S&T BANCORP, INC. INDIANA, Pa., July 20, 2017 /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 2017 earnings. Second quarter net income was $22.8 million, or $0.65 diluted earnings per share (EPS), compared to first quarter of 2017 net income of $18.2 million, or $0.52 diluted EPS, and second quarter of 2016 net income of $17.1 million, or $0.49 diluted EPS.
Second Quarter of 2017 Highlights:
-- Excluding securities gains of $0.07 in the second quarter and $0.01 in
the first quarter of 2017, EPS grew 14% compared to the first quarter of
2017 and 18% compared to the second quarter of 2016 (Non-GAAP).
-- Net interest margin (FTE) (Non-GAAP) improved 7 basis points to 3.57%
and net interest income increased $2.7 million, or 5.0%, to $56.6
million compared to the first quarter of 2017.
-- Return on average assets was 1.29% and return on average equity was
10.55% compared to 1.06% and 8.68% for the first quarter of 2017.
-- Expenses were well controlled during the quarter with an efficiency
ratio of 51.48% (Non-GAAP).
-- Nonperforming loans decreased $9.3 million, or 20%, compared to the
first quarter of 2017.
-- S&T declared a $0.20 per share dividend versus $0.19 in the same period
a year ago, an increase of 5.3%.
"We are extremely pleased with our second quarter results," said Todd Brice, president and chief executive officer of S&T." Net interest income growth drove solid core operating performance during the quarter. Our net interest income is 14% higher than it was in the second quarter of last year due to strong loan growth and the benefit of rising short term rates."
Net Interest Income
Net interest income increased $2.7 million, or 5.0%, to $56.6 million for the second quarter of 2017 compared to $53.9 million in the first quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (Non-GAAP) increased 7 basis points to 3.57% compared to 3.50% in the first quarter of 2017. The increases in net interest income and net interest margin (FTE) (Non-GAAP) were driven by average portfolio loan growth of $125 million, or 8.9% annualized, and the increase in short term rates. Loan yields increased 12 basis points to 4.30% compared to 4.18% in the first quarter, while the cost of total interest-bearing liabilities increased 8 basis points to 0.69% compared to 0.61%.
Asset Quality
Nonperforming loans showed notable improvement with a $9.3 million, or 20%, decline compared to the first quarter of 2017. Two impaired loan relationships were positively resolved resulting in a decrease of $2.2 million in specific reserves during the second quarter of 2017. Net loan charge-offs were $5.3 million compared to $2.1 million in the first quarter of 2017. The provision for loan loss was $4.9 million compared to $5.2 million in the first quarter of 2017. The allowance for loan losses to total loans was 0.96% at June 30, 2017 compared to 0.97% at March 31, 2017.
Noninterest Income and Expense
Noninterest income increased $3.3 million to $16.3 million for the second quarter of 2017 compared to $13.0 million for the first quarter of 2017. The increase primarily related to higher securities gains of $3.2 million with $3.6 million in the second quarter compared to $0.4 million in the first quarter. Noninterest expense was well controlled with a decrease of $0.2 million to $36.6 million compared to $36.8 million for the first quarter of 2017. The efficiency ratio (Non-GAAP) improved to 51.48% compared to 53.83% in the first quarter and 54.37% in the second quarter of 2016 due to expense control and higher net interest income.
Financial Condition
Total assets were unchanged at $7.1 billion as of June 30, 2017 and March 31, 2017. Total portfolio loans remained relatively unchanged compared to March 31, 2017. Total deposits remained stable with a slight decrease mainly due to a decline in brokered deposits. Risk-based capital ratios increased this quarter due to earnings retention and a reduction in risk weighted assets. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T declared a $0.20 per share cash dividend at its regular meeting held July 17, 2017. This is an increase of 5.3% compared to a common stock dividend of $0.19 per share declared in the same period in the prior year. The dividend is payable August 17, 2017 to shareholders of record on August 3, 2017.
Conference Call
S&T will host its second quarter 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 20, 2017. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd Quarter 2017 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 27, 2017, by dialing 1.877.481.4010; the Conference ID # is 16035.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $7.1 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com or www.stbank.com.
