Stock Yards Bancorp Inc.
Annual Report 2015

Plain-text annual report

2 0 1 5 S U M M A R Y A N N U A L R E P OR T PAGE 1 2015 Financial Highlights FOR THE YEAR Net income Cash dividends declared PER COMMON SHARE Net income per share, basic Net income per share, diluted Cash dividends declared Book value at year end Market price at year end AVERAGES FOR THE YEAR Total assets Loans Deposits Stockholders’ equity AT YEAR END Total assets Loans Deposits Stockholders’ equity RATIOS Return on average assets Return on average equity Efficiency 2015 2014 Change $ $ 37,187 14,248 2.53 2.48 0.96 19.20 37.79 $ 2,573,901 1,919,201 2,152,411 274,451 $ 2,816,801 2,033,007 2,371,702 286,519 $ $ $ $ 34,822 12,924 % 6.8 10.2 2.39 2.36 0.88 17.63 33.34 2,398,430 1,773,011 2,010,823 245,425 2,563,868 1,868,550 2,123,627 259,895 % % % 5.9 5.1 9.1 8.9 13.3 7.3 8.2 7.0 11.8 9.9 8.8 11.7 10.2 % 1.44 13.55 56.81 % 1.45 14.19 59.09 bp (1) (64) (228) bp = basis point = 1/100 of a percent NET INCOME (in millions of dollars) $ 3000 $ 130 117 104 91 78 65 52 39 26 13 0 TOTAL REVENUE (in millions of dollars) 06 07 08 09 10 11 12 13 14 15 $ 2.50 DILUTED EPS 2.25 2.00 1.75 1.50 1.25 1.00 0.75 0.50 0.25 0.00 06 07 08 09 10 11 12 13 14 15 $ $ 40 36 32 28 24 20 16 12 8 4 0 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT TOTAL ASSETS (in millions of dollars) 06 07 08 09 10 11 12 13 14 15 STOCK PRICE 06 07 08 09 10 11 12 13 14 15 2700 2400 2100 1800 1500 1200 900 600 300 0 38.0 34.2 30.4 26.6 22.8 19.0 15.2 11.4 7.6 3.8 0.0 06 07 08 09 10 11 12 13 14 15 DIVIDENDS PER SHARE $ 06 07 08 09 10 11 12 13 14 15 “For the 10-year period ended with 2015, Stock Yards Bancorp’s total return increased 111% compared with a 4% increase for a commonly used NASDAQ bank benchmark. ”PAGE 2 diluted share for 2014. This was on top of the 28% increase in net income that we reported last year. Returns on average equity and assets at 13.55% and 1.44%, respectively, remained high for 2015 versus 14.19% and 1.45%, respectively, for 2014. Similarly, the Company sustained solid capital levels in 2015, again exceeding required thresholds necessary to be considered a “well capitalized” institution, the top capital rating for financial institutions. Because of its consistently strong and growing equity position, Stock Yards Bancorp has continued to increase cash dividends, pursuing capital strategies to enhance stockholder value. In our view, stockholders should share directly in the success of the Company and benefit concretely from its growth. We also firmly believe in consistency and predictability: since our very first dividend payment to stockholders, we have never reduced or suspended dividend payments. These beliefs again guided our actions during 2015. In November, our Board of Directors raised the quarterly cash dividend rate 4% to $0.25 per common share, or an indicated annual rate of $1.00 per share. This was the second increase for 2015 and the eighth since December 2010, for a cumulative increase of more than 47% over the past five years. Totaling $0.96 per share for 2015, cash dividends to stockholders represented a payout of approximately 38% of earnings for the year, and with the most recent increase in November, the Company’s forward dividend yield was 2.6% as of December 31, 2015. As I have stated before, we believe the best way to assess a company’s performance is to measure it over a suitable timeframe. Although many banks prefer to focus on total return over one year, three years or five years, those short time horizons can mask true long-term performance and often STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT David P. Heintzman Chairman and Chief Executive Officer To Our Stockholders Building on the momentum we have established over the past several years, Stock Yards Bancorp registered another sound performance for 2015. Remarkable loan growth, continued strong credit quality trends and higher fee-based income all combined to push annual earnings per share to a record level for the fifth consecutive year. These results, leading to attractive returns and growing dividends for stockholders, have enabled Stock Yards Bancorp to extend its long record of consistent growth to remain at the forefront of the nation’s best-performing community banks. FINANCIALS AT A GLANCE Net income for 2015 increased 7% to a record $37.2 million or $2.48 per diluted share compared with net income of $34.8 million or $2.36 per ignore cyclical fluctuations. While a result, opened two new branches to provide the infrastructure and investment management and trust department provides us with CONCLUSION the Company’s total return for support needed to service our local customers. That market each of those periods exceeded expansion continues to exceed our expectations. those of our peers, we at Stock Yards Bancorp strive for consistent, profitable growth and, in turn, an attractive long-term returns for stockholders – because we believe that’s what