S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2018 Results

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Jan 31, 2019

S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2018 Results

- Record Full Year Net Income of $105.3 Million -

INDIANA, Pa., Jan. 31, 2019 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2018 earnings. Net income was $26.9 million, or $0.77 per diluted share, for the fourth quarter compared to net income of $9.3 million, or $0.27 per diluted share for the fourth quarter of 2017, and $30.9 million, or $0.88 per diluted share for the third quarter of 2018. The third quarter of 2018 results were positively impacted by a one-time reduction to tax expense of $2.9 million, or $0.08 per diluted share, related to a tax deduction for a pension contribution at a 35% corporate tax rate versus the current rate of 21%.

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

Net income was a record $105.3 million, or $3.01 per diluted share, for the year ended December 31, 2018 compared to net income of $73.0 million, or $2.09 per diluted share, for 2017. 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. 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) and full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP).

Fourth Quarter of 2018 Highlights:

  • Return on average assets (ROA) was 1.50%, return on average equity (ROE) was 11.50% and return on average tangible equity (ROTE) (non-GAAP) was 16.82%.
  • Total portfolio loans increased $138.8 million, or 9.5% annualized, compared to the third quarter of 2018.
  • Deposits increased $206.4 million, or 15.0% annualized, compared to the third quarter of 2018.
  • Expenses continue to be well controlled with an efficiency ratio (non-GAAP) of 50.64% compared to 51.33% in the third quarter of 2018 and 51.75% for the fourth quarter of 2017.
  • S&T's Board of Directors declared a $0.27 per share dividend, which is an increase of 22.7% compared to a $0.22 dividend in the same period last year.

Full Year 2018 Highlights:

  • Record net income of $105.3 million compared to $73.0 million ($86.4 million non-GAAP) for 2017. This represents an increase in net income of 44% (22% compared to non-GAAP result).
  • ROA was 1.50%, ROE was 11.60% and ROTE (non-GAAP) was 17.14%.
  • Net interest income increased $8.7 million, or 3.9%, and net interest margin (FTE) (non-GAAP) increased 8 basis points to 3.64% compared to 3.56% in 2017.
  • Expenses were well controlled with an improved efficiency ratio of 50.60% compared to 51.77% in 2017.
  • Full year 2018 dividends declared increased 20.7% to $0.99 compared to $0.82 in 2017.

"We are pleased to announce another successful year with record net income for 2018," said Todd Brice, chief executive officer of S&T. "We have excellent momentum as we move into 2019 thanks to our great team of bankers and our robust markets."

Fourth Quarter of 2018 Results

Net Interest Income

Net interest income increased $0.6 million to $59.9 million compared to $59.3 million in the third quarter of 2018. The increase in net interest income is due to higher average loans of $112.1 million. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 2 basis points to 3.65% compared to 3.67% in the prior quarter. The decrease in the net interest margin rate is due to an increasingly competitive deposit environment combined with stronger growth in the fourth quarter.

Asset Quality

Asset quality trends were impacted by three commercial nonaccrual loans totaling $23.6 million in the fourth quarter of 2018. These nonaccrual loans resulted in loan charge-offs of $2.4 million and specific reserves of $1.5 million for the fourth quarter of 2018. Total nonperforming loans increased $25.3 million to $46.1 million, or 0.77% of total loans, at December 31, 2018 compared to $20.7 million, or 0.36% of total loans, at September 30, 2018. Net charge-offs were $2.3 million, or 0.15% of average loans on an annualized basis, in the fourth quarter of 2018 compared to net charge-offs of $0.4 million, or 0.03% of average loans on an annualized basis, in the third quarter of 2018. The provision for loan losses was $2.7 million in the fourth quarter of 2018 compared to $0.5 million in the third quarter of 2018. The allowance for loan losses was $61.0 million, or 1.03% of total portfolio loans, at December 31, 2018 compared to $60.6 million, or 1.04% of total portfolio loans, at September 30, 2018.

