 First Quarter 2012
Filed by S&T Bancorp, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12 of
the Securities Exchange Act of 1934
Subject Company: S&T Bancorp, Inc
Commission File No.: 000-12508
Exhibit 99.1 |
 Todd
Brice President and
Chief Executive Officer
Mark Kochvar
Sr. EVP and
Chief Financial Officer |
 3
Forward Looking Statement
and Risk Factor
•
This presentation contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward- looking statements
include, among others, statements regarding trends, strategies, plans, beliefs,
intentions, expectations, goals and opportunities. Forward looking
statements are typically identified by words or phrases such as believe,
expect, anticipate, intend, estimate, assume, strategy, plan, outlook,
outcome, continue, remain, trend and variations of such words and similar
expressions, or future or conditional verbs such as will, would,
should, could, may or similar
expressions. Actual results and performance could differ materially from
those anticipated by these forward-looking statements. Factors
that could cause such a difference include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows, loan demand,
asset quality, including real estate and other collateral values, and
competition. •
S&T cautions that these forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. These
forward-looking statements speak only as of the date hereof, and
S&T assumes no duty to update forward-looking statements. Subsequent
written or oral statements attributable to S&T or persons acting
on its behalf are expressly
qualified in their entirety by the cautionary statements contained herein and
those in S&T’s reports previously and subsequently filed with the
Securities and Exchange Commission. |
 4
Non-GAAP Financial Measures
•
In
addition
to
the
results
of
operations
presented
in
accordance
with
Generally
Accepted
Accounting
Principles
(GAAP),
S&T
management
uses
and
this
presentation
contains
or
references,
certain
non-GAAP
financial
measures,
such
as
net
interest
income
on
a
fully
taxable
equivalent
basis,
that
S&T
believes
provide
information
useful
to
investors
in
understanding
our
underlying
operational
performance
and
our
business
and
performance
trends
as
they
facilitate
comparisons
with
the
performance
of
others
in
the
financial
services
industry.
Although
S&T
believes
that
these
non-GAAP
financial
measures
enhance
investors’
understanding
of
S&T’s
business
and
performance,
these
non-GAAP
financial
measures
should
not
be
considered
an
alternative
to
GAAP.
The
non-GAAP
financial
measures
contained
therein
should
be
read
in
conjunction
with
the
audited
financial
statements
and
analysis
as
presented
in
the
Annual
Report
on
Form
10-K
as
well
as
the
unaudited
financial
statements
and
analyses
as
presented
in
the
respective
Quarterly
Reports
on
Forms
10-Q
for
S&T
Bancorp,
Inc.
and
subsidiaries. |
 5
S&T Bancorp Corporate Profile |
 6
Merger Overview
S&T Bancorp, Inc.
Mainline Bancorp, Inc.
Gateway Bank of PA
Total Assets
$4,120.0
$235.8
$120.3
Gross Loans
3,132.6
133.7
101.5
Total Deposits
3,335.9
205.9
96.9
Total Equity
490.5
22.1
15.2
Book Value Per Share
17.44
56.72
8.84
Tangible Book Value Per
Share
11.36
56.43
8.84
Total Branches
49
8
2
Date as of 12/31/11
Dollars in millions, except per share data |
 Investor Highlights
•
Historically High Performing Bank
•
Experienced Management Team
•
Relationship Banking Model
•
Well-Positioned for Growth
7 |
 8
*
2012 peer banks per 2012 proxy statement
Common Return on Assets |
 9
Common Return on Equity
*
2012 peer banks per 2012 proxy statement |
 10
Summary
2011
2010
2009
Net Income Available to Common Shareholders
$39.7
$37.3
$2.0
Diluted Earnings per Common Share
$1.41
$1.34
$0.07
Common Return on Average Assets
0.97%
0.90%
0.05%
