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Oct 24, 2019

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

INDIANA, Pa., Oct. 24, 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 third quarter 2019 earnings. Third quarter net income was $26.9 million, or $0.79 diluted earnings per share (EPS), compared to second quarter of 2019 net income of $26.1 million, or $0.76 diluted EPS, and third quarter of 2018 net income of $30.9 million, or $0.88 diluted EPS. The third quarter of 2018 results were positively impacted by a one-time reduction to tax expense of $2.9 million, or $0.08 diluted EPS, related to a tax deduction for a pension contribution at a 35% corporate tax rate versus the current rate of 21%.

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

Third Quarter of 2019 Highlights:

  • Return on average assets (ROA) was 1.45%, return on average equity (ROE) was 10.97% and return on average tangible equity (ROTE) (non-GAAP) was 15.69%.
  • Portfolio loans increased $162.6 million, or 10.7% annualized, compared to the second quarter of 2019.
  • Deposits increased $126.0 million, or 8.6% annualized, compared to the second quarter of 2019.
  • DNB Financial Corporation (DNB) shareholders' approval and all bank regulatory approvals have been obtained for the pending merger with DNB.
  • S&T's Board of Directors declared a $0.28 per share dividend. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year.

"We are pleased to report solid loan and deposit growth across all five of our markets during the third quarter," said Todd Brice, chief executive officer of S&T. "The growth during the quarter is a result of the successful execution of our new market-based strategy announced earlier this year. This strategy reflects a tailored approach to each individual market that allows us to maintain our core value of relationship banking as our geographic footprint expands."

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

On September 25, 2019, DNB held a Special Meeting of Shareholders where the Agreement and Plan of Merger, dated June 5, 2019, by and between S&T and DNB, was approved. All required bank regulatory approvals have been received for the merger. The transaction is expected to be completed on or about November 30, 2019 and remains subject to the satisfaction or waiver of other customary closing conditions. Merger related expense was $0.6 million, or $0.01 diluted EPS, for the third quarter of 2019 and $1.2 million, or $0.03 diluted EPS, for the year-to-date period.

"The S&T team is excited to partner with DNB as we move closer to the expected completion of merger in the fourth quarter," said Todd Brice, chief executive officer of S&T. "Through our preparation for the merger, it has become very clear that both institutions share not only a like business model, but a similar people centric culture that is focused on satisfying the needs of our customers. We believe these shared values will result in a seamless execution of the closing and allow us to maximize the synergies realized through the merger."

Net Interest Income

Net interest income increased $0.4 million to $61.2 million for the third quarter of 2019 compared to $60.8 million for the second quarter of 2019. The increase was primarily due to growth in average loan balances of $102.7 million and one additional day in the third quarter compared to the second quarter. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) decreased 6 basis points to 3.62% for the third quarter of 2019 from 3.68% in the second quarter of 2019 primarily due to decreases in short-term rates. Loan rates decreased 11 basis points to 4.95% and total interest-bearing liability costs decreased 4 basis points to 1.54%.

Asset Quality

Total nonperforming loans increased $5.0 million to $50.0 million, or 0.81% of total loans, at September 30, 2019 compared to $45.0 million, or 0.75% at June 30, 2019. Net loan charge-offs were $4.3 million for the third quarter of 2019 compared to $2.1 million in the second quarter of 2019. The provision for loan losses was $4.9 million compared to $2.2 million in the second quarter of 2019 mainly due to higher charge-offs. The allowance for loan losses to total portfolio loans was 1.00% at September 30, 2019 compared to 1.02% at June 30, 2019.

Noninterest Income and Expense

Noninterest income increased $0.2 million to $13.1 million for the third quarter of 2019 compared to $12.9 million for the second quarter of 2019. Included in other income was commercial loan swap fees of $1.5 million related to higher demand for this product in the current rate environment.

Noninterest expense decreased $2.7 million to $37.7 million for the third quarter of 2019 compared to $40.4 million in the second quarter of 2019. FDIC insurance expense decreased $1.4 million compared to the second quarter of 2019 related to Small Bank Assessment Credits that were received by all banking institutions with assets of less than $10 billion. Other expense decreased $0.6 million primarily related to higher loan related items in the second quarter of 2019. The third quarter of 2019 included merger related expenses of $0.6 million, or $0.01 diluted EPS.

