S&T Bancorp, Inc. Announces Second Quarter 2018 Results

<< Back

Jul 19, 2018

S&T Bancorp, Inc. Announces Second Quarter 2018 Results

INDIANA, Pa., July19, 2018 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its second quarter 2018 earnings. Second quarter net income was $21.4 million, or $0.61 diluted earnings per share (EPS), compared  to second quarter of 2017 net income of $22.8 million, or $0.65 diluted EPS and first quarter of 2018 net income of $26.2 million, or $0.75 diluted EPS.

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

Second Quarter of 2018 Highlights:

  • Return on average assets was 1.22%, return on average shareholders' equity was 9.52% and return on average tangible shareholders' equity (non-GAAP) was 14.14%.
  • Net interest margin (FTE) (Non-GAAP) improved 5 basis points to 3.64% and net interest income increased $1.5 million to $58.4 million compared to the first quarter of 2018.
  • Total portfolio loans increased $55.5 million, or 3.9% annualized, compared to the first quarter of 2018.
  • Expenses continue to be well controlled with an efficiency ratio (non-GAAP) of 50.09% compared to 51.48% in the second quarter of 2017.
  • S&T declared a $0.25 per share dividend which is an increase of 25% compared to a $0.20 dividend in the same period last year.

"Our core operating performance continues to be strong with net interest income and net interest margin improvement combined with excellent expense control," said Todd Brice, president and chief executive officer of S&T.  "Loan growth resumed in the second quarter despite a notable increase in competition. We remain disciplined in our loan growth strategy with a strong focus on maintaining spreads."

Net Interest Income

Net interest income increased $1.5 million to $58.4 million for the second quarter of 2018 compared to $56.9 million for the first quarter of 2018. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 5 basis points to 3.64% from 3.59% for the first quarter of 2018. The increases in short term interest rates in March and June of 2018 positively impacted both net interest income and net interest margin. Loan rates increased 18 basis points to 4.68% compared to 4.50% in the prior quarter, while total interest-bearing liabilities increased 17 basis points to 1.12% compared to 0.95%.

Asset Quality

Net charge-offs and provision for loan losses were significantly impacted by a $5.2 million loan charge-off, or $0.12 per diluted EPS, arising from a participation loan agreement with a lead bank and other participating banks. The loss resulted from fraudulent activities believed to be perpetrated by one or more executives employed by the borrower and its related entities. S&T's total exposure consisted of the participation loan of $4.9 million and a direct exposure of $950 thousand which is secured by vehicles and equipment liens. As a result, net loan charge-offs increased to $7.9 million compared to a net recovery of $0.2 million in the first quarter of 2018.  The provision for loan loss increased $6.8 million to $9.3 million compared to $2.5 million in the first quarter of 2018. The allowance for loan losses to total portfolio loans was 1.05% at June 30, 2018 compared to 1.03% at March 31, 2018. While the net charge-offs and the provision for loan losses were elevated during the second quarter of 2018, both nonperforming loans and delinquency remained at low levels. Total nonperforming loans were $21.4 million, or 0.37% of total loans, at June 30, 2018 compared to $21.3 million, or 0.37% of total loans at March 31, 2018.

Noninterest Income and Expense

Noninterest income decreased $1.5 million to $12.3 million for the second quarter of 2018 compared to $13.8 million for the first quarter of 2018. The decrease primarily related to a $1.9 million gain on the sale of a majority interest of our insurance business during the first quarter of 2018. Insurance fees decreased $1.3 million compared to the second quarter of 2017 as a result of this sale.

Expenses remained well controlled decreasing to $35.9 million compared to $36.1 million for the first quarter of 2018. Marketing expense increased $0.5 million due to the timing of marketing campaigns.  FDIC expense decreased $0.4 million due to improvements in the financial ratios used to determine the assessment. The efficiency ratio (non-GAAP) improved during the second quarter of 2018 to 50.09% compared to 50.35% in the first quarter and 51.48% in the second quarter of 2017 primarily due to lower expenses.

