Stock Yards Bancorp, Inc. (SYBT): Business Model Canvas [11-2024 Updated]
- ✓ Fully Editable: Tailor To Your Needs In Excel Or Sheets
- ✓ Professional Design: Trusted, Industry-Standard Templates
- ✓ Pre-Built For Quick And Efficient Use
- ✓ No Expertise Is Needed; Easy To Follow
Stock Yards Bancorp, Inc. (SYBT) Bundle
In the competitive landscape of banking, Stock Yards Bancorp, Inc. (SYBT) stands out with a robust Business Model Canvas that highlights its strategic approach to serving diverse customer segments. By leveraging key partnerships, advanced technology, and a commitment to personalized service, SYBT effectively addresses the needs of individual consumers, small businesses, and high-net-worth individuals. Discover how this well-rounded model drives their success and fosters lasting relationships within the community.
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Key Partnerships
Collaborations with Federal Home Loan Bank
The Federal Home Loan Bank (FHLB) plays a significant role in Stock Yards Bancorp's funding strategy. As of September 30, 2024, Bancorp's average FHLB advances increased by $87 million, or 29%, compared to the same period in 2023, totaling approximately $384 million. This collaboration allows Bancorp to secure lower-cost funding options, essential for supporting its loan growth and managing liquidity in a competitive market.
| Metrics | September 30, 2024 | September 30, 2023 | Variance |
|---|---|---|---|
| Average FHLB Advances | $384 million | $297 million | +29% |
| Cost of FHLB Borrowings | 2.75% | 1.79% | +96 bps |
Partnerships with Local Businesses for Financial Services
Stock Yards Bancorp has established strong partnerships with local businesses to enhance its financial service offerings. The bank focuses on providing tailored banking solutions that meet the unique needs of local enterprises. As of September 30, 2024, total loans increased by $661 million, or 12%, driven largely by growth in commercial loans, reflecting its commitment to supporting local business growth.
| Metrics | September 30, 2024 | September 30, 2023 | Variance |
|---|---|---|---|
| Total Loans | $6.17 billion | $5.51 billion | +12% |
| Commercial Loans Growth | 27% | N/A | N/A |
Relationships with Investment Firms for Wealth Management
Stock Yards Bancorp maintains strategic relationships with investment firms to bolster its wealth management services. The Wealth Management & Trust (WM&T) division reported revenue growth of $2.8 million, or 9%, for the nine months ended September 30, 2024, driven by strong equity market performance. This partnership allows Bancorp to provide comprehensive financial planning and investment management services to its clients, enhancing customer retention and satisfaction.
| Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 | Variance |
|---|---|---|---|
| WM&T Revenue | $33.6 million | $30.8 million | +9% |
| Percentage of Total Non-Interest Income | 44.1% | 43.8% | +0.3% |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Key Activities
Providing a wide range of banking services
Stock Yards Bancorp, Inc. (SYBT) offers a comprehensive suite of banking services designed to cater to various customer needs. As of September 30, 2024, total deposits amounted to approximately $6.87 billion, reflecting a 5% increase from the previous year. The bank's emphasis on customer service and competitive rates has driven this growth.
Key components of their banking services include:
- Checking and Savings Accounts: The bank provides various personal and business checking and savings accounts with attractive interest rates.
- Loan Products: SYBT offers a range of loans including personal loans, mortgages, and commercial loans.
- Online and Mobile Banking: The bank has invested in technology to enhance the customer experience through digital banking platforms.
Managing loans and deposits
Effective management of loans and deposits is crucial for SYBT's profitability. As of September 30, 2024, total loans reached $6.12 billion, marking a 12% increase compared to the previous year. The average loan balance rose by 12% over the same period. Additionally, the bank's allowance for credit losses (ACL) on loans increased by $7 million, or 9%, reflecting proactive risk management strategies.
Loan categories have shown significant growth:
| Loan Type | Amount ($ billion) | Year-over-Year Growth (%) |
|---|---|---|
| Commercial & Industrial | 2.15 | 17% |
| Construction & Development | 1.07 | 27% |
| Residential Real Estate | 1.35 | 9% |
| Consumer Loans | 1.55 | 10% |
Offering investment and wealth management services
SYBT has distinguished itself by providing investment and wealth management services that contribute significantly to non-interest income. For the nine months ended September 30, 2024, non-interest income totaled $71.72 million, a 6% increase from the previous year. Wealth management and trust (WM&T) services accounted for approximately 45% of this non-interest income.
Key aspects of their investment and wealth management services include:
- Investment Management: SYBT manages assets for individuals and institutions, focusing on customized investment strategies.