investors value most. For the 10-year period ended with 2015, Stock Yards Bancorp’s total return increased In tandem with loan portfolio growth, credit quality metrics remained at very strong levels during 2015. Moreover, metrics that serve as early indicators of credit stress, such as past due balances, also remained favorable, further indicating the soundness of our portfolio. These positive trends, which now extend over the past two years, have enabled the Company to reach asset quality levels not experienced since before the 2008 financial crisis. Simultaneously, attractive deposit trends also occurred during 2015, 111% compared with a 4% increase for a commonly used NASDAQ bank providing funding for loan growth. For the year, we added $248 benchmark. In our view, steady and reliable wins the race every time. million in deposits for an increase of 12%. LOAN GROWTH FEE-BASED INCOME Net loan growth continued to drive our performance during 2015, As I mentioned earlier, higher fee-based income played an important both in terms of higher net income and earning assets. During 2015, role in our growth and profitability for the year. Our platforms for we added $164 million, or almost 9%, to our portfolio for the year, generating this non-interest income accounted for approximately following a similar increase for 2014. This portfolio growth was $40 million or more than 31% of total revenue in 2015, a level well significant not merely in amount, but also from the perspective of ahead of peers. time. As an institution founded in 1904, it took us a little more than 100 years to reach $1 billion in loans, and then just 10 more years to double our loan portfolio to $2 billion, organically, one loan at a time. None of this would have been possible if not for our employees’ Importantly, these sources of revenue also balance and diversify revenue growth over time to dedication, determination and unwavering focus on delivering reduce overall fluctuations superior customer service. Our portfolio growth for 2015 underscored the Bank’s success in achieving rapid expansion in loan production, which reached a record level for the fourth straight year. Importantly, the acceleration we The most significant and help extend our record for reliable and steady growth. witnessed in 2015 was shared across our entire banking footprint, source of fee income, contributing almost one-half of total but it was especially evident in the Cincinnati market due to our non-interest income for 2015, is our investment management and expansion into the northern Kentucky area during 2015. There we trust department. Ranking among the top trust companies in the were able to attract several talented and experienced lenders and, as country and with total assets of $2.2 billion under management, our meaningful competitive differentiation within the community We are excited to begin 2016 in a strong position, ready to capitalize banking arena. Coming off a remarkably good year in 2014, we anticipated that investment management and trust business would be down slightly for the year, and it was. However, due to the generation of net new business well ahead of levels for the prior year, revenue growth resumed in the fourth quarter of 2015. While we remain optimistic that the investment management and trust department will deliver stronger growth in 2016, we recognize that increased market volatility may affect near-term results. further on our momentum from last year and leverage the opportunities that continue to arise in our business and across our markets. The growth we accomplished in 2015 validates the strategies we have put in place to expand our business, diversify our revenue streams, generate attractive returns over the long term through higher earnings and dividend increases, and remain consistent in our performance. Considering this outlook, along with our enviable footprint across three economically attractive markets, we believe Stock Yards Bancorp remains poised for further growth. Moreover, our solid capital base provides us with the financial All other non-interest income categories combined to make a flexibility to take advantage of market disruptions as industry significant contribution to revenue for the year, particularly consolidation continues and strengthens our ability to increase mortgage banking which delivered solid results in 2015 by increasing future dividends. 