(

) 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, plus origination of consumer mortgages and investment product sales. WM&T provides 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 the performance of the 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 follows:

			Wealth
	Commercial		management
(In thousands)	banking		and trust		Total

Year ended December 31, 2017
Net interest income	$	103,302	$	301	$	103,603
Provision for loan losses		2,550		–		2,550
Investment management and trust services		–		20,505		20,505
All other non-interest income		24,615		–		24,615
Non-interest expense		78,752		12,239		90,991
Income before income taxes		46,615		8,567		55,182
Income tax expense		14,080		3,059		17,139
Net income	$	32,535	$	5,508	$	38,043
Segment assets	$	3,237,656	$	1,990	$	3,239,646

Year ended December 31, 2016
Net interest income	$	96,986	$	268	$	97,254
Provision for loan losses		3,000		–		3,000
Investment management and trust services		–		19,155		19,155
All other non-interest income		24,382		–		24,382
Non-interest expense		70,230		11,290		81,520
Income before income taxes		48,138		8,133		56,271
Income tax expense		12,340		2,904		15,244
Net income	$	35,798	$	5,229	$	41,027
Segment assets	$	3,037,394	$	2,087	$	3,039,481
Year ended December 31, 2015
Net interest income	$	88,124	$	194	$	88,318
Credit for loan losses		750		–		750
Investment management and trust services		–		18,026		18,026
All other non-interest income		21,924		–		21,924
Non-interest expense		62,748		10,650		73,398
Income before income taxes		46,550		7,570		54,120
Income tax expense		14,238		2,695		16,933
Net income	$	32,312	$	4,875	$	37,187
Segment assets	$	2,816,373	$	428	$	2,816,801