INDIANA, Pa., Jan. 25,
2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T)
(NASDAQ: STBA), the holding company for S&T Bank, announced
fourth quarter and full year 2023 earnings. Net income of
$37.0 million, or $0.96 per diluted share, for the fourth quarter
of 2023 compared to net income of $33.5
million, or $0.87 per diluted
share, for the third quarter of 2023 and net income of $40.3 million, or $1.03 per diluted share, for the fourth quarter
of 2022.
Net income increased 6.83% to a record $144.8 million for 2023 compared to net income of
$135.5 million for 2022. Earnings per
diluted share, or EPS, increased 8.09% to a record $3.74 compared to $3.46 per diluted share in 2022.
Fourth Quarter of 2023 Highlights:
- Strong return metrics with return on average assets (ROA) of
1.55%, return on average equity (ROE) of 11.79% and return on
average tangible equity (ROTE) (non-GAAP) of 17.00% compared to ROA
of 1.42%, ROE of 10.84% and ROTE (non-GAAP) of 15.78% for the third
quarter of 2023.
- Pre-provision net revenue to average assets (PPNR) (non-GAAP)
was 1.97% compared to 1.99% for the third quarter of 2023.
- Net interest margin (NIM) (FTE) (non-GAAP) was solid at 3.92%
compared to 4.09% in the third quarter of 2023.
- Total portfolio loans increased $137.4
million, or 7.25% annualized, compared to September 30, 2023.
- Total deposits increased $298.9
million with $98.2 million of
growth in customer deposits and $200.7
million of brokered deposits compared to September 30, 2023.
- Net charge-offs of $3.6 million,
or 0.19% of average loans (annualized), compared to net charge-offs
of $3.7 million, or 0.20% of average
loans (annualized), in the third quarter of 2023.
Full Year 2023 Highlights:
- Record EPS and net income for the second consecutive full
year.
- Net income increased 6.83% to $144.8
million and EPS increased 8.09% to $3.74 per share compared to 2022.
- Strong return metrics with ROA of 1.56%, ROE of 11.80% and ROTE
(non-GAAP) of 17.15% compared to ROA of 1.48%, ROE of 11.47% and
ROTE (non-GAAP) of 17.02% for the prior year.
- PPNR (non-GAAP) was 2.12% compared to 1.93% in the prior
year.
- Strong NIM (FTE) (non-GAAP) of 4.13% compared to 3.76% for the
prior year.
- Net interest income increased $33.6
million, or 10.65%, compared to 2022.
- Total portfolio loans increased $469.4
million, or 6.53%, compared to December 31, 2022.
- Nonperforming assets remained low at $23.0 million, or 0.30% of total loans plus other
real estate owned, or OREO compared to $22.1
million, or 0.31% at December 31,
2022.
- Net charge-offs of $13.2 million,
or 0.18% of average loans, compared to net charge-offs of
$2.6 million, or 0.04% of average
loans, in the prior year.
"It was a great year for S&T with record net income and
earnings per share for the second year in a row," said Chris McComish, chief executive officer. "Our
highly engaged teams that go above and beyond every day to provide
an award-winning customer experience are fundamental to our
success. For the quarter, I am pleased that we achieved balanced
loan and deposit growth, while delivering excellent returns and
efficiency. Our people-forward purpose positions us well for
continued growth."
Fourth Quarter of 2023 Results (three months ended
December 31, 2023)
Net Interest Income
Net interest income was $85.1
million for the fourth quarter of 2023 compared to
$87.4 million for the third quarter
of 2023. The decrease of $2.3 million
in net interest income was driven by higher funding costs,
partially offset by higher yields on interest-earning assets. Net
interest margin on a fully taxable equivalent basis (NIM) (FTE)
(non-GAAP) was 3.92% compared to 4.09% in the prior quarter. The
yield on total average loans increased 4 basis points to 6.19%
compared to 6.15% in the third quarter of 2023. Average loan
balances increased $151.4 million to
$7.6 billion compared to $7.4 billion in the third quarter of 2023. Total
interest-bearing deposit costs increased 49 basis points to 2.53%
compared to 2.04% in the third quarter of 2023. Higher
interest-bearing deposit costs primarily related to growth in
higher costing deposit products combined with a continued shift in
the mix of deposits. Average money market balances increased
$247.4 million and average CD
balances increased $150.7 million
compared to the third quarter of 2023. Average borrowings decreased
$151.5 million to $523.8 million compared to $675.3 million in the third quarter of 2023 due
to increased deposits.
Asset Quality
The provision for credit losses was $0.9
million for the fourth quarter of 2023 compared to
$5.5 million in the third quarter of
2023. The decrease in the provision for credit losses primarily
related to a lower allowance for credit losses driven by
improvement in loan risk ratings compared to the prior quarter. Net
loan charge-offs were $3.6 million
for the fourth quarter of 2023 compared to net loan charge-offs of
$3.7 million in the third quarter of
2023. The allowance for credit losses was relatively stable at
$108.0 million, or 1.41% of total
portfolio loans, as of December 31, 2023 compared to
$108.2 million, or 1.44%, at
September 30, 2023. Nonperforming assets to total loans plus
OREO remained low at 0.30% at December 31, 2023 compared to
0.22% at September 30, 2023.
Noninterest Income and Expense
Noninterest income increased $5.9
million to $18.1 million in
the fourth quarter of 2023 compared to $12.2
million in the third quarter of 2023. The increase mainly
related to higher other income from a gain on OREO of $3.3 million and from valuation adjustments on
our commercial loan swaps and a nonqualified benefit plan of
$2.2 million compared to the third
quarter of 2023. Noninterest expense increased $3.4 million to $56.2
million compared to $52.8
million in the third quarter of 2023. The increase was
primarily due to higher salaries and employee benefits of
$3.4 million mainly related to
increases in medical, incentives and a valuation adjustment on a
nonqualified benefit plan compared to the third quarter of
2023.
