INDIANA, Pa., Jan. 31, 2019 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2018 earnings. Net income was $26.9 million, or $0.77 per diluted share, for the fourth quarter compared to net income of $9.3 million, or $0.27 per diluted share for the fourth quarter of 2017, and $30.9 million, or $0.88 per diluted share for the third quarter of 2018. The third quarter of 2018 results were positively impacted by a one-time reduction to tax expense of $2.9 million, or $0.08 per diluted share, related to a tax deduction for a pension contribution at a 35% corporate tax rate versus the current rate of 21%.
Net income was a record $105.3 million, or $3.01 per diluted share, for the year ended December 31, 2018 compared to net income of $73.0 million, or $2.09 per diluted share, for 2017. As a result of the December 2017 enactment of the Tax Cuts and Jobs Act, additional tax expense of $13.4 million was recognized to re-measure the net deferred tax asset (DTA) in the fourth quarter of 2017. Excluding the net DTA re-measurement, fourth quarter of 2017 net income was $22.7 million (non-GAAP) and diluted earnings per share was $0.65 (non-GAAP) and full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP).
Fourth Quarter of 2018 Highlights:
- Return on average assets (ROA) was 1.50%, return on average equity (ROE) was 11.50% and return on average tangible equity (ROTE) (non-GAAP) was 16.82%.
- Total portfolio loans increased $138.8 million, or 9.5% annualized, compared to the third quarter of 2018.
- Deposits increased $206.4 million, or 15.0% annualized, compared to the third quarter of 2018.
- Expenses continue to be well controlled with an efficiency ratio (non-GAAP) of 50.64% compared to 51.33% in the third quarter of 2018 and 51.75% for the fourth quarter of 2017.
- S&T's Board of Directors declared a $0.27 per share dividend, which is an increase of 22.7% compared to a $0.22 dividend in the same period last year.
- Record net income of $105.3 million compared to $73.0 million ($86.4 million non-GAAP) for 2017. This represents an increase in net income of 44% (22% compared to non-GAAP result).
- ROA was 1.50%, ROE was 11.60% and ROTE (non-GAAP) was 17.14%.
- Net interest income increased $8.7 million, or 3.9%, and net interest margin (FTE) (non-GAAP) increased 8 basis points to 3.64% compared to 3.56% in 2017.
- Expenses were well controlled with an improved efficiency ratio of 50.60% compared to 51.77% in 2017.
- Full year 2018 dividends declared increased 20.7% to $0.99 compared to $0.82 in 2017.
"We are pleased to announce another successful year with record net income for 2018," said Todd Brice, chief executive officer of S&T. "We have excellent momentum as we move into 2019 thanks to our great team of bankers and our robust markets."
Fourth Quarter of 2018 Results
Net Interest Income
Net interest income increased $0.6 million to $59.9 million compared to $59.3 million in the third quarter of 2018. The increase in net interest income is due to higher average loans of $112.1 million. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 2 basis points to 3.65% compared to 3.67% in the prior quarter. The decrease in the net interest margin rate is due to an increasingly competitive deposit environment combined with stronger growth in the fourth quarter.
Asset Quality
Asset quality trends were impacted by three commercial nonaccrual loans totaling $23.6 million in the fourth quarter of 2018. These nonaccrual loans resulted in loan charge-offs of $2.4 million and specific reserves of $1.5 million for the fourth quarter of 2018. Total nonperforming loans increased $25.3 million to $46.1 million, or 0.77% of total loans, at December 31, 2018 compared to $20.7 million, or 0.36% of total loans, at September 30, 2018. Net charge-offs were $2.3 million, or 0.15% of average loans on an annualized basis, in the fourth quarter of 2018 compared to net charge-offs of $0.4 million, or 0.03% of average loans on an annualized basis, in the third quarter of 2018. The provision for loan losses was $2.7 million in the fourth quarter of 2018 compared to $0.5 million in the third quarter of 2018. The allowance for loan losses was $61.0 million, or 1.03% of total portfolio loans, at December 31, 2018 compared to $60.6 million, or 1.04% of total portfolio loans, at September 30, 2018.
Noninterest Income and Expense
Noninterest income decreased $0.9 million to $11.1 million in the fourth quarter of 2018 compared to $12.0 million in the third quarter of 2018. Noninterest expense decreased $0.7 million to $36.4 million in the fourth quarter of 2018 compared to $37.1 million in the third quarter of 2018. Both noninterest income and noninterest expense were impacted by a $0.8 million mark-to-market adjustment for a deferred compensation plan due to the negative performance in the stock market in the fourth quarter. The mark-to-market adjustment of $0.8 million is recorded in other noninterest income and offset in salaries and employee benefits resulting in no impact to net income.
Additionally, other noninterest income was impacted by a negative mark-to-market adjustment of $0.5 million for equity securities offset by higher commercial loan swap fees of $0.8 million compared to the third quarter of 2018.
Expenses were well controlled for the fourth quarter with an efficiency ratio of 50.64% compared to 51.33% in the third quarter of 2018.
