S&T Bancorp, Inc.
S&T BANCORP INC (Form: 8-K, Received: 10/19/2017 08:29:55)
United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 16, 2017
S&T Bancorp, Inc.  
____________________________________________________________
 (Exact Name of Registrant as Specified in its Charter)
Pennsylvania  
_________________
(State or Other Jurisdiction of Incorporation)
0-12508  
_________________
(Commission File Number)
25-1434426  
_________________
(IRS Employer Identification No.)
800 Philadelphia Street, Indiana, PA  
__________________________________________  
(Address of Principal Executive Offices)
15701  
___________________  
Zip Code
Registrant's telephone number, including area code
(800) 325-2265
Former name or address, if changed since last report
Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Item 2.02 - Results of Operations and Financial Condition
On October 19, 2017, S & T Bancorp, Inc. announced by press release its earnings for the three and nine months ended September 30, 2017. A copy of the press release is attached hereto as Exhibit 99.1 . The information contained in this Report on Form 8-K furnished pursuant to Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 – Other Events
The Board of Directors of S&T Bancorp, Inc. announced by press release the declaration of a $0.22 per share cash dividend at its regular meeting held October 16, 2017. A copy of the press release is attached hereto as Exhibit 99.2 . The dividend is payable November 16, 2017 to shareholders of record on November 2, 2017. This dividend compares to a common stock dividend of $0.20 per share declared in the prior quarter.
This information in this Form 8-K and the exhibits attached to this Form 8-K 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 described in our Annual Report on Form 10-K for the year ended December 31, 2016 and other filings with the SEC. 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.
Item 9.01 – Financial Statements and Exhibits
(d) Exhibits. The exhibit listed on the Exhibit Index accompanying this Form 8-K is filed herewith.
(99.1) Press Release
(99.2) Dividend Release





SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.

 
S & T Bancorp, Inc.

October 19, 2017
   /s/ Mark Kochvar                                                
Mark Kochvar
Senior Executive Vice President,
Chief Financial Officer






Exhibit Index
Number
Description
Method of Filing
Press Release
Filed herewith
Dividend Release
Filed herewith



S & T Earnings Release - 1


CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701
mark.kochvar@stbank.com
www.stbancorp.com
 
EARN_IMAGE1A10.JPG
FOR IMMEDIATE RELEASE                  

S & T Bancorp, Inc. Announces Third Quarter 2017 Results
- EPS Increased 10% From Third Quarter 2016-


Indiana, Pa. - October 19, 2017 - S & T Bancorp, Inc. (S & T) (NASDAQ: STBA), the holding company for S & T Bank with locations in Pennsylvania, Ohio and New York, announced today its third quarter 2017 earnings. Third quarter net income was $22.7 million, or $0.65 diluted earnings per share (EPS), compared to second quarter of 2017 net income of $22.8 million, or $0.65 diluted EPS, and third quarter of 2016 net income of $20.6 million, or $0.59 diluted EPS.

Third Quarter of 2017 Highlights :
EPS increased 12% compared to the second quarter of 2017, excluding securities gains of $3.6 million in the second quarter of 2017 (non-GAAP), and improved by 10% from the third quarter of 2016.
Annualized performance metrics for the third quarter of 2017 were strong, with return on average assets of 1.27%, return on average equity of 10.23% and return on tangible equity of 15.47% (non-GAAP).
Net interest margin (FTE) (non-GAAP) improved 2 basis points to 3.59% and net interest income increased $0.9 million to $57.5 million compared to the second quarter of 2017.
Asset quality metrics improved with a decrease in nonperforming loans of $7.2 million, or 20%, compared to the second quarter of 2017.
Expenses continue to be well controlled with an efficiency ratio of 50.16% (non-GAAP).
S & T's Board of Directors approved a 10%, or $0.02 per share, increase in the quarterly cash dividend to $0.22 per share.

“We are very pleased with our solid performance in the third quarter,” said Todd Brice, president and chief executive officer of S & T. “Continued revenue growth, well managed expenses and improvement in our asset quality metrics drove strong EPS growth over the prior and year ago quarters."

Net Interest Income

Net interest income increased $0.9 million, or 1.6%, to $57.5 million for the third quarter of 2017 compared to $56.6 million in the second quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 2 basis points to 3.59% compared to 3.57% in the second quarter of 2017. The increases in net interest income and net interest margin (FTE) (non-GAAP) were primarily driven by higher short-term rates and one additional day in the third quarter compared to the second quarter of 2017.