Financial Condition

Total assets were $7.1 billion at June 30, 2018 compared to $7.0 billion as of March 31, 2018. Total portfolio loans increased $55.5 million, or 3.9% annualized, compared to March 31, 2018. C&I loan growth was strong with an increase of $48.6 million, approximately 14% annualized, compared to the first quarter of 2018. Total deposits remained stable at $5.4 billion at June 30, 2018 and March 31, 2018. All capital ratios increased this quarter due to higher retained earnings and slower risk weighted asset growth. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.25 per share cash dividend at its regular meeting held July 16, 2018.  This dividend is a 25% increase compared to a $0.20 dividend in the same period last year. The dividend is payable August 16, 2018 to shareholders of record on August 2, 2018.

Conference Call

S&T will host its second quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 19, 2018. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd Quarter 2018 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 July 26, 2018, by dialing 1.877.481.4010; the Conference ID # is 33697.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $7.1 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.

This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward looking statements are typically identified by words or phrases such as "will likely result", "expect", "anticipate" ,"estimate", "forecast", "project", "intend", " believe", "assume", "strategy", "trend", "plan", "outlook", "outcome", "continue", "remain", "potential", "opportunity", "believe", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses, cyber-security concerns; rapid technological developments and changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or business conditions; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

 

 

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

 
   
 

2018

 

2018

 

2017

 
 

Second

 

First

 

Second

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST INCOME

           

Loans, including fees

$66,610

 

$63,055

 

$60,558

 

Investment securities:

           

Taxable

3,519

 

3,429

 

2,947

 

Tax-exempt

872

 

874

 

928

 

Dividends

580

 

671

 

481

 

Total Interest Income

71,581

 

68,029

 

64,914

 
             

INTEREST EXPENSE

           

Deposits

9,166

 

7,846

 

5,976

 

Borrowings and junior subordinated debt securities

4,012

 

3,251

 

2,368

 

Total Interest Expense

13,178

 

11,097

 

8,344

 
             

NET INTEREST INCOME

58,403

 

56,932

 

56,570

 

Provision for loan losses

9,345

 

2,472

 

4,869

 

Net Interest Income After Provision for Loan Losses

49,058

 

54,460

 

51,701

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

 

 

3,617

 

Debit and credit card

3,309

 

3,037

 

3,042

 

Service charges on deposit accounts

3,227

 

3,241

 

2,997

 

Wealth management

2,616

 

2,682

 

2,428

 

Mortgage banking

831

 

602

 

675

 

Insurance

134

 

169

 

1,458

 

Gain on sale of a majority interest of insurance business

 

1,873

 

 

Other

2,134

 

2,188

 

2,048

 

Total Noninterest Income

12,251

 

13,792

 

16,265

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

18,611

 

18,815

 

19,903

 

Net occupancy

2,804

 

2,873

 

2,751

 

Data processing and information technology

2,379

 

2,325

 

2,163

 

Furniture, equipment and software

2,134

 

1,957

 

1,810

 

Other taxes

1,739

 

1,848

 

1,083

 

Marketing

1,190

 

702

 

948

 

Professional services and legal

888

 

1,051

 

931

 

FDIC insurance

739

 

1,108

 

1,185

 

Other

5,379

 

5,403

 

5,823

 

Total Noninterest Expense

35,863

 

36,082

 

36,597

 
             

Income Before Taxes

25,446

 

32,170

 

31,369

 

Provision for income taxes

4,010

 

6,007

 

8,604

 
             

Net Income

$21,436

 

$26,163

 

$22,765

 
             

Per Share Data

           

Shares outstanding at end of period

35,009,945

 

35,000,502

 

34,980,280

 

Average shares outstanding - diluted

35,057,576

 

34,999,165

 

34,906,496

 