- Retirement Planning: The bank provides retirement planning services, including IRAs and 401(k) management.
- Trust Services: SYBT offers various trust services, including estate planning and asset protection strategies.
The table below illustrates the growth in WM&T revenue:
| Service Type | Revenue ($ million) | Year-over-Year Growth (%) |
|---|---|---|
| Wealth Management Fees | 14.5 | 9% |
| Trust Services | 10.9 | 8% |
| Retirement Planning | 7.3 | 10% |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Key Resources
Strong capital base and equity
As of September 30, 2024, Stock Yards Bancorp's stockholders' equity totaled $934 million, representing a 9% increase from $858 million at December 31, 2023. This rise was attributed to net income of $82.8 million and an improvement in accumulated other comprehensive income (AOCI) of $17.5 million, offset by $26.7 million in cash dividends declared .
The total capital ratio remains robust, with total stockholders’ equity to total assets at 11.07% as of September 30, 2024, compared to 10.50% at December 31, 2023 .
Experienced management team
Stock Yards Bancorp boasts a seasoned management team with extensive experience in banking and financial services. The leadership has successfully navigated the institution through fluctuating economic conditions, demonstrating strong strategic oversight. The management's expertise has been crucial in achieving significant loan growth of $661 million, or 12%, compared to September 30, 2023 .
Advanced banking technology and infrastructure
Stock Yards Bancorp has invested in advanced banking technology to enhance operational efficiency and customer service. The bank utilizes a robust digital banking platform that supports a wide range of services, including mobile banking and online account management. This technology investment has contributed to a 6% increase in total average interest-earning assets, amounting to $8.44 billion as of September 30, 2024 .
| Financial Metric | Value | Change |
|---|---|---|
| Stockholders' Equity | $934 million | +9% |
| Total Capital Ratio | 11.07% | +0.57% |
| Total Average Interest-Earning Assets | $8.44 billion | +3% |
| Loan Growth | $661 million | +12% |
| Net Income (Nine months ended Sept 30, 2024) | $82.8 million | -1% |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Value Propositions
Personalized banking solutions tailored to customer needs
Stock Yards Bancorp, Inc. (SYBT) focuses on providing tailored banking solutions that cater to individual customer needs. This personalized approach enables the bank to build strong relationships with its clients, enhancing customer loyalty and satisfaction. As of September 30, 2024, total loans increased by $661 million, or 12%, illustrating the bank's ability to meet diverse borrowing requirements.
Competitive interest rates on loans and deposits
SYBT offers competitive interest rates, which are essential for attracting and retaining customers. The average yield on the overall loan portfolio rose to 6.06% for the nine months ended September 30, 2024, compared to 5.50% for the same period in the previous year. The bank's net interest margin (NIM) decreased to 3.26%, down 18 basis points from the previous year, reflecting competitive pressures in the market. The total interest income (FTE) increased by $50.9 million, or 20%, for the nine months ended September 30, 2024, indicating success in maintaining competitive rates.
| Financial Metric | September 30, 2024 | September 30, 2023 | Variance |
|---|---|---|---|
| Total Loans | $6.28 billion | $5.57 billion | +12% |
| Average Yield on Loans | 6.06% | 5.50% | +56 bps |
| Net Interest Margin (NIM) | 3.26% | 3.44% | -18 bps |
| Total Interest Income (FTE) | $302.8 million | $251.9 million | +20% |
Comprehensive wealth management services
SYBT also differentiates itself through its comprehensive wealth management services, which include investment management, financial and retirement planning, and trust and estate services. For the nine months ended September 30, 2024, non-interest income increased by $3.9 million, or 6%, largely due to strong wealth management and treasury management fees. Wealth management and trust (WM&T) services accounted for 44.1% of total non-interest income, showcasing the importance of these services to the bank's overall strategy.
| Wealth Management Metrics | September 30, 2024 | September 30, 2023 | Variance |
|---|---|---|---|
| WM&T Revenue | $10.8 million | $9.9 million | +9% |
| Non-Interest Income from WM&T | 44.1% | 43.8% | +0.3% |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Customer Relationships
Focus on building long-term relationships
Stock Yards Bancorp, Inc. (SYBT) emphasizes the importance of long-term customer relationships as a cornerstone of its business strategy. As of September 30, 2024, the total assets of SYBT increased by $267 million, or 3%, reaching $8.44 billion compared to $8.17 billion at December 31, 2023. This growth is indicative of the bank's ability to attract and retain customers through personalized services and relationship management.
