Subjects: ERN, CCA, DIV
S&T Bancorp, Inc. Announces Second Quarter 2018 Results
INDIANA, Pa., July19, 2018 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its second quarter 2018 earnings. Second quarter net income was $21.4 million, or $0.61 diluted earnings per share (EPS), compared to second quarter of 2017 net income of $22.8 million, or $0.65 diluted EPS and first quarter of 2018 net income of $26.2 million, or $0.75 diluted EPS.
Second Quarter of 2018 Highlights:
- Return on average assets was 1.22%, return on average shareholders' equity was 9.52% and return on average tangible shareholders' equity (non-GAAP) was 14.14%.
- Net interest margin (FTE) (Non-GAAP) improved 5 basis points to 3.64% and net interest income increased $1.5 million to $58.4 million compared to the first quarter of 2018.
- Total portfolio loans increased $55.5 million, or 3.9% annualized, compared to the first quarter of 2018.
- Expenses continue to be well controlled with an efficiency ratio (non-GAAP) of 50.09% compared to 51.48% in the second quarter of 2017.
- S&T declared a $0.25 per share dividend which is an increase of 25% compared to a $0.20 dividend in the same period last year.
"Our core operating performance continues to be strong with net interest income and net interest margin improvement combined with excellent expense control," said Todd Brice, president and chief executive officer of S&T. "Loan growth resumed in the second quarter despite a notable increase in competition. We remain disciplined in our loan growth strategy with a strong focus on maintaining spreads."
Net Interest Income
Net interest income increased $1.5 million to $58.4 million for the second quarter of 2018 compared to $56.9 million for the first quarter of 2018. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 5 basis points to 3.64% from 3.59% for the first quarter of 2018. The increases in short term interest rates in March and June of 2018 positively impacted both net interest income and net interest margin. Loan rates increased 18 basis points to 4.68% compared to 4.50% in the prior quarter, while total interest-bearing liabilities increased 17 basis points to 1.12% compared to 0.95%.
Asset Quality
Net charge-offs and provision for loan losses were significantly impacted by a $5.2 million loan charge-off, or $0.12 per diluted EPS, arising from a participation loan agreement with a lead bank and other participating banks. The loss resulted from fraudulent activities believed to be perpetrated by one or more executives employed by the borrower and its related entities. S&T's total exposure consisted of the participation loan of $4.9 million and a direct exposure of $950 thousand which is secured by vehicles and equipment liens. As a result, net loan charge-offs increased to $7.9 million compared to a net recovery of $0.2 million in the first quarter of 2018. The provision for loan loss increased $6.8 million to $9.3 million compared to $2.5 million in the first quarter of 2018. The allowance for loan losses to total portfolio loans was 1.05% at June 30, 2018 compared to 1.03% at March 31, 2018. While the net charge-offs and the provision for loan losses were elevated during the second quarter of 2018, both nonperforming loans and delinquency remained at low levels. Total nonperforming loans were $21.4 million, or 0.37% of total loans, at June 30, 2018 compared to $21.3 million, or 0.37% of total loans at March 31, 2018.
Noninterest Income and Expense
Noninterest income decreased $1.5 million to $12.3 million for the second quarter of 2018 compared to $13.8 million for the first quarter of 2018. The decrease primarily related to a $1.9 million gain on the sale of a majority interest of our insurance business during the first quarter of 2018. Insurance fees decreased $1.3 million compared to the second quarter of 2017 as a result of this sale.
Expenses remained well controlled decreasing to $35.9 million compared to $36.1 million for the first quarter of 2018. Marketing expense increased $0.5 million due to the timing of marketing campaigns. FDIC expense decreased $0.4 million due to improvements in the financial ratios used to determine the assessment. The efficiency ratio (non-GAAP) improved during the second quarter of 2018 to 50.09% compared to 50.35% in the first quarter and 51.48% in the second quarter of 2017 primarily due to lower expenses.
Financial Condition
Total assets were $7.1 billion at June 30, 2018 compared to $7.0 billion as of March 31, 2018. Total portfolio loans increased $55.5 million, or 3.9% annualized, compared to March 31, 2018. C&I loan growth was strong with an increase of $48.6 million, approximately 14% annualized, compared to the first quarter of 2018. Total deposits remained stable at $5.4 billion at June 30, 2018 and March 31, 2018. All capital ratios increased this quarter due to higher retained earnings and slower risk weighted asset growth. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T declared a $0.25 per share cash dividend at its regular meeting held July 16, 2018. This dividend is a 25% increase compared to a $0.20 dividend in the same period last year. The dividend is payable August 16, 2018 to shareholders of record on August 2, 2018.
Conference Call
S&T will host its second quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 19, 2018. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd Quarter 2018 Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until July 26, 2018, by dialing 1.877.481.4010; the Conference ID # is 33697.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $7.1 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.