Diluted earnings per share

$0.61

 

$0.75

 

$0.65

 

Dividends declared per share

$0.25

 

$0.22

 

$0.20

 

Dividend yield (annualized)

2.31%

 

2.20%

 

2.23%

 

Dividends paid to net income

40.69%

 

29.31%

 

30.60%

 

Book value

$25.91

 

$25.58

 

$24.90

 

Tangible book value(1)

$17.63

 

$17.30

 

$16.49

 

Market value

$43.24

 

$39.94

 

$35.86

 
             

Profitability Ratios (annualized)

           

Return on average assets

1.22%

 

1.51%

 

1.29%

 

Return on average shareholders' equity

9.52%

 

11.92%

 

10.55%

 

Return on average tangible shareholders' equity (2)

14.14%

 

17.83%

 

16.15%

 

Efficiency ratio (FTE)(3)

50.09%

 

50.35%

 

51.48%

 
                   

 

 

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

 
   
     

Six Months Ended June 30,

 

(dollars in thousands, except per share data)

   

2018

 

2017

 

INTEREST INCOME

           

Loans, including fees

   

$129,665

 

$117,458

 

Investment securities:

           

Taxable

   

6,948

 

5,796

 

Tax-exempt

   

1,746

 

1,848

 

Dividends

   

1,251

 

963

 

Total Interest Income

   

139,610

 

126,065

 
             

INTEREST EXPENSE

           

Deposits

   

17,012

 

11,355

 

Borrowings and junior subordinated debt securities

   

7,264

 

4,261

 

Total Interest Expense

   

24,276

 

15,616

 
             

NET INTEREST INCOME

   

115,334

 

110,449

 

Provision for loan losses

   

11,817

 

10,052

 

Net Interest Income After Provision for Loan Losses

   

103,517

 

100,397

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

 

3,987

 

Debit and credit card

   

6,347

 

5,885

 

Service charges on deposit accounts

   

6,468

 

6,012

 

Wealth management

   

5,298

 

4,831

 

Mortgage banking

   

1,432

 

1,408

 

Insurance

   

303

 

2,913

 

Gain on sale of a majority interest of insurance business

   

1,873

 

 

Other

   

4,323

 

4,225

 

Total Noninterest Income

   

26,044

 

29,261

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

   

37,426

 

40,444

 

Net occupancy

   

5,677

 

5,566

 

Data processing and information technology

   

4,704

 

4,386

 

Furniture, equipment and software

   

4,090

 

3,857

 

Other taxes

   

3,587

 

2,060

 

Marketing

   

1,892

 

1,702

 

Professional services and legal

   

1,939

 

1,999

 

FDIC insurance

   

1,847

 

2,308

 

Other

   

10,783

 

11,084

 

Total Noninterest Expense

   

71,945

 

73,406

 
             

Income Before Taxes

   

57,616

 

56,252

 

Provision for income taxes

   

10,017

 

15,299

 
             

Net Income

   

$47,599

 

$40,953

 
             

Per Share Data:

           

Average shares outstanding - diluted

   

35,043,041

 

34,907,377

 

Diluted earnings per share

   

$1.36

 

$1.17

 

Dividends declared per share

   

$0.47

 

$0.40

 

Dividends paid to net income

   

34.44%

 

34.01%

 
             

Profitability Ratios (annualized)

           

Return on average assets

   

1.37%

 

1.18%

 

Return on average shareholders' equity

   

10.71%

 

9.63%

 

Return on average tangible shareholders' equity (6)

   

15.95%

 

14.83%

 

Efficiency ratio (FTE) (7)

   

50.22%

 

52.63%

 
                 

 

 

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

 
   
 

2018

 

2018

 

2017

 
 

Second

 

First

 

Second

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$137,933

 

$112,849

 

$125,863

 

Securities, at fair value

688,341

 

687,650

 

689,388

 

Loans held for sale

3,801

 

3,283

 

23,120

 

