Exhibit 99.1
S.Y. Bancorp Announces Second Quarter Earnings
LOUISVILLE, Ky.--(BUSINESS WIRE)--July 22, 2009--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 financial results for the second quarter and first half of 2009. The Company's second quarter earnings reflected ongoing strong fundamentals in the second quarter of 2009, as S.Y. Bancorp continued to post solid loan growth despite economic uncertainties that have made borrowers hesitant. The Company's loan portfolio increased 6% year over year as of June 30, 2009, closely tracking the 7% year-over-year growth at the end of the first quarter of 2009. Similarly, deposits also grew 6% year over year as of June 30, 2009. Second quarter 2009 earnings declined compared with the year-earlier period due primarily to three factors. First, S.Y. Bancorp incurred higher FDIC premiums, which reduced earnings for the second quarter and first six months of 2009 by $0.05 per diluted share and $0.07 per diluted share, respectively, due in large part to a special FDIC assessment in the second quarter of 2009. Second, net interest income now reflects additional interest expense related to the Company's trust preferred securities, which were issued in December 2008. Lastly, the Company increased its provision for loan losses as S.Y. Bancorp continued to respond aggressively to ongoing recessionary pressures that have resulted in a higher level of non-performing loans over the last year and some slippage in other credit quality metrics. A summary of results for the second quarter and six-month period follows:
| | Quarter Ended June 30, | | | 2009 | | | | | 2008 | | | | Change |
| Net income | | $ | 4,288,000 | | | | $ | 6,129,000 | | | | -30 | % |
| Net income per share, diluted | | $ | 0.31 | | | | $ | 0.45 | | | | -31 | % |
| Return on average equity | | | 11.53 | % | | | | 18.30 | % | | | |
| Return on average assets | | | 1.01 | % | | | | 1.60 | % | | | |
| | | | | | | | | | | |
| Six Months Ended June 30, | | | 2009 | | | | | 2008 | | | | Change |
| Net income | | $ | 9,025,000 | | | | $ | 11,167,000 | | | | -19 | % |
| Net income per share, diluted | | $ | 0.66 | | | | $ | 0.82 | | | | -20 | % |
| Return on average equity | | | 12.33 | % | | | | 16.85 | % | | | |
| Return on average assets | | | 1.10 | % | | | | 1.49 | % | | | |
Commenting on the Company's results, David Heintzman, Chairman and Chief Executive Officer, said, "Earnings for the second quarter declined against the backdrop of a severe and protracted recession. Facing these challenges, we have continued to approach credit quality with a sense of urgency and with a characteristic conservative stance that has underscored our approach to lending and relationship management all along. This discipline has enabled us to maintain a relatively low level of problem loans and charge-offs, even now as we compare against the minimal amounts we have reported over the past few years. We continue to fare better than many banks in terms of credit costs, although we believe no bank can remain immune from the immense pressures of this economic downturn."
In the second quarter of 2009, the Company's capital levels remained in excess of what is required to be considered "well-capitalized" under regulatory standards – the highest capital rating a financial institution can earn. The Company's Tier 1 leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio at June 30, 2009, were 10.49%, 11.73% and 13.52%, respectively, all exceeding the required minimums of 5%, 6% and 10%, respectively, to be deemed a well-capitalized institution. The ratio of tangible common equity to total tangible assets (both non-GAAP measures – see reconciliation to closest GAAP measures later in this release) stood at 8.46% of total assets as of June 30, 2009, versus 8.39% at June 30, 2008, and 8.93% at March 31, 2009. The Company provides this ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy, as it reflects the level of capital available to withstand unexpected market conditions.
Heintzman noted that the Company's second quarter loan growth reflected ongoing stability in its home market of Louisville as well as the continued contribution from newer markets in Indianapolis and Cincinnati. Regarding Cincinnati, he pointed out that the Company recently acquired property for a second location there, with the office projected to open next year. "We are pleased with the steady growth we have seen in our newer locations in Indianapolis and Cincinnati, which reflects the attractive potential of these markets for a customer-service-oriented community bank like ours," he said. "These new markets have represented approximately 38% of our total loan growth over the past year." Still, Heintzman noted that the Company's newer locations in Indianapolis and Cincinnati continue to ramp up to profitability and, thus, these investments in future growth create some drag on current earnings.
