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Jul 18, 2019

S&T Bancorp, Inc. Announces Second Quarter 2019 Results

INDIANA, Pa., July 18, 2019 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its second quarter 2019 earnings. Second quarter net income was $26.1 million, or $0.76 diluted earnings per share (EPS), compared to first quarter of 2019 net income of $22.9 million, or $0.66 diluted EPS, and second quarter of 2018 net income of $21.4 million, or $0.61 diluted EPS.

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

Second Quarter of 2019 Highlights:

  • Return on average assets (ROA) was 1.44%, return on average equity (ROE) was 11.00% and return on average tangible equity (ROTE) (non-GAAP) was 15.89%.
  • Portfolio loans increased $97.7 million, or 6.6% annualized, compared to the first quarter of 2019.
  • S&T announced expansion into Southeastern Pennsylvania with the signing of a definitive merger agreement where S&T will acquire DNB Financial Corporation ($1.2 billion of assets) in an all-stock transaction.
  • S&T's Board of Directors declared a $0.27 per share dividend, which is an increase of 8% compared to a $0.25 dividend in the same period last year.

"We are pleased to report quality earnings for the second quarter with solid loan growth," said Todd Brice, chief executive officer of S&T. "The execution of our growth strategy continues with the announcement of our merger with DNB Financial Corporation, Inc. in Southeastern Pennsylvania. We look forward to closing the transaction during the fourth quarter and entering into the robust markets of Chester, Delaware and Philadelphia counties."

Net Interest Income

Net interest income increased $0.5 million to $60.8 million for the second quarter of 2019 compared to $60.3 million for the first quarter of 2019.  The increase was primarily due to growth in average loan balances of $44.5 million and one additional day in the second quarter compared to the first quarter. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) decreased 3 basis points to 3.68% from 3.71% in the first quarter of 2019. Loan rates remained unchanged at 5.06% and total interest-bearing liability costs increased 3 basis points to 1.58% compared to 1.55% in the first quarter of 2019.

Asset Quality

Total nonperforming loans decreased $3.0 million to $45.0 million, or 0.75% of total loans, compared to $48.0 million, or 0.81% at March 31, 2019. Net loan charge-offs were $2.1 million compared to $5.2 million in the first quarter of 2019. The provision for loan losses was $2.2 million compared to $5.6 million in the first quarter of 2019 mainly due to stable credit quality and lower charge-offs. The allowance for loan losses to total portfolio loans was 1.02% at June 30, 2019 compared to 1.03% at March 31, 2019.

Noninterest Income and Expense

Noninterest income increased $1.5 million to $12.9 million compared to $11.4 million for the first quarter of 2019. The increase was mainly due to an increase in other income of $0.8 million primarily related to higher commercial loan swap and syndication fees. Noninterest income was also impacted by a $0.5 million increase in debit and credit card fees compared to the first quarter of 2019, primarily due to seasonality.

Noninterest expense increased $1.5 million to $40.4 million compared to $38.9 million in the first quarter of 2019. The increase was in part due to merger related expense of $0.6 million during the second quarter of 2019.  Other expense increased $0.7 million primarily related to $0.4 million for losses on the sale of OREO and $0.3 million of higher loan collection costs.

Financial Condition

Total assets were $7.3 billion at June 30, 2019 compared to $7.2 billion at March 31, 2019. Loan growth was strong during the quarter with an increase of $97.7 million, or 6.6% annualized compared to the first quarter of 2019.  Commercial loans grew $73.5 million during the quarter, or 6.3% annualized, due mainly to growth in the commercial and industrial and construction portfolios.  Consumer loans grew $24.2 million, 7.6% annualized, driven by growth in residential mortgage. Deposits were $5.9 billion at June 30, 2019 compared to $5.8 billion at March 31, 2019. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