Financial Condition

Total assets were $7.6 billion at September 30, 2019 compared to $7.3 billion at June 30, 2019. Loan growth was strong across all five markets during the quarter with an increase of $162.6 million, or 10.7% annualized, compared to the second quarter of 2019. Commercial loans grew $130.0 million during the quarter, or 10.9% annualized, with growth in all commercial portfolios. Consumer loans grew $32.5 million, or 9.9% annualized, driven by growth in the residential mortgage and home equity portfolios. Deposits were $6.0 billion at September 30, 2019 compared to $5.9 billion at June 30, 2019. Strong customer deposit growth in all of our markets during the third quarter lead to a reduction in brokered deposits of $52 million.

The Board of Directors of S&T Bancorp, Inc. authorized a new $50 million share repurchase plan at its regular meeting held September 16, 2019. This new repurchase authorization, which is effective through March 31, 2021, permits S&T to repurchase from time to time up to $50 million in aggregate value of shares of S&T's common stock through a combination of open market and privately negotiated repurchases. During the third quarter of 2019, 84,868 of common shares were repurchased at a total cost of $3.1 million, or an average of $36.52 per share.

All regulatory risk-based capital ratios declined at September 30, 2019 compared to June 30, 2019 due to strong loan growth and share repurchases. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend at its regular meeting held October 21, 2019. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year. The dividend is payable November 21, 2019 to shareholders of record on November 7, 2019.

Conference Call

S&T will host its third quarter 2019 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 24, 2019. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "3rd Quarter 2019 Earnings 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 31, 2019, by dialing 1.877.481.4010; the Conference ID is 53468.

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

S&T Bancorp, Inc. is a $7.6 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was recently named by Forbes as a 2019 World's Best Bank. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, 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; the possibility that the merger transaction with DNB may not be timely completed, if at all; that prior to completion of the merger transaction or thereafter, the parties' respective businesses may not perform as expected due to transaction-related uncertainties or other factors; that the merger parties are unable to implement successful integration strategies; reputational risks and the reaction of the parties' customers to the merger transaction; diversion of management time to merger-related issues; 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

 
 

Third

 

Second

 

Third

 

(dollars in thousands, except per share data)

Quarter

 

Quarter

 

Quarter

 

INTEREST AND DIVIDEND INCOME

           

Loans, including fees

$75,080

 

$74,728

 

$68,631

 

Investment securities:

           

Taxable

3,552

 

3,647

 

3,649

 

Tax-exempt

787

 

834

 

857

 

Dividends

394

 

415

 

490

 

Total Interest and Dividend Income

79,813

 

79,624

 

73,627

 
             

INTEREST EXPENSE

           

Deposits

16,207

 

16,055

 

10,871

 

Borrowings and junior subordinated debt securities

2,410

 

2,742

 

3,494

 

Total Interest Expense

18,617

 

18,797

 

14,365

 
             

NET INTEREST INCOME

61,196

 

60,827

 

59,262

 

Provision for loan losses

4,913

 

2,205

 

462

 

Net Interest Income After Provision for Loan Losses

56,283

 

58,622

 

58,800

 
                   

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

 

 

 

Debit and credit card

3,475

 

3,501

 

3,141

 

Service charges on deposit accounts

3,412

 

3,212

 

3,351

 

Wealth management

2,101

 

2,062

 

2,483

 

Mortgage banking

594

 

637

 

700

 

Other

3,481

 

3,489

 

2,367

 

Total Noninterest Income

13,063

 

12,901

 

12,042

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

19,936

 

20,290

 

19,769

 

Data processing and information technology

3,681

 

3,414

 

2,906

 

Net occupancy

2,898

 

2,949

 

2,722

 

Furniture, equipment and software

2,090

 

2,301

 

2,005

 

Other taxes

1,540

 

1,456

 

1,341

 

Marketing

1,062

 

1,310

 

1,023

 

Professional services and legal

1,054

 

1,145

 

1,181

 

FDIC insurance

(675)

 

695

 

746

 

