Exhibit 99.1
S.Y. Bancorp Announces Higher Earnings In 2007, Marking Twenty Consecutive Years of Earnings Growth
LOUISVILLE, Ky.--(BUSINESS WIRE)--S.Y. Bancorp, Inc. (NASDAQ:SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville metropolitan area, Indianapolis and Cincinnati, today reported record earnings for 2007. This achievement, driven in part by continued loan growth, was particularly significant in light of ongoing margin pressure in 2007 and deteriorating economic conditions throughout the year, especially in the fourth quarter, which have had a significant impact on the financial sector's credit quality. A summary of results for the fourth quarter and year-to-date period follows:
Quarter ended December 31, | | | 2007 | | | | 2006 | | | Change |
| Net income | | $ | 6,164,000 | | | $ | 6,287,000 | | | -2 | % |
| Net income per share, diluted | | $ | 0.44 | | | $ | 0.43 | | | 2 | % |
| Return on average equity | | | 18.07 | % | | | 18.24 | % | | |
| Return on average assets | | | 1.70 | % | | | 1.81 | % | | |
| |
Year ended December 31, | | | 2007 | | | | 2006 | | | Change |
| Net income | | $ | 24,052,000 | | | $ | 22,896,000 | | | 5 | % |
| Net income per share, diluted | | $ | 1.67 | | | $ | 1.55 | | | 8 | % |
| Return on average equity | | | 17.26 | % | | | 17.35 | % | | |
| Return on average assets | | | 1.70 | % | | | 1.69 | % | | |
Commenting on the Company's progress, David Heintzman, Chairman and Chief Executive Officer, said, "Despite an increasingly difficult operating environment in 2007, evident particularly in the second half of the year, we are pleased to report our twentieth consecutive year of record earnings. These earnings again translated into strong returns for the Company and its stockholders, as return on equity remained at high levels, which we believe ensures a continued place for S.Y. Bancorp among the best-performing banks in the country.
"Loan growth, a key driver for higher earnings, has become more challenging in the current environment, hindered by both economic pressures and intense competition," Heintzman added. "Yet during 2007, our loan portfolio increased 5%, capped by a particularly strong fourth quarter performance – a 4% sequential increase from the third quarter – that pushed our total loan portfolio to more than $1.2 billion for the first time. This growth helped offset to some extent the increasing margin pressures we have experienced and the impact of a higher provision for loan losses during the year. During 2007, we raised our loan loss provision $1,425,000, including $735,000 in the fourth quarter, to address the increasing risk in our portfolio related to prolonged economic weakness and the greater stress this places on borrowers."
Heintzman pointed out several other factors affecting the Company's growth and profitability in 2007, including continued attractive revenue growth from investment management and trust operations, the Company's largest source of non-interest income, which advanced 11% in 2007 as this department expanded its client base and as assets under management rose to $1.67 billion – up 5% during the year. Furthermore, S.Y. Bancorp has accelerated its expansion activities with the addition of a second office in Indianapolis, which has been a key source of loan growth for the Company since S.Y. Bancorp entered that market. During 2007, the Company also expanded into the Cincinnati market with its first office there. Concurrent with these expansion activities, S.Y. Bancorp absorbed additional staff and occupancy costs in 2007. In the fourth quarter of 2007, the Company also reduced its tax expense for a correction to deferred tax liabilities and adjusted other tax-related balances to reflect actual circumstances of its most recently filed tax returns.
Capital management strategies remained a focal point for the Company in 2007 as S.Y. Bancorp accelerated its stock repurchase activities and raised its dividend payout. During 2007, the Company repurchased a total of 886,600 shares of common stock, or 6% of its outstanding shares as of January 1, 2007, at an average price of $25.20 per share. These share repurchases helped leverage the Company's earnings growth on a per share basis, adding approximately $0.04 per share for the year, not considering the opportunity costs on funds used for the buyback. S.Y. Bancorp also increased its cash payout to stockholders during 2007, raising the quarterly dividend rate 7% to $0.16 per share, or an annual yield of 2.7% at year's end.
Concluding, Heintzman added, "As we begin 2008, we remain sensitive to general market conditions, particularly as they could impact our loan portfolio. Although our company has continued to perform well in the face of this more challenging environment and has responded aggressively to work through loan problems, we don't think we can remain immune from challenges that affect the economy as a whole. Also, the marketplace continues to be intensely competitive, and interest rate levels – recently lower due to rate reductions by the Federal Reserve Board – are expected to decline further in 2008. Together, we expect these forces to create challenging headwinds in 2008 in terms of loan growth, credit quality and margin erosion, which will place increased pressure on earnings next year.