Commercial loans:

           

Commercial real estate

2,788,641

 

2,760,891

 

2,664,642

 

Commercial and industrial

1,455,578

 

1,406,950

 

1,401,283

 

Commercial construction

299,787

 

324,141

 

426,754

 

Total Commercial Loans

4,544,006

 

4,491,982

 

4,492,679

 

Consumer loans:

           

Residential mortgage

698,440

 

692,385

 

706,143

 

Home equity

471,622

 

474,850

 

484,960

 

Installment and other consumer

66,638

 

66,890

 

70,068

 

Consumer construction

5,412

 

4,506

 

3,969

 

Total Consumer Loans

1,242,112

 

1,238,631

 

1,265,140

 

Total Portfolio Loans

5,786,118

 

5,730,613

 

5,757,819

 

Allowance for loan losses

(60,517)

 

(59,046)

 

(55,351)

 

Total Portfolio Loans, Net

5,725,601

 

5,671,567

 

5,702,468

 

Federal Home Loan Bank and other restricted stock, at cost

35,782

 

29,769

 

33,417

 

Goodwill

287,446

 

287,446

 

291,670

 

Other assets

218,442

 

212,765

 

220,240

 

Total Assets

$7,097,346

 

$7,005,329

 

$7,086,166

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,410,211

 

$1,368,350

 

$1,335,768

 

Interest-bearing demand

553,729

 

560,711

 

636,904

 

Money market

1,267,623

 

1,239,400

 

950,619

 

Savings

845,526

 

876,459

 

1,010,348

 

Certificates of deposit

1,316,444

 

1,342,174

 

1,476,223

 

Total Deposits

5,393,533

 

5,387,094

 

5,409,862

 
             

Borrowings:

           

Securities sold under repurchase agreements

44,724

 

44,617

 

46,489

 

Short-term borrowings

600,000

 

525,000

 

645,000

 

Long-term borrowings

46,062

 

46,684

 

13,518

 

Junior subordinated debt securities

45,619

 

45,619

 

45,619

 

Total Borrowings

736,405

 

661,920

 

750,626

 

Other liabilities

60,275

 

60,908

 

54,616

 

Total Liabilities

6,190,213

 

6,109,922

 

6,215,104

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

907,133

 

895,407

 

871,062

 

Total Liabilities and Shareholders' Equity

$7,097,346

 

$7,005,329

 

$7,086,166

 
             

Capitalization Ratios

           

Shareholders' equity / assets

12.78%

 

12.78%

 

12.29%

 

Tangible common equity / tangible assets(4)

9.07%

 

9.02%

 

8.49%

 

Tier 1 leverage ratio

9.87%

 

9.72%

 

9.01%

 

Common equity tier 1 capital

11.18%

 

11.02%

 

10.53%

 

Risk-based capital - tier 1

11.53%

 

11.36%

 

10.89%

 

Risk-based capital - total

13.04%

 

12.85%

 

12.37%

 

 

 

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

 
     
 

2018

 

2018

 

2017

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Net Interest Margin (FTE) (QTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

$55,015

1.60%

$56,008

1.65%

$48,547

0.91%

 

Securities, at fair value

685,132

2.60%

686,912

2.53%

709,208

2.48%

 

Loans held for sale

1,528

7.43%

1,949

5.65%

5,053

2.61%

 

Commercial real estate

2,774,882

4.71%

2,690,990

4.57%

2,664,696

4.30%

 

Commercial and industrial

1,431,861

4.66%

1,431,588

4.41%

1,430,080

4.30%

 

Commercial construction

324,934

4.76%

375,129

4.51%

421,456

4.09%

 

Total Commercial Loans

4,531,677

4.70%

4,497,707

4.51%

4,516,232

4.28%

 

Residential mortgage

691,634

4.23%

694,303

4.19%

700,406

4.14%

 

Home equity

472,927

4.81%

481,053

4.47%

481,039

4.38%

 

