S&T Bancorp, Inc. Announces First Quarter 2018 Results

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Apr 19, 2018

S&T Bancorp, Inc. Announces First Quarter 2018 Results

- Record Quarterly Net Income of $26.2 million -

INDIANA, Pa., April 19, 2018 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its first quarter 2018 earnings. First quarter net income was a record high of $26.2 million, or $0.75 diluted earnings per share (EPS), compared to first quarter of 2017 net income of $18.2 million, or $0.52 diluted EPS and fourth quarter of 2017 net income of $9.3 million, or $0.27 diluted EPS.

S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)

First Quarter of 2018 Highlights:

  • Net income of $26.2 million and diluted EPS of $0.75 both represent record high levels for S&T.
       
  • Diluted EPS increased by 44.2% compared to the first quarter of 2017.
      
  • Annualized performance metrics were solid and improved significantly compared to prior periods, with return on average assets of 1.51%, return on average shareholders' equity of 11.92% and return on average tangible shareholders' equity of 17.83% (non-GAAP).
      
  • Expenses continue to be well controlled with an efficiency ratio of 50.35% (non-GAAP).
     
  • Net income was positively impacted by the Tax Cuts and Jobs Act (Tax Act) which lowered the federal corporate tax rate from 35% to 21% effective January 1, 2018.
     
  • Nonperforming loans decreased 10.9% compared to the fourth quarter of 2017.
     
  • S&T's Board of Directors approved a 13.6%, or $0.03 per share, increase in the quarterly cash dividend to $0.25 per share. This represents a 25% increase in the dividend from the same period last year.

"We are pleased to start off  2018 with record quarterly net income," said Todd Brice, president and chief executive officer of S&T. "Higher net interest income, our continued attention to expenses, lower provision for loan losses and the positive impact of tax reform have resulted in impressive performance metrics compared to a year ago."

Net Interest Income

Net interest income was $56.9 million compared to $57.8 million for the fourth quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 1 basis point to 3.59% even with the negative impact of the FTE adjustment from a lower statutory tax rate. The decrease in net interest income was primarily due to two less days in the first quarter compared to the fourth quarter of 2017.

Asset Quality

Total nonperforming loans decreased 10.9% to $21.3 million, or 0.37% of total loans, at March 31, 2018 compared to $23.9 million, or 0.42% of total loans, at December 31, 2017. OREO increased $2.5 million related to two land lots owned by S&T Bank that are for sale and are no longer intended to be future branch locations. During the first quarter of 2018, there were net loan recoveries of $0.2 million compared to net charge-offs of $1.3 million in the fourth quarter of 2017. The provision for loan loss was $2.5 million compared to $1.0 million in the fourth quarter of 2017. The allowance for loan losses (ALLL) to total portfolio loans was 1.03% at March 31, 2018 compared to 0.98% at December 31, 2017. Both the increase in the provision and ALLL are primarily due to an increase in special mention and substandard loans compared to December 31, 2017.

Noninterest Income and Expense

Noninterest income increased $1.1 million to $13.8 million for the first quarter of 2018 compared to $12.7 million for the fourth quarter of 2017. The increase primarily related to a $1.9 million gain on the sale of a majority interest of our insurance business. Insurance fees decreased $1.0 million as a result of this sale. The decrease of $0.8 million in other income related to a branch sale in the fourth quarter of 2017.

Expenses remain well controlled decreasing to $36.1 million compared to $38.0 million for the fourth quarter of 2017. Salaries and employee benefits decreased $1.2 million due to the sale of our insurance business, lower incentives and seasonally lower medical costs. Marketing expense decreased $0.5 million due to the timing of marketing campaigns and other expense decreased $0.7 million primarily due to lower loan related expense. Other taxes increased by $0.6 million related to a state sales tax assessment. The efficiency ratio (non-GAAP) improved to 50.35% compared to 51.75% in the fourth quarter and 53.83% in the first quarter of 2017 due to expense control and higher revenue.

Income Tax Expense

The Tax Act changed the federal corporate tax rate from 35% to 21% effective January 1, 2018. As a result the effective tax rate declined to 18.7% for the first quarter of 2018. Included in the effective tax rate for the first quarter were non-recurring discrete items of $0.9 million, primarily related to the sale of a majority interest of our insurance business.

