S&T Bancorp, Inc.
Jul 20, 2017

S&T Bancorp, Inc. Announces Second Quarter 2017 Results

-S&T Reports Solid EPS Growth-

INDIANA, Pa., July 20, 2017 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its second quarter 2017 earnings. Second quarter net income was $22.8 million, or $0.65 diluted earnings per share (EPS), compared to first quarter of 2017 net income of $18.2 million, or $0.52 diluted EPS, and second quarter of 2016 net income of $17.1 million, or $0.49 diluted EPS.

S&T Bancorp, Inc.

Second Quarter of 2017 Highlights:

  • Excluding securities gains of $0.07 in the second quarter and $0.01 in the first quarter of 2017, EPS grew 14% compared to the first quarter of 2017 and 18% compared to the second quarter of 2016 (Non-GAAP).
      
  • Net interest margin (FTE) (Non-GAAP) improved 7 basis points to 3.57% and net interest income increased $2.7 million, or 5.0%, to $56.6 million compared to the first quarter of 2017.
      
  • Return on average assets was 1.29% and return on average equity was 10.55% compared to 1.06% and 8.68% for the first quarter of 2017.
      
  • Expenses were well controlled during the quarter with an efficiency ratio of 51.48% (Non-GAAP).
      
  • Nonperforming loans decreased $9.3 million, or 20%, compared to the first quarter of 2017.
      
  • S&T declared a $0.20 per share dividend versus $0.19 in the same period a year ago, an increase of 5.3%.

"We are extremely pleased with our second quarter results," said Todd Brice, president and chief executive officer of S&T." Net interest income growth drove solid core operating performance during the quarter. Our net interest income is 14% higher than it was in the second quarter of last year due to strong loan growth and the benefit of rising short term rates."

Net Interest Income

Net interest income increased $2.7 million, or 5.0%, to $56.6 million for the second quarter of 2017 compared to $53.9 million in the first quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (Non-GAAP) increased 7 basis points to 3.57% compared to 3.50% in the first quarter of 2017. The increases in net interest income and net interest margin (FTE) (Non-GAAP) were driven by average portfolio loan growth of $125 million, or 8.9% annualized, and the increase in short term rates. Loan yields increased 12 basis points to 4.30% compared to 4.18% in the first quarter, while the cost of total interest-bearing liabilities increased 8 basis points to 0.69% compared to 0.61%.

Asset Quality

Nonperforming loans showed notable improvement with a $9.3 million, or 20%, decline compared to the first quarter of 2017. Two impaired loan relationships were positively resolved resulting in a decrease of $2.2 million in specific reserves during the second quarter of 2017. Net loan charge-offs were $5.3 million compared to $2.1 million in the first quarter of 2017. The provision for loan loss was $4.9 million compared to $5.2 million in the first quarter of 2017. The allowance for loan losses to total loans was 0.96% at June 30, 2017 compared to 0.97% at March 31, 2017.

Noninterest Income and Expense

Noninterest income increased $3.3 million to $16.3 million for the second quarter of 2017 compared to $13.0 million for the first quarter of 2017. The increase primarily related to higher securities gains of $3.2 million with $3.6 million in the second quarter compared to $0.4 million in the first quarter. Noninterest expense was well controlled with a decrease of $0.2 million to $36.6 million compared to $36.8 million for the first quarter of 2017. The efficiency ratio (Non-GAAP) improved to 51.48% compared to 53.83% in the first quarter and 54.37% in the second quarter of 2016 due to expense control and higher net interest income.

Financial Condition

Total assets were unchanged at $7.1 billion as of June 30, 2017 and March 31, 2017. Total portfolio loans remained relatively unchanged compared to March 31, 2017. Total deposits remained stable with a slight decrease mainly due to a decline in brokered deposits. Risk-based capital ratios increased this quarter due to earnings retention and a reduction in risk weighted assets. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.20 per share cash dividend at its regular meeting held July 17, 2017. This is an increase of 5.3% compared to a common stock dividend of $0.19 per share declared in the same period in the prior year. The dividend is payable August 17, 2017 to shareholders of record on August 3, 2017.

Conference Call

S&T will host its second quarter 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 20, 2017. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd Quarter 2017 Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until July 27, 2017, by dialing 1.877.481.4010; the Conference ID # is 16035.

