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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 (FTE) (non-GAAP)

3.65%



3.67%



3.58%



 

 

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





For the Twelve Months Ended December 31,