Stock Yards Bancorp(SYBT)2025-04-23 11:30Financial Performance - Stock Yards Bancorp reported record earnings of $33.3 million, or $1.13 per diluted share, for Q1 2025, compared to $25.9 million, or $0.88 per diluted share, in Q1 2024, representing a 29% increase in net income [2][3]. - Net income for the first quarter of 2025 was $33.3 million, compared to $25.9 million in the same quarter of 2024, representing a 29% increase [32]. - Net income for Q1 2025 rose to $33,271 million, a 4.98% increase compared to $31,694 million in Q4 2024 [37]. - Basic net income per share increased to $1.13 in Q1 2025 from $1.08 in Q4 2024, representing a growth of 4.63% [37]. Loan Growth - Total loans increased by $797 million, or 14%, year-over-year, with $126 million, or 2%, growth in the linked quarter, marking the best first quarter of net loan growth adjusted for acquisition-related activity [3][7]. - Total loans expanded by $126 million, or 2%, with the Construction and Land Development segment leading growth at $56 million, or 9% [27]. - Total loans increased to $6,646,360 million in Q1 2025, compared to $6,520,402 million in Q4 2024, reflecting a growth of 1.92% [38]. Interest Income and Margin - Net interest income rose by $10.5 million, or 17%, to $70.6 million, driven by strong organic loan growth and higher interest earning asset yields [6][11]. - Net interest income for Q1 2025 was $70,552 million, an increase of 0.84% from $69,969 million in Q4 2024 [36]. - The net interest margin expanded by 26 basis points to 3.46% compared to Q1 2024, boosted by strong loan growth and a reduction in the cost of funds [3][20]. - The net interest margin, fully tax equivalent, improved to 3.46% from 3.20% year-over-year [34]. Deposits - Total deposits grew by $685 million, or 10%, over the past 12 months, with a significant shift towards higher-cost deposits [16]. - Total deposits increased by $128 million, or 2%, with non-interest-bearing demand accounts rising by $43 million, or 3% [28]. - Total deposits increased to $7,293,966 thousand, up from $7,166,401 thousand in the previous quarter, representing a growth of 1.77% [39]. Non-Interest Income - Non-interest income decreased by $275,000, or 1%, to $23.0 million compared to Q1 2024, with Wealth Management & Trust income declining by 1% due to equity market declines [9][12]. - Total non-interest income for Q1 2025 was $22,996 million, down from $23,507 million in Q4 2024, reflecting a decrease of 2.17% [36]. - Non-interest income decreased by $511,000, or 2%, to $23.0 million, while wealth management and trust services income increased by $301,000, or 3% [25]. Credit Quality - The provision for credit losses was recorded at $900,000, reflecting strong loan growth and increased specific reserves, while traditional credit quality metrics remained strong [8][17]. - Provision for credit losses recorded was $900,000, down from $2.2 million in the previous quarter [24]. - Provision for credit losses decreased to $900 million in Q1 2025 from $2,675 million in Q4 2024, indicating improved credit quality [36]. - Non-performing loans to total loans ratio improved to 0.24%, down from 0.34% in the previous quarter [39]. Assets and Capital - Total assets increased by $874 million, or 11%, year-over-year, reaching $9.00 billion as of March 31, 2025 [13]. - Total assets reached $8,997,478 thousand as of March 31, 2025, up from $8,863,419 thousand at the end of Q4 2024, marking a 1.51% increase [37]. - Tangible common equity ratio improved to 8.72% as of March 31, 2025, compared to 8.36% a year earlier, indicating strong capital position [18]. - Tangible common equity increased to $766,495 thousand, up from $730,584 thousand in the previous quarter, reflecting a stronger capital position [44]. Efficiency and Profitability - The efficiency ratio improved to 54.50% in Q1 2025 from 55.21% in Q4 2024, indicating better cost management [38]. - Efficiency ratio (Non-GAAP) improved to 54.50%, compared to 55.21% in the previous quarter [40]. - The annualized return on average assets increased to 1.52% in Q1 2025, up from 1.45% in Q4 2024, showing enhanced profitability [38]. Dividends and Shareholder Value - The board declared a quarterly cash dividend of $0.31 per common share, paid on April 1, 2025, with approximately 741,000 shares remaining eligible for repurchase under the current buy-back plan [19]. - Book value per share increased to $33.10 from $29.76 year-over-year [32]. - Book value per share rose to $33.10 in Q1 2025 from $31.96 in Q4 2024, an increase of 3.56% [37]. - Book value per share (GAAP) rose to $33.10, compared to $31.96 in the previous quarter, indicating an increase in shareholder value [44]. Workforce - Full-time equivalent employees increased to 1,089, up from 1,080 in the previous quarter, indicating growth in workforce [39].