Stock Yards Bancorp, Inc. · NASDAQ:SYBT
Stock Yards Bancorp — Stephens Bank Forum 2020
32 slides from Stock Yards Bancorp's conference presentation, Sep 22, 2020
Slide 1: Stock Yards Bancorp Stephens Bank Forum 2020
Stock Yards Bancorp Stephens Bank Forum 2020 Virtual Event September 22nd, 2020
Slide 2: Cautionary statement for investors
Cautionary statement for investors This presentation contains forward-looking statements about future financial performance, business plans and strategies of Stock Yards Bancorp, Inc. Because forward- looking statements involve risks and uncertainties, actual results may differ materially from those
Slide 3: COVID-19 pandemic
COVID-19 pandemic • Generally followed our Pandemic Plan that was in place and updated in November 2019 • Geographically diversified our key operational teams by dividing them and having them work from different locations • Identified at risk employees and immediately arranged for them to work from
Slide 4: Customer segment profiles affected by COVID-19
Customer segment profiles affected by COVID-19 Industry Total exposure % of gross loans Recreation / entertainment $56 million 2.0% Restaurant / bar $30 million 1.0% Travel related $24 million 0.8% Investment Commercial Real Total exposure % of gross loans Estate Shopping center $58 million 2.0% Lod
Slide 5: SBA Payroll Protection Plan
SBA Payroll Protection Plan As of June 30, 2020 • 3,250 SBA payroll protection plan loans originated • $647 million total • $20.0 million in origination fees received • 338 new clients with $85 million in PPP loans – $28 million new credits already approved 5
Slide 6: COVID-19 related loan deferrals
COVID-19 related loan deferrals COVID-19 loan deferrals as of June 30, 2020 Commercial deferrals by loan type (000’s) % of total Constructio Loans loan n Type of loan # of loans (000’s) portfolio* $25,424 6% Commercial 839 $432,252 15% CRE – Owner Consumer 261 $ 70,038 2% $82,979 CRE-Non-owner 19% O
Slide 7: Strong capital structure
Strong capital structure Key ratios and per share data as of June 30, 2020 Equity / total assets 9.69% TCE / tangible assets 9.39% Total risk-based 13.50% Tier 1 risk-based 12.39% Leverage 9.50% Note: Tangible common equity to tangible assets is a non-GAAP financial measure. See “Reconciliation of N
Slide 8: Company profile
Company profile • Founded in 1904 • NASDAQ Global Select – SYBT • Headquartered in Louisville, KY. • 43 locations in Louisville, Indianapolis, and Cincinnati MSAs • $4.3 billion in assets at June 30, 2020 • $3.2 billion Wealth Management & Trust AUM at June 30, 2020 8
Slide 9: Louisville area major employers
Louisville area major employers 2 production facilities World-wide air hub 9
Slide 10: Over three decades of growth
Over three decades of growth $66,067 $70,000 $60,000 Compound Annual Growth 1989 – 2019 • Net Income = 13% $50,000 • Earnings per share = 13% $34,822 $40,000 $18,912 $30,000 $16,308 $20,000 $9,706 $3,101 $1,678 $10,000 $- 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 201
Slide 11: Three-year financial highlights
Three-year financial highlights 2019 2018 2017 Net interest income $ 125.2 $ 114.4 $ 103.7 Wealth management and trust 22.6 21.5 20.5 income Net income 66.1 55.5 38.0 Earnings per share (diluted) 2.89 2.42 1.66 Total assets $ 3,724 $ 3,303 $ 3,240 Net interest margin 3.81% 3.83% 3.64% Return on aver
Slide 12: Superior performance as measured against peers
Superior performance as measured against peers Banks $1.5 - $7.0 billion in assets Return on Return on average assets average equity 50th percentile 1.24% 10.51% 75th percentile 1.44% 12.47% 90th percentile 1.67% 14.55% Stock Yards $3.7 billion 1.90% 17.10% For year ended December 31, 2019 per S&P G
Slide 13: Efficiency ratio
Efficiency ratio Consistent investment in technology and branch network expansion 68.0% 60.8% 60.6% 58.7% 57.4% 57.4% 56.5% 56.1% 58.0% 58.9% 56.0% 56.6% 55.9% 48.0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Efficiency ratio 13
Slide 14: Long term success for shareholders
Long term success for shareholders 4 Institutions ROE > 15% (including SYBT) Consecutive increases in 17 Institutions net income since 2010 (3) 104 Institutions Profitable for the last 10 years (2) Exchange traded depositories with assets between 164 Institutions $1B and $5B (1) Source: S&P Global M
Slide 15: Six months highlights
Six months highlights June 30, 2020 2019 Change Net interest income $ 66.0 $ 60.5 9% Net income 26.6 32.2 (17%) Earnings per share (diluted) $ 1.17 $ 1.40 (16%) Net interest margin 3.47% 3.85% Return on average assets 1.33% 1.93% Return on average equity 13.0% 17.3% 15
Slide 16: Key drivers for 2020 and beyond
Key drivers for 2020 and beyond • Continued attraction and retention of talented people • Commercial banking focus leading to full relationships • Organic business model with sustainable growth in large mature markets complimented by acquisition • Growing core deposit base • Diverse and enviable non
Slide 17: Commercial banking leads to full relationships
