![]() Exhibit 99.1 Third Quarter 2013 |
![]() Todd Brice President and Chief Executive Officer Mark Kochvar Sr. EVP and Chief Financial Officer |
![]() 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. 3 |
![]() 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. S&T believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which 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 * Peer banks per 2013 proxy statement ** QTD annualized Common Return on Assets PA Banks Peer Bank Median* STBA BHC $3-10B - 0.5% 0.0% 0.5% 1.0% 1.5% 2.0% - 0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2008 2009 2010 2011 2012 2Q 2013** |
![]() 7 Common Return on Equity * Peer banks per 2013 proxy statement ** QTD annualized Peer Bank Median* STBA BHC $3-10 B PA Banks -5% 0% 5% 10% 15% 20% -5% 0% 5% 10% 15% 20% 2008 2009 2010 2011 2012 2Q2013** |
![]() 8 4 Lines of Business Retail Banking Commercial Banking Wealth Management Insurance |
![]() Commercial Banking • 37 commercial lenders • 14 business bankers • Privately held companies with sales up to $150 million • Adding producers; 9 new lenders this year • Northeast Ohio loan production office, August 2012 9 |
![]() Retail Banking • Over 110,000 households • 55 branches • Average branch size of $63.4 million • Strong markets – Market deposit growth projections for 75% of branches exceeds National and State averages. • Over 80,000 customers enrolled in online banking • Over 16,000 customers enrolled in mobile banking 10 |
![]() Wealth Management • $1.7 billion AUM • 3 divisions – S&T Trust – S&T Financial Services – RIA/Stewart Capital • Annual revenue of $10.9 million; double digit growth • Mineral management capabilities 11 |
![]() S&T-Evergreen Insurance • Full service agency – Commercial P&C (75%) – Group life and health (13%) – Personal lines (12%) • Annual revenue of $5.7 million • Focus on increasing penetration of S&T customer base 12 |
![]() 13 Quarterly Summary 2013 2013 2012 Third Quarter Second Quarter Third Quarter Net Income $12.2 $14.1 $12.6 Diluted Earnings per Share $0.41 $0.47 $0.43 Return on Average Assets * 1.07% 1.26% 1.15% Return on Average Shareholders Equity * 8.86% 10.36% 9.56% Dollars in millions, except per share data * QTD annualized |
![]() 14 Income Statement Dollars in millions, except per share data 2013 2013 2012 Third Quarter Second Quarter Third Quarter Net Interest Income $35.2 $34.6 $33.8 Noninterest Income 12.5 12.9 14.7 Total Revenue 47.7 47.5 48.5 Noninterest Expense (27.9) (28.4) (31.0) Provision for Loan Losses (3.4) (1.0) (2.3) Net Income Before Taxes 16.4 18.1 15.2 Taxes (4.2) (4.0) (2.6) Net Income $12.2 $14.1 $12.6 Diluted Earnings per Share $ 0.41 $ 0.47 $0.43 |
![]() 15 Balance Sheet Dollars in millions September 30, 2013 June 30, 2013 September 30, 2012 Securities $ 488 $ 480 $ 415 Interest-bearing Balances 160 191 285 Loans, Net 3,467 3,400 3,236 Other 473 458 486 Total Assets $4,588 $4,529 $4,422 Deposits $3,694 $3,649 $3,594 Borrowings 277 268 206 Other Liabilities 62 65 88 Equity 555 547 534 Total Liabilities & Equity $4,588 $4,529 $4,422 |
![]() 16 Loan Portfolio Dollars in millions September 30, 2013 June 30, 2013 September 30, 2012 Consumer Residential Mortgage $ 477 $ 463 $ 410 Home Equity 413 414 447 Installment and Other Consumer 69 68 75 Construction 4 3 2 Total Consumer 963 948 934 Commercial Commercial Real Estate 1,568 1,501 1,439 Commercial & Industrial 828 827 748 Construction 152 167 158 Total Commercial 2,548 2,495 2,345 Total Portfolio Loans 3,511 3,443 3,279 Total Loans Held for Sale 4 3 3 Total Loans $3,515 $3,446 $ 3,282 |
![]() 17 Asset Quality * QTD annualized September 30, 2013 June 30, 2013 September 30, 2012 Nonaccrual Loans / Total Loans 1.04% 1.10% 2.01% Nonperforming Assets / Total Loans Plus OREO 1.05 1.11 2.06 Net Charge-offs / Average Loans* 0.18 0.10 0.33 Allowance for Loan Losses/ Total Loans 1.37 1.34 1.41 Allowance for Loan Losses/ Nonaccrual Loans 132 122 70 |