Financial Condition
Total assets were $9.6 billion at
December 31, 2023 compared to $9.5
billion at September 30, 2023. Total portfolio loans
increased $137.4 million, or 7.25%
annualized, compared to September 30, 2023. The consumer loan
portfolio increased $84.5 million
with growth in residential mortgages of $77.0 million compared to September 30,
2023. The commercial loan portfolio increased $52.9 million with growth in commercial real
estate of $71.3 million offset by a
decrease in commercial construction of $25.2
million compared to September 30, 2023. Total deposits
increased $298.9 million compared to
September 30, 2023. CDs increased $93.8
million mainly due to growth from new and existing customers
and a continued shift from other deposit types compared to
September 30, 2023. Money Market increased $326.4 million mainly due to growth from new and
existing customers, shifts from other deposit types and an increase
in brokered money markets of $200.7
million compared to September 30, 2023. Total
borrowings decreased $215.1 million
to $503.6 million compared to
$718.7 million at September 30,
2023 primarily related to deposit growth.
S&T continues to maintain a strong regulatory capital
position with all capital ratios above the well-capitalized
thresholds of federal bank regulatory agencies.
Full Year 2023 Results (twelve months ended December 31,
2023)
Net income increased 6.83% to a record $144.8 million compared to net income of
$135.5 million for 2022. Earnings per
diluted share, or EPS, increased 8.09% to a record $3.74 compared to $3.46 per diluted share in 2022.
Net interest income increased $33.6
million, or 10.65% compared to 2022 primarily due to the
impact of higher interest rates which drove an increase in yields
on earning assets and higher costing liabilities. NIM (FTE)
(non-GAAP) expanded 37 basis points to 4.13% compared to 3.76% for
2022. The yield on total average loans increased 154 basis points
to 6.04% compared to 4.50% in 2022. Total interest-bearing deposit
costs increased 152 basis points to 1.92% compared to 0.40% in
2022. Total borrowing cost increased 258 basis points to 5.59%
compared to 3.01% in 2022.
Noninterest income decreased $0.6
million compared to the prior year. Mortgage banking income
decreased $1.1 million due to a
decline in loan sale activity caused by higher interest rates and a
shift to holding originated mortgage loans on the balance sheet.
Debit and credit card fees decreased $0.8
million and service charges on deposit accounts decreased
$0.6 million due to decreased
customer activity. Offsetting these decreases was an increase in
other noninterest income of $2.5
million compared to the prior year primarily related to
valuation adjustments on our commercial loan swaps and a
nonqualified benefit plan. Noninterest expense increased
$13.6 million compared to 2022.
Salaries and employee benefits increased $8.2 million primarily due to higher salaries
related to inflationary wage pressure, the acquisition of new
talent and a change in valuation adjustment on a nonqualified
benefit plan. The efficiency ratio (non-GAAP) for 2023 was 51.35%
compared to 52.34% for 2022 due to higher revenue.
Nonperforming assets remained low at $23.0 million compared to $22.1 million in the prior year resulting in a
nonperforming assets to total loans plus OREO ratio of 0.30%
compared to 0.31% at December 31, 2022. The provision for
credit losses increased $9.5 million
to $17.9 million for 2023 compared to
$8.4 million for 2022 primarily due
to higher net charge-offs. Net loan charge-offs were $13.2 million for 2023 compared to $2.6 million for 2022. The allowance for credit
losses was 1.41% of total portfolio loans as of December 31,
2023 and December 31, 2022.
Dividend
S&T's Board of Directors approved a $0.33 per share cash dividend on January 24,
2024. This is an increase of $0.01,
or 3.13%, compared to a $0.32 per
share cash dividend declared in the same period in the prior year.
The dividend is payable February 22, 2024 to shareholders of
record on February 8, 2024. Dividends declared in 2023
increased $0.09, or 7.50%, to
$1.29 compared to $1.20 for 2022.
Conference Call
S&T will host its fourth quarter 2023 earnings conference
call live over the Internet at 1:00 p.m. ET
on Thursday, January 25, 2024. To access the webcast,
go to S&T Bancorp, Inc.'s Investor Relations
webpage www.stbancorp.com. After the live presentation, the
webcast will be archived at www.stbancorp.com for 12
months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.6
billion bank holding company that is headquartered in
Indiana, Pennsylvania and trades on the NASDAQ Global
Select Market under the symbol STBA. Its principal subsidiary,
S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. S&T Bank was named by Forbes as
a 2023 Best-in-State Bank. For more information visit
stbancorp.com or stbank.com. Follow us on Facebook,
Instagram and LinkedIn.
Forward-Looking Statements
This information contains or incorporates statements that we
believe are "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," "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 and the credit risk of our
commercial and consumer loan products; changes in the level of
charge-offs and changes in estimates of the adequacy of the
allowance for credit losses, or ACL; cyber-security concerns; rapid
technological developments and changes; operational risks or risk
management failures by us or critical third parties, including
fraud risk; our ability to manage our reputational
risks; sensitivity to the interest rate environment, 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; the transition from LIBOR as a
reference rate; regulatory supervision and oversight, including
changes in regulatory capital requirements and our ability to
address those requirements; unanticipated changes in our liquidity
position; unanticipated changes in regulatory and governmental
policies impacting interest rates and financial markets; changes in
accounting policies, practices or guidance; legislation affecting
the financial services industry as a whole, and S&T, in
particular; developments affecting the industry and the soundness
of financial institutions and further disruption to the economy and
U.S. banking system; 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; an interruption or cessation of an
important service by a third-party provider; our ability to attract
and retain talented executives and employees; general economic or
business conditions, including the strength of regional economic
conditions in our market area; environmental, social and governance
practices and disclosures, including climate change, hiring
practices, the diversity of the work force, and racial and social
justice issues; 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; the stability of our core deposit base and
access to contingency funding; 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 Annual Report on Form 10-K for the year ended December 31, 2022, including Part I, Item
1A-"Risk Factors" and any of our subsequent 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.
Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with
GAAP, our management uses, and this information contains or
references, certain non-GAAP financial measures, such as tangible
book value, return on average tangible shareholder's equity,
pre-provision net revenue to average assets, efficiency ratio,
tangible common equity to tangible assets and net interest margin
on an FTE basis. We believe these non-GAAP financial measures
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 other
companies in the financial services industry. Although we believe
that these non-GAAP financial measures enhance investors'
understanding of our business and performance, these non-GAAP
financial measures should not be considered alternatives to GAAP or
considered to be more important than financial results determined
in accordance with GAAP, nor are they necessarily comparable with
non-GAAP measures which may be presented by other companies. See
Definitions and Reconciliation of GAAP to Non-GAAP Financial
Measures for more information related to these financial
measures.
S&T Bancorp, Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands, except per share data)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
$117,443
|
|
$114,258
|
|
$96,220
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
8,491
|
|
7,857
|
|
6,507
|
|
Tax-exempt
|
210
|
|
213
|
|
233
|
|
Dividends
|
562
|
|
631
|
|
248
|
|
Total Interest and
Dividend Income
|
126,706
|
|
122,959
|
|
103,208
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
32,921
|
|
24,910
|
|
11,067
|
|
Borrowings, junior
subordinated debt securities and other
|
8,676
|
|
10,662
|
|
3,083
|
|
Total Interest
Expense
|
41,597
|
|
35,572
|
|
14,150
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
85,109
|
|
87,387
|
|
89,058
|
|
Provision for credit
losses
|
943
|
|
5,498
|
|
3,176
|
|
Net Interest Income
After Provision for Credit Losses
|
84,166
|
|
81,889
|
|
85,882
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Debit and credit
card
|
4,540
|
|
4,690
|
|
4,421
|
|
Service charges on
deposit accounts
|
4,129
|
|
4,060
|
|
4,341
|
|
Wealth
management
|
3,050
|
|
3,003
|
|
3,016
|
|
Mortgage
banking
|
280
|
|
294
|
|
309
|
|
Other
|
6,062
|
|
131
|
|
3,556
|
|
Total Noninterest
Income
|
18,061
|
|
12,178
|
|
15,643
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
30,949
|
|
27,521
|
|
27,998
|
|
Data processing and
information technology
|
4,523
|
|
4,479
|
|
4,159
|
|
Furniture, equipment
and software
|
3,734
|
|
3,125
|
|
2,975
|
|
Occupancy
|
3,598
|
|
3,671
|
|
3,806
|
|
Professional services
and legal
|
1,968
|
|
1,965
|
|
2,138
|
|
Other taxes
|
1,870
|
|
1,831
|
|
1,842
|
|
Marketing
|
1,435
|
|
1,741
|
|
1,348
|
|
FDIC
insurance
|
1,049
|
|
1,029
|
|
437
|
|
Other noninterest
expense
|
7,077
|
|
7,437
|
|
6,572
|
|
Total Noninterest
Expense
|
56,203
|
|
52,799
|
|
51,275
|
|
Income Before
Taxes
|
46,024
|
|
41,268
|
|
50,250
|
|
Income tax
expense
|
8,977
|
|
7,800
|
|
9,980
|
|
Net
Income
|
$37,047
|
|
$33,468
|
|
$40,270
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
38,232,806
|
|
38,244,309
|
|
38,999,733
|
|
Average shares
outstanding - diluted
|
38,379,493
|
|
38,336,016
|
|
38,944,575
|
|
Diluted earnings per
share
|
$0.96
|
|
$0.87
|
|
$1.03
|
|
Dividends declared per
share
|
$0.33
|
|
$0.32
|
|
$0.31
|
|
Dividend yield
(annualized)
|
3.95 %
|
|
4.73 %
|
|
3.63 %
|
|
Dividends paid to net
income
|
34.04 %
|
|
36.55 %
|
|
29.85 %
|
|
Book value
|
$33.57
|
|
$31.99
|
|
$30.38
|
|
Tangible book value
(1)
|
$23.72
|
|
$22.14
|
|
$20.69
|
|
Market value
|
$33.42
|
|
$27.08
|
|
$34.18
|
|
|
|
|
|
|
|
|
Profitability Ratios
(Annualized)
|
|
|
|
|
|
|
Return on average
assets
|
1.55 %
|
|
1.42 %
|
|
1.78 %
|
|
Return on average
shareholders' equity
|
11.79 %
|
|
10.84 %
|
|
13.68 %
|
|
Return on average
tangible shareholders' equity(2)
|
17.00 %
|
|
15.78 %
|
|
20.36 %
|
|
Pre-provision net
revenue / average assets(3)
|
1.97 %
|
|
1.99 %
|
|
2.36 %
|
|
Efficiency ratio
(FTE)(4)
|
54.12 %
|
|
52.67 %
|
|
48.73 %
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
(dollars in
thousands, except per share data)
|
|
|
2023
|
|
2022
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
|
|
$443,124
|
|
$314,866
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
|
|
31,611
|
|
23,743
|
|
Tax-exempt
|
|
|
852
|
|
1,579
|
|
Dividends
|
|
|
2,314
|
|
563
|
|
Total Interest and
Dividend Income