Merger related expense

552

 

618

 

 

Other

5,529

 

6,174

 

5,392

 

Total Noninterest Expense

37,667

 

40,352

 

37,085

 
             

Income Before Taxes

31,679

 

31,171

 

33,757

 

Provision for income taxes

4,743

 

5,070

 

2,876

 
             

Net Income

$26,936

 

$26,101

 

$30,881

 
             

Per Share Data

           

Shares outstanding at end of period

34,244,719

 

34,330,338

 

35,006,587

 

Average shares outstanding - diluted

34,277,270

 

34,201,448

 

35,019,292

 

Diluted earnings per share

$0.79

 

$0.76

 

$0.88

 

Dividends declared per share

$0.27

 

$0.27

 

$0.25

 

Dividend yield (annualized)

2.96%

 

2.88%

 

2.31%

 

Dividends paid to net income

34.30%

 

35.41%

 

28.25%

 

Book value

$28.69

 

$28.11

 

$26.27

 

Tangible book value (1)

$20.25

 

$19.68

 

$18.00

 

Market value

$36.53

 

$37.48

 

$43.36

 
             

Profitability Ratios (annualized)

           

Return on average assets

1.45%

 

1.44%

 

1.75%

 

Return on average shareholders' equity

10.97%

 

11.00%

 

13.41%

 

Return on average tangible shareholders' equity (2)

15.69%

 

15.89%

 

19.73%

 

Efficiency ratio (FTE) (3)

50.09%

 

54.03%

 

51.33%

 

 

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 
     

Nine Months Ended September 30,

 

(dollars in thousands, except per share data)

   

2019

 

2018

 

INTEREST INCOME

           

Loans, including fees

   

$223,200

 

$198,296

 

Investment securities:

           

Taxable

   

10,989

 

10,597

 

Tax-exempt

   

2,466

 

2,603

 

Dividends

   

1,373

 

1,741

 

Total Interest Income

   

238,028

 

213,237

 
             

INTEREST EXPENSE

           

Deposits

   

47,243

 

27,883

 

Borrowings and junior subordinated debt securities

   

8,406

 

10,758

 

Total Interest Expense

   

55,649

 

38,641

 
             

NET INTEREST INCOME

   

182,379

 

174,596

 

Provision for loan losses

   

12,767

 

12,279

 

Net Interest Income After Provision for Loan Losses

   

169,612

 

162,317

 
                 

NONINTEREST INCOME

           

Net gain (loss) on sale of securities

   

 

 

Debit and credit card

   

9,951

 

9,487

 

Service charges on deposit accounts

   

9,777

 

9,765

 

Wealth management

   

6,210

 

7,782

 

Mortgage banking

   

1,726

 

2,133

 

Gain on sale of a majority interest of insurance business

   

 

1,873

 

Other

   

9,662

 

7,046

 

Total Noninterest Income

   

37,326

 

38,086

 
             

NONINTEREST EXPENSE

           

Salaries and employee benefits

   

61,135

 

57,195

 

Data processing and information technology

   

10,327

 

7,610

 

Net occupancy

   

8,883

 

8,399

 

Furniture, equipment and software

   

6,621

 

6,096

 

Other taxes

   

4,182

 

4,928

 

Marketing

   

3,514

 

2,916

 

Professional services and legal

   

3,382

 

3,120

 

FDIC insurance

   

536

 

2,592

 

Merger related expense

   

1,171

 

 

Other

   

17,187

 

16,174

 

Total Noninterest Expense

   

116,938

 

109,030

 
             

Income Before Taxes

   

90,000

 

91,373

 

Provision for income taxes

   

14,035

 

12,893

 
             

Net Income

   

$75,965

 

$78,480

 
             

Per Share Data

           

Average shares outstanding - diluted

   

34,407,732

 

35,012,084

 

Diluted earnings per share

   

$2.21

 

$2.24

 

Dividends declared per share

   

$0.81

 

$0.72

 

Dividends paid to net income

   

36.59%

 

32.00%

 
             

Profitability Ratios (annualized)

           

Return on average assets

   

1.40%

 

1.50%

 

Return on average shareholders' equity

   

10.61%

 

