S&T BANCORP, INC. INDIANA, Pa., July 29, 2014 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA) has announced its second quarter 2014 earnings. Net income increased 4.9% to $14.7 million with diluted earnings per share of $0.49 compared to the first quarter of 2014 net income of $14.0 million and diluted earnings per share of $0.47. Net income increased 4.4% compared to the second quarter of 2013 net income of $14.1 million and diluted earnings per share of $0.47.
Second Quarter Highlights:
-- Return on average assets and return on average equity both improved to
1.26% and 9.99% compared to 1.23% and 9.83% in the first quarter of
2014.
-- Solid loan growth continues with an increase of $97.2 million in total
portfolio loans compared to March 31, 2014, representing an 11%
annualized growth rate.
-- Net interest margin (FTE) expanded five basis points to 3.56% and net
interest income increased $1.3 million compared to the first quarter of
2014.
-- Total nonperforming loans decreased $6.1 million, or 29%, to only $14.9
million at June 30, 2014 compared to $21.0 million at March 31, 2014.
-- S&T declared a $0.17 per share dividend compared to $0.15 in the same
period a year ago.
"We are pleased to report another quarter of strong earnings driven by double-digit annualized loan growth, margin expansion and favorable asset quality trends," said Todd Brice, president and chief executive officer of S&T. "Our market expansion continued during the quarter with the grand opening of our State College office. We are excited to be entering this new market and look forward to capitalizing on the growth opportunities in this region."
Net Interest Income
Net interest income increased $1.3 million, or 3.6%, compared to $35.6 million in the first quarter of 2014. The higher net interest income is due to an increase in average loans of $73.6 million and an improvement in the mix of earning assets. Compared to the same period last year, loan growth has driven net interest income higher by 6.5%. Net interest margin (FTE) expanded to 3.56% in the second quarter of 2014 compared to 3.51% in both the first quarter of 2014 and the second quarter of 2013.
Asset Quality
Asset quality trends continue to be favorable with improvement in all metrics. Nonperforming assets to total loans plus OREO decreased to 0.41% compared to 0.59% at March 31, 2014. During the second quarter of 2014, there were net recoveries of $1.1 million compared to net recoveries of $0.1 million in the first quarter of 2014. As a result of net recoveries and improved asset quality, the provision for loan losses was ($1.1) million compared to $0.3 million in the first quarter of 2014. The allowance for loan losses was unchanged at $46.6 million, representing 1.25% of total loans at June 30, 2014 and 1.28% of total loans at March 31, 2014.
Noninterest Income and Expense
Noninterest income increased $0.4 million to $11.8 million compared to $11.4 million in the first quarter of 2014 primarily due to higher debit and credit card fees and other income offset by a decrease in insurance fees. Debit and credit card fees increased $0.2 million due to higher activity compared to the first quarter of 2014. Other income increased $0.3 million due to higher letter of credit fees and interest rate swap fees from our commercial loan customers. Insurance fees decreased $0.3 million primarily due to $0.4 million of annual profit sharing that we received from our insurance carriers in the first quarter of 2014.
Noninterest expense increased $1.3 million to $30.2 million compared to $28.9 million in the first quarter of 2014. Various expense categories increased, including marketing and professional services and legal due to the timing of services performed and increased activity in the second quarter compared to the first quarter of 2014. Salaries and employee benefits increased $0.4 million primarily due to higher incentives related to strong performance and higher medical costs.
Financial Condition
Total assets increased $81.0 million to $4.8 billion at June 30, 2014 compared to $4.7 billion at March 31, 2014. Loan growth was strong representing our eighth consecutive quarter of growth with an increase of $97.2 million, or 11% annualized, in total portfolio loans. Commercial loans grew $86.6 million, or 13% annualized, during the quarter, with growth in all commercial loan categories. Total deposits remained relatively unchanged at $3.9 billion at both June 30, 2014 and March 31, 2014. S&T's risk-based capital ratios are down due to strong loan growth outpacing retained earnings growth. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T approved a $0.17 per share cash dividend at its regular meeting held July 28, 2014. The dividend is payable August 28, 2014 to shareholders of record on August 14, 2014. This dividend compares to a common stock dividend of $0.17 per share in the prior quarter and $0.15 per share declared in the same period a year ago.