|
|
|
477,901
|
|
340,751
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
|
92,836
|
|
19,907
|
|
Borrowings, junior
subordinated debt securities and other
|
|
|
35,655
|
|
5,061
|
|
Total Interest
Expense
|
|
|
128,491
|
|
24,968
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
349,410
|
|
315,783
|
|
Provision for credit
losses
|
|
|
17,892
|
|
8,366
|
|
Net Interest Income
After Provision for Credit Losses
|
|
|
331,518
|
|
307,417
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain on sale of
securities
|
|
|
—
|
|
198
|
|
Debit and credit
card
|
|
|
18,248
|
|
19,008
|
|
Service charges on
deposit accounts
|
|
|
16,193
|
|
16,829
|
|
Wealth
management
|
|
|
12,186
|
|
12,717
|
|
Mortgage
banking
|
|
|
1,164
|
|
2,215
|
|
Other
|
|
|
9,829
|
|
7,292
|
|
Total Noninterest
Income
|
|
|
57,620
|
|
58,259
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
111,462
|
|
103,221
|
|
Data processing and
information technology
|
|
|
17,437
|
|
16,918
|
|
Occupancy
|
|
|
14,814
|
|
14,812
|
|
Furniture, equipment
and software
|
|
|
12,912
|
|
11,606
|
|
Professional services
and legal
|
|
|
7,823
|
|
8,318
|
|
Other taxes
|
|
|
6,813
|
|
6,620
|
|
Marketing
|
|
|
6,488
|
|
5,600
|
|
FDIC
insurance
|
|
|
4,122
|
|
2,854
|
|
Other noninterest
expense
|
|
|
28,463
|
|
26,797
|
|
Total Noninterest
Expense
|
|
|
210,334
|
|
196,746
|
|
Income Before
Taxes
|
|
|
178,804
|
|
168,930
|
|
Income tax
expense
|
|
|
34,023
|
|
33,410
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$144,781
|
|
$135,520
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
|
|
38,655,405
|
|
39,030,934
|
|
Diluted earnings per
share
|
|
|
$3.74
|
|
$3.46
|
|
Dividends declared per
share
|
|
|
$1.29
|
|
$1.20
|
|
Dividends paid to net
income
|
|
|
34.33 %
|
|
34.64 %
|
|
|
|
|
|
|
|
|
Profitability Ratios
(annualized)
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.56 %
|
|
1.48 %
|
|
Return on average
shareholders' equity
|
|
|
11.80 %
|
|
11.47 %
|
|
Return on average
tangible shareholders' equity(5)
|
|
|
17.15 %
|
|
17.02 %
|
|
Pre-provision net
revenue / average assets(6)
|
|
|
2.12 %
|
|
1.93 %
|
|
Efficiency ratio
(FTE)(7)
|
|
|
51.35 %
|
|
52.34 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$233,612
|
|
$238,453
|
|
$210,009
|
|
Securities available
for sale, at fair value
|
970,391
|
|
955,262
|
|
1,002,778
|
|
Loans held for
sale
|
153
|
|
257
|
|
16
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
3,357,603
|
|
3,286,272
|
|
3,128,187
|
|
Commercial and
industrial
|
1,642,106
|
|
1,635,354
|
|
1,718,976
|
|
Commercial
construction
|
363,284
|
|
388,470
|
|
399,371
|
|
Total Commercial
Loans
|
5,362,993
|
|
5,310,096
|
|
5,246,534
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
1,461,097
|
|
1,384,133
|
|
1,116,528
|
|
Home equity
|
650,666
|
|
649,122
|
|
652,066
|
|
Installment and other
consumer
|
114,897
|
|
115,379
|
|
124,896
|
|
Consumer
construction
|
63,688
|
|
57,188
|
|
43,945
|
|
Total Consumer
Loans
|
2,290,348
|
|
2,205,822
|
|
1,937,435
|
|
Total Portfolio
Loans
|
7,653,341
|
|
7,515,918
|
|
7,183,969
|
|
Allowance for credit
losses
|
(107,966)
|
|
(108,206)
|
|
(101,340)
|
|
Total Portfolio
Loans, Net
|
7,545,375
|
|
7,407,712
|
|
7,082,629
|
|
Federal Home Loan Bank
and other restricted stock, at cost
|
25,082
|
|
38,576
|
|
23,035
|
|
Goodwill
|
373,424
|
|
373,424
|
|
373,424
|
|
Other assets
|
403,489
|
|
452,393
|
|
418,676
|
|
Total
Assets
|
$9,551,526
|
|
$9,466,077
|
|
$9,110,567
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$2,221,942
|
|
$2,276,009
|
|
$2,588,692
|
|
Interest-bearing
demand
|
825,787
|
|
868,624
|
|
846,653
|
|
Money
market
|
1,941,842
|
|
1,615,445
|
|
1,731,521
|
|
Savings
|
950,546
|
|
974,940
|
|
1,118,511
|
|
Certificates of
deposit
|
1,581,652
|
|
1,487,879
|
|
934,593
|
|
Total
Deposits
|
7,521,769
|
|
7,222,897
|
|
7,219,970
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
Short-term
borrowings
|
415,000
|
|
630,000
|
|
370,000
|
|
Long-term
borrowings
|
39,277
|
|
39,396
|
|
14,741
|
|
Junior subordinated
debt securities
|
49,358
|
|
49,343
|
|
54,453
|
|
Total
Borrowings
|
503,635
|
|
718,739
|
|
439,194
|
|
Other
liabilities
|
242,677
|
|
300,909
|
|
266,744
|
|
Total
Liabilities
|
8,268,081
|
|
8,242,545
|
|
7,925,908
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
1,283,445
|
|
1,223,532
|
|
1,184,659
|
|
Total Liabilities
and Shareholders' Equity
|
$9,551,526
