S&T BANCORP, INC. INDIANA, Pa., Oct. 19, 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 third quarter 2017 earnings. Third quarter net income was $22.7 million, or $0.65 diluted earnings per share (EPS), compared to second quarter of 2017 net income of $22.8 million, or $0.65 diluted EPS, and third quarter of 2016 net income of $20.6 million, or $0.59 diluted EPS.
Third Quarter of 2017 Highlights:
-- EPS increased 12% compared to the second quarter of 2017, excluding
securities gains of $3.6 million in the second quarter of 2017
(non-GAAP), and improved by 10% from the third quarter of 2016.
-- Annualized performance metrics for the third quarter of 2017 were
strong, with return on average assets of 1.27%, return on average equity
of 10.23% and return on tangible equity of 15.47% (non-GAAP).
-- Net interest margin (FTE) (non-GAAP) improved 2 basis points to 3.59%
and net interest income increased $0.9 million to $57.5 million compared
to the second quarter of 2017.
-- Asset quality metrics improved with a decrease in nonperforming loans of
$7.2 million, or 20%, compared to the second quarter of 2017.
-- Expenses continue to be well controlled with an efficiency ratio of
50.16% (non-GAAP).
-- S&T's Board of Directors approved a 10%, or $0.02 per share, increase in
the quarterly cash dividend to $0.22 per share.
"We are very pleased with our solid performance in the third quarter," said Todd Brice, president and chief executive officer of S&T. "Continued revenue growth, well managed expenses and improvement in our asset quality metrics drove strong EPS growth over the prior and year ago quarters."
Net Interest Income
Net interest income increased $0.9 million, or 1.6%, to $57.5 million for the third quarter of 2017 compared to $56.6 million in the second quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 2 basis points to 3.59% compared to 3.57% in the second quarter of 2017. The increases in net interest income and net interest margin (FTE) (non-GAAP) were primarily driven by higher short-term rates and one additional day in the third quarter compared to the second quarter of 2017.
Asset Quality
Asset quality trends were favorable during the third quarter across all key metrics. Nonperforming loans decreased $7.2 million, or 20%, compared to the second quarter of 2017. Net loan charge-offs decreased to $1.5 million, or 0.10% of average loans on an annualized basis in the third quarter of 2017, compared to $5.3 million , or 0.37% of average loans on an annualized basis, in the second quarter of 2017. As a result of improving asset quality, the provision for loan loss decreased to $2.9 million compared to $4.9 million in the second quarter of 2017. The allowance for loan losses to total loans was 0.97% at September 30, 2017 compared to 0.96% at June 30, 2017.
Noninterest Income and Expense
Noninterest income decreased $2.7 million to $13.6 million for the third quarter of 2017 compared to $16.3 million for the second quarter of 2017. The decrease primarily related to securities gains of $3.6 million in the second quarter of 2017. Bank owned life insurance income increased $0.7 million compared to the second quarter of 2017 due to a claim during the third quarter. Expenses remain well controlled at $36.6 million which is consistent with the second quarter of 2017. The efficiency ratio (non-GAAP) improved to 50.16% compared to 51.48% in the second quarter and 51.65% in the third quarter of 2016 due to expense control and higher revenue.
Financial Condition
Total assets increased $0.1 billion to $7.2 billion as of September 30, 2017 compared to $7.1 billion as of June 30, 2017. At September 30, 2017, $43.3 million of loans and $39.0 million of deposits were held for sale due to a branch sale that is expected to close in the fourth quarter of 2017. Portfolio loans increased $62.9 million compared to June 30, 2017. Commercial loans increased $68.7 million, which was primarily due to growth in commercial and industrial of $45.5 million, or 12.9% on an annualized basis. Total deposits increased $33.4 million with the most significant growth in money market accounts. All capital ratios increased this quarter due to strong retained earnings. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T declared a 10% increase in the quarterly cash dividend at its regular meeting held October 16, 2017. The dividend increased to $0.22 per share compared to $0.20 per share declared in the same period in the prior year. The dividend is payable November 16, 2017 to shareholders of record on November 2, 2017.