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
















2017


2017


2016



Second


First


Second


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST INCOME







Loans, including fees

$60,558


$56,900


$52,019


Investment securities:







Taxable

2,947


2,848


2,580


Tax-exempt

928


920


915


Dividends

481


482


336


Total Interest Income

64,914


61,150


55,850









INTEREST EXPENSE







Deposits

5,976


5,379


5,029


Borrowings and junior subordinated debt securities

2,368


1,893


1,113


Total Interest Expense

8,344


7,272


6,142









NET INTEREST INCOME

56,570


53,878


49,708


Provision for loan losses

4,869


5,183


4,848


Net Interest Income After Provision for Loan Losses

51,701


48,695


44,860









NONINTEREST INCOME







Securities gains (losses), net

3,617


370




Debit and credit card fees

3,042


2,843


2,869


Service charges on deposit accounts

2,997


3,014


3,065


Wealth management fees

2,428


2,403


2,630


Insurance fees

1,461


1,464


1,205


Mortgage banking

675


733


578


Other

2,045


2,169


2,101


Total Noninterest Income

16,265


12,996


12,448









NONINTEREST EXPENSE







Salaries and employee benefits

19,903


20,541


17,626


Net occupancy

2,751


2,815


2,688


Data processing

2,135


2,251


2,518


Furniture and equipment

1,810


2,047


1,719


FDIC insurance

1,185


1,123


994


Other taxes

1,083


976


896


Professional services and legal

958


1,043


988


Marketing

948


754


1,075


Other

5,824


5,258


6,249


Total Noninterest Expense

36,597


36,808


34,753









Income Before Taxes

31,369


24,883


22,555


Provision for income taxes

8,604


6,695


5,496









Net Income

$22,765


$18,188


$17,059









Per Share Data







Shares outstanding at end of period

34,980,280


34,980,556


34,916,358


Average shares outstanding - diluted

34,906,496


34,912,261


34,764,565


Diluted earnings per share

$0.65


$0.52


$0.49


Dividends declared per share

$0.20


$0.20


$0.19


Dividend yield (annualized)

2.23%


2.31%


3.11%


Dividends paid to net income

30.60%


38.27%


38.75%


Book value

$24.90


$24.45


$23.63


Tangible book value (1)

$16.49


$16.02


$15.17


Market value

$35.86


$34.60


$24.45









Profitability Ratios (annualized)







Return on average assets

1.29%


1.06%


1.05%


Return on average shareholders' equity

10.55%


8.68%


8.37%


Return on average tangible shareholders' equity (2)

16.15%


13.45%


13.30%


Efficiency ratio (FTE) (3)

51.48%


53.83%


54.37%










 

 

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














For the Six Months Ended June 30,


(dollars in thousands, except per share data)



2017


2016


INTEREST INCOME







Loans, including fees



$117,458


$103,177


Investment securities:







Taxable



5,796


5,134


Tax-exempt



1,848


1,857


Dividends



963


702


Total Interest Income



126,065


110,870









INTEREST EXPENSE







Deposits



11,355


9,284


Borrowings and junior subordinated debt securities



4,261


2,240


Total Interest Expense



15,616


11,524









NET INTEREST INCOME



110,449


99,346


Provision for loan losses



10,052


9,863


Net Interest Income After Provision for Loan Losses



100,397


89,483









NONINTEREST INCOME







Securities (losses) gains, net



3,987




Debit and credit card fees



5,885


5,655


Service charges on deposit accounts



6,012


6,064


Wealth management fees



4,831


5,382


Insurance fees



2,924


2,979


Mortgage banking



1,408


1,107


Gain on sale of credit card portfolio





2,066


Other



4,214


5,012


Total Noninterest Income



29,261


28,265









NONINTEREST EXPENSE







Salaries and employee benefits



40,444


38,528


Net occupancy



5,566


5,638


Data processing



4,386


4,630


Furniture and equipment



3,857


3,648


FDIC insurance



2,308


1,934


Other taxes



2,060


1,995


Professional services and legal



2,001


1,728


Marketing



1,702


1,976


Other



11,082


13,092


Total Noninterest Expense



73,406


73,169









Income Before Taxes



56,252


44,579


Provision for income taxes



15,299


11,427









Net Income



$40,953


$33,152









Per Share Data:







Average shares outstanding - diluted



34,907,377


34,747,663


Diluted earnings per share



$1.17


$0.95


Dividends declared per share



$0.40


$0.38


Dividends paid to net income



34.01%


39.85%









Profitability Ratios (annualized)







Return on average assets



1.18%


1.03%


Return on average shareholders' equity



9.63%


8.22%


Return on average tangible shareholders' equity (6)



14.83%


13.15%


Efficiency ratio (FTE) (7)



52.63%


55.81%











 

 


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
















2017


2017


2016



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks, including interest-bearing deposits

$125,863


$104,705


$94,991


Securities available-for-sale, at fair value

689,388


713,198


683,479


Loans held for sale

23,120


14,355


11,999


Commercial loans:







Commercial real estate

2,664,642


2,614,724


2,388,786


Commercial and industrial

1,401,283


1,422,297


1,385,746


Commercial construction

426,754


455,211


398,122


Total Commercial Loans

4,492,679


4,492,232


4,172,654


Consumer loans:







Residential mortgage

706,143


700,610


671,665


Home equity

484,960


479,402


480,204


Installment and other consumer

70,068


70,219


58,139


Consumer construction

3,969


4,363


5,602


Total Consumer Loans

1,265,140


1,254,594


1,215,610


Total portfolio loans

5,757,819


5,746,826


5,388,264


Allowance for loan losses

(55,351)


(55,816)


(52,213)


Total portfolio loans, net

5,702,468


5,691,010


5,336,051


Federal Home Loan Bank and other restricted stock, at cost

33,417


29,739


23,337


Goodwill

291,670


291,670


291,670


Other assets

220,240


220,421


232,678


Total Assets

$7,086,166


$7,065,098


$6,674,205









LIABILITIES







Deposits:







Noninterest-bearing demand

$1,335,768


$1,300,707


$1,220,568


Interest-bearing demand

636,904


631,652


662,509


Money market

950,619


985,723


700,219


Savings

1,010,348


1,032,864


1,033,077


Certificates of deposit

1,476,223


1,484,379


1,503,945


Total Deposits

5,409,862


5,435,325


5,120,318









Borrowings:







Securities sold under repurchase agreements

46,489


46,987


48,479


Short-term borrowings

645,000


610,000


550,000


Long-term borrowings

13,518


14,118


15,888


Junior subordinated debt securities

45,619


45,619


45,619


Total Borrowings

750,626


716,724


659,986


Other liabilities

54,616


57,869


68,851


Total Liabilities

6,215,104


6,209,918


5,849,155









SHAREHOLDERS' EQUITY







Total Shareholders' Equity

871,062


855,180


825,050


Total Liabilities and Shareholders' Equity

$7,086,166


$7,065,098


$6,674,205









Capitalization Ratios







Shareholders' equity / assets

12.29%


12.10%


12.36%


Tangible common equity / tangible assets (4)

8.49%


8.28%


8.30%


Tier 1 leverage ratio

9.01%


8.92%


8.92%


Common equity tier 1 capital

10.53%


10.16%


9.70%


Risk-based capital - tier 1

10.89%


10.52%


10.06%


Risk-based capital - total

12.37%


12.02%


11.52%


 

 


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
















2017


2017


2016



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Net Interest Margin (FTE) (QTD Averages)







