(

)

Segments

Bancorp

’s principal activities include commercial banking and wealth management and trust (WM&T). 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. WM&T provides financial 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 Stock Yards Bancorp, Inc. are involved in the commercial banking segment. Bancorp has goodwill of

$682,000

related to a bank acquisition in

1996

which has been assigned to the commercial banking segment. Assets assigned to WM&T consist of premises and equipment, net of accumulated depreciation.

Selected financial information by

business segment for the

three

and

nine

month periods ended

September 30, 2017

and

2016

follows:

			Wealth
	Commercial		management
(in thousands)	banking		and trust		Total

Three months ended September 30, 2017
Net interest income	$	26,089	$	75	$	26,164
Provision for loan losses		150		-		150
Wealth management and trust services		-		5,025		5,025
All other non-interest income		6,078		-		6,078
Non-interest expense		18,491		2,826		21,317
Income before income taxes		13,526		2,274		15,800
Income tax expense		3,284		812		4,096
Net income	$	10,242	$	1,462	$	11,704

Segment assets	$	3,153,886	$	2,027	$	3,155,913

Three months ended September 30, 2016
Net interest income	$	24,690	$	70	$	24,760
Provision for loan losses		1,250		-		1,250
Wealth management and trust services		-		4,800		4,800
All other non-interest income		6,558		-		6,558
Non-interest expense		17,722		2,796		20,518
Income before income taxes		12,276		2,074		14,350
Income tax expense		3,142		741		3,883
Net income	$	9,134	$	1,333	$	10,467

Segment assets	$	2,936,542	$	2,123	$	2,938,665

			Wealth
	Commercial		management
(in thousands)	banking		and trust		Total

Nine months ended September 30, 2017
Net interest income	$	76,350	$	230	$	76,580
Provision for loan losses		1,650		-		1,650
Wealth management and trust services		-		15,272		15,272
All other non-interest income		18,303		-		18,303
Non-interest expense		54,756		9,055		63,811
Income before income taxes		38,247		6,447		44,694
Income tax expense		9,295		2,302		11,597
Net income	$	28,952	$	4,145	$	33,097

Segment assets	$	3,153,886	$	2,027	$	3,155,913

Nine months ended September 30, 2016
Net interest income	$	71,985	$	194	$	72,179
Provision for loan losses		2,500		-		2,500
Wealth management and trust services		-		14,219		14,219
All other non-interest income		17,999		-		17,999
Non-interest expense		51,914		8,337		60,251
Income before income taxes		35,570		6,076		41,646
Income tax expense		9,064		2,171		11,235
Net income	$	26,506	$	3,905	$	30,411

Segment assets	$	2,936,542	$	2,123	$	2,938,665