Conference Call
S&T will host its third quarter 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 19, 2017. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "3rd 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 October 26, 2017, by dialing 1.877.481.4010; the Conference ID # is 20495.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $7.2 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
---- ---- ----
Third Second Third
(dollars in thousands, except per share data) Quarter Quarter Quarter
------- ------- -------
INTEREST INCOME
Loans, including fees $62,450 $60,558 $53,956
Investment securities:
Taxable 2,988 2,947 2,570
Tax-exempt 896 928 907
Dividends 389 481 375
---
Total Interest Income 66,723 64,914 57,808
------ ------ ------
INTEREST EXPENSE
Deposits 6,748 5,976 5,119
Borrowings and junior subordinated debt securities 2,519 2,368 1,234
Total Interest Expense 9,267 8,344 6,353
----- ----- -----
NET INTEREST INCOME 57,456 56,570 51,455
Provision for loan losses 2,850 4,869 2,516
Net Interest Income After Provision for Loan Losses 54,606 51,701 48,939
------ ------ ------
NONINTEREST INCOME
Securities gains (losses), net - 3,617 -
Service charges on deposit accounts 3,207 2,997 3,208
Debit and credit card fees 3,067 3,042 3,163
Wealth management fees 2,406 2,428 2,565
Insurance fees 1,333 1,461 1,208
Bank owned life insurance 1,209 547 532
Mortgage banking 872 675 1,077
Other 1,457 1,498 1,695
Total Noninterest Income 13,551 16,265 13,448
------ ------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 20,325 19,903 19,011
Net occupancy 2,692 2,751 2,776
Data processing 2,284 2,135 2,128
Furniture and equipment 1,890 1,810 1,932
Other taxes 1,208 1,083 1,080
FDIC insurance 1,152 1,185 1,005
Professional services and legal 870 958 817
Marketing 766 948 896
Other 5,366 5,824 4,794
Total Noninterest Expense 36,553 36,597 34,439
------ ------ ------
Income Before Taxes 31,604 31,369 27,948
Provision for income taxes 8,883 8,604 7,367
----- ----- -----
Net Income $22,721 $22,765 $20,581
======= ======= =======
Per Share Data
--------------
Shares outstanding at end of period 34,979,192 34,980,280 34,913,023
Average shares outstanding - diluted 34,960,139 34,906,496 34,768,505
Diluted earnings per share $0.65 $0.65 $0.59
Dividends declared per share $0.20 $0.20 $0.19
Dividend yield (annualized) 2.02% 2.23% 2.62%
Dividends paid to net income 30.69% 30.60% 32.13%
Book value $25.37 $24.90 $24.02
Tangible book value (1) $16.96 $16.49 $15.57
Market value $39.58 $35.86 $28.99
Profitability Ratios (annualized)
--------------------------------
Return on average assets 1.27% 1.29% 1.23%
Return on average shareholders' equity 10.23% 10.55% 9.85%
Return on average tangible shareholders' equity (2) 15.47% 16.15% 15.46%
Efficiency ratio (FTE) (3) 50.16% 51.48% 51.65%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Nine Months Ended September 30,
(dollars in thousands, except per share data) 2017 2016
---- ----
INTEREST INCOME
Loans, including fees $179,908 $157,133
Investment securities:
Taxable 8,783 7,704
Tax-exempt 2,744 2,764
Dividends 1,352 1,077
Total Interest Income 192,787 168,678
------- -------
INTEREST EXPENSE
Deposits 18,103 14,403
Borrowings and junior subordinated debt securities 6,779 3,474
Total Interest Expense 24,882 17,877
------ ------
NET INTEREST INCOME 167,905 150,801
Provision for loan losses 12,901 12,379
Net Interest Income After Provision for Loan Losses 155,004 138,422
------- -------
NONINTEREST INCOME
Securities gains (losses), net 3,987 -
Service charges on deposit accounts 9,218 9,272
Debit and credit card fees 8,952 8,818
Wealth management fees 7,237 7,947
Insurance fees 4,258 4,187
Bank owned life insurance 2,249 1,569
Mortgage banking 2,280 2,185
Gain on sale of credit card portfolio - 2,066
Other 4,631 5,669
Total Noninterest Income 42,812 41,713
------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 60,770 57,539
Net occupancy 8,258 8,413
Data processing 6,670 6,758
