Exhibit 99.1
S.Y. Bancorp Third Quarter 2010 Earnings Increase 44% to $0.46 Per Diluted Share
LOUISVILLE, Ky.--(BUSINESS WIRE)--October 20, 2010--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 third quarter and first nine months of 2010. Net income per diluted share for the third quarter of 2010 advanced 44% to $0.46 versus the year-earlier quarter, while net income per diluted share for the first nine months of the year rose 26% to $1.23.
The Company's higher earnings for the third quarter of 2010 compared with the prior-year period reflected solid loan growth during the past year along with a strengthening of the Company's net interest margin, factors that together helped account for a 17% increase in net interest income. Fees from investment management and trust services also contributed to the Company's higher earnings, improving on a quarter-over-quarter basis throughout 2010. The following is a summary of results for the third quarter and nine months ended September 30, 2010 and 2009:
| | | | | | | | | |
Quarter Ended September 30, | | | 2010 | | | 2009 | | | Change |
| Net income | | | $ | 6,365,000 | | | | $ | 4,399,000 | | | | 45 | % |
| Net income per share, diluted | | | $ | 0.46 | | | | $ | 0.32 | | | | 44 | % |
| Return on average equity | | | | 15.25 | % | | | | 11.48 | % | | | |
| Return on average assets | | | | 1.35 | % | | | | 0.99 | % | | | |
| | | | | | | | | |
Nine Months Ended September 30, | | | 2010 | | | 2009 | | | Change |
| Net income | | | $ | 16,902,000 | | | | $ | 13,424,000 | | | | 26 | % |
| Net income per share, diluted | | | $ | 1.23 | | | | $ | 0.98 | | | | 26 | % |
| Return on average equity | | | | 14.01 | % | | | | 12.04 | % | | | |
| Return on average assets | | | | 1.24 | % | | | | 1.06 | % | | | |
| | | | | | | | | | | | | |
"We are pleased to announce that S.Y. Bancorp posted another solid performance in the third quarter, as earnings continued to improve – pushing net income per share to its highest level of any quarter of the year," said David Heintzman, Chairman and Chief Executive Officer. "Likewise, our returns on average equity and assets also have continued to improve with these results, moving steadily higher throughout 2010 and significantly ahead of the third quarter of 2009. This performance reflects strong fundamentals in our business with continued solid loan and deposit growth across our markets, as well as rising fee income from our investment management and trust services. Against this positive backdrop, credit quality remained sound despite ongoing economic pressures, with metrics that continue to compare very favorably with industry trends."
Heintzman noted that newer markets in Indianapolis and Cincinnati continued to contribute to the Company's loan growth, accounting for 30% of total loan growth and 75% of deposit growth over the past year. "Our successful expansion into these markets validates the strength of our community banking model, one that combines private banking for professionals and small business owners together with an increasing focus on commercial and industrial lending. Each is grounded by vision for excellence in customer service that has endured for more than a century. We believe this approach to community banking continues to set us apart in a crowded marketplace, as evidenced by our ongoing growth and the loyalty of our customers.
"At the same time, exciting opportunities exist in our investment management and trust services division, which has produced increased fee income each quarter this year in step with a rebounding stock market and an increase in new clients," Heintzman continued. "Our investment management and trust services division now has almost $1.6 billion in assets under management."
Concluding, Heintzman said, "Although the third quarter provided good news for the Company and its stockholders on many fronts, we recognize that much uncertainty still surrounds our economy, which pressures our customers directly and indirectly in many ways. Until the current economic recovery gains more traction, unemployment levels improve, and real estate values stabilize, this risk remains. Strategically, however, S.Y. Bancorp is positioned for continued solid, consistent growth over the long term, and to take advantage of market expansion opportunities in the changing world of banking. We also are confident in our culture, which promotes an unmatched level of customer service, and a product lineup that responds fully to the broad financial needs of our marketplace."
S.Y. Bancorp's total assets increased 7% to $1.881 billion at September 30, 2010, from $1.764 billion at September 30, 2009. The Company's loan portfolio rose 5% to $1.489 billion at September 30, 2010, from $1.412 billion at September 30, 2009. Deposits increased 7% to $1.463 billion at September 30, 2010, compared with $1.362 billion a year ago, reflecting strong growth in Indianapolis and Cincinnati, which helped offset expected maturities of higher-cost certificates of deposit in Louisville.
