EX-99.1 2 stba-2018930xex991.htm EXHIBIT 99.1 Exhibit

S&T Earnings Release -1


CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701
mark.kochvar@stbank.com
www.stbancorp.com
 
earn_image1a10.jpg
FOR IMMEDIATE RELEASE                

S&T Bancorp, Inc. Announces Third Quarter 2018 Results


Indiana, Pa. - October 18, 2018 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its third quarter 2018 earnings. Third quarter net income was $30.9 million, or $0.88 diluted earnings per share (EPS), compared to second quarter of 2018 net income of $21.4 million, or $0.61 diluted EPS and third quarter of 2017 net income of $22.7 million, or $0.65 diluted EPS.

Third Quarter of 2018 Highlights:
Annualized performance metrics were strong with return on average assets of 1.75%, return on average shareholders’ equity of 13.41% and return on average tangible shareholders’ equity (non-GAAP) of 19.73%.
EPS was positively impacted by a one-time reduction to tax expense of $2.9 million, or $0.08 per diluted share, during the third quarter of 2018 related to a tax deduction for a pension contribution at a 35% corporate tax rate versus the current rate of 21%.
Net interest margin (FTE) (non-GAAP) improved 3 basis points to 3.67% and net interest income increased $0.9 million to $59.3 million compared to the second quarter of 2018.
Net loan charge-offs were only $0.4 million, or 0.03% of average loans on an annualized basis, for the third quarter of 2018.
S&T's Board of Directors declared a $0.27 per share dividend, which is an increase of 23% compared to a $0.22 dividend in the same period last year.

“We are pleased with our performance in the third quarter,” said Todd Brice, president and chief executive officer of S&T. “Overall we had a very strong quarter with an increase in our net interest margin and net interest income and improvement in our asset quality."

Net Interest Income

Net interest income increased $0.9 million to $59.3 million for the third quarter of 2018 compared to $58.4 million for the second quarter of 2018. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 3 basis points to 3.67% from 3.64% from the second quarter of 2018. The increases in short-term interest rates in 2018 continue to positively impact both net interest income and net interest margin. Loan and total interest-bearing liability rates both increased 11 basis points compared to the second quarter of 2018.

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S&T Earnings Release -2



Asset Quality

Asset quality improved during the third quarter of 2018 with net loan charge-offs of only $0.4 million, or 0.03% of average loans on an annualized basis, compared to $7.9 million, or 0.55% of average loans on an annualized basis, in the second quarter of 2018. Nonperforming loans decreased $0.6 million to $20.7 million compared to $21.4 million in the second quarter of 2018. The provision for loan losses was $0.5 million compared to $9.3 million in the second quarter of 2018. In the second quarter of 2018, net loan charge-offs were significantly higher, and included a $5.2 million loan charge-off from a participation loan agreement which resulted from fraudulent activities believed to be perpetrated by one or more executives employed by the borrower. The allowance for loan losses to total portfolio loans was 1.04% at September 30, 2018 compared to 1.05% at June 30, 2018.

Noninterest Income and Expense
 
Noninterest income decreased $0.3 million to $12.0 million for the third quarter of 2018 compared to $12.3 million for the second quarter of 2018. Higher service charges on deposit account fees of $0.3 million were offset by small declines in various other fee categories. The decrease in insurance fees from the third quarter of 2017 of $1.2 million related to the sale of a majority interest of our insurance business during the first quarter of 2018.

Noninterest expenses were $37.1 million compared to $35.9 million for the second quarter of 2018. The increase of $1.2 million in salaries and employee benefits mainly related to higher incentives and medical expense compared to the second quarter of 2018. Data processing and information technology (IT) increased $0.5 million due to a recent outsourcing arrangement for certain components of the IT function.

Financial Condition

Total assets were essentially unchanged at $7.1 billion at September 30, 2018 and June 30, 2018. Total portfolio loans increased $21.7 million compared to June 30, 2018 with growth in the commercial real estate portfolio. Total deposits increased $74.0 million, or 5.4% annualized, to $5.5 billion at September 30, 2018 compared to $5.4 billion at June 30, 2018. All capital ratios increased this quarter due to higher retained earnings and slower risk weighted asset growth. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.

