Stock Yards Bancorp (SYBT) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $27.6M, or $0.94 per diluted share, nearly flat year-over-year and up from $25.9M in Q1 2024.

• Total loans grew 12% year-over-year to $6.07B, with record loan growth and stable asset quality.

• Deposit balances increased 6% year-over-year, mainly from time deposit promotions, offsetting declines in non-interest bearing deposits.

• Wealth Management & Trust and Treasury Management posted record revenues, supported by strong equity markets and customer growth.

• Net interest income for Q2 rose 2% to $62.1M, but NIM compressed 16 bps to 3.26% due to higher funding costs.

Financial highlights

• Q2 2024 net income: $27.6M; diluted EPS: $0.94; ROA: 1.35%; ROE: 12.64%.

• Net interest income (FTE) Q2: $62.1M (+2%); NIM Q2: 3.26% (-16 bps YoY, +6 bps sequentially).

• Non-interest income rose 3% in Q2, led by record WM&T and treasury management fees.

• Non-interest expenses increased 7% on higher compensation and technology costs.

• Book value per share increased to $30.44; tangible common equity per share rose to $23.22.

Outlook and guidance

• Management anticipates NIM expansion in the second half of 2024 as deposit cost pressures moderate and interest rate cuts are projected.

• Loan growth expected to remain strong, with continued focus on funding through FHLB advances and core deposits.

• Asset quality remains solid; management expects the CRE portfolio to continue performing well despite sector headwinds.

• The company anticipates further growth opportunities in both banking and wealth management across its diversified geographic footprint.