"Still, we enter the new year with a strong position in our home market of Louisville and with optimism for our ability to expand in new markets," Heintzman continued. "We continue to see very solid growth in Indianapolis, and our more recent entry into Cincinnati will gain critical mass rapidly. With 20 consecutive years of earnings growth, across both up and down markets, we have demonstrated our ability to execute in challenging times and weather the cycles that are inevitable in banking. Therefore, while the near term likely will show continued credit quality and margin pressures, we are proud of this record for strong performance and remain enthusiastic about the strategies we have in place to drive growth over the longer term. Moreover, the stresses that now affect the banking industry may create additional opportunities to gain new business and continue to attract top lenders to our team."
S.Y. Bancorp's total assets increased 4% to $1.482 billion at December 31, 2007, from $1.426 billion at December 31, 2006. The Company's loan portfolio increased 5% to $1.202 billion at year-end 2007 from $1.149 billion a year earlier, reflecting steady loan growth throughout the year. Deposits totaled $1.107 billion at December 31, 2007, up slightly from $1.103 billion at year-end 2006.
Net interest income, the Company's largest source of revenue, declined $613,000 or 4% in the fourth quarter of 2007 compared with the year-earlier period. For the year, net interest income declined $109,000 – less than 1% versus 2006. These declines in net interest income reflected continued, but modest, growth in the Company's loan portfolio, which was more than offset by ongoing net interest margin compression. Net interest margin for the fourth quarter, at 3.99%, declined 19 basis points from 4.18% in the third quarter of 2007 and was 37 basis points lower than the 4.36% reported in the year-earlier period. Net interest margin for the year was 4.16%, or 20 basis points below that for 2006. This margin pressure, which began in late 2006, reflects the continuation of a relatively flat yield curve, the impact of recent rate reductions by the Federal Reserve Board, and heightened competitive conditions for loans and deposits. The Company expects that pressure on net interest margins will continue in the near term as the Federal Reserve is expected to reduce short-term rates further; these cuts typically reduce interest income more swiftly than interest expense.
Non-performing loans for the fourth quarter declined 21% on a linked-quarter basis to $3,370,000 from $4,244,000 in the third quarter of 2007, and were 50% below non-performing loans of $6,753,000 in the fourth quarter of 2006. The ratio of non-performing loans to total loans was 0.28% in the fourth quarter of 2007, down from 0.37% in the third quarter of 2007 and 0.59% in the fourth quarter last year. Net charge-offs totaled 0.20% of average loans in the fourth quarter of 2007, up slightly from 0.15% in the third quarter of 2007 and 0.18% in year-earlier quarter. However, management believes these metrics do not yet reflect the effect of weakening macroeconomic trends, particularly slumping housing market conditions and widespread signs of deteriorating credit quality. Consequently, the Company increased its provision for loan losses to $1,435,000 in the fourth quarter from $700,000 in the fourth quarter of 2006. For 2007, the loan loss provision totaled $3,525,000 versus $2,100,000 in the year-earlier period. The Company's allowance for loan losses was 1.12% of total loans at December 31, 2007, compared with 1.08% of total loans at September 30, 2007, and 1.06% at December 31, 2006. The Company does not originate or purchase sub-prime loans for its portfolio.
Non-interest income increased $269,000 or 4% in the fourth quarter compared with the same quarter last year, primarily due to higher bankcard transaction revenue, up $98,000 or 18% for the quarter; increased investment management and trust income, which rose $94,000 or 3% during the quarter; and service charges on deposit accounts, which increased $81,000 or 4%. Higher non-interest income from these areas helped offset lower gains on sales of mortgage loans in the fourth quarter. Non-interest income increased $1,564,000 or 6% in 2007 compared with 2006, again driven primarily by an increase in investment management and trust income of $1,254,000 or 11%.
