Exhibit 99.1
CONTACT: | ||
Mark Kochvar | ||
Chief Financial Officer | ||
724.465.4826 | ||
800 Philadelphia Street | ||
Indiana, PA 15701 mark.kochvar@stbank.net www.stbancorp.com |
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces Second Quarter 2015 Results and Declares Quarterly Dividend
Indiana, Pa.-July 21, 2015 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with branch locations in 16 southwestern and southcentral Pennsylvania counties, and loan production offices in northeast and central Ohio, and western New York, announced today its second quarter 2015 earnings. Second quarter earnings were $18.2 million, or $0.52 per diluted share, compared to first quarter of 2015 earnings of $12.8 million, or $0.41 per diluted share, and second quarter of 2014 earnings of $14.7 million, or $0.49 per diluted share.
Highlights:
• | Return on average assets was 1.21% and return on average equity was 9.52% for the second quarter of 2015. |
• | Portfolio loans increased $115 million from March 31, 2015, representing a 9.8% annualized rate. |
• | Results for the second quarter included merger integration costs of $0.9 million, which primarily related to the systems conversion. |
• | Net loan charge-offs to average loans remained low at 0.11% for the second quarter of 2015 compared to 0.10% for the first quarter of 2015. |
• | S&T declared an $0.18 per share dividend compared to $0.17 in the same period a year ago. |
“The growth initiatives that we have implemented over the past two years through our expansion into central Pennsylvania, Ohio, and western New York and our efforts in our core markets are making a big impact on our overall financial performance,” said Todd Brice, president and chief executive officer of S&T. “Our team members are successfully expanding opportunities with existing clients and developing new relationships. We are excited about how we are positioned moving forward.”
Net Interest Income
Net interest income increased $8.6 million to $48.8 million compared to $40.2 million for the first quarter of 2015. The increase in net interest income was primarily due to the merger with Integrity Bancshares (the Merger) that occurred on March 4, 2015. Average loans increased by $642.2 million for the second quarter compared to the first quarter of 2015 due to the Merger and organic loan growth. Net interest income and net interest margin (NIM) on a fully taxable equivalent basis (FTE) were favorably impacted by $2.7
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million of accretion from purchase accounting adjustments during the quarter. NIM increased to 3.67% compared to 3.48% for the first quarter of 2015, primarily due to the accretion of the purchase accounting adjustments.
Asset Quality
Overall asset quality remains well controlled. Total nonperforming assets were relatively unchanged at $19.9 million, or 0.32% of total assets, at June 30, 2015 and $19.4 million, or 0.33% of total assets, at March 31, 2015. Net charge-offs for the second quarter of 2015 were $1.3 million compared to net charge-offs of $1.0 million in the first quarter of 2015. The provision for loan losses was $2.1 million for the second quarter of 2015 compared to $1.2 million for the first quarter of 2015. The allowance for loan losses for originated loans was $48.8 million, or 1.23% of total originated loans, compared to $48.1 million, or 1.27% of total originated loans, at March 31, 2015.
Noninterest Income and Expense
Noninterest income increased $1.3 million to $13.4 million compared to $12.1 million for the first quarter of 2015. The increase in noninterest income was primarily due to the Merger and higher loan related fees. Noninterest expense increased $1.8 million to $35.4 million compared to $33.6 million in the first quarter of 2015. The increase was mainly due to higher operating expenses resulting from the Merger offset by a decrease of $1.4 million of integration costs related to the Merger.
Financial Condition
Total assets increased $163 million to $6.1 billion at June 30, 2015 compared to $6.0 billion at March 31, 2015. Loan growth was strong for the quarter with an increase in total portfolio loans of $115 million, or a 9.8% annualized rate. Commercial loans increased $101 million during the quarter, or an 11.4% annualized rate, primarily due to growth in the commercial real estate and commercial and industrial portfolios. In the consumer portfolio, home equity loans increased by $19 million, or a 17% annualized rate. Total deposits increased $31 million to $4.9 billion at June 30, 2015. S&T’s risk based capital ratios decreased this quarter due to loan and commitment growth outpacing retained earnings. All capital ratios remain above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
The Board of Directors of S&T declared an $0.18 per share cash dividend at its regular meeting held on July 20, 2015. The dividend is payable on August 20, 2015 to shareholders of record on August 6, 2015.
Conference Call
S&T will host its second quarter 2015 earnings conference call live over the Internet at 1:00 p.m. ET on Tuesday, July 21, 2015. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd Quarter 2015 Conference Call” and follow the instructions.