11.63%

 

Return on average tangible shareholders' equity (6)

   

15.30%

 

17.25%

 

Efficiency ratio (FTE) (7)

   

52.54%

 

50.59%

 

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 
 

2019

 

2019

 

2018

 
 

Third

 

Second

 

Third

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

ASSETS

           

Cash and due from banks, including interest-bearing deposits

$173,609

 

$122,876

 

$132,650

 

Securities, at fair value

669,226

 

668,588

 

682,535

 

Loans held for sale

8,371

 

8,135

 

4,207

 

Commercial loans:

           

Commercial real estate

2,922,197

 

2,906,895

 

2,826,372

 

Commercial and industrial

1,626,854

 

1,559,727

 

1,451,371

 

Commercial construction

314,813

 

267,203

 

283,783

 

Total Commercial Loans

4,863,864

 

4,733,825

 

4,561,526

 

Consumer loans:

           

Residential mortgage

770,882

 

751,355

 

699,867

 

Home equity

475,024

 

464,195

 

472,451

 

Installment and other consumer

74,460

 

72,041

 

67,542

 

Consumer construction

11,535

 

11,784

 

6,421

 

Total Consumer Loans

1,331,901

 

1,299,375

 

1,246,281

 

Total Portfolio Loans

6,195,765

 

6,033,200

 

5,807,807

 

Allowance for loan losses

(62,115)

 

(61,479)

 

(60,556)

 

Total Portfolio Loans, Net

6,133,650

 

5,971,721

 

5,747,251

 

Federal Home Loan Bank and other restricted stock, at cost

25,397

 

22,491

 

31,178

 

Goodwill

287,446

 

287,446

 

287,446

 

Other assets

274,292

 

253,348

 

220,096

 

Total Assets

$7,571,991

 

$7,334,605

 

$7,105,363

 
             

LIABILITIES

           

Deposits:

           

Noninterest-bearing demand

$1,490,409

 

$1,462,386

 

$1,412,127

 

Interest-bearing demand

751,881

 

549,663

 

561,191

 

Money market

1,660,569

 

1,742,334

 

1,367,181

 

Savings

753,464

 

754,062

 

817,545

 

Certificates of deposit

1,326,369

 

1,348,255

 

1,309,465

 

Total Deposits

5,982,692

 

5,856,700

 

5,467,509

 
             

Borrowings:

           

Securities sold under repurchase agreements

13,925

 

14,154

 

45,200

 

Short-term borrowings

370,000

 

295,000

 

535,000

 

Long-term borrowings

69,156

 

69,791

 

45,434

 

Junior subordinated debt securities

45,619

 

45,619

 

45,619

 

Total Borrowings

498,700

 

424,564

 

671,253

 

Other liabilities

108,152

 

88,388

 

46,820

 

Total Liabilities

6,589,544

 

6,369,652

 

6,185,582

 
             

SHAREHOLDERS' EQUITY

           

Total Shareholders' Equity

982,447

 

964,953

 

919,781

 

Total Liabilities and Shareholders' Equity

$7,571,991

 

$7,334,605

 

$7,105,363

 
             

Capitalization Ratios

           

Shareholders' equity / assets

12.97%

 

13.16%

 

12.94%

 

Tangible common equity / tangible assets (4)

9.52%

 

9.59%

 

9.25%

 

Tier 1 leverage ratio

10.20%

 

10.12%

 

10.13%

 

Common equity tier 1 capital

11.17%

 

11.35%

 

11.42%

 

Risk-based capital - tier 1

11.49%

 

11.68%

 

11.76%

 

Risk-based capital - total

12.92%

 

13.15%

 

13.27%

 

 

 

S&T Bancorp, Inc.

