S&T Bancorp, Inc. Announces Third Quarter 2020 Results

INDIANA, Pa., Oct. 22, 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 net income of $16.7 million, or $0.43 per diluted share, for the third quarter of 2020 compared to a net loss of ($33.1) million, or ($0.85) per diluted share, for the second quarter of 2020, and net income of $26.9 million, or $0.79 per diluted share, for the third quarter of 2019. The net loss in the second quarter of 2020 was due to a customer fraud resulting from a check kiting scheme which reduced net income by $46.3 million, or $1.19 per diluted share. S&T continues to pursue all available sources of recovery to mitigate the loss.

Third Quarter of 2020 Highlights:

  • Return on average assets (ROA) was 0.72%, return on average equity (ROE) was 5.80% and return on average tangible equity (ROTE) (non-GAAP) was 8.96%. Pre-tax pre-provision to average assets  (non-GAAP) was 1.61%.
  • Net interest margin (FTE) (non-GAAP) was  stable at 3.29% compared to 3.31% for the second quarter of 2020. 
  • Portfolio loans decreased $153.7 million compared to June 30, 2020. 
  • Deposits decreased $234.1 million to $7.6 billion at September 30, 2020 due to the pay down of $269.0 million of brokered deposits during the third quarter.
  • Mortgage banking revenue increased $1.3 million compared to the second quarter due to continued strong refinance activity.
  • The allowance for credit losses to total portfolio loans  was 1.64% at September 30, 2020 compared to 1.52% at June 30, 2020. Excluding PPP loans, the allowance for credit losses to total portfolio loans was 1.77% at September 30, 2020 compared to 1.64% at June 30, 2020.
  • S&T's Board of Directors declared a $0.28 per share dividend which was consistent with the $0.28 per share dividend declared in the same period in the prior year.

We continue to navigate through this difficult environment related to the COVID-19 pandemic," said Todd Brice, Chief Executive Officer. "I have every confidence in the S&T team to work through these difficult times, and I am impressed by their strong resilience and desire to help our customers and communities."

Net Interest Income

Net interest income decreased $0.8 million to $69.3 million for the third quarter of 2020 compared to $70.1 million for the second quarter of 2020. The decrease in net interest income was primarily due to lower loan balances as lower yields on loans were mostly offset by decreased rates on deposits.  Average loans decreased $154.2 million compared to the second quarter of 2020. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) was stable at 3.29% for the third quarter of 2020 compared to 3.31% in the second quarter of 2020. Loan rates decreased 13 basis points to 3.87% and total interest-bearing deposit costs decreased 19 basis points to 0.48%.

Asset Quality

The provision for credit losses was $17.5 million for the third quarter of 2020 compared to $86.8 million in the second quarter of 2020. The customer fraud that resulted in a $58.7 million charge-off to the bank had a significant impact on the provision for credit losses during the second quarter of 2020. Net loan charge-offs were $12.9 million for the third quarter of 2020 compared to $68.1 million in the second quarter of 2020.  During the third quarter, a $21.3 million CRE relationship, which was placed on nonaccrual in the first quarter of 2020, was charged down by $10.0 million leaving a remaining outstanding balance of $11.3 million. The relationship experienced continued deterioration as a result of the COVID-19 pandemic. Total nonperforming loans decreased $6.0 million to $84.1 million, or 1.13% of total loans, at September 30, 2020 compared to $90.1 million, or 1.19% of total loans at June 30, 2020. The allowance for credit losses was 1.64% of total portfolio loans as of September 30, 2020 compared to 1.52% at June 30, 2020. Excluding PPP loans, the allowance for credit losses was 1.77% of total portfolio loans at September 30, 2020 compared to 1.64% at June 30, 2020. The impact of  the COVID-19 pandemic on our hotel loan portfolio and a $6.2 million increase in specific reserves contributed to the higher allowance for credit losses at September 30, 2020 compared to June 30, 2020.

