S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2019 Results

INDIANA, Pa., Jan. 30, 2020 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) STBA, the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2019 earnings. Net income was $22.3 million, or $0.62 per diluted share, for the fourth quarter compared to net income of $26.9 million, or $0.79 per diluted share, for the third quarter of 2019, and $26.9 million, or $0.77 per diluted share, for the fourth quarter of 2018.  The merger with DNB Financial Corporation (DNB) closed on November 30, 2019 and the fourth quarter of 2019 results included merger related expenses of $10.2 million, or $0.23 per diluted share.

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

Net income was $98.2 million, or $2.82 per diluted share, for the year ended December 31, 2019 compared to net income of $105.3 million, or $3.01 per diluted share, for 2018. The full year 2019 results included $11.4 million, or $0.27 per diluted share, of merger related expenses.

Fourth Quarter of 2019 Highlights:

  • S&T expands further into eastern Pennsylvania with the closing of the DNB merger.
  • S&T now has $8.8 billion in assets and a market capitalization of approximately $1.6 billion at December 31, 2019.
  • Return on average assets (ROA) was 1.11%, return on average equity (ROE) was 8.30% and return on average tangible equity (ROTE) was 12.04% (non-GAAP). Excluding $10.2 million of merger related expenses ROA was 1.53% (non-GAAP), ROE was 11.38% (non-GAAP) and ROTE was 16.46% (non-GAAP).
  • S&T's Board of Directors declared a $0.28 per share dividend which is an increase of 3.7% compared to a $0.27 dividend in the same period last year.

Full Year 2019 Highlights:

  • In addition to the acquisition of DNB in eastern Pennsylvania, S&T expanded its presence in Ohio with the opening of new branches in central Ohio (Hilliard) and northeast Ohio (Cuyahoga Falls) and loan production offices in Upstate NY (Buffalo) and eastern Pennsylvania (Greater Berks).
  • Portfolio loans increased $291 million, or 5%, excluding the DNB merger.
  • Deposits increased $372 million, or 6.6%, excluding the DNB merger.
  • ROA was 1.32%, ROE was 9.98% and ROTE was 14.41% (non-GAAP). Excluding $11.4 million of merger related expenses ROA was 1.45% (non-GAAP), ROE was 10.92% (non-GAAP) and ROTE was 15.76% (non-GAAP).
  • Full year 2019 dividends declared increased 10.1% to $1.09 compared to $0.99 in 2018.

"We are proud of the growth achieved during 2019 through expansion in our existing markets and extending our eastern Pennsylvania presence with the closing of the DNB merger," said Todd Brice, chief executive officer of S&T. "We have a lot of momentum as we enter 2020 with great people and a solid plan to execute on our market-based strategy."

Merger with DNB Financial Corporation

The merger between S&T and DNB Financial Corporation (DNB) closed on November 30, 2019. The merger expanded S&T's footprint in eastern Pennsylvania gaining a new presence in the counties of Chester, Delaware and Philadelphia. The merger was valued at $201 million, or $37.72 per share, and added approximately $900 million of loans and $991 million of deposits at December 31, 2019. DNB's results were included in S&T's consolidated financial statements beginning December 1, 2019. Merger related expenses were $10.2 million, or $0.23 per diluted share, for the fourth quarter of 2019 and $11.4 million, or $0.27 per diluted share for the full year 2019.

Fourth Quarter of 2019 Results (three months ended December 31, 2019)

Net Interest Income

Net interest income increased $3.2 million to $64.4 million compared to $61.2 million in the third quarter of 2019. The increase in net interest income was due to one month of net interest income from the merger.  Average loans, excluding the merger, increased $116.5 million compared to the third quarter of 2019. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 7 basis points to 3.55% compared to 3.62% in the prior quarter primarily due to decreases in short-term rates. Loan rates decreased 18 basis points to 4.77% and total interest-bearing deposit costs decreased 14 basis points to 1.30%.