Financial Condition

Total assets were $7.0 billion at March 31, 2018 compared to $7.1 billion as of December 31, 2017. Higher than usual pay-offs in commercial loans combined with lower seasonal demand resulted in a decrease in portfolio loans of $30.8 million. Total deposits decreased $40.8 million as competition for customer funds accelerated, with declines in all categories except money market accounts. All capital ratios increased this quarter due to strong retained earnings, a decline in average assets and slower risk weighted asset growth. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a 13.6% increase in the quarterly cash dividend at its regular meeting held April 16, 2018. The dividend increased to $0.25 per share compared to $0.20 per share declared in the same period in the prior year, a 25% increase. The dividend is payable May 17, 2018 to shareholders of record on May 3, 2018.

Conference Call

S&T will host its first quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 19, 2018. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "1st Quarter 2018 Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until April 26, 2018, by dialing 1.877.481.4010; the Conference ID # is 27217.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $7.0 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.

This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward looking statements are typically identified by words or phrases such as "will likely result", "expect", "anticipate" ,"estimate", "forecast", "project", "intend", " believe", "assume", "strategy", "trend", "plan", "outlook", "outcome", "continue", "remain", "potential", "opportunity", "believe", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses, cyber-security concerns; rapid technological developments and changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or business conditions; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

 

 

 

S&T  Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST INCOME

           

Loans, including fees

$63,055

 

$63,407

 

$56,900

 

Investment securities:

           

Taxable

3,429

 

3,164

 

2,848

 

Tax-exempt

874

 

871

 

920

 

Dividends

671

 

413

 

482

 

Total Interest Income

68,029

 

67,855

 

61,150

 
             

INTEREST EXPENSE

           

Deposits

7,846

 

7,227

 

5,379

 

Borrowings and junior subordinated debt securities

3,251

 

2,800

 

1,893

 

Total Interest Expense

11,097

 

10,027

 

7,272

 
             

NET INTEREST INCOME

56,932

 

57,828

 

53,878

 

Provision for loan losses

2,472

 

982

 

5,183

 

Net Interest Income After Provision for Loan Losses

54,460

 

56,846

 

48,695

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

 

(986)

 

370

 

Service charges on deposit accounts

3,241

 

3,240

 

3,014

 

Debit and credit card fees

3,037

 

3,077

 

2,843

 

Wealth management fees

2,682

 

2,521

 

2,403

 

Gain on sale of a majority interest of insurance business

1,873

 

 

 

Mortgage banking

602

 

635

 

733

 

Insurance fees

169

 

1,139

 

1,457

 

Other

2,188

 

3,024

 

2,176

 

Total Noninterest Income

13,792

 

12,650

 

12,996

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

18,815

 

20,006

 

20,541

 

Net occupancy

2,873

 

2,736

 

2,815

 

Data processing

2,325

 

2,131

 

2,223

 

Furniture, equipment and software

1,957

 

2,200

 

2,047

 

Other taxes

1,848

 

1,241

 

976

 

FDIC insurance

1,108

 

1,083

 

1,123

 

Professional services and legal

1,051

 

1,224

 

1,068

 

Marketing

702

 

1,191

 

754

 

Other

5,403

 

6,135

 

5,261

 

Total Noninterest Expense

36,082

 

37,947

 

36,808

 
             

Income Before Taxes

32,170

 

31,549

 

24,883

 

Provision for income taxes

6,007

 

22,255

 

6,695

 
             

Net Income

$26,163

 

$9,294

 

$18,188

 
             

Per Share Data

           

Shares outstanding at end of period

35,000,502

 

34,971,929

 

34,980,556

 

Average shares outstanding - diluted

34,999,165

 

35,019,866

 

34,912,261

 

Diluted earnings per share

$0.75

 

$0.27

 

$0.52

 

Dividends declared per share

$0.22

 

$0.22

 

$0.20

 

Dividend yield (annualized)

2.20%

 

2.21%

 

2.31%

 

Dividends paid to net income

29.31%

 

82.53%

 

38.27%

 

Book value

$25.58

 

$25.28

 

$24.45

 

Tangible book value(1)

$17.30

 

$16.87

 

$16.02

 

Market value

$39.94

 

$39.81

 

$34.60

 
             

Profitability Ratios (annualized)

           

Return on average assets

1.51%

 

0.52%

 

1.06%

 

Return on average shareholders' equity

11.92%

 

4.14%

 

8.68%

 

Return on average tangible shareholders' equity (2)

17.83%

 

6.30%

 

13.45%

 

Efficiency ratio (FTE)(3)

50.35%

 

51.75%

 

53.83%

 
                   

 

 

S&T  Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$112,849

 

$117,152

 

$104,705

 

Securities, at fair value

687,650

 

