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Jan 30, 2020

S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2019 Results

INDIANA, Pa., Jan. 30, 2020 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2019 earnings. Net income was $22.3 million, or $0.62 per diluted share, for the fourth quarter compared to net income of $26.9 million, or $0.79 per diluted share, for the third quarter of 2019, and $26.9 million, or $0.77 per diluted share, for the fourth quarter of 2018.  The merger with DNB Financial Corporation (DNB) closed on November 30, 2019 and the fourth quarter of 2019 results included merger related expenses of $10.2 million, or $0.23 per diluted share.

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

Net income was $98.2 million, or $2.82 per diluted share, for the year ended December 31, 2019 compared to net income of $105.3 million, or $3.01 per diluted share, for 2018. The full year 2019 results included $11.4 million, or $0.27 per diluted share, of merger related expenses.

Fourth Quarter of 2019 Highlights:

  • S&T expands further into eastern Pennsylvania with the closing of the DNB merger.
  • S&T now has $8.8 billion in assets and a market capitalization of approximately $1.6 billion at December 31, 2019.
  • Return on average assets (ROA) was 1.11%, return on average equity (ROE) was 8.30% and return on average tangible equity (ROTE) was 12.04% (non-GAAP). Excluding $10.2 million of merger related expenses ROA was 1.53% (non-GAAP), ROE was 11.38% (non-GAAP) and ROTE was 16.46% (non-GAAP).
  • S&T's Board of Directors declared a $0.28 per share dividend which is an increase of 3.7% compared to a $0.27 dividend in the same period last year.

Full Year 2019 Highlights:

  • In addition to the acquisition of DNB in eastern Pennsylvania, S&T expanded its presence in Ohio with the opening of new branches in central Ohio (Hilliard) and northeast Ohio (Cuyahoga Falls) and loan production offices in Upstate NY (Buffalo) and eastern Pennsylvania (Greater Berks).
  • Portfolio loans increased $291 million, or 5%, excluding the DNB merger.
  • Deposits increased $372 million, or 6.6%, excluding the DNB merger.
  • ROA was 1.32%, ROE was 9.98% and ROTE was 14.41% (non-GAAP). Excluding $11.4 million of merger related expenses ROA was 1.45% (non-GAAP), ROE was 10.92% (non-GAAP) and ROTE was 15.76% (non-GAAP).
  • Full year 2019 dividends declared increased 10.1% to $1.09 compared to $0.99 in 2018.

"We are proud of the growth achieved during 2019 through expansion in our existing markets and extending our eastern Pennsylvania presence with the closing of the DNB merger," said Todd Brice, chief executive officer of S&T. "We have a lot of momentum as we enter 2020 with great people and a solid plan to execute on our market-based strategy."

Merger with DNB Financial Corporation

The merger between S&T and DNB Financial Corporation (DNB) closed on November 30, 2019. The merger expanded S&T's footprint in eastern Pennsylvania gaining a new presence in the counties of Chester, Delaware and Philadelphia. The merger was valued at $201 million, or $37.72 per share, and added approximately $900 million of loans and $991 million of deposits at December 31, 2019. DNB's results were included in S&T's consolidated financial statements beginning December 1, 2019. Merger related expenses were $10.2 million, or $0.23 per diluted share, for the fourth quarter of 2019 and $11.4 million, or $0.27 per diluted share for the full year 2019.

Fourth Quarter of 2019 Results (three months ended December 31, 2019)

Net Interest Income

Net interest income increased $3.2 million to $64.4 million compared to $61.2 million in the third quarter of 2019. The increase in net interest income was due to one month of net interest income from the merger.  Average loans, excluding the merger, increased $116.5 million compared to the third quarter of 2019. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 7 basis points to 3.55% compared to 3.62% in the prior quarter primarily due to decreases in short-term rates. Loan rates decreased 18 basis points to 4.77% and total interest-bearing deposit costs decreased 14 basis points to 1.30%.

