S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2017 Results

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Jan 25, 2018

S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2017 Results

INDIANA, Pa., Jan. 25, 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 fourth quarter and full year 2017 earnings. Fourth quarter of 2017 net income was $9.3 million and diluted earnings per share was $0.27.  As a result of the December 2017 enactment of the Tax Cuts and Jobs Act, additional tax expense of $13.4 million was recognized to re-measure the net deferred tax asset (DTA) in the fourth quarter of 2017. This re-measurement decreased quarterly and annual diluted earnings per share by $0.38. Excluding the net DTA re-measurement, fourth quarter of 2017 net income was $22.7 million (non-GAAP) and diluted earnings per share was $0.65 (non-GAAP). This compares to fourth quarter of 2016 net income of $17.7 million, or $0.51 per diluted share, and third quarter of 2017 net income of $22.7 million, or $0.65 per diluted share.

 

S&T Bancorp, Inc.

 

Net income was $73.0 million for the year ended December 31, 2017, with diluted earnings per share of $2.09. Excluding the net DTA re-measurement, full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP) compared to net income of $71.4 million and diluted earnings per share of $2.05 for 2016.

Fourth Quarter of 2017 Highlights:

  • Return on average assets (ROA) was 0.52%, return on average equity (ROE) was 4.14% and return on average tangible equity (ROTE) (non-GAAP) was 6.30%.
      
  • Excluding the net DTA re-measurement of $13.4 million, ROA was 1.26% (non-GAAP), ROE was 10.09% (non-GAAP) and ROTE was 15.16% (non-GAAP).
      
  • Net interest margin (FTE) (non-GAAP) was stable at 3.58% compared to 3.59% in the third quarter of 2017.
     
  • Net loan charge-offs were $1.3 million, representing 0.09% of average loans on an annualized basis for the fourth quarter of 2017.
     
  • S&T declared a $0.22 per share dividend, a 10% increase compared to $0.20 in the same period a year ago.

Full Year 2017 Highlights:

  • Net income increased to $73.0 million compared to $71.4 million for 2016. Excluding the net DTA re-measurement of $13.4 million, net income increased 21% to $86.4 million (non-GAAP) compared to 2016.
     
  • ROA was 1.03%, ROE was 8.37% and ROTE (non-GAAP) was 12.77%.
     
  • Excluding the DTA re-measurement of $13.4 million, ROA was 1.22% (non-GAAP), ROE was 9.90% (non-GAAP) and ROTE was 15.08% (non-GAAP).
     
  • Net interest income increased $22.5 million, or 11%, and net interest margin (FTE) (non-GAAP) increased 9 basis points to 3.56% compared to 3.47% in 2016.
     
  • Asset quality metrics improved with a decrease in nonperforming loans of $18.7 million, or 44%, compared to December 31, 2016.

"Our performance in 2017 reached another milestone for net income," said Todd Brice, president and chief executive officer of S&T. "Results were impacted by an 11% increase in net interest income as well as controlled expenses and a significant improvement in our asset quality."

Fourth Quarter of 2017 Results

Net Interest Income

Net interest income increased $0.3 million to $57.8 million compared to $57.5 million in the third quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined one basis point to 3.58% compared to 3.59% in the prior quarter.  The increase in net interest income is due to an increase in average loans of $49.6 million and higher short-term rates.

Asset Quality

Asset quality trends continued to be favorable during the fourth quarter of 2017. Total nonperforming loans decreased 19% to $23.9 million, or 0.42% of total loans, at December 31, 2017 compared to $29.5 million, or 0.50% of total loans, at September 30, 2017. Net charge-offs were $1.3 million, or 0.09% of average loans on an annualized basis in the fourth quarter of 2017 compared to net charge-offs of $1.5 million, or 0.10% of average loans on an annualized basis, in the third quarter of 2017.  As a result of improving asset quality, the provision for loan losses decreased $1.9 million to $1.0 million in the fourth quarter of 2017 compared to $2.9 million in the third quarter of 2017. The allowance for loan losses was $56.4 million, or 0.98% of total portfolio loans, at December 31, 2017 compared to $56.7 million, or 0.97% of total portfolio loans, at September 30, 2017.