Conference Call
S&T will host its second quarter 2014 earnings conference call live over the Internet at 1:00 p.m. Eastern Time on Tuesday, July 29, 2014. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd Quarter 2014 Conference Call" and follow the instructions.
About S&T Bancorp, Inc.
Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Centre, Clarion, Clearfield, Indiana, Jefferson, Washington and Westmoreland counties, as well as loan production offices in northeast and central Ohio. With assets of $4.8 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market under the symbol STBA. For more information, visit http://www.stbancorp.com.
This information may contain forward-looking statements regarding future financial performance which are not historical facts and which involve risks and uncertainties. Actual results and performance could differ materially from those anticipated by these forward-looking statements. Factors that could cause such a difference include, but are not limited to, general economic conditions, change in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values and competition. In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes 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 others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors' understanding of S&T's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. A reconciliation of these non-GAAP financial measures is presented in the attached selected financial data spreadsheet. This information should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K for S&T Bancorp, Inc. and subsidiaries.
S&T Bancorp,
Inc.
Consolidated
Selected
Financial
Data
Unaudited
2014 2014 2013
----
Second First Second
(dollars in
thousands,
except per
share data) Quarter Quarter Quarter
------- ------- -------
INTEREST
INCOME
Loans,
including
fees $36,614 $35,649 $35,765
Investment
Securities:
Taxable 2,184 1,983 1,879
Tax-exempt 979 929 815
Dividends 95 104 94
Total
Interest
Income 39,872 38,665 38,553
------ ------ ------
INTEREST
EXPENSE
Deposits 2,476 2,510 2,951
Borrowings
and junior
subordinated
debt
securities 541 564 1,006
Total
Interest
Expense 3,017 3,074 3,957
----- ----- -----
NET INTEREST
INCOME 36,855 35,591 34,596
Provision for
loan losses (1,134) 289 1,023
Net Interest
Income After
Provision
for Loan
Losses 37,989 35,302 33,573
------ ------ ------
NONINTEREST
INCOME
Securities
gains, net 40 1 -
Wealth
management
fees 2,837 2,955 2,820
Debit and
credit card
fees 2,724 2,502 3,150
Service
charges on
deposit
accounts 2,574 2,509 2,495
Insurance
fees 1,425 1,677 1,643
Mortgage
banking 264 132 911
Other 1,907 1,640 1,848
Total
Noninterest
Income 11,771 11,416 12,867
------ ------ ------
NONINTEREST
EXPENSE
Salaries and
employee
benefits 15,772 15,376 14,725
Data
processing 2,219 2,095 2,137
Net occupancy 1,984 2,230 1,958
Furniture and
equipment 1,277 1,271 1,230
Marketing 960 618 793
Other taxes 893 631 915
Professional
services and
legal 875 663 1,171
FDIC
insurance 579 631 707
Other 5,606 5,399 4,750
Total
Noninterest
Expense 30,165 28,914 28,386
------ ------ ------
Income Before
Taxes 19,595 17,804 18,054
Provision for
income taxes 4,875 3,771 3,951
----- ----- -----
Net Income $14,720 $14,033 $14,103
======= ======= =======
Per Share
Data:
Shares
outstanding
at end of
period 29,797,204 29,718,126 29,738,305
Average
shares
outstanding
-diluted 29,701,195 29,698,047 29,677,876
Average
shares
outstanding
- two-