Asset Quality

Net charge-offs were $2.0 million, or 0.12% of average loans on an annualized basis, in the fourth quarter of 2019 compared to net charge-offs of $4.3 million, or 0.28% of average loans on an annualized basis, in the third quarter of 2019. The provision for loan losses was $2.1 million in the fourth quarter of 2019 compared to $4.9 million in the third quarter of 2019. Total nonperforming loans increased $4.1 million to $54.1 million, or 0.76% of total loans, at December 31, 2019 compared to $50.0 million, or 0.81% of total loans, at September 30, 2019. The allowance for loan losses was $62.2 million, or 0.87% of total portfolio loans, at December 31, 2019 compared to $62.1 million, or 1.00% of total portfolio loans, at September 30, 2019. The decrease in the allowance for loan loss to total portfolio loans is related to the addition of approximately $900 million of loans from the merger which were recorded at fair value on November 30, 2019.

Noninterest Income and Expense

Noninterest income increased $2.1 million to $15.2 million in the fourth quarter of 2019 compared to $13.1 million in the third quarter of 2019. The increase in other income of $1.6 million related mainly to higher commercial loan swap fees of $0.9 million during the quarter as we continue to see a high demand for this product in the current rate environment.

Noninterest expense increased $12.5 million to $50.2 million in the fourth quarter of 2019 compared to $37.7 million in the third quarter of 2019. The increase in noninterest expense was mainly due to a $9.6 million increase in merger related expenses compared to the third quarter of 2019. FDIC insurance expense increased $0.9 million compared to the third quarter of 2019 due to the Small Bank Assessment Credits that were received in the third quarter of 2019. The fourth quarter FDIC assessment was partially offset by $0.5 million of credits. Other taxes decreased $2.4 million compared to the third quarter of 2019 mainly due to a one-time adjustment related to a state sales tax assessment.

Financial Condition

Total assets increased $1.2 billion to $8.8 billion at December 31, 2019 compared to $7.6 billion at September 30, 2019. The merger added $1.1 billion of assets, $900 million of loans and $991 million of deposits.  Excluding the merger, total portfolio loans increased $42.1 million, or 2.7% annualized, compared to September 30, 2019 with growth mainly in the commercial real estate portfolio. Excluding the merger, total deposits increased $63.3 million, or 4.2% annualized, with growth mainly in money market and demand accounts.

All capital ratios increased at December 31, 2019 compared to September 30, 2019. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2019 Results (twelve months ended December 31, 2019)

Full year net income was $98.2 million, or $2.82 per diluted share, for the year ended December 31, 2019 compared to net income of $105.3 million, or $3.01 per diluted share, for 2018. DNB's results were included in S&T's consolidated financial statements beginning December 1, 2019. Merger related expenses were $11.4 million, or $0.27 per diluted share, for the full year 2019.

Net interest income increased $12.4 million, or 5.3% compared to 2018. Net interest margin (FTE) (non-GAAP) remained unchanged at 3.64% for both 2019 and 2018. Noninterest income increased $3.4 million compared to the prior year related to higher other income of $6.1 million offset by a decrease in wealth management fees of $1.5 million and a $1.9 million gain on the sale of a majority interest of our insurance business in 2018.  The increase in other income related mainly to higher commercial loan swap fees of $4.3 million due to a high demand for this product in the current rate environment. Noninterest expense increased $21.7 million in part due to merger related expenses of $11.4 million, an increase of $7.9 million in salaries and employee benefits and an increase of $3.8 million in data processing and information technology.  These expense increases were partially offset by a $2.8 million decrease in other taxes mainly due to a one-time adjustment related to a state sales tax assessment and a decrease of $2.5 million in FDIC insurance primarily due to Small Bank Assessment credits that were received during 2019.  The efficiency ratio (non-GAAP) for 2019, excluding merger related expenses, was 51.39% compared to 50.60% for 2018. To view an infographic featuring 2019 highlights, click here.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend at its regular meeting held January 27, 2020. This is an increase of 3.7% compared to a common stock dividend of $0.27 per share declared in the same period in the prior year. The dividend is payable February 27, 2020 to shareholders of record on February 13, 2020. Dividends declared in 2019 increased $0.10, or 10.1%, to $1.09 compared to $0.99 for 2018.