Dividend

The Board of Directors of S&T declared a $0.27 per share cash dividend at its regular meeting held October 15, 2018. This dividend is a 23% increase compared to a $0.22 dividend in the same period last year. The dividend is payable November 15, 2018 to shareholders of record on November 1, 2018.

Conference Call

S&T will host its third quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 18, 2018. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “3rd Quarter 2018 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 25, 2018, by dialing 1.877.481.4010; the Conference ID # is 37697


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

S&T Bancorp, Inc. is a $7.1 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.

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S&T Earnings Release -3



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.


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

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands, except per share data)
Quarter
 
Quarter
 
Quarter
 
INTEREST INCOME
 
 
 
 
 
 
Loans, including fees
$68,631
 
$66,610
 
$62,450
 
Investment securities:
 
 
 
 
 
 
Taxable
3,649
 
3,519
 
2,988
 
Tax-exempt
857
 
872
 
896
 
Dividends
490
 
580
 
389
 
Total Interest Income
73,627
 
71,581
 
66,723
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
Deposits
10,871
 
9,166
 
6,748
 
Borrowings and junior subordinated debt securities
3,494
 
4,012
 
2,519
 
Total Interest Expense
14,365
 
13,178
 
9,267
 
 
 
 
 
 
 
 
NET INTEREST INCOME
59,262
 
58,403
 
57,456
 
Provision for loan losses
462
 
9,345
 
2,850
 
Net Interest Income After Provision for Loan Losses
58,800
 
49,058
 
54,606
 
 
 
 
 
 
 
 
NONINTEREST INCOME
 
 
 
 
 
 
Service charges on deposit accounts
3,351
 
3,227
 
3,207
 
Debit and credit card
3,141
 
3,309
 
3,067
 
Wealth management
2,483
 
2,616
 
2,406
 
Mortgage banking
700
 
831
 
872
 
Insurance
101
 
134
 
1,318
 
Other
2,266
 
2,134

2,681
 
Total Noninterest Income
12,042
 
12,251
 
13,551
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
Salaries and employee benefits
19,769

18,611

20,325
 
Data processing and information technology
2,906
 
2,379
 
2,284
 
Net occupancy
2,722

2,804
 
2,692
 
Furniture, equipment and software
2,005

2,134

1,890
 
Other taxes
1,341
 
1,739
 
1,208
 
Professional services and legal
1,181
 
888
 
869
 
Marketing
1,023

1,190

766
 
FDIC insurance
746

739
 
1,152
 
Other
5,392

5,379

5,367
 
Total Noninterest Expense
37,085

35,863

36,553
 
 
 
 
 
 
 
 
Income Before Taxes
33,757
 
25,446
 
31,604
 
Provision for income taxes
2,876
 
4,010
 
8,883
 
 
 
 
 
 
 
 
Net Income
$30,881
 
$21,436
 
$22,721
 
 
 
 
 
 
 
 
Per Share Data
 
 
 
 
 
 
Shares outstanding at end of period
35,006,587
 
35,009,945
 
34,979,192
 
Average shares outstanding - diluted
35,019,292
 
35,057,576
 
34,960,139
 
Diluted earnings per share
$0.88
 
$0.61
 
$0.65
 
Dividends declared per share
$0.25
 
$0.25
 
$0.20
 
Dividend yield (annualized)
2.31
%
 
2.31
%
 
2.02
%
 
Dividends paid to net income
28.25
%
 
40.69
%
 
30.69
%
 
Book value
$26.27
 
$25.91
 
$25.37
 
Tangible book value (1)
$18.00
 
$17.63
 
$16.96
 
Market value
$43.36

$43.24
 
$39.58
 
 
 
 
 
 
 
 
Profitability Ratios (annualized)
 
 
 
 
 
 
Return on average assets
1.75
%
 
1.22
%
 
1.27
%
 
Return on average shareholders' equity
13.41
%
 
9.52
%
 
10.23
%
 
Return on average tangible shareholders' equity (2)
19.73
%
 
14.14
%
 
15.47
%
 
Efficiency ratio (FTE) (3)
51.33
%
 
50.09
%
 
50.16
%
 

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

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands, except per share data)
 
