Subjects: ERN, CCA, DIV
S&T Bancorp, Inc. Announces Third Quarter 2018 Results
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. | ||||||
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. | ||||||||
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. | ||||||||
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. | |||||||
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. | |||||||
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. | |||||||
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. | ||||||
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. | |||||||||
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. | ||||||
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% | ||||
SOURCE S&T Bancorp, Inc.
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