Non-interest expense increased $505,000 or 4% in the fourth quarter of 2007 versus the same period last year. The increase for the quarter primarily reflected an increase of $292,000 or 4% in salaries and employee benefits related in part to staff additions during 2007 at a second banking location in the Indianapolis market and a new banking office in the Cincinnati market, along with an associated increase of $113,000 in net occupancy expense. Non-interest expense declined $79,000 or less than 1% in 2007 compared with 2006, as increases in salaries and employee benefits of $596,000 or 2%, net occupancy expense of $242,000 or 7%, and data processing expense of $209,000 or 5% were more than offset by the non-recurring impact of an $879,000 write-off of unamortized issuance costs on trust preferred securities in 2006 and a reduction of $143,000 or 11% in state bank taxes. Also, as a result of revised standard costs applied to the loan production process during 2007 and an increase in loan volume, the Company's deferred salaries associated with loan originations in the fourth quarter of 2007 and for the full year exceeded comparable amounts in 2006.
The Company's fourth quarter efficiency ratio was 57.03% compared with 53.95% in the third quarter of 2007 and 53.73% in the fourth quarter of 2006. The Company's efficiency ratio for 2007 was 54.68% versus 55.76% for 2006.
In the fourth quarter of 2007, the Company's income tax expense declined $1,461,000 or 53% to $1,298,000 from $2,759,000 in the year-earlier quarter, partly because of lower pre-tax income for the period. The reduced level of income tax expense also reflected a correction to deferred tax liabilities totaling approximately $648,000 and adjustments to other tax-related balances to reflect actual circumstances of the Company's most recently filed tax returns and current tax statutes. For the year, income tax expense declined $1,047,000 or 10% to $9,915,000 from $10,962,000 in 2006, reflecting the aforementioned correction and adjustments.
In November, S.Y. Bancorp's Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The latest dividend was distributed on January 4, 2008, to stockholders of record as of December 14, 2007.
Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.482 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.
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. |
Summary Unaudited Financial Information |
(in thousands except per share amounts) |
| | |
| | |
| | Fourth Quarter Ended | | Year Ended |
| | December 31, | | December 31, |
| | | 2007 | | | 2006 | | | 2007 | | | 2006 |
| Interest income | | $ | 22,833 | | $ | 22,727 | | $ | 91,316 | | $ | 86,327 |
| Interest expense | | | 9,590 | | | 8,871 | | | 37,539 | | | 32,441 |
| Net interest income | | | 13,243 | | | 13,856 | | | 53,777 | | | 53,886 |
| Provision for loan losses | | | 1,435 | | | 700 | | | 3,525 | | | 2,100 |
| Net interest income after provision for loan losses | | | 11,808 | | | 13,156 | | | 50,252 | | | 51,786 |
| Non-interest income | | | 7,800 | | | 7,531 | | | 30,246 | | | 28,682 |
| Non-interest expense | | | 12,146 | | | 11,641 | | | 46,531 | | | 46,610 |
| Net income before income taxes | | | 7,462 | | | 9,046 | | | 33,967 | | | 33,858 |
| Provision for income taxes | | | 1,298 | | | 2,759 | | | 9,915 | | | 10,962 |
| Net income | | $ | 6,164 | | $ | 6,287 | | $ | 24,052 | | $ | 22,896 |
| Net income per share | | | | | | | | |
| Basic | | $ | 0.45 | | $ | 0.44 | | $ | 1.70 | | $ | 1.58 |