class method 29,743,273 29,735,031 29,729,012
Diluted
earnings per
share(1) $0.49 $0.47 $0.47
Dividends
declared per
share $0.17 $0.16 $0.15
Dividend
yield
(annualized) 2.74% 2.70% 3.06%
Dividends
paid to net
income 34.32% 33.91% 31.61%
Book value $20.04 $19.64 $18.39
Tangible book
value(3) $14.07 $13.65 $12.38
Market value $24.85 $23.70 $19.60
Profitability
Ratios
(Annualized)
-------------
Return on
average
assets 1.26% 1.23% 1.26%
Return on
average
tangible
assets(4) 1.33% 1.30% 1.34%
Return on
average
shareholders'
equity 9.99% 9.83% 10.36%
Return on
average
tangible
shareholders'
equity(5) 14.48% 14.41% 15.69%
Efficiency
ratio
(FTE)(2) 60.36% 59.83% 58.37%
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
For the Six Months Ended June
30,
------------------------------
(in thousands, except per
share data) 2014 2013
---- ----
INTEREST INCOME
Loans, including fees $72,263 $70,810
Investment securities:
Taxable 4,167 3,742
Tax-exempt 1,908 1,648
Dividends 199 196
Total Interest Income 78,537 76,396
------ ------
INTEREST EXPENSE
Deposits 4,986 6,153
Borrowings and junior
subordinated debt
securities 1,105 1,978
Total Interest Expense 6,091 8,131
----- -----
NET INTEREST INCOME 72,446 68,265
Provision for loan losses (845) 3,330
Net interest income after
provision for loan losses 73,291 64,935
------ ------
NONINTEREST INCOME
Securities gains, net 41 2
Wealth management fees 5,792 5,396
Debit and credit card fees 5,226 5,601
Service charges on deposit
accounts 5,083 4,943
Insurance fees 3,102 3,418
Mortgage banking 396 1,393
Gain on sale of merchant
card servicing business - 3,093
Other 3,547 3,827
Total Noninterest Income 23,187 27,673
------ ------
NONINTEREST EXPENSE
Salaries and employee
benefits 31,148 30,792
Data processing 4,314 4,801
Net occupancy 4,214 4,127
Furniture and equipment 2,548 2,538
Marketing 1,578 1,482
Other Taxes 1,524 1,914
Professional services and
legal 1,538 2,145
FDIC assessment 1,210 1,483
Other 11,005 10,720
Total Noninterest Expense 59,079 60,002
------ ------
Income Before Taxes 37,399 32,606
Provision for income taxes 8,646 6,173
----- -----
Net Income $28,753 $26,433
======= =======
Per Share Data:
Average shares outstanding
-diluted 29,700,170 29,679,144
Average shares outstanding
- two-class method 29,739,174 29,729,355
Diluted earnings per
share(1) $0.97 $0.89
Dividends declared per
share $0.33 $0.30
Dividends paid to net
income 34.12% 33.74%
Profitability Ratios
(Annualized)
--------------------
Return on average assets 1.25% 1.19%
Return on average tangible
assets(8) 1.31% 1.27%
Return on average
shareholders' equity 9.91% 9.81%
Return on average tangible
shareholders' equity(9) 14.45% 14.93%
Efficiency ratio (FTE)(2) 60.10% 61.05%
S&T Bancorp,
Inc.
Consolidated
Selected
Financial
Data
Unaudited
2014 2014 2013
----
Second First Second
(dollars in
thousands) Quarter Quarter Quarter
------- ------- -------
ASSETS
Cash and due
from banks,
including
interest-
bearing
deposits $130,235 $185,303 $247,432
Securities
available-
for-sale,
at fair
value 588,488 551,896 479,821
Loans held
for sale 3,102 1,133 3,185
Commercial
loans:
Commercial
real estate 1,636,383 1,607,958 1,501,491
Commercial
and
industrial 922,191 884,870 826,696
Commercial
construction 188,311 167,432 167,225
Total
Commercial
Loans 2,746,885 2,660,260 2,495,412
Consumer
loans:
Residential
mortgage 492,589 490,120 463,446
Home equity 416,226 410,695 413,585
Installment
and other
consumer 65,838 64,561 67,983
Consumer