S&T Bancorp, Inc. and DNB Financial Corporation Announce Merger

On June 5, 2019, S&T and DNB Financial Corporation (DNB), the holding company for DNB First, a community bank headquartered in Downingtown, Pennsylvania with 14 locations, jointly announced the signing of a definitive merger agreement pursuant to which S&T will acquire DNB in an all-stock transaction. DNB shareholders will receive 1.22 shares of S&T stock for each share of DNB stock. Based on S&T's June 4, 2019 closing price of $38.75 per share, the transaction will have an aggregate value of approximately $206 million, or $47.28 per share. The merger will expand S&T's footprint into Southeastern Pennsylvania, gaining a new presence in Chester, Delaware, and Philadelphia counties and increasing assets by $1.2 billion. On a combined basis, S&T will have approximately $8.4 billion in total assets. S&T and DNB expect to complete the transaction during the fourth quarter of 2019 after satisfaction of customary closing conditions, including regulatory approvals and the approval of the shareholders of DNB. The second quarter of 2019 results included $0.6 million, or $0.01 per diluted share, of merger related expenses.

Dividend

The Board of Directors of S&T declared a $0.27 per share cash dividend at its regular meeting held July 15, 2019. This dividend is an 8% increase compared to a $0.25 dividend in the same period last year. The dividend is payable August 15, 2019 to shareholders of record on August 1, 2019.

Conference Call

S&T will host its second quarter 2019 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 18, 2019. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "Second 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 July 25, 2019, by dialing 1.877.481.4010; the Conference ID # is 49690.

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

S&T Bancorp, Inc. is a $7.3 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was recently named by Forbes as a 2019 World's Best Bank and a 2018 Best-in-State Bank. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, Central 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

 
 

Second

 

First

 

Second

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST AND DIVIDEND INCOME

           

Loans, including fees

$74,728

 

$73,392

 

$66,610

 

Investment securities:

           

Taxable

3,647

 

3,790

 

3,519

 

Tax-exempt

834

 

844

 

872

 

Dividends

415

 

564

 

580

 

Total Interest and Dividend Income

79,624

 

78,590

 

71,581

 
             

INTEREST EXPENSE

           

Deposits

16,055

 

14,981

 

9,166

 

Borrowings and junior subordinated debt securities

2,742

 

3,253

 

4,012

 

Total Interest Expense

18,797

 

18,234

 

13,178

 
             

NET INTEREST INCOME

60,827

 

60,356

 

58,403

 

Provision for loan losses

2,205

 

5,649

 

9,345

 

Net Interest Income After Provision for Loan Losses

58,622

 

54,707

 

49,058

 
             

NONINTEREST INCOME

           

Net gain on sale of securities

 

 

 

Debit and credit card

3,501

 

2,974

 

3,309

 

Service charges on deposit accounts

3,212

 

3,153

 

3,227

 

Wealth management

2,062

 

2,048

 

2,616

 

Mortgage banking

637

 

494

 

831

 

Other

3,489

 

2,693

 

2,268

 

Total Noninterest Income

12,901

 

11,362

 

12,251

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

20,290

 

20,910

 

18,611

 

Data processing and information technology

3,414

 

3,233

 

2,379

 

Net occupancy

2,949

 

3,036

 

2,804

 

Furniture, equipment and software

2,301

 

2,230

 

2,134

 

Other taxes

1,456

 

1,185

 

1,739

 

Marketing

1,310

 

1,141

 

1,190

 

Professional services and legal

1,145

 

1,184

 

888

 

FDIC insurance

695

 

516

 

739

 

Merger related expense

618

 

 

 

Other

6,174

 

5,484

 

5,379

 

Total Noninterest Expense

40,352

 

38,919

 

35,863

 
             

Income Before Taxes

31,171

 

27,150

 

25,446

 

Provision for income taxes

5,070

 

4,222

 

4,010

 
             

Net Income

$26,101

 

$22,928

 

$21,436

 
             

Per Share Data

           

Shares outstanding at end of period

34,330,338

 