31% over the prior year. Demand for purchase mortgages and mortgage refinancings remained generally robust throughout the year. VALIDATION As we continue to work to enhance our total return to stockholders and build on our reputation as a high-performing community bank, it stockholder value. We are indeed grateful for your continued support for the Company. On behalf of all of us at Stock Yards Bancorp, please accept our sincere thanks for your ongoing confidence as we work to enhance David P. Heintzman Chairman and Chief Executive Officer is gratifying to see Wall Street take notice. We received the fourth annual Raymond James Community Bankers Cup – for the fourth consecutive year. It recognized top performance in 2015 by 30 exchange-traded banks with assets between $500 million and $10 billion. Additionally last year, Stock Yards Bancorp once again was named to the KBW Bank Honor Roll, an annual selection based on a bank’s 10-year performance record. Only 25 banks were named to this exclusive ranking last year, and of those 25 selected, 23 – including Stock Yards Bancorp – repeated from the prior-year honor roll. While these accolades point to an impressive track record for our company, they also reflect our dedication to prudent and consistent growth over the long term, a principle that continues to guide us. “Remarkable loan growth, continued strong credit quality trends and higher fee-based income all combined to push annual earnings per share to a record level for the fifth consecutive year.”diluted share for 2014. This was on top of the 28% increase in net income that we reported last year. Returns on average equity and assets at 13.55% and 1.44%, respectively, remained high for 2015 versus 14.19% and 1.45%, respectively, for 2014. Similarly, the Company sustained solid capital levels in 2015, again exceeding required thresholds necessary to be considered a “well capitalized” institution, the top capital rating for financial institutions. Because of its consistently strong and growing equity position, Stock Yards Bancorp has continued to increase cash dividends, pursuing capital strategies to enhance stockholder value. In our view, stockholders should share directly in the success of the Company and benefit concretely from its growth. We also firmly believe in consistency and predictability: since our very first dividend payment to stockholders, we have never reduced or suspended dividend payments. These beliefs again guided our actions during 2015. In November, our Board of Directors raised the quarterly cash dividend rate 4% to $0.25 per common share, or an indicated annual rate of $1.00 per share. This was the second increase for 2015 and the eighth since December 2010, for a cumulative increase of more than 47% over the past five years. Totaling $0.96 per share for 2015, cash dividends to stockholders represented a payout of approximately 38% of earnings for the year, and with the most recent increase in November, the Company’s forward dividend yield was 2.6% as of December 31, 2015. As I have stated before, we believe the best way to assess a company’s Building on the momentum we have established over the past several years, Stock Yards Bancorp registered another sound performance for 2015. Remarkable loan growth, continued strong credit quality trends and higher fee-based income all combined to push annual earnings per share to a record level for the fifth consecutive year. These results, leading to attractive returns and growing dividends for stockholders, have enabled Stock Yards Bancorp to extend its long record of consistent growth to remain at the forefront of the nation’s best-performing community banks. FINANCIALS AT A GLANCE Net income for 2015 increased 7% to a record $37.2 million or $2.48 per diluted share compared with net income of $34.8 million or $2.36 per performance is to measure it over a suitable timeframe. Although many banks prefer to focus on total return over one year, three years or five years, those short time horizons can mask true long-term performance and often PAGE 3 ignore cyclical fluctuations. While a result, opened two new branches to provide the infrastructure and investment management and trust department provides us with CONCLUSION the Company’s total return for support needed to service our local customers. That market each of those periods exceeded expansion continues to exceed our expectations. those of our peers, we at Stock Yards Bancorp strive for consistent, profitable growth and, in turn, an attractive long-term returns for stockholders – because we believe that’s what investors value most. For the 10-year period ended with 2015, Stock Yards Bancorp’s total return increased In tandem with loan portfolio growth, credit quality metrics remained at very strong levels during 2015. Moreover, metrics that serve as early indicators of credit stress, such as past due balances, also remained favorable, further indicating the soundness of our portfolio. These positive trends, which now extend over the past two years, have enabled the Company to reach asset quality levels not experienced since before the 2008 financial crisis. Simultaneously, attractive deposit trends also occurred during 2015, 111% compared with a 4% increase for a commonly used NASDAQ bank providing funding for loan growth. For the year, we added $248 benchmark. In our view, steady and reliable wins the race every time. million in deposits for an increase of 12%. LOAN GROWTH FEE-BASED INCOME Net loan growth continued to drive our performance