Furniture and equipment 5,746 5,580
Other taxes 3,268 3,076
FDIC insurance 3,461 2,938
Professional services and legal 2,871 2,545
Marketing 2,468 2,872
Other 16,448 17,886
Total Noninterest Expense 109,960 107,607
------- -------
Income Before Taxes 87,856 72,528
Provision for income taxes 24,182 18,795
------ ------
Net Income $63,674 $53,733
======= =======
Per Share Data:
---------------
Average shares outstanding - diluted 34,930,509 34,747,177
Diluted earnings per share $1.82 $1.54
Dividends declared per share $0.60 $0.57
Dividends paid to net income 32.82% 36.89%
Profitability Ratios (annualized)
--------------------------------
Return on average assets 1.21% 1.10%
Return on average shareholders' equity 9.83% 8.78%
Return on average tangible shareholders' equity (6) 15.05% 13.95%
Efficiency ratio (FTE) (7) 51.78% 54.41%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Third Second Third
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
ASSETS
Cash and due from banks, including interest-bearing deposits $114,440 $125,863 $125,163
Securities available-for-sale, at fair value 697,954 689,388 671,128
Loans held for sale 47,936 23,120 11,694
Commercial loans:
Commercial real estate 2,681,693 2,664,642 2,427,164
Commercial and industrial 1,446,811 1,401,283 1,344,297
Commercial construction 432,887 426,754 402,124
Total Commercial Loans 4,561,391 4,492,679 4,173,585
Consumer loans:
Residential mortgage 697,367 706,143 692,574
Home equity 487,806 484,960 483,935
Installment and other consumer 69,644 70,068 62,288
Consumer construction 4,550 3,969 5,852
Total Consumer Loans 1,259,367 1,265,140 1,244,649
Total portfolio loans 5,820,758 5,757,819 5,418,234
Allowance for loan losses (56,712) (55,351) (53,793)
Total portfolio loans, net 5,764,046 5,702,468 5,364,441
Federal Home Loan Bank and other restricted stock, at cost 33,120 33,417 28,331
Goodwill 291,670 291,670 291,670
Other assets 221,013 220,240 225,778
Total Assets $7,170,179 $7,086,166 $6,718,205
========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing demand $1,348,939 $1,335,768 $1,232,469
Interest-bearing demand 646,195 636,904 657,326
Money market 1,036,726 950,619 764,125
Savings 940,989 1,010,348 1,026,234
Certificates of deposit 1,431,431 1,476,223 1,465,277
Deposits held for sale 38,960 - -
------
Total Deposits 5,443,240 5,409,862 5,145,431
Borrowings:
Securities sold under repurchase agreements 39,923 46,489 40,949
Short-term borrowings 685,000 645,000 565,000
Long-term borrowings 12,911 13,518 15,303
Junior subordinated debt securities 45,619 45,619 45,619
Total Borrowings 783,453 750,626 666,871
Other liabilities 55,910 54,616 67,196
------
Total Liabilities 6,282,603 6,215,104 5,879,498
SHAREHOLDERS' EQUITY
Total Shareholders' Equity 887,576 871,062 838,707
------- ------- -------
Total Liabilities and Shareholders' Equity $7,170,179 $7,086,166 $6,718,205
========== ========== ==========
Capitalization Ratios
---------------------
Shareholders' equity / assets 12.38% 12.29% 12.48%
Tangible common equity / tangible assets (4) 8.63% 8.49% 8.46%
Tier 1 leverage ratio 9.25% 9.01% 9.02%
Common equity tier 1 capital 10.70% 10.53% 10.01%
Risk-based capital - tier 1 11.05% 10.89% 10.37%
Risk-based capital - total 12.54% 12.37% 11.87%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Third Second Third
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Net Interest Margin (FTE) (QTD Averages)
---------------------------------------
ASSETS
Interest-bearing deposits with banks $53,794 1.25% $48,547 0.91% $37,852 0.52%
Securities available-for-sale, at fair value 690,986 2.46% 709,208 2.48% 678,910 2.39%
Loans held for sale 15,789 3.88% 5,053 2.61% 9,443 4.20%
Commercial real estate 2,678,835 4.38% 2,664,696 4.30% 2,411,533 4.12%
Commercial and industrial 1,404,047 4.45% 1,430,080 4.30% 1,344,071 4.04%
Commercial construction 425,228 4.27% 421,456 4.09% 389,019 3.64%
------- ------- -------
Total Commercial Loans 4,508,110 4.39% 4,516,232 4.28% 4,144,623 4.05%