34,330,136

 

35,009,945

 

Average shares outstanding - diluted

34,201,448

 

34,542,811

 

35,057,576

 

Diluted earnings per share

$0.76

 

$0.66

 

$0.61

 

Dividends declared per share

$0.27

 

$0.27

 

$0.25

 

Dividend yield (annualized)

2.88%

 

2.73%

 

2.31%

 

Dividends paid to net income

35.41%

 

40.64%

 

40.69%

 

Book value

$28.11

 

$27.47

 

$25.91

 

Tangible book value(1)

$19.68

 

$19.04

 

$17.63

 

Market value

$37.48

 

$39.53

 

$43.24

 
             

Profitability Ratios (annualized)

           

Return on average assets

1.44%

 

1.29%

 

1.22%

 

Return on average shareholders' equity

11.00%

 

9.84%

 

9.52%

 

Return on average tangible shareholders' equity (2)

15.89%

 

14.27%

 

14.14%

 

Efficiency ratio (FTE)(3)

54.03%

 

53.55%

 

50.09%

 

 

 

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

       
         
     

Six Months Ended June 30,

 

(dollars in thousands, except per share data)

   

2019

 

2018

 

INTEREST INCOME

           

Loans, including fees

   

$148,120

 

$129,665

 

Investment securities:

           

Taxable

   

7,437

 

6,948

 

Tax-exempt

   

1,679

 

1,746

 

Dividends

   

978

 

1,251

 

Total Interest Income

   

158,214

 

139,610

 
             

INTEREST EXPENSE

           

Deposits

   

31,036

 

17,012

 

Borrowings and junior subordinated debt securities

   

5,995

 

7,264

 

Total Interest Expense

   

37,031

 

24,276

 
             

NET INTEREST INCOME

   

121,183

 

115,334

 

Provision for loan losses

   

7,854

 

11,817

 

Net Interest Income After Provision for Loan Losses

   

113,329

 

103,517

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

 

 

Debit and credit card

   

6,476

 

6,347

 

Service charges on deposit accounts

   

6,365

 

6,468

 

Wealth management

   

4,109

 

5,298

 

Mortgage banking

   

1,131

 

1,432

 

Gain on sale of a majority interest of insurance business

   

 

1,873

 

Other

   

6,182

 

4,626

 

Total Noninterest Income

   

24,263

 

26,044

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

   

41,199

 

37,426

 

Data processing and information technology

   

6,646

 

4,704

 

Net occupancy

   

5,986

 

5,677

 

Furniture, equipment and software

   

4,531

 

4,090

 

Other taxes

   

2,641

 

3,587

 

Marketing

   

2,452

 

1,892

 

Professional services and legal

   

2,329

 

1,939

 

FDIC insurance

   

1,211

 

1,847

 

Merger related expense

   

618

 

 

Other

   

11,658

 

10,783

 

Total Noninterest Expense

   

79,271

 

71,945

 
             

Income Before Taxes

   

58,321

 

57,616

 

Provision for income taxes

   

9,292

 

10,017

 
             

Net Income

   

$49,029

 

$47,599

 
             

Per Share Data:

           

Average shares outstanding - diluted

   

34,369,756

 

35,043,041

 

Diluted earnings per share

   

$1.43

 

$1.36

 

Dividends declared per share

   

$0.54

 

$0.47

 

Dividends paid to net income

   

37.85%

 

34.44%

 
             

Profitability Ratios (annualized)

           

Return on average assets

   

1.37%

 

1.37%

 

Return on average shareholders' equity

   

10.43%

 

10.71%

 

Return on average tangible shareholders' equity (6)

   

15.09%

 

15.95%

 

Efficiency ratio (FTE) (7)

   

53.79%

 

50.22%

 

 

 

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

 
   
 

2019

 

2019

 

2018

 
 

Second

 

First

 

Second

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$122,876

 

$116,820

 