Noninterest Income and Expense

Noninterest income increased $1.3 million to $16.5 million in the third quarter of 2020 compared to $15.2 million in the second quarter of 2020. Mortgage banking income increased $1.3 million compared to the second quarter of 2020 due to continued strong refinance activity. Both debit and credit card fees and service charges on deposit accounts increased due to improved customer activity compared to the second quarter of 2020.

Noninterest expense increased $4.8 million to $48.3 million for the third quarter of 2020 compared to $43.5 million in the second quarter of 2020. Salaries and employee benefits increased $3.2 million due to lower deferred origination costs related to PPP loans, higher pension costs due to an increase in retirements and a return to more normal medical costs compared to the second quarter of 2020. FDIC insurance increased $0.9 million due to the impact of recent results on certain components of the assessment calculation. Marketing expense increased $0.8 million due to the timing of marketing initiatives and the redesign of our website.

Financial Condition

Total assets decreased $283.7 million to $9.2 billion at September 30, 2020 compared to $9.5 billion at June 30, 2020. Portfolio loans decreased $153.7 million compared to June 30, 2020 as loan originations continue to be impacted by the COVID-19 pandemic. The securities portfolio declined $86.2 million compared to June 30, 2020 mainly due to short term investments maturing in conjunction with our planned reduction of $269 million in brokered deposits. The decrease in brokered deposits resulted in a decline in total deposits of $234.1 million to $7.6 billion at September 30, 2020 compared to $7.9 billion at June 30, 2020. Customer deposits, which increased significantly during the second quarter of 2020, remained relatively unchanged in the third quarter despite decreases in deposit rates.

All regulatory  capital ratios increased at September 30, 2020 compared to June 30, 2020. S&T continues to maintain a strong capital position with all capital ratios 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 on October 19, 2020. This is unchanged from the same period in the prior year. The dividend is payable November 19, 2020 to shareholders of record on November 5, 2020.

Conference Call

S&T will host its third quarter 2020 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 22, 2020. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "3rd Quarter 2020 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 29, 2020, by dialing 1.877.481.4010; the Conference ID is 37817.

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

S&T Bancorp, Inc. is a $9.2 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 ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. 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 or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.

This information contains or incorporates statements that we believe are "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 and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; 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, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; 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, including DNB, 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; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus ("COVID-19") pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; 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; the stability of our core deposit base and access to contingency funding; 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 Annual Report on Form 10-K for the year ended December 31, 2019, including Part I, Item 1A-"Risk Factors" and any of our subsequent 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





2020



2020



2019





Third



Second



Third



(dollars in thousands, except per share data)

Quarter



Quarter



Quarter



INTEREST AND DIVIDEND INCOME













Loans, including fees

$72,263





$75,498





$75,080





Investment securities:













Taxable

3,473





3,791





3,552





Tax-exempt

885





959





787





Dividends

227





231





394





Total Interest and Dividend Income

76,848





80,479





79,813



















INTEREST EXPENSE













Deposits

6,626





9,227





16,207





Borrowings and junior subordinated debt securities

946





1,104





2,410





Total Interest Expense

7,572





10,331





18,617



















NET INTEREST INCOME

69,276





70,148





61,196





Provision for credit losses

17,485





86,759





4,913





Net Interest Income (Loss) After Provision for Credit Losses

51,791





(16,611)





56,283



















NONINTEREST INCOME













Net gain on sale of securities





142









Debit and credit card

4,171





3,612





3,475





Mortgage banking

3,964





2,623





594





Service charges on deposit accounts

2,820





2,342





3,412





Wealth management

2,522





2,586





2,101





Commercial loan swap income

499





945





1,464





Other

2,507





2,974





2,017





Total Noninterest Income

16,483





15,224





13,063



















NONINTEREST EXPENSE













Salaries and employee benefits

24,571





21,419





19,936





Data processing and information technology

4,218





3,585





3,681





Net occupancy

3,441





3,437





2,898





Furniture, equipment and software

2,440





3,006





2,090





Professional services and legal

1,911





1,932





1,054





FDIC insurance

1,900





1,048





(675)