This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward looking statements are typically identified by words or phrases such as "will likely result", "expect", "anticipate" ,"estimate", "forecast", "project", "intend", " believe", "assume", "strategy", "trend", "plan", "outlook", "outcome", "continue", "remain", "potential", "opportunity", "believe", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses, cyber-security concerns; rapid technological developments and changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or business conditions; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
|
S&T Bancorp, Inc. |
|||||||||
|
2018 |
2018 |
2017 |
|||||||
|
Second |
First |
Second |
|||||||
|
(dollars in thousands, except per share data) |
Quarter |
Quarter |
Quarter |
||||||
|
INTEREST INCOME |
|||||||||
|
Loans, including fees |
$66,610 |
$63,055 |
$60,558 |
||||||
|
Investment securities: |
|||||||||
|
Taxable |
3,519 |
3,429 |
2,947 |
||||||
|
Tax-exempt |
872 |
874 |
928 |
||||||
|
Dividends |
580 |
671 |
481 |
||||||
|
Total Interest Income |
71,581 |
68,029 |
64,914 |
||||||
|
INTEREST EXPENSE |
|||||||||
|
Deposits |
9,166 |
7,846 |
5,976 |
||||||
|
Borrowings and junior subordinated debt securities |
4,012 |
3,251 |
2,368 |
||||||
|
Total Interest Expense |
13,178 |
11,097 |
8,344 |
||||||
|
NET INTEREST INCOME |
58,403 |
56,932 |
56,570 |
||||||
|
Provision for loan losses |
9,345 |
2,472 |
4,869 |
||||||
|
Net Interest Income After Provision for Loan Losses |
49,058 |
54,460 |
51,701 |
||||||
|
NONINTEREST INCOME |
|||||||||
|
Net gain (loss) on sale of securities |
? |
? |
3,617 |
||||||
|
Debit and credit card |
3,309 |
3,037 |
3,042 |
||||||
|
Service charges on deposit accounts |
3,227 |
3,241 |
2,997 |
||||||
|
Wealth management |
2,616 |
2,682 |
2,428 |
||||||
|
Mortgage banking |
831 |
602 |
675 |
||||||
|
Insurance |
134 |
169 |
1,458 |
||||||
|
Gain on sale of a majority interest of insurance business |
? |
1,873 |
? |
||||||
|
Other |
2,134 |
2,188 |
2,048 |
||||||
|
Total Noninterest Income |
12,251 |
13,792 |
16,265 |
||||||
|
NONINTEREST EXPENSE |
|||||||||
|
Salaries and employee benefits |
18,611 |
18,815 |
19,903 |
||||||
|
Net occupancy |
2,804 |
2,873 |
2,751 |
||||||
|
Data processing and information technology |
2,379 |
2,325 |
2,163 |
||||||
|
Furniture, equipment and software |
2,134 |
1,957 |
1,810 |
||||||
|
Other taxes |
1,739 |
1,848 |
1,083 |
||||||
|
Marketing |
1,190 |
702 |
948 |
||||||
|
Professional services and legal |
888 |
1,051 |
931 |
||||||
|
FDIC insurance |
739 |
1,108 |
1,185 |
||||||
|
Other |
5,379 |
5,403 |
5,823 |
||||||
|
Total Noninterest Expense |
35,863 |
36,082 |
36,597 |
||||||
|
Income Before Taxes |
25,446 |
32,170 |
31,369 |
||||||
|
Provision for income taxes |
4,010 |
6,007 |
8,604 |
||||||
|
Net Income |
$21,436 |
$26,163 |
$22,765 |
||||||
|
Per Share Data |
|||||||||
|
Shares outstanding at end of period |
35,009,945 |
35,000,502 |
34,980,280 |
||||||
|
Average shares outstanding - diluted |
35,057,576 |
34,999,165 |
34,906,496 |
||||||
|
Diluted earnings per share |
$0.61 |
$0.75 |
$0.65 |
||||||
|
Dividends declared per share |
$0.25 |
$0.22 |
$0.20 |
||||||
|
Dividend yield (annualized) |
2.31% |
2.20% |
2.23% |
||||||
|
Dividends paid to net income |
40.69% |
29.31% |
30.60% |
||||||
|
Book value |
$25.91 |
$25.58 |
$24.90 |
||||||
|
Tangible book value (1) |
$17.63 |
$17.30 |
$16.49 |
||||||
|
Market value |
$43.24 |
$39.94 |
$35.86 |
||||||
|
