Stock Yards Bancorp(US:SYBT)2025-11-05 17:06Financial Performance - Net income for the three months ended September 30, 2025, was $36.2 million, a 23% increase from $29.4 million in the same period of 2024[186] - Diluted earnings per share for the three months ended September 30, 2025, was $1.23, a 23% increase from $1.00 in the same period of 2024[186] - Net income for the nine months ended September 30, 2025, was $103.5 million, resulting in diluted EPS of $3.51, up from $82.8 million and $2.82 EPS for the same period in 2024[191] - Bancorp's total revenue for the nine months ended September 30, 2025, was $293.1 million, up from $259.1 million in the prior year, representing a growth of 13.1%[348] Loan Growth - Total loans increased by $651 million, or 10%, compared to September 30, 2024, with significant growth in the commercial real estate segment[186] - Total loans increased by $409 million, or 6%, from December 31, 2024, with significant growth in commercial real estate and residential real estate[285] - The average total loans for the three months ended September 30, 2025, were $6.87 billion, compared to $6.17 billion for the same period in 2024, reflecting significant loan growth[232] - Loans increased to $6,873,559 thousand in Q3 2025, up from $6,174,309 thousand in Q3 2024, marking a rise of 11.3%[219] Deposit Growth - Deposit balances rose by $918 million, or 14%, compared to September 30, 2024, primarily due to growth in time deposits[186] - Total deposits increased by $478 million, or 7%, from December 31, 2024, to September 30, 2025[310] - Core deposits totaled $6.56 billion, representing 86% of total deposits as of September 30, 2025, compared to $6.14 billion at December 31, 2024[325] Interest Income and Expenses - Net interest income (FTE) for the three months ended September 30, 2025, totaled $77.1 million, representing a 19% increase from the previous year[186] - Net interest income (FTE) for the nine months ended September 30, 2025, totaled $221.3 million, an increase of $34 million, or 18%, from the prior year[191] - Total interest income (FTE) increased by $14.5 million, or 14%, to $120.3 million for the three months ended September 30, 2025, compared to the same period in 2024[205] - Total interest income (FTE) increased by $43.8 million, or 14%, to $347 million for the nine months ended September 30, 2025[213] Non-Interest Income and Expenses - Non-interest income decreased by $321,000, or 1%, for the three months ended September 30, 2025, attributed mainly to declines in WM&T revenue[190] - Non-interest income increased by $97,000, or less than 1%, for the nine months ended September 30, 2025, compared to the same period in 2024[195] - Non-interest expenses increased by $5.4 million, or 11%, for the three months ended September 30, 2025, driven by higher compensation expenses[190] - Bancorp's total non-interest expenses for the nine months ended September 30, 2025, were $157.6 million, compared to $146.5 million for the same period in 2024, reflecting an increase of 7.5%[348] Efficiency and Capital Ratios - Bancorp's efficiency ratio (FTE) improved to 52.99% for the three months ended September 30, 2025, compared to 53.92% in the same period of 2024[190] - Bancorp's efficiency ratio (FTE) improved to 53.75% for the nine months ended September 30, 2025, compared to 56.56% for the same period in 2024[195] - As of September 30, 2025, Bancorp maintained a "well-capitalized" status, with total stockholders' equity to total assets at 11.19%[190] - Bancorp's TCE ratio improved to 9.16% at September 30, 2025, up from 8.44% at December 31, 2024, with tangible book value per share increasing to $28.30 from $24.82[339] Asset Quality - The allowance for credit losses on loans was $92,859 thousand as of September 30, 2025, compared to $84,260 thousand a year earlier, reflecting a 10.5% increase[219] - Non-performing loans decreased to $18.66 million (0.27% of total loans) from $22.21 million (0.34% of total loans) between December 31, 2024, and September 30, 2025[293] - The ACL for loans to total non-performing loans ratio improved to 494% as of September 30, 2025, compared to 391% at December 31, 2024[293] Market and Investment Performance - Assets Under Management (AUM) reached $7.48 billion as of September 30, 2025, an increase from $7.32 billion at the same date in 2024, attributed to market appreciation and positive net new business[245] - Approximately 80% of AUM were actively managed as of September 30, 2025, compared to 79% as of December 31, 2024[249] - Managed assets composition included approximately 66% in equities and 34% in fixed income securities as of September 30, 2025, consistent with previous periods[251] Miscellaneous - The share repurchase program authorized the repurchase of up to 1 million shares, approximately 4% of total common shares outstanding, set to expire in two years[340] - Bancorp implemented a new deposit product, ICS, aimed at larger depositors requiring collateralization, enhancing liquidity management[312]