Financial Condition
Total assets grew $146.9 million to $7.3 billion at December 31, 2018 compared to $7.1 billion at September 30, 2018. Total portfolio loans increased $138.8 million, or 9.5% annualized, compared to September 30, 2018. Commercial loan growth was strong with an increase in commercial real estate loans of $95.5 million, or 13.4% annualized, and an increase in commercial and industrial loans of $42.0 million, or 11.5% annualized, compared to September 30, 2018. Consumer loans increased $27.9 million with growth mainly in residential mortgages of $26.8 million, or 15.2% annualized, compared to September 30, 2018. Total deposit growth was strong during the quarter with deposits increasing $206.4 million, or 15.0% annualized. Deposit growth was mainly in money market of $114.9 million, or 33.3% annualized, and certificates of deposit of $102.6 million, or 31.1% annualized.
On March 19, 2018, S&T's Board of Directors authorized a $50.0 million share repurchase plan. During the fourth quarter of 2018, there were 321,731 common shares repurchased for a cost of $12.3 million, or at an average price of $38.10 per common share. Up to an additional $37.7 million of common shares may be repurchased under this authorization through August 31, 2019.
S&T's risk-based capital ratios were relatively unchanged compared to the third quarter of 2018 due to strong loan growth and share repurchases. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
Full Year 2018 Results
Full year net income was a record $105.3 million, or $3.01 per diluted share, for the year ended December 31, 2018 compared to net income of $73.0 million, or $2.09 per diluted share, for 2017. Excluding the net DTA re-measurement of $13.4 million, full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP). Net income in 2018 was positively impacted by the Tax Cuts and Jobs Act which lowered the federal corporate tax rate from 35% to 21% effective January 1, 2018. Net interest income increased $8.7 million, or 3.9%, and net interest margin (FTE) (non-GAAP) increased 8 basis points to 3.64% compared to 3.56% for 2017 due to higher short-term rates. Noninterest income decreased $6.3 million mainly due to the sale of our insurance business on January 1, 2018. Expenses were well controlled during 2018 with an efficiency ratio (non-GAAP) of 50.60% compared to 51.77% for 2017. To view an infographic featuring 2018 highlights, click here.
Dividend
The Board of Directors of S&T declared a $0.27 per share cash dividend at its regular meeting held January 28, 2019. This is an increase of 22.7% compared to a common stock dividend of $0.22 per share declared in the same period in the prior year. The dividend is payable February 28, 2019 to shareholders of record on February 14, 2019. Dividends declared in 2018 increased $0.17, or 20.7%, to $0.99 compared to $0.82 for 2017.
Non-GAAP Financial Measures
This release presents certain non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, see "Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures" in the accompanying tables.
Conference Call
S&T will host its fourth quarter 2018 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 31, 2019. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2018 Conference Call" and follow the instructions.
About S&T Bancorp, Inc.
S&T Bancorp, Inc. is a $7.3 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, a full-service financial institution, was established in 1902 and operates in five markets including Western Pennsylvania, Central Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit www.stbancorp.com, www.stbank.com, and follow us on Facebook, Instagram, and Linkedin.
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 |
|||||||
Fourth |
Third |
Fourth |
|||||||
(dollars in thousands, except per share data) |
Quarter |
Quarter |
Quarter |
||||||
INTEREST INCOME |
|||||||||
Loans, including fees |
$71,515 |
$68,631 |
$63,407 |
||||||