Profitability Ratios (annualized) |
|||||||||
|
Return on average assets |
1.22% |
1.51% |
1.29% |
||||||
|
Return on average shareholders' equity |
9.52% |
11.92% |
10.55% |
||||||
|
Return on average tangible shareholders' equity (2) |
14.14% |
17.83% |
16.15% |
||||||
|
Efficiency ratio (FTE) (3) |
50.09% |
50.35% |
51.48% |
||||||
|
S&T Bancorp, Inc. |
||||||||
|
Six Months Ended June 30, |
||||||||
|
(dollars in thousands, except per share data) |
2018 |
2017 |
||||||
|
INTEREST INCOME |
||||||||
|
Loans, including fees |
$129,665 |
$117,458 |
||||||
|
Investment securities: |
||||||||
|
Taxable |
6,948 |
5,796 |
||||||
|
Tax-exempt |
1,746 |
1,848 |
||||||
|
Dividends |
1,251 |
963 |
||||||
|
Total Interest Income |
139,610 |
126,065 |
||||||
|
INTEREST EXPENSE |
||||||||
|
Deposits |
17,012 |
11,355 |
||||||
|
Borrowings and junior subordinated debt securities |
7,264 |
4,261 |
||||||
|
Total Interest Expense |
24,276 |
15,616 |
||||||
|
NET INTEREST INCOME |
115,334 |
110,449 |
||||||
|
Provision for loan losses |
11,817 |
10,052 |
||||||
|
Net Interest Income After Provision for Loan Losses |
103,517 |
100,397 |
||||||
|
NONINTEREST INCOME |
||||||||
|
Net gain (loss) on sale of securities |
? |
3,987 |
||||||
|
Debit and credit card |
6,347 |
5,885 |
||||||
|
Service charges on deposit accounts |
6,468 |
6,012 |
||||||
|
Wealth management |
5,298 |
4,831 |
||||||
|
Mortgage banking |
1,432 |
1,408 |
||||||
|
Insurance |
303 |
2,913 |
||||||
|
Gain on sale of a majority interest of insurance business |
1,873 |
? |
||||||
|
Other |
4,323 |
4,225 |
||||||
|
Total Noninterest Income |
26,044 |
29,261 |
||||||
|
NONINTEREST EXPENSE |
||||||||
|
Salaries and employee benefits |
37,426 |
40,444 |
||||||
|
Net occupancy |
5,677 |
5,566 |
||||||
|
Data processing and information technology |
4,704 |
4,386 |
||||||
|
Furniture, equipment and software |
4,090 |
3,857 |
||||||
|
Other taxes |
3,587 |
2,060 |
||||||
|
Marketing |
1,892 |
1,702 |
||||||
|
Professional services and legal |
1,939 |
1,999 |
||||||
|
FDIC insurance |
1,847 |
2,308 |
||||||
|
Other |
10,783 |
11,084 |
||||||
|
Total Noninterest Expense |
71,945 |
73,406 |
||||||
|
Income Before Taxes |
57,616 |
56,252 |
||||||
|
Provision for income taxes |
10,017 |
15,299 |
||||||
|
Net Income |
$47,599 |
$40,953 |
||||||
|
Per Share Data: |
||||||||
|
Average shares outstanding - diluted |
35,043,041 |
34,907,377 |
||||||
|
Diluted earnings per share |
$1.36 |
$1.17 |
||||||
|
Dividends declared per share |
$0.47 |
$0.40 |
||||||
|
Dividends paid to net income |
34.44% |
34.01% |
||||||
|
Profitability Ratios (annualized) |
||||||||
|
Return on average assets |
1.37% |
1.18% |
||||||
|
Return on average shareholders' equity |
10.71% |
9.63% |
||||||
|
Return on average tangible shareholders' equity (6) |
15.95% |
14.83% |
||||||
|
Efficiency ratio (FTE) (7) |
50.22% |
52.63% |
||||||
|
S&T Bancorp, Inc. |
||||||
|
2018 |
2018 |
2017 |
||||
|
Second |
First |
Second |
||||
|
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
|||
|
ASSETS |
||||||
|
Cash and due from banks, including interest-bearing deposits |
$137,933 |
$112,849 |
$125,863 |
|||
|
Securities, at fair value |
688,341 |
687,650 |
689,388 |
|||
|
Loans held for sale |
3,801 |
3,283 |
23,120 |
|||
|
Commercial loans: |
||||||
|
Commercial real estate |
2,788,641 |
2,760,891 |
2,664,642 |
|||
|
Commercial and industrial |
1,455,578 |
1,406,950 |
1,401,283 |
|||
|
Commercial construction |
299,787 |
324,141 |
426,754 |
|||
|