| Diluted | | $ | 0.44 | | $ | 0.43 | | $ | 1.67 | | $ | 1.55 |
| Weighted average shares outstanding | | | | | | | | |
| Basic | | | 13,779 | | | 14,436 | | | 14,168 | | | 14,462 |
| Diluted | | | 13,974 | | | 14,728 | | | 14,389 | | | 14,741 |
| | |
| | | | | | Dec. 31, | | Dec. 31, |
| | | | | | | 2007 | | | 2006 |
| Total assets | | | | | | $ | 1,482,219 | | $ | 1,426,321 |
| Total loans | | | | | | | 1,201,938 | | | 1,148,954 |
| Non-interest bearing deposits | | | | | | | 170,477 | | | 179,657 |
| Interest-bearing deposits | | | | | | | 936,230 | | | 923,585 |
| Total deposits | | | | | | | 1,106,707 | | | 1,103,242 |
| Stockholders' equity | | | | | | | 133,024 | | | 137,444 |
| Book value per share | | | | | | | 9.78 | | | 9.54 |
| | | | | | | | | | |
Unaudited supplemental financial information for the fourth quarter and year ended December 31, 2007 and 2006, appears on the following pages. |
| S. Y. Bancorp, Inc. Financial Information |
| Fourth Quarter 2007 Earnings Release |
| (all figures other than per share amounts and number of employees are expressed in thousands unless otherwise noted) |
| | | | | | | | | | |
| | | | Fourth Quarter Ended | | Twelve Months Ended |
| | | | December 31, | | December 31, |
| | | | 2007 | | 2006 | | 2007 | | 2006 |
| Income Statement Data | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | | | | $ 13,499 | | $ 14,135 | | $ 54,854 | | $ 54,912 |
| Net interest income | | | | $ 13,243 | | $ 13,856 | | $ 53,777 | | $ 53,886 |
| Provision for loan losses | | | | 1,435 | | 700 | | 3,525 | | 2,100 |
| Net interest income after provision for loan losses | | | 11,808 | | 13,156 | | 50,252 | | 51,786 |
| Gain on the sale of securities | | | | - | | - | | - | | - |
| Investment management and trust income | | | | 3,126 | | 3,032 | | 12,886 | | 11,632 |
| Service charges on deposit accounts | | | | 2,276 | | 2,195 | | 8,758 | | 8,791 |
| Bankcard transaction revenue | | | | 631 | | 533 | | 2,359 | | 2,028 |
| Gains on sales of mortgage loans held for sale | | | 290 | | 337 | | 1,164 | | 1,270 |
| Brokerage commissions and fees | | | | 486 | | 414 | | 1,929 | | 1,973 |
| Bank owned life insurance income | | | | 252 | | 240 | | 985 | | 914 |
| Other non-interest income | | | | 739 | | 780 | | 2,165 | | 2,074 |
| Total non-interest income | | | | 7,800 | | 7,531 | | 30,246 | | 28,682 |
| Salaries and employee benefits expense | | | | 6,898 | | 6,606 | | 27,002 | | 26,406 |
| Net occupancy expense | | | | 985 | | 872 | | 3,722 | | 3,480 |
| Data processing expense | | | | 998 | | 1,015 | | 4,043 | | 3,834 |
| Furniture and equipment expense | | | | 275 | | 264 | | 1,148 | | 1,152 |
| Amortization and writeoff of issuance costs of trust preferred | | | | | | | | | |
| | | - | | - | | - | | 897 |
| State bank taxes | | | | 340 | | 327 | | 1,155 | | 1,298 |
| Other non-interest expenses | | | | 2,650 | | 2,557 | | 9,461 | | 9,543 |
| Total non-interest expense | | | | 12,146 | | 11,641 | | 46,531 | | 46,610 |
| Net income before income tax expense | | | | 7,462 | | 9,046 | | 33,967 | | 33,858 |
| Income tax expense | | | | 1,298 | | 2,759 | | 9,915 | | 10,962 |
| Net income | | | | $ 6,164 | | $ 6,287 | | $ 24,052 | | $ 22,896 |
| | | | | | | | | | |
| Weighted average shares - basic | | | | 13,779 | | 14,436 | | 14,168 | | 14,462 |
| Weighted average shares - diluted | | | | 13,974 | | 14,728 | | 14,389 | | 14,741 |
| | | | | | | | | | |
| Basic earnings per share | | | | $ 0.45 | | $ 0.44 | | $ 1.70 | | $ 1.58 |
