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

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Oct 18, 2018

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

INDIANA, Pa., Oct. 18, 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 third quarter 2018 earnings. Third quarter net income was $30.9 million, or $0.88 diluted earnings per share (EPS), compared  to second quarter of 2018 net income of $21.4 million, or $0.61 diluted EPS and third quarter of 2017 net income of $22.7 million, or $0.65 diluted EPS.

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

Third Quarter of 2018 Highlights:

  • Annualized performance metrics were strong with return on average assets of 1.75%, return on average shareholders' equity of 13.41% and return on average tangible shareholders' equity (non-GAAP) of 19.73%.
     
  • EPS was positively impacted by a one-time reduction to tax expense of $2.9 million, or $0.08 per diluted share, during the third quarter of 2018 related to a tax deduction for a pension contribution at a 35% corporate tax rate versus the current rate of 21%.
     
  • Net interest margin (FTE) (non-GAAP) improved 3 basis points to 3.67% and net interest income increased $0.9 million to $59.3 million compared to the second quarter of 2018.
     
  • Net loan charge-offs were only $0.4 million, or 0.03% of average loans on an annualized basis, for the third quarter of 2018.
     
  • S&T's Board of Directors declared a $0.27 per share dividend, which is an increase of 23% compared to a $0.22 dividend in the same period last year.

"We are pleased with our performance in the third quarter," said Todd Brice, president and chief executive officer of S&T. "Overall we had a very strong quarter with an increase in our net interest margin and net interest income and improvement in our asset quality."

Net Interest Income

Net interest income increased $0.9 million to $59.3 million for the third quarter of 2018 compared to $58.4 million for the second quarter of 2018. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 3 basis points to 3.67% from 3.64% from the second quarter of 2018. The increases in short-term interest rates in 2018 continue to positively impact both net interest income and net interest margin. Loan and total interest-bearing liability rates both increased 11 basis points compared to the second quarter of 2018.

Asset Quality

Asset quality improved during the third quarter of 2018 with net loan charge-offs of only $0.4 million, or 0.03% of average loans on an annualized basis, compared to $7.9 million, or 0.55% of average loans on an annualized basis, in the second quarter of 2018. Nonperforming loans decreased $0.6 million to $20.7 million compared to $21.4 million in the second quarter of 2018. The provision for loan losses was $0.5 million compared to $9.3 million in the second quarter of 2018. In the second quarter of 2018, net loan charge-offs were significantly higher, and included a $5.2 million loan charge-off from a participation loan agreement which resulted from fraudulent activities believed to be perpetrated by one or more executives employed by the borrower. The allowance for loan losses to total portfolio loans was 1.04% at September 30, 2018 compared to 1.05% at June 30, 2018.

Noninterest Income and Expense

Noninterest income decreased $0.3 million to $12.0 million for the third quarter of 2018 compared to $12.3 million for the second quarter of 2018. Higher service charges on deposit account fees of $0.3 million were offset by small declines in various other fee categories. The decrease in insurance fees from the third quarter of 2017 of $1.2 million related to the sale of a majority interest of our insurance business during the first quarter of 2018.

Noninterest expenses were $37.1 million compared to $35.9 million for the second quarter of 2018. The increase of $1.2 million in salaries and employee benefits mainly related to higher incentives and medical expense compared to the second quarter of 2018. Data processing and information technology (IT) increased $0.5 million due to a recent outsourcing arrangement for certain components of the IT function.

Financial Condition

Total assets were essentially unchanged at $7.1 billion at September 30, 2018 and June 30, 2018. Total portfolio loans increased $21.7 million compared to June 30, 2018 with growth in the commercial real estate portfolio. Total deposits increased $74.0 million, or 5.4% annualized, to $5.5 billion at September 30, 2018 compared to $5.4 billion at June 30, 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 $0.27 per share cash dividend at its regular meeting held October 15, 2018. This dividend is a 23% increase compared to a $0.22 dividend in the same period last year. The dividend is payable November 15, 2018 to shareholders of record on November 1, 2018.