Noninterest Income and Expense

Noninterest income decreased $0.9 million in the fourth quarter of 2017 to $12.7 million compared to $13.6 million in the third quarter of 2017.  Securities were sold resulting in a $1.0 million loss during the fourth quarter of 2017. Bank owned life insurance decreased $0.7 million due to a claim in the third quarter of 2017. Offsetting these decreases was an increase in other income from a $1.0 million gain on the sale of a branch during the fourth quarter of 2017.

Noninterest expense increased $1.4 million in the fourth quarter of 2017 to $37.9 million from $36.5 million in the third quarter of 2017.  Professional services and legal expenses increased $0.4 million mainly related to selling majority ownership of our insurance business that closed on January 1, 2018.  Marketing expense increased $0.4 million due to normal timing of marketing campaigns. Other expense increased $0.8 million primarily due to higher loan related costs.

Financial Condition

Total assets were $7.1 billion at December 31, 2017 compared to $7.2 billion at September 30, 2017. During the fourth quarter of 2017, $41.1 million of loans and $37.8 million of deposits were sold related to a branch sale. Total portfolio loans decreased $59.3 million compared to the third quarter of 2017 primarily due to higher loan payoffs. S&T's risk-based capital ratios were relatively unchanged compared to the third quarter of 2017. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2017 Results

Full year 2017 net income increased to $73.0 million and diluted earnings per share was $2.09. Excluding the net DTA re-measurement of $13.4 million, or $0.38 per diluted share, net income increased 21% to $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP). Net interest income increased $22.5 million, or 11%, in 2017 due to average loan growth of $438 million, or 8.2%, and higher short-term rates. Net interest margin (FTE) (non-GAAP) increased to 3.56% compared to 3.47% for 2016. Asset quality improved throughout the year resulting in a $4.1 million decline in the provision for loan losses to $13.9 million. Nonperforming loans decreased $18.7 million, or 44%, and net loan charge-offs to average loans decreased to 0.18% compared to 0.25% in 2016.  Expenses were well controlled during 2017 with an efficiency ratio (non-GAAP) of 51.77% compared to 54.06% for 2016. To view an infographic featuring 2017 highlights, click here.

Dividend

The Board of Directors of S&T declared a $0.22 per share cash dividend at its regular meeting held January 22, 2018. This is an increase of 10% compared to a common stock dividend of $0.20 per share declared in the same period in the prior year. The dividend is payable February 22, 2018 to shareholders of record on February 8, 2018. Dividends declared in 2017 increased $0.05, or 6.5%, to $0.82 compared to $0.77 for 2016.

Non-GAAP Financial Measures

This release presents certain non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, see "Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures" in the accompanying tables.

Conference Call

S&T will host its fourth quarter 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 25, 2018. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2017 Conference Call" and follow the instructions.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is a $7.1 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





2017


2017


2016



Fourth


Third


Fourth


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST INCOME







Loans, including fees

$63,407


$62,450


$55,168


Investment securities:







Taxable

3,164


2,988


2,636


Tax-exempt

871


896


894


Dividends

413


389


398


Total Interest Income

67,855


66,723


59,096









INTEREST EXPENSE







Deposits

7,227


6,748


5,289


Borrowings and junior subordinated debt securities

2,800


2,519


1,349


Total Interest Expense

10,027


9,267


6,638









NET INTEREST INCOME

57,828


57,456


52,458


Provision for loan losses

982


2,850


5,586


Net Interest Income After Provision for Loan Losses

56,846


54,606


46,872









NONINTEREST INCOME







Securities (losses) gains, net

(986)




