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Stock Yards Bancorp Reports Second Quarter Earnings Second Quarter Highlighted by the Completed Acquisition of Kentucky Bancshares Along With Solid Organic Loan Growth and Record Levels of Non Interest Income LOUISVILLE , Ky . , July 28 , 2021 ( GLOBE NEWSWIRE ) Stock Yards Bancorp , Inc. ( NASDAQ : SYBT ) , parent company of Stock Yards Bank & Trust Company , with offices in Louisville , Central and Eastern Kentucky , as well as the Indianapolis and Cincinnati metropolitan markets , today reported earnings for the second quarter ended June 30 , 2021. Net income for the second quarter was $ 4.2 million , or $ 0.17 per diluted share , reflecting $ 18.1 million in merger expenses and $ 7.4 million in merger related credit loss expense for the quarter . This compares to net income of $ 13.4 million , or $ 0.59 per diluted share , for the second quarter of 2020. The results for the second quarter of 2021 also included strong organic loan growth and record levels of non - interest income highlighted by wealth management and trust along with card income and treasury management fees . ( 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 return on average equity ( 7 ) Annualized return on average assets ( 7 ) -- $ $ $ 2Q21 41,584 ● $ 4,147 15,788 48,177 5,048 864 4,184 $ 0.17 $ 3.36 % 83.86 % 8.57 % 3.25 % 0.32 % 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 % EXHIBIT 99.1 $ $ $ 2Q20 33,528 7,025 12,622 23,409 15,716 2,348 13,368 0.59 3.27 % 50.67 % 9.39 % 12.90 % 1.25 % " The highlight of the second quarter was completing the acquisition of Kentucky Bancshares , " said James A. ( Ja ) Hillebrand , Chairman and Chief Executive Officer . " The merger added $ 1.3 billion in assets , $ 742 million in loans , and $ 1.0 billion in total deposits to our quarter end balances , and is already having an impact on our operating results , increasing the scale and reach of the Company and providing tremendous opportunity for future revenue growth . This strategic combination enhances our entry into the attractive Central and Eastern Kentucky markets , including the Lexington MSA , Kentucky's second largest market . While costs associated with the merger impacted second quarter earnings , we believe that the majority of merger related expenses are behind us . " " We are on track for our system conversion scheduled for August , " Hillebrand continued . “ Although additional work remains to complete the full integration of the two companies and realize the expected operating synergies , we are exceptionally pleased with the progress we have made through the dedicated efforts of our employees and expect that , similar to our two prior acquisitions , the acquisition of Kentucky Bancshares will result in significant benefits to our expanding group of clients , communities , employees and shareholders . " With the completion of the Kentucky Bancshares acquisition , at June 30 , 2021 , the Company had $ 6.1 billion in assets , $ 4.2 billion in net loans and $ 5.3 billion in total deposits . The combined enterprise , with 63 branch offices , has and will continue to benefit from a diversified geographic footprint with significant growth opportunities . Another key activity for the first half of 2021 related to the additional COVID - 19 stimulus relief , which was signed into law in late 2020 , and allowed for a second round of PPP funding through early May . " Consistent with the first round , our team of lenders rose to the challenge . Our participation in the second round of PPP once again stood out in our markets – driving PPP loan originations over $ 900 million in total . Our expertise and ultimate success in helping our customers not only allowed us to close over 2,100 loans with total originations in excess of $ 260 million for the second round , but also added new client relationships with strong future growth opportunities , " said Hillebrand . " Due to further economic forecast improvements , updates to our modeling and continued solid performance of the loan portfolio during the current quarter , we recorded a net benefit of $ 2.7 million to provision for credit losses for legacy Stock Yards loan portfolio , excluding loans acquired from Kentucky Bancshares . This compares to $ 5.6 million in credit loss expense for loans in the second quarter a year ago . Additionally , in accordance with CECL , we adde an additional $ 7.4 million in merger related credit loss expense associated with the non - Purchase Credit Deteriorated Kentucky Bancshares loans we acquired , bringing our total allowance for credit losses on loans to $ 59 million . We feel that we are well - positioned for future growth , having established credit loan loss reserves to total loans ( excluding PPP loans ) , of 1.55 % ( 2 ) at June 30 , 2021 , " said Hillebrand . Additional key factors impacting the second quarter of 2021 results included : Loan growth within the legacy Stock Yards portfolio , excluding loans acquired from Kentucky Bancshares and PPP loans , totaled $ 81 million , or 3 % , compared to the first quarter of 2021 and $ 269 million , or 10 % , compared to the second quarter a year ago . • Average legacy Stock Yards loan balance growth totaled $ 109 million compared to the first quarter of 2021 and $ 220 million compared to the second quarter a year ago . • Despite ongoing loan yield contraction , net interest income increased $ 8.1 million , or 24 % , boosted by $ 6.9 million in PPP income , the aforementioned