Asset Quality

Net charge-offs were $2.0 million, or 0.12% of average loans on an annualized basis, in the fourth quarter of 2019 compared to net charge-offs of $4.3 million, or 0.28% of average loans on an annualized basis, in the third quarter of 2019. The provision for loan losses was $2.1 million in the fourth quarter of 2019 compared to $4.9 million in the third quarter of 2019. Total nonperforming loans increased $4.1 million to $54.1 million, or 0.76% of total loans, at December 31, 2019 compared to $50.0 million, or 0.81% of total loans, at September 30, 2019. The allowance for loan losses was $62.2 million, or 0.87% of total portfolio loans, at December 31, 2019 compared to $62.1 million, or 1.00% of total portfolio loans, at September 30, 2019. The decrease in the allowance for loan loss to total portfolio loans is related to the addition of approximately $900 million of loans from the merger which were recorded at fair value on November 30, 2019.

Noninterest Income and Expense

Noninterest income increased $2.1 million to $15.2 million in the fourth quarter of 2019 compared to $13.1 million in the third quarter of 2019. The increase in other income of $1.6 million related mainly to higher commercial loan swap fees of $0.9 million during the quarter as we continue to see a high demand for this product in the current rate environment.

Noninterest expense increased $12.5 million to $50.2 million in the fourth quarter of 2019 compared to $37.7 million in the third quarter of 2019. The increase in noninterest expense was mainly due to a $9.6 million increase in merger related expenses compared to the third quarter of 2019. FDIC insurance expense increased $0.9 million compared to the third quarter of 2019 due to the Small Bank Assessment Credits that were received in the third quarter of 2019. The fourth quarter FDIC assessment was partially offset by $0.5 million of credits. Other taxes decreased $2.4 million compared to the third quarter of 2019 mainly due to a one-time adjustment related to a state sales tax assessment.

Financial Condition

Total assets increased $1.2 billion to $8.8 billion at December 31, 2019 compared to $7.6 billion at September 30, 2019. The merger added $1.1 billion of assets, $900 million of loans and $991 million of deposits.  Excluding the merger, total portfolio loans increased $42.1 million, or 2.7% annualized, compared to September 30, 2019 with growth mainly in the commercial real estate portfolio. Excluding the merger, total deposits increased $63.3 million, or 4.2% annualized, with growth mainly in money market and demand accounts.

All capital ratios increased at December 31, 2019 compared to September 30, 2019. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2019 Results (twelve months ended December 31, 2019)

Full year net income was $98.2 million, or $2.82 per diluted share, for the year ended December 31, 2019 compared to net income of $105.3 million, or $3.01 per diluted share, for 2018. DNB's results were included in S&T's consolidated financial statements beginning December 1, 2019. Merger related expenses were $11.4 million, or $0.27 per diluted share, for the full year 2019.

Net interest income increased $12.4 million, or 5.3% compared to 2018. Net interest margin (FTE) (non-GAAP) remained unchanged at 3.64% for both 2019 and 2018. Noninterest income increased $3.4 million compared to the prior year related to higher other income of $6.1 million offset by a decrease in wealth management fees of $1.5 million and a $1.9 million gain on the sale of a majority interest of our insurance business in 2018.  The increase in other income related mainly to higher commercial loan swap fees of $4.3 million due to a high demand for this product in the current rate environment. Noninterest expense increased $21.7 million in part due to merger related expenses of $11.4 million, an increase of $7.9 million in salaries and employee benefits and an increase of $3.8 million in data processing and information technology.  These expense increases were partially offset by a $2.8 million decrease in other taxes mainly due to a one-time adjustment related to a state sales tax assessment and a decrease of $2.5 million in FDIC insurance primarily due to Small Bank Assessment credits that were received during 2019.  The efficiency ratio (non-GAAP) for 2019, excluding merger related expenses, was 51.39% compared to 50.60% for 2018. To view an infographic featuring 2019 highlights, click here.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend at its regular meeting held January 27, 2020. This is an increase of 3.7% compared to a common stock dividend of $0.27 per share declared in the same period in the prior year. The dividend is payable February 27, 2020 to shareholders of record on February 13, 2020. Dividends declared in 2019 increased $0.10, or 10.1%, to $1.09 compared to $0.99 for 2018.

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 2019 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 30, 2020. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2019 Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until February 6, 2020, by dialing 1.877.481.4010; the Conference ID is 57050.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is an $8.8 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was recently named by Forbes as a 2019 World's Best Bank. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com, stbank.com, and follow us on Facebook, Instagram, and  LinkedIn.

