INDIANA, Pa., Jan. 25, 2018 /PRNewswire/ — S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its fourth quarter and full year 2017 earnings. Fourth quarter of 2017 net income was $9.3 million and diluted earnings per share was $0.27.  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. This re-measurement decreased quarterly and annual diluted earnings per share by $0.38. 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). This compares to fourth quarter of 2016 net income of $17.7 million, or $0.51 per diluted share, and third quarter of 2017 net income of $22.7 million, or $0.65 per diluted share.

 

S&T Bancorp, Inc.

 

Net income was $73.0 million for the year ended December 31, 2017, with diluted earnings per share of $2.09. Excluding the net DTA re-measurement, full year 2017 net income was $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP) compared to net income of $71.4 million and diluted earnings per share of $2.05 for 2016.

Fourth Quarter of 2017 Highlights:

  • Return on average assets (ROA) was 0.52%, return on average equity (ROE) was 4.14% and return on average tangible equity (ROTE) (non-GAAP) was 6.30%.
      
  • Excluding the net DTA re-measurement of $13.4 million, ROA was 1.26% (non-GAAP), ROE was 10.09% (non-GAAP) and ROTE was 15.16% (non-GAAP).
      
  • Net interest margin (FTE) (non-GAAP) was stable at 3.58% compared to 3.59% in the third quarter of 2017.
     
  • Net loan charge-offs were $1.3 million, representing 0.09% of average loans on an annualized basis for the fourth quarter of 2017.
     
  • S&T declared a $0.22 per share dividend, a 10% increase compared to $0.20 in the same period a year ago.

Full Year 2017 Highlights:

  • Net income increased to $73.0 million compared to $71.4 million for 2016. Excluding the net DTA re-measurement of $13.4 million, net income increased 21% to $86.4 million (non-GAAP) compared to 2016.
     
  • ROA was 1.03%, ROE was 8.37% and ROTE (non-GAAP) was 12.77%.
     
  • Excluding the DTA re-measurement of $13.4 million, ROA was 1.22% (non-GAAP), ROE was 9.90% (non-GAAP) and ROTE was 15.08% (non-GAAP).
     
  • Net interest income increased $22.5 million, or 11%, and net interest margin (FTE) (non-GAAP) increased 9 basis points to 3.56% compared to 3.47% in 2016.
     
  • Asset quality metrics improved with a decrease in nonperforming loans of $18.7 million, or 44%, compared to December 31, 2016.

“Our performance in 2017 reached another milestone for net income,” said Todd Brice, president and chief executive officer of S&T. “Results were impacted by an 11% increase in net interest income as well as controlled expenses and a significant improvement in our asset quality.”

Fourth Quarter of 2017 Results

Net Interest Income

Net interest income increased $0.3 million to $57.8 million compared to $57.5 million in the third quarter of 2017. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined one basis point to 3.58% compared to 3.59% in the prior quarter.  The increase in net interest income is due to an increase in average loans of $49.6 million and higher short-term rates.

Asset Quality

Asset quality trends continued to be favorable during the fourth quarter of 2017. Total nonperforming loans decreased 19% to $23.9 million, or 0.42% of total loans, at December 31, 2017 compared to $29.5 million, or 0.50% of total loans, at September 30, 2017. Net charge-offs were $1.3 million, or 0.09% of average loans on an annualized basis in the fourth quarter of 2017 compared to net charge-offs of $1.5 million, or 0.10% of average loans on an annualized basis, in the third quarter of 2017.  As a result of improving asset quality, the provision for loan losses decreased $1.9 million to $1.0 million in the fourth quarter of 2017 compared to $2.9 million in the third quarter of 2017. The allowance for loan losses was $56.4 million, or 0.98% of total portfolio loans, at December 31, 2017 compared to $56.7 million, or 0.97% of total portfolio loans, at September 30, 2017.

Noninterest Income and Expense

Noninterest income decreased $0.9 million in the fourth quarter of 2017 to $12.7 million compared to $13.6 million in the third quarter of 2017.  Securities were sold resulting in a $1.0 million loss during the fourth quarter of 2017. Bank owned life insurance decreased $0.7 million due to a claim in the third quarter of 2017. Offsetting these decreases was an increase in other income from a $1.0 million gain on the sale of a branch during the fourth quarter of 2017.