Investment securities: |
|||||||||
Taxable |
3,746 |
3,649 |
3,164 |
||||||
Tax-exempt |
845 |
857 |
871 |
||||||
Dividends |
483 |
490 |
413 |
||||||
Total Interest Income |
76,589 |
73,627 |
67,855 |
||||||
INTEREST EXPENSE |
|||||||||
Deposits |
12,973 |
10,871 |
7,227 |
||||||
Borrowings and junior subordinated debt securities |
3,774 |
3,494 |
2,800 |
||||||
Total Interest Expense |
16,747 |
14,365 |
10,027 |
||||||
NET INTEREST INCOME |
59,842 |
59,262 |
57,828 |
||||||
Provision for loan losses |
2,716 |
462 |
982 |
||||||
Net Interest Income After Provision for Loan Losses |
57,126 |
58,800 |
56,846 |
||||||
NONINTEREST INCOME |
|||||||||
Net gain (loss) on sale of securities |
— |
— |
(986) |
||||||
Debit and credit card |
3,192 |
3,141 |
3,077 |
||||||
Service charges on deposit accounts |
3,071 |
3,351 |
3,240 |
||||||
Wealth management |
2,302 |
2,483 |
2,521 |
||||||
Mortgage banking |
630 |
700 |
635 |
||||||
Insurance |
101 |
101 |
1,139 |
||||||
Other |
1,799 |
2,266 |
3,024 |
||||||
Total Noninterest Income |
11,095 |
12,042 |
12,650 |
||||||
NONINTEREST EXPENSE |
|||||||||
Salaries and employee benefits |
18,913 |
19,769 |
20,006 |
||||||
Data processing and information technology |
3,024 |
2,906 |
2,131 |
||||||
Net occupancy |
2,697 |
2,722 |
2,736 |
||||||
Furniture, equipment and software |
1,988 |
2,005 |
2,200 |
||||||
Marketing |
1,276 |
1,023 |
1,191 |
||||||
Other taxes |
1,255 |
1,341 |
1,241 |
||||||
Professional services and legal |
1,011 |
1,181 |
1,224 |
||||||
FDIC insurance |
645 |
746 |
1,083 |
||||||
Other |
5,606 |
5,392 |
6,135 |
||||||
Total Noninterest Expense |
36,415 |
37,085 |
37,947 |
||||||
Income Before Taxes |
31,806 |
33,757 |
31,549 |
||||||
Provision for income taxes |
4,952 |
2,876 |
22,255 |
||||||
Net Income |
$26,854 |
$30,881 |
$9,294 |
||||||
Per Share Data: |
|||||||||
Shares outstanding at end of period |
34,683,874 |
35,006,587 |
34,971,929 |
||||||
Average shares outstanding - diluted |
34,867,171 |
35,019,292 |
35,019,866 |
||||||
Diluted earnings per share |
$0.77 |
$0.88 |
$0.27 |
||||||
Dividends declared per share |
$0.27 |
$0.25 |
$0.22 |
||||||
Dividend yield (annualized) |
2.85% |
2.31% |
2.21% |
||||||
Dividends paid to net income |
35.09% |
28.25% |
82.53% |
||||||
Book value |
$26.98 |
$26.27 |
$25.28 |
||||||
Tangible book value (1) |
$18.63 |
$18.00 |
$16.87 |
||||||
Market value |
$37.84 |
$43.36 |
$39.81 |
||||||
Profitability Ratios (annualized) |
|||||||||
Return on average assets |
1.50% |
1.75% |
0.52% |
||||||
Return on average shareholders' equity |
11.50% |
13.41% |
4.14% |
||||||
Return on average tangible shareholders' equity (2) |
16.82% |
19.73% |
6.30% |
||||||
Efficiency ratio (FTE) (3) |
50.64% |
51.33% |
51.75% |
S&T Bancorp, Inc. |
||||||||
For the Twelve Months Ended December 31, |
||||||||
(dollars in thousands, except per share data) |
2018 |
2017 |
||||||
INTEREST INCOME |
||||||||
Loans, including fees |
$269,811 |
$243,315 |
||||||
Investment securities: |
||||||||
Taxable |
14,342 |
11,947 |
||||||
Tax-exempt |
3,449 |
3,615 |
||||||
Dividends |
2,224 |
1,765 |
||||||
Total Interest Income |
289,826 |
260,642 |
||||||
INTEREST EXPENSE |
||||||||
Deposits |
40,856 |
25,330 |
||||||
Borrowings and junior subordinated debt securities |
14,532 |
9,579 |
||||||
Total Interest Expense |
55,388 |
34,909 |
||||||
NET INTEREST INCOME |
234,438 |
225,733 |
||||||
Provision for loan losses |
14,995 |
13,883 |
||||||
Net Interest Income After Provision for Loan Losses |
219,443 |
211,850 |
||||||
NONINTEREST INCOME |
||||||||
Net gain (loss) on sale of securities |
— |
3,000 |
||||||
Debit and credit card |
12,679 |
12,029 |
||||||
Service charges on deposit accounts |
13,096 |
12,458 |
||||||
Wealth management |
10,084 |
9,758 |
||||||
Mortgage banking |
2,762 |
2,915 |
||||||
Insurance |
505 |
5,371 |
||||||
Gain on sale of a majority interest of insurance business |
1,873 |
— |
||||||
Other |
8,182 |
9,931 |
||||||