 
2018
 
2017
 
INTEREST INCOME
 
 
 
 
 
 
Loans, including fees
 
 
$198,296
 
$179,908
 
Investment securities:
 
 
 
 
 
 
Taxable
 
 
10,597
 
8,783
 
Tax-exempt
 
 
2,603
 
2,744
 
Dividends
 
 
1,741
 
1,352
 
Total Interest Income
 
 
213,237
 
192,787
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
Deposits
 
 
27,883
 
18,103
 
Borrowings and junior subordinated debt securities
 
 
10,758
 
6,779
 
Total Interest Expense
 
 
38,641
 
24,882
 
 
 
 
 
 
 
 
NET INTEREST INCOME
 
 
174,596
 
167,905
 
Provision for loan losses
 
 
12,279
 
12,901
 
Net Interest Income After Provision for Loan Losses
 
 
162,317
 
155,004
 
 
 
 
 
 
 
 
NONINTEREST INCOME
 
 
 
 
 
 
Net gain (loss) on sale of securities
 
 

 
3,987
 
Service charges on deposit accounts
 
 
9,765
 
9,218
 
Debit and credit card
 
 
9,487
 
8,952
 
Wealth management
 
 
7,782
 
7,237
 
Mortgage banking
 
 
2,133
 
2,280
 
Insurance
 
 
404
 
4,232
 
Gain on sale of a majority interest of insurance business
 
 
1,873
 

 
Other
 
 
6,642
 
6,906
 
Total Noninterest Income
 
 
38,086
 
42,812
 
 
 
 
 
 
 
 
NONINTEREST EXPENSE
 
 
 
 
 
 
Salaries and employee benefits
 
 
57,195
 
60,770
 
Data processing and information technology
 
 
7,610
 
6,670
 
Net occupancy
 
 
8,399
 
8,258
 
Furniture, equipment and software
 
 
6,096
 
5,746
 
Other taxes
 
 
4,928
 
3,268
 
Professional services and legal
 
 
3,120
 
2,868
 
Marketing
 
 
2,916
 
2,468
 
FDIC insurance
 
 
2,592
 
3,461
 
Other
 
 
16,174
 
16,451
 
Total Noninterest Expense
 
 
109,030
 
109,960
 
 
 
 
 
 
 
 
Income Before Taxes
 
 
91,373
 
87,856
 
Provision for income taxes
 
 
12,893
 
24,182
 
 
 
 
 
 
 
 
Net Income
 
 
$78,480
 
$63,674
 
 
 
 
 
 
 
 
Per Share Data:
 
 
 
 
 
 
Average shares outstanding - diluted
 
 
35,012,084
 
34,930,509
 
Diluted earnings per share
 
 
$2.24
 
$1.82
 
Dividends declared per share
 
 
$0.72
 
$0.60
 
Dividends paid to net income
 
 
32.00
%
 
32.82
%
 
 
 
 
 
 
 
 
Profitability Ratios (annualized)
 
 
 
 
 
 
Return on average assets
 
 
1.50
%
 
1.21
%
 
Return on average shareholders' equity
 
 
11.63
%
 
9.83
%
 
Return on average tangible shareholders' equity (6)
 
 
17.25
%
 
15.05
%
 
Efficiency ratio (FTE) (7)
 
 
50.59
%
 
51.78
%
 


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

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
ASSETS
 
 
 
 
 
 
Cash and due from banks, including interest-bearing deposits
$132,650
 
$137,933
 
$114,440
 
Securities, at fair value
682,535
 
688,341
 
697,954
 
Loans held for sale
4,207
 
3,801
 
47,936
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
2,826,372
 
2,788,641
 
2,681,693
 
Commercial and industrial
1,451,371
 
1,455,578
 
1,446,811
 
Commercial construction
283,783
 
299,787
 
432,887
 
Total Commercial Loans
4,561,526
 
4,544,006
 
4,561,391
 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
699,867
 
698,440
 
697,367
 
Home equity
472,451
 
471,622
 
487,806
 
Installment and other consumer
67,542
 
66,638
 
69,644
 
Consumer construction
6,421
 
5,412
 
4,550
 
Total Consumer Loans
1,246,281
 
1,242,112
 
1,259,367
 
Total Portfolio Loans
5,807,807
 
5,786,118
 
5,820,758
 
Allowance for loan losses
(60,556)
 
