Stock Yards Bancorp, Inc. (SYBT) SEC Filing 10-K Annual report for the fiscal year ending Sunday, December 31, 2017
Stock Yards Bancorp Reports Results for the Fourth Quarter and Full Year 2017
Revenues Increase to Record Amounts, While the Impact of New Tax Legislation Drives Down Net Income
LOUISVILLE, Ky.--(BUSINESS WIRE)--January 25, 2018--Stock Yards Bancorp, Inc. (NASDAQ: SYBT), parent company of Stock Yards Bank & Trust Company, with offices in the Louisville, Indianapolis and Cincinnati metropolitan markets, today reported results for the fourth quarter and year ended December 31, 2017. Total revenue, comprising net interest income and non-interest income, increased 6% to $38.6 million for the fourth quarter of 2017 from $36.4 million for the year-earlier quarter. Net income for the fourth quarter of 2017 totaled $4.9 million or $0.22 per diluted share compared with $10.6 million or $0.46 per diluted share for the fourth quarter of 2016. Total revenue for 2017 increased 6% to $148.7 million from $140.8 million for 2016. Net income for the year ended December 31, 2017, was $38.0 million or $1.66 per diluted share compared with $41.0 million or $1.80 per diluted share for 2016. Net income for the fourth quarter and full year 2017 reflected a non-cash charge of $5.9 million or $0.25 per diluted share to revalue the Company's net deferred tax asset in connection with federal income tax legislation enacted on December 22, 2017.
Key aspects of the Company's performance for the year included:
- Solid loan growth during 2017, which increased the Company's loan portfolio almost 5% for 2018;
- Consistently strong net interest margin;
- Credit quality remained at historically strong levels;
- Continued growth in fee income, led by the Wealth Management and Trust Group; and
- Solid returns on average assets and equity of 1.25% and 11.61%, respectively, despite the negative impact of 0.20% on return on average assets and 1.81% on return on average equity due to the year-end remeasurement charge noted above.
"We are pleased to announce a strong conclusion to 2017, marked by solid performance in many important areas, such as loan production and loan growth, net interest margin and wealth management and trust," said David P. Heintzman, Chairman and Chief Executive Officer. "Alongside that, credit quality remained exceptionally strong. These factors resulted in record pretax results for the Company in 2017 and, together with the solid loan pipeline we have in place as we head into 2018 and the positive effect of lower tax rates in the future, position us to maintain an attractive growth trajectory in the coming year.
"With the passage of the Tax Cuts and Jobs Act last month, an immediate recalculation of the value of our net deferred tax asset was required and recorded as additional income tax expense in the fourth quarter," Heintzman continued. "While this had an impact on 2017 earnings, the lower statutory rate going forward should allow us to more than recoup during 2018 the remeasurement charge we recorded in 2017, and future periods will continue to benefit from lower income taxes. More broadly, lower tax rates are widely expected to promote growth and expansion across the business spectrum, including small and middle-market companies – our core clientele – leading to higher capital investment and new job creation, all of which would be positive for the Company's outlook."
The following information was filed by Stock Yards Bancorp, Inc. on Thursday, January 25, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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- Form Type: Annual
- Number of times amended: 1
- Accession Number: 0001437749-18-004523
- Filing Date: Tuesday, March 13, 2018
- Accepted by the SEC: Tuesday, March 13, 2018 5:22:59 PM EST
- Period Ending: December 2017