698,291

 

713,198

 

Loans held for sale

3,283

 

4,485

 

14,355

 

Commercial loans:

           

Commercial real estate

2,760,891

 

2,685,994

 

2,614,724

 

Commercial and industrial

1,406,950

 

1,433,266

 

1,422,297

 

Commercial construction

324,141

 

384,334

 

455,211

 

Total Commercial Loans

4,491,982

 

4,503,594

 

4,492,232

 

Consumer loans:

           

Residential mortgage

692,385

 

698,774

 

700,610

 

Home equity

474,850

 

487,326

 

479,402

 

Installment and other consumer

66,890

 

67,204

 

70,219

 

Consumer construction

4,506

 

4,551

 

4,363

 

Total Consumer Loans

1,238,631

 

1,257,855

 

1,254,594

 

Total portfolio loans

5,730,613

 

5,761,449

 

5,746,826

 

Allowance for loan losses

(59,046)

 

(56,390)

 

(55,816)

 

Total portfolio loans, net

5,671,567

 

5,705,059

 

5,691,010

 

Federal Home Loan Bank and other restricted stock, at cost

29,769

 

29,270

 

29,739

 

Goodwill

287,446

 

291,670

 

291,670

 

Other assets

212,765

 

214,328

 

220,421

 

Total Assets

$7,005,329

 

$7,060,255

 

$7,065,098

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,368,350

 

$1,387,712

 

$1,300,707

 

Interest-bearing demand

560,711

 

603,141

 

631,652

 

Money market

1,239,400

 

1,146,156

 

985,723

 

Savings

876,459

 

893,119

 

1,032,864

 

Certificates of deposit

1,342,174

 

1,397,763

 

1,484,379

 

Total Deposits

5,387,094

 

5,427,891

 

5,435,325

 
             

Borrowings:

           

Securities sold under repurchase agreements

44,617

 

50,161

 

46,987

 

Short-term borrowings

525,000

 

540,000

 

610,000

 

Long-term borrowings

46,684

 

47,301

 

14,118

 

Junior subordinated debt securities

45,619

 

45,619

 

45,619

 

Total Borrowings

661,920

 

683,081

 

716,724

 

Other liabilities

60,908

 

65,252

 

57,869

 

Total Liabilities

6,109,922

 

6,176,224

 

6,209,918

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

895,407

 

884,031

 

855,180

 

Total Liabilities and Shareholders' Equity

$7,005,329

 

$7,060,255

 

$7,065,098

 
             

Capitalization Ratios

           

Shareholders' equity / assets

12.78%

 

12.52%

 

12.10%

 

Tangible common equity / tangible assets(4)

9.02%

 

8.72%

 

8.28%

 

Tier 1 leverage ratio

9.72%

 

9.17%

 

8.92%

 

Common equity tier 1 capital

11.02%

 

10.71%

 

10.16%

 

Risk-based capital - tier 1

11.36%

 

11.06%

 

10.52%

 

Risk-based capital - total

12.85%

 

12.55%

 

12.02%

 

 

 

 

S&T  Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Net Interest Margin (FTE) (QTD Averages)

           

ASSETS

           

Interest-bearing deposits with banks

$56,008

1.65%

$56,989

1.12%

$66,173

0.85%

Securities, at fair value

686,912

2.53%

696,411

2.53%

697,327

2.44%

Loans held for sale

1,949

5.65%

35,001

4.23%

2,211

4.44%

Commercial real estate

2,690,990

4.57%

2,684,481

4.42%

2,524,859

4.25%

Commercial and industrial

1,431,588

4.41%

1,453,554

4.47%

1,413,801

4.16%

Commercial construction

375,129

4.51%

405,285

4.26%

454,886

3.70%

Total Commercial Loans

4,497,707

4.51%

4,543,320

4.42%

4,393,546

4.16%

Residential mortgage

694,303

4.19%

696,422

4.14%

699,849

4.05%

Home equity

481,053

4.47%

489,031

4.34%

480,411

4.14%

Installment and other consumer

66,861

6.69%

68,459

6.63%

68,164

6.49%

Consumer construction

3,810

4.69%

4,107

4.41%

5,374

3.67%

Total Consumer Loans

1,246,027

4.43%

1,258,019

4.35%

1,253,798

4.22%

Total Portfolio Loans

5,743,734

4.50%

5,801,339

4.41%

5,647,344

4.18%

Total Loans

5,745,683

4.50%

5,836,340

4.41%

5,649,555

4.18%

Federal Home Loan Bank and other restricted stock

31,216

8.05%

32,026

4.64%

32,690

4.68%

Total Interest-earning Assets

6,519,819

4.28%

6,621,766

4.18%

6,445,745

3.96%

Noninterest-earning assets

488,808

 