Marketing

1,793





979





1,062





Other taxes

1,612





1,604





1,540





Merger related expense









552





Other

6,360





6,468





5,529





Total Noninterest Expense

48,246





43,478





37,667





Income (Loss)  Before Taxes

20,028





(44,865)





31,679





Income tax  expense (benefit)

3,323





(11,793)





4,743





Net Income (Loss)

$16,705





($33,072)





$26,936



















Per Share Data













Shares outstanding at end of period

39,251,638





39,253,460





34,244,719





Average shares outstanding - diluted

39,020,811





39,013,161





34,277,270





Diluted earnings (loss) per share

$0.43





($0.85)





$0.79





Dividends declared per share

$0.28





$0.28





$0.27





Dividend yield (annualized)

6.33%





4.78%





2.96%





Dividends paid to net income

65.61%





NM





34.30%





Book value

$29.10





$28.93





$28.69





Tangible book value (1)

$19.40





$19.22





$20.25





Market value

$17.69





$23.45





$36.53





Profitability Ratios (Annualized)













Return on average assets

0.72%





(1.41%)





1.45%





Return on average shareholders' equity

5.80%





(11.17%)





10.97%





Return on average tangible shareholders' equity (2)

8.96%





(16.19%)





15.69%





Efficiency ratio (FTE) (3)

55.75%





50.51%





50.09%





NM - Not Meaningful













 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







Nine Months Ended September 30,



(dollars in thousands, except per share data)



2020



2019



INTEREST INCOME











Loans, including fees



$229,812





$223,200





Investment securities:











Taxable



11,547





10,989





Tax-exempt



2,646





2,466





Dividends



911





1,373





Total Interest and Dividend Income



244,916





238,028

















INTEREST EXPENSE











Deposits



31,191





47,243





Borrowings and junior subordinated debt securities



4,265





8,406





Total Interest Expense



35,456





55,649

















NET INTEREST INCOME



209,460





182,379





Provision for credit  losses



124,294





12,767





Net Interest Income After Provision for Credit Losses



85,166





169,612

















NONINTEREST INCOME











Net gain on sale of securities



142









Debit and credit card



11,264





9,951





Mortgage banking



7,823





1,726





Service charges on deposit accounts



8,720





9,777





Wealth management



7,471





6,210





Commercial swap fee income



3,928





3,147





Other



4,762





6,515





Total Noninterest Income



44,110





37,326

















NONINTEREST EXPENSE











Salaries and employee benefits



67,326





61,135





Data processing and information technology



11,671





10,327





Net occupancy



10,643





8,883





Furniture, equipment and software



7,965





6,621





Professional services and legal



4,890





3,382





FDIC insurance



3,718





536





Marketing



3,883





3,514





Other taxes



4,816





4,182





Merger related expense



2,342





1,171





Other



20,861





17,187





Total Noninterest Expense



138,115





116,938

















(Loss) Income Before Taxes



(8,839)





90,000





Income tax (benefit) expense



(5,703)





14,035

















Net (Loss) Income



($3,136)





$75,965

















Per Share Data











Average shares outstanding - diluted



39,101,309





34,407,732





Diluted (loss) earnings per share



($0.08)





$2.21





Dividends declared per share



$0.84





$0.81





Dividends paid to net income



NM





36.59%

















Profitability Ratios (annualized)











Return on average assets



(0.05%)





1.40%





Return on average shareholders' equity



(0.36%)





10.61%





Return on average tangible shareholders' equity (6)



(0.27%)





15.30%





Efficiency ratio (FTE) (7)



53.06%





52.54%





NM - Not Meaningful











 

S&T Bancorp, Inc. 

