INDIANA, Pa., Oct. 24, 2019 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) 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%.
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% | ||||||
SOURCE S&T Bancorp, Inc.
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