INDIANA, Pa., July19, 2018
/PRNewswire/ -- 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 second quarter 2018 earnings.
Second quarter net income was $21.4
million, or $0.61 diluted
earnings per share (EPS), compared to second quarter of 2017
net income of $22.8 million, or
$0.65 diluted EPS and first quarter
of 2018 net income of $26.2 million,
or $0.75 diluted EPS.
Second Quarter of 2018 Highlights:
- Return on average assets was 1.22%, return on average
shareholders' equity was 9.52% and return on average tangible
shareholders' equity (non-GAAP) was 14.14%.
- Net interest margin (FTE) (Non-GAAP) improved 5 basis points to
3.64% and net interest income increased $1.5
million to $58.4 million
compared to the first quarter of 2018.
- Total portfolio loans increased $55.5
million, or 3.9% annualized, compared to the first quarter
of 2018.
- Expenses continue to be well controlled with an efficiency
ratio (non-GAAP) of 50.09% compared to 51.48% in the second quarter
of 2017.
- S&T declared a $0.25 per
share dividend which is an increase of 25% compared to a
$0.20 dividend in the same period
last year.
"Our core operating performance continues to be strong with net
interest income and net interest margin improvement combined with
excellent expense control," said Todd
Brice, president and chief executive officer of
S&T. "Loan growth resumed in the second quarter despite a
notable increase in competition. We remain disciplined in our loan
growth strategy with a strong focus on maintaining spreads."
Net Interest Income
Net interest income increased $1.5
million to $58.4 million for
the second quarter of 2018 compared to $56.9
million for the first quarter of 2018. Net interest margin
on a fully taxable equivalent basis (FTE) (non-GAAP) increased 5
basis points to 3.64% from 3.59% for the first quarter of 2018. The
increases in short term interest rates in March and June of 2018
positively impacted both net interest income and net interest
margin. Loan rates increased 18 basis points to 4.68% compared to
4.50% in the prior quarter, while total interest-bearing
liabilities increased 17 basis points to 1.12% compared to
0.95%.
Asset Quality
Net charge-offs and provision for loan losses were significantly
impacted by a $5.2 million loan
charge-off, or $0.12 per diluted EPS,
arising from a participation loan agreement with a lead bank and
other participating banks. The loss resulted from fraudulent
activities believed to be perpetrated by one or more executives
employed by the borrower and its related entities. S&T's total
exposure consisted of the participation loan of $4.9 million and a direct exposure of
$950 thousand which is secured by
vehicles and equipment liens. As a result, net loan charge-offs
increased to $7.9 million compared to
a net recovery of $0.2 million in the
first quarter of 2018. The provision for loan loss increased
$6.8 million to $9.3 million compared to $2.5 million in the first quarter of 2018. The
allowance for loan losses to total portfolio loans was 1.05% at
June 30, 2018 compared to 1.03% at
March 31, 2018. While the net
charge-offs and the provision for loan losses were elevated during
the second quarter of 2018, both nonperforming loans and
delinquency remained at low levels. Total nonperforming loans were
$21.4 million, or 0.37% of total
loans, at June 30, 2018 compared to
$21.3 million, or 0.37% of total
loans at March 31, 2018.
Noninterest Income and Expense
Noninterest income decreased $1.5
million to $12.3 million for
the second quarter of 2018 compared to $13.8
million for the first quarter of 2018. The decrease
primarily related to a $1.9 million
gain on the sale of a majority interest of our insurance business
during the first quarter of 2018. Insurance fees decreased
$1.3 million compared to the second
quarter of 2017 as a result of this sale.
Expenses remained well controlled decreasing to $35.9 million compared to $36.1 million for the first quarter of 2018.
Marketing expense increased $0.5
million due to the timing of marketing campaigns. FDIC
expense decreased $0.4 million due to
improvements in the financial ratios used to determine the
assessment. The efficiency ratio (non-GAAP) improved during the
second quarter of 2018 to 50.09% compared to 50.35% in the first
quarter and 51.48% in the second quarter of 2017 primarily due to
lower expenses.
Financial Condition
Total assets were $7.1 billion at
June 30, 2018 compared to
$7.0 billion as of March 31, 2018. Total portfolio loans increased
$55.5 million, or 3.9% annualized,
compared to March 31, 2018. C&I
loan growth was strong with an increase of $48.6 million, approximately 14% annualized,
compared to the first quarter of 2018. Total deposits remained
stable at $5.4 billion at
June 30, 2018 and March 31, 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 $0.25 per share cash dividend at its regular
meeting held July 16, 2018.
This dividend is a 25% increase compared to a $0.20 dividend in the same period last year. The
dividend is payable August 16, 2018
to shareholders of record on August 2,
2018.