Consolidated Selected Financial Data

Unaudited





2020



2020



2019





Third



Second



Third



(dollars in thousands)

Quarter



Quarter



Quarter



ASSETS













Cash and due from banks, including interest-bearing deposits

$308,489





$351,365





$173,609





Securities, at fair value

718,169





804,366





669,226





Loans held for sale

16,724





14,259





8,371





Commercial loans:













Commercial real estate

3,290,138





3,345,513





2,922,197





Commercial and industrial

2,042,467





2,140,355





1,626,854





Commercial construction

477,429





459,264





314,813





Total Commercial Loans

5,810,034





5,945,132





4,863,864





Consumer loans:













Residential mortgage

950,887





971,023





770,882





Home equity

537,869





539,519





475,024





Installment and other consumer

80,735





79,816





74,460





Consumer construction

15,343





13,068





11,535





Total Consumer Loans

1,584,834





1,603,426





1,331,901





Total Portfolio Loans

7,394,868





7,548,558





6,195,765





Allowance for credit losses

(120,998)





(114,609)





(62,115)





Total Portfolio Loans, Net

7,273,870





7,433,949





6,133,650





Federal Home Loan Bank and other restricted stock, at cost

15,777





15,151





25,397





Goodwill

373,417





373,289





287,446





Other assets

484,126





481,917





274,292





Total Assets

$9,190,572





$9,474,296





$7,571,991



















LIABILITIES













Deposits:













Noninterest-bearing demand

$2,232,706





$2,250,958





$1,490,409





Interest-bearing demand

982,956





1,055,261





751,881





Money market

2,033,585





2,121,588





1,660,569





Savings

938,475





916,268





753,464





Certificates of deposit

1,446,096





1,523,841





1,326,369





Total Deposits

7,633,818





7,867,916





5,982,692



















Borrowings:













Securities sold under repurchase agreements

42,706





92,159





13,925





Short-term borrowings

83,000





84,541





370,000





Long-term borrowings

49,076





49,489





69,156





Junior subordinated debt securities

64,068





64,053





45,619





Total Borrowings

238,850





290,242





498,700





Other liabilities

175,789





180,361





108,152





Total Liabilities

8,048,457





8,338,519





6,589,544



















SHAREHOLDERS' EQUITY













Total Shareholders' Equity

1,142,115





1,135,777





982,447





Total Liabilities and Shareholders' Equity

$9,190,572





$9,474,296





$7,571,991



















Capitalization Ratios













Shareholders' equity / assets

12.43%





11.99%





12.97%



Tangible common equity / tangible assets (4)

8.64%





8.30%





9.52%



Tier 1 leverage ratio

9.11%





8.89%





10.20%



Common equity tier 1 capital

11.05%





10.70%





11.17%



Risk-based capital - tier 1

11.46%





11.10%





11.49%



Risk-based capital - total

13.18%





12.74%





12.92%



 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2020



2020



2019





Third



Second



Third



(dollars in thousands)

Quarter



Quarter



Quarter



Net Interest Margin (FTE) (QTD Averages)