| Diluted earnings per share | | | | 0.44 | | 0.43 | | 1.67 | | 1.55 |
| Cash dividend declared per share | | | | 0.16 | | 0.15 | | 0.63 | | 0.57 |
| | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | |
| Total loans | | | | | | | | $ 1,201,938 | | $1,148,954 |
| Allowance for loan losses | | | | | | | | 13,450 | | 12,203 |
| Total assets | | | | | | | | 1,482,219 | | 1,426,321 |
| Non-interest bearing deposits | | | | | | | | 170,477 | | 179,657 |
| Interest bearing deposits | | | | | | | | 936,230 | | 923,585 |
| Federal home loan bank advances | | | | | | | | 90,000 | | 60,000 |
| Subordinated debentures | | | | | | | | 90 | | 120 |
| Stockholders' equity | | | | | | | | 133,024 | | 137,444 |
| Total shares outstanding | | | | | | | | 13,600 | | 14,400 |
| Book value per share | | | | | | | | 9.78 | | 9.54 |
| Market value per share | | | | | | | | 23.94 | | 28.00 |
| S. Y. Bancorp, Inc. Financial Information |
| Fourth Quarter 2007 Earnings Release |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | Fourth Quarter Ended | | Twelve Months Ended |
| | | | December 31, | | December 31, |
| | | | 2007 | | 2006 | | 2007 | | 2006 |
| Average Balance Sheet Data | | | | | | | | | | |
| Average loans | | | | $ 1,178,068 | | $ 1,127,456 | | $ 1,159,101 | | $1,093,844 |
| Average assets | | | | 1,436,666 | | 1,381,770 | | 1,413,614 | | 1,353,651 |
| Average earning assets | | | | 1,341,624 | | 1,284,983 | | 1,317,963 | | 1,258,591 |
| Average deposits | | | | 1,089,400 | | 1,085,060 | | 1,081,483 | | 1,061,481 |
| Average long-term debt | | | | 76,394 | | 41,536 | | 65,792 | | 44,924 |
| Average interest bearing liabilities | | | | 1,089,233 | | 1,040,321 | | 1,064,754 | | 1,018,620 |
| Average stockholders' equity | | | | 135,370 | | 136,760 | | 139,357 | | 131,971 |
| | | | | | | | | | |
| Performance Ratios | | | | | | | | | | |
| Annualized return on average assets | | | | 1.70% | | 1.81% | | 1.70% | | 1.69% |
| Annualized return on average equity | | | | 18.07% | | 18.24% | | 17.26% | | 17.35% |
| Net interest margin, fully tax equivalent | | | | 3.99% | | 4.36% | | 4.16% | | 4.36% |
Non-interest income to total revenue, fully tax equivalent | | | | | | | | | | |
| | | 36.62% | | 34.76% | | 35.54% | | 34.31% |
| Efficiency ratio | | | | 57.03% | | 53.73% | | 54.68% | | 55.76% |
| | | | | | | | | | |
| Capital Ratios | | | | | | | | | | |
| Average stockholders' equity to average assets | | | 9.42% | | 9.90% | | 9.86% | | 9.75% |
| Tier 1 risk-based capital | | | | | | | | 9.82% | | 11.69% |
| Total risk-based capital | | | | | | | | 10.82% | | 12.73% |
| Leverage | | | | | | | | 9.21% | | 10.16% |
| | | | | | | | | | |
| Loans by Type | | | | | | | | | | |
| Commercial and industrial | | | | | | | | $ 309,506 | | $ 274,599 |
| Construction and development | | | | | | | | 144,668 | | 133,361 |
| Real estate mortgage - commercial investment | | | | | | | 240,610 | | 242,742 |
| Real estate mortgage - owner occupied commercial | | | | | | | 200,122 | | 178,439 |
| Real estate mortgage - 1-4 family residential | | | | | | | 145,362 | | 150,285 |
| Home equity | | | | | | | | 136,962 | | 136,893 |
| Consumer | | | | | | | | 24,708 | | 32,635 |
| | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | | | | | 1.12% | | 1.06% |
| Allowance for loan losses to average loans | | | | | | | | 1.16% | | 1.12% |
| Allowance for loan losses to non-performing loans | | | | | | | 399.11% | | 180.70% |
| Nonaccrual loans | | | | | | | | $ 2,964 | | $ 5,900 |
| Restructured loans | | | | | | | | - | | - |