This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations. Forward looking statements are typically identified by words or phrases such as "will likely result," "expect", "anticipate," "estimate," "forecast," "project," "intend", " believe", "assume", "strategy", "trend", "plan", "outlook", "outcome", "continue", "remain", "potential," "opportunity", "believe", "comfortable", "current", "position", "maintain", "sustain", "seek", "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses, cyber-security concerns; rapid technological developments and changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or business conditions; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands, except per share data) Quarter Quarter Quarter
------- ------- -------
INTEREST INCOME
Loans, including fees $60,558 $56,900 $52,019
Investment securities:
Taxable 2,947 2,848 2,580
Tax-exempt 928 920 915
Dividends 481 482 336
---
Total Interest Income 64,914 61,150 55,850
------ ------ ------
INTEREST EXPENSE
Deposits 5,976 5,379 5,029
Borrowings and junior subordinated debt securities 2,368 1,893 1,113
Total Interest Expense 8,344 7,272 6,142
----- ----- -----
NET INTEREST INCOME 56,570 53,878 49,708
Provision for loan losses 4,869 5,183 4,848
Net Interest Income After Provision for Loan Losses 51,701 48,695 44,860
------ ------ ------
NONINTEREST INCOME
Securities gains (losses), net 3,617 370 -
Debit and credit card fees 3,042 2,843 2,869
Service charges on deposit accounts 2,997 3,014 3,065
Wealth management fees 2,428 2,403 2,630
Insurance fees 1,461 1,464 1,205
Mortgage banking 675 733 578
Other 2,045 2,169 2,101
Total Noninterest Income 16,265 12,996 12,448
------ ------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 19,903 20,541 17,626
Net occupancy 2,751 2,815 2,688
Data processing 2,135 2,251 2,518
Furniture and equipment 1,810 2,047 1,719
FDIC insurance 1,185 1,123 994
Other taxes 1,083 976 896
Professional services and legal 958 1,043 988
Marketing 948 754 1,075
Other 5,824 5,258 6,249
Total Noninterest Expense 36,597 36,808 34,753
------ ------ ------
Income Before Taxes 31,369 24,883 22,555
Provision for income taxes 8,604 6,695 5,496
----- ----- -----
Net Income $22,765 $18,188 $17,059
======= ======= =======
Per Share Data
--------------
Shares outstanding at end of period 34,980,280 34,980,556 34,916,358
Average shares outstanding - diluted 34,906,496 34,912,261 34,764,565
Diluted earnings per share $0.65 $0.52 $0.49
Dividends declared per share $0.20 $0.20 $0.19
Dividend yield (annualized) 2.23% 2.31% 3.11%
Dividends paid to net income 30.60% 38.27% 38.75%
Book value $24.90 $24.45 $23.63
Tangible book value (1) $16.49 $16.02 $15.17
Market value $35.86 $34.60 $24.45
Profitability Ratios (annualized)
--------------------------------
Return on average assets 1.29% 1.06% 1.05%
Return on average shareholders' equity 10.55% 8.68% 8.37%
Return on average tangible shareholders' equity (2) 16.15% 13.45% 13.30%
Efficiency ratio (FTE) (3) 51.48% 53.83% 54.37%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
For the Six Months Ended June
30,
(dollars in
thousands, except
per share data) 2017 2016
---- ----
INTEREST INCOME
Loans, including
fees $117,458 $103,177
Investment
securities:
Taxable 5,796 5,134
Tax-exempt 1,848 1,857
Dividends 963 702
Total Interest
Income 126,065 110,870
------- -------
INTEREST EXPENSE
Deposits 11,355 9,284
Borrowings and
junior
subordinated debt
securities 4,261 2,240
Total Interest
Expense 15,616 11,524
------ ------
NET INTEREST INCOME 110,449 99,346
Provision for loan
losses 10,052 9,863
Net Interest Income
After Provision
for Loan Losses 100,397 89,483
------- ------
NONINTEREST INCOME
Securities (losses)
gains, net 3,987 -
Debit and credit
card fees 5,885 5,655
Service charges on
deposit accounts 6,012 6,064
Wealth management
fees 4,831 5,382
Insurance fees 2,924 2,979
Mortgage banking 1,408 1,107
Gain on sale of
credit card
portfolio - 2,066
Other 4,214 5,012
Total Noninterest
Income 29,261 28,265
------ ------
NONINTEREST EXPENSE
Salaries and
employee benefits 40,444 38,528