ASSETS













Interest-bearing deposits with banks

$213,051

0.11%

$163,019

0.08%

$53,725

2.32%

Securities, at fair value

759,094

2.41%

785,229

2.56%

661,752

2.59%

Loans held for sale

4,432

3.09%

9,931

3.08%

2,712

3.98%

Commercial real estate

3,322,656

4.02%

3,389,616

4.23%

2,922,767

4.89%

Commercial and industrial

2,107,750

3.45%

2,200,148

3.61%

1,566,369

5.06%

Commercial construction

469,214

3.43%

430,912

3.75%

282,175

5.14%

Total Commercial Loans

5,899,620

3.77%

6,020,676

3.97%

4,771,311

4.96%

Residential mortgage

954,861

4.33%

976,916

4.20%

753,649

4.41%

Home equity

536,735

3.73%

543,770

3.69%

469,567

5.36%

Installment and other consumer

79,649

6.47%

79,944

6.34%

72,606

7.10%

Consumer construction

14,475

4.32%

12,758

4.58%

11,056

5.39%

Total Consumer Loans

1,585,720

4.24%

1,613,388

4.14%

1,306,878

4.91%

Total Portfolio Loans

7,485,340

3.87%

7,634,064

4.00%

6,078,189

4.95%

Total Loans

7,489,772

3.87%

7,643,995

4.00%

6,080,901

4.95%

Federal Home Loan Bank and other restricted stock

15,157

5.11%

19,709

3.75%

19,981

7.00%

Total Interest-earning Assets

8,477,074

3.65%

8,611,952

3.80%

6,816,359

4.70%

Noninterest-earning assets

815,930



817,767



538,514



Total Assets

$9,293,004



$9,429,719



$7,354,873

















LIABILITIES AND SHAREHOLDERS' EQUITY













Interest-bearing demand

$967,735

0.18%

$1,033,905

0.24%

$655,735

0.72%

Money market

2,074,862

0.33%

2,076,483

0.50%

1,709,248

1.83%

Savings

923,208

0.07%

887,357

0.07%

749,287

0.24%

Certificates of deposit

1,486,016

1.16%

1,560,885

1.51%

1,345,474

1.97%

Total Interest-bearing Deposits

5,451,821

0.48%

5,558,630

0.67%

4,459,744

1.44%

Securities sold under repurchase agreements

64,000

0.25%

85,302

0.25%

14,030

0.73%

Short-term borrowings

84,310

0.38%

178,273

0.38%

218,799

2.47%

Long-term borrowings

49,269

2.52%

49,774

2.53%

69,421

2.68%

Junior subordinated debt securities

64,057

3.19%

64,044

3.58%

45,619

4.82%

Total Borrowings

261,636

1.44%

377,393

1.18%

347,869

2.75%

Total Interest-bearing Liabilities

5,713,457

0.53%

5,936,023

0.70%

4,807,613

1.54%

Noninterest-bearing liabilities

2,433,665



2,302,676



1,573,549



Shareholders' equity

1,145,882



1,191,020



973,711



Total Liabilities and Shareholders' Equity

$9,293,004



$9,429,719



$7,354,873

















Net Interest Margin (5)



3.29%



3.31%



3.62%















 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







Nine Months Ended September 30,



(dollars in thousands)



2020



2019



Net Interest Margin (FTE) (YTD Averages)