|
|
$9,466,077
|
|
$9,110,567
|
|
|
|
|
|
|
|
|
Capitalization
Ratios
|
|
|
|
|
|
|
Shareholders' equity /
assets
|
13.44 %
|
|
12.93 %
|
|
13.00 %
|
|
Tangible common equity
/ tangible assets(9)
|
9.88 %
|
|
9.31 %
|
|
9.24 %
|
|
Tier 1 leverage
ratio
|
11.21 %
|
|
11.12 %
|
|
11.06 %
|
|
Common equity tier 1
capital
|
13.37 %
|
|
13.11 %
|
|
12.81 %
|
|
Risk-based capital -
tier 1
|
13.69 %
|
|
13.43 %
|
|
13.21 %
|
|
Risk-based capital -
total
|
15.27 %
|
|
15.01 %
|
|
14.73 %
|
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Net Interest Margin
(FTE) (QTD Averages)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
$149,985
|
5.92 %
|
$144,303
|
4.93 %
|
$79,881
|
4.04 %
|
Securities, at fair
value
|
956,107
|
2.75 %
|
964,928
|
2.64 %
|
991,774
|
2.43 %
|
Loans held for
sale
|
57
|
7.25 %
|
207
|
6.70 %
|
491
|
6.19 %
|
Commercial real
estate
|
3,312,509
|
5.86 %
|
3,243,056
|
5.83 %
|
3,118,874
|
5.14 %
|
Commercial and
industrial
|
1,621,091
|
7.29 %
|
1,646,572
|
7.22 %
|
1,724,480
|
6.15 %
|
Commercial
construction
|
381,294
|
7.55 %
|
373,111
|
7.80 %
|
387,737
|
6.64 %
|
Total Commercial
Loans
|
5,314,894
|
6.42 %
|
5,262,739
|
6.41 %
|
5,231,091
|
5.58 %
|
Residential
mortgage
|
1,417,891
|
4.81 %
|
1,332,913
|
4.66 %
|
1,077,114
|
4.25 %
|
Home equity
|
650,721
|
6.94 %
|
645,949
|
6.80 %
|
648,340
|
5.44 %
|
Installment and other
consumer
|
114,720
|
9.15 %
|
115,111
|
8.52 %
|
126,570
|
6.97 %
|
Consumer
construction
|
62,850
|
5.22 %
|
52,783
|
4.89 %
|
41,385
|
3.81 %
|
Total Consumer
Loans
|
2,246,182
|
5.66 %
|
2,146,756
|
5.52 %
|
1,893,409
|
4.83 %
|
Total Portfolio
Loans
|
7,561,076
|
6.19 %
|
7,409,495
|
6.15 %
|
7,124,500
|
5.38 %
|
Total
Loans
|
7,561,133
|
6.19 %
|
7,409,702
|
6.15 %
|
7,124,991
|
5.38 %
|
Total other earning
assets
|
37,502
|
7.23 %
|
42,645
|
6.97 %
|
24,043
|
5.32 %
|
Total
Interest-earning Assets
|
8,704,727
|
5.81 %
|
8,561,578
|
5.74 %
|
8,220,689
|
5.01 %
|
Noninterest-earning
assets
|
768,942
|
|
763,243
|
|
763,927
|
|
Total
Assets
|
$9,473,669
|
|
$9,324,821
|
|
$8,984,616
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Interest-bearing
demand
|
$836,771
|
1.03 %
|
$868,782
|
0.91 %
|
$836,585
|
0.24 %
|
Money
market
|
1,843,338
|
2.98 %
|
1,595,964
|
2.34 %
|
1,792,162
|
1.60 %
|
Savings
|
957,903
|
0.57 %
|
996,999
|
0.47 %
|
1,127,987
|
0.22 %
|
Certificates of
deposit
|
1,533,266
|
4.02 %
|
1,382,532
|
3.54 %
|
941,774
|
1.14 %
|
Total
Interest-bearing Deposits
|
5,171,278
|
2.53 %
|
4,844,277
|
2.04 %
|
4,698,508
|
0.93 %
|
Short-term
borrowings
|
435,060
|
5.75 %
|
585,196
|
5.65 %
|
148,370
|
4.22 %
|
Long-term
borrowings
|
39,341
|
4.53 %
|
39,458
|
4.47 %
|
14,801
|
2.55 %
|
Junior subordinated
debt securities
|
49,350
|
8.25 %
|
50,649
|
8.16 %
|
54,443
|
6.21 %
|
Total
Borrowings
|
523,751
|
5.90 %
|
675,303
|
5.77 %
|
217,614
|
4.60 %
|
Total Other
Interest-bearing Liabilities
|
65,547
|
5.40 %
|
62,584
|
5.33 %
|
60,156
|
3.72 %
|
Total
Interest-bearing Liabilities
|
5,760,576
|
2.86 %
|
5,582,164
|
2.53 %
|
4,976,278
|
1.13 %
|
Noninterest-bearing
liabilities
|
2,466,063
|
|
2,517,752
|
|
2,840,315
|
|
Shareholders'
equity
|
1,247,030
|
|
1,224,905
|
|
1,168,023
|
|
Total Liabilities
and Shareholders' Equity
|
$9,473,669
|
|
$9,324,821
|
|
$8,984,616
|
|
|
|
|
|
|
|
|
Net Interest
Margin(10)
|
|
3.92 %
|
|
4.09 %
|
|
4.33 %
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
Net Interest Margin
(FTE) (YTD Averages)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
|
$141,954
|
5.17 %
|
$378,323
|
0.78 %
|
Securities, at fair
value
|
|
|
976,095
|
2.61 %
|
1,017,471
|
2.25 %
|
Loans held for
sale
|
|
|
121
|
6.71 %
|
1,115
|
4.38 %
|
Commercial real
estate
|
|
|
3,216,593
|
5.70 %
|
3,182,821
|
4.39 %
|
Commercial and
industrial
|
|
|
1,665,630
|
7.10 %
|
1,706,861
|
4.90 %
|
Commercial
construction
|
|
|
381,838
|
7.55 %
|
401,780
|
4.68 %
|
Total Commercial
Loans
|
|
|
5,264,061
|
6.27 %
|
5,291,462
|
4.57 %
|
Residential
mortgage
|
|
|
1,282,078
|
4.62 %
|
980,134
|
4.10 %
|
Home equity
|
|
|
648,525
|
6.65 %
|
611,134
|
4.24 %
|
Installment and other
consumer
|
|
|
117,807
|
8.43 %
|
119,703
|
6.00 %
|
Consumer
construction
|
|
|
51,146
|
4.81 %
|
33,922
|
3.53 %
|
Total Consumer
Loans
|
|
|
2,099,556
|
5.46 %
|
1,744,893
|
4.26 %
|
Total Portfolio
Loans
|
|
|
7,363,617
|
6.04 %
|
7,036,355
|
4.50 %
|
Total
Loans
|
|
|
7,363,738
|
6.04 %
|
7,037,470
|
4.50 %
|