Residential mortgage 702,702 4.10% 700,406 4.14% 681,925 4.14%
Home equity 485,501 4.37% 481,039 4.38% 480,527 3.94%
Installment and other consumer 70,118 6.57% 69,899 6.46% 60,052 6.52%
Consumer construction 4,486 4.49% 4,572 4.93% 5,946 3.86%
----- ----- -----
Total Consumer Loans 1,262,807 4.34% 1,255,916 4.36% 1,228,450 4.18%
--------- --------- ---------
Total portfolio loans 5,770,917 4.38% 5,772,148 4.30% 5,373,073 4.08%
--------- --------- ---------
Total loans 5,786,706 4.38% 5,777,201 4.30% 5,382,516 4.08%
Federal Home Loan Bank and other restricted stock 30,184 4.61% 33,082 4.60% 24,454 4.52%
----
Total Interest-earning Assets 6,561,670 4.15% 6,568,038 4.08% 6,123,732 3.87%
Noninterest-earning assets 510,681 507,425 519,011
Total Assets $7,072,351 $7,075,463 $6,642,743
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand $647,442 0.25% $649,440 0.22% $670,807 0.17%
Money market 999,892 0.87% 937,272 0.72% 732,820 0.46%
Savings 979,767 0.21% 1,019,220 0.21% 1,034,018 0.20%
Certificates of deposit 1,457,649 0.98% 1,457,107 0.93% 1,490,106 0.92%
Total interest-bearing deposits 4,084,750 0.66% 4,063,039 0.59% 3,927,751 0.52%
Securities sold under repurchase agreements 45,158 0.16% 50,082 0.06% 44,927 0.01%
Short-term borrowings 600,893 1.30% 682,584 1.09% 459,043 0.66%
Long-term borrowings 13,162 3.01% 13,765 2.96% 15,545 2.85%
Junior subordinated debt securities 45,619 3.71% 45,619 3.60% 45,619 3.15%
Total borrowings 704,832 1.42% 792,050 1.20% 565,134 0.87%
----
Total interest-bearing liabilities 4,789,582 0.77% 4,855,089 0.69% 4,492,885 0.56%
Noninterest-bearing liabilities 1,401,755 1,354,711 1,318,683
Shareholders' equity 881,014 865,663 831,175
Total Liabilities and Shareholders' Equity $7,072,351 $7,075,463 $6,642,743
========== ========== ==========
Net Interest Margin (5) 3.59% 3.57% 3.46%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Nine Months Ended September 30,
(dollars in thousands) 2017 2016
---- ----
Net Interest Margin
(FTE) (YTD Averages)
---------------------
ASSETS
Interest-bearing
deposits with banks $56,126 0.99% $41,402 0.51%
Securities available-
for-sale, at fair
value 699,150 2.46% 675,690 2.41%
Loans held for sale 7,734 3.63% 16,033 5.97%
Commercial real estate 2,623,360 4.31% 2,305,795 4.13%
Commercial and
industrial 1,415,941 4.30% 1,340,629 3.95%
Commercial construction 433,748 4.02% 392,520 3.70%
------- -------
Total Commercial Loans 4,473,049 4.28% 4,038,944 4.03%
Residential mortgage 700,996 4.10% 659,942 4.14%
Home equity 482,336 4.30% 474,293 4.07%
Installment and other
consumer 69,401 6.51% 65,217 6.33%
Consumer construction 4,807 4.33% 7,200 4.09%
----- -----
Total Consumer Loans 1,257,540 4.31% 1,206,652 4.23%
--------- ---------
Total portfolio loans 5,730,589 4.29% 5,245,596 4.08%
--------- ---------
Total loans 5,738,323 4.29% 5,261,629 4.08%
Federal Home Loan Bank
and other restricted
stock 31,977 4.63% 23,027 4.52%
Total Interest-earning
Assets 6,525,576 4.06% 6,001,748 3.87%
Noninterest-earning
assets 509,750 519,913
Total Assets $7,035,326 $6,521,661
========== ==========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Interest-bearing demand $643,423 0.21% $649,515 0.16%
Money market 958,619 0.74% 677,891 0.40%
Savings 1,013,318 0.21% 1,041,802 0.19%
Certificates of deposit 1,439,715 0.94% 1,488,732 0.90%
Total interest-bearing
deposits 4,055,075 0.60% 3,857,940 0.50%
Securities sold under
repurchase agreements 48,031 0.07% 53,858 0.01%
Short-term borrowings 651,494 1.07% 385,394 0.64%
Long-term borrowings 13,759 2.96% 62,109 1.21%
Junior subordinated debt
securities 45,619 3.59% 45,619 3.08%
Total borrowings 758,903 1.19% 546,980 0.85%
Total Interest-bearing
Liabilities 4,813,978 0.69% 4,404,920 0.54%
Noninterest-bearing
liabilities 1,355,636 1,298,847
Shareholders' equity 865,712 817,894
Total Liabilities and
Shareholders' Equity $7,035,326 $6,521,661
========== ==========
Net Interest Margin (8) 3.55% 3.47%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