ASSETS











Interest-bearing deposits with banks



$158,771

0.38%

$52,421

2.38%

Securities, at fair value



776,995

2.50%

671,727

2.65%

Loans held for sale



5,407

3.17%

1,693

4.11%

Commercial real estate



3,373,466

4.33%

2,907,792

4.97%

Commercial and industrial



2,020,179

3.82%

1,544,962

5.14%

Commercial construction



428,977

3.91%

258,239

5.28%

Total Commercial Loans



5,822,622

4.12%

4,710,993

5.04%

Residential mortgage



974,144

4.24%

736,972

4.43%

Home equity



540,220

4.09%

466,936

5.41%

Installment and other consumer



79,757

6.60%

71,021

7.17%

Consumer construction



12,587

4.49%

10,517

5.63%

Total Consumer Loans



1,606,708

4.31%

1,285,446

4.95%

Total Portfolio Loans



7,429,330

4.16%

5,996,439

5.02%

Total Loans



7,434,737

4.16%

5,998,132

5.02%

Federal Home Loan Bank and other restricted stock



19,473

5.38%

21,848

7.55%

Total Interest-earning Assets



8,389,976

3.94%

6,744,128

4.77%

Noninterest-earning assets



772,404



526,788



Total Assets



$9,162,380



$7,270,916















LIABILITIES AND SHAREHOLDERS' EQUITY











Interest-bearing demand



$981,174

0.33%

$584,280

0.54%

Money market



2,048,466

0.69%

1,658,187

1.88%

Savings



880,673

0.12%

760,128

0.25%

Certificates of deposit



1,549,177

1.50%

1,389,658

1.94%

Total Interest-bearing deposits



5,459,490

0.76%

4,392,253

1.44%

Securities sold under repurchase agreements



60,045

0.30%

17,812

0.63%

Short-term borrowings



182,623

1.02%

259,947

2.65%

Long-term borrowings



50,292

2.52%

69,886

2.79%

Junior subordinated debt securities



64,099

3.72%

45,619

5.02%

Total Borrowings



357,059

1.60%

393,264

2.86%

Total Interest-bearing Liabilities



5,816,549

0.81%

4,785,517

1.55%

Noninterest-bearing liabilities



2,170,447



1,528,573



Shareholders' equity



1,175,384



956,826



Total Liabilities and Shareholders' Equity



$9,162,380



$7,270,916















Net Interest Margin (8)





3.37%



3.67%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2020



2020



2019





Third



Second



Third



(dollars in thousands)

Quarter



Quarter



Quarter



Nonperforming Loans (NPL)













Commercial loans:



% NPL



% NPL



% NPL

Commercial real estate

$52,805



1.60%

$61,643



1.84%

$33,740



1.15%

Commercial and industrial

12,498



0.61%

8,484



0.40%

4,206



0.26%

Commercial construction

1,504



0.31%

1,504



0.33%

1,143



0.36%

Total Nonperforming Commercial Loans

66,807



1.15%

71,631



1.20%

39,089



0.80%

Consumer loans:













Residential mortgage

13,018



1.37%

14,649



1.51%

7,384



0.96%

Home equity

4,106



0.76%

3,814



0.71%

3,492



0.74%

Installment and other consumer

141



0.17%

19



0.02%

18



0.02%

Total Nonperforming Consumer Loans

17,265



1.08%

18,482



1.14%

10,894



0.81%

Total Nonperforming Loans

$84,072



1.13%

$90,113



1.19%

$49,983



0.81%































2020



2020



2019





Third



Second



Third



(dollars in thousands)

Quarter



Quarter



Quarter



Loan Charge-offs (Recoveries)













Charge-offs

$13,667





$68,304





$4,700





Recoveries

(754)





(231)





(423)





Net Loan Charge-offs (Recoveries)

$12,913





$68,072





$4,277



















Net Loan Charge-offs (Recoveries)













Commercial loans:













Customer fraud

$—





$58,671





$—





Commercial real estate

10,963





5,588





2,298





Commercial and industrial

1,267





3,060





1,257





Commercial construction

(1)





(19)





(1)





Total Commercial Loan Charge-offs (Recoveries)

12,229





67,300





3,554





Consumer loans:













Residential mortgage

274





74





289





Home equity

204





16





13





Installment and other consumer

206





682





421





Total Consumer Loan Charge-offs

684





772





723





Total Net Loan Charge-offs (Recoveries)

$12,913





$68,072





$4,277





 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited









Nine Months Ended September 30,



(dollars in thousands)





2020



2019



Loan Charge-offs (Recoveries)













Charge-offs





$93,415



$13,391





Recoveries





(1,273)



(1,743)





Net Loan Charge-offs (Recoveries)





$92,142



$11,648



















Net Loan Charge-offs (Recoveries)













Commercial loans:













Customer fraud





$58,671



$—





Commercial real estate





16,979



2,699





Commercial and industrial





14,592



7,661





Commercial construction





(22)



(4)





Total Commercial Loan Charge-offs/(Recoveries)





90,220



10,356





Consumer loans:













Residential mortgage





367



251





Home equity





301



51





Installment and other consumer





1,254



1,072





Consumer construction







(82)





