First Quarter 2012 Filed by S&T Bancorp, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 of the Securities Exchange Act of 1934 Subject Company: S&T Bancorp, Inc Commission File No.: 000-12508 Exhibit 99.1 |
Todd Brice President and Chief Executive Officer Mark Kochvar Sr. EVP and Chief Financial Officer |
3 Forward Looking Statement and Risk Factor • 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. |
4 Non-GAAP Financial Measures • In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis, that S&T believes provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors’ understanding of S&T’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the respective Quarterly Reports on Forms 10-Q for S&T Bancorp, Inc. and subsidiaries. |
5 S&T Bancorp Corporate Profile |
6 Merger Overview S&T Bancorp, Inc. Mainline Bancorp, Inc. Gateway Bank of PA Total Assets $4,120.0 $235.8 $120.3 Gross Loans 3,132.6 133.7 101.5 Total Deposits 3,335.9 205.9 96.9 Total Equity 490.5 22.1 15.2 Book Value Per Share 17.44 56.72 8.84 Tangible Book Value Per Share 11.36 56.43 8.84 Total Branches 49 8 2 Date as of 12/31/11 Dollars in millions, except per share data |
Investor Highlights • Historically High Performing Bank • Experienced Management Team • Relationship Banking Model • Well-Positioned for Growth 7 |
8 * 2012 peer banks per 2012 proxy statement Common Return on Assets |
9 Common Return on Equity * 2012 peer banks per 2012 proxy statement |
10 Summary 2011 2010 2009 Net Income Available to Common Shareholders $39.7 $37.3 $2.0 Diluted Earnings per Common Share $1.41 $1.34 $0.07 Common Return on Average Assets 0.97% 0.90% 0.05% Common Return on Average Equity 6.78% 6.58% 0.37% Dollars in millions, except per share data |
11 Income Statement Dollars in millions, except per share data * Refer to appendix for reconciliation of Non-GAAP financial measures 2011 2010 2009 Net Interest Income – FTE * $141.5 $150.5 $151.2 Noninterest Income 44.2 46.9 43.7 Total Revenue 185.7 197.4 194.9 Noninterest Expense (103.9) (105.6) (108.1) Security (Losses) Gains (0.1) 0.3 (5.1) Provision for Loan Losses (15.6) (29.5) (72.4) Net Income Before Taxes 66.1 62.6 9.3 Taxes (18.8) (19.1) (1.4) Preferred Stock Dividends/Amortization (7.6) (6.2) (5.9) Net Income Available to Common Shareholders $ 39.7 $ 37.3 $ 2.0 Diluted Earnings per Common Share $ 1.41 $ 1.34 $ 0.07 |
12 Marcellus Shale Distribution |
Marcellus Activity in S&T’s Market Area Permits Issued Wells Drilled 2009 283 114 2010 358 170 2011 456 213 2012 * 169 40 * January – February 2012 Source: Pennsylvania DEP 13 |
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15 Quarterly Summary 2012 2011 2011 First Quarter Fourth Quarter First Quarter Net Income Available to Common Shareholders $3.5 $9.3 $4.7 Diluted Earnings per Common Share $0.12 $0.33 $0.17 Common Return on Average Assets * 0.34% 0.91% 0.47% Common Return on Average Equity * 2.82% 6.41% 3.31% Dollars in millions, except per share data * Annualized |
16 Income Statement Dollars in millions, except per share data * Refer to appendix for reconciliation of Non-GAAP financial measures 2012 2011 2011 First Quarter Fourth Quarter First Quarter Net Interest Income – FTE * $34.5 $35.1 $35.9 Noninterest Income 12.2 11.6 11.0 Total Revenue 46.7 46.7 46.9 Noninterest Expense (32.7) (26.7) (27.5) Security Gains 0.8 - - Provision for Loan Losses (9.3) (2.3) (10.6) Net Income Before Taxes 5.5 17.7 8.8 Taxes (2.0) (5.5) (2.5) Preferred Stock Dividends/Amortization - (2.9) (1.6) Net Income Available to Common Shareholders $ 3.5 $9.3 $4.7 Diluted Earnings per Common Share $ 0.12 $0.33 $0.17 |
17 Balance Sheet Dollars in millions Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 Securities $383 $376 $353 Interest Bearing Balances 333 209 59 Loans, Net 3,154 3,084 3,243 Other 461 451 435 Total Assets $4,331 $4,120 $4,090 Deposits $3,522 $3,336 $3,306 Borrowings 238 228 158 Other Liabilities 67 65 46 Equity 504 491 580 Total Liabilities & Equity $4,331 $4,120 $4,090 |
18 Loan Portfolio Dollars in millions Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 Consumer Home Equity $ 442 $ 411 $ 436 Residential Mortgage 383 359 343 Installment and Other Consumer 82 67 71 Construction 2 3 4 Total Consumer 909 840 854 Commercial Commercial Real Estate 1,417 1,415 1,489 Commercial & Industrial 703 686 714 Construction 169 189 245 Total Commercial 2,289 2,290 2,448 Total Portfolio Loans 3,198 3,130 3,302 Total Loans Held for Sale 3 3 2 Total Loans $3,201 $3,133 $ 3,304 |