Conference Call
S&T will host its second quarter 2018 earnings conference
call live over the Internet at 1:00 p.m. ET
on Thursday, July 19, 2018. To access the webcast, go to
S&T's webpage at www.stbancorp.com and click on "Events &
Presentations." Select "2nd 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 July
26, 2018, by dialing 1.877.481.4010; the Conference ID # is
33697.
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.
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
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
Second
|
|
First
|
|
Second
|
|
(dollars in
thousands, except per share data)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
$66,610
|
|
$63,055
|
|
$60,558
|
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
3,519
|
|
3,429
|
|
2,947
|
|
Tax-exempt
|
872
|
|
874
|
|
928
|
|
Dividends
|
580
|
|
671
|
|
481
|
|
Total Interest
Income
|
71,581
|
|
68,029
|
|
64,914
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
9,166
|
|
7,846
|
|
5,976
|
|
Borrowings and junior
subordinated debt securities
|
4,012
|
|
3,251
|
|
2,368
|
|
Total Interest
Expense
|
13,178
|
|
11,097
|
|
8,344
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
58,403
|
|
56,932
|
|
56,570
|
|
Provision for loan
losses
|
9,345
|
|
2,472
|
|
4,869
|
|
Net Interest
Income After Provision for Loan Losses
|
49,058
|
|
54,460
|
|
51,701
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain (loss) on
sale of securities
|
—
|
|
—
|
|
3,617
|
|
Debit and credit
card
|
3,309
|
|
3,037
|
|
3,042
|
|
Service charges on
deposit accounts
|
3,227
|
|
3,241
|
|
2,997
|
|
Wealth
management
|
2,616
|
|
2,682
|
|
2,428
|
|
Mortgage
banking
|
831
|
|
602
|
|
675
|
|
Insurance
|
134
|
|
169
|
|
1,458
|
|
Gain on sale of a
majority interest of insurance business
|
—
|
|
1,873
|
|
—
|
|
Other
|
2,134
|
|
2,188
|
|
2,048
|
|
Total Noninterest
Income
|
12,251
|
|
13,792
|
|
16,265
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
18,611
|
|
18,815
|
|
19,903
|
|
Net
occupancy
|
2,804
|
|
2,873
|
|
2,751
|
|
Data processing and
information technology
|
2,379
|
|
2,325
|
|
2,163
|
|
Furniture, equipment
and software
|
2,134
|
|
1,957
|
|
1,810
|
|
Other
taxes
|
1,739
|
|
1,848
|
|
1,083
|
|
Marketing
|
1,190
|
|
702
|
|
948
|
|
Professional services
and legal
|
888
|
|
1,051
|
|
931
|
|
FDIC
insurance
|
739
|
|
1,108
|
|
1,185
|
|
Other
|
5,379
|
|
5,403
|
|
5,823
|
|
Total Noninterest
Expense
|
35,863
|
|
36,082
|
|
36,597
|
|
|
|
|
|
|
|
|
Income Before
Taxes
|
25,446
|
|
32,170
|
|
31,369
|
|
Provision for income
taxes
|
4,010
|
|
6,007
|
|
8,604
|
|
|
|
|
|
|
|
|
Net
Income
|
$21,436
|
|
$26,163
|
|
$22,765
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
35,009,945
|
|
35,000,502
|
|
34,980,280
|
|
Average shares
outstanding - diluted
|
35,057,576
|
|
34,999,165
|
|
34,906,496
|
|
Diluted earnings per
share
|
$0.61
|
|
$0.75
|
|
$0.65
|
|
Dividends declared
per share
|
$0.25
|
|
$0.22
|
|
$0.20
|
|
Dividend yield
(annualized)
|
2.31%
|
|
2.20%
|
|
2.23%
|
|
Dividends paid to net
income
|
40.69%
|
|
29.31%
|
|
30.60%
|
|
Book value
|
$25.91
|
|
$25.58
|
|
$24.90
|
|
Tangible book value
(1)
|
$17.63
|
|
$17.30
|
|
$16.49
|
|
Market
value
|
$43.24
|
|
$39.94
|
|
$35.86
|
|
|
|
|
|
|
|
|
Profitability
Ratios (annualized)
|
|
|
|
|
|
|
Return on average
assets
|
1.22%
|
|
1.51%
|
|
1.29%
|
|
Return on average
shareholders' equity
|
9.52%
|
|
11.92%
|
|
10.55%
|
|
Return on average
tangible shareholders' equity (2)
|
14.14%