Noninterest expense increased $1.4 million in the fourth quarter of 2017 to $37.9 million from $36.5 million in the third quarter of 2017.  Professional services and legal expenses increased $0.4 million mainly related to selling majority ownership of our insurance business that closed on January 1, 2018.  Marketing expense increased $0.4 million due to normal timing of marketing campaigns. Other expense increased $0.8 million primarily due to higher loan related costs.

Financial Condition

Total assets were $7.1 billion at December 31, 2017 compared to $7.2 billion at September 30, 2017. During the fourth quarter of 2017, $41.1 million of loans and $37.8 million of deposits were sold related to a branch sale. Total portfolio loans decreased $59.3 million compared to the third quarter of 2017 primarily due to higher loan payoffs. S&T’s risk-based capital ratios were relatively unchanged compared to the third quarter of 2017. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2017 Results

Full year 2017 net income increased to $73.0 million and diluted earnings per share was $2.09. Excluding the net DTA re-measurement of $13.4 million, or $0.38 per diluted share, net income increased 21% to $86.4 million (non-GAAP) and diluted earnings per share was $2.47 (non-GAAP). Net interest income increased $22.5 million, or 11%, in 2017 due to average loan growth of $438 million, or 8.2%, and higher short-term rates. Net interest margin (FTE) (non-GAAP) increased to 3.56% compared to 3.47% for 2016. Asset quality improved throughout the year resulting in a $4.1 million decline in the provision for loan losses to $13.9 million. Nonperforming loans decreased $18.7 million, or 44%, and net loan charge-offs to average loans decreased to 0.18% compared to 0.25% in 2016.  Expenses were well controlled during 2017 with an efficiency ratio (non-GAAP) of 51.77% compared to 54.06% for 2016. To view an infographic featuring 2017 highlights, click here.

Dividend

The Board of Directors of S&T declared a $0.22 per share cash dividend at its regular meeting held January 22, 2018. This is an increase of 10% compared to a common stock dividend of $0.20 per share declared in the same period in the prior year. The dividend is payable February 22, 2018 to shareholders of record on February 8, 2018. Dividends declared in 2017 increased $0.05, or 6.5%, to $0.82 compared to $0.77 for 2016.

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 2017 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 25, 2018. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “4th Quarter 2017 Conference Call” and follow the instructions.

About S&T Bancorp, Inc.

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

Fourth

Third

Fourth

(dollars in thousands, except per share data)

Quarter

Quarter

Quarter

INTEREST INCOME

Loans, including fees

$63,407

$62,450

$55,168

Investment securities:

Taxable

3,164

2,988

2,636

Tax-exempt

871

896

894

Dividends

413

389

398

Total Interest Income

67,855

66,723

59,096

INTEREST EXPENSE

Deposits

7,227

6,748

5,289

Borrowings and junior subordinated debt securities

2,800

2,519

1,349

Total Interest Expense

10,027

9,267

6,638

NET INTEREST INCOME

57,828

57,456

52,458

Provision for loan losses

982

2,850

5,586

Net Interest Income After Provision for Loan Losses

56,846

54,606

46,872

NONINTEREST INCOME

Securities (losses) gains, net

(986)

Service charges on deposit accounts

3,240

3,207

3,240

Debit and credit card fees

3,077

3,067

3,125

Wealth management fees

2,521

2,406

2,509

Insurance fees

1,160

1,333

1,066

Mortgage banking

635

872

694

Bank owned life insurance

506

1,209

553

Other

2,497

1,457

1,735

Total Noninterest Income

12,650

13,551

12,922

NONINTEREST EXPENSE

Salaries and employee benefits

20,006

20,325

19,787

Net occupancy

2,736

2,692

2,644

Data processing

2,131

2,284

2,079

Furniture and equipment

2,200

1,890

1,710

FDIC insurance

1,083

1,152

1,046

Other taxes

1,241

1,208

974

Professional services and legal

1,224

870

921

Marketing

1,191

766

840

Other

6,135

5,366

5,624

Total Noninterest Expense

37,947

36,553

35,625

Income Before Taxes

31,549

31,604

24,169

Provision for income taxes

22,255

8,883

6,510

Net Income

$9,294

$22,721

$17,659

Per Share Data:

Shares outstanding at end of period

34,971,929

34,979,192

34,913,023

Average shares outstanding – diluted

35,019,866

34,960,139

34,839,189

Diluted earnings per share

$0.27

$0.65

$0.51

Dividends declared per share

$0.22

$0.20

$0.20

Dividend yield (annualized)

2.21%

2.02%

2.05%

Dividends paid to net income

82.53%

30.69%

39.41%

Book value

$25.28

$25.37

$24.12

Tangible book value (1)

$16.87

$16.96

$15.67

Market value

$39.81

$39.58

$39.04

Profitability Ratios (annualized)

Return on average assets

0.52%

1.27%

1.04%

Return on average shareholders’ equity

4.14%

10.23%

8.36%

Return on average tangible shareholders’ equity (2)

6.30%

15.47%

13.05%

Efficiency ratio (FTE) (3)

51.75%

50.16%

53.04%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

For the Twelve Months Ended December 31,

(dollars in thousands, except per share data)

2017

2016

INTEREST INCOME

Loans, including fees

$243,315

$212,301

Investment securities:

Taxable

11,947

10,340

Tax-exempt

3,615

3,658

Dividends

1,765

1,475

Total Interest Income

260,642

227,774

INTEREST EXPENSE

Deposits

25,330

19,692

Borrowings and junior subordinated debt securities

9,579

4,823

Total Interest Expense

34,909

24,515

NET INTEREST INCOME

225,733

203,259

Provision for loan losses

13,883

17,965

Net Interest Income After Provision for Loan Losses

211,850

185,294

NONINTEREST INCOME

Securities gains (losses), net

3,000

Service charges on deposit accounts

12,458

12,512

Debit and credit card fees

12,029

11,943

Wealth management fees

9,758

10,456

Insurance fees

5,418

5,253

Mortgage banking

2,915

2,879

Bank owned life insurance

2,756

2,122

Gain on sale of credit card portfolio

2,066

Other

7,128

7,404

Total Noninterest Income

55,462

54,635

NONINTEREST EXPENSE

Salaries and employee benefits

80,776

77,325

Net occupancy

10,994

11,057

Data processing

8,801

8,837

Furniture and equipment

7,946

7,290

FDIC insurance

4,543

3,984

Other taxes

4,509

4,050

Professional services and legal

4,096

3,466

Marketing

3,659

3,713

Other

22,583

23,510

Total Noninterest Expense

147,907

143,232

Income Before Taxes

119,405

96,697

Provision for income taxes

46,437

25,305

Net Income

$72,968

$71,392

Per Share Data:

Average shares outstanding – diluted

34,954,767

34,773,170

Diluted earnings per share

$2.09

$2.05

Dividends declared per share

$0.82

$0.77

Dividends paid to net income

39.15%

37.52%

Profitability Ratios

Return on average assets

1.03%

1.08%

Return on average shareholders’ equity

8.37%

8.67%

Return on average tangible shareholders’ equity (6)

12.77%

13.71%

Efficiency ratio (FTE) (7)

51.77%

54.06%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

2017

2017

2016

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

ASSETS

Cash and due from banks, including interest-bearing deposits

$117,152

$114,440

$139,486

Securities available-for-sale, at fair value

698,291

697,954

693,487

Loans held for sale

4,485

47,936

3,793

Commercial loans:

Commercial real estate

2,685,994

2,681,693

2,498,476

Commercial and industrial

1,433,266

1,446,811

1,401,035

Commercial construction

384,334

432,887

455,884

   Total Commercial Loans

4,503,594

4,561,391

4,355,395

Consumer loans:

Residential mortgage

698,774

697,367

701,982

Home equity

487,326

487,806

482,284

Installment and other consumer

67,204

69,644

65,852

Consumer construction

4,551

4,550

5,906

   Total Consumer Loans

1,257,855

1,259,367

1,256,024

Total portfolio loans

5,761,449

5,820,758

5,611,419

Allowance for loan losses

(56,390)

(56,712)

(52,775)

Total portfolio loans, net

5,705,059

5,764,046

5,558,644

Federal Home Loan Bank and other restricted stock, at cost

29,270

33,120

31,817

Goodwill

291,670

291,670

291,670

Other assets

214,328

221,013

224,156

Total Assets

$7,060,255

$7,170,179

$6,943,053

LIABILITIES

Deposits:

Noninterest-bearing demand

$1,387,712

$1,348,939

$1,263,833

Interest-bearing demand

603,141

646,195

638,300

Money market

1,146,156

1,036,726

936,461

Savings

893,119

940,989

1,050,131

Certificates of deposit

1,397,763

1,431,431

1,383,652

Deposits held for sale

38,960

Total Deposits

5,427,891

5,443,240

5,272,377

Securities sold under repurchase agreements

50,161

39,923

50,832

Short-term borrowings

540,000

685,000

660,000

Long-term borrowings

47,301

12,911

14,713

Junior subordinated debt securities

45,619

45,619

45,619

Total Borrowings

683,081

783,453

771,164

Other liabilities

65,252

55,910

57,556

Total Liabilities

6,176,224

6,282,603

6,101,097

SHAREHOLDERS’ EQUITY

Total Shareholders’ Equity

884,031

887,576

841,956

Total Liabilities and Shareholders’ Equity

$7,060,255

$7,170,179

$6,943,053

Capitalization Ratios

Shareholders’ equity / assets

12.52%

12.38%

12.13%

Tangible common equity / tangible assets (4)

8.72%

8.63%

8.23%

Tier 1 leverage ratio

9.17%

9.25%

8.98%

Common equity tier 1 capital

10.71%

10.70%

10.04%

Risk-based capital – tier 1

11.06%

11.05%

10.39%

Risk-based capital – total

12.55%

12.54%

11.86%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

2017

2017

2016

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks

$56,989

1.12%

$53,794

1.25%

$43,023

0.45%

Securities available-for-sale, at fair value

696,411

2.53%

690,986

2.46%

679,688

2.41%

Loans held for sale

35,001

4.23%

15,789

3.88%

8,959

4.33%

Commercial real estate

2,684,481

4.42%

2,678,835

4.38%

2,457,985

4.12%

Commercial and industrial

1,453,554

4.47%

1,404,047

4.45%

1,371,092

4.05%

Commercial construction

405,285

4.26%

425,228

4.27%

426,245

3.66%

Total Commercial Loans

4,543,320

4.42%

4,508,110

4.39%

4,255,322

4.06%

Residential mortgage

696,422

4.14%

702,702

4.10%

692,937

4.06%

Home equity

489,031

4.34%

485,501

4.37%

485,107

3.91%

Installment and other consumer

68,459

6.63%

70,118

6.57%

64,192

6.47%

Consumer construction

4,107

4.41%

4,486

4.49%

6,557

4.05%

Total Consumer Loans

1,258,019

4.35%

1,262,807

4.34%

1,248,793

4.13%

Total portfolio loans

5,801,339

4.41%

5,770,917

4.38%

5,504,115

4.07%

Total loans

5,836,340

4.41%

5,786,706

4.38%

5,513,074

4.07%

Federal Home Loan Bank and other restricted stock

32,026

4.64%

30,184

4.61%

26,149

4.56%

Total Interest-earning Assets

6,621,766

4.18%

6,561,670

4.15%

6,261,934

3.87%

Noninterest-earning assets

512,396

510,681

524,653

Total Assets

$7,134,162

$7,072,351

$6,786,587

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing demand

$620,027

0.25%

$647,442

0.25%

$655,894

0.18%

Money market

1,102,093

0.92%

999,892

0.87%

905,715

0.51%

Savings

914,871

0.21%

979,767

0.21%

1,033,297

0.20%

Certificates of deposit

1,439,703

1.05%

1,457,649

0.98%

1,424,606

0.92%

Total interest-bearing deposits

4,076,694

0.70%

4,084,750

0.66%

4,019,512

0.52%

Securities sold under repurchase agreements

42,599

0.26%

45,158

0.16%

42,570

0.01%

Short-term borrowings

625,189

1.38%

600,893

1.30%

500,890

0.68%

Long-term borrowings

30,813

2.04%

13,162

3.01%

14,957

2.85%

Junior subordinated debt securities

45,619

3.82%

45,619

3.71%

45,619

3.33%

Total borrowings

744,220

1.49%

704,832

1.42%

604,036

0.89%

Total interest-bearing liabilities

4,820,914

0.83%

4,789,582

0.77%

4,623,548

0.57%

Noninterest-bearing liabilities

1,422,074

1,401,755

1,322,415

Shareholders’ equity

891,174

881,014

840,624

Total Liabilities and Shareholders’ Equity

$7,134,162

$7,072,351

$6,786,587

Net Interest Margin (5)