19 Asset Quality * YTD March 31, 2012 annualized Mar. 31, December 31, 2012 2011 2010 2009 2008 Nonperforming Loans / Total Loans 2.01% 1.79% 1.90% 2.67% 1.19% Nonperforming Assets / Total Loans Plus OREO 2.12 1.92 2.07 2.80 1.21 Net Charge-offs / Average Loans 1.32 * 0.56 1.11 1.60 0.31 Loan Loss Reserve / Total Loans 1.49 1.56 1.53 1.75 1.20 Loan Loss Reserve / Nonperforming Loans 74 87 80 66 101 |
20 Nonperforming Loans 81 2.30 52.5 Total Commercial 17 6.78 11.4 Construction 13 1.18 8.3 Commercial & Industrial 51 2.32 32.8 Commercial Real Estate Commercial 19 1.32 12.0 Total Consumer - 8.19 0.2 Construction - - - Installment and Other Consumer 13 2.16 8.3 Residential Mortgage 6 0.79 $ 3.5 Home Equity % of Total NPL Consumer % NPL Mar. 31, 2012 Total Nonperforming Loans 100 2.02 $ 64.5 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 $6.0 USDA Guarantee $3.5 |
21 Construction & CRE by Type Type Mar. 31, 2012 % of Total Mar. 31, 2011 Change Retail/Strip Malls $ 290 18 $ 297 $( 7) Offices 203 13 226 (23) Hotels 195 12 195 - Residential Rental Properties 183 12 238 (55) Healthcare/Education 104 7 108 ( 4) Manuf/Industrial/Warehouse 102 6 118 (16) RE Develop – CL 95 6 93 2 Flex/Mixed Used 90 6 113 (23) RE Develop – Residential 55 3 82 (27) Miscellaneous 269 17 264 5 Total $1,586 100 $1,734 ($148) Dollars in millions |
22 Construction & CRE – NPL by Type Type Mar. 31, 2012 % NPL % of Total NPL Retail/Strip Malls $ 3.3 1.12 8 Offices 4.0 1.95 9 Hotels 0.7 0.36 2 Residential Rental Properties 3.6 1.97 8 Healthcare/Education 0.6 0.57 1 Manuf/Industrial/Warehouse 4.6 4.50 10 RE Develop – CL 2.8 2.93 6 Flex/Mixed Used - - - RE Develop – Residential 8.8 16.18 20 Miscellaneous 15.9 5.91 36 Total $44.3 2.79 100 Dollars in millions |
23 Net Interest Margin 2012 2011 2011 First Quarter Fourth Quarter First Quarter Securities - FTE 3.29% 3.36% 3.53% Interest Bearing Balances-FTE 0.20 0.28 0.23 Loans - FTE 4.74 4.83 4.92 Total Earning Assets 4.31 4.45 4.72 Deposits 0.75 0.83 0.97 Borrowings 1.82 2.43 3.14 Total Costing Liabilities 0.84 0.93 1.10 Net Interest Margin – FTE * 3.69 3.79 3.92 * Refer to appendix for reconciliation of Non-GAAP financial measures |
24 Noninterest Income Dollars in millions 2012 2011 2011 First Quarter Fourth Quarter First Quarter Community Banking $ 5.8 $ 6.1 $ 5.6 Wealth Management 2.4 2.0 2.1 Insurance 2.2 1.8 2.1 Letters of Credit / Loan 0.7 0.6 0.5 Mortgage Banking 0.7 0.8 0.6 Other 0.4 0.3 0.1 Total $12.2 $11.6 $11.0 |
25 Securities Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 Agencies $160 $143 $125 Agency CMO 59 65 74 Agency MBS 46 49 59 Municipals 87 89 62 Equities 12 12 12 FHLB Stock 19 18 21 Total $383 $376 $353 All securities are classified as available-for sale Dollars in millions |
26 Deposits Dollars in millions Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 Noninterest-bearing Demand $ 860 $ 819 $ 803 Interest-bearing Demand 306 283 286 Money Market 291 278 241 Savings 883 803 755 Certificates of Deposit < $100K 807 795 781 Certificates Of Deposit > $100K 375 358 440 Total $3,522 $3,336 $3,306 |
27 Capital Ratios Mar. 31, 2012 Dec. 31, 2011 Mar. 31, 2011 ** Well- Capitalized Leverage 9.20% 9.17% 11.19% 5.00% Tier 1 – Risk-Based Capital 11.62 11.63 13.54 6.00 Total – Risk-Based Capital 15.14 15.20 16.99 10.00 Tangible Common Equity / Tangible Assets * 7.87 8.09 7.70 NA ** Includes CPP of $108.7 million * Refer to appendix for reconciliation of Non-GAAP financial measures |
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2011 2010 2009 Interest Income per Consolidated Statements of Income $165.1 $180.4 $195.1 Adjustment to Fully Taxable-equivalent Basis 4.1 4.7 5.2 Interest Income Adjusted to Fully Taxable-equivalent Basis 169.2 185.1 200.3 Interest Expense per Consolidated Statements of Income 27.7 34.6 49.1 Net Interest Income Adjusted to Fully Taxable- equivalent Basis (non-GAAP) $141.5 $150.5 $151.2 APPENDIX – Non-GAAP Measures Dollars in millions 29 |
2012 2011 2011 First Quarter Fourth Quarter First Quarter Interest Income per Consolidated Statements of Income $39.1 $40.2 $44.2 Adjustment to Fully Taxable-equivalent Basis 1.2 1.1 1.0 Interest Income Adjusted to Fully Taxable-equivalent Basis 40.3 41.3 43.2 Interest Expense per Consolidated Statements of Income 5.8 6.2 7.3 Net Interest Income Adjusted to Fully Taxable- equivalent Basis (non-GAAP) $34.5 $35.1 $35.9 APPENDIX – Non-GAAP Measures Dollars in millions 30 |
Mar. 31 2012 Dec. 31, 2011 Mar. 31, 2011 Tangible Common Equity/Tangible Assets Common Equity/Assets (GAAP Basis) 11.65% 11.91% 11.58% Effect of Excluding Intangible Assets -3.78% -3.82% -3.88% Tangible Common Equity/Tangible Assets 7.87% 8.09% 7.70% APPENDIX – Non-GAAP Measures /cont./ Dollars in millions 31 |