$137,933

 

Securities, at fair value

668,588

 

680,420

 

688,341

 

Loans held for sale

8,135

 

2,706

 

3,801

 

Commercial loans:

           

Commercial real estate

2,906,895

 

2,901,625

 

2,788,641

 

Commercial and industrial

1,559,727

 

1,513,007

 

1,455,578

 

Commercial construction

267,203

 

245,658

 

299,787

 

Total Commercial Loans

4,733,825

 

4,660,290

 

4,544,006

 

Consumer loans:

           

Residential mortgage

751,355

 

729,914

 

698,440

 

Home equity

464,195

 

463,566

 

471,622

 

Installment and other consumer

72,041

 

70,960

 

66,638

 

Consumer construction

11,784

 

10,722

 

5,412

 

Total Consumer Loans

1,299,375

 

1,275,162

 

1,242,112

 

Total Portfolio Loans

6,033,200

 

5,935,452

 

5,786,118

 

Allowance for loan losses

(61,479)

 

(61,409)

 

(60,517)

 

Total Portfolio Loans, Net

5,971,721

 

5,874,043

 

5,725,601

 

Federal Home Loan Bank and other restricted stock, at cost

22,491

 

19,959

 

35,782

 

Goodwill

287,446

 

287,446

 

287,446

 

Other assets

253,348

 

247,868

 

218,442

 

Total Assets

$7,334,605

 

$7,229,262

 

$7,097,346

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,462,386

 

$1,423,436

 

$1,410,211

 

Interest-bearing demand

549,663

 

541,053

 

553,729

 

Money market

1,742,334

 

1,700,964

 

1,267,623

 

Savings

754,062

 

767,175

 

845,526

 

Certificates of deposit

1,348,255

 

1,400,773

 

1,316,444

 

Total Deposits

5,856,700

 

5,833,401

 

5,393,533

 
             

Borrowings:

           

Securities sold under repurchase agreements

14,154

 

23,427

 

44,724

 

Short-term borrowings

295,000

 

235,000

 

600,000

 

Long-term borrowings

69,791

 

70,418

 

46,062

 

Junior subordinated debt securities

45,619

 

45,619

 

45,619

 

Total Borrowings

424,564

 

374,464

 

736,405

 

Other liabilities

88,388

 

78,241

 

60,275

 

Total Liabilities

6,369,652

 

6,286,106

 

6,190,213

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

964,953

 

943,156

 

907,133

 

Total Liabilities and Shareholders' Equity

$7,334,605

 

$7,229,262

 

$7,097,346

 
             

Capitalization Ratios

           

Shareholders' equity / assets

13.16%

 

13.05%

 

12.78%

 

Tangible common equity / tangible assets(4)

9.59%

 

9.42%

 

9.07%

 

Tier 1 leverage ratio

10.12%

 

9.96%

 

9.87%

 

Common equity tier 1 capital

11.35%

 

11.35%

 

11.18%

 

Risk-based capital - tier 1

11.68%

 

11.69%

 

11.53%

 

Risk-based capital - total

13.15%

 

13.19%

 

13.04%

 

 

 

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

   
     
 

2019

 

2019

 

2018

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Net Interest Margin (FTE) (QTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

$49,949

2.19%

$53,588

2.63%

$55,015

1.60%

 

Securities, at fair value

673,117

2.66%

680,517

2.68%

685,132

2.60%

 

Loans held for sale

1,452

4.44%

894

4.07%

1,528

7.43%

 

Commercial real estate

2,895,146

5.01%

2,905,272

5.02%

2,774,882

4.71%

 

Commercial and industrial

1,559,222

5.17%

1,508,658

5.20%

1,431,861

4.66%

 

Commercial construction

242,192

5.37%

249,997

5.37%

324,934

4.76%

 

Total Commercial Loans

4,696,560

5.08%

4,663,927

5.10%

4,531,677

4.70%

 