Total other earning
assets
|
|
|
37,988
|
7.04 %
|
12,694
|
4.54 %
|
Total
Interest-earning Assets
|
|
|
8,519,775
|
5.64 %
|
8,445,958
|
4.06 %
|
Noninterest-earning
assets
|
|
|
756,481
|
|
721,080
|
|
Total
Assets
|
|
|
$9,276,256
|
|
$9,167,038
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
|
$844,588
|
0.72 %
|
$918,222
|
0.11 %
|
Money
market
|
|
|
1,677,584
|
2.33 %
|
1,909,208
|
0.63 %
|
Savings
|
|
|
1,020,314
|
0.43 %
|
1,121,818
|
0.10 %
|
Certificates of
deposit
|
|
|
1,302,478
|
3.30 %
|
993,722
|
0.58 %
|
Total
Interest-bearing deposits
|
|
|
4,844,964
|
1.92 %
|
4,942,970
|
0.40 %
|
Securities sold under
repurchase agreements
|
|
|
—
|
— %
|
35,836
|
0.10 %
|
Short-term
borrowings
|
|
|
500,421
|
5.44 %
|
40,013
|
4.15 %
|
Long-term
borrowings
|
|
|
31,706
|
4.20 %
|
19,090
|
2.15 %
|
Junior subordinated
debt securities
|
|
|
52,215
|
7.87 %
|
54,420
|
4.40 %
|
Total
Borrowings
|
|
|
584,342
|
5.59 %
|
149,359
|
3.01 %
|
Total Other
Interest-bearing Liabilities
|
|
|
58,135
|
5.12 %
|
15,163
|
3.69 %
|
Total
Interest-bearing Liabilities
|
|
|
5,487,441
|
2.34 %
|
5,107,492
|
0.49 %
|
Noninterest-bearing
liabilities
|
|
|
2,561,483
|
|
2,877,758
|
|
Shareholders'
equity
|
|
|
1,227,332
|
|
1,181,788
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
$9,276,256
|
|
$9,167,038
|
|
|
|
|
|
|
|
|
Net Interest
Margin(8)
|
|
|
|
4.13 %
|
|
3.76 %
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Nonaccrual
Loans
|
|
|
|
|
|
|
Commercial
loans:
|
|
%
Loans
|
|
%
Loans
|
|
%
Loans
|
Commercial real
estate
|
$7,267
|
0.22 %
|
$1,735
|
0.05 %
|
$7,323
|
0.23 %
|
Commercial and
industrial
|
3,243
|
0.20 %
|
3,468
|
0.21 %
|
2,974
|
0.17 %
|
Commercial
construction
|
4,960
|
1.37 %
|
384
|
0.10 %
|
384
|
0.10 %
|
Total Nonaccrual
Commercial Loans
|
15,470
|
0.29 %
|
5,587
|
0.11 %
|
10,681
|
0.20 %
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
4,579
|
0.31 %
|
4,139
|
0.30 %
|
6,063
|
0.54 %
|
Home equity
|
2,567
|
0.39 %
|
2,617
|
0.40 %
|
2,031
|
0.31 %
|
Installment and other
consumer
|
330
|
0.29 %
|
334
|
0.29 %
|
277
|
0.22 %
|
Total Nonaccrual
Consumer Loans
|
7,476
|
0.33 %
|
7,090
|
0.32 %
|
8,371
|
0.43 %
|
Total Nonaccrual
Loans
|
$22,946
|
0.30 %
|
$12,677
|
0.17 %
|
$19,052
|
0.27 %
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Charge-offs
|
$3,880
|
|
$4,077
|
|
$1,718
|
|
Recoveries
|
(260)
|
|
(367)
|
|
(808)
|
|
Net Loan
Charge-offs
|
$3,620
|
|
$3,710
|
|
$910
|
|
|
|
|
|
|
|
|
Net Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
$1,690
|
|
($13)
|
|
$412
|
|
Commercial and
industrial
|
949
|
|
3,389
|
|
150
|
|
Commercial
construction
|
451
|
|
—
|
|
—
|
|
Total Commercial Loan
Charge-offs
|
3,090
|
|
3,376
|
|
562
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
(3)
|
|
(11)
|
|
51
|
|
Home equity
|
148
|
|
71
|
|
136
|
|
Installment and other
consumer
|
385
|
|
274
|
|
161
|
|
Total Consumer Loan
Charge-offs
|
530
|
|
334
|
|
348
|
|
Total Net Loan
Charge-offs
|
$3,620
|
|
$3,710
|
|
$910
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Charge-offs
|
|
|
$24,638
|
|
$11,617
|
|
Recoveries
|
|
|
(11,456)
|
|
(9,022)
|
|
Net Loan
Charge-offs
|
|
|
$13,182
|
|
$2,595
|
|
|
|
|
|
|
|
|
Net Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Customer
fraud
|
|
|
($9,329)
|
|
$—
|
|
Commercial real
estate
|
|
|
622
|
|
768
|
|
Commercial and
industrial
|
|
|
19,582
|
|
435
|
|
Commercial
construction
|
|
|
449
|
|
(1)
|
|
Total Commercial Loan
Charge-offs
|
|
|
11,324
|
|
1,202
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
(6)
|
|
186
|
|
Home equity
|
|
|
238
|
|
232
|
|
Installment and other
consumer
|
|
|
1,626
|
|
975
|
|
Total Consumer Loan
Charge-offs
|
|
|
1,858
|
|
1,393
|
|
Total Net Loan
Charge-offs
|
|
|
$13,182
|
|
$2,595
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Nonaccrual
loans
|
$22,947
|
|
$12,677
|
|
$19,052
|
|
OREO
|
75
|
|
3,715
|
|
3,065
|
|
Total nonperforming
assets
|
23,022
|
|
16,392
|
|
22,117
|
|
Troubled debt
restructurings (nonaccruing)*
|
—
|
|
—
|
|
2,894
|
|
Troubled debt
restructurings (accruing)*
|
—
|
|
—
|
|
8,891
|
|
Total troubled debt
restructurings*
|
—
|
|
—
|
|
11,785
|
|
Nonaccrual loans /
total loans
|
0.30 %
|
|
0.17 %
|
|
0.27 %
|
|
Nonperforming assets /
total loans plus OREO
|
0.30 %
|
|
0.22 %
|
|
0.31 %
|
|
Allowance for credit
losses / total portfolio loans
|
1.41 %
|
|
1.44 %
|
|
1.41 %
|
|
Allowance for credit
losses / nonaccrual loans
