Strength Through Change: Expanding Our Reach, Deepening Our Commitment

Dear Clients, Partners, and Friends,

As we reflect on the second quarter of 2026, one theme stands above all others: change creates opportunity. The past several months have been marked by significant geopolitical developments, continued market volatility, evolving economic conditions, and an important strategic milestone for Stock Yards Bank & Trust. Through it all, our focus has remained unwavering—providing thoughtful advice, disciplined investment management, and trusted guidance to the individuals, families, businesses, and institutions we are privileged to serve.

The quarter was anything but uneventful. Escalating tensions and military conflict involving Iran introduced a new layer of geopolitical uncertainty to global markets, particularly through its impact on energy prices, inflation expectations, and investor sentiment. As history has demonstrated repeatedly, markets often react swiftly to geopolitical shocks, only to gradually refocus on underlying economic fundamentals. This quarter proved no different.

While volatility increased and investors navigated a rapidly changing landscape, financial markets once again demonstrated remarkable resilience. Corporate earnings generally remained constructive, consumer spending continued to support economic growth, and technological innovation—particularly in artificial intelligence and related infrastructure investment—remained a powerful long-term driver of economic activity. Although uncertainty remains elevated, the ability of markets to absorb and adapt to significant geopolitical events serves as an important reminder of the value of maintaining a disciplined, long-term perspective.

In this quarter’s newsletter, our Chief Investment Officer, John Fidler, provides his comprehensive review of economic and market developments, along with his outlook for the remainder of 2026 and beyond. John’s analysis explores the intersection of geopolitical risks, monetary policy, inflation trends, and investment opportunities across both domestic and international markets. As always, his perspective reinforces a core principle of our investment philosophy: successful investing is not about reacting to headlines, but rather understanding how changing conditions influence long-term fundamentals and portfolio positioning.

Beyond the markets, the second quarter also marked an exciting and transformative chapter in the continued growth of Stock Yards Bank. We were pleased to announce the successful acquisition of Field & Main Bank, a partnership that significantly enhances our presence and capabilities throughout Western Kentucky and surrounding markets.

Particularly meaningful for our Wealth Management & Trust group is the addition of Field & Main’s highly respected Wealth Management team, which brings more than $850 million in assets under management and administration, along with a talented team of ten experienced trust and wealth professionals. The integration of these accomplished professionals strengthens our ability to serve clients across a broader geographic footprint while preserving the relationship-driven, fiduciary culture that defines both organizations.

We are especially excited to welcome Jeff Jackson, Regional Manager of the former Field & Main Wealth Management and Trust Group, and his team to the Stock Yards family. Jeff’s extensive experience, deep community relationships, and unwavering commitment to client service make him an outstanding addition to our leadership team. In this quarter’s Advisor Spotlight, you will have an opportunity to learn more about Jeff’s professional journey, his philosophy of client care, and the values that have contributed to his longstanding success. We are confident that our clients and colleagues alike will benefit from his leadership and expertise for many years to come.

This issue also features timely planning insights from two of our experienced advisors. Clark Stone, CFP®, ChFC, CLU®, offers practical financial planning strategies designed to help clients navigate today’s evolving economic environment while remaining focused on their long-term objectives. Whether addressing retirement planning, tax efficiency, cash flow management, or risk mitigation, Jason reminds us that comprehensive financial planning remains one of the most valuable tools available during periods of uncertainty.

Additionally, Maria Tipton, J.D. from our Wealth Management team, provides important estate and wealth planning considerations for families seeking to preserve and transfer wealth effectively in today’s legislative and economic environment. As tax laws, family circumstances, and wealth transfer objectives continue to evolve, proactive planning remains essential to achieving lasting multigenerational goals.

As we enter the second half of 2026, we remain optimistic, yet appropriately measured, in our outlook. Challenges undoubtedly lie ahead, as they always do. However, we firmly believe that disciplined investment management, comprehensive planning, and trusted relationships provide the strongest foundation for navigating uncertain times.

On behalf of our entire Wealth Management & Trust team, thank you for the confidence and trust you continue to place in Stock Yards Bank & Trust. We are honored to serve as your trusted advisor and look forward to helping you pursue your goals in the months and years ahead.

Warm regards,

Shannon B. Budnick, CTFA, CFP®
Director of Wealth Management & Trust

We provide the information in this newsletter for general guidance only. It does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, investment, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, expressed or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

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