Total Consumer Loan Charge-offs





1,922



1,292





Total Net Loan Charge-offs (Recoveries)





$92,142



$11,648





 



2020



2020



2019





Third



Second



Third



(dollars in thousands)

Quarter



Quarter



Quarter



Asset Quality Data













Nonperforming loans

$84,072





$90,113





$49,983





OREO

2,317





2,740





1,724





Nonperforming assets

86,389





92,853





51,707





Troubled debt restructurings (nonaccruing)

18,648





31,755





14,496





Troubled debt restructurings (accruing)

18,478





15,536





38,434





Total troubled debt restructurings

37,126





47,291





52,930





Nonperforming loans / total loans

1.13%





1.19%





0.81%





Nonperforming assets / total loans plus OREO

1.17%





1.23%





0.83%





Allowance for credit losses / total portfolio loans

1.64%





1.52%





1.00%





Allowance for credit losses / nonperforming loans

144%





127%





124%





Net loan charge-offs (recoveries)

$12,913





$68,072





$4,277





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

0.69%





3.58%





0.28%





 





Nine Months Ended September 30,



(dollars in thousands)



2020



2019



Asset Quality Data











Net loan charge-offs (recoveries)



$92,142





$11,648





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



1.66%





0.26%





 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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





2020



2020



2019





Third



Second



Third





Quarter



Quarter



Quarter

















(1) Tangible Book Value (non-GAAP)













 Total shareholders' equity

$1,142,115





$1,135,777





$982,447





      Less: goodwill and other intangible assets

(382,681)





(383,032)





(289,538)





     Tax effect of other intangible assets

1,946





2,046





439





 Tangible common equity (non-GAAP)

$761,380





$754,791





$693,348





 Common shares outstanding

39,252





39,263





34,245





 Tangible book value (non-GAAP)

$19.40





$19.22





$20.25



















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













  Net (loss) income (annualized)

$66,455





($133,016)





$106,865





       Plus: amortization of intangibles (annualized)

2,619





2,623





647





       Tax effect of amortization of intangibles (annualized)

(550)





(551)





(136)





  Net (loss)  income before amortization of intangibles (annualized)

$68,524





($130,944)





$107,376



















  Average total shareholders' equity

$1,145,882





$1,191,020





$973,711





       Less: average goodwill and other intangible assets

(382,780)





(384,197)





(289,622)





       Tax effect of average goodwill and other intangible assets

1,999





2,116





457





  Average tangible equity (non-GAAP)

$765,101





$808,939





$684,546





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

8.96%





(16.19%)





15.69%



















(3) Efficiency Ratio (non-GAAP)













Noninterest expense

$48,246





$43,478





$37,667





Less: merger related expenses













Noninterest expense excluding nonrecurring items

$48,246





$43,478





$37,667



















Net interest income per consolidated statements of net income

$69,276





$70,148





$61,196





     Less: net (gains) losses on sale of securities





(142)









     Plus: taxable equivalent adjustment

780





847





934





Net interest income (FTE) (non-GAAP)

$70,056





$70,853





$62,130





Noninterest income

16,483





15,224





13,063





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

$86,539





$86,077





$75,193





Efficiency ratio (non-GAAP)

55.75%





50.51%





50.09%



















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













 Total shareholders' equity

$1,142,115





$1,135,777





$982,447





      Less: goodwill and other intangible assets

(382,681)





(383,032)





(289,538)





      Tax effect of goodwill and other intangible assets

1,946





2,046





439





 Tangible common equity (non-GAAP)

$761,380





$754,791





$693,348



















 Total assets

$9,190,572





$9,474,296





$7,571,991





      Less: goodwill and other intangible assets

(382,681)





(383,032)





(289,538)





      Tax effect of goodwill and other intangible assets

1,946





2,046





439





 Tangible assets (non-GAAP)

$8,809,837





$9,093,310





$7,282,892





 Tangible common equity to tangible assets (non-GAAP)

