Third Quarter 2010 Exhibit 99.1 |
Todd Brice President and Chief Executive Officer Mark Kochvar Sr. EVP and Chief Financial Officer |
3 Forward-Looking Statement and Risk Factors • This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking statements include, among others, statements regarding trends, strategies, plans, beliefs, intentions, expectations, goals and opportunities. Forward-looking statements are typically identified by words or phrases such as believe, expect, anticipate, intend, estimate, assume, strategy, plan, outlook, outcome, continue, remain, trend and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could, may or similar expressions. Actual results and performance could differ materially from those anticipated by these forward-looking statements. Factors that could cause such a difference include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, loan demand, asset quality, including real estate and other collateral values, and competition. • S&T cautions that these forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. These forward-looking statements speak only as of the date hereof, and S&T assumes no duty to update forward-looking statements. Subsequent written or oral statements attributable to S&T or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements contained herein and those in S&T’s reports previously and subsequently filed with the Securities and Exchange Commission. |
S&T Bancorp Corporate Profile 4 |
Investor Highlights • Historically High Performing Bank • Experienced Management Team • Relationship Banking Model • Well-Positioned for Growth 5 |
6 Select PA Bank Holding Companies 6.35 0.86 4.1 S&T Bancorp 0.12 0.01 6.1 FCF 6.48 0.77 8.8 FNB (0.68) (0.08) 9.2 National Penn 0.19 0.03 13.9 Susquehanna 4.81% 0.59% $16.6 Fulton ROE * ROA * Assets Data Source: SNL YTD June 30, 2010 / * Annualized using net income available to common shareholders Dollars in billions |
7 Stock Performance 18.71 5.55 8.80 6.46 8.45 $ 9.34 Price 1.83 1.13 S&T Bancorp 98 73 FCF 204 95 FNB 130 88 National Penn 117 55 Susquehanna 140% 99% Fulton P/TBV P/BV Data Source: Highline Financial 10/22/10 |
Marcellus Shale Distribution 8 |
Marcellus Shale Impact • Fully developed, the Marcellus Shale has the potential to be the second largest natural gas field in the world. • The natural gas found in the Marcellus could be equivalent to the energy content of 87 billion barrels of oil, enough to meet the demand of the entire world for nearly three years. • Potential to create thousands of jobs and billions in annual revenue for the state. 9 Source: www.iogapa.org |
10 Quarterly Summary 5.60% 0.76% $0.28 $7.9 Second Quarter 2010 7.61% 1.06% $0.39 $10.9 Third Quarter 2010 2009 Third Quarter Net Income $7.7 Diluted Common Earnings per Share $0.28 Common Return on Average Assets * 0.73% Common Return on Average Equity * 5.67% Dollars in millions * Annualized |
11 Income Statement Dollars in millions $0.39 $10.9 (1.6) (4.7) 17.2 (8.3) - (24.9) 50.4 12.3 $38.1 Third Quarter 2010 2010 2009 Second Quarter Third Quarter Net Interest Income – FTE $37.8 $38.1 Noninterest Income 11.4 10.3 Total Revenue 49.2 48.4 Noninterest Expense (25.7) (24.8) Security Gains (Losses) 0.1 (2.1) Provision for Loan Losses (9.1) (8.4) Net Income Before Taxes 14.5 13.1 Taxes (5.1) (3.9) Preferred Stock Dividends (1.5) (1.5) Net Income Available to Common Shareholders $7.9 $7.7 Diluted Common Earnings per Share $0.28 $0.28 |
12 Net Interest Margin 4.09 1.21 2.90 1.08 4.99 5.10 3.82% Third Quarter 2010 2010 2009 Second Quarter Third Quarter Securities - FTE 3.89% 4.11% Loans - FTE 5.12 5.25 Total Earning Assets 5.01 5.13 Deposits 1.15 1.37 Borrowings 2.79 2.71 Total Costing Liabilities 1.28 1.54 Net Interest Margin - FTE 4.05 3.94 |
13 Noninterest Income Dollars in millions $12.3 0.1 1.6 0.6 2.1 1.9 $ 6.0 Third Quarter 2010 2010 2009 Second Quarter Third Quarter Community Banking $ 6.6 $ 5.7 Wealth Management 1.9 1.9 Insurance 2.0 2.0 Letters of Credit / Loan 0.8 0.8 Mortgage Banking 0.2 - Other (0.1) (0.1) Total $11.4 $10.3 |
14 Balance Sheet Dollars in millions $4,098 575 49 169 $3,305 $4,098 482 3,315 $301 Sept. 30, 2010 June 30, 2010 Sept. 30, 2009 Securities $340 $390 Loans, Net 3,343 3,385 Other 456 433 Total Assets $4,139 $4,208 Deposits $3,297 $3,280 Borrowings 227 331 Other 49 55 Equity 566 542 Total Liabilities & Equity $4,139 $4,208 |