|
|
17.83%
|
|
16.15%
|
|
Efficiency ratio
(FTE) (3)
|
50.09%
|
|
50.35%
|
|
51.48%
|
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(dollars in
thousands, except per share data)
|
|
|
2018
|
|
2017
|
|
INTEREST
INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
|
|
$129,665
|
|
$117,458
|
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
|
|
6,948
|
|
5,796
|
|
Tax-exempt
|
|
|
1,746
|
|
1,848
|
|
Dividends
|
|
|
1,251
|
|
963
|
|
Total Interest
Income
|
|
|
139,610
|
|
126,065
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
|
17,012
|
|
11,355
|
|
Borrowings and junior
subordinated debt securities
|
|
|
7,264
|
|
4,261
|
|
Total Interest
Expense
|
|
|
24,276
|
|
15,616
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
115,334
|
|
110,449
|
|
Provision for loan
losses
|
|
|
11,817
|
|
10,052
|
|
Net Interest
Income After Provision for Loan Losses
|
|
|
103,517
|
|
100,397
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain (loss) on
sale of securities
|
|
|
—
|
|
3,987
|
|
Debit and credit
card
|
|
|
6,347
|
|
5,885
|
|
Service charges on
deposit accounts
|
|
|
6,468
|
|
6,012
|
|
Wealth
management
|
|
|
5,298
|
|
4,831
|
|
Mortgage
banking
|
|
|
1,432
|
|
1,408
|
|
Insurance
|
|
|
303
|
|
2,913
|
|
Gain on sale of a
majority interest of insurance business
|
|
|
1,873
|
|
—
|
|
Other
|
|
|
4,323
|
|
4,225
|
|
Total Noninterest
Income
|
|
|
26,044
|
|
29,261
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
37,426
|
|
40,444
|
|
Net
occupancy
|
|
|
5,677
|
|
5,566
|
|
Data processing and
information technology
|
|
|
4,704
|
|
4,386
|
|
Furniture, equipment
and software
|
|
|
4,090
|
|
3,857
|
|
Other
taxes
|
|
|
3,587
|
|
2,060
|
|
Marketing
|
|
|
1,892
|
|
1,702
|
|
Professional services
and legal
|
|
|
1,939
|
|
1,999
|
|
FDIC
insurance
|
|
|
1,847
|
|
2,308
|
|
Other
|
|
|
10,783
|
|
11,084
|
|
Total Noninterest
Expense
|
|
|
71,945
|
|
73,406
|
|
|
|
|
|
|
|
|
Income Before
Taxes
|
|
|
57,616
|
|
56,252
|
|
Provision for income
taxes
|
|
|
10,017
|
|
15,299
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$47,599
|
|
$40,953
|
|
|
|
|
|
|
|
|
Per Share
Data:
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
|
|
35,043,041
|
|
34,907,377
|
|
Diluted earnings per
share
|
|
|
$1.36
|
|
$1.17
|
|
Dividends declared
per share
|
|
|
$0.47
|
|
$0.40
|
|
Dividends paid to net
income
|
|
|
34.44%
|
|
34.01%
|
|
|
|
|
|
|
|
|
Profitability
Ratios (annualized)
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.37%
|
|
1.18%
|
|
Return on average
shareholders' equity
|
|
|
10.71%
|
|
9.63%
|
|
Return on average
tangible shareholders' equity (6)
|
|
|
15.95%
|
|
14.83%
|
|
Efficiency ratio
(FTE) (7)
|
|
|
50.22%
|
|
52.63%
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
Second
|
|
First
|
|
Second
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks, including interest-bearing deposits
|
$137,933
|
|
$112,849
|
|
$125,863
|
|
Securities, at fair
value
|
688,341
|
|
687,650
|
|
689,388
|
|
Loans held for
sale
|
3,801
|
|
3,283
|
|
23,120
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
2,788,641
|
|
2,760,891
|
|
2,664,642
|
|
Commercial and
industrial
|
1,455,578
|
|
1,406,950
|
|
1,401,283
|
|
Commercial
construction
|
299,787
|
|
324,141
|
|
426,754
|
|
Total Commercial
Loans
|
4,544,006
|
|
4,491,982
|
|
4,492,679
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
698,440
|
|
692,385
|
|
706,143
|
|
Home
equity
|
471,622
|
|
474,850
|
|
484,960
|
|
Installment and other