Residential mortgage

734,372

4.50%

722,554

4.38%

691,634

4.23%

 

Home equity

463,480

5.42%

467,739

5.44%

472,927

4.81%

 

Installment and other consumer

71,319

7.23%

69,099

7.17%

67,186

6.79%

 

Consumer construction

11,014

5.41%

9,466

6.19%

4,570

4.76%

 

Total Consumer Loans

1,280,185

4.99%

1,268,858

4.93%

1,236,317

4.60%

 

Total Portfolio Loans

5,976,745

5.06%

5,932,785

5.06%

5,767,994

4.68%

 

Total Loans

5,978,197

5.06%

5,933,679

5.06%

5,769,522

4.68%

 

Federal Home Loan Bank and other restricted stock

21,141

6.97%

24,471

8.49%

34,130

6.30%

 

Total Interest-earning Assets

6,722,404

4.81%

6,692,255

4.81%

6,543,799

4.44%

 

Noninterest-earning assets

523,636

 

518,500

 

491,246

   

Total Assets

$7,246,040

 

$7,210,755

 

$7,035,045

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

$550,200

0.46%

$545,695

0.41%

$571,260

0.31%

 

Money market

1,695,349

1.93%

1,568,417

1.89%

1,251,171

1.29%

 

Savings

760,743

0.26%

770,587

0.25%

851,702

0.20%

 

Certificates of deposit

1,389,968

1.95%

1,434,511

1.88%

1,295,473

1.32%

 

Total interest-bearing Deposits

4,396,260

1.46%

4,319,209

1.41%

3,969,606

0.93%

 

Securities sold under repurchase agreements

16,337

0.69%

23,170

0.52%

48,980

0.41%

 

Short-term borrowings

242,759

2.71%

319,389

2.72%

617,891

2.06%

 

Long-term borrowings

70,049

2.86%

70,196

2.84%

46,317

2.24%

 

Junior subordinated debt securities

45,619

5.03%

45,619

5.21%

45,619

4.61%

 

Total Borrowings

374,764

2.94%

458,374

2.88%

758,807

2.12%

 

Total interest-bearing Liabilities

4,771,024

1.58%

4,777,584

1.55%

4,728,413

1.12%

 

Noninterest-bearing liabilities

1,523,676

 

1,488,057

 

1,403,771

   

Shareholders' equity

951,340

 

945,114

 

902,861

   

Total Liabilities and Shareholders' Equity

$7,246,040

 

$7,210,755

 

$7,035,045

   
               

Net Interest Margin(5)

 

3.68%

 

3.71%

 

3.64%

 
               

 

 

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

         
           
     

Six Months Ended June 30,

   

(dollars in thousands)

   

2019

 

2018

   

Net Interest Margin (FTE) (YTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

   

$51,758

2.42%

$55,509

1.63%

 

Securities, at fair value

   

676,797

2.67%

686,017

2.57%

 

Loans held for sale

   

1,175

4.29%

1,737

6.44%

 

Commercial real estate

   

2,900,181

5.01%

2,733,168

4.64%

 

Commercial and industrial

   

1,534,080

5.18%

1,431,725

4.53%

 

Commercial construction

   

246,073

5.37%

349,893

4.63%

 

Total Commercial Loans

   

4,680,334

5.09%

4,514,786

4.61%

 

Residential mortgage

   

728,495

4.44%

692,961

4.21%

 

Home equity

   

465,598

5.43%

476,967

4.64%

 

Installment and other consumer

   

70,215

7.20%

67,024

6.74%

 

Consumer construction

   

10,244

5.77%

4,192

4.73%

 

Total Consumer Loans

   

1,274,552

4.96%

1,241,145

4.52%

 

Total Portfolio Loans

   

5,954,886

5.06%

5,755,931

4.59%

 

Total Loans

   

5,956,061

5.06%

5,757,668

4.59%

 