Net occupancy 5,566 5,638
Data processing 4,386 4,630
Furniture and
equipment 3,857 3,648
FDIC insurance 2,308 1,934
Other taxes 2,060 1,995
Professional
services and legal 2,001 1,728
Marketing 1,702 1,976
Other 11,082 13,092
Total Noninterest
Expense 73,406 73,169
------ ------
Income Before Taxes 56,252 44,579
Provision for
income taxes 15,299 11,427
------ ------
Net Income $40,953 $33,152
======= =======
Per Share Data:
---------------
Average shares
outstanding -
diluted 34,907,377 34,747,663
Diluted earnings
per share $1.17 $0.95
Dividends declared
per share $0.40 $0.38
Dividends paid to
net income 34.01% 39.85%
Profitability
Ratios
(annualized)
-------------
Return on average
assets 1.18% 1.03%
Return on average
shareholders'
equity 9.63% 8.22%
Return on average
tangible
shareholders'
equity (6) 14.83% 13.15%
Efficiency ratio
(FTE) (7) 52.63% 55.81%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
ASSETS
Cash and due from banks, including interest-bearing deposits $125,863 $104,705 $94,991
Securities available-for-sale, at fair value 689,388 713,198 683,479
Loans held for sale 23,120 14,355 11,999
Commercial loans:
Commercial real estate 2,664,642 2,614,724 2,388,786
Commercial and industrial 1,401,283 1,422,297 1,385,746
Commercial construction 426,754 455,211 398,122
------- -------
Total Commercial Loans 4,492,679 4,492,232 4,172,654
Consumer loans:
Residential mortgage 706,143 700,610 671,665
Home equity 484,960 479,402 480,204
Installment and other consumer 70,068 70,219 58,139
Consumer construction 3,969 4,363 5,602
Total Consumer Loans 1,265,140 1,254,594 1,215,610
Total portfolio loans 5,757,819 5,746,826 5,388,264
Allowance for loan losses (55,351) (55,816) (52,213)
Total portfolio loans, net 5,702,468 5,691,010 5,336,051
Federal Home Loan Bank and other restricted stock, at cost 33,417 29,739 23,337
Goodwill 291,670 291,670 291,670
Other assets 220,240 220,421 232,678
Total Assets $7,086,166 $7,065,098 $6,674,205
========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing demand $1,335,768 $1,300,707 $1,220,568
Interest-bearing demand 636,904 631,652 662,509
Money market 950,619 985,723 700,219
Savings 1,010,348 1,032,864 1,033,077
Certificates of deposit 1,476,223 1,484,379 1,503,945
Total Deposits 5,409,862 5,435,325 5,120,318
Borrowings:
Securities sold under repurchase agreements 46,489 46,987 48,479
Short-term borrowings 645,000 610,000 550,000
Long-term borrowings 13,518 14,118 15,888
Junior subordinated debt securities 45,619 45,619 45,619
Total Borrowings 750,626 716,724 659,986
Other liabilities 54,616 57,869 68,851
------
Total Liabilities 6,215,104 6,209,918 5,849,155
SHAREHOLDERS' EQUITY
Total Shareholders' Equity 871,062 855,180 825,050
------- ------- -------
Total Liabilities and Shareholders' Equity $7,086,166 $7,065,098 $6,674,205
========== ========== ==========
Capitalization Ratios
---------------------
Shareholders' equity / assets 12.29% 12.10% 12.36%
Tangible common equity / tangible assets (4) 8.49% 8.28% 8.30%
Tier 1 leverage ratio 9.01% 8.92% 8.92%
Common equity tier 1 capital 10.53% 10.16% 9.70%
Risk-based capital - tier 1 10.89% 10.52% 10.06%
Risk-based capital - total 12.37% 12.02% 11.52%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Net Interest Margin (FTE) (QTD Averages)
---------------------------------------
ASSETS
Interest-bearing deposits with banks $48,547 0.91% $66,173 0.85% $38,233 0.47%
Securities available-for-sale, at fair value 709,208 2.48% 697,327 2.44% 681,409 2.39%
Loans held for sale 5,053 2.61% 2,211 4.44% 11,243 4.15%
Commercial real estate 2,664,696 4.30% 2,524,859 4.25% 2,309,310 4.12%
Commercial and industrial 1,430,080 4.30% 1,413,801 4.16% 1,370,427 3.89%
Commercial construction 421,456 4.09% 454,886 3.70% 391,569 3.69%
------- ------- -------
Total Commercial Loans 4,516,232 4.28% 4,393,546 4.16% 4,071,306 4.00%
Residential mortgage 700,406 4.14% 699,849 4.05% 658,298 4.13%
Home equity 481,039 4.38% 480,411 4.14% 473,452 4.10%
Installment and other consumer 69,899 6.46% 68,164 6.49% 60,278 6.46%