This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations.  Forward-looking statements are typically identified by words or phrases such as "will likely result", "expect", "anticipate", "estimate", "forecast", "project", "intend", " believe", "assume", "strategy", "trend", "plan", "outlook", "outcome", "continue", "remain", "potential", "opportunity", "believe", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may.  Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses; 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



2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME







Loans, including fees

$77,426



$75,080



$71,515



Investments:







Taxable

3,744



3,552



3,746



Tax-exempt

836



787



845



Dividends

451



394



483



Total Interest and Dividend Income

82,457



79,813



76,589










INTEREST EXPENSE







Deposits

15,783



16,207



12,973



Borrowings and junior subordinated debt securities

2,262



2,410



3,774



Total Interest Expense

18,045



18,617



16,747










NET INTEREST INCOME

64,412



61,196



59,842



Provision for loan losses

2,105



4,913



2,716



Net Interest Income After Provision for Loan Losses

62,307



56,283



57,126










NONINTEREST INCOME







Net (loss) gain on sale of securities

(26)







Service charges on deposit accounts

3,540



3,412



3,071



Debit and credit card

3,454



3,475



3,192



Wealth management

2,412



2,101



2,302



Mortgage banking

765



594



630



Other

5,086



3,481



1,900



Total Noninterest Income

15,231



13,063



11,095










NONINTEREST EXPENSE







Salaries and employee benefits

22,851



19,936



18,913



Merger related expenses

10,179



552





Data processing and information technology

4,141



3,681



3,024



Net occupancy

3,219



2,898



2,697



Furniture, equipment and software

2,337



2,090



1,988



Marketing

1,116



1,062



1,276



Professional services and legal

862



1,054



1,011



FDIC insurance

222



(675)



645



Other taxes

(818)



1,540



1,255



Other

6,069



5,529



5,606



Total Noninterest Expense

50,178



37,667



36,415










Income Before Taxes

27,360



31,679



31,806



Provision for income taxes

5,091



4,743



4,952










Net Income

$22,269



$26,936



$26,854










Per Share Data:







Shares outstanding at end of period

39,560,304



34,244,719



34,683,874



Average diluted shares outstanding

35,913,237



34,170,281



34,867,171



Diluted earnings per share

$0.62



$0.79



$0.77



Dividends declared per share

$0.28



$0.27



$0.27



Dividend yield (annualized)

2.78%



2.96%



2.85%



Dividends paid to net income

42.94%



34.30%



35.09%



Book value

$30.13



$28.69



$26.98



Tangible book value (1)

$20.52



$20.25



$18.63



Market value

$40.29



$36.53



$37.84










Profitability Ratios (annualized)







Return on average assets

1.11%



1.45%



1.50%



Return on average shareholders' equity

8.30%



10.97%



11.50%



Return on average tangible shareholders' equity (2)

12.04%



15.69%



16.82%



Efficiency ratio (FTE) (3)

49.64%



49.36%



50.64%



 

 

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




For the Twelve Months Ended December 31,

(dollars in thousands, except per share data)



2019


2018


INTEREST AND DIVIDEND INCOME







Loans, including fees



$300,625



$269,811



Investment:







Taxable



14,733



14,342



Tax-exempt



3,302



3,449



Dividends



1,824



2,224



Total Interest and Dividend Income



320,484



289,826










INTEREST EXPENSE







Deposits



63,026



40,856



Borrowings and junior subordinated debt securities



10,667



14,532



Total Interest Expense



73,693



55,388










NET INTEREST INCOME



246,791



234,438



Provision for loan losses



14,873



14,995



Net Interest Income After Provision for Loan Losses



231,918



219,443










NONINTEREST INCOME







Net (loss) gain on sale of securities



(26)





Service charges on deposit accounts



13,316



13,096



Debit and credit card



13,405



12,679



Wealth management



8,623



10,084



Mortgage banking



2,491



2,762



Gain on sale of a majority interest of insurance business





1,873



Other



14,749



8,687



Total Noninterest Income



52,558



49,181










NONINTEREST EXPENSE







Salaries and employee benefits



83,986



76,108



Merger related expenses



11,350





Data processing and information technology



14,468



10,633



Net occupancy



12,103



11,097



Furniture, equipment and software



8,958



8,083



Marketing



4,631



4,192



Professional services and legal



4,244



4,132



Other taxes



3,364



6,183



FDIC insurance



758



3,238



Other



23,254



21,779



Total Noninterest Expense



167,116



145,445










Income Before Taxes



117,360



123,179



Provision for income taxes



19,126



17,845










Net Income



$98,234



$105,334










Per Share Data:







Average diluted shares outstanding



34,679,478



34,975,409



Diluted earnings per share



$2.82



$3.01



Dividends declared per share



$1.09



$0.99



Dividends paid to net income



38.03%



32.79%










Profitability Ratios







Return on average assets



1.32%



1.50%



Return on average shareholders' equity



9.98%



11.60%



Return on average tangible shareholders' equity (6)



14.41%



17.14%



Efficiency ratio (FTE) (7)



51.39%



50.60%



 

 

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



2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks, including interest-bearing deposits

$169,304



$173,609



$155,489



Federal funds sold

28,519







Securities, at fair value

784,283



669,226



684,872



Loans held for sale

5,256



8,371



2,371



Commercial loans:







Commercial real estate

3,416,518



2,922,197



2,921,832



Commercial and industrial

1,720,833



1,626,854



1,493,416



Commercial construction

375,445



314,813



257,197



  Total Commercial Loans

5,512,796



4,863,864



4,672,445



Consumer loans:







Residential mortgage

998,585



770,882



726,679



Home equity

538,348



475,024



471,562



Installment and other consumer

79,033



74,460



67,546



Consumer construction

8,390



11,535



8,416



  Total Consumer Loans

1,624,356



1,331,901



1,274,203



Total Portfolio Loans

7,137,152



6,195,765



5,946,648



Allowance for loan losses

(62,224)



(62,115)



(60,996)



Total Portfolio Loans, Net

7,074,928



6,133,650



5,885,652



Federal Home Loan Bank and other restricted stock, at cost

22,977



25,397



29,435



Goodwill

371,621



287,446



287,446



Other assets

307,762



274,292



206,956



Total Assets

$8,764,649



$7,571,991



$7,252,221










LIABILITIES







Deposits:







Noninterest-bearing demand

$1,698,082



$1,490,409



$1,421,156



Interest-bearing demand

962,331



751,881



573,693



Money market

1,949,811



1,660,569



1,482,065



Savings

830,919



753,464



784,970



Certificates of deposit

1,595,433



1,326,369



1,412,038



Total Deposits

7,036,576



5,982,692



5,673,922










Borrowings:







Securities sold under repurchase agreements

19,888



13,925



18,383



Short-term borrowings

281,319



370,000



470,000



Long-term borrowings

50,868



69,156



70,314



Junior subordinated debt securities

64,277



45,619



45,619



Total Borrowings

416,352



498,700



604,316



Other liabilities

119,723



108,152



38,222



Total Liabilities

7,572,651



6,589,544



6,316,460










SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,191,998



982,447



935,761



Total Liabilities and Shareholders' Equity

$8,764,649



$7,571,991



$7,252,221










Capitalization Ratios







Shareholders' equity / assets

13.60%



12.97%



12.90%



Tangible common equity / tangible assets(4)

9.68%



9.52%



9.28%



Tier 1 leverage ratio

10.29%



10.20%



10.05%



Common equity tier 1 capital

11.43%



11.17%



11.38%



Risk-based capital - tier 1

11.84%



11.49%



11.72%



Risk-based capital - total

13.22%



12.92%



13.21%



 

 

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



2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


Net Interest Margin (FTE) (QTD Averages)







ASSETS







Interest-bearing deposits with banks

$82,255


1.44%

$53,725


2.32%

$56,790


2.03%

Securities, at fair value

696,889


2.61%

661,752


2.59%

678,832


2.70%

Loans held for sale

3,582


3.56%

2,712


3.98%

1,022


4.05%

Commercial Loans:







Commercial real estate

3,056,513


4.77%

2,922,767


4.89%

2,869,532


4.91%

Commercial and industrial

1,666,061


4.77%

1,566,369


5.06%

1,469,534


4.94%

Commercial construction

339,274


4.71%

282,175


5.14%

266,922


4.91%

Total Commercial Loans

5,061,848


4.77%

4,771,311


4.96%

4,605,988


4.92%

Consumer Loans:







Residential mortgage

850,566


4.42%

753,649


4.41%

705,082


4.36%

Home equity

499,520


5.03%

469,567


5.36%

471,830


5.15%

Installment and other consumer

76,029


7.13%

72,606


7.10%

67,444


7.00%

Consumer construction

12,021


4.96%

11,056


5.39%

7,077


5.29%

Total Consumer Loans

1,438,136


4.78%

1,306,878


4.91%

1,251,433


4.80%

Total Portfolio Loans

6,499,984


4.77%

6,078,189


4.95%

5,857,421


4.90%

Total Loans

6,503,566


4.77%

6,080,901


4.95%

5,858,443


4.90%

Federal Home Loan Bank and other restricted stock

21,791


7.44%

19,981


7.00%

28,025


6.27%

Total Interest-earning Assets

7,304,501


4.53%

6,816,359


4.70%

6,622,090


4.65%

Noninterest-earning assets

619,586



538,514



499,254



Total Assets

$7,924,087



$7,354,873



$7,121,344










LIABILITIES AND SHAREHOLDERS' EQUITY







Deposits:







Interest-bearing demand

$810,909


0.75%

$655,735


0.72%

$568,735


0.39%

Money market

1,791,981


1.53%

1,709,248


1.83%

1,418,220


1.69%

Savings

783,990


0.26%

749,287


0.24%

798,734


0.24%

Certificates of deposit

1,417,619


1.91%

1,345,474


1.97%

1,354,538


1.72%

Total Interest-bearing Deposits

4,804,499


1.30%

4,459,744


1.44%

4,140,227


1.24%

Borrowings:







Securities sold under repurchase agreements

14,046


0.75%

14,030


0.73%

45,101


0.62%

Short-term borrowings

241,368


2.08%

218,799


2.47%

433,642


2.54%

Long-term borrowings

56,026


2.63%

69,421


2.68%

52,949


2.75%

Junior subordinated debt securities

54,801


4.33%

45,619


4.82%

45,619


4.86%

Total Borrowings

366,241


2.45%

347,869


2.75%

577,311


2.59%

Total Interest-bearing Liabilities

5,170,740


1.38%

4,807,613


1.54%

4,717,538


1.41%

Noninterest-bearing liabilities

1,689,076



1,573,549



1,477,024










SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,064,271



973,711



926,782



Total Liabilities and Shareholders' Equity

$7,924,087



$7,354,873



$7,121,344










Net Interest Margin (5)


3.55%


3.62%


3.65%








 

 

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





For the Twelve Months Ended December 31,


(dollars in thousands)



2019


2018


Net Interest Margin (FTE) (YTD Averages)







ASSETS







Interest-bearing deposits with banks



$59,941


2.06%

$56,210


1.85%

Securities, at fair value



678,069


2.64%

682,806


2.62%

Loans held for sale



2,169


3.88%

1,515


5.60%

Commercial Loans:







Commercial real estate



2,945,278


4.92%

2,779,096


4.75%

Commercial and industrial



1,575,485


5.04%

1,441,560


4.70%

Commercial construction



278,665


5.11%

314,265


4.79%

Total Commercial Loans



4,799,428


4.97%

4,534,921


4.74%

Consumer Loans:







Residential mortgage



765,604


4.43%

696,849


4.27%

Home equity



475,149


5.31%

474,538


4.84%

Installment and other consumer



72,283


7.16%

67,047


6.85%

Consumer construction



10,896


5.44%

5,336


5.00%

Total Consumer Loans



1,323,932


4.90%

1,243,770


4.63%

Total Portfolio Loans



6,123,360


4.95%

5,778,691


4.72%

Total Loans



6,125,529


4.95%

5,780,206


4.72%

Federal Home Loan Bank and other restricted stock



21,833


7.52%

30,457


6.74%

Total Interest-earning Assets



6,885,372


4.71%

6,549,679


4.48%

Noninterest-earning assets



550,164



494,149



Total Assets



$7,435,536



$7,043,828










LIABILITIES AND SHAREHOLDERS' EQUITY







Deposits:







Interest-bearing demand



$641,403


0.61%

$570,459


0.33%

Money market



1,691,910


1.79%

1,299,185


1.40%

Savings



766,142


0.25%

836,747


0.21%

Certificates of deposit



1,396,706


1.93%

1,328,985


1.43%

Total Interest-bearing Deposits



4,496,161


1.40%

4,035,376


1.01%

Borrowings:







Securities sold under repurchase agreements



16,863


0.65%

45,992


0.48%

Short-term borrowings



255,264


2.51%

525,172


2.11%

Long-term borrowings



66,392


2.76%

47,986


2.35%

Junior subordinated debt securities



47,934


4.82%

45,619


4.60%

Total Borrowings



386,453


2.76%

664,769


2.19%

Total Interest-bearing Liabilities



4,882,614


1.51%

4,700,145


1.18%

Noninterest-bearing liabilities



1,569,014



1,435,328










SHAREHOLDERS' EQUITY







Total Shareholders' Equity



983,908



908,355



Total Liabilities and Shareholders' Equity



$7,435,536



$7,043,828










Net Interest Margin (8)




3.64%


3.64%















 

 

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



2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


Nonperforming Loans (NPL)







Commercial loans:


% NPL


% NPL


% NPL

Commercial real estate

$29,140

0.85%

$33,740

1.15%

$12,052

0.41%

Commercial and industrial

13,982

0.81%

4,206

0.26%

8,960

0.60%

Commercial construction

737

0.20%

1,143

0.36%

14,193

5.52%

  Total Nonperforming Commercial Loans

43,859

0.80%

39,089

0.80%

35,205

0.75%

Consumer loans:







Residential mortgage

7,519

0.75%

7,384

0.96%

7,128

0.98%

Home equity

2,639

0.49%

3,492

0.74%

3,698

0.78%

Installment and other consumer

40

0.05%

18

0.02%

42

0.06%

  Total Nonperforming Consumer Loans

10,198

0.63%

10,894

0.81%

10,868

0.85%

Total Nonperforming Loans

$54,057

0.76%

$49,983

0.81%

$46,073

0.77%




2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


Loan Charge-offs/(Recoveries)







Charge-offs

$2,798


$4,700


$3,279


Recoveries

(802)


(423)


(1,002)


Net Loan Charge-offs/(Recoveries)

$1,996


$4,277


$2,277









Net Loan Charge-offs (Recoveries)







Commercial Loans:







Commercial real estate

$829


$2,298


($17)


Commercial and industrial

(121)


1,257


(567)


Commercial construction

404


(1)


2,308


Total Commercial Loan Charge-offs/(Recoveries)

1,112


3,554


1,724


Consumer loans:







Residential mortgage

112


289


191


Home equity

383


13


133


Installment and other consumer

389


421


297


Consumer construction



(68)


Total Consumer Loan Charge-offs

884


723


553


Total Net Loan Charge-offs/(Recoveries)

$1,996


$4,277


$2,277







For the Twelve Months Ended December 31,

(dollars in thousands)




2019


2018


Loan Charge-offs/(Recoveries)








Charge-offs




$16,189


$14,589


Recoveries




(2,544)


(4,200)


Net Loan Charge-offs/(Recoveries)




$13,645


$10,389










Net Loan Charge-offs (Recoveries)








Commercial loans:








Commercial real estate




$3,527


$63


Commercial and industrial




7,540


6,851


Commercial construction




401


1,495


Total Commercial Loan Charge-offs/(Recoveries)




11,468


8,409


Consumer loans:








Residential mortgage




364


394


Home equity




434


541


Installment and other consumer




1,461


1,202


Consumer construction




(82)


(157)


Total Consumer Loan Charge-offs/(Recoveries)




2,177


1,980


Total Net Loan Charge-offs/(Recoveries)




$13,645


$10,389


 

 


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



2019


2019


2018



Fourth


Third


Fourth


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonperforming loans

$54,057



$49,983



$46,073



OREO

3,525



1,724



3,092



Nonperforming assets

57,582



51,707



49,165



Troubled debt restructurings (nonaccruing)

8,912



14,496



11,088



Troubled debt restructurings (accruing)