Service charges on deposit accounts

3,240


3,207


3,240


Debit and credit card fees

3,077


3,067


3,125


Wealth management fees

2,521


2,406


2,509


Insurance fees

1,160


1,333


1,066


Mortgage banking

635


872


694


Bank owned life insurance

506


1,209


553


Other

2,497


1,457


1,735


Total Noninterest Income

12,650


13,551


12,922









NONINTEREST EXPENSE







Salaries and employee benefits

20,006


20,325


19,787


Net occupancy

2,736


2,692


2,644


Data processing

2,131


2,284


2,079


Furniture and equipment

2,200


1,890


1,710


FDIC insurance

1,083


1,152


1,046


Other taxes

1,241


1,208


974


Professional services and legal

1,224


870


921


Marketing

1,191


766


840


Other

6,135


5,366


5,624


Total Noninterest Expense

37,947


36,553


35,625









Income Before Taxes

31,549


31,604


24,169


Provision for income taxes

22,255


8,883


6,510









Net Income

$9,294


$22,721


$17,659









Per Share Data:







Shares outstanding at end of period

34,971,929


34,979,192


34,913,023


Average shares outstanding - diluted

35,019,866


34,960,139


34,839,189


Diluted earnings per share

$0.27


$0.65


$0.51


Dividends declared per share

$0.22


$0.20


$0.20


Dividend yield (annualized)

2.21%


2.02%


2.05%


Dividends paid to net income

82.53%


30.69%


39.41%


Book value

$25.28


$25.37


$24.12


Tangible book value (1)

$16.87


$16.96


$15.67


Market value

$39.81


$39.58


$39.04









Profitability Ratios (annualized)







Return on average assets

0.52%


1.27%


1.04%


Return on average shareholders' equity

4.14%


10.23%


8.36%


Return on average tangible shareholders' equity (2)

6.30%


15.47%


13.05%


Efficiency ratio (FTE) (3)

51.75%


50.16%


53.04%



 

 

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





For the Twelve Months Ended December 31,


(dollars in thousands, except per share data)


2017


2016


INTEREST INCOME






Loans, including fees


$243,315


$212,301


Investment securities:






Taxable


11,947


10,340


Tax-exempt


3,615


3,658


Dividends


1,765


1,475


Total Interest Income


260,642


227,774








INTEREST EXPENSE






Deposits


25,330


19,692


Borrowings and junior subordinated debt securities


9,579


4,823


Total Interest Expense


34,909


24,515








NET INTEREST INCOME


225,733


203,259


Provision for loan losses


13,883


17,965


Net Interest Income After Provision for Loan Losses


211,850


185,294








NONINTEREST INCOME






Securities gains (losses), net


3,000



Service charges on deposit accounts


12,458


12,512


Debit and credit card fees


12,029


11,943


Wealth management fees


9,758


10,456


Insurance fees


5,418


5,253


Mortgage banking


2,915


2,879


Bank owned life insurance


2,756


2,122


Gain on sale of credit card portfolio



2,066


Other


7,128


7,404


Total Noninterest Income


55,462


54,635








NONINTEREST EXPENSE






Salaries and employee benefits


80,776


77,325


Net occupancy


10,994


11,057


Data processing


8,801


8,837


Furniture and equipment


7,946


7,290


FDIC insurance


4,543


3,984


Other taxes


4,509


4,050


Professional services and legal


4,096


3,466


Marketing


3,659


3,713


Other


22,583


23,510


Total Noninterest Expense


147,907


143,232








Income Before Taxes


119,405


96,697


Provision for income taxes


46,437


25,305








Net Income


$72,968


$71,392








Per Share Data:






Average shares outstanding - diluted


34,954,767


34,773,170


Diluted earnings per share


$2.09


$2.05


Dividends declared per share


$0.82


$0.77


Dividends paid to net income


39.15%


37.52%








Profitability Ratios






Return on average assets


1.03%


1.08%


Return on average shareholders' equity


8.37%


8.67%


Return on average tangible shareholders' equity (6)