Consumer construction 4,572 4.93% 5,374 3.67% 7,192 4.13%
----- ----- -----
Total Consumer Loans 1,255,916 4.36% 1,253,798 4.22% 1,199,220 4.24%
--------- --------- ---------
Total portfolio loans 5,772,148 4.30% 5,647,344 4.18% 5,270,526 4.05%
--------- --------- ---------
Total loans 5,777,201 4.30% 5,649,555 4.18% 5,281,769 4.05%
Federal Home Loan Bank and other restricted stock 33,082 4.60% 32,690 4.68% 22,017 4.32%
------
Total Interest-earning Assets 6,568,038 4.08% 6,445,745 3.96% 6,023,428 3.85%
Noninterest-earning assets 507,425 511,125 520,720
-------
Total Assets $7,075,463 $6,956,870 $6,544,148
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand $649,440 0.22% $633,232 0.18% $651,009 0.17%
Money market 937,272 0.72% 938,014 0.61% 672,097 0.41%
Savings 1,019,220 0.21% 1,041,647 0.21% 1,030,357 0.19%
Certificates of deposit 1,457,107 0.93% 1,403,796 0.91% 1,550,936 0.93%
Total interest-bearing deposits 4,063,039 0.59% 4,016,689 0.54% 3,904,399 0.52%
Securities sold under repurchase agreements 50,082 0.06% 48,896 0.01% 52,443 0.01%
Short-term borrowings 682,584 1.09% 671,784 0.84% 366,942 0.64%
Long-term borrowings 13,765 2.96% 14,362 2.91% 54,588 1.30%
Junior subordinated debt securities 45,619 3.60% 45,619 3.45% 45,619 3.10%
Total borrowings 792,050 1.20% 780,661 0.98% 519,592 0.86%
-------
Total interest-bearing liabilities 4,855,089 0.69% 4,797,350 0.61% 4,423,991 0.56%
Noninterest-bearing liabilities 1,354,711 1,309,401 1,300,621
Shareholders' equity 865,663 850,119 819,536
-------
Total Liabilities and Shareholders' Equity $7,075,463 $6,956,870 $6,544,148
========== ========== ==========
Net Interest Margin (5) 3.57% 3.50% 3.44%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
For the Six Months Ended June 30,
(dollars in
thousands) 2017 2016
---- ----
Net Interest
Margin (FTE)
(YTD Averages)
---------------
ASSETS
Interest-
bearing
deposits with
banks $57,311 0.87% $43,196 0.51%
Securities
available-
for-sale, at
fair value 703,300 2.46% 674,064 2.42%
Loans held for
sale 3,639 3.16% 19,364 6.40%
Commercial real
estate 2,595,163 4.27% 2,252,345 4.14%
Commercial and
industrial 1,421,986 4.23% 1,338,890 3.91%
Commercial
construction 438,079 3.89% 394,290 3.73%
------- -------
Total
Commercial
Loans 4,455,228 4.22% 3,985,525 4.02%
Residential
mortgage 700,129 4.10% 648,830 4.14%
Home equity 480,727 4.26% 471,142 4.13%
Installment and
other consumer 69,036 6.47% 67,828 6.25%
Consumer
construction 4,971 4.25% 7,833 4.18%
----- -----
Total Consumer
Loans 1,254,863 4.29% 1,195,633 4.26%
--------- ---------
Total portfolio
loans 5,710,091 4.24% 5,181,158 4.07%
--------- ---------
Total loans 5,713,730 4.24% 5,200,522 4.08%
Federal Home
Loan Bank and
other
restricted
stock 32,888 4.64% 22,305 4.52%
Total Interest-
earning Assets 6,507,229 4.02% 5,940,087 3.87%
Noninterest-
earning assets 509,265 520,368
Total Assets $7,016,494 $6,460,455
========== ==========
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Interest-
bearing demand $641,381 0.20% $638,751 0.16%
Money market 937,641 0.67% 650,126 0.37%
Savings 1,030,371 0.21% 1,045,737 0.19%
Certificates of
deposit 1,430,599 0.92% 1,488,037 0.89%
Total interest-
bearing
deposits 4,039,992 0.57% 3,822,651 0.49%
Securities sold
under
repurchase
agreements 49,492 0.03% 58,373 0.01%
Short-term
borrowings 677,214 0.97% 348,165 0.63%
Long-term
borrowings 14,062 2.94% 85,647 1.06%
Junior
subordinated
debt
securities 45,619 3.53% 45,619 3.05%
Total
borrowings 786,387 1.09% 537,804 0.84%
Total Interest-
bearing
Liabilities 4,826,379 0.65% 4,360,455 0.53%
Noninterest-
bearing
liabilities 1,332,181 1,288,820
Shareholders'
equity 857,934 811,180
Total
Liabilities
and
Shareholders'
Equity $7,016,494 $6,460,455
========== ==========
Net Interest
Margin (8) 3.53% 3.48%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Nonperforming Loans (NPL)
------------------------
Commercial loans: % NPL % NPL % NPL
----- ----- -----
Commercial real estate $7,199 0.27% $8,617 0.33% $10,887 0.46%
Commercial and industrial 17,418 1.24% 21,879 1.54% 11,342 0.82%
