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Apr 30, 2020

S&T Bancorp, Inc. Announces First Quarter 2020 Results and Declares First Quarter Dividend

INDIANA, Pa., April 30, 2020 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its first quarter 2020 earnings. Net income was $13.2 million, or $0.34 per diluted share, for the first quarter of 2020 compared to net income of $22.3 million, or $0.62 per diluted share, for the fourth quarter of 2019, and $22.9 million, or $0.66 per diluted share, for the first quarter of 2019. The first quarter of 2020 financial results included one-time expenses of $2.3 million, or $0.05 per diluted share, related to the DNB Financial Corporation (DNB) merger which closed on November 30, 2019, compared to $10.2 million, or $0.23 per diluted share in the fourth quarter of 2019.

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

Impact and Response to the COVID-19 Pandemic:

In response to the COVID-19 pandemic numerous measures have been taken to promote the health and safety of our employees, and the customers and communities we serve.  Preventive health measures including social distancing, wearing masks, remote work where feasible, extra cleaning and branch access restrictions have been implemented.  Our ongoing Business Continuity teams were activated and have guided our efforts to respond to the rapidly developing situation.

We have made strong efforts to support our customers and communities through the potential financial hardships that have arisen through this crisis, including:

  • Consumer and homeowner needs based loan assistance
  • Commercial and Business needs based loan assistance
  • Access to the SBA Paycheck Protection Program
  • Extended Solution Center (call center) hours
  • Promotion of Mobile and Online banking solutions
  • $85,000 of donations to local food banks and hospitals

S&T is well positioned to be a source of strength and support during this crisis through our employees and customers supported by strong capital and liquidity.

First Quarter of 2020 Highlights:

  • Portfolio loans increased $109.6 million, or 6.2% annualized, compared to the fourth quarter of 2019.
  • Net interest margin was 3.53% compared to 3.55% for the fourth quarter of 2019 and 3.71% for the same quarter a year ago.
  • Return on average assets (ROA) was 0.61%, return on average equity (ROE) was 4.47% and return on average tangible equity (ROTE) (non-GAAP) was 6.82%. Excluding $2.3 million of merger related expenses ROA was 0.70% (non-GAAP), ROE was 5.13% (non-GAAP) and ROTE was 7.79% (non-GAAP)
  • S&T's Board of Directors declared a $0.28 per share dividend. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year.

"Despite facing obvious challenges in the final month of the quarter, it has been rewarding to see the commitment and dedication of the S&T Bank team to adapt to a rapidly changing environment," said Todd Brice, Chief Executive Officer. "The pandemic has presented many uncertainties, but the response of our employees to assist clients has been amazing and will strengthen our long-standing relationships with them." Mr. Brice continued, "Prior to the COVID-19 pandemic we had tremendous momentum across all our lines of business and markets and are well positioned to capitalize on opportunities as the economy recovers."

Net Interest Income

Net interest income increased $5.6 million to $70.0 million for the first quarter of 2020 compared to $64.4 million for the fourth quarter of 2019. The increase was primarily due to growth in average loan balances of $666.3 million, the majority due to a full quarter impact for the DNB merger, which added $900 million of loans and $991 million of deposits. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 2 basis points to 3.53% for the first quarter of 2020 from 3.55% in the fourth quarter of 2019 primarily due to decreases in short-term rates. Loan rates decreased 13 basis points to 4.64% and total interest-bearing liability costs decreased 16 basis points to 1.22%.

Asset Quality

The adoption of the Current Expected Credit Loss (CECL) accounting standard as of January 1, 2020 and the uncertainty around the COVID-19 pandemic both contributed to the higher Allowance for Credit Losses (ACL) of 1.34% of total portfolio loans as of March 31, 2020 compared to 0.87% at December 31, 2019.  The provision for credit losses increased to $20.0 million in the first quarter of 2020 compared to $2.2 million in the fourth quarter of 2019. Included in the provision for credit losses in the first quarter of 2020 is $1.6 million for the reserve for unfunded commitments compared to $0.1 million in the fourth quarter of 2019. Net loan charge-offs were $11.2 million for the first quarter of 2020 compared to $2.0 million in the fourth quarter of 2019. The increase in net loan charge-offs in the first quarter 2020 primarily related to a $9.9 million Commercial & Industrial loan charge-off, which was classified as nonperforming and impaired in the fourth quarter of 2019. Total nonperforming loans increased $19.7 million to $73.8 million, or 1.02% of total loans, at March 31, 2020 compared to $54.1 million, or 0.76% of total loans at December 31, 2019. The increase in nonperforming loans in the first quarter of 2020 primarily related to a $20.9 millionCommercial Real Estate relationship that had been experiencing difficulties prior to the onset of the pandemic.