In the third quarter of 2010, capital levels continued to strengthen, remaining in excess of what is required to be considered "well-capitalized" under regulatory standards – the highest capital rating for financial institutions. The Tier 1 leverage ratio, Tier 1 risk-based capital ratio and total risk-based capital ratio at September 30, 2010, were 10.29%, 11.99% and 13.87%, respectively, all exceeding the required minimums of 5%, 6% and 10%, respectively, necessary to be deemed a well-capitalized institution. The ratio of tangible common equity to total tangible assets was 8.88% as of September 30, 2010, up from 8.68% as of June 30, 2010, and 8.66% at September 30, 2009 (see reconciliation of GAAP/non-GAAP measures later in this release).
Net interest income – the Company's largest source of revenue – increased $2,497,000 or 17% in the third quarter of 2010 compared with the year-earlier period. This increase primarily reflected a higher level of interest-earning assets year over year as well as an ongoing improvement in net interest margin due largely to lower funding costs. In the third quarter of 2010, net interest margin of 3.97% was unchanged from the second quarter of 2010 and was 40 basis points higher versus 3.57% in the third quarter of 2009. For the first nine months of 2010, net interest income increased $6,413,000 or 15% compared with the prior-year period. Net interest margin for the first nine months of 2010 rose 26 basis points to 3.93% from 3.67% a year ago.
Non-performing loans (NPLs) totaled $12,495,000 or 0.84% of total loans outstanding at September 30, 2010, down from $13,804,000 or 0.93% of total period-end loans at June 30, 2010, but up from $8,704,000 or 0.62% of period-end loans at September 30, 2009. The decline from the second quarter of 2010 reflected the migration of certain NPLs to other real estate owned (OREO) status, which more than offset the amount of loans newly designated as non-performing. The increase in NPLs over the past year reflects the ongoing economic stress on borrowers witnessed in 2009, which has continued into 2010. Non-performing assets (NPAs), which include non-performing loans, OREO and repossessed assets, rose to $17,438,000 or 0.93% of total assets at September 30, 2010, up from $15,842,000 or 0.85% of total assets at June 30, 2010, reflecting the aforementioned transition of NPLs to NPAs, and was up from $10,641,000 or 0.60% of total assets at September 30, 2009. Should market conditions worsen and foreclosed assets increase significantly, the Company's flexibility to approach collateral sales in an orderly fashion to minimize losses may be reduced and management may be forced to liquidate problem loans more rapidly, thus increasing the loss on these assets. At current levels, the relative amounts of NPLs and NPAs continue to trend higher than the Company’s historic range for these metrics over the past five years, but they remain substantially below industry averages.
Net charge-offs in the third quarter of 2010 totaled $1,195,000 or 0.08% of average loans versus $1,262,000 or 0.09% of average loans in the second quarter of 2010 and $713,000 or 0.05% of average loans in the year-earlier quarter. Net charge-offs for the first nine months of 2010 currently annualize to 0.23% of average loans, notable considering current economic conditions, and compare with 0.21% in the first nine months of 2009. Nine-month net charge-offs to average loans remain well below the 0.59% recorded for the full year 2009.
The Company's loan loss provision for the third quarter of 2010 was $2,695,000 compared with $3,475,000 in the year-earlier period and $2,384,000 in the second quarter of 2010. Since the Company is unable to determine how long business and economic conditions will continue to be depressed or when they will begin to improve, S.Y. Bancorp intends to continue with its historically conservative stance toward credit quality, remaining cautious in assessing the potential risk in the loan portfolio. The Company's allowance for loan losses was 1.64% of total loans at September 30, 2010, up from 1.55% of total loans at June 30, 2010, and 1.40% at September 30, 2009.
Non-interest income increased $138,000 or 2% to $8,339,000 in the third quarter compared with $8,201,000 in the same quarter last year. This increase primarily reflected a $314,000 or 11% increase in investment management and trust services income – the largest component of non-interest income – due to stock market growth. This increase, combined with gains on sales of securities of $159,000 in 2010 and higher bankcard transaction revenue, was offset by a $438,000 decline in other non-interest income related to lower realized and unrealized gains of an investment in a domestic private equity fund recorded using the equity method of accounting. Non-interest income increased $1,532,000 or 7% to $24,358,000 in the first nine months of 2010 compared with $22,857,000 in the year-earlier period, largely reflecting the same factor.
Non-interest expense increased $958,000 or 7% to $13,986,000 in the third quarter of 2010 versus $13,028,000 in the same period last year. The increase reflected higher salaries and employee benefits expense due to increased staffing levels, primarily associated with the Company's expansion in Cincinnati, profit-related bonus accruals, and higher health insurance costs. Non-interest expense increased $2,918,000 or 7% to $42,245,000 in the first nine months of 2010 compared with $39,327,000 in the year-earlier period primarily due to the same factors, offset to some extent by lower FDIC insurance premiums in 2010 due to the special assessment in the second quarter 2009. The Company's third quarter efficiency ratio was 53.93% compared with 56.20% in the third quarter of 2009, reflecting strong revenue growth together with ongoing control of non-interest expense.