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S & T Earnings Release - 2


Asset Quality

Asset quality trends were favorable during the third quarter across all key metrics. Nonperforming loans decreased $7.2 million, or 20%, compared to the second quarter of 2017. Net loan charge-offs decreased to $1.5 million, or 0.10% of average loans on an annualized basis in the third quarter of 2017, compared to $5.3 million , or 0.37% of average loans on an annualized basis, in the second quarter of 2017. As a result of improving asset quality, the provision for loan loss decreased to $2.9 million compared to $4.9 million in the second quarter of 2017. The allowance for loan losses to total loans was 0.97% at September 30, 2017 compared to 0.96% at June 30, 2017.

Noninterest Income and Expense

Noninterest income decreased $2.7 million to $13.6 million for the third quarter of 2017 compared to $16.3 million for the second quarter of 2017. The decrease primarily related to securities gains of $3.6 million in the second quarter of 2017. Bank owned life insurance income increased $0.7 million compared to the second quarter of 2017 due to a claim during the third quarter. Expenses remain well controlled at $36.6 million which is consistent with the second quarter of 2017. The efficiency ratio (non-GAAP) improved to 50.16% compared to 51.48% in the second quarter and 51.65% in the third quarter of 2016 due to expense control and higher revenue.

Financial Condition

Total assets increased $0.1 billion to $7.2 billion as of September 30, 2017 compared to $7.1 billion as of June 30, 2017. At September 30, 2017, $43.3 million of loans and $39.0 million of deposits were held for sale due to a branch sale that is expected to close in the fourth quarter of 2017. Portfolio loans increased $62.9 million compared to June 30, 2017. Commercial loans increased $68.7 million, which was primarily due to growth in commercial and industrial of $45.5 million, or 12.9% on an annualized basis. Total deposits increased $33.4 million with the most significant growth in money market accounts. All capital ratios increased this quarter due to strong retained earnings. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S & T declared a 10% increase in the quarterly cash dividend at its regular meeting held October 16, 2017. The dividend increased to $0.22 per share compared to $0.20 per share declared in the same period in the prior year. The dividend is payable November 16, 2017 to shareholders of record on November 2, 2017.

Conference Call

S & T will host its third quarter 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 19, 2017. To access the webcast, go to S & T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “3rd 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 October 26, 2017, by dialing 1.877.481.4010; the Conference ID # is 20495.

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

S & T Bancorp, Inc. is a $7.2 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

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S & T Earnings Release - 3


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.


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S & T Bancorp, Inc.
 
S & T Earnings Release -
4
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands, except per share data)
Quarter
 
Quarter
 
Quarter
 
INTEREST INCOME
 
 
 
 
 
 
Loans, including fees
$62,450
 
$60,558
 
$53,956
 
Investment securities:
 
 
 
 
 
 
Taxable
2,988
 
2,947
 
2,570
 
Tax-exempt
896
 
928
 
907
 
Dividends
389
 
481
 
375
 
Total Interest Income
66,723
 
64,914
 
57,808
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
Deposits
6,748
 
5,976
 
5,119
 
Borrowings and junior subordinated debt securities
2,519
 
2,368
 
1,234
 
Total Interest Expense
9,267
 
8,344
 
6,353
 
 
 
 
 
 
 
 
NET INTEREST INCOME
57,456
 
56,570
 
51,455
 
Provision for loan losses
2,850
 
4,869
 
2,516
 
Net Interest Income After Provision for Loan Losses
54,606
 
51,701
 
48,939
 
 
 
 
 
 
 
 
NONINTEREST INCOME
 
 
 
 
 
 
Securities gains (losses), net

 
3,617
 

 
Service charges on deposit accounts
3,207
 
2,997
 
3,208
 
Debit and credit card fees
3,067
 
3,042
 
3,163
 
Wealth management fees
2,406
 
2,428
 
2,565
 
Insurance fees
1,333
 
1,461
 
1,208
 
Bank owned life insurance
1,209
 
547
 
532
 
Mortgage banking
872
 
675
 
1,077
 
Other
1,457
 
1,498

1,695
 
Total Noninterest Income
13,551
 
16,265
 
13,448
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
Salaries and employee benefits
20,325

19,903

19,011
 
Net occupancy
2,692

2,751
 
2,776
 
Data processing
2,284

2,135

2,128
 
Furniture and equipment
1,890

1,810

1,932
 
Other taxes
1,208
 
1,083
 
1,080
 
FDIC insurance
1,152

1,185
 
1,005
 
Professional services and legal
870

958
 
817
 
Marketing
766

948

896
 
Other
5,366

5,824

4,794
 
Total Noninterest Expense
36,553

36,597

34,439
 
 
 
 
 
 
 