Noninterest Income and Expense

Noninterest income decreased $2.8 million to $12.4 million in the first quarter of 2020 compared to $15.2 million in the fourth quarter of 2019. Other noninterest income decreased by $3.5 million primarily due to the decline in the fair value of the assets in a nonqualified benefit plan of $1.6 million and a reduction in the fair value of equity securities of $2.0 million. Mortgage banking income improved during the quarter by $0.5 million due to increased refinancing activity.

Noninterest expense decreased $3.7 million to $46.4 million for the first quarter of 2020 compared to $50.0 million in the fourth quarter of 2019. The decrease in noninterest expense was mainly due to a $7.9 million decrease in merger related expenses, to $2.3 million in the first quarter of 2020 compared to $10.2 million in the fourth quarter of 2019. The decrease of $1.5 million in salaries and employee benefits primarily related to the decline in the fair value of the liability in a nonqualified benefit plan. These decreases were offset by increases of $2.1 million in other expenses, $2.4 million in other taxes and $0.5 million in FDIC insurance expense. Included in other expenses was a $1.1 million increase related to historic tax credits and a $0.3 million increase in amortization of intangibles due to the DNB merger. Other taxes increased $2.4 million mainly due to a one-time adjustment related to a state sales tax assessment in the fourth quarter of 2019. The increase in FDIC insurance expense was due to $0.5 million of Small Bank Assessment Credits received in the fourth quarter of 2019.

Financial Condition

Total assets increased $0.2 billion to $9.0 billion at March 31, 2020 compared to $8.8 billion at December 31, 2019. Portfolio loans grew during the quarter with an increase of $109.6 million, or 6.2% annualized, compared to the fourth quarter of 2019. Commercial loans grew $107.6 million during the quarter, or 7.9% annualized, with growth in all commercial portfolios. Deposits were $7.1 billion at March 31, 2020 compared to $7.0 billion at December 31, 2019.

Common shares totaling 411,430 were repurchased during the first quarter of 2020 at a total cost of $12.6 million, or an average of $30.52 per share.  As the impact of the COVID-19 pandemic spread, repurchase activity was suspended in mid-March.

All regulatory risk-based capital ratios declined at March 31, 2020 compared to December 31, 2019 due to increases in risk weighted assets, lower retained earnings growth and share repurchases. S&T continues to maintain a strong capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend on April 29, 2020. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year. The dividend is payable June 2, 2020 to shareholders of record on May 19, 2020.

Conference Call

S&T will host its first quarter 2020 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 30, 2020. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "1st Quarter 2020 Earnings 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 May 7, 2020, by dialing 1.877.481.4010; the Conference ID is 33995.

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

S&T Bancorp, Inc. is a $9.0 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was recently named by Forbes as a 2019 World's Best Bank. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com, stbank.com, and follow us on Facebook, Instagram, and LinkedIn.

 

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 and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for 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, including changes in regulatory capital requirements and our ability to address those requirements; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; 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, including DNB, 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; an interruption or cessation of an important service by a third-party provider; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus ("COVID-19") pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; 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; the stability of our core deposit base and access to contingency funding; 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

 
   
 

2020

 

2019

 

2019

 
 

First

 

Fourth

 

First

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST AND DIVIDEND INCOME

           

Loans, including fees

$82,051

 

$77,426

 

$73,392

 

Investment securities:

           

Taxable

4,215

 

3,744

 

3,790

 

Tax-exempt

870

 

836

 

844

 

Dividends

453

 

451

 

564

 

Total Interest and Dividend Income

87,589

 

82,457

 

78,590

 
             

INTEREST EXPENSE

           

Deposits

15,338

 

15,783

 

14,981

 

Borrowings and junior subordinated debt securities

2,215

 

2,262

 

3,253

 

Total Interest Expense

17,553

 

18,045

 

18,234

 
             

NET INTEREST INCOME

70,036

 

64,412

 

60,356

 

Provision for credit losses(a)

20,050

 

2,239

 

5,684

 

Net Interest Income After Provision for Credit Losses

49,986

 

62,173

 

54,672

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

 

(26)

 

 

Service charges on deposit accounts

3,558

 

3,540

 

3,153

 

Debit and credit card

3,482

 

3,454

 

2,974

 

Commercial loan swap income

2,484

 

