Home Loan Bank advances 31,970 31,864 31,876 59,180 60,424
Average subordinated debentures 30,900 30,900 30,900 30,900 30,900
Average interest bearing liabilities 1,600,684 1,566,648 1,501,103 1,515,393 1,499,445
Average stockholders' equity 222,528 219,871 208,201 204,502 199,766
 
Performance Ratios
Annualized return on average assets 1.35 % 1.16 % 1.30 % 1.22 % 1.27 %
Annualized return on average equity 13.70 % 11.69 % 13.18 % 12.67 % 13.31 %
Net interest margin, fully tax equivalent 3.79 % 3.72 % 3.83 % 3.78 % 3.92 %

Non-interest income to total revenue, fully tax equivalent

32.26 % 34.91 % 33.03 % 34.86 % 33.85 %
Efficiency ratio 58.72 % 63.72 % 55.76 % 59.15 % 58.91 %
 
Loans by Type
Commercial and industrial $ 500,478 $ 474,255 $ 455,258 $ 426,930 $ 419,568
Construction and development 135,786 133,464 125,624 131,253 138,165
Real estate mortgage - commercial investment 429,832 419,035 412,954 414,084 417,357
Real estate mortgage - owner occupied commercial 326,523 321,518 306,924 304,114 301,017
Real estate mortgage - 1-4 family residential 180,162 180,700 165,179 166,280 158,013
Home equity - 1st lien 38,364 38,598 37,182 39,363 36,480
Home equity - junior lien 63,983 65,486 62,896 65,790 67,312
Consumer 34,130 33,935 34,943 36,780 40,378
 
Asset Quality Data
Allowance for loan losses to total loans 1.70 % 1.92 % 2.00 % 2.01 % 1.98 %
Allowance for loan losses to average loans 1.73 % 1.94 % 2.02 % 2.03 % 1.97 %
Allowance for loan losses to non-performing loans 95.10 % 101.63 % 95.55 % 106.10 % 100.19 %
Nonaccrual loans $ 20,284 $ 20,886 $ 20,561 $ 18,360 $ 22,448
Troubled debt restructuring 8,585 8,565 10,999 10,969 7,511
Loans - 90 days past due & still accruing 1,615 2,017 1,952 719 1,228
Total non-performing loans 30,484 31,468 33,512 30,048 31,187
OREO and repossessed assets 6,565 7,619 5,720 7,364 6,939
Total non-performing assets 37,049 39,087 39,232 37,412 38,126
Non-performing loans to total loans 1.78 % 1.89 % 2.09 % 1.90 % 1.98 %
Non-performing assets to total assets 1.62 % 1.73 % 1.85 % 1.74 % 1.81 %
Net charge-offs to average loans (2) 0.26 % 0.08 % 0.14 % 0.12 % 0.19 %
Net charge-offs $ 4,315 $ 1,367 $ 2,184 $ 1,839 $ 3,003
 
Other Information
Total assets under management (in millions) $ 2,140 $ 2,047 $ 2,009 $ 1,961 $ 1,923
Full-time equivalent employees 510 511 488 495 490
 
(1) - Interest income on a fully tax equivalent basis includes the additional amount of interest income that would have been earned if investments in certain tax-exempt interest earning assets had been made in assets subject to federal, state and local taxes yielding the same after-tax income.
 
(2) - Interim ratios not annualized

Contact:
S.Y. Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President,
Treasurer and Chief Financial Officer

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