consumer
|
66,638
|
|
66,890
|
|
70,068
|
|
Consumer
construction
|
5,412
|
|
4,506
|
|
3,969
|
|
Total Consumer
Loans
|
1,242,112
|
|
1,238,631
|
|
1,265,140
|
|
Total Portfolio
Loans
|
5,786,118
|
|
5,730,613
|
|
5,757,819
|
|
Allowance for loan
losses
|
(60,517)
|
|
(59,046)
|
|
(55,351)
|
|
Total Portfolio
Loans, Net
|
5,725,601
|
|
5,671,567
|
|
5,702,468
|
|
Federal Home Loan
Bank and other restricted stock, at cost
|
35,782
|
|
29,769
|
|
33,417
|
|
Goodwill
|
287,446
|
|
287,446
|
|
291,670
|
|
Other
assets
|
218,442
|
|
212,765
|
|
220,240
|
|
Total
Assets
|
$7,097,346
|
|
$7,005,329
|
|
$7,086,166
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$1,410,211
|
|
$1,368,350
|
|
$1,335,768
|
|
Interest-bearing
demand
|
553,729
|
|
560,711
|
|
636,904
|
|
Money
market
|
1,267,623
|
|
1,239,400
|
|
950,619
|
|
Savings
|
845,526
|
|
876,459
|
|
1,010,348
|
|
Certificates of
deposit
|
1,316,444
|
|
1,342,174
|
|
1,476,223
|
|
Total
Deposits
|
5,393,533
|
|
5,387,094
|
|
5,409,862
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
Securities sold under
repurchase agreements
|
44,724
|
|
44,617
|
|
46,489
|
|
Short-term
borrowings
|
600,000
|
|
525,000
|
|
645,000
|
|
Long-term
borrowings
|
46,062
|
|
46,684
|
|
13,518
|
|
Junior subordinated
debt securities
|
45,619
|
|
45,619
|
|
45,619
|
|
Total
Borrowings
|
736,405
|
|
661,920
|
|
750,626
|
|
Other
liabilities
|
60,275
|
|
60,908
|
|
54,616
|
|
Total
Liabilities
|
6,190,213
|
|
6,109,922
|
|
6,215,104
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Total
Shareholders' Equity
|
907,133
|
|
895,407
|
|
871,062
|
|
Total Liabilities
and Shareholders' Equity
|
$7,097,346
|
|
$7,005,329
|
|
$7,086,166
|
|
|
|
|
|
|
|
|
Capitalization
Ratios
|
|
|
|
|
|
|
Shareholders' equity
/ assets
|
12.78%
|
|
12.78%
|
|
12.29%
|
|
Tangible common
equity / tangible assets (4)
|
9.07%
|
|
9.02%
|
|
8.49%
|
|
Tier 1 leverage
ratio
|
9.87%
|
|
9.72%
|
|
9.01%
|
|
Common equity tier 1
capital
|
11.18%
|
|
11.02%
|
|
10.53%
|
|
Risk-based capital -
tier 1
|
11.53%
|
|
11.36%
|
|
10.89%
|
|
Risk-based capital -
total
|
13.04%
|
|
12.85%
|
|
12.37%
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
Second
|
|
First
|
|
Second
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Net Interest
Margin (FTE) (QTD Averages)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
$55,015
|
1.60%
|
$56,008
|
1.65%
|
$48,547
|
0.91%
|
|
Securities, at fair
value
|
685,132
|
2.60%
|
686,912
|
2.53%
|
709,208
|
2.48%
|
|
Loans held for
sale
|
1,528
|
7.43%
|
1,949
|
5.65%
|
5,053
|
2.61%
|
|
Commercial real
estate
|
2,774,882
|
4.71%
|
2,690,990
|
4.57%
|
2,664,696
|
4.30%
|
|
Commercial and
industrial
|
1,431,861
|
4.66%
|
1,431,588
|
4.41%
|
1,430,080
|
4.30%
|
|
Commercial
construction
|
324,934
|
4.76%
|
375,129
|
4.51%
|
421,456
|
4.09%
|
|
Total Commercial
Loans
|
4,531,677
|
4.70%
|
4,497,707
|
4.51%
|
4,516,232
|
4.28%
|
|
Residential
mortgage
|
691,634
|
4.23%
|
694,303
|
4.19%
|
700,406
|
4.14%
|
|
Home
equity
|
472,927
|
4.81%
|
481,053
|
4.47%
|
481,039
|
4.38%
|
|
Installment and other
consumer
|
67,186
|
6.79%
|
66,861
|
6.69%
|
69,899
|
6.46%
|
|
Consumer
construction
|
4,570
|
4.76%
|
3,810
|
4.69%
|
4,572
|
4.93%
|
|
Total Consumer
Loans
|
1,236,317
|
4.60%
|
1,246,027
|
4.43%
|
1,255,916
|
4.36%
|
|
Total Portfolio
Loans
|
5,767,994
|
4.68%
|
5,743,734
|
4.50%
|
5,772,148
|
4.30%
|
|
Total
Loans
|
5,769,522
|
4.68%
|
5,745,683
|
4.50%
|
5,777,201
|
4.30%
|
|
Federal Home Loan