Noninterest Income and Expense

Noninterest income decreased $0.9 million to $11.1 million in the fourth quarter of 2018 compared to $12.0 million in the third quarter of 2018. Noninterest expense decreased $0.7 million to $36.4 million in the fourth quarter of 2018 compared to $37.1 million in the third quarter of 2018. Both noninterest income and noninterest expense were impacted by a $0.8 million mark-to-market adjustment for a deferred compensation plan due to the negative performance in the stock market in the fourth quarter.  The mark-to-market adjustment of $0.8 million is recorded in other noninterest income and offset in salaries and employee benefits resulting in no impact to net income.

Additionally, other noninterest income was impacted by a negative mark-to-market adjustment of $0.5 million for equity securities offset by higher commercial loan swap fees of $0.8 million compared to the third quarter of 2018.

Expenses were well controlled for the fourth quarter with an efficiency ratio of 50.64% compared to 51.33% in the third quarter of 2018.

Financial Condition

Total assets grew $146.9 million to $7.3 billion at December 31, 2018 compared to $7.1 billion at September 30, 2018. Total portfolio loans increased $138.8 million, or 9.5% annualized, compared to September 30, 2018. Commercial loan growth was strong with an increase in commercial real estate loans of $95.5 million, or 13.4% annualized, and an increase in commercial and industrial loans of $42.0 million, or 11.5% annualized, compared to September 30, 2018. Consumer loans increased $27.9 million with growth mainly in residential mortgages of $26.8 million, or 15.2% annualized, compared to September 30, 2018. Total deposit growth was strong during the quarter with deposits increasing $206.4 million, or 15.0% annualized. Deposit growth was mainly in money market of $114.9 million, or 33.3% annualized, and certificates of deposit of $102.6 million, or 31.1% annualized.

On March 19, 2018, S&T's Board of Directors authorized a $50.0 million share repurchase plan. During the fourth quarter of 2018, there were 321,731 common shares repurchased for a cost of $12.3 million, or at an average price of $38.10 per common share. Up to an additional $37.7 million of common shares may be repurchased under this authorization through August 31, 2019.

S&T's risk-based capital ratios were relatively unchanged compared to the third quarter of 2018 due to strong loan growth and share repurchases. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2018 Results

Full year net income was a record $105.3 million, or $3.01 per diluted share, for the year ended December 31, 2018 compared to net income of $73.0 million, or $2.09 per diluted share, for 2017. Excluding the net DTA re-measurement of $13.4 million, full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP). Net income in 2018 was positively impacted by the Tax Cuts and Jobs Act which lowered the federal corporate tax rate from 35% to 21% effective January 1, 2018. Net interest income increased $8.7 million, or 3.9%, and net interest margin (FTE) (non-GAAP) increased 8 basis points to 3.64% compared to 3.56% for 2017 due to higher short-term rates. Noninterest income decreased $6.3 million mainly due to the sale of our insurance business on January 1, 2018. Expenses were well controlled during 2018 with an efficiency ratio (non-GAAP) of 50.60% compared to 51.77% for 2017. To view an infographic featuring 2018 highlights, click here.

Dividend

The Board of Directors of S&T declared a $0.27 per share cash dividend at its regular meeting held January 28, 2019. This is an increase of 22.7% compared to a common stock dividend of $0.22 per share declared in the same period in the prior year. The dividend is payable February 28, 2019 to shareholders of record on February 14, 2019. Dividends declared in 2018 increased $0.17, or 20.7%, to $0.99 compared to $0.82 for 2017.