Total Commercial Loans |
4,544,006 |
4,491,982 |
4,492,679 |
|||
|
Consumer loans: |
||||||
|
Residential mortgage |
698,440 |
692,385 |
706,143 |
|||
|
Home equity |
471,622 |
474,850 |
484,960 |
|||
|
Installment and other consumer |
66,638 |
66,890 |
70,068 |
|||
|
Consumer construction |
5,412 |
4,506 |
3,969 |
|||
|
Total Consumer Loans |
1,242,112 |
1,238,631 |
1,265,140 |
|||
|
Total Portfolio Loans |
5,786,118 |
5,730,613 |
5,757,819 |
|||
|
Allowance for loan losses |
(60,517) |
(59,046) |
(55,351) |
|||
|
Total Portfolio Loans, Net |
5,725,601 |
5,671,567 |
5,702,468 |
|||
|
Federal Home Loan Bank and other restricted stock, at cost |
35,782 |
29,769 |
33,417 |
|||
|
Goodwill |
287,446 |
287,446 |
291,670 |
|||
|
Other assets |
218,442 |
212,765 |
220,240 |
|||
|
Total Assets |
$7,097,346 |
$7,005,329 |
$7,086,166 |
|||
|
LIABILITIES |
||||||
|
Deposits: |
||||||
|
Noninterest-bearing demand |
$1,410,211 |
$1,368,350 |
$1,335,768 |
|||
|
Interest-bearing demand |
553,729 |
560,711 |
636,904 |
|||
|
Money market |
1,267,623 |
1,239,400 |
950,619 |
|||
|
Savings |
845,526 |
876,459 |
1,010,348 |
|||
|
Certificates of deposit |
1,316,444 |
1,342,174 |
1,476,223 |
|||
|
Total Deposits |
5,393,533 |
5,387,094 |
5,409,862 |
|||
|
Borrowings: |
||||||
|
Securities sold under repurchase agreements |
44,724 |
44,617 |
46,489 |
|||
|
Short-term borrowings |
600,000 |
525,000 |
645,000 |
|||
|
Long-term borrowings |
46,062 |
46,684 |
13,518 |
|||
|
Junior subordinated debt securities |
45,619 |
45,619 |
45,619 |
|||
|
Total Borrowings |
736,405 |
661,920 |
750,626 |
|||
|
Other liabilities |
60,275 |
60,908 |
54,616 |
|||
|
Total Liabilities |
6,190,213 |
6,109,922 |
6,215,104 |
|||
|
SHAREHOLDERS' EQUITY |
||||||
|
Total Shareholders' Equity |
907,133 |
895,407 |
871,062 |
|||
|
Total Liabilities and Shareholders' Equity |
$7,097,346 |
$7,005,329 |
$7,086,166 |
|||
|
Capitalization Ratios |
||||||
|
Shareholders' equity / assets |
12.78% |
12.78% |
12.29% |
|||
|
Tangible common equity / tangible assets (4) |
9.07% |
9.02% |
8.49% |
|||
|
Tier 1 leverage ratio |
9.87% |
9.72% |
9.01% |
|||
|
Common equity tier 1 capital |
11.18% |
11.02% |
10.53% |
|||
|
Risk-based capital - tier 1 |
11.53% |
11.36% |
10.89% |
|||
|
Risk-based capital - total |
13.04% |
12.85% |
12.37% |
|||
|
S&T Bancorp, Inc. |
|||||||
|
2018 |
2018 |
2017 |
|||||
|
Second |
First |
Second |
|||||
|
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||
|
Net Interest Margin (FTE) (QTD Averages) |
|||||||
|
ASSETS |
|||||||
|
Interest-bearing deposits with banks |
$55,015 |
1.60% |
$56,008 |
1.65% |
$48,547 |
0.91% |
|
|
Securities, at fair value |
685,132 |
2.60% |
686,912 |
2.53% |
709,208 |
2.48% |
|
|
Loans held for sale |
1,528 |
7.43% |
1,949 |
5.65% |
5,053 |
2.61% |
|
|
Commercial real estate |
2,774,882 |
4.71% |
2,690,990 |
4.57% |
2,664,696 |
4.30% |
|
|
Commercial and industrial |
1,431,861 |
4.66% |
1,431,588 |
4.41% |
1,430,080 |
4.30% |
|
|
Commercial construction |
324,934 |
4.76% |
375,129 |
4.51% |
421,456 |
4.09% |
|
|
Total Commercial Loans |
4,531,677 |
4.70% |
4,497,707 |
4.51% |
4,516,232 |
4.28% |
|
|
Residential mortgage |
691,634 |
4.23% |
694,303 |
4.19% |
700,406 |
4.14% |
|
|
Home equity |
472,927 |
4.81% |
481,053 |
4.47% |
481,039 |
4.38% |
|
|
Installment and other consumer |
67,186 |
6.79% |
66,861 |
6.69% |
69,899 |
6.46% |
|
|
Consumer construction |
4,570 |
4.76% |
3,810 |
4.69% |
4,572 |
4.93% |
|
|
Total Consumer Loans |
1,236,317 |
4.60% |
1,246,027 |