Federal Home Loan Bank and other restricted stock

   

22,797

7.79%

32,681

7.13%

 

Total Interest-earning Assets

   

6,707,413

4.81%

6,531,875

4.36%

 

Noninterest-earning assets

   

521,082

 

490,476

   

Total Assets

   

$7,228,495

 

$7,022,351

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

   

$547,960

0.44%

$573,307

0.28%

 

Money market

   

1,632,234

1.91%

1,222,770

1.20%

 

Savings

   

765,638

0.25%

862,947

0.20%

 

Certificates of deposit

   

1,412,117

1.92%

1,325,379

1.23%

 

Total Interest-bearing deposits

   

4,357,949

1.44%

3,984,403

0.86%

 

Securities sold under repurchase agreements

   

19,735

0.59%

48,380

0.40%

 

Short-term borrowings

   

280,862

2.72%

607,013

1.89%

 

Long-term borrowings

   

70,122

2.85%

46,626

2.12%

 

Junior subordinated debt securities

   

45,619

5.12%

45,619

4.38%

 

Total Borrowings

   

416,338

2.90%

747,638

1.96%

 

Total Interest-bearing Liabilities

   

4,774,287

1.56%

4,732,041

1.03%

 

Noninterest-bearing liabilities

   

1,505,964

 

1,393,939

   

Shareholders' equity

   

948,244

 

896,371

   

Total Liabilities and Shareholders' Equity

   

$7,228,495

 

$7,022,351

   
               

Net Interest Margin (8)

     

3.70%

 

3.61%

 

 

 

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

   
     
 

2019

 

2019

 

2018

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Nonperforming Loans (NPL)

             

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

 

Commercial real estate

$28,783

0.99%

$29,109

1.00%

$4,617

0.17%

 

Commercial and industrial

4,130

0.26%

6,810

0.45%

4,853

0.33%

 

Commercial construction

1,226

0.46%

1,226

0.50%

1,870

0.62%

 

Total Nonperforming Commercial Loans

34,139

0.72%

37,145

0.80%

11,340

0.25%

 

Consumer loans:

             

Residential mortgage

6,782

0.90%

6,630

0.91%

6,112

0.88%

 

Home equity

4,081

0.88%

4,146

0.89%

3,871

0.82%

 

Installment and other consumer

25

0.03%

29

0.04%

49

0.07%

 

Total Nonperforming Consumer Loans

10,888

0.83%

10,805

0.85%

10,032

0.81%

 

Total Nonperforming Loans

$45,027

0.75%

$47,950

0.81%

$21,372

0.37%

 
     
     
 

2019

 

2019

 

2018

   
 

Second

 

First

 

Second

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Loan Charge-offs/(Recoveries)

             

Charge-offs

$2,667

 

$6,023

 

$8,632

   

Recoveries

(532)

 

(788)

 

(758)

   

Net Loan Charge-offs/(Recoveries)

$2,135

 

$5,235

 

$7,874

   
               

Net Loan Charge-offs/(Recoveries)

             

Commercial loans:

             

Commercial real estate

$522

 

($121)

 

$52

   

Commercial and industrial

1,344

 

5,059

 

7,030

   

Commercial construction

(2)

 

(1)

 

320

   

Total Commercial Loan Charge-offs/(Recoveries)

1,864

 

4,937

 

7,402

   

Consumer loans:

             

Residential mortgage

(154)

 

115

 

96

   

Home equity

57

 

(19)

 

129

   

Installment and other consumer

368

 

284

 

289

   

Consumer construction

 

(82)

 

(42)

   

Total Consumer Loan Charge-offs

271

 

298

 

472

   

Total Net Loan Charge-offs/(Recoveries)

$2,135

 

$5,235

 

$7,874

   
           
           
     

Six Months Ended June 30,

   

(dollars in thousands)

   

2019

 

2018

   

Loan Charge-offs

             

Charge-offs

   

$8,691

 