12.77%


13.71%


Efficiency ratio (FTE) (7)


51.77%


54.06%


 

 

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



2017


2017


2016



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks, including interest-bearing deposits

$117,152


$114,440


$139,486


Securities available-for-sale, at fair value

698,291


697,954


693,487


Loans held for sale

4,485


47,936


3,793


Commercial loans:







Commercial real estate

2,685,994


2,681,693


2,498,476


Commercial and industrial

1,433,266


1,446,811


1,401,035


Commercial construction

384,334


432,887


455,884


   Total Commercial Loans

4,503,594


4,561,391


4,355,395


Consumer loans:







Residential mortgage

698,774


697,367


701,982


Home equity

487,326


487,806


482,284


Installment and other consumer

67,204


69,644


65,852


Consumer construction

4,551


4,550


5,906


   Total Consumer Loans

1,257,855


1,259,367


1,256,024


Total portfolio loans

5,761,449


5,820,758


5,611,419


Allowance for loan losses

(56,390)


(56,712)


(52,775)


Total portfolio loans, net

5,705,059


5,764,046


5,558,644


Federal Home Loan Bank and other restricted stock, at cost

29,270


33,120


31,817


Goodwill

291,670


291,670


291,670


Other assets

214,328


221,013


224,156


Total Assets

$7,060,255


$7,170,179


$6,943,053









LIABILITIES







Deposits:







Noninterest-bearing demand

$1,387,712


$1,348,939


$1,263,833


Interest-bearing demand

603,141


646,195


638,300


Money market

1,146,156


1,036,726


936,461


Savings

893,119


940,989


1,050,131


Certificates of deposit

1,397,763


1,431,431


1,383,652


Deposits held for sale


38,960



Total Deposits

5,427,891


5,443,240


5,272,377









Securities sold under repurchase agreements

50,161


39,923


50,832


Short-term borrowings

540,000


685,000


660,000


Long-term borrowings

47,301


12,911


14,713


Junior subordinated debt securities

45,619


45,619


45,619


Total Borrowings

683,081


783,453


771,164


Other liabilities

65,252


55,910


57,556


Total Liabilities

6,176,224


6,282,603


6,101,097









SHAREHOLDERS' EQUITY







Total Shareholders' Equity

884,031


887,576


841,956


Total Liabilities and Shareholders' Equity

$7,060,255


$7,170,179


$6,943,053









Capitalization Ratios







Shareholders' equity / assets

12.52%


12.38%


12.13%


Tangible common equity / tangible assets (4)

8.72%


8.63%


8.23%


Tier 1 leverage ratio

9.17%


9.25%


8.98%


Common equity tier 1 capital

10.71%


10.70%


10.04%


Risk-based capital - tier 1

11.06%


11.05%


10.39%


Risk-based capital - total

12.55%


12.54%


11.86%



 

 

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












2017



2017



2016




Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



Net Interest Margin (FTE) (QTD Averages)