(60,517)
 
(56,712)
 
Total Portfolio Loans, Net
5,747,251
 
5,725,601
 
5,764,046
 
Federal Home Loan Bank and other restricted stock, at cost
31,178
 
35,782
 
33,120
 
Goodwill
287,446
 
287,446
 
291,670
 
Other assets
220,096
 
218,442
 
221,013
 
Total Assets
$7,105,363
 
$7,097,346
 
$7,170,179
 
 
 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
Noninterest-bearing demand
$1,412,127
 
$1,410,211
 
$1,348,939
 
Interest-bearing demand
561,191
 
553,729
 
646,195
 
Money market
1,367,181
 
1,267,623
 
1,036,726
 
Savings
817,545
 
845,526
 
940,989
 
Certificates of deposit
1,309,465
 
1,316,444
 
1,431,431
 
Deposits held for sale

 

 
38,960
 
Total Deposits
5,467,509
 
5,393,533
 
5,443,240
 
 
 
 
 
 
 
 
Borrowings:
 
 
 
 
 
 
Securities sold under repurchase agreements
45,200
 
44,724
 
39,923
 
Short-term borrowings
535,000
 
600,000
 
685,000
 
Long-term borrowings
45,434
 
46,062
 
12,911
 
Junior subordinated debt securities
45,619
 
45,619
 
45,619
 
Total Borrowings
671,253
 
736,405
 
783,453
 
Other liabilities
46,820
 
60,275
 
55,910
 
Total Liabilities
6,185,582
 
6,190,213
 
6,282,603
 
 
 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Total Shareholders' Equity
919,781
 
907,133
 
887,576
 
Total Liabilities and Shareholders' Equity
$7,105,363
 
$7,097,346
 
$7,170,179
 
 
 
 
 
 
 
 
Capitalization Ratios
 
 
 
 
 
 
Shareholders' equity / assets
12.94
%
 
12.78
%
 
12.38
%
 
Tangible common equity / tangible assets (4)
9.25
%
 
9.07
%
 
8.63
%
 
Tier 1 leverage ratio
10.13
%
 
9.87
%
 
9.25
%
 
Common equity tier 1 capital
11.42
%
 
11.18
%
 
10.70
%
 
Risk-based capital - tier 1
11.76
%
 
11.53
%
 
11.05
%
 
Risk-based capital - total
13.27
%
 
13.04
%
 
12.54
%
 


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

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Net Interest Margin (FTE) (QTD Averages)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Interest-bearing deposits with banks
$57,012
2.13%
$55,015
1.60%
$53,794
1.25%
Securities, at fair value
680,464
2.63%
685,132
2.60%
690,986
2.46%
Loans held for sale
1,571
4.71%
1,528
7.43%
15,789
3.88%
Commercial real estate
2,779,019
4.81%
2,774,882
4.71%
2,678,835
4.38%
Commercial and industrial
1,432,936
4.79%
1,431,861
4.66%
1,404,047
4.45%
Commercial construction
291,512
5.08%
324,934
4.76%
425,228
4.27%
Total Commercial Loans
4,503,467
4.82%
4,531,677
4.70%
4,508,110
4.39%
Residential mortgage
696,267
4.30%
691,634
4.23%
702,702
4.10%
Home equity
472,466
4.94%
472,927
4.81%
485,501
4.37%
Installment and other consumer
66,693
6.92%
67,186
6.79%
70,118
6.57%
Consumer construction
5,846
5.04%
4,570
4.76%
4,486
4.49%
Total Consumer Loans
1,241,272
4.69%
1,236,317
4.60%
1,262,807
4.34%
Total Portfolio Loans
5,744,739
4.79%
5,767,994
4.68%
5,770,917
4.38%
Total Loans
5,746,310
4.79%
5,769,522
4.68%
5,786,706
4.38%
Federal Home Loan Bank and other restricted stock
28,512
6.28%
34,130
6.30%
30,184
4.61%
Total Interest-earning Assets
6,512,298
4.55%
6,543,799
4.44%
6,561,670
4.15%
Noninterest-earning assets
496,268
 