 
Income Before Taxes
31,604
 
31,369
 
27,948
 
Provision for income taxes
8,883
 
8,604
 
7,367
 
 
 
 
 
 
 
 
Net Income
$22,721
 
$22,765
 
$20,581
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
Shares outstanding at end of period
34,979,192
 
34,980,280
 
34,913,023
 
Average shares outstanding - diluted
34,960,139
 
34,906,496
 
34,768,505
 
Diluted earnings per share
$0.65
 
$0.65
 
$0.59
 
Dividends declared per share
$0.20
 
$0.20
 
$0.19
 
Dividend yield (annualized)
2.02
%
 
2.23
%
 
2.62
%
 
Dividends paid to net income
30.69
%
 
30.60
%
 
32.13
%
 
Book value
$25.37
 
$24.90
 
$24.02
 
Tangible book value   (1)
$16.96
 
$16.49
 
$15.57
 
Market value
$39.58

$35.86
 
$28.99
 
 
 
 
 
 
 
 
Profitability Ratios (annualized)
 
 
 
 
 
 
Return on average assets
1.27
%
 
1.29
%
 
1.23
%
 
Return on average shareholders' equity
10.23
%
 
10.55
%
 
9.85
%
 
Return on average tangible shareholders' equity (2)
15.47
%
 
16.15
%
 
15.46
%
 
Efficiency ratio (FTE)   (3)
50.16
%
 
51.48
%
 
51.65
%
 

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S & T Bancorp, Inc.
 
S & T Earnings Release -
5
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands, except per share data)
 
 
2017
 
2016
 
INTEREST INCOME
 
 
 
 
 
 
Loans, including fees
 
 
$179,908
 
$157,133
 
Investment securities:
 
 
 
 
 
 
Taxable
 
 
8,783
 
7,704
 
Tax-exempt
 
 
2,744
 
2,764
 
Dividends
 
 
1,352
 
1,077
 
Total Interest Income
 
 
192,787
 
168,678
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
Deposits
 
 
18,103
 
14,403
 
Borrowings and junior subordinated debt securities
 
 
6,779
 
3,474
 
Total Interest Expense
 
 
24,882
 
17,877
 
 
 
 
 
 
 
 
NET INTEREST INCOME
 
 
167,905
 
150,801
 
Provision for loan losses
 
 
12,901
 
12,379
 
Net Interest Income After Provision for Loan Losses
 
 
155,004
 
138,422
 
 
 
 
 
 
 
 
NONINTEREST INCOME
 
 
 
 
 
 
Securities gains (losses), net
 
 
3,987
 

 
Service charges on deposit accounts
 
 
9,218
 
9,272
 
Debit and credit card fees
 
 
8,952
 
8,818
 
Wealth management fees
 
 
7,237
 
7,947
 
Insurance fees
 
 
4,258
 
4,187
 
Bank owned life insurance
 
 
2,249
 
1,569
 
Mortgage banking
 
 
2,280
 
2,185
 
Gain on sale of credit card portfolio
 
 

 
2,066
 
Other
 
 
4,631
 
5,669
 
Total Noninterest Income
 
 
42,812
 
41,713
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
Salaries and employee benefits
 
 
60,770
 
57,539
 
Net occupancy
 
 
8,258
 
8,413
 
Data processing
 
 
6,670
 
6,758
 
Furniture and equipment
 
 
5,746
 
5,580
 
Other taxes
 
 
3,268
 
3,076
 
FDIC insurance
 
 
3,461
 
2,938
 
Professional services and legal
 
 
2,871
 
2,545
 
Marketing
 
 
2,468
 
2,872
 
Other
 
 
16,448
 
17,886
 
Total Noninterest Expense
 
 
109,960
 
107,607
 
 
 
 
 
 
 
 
Income Before Taxes
 
 
87,856
 
72,528
 
Provision for income taxes
 
 
24,182
 
18,795
 
 
 
 
 
 
 
 
Net Income
 
 
$63,674
 
$53,733
 
 
 
 
 
 
 
 
Per Share Data:
 
 
 
 
 
 
Average shares outstanding - diluted
 
 
34,930,509
 
34,747,177
 
Diluted earnings per share
 
 
$1.82
 
$1.54
 
Dividends declared per share
 
 
$0.60
 
$0.57
 
Dividends paid to net income
 
 
32.82
%
 
36.89
%
 
 
 
 
 
 
 
 
Profitability Ratios (annualized)
 
 
 
 
 
 
Return on average assets
 
 
1.21
%
 
1.10
%
 
Return on average shareholders' equity
 
 
9.83
%
 
8.78
%
 
Return on average tangible shareholders' equity (6)
 
 
15.05
%
 
13.95
%
 
Efficiency ratio (FTE) (7)
 
 
51.78
%
 
54.41
%
 


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S & T Bancorp, Inc.
 