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 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 31, 2019. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select  "4th Quarter 2018 Conference Call" and follow the instructions.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is a $7.3 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, a full-service financial institution, was established in 1902 and operates in five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit www.stbancorp.com, www.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; 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

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST INCOME

           

Loans, including fees

$71,515

   

$68,631

   

$63,407

   

Investment securities:

           

Taxable

3,746

   

3,649

   

3,164

   

Tax-exempt

845

   

857

   

871

   

Dividends

483

   

490

   

413

   

Total Interest Income

76,589

   

73,627

   

67,855

   
             

INTEREST EXPENSE

           

Deposits

12,973

   

10,871

   

7,227

   

Borrowings and junior subordinated debt securities

3,774

   

3,494

   

2,800

   

Total Interest Expense

16,747

   

14,365

   

10,027

   
             

NET INTEREST INCOME

59,842

   

59,262

   

57,828

   

Provision for loan losses

2,716

   

462

   

982

   

Net Interest Income After Provision for Loan Losses

57,126

   

58,800

   

56,846

   
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

   

(986)

   

Debit and credit card

3,192

   

3,141

   

3,077

   

Service charges on deposit accounts

3,071

   

3,351

   

3,240

   

Wealth management

2,302

   

2,483

   

2,521

   

Mortgage banking

630

   

700

   

635

   

Insurance

101

   

101

   

1,139

   

Other

1,799

   

2,266

   

3,024

   

Total Noninterest Income

11,095

   

12,042

   

12,650

   
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

18,913

   

19,769

   

20,006

   

Data processing and information technology

3,024

   

2,906

   

2,131

   

Net occupancy

2,697

   

2,722

   

2,736

   

Furniture, equipment and software

1,988

   

2,005

   

2,200

   

Marketing

1,276

   

1,023

   

1,191

   

Other taxes

1,255

   

1,341

   

1,241

   

Professional services and legal

1,011

   

1,181

   

1,224

   

FDIC insurance

645

   

746

   

1,083

   

Other

5,606

   

5,392

   

6,135

   

Total Noninterest Expense

36,415

   

37,085

   

37,947

   
             

Income Before Taxes

31,806

   

33,757

   

31,549

   

Provision for income taxes

4,952

   

2,876

   

22,255

   
             

Net Income

$26,854

   

$30,881

   

$9,294

   
             

Per Share Data:

           

Shares outstanding at end of period

34,683,874

   

35,006,587

   

34,971,929

   

Average shares outstanding - diluted

34,867,171

   

35,019,292

   

35,019,866

   

Diluted earnings per share

$0.77

   

$0.88

   

$0.27

   

Dividends declared per share

$0.27

   

$0.25

   

$0.22

   

Dividend yield (annualized)

2.85%

   

2.31%

   

2.21%

   

Dividends paid to net income

35.09%

   

28.25%

   

82.53%

   

Book value

$26.98

   

$26.27

   

$25.28

   

Tangible book value (1)

$18.63

   

$18.00

   

$16.87

   

Market value

$37.84

   

$43.36

   

$39.81

   
             

Profitability Ratios (annualized)

           

Return on average assets

1.50%

   

1.75%

   

0.52%

   

Return on average shareholders' equity

11.50%

   

13.41%

   

4.14%

   

Return on average tangible shareholders' equity (2)

16.82%

   

19.73%

   

6.30%

   

Efficiency ratio (FTE) (3)

50.64%

   

51.33%

   

51.75%

   

 

 

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

 
   

For the Twelve Months Ended December 31,

(dollars in thousands, except per share data)

   

2018

 

2017

 

INTEREST INCOME

           

Loans, including fees

   

$269,811

   

$243,315

   

Investment securities:

           

Taxable

   

14,342

   

11,947

   

Tax-exempt

   

3,449

   

3,615

   

Dividends

   

2,224

   

1,765

   

Total Interest Income

   

289,826

   

260,642

   
             

INTEREST EXPENSE

           

Deposits

   

40,856

   

25,330

   

Borrowings and junior subordinated debt securities

   

14,532

   

9,579

   

Total Interest Expense

   

55,388

   

34,909

   
             

NET INTEREST INCOME

   

234,438

   

225,733

   

Provision for loan losses

   

14,995

   

13,883

   

Net Interest Income After Provision for Loan Losses

   

219,443

   

211,850

   
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

   

3,000

   

Debit and credit card

   

12,679

   

12,029

   