491,246
 
510,681
 
Total Assets
$7,008,566
 
$7,035,045
 
$7,072,351
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing demand
$566,579
0.36%
$571,260
0.31%
$647,442
0.25%
Money market
1,330,489
1.47%
1,251,171
1.29%
999,892
0.87%
Savings
823,215
0.20%
851,702
0.20%
979,767
0.21%
Certificates of deposit
1,310,526
1.51%
1,295,473
1.32%
1,457,649
0.98%
Total interest-bearing Deposits
4,030,809
1.07%
3,969,606
0.93%
4,084,750
0.66%
Securities sold under repurchase agreements
42,183
0.52%
48,980
0.41%
45,158
0.16%
Short-term borrowings
455,689
2.28%
617,891
2.06%
600,893
1.30%
Long-term borrowings
45,699
2.36%
46,317
2.24%
13,162
3.01%
Junior subordinated debt securities
45,619
4.79%
45,619
4.61%
45,619
3.71%
Total Borrowings
589,190
2.35%
758,807
2.12%
704,832
1.42%
Total interest-bearing Liabilities
4,619,999
1.23%
4,728,413
1.12%
4,789,582
0.77%
Noninterest-bearing liabilities
1,475,059
 
1,403,771
 
1,401,755
 
Shareholders' equity
913,508
 
902,861
 
881,014
 
Total Liabilities and Shareholders' Equity
$7,008,566
 
$7,035,045
 
$7,072,351
 
 
 
 
 
 
 
 
Net Interest Margin (5)
 
3.67%
 
3.64%
 
3.59%


- more -

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

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2018
 
2017
 
Net Interest Margin (FTE) (YTD Averages)
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Interest-bearing deposits with banks
 
 
$56,015
1.80%
$56,126
0.99%
Securities, at fair value
 
 
684,146
2.59%
699,150
2.46%
Loans held for sale
 
 
1,681
5.90%
7,734
3.63%
Commercial real estate
 
 
2,748,620
4.70%
2,623,360
4.31%
Commercial and industrial
 
 
1,432,133
4.62%
1,415,941
4.30%
Commercial construction
 
 
330,219
4.76%
433,748
4.02%
Total Commercial Loans
 
 
4,510,972
4.68%
4,473,049
4.28%
Residential mortgage
 
 
694,075
4.24%
700,996
4.10%
Home equity
 
 
475,450
4.74%
482,336
4.30%
Installment and other consumer
 
 
66,913
6.80%
69,401
6.51%
Consumer construction
 
 
4,749
4.86%
4,807
4.33%
Total Consumer Loans
 
 
1,241,187
4.57%
1,257,540
4.31%
Total Portfolio Loans
 
 
5,752,159
4.66%
5,730,589
4.29%
Total Loans
 
 
5,753,840
4.66%
5,738,323
4.29%
Federal Home Loan Bank and other restricted stock
 
 
31,277
6.88%
31,977
4.63%
Total Interest-earning Assets
 
 
6,525,278
4.43%
6,525,576
4.06%
Noninterest-earning assets
 
 
492,428
 
509,750
 
Total Assets
 
 
$7,017,706
 
$7,035,326
 
 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
 
 
 
 
 
 
Interest-bearing demand
 
 
$571,040
0.31%
$643,423
0.21%
Money market
 
 
1,259,071
1.29%
958,619
0.74%
Savings
 
 
849,558
0.20%
1,013,318
0.21%
Certificates of deposit
 
 
1,320,374
1.32%
1,439,715
0.94%
Total Interest-bearing deposits
 
 
4,000,043
0.93%
4,055,075
0.60%
Securities sold under repurchase agreements
 
 
46,292
0.44%
48,031
0.07%
Short-term borrowings
 
 
556,017
2.00%
651,494
1.07%
Long-term borrowings
 
 
46,313
2.20%
13,759
2.96%
Junior subordinated debt securities
 
 
45,619
4.52%
45,619
3.59%
Total Borrowings
 
 
694,241
2.07%
758,903
1.19%
Total Interest-bearing Liabilities
 
 
4,694,284
1.10%
4,813,978
0.69%
Noninterest-bearing liabilities
 
 
1,421,276
 
1,355,636
 
Shareholders' equity
 
 
902,146
 
865,712
 
Total Liabilities and Shareholders' Equity
 
 
$7,017,706
 
$7,035,326
 
 
 