Concluding, Heintzman said, "Considering the current economy, we view the state of our business from two vantage points. The first is credit quality, and we know this eroded somewhat in the second quarter. Because of our conservative credit culture and the resilient nature of our home market in Louisville, which so far has escaped many of the problems that other overheated markets around the country have experienced, we have been able to avoid many of the devastating problems that have affected other banks during this economic downturn. However, with the recession continuing, a risk continues that real estate values have yet to stabilize, business profits will continue to be stressed, and the financial strength of our borrowers and guarantors, which traditionally has represented an additional source of security for many loans, may continue to be negatively affected by the financial markets. As these conditions continue, it is prudent to anticipate that credit quality will remain under pressure and, thus, we expect our provision for loan losses will remain at elevated levels over at least the near term.
"Second, we look at our business from a fundamental standpoint, and with respect to continued growth in the future," Heintzman continued. "We are pleased with the progress being made in this regard, with continued growth in Louisville, Indianapolis and Cincinnati, and we believe this success underscores both immediate potential of the markets we serve and the demonstrated validity of the business model we use to expand to new markets. This long-term view, we believe, is one of the reasons why S.Y. Bancorp has earned a reputation as one of the best-performing community banks in the nation, as seen again last month when US Banker magazine ranked the Company nineteenth among the country's top 200 community banks and thrifts with total assets of less than $2 billion."
S.Y. Bancorp's total assets increased 9% to $1.747 billion at June 30, 2009, from $1.596 billion at June 30, 2008, and were up 7% from $1.631 billion at March 31, 2009. The change in total assets was driven by strong growth in the Company's loan portfolio, which rose 6% to $1.399 billion at June 30, 2009, from $1.321 billion at June 30, 2008, and 2% versus $1.376 billion at March 31, 2009. Deposits increased 6% to $1.337 billion at June 30, 2009, compared with $1.263 billion a year ago, and were up 4% from $1.286 billion at the end of the first quarter of 2009, with increases largely reflecting both higher time and demand deposits.
Despite ongoing loan growth, net interest income – the Company's largest source of revenue – declined $98,000 or less than 1% in the second quarter of 2009 compared with the year-earlier period due to a lower net interest margin. In the second quarter of 2009, net interest margin fell 43 basis points year over year to 3.66% from 4.09% in the second quarter of 2008, and was down 14 basis points from the first quarter of 2009. This margin erosion reflected the declining interest rate environment of the past year, higher interest expense in the current year related to the Company's December 2008 issuance of the trust preferred securities, and the impact of maintaining a significantly higher liquidity position in 2009, which management considers prudent to strengthen given the current operating environment. For the first half of 2009, net interest income increased $749,000 or 3% compared with the prior-year period. Net interest margin for the first half of 2009 was down 29 basis points to 3.73% from 4.02% a year ago.
The ratio of non-performing loans to total loans for the second quarter of 2009 increased to 0.63% from 0.42% in the second quarter of 2008 and, on a linked-quarter basis, rose from 0.43% in the first quarter of 2009. This increase reflected ongoing economic pressures as the recession continues and inevitably affects a larger number of borrowers; still, the current level of non-performing loans to total loans was within the range experienced for the past five years. Non-performing assets, however, which includes non-performing loans, other real estate owned and repossessed assets, have remained more stable over the past year, at $10,440,000 or 0.60% of total assets at June 30, 2009, versus $8,476,000 or 0.53% of total assets at the end of the year-earlier quarter, and $7,529,000 or 0.46% of total assets at March 31, 2009. Concurrent with the increase in non-performing loans, net charge-offs also increased in the second quarter of 2009, rising to $1,331,000 or 0.10% of average loans compared with $616,000 or 0.05% of average loans in the year-earlier quarter and $798,000 or 0.06% of average loans in the first quarter of 2009. Historically conservative in its stance toward credit quality, S.Y. Bancorp intends to remain vigilant as it formulates provisions for loan losses considering continued weakness in the economy and ongoing uncertainty surrounding the depth and duration of this recession.
Management considers the volatility and disruption experienced in credit markets over the past year and the effect of those factors on the Company's loan portfolio in determining the provision and allowance for loan losses, along with the stress placed on borrowers by deteriorating economic conditions and declining collateral values. Because of these risks, coupled with increases in the level of non-performing loans and classified assets, the Company increased its loan loss provision for the second quarter of 2009 to $2,200,000 from $975,000 in the year-earlier period. The Company's allowance for loan losses was 1.22% of total loans at June 30, 2009, up from 1.09% at June 30, 2008, and 1.18% at March 31, 2009.
Because of the relatively low level of non-performing assets, the Company thus far has been able to approach loan workouts and collateral sales in an orderly fashion to minimize losses. Should market conditions worsen and non-performing loans spike, this flexibility may be reduced, and management may need to liquidate problem loans more rapidly, thus increasing the possibility of larger losses.