construction 3,541 2,260 2,807
Total
Consumer
Loans 978,194 967,636 947,821
Total
portfolio
loans 3,725,079 3,627,896 3,443,233
Allowance
for loan
losses (46,580) (46,616) (46,105)
Total
portfolio
loans, net 3,678,499 3,581,280 3,397,128
Goodwill 175,820 175,820 175,820
Other assets 211,886 211,555 225,373
Total Assets $4,788,030 $4,706,987 $4,528,759
========== ========== ==========
LIABILITIES
Deposits:
Noninterest-
bearing
demand $1,089,999 $1,032,372 $947,747
Interest-
bearing
demand 307,897 312,477 297,028
Money market 301,719 360,414 329,065
Savings 1,024,050 1,034,388 1,003,705
Certificates
of deposit 1,141,581 1,128,630 1,071,083
Total
Deposits 3,865,246 3,868,281 3,648,628
Securities
sold under
repurchase
agreements 25,269 38,434 74,151
Short-term
borrowings 185,000 100,000 125,000
Long-term
borrowings 20,636 21,226 22,965
Junior
subordinated
debt
securities 45,619 45,619 45,619
Other
liabilities 49,073 49,776 65,544
Total
Liabilities 4,190,843 4,123,336 3,981,907
SHAREHOLDERS'
EQUITY
Total
Shareholders'
Equity 597,187 583,651 546,852
------- ------- -------
Total
Liabilities
and
Shareholders'
Equity $4,788,030 $4,706,987 $4,528,759
========== ========== ==========
Capitalization
Ratios
--------------
Shareholders'
equity /
assets 12.47% 12.40% 12.08%
Tangible
common
equity /
tangible
assets(6) 9.10% 8.96% 8.46%
Tier 1
leverage
ratio 9.91% 9.79% 9.54%
Risk-based
capital -
tier 1 12.30% 12.43% 12.28%
Risk-based
capital -
total 14.26% 14.41% 14.30%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2014 2014 2013
----
(dollars in thousands) Second First Second
Net Interest Margin (FTE) (QTD Averages) Quarter Quarter Quarter
--------------------------------------- ------- ------- -------
ASSETS
Loans $3,650,050 4.11% $3,576,484 4.13% $3,419,393 4.28%
Taxable investment securities 428,618 1.99% 395,470 1.97% 365,799 2.04%
Tax-exempt investment securities 129,687 4.65% 121,464 4.71% 106,194 4.73%
Federal Home Loan Bank and other restricted stock 12,752 3.89% 13,391 2.70% 12,420 0.31%
Interest-bearing deposits with banks 88,064 0.28% 147,890 0.23% 186,265 0.28%
Total Interest-earning Assets 4,309,171 3.84% 4,254,699 3.81% 4,090,071 3.89%
Noninterest-earning assets 372,445 377,462 400,592
Total Assets $4,681,616 $4,632,161 $4,490,663
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand $311,719 0.03% $313,420 0.02% $303,461 0.02%
Money market 327,666 0.15% 350,314 0.15% 327,733 0.14%
Savings 1,035,691 0.16% 1,014,205 0.16% 1,001,258 0.18%
Certificates of deposit 899,086 0.78% 910,716 0.81% 984,304 0.95%
CDARs and brokered deposits 230,036 0.32% 190,598 0.33% 63,564 0.25%
Securities sold under repurchase agreements 30,718 0.01% 36,596 0.01% 67,461 0.13%
Short-term borrowings 108,640 0.30% 127,778 0.31% 71,429 0.25%
Long-term borrowings 20,873 3.01% 21,466 3.06% 23,196 3.05%
Junior subordinated debt securities 45,619 2.66% 45,619 2.69% 82,817 3.70%
Total Interest-bearing Liabilities 3,010,048 0.40% 3,010,712 0.41% 2,925,223 0.54%
Noninterest-bearing demand 1,028,997 989,799 946,862
Other liabilities 51,390 52,851 72,370
Shareholders' equity 591,181 578,799 546,208
Total Liabilities and Shareholders' Equity $4,681,616 $4,632,161 $4,490,663
========== ========== ==========
Net Interest Margin (7) 3.56% 3.51% 3.51%
For the Six Months Ended June 30,
---------------------------------
Net Interest Margin (FTE) (YTD Averages) 2014 2013
--------------------------------------- ---- ----
ASSETS
Loans $3,613,470 4.12% $3,388,915 4.30%