Non-GAAP Financial Measures

This release presents certain non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, see "Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures" in the accompanying tables.

Conference Call

S&T will host its fourth quarter 2019 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 30, 2020. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2019 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 February 6, 2020, by dialing 1.877.481.4010; the Conference ID is 57050.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is an $8.8 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, Eastern 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; 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





Fourth



Third



Fourth



(dollars in thousands, except per share data)

Quarter



Quarter



Quarter



INTEREST AND DIVIDEND INCOME













Loans, including fees

$77,426





$75,080





$71,515





Investments:













Taxable

3,744





3,552





3,746





Tax-exempt

836





787





845





Dividends

451





394





483





Total Interest and Dividend Income

82,457





79,813





76,589



















INTEREST EXPENSE













Deposits

15,783





16,207





12,973





Borrowings and junior subordinated debt securities

2,262





2,410





3,774





Total Interest Expense

18,045





18,617





16,747



















NET INTEREST INCOME

64,412





61,196





59,842





Provision for loan losses

2,105





4,913





2,716





Net Interest Income After Provision for Loan Losses

62,307





56,283





57,126



















NONINTEREST INCOME













Net (loss) gain on sale of securities

(26)













Service charges on deposit accounts

3,540





3,412





3,071





Debit and credit card

3,454





3,475





3,192





Wealth management

2,412





2,101





2,302





Mortgage banking

765





594





630





Other

5,086





3,481





1,900





Total Noninterest Income

15,231





13,063





11,095



















NONINTEREST EXPENSE













Salaries and employee benefits

22,851





19,936





18,913





Merger related expenses

10,179





552









Data processing and information technology

4,141





3,681





3,024





Net occupancy

3,219





2,898





2,697





Furniture, equipment and software

2,337





2,090





1,988





Marketing

1,116





1,062





1,276





Professional services and legal

862





1,054





1,011





FDIC insurance

222





(675)





645





Other taxes

(818)





1,540





1,255





Other

6,069





5,529





5,606





Total Noninterest Expense

50,178





37,667





36,415



















Income Before Taxes

27,360





31,679





31,806





Provision for income taxes

5,091





4,743





4,952



















Net Income

$22,269





$26,936





$26,854



















Per Share Data:













Shares outstanding at end of period

39,560,304





34,244,719





34,683,874





Average diluted shares outstanding

35,913,237





34,170,281





34,867,171





Diluted earnings per share

$0.62





$0.79





$0.77





Dividends declared per share

$0.28





$0.27





$0.27





Dividend yield (annualized)

2.78%





2.96%





2.85%





Dividends paid to net income

42.94%





34.30%





35.09%





Book value

$30.13





$28.69





$26.98





Tangible book value (1)

$20.52





$20.25





$18.63





Market value

$40.29





$36.53





$37.84



















Profitability Ratios (annualized)













Return on average assets

1.11%





1.45%





1.50%





Return on average shareholders' equity

8.30%





10.97%





11.50%





Return on average tangible shareholders' equity (2)

12.04%





15.69%





16.82%





Efficiency ratio (FTE) (3)

49.64%





49.36%





50.64%





 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







For the Twelve Months Ended December 31,

(dollars in thousands, except per share data)





2019



2018



INTEREST AND DIVIDEND INCOME













Loans, including fees





$300,625





$269,811





Investment:













Taxable





14,733





14,342





Tax-exempt





3,302





3,449





Dividends





1,824





2,224





Total Interest and Dividend Income





320,484





289,826



















INTEREST EXPENSE













Deposits





63,026





40,856





Borrowings and junior subordinated debt securities





10,667





14,532





Total Interest Expense





73,693





55,388



















NET INTEREST INCOME





246,791





234,438





Provision for loan losses





14,873





14,995





Net Interest Income After Provision for Loan Losses





231,918





219,443



















NONINTEREST INCOME













Net (loss) gain on sale of securities





(26)