Total Noninterest Income |
49,181 |
55,462 |
||||||
NONINTEREST EXPENSE |
||||||||
Salaries and employee benefits |
76,108 |
80,776 |
||||||
Data processing and information technology |
10,633 |
8,801 |
||||||
Net occupancy |
11,097 |
10,994 |
||||||
Furniture, equipment and software |
8,083 |
7,946 |
||||||
Marketing |
4,192 |
3,659 |
||||||
Other taxes |
6,183 |
4,509 |
||||||
Professional services and legal |
4,132 |
4,096 |
||||||
FDIC insurance |
3,238 |
4,543 |
||||||
Other |
21,779 |
22,583 |
||||||
Total Noninterest Expense |
145,445 |
147,907 |
||||||
Income Before Taxes |
123,179 |
119,405 |
||||||
Provision for income taxes |
17,845 |
46,437 |
||||||
Net Income |
$105,334 |
$72,968 |
||||||
Per Share Data: |
||||||||
Average shares outstanding - diluted |
34,975,409 |
34,954,767 |
||||||
Diluted earnings per share |
$3.01 |
$2.09 |
||||||
Dividends declared per share |
$0.99 |
$0.82 |
||||||
Dividends paid to net income |
32.79% |
39.15% |
||||||
Profitability Ratios |
||||||||
Return on average assets |
1.50% |
1.03% |
||||||
Return on average shareholders' equity |
11.60% |
8.37% |
||||||
Return on average tangible shareholders' equity (6) |
17.14% |
12.77% |
||||||
Efficiency ratio (FTE) (7) |
50.60% |
51.77% |
S&T Bancorp, Inc. |
|||||||||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||||
ASSETS |
|||||||||
Cash and due from banks, including interest-bearing deposits |
$155,489 |
$132,650 |
$117,152 |
||||||
Securities, at fair value |
684,872 |
682,535 |
698,291 |
||||||
Loans held for sale |
2,371 |
4,207 |
4,485 |
||||||
Commercial loans: |
|||||||||
Commercial real estate |
2,921,832 |
2,826,372 |
2,685,994 |
||||||
Commercial and industrial |
1,493,416 |
1,451,371 |
1,433,266 |
||||||
Commercial construction |
257,197 |
283,783 |
384,334 |
||||||
Total Commercial Loans |
4,672,445 |
4,561,526 |
4,503,594 |
||||||
Consumer loans: |
|||||||||
Residential mortgage |
726,679 |
699,867 |
698,774 |
||||||
Home equity |
471,562 |
472,451 |
487,326 |
||||||
Installment and other consumer |
67,546 |
67,542 |
67,204 |
||||||
Consumer construction |
8,416 |
6,421 |
4,551 |
||||||
Total Consumer Loans |
1,274,203 |
1,246,281 |
1,257,855 |
||||||
Total Portfolio Loans |
5,946,648 |
5,807,807 |
5,761,449 |
||||||
Allowance for loan losses |
(60,996) |
(60,556) |
(56,390) |
||||||
Total Portfolio Loans, Net |
5,885,652 |
5,747,251 |
5,705,059 |
||||||
Federal Home Loan Bank and other restricted stock, at cost |
29,435 |
31,178 |
29,270 |
||||||
Goodwill |
287,446 |
287,446 |
291,670 |
||||||
Other assets |
206,956 |
220,096 |
214,328 |
||||||
Total Assets |
$7,252,221 |
$7,105,363 |
$7,060,255 |
||||||
LIABILITIES |
|||||||||
Deposits: |
|||||||||
Noninterest-bearing demand |
$1,421,156 |
$1,412,127 |
$1,387,712 |
||||||
Interest-bearing demand |
573,693 |
561,191 |
603,141 |
||||||
Money market |
1,482,065 |
1,367,181 |
1,146,156 |
||||||
Savings |
784,970 |
817,545 |
893,119 |
||||||
Certificates of deposit |
1,412,038 |
1,309,465 |
1,397,763 |
||||||
Total Deposits |
5,673,922 |
5,467,509 |
5,427,891 |
||||||
Borrowings: |
|||||||||
Securities sold under repurchase agreements |
18,383 |
45,200 |
50,161 |
||||||
Short-term borrowings |
470,000 |
535,000 |
540,000 |
||||||
Long-term borrowings |
70,314 |
45,434 |
47,301 |
||||||
Junior subordinated debt securities |
45,619 |
45,619 |
45,619 |
||||||
Total Borrowings |
604,316 |
671,253 |
683,081 |
||||||
Other liabilities |
38,222 |
46,820 |
65,252 |
||||||
Total Liabilities |
6,316,460 |
6,185,582 |
6,176,224 |
||||||
SHAREHOLDERS' EQUITY |
|||||||||
Total Shareholders' Equity |
935,761 |
919,781 |
884,031 |
||||||
Total Liabilities and Shareholders' Equity |
$7,252,221 |
$7,105,363 |
$7,060,255 |
||||||
Capitalization Ratios |
|||||||||
Shareholders' equity / assets |
12.90% |
12.94% |
12.52% |
||||||
Tangible common equity / tangible assets (4) |
9.28% |
9.25% |
8.72% |
||||||
Tier 1 leverage ratio |
10.05% |
10.13% |
9.17% |