15 Loan Portfolio Dollars in millions $3,371 $2,471 306 728 $1,437 $900 7 76 366 $451 Sept. 30, 2010 June 30, 2010 Sept. 30, 2009 Consumer Home Equity $451 $459 Residential Mortgage 364 368 Consumer Installment 77 81 Construction 10 12 Total Consumer $902 $920 Commercial Commercial Real Estate $1,424 $1,425 Commercial & Industrial 734 748 Construction 337 353 Total Commercial $2,495 $2,526 Total Loans $3,397 $3,446 |
16 Asset Quality * YTD September 30, 2010 Annualized 75 1.67 0.99 2.45 2.23% 2010 Sept. 30, 1.25 1.23 1.20 1.75 Loan Loss Reserve / Total Loans December 31, 101 0.31 1.21 1.19% 2008 66 1.60 2.80 2.67% 2009 2007 2006 Nonperforming Loans / Total Loans 0.60% 0.74% Nonperforming Assets / Total Loans Plus OREO 0.62 0.76 Net Charge-offs / Average Loans * 0.17 0.49 Loan Loss Reserve / Nonperforming Loans 204 167 |
Nonperforming Loans 90 2.75 $ 67.9 Total Commercial 10 2.48 7.6 Construction 11 1.16 8.5 Commercial & Industrial 69 3.60 $ 51.8 Commercial Real Estate Commercial 10 0.83 $ 7.4 Total Consumer 1 7.63 0.5 Construction - 0.12 0.1 Consumer Installment 7 1.41 5.1 Residential Mortgage 2 0.38 $ 1.7 Home Equity % of Total NPL Consumer % NPL Sept. 30, 2010 Total Nonperforming Loans 100 2.23 $ 75.3 Nonperforming Loans (NPL) are loans where collection of interest or principal is doubtful, or generally when interest or principal payments are 90 days or more past due. Dollars in millions Specific reserves $10.5 USDA Guarantee $6.8 17 |
Construction & CRE by Type (4) 97 5 93 RE Develop – Residential (14) 242 13 228 Offices 100 16 5 6 6 8 11 13 17 $1,743 273 92 112 103 129 196 218 $ 299 ($ 35) $1,778 Total (11) 284 Miscellaneous (4) 96 Healthcare/Education 102 Flex/Mixed Use (1) 104 RE Develop – CL 3 126 Manuf/Industrial/Warehouse 43 153 Hotels (44) 262 Residential Rental Properties ($13) $ 312 Retail/Strip Malls Change Type 18 Dollars in millions Sept. 30, 2010 % of Total Sept. 30, 2009 10 |
Construction & CRE – NPL by Type 8 5.35 5.0 RE Develop – Residential 5 1.33 3.0 Offices 7 1.29 $ 3.9 Retail/Strip Malls 100 3.41 $59.4 Total 26 5.64 15.4 Miscellaneous 7 4.31 4.0 Healthcare/Education 5 2.84 3.1 Flex/Mixed Use 15 8.90 9.1 RE Develop – CL 1 0.43 0.6 Manuf/Industrial/Warehouse 4 1.31 2.6 Hotels 22 5.79 12.7 Residential Rental Properties % of Total NPL Type % NPL Sept. 30, 2010 19 Dollars in millions |
Construction & CRE by Location 1 30 2 31 Southwest Region 10 12 1 22 West Virginia - 13 1 13 Western Region - 12 1 12 Mid-Atlantic Region 100 1 1 3 1 4 6 79 $1,743 11 24 55 20 70 102 $1,383 ($35) $1,778 Total - 11 New England - 24 Midwest Region 6 49 Southeast Region 7 13 Tennessee (4) 74 Ohio 90 New York ($67) $1,450 Pennsylvania Change Location 20 Dollars in millions Sept. 30, 2009 % of Total Sept. 30, 2010 12 |
Construction & CRE – NPL by Location 2 4.60 1.4 Southwest Region - - - West Virginia 78 3.31 $45.7 Pennsylvania 13 71.87 8.0 New England 100 3.41 $59.4 Total - - - Mid-Atlantic Region - - - Western Region - - - Midwest Region 4.48 2.5 Southeast Region - - - Tennessee - - - Ohio 3 1.77 1.8 New York % of Total NPL Location % NPL Sept. 30, 2010 21 Dollars in millions 4 |
22 Securities $301 23 11 73 49 45 $100 Third Quarter 2010 13 11 Equities 2010 2009 Second Quarter Third Quarter Agencies $124 $123 Agency CMO 50 65 Agency MBS 54 67 Municipals 78 99 FHLB Stock 23 23 Total $340 $390 All securities are classified as available-for sale Dollars in millions |
23 Deposits Dollars in millions 921 845 823 Certificates of Deposit < $100K 732 743 746 Savings 2010 2010 2009 Third Quarter Second Quarter Third Quarter Noninterest-bearing Demand $ 744 $ 733 $ 674 Interest-bearing Demand 277 260 241 Money Market 247 251 239 Certificates Of Deposit > $100K 468 465 473 Total $3,305 $3,297 $3,280 |
24 Borrowings Dollars in millions 70 70 70 Subordinated Debt 2010 2010 2009 Third Quarter Second Quarter Third Quarter Repos and FFP $ 48 $ 44 $ 61 Short-term Borrowings - 52 83 Long-term Borrowings 30 40 96 Trust Preferred 21 21 21 Total $169 $227 $331 |
25 Capital Sept. 30 2010 June 30 2010 Sept. 30 2009 Well- Capitalized Leverage * 10.92% 10.64% 9.92% 5.00% Tier 1 – Risk-Based Capital * 12.97 12.52 11.57 6.00 Total – Risk-Based Capital * 16.35 15.87 14.86 10.00 Tangible Common Equity / Tangible Assets 7.53 7.23 6.48 NA * Includes CPP of $108.7 million |
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S&T Strategy Map 27 One Customer at a Time Culture of Collaboration Integration Based on Customer Needs Market Composition Develop & Align Infrastructure Shareholder Value High Performance |