ASSETS







Interest-bearing deposits with banks

$48,547

0.91%

$66,173

0.85%

$38,233

0.47%

Securities available-for-sale, at fair value

709,208

2.48%

697,327

2.44%

681,409

2.39%

Loans held for sale

5,053

2.61%

2,211

4.44%

11,243

4.15%

Commercial real estate

2,664,696

4.30%

2,524,859

4.25%

2,309,310

4.12%

Commercial and industrial

1,430,080

4.30%

1,413,801

4.16%

1,370,427

3.89%

Commercial construction

421,456

4.09%

454,886

3.70%

391,569

3.69%

Total Commercial Loans

4,516,232

4.28%

4,393,546

4.16%

4,071,306

4.00%

Residential mortgage

700,406

4.14%

699,849

4.05%

658,298

4.13%

Home equity

481,039

4.38%

480,411

4.14%

473,452

4.10%

Installment and other consumer

69,899

6.46%

68,164

6.49%

60,278

6.46%

Consumer construction

4,572

4.93%

5,374

3.67%

7,192

4.13%

Total Consumer Loans

1,255,916

4.36%

1,253,798

4.22%

1,199,220

4.24%

Total portfolio loans

5,772,148

4.30%

5,647,344

4.18%

5,270,526

4.05%

Total loans

5,777,201

4.30%

5,649,555

4.18%

5,281,769

4.05%

Federal Home Loan Bank and other restricted stock

33,082

4.60%

32,690

4.68%

22,017

4.32%

Total Interest-earning Assets

6,568,038

4.08%

6,445,745

3.96%

6,023,428

3.85%

Noninterest-earning assets

507,425


511,125


520,720


Total Assets

$7,075,463


$6,956,870


$6,544,148









LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing demand

$649,440

0.22%

$633,232

0.18%

$651,009

0.17%

Money market

937,272

0.72%

938,014

0.61%

672,097

0.41%

Savings

1,019,220

0.21%

1,041,647

0.21%

1,030,357

0.19%

Certificates of deposit

1,457,107

0.93%

1,403,796

0.91%

1,550,936

0.93%

Total interest-bearing deposits

4,063,039

0.59%

4,016,689

0.54%

3,904,399

0.52%

Securities sold under repurchase agreements

50,082

0.06%

48,896

0.01%

52,443

0.01%

Short-term borrowings

682,584

1.09%

671,784

0.84%

366,942

0.64%

Long-term borrowings

13,765

2.96%

14,362

2.91%

54,588

1.30%

Junior subordinated debt securities

45,619

3.60%

45,619

3.45%

45,619

3.10%

Total borrowings

792,050

1.20%

780,661

0.98%

519,592

0.86%

Total interest-bearing liabilities

4,855,089

0.69%

4,797,350

0.61%

4,423,991

0.56%

Noninterest-bearing liabilities

1,354,711


1,309,401


1,300,621


Shareholders' equity

865,663


850,119


819,536


Total Liabilities and Shareholders' Equity

$7,075,463


$6,956,870


$6,544,148









Net Interest Margin (5)


3.57%


3.50%


3.44%

 

 


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














For the Six Months Ended June 30,


(dollars in thousands)



2017


2016


Net Interest Margin (FTE) (YTD Averages)







ASSETS







Interest-bearing deposits with banks



$57,311

0.87%

$43,196

0.51%

Securities available-for-sale, at fair value



703,300

2.46%

674,064

2.42%

Loans held for sale



3,639

3.16%

19,364

6.40%

Commercial real estate



2,595,163

4.27%

2,252,345

4.14%

Commercial and industrial



1,421,986

4.23%

1,338,890

3.91%

Commercial construction



438,079

3.89%

394,290

3.73%

Total Commercial Loans



4,455,228

4.22%

3,985,525

4.02%

Residential mortgage



700,129

4.10%

648,830

4.14%

Home equity



480,727

4.26%

471,142

4.13%

Installment and other consumer



69,036

6.47%

67,828

6.25%

Consumer construction



4,971

4.25%

7,833

4.18%

Total Consumer Loans



1,254,863

4.29%

1,195,633

4.26%

Total portfolio loans



5,710,091

4.24%

5,181,158

4.07%

Total loans



5,713,730

4.24%

5,200,522

4.08%

Federal Home Loan Bank and other restricted stock



32,888

4.64%

22,305

4.52%

Total Interest-earning Assets



6,507,229

4.02%

5,940,087

3.87%

Noninterest-earning assets



509,265


520,368


Total Assets



$7,016,494


$6,460,455









LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing demand



$641,381

0.20%

$638,751

0.16%

Money market



937,641

0.67%

650,126

0.37%

Savings



1,030,371

0.21%

1,045,737

0.19%

Certificates of deposit



1,430,599

0.92%

1,488,037

0.89%

Total interest-bearing deposits



4,039,992

0.57%

3,822,651

0.49%

Securities sold under repurchase agreements



49,492

0.03%

58,373

0.01%

Short-term borrowings



677,214

0.97%

348,165

0.63%

Long-term borrowings



14,062

2.94%

85,647

1.06%

Junior subordinated debt securities



45,619

3.53%

45,619

3.05%

Total borrowings



786,387

1.09%

537,804

0.84%

Total Interest-bearing Liabilities



4,826,379

0.65%

4,360,455

0.53%

Noninterest-bearing liabilities



1,332,181


1,288,820


Shareholders' equity



857,934


811,180


Total Liabilities and Shareholders' Equity



$7,016,494


$6,460,455









Net Interest Margin (8)




