EX-99.1 2 d781114dex991.htm EX-99.1 EX-99.1
Todd Brice
President and Chief Executive Officer
Mark Kochvar
Chief Financial Officer
Second Quarter 2014
Exhibit 99.1

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.
1

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. S&T believes these financial measures provide information useful to investors in
understanding our operational performance and business and performance trends which 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.
2

Corporate Profile
3

Performance Summary
Dollars in thousands, except per share data
*Annualized
** Refer to appendix for reconciliation of Non-GAAP financial measures
4

STBA Investment Thesis
•
Stable Western PA economy
•
Long-term Marcellus Shale benefit
•
Strategic & effective acquisitions/expansions
•
Loan growth
•
Excellent asset quality
•
Demonstrated expense discipline and efficiency
•
Historically high performer
•
Undervalued compared to peer
5

Source:  Bureau of Labor Statistics
Seasonally adjusted
6
US
PA
Pittsburgh MSA
3.5%
4.5%
5.5%
6.5%
7.5%
8.5%
9.5%
10.5%
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Unemployment

Source:  Federal Housing Finance Agency
All Transactions; Not seasonally adjusted
Index 2005: Q1=100
7
US
PA
Pittsburgh MSA
90
95
100
105
110
115
120
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Housing Price Index

Long-Term Marcellus Shale Benefit
8

Strategic and Effective Acquisitions
•
2012 -
Gateway Bank of Pennsylvania
$ 126
•
2012 -
Mainline Bancorp
242
•
2008 -
IBT Bancorp
827
•
2002 -
Peoples Financial Corp
344
•
1998 -
Branch Purchase from Mellon
39
•
1997 -
Peoples Bank of Unity
287
•
1991 -
Atlantic Financial Savings Bank
100
•
1991 -
Vanguard Savings Bank
112
Assets/Deposits Acquired
$2,077
Dollars in Millions
9

Strategic and Effective Expansions
•
2012 –
Loan production office opened in northeast Ohio, August 2012
•
2014 –
Loan production office opened in central Ohio, January 2014
•
2014 –
Hired seven bankers in State College, PA and branch opened
in June, 2014
10

11
2010
2011
2012
2013
2014
-$200
-$150
-$100
-$50
$0
$50
$100
$150
$0
$50
$100
$150
$200
$250
$300
$350
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Loan Growth
$ in millions

* Bank Holding Companies $3-10 Billion of Assets
12
Non Performing Loans / Total Loans
Peer*
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2010
2011
2012
2013
1Q 14
2Q 14

* Bank Holding Companies $3-10 Billion of Assets
13
Peer*
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2010
2011
2012
2013
1Q 14
2Q 14
Net Charge Offs / Average Loans

* Bank Holding Companies $3-10 Billion of Assets
14
Peer*
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
2010
2011
2012
2013
1Q 14
2Q 14
Non Interest Expense / Average Assets

15
Full Time Equivalent Employees
IBT
Mainline
Gateway
750
800
850
900
950
1,000
1,050
2008
2009
2010
2011
2012
2013
2014

* Bank Holding Companies $3-10 Billion of Assets
16
Return on Average Assets
Peer*
0.0%
0.5%
1.0%
1.5%
2.0%
2010
2011
2012
2013
1Q 14
2Q 14

* Bank Holding Companies $3-10 Billion of Assets
17
Peer*
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
2010
2011
2012
2013
1Q 14
2Q 14
Return on Average Equity

Source: Bloomberg
*KRX –
KBW Regional Banking Index as of  8.19.14
18

4 Lines of Business
19
Commercial Banking
Retail Banking
Wealth Management
Insurance

Commercial Banking
•
39 commercial lenders
•
15 business bankers
•
Privately held companies with sales
up to $150 million
•
Northeast Ohio loan production office,
August, 2012
•
Central Ohio loan production office,
January, 2014
20

Retail Banking
•
Over 110,000 households
•
55 branches
•
Average branch size of $65.7 million
•
Over 80,000 customers enrolled in online banking
•
Over 24,000 customers enrolled in mobile banking
21

Wealth Management
•
$1.9 billion AUM
•
3 divisions
–
S&T Trust
–
S&T Financial Services
–
RIA/Stewart Capital
•
Annual revenue of $10.7 million; double digit growth
•
Mineral management capabilities
•
Stewart Capital Mid-Cap Fund (SCMFX) with over $80
million in assets; Top 10% performance YTD (6.30.14)
22

S&T-Evergreen Insurance
•
Full service agency
–
Commercial P&C (75%)
–
Group life and health (13%)
–
Personal lines (12%)
•
Annual revenue of $5.4 million
•
Focus on increasing penetration of
S&T customer base
23

The Right Size
•
Big enough to:
–
Provide full complement of products and services
–
Access technology
–
Access capital markets
–
Attract talent
–
Expand –
mergers and acquisitions/de novo
•
Small enough to:
–
Stay close to our customers
–
Understand our markets
–
Be responsive
24

Income Statement
Dollars in thousands, except per share data
25

Balance Sheet
Dollars in thousands
26

Loan Portfolio
Dollars in thousands
27

Asset Quality
28
Dollars in thousands

Capital Ratios
**
Refer to appendix for reconciliation of Non-GAAP financial measures
29

APPENDIX –
Non-GAAP Measures
30