 
 
 
 
 
Net Interest Margin (8)
 
 
 
3.63%
 
3.55%


- more -

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

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Nonperforming Loans (NPL)
 
 
 
 
 
 
Commercial loans:
 
% NPL
 
% NPL
 
% NPL
Commercial real estate
$4,595
0.16%
$4,617
0.17%
$6,571
0.25%
Commercial and industrial
4,367
0.30%
4,853
0.33%
7,349
0.51%
Commercial construction
1,228
0.43%
1,870
0.62%
4,068
0.94%
Total Nonperforming Commercial Loans
10,190
0.22%
11,340
0.25%
17,988
0.39%
Consumer loans:
 
 
 
 
 
 
Residential mortgage
6,721
0.96%
6,112
0.88%
7,782
1.11%
Home equity
3,783
0.80%
3,871
0.82%
3,675
0.75%
Installment and other consumer
45
0.07%
49
0.07%
48
0.07%
Total Nonperforming Consumer Loans
10,549
0.85%
10,032
0.81%
11,505
0.91%
Total Nonperforming Loans
$20,739
0.36%
$21,372
0.37%
$29,493
0.50%

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Loan Charge-offs
 
 
 
 
 
 
Charge-offs
$1,234
 
$8,632
 
$2,660
 
Recoveries
(811)
 
(758)
 
(1,171)
 
Net Loan Charge-offs
$423
 
$7,874
 
$1,489
 
 
 
 
 
 
 
 
Net Loan Charge-offs
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
$77
 
$52
 
($145)
 
Commercial and industrial
(298)
 
7,030
 
401
 
Commercial construction
(29)
 
320
 
980
 
Total Commercial Loan Charge-offs
(250)
 
7,402
 
1,236
 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
54
 
96
 
44
 
Home equity
402
 
129
 
10
 
Installment and other consumer
256
 
289
 
243
 
Consumer construction
(39)
 
(42)
 
(44)
 
Total Consumer Loan Charge-offs
673
 
472
 
253
 
Total Net Loan Charge-offs
$423
 
$7,874
 
$1,489
 

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2018
 
2017
 
Loan Charge-offs
 
 
 
 
 
 
Charge-offs
 
 
$11,311
 

$11,423

 
Recoveries
 
 
(3,198)
 
(2,459
)
 
Net Loan Charge-offs
 
 
$8,113
 

$8,964

 
 
 
 
 
 
 
 
Net Loan Charge-offs
 
 
 
 
 
 
Commercial loans:
 
 
 
 
 
 
Commercial real estate
 
 
$80
 

$1,685

 
Commercial and industrial
 
 
7,443
 
3,542

 
Commercial construction
 
 
(838)
 
1,255

 
Total Commercial Loan Charge-offs
 
 
6,685
 
6,482

 
Consumer loans:
 
 
 
 
 
 
Residential mortgage
 
 
203
 
1,220

 
Home equity
 
 
408
 
546

 
Installment and other consumer
 
 
905
 
795

 
Consumer construction
 
 
(88)
 
(79
)
 
Total Consumer Loan Charge-offs
 
 
1,428
 
2,482

 
Total Net Loan Charge-offs
 
 
$8,113
 

$8,964

 


- more -

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

 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
(dollars in thousands)
Quarter
 
Quarter
 
Quarter
 
Asset Quality Data
 
 
 
 
 