---- ---- ----
Third Second Third
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Nonperforming Loans (NPL)
------------------------
Commercial loans: % NPL % NPL % NPL
----- ----- -----
Commercial real estate $6,571 0.25% $7,199 0.27% $7,551 0.31%
Commercial and industrial 7,349 0.51% 17,418 1.24% 11,890 0.88%
Commercial construction 4,068 0.94% 2,313 0.54% 6,653 1.65%
----- -----
Total Nonperforming Commercial Loans 17,988 0.39% 26,930 0.60% 26,094 0.63%
Consumer loans:
Residential mortgage 7,782 1.11% 7,056 0.99% 11,400 1.63%
Home equity 3,675 0.75% 2,642 0.54% 2,955 0.61%
Installment and other consumer 48 0.07% 41 0.06% 44 0.07%
Total Nonperforming Consumer Loans 11,505 0.91% 9,739 0.76% 14,399 1.16%
------ ----- ------
Total Nonperforming Loans $29,493 0.50% $36,669 0.63% $40,493 0.75%
======= ======= =======
2017 2017 2016
---- ---- ----
Third Second Third
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Loan Charge-offs
----------------
Charge-offs $2,660 $5,822 $1,500
Recoveries (1,171) (488) (564)
------ ---- ----
Net Loan Charge-offs $1,489 $5,334 $936
====== ====== ====
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate ($145) $1,518 ($171)
Commercial and industrial 401 2,613 245
Commercial construction 980 (113) 146
--- ---- ---
Total Commercial Loan Charge-offs 1,236 4,018 220
Consumer loans:
Residential mortgage 44 695 331
Home equity 10 354 (1)
Installment and other consumer 243 295 391
Consumer construction (44) (28) (5)
--- --- ---
Total Consumer Loan Charge-offs 253 1,316 716
--- ----- ---
Total Net Loan Charge-offs $1,489 $5,334 $936
====== ====== ====
Nine Months Ended September 30,
(dollars in thousands) 2017 2016
---- ----
Loan Charge-offs
----------------
Charge-offs $11,423 $8,623
Recoveries (2,459) (1,890)
------ ------
Net Loan Charge-offs $8,964 $6,733
====== ======
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate $1,685 $1,146
Commercial and industrial 3,542 2,655
Commercial construction 1,255 1,088
----- -----
Total Commercial Loan Charge-offs 6,482 4,889
Consumer loans:
Residential mortgage 1,220 506
Home equity 546 158
Installment and other consumer 795 1,295
Consumer construction (79) (115)
--- ----
Total Consumer Loan Charge-offs 2,482 1,844
----- -----
Total Net Loan Charge-offs $8,964 $6,733
====== ======
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2017 2017 2016
Third Second Third
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming loans $29,493 $36,669 $40,493
Assets acquired through foreclosure or repossession 1,033 1,620 512
Nonperforming assets 30,526 38,289 41,005
Troubled debt restructurings (nonperforming) 10,203 10,105 15,095
Troubled debt restructurings (performing) 15,605 15,080 12,936
Total troubled debt restructurings 25,808 25,185 28,031
Nonperforming loans / loans 0.50% 0.63% 0.75%
Nonperforming assets / loans plus OREO 0.52% 0.66% 0.76%
Allowance for loan losses / total portfolio loans 0.97% 0.96% 0.99%
Allowance for loan losses / nonperforming loans 192% 151% 133%
Net loan charge-offs (recoveries) $1,489 $5,334 $936
Net loan charge-offs (recoveries)(annualized) / average loans 0.10% 0.37% 0.07%
Nine Months Ended September 30,
(dollars in thousands) 2017 2016
---- ----
Asset Quality Data
Net loan charge-offs (recoveries) $8,964 $6,733
Net loan charge-offs (recoveries)(annualized) / average loans 0.21% 0.17%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
2017 2017 2016
Third Second Third
Quarter Quarter Quarter
------- ------- -------
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity $887,576 $871,062 $838,707
Less: goodwill and other intangible assets (295,627) (295,861) (296,953)
Tax effect of other intangible assets 1,385 1,467 1,849
----- ----- -----
Tangible common equity (non-GAAP) $593,334 $576,668 $543,603
Common shares outstanding 34,979 34,980 34,913
Tangible book value (non-GAAP) $16.96 $16.49 $15.57
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $90,144 $91,309 $81,877
Plus: amortization of intangibles (annualized) 930 1,449 1,490