Conference Call

S&T will host its third quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 18, 2018. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "3rd 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 October 25, 2018, by dialing 1.877.481.4010; the Conference ID # is 37697

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

 
 

Third

 

Second

 

Third

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST INCOME

           

Loans, including fees

$68,631

 

$66,610

 

$62,450

 

Investment securities:

           

Taxable

3,649

 

3,519

 

2,988

 

Tax-exempt

857

 

872

 

896

 

Dividends

490

 

580

 

389

 

Total Interest Income

73,627

 

71,581

 

66,723

 
             

INTEREST EXPENSE

           

Deposits

10,871

 

9,166

 

6,748

 

Borrowings and junior subordinated debt securities

3,494

 

4,012

 

2,519

 

Total Interest Expense

14,365

 

13,178

 

9,267

 
             

NET INTEREST INCOME

59,262

 

58,403

 

57,456

 

Provision for loan losses

462

 

9,345

 

2,850

 

Net Interest Income After Provision for Loan Losses

58,800

 

49,058

 

54,606

 
             

NONINTEREST INCOME

           

Service charges on deposit accounts

3,351

 

3,227

 

3,207

 

Debit and credit card

3,141

 

3,309

 

3,067

 

Wealth management

2,483

 

2,616

 

2,406

 

Mortgage banking

700

 

831

 

872

 

Insurance

101

 

134

 

1,318

 

Other

2,266

 

2,134

 

2,681

 

Total Noninterest Income

12,042

 

12,251

 

13,551

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

19,769

 

18,611

 

20,325

 

Data processing and information technology

2,906

 

2,379

 

2,284

 

Net occupancy

2,722

 

2,804

 

2,692

 

Furniture, equipment and software

2,005

 

2,134

 

1,890

 

Other taxes

1,341

 

1,739

 

1,208

 

Professional services and legal

1,181

 

888

 

869

 

Marketing

1,023

 

1,190

 

766

 

FDIC insurance

746

 

739

 

1,152

 

Other

5,392

 

5,379

 

5,367

 

Total Noninterest Expense

37,085

 

35,863

 

36,553

 
             

Income Before Taxes

33,757

 

25,446

 

31,604

 

Provision for income taxes

2,876

 

4,010

 

8,883

 
             

Net Income

$30,881

 

$21,436

 

$22,721

 
             

Per Share Data

           

Shares outstanding at end of period

35,006,587

 

35,009,945

 

34,979,192

 

Average shares outstanding - diluted

35,019,292

 

35,057,576

 

34,960,139

 

Diluted earnings per share

$0.88

 

$0.61

 

$0.65

 

Dividends declared per share

$0.25

 

$0.25

 

$0.20

 

Dividend yield (annualized)

2.31%

 

2.31%

 

2.02%

 

Dividends paid to net income

28.25%

 

40.69%

 

30.69%

 

Book value

$26.27

 

$25.91

 

$25.37

 

Tangible book value(1)

$18.00

 

$17.63

 

$16.96

 

Market value

$43.36

 

$43.24

 

$39.58

 
             

Profitability Ratios (annualized)

           

Return on average assets

1.75%

 

1.22%

 

1.27%

 

Return on average shareholders' equity

13.41%

 

9.52%

 

10.23%

 

Return on average tangible shareholders' equity (2)

19.73%

 

14.14%

 

15.47%

 

Efficiency ratio (FTE)(3)

51.33%

 

50.09%

 

50.16%

 

 

 

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

 
   
     

Nine Months Ended September 30,

 

(dollars in thousands, except per share data)

   

2018

 

2017

 

INTEREST INCOME

           

Loans, including fees

   

$198,296

 

$179,908

 

Investment securities:

           

Taxable

   

10,597

 

8,783

 

Tax-exempt

   

2,603

 

2,744

 

Dividends

   

1,741

 

1,352

 

Total Interest Income

   

213,237

 

192,787

 
             

INTEREST EXPENSE

           

Deposits

   

27,883

 

18,103

 

Borrowings and junior subordinated debt securities

   

10,758

 

6,779

 

Total Interest Expense

   

38,641

 

24,882

 
             

NET INTEREST INCOME

   

174,596

 

167,905

 

Provision for loan losses

   

12,279

 

12,901

 

Net Interest Income After Provision for Loan Losses

   

162,317

 

155,004

 
             

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

 

3,987

 

Service charges on deposit accounts

   

9,765

 

9,218

 

Debit and credit card

   

9,487

 

8,952

 