Service charges on deposit accounts

   

13,096

   

12,458

   

Wealth management

   

10,084

   

9,758

   

Mortgage banking

   

2,762

   

2,915

   

Insurance

   

505

   

5,371

   

Gain on sale of a majority interest of insurance business

   

1,873

   

   

Other

   

8,182

   

9,931

   

Total Noninterest Income

   

49,181

   

55,462

   
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

   

76,108

   

80,776

   

Data processing and information technology

   

10,633

   

8,801

   

Net occupancy

   

11,097

   

10,994

   

Furniture, equipment and software

   

8,083

   

7,946

   

Marketing

   

4,192

   

3,659

   

Other taxes

   

6,183

   

4,509

   

Professional services and legal

   

4,132

   

4,096

   

FDIC insurance

   

3,238

   

4,543

   

Other

   

21,779

   

22,583

   

Total Noninterest Expense

   

145,445

   

147,907

   
             

Income Before Taxes

   

123,179

   

119,405

   

Provision for income taxes

   

17,845

   

46,437

   
             

Net Income

   

$105,334

   

$72,968

   
             

Per Share Data:

           

Average shares outstanding - diluted

   

34,975,409

   

34,954,767

   

Diluted earnings per share

   

$3.01

   

$2.09

   

Dividends declared per share

   

$0.99

   

$0.82

   

Dividends paid to net income

   

32.79%

   

39.15%

   
             

Profitability Ratios

           

Return on average assets

   

1.50%

   

1.03%

   

Return on average shareholders' equity

   

11.60%

   

8.37%

   

Return on average tangible shareholders' equity (6)

   

17.14%

   

12.77%

   

Efficiency ratio (FTE) (7)

   

50.60%

   

51.77%

   

 

 

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

 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$155,489

   

$132,650

   

$117,152

   

Securities, at fair value

684,872

   

682,535

   

698,291

   

Loans held for sale

2,371

   

4,207

   

4,485

   

Commercial loans:

           

Commercial real estate

2,921,832

   

2,826,372

   

2,685,994

   

Commercial and industrial

1,493,416

   

1,451,371

   

1,433,266

   

Commercial construction

257,197

   

283,783

   

384,334

   

  Total Commercial Loans

4,672,445

   

4,561,526

   

4,503,594

   

Consumer loans:

           

Residential mortgage

726,679

   

699,867

   

698,774

   

Home equity

471,562

   

472,451

   

487,326

   

Installment and other consumer

67,546

   

67,542

   

67,204

   

Consumer construction

8,416

   

6,421

   

4,551

   

  Total Consumer Loans

1,274,203

   

1,246,281

   

1,257,855

   

Total Portfolio Loans

5,946,648

   

5,807,807

   

5,761,449

   

Allowance for loan losses

(60,996)

   

(60,556)

   

(56,390)

   

Total Portfolio Loans, Net

5,885,652

   

5,747,251

   

5,705,059

   

Federal Home Loan Bank and other restricted stock, at cost

29,435

   

31,178

   

29,270

   

Goodwill

287,446

   

287,446

   

291,670

   

Other assets

206,956

   

220,096

   

214,328

   

Total Assets

$7,252,221

   

$7,105,363

   

$7,060,255

   
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,421,156

   

$1,412,127

   

$1,387,712

   

Interest-bearing demand

573,693

   

561,191

   

603,141

   

Money market

1,482,065

   

1,367,181

   

1,146,156

   

Savings

784,970

   

817,545

   

893,119

   

Certificates of deposit

1,412,038

   

1,309,465

   

1,397,763

   

Total Deposits

5,673,922

   

5,467,509

   

5,427,891

   

Borrowings:

           

Securities sold under repurchase agreements

18,383

   

45,200

   

50,161

   

Short-term borrowings

470,000

   

535,000

   

540,000

   

Long-term borrowings

70,314

   

45,434

   

47,301

   

Junior subordinated debt securities

45,619

   

45,619

   

45,619

   