2,356

 

581

 

Wealth management

2,362

 

2,412

 

2,048

 

Mortgage banking

1,236

 

765

 

494

 

Other

(719)

 

2,730

 

2,112

 

Total Noninterest Income

12,403

 

15,231

 

11,362

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

21,335

 

22,851

 

20,910

 

Data processing and information technology

3,868

 

4,141

 

3,233

 

Net occupancy

3,765

 

3,219

 

3,036

 

Furniture, equipment and software

2,519

 

2,337

 

2,230

 

Merger related expense

2,342

 

10,179

 

 

Other taxes

1,600

 

(818)

 

1,185

 

Marketing

1,111

 

1,116

 

1,141

 

Professional services and legal

1,048

 

862

 

1,184

 

FDIC insurance

770

 

222

 

516

 

Other

8,033

 

5,935

 

5,449

 

Total Noninterest Expense

46,391

 

50,044

 

38,884

 

Income Before Taxes

15,998

 

27,360

 

27,150

 

Provision for income taxes

2,767

 

5,091

 

4,222

 

Net Income

$13,231

 

$22,269

 

$22,928

 
             

Per Share Data

           

Shares outstanding at end of period

39,125,425

 

39,560,304

 

34,330,136

 

Average shares outstanding - diluted

39,325,938

 

35,913,237

 

34,542,811

 

Diluted earnings per share

$0.34

 

$0.62

 

$0.66

 

Dividends declared per share

$0.28

 

$0.28

 

$0.27

 

Dividend yield (annualized)

4.10%

 

2.78%

 

2.73%

 

Dividends paid to net income

83.52%

 

42.94%

 

40.64%

 

Book value

$30.06

 

$30.13

 

$27.47

 

Tangible book value (1)

$20.29

 

$20.52

 

$19.04

 

Market value

$27.32

 

$40.29

 

$39.53

 

Profitability Ratios (annualized)

           

Return on average assets

0.61%

 

1.11%

 

1.29%

 

Return on average shareholders' equity

4.47%

 

8.30%

 

9.84%

 

Return on average tangible shareholders' equity (2)

6.82%

 

12.04%

 

14.27%

 

Efficiency ratio (FTE) (3)

52.89%

 

49.64%

 

53.55%

 
                   

(a)Upon adoption of CECL on January 1, 2020, provision for credit losses has been modified to also include amounts related
to unfunded loan commitments. Prior period amounts have been restated to conform to the current presentation.

 

 

 

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

 
   
 

2020

 

2019

 

2019

 
 

First

 

Fourth

 

First

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$187,684

 

$169,304

 

$116,820

 

Federal funds sold

 

28,519

 

 

Securities, at fair value

799,532

 

784,283

 

680,420

 

Loans held for sale

7,309

 

5,256

 

2,706

 

Commercial loans:

           

Commercial real estate

3,442,495

 

3,416,518

 

2,901,625

 

Commercial and industrial

1,781,402

 

1,720,833

 

1,513,007

 

Commercial construction

396,518

 

375,445

 

245,658

 

Total Commercial Loans

5,620,415

 

5,512,796

 

4,660,290

 

Consumer loans:

           

Residential mortgage

988,816

 

998,585

 

729,914

 

Home equity

544,405

 

538,348

 

463,566

 

Installment and other consumer

79,887

 

79,033

 

70,960

 

Consumer construction

13,222

 

8,390

 

10,722

 

Total Consumer Loans

1,626,330

 

1,624,356

 

1,275,162

 

Total Portfolio Loans

7,246,745

 

7,137,152

 

5,935,452

 

Allowance for credit losses

(96,850)

 

(62,224)

 

(61,409)

 

Total Portfolio Loans, Net

7,149,895

 

7,074,928

 

5,874,043

 

Federal Home Loan Bank and other restricted stock, at cost

28,253

 

22,977

 

19,959

 

Commercial rate swaps

88,135

 

25,647

 

10,645

 

Goodwill

374,270

 

371,621

 

287,446

 

Other assets

370,418

 

282,115

 

237,223

 

Total Assets

$9,005,496

 

$8,764,649

 

$7,229,262

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,702,960

 

$1,698,082

 

$1,423,436

 

Interest-bearing demand

962,937

 

962,331

 

541,053

 

Money market

1,967,692

 

1,949,811

 

1,700,964

 

Savings

836,237

 

830,919

 

767,175

 

Certificates of deposit

1,588,053

 

1,595,433

 

1,400,773

 

Total Deposits

7,057,879

 