during 2015, As I mentioned earlier, higher fee-based income played an important both in terms of higher net income and earning assets. During 2015, role in our growth and profitability for the year. Our platforms for we added $164 million, or almost 9%, to our portfolio for the year, generating this non-interest income accounted for approximately following a similar increase for 2014. This portfolio growth was $40 million or more than 31% of total revenue in 2015, a level well significant not merely in amount, but also from the perspective of ahead of peers. time. As an institution founded in 1904, it took us a little more than Importantly, these sources “None of this would have 100 years to reach $1 billion in loans, and then just 10 more years to double our loan portfolio to $2 billion, organically, one loan at a time. None of this would have been possible if not for our employees’ of revenue also balance and diversify revenue growth over time to dedication, determination and unwavering focus on delivering reduce overall fluctuations superior customer service. Our portfolio growth for 2015 underscored the Bank’s success in achieving rapid expansion in loan production, which reached a record and help extend our record for reliable and steady growth. been possible if not for our employees’ dedication, determination and unwavering focus on delivering superior customer service.” level for the fourth straight year. Importantly, the acceleration we The most significant witnessed in 2015 was shared across our entire banking footprint, source of fee income, contributing almost one-half of total but it was especially evident in the Cincinnati market due to our non-interest income for 2015, is our investment management and expansion into the northern Kentucky area during 2015. There we trust department. Ranking among the top trust companies in the were able to attract several talented and experienced lenders and, as country and with total assets of $2.2 billion under management, our STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT meaningful competitive differentiation within the community We are excited to begin 2016 in a strong position, ready to capitalize banking arena. Coming off a remarkably good year in 2014, we anticipated that investment management and trust business would be down slightly for the year, and it was. However, due to the generation of net new business well ahead of levels for the prior year, revenue growth resumed in the fourth quarter of 2015. While we remain optimistic that the investment management and trust department will deliver stronger growth in 2016, we recognize that increased market volatility may affect near-term results. further on our momentum from last year and leverage the opportunities that continue to arise in our business and across our markets. The growth we accomplished in 2015 validates the strategies we have put in place to expand our business, diversify our revenue streams, generate attractive returns over the long term through higher earnings and dividend increases, and remain consistent in our performance. Considering this outlook, along with our enviable footprint across three economically attractive markets, we believe Stock Yards Bancorp remains poised for further growth. Moreover, our solid capital base provides us with the financial All other non-interest income categories combined to make a flexibility to take advantage of market disruptions as industry significant contribution to revenue for the year, particularly consolidation continues and strengthens our ability to increase mortgage banking which delivered solid results in 2015 by increasing future dividends. 31% over the prior year. Demand for purchase mortgages and mortgage refinancings remained generally robust throughout the year. VALIDATION As we continue to work to enhance our total return to stockholders and build on our reputation as a high-performing community bank, it stockholder value. We are indeed grateful for your continued support for the Company. On behalf of all of us at Stock Yards Bancorp, please accept our sincere thanks for your ongoing confidence as we work to enhance David P. Heintzman Chairman and Chief Executive Officer is gratifying to see Wall Street take notice. We received the fourth annual Raymond James Community Bankers Cup – for the fourth consecutive year. It recognized top performance in 2015 by 30 exchange-traded banks with assets between $500 million and $10 billion. Additionally last year, Stock Yards Bancorp once again was named to the KBW Bank Honor Roll, an annual selection based on a bank’s 10-year performance record. Only 25 banks were named to this exclusive ranking last year, and of those 25 selected, 23 – including Stock Yards Bancorp – repeated from the prior-year honor roll. While these accolades point to an impressive track record for our company, they also reflect our dedication to prudent and consistent growth over the long term, a