Service charges on deposit accounts





13,316





13,096





Debit and credit card





13,405





12,679





Wealth management





8,623





10,084





Mortgage banking





2,491





2,762





Gain on sale of a majority interest of insurance business









1,873





Other





14,749





8,687





Total Noninterest Income





52,558





49,181



















NONINTEREST EXPENSE













Salaries and employee benefits





83,986





76,108





Merger related expenses





11,350









Data processing and information technology





14,468





10,633





Net occupancy





12,103





11,097





Furniture, equipment and software





8,958





8,083





Marketing





4,631





4,192





Professional services and legal





4,244





4,132





Other taxes





3,364





6,183





FDIC insurance





758





3,238





Other





23,254





21,779





Total Noninterest Expense





167,116





145,445



















Income Before Taxes





117,360





123,179





Provision for income taxes





19,126





17,845



















Net Income





$98,234





$105,334



















Per Share Data:













Average diluted shares outstanding





34,679,478





34,975,409





Diluted earnings per share





$2.82





$3.01





Dividends declared per share





$1.09





$0.99





Dividends paid to net income





38.03%





32.79%



















Profitability Ratios













Return on average assets





1.32%





1.50%





Return on average shareholders' equity





9.98%





11.60%





Return on average tangible shareholders' equity (6)





14.41%





17.14%





Efficiency ratio (FTE) (7)





51.39%





50.60%





 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2019



2019



2018





Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



ASSETS













Cash and due from banks, including interest-bearing deposits

$169,304





$173,609





$155,489





Federal funds sold

28,519













Securities, at fair value

784,283





669,226





684,872





Loans held for sale

5,256





8,371





2,371





Commercial loans:













Commercial real estate

3,416,518





2,922,197





2,921,832





Commercial and industrial

1,720,833





1,626,854





1,493,416





Commercial construction

375,445





314,813





257,197





  Total Commercial Loans

5,512,796





4,863,864





4,672,445





Consumer loans:













Residential mortgage

998,585





770,882





726,679





Home equity

538,348





475,024





471,562





Installment and other consumer

79,033





74,460





67,546





Consumer construction

8,390





11,535





8,416





  Total Consumer Loans

1,624,356





1,331,901





1,274,203





Total Portfolio Loans

7,137,152





6,195,765





5,946,648





Allowance for loan losses

(62,224)





(62,115)





(60,996)





Total Portfolio Loans, Net

7,074,928





6,133,650





5,885,652





Federal Home Loan Bank and other restricted stock, at cost

22,977





25,397





29,435





Goodwill

371,621





287,446





287,446





Other assets

307,762





274,292





206,956





Total Assets

$8,764,649





$7,571,991





$7,252,221



















LIABILITIES













Deposits:













Noninterest-bearing demand

$1,698,082





$1,490,409





$1,421,156





Interest-bearing demand

962,331





751,881





573,693





Money market

1,949,811





1,660,569





1,482,065





Savings

830,919





753,464





784,970





Certificates of deposit

1,595,433





1,326,369





1,412,038





Total Deposits

7,036,576





5,982,692





5,673,922



















Borrowings:













Securities sold under repurchase agreements

19,888





13,925





18,383





Short-term borrowings

281,319





370,000





470,000





Long-term borrowings

50,868





69,156





70,314





Junior subordinated debt securities

64,277





45,619





45,619





Total Borrowings

416,352





498,700





604,316





Other liabilities

119,723





108,152





38,222





Total Liabilities

7,572,651





6,589,544





6,316,460



















SHAREHOLDERS' EQUITY













Total Shareholders' Equity

1,191,998





982,447





935,761





Total Liabilities and Shareholders' Equity

$8,764,649





$7,571,991





$7,252,221



















Capitalization Ratios













Shareholders' equity / assets

13.60%





12.97%





12.90%





Tangible common equity / tangible assets (4)

9.68%





9.52%





9.28%





Tier 1 leverage ratio

10.29%





10.20%





10.05%





Common equity tier 1 capital

11.43%





11.17%





11.38%





Risk-based capital - tier 1

11.84%





11.49%





11.72%





Risk-based capital - total

13.22%





12.92%





13.21%





 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2019



2019



2018





Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



Net Interest Margin (FTE) (QTD Averages)