Commercial banking leads to full relationships • Full-service bank relationships built by introducing our bank partners when their expertise is needed • 31 experienced commercial bankers with average of 25 years in banking • 15 business bankers with average of 23 years in banking • 10 commercial rea
Slide 18: Loan production vs. net loan growth
Loan production vs. net loan growth $950 $918 $769 $750 $690 $714 $665 $536 $550 $489 $442 $446 $395 $350 $317 $296 $272 $147 $165 $139 $163 $150 $73 $98 $104 $36 $40 $55 -$50 (1) (2) -$11 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q 2Q (3) Loan production Net loan growth 2019 2020 1) Exclud
Slide 19: Loan growth by market
Loan growth by market Market 2010 2Q 2020* Louisville $1,283 85% $2,364 68% (established 1904) Indianapolis 148 10% 571 17% (established 2003) Cincinnati 77 5% 529 15% (established 2007) Total loans $1,508 100% $3,464 100% *Includes Payroll Protection loans Dollars in millions 19
Slide 20: Growing core deposit base
Growing core deposit base $3,623 $3,025 $2,711 $2,332 $2,480 $2,540 $1,936 $2,077 $1,566 $1,725 2011 2012 2013 2014 2015 2016 2017 2018 2019 2Q 2020 % core/total deposits 97% 97% 98% 98% 98% 98% 99% 97% 97% 97% Savings and money market Demand interest bearing Demand non-interest bearing Time deposit
Slide 21: Deposit breakdown
Deposit breakdown Total Public Brokered Funds CD's, 1.50% 1.35% Cost of deposits $234,000 $30,000 1.00% 0.91% 0.65% 0.71% 0.51% 0.43% 0.50% 0.27% 0.21% 0.28% 0.17% 0.16% 0.24% 0.00% Total Commercial Total Retail $2,020,000 $1,443,000 Deposit composition at end of period 2009 2Q 2020 Non-interest bea
Slide 22: Non-interest income YTD 2Q 2020
Non-interest income YTD 2Q 2020 $875 $857 $355 Wealth management Debit and credit cards $2,083 Treasury management Mortgage banking $2,468 Deposit service charges $11,944 Investment products Bank-owned life insurance $2,533 Other $4,043 Non-interest income as % of total income Stock Yards Bank 28% D
Slide 23: Wealth management and trust – an enviable model
Wealth management and trust – an enviable model • $3.3 billion AUM at December 31, 2019 ‐ generated $22.6 million revenue for the year with a 45% pre-tax margin ‐ contributed 35¢ to EPS ‐ represented 12% of company earnings • 45% of company non-interest income attributable to wealth management and t
Slide 24: Key investments points
Key investments points • Industry leading performance • Consistent growth strategy • Diversified revenue streams distinguished by wealth management business with growing card income • Expanding presence in large markets • Positioned for sustainable, profitable growth • We want long term shareholders
Slide 25: Earnings and dividends per share
Earnings and dividends per share 36% $2.89 $3.00 Earnings per share $2.50 Dividends per share 37% $2.00 $1.57 $1.50 29% 57% $1.04 $0.85 $0.79 $1.00 24% $0.59 $0.45 $0.45 $0.50 $0.25 $0.11 $0.00 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Dividend payout ratio Per share information adjuste
Slide 26: Supplemental information
Supplemental information 26
Slide 27: Loan portfolio detail
Loan portfolio detail $44 $15 $9 $104 CRE-Investment - 23% Commercial (C&I) - 22% $255 C&I PPP loans - 18% $815 CRE-Owner occupied - 14% $355 RE 1-4 family - 10% Construction & development - 7% HELOC - 3% $475 Consumer - 1% $765 Leases - < 1% Commercial credit cards - < 1% $630 As of June 30, 2020 D
Slide 28: Unused credit trends (excluding construction loans)
Unused credit trends (excluding construction loans) $867 $837 $830 $842 $880 $1,028 $1,110 $1,211 $1,240 $1,436 $1,360 $1,410 $1,500 $767 $716 $914 $596 $613 $1,200 $547 $529 $292 $305 $344 $393 $426 $900 51% 47% 47% 66% 51% 64% 51% $600 59% 53% 52% 49% 35% $669 $644 $300 $575 $532 $486 $499 $563 $6
Slide 29: Asset quality
Asset quality 0.80% 2.50% 0.70% 2.01% 1.93% 2.00% 0.60% 1.66% 1.60% 0.50% 1.39% 1.33% 1.38% 1.50% 0.40% 1.12% 1.14% 1.10% 1.04% 1.03% 1.00% 0.94% 0.30% 1.00% 0.20% 0.08% 0.07% 0.07% 0.50% -0.01% 0.20% 0.16% 0.59% 0.40% 0.55% 0.60% 0.60% 0.18% 0.17% 0.00% 0.10% 0.00% 0.00% 2007 2008 2009 2010 2011 20
Slide 30: Deposit detail
Deposit detail $30 $74 Savings and money market - 26% $958 Demand interest-bearing - 31% $313 Demand noninterest-bearing - 32% Time deposits ≤ $250K - 8% $1,147 Time deposits > $250K - 2% $1,205 Brokered deposits - 1% Total core deposits $3,623 97.2% Total deposits - $3,727 As of June 30, 2020 Dolla
Slide 31: Wealth management asset detail
Wealth management asset detail Assets Under Management $3.2 billion as of June 30, 2020 Assets by account type Real estate Assets by class 1% Non-participant Custody directed employee Other 3% Money 1% benefit plans market 1% Individual Institutional funds investment bonds 5% management Personal tru
Slide 32: Wealth management and trust – peer comparison
Wealth management and trust – peer comparison Assets Under Managed Gross Net Asset Management Assets as Revenue Income (1) Net State Rank (in billions) % of Total (in millions) ROA (in millions) Return Old National IN 108 $ 6.7 55% $37.0 0.30% $17.0 0.14% Busey Bank IL 123 6.4 70 34.0 0.37 9.8 0.11