Stock Yards Bancorp Stock

Stock Yards Bancorp, Inc. operates as the bank holding company for Stock Yards Bank & Trust Company (SYB or the bank) that provides services in Louisville, central, eastern and northern Kentucky, as well as the Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through full service banking center locations.

Segments

The company operates through two segments: Commercial Banking and WM&T:

Commercial Banking provides a full range of loan and deposit products to individual consumers and businesses in all its markets through retail lending, mortgage banking, deposit services, online banking, mobile banking, private banking, commercial lending, commercial real estate lending, leasing, treasury management services, merchant services, international banking, correspondent banking and other banking services. The company also offers securities brokerage services via its banking center network through an arrangement with a third party broker-dealer in the Commercial Banking segment.

WM&T provides investment management, financial & retirement planning and trust & estate services, as well as retirement plan management for businesses and corporations in all markets in which Bancorp operates.

Loan Portfolio

As of December 31, 2023, the company's loan portfolio included commercial real estate - non-owner occupied; commercial real estate - owner occupied; commercial and industrial - term; commercial and industrial - term -Paycheck Protection Program (PPP); commercial and industrial - lines of credit; residential real estate - owner occupied; residential real estate - non-owner occupied; construction and land development; home equity lines of credit; consumer; leases; and credit cards.

Commercial Real Estate - Owner Occupied - Includes non-farm, non-residential real estate loans for a variety of commercial property types and purposes, and is typically secured by commercial offices, industrial buildings, warehouses or retail buildings where the owner of the building occupies the property. The primary source of repayment is the cash flow from the ongoing operations and activities conducted by the party (or affiliate) who owns the property.

Commercial Real Estate - Non-Owner Occupied - Includes investment real estate loans secured by similar collateral as above. The primary source of income for this loan type is typically rental income associated with the property. This category also includes apartment or multifamily residential buildings (secured by five or more dwelling units).

Commercial and Industrial - Represents loans for C&I purposes to sole proprietorships, partnerships, corporations and other business enterprises, whether secured (other than those that meet the definition of a loan secured by real estate) or unsecured, single payment or installment. This category includes loans originated for financing capital expenditures, loans secured by accounts receivable, inventory and other business assets, such as equipment, non-real estate related construction loans in addition to non-real estate loans guaranteed by the SBA. Bancorp originates these loans for a variety of purposes across various industries. This portfolio has been segregated between term loans and revolving lines of credits based on the varied characteristics of these individual loan structures.

Residential Real Estate - Includes non-revolving (closed-end) first and junior lien loans secured by residential real estate primarily in Bancorp's market areas. This portfolio has been segregated between owner occupied and non-owner occupied status, as the investment nature of the latter poses additional credit risks to Bancorp.

Construction and Land Development - Consists of loans to finance the ground up construction or improvement of owner occupied and non-owner occupied residential and commercial properties and loans secured by raw or improved land. The repayment of C&D loans is generally dependent upon the successful completion of the improvements by the builder for the end user, the leasing of the property, or sale of the property to a third party. Repayment of land secured loans is dependent upon the successful development and sale of the property, the sale of the land as is, or the outside cash flow of the owners to support the retirement of the debt. The company's construction loans may convert to real estate-secured loans once construction is completed or principal amortization payments begin, assuming the borrower retains financing with the bank.

Home Equity Lines of Credit -These are revolving (open-ended) lines of credit.

Consumer - Represents loans to individuals for personal expenditures that may be secured or unsecured. This includes pre-arranged overdraft plans, secured automobile loans and other consumer-purpose loans.

Leases - Represents a variety of equipment leasing options to businesses.

Credit Cards - Represents revolving loans to businesses and to a lesser extent, consumers.

Deposits

As of December 31, 2023, the company's deposits included non-interest bearing demand deposits, interest bearing demand deposits, savings deposits, money market deposits, and time deposits.

Securities

As of December 31, 2023, the company's securities included U.S. Treasury and other U.S. Government obligations; government sponsored enterprise obligations; mortgage backed securities - government agencies; obligations of states and political subdivisions; and other.

Business Strategy

The company's strategy focuses on building strong relationships with our customers, employees and communities, while maintaining disciplined underwriting standards and a commitment to operational efficiency. By leveraging the company's comprehensive suite of products and services, it strives to expand its footprint in our home market of Louisville, Kentucky while also cultivating attractive growth opportunities in its other markets of central, eastern and northern Kentucky, Indianapolis, Indiana and Cincinnati, Ohio, and opportunistically pursuing acquisitions.

The key components of our strategy are to continue to focus on customer relationships and our community banking model; continue to grow and pursue diversified revenue streams; and maintain focus on organic growth.

Supervision and Regulation

The company is registered with, and subject to supervision, regulation and examination by, the Board of Governors of the Federal Reserve System. The bank is registered with, and subject to supervision, regulation and examination by the FDIC and the Kentucky Department of Financial Institutions.

The company, as a registered bank holding company, is subject to the supervision of and regulation by the Federal Reserve Board under the Bank Holding Company Act of 1956. The bank is subject to the supervision of the Kentucky Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC). The FDIC insures the deposits of the bank to the current maximum of $250,000 per depositor. The company is subject to the provisions of Kentucky's banking laws regulating bank acquisitions and certain activities of controlling bank shareholders.

The bank is subject to the Bank Secrecy Act and the USA Patriot Act. These statutes and related rules and regulations impose requirements and limitations on specified financial transactions and accounts and other relationships intended to guard against money laundering and terrorism financing.

History

The company was founded in 1904. The company was incorporated in 1988. It was formerly known as S.Y. Bancorp, Inc. and changed its name to Stock Yards Bancorp, Inc. in 2014.