Common Return on Average Equity
6.78%
6.58%
0.37%
Dollars in millions, except per share data |
 11
Income Statement
Dollars in millions, except per share data
*
Refer to appendix for reconciliation of Non-GAAP financial measures
2011
2010
2009
Net Interest Income –
FTE
*
$141.5
$150.5
$151.2
Noninterest Income
44.2
46.9
43.7
Total Revenue
185.7
197.4
194.9
Noninterest Expense
(103.9)
(105.6)
(108.1)
Security (Losses) Gains
(0.1)
0.3
(5.1)
Provision for Loan Losses
(15.6)
(29.5)
(72.4)
Net Income Before Taxes
66.1
62.6
9.3
Taxes
(18.8)
(19.1)
(1.4)
Preferred Stock Dividends/Amortization
(7.6)
(6.2)
(5.9)
Net Income Available to Common Shareholders
$ 39.7
$ 37.3
$ 2.0
Diluted Earnings per Common Share
$ 1.41
$ 1.34
$ 0.07 |
 12
Marcellus Shale Distribution |
 Marcellus Activity in S&T’s Market Area
Permits
Issued
Wells
Drilled
2009
283
114
2010
358
170
2011
456
213
2012
*
169
40
*
January –
February 2012
Source: Pennsylvania DEP
13 |
 14
|
 15
Quarterly Summary
2012
2011
2011
First
Quarter
Fourth
Quarter
First
Quarter
Net Income Available to Common
Shareholders
$3.5
$9.3
$4.7
Diluted Earnings per Common Share
$0.12
$0.33
$0.17
Common
Return
on
Average
Assets
*
0.34%
0.91%
0.47%
Common
Return
on
Average
Equity
*
2.82%
6.41%
3.31%
Dollars in millions, except per share data
*
Annualized |
 16
Income Statement
Dollars in millions, except per share data
*
Refer to appendix for reconciliation of Non-GAAP financial measures
2012
2011
2011
First
Quarter
Fourth
Quarter
First
Quarter
Net Interest Income –
FTE
*
$34.5
$35.1
$35.9
Noninterest Income
12.2
11.6
11.0
Total Revenue
46.7
46.7
46.9
Noninterest Expense
(32.7)
(26.7)
(27.5)
Security Gains
0.8
-
-
Provision for Loan Losses
(9.3)
(2.3)
(10.6)
Net Income Before Taxes
5.5
17.7
8.8
Taxes
(2.0)
(5.5)
(2.5)
Preferred Stock Dividends/Amortization
-
(2.9)
(1.6)
Net Income Available to Common
Shareholders
$ 3.5
$9.3
$4.7
Diluted Earnings per Common Share
$ 0.12
$0.33
$0.17 |
 17
Balance Sheet
Dollars in millions
Mar. 31,
2012
Dec. 31,
2011
Mar. 31,
2011
Securities
$383
$376
$353
Interest Bearing Balances
333
209
59
Loans, Net
3,154
3,084
3,243
Other
461
451
435
Total Assets
$4,331
$4,120
$4,090
Deposits
$3,522
$3,336
$3,306
Borrowings
238
228
158
Other Liabilities
67
65
46
Equity
504
491
580
Total Liabilities & Equity
$4,331
$4,120
$4,090 |
 18
Loan Portfolio
Dollars in millions
Mar. 31,
2012
Dec. 31,
2011
Mar. 31,
2011
Consumer
Home Equity
$ 442
$ 411
$ 436
Residential Mortgage
383
359
343
Installment and Other Consumer
82
67
71
Construction
2
3
4
Total Consumer
909
840
854
Commercial
Commercial Real Estate
1,417
1,415
1,489
Commercial & Industrial
703
686
714
Construction
169
189
245
Total Commercial
2,289
2,290
2,448
Total Portfolio Loans
3,198
3,130
3,302
Total Loans Held for Sale
3
3
2
Total Loans
$3,201
$3,133
$ 3,304 |
 19
Asset Quality
*
YTD March 31, 2012 annualized
Mar. 31,
December 31,
2012
2011
2010
2009
2008
Nonperforming Loans / Total Loans
2.01%
1.79%
1.90%
2.67%
1.19%
Nonperforming Assets / Total Loans Plus
OREO
2.12
1.92
2.07
2.80
1.21
Net Charge-offs / Average Loans
1.32
*
0.56
1.11
1.60
0.31
Loan Loss Reserve / Total Loans
1.49
1.56
1.53
1.75
1.20
Loan Loss Reserve / Nonperforming Loans
74
87
80
66
101 |
 20
Nonperforming Loans
81
2.30
52.5
Total Commercial
17
6.78
11.4
Construction
13
1.18
8.3
Commercial & Industrial
51
2.32
32.8
Commercial Real Estate
Commercial
19
1.32
12.0
Total Consumer
-
8.19
0.2
Construction
-
-
-
Installment and Other Consumer
13
2.16
8.3
Residential Mortgage
6
0.79
$ 3.5
Home Equity
% of
Total NPL
Consumer
% NPL
Mar. 31,
2012
Total Nonperforming Loans
100
2.02
$ 64.5
Nonperforming
Loans
(NPL)
are
loans
where
collection
of
interest
or
principal
is
doubtful
or
generally
when
interest
or
principal
payments
are
90
days
or
more
past
due.