Taxable investment securities 412,142 1.98% 359,622 2.07%
Tax-exempt investment securities 125,591 4.68% 108,310 4.68%
Federal Home Loan Bank and other restricted stock 13,070 3.28% 13,415 0.42%
Interest-bearing deposits with banks 117,812 0.25% 198,379 0.25%
Total Interest-earning Assets 4,282,085 3.82% 4,068,641 3.90%
Noninterest-earning assets 374,940 400,901
Total Assets $4,657,025 $4,469,542
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand $312,565 0.02% $306,792 0.02%
Money market 338,928 0.15% 332,961 0.14%
Savings 1,025,007 0.16% 987,616 0.19%
Certificates of deposit 904,869 0.79% 998,041 0.99%
CDARs and brokered deposits 210,426 0.33% 47,480 0.24%
Securities sold under repurchase agreements 33,641 0.01% 65,411 0.15%
Short-term borrowings 118,156 0.30% 66,298 0.24%
Long-term borrowings 21,168 3.04% 26,323 3.12%
Junior subordinated debt securities 45,619 2.68% 86,696 3.36%
Total Interest-bearing Liabilities 3,010,379 0.41% 2,917,618 0.56%
Noninterest-bearing demand 1,009,506 936,141
Other liabilities 52,116 72,450
Shareholders' equity 585,024 543,333
Total Liabilities and Shareholders' Equity $4,657,025 $4,469,542
========== ==========
Net Interest Margin (10) 3.54% 3.50%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2014 2014 2013
----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Nonperforming Loans (NPL)
------------------------
Commercial loans: % NPL % NPL % NPL
----- ----- -----
Commercial real estate $5,658 0.35% $10,265 0.64% $20,732 1.38%
Commercial and industrial 3,837 0.42% 3,181 0.36% 5,204 0.63%
Commercial construction 1,870 0.99% 1,976 1.18% 4,775 2.86%
Total Nonperforming Commercial Loans 11,365 0.41% 15,422 0.58% 30,711 1.23%
Consumer loans:
Residential mortgage 2,118 0.43% 2,948 0.60% 3,465 0.75%
Home equity 1,431 0.34% 2,630 0.64% 3,674 0.89%
Installment and other consumer 26 0.04% 22 0.03% 33 0.05%
Consumer construction - - - - - -
Total Nonperforming Consumer Loans 3,575 0.37% 5,600 0.58% 7,172 0.76%
----- ----- -----
Total Nonperforming Loans $14,940 0.40% $21,022 0.58% $37,883 1.10%
======= ======= =======
2014 2014 2013
----
Second First Second
Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming loans $14,940 $21,022 $37,883
Assets acquired through foreclosure or repossession 431 343 408
Nonperforming assets 15,371 21,365 38,291
Troubled debt restructurings (nonaccruing) 5,241 9,269 16,064
Troubled debt restructurings (accruing) 37,120 36,059 40,940
Total troubled debt restructurings 42,361 45,328 57,004
Nonperforming loans / loans 0.40% 0.58% 1.10%
Nonperforming assets / loans plus OREO 0.41% 0.59% 1.11%
Allowance for loan losses / loans 1.25% 1.28% 1.34%
Allowance for loan losses / nonperforming loans 312% 222% 122%
Net loan (recoveries) charge-offs (1,099) (72) 854
Net loan (recoveries) charge-offs (annualized) / average loans (0.12%) (0.01%) 0.10%
For the Six Months Ended June 30,
---------------------------------
2014 2013
---- ----
Asset Quality Data
------------------
Net loan (recoveries) charge-offs $(1,171) $3,708
Net loan (recoveries) charge-offs (annualized) / average loans (0.07%) 0.22%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
----------------------------------------------------------------------
(1) Diluted earnings per share under the two-class method is determined on the net income reported on the income
statement less earnings allocated to participating securities.
(2) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.