Dedicated customer service teams
SYBT maintains dedicated customer service teams to enhance customer satisfaction and loyalty. The bank's non-interest expenses totaled $146.5 million for the nine months ended September 30, 2024, up from $137.8 million for the same period in 2023, largely driven by increased compensation expenses associated with these service teams. Compensation and employee benefits accounted for approximately 62.3% of total non-interest expenses during this period.
| Metric | September 30, 2024 | September 30, 2023 | Variance |
|---|---|---|---|
| Net Income | $82.8 million | $83.8 million | $(1.0 million) |
| Diluted Earnings per Share | $2.82 | $2.86 | $(0.04) |
| Total Loans | $6.1 billion | $5.4 billion | $661 million |
| Total Deposits | $6.5 billion | $6.2 billion | $323 million |
Community engagement and support initiatives
SYBT actively engages with the community through various support initiatives, which are integral to building strong customer relationships. The bank's wealth management and trust services (WM&T) income increased by $901,000, or 9%, for the three months ending September 30, 2024, reflecting the bank's commitment to providing tailored financial solutions to customers based on their needs.
The total assets under management (AUM) for SYBT's WM&T services grew from approximately $7.16 billion at December 31, 2023, to $7.32 billion at September 30, 2024. This increase showcases the bank's successful strategies in engaging clients through personalized service and community involvement.
| Service Type | AUM (in thousands) | September 30, 2024 | December 31, 2023 |
|---|---|---|---|
| Investment Advisory | $2,803,146 | $2,736,814 | $2,591,561 |
| Personal Trust | $2,049,924 | $1,614,335 | $1,922,294 |
| Company Retirement | $688,358 | $54,368 | $57,486 |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Channels
Branch network across multiple regions
As of September 30, 2024, Stock Yards Bancorp operates a branch network consisting of 72 locations throughout Louisville, central, eastern, and northern Kentucky, as well as the metropolitan statistical areas (MSAs) of Indianapolis, Indiana, and Cincinnati, Ohio.
Online banking platform for easy access
The online banking platform has been a significant channel for Stock Yards Bancorp, offering customers the ability to manage their accounts, transfer funds, and pay bills conveniently. The platform has contributed to an increase in customer engagement and satisfaction, with user metrics reflecting a steady growth in active online banking users. As of September 30, 2024, the bank reported an increase in total deposits of $323 million, or 5%, compared to September 30, 2023, attributed in part to the ease of access provided by the online platform.
Mobile banking applications for convenience
Stock Yards Bancorp offers a mobile banking application that enhances customer convenience, allowing users to perform banking transactions on-the-go. The mobile app includes features such as mobile check deposit, account balance monitoring, and transaction history access. This channel has played a crucial role in attracting younger demographics and tech-savvy customers, contributing to the bank's overall growth strategy. The app's adoption has coincided with a 12% increase in average interest-bearing deposits for the nine months ended September 30, 2024, reflecting customer preference for mobile banking solutions.
| Channel | Details | Impact on Performance |
|---|---|---|
| Branch Network | 72 locations across Kentucky, Indiana, and Ohio | Deposits increased by $323 million (5%) YoY |
| Online Banking | Comprehensive online services for account management | Contributed to overall deposit growth |
| Mobile Banking | Features include mobile check deposits and account monitoring | 12% increase in average interest-bearing deposits |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Customer Segments
Individual consumers seeking personal banking
Stock Yards Bancorp, Inc. (SYBT) serves individual consumers through a range of personal banking products. As of September 30, 2024, the bank reported total loans amounting to $6.28 billion, with a significant portion allocated to personal loans and home equity lines of credit. The average interest rate on loans was 6.17%, reflecting the current higher interest rate environment.
Small to medium-sized businesses
SYBT actively targets small to medium-sized businesses (SMBs) by offering tailored financial services including commercial loans, lines of credit, and treasury management solutions. In the nine months ended September 30, 2024, commercial and industrial loans accounted for approximately $1.25 billion of total loans. The bank's total commercial real estate loans were reported at $1.6 billion, showcasing its commitment to supporting business operations.