7,036,576

 

5,833,401

 
             

Borrowings:

           

Securities sold under repurchase agreements

69,644

 

19,888

 

23,427

 

Short-term borrowings

410,240

 

281,319

 

235,000

 

Long-term borrowings

50,180

 

50,868

 

70,418

 

Junior subordinated debt securities

64,038

 

64,277

 

45,619

 

Total Borrowings

594,102

 

416,352

 

374,464

 

Other liabilities

177,264

 

119,723

 

78,241

 

Total Liabilities

7,829,245

 

7,572,651

 

6,286,106

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

1,176,251

 

1,191,998

 

943,156

 

Total Liabilities and Shareholders' Equity

$9,005,496

 

$8,764,649

 

$7,229,262

 
             

Capitalization Ratios

           

Shareholders' equity / assets

13.06%

 

13.60%

 

13.05%

 

Tangible common equity / tangible assets (4)

9.21%

 

9.68%

 

9.42%

 

Tier 1 leverage ratio

10.03%

 

10.29%

 

9.96%

 

Common equity tier 1 capital

10.93%

 

11.43%

 

11.35%

 

Risk-based capital - tier 1

11.32%

 

11.84%

 

11.69%

 

Risk-based capital - total

12.73%

 

13.22%

 

13.19%

 
                 

 

 

 

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

 
   
 

2020

 

2019

 

2019

   
 

First

 

Fourth

 

First

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Net Interest Margin (FTE) (QTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

$99,646

1.42%

$82,255

1.44%

$53,588

2.63%

 

Securities, at fair value

786,858

2.54%

696,889

2.61%

680,517

2.68%

 

Loans held for sale

1,867

3.76%

3,582

3.56%

894

4.07%

 

Commercial real estate

3,408,684

4.73%

3,056,513

4.77%

2,905,272

5.02%

 

Commercial and industrial

1,751,678

4.53%

1,666,061

4.77%

1,508,658

5.20%

 

Commercial construction

386,363

4.68%

339,274

4.71%

249,997

5.37%

 

Total Commercial Loans

5,546,725

4.66%

5,061,848

4.77%

4,663,927

5.10%

 

Residential mortgage

990,866

4.18%

850,566

4.42%

722,554

4.38%

 

Home equity

540,193

4.84%

499,520

5.03%

467,739

5.44%

 

Installment and other consumer

79,680

7.01%

76,029

7.13%

69,099

7.17%

 

Consumer construction

10,508

4.61%

12,021

4.96%

9,466

6.19%

 

Total Consumer Loans

1,621,247

4.54%

1,438,136

4.78%

1,268,858

4.93%

 

Total Portfolio Loans

7,167,972

4.64%

6,499,984

4.77%

5,932,785

5.06%

 

Total Loans

7,169,839

4.64%

6,503,566

4.77%

5,933,679

5.06%

 

Federal Home Loan Bank and other restricted stock

23,601

6.90%

21,791

7.44%

24,471

8.49%

 

Total Interest-earning Assets

8,079,944

4.40%

7,304,501

4.53%

6,692,255

4.81%

 

Noninterest-earning assets

687,382

 

619,586

 

518,500

   

Total Assets

$8,767,326

 

$7,924,087

 

$7,210,755

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

$942,030

0.59%

$810,909

0.75%

$545,695

0.41%

 

Money market

1,993,764

1.27%

1,791,981

1.53%

1,568,417

1.89%

 

Savings

830,985

0.23%

783,990

0.26%

770,587

0.25%

 

Certificates of deposit

1,601,324

1.80%

1,417,619

1.91%

1,434,511

1.88%

 

Total interest-bearing Deposits

5,368,103

1.15%

4,804,499

1.30%

4,319,210

1.41%

 

Securities sold under repurchase agreements

30,790

0.56%

14,046

0.75%

23,170

0.52%

 

Short-term borrowings

286,365

1.61%

241,368

2.08%

319,389

2.72%

 

Long-term borrowings

51,845

2.52%

56,026

2.63%

70,196

2.84%

 

Junior subordinated debt securities

64,195

4.40%

54,801

4.33%

45,619

5.21%

 

Total Borrowings

433,195

2.06%

366,241

2.45%

458,374

2.88%

 

Total interest-bearing Liabilities

5,801,298

1.22%

5,170,740

1.38%

4,777,584

1.55%

 

Noninterest-bearing liabilities

1,776,453

 

1,689,076

 

1,488,057

   

Shareholders' equity

1,189,575

 

1,064,271

 