 

Consolidated Selected Financial Data

 

Unaudited

 
   
 

2019

 

2019

 

2018

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Net Interest Margin (FTE) (QTD Averages)

             

ASSETS

             

Interest-bearing deposits with banks

$53,725

2.32%

$49,949

2.19%

$57,012

2.13%

 

Securities, at fair value

661,752

2.59%

673,117

2.66%

680,464

2.63%

 

Loans held for sale

2,712

3.98%

1,452

4.44%

1,571

4.71%

 

Commercial real estate

2,922,767

4.89%

2,895,146

5.01%

2,779,019

4.81%

 

Commercial and industrial

1,566,369

5.06%

1,559,222

5.17%

1,432,936

4.79%

 

Commercial construction

282,175

5.14%

242,192

5.37%

291,512

5.08%

 

Total Commercial Loans

4,771,311

4.96%

4,696,560

5.08%

4,503,467

4.82%

 

Residential mortgage

753,649

4.41%

734,372

4.50%

696,267

4.30%

 

Home equity

469,567

5.36%

463,480

5.42%

472,466

4.94%

 

Installment and other consumer

72,606

7.10%

71,319

7.23%

66,693

6.92%

 

Consumer construction

11,056

5.39%

11,014

5.41%

5,846

5.04%

 

Total Consumer Loans

1,306,878

4.91%

1,280,185

4.99%

1,241,272

4.69%

 

Total Portfolio Loans

6,078,189

4.95%

5,976,745

5.06%

5,744,739

4.79%

 

Total Loans

6,080,901

4.95%

5,978,197

5.06%

5,746,310

4.79%

 

Federal Home Loan Bank and other restricted stock

19,981

7.00%

21,141

6.97%

28,512

6.28%

 

Total Interest-earning Assets

6,816,359

4.70%

6,722,404

4.81%

6,512,298

4.55%

 

Noninterest-earning assets

538,514

 

523,636

 

496,268

   

Total Assets

$7,354,873

 

$7,246,040

 

$7,008,566

   
               

LIABILITIES AND SHAREHOLDERS' EQUITY

             

Interest-bearing demand

$655,735

0.72%

$550,200

0.46%

$566,579

0.36%

 

Money market

1,709,248

1.83%

1,695,349

1.93%

1,330,489

1.47%

 

Savings

749,287

0.24%

760,743

0.26%

823,215

0.20%

 

Certificates of deposit

1,345,474

1.97%

1,389,968

1.95%

1,310,526

1.51%

 

Total interest-bearing Deposits

4,459,744

1.44%

4,396,260

1.46%

4,030,809

1.07%

 

Securities sold under repurchase agreements

14,030

0.73%

16,337

0.69%

42,183

0.52%

 

Short-term borrowings

218,799

2.47%

242,759

2.71%

455,689

2.28%

 

Long-term borrowings

69,421

2.68%

70,049

2.86%

45,699

2.36%

 

Junior subordinated debt securities

45,619

4.82%

45,619

5.03%

45,619

4.79%

 

Total Borrowings

347,869

2.75%

374,764

2.94%

589,190

2.35%

 

Total interest-bearing Liabilities

4,807,613

1.54%

4,771,024

1.58%

4,619,999

1.23%

 

Noninterest-bearing liabilities

1,573,549

 

1,523,676

 

1,475,059

   

Shareholders' equity

973,711

 

951,340

 

913,508

   

Total Liabilities and Shareholders' Equity

$7,354,873

 

$7,246,040

 

$7,008,566

   
               

Net Interest Margin (5)

 

3.62%

 

3.68%

 

3.67%

 
               

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 
     

Nine Months Ended September 30,

 

(dollars in thousands)

   

2019

 

2018

 

Net Interest Margin (FTE) (YTD Averages)

           

ASSETS

           

Interest-bearing deposits with banks

   

$52,421

2.38%

$56,015

1.80%

Securities, at fair value

   

671,727

2.65%

684,146

2.59%

Loans held for sale

   

1,693

4.11%

1,681

5.90%

Commercial real estate

   

2,907,792

4.97%

2,748,620

4.70%

Commercial and industrial

   

1,544,962

5.14%

1,432,133

4.62%

Commercial construction

   

258,239

5.28%

330,219

4.76%

Total Commercial Loans

   

4,710,993

5.04%

4,510,972

4.68%

Residential mortgage

   

736,972

4.43%

694,075

4.24%

Home equity

   

466,936

5.41%

475,450

4.74%

Installment and other consumer

   

71,021

7.17%

66,913

6.80%

Consumer construction

   

10,517

5.63%

4,749

4.86%

Total Consumer Loans

   

