Stock Yards Bancorp(US:SYBT)2024-10-23 11:30Financial Performance - Stock Yards Bancorp reported third quarter earnings of $29.4 million, or $1.00 per diluted share, compared to $27.1 million, or $0.92 per diluted share in the same quarter of 2023, marking a 8.5% increase in net income year-over-year[1][2]. - Net income for the third quarter was $27.1 million, with net income per share increasing to $1.00[21]. - The company reported a net income of $10,931 million, compared to $10,795 million in the prior quarter, reflecting a growth of 1.3%[26]. - Annualized return on average assets was 1.39%, slightly up from 1.38% in the previous year[23]. - Annualized return on average equity decreased to 12.83%, compared to 13.26% in the previous year[23]. Loan and Deposit Growth - Total loans increased by $661 million, or 12%, year-over-year, with $207 million, or 3%, growth on a linked quarter basis, driven by strong demand across all loan categories[3][12]. - Total loans and leases reached $6,278,133, an increase of 11.73% compared to $5,617,084 a year ago[24]. - Total deposits increased to $6,558,286, up from $6,241,135, marking a growth of 5.08% year-over-year[23]. - Total deposits increased to $6.56 billion, up 1.1% from $6.49 billion in the previous quarter[28]. Income and Revenue - Net interest income rose by $3.7 million, or 6%, to $65.0 million, with the net interest margin at 3.33%, a slight decrease of one basis point year-over-year[5][7]. - Non-interest income increased by $1.9 million, or 8%, to $24.8 million, with significant contributions from treasury management fees and WM&T income[8][9]. - Total revenue for the quarter was $64,979 million, an increase from $62,022 million in the previous quarter, representing a growth of 4.7%[26]. Asset Growth - Total assets increased by $534 million, or 7%, year-over-year, reaching $8.44 billion as of September 30, 2024[12][14]. - Total assets reached $8,437,280 million, up from $8,315,325 million in the previous quarter, marking an increase of 1.5%[27]. - Total stockholders' equity rose to $910,274, a 12.31% increase from $810,710 in the same quarter last year[23]. Credit Quality - The provision for credit losses was recorded at $4.3 million, reflecting strong loan growth and changes in economic forecasts, compared to $2.3 million in the same quarter of 2023[8][12]. - Non-performing loans to total loans improved to 0.27%, down from 0.31% in the previous year[24]. - The allowance for credit losses on loans to total loans was 1.36%, a slight decrease from 1.39% in the previous year[24]. Efficiency and Cost Management - Non-interest expenses decreased by $657,000 to $48.5 million, as compensation expense increases were offset by reductions in other areas[16]. - The efficiency ratio improved to 53.92%, down from 55.38% in the previous year, indicating better cost management[23]. - Efficiency ratio improved to 53.92%, down from 57.26% in the previous quarter, indicating better cost management[31]. Shareholder Returns - The board of directors increased the quarterly cash dividend to $0.31 per common share, reflecting the company's commitment to returning value to shareholders[14]. - Book value per share was reported at $27.52, with a market value per share of $39.29[22]. - The book value per share improved to $31.76 from $30.44, showing a growth of 4.3%[27]. Recognition and Strategic Focus - Stock Yards Bancorp was recognized as a "Sm-All Star" by Piper Sandler, highlighting its strong performance across various financial metrics[4]. - The company is focusing on expanding its market presence and enhancing its product offerings through new technology developments and strategic acquisitions[26].