3.58%

3.59%

3.45%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

For the Twelve Months Ended December 31,

(dollars in thousands)

2017

2016

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks

$56,344

1.03%

$41,810

0.50%

Securities available-for-sale, at fair value

698,460

2.48%

676,696

2.41%

Loans held for sale

14,607

3.98%

14,255

5.71%

Commercial real estate

2,638,766

4.34%

2,344,050

4.13%

Commercial and industrial

1,425,421

4.35%

1,348,287

3.98%

Commercial construction

426,574

4.08%

400,997

3.69%

Total Commercial Loans

4,490,761

4.32%

4,093,334

4.04%

Residential mortgage

699,843

4.11%

668,236

4.12%

Home equity

484,023

4.31%

477,011

4.03%

Installment and other consumer

69,163

6.54%

64,960

6.37%

Consumer construction

4,631

4.35%

7,038

4.08%

Total Consumer Loans

1,257,660

4.32%

1,217,245

4.20%

Total portfolio loans

5,748,421

4.32%

5,310,579

4.08%

Total loans

5,763,028

4.32%

5,324,834

4.08%

Federal Home Loan Bank and other restricted stock

31,989

4.64%

23,811

4.53%

Total Interest-earning Assets

6,549,821

4.09%

6,067,151

3.87%

Noninterest-earning assets

510,411

521,104

Total Assets

$7,060,232

$6,588,255

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing demand

$637,526

0.22%

$651,118

0.17%

Money market

994,783

0.79%

735,159

0.44%

Savings

988,504

0.21%

1,039,664

0.19%

Certificates of deposit

1,439,711

0.97%

1,472,613

0.91%

Total interest-bearing deposits

4,060,524

0.62%

3,898,554

0.51%

Securities sold under repurchase agreements

46,662

0.12%

51,021

0.01%

Short-term borrowings

644,864

1.15%

414,426

0.65%

Long-term borrowings

18,057

2.57%

50,257

1.33%

Junior subordinated debt securities

45,619

3.65%

45,619

3.14%

Total borrowings

755,202

1.27%

561,323

0.86%

Total Interest-bearing Liabilities

4,815,726

0.72%

4,459,877

0.55%

Noninterest-bearing liabilities

1,372,376

1,304,771

Shareholders’ equity

872,130

823,607

Total Liabilities and Shareholders’ Equity

$7,060,232

$6,588,255

Net Interest Margin (8)

3.56%

3.47%

2017

2017

2016

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Nonperforming Loans (NPL)

Commercial loans:

% NPL

%NPL

% NPL

Commercial real estate

$3,468

0.13%

$6,571

0.25%

$16,172

0.65%

Commercial and industrial

5,646

0.39%

7,349

0.51%

8,071

0.58%

Commercial construction

3,873

1.01%

4,068

0.94%

4,927

1.08%

Total Nonperforming Commercial Loans

12,987

0.29%

17,988

0.39%

29,170

0.67%

Consumer loans:

Residential mortgage

7,165

1.03%

7,782

1.11%

9,918

1.41%

Home equity

3,715

0.76%

3,675

0.75%

3,439

0.71%

Installment and other consumer

71

0.11%

48

0.07%

108

0.16%

Total Nonperforming Consumer Loans

10,951

0.87%

11,505

0.91%

13,465

1.07%

Total Nonperforming Loans

$23,938

0.42%

$29,493

0.50%

$42,635

0.76%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

2017

2017

2016

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Loan Charge-offs

Charge-offs

$2,073

$2,660

$6,938

Recoveries

(769)

(1,171)

(333)

Net Loan Charge-offs

$1,304

$1,489

$6,605

Net Loan Charge-offs

Commercial loans:

Commercial real estate

($191)

($145)

$1,276

Commercial and industrial

513

401

3,433

Commercial construction

465

980

768

Total Commercial Loan Charge-offs

787

1,236

5,477

Consumer loans:

Residential mortgage

162

44

722

Home equity

120

10

26

Installment and other consumer

272

243

453

Consumer construction

(37)

(44)

(73)

Total Consumer Loan Charge-offs

517

253

1,128

Total Net Loan Charge-offs

$1,304

$1,489

$6,605

For the Twelve Months Ended December 31,

(dollars in thousands)

2017

2016

Loan Charge-offs

Charge-offs

$13,496

$15,561

Recoveries

(3,228)