Installment and other consumer

67,186

6.79%

66,861

6.69%

69,899

6.46%

 

Consumer construction

4,570

4.76%

3,810

4.69%

4,572

4.93%

 

Total Consumer Loans

1,236,317

4.60%

1,246,027

4.43%

1,255,916

4.36%

 

Total Portfolio Loans

5,767,994

4.68%

5,743,734

4.50%

5,772,148

4.30%

 

Total Loans

5,769,522

4.68%

5,745,683

4.50%

5,777,201

4.30%

 

Federal Home Loan Bank and other restricted stock

34,130

6.30%

31,216

8.05%

33,082

4.60%

 

Total Interest-earning Assets

6,543,799

4.44%

6,519,819

4.28%

6,568,038

4.08%

 

Noninterest-earning assets

491,246

 

488,808

 

507,425

   

Total Assets

$7,035,045

 

$7,008,627

 

$7,075,463

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

$571,260

0.31%

$575,377

0.26%

$649,440

0.22%

 

Money market

1,251,171

1.29%

1,194,053

1.10%

937,272

0.72%

 

Savings

851,702

0.20%

874,318

0.20%

1,019,220

0.21%

 

Certificates of deposit

1,295,473

1.32%

1,355,617

1.14%

1,457,107

0.93%

 

Total interest-bearing Deposits

3,969,606

0.93%

3,999,365

0.80%

4,063,039

0.59%

 

Securities sold under repurchase agreements

48,980

0.41%

47,774

0.39%

50,082

0.06%

 

Short-term borrowings

617,891

2.06%

596,014

1.71%

682,584

1.09%

 

Long-term borrowings

46,317

2.24%

46,938

1.99%

13,765

2.96%

 

Junior subordinated debt securities

45,619

4.61%

45,619

4.14%

45,619

3.60%

 

Total Borrowings

758,807

2.12%

736,345

1.79%

792,050

1.20%

 

Total interest-bearing Liabilities

4,728,413

1.12%

4,735,710

0.95%

4,855,089

0.69%

 

Noninterest-bearing liabilities

1,403,771

 

1,383,109

 

1,354,711

   

Shareholders' equity

902,861

 

889,808

 

865,663

   

Total Liabilities and Shareholders' Equity

$7,035,045

 

$7,008,627

 

$7,075,463

   
               

Net Interest Margin(5)

 

3.64%

 

3.59%

 

3.57%

 

 

 

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

 
           
     

Six Months Ended June 30,

   

(dollars in thousands)

   

2018

 

2017

   

Net Interest Margin (FTE) (YTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

   

$55,509

1.63%

$57,311

0.87%

 

Securities, at fair value

   

686,017

2.57%

703,300

2.46%

 

Loans held for sale

   

1,737

6.44%

3,639

3.16%

 

Commercial real estate

   

2,733,168

4.64%

2,595,163

4.27%

 

Commercial and industrial

   

1,431,725

4.53%

1,421,986

4.23%

 

Commercial construction

   

349,893

4.63%

438,079

3.89%

 

Total Commercial Loans

   

4,514,786

4.61%

4,455,228

4.22%

 

Residential mortgage

   

692,961

4.21%

700,129

4.10%

 

Home equity

   

476,967

4.64%

480,727

4.26%

 

Installment and other consumer

   

67,025

6.74%

69,036

6.47%

 

Consumer construction

   

4,192

4.73%

4,971

4.25%

 

Total Consumer Loans

   

1,241,145

4.52%

1,254,863

4.29%

 

Total Portfolio Loans

   

5,755,931

4.59%

5,710,091

4.24%

 

Total Loans

   

5,757,668

4.59%

5,713,730

4.24%

 

Federal Home Loan Bank and other restricted stock

   

32,681

7.13%

32,888

4.64%

 

Total Interest-earning Assets

   

6,531,875

4.36%

6,507,229

4.02%

 