3.53%


3.48%

 

 


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

















2017


2017


2016



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Nonperforming Loans (NPL)







Commercial loans:


% NPL


% NPL


% NPL

Commercial real estate

$7,199

0.27%

$8,617

0.33%

$10,887

0.46%

Commercial and industrial

17,418

1.24%

21,879

1.54%

11,342

0.82%

Commercial construction

2,313

0.54%

3,758

0.83%

8,182

2.06%

Total Nonperforming Commercial Loans

26,930

0.60%

34,254

0.76%

30,411

0.73%

Consumer loans:







Residential mortgage

7,056

0.99%

8,218

1.17%

9,283

1.38%

Home equity

2,642

0.54%

3,484

0.73%

3,168

0.66%

Installment and other consumer

41

0.06%

36

0.05%

43

0.07%

Total Nonperforming Consumer Loans

9,739

0.76%

11,738

0.93%

12,494

1.03%

Total Nonperforming Loans

$36,669

0.63%

$45,992

0.80%

$42,905

0.79%
















2017


2017


2016



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Loan Charge-offs







Charge-offs

$5,822


$2,942


$3,496


Recoveries

(488)


(800)


(514)


Net Loan Charge-offs

$5,334


$2,142


$2,982









Net Loan Charge-offs







Commercial loans:







Commercial real estate

$1,518


$312


$1,624


Commercial and industrial

2,613


528


(81)


Commercial construction

(113)


388


943


Total Commercial Loan Charge-offs

4,018


1,228


2,486


Consumer loans:







Residential mortgage

695


481


158


Home equity

354


183


37


Installment and other consumer

295


258


340


Consumer construction

(28)


(8)


(39)


Total Consumer Loan Charge-offs

1,316


914


496


Total Net Loan Charge-offs

$5,334


$2,142


$2,982



















For the Six Months Ended June 30,


(dollars in thousands)



2017


2016


Loan Charge-offs







Charge-offs



$8,763


$7,123


Recoveries



(1,287)


(1,326)


Net Loan Charge-offs



$7,476


$5,797









Net Loan Charge-offs







Commercial loans:







Commercial real estate



$1,830


$1,317


Commercial and industrial



3,141


2,410


Commercial construction



275


942


Total Commercial Loan Charge-offs



5,246


4,669


Consumer loans:







Residential mortgage



1,176


176


Home equity



536


158


Installment and other consumer



553


904


Consumer construction



(35)


(110)


Total Consumer Loan Charge-offs



2,230


1,128


Total Net Loan Charge-offs



$7,476


$5,797


 

 


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
















2017


2017


2016



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonperforming loans

$36,669


$45,992


$42,905


Assets acquired through foreclosure or repossession

1,620


873


328


Nonperforming assets

38,289


46,865


43,233


Troubled debt restructurings (nonperforming)

10,105


10,324


15,028


Troubled debt restructurings (performing)

15,080


13,086


20,598


Total troubled debt restructurings

25,185


23,410


35,626


Nonperforming loans / loans

0.63%


0.80%


0.79%


Nonperforming assets / loans plus OREO

0.66%


0.81%


0.80%


Allowance for loan losses / total portfolio loans

0.96%


0.97%


0.97%


Allowance for loan losses / nonperforming loans

151%


121%


122%


Net loan charge-offs (recoveries)

$5,334


$2,142


$2,982


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

0.37%


0.15%


0.23%



















For the Six Months Ended June 30,


(dollars in thousands)



2017


2016


Asset Quality Data







Net loan charge-offs (recoveries)



$7,476


$5,797


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



0.26%


0.22%


 

 


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



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



2017


2017


2016



Second


First


Second



Quarter


Quarter


Quarter









(1) Tangible Book Value (non-GAAP)







 Total shareholders' equity

$871,062


$855,180


$825,050


 Less: goodwill and other intangible assets

(295,861)


(296,222)


(297,327)


Tax effect of other intangible assets

1,467


1,593


1,980


 Tangible common equity (non-GAAP)

$576,668


$560,551


$529,703


 Common shares outstanding

34,980


34,981


34,916


 Tangible book value (non-GAAP)