The Company's effective tax rate in 2010 reflected the benefit of several tax credit investments. The increase in tax credits arose from the Company's tax-advantaged investment in a Louisville revitalization project in the second quarter of 2010. The Company has invested in various tax credit projects in its primary market area over the years as a way to reduce its overall tax liability and to help fulfill its obligations under the Community Reinvestment Act. The Company will continue to evaluate future opportunities for these investments as they arise.
In August 2010, S.Y. Bancorp's Board of Directors declared its regular quarterly cash dividend of $0.17 per share. The latest dividend was distributed on October 1, 2010, to stockholders of record as of September 13, 2010.
Louisville, Kentucky-based S.Y. Bancorp, Inc., with $1.9 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. The Company's common shares trade on the NASDAQ Global Select Market under the symbol SYBT. The trust preferred securities of S.Y. Bancorp Capital Trust II also trade on the NASDAQ Global Select Market under the symbol SYBTP.
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.
The following table provides a reconciliation of total stockholders' equity to tangible common equity in accordance with applicable regulatory requirements and GAAP. The Company provides the tangible common equity ratio, in addition to those defined by banking regulators, because of its widespread use by investors as a means to evaluate capital adequacy.
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| S.Y. Bancorp, Inc. Tangible Common Equity Ratio (Amounts in thousands) |
| |
| | | September 30, 2010 | | | June 30, 2010 | | | September 30, 2009 |
| Total stockholders' equity (a) | | | $ | 167,609 | | | | $ | 162,035 | | | | $ | 153,265 | |
| Less goodwill | | | | (682 | ) | | | | (682 | ) | | | | (682 | ) |
| Tangible common equity (c) | | | $ | 166,927 | | | | $ | 161,353 | | | | $ | 152,583 | |
| | | | | | | | | |
| Total assets (b) | | | $ | 1,881,122 | | | | $ | 1,859,478 | | | | $ | 1,763,533 | |
| Less goodwill | | | | (682 | ) | | | | (682 | ) | | | | (682 | ) |
| Tangible assets (d) | | | $ | 1,880,440 | | | | $ | 1,858,796 | | | | $ | 1,762,851 | |
| | | | | | | | | |
| Total stockholders' equity to total assets (a/b) | | | | 8.91 | % | | | | 8.71 | % | | | | 8.69 | % |
| Tangible common equity ratio (c/d) | | | | 8.88 | % | | | | 8.68 | % | | | | 8.66 | % |
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S.Y. Bancorp, Inc. Financial Information |
| Third Quarter 2010 Earnings Release |
| (In thousands unless otherwise noted) |
| |
| | | Third Quarter Ended | | | Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 |
| Income Statement Data | | | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | | | $ | 17,597 | | | $ | 14,980 | | | $ | 50,541 | | | $ | 43,932 |
| Interest income | | | | | | | | | | | | |
| Loans | | | $ | 20,285 | | | $ | 19,418 | | | $ | 59,214 | | | $ | 57,365 |
| Federal funds sold | | | | 41 | | | | 31 | | | | 85 | | | | 51 |
| Mortgage loans held for sale | | | | 97 | | | | 105 | | | | 216 | | | | 286 |
| Securities | | | | 1,595 | | | | 1,671 | | | | 4,908 | | | | 4,837 |
| Total interest income | | | | 22,018 | | | | 21,225 | | | | 64,423 | | | | 62,539 |
| Interest expense | | | | | | | | | | | | |
| Deposits | | | | 3,210 | | | | 4,616 | | | | 10,286 | | | | 13,953 |
| Securities sold under agreements to repurchase | | | | 89 | | | | 76 | | | | 257 | | | | 184 |
| Federal funds purchased | | | | 14 | | | | 15 | | | | 31 | | | | 53 |
| Federal Home Loan Bank advances | | | | 622 | | | | 917 | | | | 1,703 | | | | 2,565 |
| Subordinated debentures | | | | 869 | | | | 884 | | | | 2,591 | | | | 2,642 |