S & T Earnings Release -
6
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
ASSETS
 
 
 
 
 
 
Cash and due from banks, including interest-bearing deposits
$114,440
 
$125,863
 
$125,163
 
Securities available-for-sale, at fair value
697,954
 
689,388
 
671,128
 
Loans held for sale
47,936
 
23,120
 
11,694
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
2,681,693
 
2,664,642
 
2,427,164
 
Commercial and industrial
1,446,811
 
1,401,283
 
1,344,297
 
Commercial construction
432,887
 
426,754
 
402,124
 
Total Commercial Loans
4,561,391
 
4,492,679
 
4,173,585
 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
697,367
 
706,143
 
692,574
 
Home equity
487,806
 
484,960
 
483,935
 
Installment and other consumer
69,644
 
70,068
 
62,288
 
Consumer construction
4,550
 
3,969
 
5,852
 
Total Consumer Loans
1,259,367
 
1,265,140
 
1,244,649
 
Total portfolio loans
5,820,758
 
5,757,819
 
5,418,234
 
Allowance for loan losses
(56,712)
 
(55,351)
 
(53,793)
 
Total portfolio loans, net
5,764,046
 
5,702,468
 
5,364,441
 
Federal Home Loan Bank and other restricted stock, at cost
33,120
 
33,417
 
28,331
 
Goodwill
291,670
 
291,670
 
291,670
 
Other assets
221,013
 
220,240
 
225,778
 
Total Assets
$7,170,179
 
$7,086,166
 
$6,718,205
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
Noninterest-bearing demand
$1,348,939
 
$1,335,768
 
$1,232,469
 
Interest-bearing demand
646,195
 
636,904
 
657,326
 
Money market
1,036,726
 
950,619
 
764,125
 
Savings
940,989
 
1,010,348
 
1,026,234
 
Certificates of deposit
1,431,431
 
1,476,223
 
1,465,277
 
Deposits held for sale
38,960
 

 

 
Total Deposits
5,443,240
 
5,409,862
 
5,145,431
 
 
 
 
 
 
 
 
Borrowings:
 
 
 
 
 
 
Securities sold under repurchase agreements
39,923
 
46,489
 
40,949
 
Short-term borrowings
685,000
 
645,000
 
565,000
 
Long-term borrowings
12,911
 
13,518
 
15,303
 
Junior subordinated debt securities
45,619
 
45,619
 
45,619
 
Total Borrowings
783,453
 
750,626
 
666,871
 
Other liabilities
55,910
 
54,616
 
67,196
 
Total Liabilities
6,282,603
 
6,215,104
 
5,879,498
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Total Shareholders' Equity
887,576
 
871,062
 
838,707
 
Total Liabilities and Shareholders' Equity
$7,170,179
 
$7,086,166
 
$6,718,205
 
 
 
 
 
 
 
 
Capitalization Ratios
 
 
 
 
 
 
Shareholders' equity / assets
12.38
%
 
12.29
%
 
12.48
%
 
Tangible common equity / tangible assets   (4)
8.63
%
 
8.49
%
 
8.46
%
 
Tier 1 leverage ratio
9.25
%
 
9.01
%
 
9.02
%
 
Common equity tier 1 capital
10.70
%
 
10.53
%
 
10.01
%
 
Risk-based capital - tier 1
11.05
%
 
10.89
%
 
10.37
%
 
Risk-based capital - total
12.54
%
 
12.37
%
 
11.87
%
 


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S & T Bancorp, Inc.
 
S & T Earnings Release -
7
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Net Interest Margin (FTE) (QTD Averages)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Interest-bearing deposits with banks
$53,794
1.25%
$48,547
0.91%
$37,852
0.52%
Securities available-for-sale, at fair value
690,986
2.46%
709,208
2.48%
678,910
2.39%
Loans held for sale
15,789
3.88%
5,053
2.61%
9,443
4.20%
Commercial real estate
2,678,835
4.38%
2,664,696
4.30%
2,411,533
4.12%
Commercial and industrial
1,404,047
4.45%
1,430,080
4.30%
1,344,071
4.04%
Commercial construction
425,228
4.27%
421,456
4.09%
389,019
3.64%
Total Commercial Loans
4,508,110
4.39%
4,516,232
4.28%
4,144,623
4.05%
Residential mortgage
702,702
4.10%
700,406
4.14%
681,925
4.14%
Home equity
485,501
4.37%
481,039
4.38%
480,527
3.94%
Installment and other consumer
70,118
6.57%
69,899
6.46%
60,052
6.52%
Consumer construction
4,486
4.49%
4,572
4.93%
5,946
3.86%
Total Consumer Loans
1,262,807
4.34%
1,255,916
4.36%
1,228,450
4.18%
Total portfolio loans
5,770,917
4.38%
5,772,148
4.30%
5,373,073
4.08%
Total loans
5,786,706
4.38%
5,777,201
4.30%
5,382,516
4.08%
Federal Home Loan Bank and other restricted stock
30,184
4.61%
33,082
4.60%
24,454
4.52%
Total Interest-earning Assets
6,561,670
4.15%
6,568,038
4.08%
6,123,732
3.87%
Noninterest-earning assets
510,681
 