Non-interest income increased $407,000 or 5% in the second quarter compared with the same quarter last year, largely reflecting an increase of $760,000 or 128% in other non-interest income related mainly to realized and unrealized gains of an investment in a domestic private equity fund recorded using the equity method of accounting, as well as an increase of $125,000 or 39% in gains on sales of mortgage loans. These higher amounts were offset partially by a continued decline in investment management and trust services income, which constitutes the single largest component of non-interest income. For the second quarter of 2009, investment management and trust services income fell $435,000 or 13% due to a year-over-year decline in stock market values generally, inasmuch as these fees largely track securities' market values, as well as a reduction in non-recurring estate fees. Non-interest income declined $509,000 or 3% in the first half of 2009 compared with the year-earlier period, representing lower management and trust income and service charge income, offset partially by higher other non-interest income.
Non-interest expense increased $1,698,000 or 14% in the second quarter of 2009 versus the same period last year. Higher non-interest expense for the quarter was due primarily to an increase of $1,155,000 in FDIC insurance expense, including a $786,000 special assessment, and $303,000 or 4% in salaries and employee benefits expense reflecting higher per capita salaries in 2009 due to the creation of new management-level positions, even though the Company's overall staffing level remains essentially flat. Non-interest expense rose $1,897,000 or 8% in the first half of 2009 compared with the year-earlier period primarily due to increased FDIC insurance expense, higher salaries and employee benefits expense, and higher state bank taxes. The Company's second quarter efficiency ratio was 61.96% compared with 55.25% in the second quarter of 2008 and 58.61% in the first quarter of 2009.
In May, S.Y. Bancorp's Board of Directors declared its regular quarterly cash dividend of $0.17 per share. The latest dividend was distributed on July 1, 2009, to stockholders of record as of June 15, 2009.
Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.747 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.
| Tangible Common Equity Ratio (Amounts in thousands) |
| | | | | |
| | 6/30/2009 | | | | 3/31/2009 | | | | 6/30/2008 | |
| Total stockholders' equity (a) | $ | 149,524 | | | $ | 146,930 | | | $ | 134,848 | |
| Less goodwill | | (682 | ) | | | (682 | ) | | | (682 | ) |
| Less mortgage servicing rights | | (1,140 | ) | | | (804 | ) | | | (400 | ) |
| Tangible common equity (c) | $ | 147,702 | | | $ | 145,444 | | | $ | 133,766 | |
| | | | | |
| Total assets (b) | $ | 1,746,759 | | | $ | 1,630,724 | | | $ | 1,596,320 | |
| Less goodwill | | (682 | ) | | | (682 | ) | | | (682 | ) |
| Less mortgage servicing rights | | (1,140 | ) | | | (804 | ) | | | (400 | ) |
| Tangible assets (d) | $ | 1,744,937 | | | $ | 1,629,238 | | | $ | 1,595,238 | |
| | | | | |
| Total stockholders' equity to total assets (a/b) | | 8.56 | % | | | 9.01 | % | | | 8.45 | % |
| Tangible common equity ratio (c/d) | | 8.46 | % | | | 8.93 | % | | | 8.39 | % |
| S. Y. Bancorp, Inc. Financial Information |
| Second Quarter 2009 Earnings Release |
| (In thousands unless otherwise noted) |
| | | | | | | | | | |
| | | | Second Quarter Ended | | Six Months Ended |
| | | | June 30, | | June 30, |
| | | | | 2009 | | | 2008 | | | 2009 | | | 2008 |
| Income Statement Data | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | | | $ | 14,581 | | $ | 14,662 | | $ | 28,952 | | $ | 28,170 |