Bank and other restricted stock
|
34,130
|
6.30%
|
31,216
|
8.05%
|
33,082
|
4.60%
|
|
Total
Interest-earning Assets
|
6,543,799
|
4.44%
|
6,519,819
|
4.28%
|
6,568,038
|
4.08%
|
|
Noninterest-earning
assets
|
491,246
|
|
488,808
|
|
507,425
|
|
|
Total
Assets
|
$7,035,045
|
|
$7,008,627
|
|
$7,075,463
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$571,260
|
0.31%
|
$575,377
|
0.26%
|
$649,440
|
0.22%
|
|
Money
market
|
1,251,171
|
1.29%
|
1,194,053
|
1.10%
|
937,272
|
0.72%
|
|
Savings
|
851,702
|
0.20%
|
874,318
|
0.20%
|
1,019,220
|
0.21%
|
|
Certificates of
deposit
|
1,295,473
|
1.32%
|
1,355,617
|
1.14%
|
1,457,107
|
0.93%
|
|
Total
interest-bearing Deposits
|
3,969,606
|
0.93%
|
3,999,365
|
0.80%
|
4,063,039
|
0.59%
|
|
Securities sold under
repurchase agreements
|
48,980
|
0.41%
|
47,774
|
0.39%
|
50,082
|
0.06%
|
|
Short-term
borrowings
|
617,891
|
2.06%
|
596,014
|
1.71%
|
682,584
|
1.09%
|
|
Long-term
borrowings
|
46,317
|
2.24%
|
46,938
|
1.99%
|
13,765
|
2.96%
|
|
Junior subordinated
debt securities
|
45,619
|
4.61%
|
45,619
|
4.14%
|
45,619
|
3.60%
|
|
Total
Borrowings
|
758,807
|
2.12%
|
736,345
|
1.79%
|
792,050
|
1.20%
|
|
Total
interest-bearing Liabilities
|
4,728,413
|
1.12%
|
4,735,710
|
0.95%
|
4,855,089
|
0.69%
|
|
Noninterest-bearing
liabilities
|
1,403,771
|
|
1,383,109
|
|
1,354,711
|
|
|
Shareholders'
equity
|
902,861
|
|
889,808
|
|
865,663
|
|
|
Total Liabilities
and Shareholders' Equity
|
$7,035,045
|
|
$7,008,627
|
|
$7,075,463
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
(5)
|
|
3.64%
|
|
3.59%
|
|
3.57%
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
(dollars in
thousands)
|
|
|
2018
|
|
2017
|
|
|
Net Interest
Margin (FTE) (YTD Averages)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
|
$55,509
|
1.63%
|
$57,311
|
0.87%
|
|
Securities, at fair
value
|
|
|
686,017
|
2.57%
|
703,300
|
2.46%
|
|
Loans held for
sale
|
|
|
1,737
|
6.44%
|
3,639
|
3.16%
|
|
Commercial real
estate
|
|
|
2,733,168
|
4.64%
|
2,595,163
|
4.27%
|
|
Commercial and
industrial
|
|
|
1,431,725
|
4.53%
|
1,421,986
|
4.23%
|
|
Commercial
construction
|
|
|
349,893
|
4.63%
|
438,079
|
3.89%
|
|
Total Commercial
Loans
|
|
|
4,514,786
|
4.61%
|
4,455,228
|
4.22%
|
|
Residential
mortgage
|
|
|
692,961
|
4.21%
|
700,129
|
4.10%
|
|
Home
equity
|
|
|
476,967
|
4.64%
|
480,727
|
4.26%
|
|
Installment and other
consumer
|
|
|
67,025
|
6.74%
|
69,036
|
6.47%
|
|
Consumer
construction
|
|
|
4,192
|
4.73%
|
4,971
|
4.25%
|
|
Total Consumer
Loans
|
|
|
1,241,145
|
4.52%
|
1,254,863
|
4.29%
|
|
Total Portfolio
Loans
|
|
|
5,755,931
|
4.59%
|
5,710,091
|
4.24%
|
|
Total
Loans
|
|
|
5,757,668
|
4.59%
|
5,713,730
|
4.24%
|
|
Federal Home Loan
Bank and other restricted stock
|
|
|
32,681
|
7.13%
|
32,888
|
4.64%
|
|
Total
Interest-earning Assets
|
|
|
6,531,875
|
4.36%
|
6,507,229
|
4.02%
|
|
Noninterest-earning
assets
|
|
|
490,476
|
|
509,265
|
|
|
Total
Assets
|
|
|
$7,022,351
|
|
$7,016,494
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
|
$573,307
|
0.28%
|
$641,381
|
0.20%
|
|
Money
market
|
|
|
1,222,770
|
1.20%
|
937,641
|
0.67%
|
|
Savings
|
|
|
862,947
|
0.20%
|
1,030,371
|
0.21%
|
|
Certificates of
deposit
|
|
|
1,325,379
|
1.23%
|
1,430,599
|
0.92%
|
|
Total
Interest-bearing deposits
|
|
|
3,984,403
|
0.86%
|
4,039,992
|
0.57%
|
|
Securities sold under
repurchase agreements
|
|
|
48,380
|
0.40%
|
49,492
|
0.03%
|
|
Short-term
borrowings
|
|
|
607,013
|
1.89%
|
677,214
|
0.97%
|
|
Long-term
borrowings