principle that continues to guide us. “Our portfolio growth for 2015 underscored the Bank’s success in achieving rapid expansion in loan production, which reached a record level for the fourth straight year.”diluted share for 2014. This was on top of the 28% increase in net income that we reported last year. Returns on average equity and assets at 13.55% and 1.44%, respectively, remained high for 2015 versus 14.19% and 1.45%, respectively, for 2014. Similarly, the Company sustained solid capital levels in 2015, again exceeding required thresholds necessary to be considered a “well capitalized” institution, the top capital rating for financial institutions. Because of its consistently strong and growing equity position, Stock Yards Bancorp has continued to increase cash dividends, pursuing capital strategies to enhance stockholder value. In our view, stockholders should share directly in the success of the Company and benefit concretely from its growth. We also firmly believe in consistency and predictability: since our very first dividend payment to stockholders, we have never reduced or suspended dividend payments. These beliefs again guided our actions during 2015. In November, our Board of Directors raised the quarterly cash dividend rate 4% to $0.25 per common share, or an indicated annual rate of $1.00 per share. This was the second increase for 2015 and the eighth since December 2010, for a cumulative increase of more than 47% over the past five years. Totaling $0.96 per share for 2015, cash dividends to stockholders represented a payout of approximately 38% of earnings for the year, and with the most recent increase in November, the Company’s forward dividend yield was 2.6% as of December 31, 2015. As I have stated before, we believe the best way to assess a company’s Building on the momentum we have established over the past several years, Stock Yards Bancorp registered another sound performance for 2015. Remarkable loan growth, continued strong credit quality trends and higher fee-based income all combined to push annual earnings per share to a record level for the fifth consecutive year. These results, leading to attractive returns and growing dividends for stockholders, have enabled Stock Yards Bancorp to extend its long record of consistent growth to remain at the forefront of the nation’s best-performing community banks. FINANCIALS AT A GLANCE Net income for 2015 increased 7% to a record $37.2 million or $2.48 per diluted share compared with net income of $34.8 million or $2.36 per performance is to measure it over a suitable timeframe. Although many banks prefer to focus on total return over one year, three years or five years, those short time horizons can mask true long-term performance and often the Company’s total return for support needed to service our local customers. That market each of those periods exceeded expansion continues to exceed our expectations. those of our peers, we at Stock Yards Bancorp strive for consistent, profitable growth and, in turn, an attractive long-term returns for stockholders – because we believe that’s what investors value most. For the 10-year period ended with 2015, Stock Yards Bancorp’s total return increased In tandem with loan portfolio growth, credit quality metrics remained at very strong levels during 2015. Moreover, metrics that serve as early indicators of credit stress, such as past due balances, also remained favorable, further indicating the soundness of our portfolio. These positive trends, which now extend over the past two years, have enabled the Company to reach asset quality levels not experienced since before the 2008 financial crisis. Simultaneously, attractive deposit trends also occurred during 2015, 111% compared with a 4% increase for a commonly used NASDAQ bank providing funding for loan growth. For the year, we added $248 benchmark. In our view, steady and reliable wins the race every time. million in deposits for an increase of 12%. LOAN GROWTH FEE-BASED INCOME Net loan growth continued to drive our performance during 2015, As I mentioned earlier, higher fee-based income played an important both in terms of higher net income and earning assets. During 2015, role in our growth and profitability for the year. Our platforms for we added $164 million, or almost 9%, to our portfolio for the year, generating this non-interest income accounted for approximately following a similar increase for 2014. This portfolio growth was $40 million or more than 31% of total revenue in 2015, a level well significant not merely in amount, but also from the perspective of ahead of peers. time. As an institution founded in 1904, it took us a little more than 100 years to reach $1 billion in loans, and then just 10 more years to double our loan portfolio to $2 billion, organically, one loan at a time. None of this would have been possible if not for our employees’ Importantly, these sources of revenue also balance and diversify revenue growth