2014 2014 2013
Second First Second
Quarter Quarter Quarter
------- ------- -------
(3) Tangible Book Value (non-GAAP)
Total shareholders'
equity $597,187 $583,651 $546,852
Less: goodwill and other
intangible assets, (177,866) (178,059) (178,750)
net of deferred tax liability
---
Tangible common equity
(non-GAAP) 419,321 405,592 368,102
Common shares
outstanding 29,797 29,718 29,738
------ ------ ------
Tangible book value
(non-GAAP) $14.07 $13.65 $12.38
------ ------ ------
(4) Return on Average Tangible Assets (non-GAAP)
Net income (annualized) $59,042 $56,912 $56,567
Plus: amortization of
intangibles net of tax
(annualized) 775 833 1,076
--- --- -----
Net income before
amortization of
intangibles
(annualized) 59,817 57,745 57,643
Average total assets 4,681,616 4,632,161 4,490,663
Less: average goodwill
and other intangibles, (177,963) (178,164) (178,876)
net of deferred tax liability
---
Average tangible assets
(non-GAAP) 4,503,653 4,453,997 4,311,787
Return on average
tangible assets (non-
GAAP) 1.33% 1.30% 1.34%
---- ---- ----
(5) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $59,042 $56,912 $56,567
Plus: amortization of
intangibles net of tax
(annualized) 775 833 1,076
--- --- -----
Net income before
amortization of
intangibles
(annualized) 59,817 57,745 57,643
Average total
shareholders' equity 591,181 578,799 546,208
Less: average goodwill
and other intangibles, (177,963) (178,164) (178,876)
net of deferred tax liability
---
Average tangible equity
(non-GAAP) 413,218 400,635 367,332
Return on average
tangible equity (non-
GAAP) 14.48% 14.41% 15.69%
----- ----- -----
(6) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders'
equity $597,187 $583,651 $546,852
Less: goodwill and other
intangible assets, (177,866) (178,059) (178,750)
net of deferred tax liability
---
Tangible common equity
(non-GAAP) 419,321 405,592 368,102
Total assets 4,788,030 4,706,987 4,528,759
Less: goodwill and other
intangible assets, (177,866) (178,059) (178,750)
net of deferred tax liability
---
Tangible assets (non-
GAAP) 4,610,164 4,528,928 4,350,009
Tangible common equity
to tangible assets
(non-GAAP) 9.10% 8.96% 8.46%
---- ---- ----
(7) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $39,872 $38,665 $38,553
Less: interest expense (3,017) (3,074) (3,957)
------ ------ ------
Net interest income per
consolidated statements
of Net Income 36,855 35,591 34,596
Plus: taxable equivalent
adjustment 1,393 1,323 1,169
----- ----- -----
Net interest income
(FTE) (non-GAAP) 38,248 36,914 35,765
Net interest income
(FTE) (annualized) 153,412 149,708 143,453
Average earning assets 4,309,171 4,254,699 4,090,070
--------- --------- ---------
Net interest margin -
(FTE) (non-GAAP) 3.56% 3.51% 3.51%
---- ---- ----
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
Definitions and
Reconciliation of GAAP
to Non-GAAP Financial
Measures:
-----------------------
For the Six Months Ended June 30,
---------------------------------
2014 2013
---- ----
(8) Return on Average
Tangible Assets (non-
GAAP)
Net income (annualized) $57,983 $53,304
Plus: amortization of
intangibles net of tax
(annualized) 804 1,106
--- -----
Net income before
amortization of
intangibles
(annualized) 58,787 54,410
Average total assets 4,657,025 4,469,542
Less: average goodwill
and other intangibles, (178,063) (179,017)
net of deferred tax
liability
Average tangible assets
(non-GAAP) 4,478,962 4,290,525
Return on average
tangible assets (non-
GAAP) 1.31% 1.27%
---- ----
(9) Return on Average
Tangible Shareholders'
Equity (non-GAAP)
Net income (annualized) $57,983 $53,304
Plus: amortization of
intangibles net of tax
(annualized) 804 1,106
--- -----
Net income before
amortization of
intangibles
(annualized) 58,787 54,410
Average total
shareholders' equity 585,024 543,333
Less: average goodwill
and other intangibles, (178,063) (179,017)
net of deferred tax
liability
Average tangible equity
(non-GAAP) 406,961 364,316
Return on average
tangible equity (non-
GAAP) 14.45% 14.93%
----- -----
(10) Net Interest
Margin Rate (FTE) (non-
GAAP)
Interest income $78,537 $76,396
Less: interest expense (6,091) (8,131)
------ ------
Net interest income 72,446 68,265
Plus: taxable equivalent
adjustment 2,717 2,341
----- -----
Net interest income
(FTE) (non-GAAP) 75,163 70,606
Net interest income
(FTE) (annualized) 151,572 142,382
Average earning assets 4,282,085 4,068,642
--------- ---------
Net interest margin -
(FTE) (non-GAAP) 3.54% 3.50%
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SOURCE S&T Bancorp, Inc.