| Loans - 90 days past due & still accruing | | | | | | | | 406 | | 853 |
| Total non-performing loans | | | | | | | | 3,370 | | 6,753 |
| OREO and repossessed assets | | | | | | | | 3,831 | | 2,466 |
| Total non-performing assets | | | | | | | | 7,201 | | 9,219 |
| Non-performing loans to total loans | | | | | | | | 0.28% | | 0.59% |
| Non-performing assets to total assets | | | | | | | | 0.49% | | 0.65% |
| Net charge-offs to average loans (2) | | | | | | | | 0.20% | | 0.18% |
| Net charge-offs | | | | $ 535 | | $ 939 | | $ 2,278 | | $ 1,932 |
| | | | | | | | | | |
| Other Information | | | | | | | | | | |
| Total assets under management (in millions) | | | | | | | | $ 1,669 | | $ 1,582 |
| Full-time equivalent employees | | | | | | | | 446 | | 437 |
| S. Y. Bancorp, Inc. Financial Information |
| Fourth Quarter 2007 Earnings Release |
| | | | | | | | | | |
| | | | | | | | | | |
| | Five Quarter Comparison |
| | 12/31/07 | | 9/30/07 | | 6/30/07 | | 3/31/07 | | 12/31/06 |
| Income Statement Data | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | $ 13,499 | | $ 13,802 | | $ 13,856 | | $ 13,697 | | $ 14,135 |
| Net interest income | | $ 13,243 | | $ 13,541 | | $ 13,579 | | $ 13,414 | | $ 13,856 |
| Provision for loan losses | | 1,435 | | 850 | | 460 | | 780 | | 700 |
| Net interest income after provision for loan losses | 11,808 | | 12,691 | | 13,119 | | 12,634 | | 13,156 |
| Gain on the sale of securities | | - | | - | | - | | - | | - |
| Investment management and trust income | | 3,126 | | 3,227 | | 3,336 | | 3,197 | | 3,032 |
| Service charges on deposit accounts | | 2,276 | | 2,260 | | 2,204 | | 2,018 | | 2,195 |
| Bankcard transaction revenue | | 631 | | 596 | | 590 | | 542 | | 533 |
| Gains on sales of mortgage loans held for sale | 290 | | 227 | | 391 | | 256 | | 337 |
| Brokerage commissions and fees | | 486 | | 498 | | 452 | | 493 | | 414 |
| Bank owned life insurance income | | 252 | | 250 | | 247 | | 236 | | 240 |
| Other non-interest income | | 739 | | 508 | | 504 | | 414 | | 780 |
| Total non-interest income | | 7,800 | | 7,566 | | 7,724 | | 7,156 | | 7,531 |
| Salaries and employee benefits expense | | 6,898 | | 6,865 | | 6,632 | | 6,607 | | 6,606 |
| Net occupancy expense | | 985 | | 917 | | 930 | | 890 | | 872 |
| Data processing expense | | 998 | | 979 | | 1,051 | | 1,015 | | 1,015 |
| Furniture and equipment expense | | 275 | | 291 | | 290 | | 292 | | 264 |
| State bank taxes | | 340 | | 326 | | 311 | | 178 | | 327 |
| Other non-interest expenses | | 2,650 | | 2,149 | | 2,270 | | 2,392 | | 2,557 |
| Total non-interest expense | | 12,146 | | 11,527 | | 11,484 | | 11,374 | | 11,641 |
| Net income before income tax expense | | 7,462 | | 8,730 | | 9,359 | | 8,416 | | 9,046 |
| Income tax expense | | 1,298 | | 2,843 | | 3,062 | | 2,712 | | 2,759 |
| Net income | | $ 6,164 | | $ 5,887 | | $ 6,297 | | $ 5,704 | | $ 6,287 |
| | | | | | | | | | |
| Weighted average shares - basic | | 13,779 | | 14,185 | | 14,325 | | 14,389 | | 14,436 |
| Weighted average shares - diluted | | 13,974 | | 14,400 | | 14,536 | | 14,642 | | 14,728 |
| | | | | | | | | | |
| Basic earnings per share | | $ 0.45 | | $ 0.42 | | $ 0.44 | | $ 0.40 | | $ 0.44 |
| Diluted earnings per share | | 0.44 | | 0.41 | | 0.43 | | 0.39 | | 0.43 |
| Cash dividend declared per share | | 0.16 | | 0.16 | | 0.16 | | 0.15 | | 0.15 |
| | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | |
| Total loans | | $ 1,201,938 | | $ 1,156,899 | | $ 1,162,906 | | $ 1,149,940 | | $1,148,954 |