High-net-worth individuals for wealth management
For high-net-worth individuals, SYBT provides specialized wealth management and trust services. As of September 30, 2024, the Wealth Management & Trust (WM&T) services generated $71.7 million in non-interest income, representing 27.6% of total revenues. The bank's assets under management (AUM) increased by 9%, driven by equity market appreciation and a growing client base.
| Customer Segment | Loan Portfolio (in millions) | Average Interest Rate (%) | Non-Interest Income (in millions) |
|---|---|---|---|
| Individual Consumers | 6,280 | 6.17 | N/A |
| Small to Medium-Sized Businesses | 1,250 | N/A | N/A |
| High-Net-Worth Individuals | N/A | N/A | 71.7 |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Cost Structure
Employee salaries and benefits
As of September 30, 2024, total non-interest expenses for Stock Yards Bancorp amounted to $146.5 million, which represented a $8.7 million increase, or 6%, compared to the same period in 2023. Compensation and employee benefits comprised approximately 62.3% of total non-interest expenses. Specifically, compensation expenses increased by $7.0 million, or 10%, attributed to annual merit-based salary increases and higher bonus levels.
Net full-time equivalent employees totaled 1,068 as of September 30, 2024. Employee benefits also saw an increase of $969,000, or 7%, primarily driven by higher health insurance claims.
Operational costs for branch maintenance
Occupancy and equipment expenses, which include depreciation, rent, property taxes, utilities, and maintenance for the bank's branches, experienced a slight variation. For the nine months ended September 30, 2024, net occupancy expense increased by less than 1%. Stock Yards Bancorp operates 72 branches across various locations, including Louisville, central, and northern Kentucky, as well as Indianapolis and Cincinnati.
Technology investments for banking systems
Technology and communication expenses increased by $1.8 million, or 14%, for the nine months ended September 30, 2024, reflecting ongoing investments in technology, including security and compliance-related software upgrades. These expenses are crucial for maintaining and improving the quality of customer delivery channels and internal resources.
Additionally, debit and credit card processing expenses rose by $640,000, or 13%, driven by increased transaction volumes.
| Cost Component | Amount (in millions) | Change (%) | Percentage of Total Non-interest Expenses |
|---|---|---|---|
| Employee Salaries and Benefits | $91.2 | 10% | 62.3% |
| Occupancy and Equipment | $25.0 | Varied | 17.0% |
| Technology and Communication | $14.5 | 14% | 9.9% |
| Other Non-interest Expenses | $15.8 | Varied | 10.8% |
| Total Non-interest Expenses | $146.5 | 6% |
Stock Yards Bancorp, Inc. (SYBT) - Business Model: Revenue Streams
Interest income from loans
Total interest income (FTE) for the nine months ended September 30, 2024, was $302.8 million, an increase of $50.9 million, or 20%, compared to the same period in 2023.
Interest and fee income (FTE) on loans increased by $52.1 million, or 24%, to $271.7 million for the nine months ended September 30, 2024, driven by a higher rate environment and significant average loan growth. The yield on the overall loan portfolio increased by 56 basis points to 6.06% for the nine months ended September 30, 2024, compared to 5.50% for the same period in the prior year.
Fees from banking services and wealth management
Non-interest income increased by $3.9 million, or 6%, for the nine months ended September 30, 2024, compared to the same period in 2023, largely due to strong wealth management and trust (WM&T) fees, treasury management fees, and card income.
WM&T services comprised 44.1% of total non-interest income for the three months ended September 30, 2024. The following table summarizes the sources of non-interest income:
| Source | Q3 2024 (in $ thousands) | Q3 2023 (in $ thousands) | Variance (in $ thousands) |
|---|---|---|---|
| Wealth management and trust services | 10,931 | 10,030 | 901 |
| Deposit service charges | 2,314 | 2,272 | 42 |
| Debit and credit card income | 5,083 | 4,870 | 213 |
| Treasury management fees | 2,939 | 2,635 | 304 |
| Mortgage banking income | 1,112 | 814 | 298 |
| Net investment product sales commissions and fees | 915 | 791 | 124 |
| Bank owned life insurance | 634 | 569 | 65 |
| Other | 928 | 613 | 315 |
| Total Non-Interest Income | 24,797 | 22,896 | 1,901 |
Investment income from securities and other assets
As of September 30, 2024, total investment securities decreased by $234 million, or 16%, to $1.24 billion compared to December 31, 2023. This decline was driven by scheduled maturities within the treasury portfolio and normal paydown activity. Interest income from the investment portfolio experienced a decrease of $3.1 million, or 12%, for the nine months ended September 30, 2024, compared to the same period in 2023. The corresponding yield on the portfolio was 2.06% for both periods.
Average investment securities declined by $213 million, or 12%, for the nine months ended September 30, 2024, compared to the same period in 2023. This was primarily due to significant scheduled maturities within the treasury portfolio.
Updated on 16 Nov 2024
Resources:
- Stock Yards Bancorp, Inc. (SYBT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stock Yards Bancorp, Inc. (SYBT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stock Yards Bancorp, Inc. (SYBT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.