Total Borrowings

604,316

   

671,253

   

683,081

   

Other liabilities

38,222

   

46,820

   

65,252

   

Total Liabilities

6,316,460

   

6,185,582

   

6,176,224

   
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

935,761

   

919,781

   

884,031

   

Total Liabilities and Shareholders' Equity

$7,252,221

   

$7,105,363

   

$7,060,255

   
             

Capitalization Ratios

           

Shareholders' equity / assets

12.90%

   

12.94%

   

12.52%

   

Tangible common equity / tangible assets (4)

9.28%

   

9.25%

   

8.72%

   

Tier 1 leverage ratio

10.05%

   

10.13%

   

9.17%

   

Common equity tier 1 capital

11.38%

   

11.42%

   

10.71%

   

Risk-based capital - tier 1

11.72%

   

11.76%

   

11.06%

   

Risk-based capital - total

13.21%

   

13.27%

   

12.55%

   

 

 

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

 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Net Interest Margin (FTE) (QTD Averages)

           

ASSETS

           

Interest-bearing deposits with banks

$56,790

 

2.03%

$57,012

 

2.13%

$56,989

 

1.12%

Securities, at fair value

678,832

 

2.70%

680,464

 

2.63%

696,411

 

2.53%

Loans held for sale

1,022

 

4.05%

1,571

 

4.71%

35,001

 

4.23%

Commercial Loans:

           

Commercial real estate

2,869,532

 

4.91%

2,779,019

 

4.81%

2,684,481

 

4.42%

Commercial and industrial

1,469,534

 

4.94%

1,432,936

 

4.79%

1,453,554

 

4.47%

Commercial construction

266,922

 

4.91%

291,512

 

5.08%

405,285

 

4.26%

Total Commercial Loans

4,605,988

 

4.92%

4,503,467

 

4.82%

4,543,320

 

4.42%

Consumer Loans:

           

Residential mortgage

705,082

 

4.36%

696,267

 

4.30%

696,422

 

4.14%

Home equity

471,830

 

5.15%

472,466

 

4.94%

489,031

 

4.34%

Installment and other consumer

67,444

 

7.00%

66,693

 

6.92%

68,459

 

6.63%

Consumer construction

7,077

 

5.29%

5,846

 

5.04%

4,107

 

4.41%

Total Consumer Loans

1,251,433

 

4.80%

1,241,272

 

4.69%

1,258,019

 

4.35%

Total Portfolio Loans

5,857,421

 

4.90%

5,744,739

 

4.79%

5,801,339

 

4.41%

Total Loans

5,858,443

 

4.90%

5,746,310

 

4.79%

5,836,340

 

4.41%

Federal Home Loan Bank and other restricted stock

28,025

 

6.27%

28,512

 

6.28%

32,026

 

4.64%

Total Interest-earning Assets

6,622,090

 

4.65%

6,512,298

 

4.55%

6,621,766

 

4.18%

Noninterest-earning assets

499,254

   

496,268

   

512,396

   

Total Assets

$7,121,344

   

$7,008,566

   

$7,134,162

   
             

LIABILITIES AND SHAREHOLDERS' EQUITY

           

Deposits:

           

Interest-bearing demand

$568,735

 

0.39%

$566,579

 

0.36%

$620,027

 

0.25%

Money market

1,418,220

 

1.69%

1,330,489

 

1.47%

1,102,093

 

0.92%

Savings

798,734

 

0.24%

823,215

 

0.20%

914,871

 

0.21%

Certificates of deposit

1,354,538

 

1.72%

1,310,526

 

1.51%

1,439,703

 

1.05%

Total Interest-bearing Deposits

4,140,227

 

1.24%

4,030,809

 

1.07%

4,076,694

 

0.70%

Borrowings:

           

Securities sold under repurchase agreements

45,101

 

0.62%

42,183

 

0.52%

42,599

 

0.26%

Short-term borrowings

433,642

 

2.54%

455,689

 

2.28%

625,189

 