| Interest income | | | | | | | | | | |
| Loans | | | | $ | 19,204 | | $ | 20,050 | | $ | 37,947 | | $ | 40,382 |
| Federal funds sold | | | | | 17 | | | 84 | | | 20 | | | 139 |
| Mortgage loans held for sale | | | | | 105 | | | 87 | | | 181 | | | 148 |
| Securities | | | | | 1,471 | | | 1,256 | | | 3,166 | | | 2,686 |
| Total interest income | | | | | 20,797 | | | 21,477 | | | 41,314 | | | 43,355 |
| Interest expense | | | | | | | | | | |
| Deposits | | | | | 4,664 | | | 5,635 | | | 9,337 | | | 12,661 |
| Securities sold under agreements to repurchase and federal funds purchased | | | | | | | | | |
| | | 65 | | | 276 | | | 146 | | | 730 |
| Other short-term borrowings | | | | | - | | | 117 | | | - | | | 227 |
| Federal Home Loan Bank advances | | | | | 868 | | | 1,033 | | | 1,648 | | | 2,059 |
| Subordinated debentures | | | | | 883 | | | 1 | | | 1,758 | | | 2 |
| Total interest expense | | | | | 6,480 | | | 7,062 | | | 12,889 | | | 15,679 |
| Net interest income | | | | | 14,317 | | | 14,415 | | | 28,425 | | | 27,676 |
| Provision for loan losses | | | | | 2,200 | | | 975 | | | 3,825 | | | 2,200 |
| Net interest income after provision for loan losses | | | 12,117 | | | 13,440 | | | 24,600 | | | 25,476 |
| Non-interest income | | | | | | | | | | |
| Investment management and trust income | | | | 2,801 | | | 3,236 | | | 5,472 | | | 6,515 |
| Service charges on deposit accounts | | | | | 2,038 | | | 2,117 | | | 3,849 | | | 4,109 |
| Bankcard transaction revenue | | | | | 747 | | | 691 | | | 1,406 | | | 1,312 |
| Gains on sales of mortgage loans held for sale | | | | 444 | | | 319 | | | 943 | | | 755 |
| Brokerage commissions and fees | | | | | 437 | | | 444 | | | 822 | | | 885 |
| Bank owned life insurance | | | | | 245 | | | 258 | | | 488 | | | 510 |
| Other non-interest income | | | | | 1,352 | | | 592 | | | 1,645 | | | 1,048 |
| Total non-interest income | | | | | 8,064 | | | 7,657 | | | 14,625 | | | 15,134 |
| Non-interest expense | | | | | | | | | | |
| Salaries and employee benefits expense | | | | 7,629 | | | 7,326 | | | 14,989 | | | 14,633 |
| Net occupancy expense | | | | | 1,013 | | | 1,036 | | | 2,021 | | | 2,045 |
| Data processing expense | | | | | 1,002 | | | 896 | | | 1,808 | | | 1,648 |
| Furniture and equipment expense | | | | | 307 | | | 276 | | | 599 | | | 552 |
| State bank taxes | | | | | 474 | | | 314 | | | 862 | | | 654 |
| FDIC insurance expense | | | | | 1,245 | | | 90 | | | 1,667 | | | 264 |
| Other non-interest expenses | | | | | 2,360 | | | 2,394 | | | 4,353 | | | 4,606 |
| Total non-interest expense | | | | | 14,030 | | | 12,332 | | | 26,299 | | | 24,402 |
| Net income before income tax expense | | | | 6,151 | | | 8,765 | | | 12,926 | | | 16,208 |
| Income tax expense | | | | | 1,863 | | | 2,636 | | | 3,901 | | | 5,041 |
| Net income | | | | $ | 4,288 | | $ | 6,129 | | $ | 9,025 | | $ | 11,167 |
| | | | | | | | | | |
| Weighted average shares - basic | | | | | 13,564 | | | 13,409 | | | 13,532 | | | 13,431 |
| Weighted average shares - diluted | | | | | 13,729 | | | 13,584 | | | 13,683 | | | 13,598 |
| | | | | | | | | | |
| Basic earnings per share | | | | $ | 0.32 | | $ | 0.46 | | $ | 0.67 | | $ | 0.83 |
| Diluted earnings per share | | | | | 0.31 | | | 0.45 | | | 0.66 | | | 0.82 |
| Cash dividend declared per share | | | | | 0.17 | | | 0.17 | | | 0.34 | | | 0.34 |
| | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | |
| Total loans | | | | | | | | $ | 1,398,679 | | $ | 1,320,509 |
| Allowance for loan losses | | | | | | | | | 17,077 | | | 14,456 |
| Total assets | | | | | | | | | 1,746,759 | | | 1,596,320 |
| Non-interest bearing deposits | | | | | | | | | 205,403 | | | 182,580 |