| Total interest expense | | | | 4,804 | | | | 6,508 | | | | 14,868 | | | | 19,397 |
| Net interest income | | | | 17,214 | | | | 14,717 | | | | 49,555 | | | | 43,142 |
| Provision for loan losses | | | | 2,695 | | | | 3,475 | | | | 7,774 | | | | 7,300 |
| Net interest income after provision for loan losses | | | | 14,519 | | | | 11,242 | | | | 41,781 | | | | 35,842 |
| Non-interest income | | | | | | | | | | | | |
| Investment management and trust income | | | | 3,045 | | | | 2,731 | | | | 9,538 | | | | 8,203 |
| Service charges on deposit accounts | | | | 2,200 | | | | 2,120 | | | | 6,203 | | | | 5,969 |
| Bankcard transaction revenue | | | | 837 | | | | 745 | | | | 2,451 | | | | 2,151 |
| Gains on sales of mortgage loans held for sale | | | | 601 | | | | 667 | | | | 1,431 | | | | 1,610 |
| Gain on the sale of securities | | | | 159 | | | | - | | | | 159 | | | | - |
| Brokerage commissions and fees | | | | 525 | | | | 436 | | | | 1,484 | | | | 1,258 |
| Bank owned life insurance | | | | 251 | | | | 249 | | | | 742 | | | | 737 |
| Other non-interest income | | | | 721 | | | | 1,253 | | | | 2,350 | | | | 2,898 |
| Total non-interest income | | | | 8,339 | | | | 8,201 | | | | 24,358 | | | | 22,826 |
| Non-interest expense | | | | | | | | | | | | |
| Salaries and employee benefits expense | | | | 8,197 | | | | 7,569 | | | | 24,605 | | | | 22,638 |
| Net occupancy expense | | | | 1,136 | | | | 1,060 | | | | 3,708 | | | | 3,081 |
| Data processing expense | | | | 1,119 | | | | 1,091 | | | | 3,578 | | | | 3,370 |
| Furniture and equipment expense | | | | 316 | | | | 316 | | | | 951 | | | | 915 |
| FDIC insurance expense | | | | 498 | | | | 471 | | | | 1,500 | | | | 2,138 |
| Other non-interest expenses | | | | 2,720 | | | | 2,521 | | | | 7,903 | | | | 7,185 |
| Total non-interest expense | | | | 13,986 | | | | 13,028 | | | | 42,245 | | | | 39,327 |
| Net income before income tax expense | | | | 8,872 | | | | 6,415 | | | | 23,894 | | | | 19,341 |
| Income tax expense | | | | 2,507 | | | | 2,016 | | | | 6,992 | | | | 5,917 |
| Net income | | | $ | 6,365 | | | $ | 4,399 | | | $ | 16,902 | | | $ | 13,424 |
| | | | | | | | | | | | |
| Weighted average shares - basic | | | | 13,701 | | | | 13,584 | | | | 13,679 | | | | 13,550 |
| Weighted average shares - diluted | | | | 13,807 | | | | 13,702 | | | | 13,770 | | | | 13,694 |
| | | | | | | | | | | | |
| Net income per share, basic | | | $ | 0.46 | | | $ | 0.32 | | | $ | 1.24 | | | $ | 0.99 |
| Net income per share, diluted | | | | 0.46 | | | | 0.32 | | | | 1.23 | | | | 0.98 |
| Cash dividend declared per share | | | | 0.17 | | | | 0.17 | | | | 0.51 | | | | 0.51 |
| | | | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | | | |
| Total loans | | | | | | | | | $ | 1,489,398 | | | $ | 1,412,178 |
| Allowance for loan losses | | | | | | | | | | 24,433 | | | | 19,839 |
| Total assets | | | | | | | | | | 1,881,122 | | | | 1,763,533 |
| Non-interest bearing deposits | | | | | | | | | | 251,481 | | | | 216,490 |
| Interest bearing deposits | | | | | | | | | | 1,211,298 | | | | 1,145,261 |
| Federal home loan bank advances | | | | | | | | | | 80,445 | | | | 90,456 |
| Subordinated debentures | | | | | | | | | | 40,900 | | | | 40,930 |
| Stockholders' equity | | | | | | | | | | 167,609 | | | | 153,265 |
| Total shares outstanding | | | | | | | | | | 13,707 | | | | 13,588 |
| Book value per share | | | | | | | | | | 12.23 | | | | 11.28 |
| Market value per share | | | | | | | | | | 24.82 | | | | 23.09 |
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S.Y. Bancorp, Inc. Financial Information |
| Third Quarter 2010 Earnings Release |
| |
| | | Third Quarter Ended | | | Nine Months Ended |