||||||
Common equity tier 1 capital |
11.38% |
11.42% |
10.71% |
||||||
Risk-based capital - tier 1 |
11.72% |
11.76% |
11.06% |
||||||
Risk-based capital - total |
13.21% |
13.27% |
12.55% |
S&T Bancorp, Inc. |
|||||||||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||||
Net Interest Margin (FTE) (QTD Averages) |
|||||||||
ASSETS |
|||||||||
Interest-bearing deposits with banks |
$56,790 |
2.03% |
$57,012 |
2.13% |
$56,989 |
1.12% |
|||
Securities, at fair value |
678,832 |
2.70% |
680,464 |
2.63% |
696,411 |
2.53% |
|||
Loans held for sale |
1,022 |
4.05% |
1,571 |
4.71% |
35,001 |
4.23% |
|||
Commercial Loans: |
|||||||||
Commercial real estate |
2,869,532 |
4.91% |
2,779,019 |
4.81% |
2,684,481 |
4.42% |
|||
Commercial and industrial |
1,469,534 |
4.94% |
1,432,936 |
4.79% |
1,453,554 |
4.47% |
|||
Commercial construction |
266,922 |
4.91% |
291,512 |
5.08% |
405,285 |
4.26% |
|||
Total Commercial Loans |
4,605,988 |
4.92% |
4,503,467 |
4.82% |
4,543,320 |
4.42% |
|||
Consumer Loans: |
|||||||||
Residential mortgage |
705,082 |
4.36% |
696,267 |
4.30% |
696,422 |
4.14% |
|||
Home equity |
471,830 |
5.15% |
472,466 |
4.94% |
489,031 |
4.34% |
|||
Installment and other consumer |
67,444 |
7.00% |
66,693 |
6.92% |
68,459 |
6.63% |
|||
Consumer construction |
7,077 |
5.29% |
5,846 |
5.04% |
4,107 |
4.41% |
|||
Total Consumer Loans |
1,251,433 |
4.80% |
1,241,272 |
4.69% |
1,258,019 |
4.35% |
|||
Total Portfolio Loans |
5,857,421 |
4.90% |
5,744,739 |
4.79% |
5,801,339 |
4.41% |
|||
Total Loans |
5,858,443 |
4.90% |
5,746,310 |
4.79% |
5,836,340 |
4.41% |
|||
Federal Home Loan Bank and other restricted stock |
28,025 |
6.27% |
28,512 |
6.28% |
32,026 |
4.64% |
|||
Total Interest-earning Assets |
6,622,090 |
4.65% |
6,512,298 |
4.55% |
6,621,766 |
4.18% |
|||
Noninterest-earning assets |
499,254 |
496,268 |
512,396 |
||||||
Total Assets |
$7,121,344 |
$7,008,566 |
$7,134,162 |
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
Deposits: |
|||||||||
Interest-bearing demand |
$568,735 |
0.39% |
$566,579 |
0.36% |
$620,027 |
0.25% |
|||
Money market |
1,418,220 |
1.69% |
1,330,489 |
1.47% |
1,102,093 |
0.92% |
|||
Savings |
798,734 |
0.24% |
823,215 |
0.20% |
914,871 |
0.21% |
|||
Certificates of deposit |
1,354,538 |
1.72% |
1,310,526 |
1.51% |
1,439,703 |
1.05% |
|||
Total Interest-bearing Deposits |
4,140,227 |
1.24% |
4,030,809 |
1.07% |
4,076,694 |
0.70% |
|||
Borrowings: |
|||||||||
Securities sold under repurchase agreements |
45,101 |
0.62% |
42,183 |
0.52% |
42,599 |
0.26% |
|||
Short-term borrowings |
433,642 |
2.54% |
455,689 |
2.28% |
625,189 |
1.38% |
|||
Long-term borrowings |
52,949 |
2.75% |
45,699 |
2.36% |
30,813 |
2.04% |
|||
Junior subordinated debt securities |
45,619 |
4.86% |
45,619 |
4.79% |
45,619 |
3.82% |
|||
Total Borrowings |
577,311 |
2.59% |
589,190 |
2.35% |
744,220 |
1.49% |
|||
Total Interest-bearing Liabilities |
4,717,538 |
1.41% |
4,619,999 |
1.23% |
4,820,914 |
0.83% |
|||
Noninterest-bearing liabilities |
1,477,024 |
1,475,059 |
1,422,074 |
||||||
SHAREHOLDERS' EQUITY |
|||||||||
Total Shareholders' Equity |
926,782 |
913,508 |
891,174 |
||||||
Total Liabilities and Shareholders' Equity |
$7,121,344 |
$7,008,566 |
$7,134,162 |
||||||
Net Interest Margin (5) |
3.65% |
3.67% |
3.58% |
||||||
S&T Bancorp, Inc. |
||||||||
For the Twelve Months Ended December 31, |
||||||||
(dollars in thousands) |
2018 |
2017 |
||||||
Net Interest Margin (FTE) (YTD Averages) |
||||||||
ASSETS |
||||||||
Interest-bearing deposits with banks |
$56,210 |
1.85% |
$56,344 |
1.03% |
||||
Securities, at fair value |
682,806 |
2.62% |
698,460 |
2.48% |
||||
Loans held for sale |
1,515 |
5.60% |
14,607 |
3.98% |
||||
Commercial Loans: |
||||||||
Commercial real estate |
2,779,096 |
4.75% |
2,638,766 |
4.34% |
||||
Commercial and industrial |
1,441,560 |
4.70% |
1,425,421 |
4.35% |
||||
Commercial construction |
314,265 |
4.79% |
426,574 |
4.08% |
||||
Total Commercial Loans |