Wealth management

   

7,782

 

7,237

 

Mortgage banking

   

2,133

 

2,280

 

Insurance

   

404

 

4,232

 

Gain on sale of a majority interest of insurance business

   

1,873

 

 

Other

   

6,642

 

6,906

 

Total Noninterest Income

   

38,086

 

42,812

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

   

57,195

 

60,770

 

Data processing and information technology

   

7,610

 

6,670

 

Net occupancy

   

8,399

 

8,258

 

Furniture, equipment and software

   

6,096

 

5,746

 

Other taxes

   

4,928

 

3,268

 

Professional services and legal

   

3,120

 

2,868

 

Marketing

   

2,916

 

2,468

 

FDIC insurance

   

2,592

 

3,461

 

Other

   

16,174

 

16,451

 

Total Noninterest Expense

   

109,030

 

109,960

 
             

Income Before Taxes

   

91,373

 

87,856

 

Provision for income taxes

   

12,893

 

24,182

 
             

Net Income

   

$78,480

 

$63,674

 
             

Per Share Data:

           

Average shares outstanding - diluted

   

35,012,084

 

34,930,509

 

Diluted earnings per share

   

$2.24

 

$1.82

 

Dividends declared per share

   

$0.72

 

$0.60

 

Dividends paid to net income

   

32.00%

 

32.82%

 
             

Profitability Ratios (annualized)

           

Return on average assets

   

1.50%

 

1.21%

 

Return on average shareholders' equity

   

11.63%

 

9.83%

 

Return on average tangible shareholders' equity (6)

   

17.25%

 

15.05%

 

Efficiency ratio (FTE) (7)

   

50.59%

 

51.78%

 
                 

 

 

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

 
   
 

2018

 

2018

 

2017

 
 

Third

 

Second

 

Third

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$132,650

 

$137,933

 

$114,440

 

Securities, at fair value

682,535

 

688,341

 

697,954

 

Loans held for sale

4,207

 

3,801

 

47,936

 

Commercial loans:

           

Commercial real estate

2,826,372

 

2,788,641

 

2,681,693

 

Commercial and industrial

1,451,371

 

1,455,578

 

1,446,811

 

Commercial construction

283,783

 

299,787

 

432,887

 

Total Commercial Loans

4,561,526

 

4,544,006

 

4,561,391

 

Consumer loans:

           

Residential mortgage

699,867

 

698,440

 

697,367

 

Home equity

472,451

 

471,622

 

487,806

 

Installment and other consumer

67,542

 

66,638

 

69,644

 

Consumer construction

6,421

 

5,412

 

4,550

 

Total Consumer Loans

1,246,281

 

1,242,112

 

1,259,367

 

Total Portfolio Loans

5,807,807

 

5,786,118

 

5,820,758

 

Allowance for loan losses

(60,556)

 

(60,517)

 

(56,712)

 

Total Portfolio Loans, Net

5,747,251

 

5,725,601

 

5,764,046

 

Federal Home Loan Bank and other restricted stock, at cost

31,178

 

35,782

 

33,120

 

Goodwill

287,446

 

287,446

 

291,670

 

Other assets

220,096

 

218,442

 

221,013

 

Total Assets

$7,105,363

 

$7,097,346

 

$7,170,179

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,412,127

 

$1,410,211

 

$1,348,939

 

Interest-bearing demand

561,191

 

553,729

 

646,195

 

Money market

1,367,181

 

1,267,623

 

1,036,726

 

Savings

817,545

 

845,526

 

940,989

 

Certificates of deposit

1,309,465

 

1,316,444

 

1,431,431

 

Deposits held for sale

 

 

38,960

 

Total Deposits

5,467,509

 

5,393,533

 

5,443,240

 
             

Borrowings:

           

Securities sold under repurchase agreements

45,200

 

44,724

 

39,923

 

Short-term borrowings

535,000

 

600,000

 

685,000

 

Long-term borrowings

45,434

 

46,062

 

12,911

 

Junior subordinated debt securities

45,619

 

45,619

 

45,619

 

Total Borrowings

671,253

 

736,405

 

783,453

 

Other liabilities

46,820

 

60,275

 

55,910

 

Total Liabilities

6,185,582

 

6,190,213

 

6,282,603

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

919,781

 