36,960



38,434



16,786



Total troubled debt restructurings

45,872



52,930



27,874



Nonperforming loans / loans

0.76%



0.81%



0.77%



Nonperforming assets / loans plus OREO

0.81%



0.83%



0.83%



Allowance for loan losses / total portfolio loans

0.87%



1.00%



1.03%



Allowance for loan losses / nonperforming loans

115%



124%



132%



Net loan charge-offs / (recoveries)

$1,996



$4,277



$2,277



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

0.12%



0.28%



0.15%



















For the Twelve Months Ended December 31,

(dollars in thousands)



2019


2018


Asset Quality Data







Net loan charge-offs / (recoveries)



$13,645



$10,389



Net loan charge-offs(recoveries) / average loans



0.22%



0.18%



 

 

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


The following profitability metrics are adjusted to exclude merger related expenses from the DNB merger in the fourth quarter and for the twelve months ended December 31, 2019.



2019


2019





Fourth

Twelve Months Ended




Quarter


December 31,




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







Net income

$22,269



$98,234





Adjust for merger related expenses

10,179



11,350





Tax effect of merger related expenses

(1,912)



(2,106)





Net income excluding merger related expenses

$30,536



$107,478





Net income excluding merger related expenses (quarterly annualized)

$121,148



$107,478





Plus: amortization of intangibles (quarterly annualized)

1,298



836





Tax effect of amortization of intangibles (quarterly annualized)

(273)



(176)





Net income before amortization of intangibles (quarterly annualized)

$122,174



$108,138












Average total shareholders' equity

$1,064,271



$983,908





Less: average goodwill and other intangible assets

(323,281)



(298,228)





Tax effect of other intangible assets

1,077



639





Average tangible equity (non-GAAP)

$742,067



$686,319





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

16.46%



15.76%












Return on Average Assets (non-GAAP)







Net income excluding merger related expenses (quarterly annualized)

$121,148



$107,478





Average total assets

7,924,087



7,435,536





Return on average assets (non-GAAP)

1.53%



1.45%












Return on Average Equity (non-GAAP)







Net income excluding merger related expenses (quarterly annualized)

$121,148



$107,478





Average total shareholders' equity

1,064,271



983,908





Return on average shareholders' equity (non-GAAP)

11.38%



10.92%





 

 

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



2019


2019


2018



Fourth


Third


Fourth



Quarter


Quarter


Quarter









(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$1,191,998



$982,447



$935,761



 Less: goodwill and other intangible assets

(382,540)



(289,538)



(290,047)



Tax effect of other intangible assets

2,293



439



546



Tangible common equity (non-GAAP)

$811,751



$693,348



$646,260



Common shares outstanding

39,560



34,245



34,684



Tangible book value (non-GAAP)

$20.52



$20.25



$18.63










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







Net income (annualized)

$88,350



$106,865



$106,540



Plus: amortization of intangibles (annualized)

1,298



647



811



Tax effect of amortization of intangibles (annualized)

(273)



(136)



(170)



Net income before amortization of intangibles (annualized)

$89,375



$107,376



$107,181










Average total shareholders' equity

$1,064,271



$973,711



$926,782



Less: average goodwill and other intangible assets

(323,281)



(289,622)



(290,045)



Tax effect of average other intangible assets

1,077



457



546



Average tangible equity (non-GAAP)

$742,067



$684,546



$637,283



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

12.04%



15.69%



16.82%










(3) Efficiency Ratio (non-GAAP)







Noninterest expense

$50,178



$37,667



$36,415



Less: merger related expenses

(10,179)



(552)





Noninterest expense excluding nonrecurring items

$39,999



$37,115



$36,415










Net interest income per consolidated statements of net income

$64,412



$61,196



$59,842



Less: net (gains)losses on sale of securities

26







Plus: taxable equivalent adjustment

903



934



974



Net interest income (FTE) (non-GAAP)

$65,341



$62,130



$60,816



Noninterest income

15,231



13,063



11,095



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

$80,572



$75,193



$71,911



Efficiency ratio (non-GAAP)

49.64%



49.36%



50.64%










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







Total shareholders' equity

$1,191,998



$982,447



$935,761



Less: goodwill and other intangible assets

(382,540)



(289,538)



(290,047)



Tax effect of other intangible assets

2,293



439



546



Tangible common equity (non-GAAP)

$811,751



$693,348



$646,260










Total assets