 
Nonperforming loans
$20,739
 
$21,372
 
$29,493
 
OREO
3,068
 
2,999
 
1,033
 
Nonperforming assets
23,807
 
24,371
 
30,526
 
Troubled debt restructurings (nonaccruing)
7,143
 
7,395
 
10,203
 
Troubled debt restructurings (accruing)
22,226
 
24,454
 
15,605
 
Total troubled debt restructurings
29,369
 
31,849
 
25,808
 
Nonperforming loans / loans
0.36
%
 
0.37
%
 
0.50
%
 
Nonperforming assets / loans plus OREO
0.41
%
 
0.42
%
 
0.52
%
 
Allowance for loan losses / total portfolio loans
1.04
%
 
1.05
%
 
0.97
%
 
Allowance for loan losses / nonperforming loans
292
%
 
283
%
 
192
%
 
Net loan charge-offs (recoveries)
$423
 
$7,874
 
$1,489
 
Net loan charge-offs (recoveries)(annualized) / average loans
0.03
%
 
0.55
%
 
0.10
%
 

 
 
 
Nine Months Ended September 30,
 
(dollars in thousands)
 
 
2018
 
2017
 
Asset Quality Data
 
 
 
 
 
 
Net loan charge-offs (recoveries)
 
 
$8,113
 
$8,964
 
Net loan charge-offs (recoveries)(annualized) / average loans
 
 
0.19
%
 
0.21
%
 


- more -

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

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
 
2018
 
2018
 
2017
 
 
Third
 
Second
 
Third
 
 
Quarter
 
Quarter
 
Quarter
 
 
 
 
 
 
 
 
(1) Tangible Book Value (non-GAAP)
 
 
 
 
 
 
 Total shareholders' equity
$919,781
 
$907,133
 
$887,576
 
      Less: goodwill and other intangible assets
(290,171)
 
(290,355)
 
(295,627)
 
     Tax effect of other intangible assets
572
 
611
 
1,385
 
 Tangible common equity (non-GAAP)
$630,182
 
$617,389
 
$593,334
 
 Common shares outstanding
35,007
 
35,010
 
34,979
 
 Tangible book value (non-GAAP)
$18.00
 
$17.63
 
$16.96
 
 
 
 
 
 
 
 
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
 
 
 
 
 
 
  Net income (annualized)
$122,516
 
$85,980
 
$90,144
 
       Plus: amortization of intangibles (annualized)
731
 
869
 
930
 
       Tax effect of amortization of intangibles (annualized)
(154)
 
(183)
 
(326)
 
  Net income before amortization of intangibles (annualized)
$123,093
 
$86,666
 
$90,748
 
 
 
 
 
 
 
 
  Average total shareholders' equity
$913,508
 
$902,861
 
$881,014
 
       Less: average goodwill and other intangible assets
(290,264)
 
(290,464)
 
(295,775)
 
       Tax effect of average goodwill and other intangible assets
592
 
634
 
1,437
 
  Average tangible equity (non-GAAP)
$623,836
 
$613,031
 
$586,676
 
  Return on average tangible equity (non-GAAP)
19.73
%
 
14.14
%
 
15.47
%
 
 
 
 
 
 
 
 
(3) Efficiency Ratio (non-GAAP)
 
 
 
 
 
 
Noninterest expense
$37,085
 
$35,863
 
$36,553
 
 
 
 
 
 
 
 
Net interest income per consolidated statements of net income
$59,262
 
$58,403
 
$57,456
 
     Less: net (gains) losses on sale of securities

 

 

 
     Plus: taxable equivalent adjustment
951
 
938
 
1,867
 
Net interest income (FTE) (non-GAAP)
60,213
 
59,341
 
59,323
 
Noninterest income
12,042
 
12,251
 
13,551
 
Net interest income (FTE) (non-GAAP) plus noninterest income
$72,255
 
$71,592
 
$72,874
 
Efficiency ratio (non-GAAP)
51.33
%
 
50.09
%
 
50.16
%
 
 
 
 
 
 
 
 
(4) Tangible Common Equity / Tangible Assets (non-GAAP)
 
 
 
 
 
 
 Total shareholders' equity
$919,781
 
$907,133
 
$887,576
 
      Less: goodwill and other intangible assets
(290,171)
 
(290,355)
 
(295,627)
 