4.43% |
1,255,916 |
4.36% |
|
|
Total Portfolio Loans |
5,767,994 |
4.68% |
5,743,734 |
4.50% |
5,772,148 |
4.30% |
|
|
Total Loans |
5,769,522 |
4.68% |
5,745,683 |
4.50% |
5,777,201 |
4.30% |
|
|
Federal Home Loan Bank and other restricted stock |
34,130 |
6.30% |
31,216 |
8.05% |
33,082 |
4.60% |
|
|
Total Interest-earning Assets |
6,543,799 |
4.44% |
6,519,819 |
4.28% |
6,568,038 |
4.08% |
|
|
Noninterest-earning assets |
491,246 |
488,808 |
507,425 |
||||
|
Total Assets |
$7,035,045 |
$7,008,627 |
$7,075,463 |
||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
|
Interest-bearing demand |
$571,260 |
0.31% |
$575,377 |
0.26% |
$649,440 |
0.22% |
|
|
Money market |
1,251,171 |
1.29% |
1,194,053 |
1.10% |
937,272 |
0.72% |
|
|
Savings |
851,702 |
0.20% |
874,318 |
0.20% |
1,019,220 |
0.21% |
|
|
Certificates of deposit |
1,295,473 |
1.32% |
1,355,617 |
1.14% |
1,457,107 |
0.93% |
|
|
Total interest-bearing Deposits |
3,969,606 |
0.93% |
3,999,365 |
0.80% |
4,063,039 |
0.59% |
|
|
Securities sold under repurchase agreements |
48,980 |
0.41% |
47,774 |
0.39% |
50,082 |
0.06% |
|
|
Short-term borrowings |
617,891 |
2.06% |
596,014 |
1.71% |
682,584 |
1.09% |
|
|
Long-term borrowings |
46,317 |
2.24% |
46,938 |
1.99% |
13,765 |
2.96% |
|
|
Junior subordinated debt securities |
45,619 |
4.61% |
45,619 |
4.14% |
45,619 |
3.60% |
|
|
Total Borrowings |
758,807 |
2.12% |
736,345 |
1.79% |
792,050 |
1.20% |
|
|
Total interest-bearing Liabilities |
4,728,413 |
1.12% |
4,735,710 |
0.95% |
4,855,089 |
0.69% |
|
|
Noninterest-bearing liabilities |
1,403,771 |
1,383,109 |
1,354,711 |
||||
|
Shareholders' equity |
902,861 |
889,808 |
865,663 |
||||
|
Total Liabilities and Shareholders' Equity |
$7,035,045 |
$7,008,627 |
$7,075,463 |
||||
|
Net Interest Margin (5) |
3.64% |
3.59% |
3.57% |
||||
|
S&T Bancorp, Inc. |
|||||||
|
Six Months Ended June 30, |
|||||||
|
(dollars in thousands) |
2018 |
2017 |
|||||
|
Net Interest Margin (FTE) (YTD Averages) |
|||||||
|
ASSETS |
|||||||
|
Interest-bearing deposits with banks |
$55,509 |
1.63% |
$57,311 |
0.87% |
|||
|
Securities, at fair value |
686,017 |
2.57% |
703,300 |
2.46% |
|||
|
Loans held for sale |
1,737 |
6.44% |
3,639 |
3.16% |
|||
|
Commercial real estate |
2,733,168 |
4.64% |
2,595,163 |
4.27% |
|||
|
Commercial and industrial |
1,431,725 |
4.53% |
1,421,986 |
4.23% |
|||
|
Commercial construction |
349,893 |
4.63% |
438,079 |
3.89% |
|||
|
Total Commercial Loans |
4,514,786 |
4.61% |
4,455,228 |
4.22% |
|||
|
Residential mortgage |
692,961 |
4.21% |
700,129 |
4.10% |
|||
|
Home equity |
476,967 |
4.64% |
480,727 |
4.26% |
|||
|
Installment and other consumer |
67,025 |
6.74% |
69,036 |
6.47% |
|||
|
Consumer construction |
4,192 |
4.73% |
4,971 |
4.25% |
|||
|
Total Consumer Loans |
1,241,145 |
4.52% |
1,254,863 |
4.29% |
|||
|
Total Portfolio Loans |
5,755,931 |
4.59% |
5,710,091 |
4.24% |
|||
|
Total Loans |
5,757,668 |
4.59% |
5,713,730 |
4.24% |
|||
|
Federal Home Loan Bank and other restricted stock |
32,681 |
7.13% |
32,888 |
4.64% |
|||
|
Total Interest-earning Assets |
6,531,875 |
4.36% |
6,507,229 |
4.02% |
|||
|
Noninterest-earning assets |
490,476 |
509,265 |
|||||
|
Total Assets |
$7,022,351 |
$7,016,494 |
|||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
|
Interest-bearing demand |
$573,307 |
0.28% |
$641,381 |
0.20% |
|||
|
Money market |
1,222,770 |
1.20% |
937,641 |
0.67% |
|||
|
Savings |
862,947 |
0.20% |
1,030,371 |
0.21% |
|||
|
Certificates of deposit |
1,325,379 |
