(24) Segments

Bancorp’s, principal activities include commercial banking and investment management and trust. Commercial banking provides a full range of loan and deposit products to individual consumers and businesses. Commercial banking also includes Bancorp’s mortgage origination and securities brokerage activity. Investment management and trust provides wealth management services including investment management, trust and estate administration, and retirement plan services.

Financial information for each business segment reflects that which is specifically identifiable or allocated based on an internal allocation method. Income taxes are allocated based on the effective federal income tax rate adjusted for any tax exempt activity. All tax exempt activity and provision for loan losses have been allocated to the commercial banking segment. Measurement of performance of business segments is based on the management structure of Bancorp and is not necessarily comparable with similar information for any other financial institution. Information presented is also not necessarily indicative of the segments’ operations if they were independent entities.

Principally, all of the net assets of S.Y. Bancorp, Inc. are involved in the commercial banking segment. Bancorp has goodwill of $682,000 related to the 1996 purchase of a bank in southern Indiana. This purchase facilitated Bancorp’s expansion in southern Indiana. Goodwill has been assigned to the commercial banking segment.

Selected financial information by business segment follows:

			Investment
	Commercial		management
(In thousands)	banking		and trust		Total
Year ended December 31, 2013
Net interest income	$	77,144	$	154	$	77,298
Provision for loan losses	6,550		—		6,550
Investment management and trust services	—		16,287		16,287
All other non-interest income	22,654		61		22,715
Non-interest expense	61,891		9,461		71,352
Income before income taxes	31,357		7,041		38,398
Tax expense	8,740		2,488		11,228
Net income	$	22,617	$	4,553	$	27,170

Year ended December 31, 2012
Net interest income	$	73,800	$	150	$	73,950
Provision for loan losses	11,500		—		11,500
Investment management and trust services	—		14,278		14,278
All other non-interest income	24,110		69		24,179
Non-interest expense	57,323		8,149		65,472
Income before income taxes	29,087		6,348		35,435
Tax expense	7,412		2,222		9,634
Net income	$	21,675	$	4,126	$	25,801

Year ended December 31, 2011
Net interest income	$	70,592	$	140	$	70,732
Provision for loan losses	12,600		—		12,600
Investment management and trust services	—		13,841		13,841
All other non-interest income	19,382		21		19,403
Non-interest expense	51,863		7,718		59,581
Income before income taxes	25,511		6,284		31,795
Tax expense	5,992		2,199		8,191
Net income	$	19,519	$	4,085	$	23,604