      Tax effect of goodwill and other intangible assets
572
 
611
 
1,385
 
 Tangible common equity (non-GAAP)
$630,182
 
$617,389
 
$593,334
 
 
 
 
 
 
 
 
 Total assets
$7,105,363
 
$7,097,346
 
$7,170,179
 
      Less: goodwill and other intangible assets
(290,171
)
 
(290,355)
 
(295,627)
 
      Tax effect of goodwill and other intangible assets
572
 
611
 
1,385
 
 Tangible assets (non-GAAP)
$6,815,764
 
$6,807,602
 
$6,875,937
 
 Tangible common equity to tangible assets (non-GAAP)
9.25
%
 
9.07
%
 
8.63
%
 
 
 
 
 
 
 
 
(5) Net Interest Margin Rate (FTE) (non-GAAP)
 
 
 
 
 
 
 Interest income
$73,627
 
$71,581
 
$66,723
 
      Less: interest expense
(14,365)
 
(13,178)
 
(9,267)
 
 Net interest income per consolidated statements of net income
59,262
 
58,403
 
57,456
 
      Plus: taxable equivalent adjustment
951
 
938
 
1,867
 
 Net interest income (FTE) (non-GAAP)
60,213
 
59,341
 
59,323
 
 Net interest income (FTE) (annualized)
238,889
 
238,016
 
235,358
 
 Average earning assets
$6,512,298
 
$6,543,799
 
$6,561,670
 
 Net interest margin - (FTE) (non-GAAP)
3.67
%
 
3.64
%
 
3.59
%
 

- more -

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

 
 
 
Nine months ended September 30,
 
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
(6) Return on Average Tangible Shareholders' Equity (non-GAAP)
 
 
 
 
 
 
  Net income (annualized)
 
 
$104,927
 
$85,131
 
  Plus: amortization of intangibles (annualized)
 
 
878
 
1,275
 
  Tax effect of amortization of intangibles (annualized)
 
 
(184)
 
(446)
 
  Net income before amortization of intangibles (annualized)
 
 
$105,621
 
$85,960
 
 
 
 
 
 
 
 
  Average total shareholders' equity
 
 
$902,146
 
$865,712
 
  Less: average goodwill and other intangible assets
 
 
(290,493)
 
(296,086)
 
  Tax effect of average goodwill and other intangible assets
 
 
636
 
1,546
 
  Average tangible equity (non-GAAP)
 
 
$612,290
 
$571,172
 
  Return on average tangible equity (non-GAAP)
 
 
17.25
%
 
15.05
%
 
 
 
 
 
 
 
 
(7) Efficiency Ratio (non-GAAP)
 
 
 
 
 
 
Noninterest expense
 
 
$109,030
 
$109,960
 
 
 
 
 
 
 
 
Net interest income per consolidated statements of net income
 
 
$174,596
 
$167,905
 
Less: net (gains) losses on sale of securities
 
 

 
(3,987
)
 
Plus: taxable equivalent adjustment
 
 
2,830
 
5,614
 
Net interest income (FTE) (non-GAAP)
 
 
177,426
 
169,532
 
Noninterest income
 
 
38,086
 
42,812
 
Net interest income (FTE) (non-GAAP) plus noninterest income
 
 
$215,512
 
$212,344
 
Efficiency ratio (non-GAAP)
 
 
50.59
%
 
51.78
%
 
 
 
 
 
 
 
 
(8) Net Interest Margin Rate (FTE) (non-GAAP)
 
 
 
 
 
 
 Interest income
 
 
$213,237
 
$192,787
 
 Less: interest expense
 
 
(38,641)
 
(24,882)
 
 Net interest income per consolidated statements of net income
 
 
174,596
 
167,905
 
 Plus: taxable equivalent adjustment
 
 
2,830
 
5,614
 
 Net interest income (FTE) (non-GAAP)
 
 
177,426
 
173,519
 
 Net interest income (FTE) (annualized)
 
 
237,218
 
231,994
 
 Average earning assets
 
 
$6,525,278
 
$6,525,576
 
 Net interest margin - (FTE) (non-GAAP)
 
 
3.63
%
 
3.55
%
 


# # #