Commercial construction 2,313 0.54% 3,758 0.83% 8,182 2.06%
----- ----- -----
Total Nonperforming Commercial Loans 26,930 0.60% 34,254 0.76% 30,411 0.73%
Consumer loans:
Residential mortgage 7,056 0.99% 8,218 1.17% 9,283 1.38%
Home equity 2,642 0.54% 3,484 0.73% 3,168 0.66%
Installment and other consumer 41 0.06% 36 0.05% 43 0.07%
--- --- ---
Total Nonperforming Consumer Loans 9,739 0.76% 11,738 0.93% 12,494 1.03%
----- ------ ------
Total Nonperforming Loans $36,669 0.63% $45,992 0.80% $42,905 0.79%
======= ======= =======
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Loan Charge-offs
----------------
Charge-offs $5,822 $2,942 $3,496
Recoveries (488) (800) (514)
---- ---- ----
Net Loan Charge-offs $5,334 $2,142 $2,982
====== ====== ======
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate $1,518 $312 $1,624
Commercial and industrial 2,613 528 (81)
Commercial construction (113) 388 943
---- --- ---
Total Commercial Loan Charge-offs 4,018 1,228 2,486
Consumer loans:
Residential mortgage 695 481 158
Home equity 354 183 37
Installment and other consumer 295 258 340
Consumer construction (28) (8) (39)
--- --- ---
Total Consumer Loan Charge-offs 1,316 914 496
----- --- ---
Total Net Loan Charge-offs $5,334 $2,142 $2,982
====== ====== ======
For the Six Months Ended June 30,
(dollars in thousands) 2017 2016
---- ----
Loan Charge-offs
----------------
Charge-offs $8,763 $7,123
Recoveries (1,287) (1,326)
------ ------
Net Loan Charge-offs $7,476 $5,797
====== ======
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate $1,830 $1,317
Commercial and industrial 3,141 2,410
Commercial construction 275 942
--- ---
Total Commercial Loan Charge-offs 5,246 4,669
Consumer loans:
Residential mortgage 1,176 176
Home equity 536 158
Installment and other consumer 553 904
Consumer construction (35) (110)
--- ----
Total Consumer Loan Charge-offs 2,230 1,128
----- -----
Total Net Loan Charge-offs $7,476 $5,797
====== ======
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Second First Second
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming loans $36,669 $45,992 $42,905
Assets acquired through foreclosure or repossession 1,620 873 328
Nonperforming assets 38,289 46,865 43,233
Troubled debt restructurings (nonperforming) 10,105 10,324 15,028
Troubled debt restructurings (performing) 15,080 13,086 20,598
Total troubled debt restructurings 25,185 23,410 35,626
Nonperforming loans / loans 0.63% 0.80% 0.79%
Nonperforming assets / loans plus OREO 0.66% 0.81% 0.80%
Allowance for loan losses / total portfolio loans 0.96% 0.97% 0.97%
Allowance for loan losses / nonperforming loans 151% 121% 122%
Net loan charge-offs (recoveries) $5,334 $2,142 $2,982
Net loan charge-offs (recoveries)(annualized) / average loans 0.37% 0.15% 0.23%
For the Six Months Ended June 30,
---------------------------------
(dollars in thousands) 2017 2016
---- ----
Asset Quality Data
Net loan charge-offs (recoveries) $7,476 $5,797
Net loan charge-offs (recoveries)(annualized) / average loans 0.26% 0.22%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
2017 2017 2016
Second First Second
Quarter Quarter Quarter
------- ------- -------
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity $871,062 $855,180 $825,050
Less: goodwill and other intangible assets (295,861) (296,222) (297,327)
Tax effect of other intangible assets 1,467 1,593 1,980
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Tangible common equity (non-GAAP) $576,668 $560,551 $529,703
Common shares outstanding 34,980 34,981 34,916
Tangible book value (non-GAAP) $16.49 $16.02 $15.17
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $91,309 $73,762 $68,612
Plus: amortization of intangibles (annualized) 1,449 1,453 1,648
Tax effect of amortization of intangibles (annualized) (507) (509) (577)
Net income before amortization of intangibles (annualized) $92,251 $74,706 $69,683
Average total shareholders' equity $865,663 $850,119 $819,536
Less: average goodwill and other intangible assets (296,074) (296,416) (297,542)
Tax effect of average goodwill and other intangible assets 1,541 1,661 2,055