|
471 %
|
|
854 %
|
|
532 %
|
|
Net loan charge-offs
(recoveries)
|
$3,620
|
|
$3,710
|
|
$910
|
|
Net loan charge-offs
(recoveries) (annualized) / average loans
|
0.19 %
|
|
0.20 %
|
|
0.05 %
|
|
*TDR's were
eliminated as of January 1, 2023 as part of implementing ASU
2022-02, Financial Instruments Credit Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures.
|
|
|
|
Twelve Months Ended
December 31,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
|
$13,182
|
|
$2,595
|
|
Net loan charge-offs /
average loans
|
|
|
0.18 %
|
|
0.04 %
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars and shares
in thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(1) Tangible Book
Value (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,283,445
|
|
$1,223,532
|
|
$1,184,659
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,631)
|
|
(376,883)
|
|
(377,673)
|
|
Tangible common equity
(non-GAAP)
|
$906,814
|
|
$846,649
|
|
$806,986
|
|
Common shares
outstanding
|
38,233
|
|
38,244
|
|
39,000
|
|
Tangible book value
(non-GAAP)
|
$23.72
|
|
$22.14
|
|
$20.69
|
|
Tangible book value
is a preferred industry metric used to measure our company's value
and commonly used by investors and analysts.
|
|
|
|
|
|
|
|
(2) Return on
Average Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
(annualized)
|
$146,980
|
|
$132,779
|
|
$159,765
|
|
Plus: amortization of
intangibles (annualized), net of tax
|
1,003
|
|
1,034
|
|
1,144
|
|
Net income before
amortization of intangibles (annualized)
|
$147,983
|
|
$133,813
|
|
$160,909
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
$1,247,030
|
|
$1,224,905
|
|
$1,168,023
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
(376,761)
|
|
(377,020)
|
|
(377,857)
|
|
Average tangible
equity (non-GAAP)
|
$870,269
|
|
$847,885
|
|
$790,166
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
17.00 %
|
|
15.78 %
|
|
20.36 %
|
|
Return on average
tangible shareholders' equity is a key profitability metric used by
management to measure financial performance.
|
|
|
|
|
|
|
|
(3) Pre-provision
Net Revenue / Average Assets (non-GAAP)
|
|
|
|
|
|
|
Income before
taxes
|
$46,024
|
|
$41,268
|
|
$50,250
|
|
Plus:
Provision for credit losses
|
943
|
|
5,498
|
|
3,176
|
|
Total
|
$46,967
|
|
$46,766
|
|
$53,426
|
|
Total (annualized)
(non-GAAP)
|
$186,336
|
|
$185,538
|
|
$211,961
|
|
Average
assets
|
$9,473,669
|
|
$9,324,821
|
|
$8,984,616
|
|
Pre-provision Net
Revenue / Average Assets (non-GAAP)
|
1.97 %
|
|
1.99 %
|
|
2.36 %
|
|
Pre-provision net
revenue to average assets is income before taxes adjusted to
exclude provision for credit losses. We believe this to be a
preferred industry measurement to help evaluate our ability to fund
credit losses or build capital.
|
|
|
|
|
|
|
|
(4) Efficiency Ratio
(non-GAAP)
|
|
|
|
|
|
|
Noninterest
expense
|
$56,203
|
|
$52,799
|
|
$51,275
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
$85,109
|
|
$87,387
|
|
$89,058
|
|
Plus: taxable
equivalent adjustment
|
683
|
|
674
|
|
532
|
|
Net interest income
(FTE) (non-GAAP)
|
85,792
|
|
88,061
|
|
89,590
|
|
Noninterest
income
|
18,061
|
|
12,178
|
|
15,643
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
$103,853
|
|
$100,239
|
|
$105,233
|
|
Efficiency ratio
(non-GAAP)
|
54.12 %
|
|
52.67 %
|
|
48.73 %
|
|
The efficiency
ratio is noninterest expense divided by noninterest income plus net
interest income, on an FTE basis (non-GAAP), which ensures
comparability of net interest income arising from both taxable and
tax-exempt sources and is consistent with industry
practice.
|
|
|
|
|
|
|
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
|
|
|
Twelve Months Ended
December 31,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
(5) Return on
Average Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
|
|
|
$144,781
|
|
$135,520
|
|
Plus: amortization of
intangibles, net of tax
|
|
|
1,042
|
|
1,199
|
|
Net income before
amortization of intangibles
|
|
|
$145,823
|
|
$136,719
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
|
|
$1,227,332
|
|
$1,181,788
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
|
|
(377,157)
|
|
(378,303)
|
|
Average tangible
equity (non-GAAP)
|
|
|
$850,175
|
|
$803,485
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
|
|
17.15 %
|
|
17.02 %
|
|
Return on average
tangible shareholders' equity is a key profitability metric used by
management to measure financial performance.