Noninterest-earning assets

   

490,476

 

509,265

   

Total Assets

   

$7,022,351

 

$7,016,494

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

   

$573,307

0.28%

$641,381

0.20%

 

Money market

   

1,222,770

1.20%

937,641

0.67%

 

Savings

   

862,947

0.20%

1,030,371

0.21%

 

Certificates of deposit

   

1,325,379

1.23%

1,430,599

0.92%

 

Total Interest-bearing deposits

   

3,984,403

0.86%

4,039,992

0.57%

 

Securities sold under repurchase agreements

   

48,380

0.40%

49,492

0.03%

 

Short-term borrowings

   

607,013

1.89%

677,214

0.97%

 

Long-term borrowings

   

46,626

2.12%

14,062

2.94%

 

Junior subordinated debt securities

   

45,619

4.38%

45,619

3.53%

 

Total Borrowings

   

747,638

1.96%

786,387

1.09%

 

Total Interest-bearing Liabilities

   

4,732,041

1.03%

4,826,379

0.65%

 

Noninterest-bearing liabilities

   

1,393,939

 

1,332,181

   

Shareholders' equity

   

896,371

 

857,934

   

Total Liabilities and Shareholders' Equity

   

$7,022,351

 

$7,016,494

   
               

Net Interest Margin (8)

     

3.61%

 

3.53%

 

 

 

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

 
   
 

2018

 

2018

 

2017

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Nonperforming Loans (NPL)

             

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

 

Commercial real estate

$4,617

0.17%

$3,952

0.14%

$7,199

0.27%

 

Commercial and industrial

4,853

0.33%

4,617

0.33%

17,418

1.24%

 

Commercial construction

1,870

0.62%

1,873

0.58%

2,313

0.54%

 

Total Nonperforming Commercial Loans

11,340

0.25%

10,442

0.23%

26,930

0.60%

 

Consumer loans:

             

Residential mortgage

6,112

0.88%

6,715

0.97%

7,056

0.99%

 

Home equity

3,871

0.82%

4,109

0.87%

2,642

0.54%

 

Installment and other consumer

49

0.07%

69

0.10%

41

0.06%

 

Total Nonperforming Consumer Loans

10,032

0.81%

10,893

0.88%

9,739

0.76%

 

Total Nonperforming Loans

$21,372

0.37%

$21,335

0.37%

$36,669

0.63%

 
   
     
 

2018

 

2018

 

2017

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Loan Charge-offs

             

Charge-offs

$8,632

 

$1,444

 

$5,822

   

Recoveries

(758)

 

(1,628)

 

(488)

   

Net Loan Charge-offs

$7,874

 

($184)

 

$5,334

   
               

Net Loan Charge-offs

             

Commercial loans:

             

Commercial real estate

$52

 

($48)

 

$1,518

   

Commercial and industrial

7,030

 

712

 

2,613

   

Commercial construction

320

 

(1,129)

 

(113)

   

Total Commercial Loan Charge-offs

7,402

 

(465)

 

4,018

   

Consumer loans:

             

Residential mortgage

96

 

53

 

695

   

Home equity

129

 

(123)

 

354

   

Installment and other consumer

289

 

359

 

295

   

Consumer construction

(42)

 

(8)

 

(28)

   

Total Consumer Loan Charge-offs

472

 

281

 

1,316

   

Total Net Loan Charge-offs

$7,874

 

($184)

 

$5,334

   
           
           
     

Six Months Ended June 30,

   

(dollars in thousands)

   

2018

 

2017

   

Loan Charge-offs

             

Charge-offs

   

$10,076

 

$8,763

   

Recoveries

   

(2,386)

 

(1,287)

   

Net Loan Charge-offs

   

$7,690

 

$7,476

   
               

Net Loan Charge-offs

             

Commercial loans:

             

Commercial real estate

   

$4

 

$1,830

   

Commercial and industrial

   

