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)

Segments

Bancorp’s principal activities include commercial banking and wealth 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 investment products sales activity. Wealth management and trust 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

thousand related to a bank acquisition in

1996

which has been assigned to the commercial banking segment. Assets assigned to the Wealth Management & Trust Group (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, 2018

and

2017

follows:

			Wealth
	Commercial		management
(In thousands)	banking		and trust		Total

Three months ended September 30, 2018
Net interest income	$	28,462	$	59	$	28,521
Provision for loan losses		735		-		735
Wealth management and trust services		-		5,380		5,380
All other non-interest income		6,046		-		6,046
Non-interest expense		18,774		3,007		21,781
Income before income taxes		14,999		2,432		17,431
Income tax expense		3,027		528		3,555
Net income	$	11,972	$	1,904	$	13,876

Segment assets	$	3,322,943	$	1,854	$	3,324,797
Three months ended September 30, 2017
Net interest income	$	26,098	$	75	$	26,173
Provision for loan losses		150		-		150
Wealth management and trust services		-		5,025		5,025
All other non-interest income		5,920		-		5,920
Non-interest expense		18,342		2,826		21,168
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

			Wealth
	Commercial		management
(In thousands)	banking		and trust		Total

Nine months ended September 30, 2018
Net interest income	$	84,312	$	192	$	84,504
Provision for loan losses		2,705		-		2,705
Wealth management and trust services		-		16,224		16,224
All other non-interest income		17,546		-		17,546
Non-interest expense		55,572		9,372		64,944
Income before income taxes		43,581		7,044		50,625
Income tax expense		8,237		1,529		9,766
Net income	$	35,344	$	5,515	$	40,859

Segment assets	$	3,322,943	$	1,854	$	3,324,797
Nine months ended September 30, 2017
Net interest income	$	76,394	$	230	$	76,624
Provision for loan losses		1,650		-		1,650
Wealth management and trust services		-		15,272		15,272
All other non-interest income		17,820		-		17,820
Non-interest expense		54,317		9,055		63,372
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