1.23% |
1,430,599 |
0.92% |
|||
|
Total Interest-bearing deposits |
3,984,403 |
0.86% |
4,039,992 |
0.57% |
|||
|
Securities sold under repurchase agreements |
48,380 |
0.40% |
49,492 |
0.03% |
|||
|
Short-term borrowings |
607,013 |
1.89% |
677,214 |
0.97% |
|||
|
Long-term borrowings |
46,626 |
2.12% |
14,062 |
2.94% |
|||
|
Junior subordinated debt securities |
45,619 |
4.38% |
45,619 |
3.53% |
|||
|
Total Borrowings |
747,638 |
1.96% |
786,387 |
1.09% |
|||
|
Total Interest-bearing Liabilities |
4,732,041 |
1.03% |
4,826,379 |
0.65% |
|||
|
Noninterest-bearing liabilities |
1,393,939 |
1,332,181 |
|||||
|
Shareholders' equity |
896,371 |
857,934 |
|||||
|
Total Liabilities and Shareholders' Equity |
$7,022,351 |
$7,016,494 |
|||||
|
Net Interest Margin (8) |
3.61% |
3.53% |
|||||
|
S&T Bancorp, Inc. |
|||||||
|
2018 |
2018 |
2017 |
|||||
|
Second |
First |
Second |
|||||
|
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||
|
Nonperforming Loans (NPL) |
|||||||
|
Commercial loans: |
% NPL |
% NPL |
% NPL |
||||
|
Commercial real estate |
$4,617 |
0.17% |
$3,952 |
0.14% |
$7,199 |
0.27% |
|
|
Commercial and industrial |
4,853 |
0.33% |
4,617 |
0.33% |
17,418 |
1.24% |
|
|
Commercial construction |
1,870 |
0.62% |
1,873 |
0.58% |
2,313 |
0.54% |
|
|
Total Nonperforming Commercial Loans |
11,340 |
0.25% |
10,442 |
0.23% |
26,930 |
0.60% |
|
|
Consumer loans: |
|||||||
|
Residential mortgage |
6,112 |
0.88% |
6,715 |
0.97% |
7,056 |
0.99% |
|
|
Home equity |
3,871 |
0.82% |
4,109 |
0.87% |
2,642 |
0.54% |
|
|
Installment and other consumer |
49 |
0.07% |
69 |
0.10% |
41 |
0.06% |
|
|
Total Nonperforming Consumer Loans |
10,032 |
0.81% |
10,893 |
0.88% |
9,739 |
0.76% |
|
|
Total Nonperforming Loans |
$21,372 |
0.37% |
$21,335 |
0.37% |
$36,669 |
0.63% |
|
|
2018 |
2018 |
2017 |
|||||
|
Second |
First |
Second |
|||||
|
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||
|
Loan Charge-offs |
|||||||
|
Charge-offs |
$8,632 |
$1,444 |
$5,822 |
||||
|
Recoveries |
(758) |
(1,628) |
(488) |
||||
|
Net Loan Charge-offs |
$7,874 |
($184) |
$5,334 |
||||
|
Net Loan Charge-offs |
|||||||
|
Commercial loans: |
|||||||
|
Commercial real estate |
$52 |
($48) |
$1,518 |
||||
|
Commercial and industrial |
7,030 |
712 |
2,613 |
||||
|
Commercial construction |
320 |
(1,129) |
(113) |
||||
|
Total Commercial Loan Charge-offs |
7,402 |
(465) |
4,018 |
||||
|
Consumer loans: |
|||||||
|
Residential mortgage |
96 |
53 |
695 |
||||
|
Home equity |
129 |
(123) |
354 |
||||
|
Installment and other consumer |
289 |
359 |
295 |
||||
|
Consumer construction |
(42) |
(8) |
(28) |
||||
|
Total Consumer Loan Charge-offs |
472 |
281 |
1,316 |
||||
|
Total Net Loan Charge-offs |
$7,874 |
($184) |
$5,334 |
||||
|
Six Months Ended June 30, |
|||||||
|
(dollars in thousands) |
2018 |
2017 |
|||||
|
Loan Charge-offs |
|||||||
|
Charge-offs |
$10,076 |
$8,763 |
|||||
|
Recoveries |
(2,386) |
(1,287) |
|||||
|
Net Loan Charge-offs |
$7,690 |
$7,476 |
|||||
|
Net Loan Charge-offs |
|||||||
|
Commercial loans: |
|||||||
|
Commercial real estate |
$4 |
$1,830 |
|||||
|
Commercial and industrial |
7,741 |
3,141 |
|||||
|
Commercial construction |
(809) |
275 |
|||||
|
Total Commercial Loan Charge-offs |
6,936 |
5,246 |
|||||
|
Consumer loans: |
|||||||
|
Residential mortgage |
149 |
1,176 |
|||||
|
Home equity |
6 |
536 |
|||||
|
Installment and other consumer |
648 |
553 |
|||||
|
Consumer construction |
(49) |
(35) |
|||||
|
Total Consumer Loan Charge-offs |
754 |
2,230 |
