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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

$8,764,649

   

$7,571,991

   

$7,252,221

   

Less: goodwill and other intangible assets

(382,540)

   

(289,538)

   

(290,047)

   

Tax effect of other intangible assets

2,293

   

439

   

546

   

Tangible assets (non-GAAP)

$8,384,402

   

$7,282,892

   

$6,962,720

   

Tangible common equity to tangible assets (non-GAAP)

9.68%

   

9.52%

   

9.28%

   
             

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

           

Interest income

$82,457

   

$79,813

   

$76,589

   

Less: interest expense

(18,045)

   

(18,617)

   

(16,747)

   

Net interest income per consolidated statements of net income

$64,412

   

$61,196

   

$59,842

   

Plus: taxable equivalent adjustment

903

   

934

   

974

   

Net interest income (FTE) (non-GAAP)

$65,315

   

$62,130

   

$60,816

   

Net interest income (FTE) (annualized)

$259,130

   

$246,494

   

$241,281

   

Average earning assets

$7,304,501

   

$6,816,359

   

$6,622,090

   

Net interest margin (FTE) (non-GAAP)

3.55%

   

3.62%

   

3.65%

   

 

 

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

 
   

For the Twelve Months Ended December 31,

     

2019

 

2018

 
             

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

           

Net income

   

$98,234

   

$105,334

   

Plus: amortization of intangibles

   

836