907,133

 

887,576

 

Total Liabilities and Shareholders' Equity

$7,105,363

 

$7,097,346

 

$7,170,179

 
             

Capitalization Ratios

           

Shareholders' equity / assets

12.94%

 

12.78%

 

12.38%

 

Tangible common equity / tangible assets(4)

9.25%

 

9.07%

 

8.63%

 

Tier 1 leverage ratio

10.13%

 

9.87%

 

9.25%

 

Common equity tier 1 capital

11.42%

 

11.18%

 

10.70%

 

Risk-based capital - tier 1

11.76%

 

11.53%

 

11.05%

 

Risk-based capital - total

13.27%

 

13.04%

 

12.54%

 
                 

 

 

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

   
     
 

2018

 

2018

 

2017

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Net Interest Margin (FTE) (QTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

$57,012

2.13%

$55,015

1.60%

$53,794

1.25%

 

Securities, at fair value

680,464

2.63%

685,132

2.60%

690,986

2.46%

 

Loans held for sale

1,571

4.71%

1,528

7.43%

15,789

3.88%

 

Commercial real estate

2,779,019

4.81%

2,774,882

4.71%

2,678,835

4.38%

 

Commercial and industrial

1,432,936

4.79%

1,431,861

4.66%

1,404,047

4.45%

 

Commercial construction

291,512

5.08%

324,934

4.76%

425,228

4.27%

 

Total Commercial Loans

4,503,467

4.82%

4,531,677

4.70%

4,508,110

4.39%

 

Residential mortgage

696,267

4.30%

691,634

4.23%

702,702

4.10%

 

Home equity

472,466

4.94%

472,927

4.81%

485,501

4.37%

 

Installment and other consumer

66,693

6.92%

67,186

6.79%

70,118

6.57%

 

Consumer construction

5,846

5.04%

4,570

4.76%

4,486

4.49%

 

Total Consumer Loans

1,241,272

4.69%

1,236,317

4.60%

1,262,807

4.34%

 

Total Portfolio Loans

5,744,739

4.79%

5,767,994

4.68%

5,770,917

4.38%

 

Total Loans

5,746,310

4.79%

5,769,522

4.68%

5,786,706

4.38%

 

Federal Home Loan Bank and other restricted stock

28,512

6.28%

34,130

6.30%

30,184

4.61%

 

Total Interest-earning Assets

6,512,298

4.55%

6,543,799

4.44%

6,561,670

4.15%

 

Noninterest-earning assets

496,268

 

491,246

 

510,681

   

Total Assets

$7,008,566

 

$7,035,045

 

$7,072,351

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

$566,579

0.36%

$571,260

0.31%

$647,442

0.25%

 

Money market

1,330,489

1.47%

1,251,171

1.29%

999,892

0.87%

 

Savings

823,215

0.20%

851,702

0.20%

979,767

0.21%

 

Certificates of deposit

1,310,526

1.51%

1,295,473

1.32%

1,457,649

0.98%

 

Total interest-bearing Deposits

4,030,809

1.07%

3,969,606

0.93%

4,084,750

0.66%

 

Securities sold under repurchase agreements

42,183

0.52%

48,980

0.41%

45,158

0.16%

 

Short-term borrowings

455,689

2.28%

617,891

2.06%

600,893

1.30%

 

Long-term borrowings

45,699

2.36%

46,317

2.24%

13,162

3.01%

 

Junior subordinated debt securities

45,619

4.79%

45,619

4.61%

45,619

3.71%

 

Total Borrowings

589,190

2.35%

758,807

2.12%

704,832

1.42%

 

Total interest-bearing Liabilities

4,619,999

1.23%

4,728,413

1.12%

4,789,582

0.77%

 

Noninterest-bearing liabilities

1,475,059

 

1,403,771

 

1,401,755

   

Shareholders' equity

913,508

 

902,861

 

881,014

   

Total Liabilities and Shareholders' Equity

$7,008,566

 

$7,035,045

 

$7,072,351

   
               

Net Interest Margin(5)

 

3.67%

 

3.64%

 

3.59%

 

 

 

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

 
   
     

Nine Months Ended September 30,

   

(dollars in thousands)

   

2018

 

2017

   

Net Interest Margin (FTE) (YTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

   