Tax effect of amortization of intangibles (annualized) (326) (507) (521)
Net income before amortization of intangibles (annualized) $90,748 $92,251 $82,846
Average total shareholders' equity $881,014 $865,663 $831,175
Less: average goodwill and other intangible assets (295,775) (296,074) (297,154)
Tax effect of average goodwill and other intangible assets 1,437 1,541 1,919
----- ----- -----
Average tangible equity (non-GAAP) $586,676 $571,130 $535,940
Return on average tangible equity (non-GAAP) 15.47% 16.15% 15.46%
(3) Efficiency Ratio (non-GAAP)
Noninterest expense $36,553 $36,597 $34,439
Net interest income per consolidated statements of net income $57,456 $56,570 $51,455
Less: securities (gains) losses, net - (3,617) -
Plus: taxable equivalent adjustment 1,867 1,877 1,771
----- ----- -----
Net interest income (FTE) (non-GAAP) 59,323 54,830 53,226
Noninterest income 13,551 16,265 13,448
Net interest income (FTE) (non-GAAP) plus noninterest income $72,874 $71,095 $66,674
Efficiency ratio (non-GAAP) 50.16% 51.48% 51.65%
(4) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity $887,576 $871,062 $838,707
Less: goodwill and other intangible assets (295,627) (295,861) (296,953)
Tax effect of goodwill and other intangible assets 1,385 1,467 1,849
----- ----- -----
Tangible common equity (non-GAAP) $593,334 $576,668 $543,603
Total assets $7,170,179 $7,086,166 $6,718,205
Less: goodwill and other intangible assets (295,627) (295,861) (296,953)
Tax effect of goodwill and other intangible assets 1,385 1,467 1,849
----- ----- -----
Tangible assets (non-GAAP) $6,875,937 $6,791,772 $6,423,101
Tangible common equity to tangible assets (non-GAAP) 8.63% 8.49% 8.46%
(5) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $66,723 $64,914 $57,808
Less: interest expense (9,267) (8,344) (6,353)
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Net interest income per consolidated statements of net income 57,456 56,570 51,455
Plus: taxable equivalent adjustment 1,867 1,877 1,771
----- ----- -----
Net interest income (FTE) (non-GAAP) 59,323 58,447 53,226
Net interest income (FTE) (annualized) 235,358 234,430 211,747
Average earning assets $6,561,670 $6,568,038 $6,123,731
Net interest margin - (FTE) (non-GAAP) 3.59% 3.57% 3.46%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Nine months ended September 30,
2017 2016
---- ----
(6) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $85,131 $71,775
Plus: amortization of intangibles (annualized) 1,275 1,660
Tax effect on amortization of intangibles (annualized) (446) (581)
---- ----
Net income before amortization of intangibles (annualized) $85,960 $72,854
Average total shareholders' equity $865,712 $817,894
Less: average goodwill and other intangible assets (296,086) (297,576)
Tax effect on average goodwill and other intangible assets 1,546 2,060
----- -----
Average tangible equity (non-GAAP) $571,172 $522,378
Return on average tangible equity (non-GAAP) 15.05% 13.95%
(7) Efficiency Ratio (non-GAAP)
Noninterest expense $109,960 $107,607
Net interest income per consolidated statements of net income $167,905 $150,801
Less: securities (gains) losses, net (3,987) -
Plus: taxable equivalent adjustment 5,614 5,254
----- -----
Net interest income (FTE) (non-GAAP) 169,532 156,055
Noninterest income 42,812 41,713
Net interest income (FTE) (non-GAAP) plus noninterest income $212,344 $197,768
Efficiency ratio (non-GAAP) 51.78% 54.41%
(8) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $192,787 $168,678
Less: interest expense (24,882) (17,877)
------- -------
Net interest income per consolidated statements of net income 167,905 150,801
Plus: taxable equivalent adjustment 5,614 5,254
----- -----
Net interest income (FTE) (non-GAAP) 173,519 156,055
Net interest income (FTE) (annualized) 231,994 208,453
Average earning assets $6,525,576 $6,001,748
Net interest margin - (FTE) (non-GAAP) 3.55% 3.47%
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SOURCE S&T Bancorp, Inc.