1,285,446

4.95%

1,241,187

4.57%

Total Portfolio Loans

   

5,996,439

5.02%

5,752,159

4.66%

Total Loans

   

5,998,132

5.02%

5,753,840

4.66%

Federal Home Loan Bank and other restricted stock

   

21,848

7.55%

31,277

6.88%

Total Interest-earning Assets

   

6,744,128

4.77%

6,525,278

4.43%

Noninterest-earning assets

   

526,788

 

492,428

 

Total Assets

   

$7,270,916

 

$7,017,706

 
             

LIABILITIES AND SHAREHOLDERS' EQUITY

           

Interest-bearing demand

   

$584,280

0.54%

$571,040

0.31%

Money market

   

1,658,187

1.88%

1,259,071

1.29%

Savings

   

760,128

0.25%

849,558

0.20%

Certificates of deposit

   

1,389,658

1.94%

1,320,374

1.32%

Total Interest-bearing deposits

   

4,392,253

1.44%

4,000,043

0.93%

Securities sold under repurchase agreements

   

17,812

0.63%

46,292

0.44%

Short-term borrowings

   

259,947

2.65%

556,017

2.00%

Long-term borrowings

   

69,886

2.79%

46,313

2.20%

Junior subordinated debt securities

   

45,619

5.02%

45,619

4.52%

Total Borrowings

   

393,264

2.86%

694,241

2.07%

Total Interest-bearing Liabilities

   

4,785,517

1.55%

4,694,284

1.10%

Noninterest-bearing liabilities

   

1,528,573

 

1,421,276

 

Shareholders' equity

   

956,826

 

902,146

 

Total Liabilities and Shareholders' Equity

   

$7,270,916

 

$7,017,706

 
             

Net Interest Margin (8)

     

3.67%

 

3.63%

 

 

S&T Bancorp, Inc.

 

Consolidated Selected Financial Data

 

Unaudited

 
   
 

2019

 

2019

 

2018

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Nonperforming Loans (NPL)

                 

Commercial loans:

 

% NPL

 

% NPL

 

% NPL

 

Commercial real estate

$33,740

1.15%

$28,783

0.99%

$4,595

0.16%

 

Commercial and industrial

4,206

0.26%

4,130

0.26%

4,367

0.30%

 

Commercial construction

1,143

0.36%

1,226

0.46%

1,228

0.43%

 

Total Nonperforming Commercial Loans

39,089

0.80%

34,139

0.72%

10,190

0.22%

 

Consumer loans:

             

Residential mortgage

7,384

0.96%

6,782

0.90%

6,721

0.96%

 

Home equity

3,492

0.74%

4,081

0.88%

3,783

0.80%

 

Installment and other consumer

18

0.02%

25

0.03%

45

0.07%

 

Total Nonperforming Consumer Loans

10,894

0.81%

10,888

0.83%

10,549

0.85%

 

Total Nonperforming Loans

$49,983

0.81%

$45,027

0.75%

$20,739

0.36%

 
     
     
 

2019

 

2019

 

2018

   
 

Third

 

Second

 

Third

   

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

   

Loan Charge-offs/(Recoveries)

             

Charge-offs

$4,700

 

$2,667

 

$1,234

   

Recoveries

(423)

 

(532)

 

(811)

   

Net Loan Charge-offs/(Recoveries)

$4,277

 

$2,135

 

$423

   
               

Net Loan Charge-offs/(Recoveries)

             

Commercial loans:

             

Commercial real estate

$2,298

 

$522

 

$77

   

Commercial and industrial

1,257

 

1,344

 

(298)

   

Commercial construction

(1)

 

(2)

 

(29)

   

Total Commercial Loan Charge-offs/(Recoveries)

3,554

 

1,864

 

(250)

   

Consumer loans:

             

Residential mortgage

289

 

(154)

 

54

   

Home equity

13

 

57

 

402

   

Installment and other consumer

421

 

368

 

256

   

Consumer construction

 

 

(39)

   

Total Consumer Loan Charge-offs

723

 

271

 

673

   

Total Net Loan Charge-offs/(Recoveries)

$4,277

 

$2,135

 