$56,015

1.80%

$56,126

0.99%

 

Securities, at fair value

   

684,146

2.59%

699,150

2.46%

 

Loans held for sale

   

1,681

5.90%

7,734

3.63%

 

Commercial real estate

   

2,748,620

4.70%

2,623,360

4.31%

 

Commercial and industrial

   

1,432,133

4.62%

1,415,941

4.30%

 

Commercial construction

   

330,219

4.76%

433,748

4.02%

 

Total Commercial Loans

   

4,510,972

4.68%

4,473,049

4.28%

 

Residential mortgage

   

694,075

4.24%

700,996

4.10%

 

Home equity

   

475,450

4.74%

482,336

4.30%

 

Installment and other consumer

   

66,913

6.80%

69,401

6.51%

 

Consumer construction

   

4,749

4.86%

4,807

4.33%

 

Total Consumer Loans

   

1,241,187

4.57%

1,257,540

4.31%

 

Total Portfolio Loans

   

5,752,159

4.66%

5,730,589

4.29%

 

Total Loans

   

5,753,840

4.66%

5,738,323

4.29%

 

Federal Home Loan Bank and other restricted stock

   

31,277

6.88%

31,977

4.63%

 

Total Interest-earning Assets

   

6,525,278

4.43%

6,525,576

4.06%

 

Noninterest-earning assets

   

492,428

 

509,750

   

Total Assets

   

$7,017,706

 

$7,035,326

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

   

$571,040

0.31%

$643,423

0.21%

 

Money market

   

1,259,071

1.29%

958,619

0.74%

 

Savings

   

849,558

0.20%

1,013,318

0.21%

 

Certificates of deposit

   

1,320,374

1.32%

1,439,715

0.94%

 

Total Interest-bearing deposits

   

4,000,043

0.93%

4,055,075

0.60%

 

Securities sold under repurchase agreements

   

46,292

0.44%

48,031

0.07%

 

Short-term borrowings

   

556,017

2.00%

651,494

1.07%

 

Long-term borrowings

   

46,313

2.20%

13,759

2.96%

 

Junior subordinated debt securities

   

45,619

4.52%

45,619

3.59%

 

Total Borrowings

   

694,241

2.07%

758,903

1.19%

 

Total Interest-bearing Liabilities

   

4,694,284

1.10%

4,813,978

0.69%

 

Noninterest-bearing liabilities

   

1,421,276

 

1,355,636

   

Shareholders' equity

   

902,146

 

865,712

   

Total Liabilities and Shareholders' Equity

   

$7,017,706

 

$7,035,326

   
               

Net Interest Margin (8)

     

3.63%

 

3.55%

 

 

 

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

 
   
 

2018

 

2018

 

2017

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Nonperforming Loans (NPL)

             

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

 

Commercial real estate

$4,595

0.16%

$4,617

0.17%

$6,571

0.25%

 

Commercial and industrial

4,367

0.30%

4,853

0.33%

7,349

0.51%

 

Commercial construction

1,228

0.43%

1,870

0.62%

4,068

0.94%

 

Total Nonperforming Commercial Loans

10,190

0.22%

11,340

0.25%

17,988

0.39%

 

Consumer loans:

             

Residential mortgage

6,721

0.96%

6,112

0.88%

7,782

1.11%

 

Home equity

3,783

0.80%

3,871

0.82%

3,675

0.75%

 

Installment and other consumer

45

0.07%

49

0.07%

48

0.07%

 

Total Nonperforming Consumer Loans

10,549

0.85%

10,032

0.81%

11,505

0.91%

 

Total Nonperforming Loans

$20,739

0.36%

$21,372

0.37%

$29,493

0.50%

 
   
   
 

2018

 

2018

 

2017

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Loan Charge-offs

             

Charge-offs

$1,234

 

$8,632

 

$2,660

   

Recoveries

(811)

 

(758)

 

(1,171)

   

Net Loan Charge-offs

$423

 

$7,874

 

$1,489

   
               

Net Loan Charge-offs

             

Commercial loans:

             

Commercial real estate

$77

 

$52

 

($145)

   

Commercial and industrial

(298)

 

7,030

 

401

   

Commercial construction

(29)

 

320

 

980

   

Total Commercial Loan Charge-offs

(250)

 