4,534,921 |
4.74% |
4,490,761 |
4.32% |
||||
Consumer Loans: |
||||||||
Residential mortgage |
696,849 |
4.27% |
699,843 |
4.11% |
||||
Home equity |
474,538 |
4.84% |
484,023 |
4.31% |
||||
Installment and other consumer |
67,047 |
6.85% |
69,163 |
6.54% |
||||
Consumer construction |
5,336 |
5.00% |
4,631 |
4.35% |
||||
Total Consumer Loans |
1,243,770 |
4.63% |
1,257,660 |
4.32% |
||||
Total Portfolio Loans |
5,778,691 |
4.72% |
5,748,421 |
4.32% |
||||
Total Loans |
5,780,206 |
4.72% |
5,763,028 |
4.32% |
||||
Federal Home Loan Bank and other restricted stock |
30,457 |
6.74% |
31,989 |
4.64% |
||||
Total Interest-earning Assets |
6,549,679 |
4.48% |
6,549,821 |
4.09% |
||||
Noninterest-earning assets |
494,149 |
510,411 |
||||||
Total Assets |
$7,043,828 |
$7,060,232 |
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Deposits: |
||||||||
Interest-bearing demand |
$570,459 |
0.33% |
$637,526 |
0.22% |
||||
Money market |
1,299,185 |
1.40% |
994,783 |
0.79% |
||||
Savings |
836,747 |
0.21% |
988,504 |
0.21% |
||||
Certificates of deposit |
1,328,985 |
1.43% |
1,439,711 |
0.97% |
||||
Total Interest-bearing Deposits |
4,035,376 |
1.01% |
4,060,524 |
0.62% |
||||
Borrowings: |
||||||||
Securities sold under repurchase agreements |
45,992 |
0.48% |
46,662 |
0.12% |
||||
Short-term borrowings |
525,172 |
2.11% |
644,864 |
1.15% |
||||
Long-term borrowings |
47,986 |
2.35% |
18,057 |
2.57% |
||||
Junior subordinated debt securities |
45,619 |
4.60% |
45,619 |
3.65% |
||||
Total Borrowings |
664,769 |
2.19% |
755,202 |
1.27% |
||||
Total Interest-bearing Liabilities |
4,700,145 |
1.18% |
4,815,726 |
0.72% |
||||
Noninterest-bearing liabilities |
1,435,328 |
1,372,376 |
||||||
SHAREHOLDERS' EQUITY |
||||||||
Total Shareholders' Equity |
908,355 |
872,130 |
||||||
Total Liabilities and Shareholders' Equity |
$7,043,828 |
$7,060,232 |
||||||
Net Interest Margin (8) |
3.64% |
3.56% |
||||||
S&T Bancorp, Inc. |
|||||||||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||||
Nonperforming Loans (NPL) |
|||||||||
Commercial loans: |
% NPL |
% NPL |
% NPL |
||||||
Commercial real estate |
$12,052 |
0.41% |
$4,595 |
0.16% |
$3,468 |
0.13% |
|||
Commercial and industrial |
8,960 |
0.60% |
4,367 |
0.30% |
5,646 |
0.39% |
|||
Commercial construction |
14,193 |
5.52% |
1,228 |
0.43% |
3,873 |
1.01% |
|||
Total Nonperforming Commercial Loans |
35,205 |
0.75% |
10,190 |
0.22% |
12,987 |
0.29% |
|||
Consumer loans: |
|||||||||
Residential mortgage |
7,128 |
0.98% |
6,721 |
0.96% |
7,165 |
1.03% |
|||
Home equity |
3,698 |
0.78% |
3,783 |
0.80% |
3,715 |
0.76% |
|||
Installment and other consumer |
42 |
0.06% |
45 |
0.07% |
71 |
0.11% |
|||
Total Nonperforming Consumer Loans |
10,868 |
0.85% |
10,549 |
0.85% |
10,951 |
0.87% |
|||
Total Nonperforming Loans |
$46,073 |
0.77% |
$20,739 |
0.36% |
$23,938 |
0.42% |
|||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
(dollars in thousands) |
Quarter |
Quarter |
Quarter |
||||||
Loan Charge-offs |
|||||||||
Charge-offs |
$3,279 |
$1,234 |
$2,073 |
||||||
Recoveries |
(1,002) |
(811) |
(769) |
||||||
Net Loan Charge-offs |
$2,277 |
$423 |
$1,304 |
||||||
Net Loan Charge-offs (Recoveries) |
|||||||||
Commercial Loans: |
|||||||||
Commercial real estate |
($17) |
$77 |
($191) |
||||||
Commercial and industrial |
(567) |
(298) |
513 |
||||||
Commercial construction |
2,308 |
(29) |
465 |
||||||
Total Commercial Loan Charge-offs |
1,724 |
(250) |
787 |
||||||
Consumer loans: |
|||||||||
Residential mortgage |
191 |
54 |
162 |
||||||
Home equity |
133 |
402 |
120 |
||||||
Installment and other consumer |
297 |
256 |
272 |
||||||
Consumer construction |
(68) |
(39) |
(37) |
||||||
Total Consumer Loan Charge-offs |
553 |
673 |
517 |
||||||
Total Net Loan Charge-offs |
$2,277 |
$423 |
$1,304 |
||||||
For the Twelve Months Ended December 31, |
|||||||||
(dollars in thousands) |
2018 |
2017 |
|||||||
Loan Charge-offs |
|||||||||
Charge-offs |
$14,589 |
$13,496 |
|||||||