507,425
 
519,011
 
Total Assets
$7,072,351
 
$7,075,463
 
$6,642,743
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing demand
$647,442
0.25%
$649,440
0.22%
$670,807
0.17%
Money market
999,892
0.87%
937,272
0.72%
732,820
0.46%
Savings
979,767
0.21%
1,019,220
0.21%
1,034,018
0.20%
Certificates of deposit
1,457,649
0.98%
1,457,107
0.93%
1,490,106
0.92%
Total interest-bearing deposits
4,084,750
0.66%
4,063,039
0.59%
3,927,751
0.52%
Securities sold under repurchase agreements
45,158
0.16%
50,082
0.06%
44,927
0.01%
Short-term borrowings
600,893
1.30%
682,584
1.09%
459,043
0.66%
Long-term borrowings
13,162
3.01%
13,765
2.96%
15,545
2.85%
Junior subordinated debt securities
45,619
3.71%
45,619
3.60%
45,619
3.15%
Total borrowings
704,832
1.42%
792,050
1.20%
565,134
0.87%
Total interest-bearing liabilities
4,789,582
0.77%
4,855,089
0.69%
4,492,885
0.56%
Noninterest-bearing liabilities
1,401,755
 
1,354,711
 
1,318,683
 
Shareholders' equity
881,014
 
865,663
 
831,175
 
Total Liabilities and Shareholders' Equity
$7,072,351
 
$7,075,463
 
$6,642,743
 
 
 
 
 
 
 
 
Net Interest Margin   (5)
 
3.59%
 
3.57%
 
3.46%


- more -

 
 
 
 
S & T Bancorp, Inc.
 
S & T Earnings Release -
8
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2017
 
2016
 
Net Interest Margin (FTE) (YTD Averages)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Interest-bearing deposits with banks
 
 
$56,126
0.99%
$41,402
0.51%
Securities available-for-sale, at fair value
 
 
699,150
2.46%
675,690
2.41%
Loans held for sale
 
 
7,734
3.63%
16,033
5.97%
Commercial real estate
 
 
2,623,360
4.31%
2,305,795
4.13%
Commercial and industrial
 
 
1,415,941
4.30%
1,340,629
3.95%
Commercial construction
 
 
433,748
4.02%
392,520
3.70%
Total Commercial Loans
 
 
4,473,049
4.28%
4,038,944
4.03%
Residential mortgage
 
 
700,996
4.10%
659,942
4.14%
Home equity
 
 
482,336
4.30%
474,293
4.07%
Installment and other consumer
 
 
69,401
6.51%
65,217
6.33%
Consumer construction
 
 
4,807
4.33%
7,200
4.09%
Total Consumer Loans
 
 
1,257,540
4.31%
1,206,652
4.23%
Total portfolio loans
 
 
5,730,589
4.29%
5,245,596
4.08%
Total loans
 
 
5,738,323
4.29%
5,261,629
4.08%
Federal Home Loan Bank and other restricted stock
 
 
31,977
4.63%
23,027
4.52%
Total Interest-earning Assets
 
 
6,525,576
4.06%
6,001,748
3.87%
Noninterest-earning assets
 
 
509,750
 
519,913
 
Total Assets
 
 
$7,035,326
 
$6,521,661
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing demand
 
 
$643,423
0.21%
$649,515
0.16%
Money market
 
 
958,619
0.74%
677,891
0.40%
Savings
 
 
1,013,318
0.21%
1,041,802
0.19%
Certificates of deposit
 
 
1,439,715
0.94%
1,488,732
0.90%
Total interest-bearing deposits
 
 
4,055,075
0.60%
3,857,940
0.50%
Securities sold under repurchase agreements
 
 
48,031
0.07%
53,858
0.01%
Short-term borrowings
 
 
651,494
1.07%
385,394
0.64%
Long-term borrowings
 
 
13,759
2.96%
62,109
1.21%
Junior subordinated debt securities
 
 
45,619
3.59%
45,619
3.08%
Total borrowings
 
 
758,903
1.19%
546,980
0.85%
Total Interest-bearing Liabilities
 
 
4,813,978
0.69%
4,404,920
0.54%
Noninterest-bearing liabilities
 
 
1,355,636
 
1,298,847
 
Shareholders' equity
 
 
865,712
 
817,894
 
Total Liabilities and Shareholders' Equity
 
 
$7,035,326
 
$6,521,661
 
 
 