8.64%





8.30%





9.52%



















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













 Interest income

$76,848





$80,479





$79,813





      Less: interest expense

7,572





10,331





(18,617)





 Net interest income per consolidated statements of net income

$69,276





$70,148





$61,196





      Plus: taxable equivalent adjustment

780





847





934





 Net interest income (FTE) (non-GAAP)

$70,056





$70,995





$62,130





 Net interest income (FTE) (annualized)

$278,701





$285,540





$246,494





 Average earning assets

$8,477,074





$8,611,952





$6,816,359





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

3.29%





3.31%





3.62%





 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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





2020













Third













Quarter

























PTPP / Average Assets (non-GAAP)













Income before taxes

$20,028













  Plus: Provision for credit losses

17,485













Total

37,513













Total (annualized) (non-GAAP)

$149,237













Average assets

$9,293,004













PTPP / Average Assets (non-GAAP)

1.61%

































Nine Months Ended September 30,









2020



2019

















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













Net (loss) income (annualized)





($4,189)





$101,564





  Plus: amortization of intangibles (annualized)





2,595





680





  Tax effect of amortization of intangibles (annualized)





(545)





(143)





Net (loss)  income before amortization of intangibles (annualized)





($2,140)





$102,101



















Average total shareholders' equity





$1,175,384





$956,826





  Less: average goodwill and other intangible assets





(383,000)





(289,786)





  Tax effect of average goodwill and other intangible assets





2,116





491





Average tangible equity (non-GAAP)





$794,500





$667,531





Return on average tangible equity (non-GAAP)





(0.27%)





15.30%



















(7) Efficiency Ratio (non-GAAP)













Noninterest expense





$138,115





$116,938





  Less: merger related expenses





(2,342)









Noninterest expense excluding nonrecurring items





$135,773





$116,938



















Net interest income per consolidated statements of net income





$209,460





$182,379





  Less: net (gains) losses on sale of securities





(142)









  Plus: taxable equivalent adjustment





2,477





2,854





Net interest income (FTE) (non-GAAP)





$211,795





$185,233





Noninterest income





44,110





37,326





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





$255,905





$222,559





Efficiency ratio (non-GAAP)





53.06%





52.54%



















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













Interest income





$244,916





$238,028





 Less: interest expense





35,456





(55,649)





Net interest income per consolidated statements of net income





209,460





182,379





 Plus: taxable equivalent adjustment





2,477





2,854





Net interest income (FTE) (non-GAAP)





$211,937





$185,233





Net interest income (FTE) (annualized)





$283,098





$247,656





Average earning assets





$8,389,976





$6,744,127





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





3.37%





3.67%





 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



The following profitability metrics for the nine  months ended September 30, 2020  are adjusted to exclude a $58.7 million loss related to a customer fraud.





2020





Nine Months

Ended

September 30,









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





Net loss

($3,136)





  Provision for credit losses

58,671





  Tax effect

(12,321)





Net income excluding fraud

$43,214











Net income excluding fraud (annualized)

$57,724





  Plus: amortization of intangibles (annualized)

2,595





  Tax effect of amortization of intangibles (annualized)

(545)





Net income before amortization of intangibles (annualized)

$59,774











Average total shareholders' equity

$1,175,384





  Less: average goodwill and other intangible assets

(383,000)





  Tax effect of average goodwill and other intangible assets

2,116





Average tangible equity (non-GAAP)

$794,500





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

7.52%











Return on Average Assets (non-GAAP)





Net income excluding fraud (annualized)

$57,724





Average total assets

9,162,380





Return on average assets (non-GAAP)

0.63%











Return on Average Equity (non-GAAP)





Net income excluding fraud (annualized)

$57,724





Average total shareholders' equity

1,175,384





Return on average assets (non-GAAP)

4.91%





 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-third-quarter-2020-results-301157627.html

SOURCE S&T Bancorp, Inc.

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