over time to dedication, determination and unwavering focus on delivering reduce overall fluctuations superior customer service. Our portfolio growth for 2015 underscored the Bank’s success in achieving rapid expansion in loan production, which reached a record level for the fourth straight year. Importantly, the acceleration we The most significant and help extend our record for reliable and steady growth. witnessed in 2015 was shared across our entire banking footprint, source of fee income, contributing almost one-half of total but it was especially evident in the Cincinnati market due to our non-interest income for 2015, is our investment management and expansion into the northern Kentucky area during 2015. There we trust department. Ranking among the top trust companies in the were able to attract several talented and experienced lenders and, as country and with total assets of $2.2 billion under management, our ignore cyclical fluctuations. While a result, opened two new branches to provide the infrastructure and investment management and trust department provides us with CONCLUSION PAGE 4 meaningful competitive differentiation within the community We are excited to begin 2016 in a strong position, ready to capitalize banking arena. Coming off a remarkably good year in 2014, we anticipated that investment management and trust business would be down slightly for the year, and it was. However, due to the generation of net new business well ahead of levels for the prior year, revenue growth resumed in the fourth quarter of 2015. While we remain optimistic that the investment management and trust department will deliver stronger growth in 2016, we recognize that increased market volatility may affect near-term results. further on our momentum from last year and leverage the opportunities that continue to arise in our business and across our markets. The growth we accomplished in 2015 validates the strategies we have put in place to expand our business, diversify our revenue streams, generate attractive returns over the long term through higher earnings and dividend increases, and remain consistent in our performance. Considering this outlook, along with our enviable footprint across three economically attractive markets, we believe Stock Yards Bancorp remains poised for further growth. Moreover, our solid capital base provides us with the financial All other non-interest income categories combined to make a flexibility to take advantage of market disruptions as industry significant contribution to revenue for the year, particularly consolidation continues and strengthens our ability to increase mortgage banking which delivered solid results in 2015 by increasing future dividends. 31% over the prior year. Demand for purchase mortgages and mortgage refinancings remained generally robust throughout the year. VALIDATION We are indeed grateful for your continued support for the Company. On behalf of all of us at Stock Yards Bancorp, please accept our sincere thanks for your ongoing confidence as we work to enhance As we continue to work to enhance our total return to stockholders and build on our reputation as a high-performing community bank, it stockholder value. David P. Heintzman Chairman and Chief Executive Officer is gratifying to see Wall Street take notice. We received the fourth annual Raymond James Community Bankers Cup – for the fourth consecutive year. It recognized top performance in 2015 by 30 exchange-traded banks with assets between $500 million and $10 billion. Additionally last year, Stock Yards Bancorp once again was named to the KBW Bank Honor Roll, an annual selection based on a bank’s 10-year performance record. Only 25 banks were named to this exclusive ranking last year, and of those 25 selected, 23 – including Stock Yards Bancorp – repeated from the prior-year honor roll. While these accolades point to an impressive track record for our company, they also reflect our dedication to prudent and consistent growth over the long term, a principle that continues to guide us. STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT “As we continue to work to enhance our total return to stockholders and build on our reputation as a high-performing community bank, it is gratifying to see Wall Street take notice.”PAGE 5 STOCK YARDS BANCORP, INC. Selected Consolidated Financial Data (Dollars in thousands, except per share data) 2015 2014 2013 2012 2011 As of and for the year ended December 31, INCOME STATEMENT Net interest income Provision for loan losses Non-interest income Non-interest expenses Net income PER SHARE Basic EPS Diluted EPS Cash dividends declared Book value Market value BALANCE SHEET Total loans Allowance for loan losses Total assets Total deposits Stockholders’ equity AVERAGE BALANCE SHEET Total loans Total assets Total deposits Stockholders’ equity EARNINGS PERFORMANCE Return on average assets Return on average equity Net interest margin, full tax equivalent KEY RATIOS