945,114

   

Total Liabilities and Shareholders' Equity

$8,767,326

 

$7,924,087

 

$7,210,755

   
               

Net Interest Margin (5)

 

3.53%

 

3.55%

 

3.71%

 
               

 

 

 

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

 
   
 

2020

 

2019

 

2019

   
 

First

 

Fourth

 

First

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Nonperforming Loans (NPL)

             

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

 

Commercial real estate

$50,508

 

1.47%

$29,140

 

0.85%

$29,109

 

1.00%

 

Commercial and industrial

9,081

 

0.51%

13,982

 

0.81%

6,810

 

0.45%

 

Commercial construction

571

 

0.14%

737

 

0.20%

1,226

 

0.50%

 

Total Nonperforming Commercial Loans

60,160

 

1.07%

43,859

 

0.80%

37,145

 

0.80%

 

Consumer loans:

             

Residential mortgage

10,582

 

1.07%

7,519

 

0.75%

6,630

 

0.91%

 

Home equity

2,797

 

0.51%

2,639

 

0.49%

4,146

 

0.89%

 

Installment and other consumer

258

 

0.32%

40

 

0.05%

29

 

0.04%

 

Total Nonperforming Consumer Loans

13,637

 

0.83%

10,198

 

0.63%

10,805

 

0.85%

 

Total Nonperforming Loans

$73,797

 

1.02%

$54,057

 

0.76%

$47,950

 

0.81%

 
   
   
 

2020

 

2019

 

2019

   
 

First

 

Fourth

 

First

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Loan Charge-offs/(Recoveries)

             

Charge-offs

$11,445

   

$2,798

   

$6,023

     

Recoveries

(289)

   

(802)

   

(788)

     

Net Loan Charge-offs/(Recoveries)

$11,156

   

$1,996

   

$5,235

     
               

Net Loan Charge-offs/(Recoveries)

             

Commercial loans:

             

Commercial real estate

$428

   

$829

   

($121)

     

Commercial and industrial

10,265

   

(121)

   

5,059

     

Commercial construction

(2)

   

404

   

(1)

     

Total Commercial Loan Charge-offs/(Recoveries)

10,691

   

1,112

   

4,937

     

Consumer loans:

             

Residential mortgage

19

   

112

   

115

     

Home equity

80

   

383

   

(19)

     

Installment and other consumer

366

   

389

   

284

     

Consumer construction

   

   

(82)

     

Total Consumer Loan Charge-offs

465

   

884

   

298

     

Total Net Loan Charge-offs/(Recoveries)

$11,156

   

$1,996

   

$5,235

     
   
   
   
 

2020

 

2019

 

2019

   
 

First

 

Fourth

 

First

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Asset Quality Data

             

Nonperforming loans

$73,797

   

$54,057

   

$47,950

     

OREO

3,389

   

3,525

   

2,828

     

Nonperforming assets

77,186

   

57,582

   

50,778

     

Troubled debt restructurings (nonaccruing)

36,054

   

8,912

   

7,873

     

Troubled debt restructurings (accruing)

15,189

   

36,960

   

23,002

     

Total troubled debt restructurings

51,243

   

45,872

   

30,875

     

Nonperforming loans / loans

1.02%

   

0.76%

   

0.81%

     

Nonperforming assets / loans plus OREO

1.06%

   

0.81%

   

0.85%

     

Allowance for credit losses / total portfolio loans

1.34%

   

0.87%

   

1.03%

     

Allowance for credit losses / nonperforming loans

131%

   

115%

   

128%

     

Net loan charge-offs (recoveries)

$11,156

   

$1,996

   

$5,235

     

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

0.63%

   

0.12%

   

0.36%

     
 

 

 

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

 
   

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

 
   
 

2020

 

2019

 

2019

 
 

First

 

Fourth

 

First

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

 Total shareholders' equity

$1,176,251

   

$1,191,998

   

$943,156

   

      Less: goodwill and other intangible assets

(384,557)

   

(382,540)

   

(289,864)

   

     Tax effect of other intangible assets

2,160

   

2,293

   

508

   

 Tangible common equity (non-GAAP)

$793,854

   

$811,751

   

$653,800

   

 Common shares outstanding

39,125

   

39,560

   

34,330

   

 Tangible book value (non-GAAP)

$20.29

   

$20.52

   

$19.04

   
             

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

           

  Net income (annualized)

$53,216

   

$88,350

   

$92,987

   

       Plus: amortization of intangibles (annualized)

2,542

   

1,298

   

739

   