 
 
 
 
 
Net Interest Margin (8)
 
 
 
3.55%
 
3.47%


- more -

 
 
 
 
S & T Bancorp, Inc.
 
S & T Earnings Release -
9
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Nonperforming Loans (NPL)
 
 
 
 
 
 
Commercial loans:
 
% NPL
 
% NPL
 
% NPL
Commercial real estate
$6,571
0.25%
$7,199
0.27%
$7,551
0.31%
Commercial and industrial
7,349
0.51%
17,418
1.24%
11,890
0.88%
Commercial construction
4,068
0.94%
2,313
0.54%
6,653
1.65%
Total Nonperforming Commercial Loans
17,988
0.39%
26,930
0.60%
26,094
0.63%
Consumer loans:
 
 
 
 
 
 
Residential mortgage
7,782
1.11%
7,056
0.99%
11,400
1.63%
Home equity
3,675
0.75%
2,642
0.54%
2,955
0.61%
Installment and other consumer
48
0.07%
41
0.06%
44
0.07%
Total Nonperforming Consumer Loans
11,505
0.91%
9,739
0.76%
14,399
1.16%
Total Nonperforming Loans
$29,493
0.50%
$36,669
0.63%
$40,493
0.75%
 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Loan Charge-offs
 
 
 
 
 
 
Charge-offs
$2,660
 
$5,822
 
$1,500
 
Recoveries
(1,171)
 
(488)
 
(564)
 
Net Loan Charge-offs
$1,489
 
$5,334
 
$936
 
 
 
 
 
 
 
 
Net Loan Charge-offs
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
($145)
 
$1,518
 
($171)
 
Commercial and industrial
401
 
2,613
 
245
 
Commercial construction
980
 
(113)
 
146
 
Total Commercial Loan Charge-offs
1,236
 
4,018
 
220
 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
44
 
695
 
331
 
Home equity
10
 
354
 
(1)
 
Installment and other consumer
243
 
295
 
391
 
Consumer construction
(44)
 
(28)
 
(5)
 
Total Consumer Loan Charge-offs
253
 
1,316
 
716
 
Total Net Loan Charge-offs
$1,489
 
$5,334
 
$936
 
 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2017
 
2016
 
Loan Charge-offs
 
 
 
 
 
 
Charge-offs
 
 
$11,423
 
$8,623
 
Recoveries
 
 
(2,459)
 
(1,890)
 
Net Loan Charge-offs
 
 
$8,964
 
$6,733
 
 
 
 
 
 
 
 
Net Loan Charge-offs
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
 
 
$1,685
 
$1,146
 
Commercial and industrial
 
 
3,542
 
2,655
 
Commercial construction
 
 
1,255
 
1,088
 
Total Commercial Loan Charge-offs
 
 
6,482
 
4,889
 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
 
 
1,220
 
506
 
Home equity
 
 
546
 
158
 
Installment and other consumer
 
 
795
 
1,295
 
Consumer construction
 
 
(79)
 
(115)
 
Total Consumer Loan Charge-offs
 
 
2,482
 
1,844
 
Total Net Loan Charge-offs
 
 
$8,964
 
$6,733
 


- more -

 
 
 
 
S & T Bancorp, Inc.
 
S & T Earnings Release -
10
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Asset Quality Data
 
 
 
 
 
 
Nonperforming loans
$29,493
 
$36,669
 
$40,493
 
Assets acquired through foreclosure or repossession
1,033
 
1,620
 
512
 
Nonperforming assets
30,526
 
38,289
 
41,005
 
Troubled debt restructurings (nonperforming)
10,203
 
10,105
 
15,095
 
Troubled debt restructurings (performing)
15,605
 
15,080
 
12,936
 
Total troubled debt restructurings
25,808
 
25,185
 
28,031
 
Nonperforming loans / loans
0.50
%
 
0.63
%
 
0.75
%
 
Nonperforming assets / loans plus OREO
0.52
%
 
0.66
%
 
0.76
%
 
Allowance for loan losses / total portfolio loans
0.97
%
 
0.96
%
 
0.99
%
 
Allowance for loan losses / nonperforming loans
192
%
 
151
%
 
133
%
 
Net loan charge-offs (recoveries)
$1,489
 
$5,334
 
$936
 
Net loan charge-offs (recoveries)(annualized) / average loans
0.10
%
 
0.37
%
 
0.07
%
 

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2017
 
2016
 
Asset Quality Data
 
 
 