ASSETS










Interest-bearing deposits with banks

$56,989


1.12%

$53,794


1.25%

$43,023


0.45%

Securities available-for-sale, at fair value

696,411


2.53%

690,986


2.46%

679,688


2.41%

Loans held for sale

35,001


4.23%

15,789


3.88%

8,959


4.33%

Commercial real estate

2,684,481


4.42%

2,678,835


4.38%

2,457,985


4.12%

Commercial and industrial

1,453,554


4.47%

1,404,047


4.45%

1,371,092


4.05%

Commercial construction

405,285


4.26%

425,228


4.27%

426,245


3.66%

Total Commercial Loans

4,543,320


4.42%

4,508,110


4.39%

4,255,322


4.06%

Residential mortgage

696,422


4.14%

702,702


4.10%

692,937


4.06%

Home equity

489,031


4.34%

485,501


4.37%

485,107


3.91%

Installment and other consumer

68,459


6.63%

70,118


6.57%

64,192


6.47%

Consumer construction

4,107


4.41%

4,486


4.49%

6,557


4.05%

Total Consumer Loans

1,258,019


4.35%

1,262,807


4.34%

1,248,793


4.13%

Total portfolio loans

5,801,339


4.41%

5,770,917


4.38%

5,504,115


4.07%

Total loans

5,836,340


4.41%

5,786,706


4.38%

5,513,074


4.07%

Federal Home Loan Bank and other restricted stock

32,026


4.64%

30,184


4.61%

26,149


4.56%

Total Interest-earning Assets

6,621,766


4.18%

6,561,670


4.15%

6,261,934


3.87%

Noninterest-earning assets

512,396



510,681



524,653



Total Assets

$7,134,162



$7,072,351



$6,786,587













LIABILITIES AND SHAREHOLDERS' EQUITY










Interest-bearing demand

$620,027


0.25%

$647,442


0.25%

$655,894


0.18%

Money market

1,102,093


0.92%

999,892


0.87%

905,715


0.51%

Savings

914,871


0.21%

979,767


0.21%

1,033,297


0.20%

Certificates of deposit

1,439,703


1.05%

1,457,649


0.98%

1,424,606


0.92%

Total interest-bearing deposits

4,076,694


0.70%

4,084,750


0.66%

4,019,512


0.52%

Securities sold under repurchase agreements

42,599


0.26%

45,158


0.16%

42,570


0.01%

Short-term borrowings

625,189


1.38%

600,893


1.30%

500,890


0.68%

Long-term borrowings

30,813


2.04%

13,162


3.01%

14,957


2.85%

Junior subordinated debt securities

45,619


3.82%

45,619


3.71%

45,619


3.33%

Total borrowings

744,220


1.49%

704,832


1.42%

604,036


0.89%

Total interest-bearing liabilities

4,820,914


0.83%

4,789,582


0.77%

4,623,548


0.57%

Noninterest-bearing liabilities

1,422,074



1,401,755



1,322,415



Shareholders' equity

891,174



881,014



840,624



Total Liabilities and Shareholders' Equity

$7,134,162



$7,072,351



$6,786,587













Net Interest Margin (5)



3.58%



3.59%



3.45%





















 

 

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









For the Twelve Months Ended December 31,


(dollars in thousands)




2017


2016


Net Interest Margin (FTE) (YTD Averages)