512,396

 

511,125

 

Total Assets

$7,008,627

 

$7,134,162

 

$6,956,870

 
             

LIABILITIES AND SHAREHOLDERS' EQUITY

           

Interest-bearing demand

$575,377

0.26%

$620,027

0.25%

$633,232

0.18%

Money market

1,194,053

1.10%

1,102,093

0.92%

938,014

0.61%

Savings

874,318

0.20%

914,871

0.21%

1,041,647

0.21%

Certificates of deposit

1,355,617

1.14%

1,439,703

1.05%

1,403,796

0.91%

Total interest-bearing Deposits

3,999,365

0.80%

4,076,694

0.70%

4,016,689

0.54%

Securities sold under repurchase agreements

47,774

0.39%

42,599

0.26%

48,896

0.01%

Short-term borrowings

596,014

1.71%

625,189

1.38%

671,784

0.84%

Long-term borrowings

46,938

1.99%

30,813

2.04%

14,362

2.91%

Junior subordinated debt securities

45,619

4.14%

45,619

3.82%

45,619

3.45%

Total Borrowings

736,345

1.79%

744,220

1.49%

780,661

0.98%

Total interest-bearing Liabilities

4,735,710

0.95%

4,820,914

0.83%

4,797,350

0.61%

Noninterest-bearing liabilities

1,383,109

 

1,422,074

 

1,309,401

 

Shareholders' equity

889,808

 

891,174

 

850,119

 

Total Liabilities and Shareholders' Equity

$7,008,627

 

$7,134,162

 

$6,956,870

 
             

Net Interest Margin(5)

 

3.59%

 

3.58%

 

3.50%

 

 

 

S&T  Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Nonperforming Loans (NPL)

           

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

Commercial real estate

$3,952

0.14%

$3,468

0.13%

$8,617

0.33%

Commercial and industrial

4,617

0.33%

5,646

0.39%

21,879

1.54%

Commercial construction

1,873

0.58%

3,873

1.01%

3,758

0.83%

Total Nonperforming Commercial Loans

10,442

0.23%

12,987

0.29%

34,254

0.76%

Consumer loans:

           

Residential mortgage

6,715

0.97%

7,165

1.03%

8,218

1.17%

Home equity

4,109

0.87%

3,715

0.76%

3,484

0.73%

Installment and other consumer

69

0.10%

71

0.11%

36

0.05%

Total Nonperforming Consumer Loans

10,893

0.88%

10,951

0.87%

11,738

0.93%

Total Nonperforming Loans

$21,335

0.37%

$23,938

0.42%

$45,992

0.80%

             
             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Loan Charge-offs

           

Charge-offs

$1,444

 

$2,073

 

$2,942

 

Recoveries

(1,628)

 

(769)

 

(800)

 

Net Loan Charge-offs

($184)

 

$1,304

 

$2,142

 
             

Net Loan Charge-offs

           

Commercial loans:

           

Commercial real estate

($48)

 

($191)

 

$312

 

Commercial and industrial

712

 

513

 

528

 

Commercial construction

(1,129)

 

465

 

388

 

Total Commercial Loan Charge-offs

(465)

 

787

 

1,228

 

Consumer loans:

           

Residential mortgage

53

 

162

 

481

 

Home equity

(123)

 

120

 

183

 

Installment and other consumer

359

 

272

 

258

 

Consumer construction

(8)

 

(37)

 

(8)

 

Total Consumer Loan Charge-offs

281

 

517

 

914

 

Total Net Loan Charge-offs

($184)

 

$1,304

 

$2,142

 
             
             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$21,335

 

$23,938

 

$45,992

 

OREO

2,920

 

469

 

873

 

Nonperforming assets

24,255

 

24,407

 

46,865

 

Troubled debt restructurings (nonaccruing)

8,560

 

11,150

 

10,324

 

Troubled debt restructurings (accruing)

20,035

 

14,901

 

13,086

 

Total troubled debt restructurings

28,595

 

26,051

 

23,410

 

Nonperforming loans / loans

0.37%

 

0.42%

 

0.80%

 

Nonperforming assets / loans plus OREO

0.42%

 

0.42%

 

0.81%

 

Allowance for loan losses / total portfolio loans

1.03%

 

0.98%

 

0.97%

 