| Interest bearing deposits | | | | | | | | | 1,131,610 | | | 1,080,752 |
| Federal home loan bank advances | | | | | | | | | 90,458 | | | 90,000 |
| Subordinated debentures | | | | | | | | | 40,930 | | | 60 |
| Stockholders' equity | | | | | | | | | 149,524 | | | 134,848 |
| Total shares outstanding | | | | | | | | | 13,580 | | | 13,424 |
| Book value per share | | | | | | | | | 11.01 | | | 10.05 |
| Market value per share | | | | | | | | | 24.17 | | | 21.36 |
| S. Y. Bancorp, Inc. Financial Information |
| Second Quarter 2009 Earnings Release |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | Second Quarter Ended | | Six Months Ended |
| | | | June 30, | | June 30, |
| | | | | 2009 | | | | 2008 | | | | 2009 | | | | 2008 | |
| Average Balance Sheet Data | | | | | | | | | | |
| Average federal funds sold | | | | $ | 30,751 | | | $ | 16,690 | | | $ | 17,348 | | | $ | 11,494 | |
| Average investment securities | | | | | 170,572 | | | | 110,036 | | | | 165,790 | | | | 119,010 | |
| Average loans | | | | | 1,390,379 | | | | 1,308,304 | | | | 1,375,964 | | | | 1,271,745 | |
| Average earning assets | | | | | 1,599,655 | | | | 1,441,363 | | | | 1,566,049 | | | | 1,407,816 | |
| Average assets | | | | | 1,694,508 | | | | 1,536,473 | | | | 1,661,208 | | | | 1,503,313 | |
| Average interest bearing deposits | | | | | 1,116,202 | | | | 1,013,921 | | | | 1,098,282 | | | | 983,611 | |
| Average total deposits | | | | | 1,311,330 | | | | 1,187,325 | | | | 1,287,681 | | | | 1,152,600 | |
| Average federal funds purchased and securities sold under agreement to repurchase | | | | | | | | | |
| | | 70,827 | | | | 75,785 | | | | 70,110 | | | | 79,702 | |
| Average short-term borrowings | | | | | 1,059 | | | | 14,671 | | | | 1,048 | | | | 14,035 | |
| Average long-term debt | | | | | 125,015 | | | | 91,379 | | | | 118,048 | | | | 90,721 | |
| Average interest bearing liabilities | | | | | 1,313,103 | | | | 1,195,756 | | | | 1,287,488 | | | | 1,168,069 | |
| Average stockholders' equity | | | | | 149,113 | | | | 134,696 | | | | 147,631 | | | | 133,298 | |
| | | | | | | | | | |
| Performance Ratios | | | | | | | | | | |
| Annualized return on average assets | | | | | 1.01 | % | | | 1.60 | % | | | 1.10 | % | | | 1.49 | % |
| Annualized return on average equity | | | | | 11.53 | % | | | 18.30 | % | | | 12.33 | % | | | 16.85 | % |
| Net interest margin, fully tax equivalent | | | | 3.66 | % | | | 4.09 | % | | | 3.73 | % | | | 4.02 | % |
| Non-interest income to total revenue, fully tax equivalent | | | | | | | | | |
| | | 35.61 | % | | | 34.31 | % | | | 33.56 | % | | | 34.95 | % |
| Efficiency ratio | | | | | 61.96 | % | | | 55.25 | % | | | 60.35 | % | | | 56.35 | % |
| | | | | | | | | | |
| Capital Ratios | | | | | | | | | | |
| Average stockholders' equity to average assets | | | | 8.80 | % | | | 8.77 | % | | | 8.89 | % | | | 8.87 | % |
| Tier 1 risk-based capital | | | | | | | | | 11.73 | % | | | 9.26 | % |
| Total risk-based capital | | | | | | | | | 13.52 | % | | | 10.26 | % |
| Leverage | | | | | | | | | 10.49 | % | | | 8.74 | % |
| | | | | | | | | | |
| Loans by Type | | | | | | | | | | |
| Commercial and industrial | | | | | | | | $ | 347,180 | | | $ | 331,475 | |
| Construction and development | | | | | | | | | 193,855 | | | | 182,041 | |
| Real estate mortgage - commercial investment | | | | | | | | 286,237 | | | | 250,007 | |
| Real estate mortgage - owner occupied commercial | | | | | | | 226,755 | | | | 222,134 | |
| Real estate mortgage - 1-4 family residential | | | | | | | | 153,316 | | | | 154,661 | |
| Home equity - first lien | | | | | | | | | 39,858 | | | |
| Home equity - junior lien | | | | | | | | | 116,946 | | | |