ASSETS








Interest-bearing deposits with banks




$56,344

1.03%

$41,810

0.50%

Securities available-for-sale, at fair value




698,460

2.48%

676,696

2.41%

Loans held for sale




14,607

3.98%

14,255

5.71%

Commercial real estate




2,638,766

4.34%

2,344,050

4.13%

Commercial and industrial




1,425,421

4.35%

1,348,287

3.98%

Commercial construction




426,574

4.08%

400,997

3.69%

Total Commercial Loans




4,490,761

4.32%

4,093,334

4.04%

Residential mortgage




699,843

4.11%

668,236

4.12%

Home equity




484,023

4.31%

477,011

4.03%

Installment and other consumer




69,163

6.54%

64,960

6.37%

Consumer construction




4,631

4.35%

7,038

4.08%

Total Consumer Loans




1,257,660

4.32%

1,217,245

4.20%

Total portfolio loans




5,748,421

4.32%

5,310,579

4.08%

Total loans




5,763,028

4.32%

5,324,834

4.08%

Federal Home Loan Bank and other restricted stock




31,989

4.64%

23,811

4.53%

Total Interest-earning Assets




6,549,821

4.09%

6,067,151

3.87%

Noninterest-earning assets




510,411


521,104


Total Assets




$7,060,232


$6,588,255










LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand




$637,526

0.22%

$651,118

0.17%

Money market




994,783

0.79%

735,159

0.44%

Savings




988,504

0.21%

1,039,664

0.19%

Certificates of deposit




1,439,711

0.97%

1,472,613

0.91%

Total interest-bearing deposits




4,060,524

0.62%

3,898,554

0.51%

Securities sold under repurchase agreements




46,662

0.12%

51,021

0.01%

Short-term borrowings




644,864

1.15%

414,426

0.65%

Long-term borrowings




18,057

2.57%

50,257

1.33%

Junior subordinated debt securities




45,619

3.65%

45,619

3.14%

Total borrowings




755,202

1.27%

561,323

0.86%

Total Interest-bearing Liabilities




4,815,726

0.72%

4,459,877

0.55%

Noninterest-bearing liabilities




1,372,376


1,304,771


Shareholders' equity




872,130


823,607


Total Liabilities and Shareholders' Equity




$7,060,232


$6,588,255










Net Interest Margin (8)





3.56%


3.47%



















2017


2017


2016




Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter


Nonperforming Loans (NPL)








Commercial loans:



% NPL


%NPL


% NPL

Commercial real estate


$3,468

0.13%

$6,571

0.25%

$16,172

0.65%

Commercial and industrial


5,646

0.39%

7,349

0.51%

8,071

0.58%

Commercial construction


3,873

1.01%

4,068

0.94%

4,927

1.08%

Total Nonperforming Commercial Loans


12,987

0.29%

17,988

0.39%

29,170

0.67%

Consumer loans:








Residential mortgage


7,165

1.03%

7,782

1.11%

9,918

1.41%

Home equity


3,715

0.76%

3,675

0.75%

3,439

0.71%

Installment and other consumer


71

0.11%

48

0.07%

108

0.16%

Total Nonperforming Consumer Loans


10,951

0.87%

11,505

0.91%

13,465

1.07%

Total Nonperforming Loans


$23,938

0.42%

$29,493

0.50%

$42,635

0.76%


 

 

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












2017


2017


2016




Fourth


Third


Fourth


(dollars in thousands)


Quarter


Quarter


Quarter


Loan Charge-offs








Charge-offs


$2,073


$2,660


$6,938


Recoveries


(769)


(1,171)


(333)


Net Loan Charge-offs


$1,304


$1,489


$6,605










Net Loan Charge-offs








Commercial loans:








Commercial real estate


($191)


($145)


$1,276


Commercial and industrial


513


401


3,433


Commercial construction


465


980


768


Total Commercial Loan Charge-offs


787


1,236


5,477


Consumer loans:








Residential mortgage


162


44


722


Home equity


120


10


26


Installment and other consumer


272


243


453


Consumer construction


(37)


(44)


(73)


Total Consumer Loan Charge-offs


517


253


1,128


Total Net Loan Charge-offs


$1,304


$1,489


$6,605






















For the Twelve Months Ended December 31,


(dollars in thousands)




2017


2016


Loan Charge-offs








Charge-offs




$13,496


$15,561


Recoveries




(3,228)


(2,224)


Net Loan Charge-offs




$10,268


$13,337










Net Loan Charge-offs








Commercial loans:








Commercial real estate




$1,494


$2,422


Commercial and industrial




4,055


6,088


Commercial construction




1,720


1,856


Total Commercial Loan Charge-offs




7,269


10,366


Consumer loans:








Residential mortgage




1,382


1,230


Home equity




666


183


Installment and other consumer




1,067


1,747


Consumer construction




(116)


(189)


Total Consumer Loan Charge-offs




2,999


2,971


Total Net Loan Charge-offs




$10,268


$13,337


 

 

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














2017



2017



2016




Fourth



Third



Fourth




Quarter



Quarter



Quarter



Asset Quality Data










Nonperforming loans

$23,938



$29,493



$42,635



Assets acquired through foreclosure or repossession

469



1,033



679



Nonperforming assets

24,407



30,526



43,314



Troubled debt restructurings (nonaccruing)