7,741

 

3,141

   

Commercial construction

   

(809)

 

275

   

Total Commercial Loan Charge-offs

   

6,936

 

5,246

   

Consumer loans:

             

Residential mortgage

   

149

 

1,176

   

Home equity

   

6

 

536

   

Installment and other consumer

   

648

 

553

   

Consumer construction

   

(49)

 

(35)

   

Total Consumer Loan Charge-offs

   

754

 

2,230

   

Total Net Loan Charge-offs

   

$7,690

 

$7,476

   

 

 

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

 
   
 

2018

 

2018

 

2017

 
 

Second

 

First

 

Second

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$21,372

 

$21,335

 

$36,669

 

OREO

2,999

 

2,920

 

1,620

 

Nonperforming assets

24,371

 

24,255

 

38,289

 

Troubled debt restructurings (nonaccruing)

7,395

 

8,560

 

10,105

 

Troubled debt restructurings (accruing)

24,454

 

20,035

 

15,080

 

Total troubled debt restructurings

31,849

 

28,595

 

25,185

 

Nonperforming loans / loans

0.37%

 

0.37%

 

0.63%

 

Nonperforming assets / loans plus OREO

0.42%

 

0.42%

 

0.66%

 

Allowance for loan losses / total portfolio loans

1.05%

 

1.03%

 

0.96%

 

Allowance for loan losses / nonperforming loans

283%

 

277%

 

151%

 

Net loan charge-offs (recoveries)

$7,874

 

$(184)

 

$5,334

 

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

0.55%

 

(0.01)%

 

0.37%

 
   
   
     

Six Months Ended June 30,

 

(dollars in thousands)

   

2018

 

2017

 

Asset Quality Data

           

Net loan charge-offs (recoveries)

   

$7,690

 

$7,476

 

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

   

0.27%

 

0.26%

 

 

 

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

 
   

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

 
   
 

2018

 

2018

 

2017

 
 

Second

 

First

 

Second

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

 Total shareholders' equity

$907,133

 

$895,407

 

$871,062

 

      Less: goodwill and other intangible assets

(290,355)

 

(290,572)

 

(295,861)

 

     Tax effect of other intangible assets

611

 

656

 

1,467

 

 Tangible common equity (non-GAAP)

$617,389

 

$605,491

 

$576,668

 

 Common shares outstanding

35,010

 

35,001

 

34,980

 

 Tangible book value (non-GAAP)

$17.63

 

$17.30

 

$16.49

 
             

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

           

  Net income (annualized)

$85,980

 

$106,105

 

$91,309

 

       Plus: amortization of intangibles (annualized)

869

 

1,037

 

1,449

 

       Tax effect of amortization of intangibles (annualized)

(183)

 

(218)

 

(507)

 

  Net income before amortization of intangibles (annualized)

$86,666

 

$106,924

 

$92,251

 
             

  Average total shareholders' equity

$902,861

 

$889,808

 

$865,663

 

       Less: average goodwill and other intangible assets

(290,464)

 

(290,754)

 

(296,074)

 

       Tax effect of average goodwill and other intangible assets

634

 

685

 

1,541

 

  Average tangible equity (non-GAAP)

$613,031

 

$599,739

 

$571,130

 

  Return on average tangible equity (non-GAAP)

14.14%

 

17.83%

 

16.15%

 
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$35,863

 

$36,082

 

$36,597

 
             

Net interest income per consolidated statements of net income

$58,403

 

$56,932

 

$56,570

 

     Less: net (gains) losses on sale of securities

   

   

(3,617)

 

     Plus: taxable equivalent adjustment

938

 

940

 

1,877

 

Net interest income (FTE) (non-GAAP)

59,341

 

57,872

 

54,830

 

Noninterest income

12,251

 

13,792

 

16,265

 

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

$71,592

 

$71,664

 

$71,095

 

Efficiency ratio (non-GAAP)

