INDIANA, Pa., Oct. 18, 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 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.
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.
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
|
|
|
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%
|
|
S&T Bancorp,
Inc.
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%
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
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%
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
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%
|
|
S&T Bancorp,
Inc.
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%
|
|
S&T Bancorp,
Inc.
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
|
|
|
S&T Bancorp,
Inc.
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%
|
|
S&T Bancorp,
Inc.
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%
|
|
S&T Bancorp,
Inc.
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%
|
|
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SOURCE S&T Bancorp, Inc.