First Quarter 2013 Exhibit 99.1 |
Todd Brice President and Chief Executive Officer Mark Kochvar Sr. EVP and Chief Financial Officer |
Forward Looking Statement and Risk Factor 3 • 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 Corporate Profile |
6 * 2012 peer banks per 2012 proxy statement Common Return on Assets STBA Peer Bank Median* PA Banks BHC $3-10B |
7 Common Return on Equity * 2012 peer banks per 2012 proxy statement STBA Peer Bank Median* PA Banks BHC $3-10 B |
8 Summary 2012 2011 2010 Net Income Available to Common Shareholders $34.2 $39.7 $37.3 Diluted Earnings per Common Share $ 1.18 $ 1.41 $ 1.34 Common Return on Average Assets 0.79% 0.97% 0.90% Common Return on Average Equity 6.62% 6.78% 6.58% Dollars in millions |
9 4 Lines of Business Insurance Wealth Management Retail Banking Commercial Banking |
Commercial Banking • 33 commercial lenders • 14 business bankers • Privately held companies with sales up to $150 million • $1-7 million preferred facility • Growing pipeline • Adding producers 10 |
Retail Banking • Over 100,000 Households • 57 branches • Average branch size of $61.5 million • Home Center • 92% of customers highly satisfied • Over 70,000 customers enrolled in online banking • Over 12,500 customers enrolled in Mobile Banking 11 |
Wealth Management • $1.7 billion AUM • 3 Divisions – S&T Trust – S&T Financial Services – RIA/Stewart Capital • Annual revenue of $9.8 million • Adding producers 12 |
Insurance • Purchased Evergreen Insurance in 2002 • Full service agency – Commercial P&C (65%) – Group Life and Health (20%) – Personal Lines (15%) • Annual revenue of $5.2 million 13 |
14 Quarterly Summary 2013 2012 2012 First Quarter Fourth Quarter First Quarter Net Income Available to Common Shareholders $12.3 $9.5 $3.5 Diluted Earnings per Common Share $0.41 $0.32 $0.12 Common Return on Average Assets * 1.12% 0.86% 0.34% Common Return on Average Equity * 9.25% 7.05% 2.82% Dollars in millions, except per share data * Annualized |
15 Income Statement Dollars in millions, except per share data * Refer to appendix for reconciliation of Non-GAAP financial measures 2013 2012 2012 First Quarter Fourth Quarter First Quarter Net Interest Income – FTE * $34.8 $35.4 $34.5 Noninterest Income 11.7 11.5 12.2 Total Revenue 46.5 46.9 46.7 Noninterest Expense (31.6) (29.7) (32.7) Gain on Sale of Merchant Card Servicing Business 3.1 - - Security Gains (Losses) - - 0.8 Provision for Loan Losses (2.3) (4.2) (9.3) Net Income Before Taxes 15.7 13.0 5.5 Taxes (3.4) (3.5) (2.0) Net Income Available to Common Shareholders $12.3 $9.5 $3.5 Diluted Earnings per Common Share $ 0.41 $0.32 $0.12 |
16 Balance Sheet Dollars in millions March 31, 2013 December 31, 2012 March 31, 2012 Securities $ 469 $ 452 $ 363 Interest Bearing Balances 215 257 333 Loans, Net 3,339 3,323 3,154 Other 457 495 481 Total Assets $4,480 $4,527 $4,331 Deposits $3,639 $3,638 $3,522 Borrowings 228 263 238 Other Liabilities 68 89 67 Equity 545 537 504 Total Liabilities & Equity $4,480 $4,527 $4,331 |
17 Loan Portfolio Dollars in millions March 31, 2013 December 31, 2012 March 31, 2012 Consumer Residential Mortgage $ 443 $ 427 $ 383 Home Equity 416 431 $ 442 Installment and Other Consumer 69 74 82 Construction 3 3 2 Total Consumer 931 935 909 Commercial Commercial Real Estate 1,480 1,452 1,417 Commercial & Industrial 806 792 703 Construction 165 168 169 Total Commercial 2,451 2,412 2,289 Total Portfolio Loans 3,382 3,347 3,198 Total Loans Held for Sale 3 22 3 Total Loans $3,385 $3,369 $ 3,201 |
18 Asset Quality * QTD annualized March 31, 2013 December 31, 2012 March 31, 2012 Nonperforming Loans / Total Loans 1.37% 1.63% 2.01% Nonperforming Assets / Total Loans Plus OREO 1.39 1.66 2.12 Net Charge-offs / Average Loans* 0.34 0.49 1.32 Loan Loss Reserve / Total Loans 1.36 1.38 1.49 Loan Loss Reserve / Nonperforming Loans 99 85 74 |