7,402

 

1,236

   

Consumer loans:

             

Residential mortgage

54

 

96

 

44

   

Home equity

402

 

129

 

10

   

Installment and other consumer

256

 

289

 

243

   

Consumer construction

(39)

 

(42)

 

(44)

   

Total Consumer Loan Charge-offs

673

 

472

 

253

   

Total Net Loan Charge-offs

$423

 

$7,874

 

$1,489

   
   
   
     

Nine Months Ended September 30,

   

(dollars in thousands)

   

2018

 

2017

   

Loan Charge-offs

             

Charge-offs

   

$11,311

 

$11,423

   

Recoveries

   

(3,198)

 

(2,459)

   

Net Loan Charge-offs

   

$8,113

 

$8,964

   
               

Net Loan Charge-offs

             

Commercial loans:

             

Commercial real estate

   

$80

 

1,685

   

Commercial and industrial

   

7,443

 

3,542

   

Commercial construction

   

(838)

 

1,255

   

Total Commercial Loan Charge-offs

   

6,685

 

6,482

   

Consumer loans:

             

Residential mortgage

   

203

 

1,220

   

Home equity

   

408

 

546

   

Installment and other consumer

   

905

 

795

   

Consumer construction

   

(88)

 

(79)

   

Total Consumer Loan Charge-offs

   

1,428

 

2,482

   

Total Net Loan Charge-offs

   

$8,113

 

$8,964

   

 

 

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

 
   
 

2018

 

2018

 

2017

 
 

Third

 

Second

 

Third

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$20,739

 

$21,372

 

$29,493

 

OREO

3,068

 

2,999

 

1,033

 

Nonperforming assets

23,807

 

24,371

 

30,526

 

Troubled debt restructurings (nonaccruing)

7,143

 

7,395

 

10,203

 

Troubled debt restructurings (accruing)

22,226

 

24,454

 

15,605

 

Total troubled debt restructurings

29,369

 

31,849

 

25,808

 

Nonperforming loans / loans

0.36%

 

0.37%

 

0.50%

 

Nonperforming assets / loans plus OREO

0.41%

 

0.42%

 

0.52%

 

Allowance for loan losses / total portfolio loans

1.04%

 

1.05%

 

0.97%

 

Allowance for loan losses / nonperforming loans

292%

 

283%

 

192%

 

Net loan charge-offs (recoveries)

$423

 

$7,874

 

$1,489

 

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

0.03%

 

0.55%

 

0.10%

 
   
   
     

Nine Months Ended September 30,

 

(dollars in thousands)

   

2018

 

2017

 

Asset Quality Data

           

Net loan charge-offs (recoveries)

   

$8,113

 

$8,964

 

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

   

0.19%

 

0.21%

 

 

 

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

 
   

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

 
   
 

2018

 

2018

 

2017

 
 

Third

 

Second

 

Third

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

           

   Total shareholders' equity

$919,781

 

$907,133

 

$887,576

 

     Less: goodwill and other intangible assets

(290,171)

 

(290,355)

 

(295,627)

 

     Tax effect of other intangible assets

572

 

611

 

1,385

 

   Tangible common equity (non-GAAP)

$630,182

 

$617,389

 

$593,334

 

   Common shares outstanding

35,007

 

35,010

 

34,979

 

   Tangible book value (non-GAAP)

$18.00

 

$17.63

 

$16.96

 
             

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

           

   Net income (annualized)

$122,516

 

$85,980

 

$90,144

 

       Plus: amortization of intangibles (annualized)

731

 

869

 

930

 

       Tax effect of amortization of intangibles (annualized)

(154)

 

(183)

 

(326)

 

   Net income before amortization of intangibles (annualized)

$123,093

 

$86,666

 

$90,748

 
             

   Average total shareholders' equity

$913,508

 

$902,861

 

$881,014

 

       Less: average goodwill and other intangible assets

(290,264)

 

(290,464)

 

(295,775)

 

       Tax effect of average goodwill and other intangible assets

592

 

634

 

1,437

 

   Average tangible equity (non-GAAP)

$623,836

 

$613,031

 

$586,676

 

   Return on average tangible equity (non-GAAP)

19.73%

 

14.14%

 

15.47%

 
             

(3) Efficiency Ratio (non-GAAP)