(2,224)

Net Loan Charge-offs

$10,268

$13,337

Net Loan Charge-offs

Commercial loans:

Commercial real estate

$1,494

$2,422

Commercial and industrial

4,055

6,088

Commercial construction

1,720

1,856

Total Commercial Loan Charge-offs

7,269

10,366

Consumer loans:

Residential mortgage

1,382

1,230

Home equity

666

183

Installment and other consumer

1,067

1,747

Consumer construction

(116)

(189)

Total Consumer Loan Charge-offs

2,999

2,971

Total Net Loan Charge-offs

$10,268

$13,337

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

2017

2017

2016

Fourth

Third

Fourth

Quarter

Quarter

Quarter

Asset Quality Data

Nonperforming loans

$23,938

$29,493

$42,635

Assets acquired through foreclosure or repossession

469

1,033

679

Nonperforming assets

24,407

30,526

43,314

Troubled debt restructurings (nonaccruing)

11,150

10,203

11,598

Troubled debt restructurings (accruing)

14,901

15,605

13,423

Total troubled debt restructurings

26,051

25,808

25,021

Nonperforming loans / loans

0.42%

0.50%

0.76%

Nonperforming assets / loans plus OREO

0.42%

0.52%

0.77%

Allowance for loan losses / total portfolio loans

0.98%

0.97%

0.94%

Allowance for loan losses / nonperforming loans

236%

192%

124%

Net loan charge-offs (recoveries)

$1,304

$1,489

$6,605

Net loan charge-offs (recoveries)(annualized) / average loans

0.09%

0.10%

0.48%

For the Twelve Months Ended December 31,

(dollars in thousands)

2017

2016

Asset Quality Data

Net loan charge-offs (recoveries)

$10,268

$13,337

Net loan charge-offs (recoveries) / average loans

0.18%

0.25%

 

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

2017

2017

2016

Fourth

Third

Fourth

Quarter

Quarter

Quarter

(1) Tangible Book Value (non-GAAP)

Total shareholders’ equity

$884,031

$887,576

$841,956

 Less: goodwill and other intangible assets

(295,347)

(295,627)

(296,581)

Tax effect of other intangible assets

1,287

1,385

1,719

Tangible common equity (non-GAAP)

$589,971

$593,334

$547,094

Common shares outstanding

34,972

34,979

34,913

Tangible book value (non-GAAP)

$16.87

$16.96

$15.67

(2) Return on Average Tangible Shareholders’ Equity (non-GAAP)

Net income (annualized)

$36,873

$90,144

$70,254

Plus: amortization of intangibles (annualized)

1,109

930

1,480

Tax effect of amortization of intangibles (annualized)

(388)

(326)

(518)

Net income before amortization of intangibles (annualized)

$37,594

$90,748

$71,216

Average total shareholders’ equity

$891,174

$881,014

$840,624

  Less: average goodwill and other intangible assets

(295,495)

(295,775)

(296,784)

Tax effect of average goodwill and other intangible assets

1,339

1,437

1,790

Average tangible equity (non-GAAP)

$597,018

$586,676

$545,630

Return on average tangible equity (non-GAAP)

6.30%

15.47%

13.05%

(3) Efficiency Ratio (non-GAAP)

Noninterest expense

$37,947

$36,553

$35,625

Net interest income per consolidated statements of net income

57,828

57,456

52,458

Less: securities (gains) losses, net

986

Plus: taxable equivalent adjustment

1,878

1,867

1,789

Net interest income (FTE) (non-GAAP)

$60,692

$59,323

$54,247

Noninterest income

12,650

13,551

12,922

Net interest income (FTE) (non-GAAP) plus noninterest income

73,342

72,874

67,169

Efficiency ratio (non-GAAP)

51.75%

50.16%

53.04%

(4) Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders’ equity

$884,031

$887,576

$841,956

 Less: goodwill and other intangible assets

(295,347)

(295,627)

(296,581)

Tax effect of goodwill and other intangible assets

1,287

1,385

1,719

Tangible common equity (non-GAAP)

$589,971

$593,334

$547,094

Total assets

$7,060,255

$7,170,179

$6,943,053

 Less: goodwill and other intangible assets

(295,347)

(295,627)

(296,581)

Tax effect of goodwill and other intangible assets

1,287

1,385

1,719

Tangible assets (non-GAAP)