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Average tangible equity (non-GAAP) $571,130 $555,364 $524,049
Return on average tangible equity (non-GAAP) 16.15% 13.45% 13.30%
(3) Efficiency Ratio (non-GAAP)
Noninterest expense $36,597 $36,808 $34,753
Net interest income per consolidated statements of net income $56,570 $53,878 $49,708
Less: securities (gains) losses, net (3,617) (370) -
Plus: taxable equivalent adjustment 1,877 1,871 1,762
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Net interest income (FTE) (non-GAAP) 54,830 55,379 51,470
Noninterest income 16,265 12,996 12,448
Net interest income (FTE) (non-GAAP) plus noninterest income $71,095 $68,375 $63,918
Efficiency ratio (non-GAAP) 51.48% 53.83% 54.37%
(4) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity $871,062 $855,180 $825,050
Less: goodwill and other intangible assets (295,861) (296,222) (297,327)
Tax effect of goodwill and other intangible assets 1,467 1,593 1,980
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Tangible common equity (non-GAAP) $576,668 $560,551 $529,703
Total assets $7,086,166 $7,065,098 $6,674,205
Less: goodwill and other intangible assets (295,861) (296,222) (297,327)
Tax effect of goodwill and other intangible assets 1,467 1,593 1,980
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Tangible assets (non-GAAP) $6,791,772 $6,770,469 $6,378,858
Tangible common equity to tangible assets (non-GAAP) 8.49% 8.28% 8.30%
(5) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $64,914 $61,150 $55,850
Less: interest expense (8,344) (7,272) (6,142)
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Net interest income per consolidated statements of net income 56,570 53,878 49,708
Plus: taxable equivalent adjustment 1,877 1,871 1,762
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Net interest income (FTE) (non-GAAP) 58,447 55,749 51,470
Net interest income (FTE) (annualized) 234,430 226,093 207,011
Average earning assets $6,568,038 $6,445,745 $6,023,428
Net interest margin - (FTE) (non-GAAP) 3.57% 3.50% 3.44%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
For the Six Months Ended June 30,
---------------------------------
2017 2016
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(6) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $82,584 $66,668
Plus: amortization of intangibles (annualized) 1,451 1,746
Tax effect on amortization of intangibles (annualized) (508) (611)
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Net income before amortization of intangibles (annualized) $83,527 $67,803
Average total shareholders' equity $857,934 $811,180
Less: average goodwill and other intangible assets (296,244) (297,789)
Tax effect on average goodwill and other intangible assets 1,601 2,131
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Average tangible equity (non-GAAP) $563,291 $515,522
Return on average tangible equity (non-GAAP) 14.83% 13.15%
(7) Efficiency Ratio (non-GAAP)
Noninterest expense $73,406 $73,169
Net interest income per consolidated statements of net income $110,449 $99,346
Less: securities (gains) losses, net (3,987) -
Plus: taxable equivalent adjustment 3,747 3,484
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Net interest income (FTE) (non-GAAP) 110,209 102,830
Noninterest income 29,261 28,265
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Net interest income (FTE) (non-GAAP) plus noninterest income $139,470 $131,095
Efficiency ratio (non-GAAP) 52.63% 55.81%
(8) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $126,065 $110,870
Less: interest expense (15,616) (11,524)
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Net interest income per consolidated statements of net income 110,449 99,346
Plus: taxable equivalent adjustment 3,747 3,484
Net interest income (FTE) (non-GAAP) 114,196 102,830
Net interest income (FTE) (annualized) 230,285 206,790
Average earning assets $6,507,230 $5,940,087
Net interest margin - (FTE) (non-GAAP) 3.53% 3.48%
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SOURCE S&T Bancorp, Inc.
