Stock Yards Bancorp, Inc., headquartered in Louisville, Kentucky, is the holding
company for Stock Yards Bank & Trust Company (“Bank”). Bancorp,
which was incorporated in 1988 in Kentucky, is registered with, and subject
to supervision, regulation and examination by the Board of Governors of the
Federal Reserve System. The Bank is wholly owned and is a state chartered bank.
Because Bancorp has no significant operations of its own, its business and that
of the Bank are essentially the same. The operations of the Bank are fully reflected
in the consolidated financial statements of Bancorp. Accordingly, references
to “Bancorp” in this document may encompass both the holding company
and the Bank. At the 2014 annual meeting, shareholders approved a resolution
to amend Bancorp’s restated articles of incorporation to change its name
from S.Y. Bancorp, Inc. to Stock Yards Bancorp, Inc.
Stock Yards Bank & Trust Company is the banking subsidiary of Bancorp and
was chartered in 1904. The Bank is headquartered in Louisville, Kentucky and
provides commercial and personal banking services in the Louisville, Kentucky,
Indianapolis, Indiana and Cincinnati, Ohio metropolitan markets through 37 full
service banking offices. The Bank is chartered under the laws of the Commonwealth
of Kentucky. In addition to traditional commercial and personal banking activities,
the Bank has an investment management and trust department offering a wide range
of investment management, trust, employee benefit plan and estate administration,
and financial planning services. The Bank also originates and sells single-family
residential mortgages. Additionally, the Bank offers securities brokerage services
via its branch network through an arrangement with a third party broker-dealer.
See Note 25 to Bancorp’s consolidated financial statements for information
relating to the Bank’s business segments and “Item 2. Properties”
for information regarding owned and leased properties.
In April, 2013, Bancorp completed the acquisition of 100% of the outstanding
shares of THE BANCorp, Inc. (“Oldham”), parent company of THE BANK
– Oldham County, Inc. As a result of the transaction, THE BANK –
Oldham County merged into Stock Yards Bank & Trust Company. Since the acquisition
date, results of operations acquired in the Oldham transaction have been included
in Bancorp’s financial results.
Bancorp offers a variety of secured loans, including commercial lines of credit,
commercial term loans, real estate, construction, home equity, consumer and
other loans. Bancorp’s loans are secured by real estate (both residential
and commercial) primarily in Bancorp’s market area. In instances where
borrowers are unable to repay their loans from us and there has been deterioration
in the value of the loan collateral, Bancorp could experience higher loan losses
which could have a material adverse effect on financial condition, results of
operations, and ultimately capital.
Bancorp originates, sells and services residential mortgage loans. Changes
in interest rates and pricing decisions by our loan competitors affect demand
for Bancorp’s residential mortgage loan products, the revenue realized
on the sale of loans and revenues received from servicing such loans for others,
ultimately reducing Bancorp’s net income. New regulations, increased regulatory
reviews, and/or changes in the structure of the secondary mortgage markets which
Bancorp utilizes to sell mortgage loans may be introduced and may increase costs
and make it more difficult to operate a residential mortgage origination business.
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