1.38%

Long-term borrowings

52,949

 

2.75%

45,699

 

2.36%

30,813

 

2.04%

Junior subordinated debt securities

45,619

 

4.86%

45,619

 

4.79%

45,619

 

3.82%

Total Borrowings

577,311

 

2.59%

589,190

 

2.35%

744,220

 

1.49%

Total Interest-bearing Liabilities

4,717,538

 

1.41%

4,619,999

 

1.23%

4,820,914

 

0.83%

Noninterest-bearing liabilities

1,477,024

   

1,475,059

   

1,422,074

   
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

926,782

   

913,508

   

891,174

   

Total Liabilities and Shareholders' Equity

$7,121,344

   

$7,008,566

   

$7,134,162

   
             

Net Interest Margin(5)

 

3.65%

 

3.67%

 

3.58%

             
             
             
             
             
             

 

 

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

 
     

For the Twelve Months Ended December 31,

 

(dollars in thousands)

   

2018

 

2017

 

Net Interest Margin (FTE) (YTD Averages)

           

ASSETS

           

Interest-bearing deposits with banks

   

$56,210

 

1.85%

$56,344

 

1.03%

Securities, at fair value

   

682,806

 

2.62%

698,460

 

2.48%

Loans held for sale

   

1,515

 

5.60%

14,607

 

3.98%

Commercial Loans:

           

Commercial real estate

   

2,779,096

 

4.75%

2,638,766

 

4.34%

Commercial and industrial

   

1,441,560

 

4.70%

1,425,421

 

4.35%

Commercial construction

   

314,265

 

4.79%

426,574

 

4.08%

Total Commercial Loans

   

4,534,921

 

4.74%

4,490,761

 

4.32%

Consumer Loans:

           

Residential mortgage

   

696,849

 

4.27%

699,843

 

4.11%

Home equity

   

474,538

 

4.84%

484,023

 

4.31%

Installment and other consumer

   

67,047

 

6.85%

69,163

 

6.54%

Consumer construction

   

5,336

 

5.00%

4,631

 

4.35%

Total Consumer Loans

   

1,243,770

 

4.63%

1,257,660

 

4.32%

Total Portfolio Loans

   

5,778,691

 

4.72%

5,748,421

 

4.32%

Total Loans

   

5,780,206

 

4.72%

5,763,028

 

4.32%

Federal Home Loan Bank and other restricted stock

   

30,457

 

6.74%

31,989

 

4.64%

Total Interest-earning Assets

   

6,549,679

 

4.48%

6,549,821

 

4.09%

Noninterest-earning assets

   

494,149

   

510,411

   

Total Assets

   

$7,043,828

   

$7,060,232

   
             

LIABILITIES AND SHAREHOLDERS' EQUITY

           

Deposits:

           

Interest-bearing demand

   

$570,459

 

0.33%

$637,526

 

0.22%

Money market

   

1,299,185

 

1.40%

994,783

 

0.79%

Savings

   

836,747

 

0.21%

988,504

 

0.21%

Certificates of deposit

   

1,328,985

 

1.43%

1,439,711

 

0.97%

Total Interest-bearing Deposits

   

4,035,376

 

1.01%

4,060,524

 

0.62%

Borrowings:

           

Securities sold under repurchase agreements

   

45,992

 

0.48%

46,662

 

0.12%

Short-term borrowings

   

525,172

 

2.11%

644,864

 

1.15%

Long-term borrowings

   

47,986

 

2.35%

18,057

 

2.57%

Junior subordinated debt securities

   

45,619

 

4.60%

45,619

 

3.65%

Total Borrowings

   

664,769

 

2.19%

755,202

 

1.27%

Total Interest-bearing Liabilities

   

4,700,145

 

1.18%

4,815,726

 

0.72%

Noninterest-bearing liabilities

   

1,435,328

   

1,372,376

   
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

   

908,355

   

872,130

   

Total Liabilities and Shareholders' Equity

   

$7,043,828

   

$7,060,232

   
             