           

   Noninterest expense

$37,085

 

$35,863

 

$36,553

 
             

   Net interest income per consolidated statements of net income

$59,262

 

$58,403

 

$57,456

 

     Less: net (gains) losses on sale of securities

 

 

 

     Plus: taxable equivalent adjustment

951

 

938

 

1,867

 

   Net interest income (FTE) (non-GAAP)

60,213

 

59,341

 

59,323

 

   Noninterest income

12,042

 

12,251

 

13,551

 

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

$72,255

 

$71,592

 

$72,874

 

   Efficiency ratio (non-GAAP)

51.33%

 

50.09%

 

50.16%

 
             

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

           

   Total shareholders' equity

$919,781

 

$907,133

 

$887,576

 

      Less: goodwill and other intangible assets

(290,171)

 

(290,355)

 

(295,627)

 

      Tax effect of goodwill and other intangible assets

572

 

611

 

1,385

 

   Tangible common equity (non-GAAP)

$630,182

 

$617,389

 

$593,334

 
             

   Total assets

$7,105,363

 

$7,097,346

 

$7,170,179

 

      Less: goodwill and other intangible assets

(290,171)

 

(290,355)

 

(295,627)

 

      Tax effect of goodwill and other intangible assets

572

 

611

 

1,385

 

   Tangible assets (non-GAAP)

$6,815,764

 

$6,807,602

 

$6,875,937

 

   Tangible common equity to tangible assets (non-GAAP)

9.25%

 

9.07%

 

8.63%

 
             

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

           

   Interest income

$73,627

 

$71,581

 

$66,723

 

      Less: interest expense

(14,365)

 

(13,178)

 

(9,267)

 

   Net interest income per consolidated statements of net income

59,262

 

58,403

 

57,456

 

      Plus: taxable equivalent adjustment

951

 

938

 

1,867

 

   Net interest income (FTE) (non-GAAP)

60,213

 

59,341

 

59,323

 

   Net interest income (FTE) (annualized)

238,889

 

238,016

 

235,358

 

   Average earning assets

$6,512,298

 

$6,543,799

 

$6,561,670

 

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

3.67%

 

3.64%

 

3.59%

 

 

 

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

 
   
     

Nine months ended September 30,

 
     

2018

 

2017

 
             

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

           

   Net income (annualized)

   

$104,927

 

$85,131

 

    Plus: amortization of intangibles (annualized)

   

878

 

1,275

 

    Tax effect of amortization of intangibles (annualized)

   

(184)

 

(446)

 

   Net income before amortization of intangibles (annualized)

   

$105,621

 

$85,960

 
             

   Average total shareholders' equity

   

$902,146

 

$865,712

 

    Less: average goodwill and other intangible assets

   

(290,493)

 

(296,086)

 

    Tax effect of average goodwill and other intangible assets

   

636

 

1,546

 

   Average tangible equity (non-GAAP)

   

$612,290

 

$571,172

 

   Return on average tangible equity (non-GAAP)

   

17.25%

 

15.05%

 
             

(7) Efficiency Ratio (non-GAAP)

           

   Noninterest expense

   

$109,030

 

$109,960

 
             

   Net interest income per consolidated statements of net income

   

$174,596

 

$167,905

 

    Less: net (gains) losses on sale of securities

   

 

(3,987)

 

    Plus: taxable equivalent adjustment

   

2,830

 

5,614

 

   Net interest income (FTE) (non-GAAP)

   

177,426

 

169,532

 

   Noninterest income

   

38,086

 

42,812

 

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

   

$215,512

 

$212,344

 

   Efficiency ratio (non-GAAP)

   

50.59%

 

51.78%

 
             

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

           

   Interest income

   

$213,237

 

$192,787

 

   Less: interest expense

   

(38,641)

 

(24,882)

 

   Net interest income per consolidated statements of net income

   

174,596

 

167,905

 

   Plus: taxable equivalent adjustment

   

2,830

 

5,614

 

   Net interest income (FTE) (non-GAAP)

   

177,426

 

173,519

 

   Net interest income (FTE) (annualized)

   

237,218

 

231,994

 

   Average earning assets

   

$6,525,278

 

$6,525,576

 

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

   

3.63%

 

3.55%

 

 

 

 

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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