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Mar 31, 2021
Stock Yards Bancorp Q1 2021 Earnings Report
Stock Yards Bancorp reported record earnings due to strong core deposit growth and PPP program.
Key Takeaways
Stock Yards Bancorp reported a record first quarter with net income increasing 72% to $22.7 million, or $0.99 per diluted share, driven by strong core deposit growth and PPP related fee and interest income. The company also announced an agreement to acquire Kentucky Bancshares.
Net income increased 72% to $22.7 million, or $0.99 per diluted share.
Strong core deposit growth and PPP contributions drove record profitability.
Definitive agreement signed to acquire Kentucky Bancshares, expanding presence into Central Kentucky.
Recorded a net benefit of $1.2 million to provision for credit losses for loans.
Stock Yards Bancorp
Stock Yards Bancorp
Forward Guidance
Stock Yards Bancorp is focused on integrating Kentucky Bancshares and managing the impact of the COVID-19 pandemic.
Positive Outlook
- Anticipated closing of Kentucky Bancshares acquisition during the second quarter.
- Expected efficiencies and enhanced value from the combination with Kentucky Bancshares.
- Broader product offerings and increased lending capabilities for Kentucky Bank customers.
- Expanded branch delivery system throughout multiple metropolitan markets.
- Continued evaluation of dividend rate increases to maintain strong capital levels.
Challenges Ahead
- Uncertainty regarding the realization of anticipated benefits from the Kentucky Bancshares merger.
- Risk of delays or increased costs in integrating Kentucky Bancshares' operations.
- Potential diversion of management's attention due to the merger.
- Challenges in integrating and retaining key employees.
- Potential adverse effects of the COVID-19 pandemic on the combined company's business and financial condition.