11,150



10,203



11,598



Troubled debt restructurings (accruing)

14,901



15,605



13,423



Total troubled debt restructurings

26,051



25,808



25,021



Nonperforming loans / loans

0.42%



0.50%



0.76%



Nonperforming assets / loans plus OREO

0.42%



0.52%



0.77%



Allowance for loan losses / total portfolio loans

0.98%



0.97%



0.94%



Allowance for loan losses / nonperforming loans

236%



192%



124%



Net loan charge-offs (recoveries)

$1,304



$1,489



$6,605



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

0.09%



0.10%



0.48%



























For the Twelve Months Ended December 31,



(dollars in thousands)




2017



2016



Asset Quality Data










Net loan charge-offs (recoveries)




$10,268



$13,337



Net loan charge-offs (recoveries) / average loans




0.18%



0.25%




 

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

 

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









2017


2017


2016



Fourth


Third


Fourth



Quarter


Quarter


Quarter









(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$884,031


$887,576


$841,956


 Less: goodwill and other intangible assets

(295,347)


(295,627)


(296,581)


Tax effect of other intangible assets

1,287


1,385


1,719


Tangible common equity (non-GAAP)

$589,971


$593,334


$547,094


Common shares outstanding

34,972


34,979


34,913


Tangible book value (non-GAAP)

$16.87


$16.96


$15.67









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







Net income (annualized)

$36,873


$90,144


$70,254


Plus: amortization of intangibles (annualized)

1,109


930


1,480


Tax effect of amortization of intangibles (annualized)

(388)


(326)


(518)


Net income before amortization of intangibles (annualized)

$37,594


$90,748


$71,216









Average total shareholders' equity

$891,174


$881,014


$840,624


  Less: average goodwill and other intangible assets

(295,495)


(295,775)


(296,784)


Tax effect of average goodwill and other intangible assets

1,339


1,437


1,790


Average tangible equity (non-GAAP)

$597,018


$586,676


$545,630


Return on average tangible equity (non-GAAP)

6.30%


15.47%


13.05%









(3) Efficiency Ratio (non-GAAP)







Noninterest expense

$37,947


$36,553


$35,625









Net interest income per consolidated statements of net income

57,828


57,456


52,458


Less: securities (gains) losses, net

986




Plus: taxable equivalent adjustment

1,878


1,867


1,789


Net interest income (FTE) (non-GAAP)

$60,692


$59,323


$54,247


Noninterest income

12,650


13,551


12,922


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

73,342


72,874


67,169


Efficiency ratio (non-GAAP)

51.75%


50.16%


53.04%









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







Total shareholders' equity

$884,031


$887,576


$841,956


 Less: goodwill and other intangible assets

(295,347)


(295,627)


(296,581)


Tax effect of goodwill and other intangible assets

1,287


1,385


1,719


Tangible common equity (non-GAAP)

$589,971


$593,334


$547,094









Total assets

$7,060,255


$7,170,179


$6,943,053


 Less: goodwill and other intangible assets

(295,347)


(295,627)


(296,581)


Tax effect of goodwill and other intangible assets

1,287


1,385


1,719


Tangible assets (non-GAAP)

$6,766,195


$6,875,937


$6,648,191


Tangible common equity to tangible assets (non-GAAP)

8.72%


8.63%


8.23%









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







Interest income

$67,855


$66,723


$59,096


Less: interest expense

(10,027)


(9,267)


(6,638)


Net interest income per consolidated statements of net income

$57,828


$57,456


$52,458


Plus: taxable equivalent adjustment

1,878


1,867


1,789


Net interest income (FTE) (non-GAAP)

$59,706


$59,323


$54,247


Net interest income (FTE) (annualized)

$237,526


$235,358


$215,809


Average earning assets

$6,621,766


$6,561,670


$6,261,934


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

3.58%


3.59%


3.45%


 