ASSETS













Interest-bearing deposits with banks

$82,255



1.44%

$53,725



2.32%

$56,790



2.03%

Securities, at fair value

696,889



2.61%

661,752



2.59%

678,832



2.70%

Loans held for sale

3,582



3.56%

2,712



3.98%

1,022



4.05%

Commercial Loans:













Commercial real estate

3,056,513



4.77%

2,922,767



4.89%

2,869,532



4.91%

Commercial and industrial

1,666,061



4.77%

1,566,369



5.06%

1,469,534



4.94%

Commercial construction

339,274



4.71%

282,175



5.14%

266,922



4.91%

Total Commercial Loans

5,061,848



4.77%

4,771,311



4.96%

4,605,988



4.92%

Consumer Loans:













Residential mortgage

850,566



4.42%

753,649



4.41%

705,082



4.36%

Home equity

499,520



5.03%

469,567



5.36%

471,830



5.15%

Installment and other consumer

76,029



7.13%

72,606



7.10%

67,444



7.00%

Consumer construction

12,021



4.96%

11,056



5.39%

7,077



5.29%

Total Consumer Loans

1,438,136



4.78%

1,306,878



4.91%

1,251,433



4.80%

Total Portfolio Loans

6,499,984



4.77%

6,078,189



4.95%

5,857,421



4.90%

Total Loans

6,503,566



4.77%

6,080,901



4.95%

5,858,443



4.90%

Federal Home Loan Bank and other restricted stock

21,791



7.44%

19,981



7.00%

28,025



6.27%

Total Interest-earning Assets

7,304,501



4.53%

6,816,359



4.70%

6,622,090



4.65%

Noninterest-earning assets

619,586





538,514





499,254





Total Assets

$7,924,087





$7,354,873





$7,121,344



















LIABILITIES AND SHAREHOLDERS' EQUITY













Deposits:













Interest-bearing demand

$810,909



0.75%

$655,735



0.72%

$568,735



0.39%

Money market

1,791,981



1.53%

1,709,248



1.83%

1,418,220



1.69%

Savings

783,990



0.26%

749,287



0.24%

798,734



0.24%

Certificates of deposit

1,417,619



1.91%

1,345,474



1.97%

1,354,538



1.72%

Total Interest-bearing Deposits

4,804,499



1.30%

4,459,744



1.44%

4,140,227



1.24%

Borrowings:













Securities sold under repurchase agreements

14,046



0.75%

14,030



0.73%

45,101



0.62%

Short-term borrowings

241,368



2.08%

218,799



2.47%

433,642



2.54%

Long-term borrowings

56,026



2.63%

69,421



2.68%

52,949



2.75%

Junior subordinated debt securities

54,801



4.33%

45,619



4.82%

45,619



4.86%

Total Borrowings

366,241



2.45%

347,869



2.75%

577,311



2.59%

Total Interest-bearing Liabilities

5,170,740



1.38%

4,807,613



1.54%

4,717,538



1.41%

Noninterest-bearing liabilities

1,689,076





1,573,549





1,477,024



















SHAREHOLDERS' EQUITY













Total Shareholders' Equity

1,064,271





973,711





926,782





Total Liabilities and Shareholders' Equity

$7,924,087





$7,354,873





$7,121,344



















Net Interest Margin (5)



3.55%



3.62%



3.65%















 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited









For the Twelve Months Ended December 31,



(dollars in thousands)





2019



2018



Net Interest Margin (FTE) (YTD Averages)













ASSETS













Interest-bearing deposits with banks





$59,941



2.06%

$56,210



1.85%

Securities, at fair value





678,069



2.64%

682,806



2.62%

Loans held for sale





2,169



3.88%

1,515



5.60%

Commercial Loans:













Commercial real estate





2,945,278



4.92%

2,779,096



4.75%

Commercial and industrial





1,575,485



5.04%

1,441,560



4.70%

Commercial construction





278,665



5.11%

314,265



4.79%

Total Commercial Loans





4,799,428



4.97%

4,534,921



4.74%

Consumer Loans:













Residential mortgage





765,604



4.43%

696,849



4.27%

Home equity





475,149



5.31%

474,538



4.84%

Installment and other consumer





72,283



7.16%

67,047



6.85%

Consumer construction





10,896



5.44%

5,336



5.00%

Total Consumer Loans





1,323,932



4.90%

1,243,770



4.63%

Total Portfolio Loans





6,123,360



4.95%

5,778,691



4.72%

Total Loans





6,125,529



4.95%

5,780,206



4.72%

Federal Home Loan Bank and other restricted stock





21,833



7.52%

30,457



6.74%

Total Interest-earning Assets





6,885,372



4.71%

6,549,679



4.48%

Noninterest-earning assets





550,164





494,149





Total Assets





$7,435,536





$7,043,828



















LIABILITIES AND SHAREHOLDERS' EQUITY













Deposits:













Interest-bearing demand





$641,403



0.61%

$570,459



0.33%

Money market





1,691,910



1.79%

1,299,185



1.40%

Savings





766,142



0.25%

836,747



0.21%

Certificates of deposit





1,396,706



1.93%

1,328,985



1.43%

Total Interest-bearing Deposits





4,496,161



1.40%

4,035,376



1.01%

Borrowings:













Securities sold under repurchase agreements





16,863



0.65%

45,992



0.48%

Short-term borrowings





255,264



2.51%

525,172



2.11%

Long-term borrowings





66,392



2.76%

47,986



2.35%

Junior subordinated debt securities





47,934



4.82%

45,619



4.60%

Total Borrowings





386,453



2.76%

664,769



2.19%

Total Interest-bearing Liabilities





4,882,614



1.51%

4,700,145



1.18%

Noninterest-bearing liabilities





1,569,014





1,435,328



















SHAREHOLDERS' EQUITY













Total Shareholders' Equity





983,908





908,355





Total Liabilities and Shareholders' Equity





$7,435,536





$7,043,828



















Net Interest Margin (8)







3.64%



3.64%





























 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2019



2019



2018





Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



Nonperforming Loans (NPL)













Commercial loans:



% NPL



% NPL



% NPL

Commercial real estate

$29,140

0.85%

$33,740

1.15%

$12,052

0.41%

Commercial and industrial

13,982

0.81%

4,206

0.26%

8,960

0.60%

Commercial construction

737

0.20%

1,143

0.36%

14,193

5.52%

  Total Nonperforming Commercial Loans

43,859

0.80%

39,089

0.80%

35,205

0.75%

Consumer loans:













Residential mortgage

7,519

0.75%

7,384

0.96%

7,128

0.98%

Home equity

2,639

0.49%

3,492

0.74%

3,698

0.78%

Installment and other consumer

40

0.05%

18

0.02%

42

0.06%

  Total Nonperforming Consumer Loans

10,198

0.63%

10,894

0.81%

10,868

0.85%

Total Nonperforming Loans

$54,057

0.76%

$49,983

0.81%

$46,073

0.77%







2019



2019



2018





Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



Loan Charge-offs/(Recoveries)













Charge-offs

$2,798



$4,700



$3,279



Recoveries

(802)



(423)



(1,002)



Net Loan Charge-offs/(Recoveries)

$1,996



$4,277



$2,277

















Net Loan Charge-offs (Recoveries)













Commercial Loans:













Commercial real estate

$829



$2,298



($17)



Commercial and industrial

(121)



1,257



(567)



Commercial construction

404



(1)



2,308



Total Commercial Loan Charge-offs/(Recoveries)

1,112



3,554



1,724



Consumer loans:













Residential mortgage

112



289



191



Home equity

383



13



133



Installment and other consumer

389



421



297



Consumer construction





(68)



Total Consumer Loan Charge-offs

884



723



553



Total Net Loan Charge-offs/(Recoveries)

$1,996



$4,277



$2,277













For the Twelve Months Ended December 31,

(dollars in thousands)







2019



2018



Loan Charge-offs/(Recoveries)















Charge-offs







$16,189



$14,589



Recoveries







(2,544)



(4,200)



Net Loan Charge-offs/(Recoveries)