Recoveries |
(4,200) |
(3,228) |
|||||||
Net Loan Charge-offs |
$10,389 |
$10,268 |
|||||||
Net Loan Charge-offs (Recoveries) |
|||||||||
Commercial loans: |
|||||||||
Commercial real estate |
$63 |
$1,494 |
|||||||
Commercial and industrial |
6,851 |
4,055 |
|||||||
Commercial construction |
1,495 |
1,720 |
|||||||
Total Commercial Loan Charge-offs |
8,409 |
7,269 |
|||||||
Consumer loans: |
|||||||||
Residential mortgage |
394 |
1,382 |
|||||||
Home equity |
541 |
666 |
|||||||
Installment and other consumer |
1,202 |
1,067 |
|||||||
Consumer construction |
(157) |
(116) |
|||||||
Total Consumer Loan Charge-offs |
1,980 |
2,999 |
|||||||
Total Net Loan Charge-offs |
$10,389 |
$10,268 |
S&T Bancorp, Inc. |
|||||||||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
Quarter |
Quarter |
Quarter |
|||||||
Asset Quality Data |
|||||||||
Nonperforming loans |
$46,073 |
$20,739 |
$23,938 |
||||||
OREO |
3,092 |
3,068 |
469 |
||||||
Nonperforming assets |
49,165 |
23,807 |
24,407 |
||||||
Troubled debt restructurings (nonaccruing) |
11,088 |
7,143 |
11,150 |
||||||
Troubled debt restructurings (accruing) |
16,786 |
22,226 |
14,901 |
||||||
Total troubled debt restructurings |
27,874 |
29,369 |
26,051 |
||||||
Nonperforming loans / loans |
0.77% |
0.36% |
0.42% |
||||||
Nonperforming assets / loans plus OREO |
0.83% |
0.41% |
0.42% |
||||||
Allowance for loan losses / total portfolio loans |
1.03% |
1.04% |
0.98% |
||||||
Allowance for loan losses / nonperforming loans |
132% |
292% |
236% |
||||||
Net loan charge-offs |
$2,277 |
$423 |
$1,304 |
||||||
Net loan charge-offs (annualized) / average loans |
0.15% |
0.03% |
0.09% |
||||||
For the Twelve Months Ended December 31, |
|||||||||
(dollars in thousands) |
2018 |
2017 |
|||||||
Asset Quality Data |
|||||||||
Net loan charge-offs |
$10,389 |
$10,268 |
|||||||
Net loan charge-offs / average loans |
0.18% |
0.18% |
S&T Bancorp, Inc. |
|||||||||
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: |
|||||||||
2018 |
2018 |
2017 |
|||||||
Fourth |
Third |
Fourth |
|||||||
Quarter |
Quarter |
Quarter |
|||||||
(1) Tangible Book Value (non-GAAP) |
|||||||||
Total shareholders' equity |
$935,761 |
$919,781 |
$884,031 |
||||||
Less: goodwill and other intangible assets |
(290,047) |
(290,171) |
(295,347) |
||||||
Tax effect of other intangible assets |
546 |
572 |
1,287 |
||||||
Tangible common equity (non-GAAP) |
$646,260 |
$630,182 |
$589,971 |
||||||
Common shares outstanding |
34,684 |
35,007 |
34,972 |
||||||
Tangible book value (non-GAAP) |
$18.63 |
$18.00 |
$16.87 |
||||||
(2) Return on Average Tangible Shareholders' Equity (non-GAAP) |
|||||||||
Net income (annualized) |
$106,540 |
$122,516 |
$36,873 |
||||||
Plus: amortization of intangibles (annualized) |
811 |
731 |
1,109 |
||||||
Tax effect of amortization of intangibles (annualized) |
(170) |
(154) |
(388) |
||||||
Net income before amortization of intangibles (annualized) |
$107,181 |
$123,093 |
$37,594 |
||||||
Average total shareholders' equity |
$926,782 |
$913,508 |
$891,174 |
||||||
Less: average goodwill and other intangible assets |
(290,045) |
(290,264) |
(295,495) |
||||||
Tax effect of average goodwill and other intangible assets |
546 |
592 |
1,339 |
||||||
Average tangible equity (non-GAAP) |
$637,283 |
$623,836 |
$597,018 |
||||||
Return on average tangible shareholders' equity (non-GAAP) |
16.82% |
19.73% |
6.30% |
||||||
(3) Efficiency Ratio (non-GAAP) |
|||||||||
Noninterest expense |
$36,415 |
$37,085 |
$37,947 |
||||||
Net interest income per consolidated statements of net income |
59,842 |
59,262 |
57,828 |
||||||
Less: securities (gains) losses, net |
— |
— |
986 |
||||||
Plus: taxable equivalent adjustment |
974 |
951 |
1,878 |
||||||
Net interest income (FTE) (non-GAAP) |
$60,816 |
$60,213 |
$60,692 |
||||||
Noninterest income |
11,095 |
12,042 |
12,650 |
||||||
Net interest income (FTE) (non-GAAP) plus noninterest income |
71,911 |
72,255 |
73,342 |
||||||