 
 
 
Net loan charge-offs (recoveries)
 
 
$8,964
 
$6,733
 
Net loan charge-offs (recoveries)(annualized) / average loans
 
 
0.21
%
 
0.17
%
 


- more -

 
 
 
 
S & T Bancorp, Inc.
 
S & T Earnings Release -
11
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
 
2017
 
2017
 
2016
 
 
Third
 
Second
 
Third
 
 
Quarter
 
Quarter
 
Quarter
 
 
 
 
 
 
 
 
(1)   Tangible Book Value (non-GAAP)
 
 
 
 
 
 
 Total shareholders' equity
$887,576
 
$871,062
 
$838,707
 
 Less: goodwill and other intangible assets
(295,627)
 
(295,861)
 
(296,953)
 
Tax effect of other intangible assets
1,385
 
1,467
 
1,849
 
 Tangible common equity (non-GAAP)
$593,334
 
$576,668
 
$543,603
 
 Common shares outstanding
34,979
 
34,980
 
34,913
 
 Tangible book value (non-GAAP)
$16.96
 
$16.49
 
$15.57
 
 
 
 
 
 
 
 
(2)  Return on Average Tangible Shareholders' Equity (non-GAAP)
 
 
 
 
 
 
  Net income (annualized)
$90,144
 
$91,309
 
$81,877
 
  Plus: amortization of intangibles (annualized)
930
 
1,449
 
1,490
 
  Tax effect of amortization of intangibles (annualized)
(326)
 
(507)
 
(521)
 
  Net income before amortization of intangibles (annualized)
$90,748
 
$92,251
 
$82,846
 
 
 
 
 
 
 
 
  Average total shareholders' equity
$881,014
 
$865,663
 
$831,175
 
  Less: average goodwill and other intangible assets
(295,775)
 
(296,074)
 
(297,154)
 
  Tax effect of average goodwill and other intangible assets
1,437
 
1,541
 
1,919
 
  Average tangible equity (non-GAAP)
$586,676
 
$571,130
 
$535,940
 
  Return on average tangible equity (non-GAAP)
15.47
%
 
16.15
%
 
15.46
%
 
 
 
 
 
 
 
 
(3)   Efficiency Ratio (non-GAAP)
 
 
 
 
 
 
Noninterest expense
$36,553
 
$36,597
 
$34,439
 
 
 
 
 
 
 
 
Net interest income per consolidated statements of net income
$57,456
 
$56,570
 
$51,455
 
Less: securities (gains) losses, net

 
(3,617
)
 

 
Plus: taxable equivalent adjustment
1,867
 
1,877
 
1,771
 
Net interest income (FTE) (non-GAAP)
59,323
 
54,830
 
53,226
 
Noninterest income
13,551
 
16,265
 
13,448
 
Net interest income (FTE) (non-GAAP) plus noninterest income
$72,874
 
$71,095
 
$66,674
 
Efficiency ratio (non-GAAP)
50.16
%
 
51.48
%
 
51.65
%
 
 
 
 
 
 
 
 
(4)  Tangible Common Equity / Tangible Assets (non-GAAP)
 
 
 
 
 
 
 Total shareholders' equity
$887,576
 
$871,062
 
$838,707
 
 Less: goodwill and other intangible assets
(295,627)
 
(295,861)
 
(296,953)
 
 Tax effect of goodwill and other intangible assets
1,385
 
1,467
 
1,849
 
 Tangible common equity (non-GAAP)
$593,334
 
$576,668
 
$543,603
 
 
 
 
 
 
 
 
 Total assets
$7,170,179
 
$7,086,166
 
$6,718,205
 
 Less: goodwill and other intangible assets
(295,627)
 
(295,861)
 
(296,953)
 
 Tax effect of goodwill and other intangible assets
1,385
 
1,467
 
1,849
 
 Tangible assets (non-GAAP)
$6,875,937
 
$6,791,772
 
$6,423,101
 
 Tangible common equity to tangible assets (non-GAAP)
8.63
%
 
8.49
%
 
8.46
%
 
 
 
 
 
 
 
 
(5)  Net Interest Margin Rate (FTE) (non-GAAP)
 
 
 
 
 