| | | September 30, | | | September 30, |
| | | 2010 | | | 2009 | | | 2010 | | | 2009 |
| Average Balance Sheet Data | | | | | | | | | | | | |
| Average federal funds sold | | | $ | 64,288 | | | | $ | 72,759 | | | | $ | 50,328 | | | | $ | 36,021 | |
| Average investment securities | | | | 203,319 | | | | | 194,651 | | | | | 202,847 | | | | | 175,517 | |
| Average loans | | | | 1,484,741 | | | | | 1,391,207 | | | | | 1,461,179 | | | | | 1,381,100 | |
| Average earning assets | | | | 1,760,255 | | | | | 1,666,277 | | | | | 1,719,928 | | | | | 1,599,825 | |
| Average assets | | | | 1,871,048 | | | | | 1,762,706 | | | | | 1,827,255 | | | | | 1,695,412 | |
| Average interest bearing deposits | | | | 1,211,725 | | | | | 1,161,375 | | | | | 1,213,098 | | | | | 1,119,544 | |
| Average total deposits | | | | 1,464,119 | | | | | 1,361,975 | | | | | 1,444,135 | | | | | 1,312,718 | |
| Average securities sold under agreement to repurchase | | | | 55,971 | | | | | 50,940 | | | | | 54,151 | | | | | 49,112 | |
| Average federal funds purchased | | | | 26,082 | | | | | 28,475 | | | | | 20,363 | | | | | 24,134 | |
| Average short-term borrowings | | | | 1,212 | | | | | 1,119 | | | | | 1,250 | | | | | 1,072 | |
| Average long-term debt | | | | 117,650 | | | | | 131,387 | | | | | 108,382 | | | | | 122,543 | |
| Average interest bearing liabilities | | | | 1,412,640 | | | | | 1,373,296 | | | | | 1,397,244 | | | | | 1,316,405 | |
| Average stockholders' equity | | | | 165,578 | | | | | 152,006 | | | | | 161,298 | | | | | 149,105 | |
| | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | |
| Annualized return on average assets | | | | 1.35 | % | | | | 0.99 | % | | | | 1.24 | % | | | | 1.06 | % |
| Annualized return on average equity | | | | 15.25 | % | | | | 11.48 | % | | | | 14.01 | % | | | | 12.04 | % |
| Net interest margin, fully tax equivalent | | | | 3.97 | % | | | | 3.57 | % | | | | 3.93 | % | | | | 3.67 | % |
Non-interest income to total revenue, fully tax equivalent | | | | 32.15 | % | | | | 35.38 | % | | | | 32.52 | % | | | | 34.19 | % |
| Efficiency ratio | | | | 53.93 | % | | | | 56.20 | % | | | | 56.40 | % | | | | 58.91 | % |
| | | | | | | | | | | | |
| Capital Ratios | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | | 8.85 | % | | | | 8.62 | % | | | | 8.83 | % | | | | 8.79 | % |
| Tier 1 risk-based capital | | | | | | | | | | 11.99 | % | | | | 11.68 | % |
| Total risk-based capital | | | | | | | | | | 13.87 | % | | | | 13.57 | % |
| Leverage | | | | | | | | | | 10.29 | % | | | | 10.22 | % |
| | | | | | | | | | | | |
| Loans by Type | | | | | | | | | | | | |
| Commercial and industrial | | | | | | | | | $ | 336,594 | | | | $ | 336,395 | |
| Construction and development | | | | | | | | | | 174,546 | | | | | 198,586 | |
| Real estate mortgage - commercial investment | | | | | | | | | | 333,568 | | | | | 311,206 | |
| Real estate mortgage - owner occupied commercial | | | | | | | | | | 312,137 | | | | | 218,611 | |
| Real estate mortgage - 1-4 family residential | | | | | | | | | | 159,604 | | | | | 155,227 | |
| Home equity - first lien | | | | | | | | | | 40,428 | | | | | 39,566 | |
| Home equity - junior lien | | | | | | | | | | 95,368 | | | | | 113,132 | |
| Consumer | | | | | | | | | | 37,153 | | | | | 39,455 | |
| | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | | | | | | | 1.64 | % | | | | 1.40 | % |
| Allowance for loan losses to average loans | | | | 1.65 | % | | | | 1.43 | % | | | | 1.67 | % | | | | 1.44 | % |
| Allowance for loan losses to non-performing loans | | | | | | | | | | 195.54 | % | | | | 227.93 | % |
| Nonaccrual loans | | | | | | | | | $ | 8,485 | | | | $ | 7,166 | |
| Troubled debt restructuring | | | | | | | | | | 3,544 | | | | | 761 | |