![]() 18 Nonperforming Loans 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 54.1 1.18 30.1 Total Commercial 14.4 6.36 9.7 Construction 6.9 0.47 3.9 Commercial & Industrial 32.8 1.05 16.5 Commercial Real Estate Commercial 12.0 0.66 6.3 Total Consumer 0.4 - Construction - - - Installment and Other Consumer 4.0 0.80 3.3 Home Equity $ 7.6 0.63% $ 3.0 Residential Mortgage September 30, 2012 Consumer % NPL September 30, 2013 Total Nonaccrual Loans $66.1 1.04% $36.4 $ 2.9 $ 3.3 Specific Reserves - |
![]() 19 Net Interest Margin 2013 2013 2012 Third Quarter Second Quarter Third Quarter Securities – FTE* 2.58% 2.58% 2.89% Interest Bearing Deposits 0.27 0.28 0.28 Loans – FTE* 4.16 4.28 4.52 Total Earning Assets-FTE * 3.82 3.89 4.00 Deposits 0.40 0.44 0.59 Borrowings 0.91 1.65 1.92 Total Costing Liabilities 0.44 0.54 0.70 Net Interest Margin * 3.50% 3.51% 3.50% * Refer to appendix for reconciliation of Non-GAAP financial measures |
![]() 20 Noninterest Income Dollars in millions 2013 2013 2012 Third Quarter Second Quarter Third Quarter Debit and Credit Card Fees $ 2.8 $ 3.2 $ 3.0 Service Charges on Deposit Accounts 2.8 2.5 2.6 Wealth Management Fees 2.7 2.8 2.4 Insurance Fees 1.7 1.6 1.7 Mortgage Banking 0.3 0.9 0.8 Other 2.2 1.9 2.1 Total $12.5 $12.9 $12.6 |
![]() 21 Securities September 30, 2013 June 30, 2013 September 30, 2012 Agencies $237 $233 $192 Agency CMO 45 47 75 Agency Residential MBS 51 54 40 Agency Commercial MBS 31 31 - Municipals 115 106 99 Equities 9 9 9 Total $488 $480 $415 All securities are classified as available-for sale Dollars in millions |
![]() 22 Deposits Dollars in millions September 30, 2013 June 30, 2013 September 30, 2012 Noninterest-bearing Demand $ 974 $ 948 $ 928 Interest-bearing Demand 324 297 322 Money Market 308 329 317 Savings 1,039 1,004 949 Certificates of Deposit < $100K 634 636 737 Certificates Of Deposit > $100K 415 435 341 Total $3,694 $3,649 $3,594 |
![]() 23 Capital Ratios September 30, 2013 June 30, 2013 September 30, 2012 Well- Capitalized Leverage 9.61% 9.54% 9.27% 5.00% Tier 1 – Risk-Based Capital 12.26 12.28 12.01 6.00 Total – Risk-Based Capital 14.27 14.30 15.45 10.00 Tangible Common Equity / Tangible Assets * 8.52 8.43 8.32 NA * Refer to appendix for reconciliation of Non-GAAP financial measures |
![]() Growth – Merger & Acquisition Activity • 2012 - Gateway Bank of Pennsylvania $ 126 • 2012 - Mainline Bancorp 242 • 2008 - IBT Bancorp 827 • 2002 - Peoples Financial Corp 344 • 1998 - Branch Purchase from Mellon 39 • 1997 - Peoples Bank of Unity 287 • 1991 - Atlantic Financial Savings Bank 100 • 1991 - Vanguard Savings Bank 112 24 Assets/Deposits Acquired $2,077 Dollars in Millions |
![]() 25 The Right Size • Big enough to: – Provide full complement of products and services – Access technology – Access capital markets – Attract talent – Expand – mergers and acquisitions/de novo • Small enough to: – Stay close to our customers – Understand our markets – Be responsive |
![]() 26 Marcellus Shale Distribution |
![]() STBA Investment Thesis • Stable Western PA economy • Long-term Marcellus Shale benefit • Renewed emphasis on loan growth • Improved asset quality • Expense discipline • Opportunistic acquirer • Historically high performing 27 |
![]() 2013 2013 2012 Third Quarter Second Quarter Third Quarter Securities 2.18% 2.19% 2.44% Adjustment to Fully Taxable-equivalent Basis 0.40 0.39 0.45 Securities Adjusted to Fully Taxable-equivalent Basis 2.58 2.58 2.89 Loans 4.08 4.20 4.44 Adjustment to Fully Taxable-equivalent Basis 0.08 0.08 0.08 Loans Adjusted to Fully Taxable-equivalent Basis 4.16 4.28 4.52 Total Earning Assets 3.70 3.78 3.89 Adjustment to Fully Taxable-Equivalent Basis 0.12 0.11 0.11 Total Earning Assets Adjusted to Fully Taxable-equivalent Basis 3.82 3.89 4.00 Net Interest Margin 3.38 3.40 3.38 Adjustment to Fully Taxable-Equivalent Basis 0.12 0.11 0.12 Net Interest Margin Adjusted to Fully Taxable-equivalent Basis 3.50 3.51 3.50 Shareholders’ Equity/Assets (GAAP Basis) 12.11 12.08 12.08 Effect of Excluding Intangible Assets (3.59) ( 3.65) (3.76) Tangible Common Equity/Tangible Assets 8.52 8.43 8.32 APPENDIX – Non-GAAP Measures 28 |
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