19 Nonperforming Loans 52.5 1.48 36.4 Total Commercial 11.4 3.14 5.2 Construction 8.3 0.67 5.4 Commercial & Industrial 32.8 1.75 25.8 Commercial Real Estate Commercial 12.0 1.06 9.9 Total Consumer 0.2 7.02 0.2 Construction - 0.03 - Installment and Other Consumer 3.5 0.97 4.0 Home Equity $ 8.3 1.27% $ 5.7 Residential Mortgage March 31, 2012 Consumer % NPL March 31, 2013 Total Nonperforming Loans $64.5 1.37% $46.3 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 $ 6.0 $ 0.2 Specific Reserves |
20 Net Interest Margin 2013 2012 2012 First Quarter Fourth Quarter First Quarter Securities - FTE 2.65% 2.76% 3.29% Interest Bearing Deposits-FTE 0.23 0.29 0.20 Loans - FTE 4.32 4.44 4.74 Total Earning Assets-FTE 3.91 3.97 4.31 Deposits 0.49 0.53 0.75 Borrowings 1.61 2.16 1.82 Total Costing Liabilities 0.58 0.64 0.84 Net Interest Margin – FTE * 3.49% 3.51% 3.64% * Refer to appendix for reconciliation of Non-GAAP financial measures |
21 Noninterest Income Dollars in millions 2013 2012 2012 First Quarter Fourth Quarter First Quarter Wealth Management $ 2.6 $ 2.4 $ 2.4 Debit and Credit Card 2.5 2.7 2.7 Service Charges on Deposit Accounts 2.4 2.6 2.4 Insurance 1.8 1.2 1.7 Mortgage Banking 0.5 0.7 0.7 Other 1.9 1.9 2.3 Total $11.7 $11.5 $12.2 |
22 Securities March 31, 2013 December 31, 2012 March 31, 2012 Agencies $231 $212 $160 Agency CMO 52 58 59 Agency Residential MBS 47 51 46 Agency Commercial MBS 22 10 - Municipals 108 113 87 Equities 9 8 11 Total $469 $452 $363 All securities are classified as available-for sale Dollars in millions |
23 Deposits Dollars in millions March 31, 2013 December 31, 2012 March 31, 2012 Noninterest-bearing Demand $ 951 $ 961 $ 860 Interest-bearing Demand 305 317 306 Money Market 327 361 291 Savings 993 966 883 Certificates of Deposit < $100K 655 665 807 Certificates Of Deposit > $100K 408 368 375 Total $3,639 $3,638 $3,522 |
24 Capital Ratios March 31, 2013 December 31, 2012 March 31, 2012 Well- Capitalized Leverage 9.42% 9.31% 9.20% 5.00% Tier 1 – Risk-Based Capital 12.20 11.98 11.62 6.00 Total – Risk-Based Capital 15.60 15.39 15.14 10.00 Tangible Common Equity / Tangible Assets * 8.46 8.20 7.87 NA * Refer to appendix for reconciliation of Non-GAAP financial measures |
Growth – Merger & Acquisition Activity • 2012 - Gateway Bank of Pennsylvania • 2012 - Mainline Bancorp • 2008 – IBT Bancorp • 2002 - Peoples Financial Corp • 1997 - Peoples Bank of Unity • 1991 - Atlantic Financial Savings Bank • 1991 - Vanguard Savings Bank 25 |
26 The Right Size • Big Enough to: – Provide full complement of products and services – Access technology – Access Capital Markets – Attract talent – Expand – Mergers and Acquisitions/DeNovo • Small Enough to: – Stay close to our customers – Understand our markets – Be responsive |
Marcellus Shale Distribution 27 |
2013 First Quarter 2012 Fourth Quarter 2012 First Quarter Interest Income per Consolidated Statements of Income $37.8 $38.9 $39.1 Adjustment to Fully Taxable-equivalent Basis 1.2 1.1 1.2 Interest Income Adjusted to Fully Taxable-equivalent Basis 39.0 40.0 40.3 Interest Expense per Consolidated Statements of Income 4.2 4.6 5.8 Net Interest Income Adjusted to Fully Taxable- equivalent Basis (non-GAAP) $34.8 $35.4 $34.5 APPENDIX – Non-GAAP Measures Dollars in millions 28 |
2013 2012 2012 First Quarter Fourth Quarter First Quarter Securities 2.27% 2.32% 2.83% Adjustment to Fully Taxable-equivalent Basis 0.38 0.44 0.46 Securities Adjusted to Fully Taxable-equivalent Basis 2.65 2.76 3.29 Loans 4.23 4.36 4.65 Adjustment to Fully Taxable-equivalent Basis 0.09 0.08 0.09 Loans Adjusted to Fully Taxable-equivalent Basis 4.32 4.44 4.74 Total Earning Assets 3.79 3.86 4.19 Adjustment to Fully Taxable-Equivalent Basis 0.12 0.11 0.12 Total Earning Assets Adjusted to Fully Taxable-equivalent Basis 3.91 3.97 4.31 Net Interest Margin 3.37 3.40 3.57 Adjustment to Fully Taxable-Equivalent Basis 0.12 0.11 0.12 Net Interest Margin Adjusted to Fully Taxable-equivalent Basis 3.49 3.51 3.69 APPENDIX – Non-GAAP Measures /cont./ 29 |
March 31, 2013 December 31, 2012 March 31, 2012 Tangible Common Equity/Tangible Assets Common Equity/Assets (GAAP Basis) 12.16% 11.87% 11.65% Effect of Excluding Intangible Assets -3.70% -3.67% -3.78% Tangible Common Equity/Tangible Assets 8.46% 8.20% 7.87% APPENDIX – Non-GAAP Measures /cont./ 30 |