$10,076

   

Recoveries

   

(1,320)

 

(2,386)

   

Net Loan Charge-offs

   

7,371

 

$7,690

   
               

Net Loan Charge-offs

             

Commercial loans:

             

Commercial real estate

   

$401

 

$4

   

Commercial and industrial

   

6,403

 

7,741

   

Commercial construction

   

(3)

 

(809)

   

Total Commercial Loan Charge-offs

   

6,801

 

6,936

   

Consumer loans:

             

Residential mortgage

   

(38)

 

149

   

Home equity

   

39

 

6

   

Installment and other consumer

   

651

 

648

   

Consumer construction

   

(82)

 

(49)

   

Total Consumer Loan Charge-offs

   

570

 

754

   

Total Net Loan Charge-offs

   

$7,371

 

$7,690

   

 

 

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

   
       
 

2019

 

2019

 

2018

 
 

Second

 

First

 

Second

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$45,027

 

$47,950

 

$21,372

 

OREO

1,495

 

2,828

 

2,999

 

Nonperforming assets

46,522

 

50,778

 

24,371

 

Troubled debt restructurings (nonaccruing)

9,943

 

7,873

 

7,395

 

Troubled debt restructurings (accruing)

20,690

 

23,002

 

24,454

 

Total troubled debt restructurings

30,633

 

30,875

 

31,849

 

Nonperforming loans / loans

0.75%

 

0.81%

 

0.37%

 

Nonperforming assets / loans plus OREO

0.77%

 

0.85%

 

0.42%

 

Allowance for loan losses / total portfolio loans

1.02%

 

1.03%

 

1.05%

 

Allowance for loan losses / nonperforming loans

137%

 

128%

 

283%

 

Net loan charge-offs (recoveries)

$2,135

 

$5,235

 

$7,874

 

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

0.14%

 

0.36%

 

0.55%

 
         
         
     

Six Months Ended June 30,

 

(dollars in thousands)

   

2019

 

2018

 

Asset Quality Data

           

Net loan charge-offs (recoveries)

   

$7,371

 

$7,690

 

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

   

0.25%

 

0.27%

 

 

 

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

   
       

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

 
     
 

2019

 

2019

 

2018

 
 

Second

 

First

 

Second

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

 Total shareholders' equity

$964,953

 

$943,156

 

$907,133

 

      Less: goodwill and other intangible assets

(289,701)

 

(289,864)

 

(290,355)

 

     Tax effect of other intangible assets

474

 

508

 

611

 

 Tangible common equity (non-GAAP)

$675,726

 

$653,800

 

$617,389

 

 Common shares outstanding

34,330

 

34,330

 

35,010

 

 Tangible book value (non-GAAP)

$19.68

 

$19.04

 

$17.63

 
             

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

           

  Net income (annualized)

$104,689

 

$92,987

 

$85,980

 

       Plus: amortization of intangibles (annualized)

654

 

739

 

869

 

       Tax effect of amortization of intangibles (annualized)

(137)

 

(155)

 

(183)

 

  Net income before amortization of intangibles (annualized)

$105,206

 

$93,571

 

$86,666

 
             

  Average total shareholders' equity

$951,340

 

$945,114

 

$902,861

 

       Less: average goodwill and other intangible assets

(289,784)

 

(289,954)

 

(290,464)

 

       Tax effect of average goodwill and other intangible assets

491

 

527

 

634

 

  Average tangible equity (non-GAAP)

$662,047

 

$655,687

 

$613,031

 

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

15.89%

 

14.27%

 

14.14%

 
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$40,352

 

$38,919

 

$35,863

 
             

Net interest income per consolidated statements of net income

$60,827

 

$60,356

 

$58,403

 

     Less: net (gains) losses on sale of securities

 

 

 

     Plus: taxable equivalent adjustment

958

 

961

 

938

 

Net interest income (FTE) (non-GAAP)

61,785

 