 
 Interest income
$66,723
 
$64,914
 
$57,808
 
 Less: interest expense
(9,267)
 
(8,344)
 
(6,353)
 
 Net interest income per consolidated statements of net income
57,456
 
56,570
 
51,455
 
 Plus: taxable equivalent adjustment
1,867
 
1,877
 
1,771
 
 Net interest income (FTE) (non-GAAP)
59,323
 
58,447
 
53,226
 
 Net interest income (FTE) (annualized)
235,358
 
234,430
 
211,747
 
 Average earning assets
$6,561,670
 
$6,568,038
 
$6,123,731
 
 Net interest margin - (FTE) (non-GAAP)
3.59
%
 
3.57
%
 
3.46
%
 


- more -

 
 
 
 
S & T Bancorp, Inc.
 
S & T Earnings Release -
12
Consolidated Selected Financial Data
 
 
 
Unaudited
 
 
 

 
 
 
Nine months ended September 30,
 
 
 
 
2017
 
2016
 
 
 
 
 
 
 
 
(6)  Return on Average Tangible Shareholders' Equity (non-GAAP)
 
 
 
 
 
 
  Net income (annualized)
 
 
$85,131
 
$71,775
 
  Plus: amortization of intangibles (annualized)
 
 
1,275
 
1,660
 
  Tax effect on amortization of intangibles (annualized)
 
 
(446)
 
(581)
 
  Net income before amortization of intangibles (annualized)
 
 
$85,960
 
$72,854
 
 
 
 
 
 
 
 
  Average total shareholders' equity
 
 
$865,712
 
$817,894
 
  Less: average goodwill and other intangible assets
 
 
(296,086)
 
(297,576)
 
  Tax effect on average goodwill and other intangible assets
 
 
1,546
 
2,060
 
  Average tangible equity (non-GAAP)
 
 
$571,172
 
$522,378
 
  Return on average tangible equity (non-GAAP)
 
 
15.05
%
 
13.95
%
 
 
 
 
 
 
 
 
(7)   Efficiency Ratio (non-GAAP)
 
 
 
 
 
 
Noninterest expense
 
 
$109,960
 
$107,607
 
 
 
 
 
 
 
 
Net interest income per consolidated statements of net income
 
 
$167,905
 
$150,801
 
Less: securities (gains) losses, net
 
 
(3,987)
 

 
Plus: taxable equivalent adjustment
 
 
5,614
 
5,254
 
Net interest income (FTE) (non-GAAP)
 
 
169,532
 
156,055
 
Noninterest income
 
 
42,812
 
41,713
 
Net interest income (FTE) (non-GAAP) plus noninterest income
 
 
$212,344
 
$197,768
 
Efficiency ratio (non-GAAP)
 
 
51.78
%
 
54.41
%
 
 
 
 
 
 
 
 
(8)  Net Interest Margin Rate (FTE) (non-GAAP)
 
 
 
 
 
 
 Interest income
 
 
$192,787
 
$168,678
 
 Less: interest expense
 
 
(24,882)
 
(17,877)
 
 Net interest income per consolidated statements of net income
 
 
167,905
 
150,801
 
 Plus: taxable equivalent adjustment
 
 
5,614
 
5,254
 
 Net interest income (FTE) (non-GAAP)
 
 
173,519
 
156,055
 
 Net interest income (FTE) (annualized)
 
 
231,994
 
208,453
 
 Average earning assets
 
 
$6,525,576
 
$6,001,748
 
 Net interest margin - (FTE) (non-GAAP)
 
 
3.55
%
 
3.47
%
 


# # #




CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701
mark.kochvar@stbank.com
www.stbancorp.com
 
EARN_IMAGE1A10.JPG
FOR IMMEDIATE RELEASE

S & T Bancorp, Inc. Increases Dividend by 10%


Indiana, Pa. - October 17, 2017 - The Board of Directors of S & T Bancorp, Inc. (S & T) (NASDAQ: STBA), the holding company for S & T Bank with locations in Pennsylvania, Ohio and New York, declared a $0.22 per share cash dividend at its regular meeting held October 16, 2017. This is an increase of 10%, or $0.02 per share, compared to a dividend of $0.20 per share declared in the prior quarter.
"We are very pleased to announce a 10% increase in the quarterly dividend," said Charles Urtin, chairman of S & T Bancorp, Inc. "The dividend increase reflects our confidence in S & T's future earnings potential and the ability to maintain a strong capital position."
The annualized yield using the October 16, 2017 closing price of $40.99 is 2.1%. The dividend is payable November 16, 2017 to shareholders of record on November 2, 2017.
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.