       Tax effect of amortization of intangibles (annualized)

(534)

   

(273)

   

(155)

   

  Net income before amortization of intangibles (annualized)

$55,224

   

$89,375

   

$93,571

   
             

  Average total shareholders' equity

$1,189,575

   

$1,064,271

   

$945,114

   

       Less: average goodwill and other intangible assets

(382,025)

   

(323,281)

   

(289,954)

   

       Tax effect of average goodwill and other intangible assets

2,235

   

1,077

   

527

   

  Average tangible equity (non-GAAP)

$809,785

   

$742,067

   

$655,687

   

  Return on average tangible shareholders' equity (non-GAAP)

6.82%

   

12.04%

   

14.27%

   
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$46,391

   

$50,178

   

$38,919

   

Less: merger related expenses

(2,342)

   

(10,179)

   

   

Noninterest expense excluding nonrecurring items

$44,049

   

$39,999

   

$38,919

   
             

Net interest income per consolidated statements of net income

$70,036

   

$60,827

   

$60,356

   

     Less: net (gains) losses on sale of securities

   

26,000

   

   

     Plus: taxable equivalent adjustment

849

   

903

   

961

   

Net interest income (FTE) (non-GAAP)

$70,885

   

$65,341

   

$61,317

   

Noninterest income

12,403

   

15,231

   

11,362

   

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

$83,288

   

$80,572

   

$72,679

   

Efficiency ratio (non-GAAP)

52.89%

   

49.64%

   

53.55%

   
             

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

           

 Total shareholders' equity

$1,176,251

   

$1,191,998

   

$943,156

   

      Less: goodwill and other intangible assets

(384,557)

   

(382,540)

   

(289,864)

   

      Tax effect of goodwill and other intangible assets

2,160

   

2,293

   

508

   

 Tangible common equity (non-GAAP)

$793,854

   

$811,751

   

$653,800

   
             

 Total assets

$9,005,497

   

$8,764,649

   

$7,229,262

   

      Less: goodwill and other intangible assets

(384,557)

   

(382,540)

   

(289,864)

   

      Tax effect of goodwill and other intangible assets

2,160

   

2,293

   

508

   

 Tangible assets (non-GAAP)

$8,623,100

   

$8,384,402

   

$6,939,906

   

 Tangible common equity to tangible assets (non-GAAP)

9.21%

   

9.68%

   

9.42%

   
             

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

           

 Interest income

$87,589

   

$82,457

   

$78,590

   

      Less: interest expense

(17,553)

   

(18,045)

   

(18,234)

   

 Net interest income per consolidated statements of net income

$70,036

   

$64,412

   

$60,356

   

      Plus: taxable equivalent adjustment

849

   

903

   

961

   

 Net interest income (FTE) (non-GAAP)

$70,885

   

$65,315

   

$61,317

   

 Net interest income (FTE) (annualized)

$285,098

   

$259,130

   

$248,675

   

 Average earning assets

$8,079,944

   

$7,304,501

   

$6,692,255

   

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

3.53%

   

3.55%

   

3.71%

   

 

 

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

 
   

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

 
   

The following profitability metrics are adjusted to exclude merger related expenses from the DNB merger
in the first quarter ended March 31, 2020.

 
   
 

2020

 
 

First

 
 

Quarter

 
     

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

   

Net income

$13,231

   

Adjust for merger related expenses

2,342

   

Tax effect of merger related expenses

(405)

   

Net income excluding merger related expenses

$15,168

   
     

Net income excluding merger related expenses (annualized)

$61,005

   

Plus: amortization of intangibles (annualized)

2,542

   

Tax effect of amortization of intangibles (annualized)

(440)

   

Net income before amortization of intangibles (annualized)

$63,107

   
     

Average total shareholders' equity

$1,189,575

   

Less: average goodwill and other intangible assets

(382,025)

   

Tax effect of average goodwill and other intangible assets

2,235

   

Average tangible equity (non-GAAP)

$809,785

   

Return on average tangible shareholders' equity (non-GAAP)

7.79%

   
     

Return on Average Assets (non-GAAP)

   

Net income excluding merger related expenses (annualized)

$61,005

   

Average total assets

8,767,326

   

Return on average assets (non-GAAP)

0.70%

   
     

Return on Average Equity (non-GAAP)

   

Net income excluding merger related expenses (annualized)

$61,005

   

Average total shareholders' equity

1,189,575

   

Return on average assets (non-GAAP)

5.13%

   
       
       
       

 

 

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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, www.stbancorp.com