|||||
|
Total Net Loan Charge-offs |
$7,690 |
$7,476 |
|||||
|
S&T Bancorp, Inc. |
||||||
|
2018 |
2018 |
2017 |
||||
|
Second |
First |
Second |
||||
|
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
|||
|
Asset Quality Data |
||||||
|
Nonperforming loans |
$21,372 |
$21,335 |
$36,669 |
|||
|
OREO |
2,999 |
2,920 |
1,620 |
|||
|
Nonperforming assets |
24,371 |
24,255 |
38,289 |
|||
|
Troubled debt restructurings (nonaccruing) |
7,395 |
8,560 |
10,105 |
|||
|
Troubled debt restructurings (accruing) |
24,454 |
20,035 |
15,080 |
|||
|
Total troubled debt restructurings |
31,849 |
28,595 |
25,185 |
|||
|
Nonperforming loans / loans |
0.37% |
0.37% |
0.63% |
|||
|
Nonperforming assets / loans plus OREO |
0.42% |
0.42% |
0.66% |
|||
|
Allowance for loan losses / total portfolio loans |
1.05% |
1.03% |
0.96% |
|||
|
Allowance for loan losses / nonperforming loans |
283% |
277% |
151% |
|||
|
Net loan charge-offs (recoveries) |
$7,874 |
$(184) |
$5,334 |
|||
|
Net loan charge-offs (recoveries)(annualized) / average loans |
0.55% |
(0.01)% |
0.37% |
|||
|
Six Months Ended June 30, |
||||||
|
(dollars in thousands) |
2018 |
2017 |
||||
|
Asset Quality Data |
||||||
|
Net loan charge-offs (recoveries) |
$7,690 |
$7,476 |
||||
|
Net loan charge-offs (recoveries)(annualized) / average loans |
0.27% |
0.26% |
||||
|
S&T Bancorp, Inc. |
||||||||
|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: |
||||||||
|
2018 |
2018 |
2017 |
||||||
|
Second |
First |
Second |
||||||
|
Quarter |
Quarter |
Quarter |
||||||
|
(1) Tangible Book Value (non-GAAP) |
||||||||
|
Total shareholders' equity |
$907,133 |
$895,407 |
$871,062 |
|||||
|
Less: goodwill and other intangible assets |
(290,355) |
(290,572) |
(295,861) |
|||||
|
Tax effect of other intangible assets |
611 |
656 |
1,467 |
|||||
|
Tangible common equity (non-GAAP) |
$617,389 |
$605,491 |
$576,668 |
|||||
|
Common shares outstanding |
35,010 |
35,001 |
34,980 |
|||||
|
Tangible book value (non-GAAP) |
$17.63 |
$17.30 |
$16.49 |
|||||
|
(2) Return on Average Tangible Shareholders' Equity (non-GAAP) |
||||||||
|
Net income (annualized) |
$85,980 |
$106,105 |
$91,309 |
|||||
|
Plus: amortization of intangibles (annualized) |
869 |
1,037 |
1,449 |
|||||
|
Tax effect of amortization of intangibles (annualized) |
(183) |
(218) |
(507) |
|||||
|
Net income before amortization of intangibles (annualized) |
$86,666 |
$106,924 |
$92,251 |
|||||
|
Average total shareholders' equity |
$902,861 |
$889,808 |
$865,663 |
|||||
|
Less: average goodwill and other intangible assets |
(290,464) |
(290,754) |
(296,074) |
|||||
|
Tax effect of average goodwill and other intangible assets |
634 |
685 |
1,541 |
|||||
|
Average tangible equity (non-GAAP) |
$613,031 |
$599,739 |
$571,130 |
|||||
|
Return on average tangible equity (non-GAAP) |
14.14% |
17.83% |
16.15% |
|||||
|
(3) Efficiency Ratio (non-GAAP) |
||||||||
|
Noninterest expense |
$35,863 |
$36,082 |
$36,597 |
|||||
|
Net interest income per consolidated statements of net income |
$58,403 |
$56,932 |
$56,570 |
|||||
|
Less: net (gains) losses on sale of securities |
? |
? |
(3,617) |
|||||
|
Plus: taxable equivalent adjustment |
938 |
940 |
1,877 |
|||||
|
Net interest income (FTE) (non-GAAP) |
59,341 |
57,872 |
54,830 |
|||||
|
Noninterest income |
12,251 |
13,792 |
16,265 |
|||||
|
Net interest income (FTE) (non-GAAP) plus noninterest income |
$71,592 |
$71,664 |
$71,095 |
|||||
|
Efficiency ratio (non-GAAP) |
50.09% |
50.35% |
51.48% |
|||||
|