| Home equity (2) | | | | | | | | | | | 142,154 | |
| Consumer | | | | | | | | | 34,532 | | | | 38,037 | |
| | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | | | | | 1.22 | % | | | 1.09 | % |
| Allowance for loan losses to average loans | | | | | | | | 1.24 | % | | | 1.14 | % |
| Allowance for loan losses to non-performing loans | | | | | | | 193.62 | % | | | 263.75 | % |
| Nonaccrual loans | | | | | | | | $ | 6,123 | | | $ | 4,938 | |
| Troubled debt restructuring | | | | | | | | | 773 | | | | - | |
| Loans - 90 days past due & still accruing | | | | | | | | 1,924 | | | | 543 | |
| Total non-performing loans | | | | | | | | | 8,820 | | | | 5,481 | |
| OREO and repossessed assets | | | | | | | | | 1,620 | | | | 2,995 | |
| Total non-performing assets | | | | | | | | | 10,440 | | | | 8,476 | |
| Non-performing loans to total loans | | | | | | | | | 0.63 | % | | | 0.42 | % |
| Non-performing assets to total assets | | | | | | | | | 0.60 | % | | | 0.53 | % |
| Net charge-offs to average loans (3) | | | | | 0.10 | % | | | 0.05 | % | | | 0.15 | % | | | 0.09 | % |
| Net charge-offs | | | | $ | 1,331 | | | $ | 616 | | | $ | 2,129 | | | $ | 1,194 | |
| | | | | | | | | | |
| Other Information | | | | | | | | | | |
| Total assets under management (in millions) | | | | | | | $ | 1,375 | | | $ | 1,536 | |
| Full-time equivalent employees | | | | | | | | | 457 | | | | 457 | |
| S. Y. Bancorp, Inc. Financial Information |
| Second Quarter 2009 Earnings Release |
| | | | | | | | | | |
| | | | | | | | | | |
| | Five Quarter Comparison |
| | | 6/30/09 | | | 3/31/09 | | | 12/31/08 | | | 9/30/08 | | | | 6/30/08 |
| Income Statement Data | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | $ | 14,581 | | $ | 14,371 | | $ | 14,981 | | $ | 14,722 | | | $ | 14,662 |
| Net interest income | | $ | 14,317 | | $ | 14,108 | | $ | 14,717 | | $ | 14,465 | | | $ | 14,415 |
| Provision for loan losses | | | 2,200 | | | 1,625 | | | 950 | | | 900 | | | | 975 |
| Net interest income after provision for loan losses | | 12,117 | | | 12,483 | | | 13,767 | | | 13,565 | | | | 13,440 |
| Investment management and trust income | | 2,801 | | | 2,671 | | | 2,803 | | | 2,885 | | | | 3,236 |
| Service charges on deposit accounts | | | 2,038 | | | 1,811 | | | 2,045 | | | 2,196 | | | | 2,117 |
| Bankcard transaction revenue | | | 747 | | | 659 | | | 671 | | | 662 | | | | 691 |
| Gains on sales of mortgage loans held for sale | | 444 | | | 499 | | | 254 | | | 366 | | | | 319 |
| Gain (loss) on the sale of securities | | | - | | | - | | | - | | | (607 | ) | | | - |
| Brokerage commissions and fees | | | 437 | | | 385 | | | 499 | | | 413 | | | | 444 |
| Bank owned life insurance | | | 245 | | | 243 | | | 247 | | | 263 | | | | 258 |
| Other non-interest income | | | 1,352 | | | 293 | | | 110 | | | 580 | | | | 592 |
| Total non-interest income | | | 8,064 | | | 6,561 | | | 6,629 | | | 6,758 | | | | 7,657 |
| Salaries and employee benefits expense | | 7,629 | | | 7,360 | | | 6,565 | | | 6,966 | | | | 7,326 |
| Net occupancy expense | | | 1,013 | | | 1,008 | | | 1,081 | | | 1,121 | | | | 1,036 |
| Data processing expense | | | 1,002 | | | 806 | | | 838 | | | 840 | | | | 896 |
| Furniture and equipment expense | | | 307 | | | 292 | | | 275 | | | 290 | | | | 276 |
| State bank taxes | | | 474 | | | 388 | | | 340 | | | 340 | | | | 314 |
| FDIC Insurance expense | | | 1,245 | | | 422 | | | 182 | | | 176 | | | | 90 |
| Other non-interest expenses | | | 2,360 | | | 1,993 | | | 3,810 | | | 2,371 | | | | 2,394 |
| Total non-interest expense | | | 14,030 | | | 12,269 | | | 13,091 | | | 12,104 | | | | 12,332 |
| Net income before income tax expense | | 6,151 | | | 6,775 | | | 7,305 | | | 8,219 | | | | 8,765 |