Non-performing loans to total loans Non-performing assets to total assets Net loan charge-offs to average loans Allowance for loan losses to average loans Average equity to average assets Tier 1 risk-based capital Common Equity Tier 1 capital1 Total risk-based capital Leverage (1) New ratio established in 2015 $ $ 89,246 750 39,950 73,398 37,187 2.53 2.48 0.96 19.20 37.79 $ 2,033,007 22,441 2,816,801 2,371,702 286,519 $ 1,919,201 2,573,901 2,152,411 274,451 $ $ 83,757 (400) 39,155 73,209 34,822 2.39 2.36 0.88 17.63 33.34 $ 1,868,550 24,920 2,563,868 2,123,627 259,895 1,773,011 $ 2,398,430 2,010,823 245,425 $ $ $ 77,298 6,550 39,002 71,352 27,170 1.91 1.89 0.81 15.71 31.92 1,721,350 28,522 2,389,262 1,980,937 229,444 $ 1,656,777 2,232,868 1,843,426 220,107 $ $ $ $ 73,950 11,500 38,457 65,472 25,801 1.86 1.85 0.77 14.74 22.42 $ $ 70,732 12,600 33,244 59,581 23,604 1.71 1.71 0.72 13.58 20.53 1,584,594 31,881 2,148,262 1,781,693 205,075 $ 1,544,845 29,745 2,053,097 1,617,739 187,686 1,563,918 2,070,967 1,659,594 197,551 $ 1,529,556 1,959,609 1,549,708 179,638 % 1.44 13.55 3.67 % 0.44 0.48 0.17 1.17 10.66 12.32 12.32 13.31 10.53 % 1.45 14.19 3.75 % 0.64 0.70 0.18 1.41 10.23 12.63 - 13.86 10.26 % 1.22 12.34 3.74 % 1.33 1.19 0.60 1.72 9.86 12.29 - 13.54 9.75 % 1.25 13.06 3.94 % 1.90 1.74 0.60 2.04 9.54 13.17 - 14.42 10.79 % 1.20 13.14 3.99 % 1.51 1.51 0.55 1.94 9.17 12.77 - 14.63 10.53 STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT DIRECTORS J. McCauley Brown Retired Vice President, Brown-Forman Corporation Charles R. Edinger III President, J. Edinger & Son, Inc. David P. Heintzman Chairman and Chief Executive Officer, Stock Yards Bancorp, Inc. and Stock Yards Bank & Trust Company Carl G. Herde Chief Financial Officer, Baptist Healthcare System, Inc. James A. Hillebrand President, Stock Yards Bancorp, Inc. and Stock Yards Bank & Trust Company Richard A. Lechleiter President, Catholic Education Foundation of Louisville Richard Northern Partner, Wyatt, Tarrant & Combs LLP Stephen M. Priebe President, Hall Contracting of Kentucky Nicholas X. Simon President and Chief Executive Officer, Publishers Printing Company Norman Tasman President, Tasman Industries, Inc. and Tasman Hide Processing, Inc. Kathy C. Thompson Senior Executive Vice President, Stock Yards Bancorp, Inc. and Stock Yards Bank & Trust Company EXECUTIVE OFFICERS David P. Heintzman Chairman and Chief Executive Officer James A. Hillebrand President Kathy C. Thompson Senior Executive Vice President Wealth Management Group Michael J. Croce Executive Vice President Retail Banking Group Nancy B. Davis Executive Vice President Chief Financial Officer William M. Dishman III Executive Vice President Chief Risk Officer Philip S. Poindexter Executive Vice President Chief Lending Officer T. Clay Stinnett Executive Vice President Chief Strategic Officer PAGE 6 Automatic Dividend Reinvestment Service The Company’s automatic dividend reinvestment service enables stockholders to reinvest cash dividends in additional shares of Stock Yards Bancorp, Inc. stock. For additional information, contact the Transfer Agent. Mailing And Street Addresses The mailing address for Stock Yards Bancorp, Inc. is: P.O. Box 32890, Louisville, Kentucky 40232-2890. The street address is: 1040 E. Main Street, Louisville, Kentucky 40206. Internet Address The Internet address for Stock Yards Bancorp, Inc. is www.syb.com. Stockholders can find share prices, trading volume, insider trading information, and other pertinent information (see “Investor Relations”). Common Stock Stock Yards Bancorp, Inc.’s common stock trades on the NASDAQ Global Select Market under the symbol SYBT. Forms 10-K And 10-Q Stock Yards Bancorp, Inc.’s annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission, can be found at www.syb.com (see “Investor Relations”) or by writing or calling Nancy B. Davis, Executive Vice President, Stock Yards Bancorp, Inc., nancy.davis@syb.com, (502) 625-9176. Transfer Agent The transfer agent for the common stock of Stock Yards Bancorp, Inc. is: Computershare P.O. Box 30170 College Station, TX 77842-3170 (800) 368-5948 LOUISVILLE - Corporate Center 1048 East Main Street Louisville, Kentucky 40206 (502) 582-2571 INDIANAPOLIS - Regional Center 136 East Market Street Indianapolis, Indiana 46204 (317) 238-2800 CINCINNATI - Regional Center 101 West Fourth Street Cincinnati, Ohio 45202 (513) 824-6100 “SPOT,” a trusted partner... This Great Dane statue has been in our Main Office lobby for over 100 years. It was made by G.C.J. Mattei Co. in 1913 and was commissioned by Mr. Lytle H. Hudson, Sr., the first President of Stock Yards Bank, to honor a beloved family pet. Spot represents many admirable qualities – a standard by which we will always measure our service to our clients; Strength, Integrity, Loyalty, and Dependability. STOCK YARDS BANCORP, INC. 2015 SUMMARY ANNUAL REPORT S T O C K H O L D E R I N F O R M AT I O N 

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