Allowance for loan losses / nonperforming loans

277%

 

236%

 

121%

 

Net loan charge-offs (recoveries)

($184)

 

$1,304

 

$2,142

 

Net loan charge-offs (recoveries)(annualized) / average loans

(0.01)%

 

0.09%

 

0.15%

 

 

 

S&T  Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

 

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

             
 

2018

 

2017

 

2017

 
 

First

 

Fourth

 

First

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

 Total shareholders' equity

$895,407

 

$884,031

 

$855,180

 

      Less: goodwill and other intangible assets

(290,572)

 

(295,347)

 

(296,222)

 

     Tax effect of other intangible assets

656

 

1,287

 

1,593

 

 Tangible common equity (non-GAAP)

$605,491

 

$589,971

 

$560,551

 

 Common shares outstanding

35,001

 

34,972

 

34,981

 

 Tangible book value (non-GAAP)

$17.30

 

$16.87

 

$16.02

 
             

(2) Return on Average Tangible Shareholders' Equity (non-GAAP)

           

  Net income (annualized)

$106,105

 

$36,873

 

$73,762

 

       Plus: amortization of intangibles (annualized)

1,037

 

1,109

 

1,453

 

       Tax effect of amortization of intangibles (annualized)

(218)

 

(388)

 

(509)

 

  Net income before amortization of intangibles (annualized)

$106,924

 

$37,594

 

$74,706

 
             

  Average total shareholders' equity

$889,808

 

$891,174

 

$850,119

 

       Less: average goodwill and other intangible assets

(290,754)

 

(295,495)

 

(296,416)

 

       Tax effect of average goodwill and other intangible assets

685

 

1,339

 

1,661

 

  Average tangible equity (non-GAAP)

$599,739

 

$597,018

 

$555,364

 

  Return on average tangible equity (non-GAAP)

17.83%

 

6.30%

 

13.45%

 
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$36,082

 

$37,947

 

$36,808

 
             

Net interest income per consolidated statements of net income

$56,932

 

$57,828

 

$53,878

 

     Less: net (gains) losses on sale of securities

 

986

 

(370)

 

     Plus: taxable equivalent adjustment

940

 

1,878

 

1,871

 

Net interest income (FTE) (non-GAAP)

57,872

 

60,692

 

55,379

 

Noninterest income

13,792

 

12,650

 

12,996

 

Net interest income (FTE) (non-GAAP) plus noninterest income

$71,664

 

$73,342

 

$68,375

 

Efficiency ratio (non-GAAP)

50.35%

 

51.75%

 

53.83%

 
             

(4) Tangible Common Equity / Tangible Assets (non-GAAP)

           

 Total shareholders' equity

$895,407

 

$884,031

 

$855,180

 

      Less: goodwill and other intangible assets

(290,572)

 

(295,347)

 

(296,222)

 

      Tax effect of goodwill and other intangible assets

656

 

1,287

 

1,593

 

 Tangible common equity (non-GAAP)

$605,491

 

$589,971

 

$560,551

 
             

 Total assets

$7,005,329

 

$7,060,255

 

$7,065,098

 

      Less: goodwill and other intangible assets

(290,572)

 

(295,347)

 

(296,222)

 

      Tax effect of goodwill and other intangible assets

656

 

1,287

 

1,593

 

 Tangible assets (non-GAAP)

$6,715,413

 

$6,766,195

 

$6,770,469

 

 Tangible common equity to tangible assets (non-GAAP)

9.02%

 

8.72%

 

8.28%

 
             

(5) Net Interest Margin Rate (FTE) (non-GAAP)

           

 Interest income

$68,029

 

$67,855

 

$61,150

 

      Less: interest expense

(11,097)

 

(10,027)

 

(7,272)

 

 Net interest income per consolidated statements of net income

56,932

 

57,828

 

53,878

 

      Plus: taxable equivalent adjustment

940

 

1,878

 

1,871

 

 Net interest income (FTE) (non-GAAP)

57,872

 

59,706

 

55,749

 

 Net interest income (FTE) (annualized)

234,703

 

237,526

 

226,093

 

 Average earning assets

$6,519,819

 

$6,621,766

 

$6,445,745

 

 Net interest margin - (FTE) (non-GAAP)

3.59%

 

3.58%

 

3.50%

 
               

 

 

 
 

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SOURCE S&T Bancorp, Inc.

Mark Kochvar, Chief Financial Officer, 724.465.4826, 800 Philadelphia Street, Indiana, PA 15701, mark.kochvar@stbank.com