| Loans - 90 days past due & still accruing | | | | | | | | | | 466 | | | | | 777 | |
| Total non-performing loans | | | | | | | | | | 12,495 | | | | | 8,704 | |
| OREO and repossessed assets | | | | | | | | | | 4,943 | | | | | 1,937 | |
| Total non-performing assets | | | | | | | | | | 17,438 | | | | | 10,641 | |
| Non-performing loans to total loans | | | | | | | | | | 0.84 | % | | | | 0.62 | % |
| Non-performing assets to total assets | | | | | | | | | | 0.93 | % | | | | 0.60 | % |
| Net charge-offs to average loans (2) | | | | 0.08 | % | | | | 0.05 | % | | | | 0.23 | % | | | | 0.21 | % |
| Net charge-offs | | | $ | 1,195 | | | | $ | 713 | | | | $ | 3,341 | | | | $ | 2,842 | |
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| Other Information | | | | | | | | | | | | |
| Total assets under management (in millions) | | | | | | | | | $ | 1,578 | | | | $ | 1,453 | |
| Full-time equivalent employees | | | | | | | | | | 473 | | | | | 467 | |
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S.Y. Bancorp, Inc. Financial Information |
| Third Quarter 2010 Earnings Release |
| |
| | | Five Quarter Comparison |
| | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | | | 12/31/09 | | | 9/30/09 |
| Income Statement Data | | | | | | | | | | | | | | | |
| Net interest income, fully tax equivalent (1) | | | $ | 17,597 | | | $ | 16,873 | | | $ | 16,071 | | | $ | 15,797 | | | | $ | 14,980 |
| Net interest income | | | $ | 17,214 | | | $ | 16,547 | | | $ | 15,794 | | | $ | 15,533 | | | | $ | 14,717 |
| Provision for loan losses | | | | 2,695 | | | | 2,384 | | | | 2,695 | | | | 5,475 | | | | | 3,475 |
| Net interest income after provision for loan losses | | | | 14,519 | | | | 14,163 | | | | 13,099 | | | | 10,058 | | | | | 11,242 |
| Investment management and trust income | | | | 3,045 | | | | 3,232 | | | | 3,261 | | | | 2,977 | | | | | 2,731 |
| Service charges on deposit accounts | | | | 2,200 | | | | 2,119 | | | | 1,884 | | | | 2,129 | | | | | 2,120 |
| Bankcard transaction revenue | | | | 837 | | | | 863 | | | | 751 | | | | 758 | | | | | 745 |
| Gains on sales of mortgage loans held for sale | | | | 601 | | | | 445 | | | | 385 | | | | 553 | | | | | 667 |
| Gain (loss) on the sale of securities | | | | 159 | | | | - | | | | - | | | | (339 | ) | | | | - |
| Brokerage commissions and fees | | | | 525 | | | | 503 | | | | 456 | | | | 491 | | | | | 436 |
| Bank owned life insurance | | | | 251 | | | | 248 | | | | 243 | | | | 251 | | | | | 249 |
| Other non-interest income | | | | 721 | | | | 576 | | | | 1,053 | | | | 627 | | | | | 1,253 |
| Total non-interest income | | | | 8,339 | | | | 7,986 | | | | 8,033 | | | | 7,447 | | | | | 8,201 |
| Salaries and employee benefits expense | | | | 8,197 | | | | 8,319 | | | | 8,089 | | | | 7,509 | | | | | 7,569 |
| Net occupancy expense | | | | 1,136 | | | | 1,296 | | | | 1,276 | | | | 1,104 | | | | | 1,060 |
| Data processing expense | | | | 1,119 | | | | 1,322 | | | | 1,137 | | | | 1,109 | | | | | 1,091 |
| Furniture and equipment expense | | | | 316 | | | | 321 | | | | 314 | | | | 319 | | | | | 316 |
| FDIC Insurance expense | | | | 498 | | | | 531 | | | | 471 | | | | 549 | | | | | 471 |
| Other non-interest expenses | | | | 2,720 | | | | 2,655 | | | | 2,528 | | | | 3,015 | | | | | 2,521 |
| Total non-interest expense | | | | 13,986 | | | | 14,444 | | | | 13,815 | | | | 13,605 | | | | | 13,028 |
| Net income before income tax expense | | | | 8,872 | | | | 7,705 | | | | 7,317 | | | | 3,900 | | | | | 6,415 |
| Income tax expense | | | | 2,507 | | | | 2,149 | | | | 2,336 | | | | 1,016 | | | | | 2,016 |
| Net income | | | $ | 6,365 | | | $ | 5,556 | | | $ | 4,981 | | | $ | 2,884 | | | | $ | 4,399 |
| | | | | | | | | | | | | | | |
