Skip to main content

Press Release

Press Release


<< Back

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%

  

 

 

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-third-quarter-2019-results-300944476.html

SOURCE S&T Bancorp, Inc.

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