61,317

 

59,341

 

Noninterest income

12,901

 

11,362

 

12,251

 

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

$74,686

 

$72,679

 

$71,592

 

Efficiency ratio (non-GAAP)

54.03%

 

53.55%

 

50.09%

 
             

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

           

 Total shareholders' equity

$964,953

 

$943,156

 

$907,133

 

      Less: goodwill and other intangible assets

(289,701)

 

(289,864)

 

(290,355)

 

      Tax effect of goodwill and other intangible assets

474

 

508

 

611

 

 Tangible common equity (non-GAAP)

$675,726

 

$653,800

 

$617,389

 
             

 Total assets

$7,334,605

 

$7,229,262

 

$7,097,346

 

      Less: goodwill and other intangible assets

(289,701)

 

(289,864)

 

(290,355)

 

      Tax effect of goodwill and other intangible assets

474

 

508

 

611

 

 Tangible assets (non-GAAP)

$7,045,378

 

$6,939,906

 

$6,807,602

 

 Tangible common equity to tangible assets (non-GAAP)

9.59%

 

9.42%

 

9.07%

 
             

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

           

 Interest income

$79,624

 

$78,590

 

$71,581

 

      Less: interest expense

(18,797)

 

(18,234)

 

(13,178)

 

 Net interest income per consolidated statements of net income

60,827

 

60,356

 

58,403

 

      Plus: taxable equivalent adjustment

958

 

961

 

938

 

 Net interest income (FTE) (non-GAAP)

$61,785

 

$61,317

 

$59,341

 

 Net interest income (FTE) (annualized)

$247,819

 

$248,675

 

$238,016

 

 Average earning assets

$6,722,404

 

$6,692,255

 

$6,543,799

 

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

3.68%

 

3.71%

 

3.64%

 

 

 

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

       
         
     

Six Months Ended June 30,

 
     

2019

 

2018

 
             

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

           

  Net income (annualized)

   

$98,870

 

$95,987

 

  Plus: amortization of intangibles (annualized)

   

697

 

952

 

  Tax effect of amortization of intangibles (annualized)

   

(146)

 

(200)

 

  Net income before amortization of intangibles (annualized)

   

$99,421

 

$96,739

 
             

  Average total shareholders' equity

   

$948,244

 

$896,371

 

  Less: average goodwill and other intangible assets

   

(289,869)

 

(290,609)

 

  Tax effect of average goodwill and other intangible assets

   

509

 

659

 

  Average tangible equity (non-GAAP)

   

$658,884

 

$606,421

 

  Return on average tangible equity (non-GAAP)

   

15.09%

 

15.95%

 
             

(7) Efficiency Ratio (non-GAAP)

           

Noninterest expense

   

$79,271

 

$71,945

 
             

Net interest income per consolidated statements of net income

   

$121,183

 

$115,334

 

Less: net (gains) losses on sale of securities

   

 

 

Plus: taxable equivalent adjustment

   

1,919

 

1,878

 

Net interest income (FTE) (non-GAAP)

   

123,102

 

117,212

 

Noninterest income

   

24,263

 

26,044

 

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

   

$147,365

 

$143,256

 

Efficiency ratio (non-GAAP)

   

53.79%

 

50.22%

 
             

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

           

 Interest income

   

$158,214

 

$139,610

 

 Less: interest expense

   

(37,031)

 

(24,276)

 

 Net interest income per consolidated statements of net income

   

121,183

 

115,334

 

 Plus: taxable equivalent adjustment

   

1,919

 

1,878

 

 Net interest income (FTE) (non-GAAP)

   

$123,102

 

$117,212

 

 Net interest income (FTE) (annualized)

   

$248,244

 

$236,367

 

 Average earning assets

   

$6,707,413

 

$6,531,874

 

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

   

3.70%

 

3.61%

 
                 

 

 

 

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SOURCE S&T Bancorp, Inc.

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