(4) Tangible Common Equity / Tangible Assets (non-GAAP) |
||||||||
|
Total shareholders' equity |
$907,133 |
$895,407 |
$871,062 |
|||||
|
Less: goodwill and other intangible assets |
(290,355) |
(290,572) |
(295,861) |
|||||
|
Tax effect of goodwill and other intangible assets |
611 |
656 |
1,467 |
|||||
|
Tangible common equity (non-GAAP) |
$617,389 |
$605,491 |
$576,668 |
|||||
|
Total assets |
$7,097,346 |
$7,005,329 |
$7,086,166 |
|||||
|
Less: goodwill and other intangible assets |
(290,355) |
(290,572) |
(295,861) |
|||||
|
Tax effect of goodwill and other intangible assets |
611 |
656 |
1,467 |
|||||
|
Tangible assets (non-GAAP) |
$6,807,602 |
$6,715,413 |
$6,791,772 |
|||||
|
Tangible common equity to tangible assets (non-GAAP) |
9.07% |
9.02% |
8.49% |
|||||
|
(5) Net Interest Margin Rate (FTE) (non-GAAP) |
||||||||
|
Interest income |
$71,581 |
$68,029 |
$64,914 |
|||||
|
Less: interest expense |
(13,178) |
(11,097) |
(8,344) |
|||||
|
Net interest income per consolidated statements of net income |
58,403 |
56,932 |
56,570 |
|||||
|
Plus: taxable equivalent adjustment |
938 |
940 |
1,877 |
|||||
|
Net interest income (FTE) (non-GAAP) |
59,341 |
57,872 |
58,447 |
|||||
|
Net interest income (FTE) (annualized) |
238,016 |
234,703 |
234,430 |
|||||
|
Average earning assets |
$6,543,799 |
$6,519,819 |
$6,568,038 |
|||||
|
Net interest margin - (FTE) (non-GAAP) |
3.64% |
3.59% |
3.57% |
|||||
|
S&T Bancorp, Inc. |
||||||||
|
Six months ended June 30, |
||||||||
|
2018 |
2017 |
|||||||
|
(6) Return on Average Tangible Shareholders' Equity (non-GAAP) |
||||||||
|
Net income (annualized) |
$95,987 |
$82,584 |
||||||
|
Plus: amortization of intangibles (annualized) |
952 |
1,451 |
||||||
|
Tax effect of amortization of intangibles (annualized) |
(200) |
(508) |
||||||
|
Net income before amortization of intangibles (annualized) |
$96,739 |
$83,527 |
||||||
|
Average total shareholders' equity |
$896,371 |
$857,934 |
||||||
|
Less: average goodwill and other intangible assets |
(290,609) |
(296,244) |
||||||
|
Tax effect of average goodwill and other intangible assets |
659 |
1,601 |
||||||
|
Average tangible equity (non-GAAP) |
$606,421 |
$563,291 |
||||||
|
Return on average tangible equity (non-GAAP) |
15.95% |
14.83% |
||||||
|
(7) Efficiency Ratio (non-GAAP) |
||||||||
|
Noninterest expense |
$71,945 |
$73,406 |
||||||
|
Net interest income per consolidated statements of net income |
$115,334 |
$110,449 |
||||||
|
Less: net (gains) losses on sale of securities |
? |
(3,987) |
||||||
|
Plus: taxable equivalent adjustment |
1,878 |
3,747 |
||||||
|
Net interest income (FTE) (non-GAAP) |
117,212 |
110,209 |
||||||
|
Noninterest income |
26,044 |
29,261 |
||||||
|
Net interest income (FTE) (non-GAAP) plus noninterest income |
$143,256 |
$139,470 |
||||||
|
Efficiency ratio (non-GAAP) |
50.22% |
52.63% |
||||||
|
(8) Net Interest Margin Rate (FTE) (non-GAAP) |
||||||||
|
Interest income |
$139,610 |
$126,065 |
||||||
|
Less: interest expense |
(24,276) |
(15,616) |
||||||
|
Net interest income per consolidated statements of net income |
115,334 |
110,449 |
||||||
|
Plus: taxable equivalent adjustment |
1,878 |
3,747 |
||||||
|
Net interest income (FTE) (non-GAAP) |
117,212 |
114,196 |
||||||
|
Net interest income (FTE) (annualized) |
236,367 |
230,285 |
||||||
|
Average earning assets |
$6,531,875 |
$6,507,230 |
||||||
|
Net interest margin - (FTE) (non-GAAP) |
3.61% |
3.53% |
||||||
SOURCE S&T Bancorp, Inc.
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