| Weighted average shares - basic | | | | 13,701 | | | | 13,690 | | | | 13,645 | | | | 13,593 | | | | | 13,584 |
| Weighted average shares - diluted | | | | 13,807 | | | | 13,790 | | | | 13,718 | | | | 13,680 | | | | | 13,702 |
| | | | | | | | | | | | | | | |
| Net income per share, basic | | | $ | 0.46 | | | $ | 0.41 | | | $ | 0.37 | | | $ | 0.21 | | | | $ | 0.32 |
| Net income per share, diluted | | | | 0.46 | | | | 0.40 | | | | 0.36 | | | | 0.21 | | | | | 0.32 |
| Cash dividend declared per share | | | | 0.17 | | | | 0.17 | | | | 0.17 | | | | 0.17 | | | | | 0.17 |
| | | | | | | | | | | | | | | |
| Balance Sheet Data (at period end) | | | | | | | | | | | | | | | |
| Total loans | | | $ | 1,489,398 | | | $ | 1,477,304 | | | $ | 1,441,196 | | | $ | 1,435,462 | | | | $ | 1,412,178 |
| Allowance for loan losses | | | | 24,433 | | | | 22,933 | | | | 21,811 | | | | 20,000 | | | | | 19,839 |
| Total assets | | | | 1,881,122 | | | | 1,859,478 | | | | 1,801,977 | | | | 1,791,479 | | | | | 1,763,533 |
| Non-interest bearing deposits | | | | 251,481 | | | | 250,427 | | | | 232,201 | | | | 211,352 | | | | | 216,490 |
| Interest bearing deposits | | | | 1,211,298 | | | | 1,223,404 | | | | 1,202,813 | | | | 1,206,832 | | | | | 1,145,261 |
| Federal home loan bank advances | | | | 80,445 | | | | 70,448 | | | | 60,450 | | | | 60,453 | | | | | 90,456 |
| Subordinated debentures | | | | 40,900 | | | | 40,900 | | | | 40,900 | | | | 40,930 | | | | | 40,930 |
| Stockholders' equity | | | | 167,609 | | | | 162,035 | | | | 157,336 | | | | 153,614 | | | | | 153,265 |
| Total shares outstanding | | | | 13,707 | | | | 13,695 | | | | 13,683 | | | | 13,607 | | | | | 13,588 |
| Book value per share | | | | 12.23 | | | | 11.83 | | | | 11.50 | | | | 11.29 | | | | | 11.28 |
| Market value per share | | | | 24.82 | | | | 22.98 | | | | 22.75 | | | | 21.35 | | | | | 23.09 |
| |
S.Y. Bancorp, Inc. Financial Information |
| Third Quarter 2010 Earnings Release |
| |
| | | Five Quarter Comparison |
| | | 9/30/10 | | | 6/30/10 | | | 3/31/10 | | | 12/31/09 | | | 9/30/09 |
| Average Balance Sheet Data | | | | | | | | | | | | | | | |
| Average loans | | | $ | 1,484,741 | | | | $ | 1,460,147 | | | | $ | 1,438,138 | | | | $ | 1,422,930 | | | | $ | 1,391,207 | |
| Average assets | | | | 1,871,048 | | | | | 1,813,302 | | | | | 1,796,599 | | | | | 1,782,938 | | | | | 1,762,706 | |
| Average earning assets | | | | 1,760,255 | | | | | 1,703,151 | | | | | 1,695,669 | | | | | 1,686,836 | | | | | 1,666,277 | |
| Average total deposits | | | | 1,464,119 | | | | | 1,441,865 | | | | | 1,425,999 | | | | | 1,388,964 | | | | | 1,361,975 | |
| Average long-term debt | | | | 117,650 | | | | | 105,964 | | | | | 101,355 | | | | | 119,732 | | | | | 131,387 | |
| Average interest bearing liabilities | | | | 1,412,640 | | | | | 1,391,586 | | | | | 1,387,228 | | | | | 1,371,245 | | | | | 1,373,296 | |
| Average stockholders' equity | | | | 165,578 | | | | | 159,983 | | | | | 158,252 | | | | | 155,513 | | | | | 152,006 | |
| | | | | | | | | | | | | | | |
| Performance Ratios | | | | | | | | | | | | | | | |
| Annualized return on average assets | | | | 1.35 | % | | | | 1.23 | % | | | | 1.12 | % | | | | 0.64 | % | | | | 0.99 | % |
| Annualized return on average equity | | | | 15.25 | % | | | | 13.93 | % | | | | 12.76 | % | | | | 7.36 | % | | | | 11.48 | % |
| Net interest margin, fully tax equivalent | | | | 3.97 | % | | | | 3.97 | % | | | | 3.84 | % | | | | 3.72 | % | | | | 3.57 | % |
Non-interest income to total revenue, fully tax equivalent | | | | 32.15 | % | | | | 32.13 | % | | | | 33.33 | % | | | | 32.04 | % | | | | 35.38 | % |
| Efficiency ratio | | | | 53.93 | % | | | | 58.10 | % | | | | 57.31 | % | | | | 58.53 | % | | | | 56.20 | % |
| | | | | | | | | | | | | | | |