$16.49


$16.02


$15.17









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







  Net income (annualized)

$91,309


$73,762


$68,612


  Plus: amortization of intangibles (annualized)

1,449


1,453


1,648


  Tax effect of amortization of intangibles (annualized)

(507)


(509)


(577)


  Net income before amortization of intangibles (annualized)

$92,251


$74,706


$69,683









  Average total shareholders' equity

$865,663


$850,119


$819,536


  Less: average goodwill and other intangible assets

(296,074)


(296,416)


(297,542)


  Tax effect of average goodwill and other intangible assets

1,541


1,661


2,055


  Average tangible equity (non-GAAP)

$571,130


$555,364


$524,049


  Return on average tangible equity (non-GAAP)

16.15%


13.45%


13.30%









(3) Efficiency Ratio (non-GAAP)







Noninterest expense

$36,597


$36,808


$34,753









Net interest income per consolidated statements of net income

$56,570


$53,878


$49,708


Less: securities (gains) losses, net

(3,617)


(370)




Plus: taxable equivalent adjustment

1,877


1,871


1,762


Net interest income (FTE) (non-GAAP)

54,830


55,379


51,470


Noninterest income

16,265


12,996


12,448


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

$71,095


$68,375


$63,918


Efficiency ratio (non-GAAP)

51.48%


53.83%


54.37%









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







 Total shareholders' equity

$871,062


$855,180


$825,050


 Less: goodwill and other intangible assets

(295,861)


(296,222)


(297,327)


 Tax effect of goodwill and other intangible assets

1,467


1,593


1,980


 Tangible common equity (non-GAAP)

$576,668


$560,551


$529,703









 Total assets

$7,086,166


$7,065,098


$6,674,205


 Less: goodwill and other intangible assets

(295,861)


(296,222)


(297,327)


 Tax effect of goodwill and other intangible assets

1,467


1,593


1,980


 Tangible assets (non-GAAP)

$6,791,772


$6,770,469


$6,378,858


 Tangible common equity to tangible assets (non-GAAP)

8.49%


8.28%


8.30%









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







 Interest income

$64,914


$61,150


$55,850


 Less: interest expense

(8,344)


(7,272)


(6,142)


 Net interest income per consolidated statements of net income

56,570


53,878


49,708


 Plus: taxable equivalent adjustment

1,877


1,871


1,762


 Net interest income (FTE) (non-GAAP)

58,447


55,749


51,470


 Net interest income (FTE) (annualized)

234,430


226,093


207,011


 Average earning assets

$6,568,038


$6,445,745


$6,023,428


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

3.57%


3.50%


3.44%











 

 


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














For the Six Months Ended June 30,





2017


2016









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







  Net income (annualized)



$82,584


$66,668


  Plus: amortization of intangibles (annualized)



1,451


1,746


  Tax effect on amortization of intangibles (annualized)



(508)


(611)


  Net income before amortization of intangibles (annualized)



$83,527


$67,803









  Average total shareholders' equity



$857,934


$811,180


  Less: average goodwill and other intangible assets



(296,244)


(297,789)


  Tax effect on average goodwill and other intangible assets



1,601


2,131


  Average tangible equity (non-GAAP)



$563,291


$515,522


  Return on average tangible equity (non-GAAP)



14.83%


13.15%









(7) Efficiency Ratio (non-GAAP)







Noninterest expense



$73,406


$73,169









Net interest income per consolidated statements of net income



$110,449


$99,346


Less: securities (gains) losses, net



(3,987)




Plus: taxable equivalent adjustment



3,747


3,484


Net interest income (FTE) (non-GAAP)



110,209


102,830


Noninterest income



29,261


28,265


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



$139,470


$131,095


Efficiency ratio (non-GAAP)



52.63%


55.81%









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







 Interest income



$126,065


$110,870


 Less: interest expense



(15,616)


(11,524)


 Net interest income per consolidated statements of net income



110,449


99,346


 Plus: taxable equivalent adjustment



3,747


3,484


 Net interest income (FTE) (non-GAAP)



114,196


102,830


 Net interest income (FTE) (annualized)



230,285


206,790


 Average earning assets



$6,507,230


$5,940,087


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



3.53%


3.48%










 

 

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SOURCE S&T Bancorp, Inc.

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