|
|
|
46,626
|
2.12%
|
14,062
|
2.94%
|
|
Junior subordinated
debt securities
|
|
|
45,619
|
4.38%
|
45,619
|
3.53%
|
|
Total
Borrowings
|
|
|
747,638
|
1.96%
|
786,387
|
1.09%
|
|
Total
Interest-bearing Liabilities
|
|
|
4,732,041
|
1.03%
|
4,826,379
|
0.65%
|
|
Noninterest-bearing
liabilities
|
|
|
1,393,939
|
|
1,332,181
|
|
|
Shareholders'
equity
|
|
|
896,371
|
|
857,934
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
$7,022,351
|
|
$7,016,494
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin
(8)
|
|
|
|
3.61%
|
|
3.53%
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
Second
|
|
First
|
|
Second
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Nonperforming
Loans (NPL)
|
|
|
|
|
|
|
|
Commercial
loans:
|
|
%
NPL
|
|
%
NPL
|
|
%
NPL
|
|
Commercial real
estate
|
$4,617
|
0.17%
|
$3,952
|
0.14%
|
$7,199
|
0.27%
|
|
Commercial and
industrial
|
4,853
|
0.33%
|
4,617
|
0.33%
|
17,418
|
1.24%
|
|
Commercial
construction
|
1,870
|
0.62%
|
1,873
|
0.58%
|
2,313
|
0.54%
|
|
Total Nonperforming
Commercial Loans
|
11,340
|
0.25%
|
10,442
|
0.23%
|
26,930
|
0.60%
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
Residential
mortgage
|
6,112
|
0.88%
|
6,715
|
0.97%
|
7,056
|
0.99%
|
|
Home
equity
|
3,871
|
0.82%
|
4,109
|
0.87%
|
2,642
|
0.54%
|
|
Installment and other
consumer
|
49
|
0.07%
|
69
|
0.10%
|
41
|
0.06%
|
|
Total Nonperforming
Consumer Loans
|
10,032
|
0.81%
|
10,893
|
0.88%
|
9,739
|
0.76%
|
|
Total
Nonperforming Loans
|
$21,372
|
0.37%
|
$21,335
|
0.37%
|
$36,669
|
0.63%
|
|
|
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
|
Second
|
|
First
|
|
Second
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Loan
Charge-offs
|
|
|
|
|
|
|
|
Charge-offs
|
$8,632
|
|
$1,444
|
|
$5,822
|
|
|
Recoveries
|
(758)
|
|
(1,628)
|
|
(488)
|
|
|
Net Loan
Charge-offs
|
$7,874
|
|
($184)
|
|
$5,334
|
|
|
|
|
|
|
|
|
|
|
Net Loan
Charge-offs
|
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
$52
|
|
($48)
|
|
$1,518
|
|
|
Commercial and
industrial
|
7,030
|
|
712
|
|
2,613
|
|
|
Commercial
construction
|
320
|
|
(1,129)
|
|
(113)
|
|
|
Total Commercial Loan
Charge-offs
|
7,402
|
|
(465)
|
|
4,018
|
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
Residential
mortgage
|
96
|
|
53
|
|
695
|
|
|
Home
equity
|
129
|
|
(123)
|
|
354
|
|
|
Installment and other
consumer
|
289
|
|
359
|
|
295
|
|
|
Consumer
construction
|
(42)
|
|
(8)
|
|
(28)
|
|
|
Total Consumer Loan
Charge-offs
|
472
|
|
281
|
|
1,316
|
|
|
Total Net Loan
Charge-offs
|
$7,874
|
|
($184)
|
|
$5,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
(dollars in
thousands)
|
|
|
2018
|
|
2017
|
|
|
Loan
Charge-offs
|
|
|
|
|
|
|
|
Charge-offs
|
|
|
$10,076
|
|
$8,763
|
|
|
Recoveries
|
|
|
(2,386)
|
|
(1,287)
|
|
|
Net Loan
Charge-offs
|
|
|
$7,690
|
|
$7,476
|
|
|
|
|
|
|
|
|
|
|
Net Loan
Charge-offs
|
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
|
$4
|
|
$1,830
|
|
|
Commercial and
industrial
|
|
|
7,741
|
|
3,141
|
|
|
Commercial
construction
|
|
|
(809)
|
|
275
|
|
|
Total Commercial Loan
Charge-offs
|
|
|
6,936
|
|
5,246
|
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
149
|
|
1,176
|
|
|
Home
equity
|
|
|
6
|
|
536
|
|
|
Installment and other
consumer
|
|
|
648
|
|
553
|
|
|
Consumer
construction
|
|
|
(49)
|
|
(35)
|
|
|
Total Consumer Loan
Charge-offs
|
|
|
754
|
|
2,230
|
|
|
Total Net Loan
Charge-offs
|
|
|
$7,690
|
|
$7,476
|
|
|
S&T Bancorp,
Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
Second
|
|
