Page 1

Stock Yards Bancorp Reports Record First Quarter Earnings of $ 22.7 Million or $ 0.99 per Diluted Share Quarter Highlighted by Agreement to Acquire Kentucky Bancshares LOUISVILLE , Ky . , April 21 , 2021 ( GLOBE NEWSWIRE ) 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 record earnings for the first quarter ended March 31 , 2021. Net income for the first quarter increased 72 % to $ 22.7 million , or $ 0.99 per diluted share , compared with net income of $ 13.2 million , or $ 0.58 per diluted share , for the first quarter of 2020. Strong core deposit growth , as well as significant fee and interest income from the Small Business Administration's ( " SBA " ) Paycheck Protection Program ( " PPP " ) , contributed to record profitability for the quarter . ( dollar amounts in thousands , except per share data ) Net interest income Provision for credit loss expense ( 6 ) Non - interest income Non - interest expenses Income before income tax expense Income tax expense Net income Net income per share , diluted Net interest margin Efficiency ratio ( 4 ) | -- Tangible common equity to tangible assets ( 1 ) Annualized re irn on average equity Annualized return on average assets $ $ $ 1Q21 37,825 $ ( 1,475 ) 13,844 24,973 28,171 5,461 22,710 $ 0.99 $ 3.39 % 48.29 % 8.97 % 20.71 % 1.96 % 4Q20 36,252 $ 500 13,698 29,029 20,421 EXHIBIT 99.1 2,685 17,736 $ 0.78 $ 3.35 % 58.06 % 9.28 % 16.27 % 1.56 % 1Q20 32,446 5,925 12,536 23,575 15,482 2,250 13,232 0.58 3.71 % 52.35 % 10.48 % 13.18 % 1.43 % " Stock Yards again delivered record earnings for the quarter , supported by strong revenue generation , substantial deposit growth , a release of credit loss reserves and controlled operating expenses , " said James A. ( Ja ) Hillebrand , Chairman and Chief Executive Officer . " In addition to our financial performance , a highlight of the quarter was the signing of a definitive agreement to acquire Kentucky Bancshares , Inc. This transaction expands our presence into the attractive Central Kentucky market and represents a complementary fit with our organization . The combination of our two companies provides the opportunity to create efficiencies and enhance the value of the combined entity while offering Kentucky Bank customers broader product offerings , increased lending capabilities and an expanded branch delivery system that stretches throughout the Louisville , Indianapolis and Northern Kentucky / Cincinnati metropolitan markets . We remain on track to welcome Kentucky Bank to the Stock Yards family with an anticipated closing date during the second quarter . " Kentucky Bancshares , headquartered in Paris , Kentucky , is the holding company for Kentucky Bank , which operates 19 branches in 11 communities throughout Central Kentucky serving the Lexington , Kentucky metropolitan statistical area and each of its contiguous counties . As of March 31 , 2021 , Kentucky Bancshares reported approximately $ 1.3 billion in assets , $ 766 million in loans , $ 1.0 billion in deposits and $ 113 million in tangible common equity . Another key activity for the first quarter related to the additional COVID - 19 stimulus relief , which was signed into law in late 2020 , allowing for a second round of PPP funding through May 31 , 2021. The program offers new PPP loans for companies that did not receive PPP funds in 2020 in addition to “ second draw " loans targeted at hard - hit businesses that exhausted their initial PPP proceeds . Consistent with the first round , the Company was very active in this program in the first quarter of 2021 , closing over 1,600 loans with total originations in excess of $ 241 million with fee income of nearly $ 9 million received that will be recognized over the earlier of five years or loan forgiveness . The Company is estimating that approximately 40 % of these loans will be forgiven in 2021. As these borrowers are not required to make payments for 10 months , it is probable that a significant portion of the borrowing base will defer forgiveness until early 2022 . " Due to an improvement in forecasted economic indicators utilized during the current quarter , we recorded a net benefit of $ 1.2 million to provision for credit losses for loans during the first quarter . This compares to a $ 5.6 million provision expense for loans in the first quarter a year ago . We feel that we are well positioned as we navigate through the pandemic , having built up significant loan loss reserves , excluding PPP loans , of 1.68 % ( 2 ) at March 31 , 2021 , ” said Hillebrand . Additional key factors impacting the first quarter of 2021 results included : • Record diluted quarterly EPS exceeding the previous record set in the fourth quarter of 2020 . COVID - 19 related loan deferrals declined significantly to 0.45 % of total loans ( excluding PPP ) at the end of the first quarter of 2021 from 1.24 % of total loans three months earlier . • Average loan balance growth , excluding PPP , totaled $ 95 million , or 3 % , on a linked quarter basis . • Deposit balances remained at record levels , with additional PPP and federal stimulus payments contributing to strong quarterly deposit growth of $ 211 million . In total , deposit balances have increased $ 1.0 billion over the last twelve months . • Net interest margin ( NIM ) compressed 32 basis points to 3.39 % compared to the first quarter a year ago . NIM continued to be negatively impacted by loan yield contraction accompanied with ongoing excess balance sheet liquidity offset by the positive impact of PPP . • Despite ongoing contraction in loan yields , net interest income increased $ 5.4 million , or 17 % , over the first quarter of 2020 , boosted by $ 7.0 million in PPP income and a significant decline in cost of funds . • Non - interest income increased 10 % over the first quarter of 2020 , reflecting record debit / credit card income and treasury management fees and continued