$6,766,195

$6,875,937

$6,648,191

Tangible common equity to tangible assets (non-GAAP)

8.72%

8.63%

8.23%

(5) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income

$67,855

$66,723

$59,096

Less: interest expense

(10,027)

(9,267)

(6,638)

Net interest income per consolidated statements of net income

$57,828

$57,456

$52,458

Plus: taxable equivalent adjustment

1,878

1,867

1,789

Net interest income (FTE) (non-GAAP)

$59,706

$59,323

$54,247

Net interest income (FTE) (annualized)

$237,526

$235,358

$215,809

Average earning assets

$6,621,766

$6,561,670

$6,261,934

Net interest margin – (FTE) (non-GAAP)

3.58%

3.59%

3.45%

 

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

For the Twelve Months Ended December 31,

2017

2016

(6) Return on Average Tangible Shareholders’ Equity (non-GAAP)

Net income

$72,968

$71,392

Plus: amortization of intangibles

1,233

1,615

Tax effect of amortization of intangibles

(432)

(565)

Net income before amortization of intangibles

$73,769

$72,442

Average total shareholders’ equity

$872,130

$823,607

  Less: average goodwill and other intangible assets

(295,937)

(297,377)

Tax effect of average goodwill and other intangible assets

1,493

1,992

Average tangible equity (non-GAAP)

$577,686

$528,222

Return on average tangible equity (non-GAAP)

12.77%

13.71%

(7) Efficiency Ratio (non-GAAP)

Noninterest expense

$147,907

$143,232

Net interest income per consolidated statements of net income

225,733

203,259

Less: securities (gains) losses, net

(3,000)

Plus: taxable equivalent adjustment

7,493

7,043

Net interest income (FTE) (non-GAAP)

230,226

210,302

Noninterest income

55,462

54,635

Net interest income (FTE) (non-GAAP) plus noninterest income

$285,688

$264,937

Efficiency ratio (non-GAAP)

51.77%

54.06%

(8) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income

$260,642

$227,774

Less: interest expense

(34,909)

(24,515)

Net interest income per consolidated statements of net income

$225,733

$203,259

Plus: taxable equivalent adjustment

7,493

7,043

Net interest income (FTE) (non-GAAP)

$233,226

$210,302

Average earning assets

$6,549,821

$6,067,150

Net interest margin – (FTE) (non-GAAP)

3.56%

3.47%

 

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.

 

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited

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

Return on Average Assets

Net income

$9,294

$72,968

Plus: DTA re-measurement

13,433

13,433

Adjusted net Income (non-GAAP)

22,727

86,401

Adjusted net income (non-GAAP)(annualized)

$90,167

$86,401

Average assets

$7,134,162

$7,060,232

Plus: DTA re-measurement

2,336

589

Average assets (non-GAAP)

$7,136,498

$7,060,821

Return on average assets (non-GAAP)

1.26%

1.22%

Return on Average Shareholders’ Equity

Net income

$9,294

$72,968

Plus: DTA re-measurement

13,433

13,433

Adjusted net Income (non-GAAP)

22,727

86,401

Adjusted net income (non-GAAP)(annualized)

$90,167

$86,401

Average equity

$891,174

$872,130

Plus: DTA re-measurement

2,336

589

Average equity (non-GAAP)

$893,510

$872,719

Return on average equity (non-GAAP)

10.09%

9.90%

Return on Average Tangible Shareholders’ Equity

Net income

$9,294

$72,968

Plus: DTA re-measurement

13,433

13,433

Adjusted net Income (non-GAAP)

22,727

86,401

Adjusted net income (non-GAAP)(annualized)

$90,167

$86,401

Plus: amortization of intangibles (annualized)

1,109

1,233

Tax effect of amortization of intangibles (annualized)

(388)

(432)

Adjusted net income before amortization of intangibles (annualized)

$90,888

$87,202

Average total shareholders’ equity

$891,174

$872,130

Plus: DTA re-measurement

2,336

589

Less: average goodwill and other intangible assets

(295,495)

(295,937)

Tax effect of average goodwill and other intangible assets

1,339

1,493

Average tangible equity (non-GAAP)

$599,354

$578,275

Return on average tangible equity (non-GAAP)

15.16%

15.08%

 

 

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SOURCE S&T Bancorp, Inc.