Net Interest Margin (8)

     

3.64%

 

3.56%

             
             

 

 

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

 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Nonperforming Loans (NPL)

           

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

Commercial real estate

$12,052

 

0.41%

$4,595

 

0.16%

$3,468

 

0.13%

Commercial and industrial

8,960

 

0.60%

4,367

 

0.30%

5,646

 

0.39%

Commercial construction

14,193

 

5.52%

1,228

 

0.43%

3,873

 

1.01%

  Total Nonperforming Commercial Loans

35,205

 

0.75%

10,190

 

0.22%

12,987

 

0.29%

Consumer loans:

                 

Residential mortgage

7,128

 

0.98%

6,721

 

0.96%

7,165

 

1.03%

Home equity

3,698

 

0.78%

3,783

 

0.80%

3,715

 

0.76%

Installment and other consumer

42

 

0.06%

45

 

0.07%

71

 

0.11%

  Total Nonperforming Consumer Loans

10,868

 

0.85%

10,549

 

0.85%

10,951

 

0.87%

Total Nonperforming Loans

$46,073

 

0.77%

$20,739

 

0.36%

$23,938

 

0.42%

 
 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Loan Charge-offs

           

Charge-offs

$3,279

   

$1,234

   

$2,073

   

Recoveries

(1,002)

   

(811)

   

(769)

   

Net Loan Charge-offs

$2,277

   

$423

   

$1,304

   
             

Net Loan Charge-offs (Recoveries)

           

Commercial Loans:

           

Commercial real estate

($17)

   

$77

   

($191)

   

Commercial and industrial

(567)

   

(298)

   

513

   

Commercial construction

2,308

   

(29)

   

465

   

Total Commercial Loan Charge-offs

1,724

   

(250)

   

787

   

Consumer loans:

           

Residential mortgage

191

   

54

   

162

   

Home equity

133

   

402

   

120

   

Installment and other consumer

297

   

256

   

272

   

Consumer construction

(68)

   

(39)

   

(37)

   

Total Consumer Loan Charge-offs

553

   

673

   

517

   

Total Net Loan Charge-offs

$2,277

   

$423

   

$1,304

   
           
           
       

For the Twelve Months Ended December 31,

 

(dollars in thousands)

     

2018

 

2017

 

Loan Charge-offs

             

Charge-offs

     

$14,589

   

$13,496

   

Recoveries

     

(4,200)

   

(3,228)

   

Net Loan Charge-offs

     

$10,389

   

$10,268

   
               

Net Loan Charge-offs (Recoveries)

             

Commercial loans:

             

Commercial real estate

     

$63

   

$1,494

   

Commercial and industrial

     

6,851

   

4,055

   

Commercial construction

     

1,495

   

1,720

   

Total Commercial Loan Charge-offs

     

8,409

   

7,269

   

Consumer loans:

             

Residential mortgage

     

394

   

1,382

   

Home equity

     

541

   

666

   

Installment and other consumer

     

1,202

   

1,067

   

Consumer construction

     

(157)

   

(116)

   

Total Consumer Loan Charge-offs

     

1,980

   

2,999

   

Total Net Loan Charge-offs

     

$10,389

   

$10,268

   

 

 

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

 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 
 

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$46,073

   

$20,739

   

$23,938

   

OREO

3,092

   

3,068

   

469

   

Nonperforming assets

49,165

   

23,807

   

24,407

   

Troubled debt restructurings (nonaccruing)

11,088

   

7,143

   

11,150

   

Troubled debt restructurings (accruing)

16,786

   

22,226

   

14,901

   

Total troubled debt restructurings

27,874

   

29,369

   

26,051

   

Nonperforming loans / loans

0.77%

   

0.36%

   

0.42%

   

Nonperforming assets / loans plus OREO

0.83%

   

0.41%

   

0.42%

   

Allowance for loan losses / total portfolio loans

1.03%

   

1.04%

   

0.98%

   

Allowance for loan losses / nonperforming loans

132%

   