$423

   
     
         

Nine Months Ended September 30,

   

(dollars in thousands)

     

2019

 

2018

   

Loan Charge-offs/(Recoveries)

               

Charge-offs

     

$13,391

 

$11,311

   

Recoveries

     

(1,743)

 

(3,198)

   

Net Loan Charge-offs/(Recoveries)

     

$11,648

 

$8,113

   
                 

Net Loan Charge-offs/(Recoveries)

               

Commercial loans:

               

Commercial real estate

     

$2,699

 

$80

   

Commercial and industrial

     

7,661

 

7,443

   

Commercial construction

     

(4)

 

(838)

   

Total Commercial Loan Charge-offs/(Recoveries)

     

10,356

 

6,685

   

Consumer loans:

               

Residential mortgage

     

251

 

203

   

Home equity

     

51

 

408

   

Installment and other consumer

     

1,072

 

905

   

Consumer construction

     

(82)

 

(88)

   

Total Consumer Loan Charge-offs

     

1,292

 

1,428

   

Total Net Loan Charge-offs/(Recoveries)

     

$11,648

 

$8,113

   

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 
 

2019

 

2019

 

2018

 
 

Third

 

Second

 

Third

 

(dollars in thousands)

Quarter

 

Quarter

 

Quarter

 

Asset Quality Data

           

Nonperforming loans

$49,983

 

$45,027

 

$20,739

 

OREO

1,724

 

1,495

 

3,068

 

Nonperforming assets

51,707

 

46,522

 

23,807

 

Troubled debt restructurings (nonaccruing)

14,496

 

9,943

 

7,143

 

Troubled debt restructurings (accruing)

38,434

 

20,690

 

22,226

 

Total troubled debt restructurings

52,930

 

30,633

 

29,369

 

Nonperforming loans / loans

0.81%

 

0.75%

 

0.36%

 

Nonperforming assets / loans plus OREO

0.83%

 

0.77%

 

0.41%

 

Allowance for loan losses / total portfolio loans

1.00%

 

1.02%

 

1.04%

 

Allowance for loan losses / nonperforming loans

124%

 

137%

 

292%

 

Net loan charge-offs (recoveries)

$4,277

 

$2,135

 

$423

 

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

0.28%

 

0.14%

 

0.03%

 
 
 
       

Nine Months Ended September 30,

 

(dollars in thousands)

     

2019

 

2018

 

Asset Quality Data

                 

Net loan charge-offs (recoveries)

     

$11,648

 

$8,113

 

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

     

0.26%

 

0.19%

 

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 

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

 
 

2019

 

2019

 

2018

 
 

Third

 

Second

 

Third

 
 

Quarter

 

Quarter

 

Quarter

 
             

(1) Tangible Book Value (non-GAAP)

                 

 Total shareholders' equity

$982,447

 

$964,953

 

$919,781

 

     Less: goodwill and other intangible assets

(289,538)

 

(289,701)

 

(290,171)

 

     Tax effect of other intangible assets

439

 

474

 

572

 

 Tangible common equity (non-GAAP)

$693,348

 

$675,726

 

$630,182

 

 Common shares outstanding

34,245

 

34,330

 

35,007

 

 Tangible book value (non-GAAP)

$20.25

 

$19.68

 

$18.00

 
             

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

           

  Net income (annualized)

$106,865

 

$104,689

 

$122,516

 

       Plus: amortization of intangibles (annualized)

647

 

654

 

731

 

       Tax effect of amortization of intangibles (annualized)

(136)

 

(137)

 

(154)

 

  Net income before amortization of intangibles (annualized)

$107,376

 

$105,206

 

$123,093

 
             

  Average total shareholders' equity

$973,711

 

$951,340

 

$913,508

 

       Less: average goodwill and other intangible assets

(289,622)

 

(289,784)

 

(290,264)

 

       Tax effect of average goodwill and other intangible assets

457

 

491

 

592

 

  Average tangible equity (non-GAAP)

$684,546

 

$662,047

 

$623,836

 

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

15.69%

 

15.89%

 

19.73%

 
             

(3) Efficiency Ratio (non-GAAP)

           

Noninterest expense

$37,667

 