50.09%

 

50.35%

 

51.48%

 
             

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

           

 Total shareholders' equity

$907,133

 

$895,407

 

$871,062

 

      Less: goodwill and other intangible assets

(290,355)

 

(290,572)

 

(295,861)

 

      Tax effect of goodwill and other intangible assets

611

 

656

 

1,467

 

 Tangible common equity (non-GAAP)

$617,389

 

$605,491

 

$576,668

 
             

 Total assets

$7,097,346

 

$7,005,329

 

$7,086,166

 

      Less: goodwill and other intangible assets

(290,355)

 

(290,572)

 

(295,861)

 

      Tax effect of goodwill and other intangible assets

611

 

656

 

1,467

 

 Tangible assets (non-GAAP)

$6,807,602

 

$6,715,413

 

$6,791,772

 

 Tangible common equity to tangible assets (non-GAAP)

9.07%

 

9.02%

 

8.49%

 
             

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

           

 Interest income

$71,581

 

$68,029

 

$64,914

 

      Less: interest expense

(13,178)

 

(11,097)

 

(8,344)

 

 Net interest income per consolidated statements of net income

58,403

 

56,932

 

56,570

 

      Plus: taxable equivalent adjustment

938

 

940

 

1,877

 

 Net interest income (FTE) (non-GAAP)

59,341

 

57,872

 

58,447

 

 Net interest income (FTE) (annualized)

238,016

 

234,703

 

234,430

 

 Average earning assets

$6,543,799

 

$6,519,819

 

$6,568,038

 

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

3.64%

 

3.59%

 

3.57%

 
                 

 

 

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

 
   
     

Six months ended June 30,

 
     

2018

 

2017

 
             

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

           

  Net income (annualized)

   

$95,987

 

$82,584

 

  Plus: amortization of intangibles (annualized)

   

952

 

1,451

 

  Tax effect of amortization of intangibles (annualized)

   

(200)

 

(508)

 

  Net income before amortization of intangibles (annualized)

   

$96,739

 

$83,527

 
             

  Average total shareholders' equity

   

$896,371

 

$857,934

 

  Less: average goodwill and other intangible assets

   

(290,609)

 

(296,244)

 

  Tax effect of average goodwill and other intangible assets

   

659

 

1,601

 

  Average tangible equity (non-GAAP)

   

$606,421

 

$563,291

 

  Return on average tangible equity (non-GAAP)

   

15.95%

 

14.83%

 
             

(7) Efficiency Ratio (non-GAAP)

           

Noninterest expense

   

$71,945

 

$73,406

 
             

Net interest income per consolidated statements of net income

   

$115,334

 

$110,449

 

Less: net (gains) losses on sale of securities

   

 

(3,987)

 

Plus: taxable equivalent adjustment

   

1,878

 

3,747

 

Net interest income (FTE) (non-GAAP)

   

117,212

 

110,209

 

Noninterest income

   

26,044

 

29,261

 

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

   

$143,256

 

$139,470

 

Efficiency ratio (non-GAAP)

   

50.22%

 

52.63%

 
             

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

           

 Interest income

   

$139,610

 

$126,065

 

 Less: interest expense

   

(24,276)

 

(15,616)

 

 Net interest income per consolidated statements of net income

   

115,334

 

110,449

 

 Plus: taxable equivalent adjustment

   

1,878

 

3,747

 

 Net interest income (FTE) (non-GAAP)

   

117,212

 

114,196

 

 Net interest income (FTE) (annualized)

   

236,367

 

230,285

 

 Average earning assets

   

$6,531,875

 

$6,507,230

 

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

   

3.61%

 

3.53%

 
                 

 

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-second-quarter-2018-results-300683389.html

SOURCE S&T Bancorp, Inc.

Mark Kochvar, Chief Financial Officer, 724.465.4826, 800 Philadelphia Street, Indiana, PA 15701, mark.kochvar@stbank.com