|
|
|
|
|
|
|
|
(6) Pre-provision
Net Revenue / Average Assets (non-GAAP)
|
|
|
|
|
|
|
Income before
taxes
|
|
|
$178,804
|
|
$168,930
|
|
Plus: Provision for
credit losses
|
|
|
17,892
|
|
8,366
|
|
Total
|
|
|
$196,696
|
|
$177,296
|
|
Average
assets
|
|
|
$9,276,256
|
|
$9,167,038
|
|
Pre-provision Net
Revenue / Average Assets (non-GAAP)
|
|
|
2.12 %
|
|
1.93 %
|
|
Pre-provision net
revenue to average assets is income before taxes adjusted to
exclude provision for credit losses. We believe this to be a
preferred industry measurement to help evaluate our ability to fund
credit losses or build capital.
|
|
|
|
|
|
|
|
(7) Efficiency Ratio
(non-GAAP)
|
|
|
|
|
|
|
Noninterest
expense
|
|
|
$210,334
|
|
$196,746
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
|
|
$349,410
|
|
$315,783
|
|
Plus: taxable
equivalent adjustment
|
|
|
2,550
|
|
2,052
|
|
Net interest income
(FTE) (non-GAAP)
|
|
|
351,960
|
|
317,835
|
|
Noninterest
income
|
|
|
57,620
|
|
58,259
|
|
Less: net gains on
sale of securities
|
|
|
—
|
|
(198)
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
|
|
$409,580
|
|
$375,896
|
|
Efficiency ratio
(non-GAAP)
|
|
|
51.35 %
|
|
52.34 %
|
|
The efficiency ratio
is noninterest expense divided by noninterest income plus net
interest income, on an FTE basis (non-GAAP), which ensures
comparability of net interest income arising from both taxable and
tax-exempt sources and is consistent with industry
practice.
|
|
|
|
|
|
|
|
(8) Net Interest
Margin Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest income and
dividend income
|
|
|
$477,901
|
|
$340,751
|
|
Less:
interest expense
|
|
|
(128,491)
|
|
(24,968)
|
|
Net interest income
per consolidated statements of net income
|
|
|
349,410
|
|
315,783
|
|
Plus:
taxable equivalent adjustment
|
|
|
2,550
|
|
2,052
|
|
Net interest income
(FTE) (non-GAAP)
|
|
|
$351,960
|
|
$317,835
|
|
Average
interest-earning assets
|
|
|
$8,519,775
|
|
$8,445,958
|
|
Net interest margin -
(FTE) (non-GAAP)
|
|
|
4.13 %
|
|
3.76 %
|
|
The interest income
on interest-earning assets, net interest income and net interest
margin are presented on an FTE basis (non-GAAP). The FTE basis
(non-GAAP) adjusts for the tax benefit of income on certain
tax-exempt loans and securities and the dividend-received deduction
for equity securities using the federal statutory tax rate of 21
percent for each period. We believe this to be the preferred
industry measurement of net interest income that provides a
relevant comparison between taxable and non-taxable sources of
interest income.
|
S&T Bancorp,
Inc.
|
Consolidated
Selected Financial Data
|
Unaudited
|
|
Definitions and Reconciliation of GAAP
to Non-GAAP Financial Measures:
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Fourth
|
|
Third
|
|
Fourth
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(9) Tangible Common
Equity / Tangible Assets (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,283,445
|
|
$1,223,532
|
|
$1,184,659
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,631)
|
|
(376,883)
|
|
(377,673)
|
|
Tangible common equity
(non-GAAP)
|
$906,814
|
|
$846,649
|
|
$806,986
|
|
|
|
|
|
|
|
|
Total
assets
|
$9,551,526
|
|
$9,466,077
|
|
$9,110,567
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,631)
|
|
(376,883)
|
|
(377,673)
|
|
Tangible assets
(non-GAAP)
|
$9,174,895
|
|
$9,089,194
|
|
$8,732,894
|
|
Tangible common equity
to tangible assets (non-GAAP)
|
9.88 %
|
|
9.31 %
|
|
9.24 %
|
|
Tangible common
equity to tangible assets is a preferred industry measurement to
evaluate capital adequacy.
|
|
|
|
|
|
|
|
(10) Net Interest
Margin Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest income and
dividend income
|
$126,706
|
|
$122,959
|
|
$103,208
|
|
Less: interest
expense
|
(41,597)
|
|
(35,572)
|
|
(14,150)
|
|
Net interest income
per consolidated statements of net income
|
85,109
|
|
87,387
|
|
89,058
|
|
Plus: taxable
equivalent adjustment
|
683
|
|
674
|
|
532
|
|
Net interest income
(FTE) (non-GAAP)
|
$85,792
|
|
$88,061
|
|
$89,590
|
|
Net interest income
(FTE) (annualized)
|
$340,370
|
|
$349,373
|
|
$355,438
|
|
Average
interest-earning assets
|
$8,704,727
|
|
$8,561,578
|
|
$8,220,689
|
|
Net interest margin
(FTE) (non-GAAP)
|
3.92 %
|
|
4.09 %
|
|
4.33 %
|
|
The interest income
on interest-earning assets, net interest income and net interest
margin are presented on an FTE basis (non-GAAP). The FTE basis
(non-GAAP) adjusts for the tax benefit of income on certain
tax-exempt loans and securities and the dividend-received deduction
for equity securities using the federal statutory tax rate of 21
percent for each period. We believe this to be the preferred
industry measurement of net interest income that provides a
relevant comparison between taxable and non-taxable sources of
interest income.
|
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SOURCE S&T Bancorp, Inc.