First
|
|
Second
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Nonperforming
loans
|
$21,372
|
|
$21,335
|
|
$36,669
|
|
OREO
|
2,999
|
|
2,920
|
|
1,620
|
|
Nonperforming
assets
|
24,371
|
|
24,255
|
|
38,289
|
|
Troubled debt
restructurings (nonaccruing)
|
7,395
|
|
8,560
|
|
10,105
|
|
Troubled debt
restructurings (accruing)
|
24,454
|
|
20,035
|
|
15,080
|
|
Total troubled debt
restructurings
|
31,849
|
|
28,595
|
|
25,185
|
|
Nonperforming loans /
loans
|
0.37%
|
|
0.37%
|
|
0.63%
|
|
Nonperforming assets
/ loans plus OREO
|
0.42%
|
|
0.42%
|
|
0.66%
|
|
Allowance for loan
losses / total portfolio loans
|
1.05%
|
|
1.03%
|
|
0.96%
|
|
Allowance for loan
losses / nonperforming loans
|
283%
|
|
277%
|
|
151%
|
|
Net loan charge-offs
(recoveries)
|
$7,874
|
|
$(184)
|
|
$5,334
|
|
Net loan charge-offs
(recoveries)(annualized) / average loans
|
0.55%
|
|
(0.01)%
|
|
0.37%
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
(dollars in
thousands)
|
|
|
2018
|
|
2017
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Net loan charge-offs
(recoveries)
|
|
|
$7,690
|
|
$7,476
|
|
Net loan charge-offs
(recoveries)(annualized) / average loans
|
|
|
0.27%
|
|
0.26%
|
|
S&T Bancorp,
Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
2018
|
|
2018
|
|
2017
|
|
|
Second
|
|
First
|
|
Second
|
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
|
|
|
|
|
|
(1) Tangible
Book Value (non-GAAP)
|
|
|
|
|
|
|
Total
shareholders' equity
|
$907,133
|
|
$895,407
|
|
$871,062
|
|
Less: goodwill and
other intangible assets
|
(290,355)
|
|
(290,572)
|
|
(295,861)
|
|
Tax effect of other
intangible assets
|
611
|
|
656
|
|
1,467
|
|
Tangible common
equity (non-GAAP)
|
$617,389
|
|
$605,491
|
|
$576,668
|
|
Common shares
outstanding
|
35,010
|
|
35,001
|
|
34,980
|
|
Tangible book
value (non-GAAP)
|
$17.63
|
|
$17.30
|
|
$16.49
|
|
|
|
|
|
|
|
|
(2) Return on Average
Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
(annualized)
|
$85,980
|
|
$106,105
|
|
$91,309
|
|
Plus:
amortization of intangibles (annualized)
|
869
|
|
1,037
|
|
1,449
|
|
Tax effect of
amortization of intangibles (annualized)
|
(183)
|
|
(218)
|
|
(507)
|
|
Net income
before amortization of intangibles (annualized)
|
$86,666
|
|
$106,924
|
|
$92,251
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
$902,861
|
|
$889,808
|
|
$865,663
|
|
Less: average
goodwill and other intangible assets
|
(290,464)
|
|
(290,754)
|
|
(296,074)
|
|
Tax effect of
average goodwill and other intangible assets
|
634
|
|
685
|
|
1,541
|
|
Average
tangible equity (non-GAAP)
|
$613,031
|
|
$599,739
|
|
$571,130
|
|
Return on
average tangible equity (non-GAAP)
|
14.14%
|
|
17.83%
|
|
16.15%
|
|
|
|
|
|
|
|
|
(3) Efficiency
Ratio (non-GAAP)
|
|
|
|
|
|
|
Noninterest
expense
|
$35,863
|
|
$36,082
|
|
$36,597
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
$58,403
|
|
$56,932
|
|
$56,570
|
|
Less: net (gains) losses on
sale of securities
|
—
|
|
|
—
|
|
|
(3,617)
|
|
Plus: taxable equivalent
adjustment
|
938
|
|
940
|
|
1,877
|
|
Net interest income
(FTE) (non-GAAP)
|
59,341
|
|
57,872
|
|
54,830
|
|
Noninterest
income
|
12,251
|
|
13,792
|
|
16,265
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
$71,592
|
|
$71,664
|
|
$71,095
|
|
Efficiency ratio
(non-GAAP)
|
50.09%
|
|
50.35%
|
|
51.48%
|
|
|
|
|
|
|
|
|
(4) Tangible Common
Equity / Tangible Assets (non-GAAP)
|
|
|
|
|
|
|
Total
shareholders' equity
|
$907,133
|
|
$895,407
|
|
$871,062
|
|
Less: goodwill and