 

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







For the Twelve Months Ended December 31,




2017


2016








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






Net income


$72,968


$71,392


Plus: amortization of intangibles


1,233


1,615


Tax effect of amortization of intangibles


(432)


(565)


Net income before amortization of intangibles


$73,769


$72,442







Average total shareholders' equity


$872,130


$823,607


  Less: average goodwill and other intangible assets


(295,937)


(297,377)


Tax effect of average goodwill and other intangible assets


1,493


1,992


Average tangible equity (non-GAAP)


$577,686


$528,222


Return on average tangible equity (non-GAAP)


12.77%


13.71%








(7) Efficiency Ratio (non-GAAP)






Noninterest expense


$147,907


$143,232








Net interest income per consolidated statements of net income


225,733


203,259


Less: securities (gains) losses, net


(3,000)



Plus: taxable equivalent adjustment


7,493


7,043


Net interest income (FTE) (non-GAAP)


230,226


210,302


Noninterest income


55,462


54,635


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


$285,688


$264,937


Efficiency ratio (non-GAAP)


51.77%


54.06%








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






Interest income


$260,642


$227,774


Less: interest expense


(34,909)


(24,515)


Net interest income per consolidated statements of net income


$225,733


$203,259


Plus: taxable equivalent adjustment


7,493


7,043


Net interest income (FTE) (non-GAAP)


$233,226


$210,302


Average earning assets


$6,549,821


$6,067,150


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


3.56%


3.47%



 

Reconciliations of net income, diluted earnings per share and selected financial ratios, adjusted to exclude the re-measurement of the DTA recognized in the fourth quarter of 2017.

 

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









2017


2017




Fourth


Full




Quarter


Year








Diluted Earnings Per Share






Net income


$9,294


$72,968


Plus: DTA re-measurement


13,433


13,433


Adjusted net Income (non-GAAP)


$22,727


$86,401








Average shares outstanding - diluted


35,020


34,955








Diluted earnings per share (non-GAAP)


$0.65


$2.47








Return on Average Assets






Net income


$9,294


$72,968


Plus: DTA re-measurement


13,433


13,433


Adjusted net Income (non-GAAP)


22,727


86,401


Adjusted net income (non-GAAP)(annualized)


$90,167


$86,401








Average assets


$7,134,162


$7,060,232


Plus: DTA re-measurement


2,336


589


Average assets (non-GAAP)


$7,136,498


$7,060,821








Return on average assets (non-GAAP)


1.26%


1.22%








Return on Average Shareholders' Equity






Net income


$9,294


$72,968


Plus: DTA re-measurement


13,433


13,433


Adjusted net Income (non-GAAP)


22,727


86,401


Adjusted net income (non-GAAP)(annualized)


$90,167


$86,401








Average equity


$891,174


$872,130


Plus: DTA re-measurement


2,336


589


Average equity (non-GAAP)


$893,510


$872,719








Return on average equity (non-GAAP)


10.09%


9.90%








Return on Average Tangible Shareholders' Equity






Net income


$9,294


$72,968


Plus: DTA re-measurement


13,433


13,433


Adjusted net Income (non-GAAP)


22,727


86,401


Adjusted net income (non-GAAP)(annualized)


$90,167


$86,401








Plus: amortization of intangibles (annualized)


1,109


1,233


Tax effect of amortization of intangibles (annualized)


(388)


(432)


Adjusted net income before amortization of intangibles (annualized)


$90,888


$87,202








Average total shareholders' equity


$891,174


$872,130


Plus: DTA re-measurement


2,336


589


Less: average goodwill and other intangible assets


(295,495)


(295,937)


Tax effect of average goodwill and other intangible assets


1,339


1,493


Average tangible equity (non-GAAP)


$599,354


$578,275


Return on average tangible equity (non-GAAP)


15.16%


15.08%








 

 

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SOURCE S&T Bancorp, Inc.

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