$13,645



$10,389



















Net Loan Charge-offs (Recoveries)















Commercial loans:















Commercial real estate







$3,527



$63



Commercial and industrial







7,540



6,851



Commercial construction







401



1,495



Total Commercial Loan Charge-offs/(Recoveries)







11,468



8,409



Consumer loans:















Residential mortgage







364



394



Home equity







434



541



Installment and other consumer







1,461



1,202



Consumer construction







(82)



(157)



Total Consumer Loan Charge-offs/(Recoveries)







2,177



1,980



Total Net Loan Charge-offs/(Recoveries)







$13,645



$10,389



 

 



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2019



2019



2018





Fourth



Third



Fourth



(dollars in thousands)

Quarter



Quarter



Quarter



Asset Quality Data













Nonperforming loans

$54,057





$49,983





$46,073





OREO

3,525





1,724





3,092





Nonperforming assets

57,582





51,707





49,165





Troubled debt restructurings (nonaccruing)

8,912





14,496





11,088





Troubled debt restructurings (accruing)

36,960





38,434





16,786





Total troubled debt restructurings

45,872





52,930





27,874





Nonperforming loans / loans

0.76%





0.81%





0.77%





Nonperforming assets / loans plus OREO

0.81%





0.83%





0.83%





Allowance for loan losses / total portfolio loans

0.87%





1.00%





1.03%





Allowance for loan losses / nonperforming loans

115%





124%





132%





Net loan charge-offs / (recoveries)

$1,996





$4,277





$2,277





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

0.12%





0.28%





0.15%





































For the Twelve Months Ended December 31,

(dollars in thousands)





2019



2018



Asset Quality Data













Net loan charge-offs / (recoveries)





$13,645





$10,389





Net loan charge-offs(recoveries) / average loans





0.22%





0.18%





 

 

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



The following profitability metrics are adjusted to exclude merger related expenses from the DNB merger in the fourth quarter and for the twelve months ended December 31, 2019.





2019



2019









Fourth

Twelve Months Ended







Quarter



December 31,







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













Net income

$22,269





$98,234









Adjust for merger related expenses

10,179





11,350









Tax effect of merger related expenses

(1,912)





(2,106)









Net income excluding merger related expenses

$30,536





$107,478









Net income excluding merger related expenses (quarterly annualized)

$121,148





$107,478









Plus: amortization of intangibles (quarterly annualized)

1,298





836









Tax effect of amortization of intangibles (quarterly annualized)

(273)





(176)









Net income before amortization of intangibles (quarterly annualized)

$122,174





$108,138























Average total shareholders' equity

$1,064,271





$983,908









Less: average goodwill and other intangible assets

(323,281)





(298,228)









Tax effect of other intangible assets

1,077





639









Average tangible equity (non-GAAP)

$742,067





$686,319









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

16.46%





15.76%























Return on Average Assets (non-GAAP)













Net income excluding merger related expenses (quarterly annualized)

$121,148





$107,478









Average total assets

7,924,087





7,435,536









Return on average assets (non-GAAP)

1.53%





1.45%























Return on Average Equity (non-GAAP)













Net income excluding merger related expenses (quarterly annualized)

$121,148





$107,478









Average total shareholders' equity

1,064,271





983,908









Return on average shareholders' equity (non-GAAP)

11.38%





10.92%









 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2019



2019



2018





Fourth



Third



Fourth





Quarter



Quarter



Quarter

















(1) Tangible Book Value (non-GAAP)













Total shareholders' equity

$1,191,998





$982,447





$935,761





 Less: goodwill and other intangible assets

(382,540)





(289,538)





(290,047)





Tax effect of other intangible assets

2,293





439





546





Tangible common equity (non-GAAP)

$811,751





$693,348





$646,260





Common shares outstanding

39,560





34,245





34,684





Tangible book value (non-GAAP)

$20.52





$20.25





$18.63



















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













Net income (annualized)

$88,350





$106,865





$106,540





Plus: amortization of intangibles (annualized)

1,298





647





811





Tax effect of amortization of intangibles (annualized)