| Capital Ratios | | | | | | | | | | | | | | | |
| Average stockholders' equity to average assets | | | | 8.85 | % | | | | 8.82 | % | | | | 8.81 | % | | | | 8.72 | % | | | | 8.62 | % |
| Tier 1 risk-based capital | | | | 11.99 | % | | | | 11.83 | % | | | | 11.83 | % | | | | 11.66 | % | | | | 11.68 | % |
| Total risk-based capital | | | | 13.87 | % | | | | 13.71 | % | | | | 13.73 | % | | | | 13.55 | % | | | | 13.57 | % |
| Leverage | | | | 10.29 | % | | | | 10.36 | % | | | | 10.26 | % | | | | 10.16 | % | | | | 10.22 | % |
| | | | | | | | | | | | | | | |
| Loans by Type | | | | | | | | | | | | | | | |
| Commercial and industrial | | | $ | 336,594 | | | | $ | 315,462 | | | | $ | 299,878 | | | | $ | 336,889 | | | | $ | 336,395 | |
| Construction and development | | | | 174,546 | | | | | 182,436 | | | | | 200,529 | | | | | 204,653 | | | | | 198,586 | |
| Real estate mortgage - commercial investment | | | | 333,568 | | | | | 337,830 | | | | | 320,544 | | | | | 326,421 | | | | | 311,206 | |
| Real estate mortgage - owner occupied commercial | | | | 312,137 | | | | | 304,540 | | | | | 282,258 | | | | | 230,001 | | | | | 218,611 | |
| Real estate mortgage - 1-4 family residential | | | | 159,604 | | | | | 161,466 | | | | | 159,733 | | | | | 147,342 | | | | | 155,227 | |
| Home equity - 1st lien | | | | 40,428 | | | | | 41,043 | | | | | 39,676 | | | | | 41,644 | | | | | 39,566 | |
| Home equity - junior lien | | | | 95,368 | | | | | 98,119 | | | | | 101,126 | | | | | 108,398 | | | | | 113,132 | |
| Consumer | | | | 37,153 | | | | | 36,408 | | | | | 37,452 | | | | | 40,114 | | | | | 39,455 | |
| | | | | | | | | | | | | | | |
| Asset Quality Data | | | | | | | | | | | | | | | |
| Allowance for loan losses to total loans | | | | 1.64 | % | | | | 1.55 | % | | | | 1.51 | % | | | | 1.39 | % | | | | 1.40 | % |
| Allowance for loan losses to average loans | | | | 1.65 | % | | | | 1.57 | % | | | | 1.52 | % | | | | 1.41 | % | | | | 1.43 | % |
| Allowance for loan losses to non-performing loans | | | | 195.54 | % | | | | 166.13 | % | | | | 161.78 | % | | | | 165.28 | % | | | | 227.93 | % |
| Nonaccrual loans | | | $ | 8,485 | | | | $ | 9,640 | | | | $ | 9,546 | | | | $ | 10,455 | | | | $ | 7,166 | |
| Troubled debt restructuring | | | | 3,544 | | | | | 3,548 | | | | | 3,574 | | | | | 753 | | | | | 761 | |
| Loans - 90 days past due & still accruing | | | | 466 | | | | | 616 | | | | | 362 | | | | | 893 | | | | | 777 | |
| Total non-performing loans | | | | 12,495 | | | | | 13,804 | | | | | 13,482 | | | | | 12,101 | | | | | 8,704 | |
| OREO and repossessed assets | | | | 4,943 | | | | | 2,038 | | | | | 2,609 | | | | | 1,616 | | | | | 1,937 | |
| Total non-performing assets | | | | 17,438 | | | | | 15,842 | | | | | 16,091 | | | | | 13,717 | | | | | 10,641 | |
| Non-performing loans to total loans | | | | 0.84 | % | | | | 0.93 | % | | | | 0.94 | % | | | | 0.84 | % | | | | 0.62 | % |
| Non-performing assets to total assets | | | | 0.93 | % | | | | 0.85 | % | | | | 0.89 | % | | | | 0.77 | % | | | | 0.60 | % |
| Net charge-offs to average loans (2) | | | | 0.08 | % | | | | 0.09 | % | | | | 0.06 | % | | | | 0.37 | % | | | | 0.05 | % |
| Net charge-offs | | | | 1,195 | | | | $ | 1,262 | | | | $ | 884 | | | | $ | 5,314 | | | | $ | 713 | |
| | | | | | | | | | | | | | | |
| Other Information | | | | | | | | | | | | | | | |
| Total assets under management (in millions) | | | $ | 1,578 | | | | $ | 1,499 | | | | $ | 1,574 | | | | $ | 1,546 | | | | $ | 1,453 | |
| Full-time equivalent employees | | | | 473 | | | | | 474 | | | | | 471 | | | | | 470 | | | | | 467 | |
| (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) - Interim ratios 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