Efficiency ratio (non-GAAP) |
50.64% |
51.33% |
51.75% |
||||||
(4) Tangible Common Equity / Tangible Assets (non-GAAP) |
|||||||||
Total shareholders' equity |
$935,761 |
$919,781 |
$884,031 |
||||||
Less: goodwill and other intangible assets |
(290,047) |
(290,171) |
(295,347) |
||||||
Tax effect of goodwill and other intangible assets |
546 |
572 |
1,287 |
||||||
Tangible common equity (non-GAAP) |
$646,260 |
$630,182 |
$589,971 |
||||||
Total assets |
$7,252,221 |
$7,105,363 |
$7,060,255 |
||||||
Less: goodwill and other intangible assets |
(290,047) |
(290,171) |
(295,347) |
||||||
Tax effect of goodwill and other intangible assets |
546 |
572 |
1,287 |
||||||
Tangible assets (non-GAAP) |
$6,962,720 |
$6,815,764 |
$6,766,195 |
||||||
Tangible common equity to tangible assets (non-GAAP) |
9.28% |
9.25% |
8.72% |
||||||
(5) Net Interest Margin Rate (FTE) (non-GAAP) |
|||||||||
Interest income |
$76,589 |
$73,627 |
$67,855 |
||||||
Less: interest expense |
(16,747) |
(14,365) |
(10,027) |
||||||
Net interest income per consolidated statements of net income |
$59,842 |
$59,262 |
$57,828 |
||||||
Plus: taxable equivalent adjustment |
974 |
951 |
1,878 |
||||||
Net interest income (FTE) (non-GAAP) |
$60,816 |
$60,213 |
$59,706 |
||||||
Net interest income (FTE) (annualized) |
$241,281 |
$238,889 |
$237,526 |
||||||
Average earning assets |
$6,622,090 |
$6,512,298 |
$6,621,766 |
||||||
Net interest margin (FTE) (non-GAAP) |
3.65% |
3.67% |
3.58% |
S&T Bancorp, Inc. |
||||||||
For the Twelve Months Ended December 31, |
||||||||
2018 |
2017 |
|||||||
(6) Return on Average Tangible Shareholders' Equity (non-GAAP) |
||||||||
Net income |
$105,334 |
$72,968 |
||||||
Plus: amortization of intangibles |
861 |
1,233 |
||||||
Tax effect of amortization of intangibles |
(181) |
(432) |
||||||
Net income before amortization of intangibles |
$106,014 |
$73,769 |
||||||
Average total shareholders' equity |
$908,355 |
$872,130 |
||||||
Less: average goodwill and other intangible assets |
(290,380) |
(295,937) |
||||||
Tax effect of average goodwill and other intangible assets |
614 |
1,493 |
||||||
Average tangible equity (non-GAAP) |
$618,589 |
$577,686 |
||||||
Return on average tangible shareholders' equity (non-GAAP) |
17.14% |
12.77% |
||||||
(7) Efficiency Ratio (non-GAAP) |
||||||||
Noninterest expense |
$145,445 |
$147,907 |
||||||
Net interest income per consolidated statements of net income |
234,438 |
225,733 |
||||||
Less: securities (gains) losses, net |
— |
(3,000) |
||||||
Plus: taxable equivalent adjustment |
3,804 |
7,493 |
||||||
Net interest income (FTE) (non-GAAP) |
$238,242 |
230,226 |
||||||
Noninterest income |
49,181 |
55,462 |
||||||
Net interest income (FTE) (non-GAAP) plus noninterest income |
$287,423 |
$285,688 |
||||||
Efficiency ratio (non-GAAP) |
50.60% |
51.77% |
||||||
(8) Net Interest Margin Rate (FTE) (non-GAAP) |
||||||||
Interest income |
$289,826 |
$260,642 |
||||||
Less: interest expense |
(55,388) |
(34,909) |
||||||
Net interest income per consolidated statements of net income |
$234,438 |
$225,733 |
||||||
Plus: taxable equivalent adjustment |
3,804 |
7,493 |
||||||
Net interest income (FTE) (non-GAAP) |
$238,242 |
$233,226 |
||||||
Average earning assets |
$6,549,679 |
$6,549,821 |
||||||
Net interest margin (FTE) (non-GAAP) |
3.64% |
3.56% |
Reconciliations of net income, diluted earnings per share and selected financial ratios, adjusted to exclude the re-measurement of the DTA recognized in the fourth quarter of 2017. |
2017 |
2017 |
|||||||
Fourth |
Full |
|||||||
Quarter |
Year |
|||||||
Diluted Earnings Per Share |
||||||||
Net income |
$9,294 |
$72,968 |
||||||
Plus: DTA re-measurement |
13,433 |
13,433 |
||||||
Adjusted net Income (non-GAAP) |
$22,727 |
$86,401 |
||||||
Average shares outstanding - diluted |
35,020 |
34,955 |
||||||
Diluted earnings per share (non-GAAP) |
$0.65 |
$2.47 |
||||||
SOURCE S&T Bancorp, Inc.
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