| Allowance for loan losses | | 13,450 | | 12,550 | | 12,065 | | 12,183 | | 12,203 |
| Total assets | | 1,482,219 | | 1,410,453 | | 1,425,299 | | 1,414,364 | | 1,426,321 |
| Non-interest bearing deposits | | 170,477 | | 167,614 | | 184,000 | | 174,383 | | 179,657 |
| Interest bearing deposits | | 936,230 | | 899,815 | | 901,316 | | 935,395 | | 923,585 |
| Federal home loan bank advances | | 90,000 | | 70,000 | | 70,000 | | 50,000 | | 60,000 |
| Subordinated debentures | | 90 | | 90 | | 90 | | 90 | | 120 |
| Stockholders' equity | | 133,024 | | 138,623 | | 141,888 | | 140,176 | | 137,444 |
| Total shares outstanding | | 13,600 | | 14,005 | | 14,298 | | 14,373 | | 14,400 |
| Book value per share | | 9.78 | | 9.90 | | 9.92 | | 9.75 | | 9.54 |
| Market value per share | | 23.94 | | 27.04 | | 23.76 | | 24.86 | | 28.00 |
| S. Y. Bancorp, Inc. Financial Information |
| Fourth Quarter 2007 Earnings Release |
| | | | | | | | | | |
| | Five Quarter Comparison |
| | 12/31/07 | | 9/30/07 | | 6/30/07 | | 3/31/07 | | 12/31/06 |
| Average Balance Sheet Data | | | | | | | | | | |
| Average loans | | $ 1,178,068 | | $ 1,155,211 | | $ 1,160,064 | | $ 1,142,713 | | $1,127,456 |
| Average assets | | 1,436,666 | | 1,409,653 | | 1,401,020 | | 1,406,832 | | 1,381,770 |
| Average earning assets | | 1,341,624 | | 1,311,152 | | 1,304,508 | | 1,314,341 | | 1,284,983 |
| Average deposits | | 1,089,400 | | 1,063,718 | | 1,075,459 | | 1,097,640 | | 1,085,060 |
| Average long-term debt | | 76,394 | | 70,090 | | 60,420 | | 55,993 | | 41,356 |
| Average interest bearing liabilities | | 1,089,233 | | 1,057,138 | | 1,048,552 | | 1,063,900 | | 1,040,321 |
| Average stockholders' equity | | 135,370 | | 141,583 | | 141,133 | | 139,361 | | 136,760 |
| | | | | | | | | | |
| Performance Ratios | | | | | | | | | | |
| Annualized return on average assets | | 1.70% | | 1.66% | | 1.80% | | 1.64% | | 1.81% |
| Annualized return on average equity | | 18.07% | | 16.50% | | 17.90% | | 16.60% | | 18.24% |
| Net interest margin, fully tax equivalent | | 3.99% | | 4.18% | | 4.26% | | 4.23% | | 4.36% |
| Non-interest income to total revenue, fully | | | | | | | | | | |
| tax equivalent | | 36.62% | | 35.41% | | 35.79% | | 34.32% | | 34.76% |
| Efficiency ratio | | 57.03% | | 53.95% | | 53.22% | | 54.54% | | 53.73% |
| | | | | | | | | | |
| Capital Ratios | | | | | | | | | | |
| Average stockholders' equity to average assets | | 9.42% | | 10.04% | | 10.07% | | 9.91% | | 9.90% |
| Tier 1 risk-based capital | | 9.82% | | 10.47% | | 10.70% | | 10.89% | | 10.81% |
| Total risk-based capital | | 10.82% | | 11.42% | | 11.62% | | 11.84% | | 11.77% |
| Leverage | | 9.21% | | 9.81% | | 10.17% | | 9.97% | | 10.18% |
| | | | | | | | | | |
| Loans by Type | | | | | | | | | | |
| Commercial and industrial | | $ 309,506 | | $ 292,240 | | $ 298,006 | | $ 291,682 | | $ 274,599 |
| Construction and development | | 144,668 | | 137,659 | | 145,468 | | 136,843 | | 133,361 |
| Real estate mortgage - commercial investment | | 240,610 | | 236,847 | | 227,530 | | 237,759 | | 242,742 |
| Real estate mortgage - owner occupied commercial | | 200,122 | | 186,564 | | 183,199 | | 173,915 | | 178,439 |
| Real estate mortgage - 1-4 family residential | | 145,362 | | 142,757 | | 140,181 | | 143,085 | | 150,285 |
| Home equity | | 136,962 | | 136,064 | | 143,015 | | 136,115 | | 136,893 |
| Consumer | | 24,708 | | 24,768 | | 25,507 | | 30,541 | | 32,635 |
| | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | |
| Allowance for loan losses to total loans | | 1.12% | | 1.08% | | 1.04% | | 1.06% | | 1.06% |
| Allowance for loan losses to average loans | | 1.16% | | 1.09% | | 1.05% | | 1.07% | | 1.12% |
| Allowance for loan losses to non-performing loans | | 399.11% | | 295.71% | | 252.99% | | 237.16% | | 180.70% |
| Nonaccrual loans | | $ 2,964 | | $ 2,985 | | $ 4,055 | | $ 4,697 | | $ 5,900 |
| Restructured loans | | - | | - | | - | | - | | - |
| Loans - 90 days past due & still accruing | | 406 | | 1,259 | | 714 | | 440 | | 853 |
| Total non-performing loans | | 3,370 | | 4,244 | | 4,769 | | 5,137 | | 6,753 |
| OREO and repossessed assets | | 3,831 | | 3,436 | | 2,780 | | 2,666 | | 2,466 |
| Total non-performing assets | | 7,201 | | 7,680 | | 7,549 | | 7,803 | | 9,219 |
| Non-performing loans to total loans | | 0.28% | | 0.37% | | 0.41% | | 0.45% | | 0.59% |
| Non-performing assets to total assets | | 0.49% | | 0.54% | | 0.53% | | 0.55% | | 0.65% |
| Net charge-offs to average loans (2) | | 0.05% | | 0.05% | | 0.05% | | 0.07% | | 0.08% |
| Net charge-offs | | $ 535 | | $ 365 | | $ 578 | | $ 800 | | $ 939 |
| | | | | | | | | | |
| Other Information | | | | | | | | | | |
| Total assets under management (in millions) | | $ 1,669 | | $ 1,707 | | $ 1,669 | | $ 1,603 | | $ 1,582 |
| Full-time equivalent employees | | 446 | | 443 | | 445 | | 444 | | 437 |
| S. Y. Bancorp, Inc. Financial Information |
| Fourth Quarter 2007 Earnings Release |
| | | | | | | | | | |
| Five Year Summary of Selected Financial Data |
| As of or for the year ended December 31, |
| | 2007 | | 2006 | | 2005 | | 2004 | | 2003 |
| Interest income | | $ 91,316 | | $ 86,327 | | $ 72,343 | | $ 60,540 | | $ 60,120 |
| Interest expense | | 37,539 | | 32,441 | | 23,108 | | 16,319 | | 17,372 |
| Net interest income | | 53,777 | | 53,886 | | 49,235 | | 44,221 | | 42,748 |
| Investment management and trust income | | 12,886 | | 11,632 | | 10,813 | | 9,427 | | 8,301 |
| All other non-interest income | | 17,360 | | 17,050 | | 16,309 | | 15,249 | | 16,197 |
| Non-interest expenses | | 46,531 | | 46,610 | | 44,612 | | 39,093 | | 38,625 |
| Net income | | 24,052 | | 22,896 | | 21,644 | | 18,912 | | 17,709 |
| | | | | | | | | | |
| Earnings per share - basic | | $ 1.70 | | $ 1.58 | | $ 1.48 | | $ 1.31 | | $ 1.25 |
| Earnings per share - diluted | | 1.67 | | 1.55 | | 1.46 | | 1.27 | | 1.21 |
| Cash dividends per share | | 0.63 | | 0.57 | | 0.45 | | 0.37 | | 0.29 |
| | | | | | | | | | |
| Total loans at year end | | $ 1,201,938 | | $ 1,148,954 | | $ 1,053,871 | | $ 984,841 | | $ 886,153 |
| Total assets at year end | | 1,482,219 | | 1,426,321 | | 1,330,438 | | 1,212,015 | | 1,118,521 |
| Total deposits at year end | | 1,106,707 | | 1,103,242 | | 1,031,357 | | 950,083 | | 881,866 |
| | | | | | | | | | |
| Return on average assets | | 1.70% | | 1.69% | | 1.70% | | 1.65% | | 1.63% |
| Return on average equity | | 17.26% | | 17.35% | | 17.80% | | 17.28% | | 18.88% |
| | | | | | | | | | |
| Tier 1 risk-based capital | | 9.82% | | 11.69% | | 13.44% | | 13.64% | | 13.46% |
| Total risk-based capital | | 10.82% | | 12.73% | | 14.56% | | 14.91% | | 14.74% |
| Leverage ratio | | 9.21% | | 10.16% | | 11.15% | | 11.34% | | 10.61% |
| | | | | | | | | | |
| (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) - Amounts not annualized |
| | | | | | | | | | |
| Certain prior-period amounts have been reclassified to conform with current presentation. | | |
CONTACT:
S.Y. Bancorp, Inc.
Nancy B. Davis, 502-625-9176
Executive Vice President, Treasurer and
Chief Financial Officer