(273)





(136)





(170)





Net income before amortization of intangibles (annualized)

$89,375





$107,376





$107,181



















Average total shareholders' equity

$1,064,271





$973,711





$926,782





Less: average goodwill and other intangible assets

(323,281)





(289,622)





(290,045)





Tax effect of average other intangible assets

1,077





457





546





Average tangible equity (non-GAAP)

$742,067





$684,546





$637,283





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

12.04%





15.69%





16.82%



















(3) Efficiency Ratio (non-GAAP)













Noninterest expense

$50,178





$37,667





$36,415





Less: merger related expenses

(10,179)





(552)









Noninterest expense excluding nonrecurring items

$39,999





$37,115





$36,415



















Net interest income per consolidated statements of net income

$64,412





$61,196





$59,842





Less: net (gains)losses on sale of securities

26













Plus: taxable equivalent adjustment

903





934





974





Net interest income (FTE) (non-GAAP)

$65,341





$62,130





$60,816





Noninterest income

15,231





13,063





11,095





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

$80,572





$75,193





$71,911





Efficiency ratio (non-GAAP)

49.64%





49.36%





50.64%



















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













Total shareholders' equity

$1,191,998





$982,447





$935,761





Less: goodwill and other intangible assets

(382,540)





(289,538)





(290,047)





Tax effect of other intangible assets

2,293





439





546





Tangible common equity (non-GAAP)

$811,751





$693,348





$646,260



















Total assets

$8,764,649





$7,571,991





$7,252,221





Less: goodwill and other intangible assets

(382,540)





(289,538)





(290,047)





Tax effect of other intangible assets

2,293





439





546





Tangible assets (non-GAAP)

$8,384,402





$7,282,892





$6,962,720





Tangible common equity to tangible assets (non-GAAP)

9.68%





9.52%





9.28%



















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













Interest income

$82,457





$79,813





$76,589





Less: interest expense

(18,045)





(18,617)





(16,747)





Net interest income per consolidated statements of net income

$64,412





$61,196





$59,842





Plus: taxable equivalent adjustment

903





934





974





Net interest income (FTE) (non-GAAP)

$65,315





$62,130





$60,816





Net interest income (FTE) (annualized)

$259,130





$246,494





$241,281





Average earning assets

$7,304,501





$6,816,359





$6,622,090





Net interest margin (FTE) (non-GAAP)

3.55%





3.62%





3.65%





 

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







For the Twelve Months Ended December 31,







2019



2018

















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













Net income





$98,234





$105,334





Plus: amortization of intangibles





836





861





Tax effect of amortization of intangibles





(176)





(181)





Net income before amortization of intangibles





$98,894





$106,014



















Average total shareholders' equity





$983,908





$908,355





Less: average goodwill and other intangible assets





(298,228)





(290,380)





Tax effect of other intangible assets





639





614





Average tangible equity (non-GAAP)





$686,319





$618,589





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





14.41%





17.14%



















(7) Efficiency Ratio (non-GAAP)













Noninterest expense





$167,116





$145,445





Less: merger related expenses





(11,350)









Noninterest expense excluding nonrecurring items





$155,766





$145,445



















Net interest income per consolidated statements of net income





$246,791





$234,438





Less: net (gains)losses on sale of securities





26









Plus: taxable equivalent adjustment





3,757





3,804





Net interest income (FTE) (non-GAAP)





$250,574





$238,242





Noninterest income





52,558





49,181





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





$303,132





$287,423





Efficiency ratio (non-GAAP)





51.39%





50.60%



















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













Interest income





$320,484





$289,826





Less: interest expense





(73,693)





(55,388)





Net interest income per consolidated statements of net income





$246,791





$234,438





Plus: taxable equivalent adjustment





3,757





3,804





Net interest income (FTE) (non-GAAP)





$250,548





$238,242





Average earning assets





$6,885,372





$6,549,679





Net interest margin (FTE) (non-GAAP)





3.64%





3.64%

































 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-fourth-quarter-and-full-year-2019-results-300995920.html

SOURCE S&T Bancorp, Inc.

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