other intangible assets
|
(290,355)
|
|
(290,572)
|
|
(295,861)
|
|
Tax effect of goodwill
and other intangible assets
|
611
|
|
656
|
|
1,467
|
|
Tangible common
equity (non-GAAP)
|
$617,389
|
|
$605,491
|
|
$576,668
|
|
|
|
|
|
|
|
|
Total
assets
|
$7,097,346
|
|
$7,005,329
|
|
$7,086,166
|
|
Less: goodwill and
other intangible assets
|
(290,355)
|
|
(290,572)
|
|
(295,861)
|
|
Tax effect of goodwill
and other intangible assets
|
611
|
|
656
|
|
1,467
|
|
Tangible assets
(non-GAAP)
|
$6,807,602
|
|
$6,715,413
|
|
$6,791,772
|
|
Tangible common
equity to tangible assets (non-GAAP)
|
9.07%
|
|
9.02%
|
|
8.49%
|
|
|
|
|
|
|
|
|
(5) Net Interest Margin
Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest
income
|
$71,581
|
|
$68,029
|
|
$64,914
|
|
Less: interest
expense
|
(13,178)
|
|
(11,097)
|
|
(8,344)
|
|
Net interest
income per consolidated statements of net income
|
58,403
|
|
56,932
|
|
56,570
|
|
Plus: taxable
equivalent adjustment
|
938
|
|
940
|
|
1,877
|
|
Net interest
income (FTE) (non-GAAP)
|
59,341
|
|
57,872
|
|
58,447
|
|
Net interest
income (FTE) (annualized)
|
238,016
|
|
234,703
|
|
234,430
|
|
Average earning
assets
|
$6,543,799
|
|
$6,519,819
|
|
$6,568,038
|
|
Net interest
margin - (FTE) (non-GAAP)
|
3.64%
|
|
3.59%
|
|
3.57%
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
Consolidated Selected Financial Data
Unaudited
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
(6) Return on Average
Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
(annualized)
|
|
|
$95,987
|
|
$82,584
|
|
Plus:
amortization of intangibles (annualized)
|
|
|
952
|
|
1,451
|
|
Tax effect of
amortization of intangibles (annualized)
|
|
|
(200)
|
|
(508)
|
|
Net income
before amortization of intangibles (annualized)
|
|
|
$96,739
|
|
$83,527
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
|
|
$896,371
|
|
$857,934
|
|
Less: average
goodwill and other intangible assets
|
|
|
(290,609)
|
|
(296,244)
|
|
Tax effect of
average goodwill and other intangible assets
|
|
|
659
|
|
1,601
|
|
Average
tangible equity (non-GAAP)
|
|
|
$606,421
|
|
$563,291
|
|
Return on
average tangible equity (non-GAAP)
|
|
|
15.95%
|
|
14.83%
|
|
|
|
|
|
|
|
|
(7) Efficiency
Ratio (non-GAAP)
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$71,945
|
|
$73,406
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
|
|
$115,334
|
|
$110,449
|
|
Less: net (gains)
losses on sale of securities
|
|
|
—
|
|
(3,987)
|
|
Plus: taxable
equivalent adjustment
|
|
|
1,878
|
|
3,747
|
|
Net interest income
(FTE) (non-GAAP)
|
|
|
117,212
|
|
110,209
|
|
Noninterest
income
|
|
|
26,044
|
|
29,261
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
|
|
$143,256
|
|
$139,470
|
|
Efficiency ratio
(non-GAAP)
|
|
|
50.22%
|
|
52.63%
|
|
|
|
|
|
|
|
|
(8) Net Interest Margin
Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest
income
|
|
|
$139,610
|
|
$126,065
|
|
Less: interest
expense
|
|
|
(24,276)
|
|
(15,616)
|
|
Net interest
income per consolidated statements of net income
|
|
|
115,334
|
|
110,449
|
|
Plus: taxable
equivalent adjustment
|
|
|
1,878
|
|
3,747
|
|
Net interest
income (FTE) (non-GAAP)
|
|
|
117,212
|
|
114,196
|
|
Net interest
income (FTE) (annualized)
|
|
|
236,367
|
|
230,285
|
|
Average earning
assets
|
|
|
$6,531,875
|
|
$6,507,230
|
|
Net interest
margin - (FTE) (non-GAAP)
|
|
|
3.61%
|
|
3.53%
|
|
|
|
|
|
|
|
|
|
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-second-quarter-2018-results-300683389.html
SOURCE S&T Bancorp, Inc.