292%

   

236%

   

Net loan charge-offs

$2,277

   

$423

   

$1,304

   

Net loan charge-offs (annualized) / average loans

0.15%

   

0.03%

   

0.09%

   
             
             
     

For the Twelve Months Ended December 31,

 

(dollars in thousands)

   

2018

 

2017

 

Asset Quality Data

           

Net loan charge-offs

   

$10,389

   

$10,268

   

Net loan charge-offs / average loans

   

0.18%

   

0.18%

   

 

 

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

 

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

 
 

2018

 

2018

 

2017

 
 

Fourth

 

Third

 

Fourth

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

Total shareholders' equity

$935,761

   

$919,781

   

$884,031

   

 Less: goodwill and other intangible assets

(290,047)

   

(290,171)

   

(295,347)

   

Tax effect of other intangible assets

546

   

572

   

1,287

   

Tangible common equity (non-GAAP)

$646,260

   

$630,182

   

$589,971

   

Common shares outstanding

34,684

   

35,007

   

34,972

   

Tangible book value (non-GAAP)

$18.63

   

$18.00

   

$16.87

   
             

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

           

Net income (annualized)

$106,540

   

$122,516

   

$36,873

   

Plus: amortization of intangibles (annualized)

811

   

731

   

1,109

   

Tax effect of amortization of intangibles (annualized)

(170)

   

(154)

   

(388)

   

Net income before amortization of intangibles (annualized)

$107,181

   

$123,093

   

$37,594

   
             

Average total shareholders' equity

$926,782

   

$913,508

   

$891,174

   

Less: average goodwill and other intangible assets

(290,045)

   

(290,264)

   

(295,495)

   

Tax effect of average goodwill and other intangible assets

546

   

592

   

1,339

   

Average tangible equity (non-GAAP)

$637,283

   

$623,836

   

$597,018

   

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

16.82%

   

19.73%

   

6.30%

   
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$36,415

   

$37,085

   

$37,947

   
             

Net interest income per consolidated statements of net income

59,842

   

59,262

   

57,828

   

Less: securities (gains) losses, net

   

   

986

   

Plus: taxable equivalent adjustment

974

   

951

   

1,878

   

Net interest income (FTE) (non-GAAP)

$60,816

   

$60,213

   

$60,692

   

Noninterest income

11,095

   

12,042

   

12,650

   

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

71,911

   

72,255

   

73,342

   

Efficiency ratio (non-GAAP)

50.64%

   

51.33%

   

51.75%

   
             

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

           

Total shareholders' equity

$935,761

   

$919,781

   

$884,031

   

Less: goodwill and other intangible assets

(290,047)

   

(290,171)

   

(295,347)

   

Tax effect of goodwill and other intangible assets

546

   

572

   

1,287

   

Tangible common equity (non-GAAP)

$646,260

   

$630,182

   

$589,971

   
             

Total assets

$7,252,221

   

$7,105,363

   

$7,060,255

   

Less: goodwill and other intangible assets

(290,047)

   

(290,171)

   

(295,347)

   

Tax effect of goodwill and other intangible assets

546

   

572

   

1,287

   

Tangible assets (non-GAAP)

$6,962,720

   

$6,815,764

   

$6,766,195

   

Tangible common equity to tangible assets (non-GAAP)

9.28%

   

9.25%

   

8.72%

   
             

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

           

Interest income

$76,589

   

$73,627

   

$67,855

   

Less: interest expense

(16,747)

   

(14,365)

   

(10,027)

   

Net interest income per consolidated statements of net income

$59,842

   

$59,262

   

$57,828

   

Plus: taxable equivalent adjustment

974

   

951

   

1,878

   

Net interest income (FTE) (non-GAAP)

$60,816

   

$60,213

   

$59,706

   

Net interest income (FTE) (annualized)

$241,281

   

$238,889

   

$237,526

   

Average earning assets

$6,622,090

   

$6,512,298

   

$6,621,766

   

Net interest margin