Dollars
in
millions
Specific
reserves
$6.0
USDA
Guarantee
$3.5 |
 21
Construction & CRE by Type
Type
Mar. 31,
2012
% of Total
Mar. 31,
2011
Change
Retail/Strip Malls
$ 290
18
$ 297
$( 7)
Offices
203
13
226
(23)
Hotels
195
12
195
-
Residential Rental Properties
183
12
238
(55)
Healthcare/Education
104
7
108
( 4)
Manuf/Industrial/Warehouse
102
6
118
(16)
RE Develop –
CL
95
6
93
2
Flex/Mixed Used
90
6
113
(23)
RE Develop –
Residential
55
3
82
(27)
Miscellaneous
269
17
264
5
Total
$1,586
100
$1,734
($148)
Dollars in millions |
 22
Construction & CRE –
NPL by Type
Type
Mar. 31,
2012
% NPL
% of
Total NPL
Retail/Strip Malls
$ 3.3
1.12
8
Offices
4.0
1.95
9
Hotels
0.7
0.36
2
Residential Rental Properties
3.6
1.97
8
Healthcare/Education
0.6
0.57
1
Manuf/Industrial/Warehouse
4.6
4.50
10
RE Develop –
CL
2.8
2.93
6
Flex/Mixed Used
-
-
-
RE Develop –
Residential
8.8
16.18
20
Miscellaneous
15.9
5.91
36
Total
$44.3
2.79
100
Dollars in millions |
 23
Net Interest Margin
2012
2011
2011
First
Quarter
Fourth
Quarter
First
Quarter
Securities -
FTE
3.29%
3.36%
3.53%
Interest Bearing Balances-FTE
0.20
0.28
0.23
Loans -
FTE
4.74
4.83
4.92
Total Earning Assets
4.31
4.45
4.72
Deposits
0.75
0.83
0.97
Borrowings
1.82
2.43
3.14
Total Costing Liabilities
0.84
0.93
1.10
Net Interest Margin –
FTE
*
3.69
3.79
3.92
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 24
Noninterest Income
Dollars in millions
2012
2011
2011
First
Quarter
Fourth
Quarter
First
Quarter
Community Banking
$ 5.8
$ 6.1
$ 5.6
Wealth Management
2.4
2.0
2.1
Insurance
2.2
1.8
2.1
Letters of Credit / Loan
0.7
0.6
0.5
Mortgage Banking
0.7
0.8
0.6
Other
0.4
0.3
0.1
Total
$12.2
$11.6
$11.0 |
 25
Securities
Mar. 31,
2012
Dec. 31,
2011
Mar. 31,
2011
Agencies
$160
$143
$125
Agency CMO
59
65
74
Agency MBS
46
49
59
Municipals
87
89
62
Equities
12
12
12
FHLB Stock
19
18
21
Total
$383
$376
$353
All securities are classified as available-for sale
Dollars in millions |
 26
Deposits
Dollars in millions
Mar. 31,
2012
Dec. 31,
2011
Mar. 31,
2011
Noninterest-bearing Demand
$ 860
$ 819
$ 803
Interest-bearing Demand
306
283
286
Money Market
291
278
241
Savings
883
803
755
Certificates of Deposit < $100K
807
795
781
Certificates Of Deposit > $100K
375
358
440
Total
$3,522
$3,336
$3,306 |
 27
Capital Ratios
Mar. 31,
2012
Dec. 31,
2011
Mar. 31,
2011
**
Well-
Capitalized
Leverage
9.20%
9.17%
11.19%
5.00%
Tier 1 –
Risk-Based Capital
11.62
11.63
13.54
6.00
Total –
Risk-Based Capital
15.14
15.20
16.99
10.00
Tangible Common Equity /
Tangible Assets
*
7.87
8.09
7.70
NA
**
Includes CPP of $108.7 million
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 28 |
 2011
2010
2009
Interest Income per Consolidated Statements of Income
$165.1
$180.4
$195.1
Adjustment to Fully Taxable-equivalent Basis
4.1
4.7
5.2
Interest Income Adjusted to Fully Taxable-equivalent Basis
169.2
185.1
200.3
Interest Expense per Consolidated Statements of Income
27.7
34.6
49.1
Net Interest Income Adjusted to Fully Taxable-
equivalent Basis (non-GAAP)
$141.5
$150.5
$151.2
APPENDIX –
Non-GAAP Measures
Dollars in millions
29 |
 2012
2011
2011
First
Quarter
Fourth
Quarter
First
Quarter
Interest Income per Consolidated Statements of Income
$39.1
$40.2
$44.2
Adjustment to Fully Taxable-equivalent Basis
1.2
1.1
1.0
Interest Income Adjusted to Fully Taxable-equivalent Basis
40.3
41.3
43.2
Interest Expense per Consolidated Statements of Income
5.8
6.2
7.3
Net Interest Income Adjusted to Fully Taxable-
equivalent Basis (non-GAAP)
$34.5
$35.1
$35.9
APPENDIX –
Non-GAAP Measures
Dollars in millions
30 |
 Mar. 31
2012
Dec. 31,
2011
Mar. 31,
2011
Tangible Common Equity/Tangible Assets
Common Equity/Assets (GAAP Basis)
11.65%
11.91%
11.58%
Effect of Excluding Intangible Assets
-3.78%
-3.82%
-3.88%
Tangible Common Equity/Tangible Assets
7.87%
8.09%
7.70%
APPENDIX –
Non-GAAP Measures /cont./
Dollars in millions
31 |