| Income tax expense | | | 1,863 | | | 2,038 | | | 2,239 | | | 2,776 | | | | 2,636 |
| Net income | | $ | 4,288 | | $ | 4,737 | | $ | 5,066 | | $ | 5,443 | | | $ | 6,129 |
| | | | | | | | | | |
| Weighted average shares - basic | | | 13,564 | | | 13,500 | | | 13,463 | | | 13,435 | | | | 13,409 |
| Weighted average shares - diluted | | | 13,729 | | | 13,637 | | | 13,675 | | | 13,652 | | | | 13,584 |
| | | | | | | | | | |
| Basic earnings per share | | $ | 0.32 | | $ | 0.35 | | $ | 0.38 | | $ | 0.41 | | | $ | 0.46 |
| Diluted earnings per share | | | 0.31 | | | 0.35 | | | 0.37 | | | 0.40 | | | | 0.45 |
| Cash dividend declared per share | | | 0.17 | | | 0.17 | | | 0.17 | | | 0.17 | | | | 0.17 |
| | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | |
| Total loans | | $ | 1,398,679 | | $ | 1,376,225 | | $ | 1,349,637 | | $ | 1,316,661 | | | $ | 1,320,509 |
| Allowance for loan losses | | | 17,077 | | | 16,208 | | | 15,381 | | | 14,785 | | | | 14,456 |
| Total assets | | | 1,746,759 | | | 1,630,724 | | | 1,628,763 | | | 1,653,456 | | | | 1,596,320 |
| Non-interest bearing deposits | | | 205,403 | | | 190,080 | | | 182,778 | | | 184,647 | | | | 182,580 |
| Interest bearing deposits | | | 1,131,610 | | | 1,095,954 | | | 1,088,147 | | | 1,081,319 | | | | 1,080,752 |
| Federal home loan bank advances | | | 90,458 | | | 70,460 | | | 70,000 | | | 90,000 | | | | 90,000 |
| Subordinated debentures | | | 40,930 | | | 40,930 | | | 40,960 | | | 10,060 | | | | 60 |
| Stockholders' equity | | | 149,524 | | | 146,931 | | | 144,500 | | | 138,910 | | | | 134,848 |
| Total shares outstanding | | | 13,580 | | | 13,541 | | | 13,474 | | | 13,457 | | | | 13,424 |
| Book value per share | | | 11.01 | | | 10.85 | | | 10.72 | | | 10.32 | | | | 10.05 |
| Market value per share | | | 24.17 | | | 24.30 | | | 27.50 | | | 30.62 | | | | 21.36 |
| S. Y. Bancorp, Inc. Financial Information |
| Second Quarter 2009 Earnings Release |
| | | | | | | | | | |
| | Five Quarter Comparison |
| | | 6/30/09 | | | | 3/31/09 | | | | 12/31/08 | | | | 9/30/08 | | | | 6/30/08 | |
| Average Balance Sheet Data | | | | | | | | | | |
| Average loans | | $ | 1,390,379 | | | $ | 1,361,389 | | | $ | 1,323,434 | | | $ | 1,315,401 | | | $ | 1,308,304 | |
| Average assets | | | 1,694,508 | | | | 1,627,538 | | | | 1,616,476 | | | | 1,647,361 | | | | 1,536,473 | |
| Average earning assets | | | 1,599,655 | | | | 1,532,070 | | | | 1,520,146 | | | | 1,552,961 | | | | 1,441,363 | |
| Average total deposits | | | 1,311,330 | | | | 1,263,769 | | | | 1,268,244 | | | | 1,292,493 | | | | 1,187,325 | |
| Average long-term debt | | | 125,015 | | | | 111,003 | | | | 85,909 | | | | 90,169 | | | | 91,379 | |
| Average interest bearing liabilities | | | 1,313,103 | | | | 1,261,589 | | | | 1,251,603 | | | | 1,294,216 | | | | 1,195,756 | |
| Average stockholders' equity | | | 149,113 | | | | 146,132 | | | | 141,129 | | | | 136,664 | | | | 134,696 | |
| | | | | | | | | | |
| Performance Ratios | | | | | | | | | | |
| Annualized return on average assets | | | 1.01 | % | | | 1.18 | % | | | 1.25 | % | | | 1.31 | % | | | 1.60 | % |
| Annualized return on average equity | | | 11.53 | % | | | 13.15 | % | | | 14.28 | % | | | 15.84 | % | | | 18.30 | % |
| Net interest margin, fully tax equivalent | | 3.66 | % | | | 3.80 | % | | | 3.92 | % | | | 3.79 | % | | | 4.09 | % |
| Non-interest income to total revenue, fully tax equivalent | | | | | | | | | |
| 35.61 | % | | | 31.23 | % | | | 30.68 | % | | | 31.46 | % | | | 34.31 | % |
| Efficiency ratio | | | 61.96 | % | | | 58.61 | % | | | 60.58 | % | | | 56.35 | % | | | 55.25 | % |
| | | | | | | | | | |
| Capital Ratios | | | | | | | | | | |
