Road Notes: Consistent Top Tier Profitability & Superior Organic Growth Outlook

Research evidence excerpt

Road Notes: Consistent Top Tier Profitability & Superior Organic Growth Outlook

ationship-driven approach

to M&A. Mgmt. also noted that SYBT’s next deal will preferably be in or around its existing markets

with some preferred geographies including Columbus, Dayton, Indiana, and parts of Michigan.

Aligned culture is described by mgmt. as equally important as financial metrics in evaluating

potential partners, with a preference for institutions with fee income generation capabilities providing

a natural extension of SYBT’s already well-scaled wealth management and TM platforms. With or

without additional M&A, we expect SYBT to maintain its superior TBV growth (10-yr TBV CAGR of

9% vs. high-performing peer median at 7%) going forward. We model TBV growth of +12% / +13%

in 2026 / 2027 given its likely top-decile profitability outlook (PSCe ROA = 1.6%/1.7%).

Exhibit 1

SYBT’s TBV Growth vs. Peer Median and Top 125 Banks Peer Median

40 25%

35 20%

15% 30

10% (YoY)

5%

($) 20 0% Growth

-5% TBVPS 10 TBVPS -10%

5 -15%

13.79 14.63 16.03 17.32 18.78 20.09 18.50 21.95 24.82 29.50 33.14 37.52

0 -20%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026E 2027E

SYBT TBVPS SYBT TBVPS Growth

Top 125 Banks Median TBVPS Growth Peer Median TBVPS Growth

Source: S&P Global, Piper Sandler Research

Consistent Above Average Organic B/S Growth Outlook. Mgmt. highlighted that all four core

markets of Louisville (~$4B in loans), Cincinnati, Lexington, and Indianapolis (~$1B in loans each),

have grown over the last eight consecutive quarters, which is a testament to SYBT’s relationship-

based and holistic approach to banking the top 25% companies in each industry within its footprint.

Additionally, mgmt. expects loan growth to remain strong as commercial clients are not expressing