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Sep 30, 2021
Stock Yards Bancorp Q3 2021 Earnings Report
Reported strong earnings due to solid organic loan growth and record levels of operating income.
Key Takeaways
Stock Yards Bancorp reported a strong third quarter with net income of $23.2 million, or $0.86 per diluted share. The results were driven by strong organic loan growth and record levels of operating income, highlighted by wealth management and trust, card income, and treasury management fees. The successful merger with Kentucky Bancshares also contributed to top-line revenue growth.
Net income for the third quarter was $23.2 million, or $0.86 per diluted share.
Strong organic loan growth across all markets and record levels of operating income contributed to strong profitability.
The merger with Kentucky Bancshares early in the second quarter contributed to top-line revenue growth.
A merger with Commonwealth Bancshares, Inc. was announced and is expected to provide additional growth opportunities.
Forward Guidance
The company anticipates the merger with Commonwealth Bancshares will provide tremendous opportunities to generate additional growth going forward and remains on track to welcome Commonwealth to the Stock Yards family with an anticipated legal closing date during the fourth quarter.
Positive Outlook
- Merger with Commonwealth Bancshares expected to generate additional growth.
- The transaction builds upon prominent market share in the Louisville market.
- The transaction expands presence in Shelby County and Northern Kentucky markets.
- The transaction bolsters wealth management capabilities, adding significant wealth and trust assets.
- Anticipated legal closing date with Commonwealth during the fourth quarter.
Challenges Ahead
- The possibility that any of the anticipated benefits of the recent Kentucky Bancshares merger and proposed Commonwealth Bancshares merger will not be realized or will not be realized within the expected time period
- The risk that integration of acquired operations with those of Stock Yards will be materially delayed or will be more costly or difficult than expected
Historical Earnings Impact
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Avg. Return Before/After Earnings
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