| Average stockholders' equity to average assets | | 8.80 | % | | | 8.98 | % | | | 8.73 | % | | | 8.30 | % | | | 8.77 | % |
| Tier 1 risk-based capital | | | 11.73 | % | | | 12.07 | % | | | 12.11 | % | | | 9.55 | % | | | 9.26 | % |
| Total risk-based capital | | | 13.52 | % | | | 13.89 | % | | | 13.90 | % | | | 11.26 | % | | | 10.26 | % |
| Leverage | | | 10.49 | % | | | 10.75 | % | | | 10.62 | % | | | 8.40 | % | | | 8.74 | % |
| | | | | | | | | | |
| Loans by Type | | | | | | | | | | |
| Commercial and industrial | | $ | 347,180 | | | $ | 364,004 | | | $ | 348,174 | | | $ | 338,373 | | | $ | 331,475 | |
| Construction and development | | | 193,855 | | | | 172,759 | | | | 167,402 | | | | 173,879 | | | | 182,041 | |
| Real estate mortgage - commercial investment | | 286,237 | | | | 253,213 | | | | 248,308 | | | | 245,917 | | | | 250,007 | |
| Real estate mortgage - owner occupied commercial | | 226,755 | | | | 246,196 | | | | 249,164 | | | | 223,226 | | | | 222,134 | |
| Real estate mortgage - 1-4 family residential | | 153,316 | | | | 154,986 | | | | 160,322 | | | | 156,818 | | | | 154,661 | |
| Home equity - 1st lien | | | 39,858 | | | | 35,014 | | | | 22,973 | | | | 24,458 | | | |
| Home equity - junior lien | | | 116,946 | | | | 119,791 | | | | 122,535 | | | | 118,672 | | | |
| Home equity (2) | | | | | | | | | | | 142,154 | |
| Consumer | | | 34,532 | | | | 30,262 | | | | 30,759 | | | | 35,318 | | | | 38,037 | |
| | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | |
| Allowance for loan losses to total loans | | 1.22 | % | | | 1.18 | % | | | 1.14 | % | | | 1.12 | % | | | 1.09 | % |
| Allowance for loan losses to average loans | | 1.23 | % | | | 1.19 | % | | | 1.16 | % | | | 1.12 | % | | | 1.10 | % |
| Allowance for loan losses to non-performing loans | | 193.62 | % | | | 277.01 | % | | | 326.56 | % | | | 375.25 | % | | | 263.75 | % |
| Nonaccrual loans | | $ | 6,123 | | | $ | 4,539 | | | $ | 4,455 | | | $ | 3,880 | | | $ | 4,938 | |
| Troubled debt restructuring | | | 773 | | | | - | | | | - | | | | - | | | | - | |
| Loans - 90 days past due & still accruing | | 1,924 | | | | 1,312 | | | | 255 | | | | 60 | | | | 543 | |
| Total non-performing loans | | | 8,820 | | | | 5,851 | | | | 4,710 | | | | 3,940 | | | | 5,481 | |
| OREO and repossessed assets | | | 1,620 | | | | 1,678 | | | | 1,656 | | | | 3,182 | | | | 2,995 | |
| Total non-performing assets | | | 10,440 | | | | 7,529 | | | | 6,366 | | | | 7,122 | | | | 8,476 | |
| Non-performing loans to total loans | | | 0.63 | % | | | 0.43 | % | | | 0.35 | % | | | 0.30 | % | | | 0.42 | % |
| Non-performing assets to total assets | | | 0.60 | % | | | 0.46 | % | | | 0.39 | % | | | 0.43 | % | | | 0.53 | % |
| Net charge-offs to average loans (3) | | | 0.10 | % | | | 0.06 | % | | | 0.03 | % | | | 0.04 | % | | | 0.05 | % |
| Net charge-offs | | | 1,331 | | | $ | 798 | | | $ | 354 | | | $ | 571 | | | $ | 616 | |
| | | | | | | | | | |
| Other Information | | | | | | | | | | |
| Total assets under management (in millions) | $ | 1,375 | | | $ | 1,304 | | | $ | 1,347 | | | $ | 1,464 | | | $ | 1,536 | |
| Full-time equivalent employees | | | 457 | | | | 460 | | | | 464 | | | | 459 | | | | 457 | |
| | | | | | | | | | |
| (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) - In September 2008, the Company changed its presentation for disclosing the types of loans in its portfolio to provide more detailed information. Home equity lines of credit were divided into two categories - first lien and junior lien; however, it was not feasible to obtain comparable amounts for these categories for prior periods. |
| |
| (3) - 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