$40,352

 

$37,085

 
             

Net interest income per consolidated statements of net income

$61,196

 

$60,827

 

$59,262

 

     Less: net (gains) losses on sale of securities

 

 

 

     Plus: taxable equivalent adjustment

934

 

958

 

951

 

Net interest income (FTE) (non-GAAP)

$62,130

 

$61,785

 

$60,213

 

Noninterest income

13,063

 

12,901

 

12,042

 

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

$75,193

 

$74,686

 

$72,255

 

Efficiency ratio (non-GAAP)

50.09%

 

54.03%

 

51.33%

 
             

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

           

 Total shareholders' equity

$982,447

 

$964,953

 

$919,781

 

      Less: goodwill and other intangible assets

(289,538)

 

(289,701)

 

(290,171)

 

      Tax effect of goodwill and other intangible assets

439

 

474

 

572

 

 Tangible common equity (non-GAAP)

$693,348

 

$675,726

 

$630,182

 
             

 Total assets

$7,571,991

 

$7,334,605

 

$7,105,363

 

      Less: goodwill and other intangible assets

(289,538)

 

(289,701)

 

(290,171)

 

      Tax effect of goodwill and other intangible assets

439

 

474

 

572

 

 Tangible assets (non-GAAP)

$7,282,892

 

$7,045,378

 

$6,815,764

 

 Tangible common equity to tangible assets (non-GAAP)

9.52%

 

9.59%

 

9.25%

 
             

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

           

 Interest income

$79,813

 

$79,624

 

$73,627

 

      Less: interest expense

(18,617)

 

(18,797)

 

(14,365)

 

 Net interest income per consolidated statements of net income

61,196

 

60,827

 

59,262

 

      Plus: taxable equivalent adjustment

934

 

958

 

951

 

 Net interest income (FTE) (non-GAAP)

$62,130

 

$61,785

 

$60,213

 

 Net interest income (FTE) (annualized)

$246,494

 

$247,819

 

$238,889

 

 Average earning assets

$6,816,359

 

$6,722,404

 

$6,512,298

 

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

3.62%

 

3.68%

 

3.67%

 

 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 
     

Nine Months Ended September 30,

 
     

2019

 

2018

 
             

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

               

  Net income (annualized)

   

$101,564

 

$104,927

 

  Plus: amortization of intangibles (annualized)

   

680

 

878

 

  Tax effect of amortization of intangibles (annualized)

   

(143)

 

(184)

 

  Net income before amortization of intangibles (annualized)

   

$102,101

 

$105,621

 
             

  Average total shareholders' equity

   

$956,826

 

$902,146

 

  Less: average goodwill and other intangible assets

   

(289,786)

 

(290,493)

 

  Tax effect of average goodwill and other intangible assets

   

491

 

636

 

  Average tangible equity (non-GAAP)

   

$667,531

 

$612,290

 

  Return on average tangible equity (non-GAAP)

   

15.30%

 

17.25%

 
             

(7) Efficiency Ratio (non-GAAP)

           

Noninterest expense

   

$116,938

 

$109,030

 
             

Net interest income per consolidated statements of net income

   

$182,379

 

$174,596

 

Less: net (gains) losses on sale of securities

   

 

 

Plus: taxable equivalent adjustment

   

2,854

 

2,830

 

Net interest income (FTE) (non-GAAP)

   

$185,233

 

$177,426

 

Noninterest income

   

37,326

 

38,086

 

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

   

$222,559

 

$215,512

 

Efficiency ratio (non-GAAP)

   

52.54%

 

50.59%

 
             

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

           

 Interest income

   

$238,028

 

$213,237

 

 Less: interest expense

   

(55,649)

 

(38,641)

 

 Net interest income per consolidated statements of net income

   

182,379

 

174,596

 

 Plus: taxable equivalent adjustment

   

2,854

 

2,830

 

 Net interest income (FTE) (non-GAAP)

   

$185,233

 

$177,426

 

 Net interest income (FTE) (annualized)

   

$247,656

 

$237,218

 

 Average earning assets

   

$6,744,127

 

$6,525,278

 

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

   

3.67%

 

3.63%

 

 

 

 

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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