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About S&T Bancorp, Inc. and S&T Bank:
S&T Bancorp, Inc. is a $6.1 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 in 16 counties across southwestern and southcentral Pennsylvania, with loan production offices in northeast and central Ohio, and western New York. For more information visitwww.stbancorp.com orwww.stbank.com.
This information may contain forward-looking statements regarding future financial performance which are not historical facts and which involve risks and uncertainties. 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, change in interest rates, deposit flows, loan demand, and asset quality, including real estate and other collateral values and competition. In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these non-GAAP financial measures 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. A reconciliation of these non-GAAP financial measures is presented in the attached selected financial data spreadsheet. This information should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K for S&T Bancorp, Inc. and subsidiaries.
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S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 4 |
2015 | 2015 | 2014 | ||||||||||
(dollars in thousands, except per share data) | Second Quarter | First Quarter | Second Quarter | |||||||||
INTEREST INCOME | ||||||||||||
Loans, including fees | $ | 48,933 | $ | 39,927 | $ | 36,614 | ||||||
Investment securities: | ||||||||||||
Taxable | 2,394 | 2,383 | 2,060 | |||||||||
Tax-exempt | 998 | 1,020 | 979 | |||||||||
Dividends | 286 | 586 | 219 | |||||||||
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Total Interest Income | 52,611 | 43,916 | 39,872 | |||||||||
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INTEREST EXPENSE | ||||||||||||
Deposits | 3,051 | 3,007 | 2,476 | |||||||||
Borrowings and junior subordinated debt securities | 749 | 650 | 541 | |||||||||
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Total Interest Expense | 3,800 | 3,657 | 3,017 | |||||||||
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NET INTEREST INCOME | 48,811 | 40,259 | 36,855 | |||||||||
Provision for loan losses | 2,059 | 1,207 | (1,134 | ) | ||||||||
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Net Interest Income After Provision for Loan Losses | 46,752 | 39,052 | 37,989 | |||||||||
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NONINTEREST INCOME | ||||||||||||
Securities (losses) gains, net | (34 | ) | — | 40 | ||||||||
Debit and credit card fees | 3,020 | 2,715 | 2,724 | |||||||||
Wealth management fees | 2,930 | 2,923 | 2,837 | |||||||||
Service charges on deposit accounts | 2,877 | 2,583 | 2,574 | |||||||||
Insurance fees | 1,391 | 1,651 | 1,425 | |||||||||
Mortgage banking | 782 | 525 | 264 | |||||||||
Other | 2,417 | 1,687 | 1,907 | |||||||||
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Total Noninterest Income | 13,383 | 12,084 | 11,771 | |||||||||
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NONINTEREST EXPENSE | ||||||||||||
Salaries and employee benefits | 17,455 | 16,780 | 15,772 | |||||||||
Net occupancy | 2,682 | 2,588 | 1,984 | |||||||||
Data processing | 2,555 | 2,320 | 2,219 | |||||||||
Furniture and equipment | 1,582 | 1,226 | 1,277 | |||||||||
Marketing | 1,193 | 816 | 960 | |||||||||
Other taxes | 1,159 | 842 | 893 | |||||||||
Merger related expenses | 866 | 2,301 | — | |||||||||
FDIC insurance | 808 | 695 | 579 | |||||||||
Professional services and legal | 801 | 523 | 875 | |||||||||
Other | 6,348 | 5,530 | 5,606 | |||||||||
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Total Noninterest Expense | 35,449 | 33,621 | 30,165 | |||||||||
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Income Before Taxes | 24,686 | 17,515 | 19,595 | |||||||||
Provision for income taxes | 6,498 | 4,680 | 4,875 | |||||||||
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Net Income | $ | 18,188 | $ | 12,835 | $ | 14,720 | ||||||
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Per Share Data: | ||||||||||||
Shares outstanding at end of period | 34,812,723 | 34,797,526 | 29,797,204 | |||||||||
Average shares outstanding - diluted | 34,681,180 | 31,260,948 | 29,701,195 | |||||||||
Average shares outstanding - two-class method | 34,804,031 | 31,343,849 | 29,743,273 | |||||||||
Diluted earnings per share (1) | $ | 0.52 | $ | 0.41 | $ | 0.49 | ||||||
Dividends declared per share | $ | 0.18 | $ | 0.18 | $ | 0.17 | ||||||
Dividend yield (annualized) | 2.43 | % | 2.54 | % | 2.74 | % | ||||||
Dividends paid to net income | 34.37 | % | 41.74 | % | 34.32 | % | ||||||
Book value | $ | 22.15 | $ | 21.91 | $ | 20.04 | ||||||
Tangible book value (3) | $ | 13.65 | $ | 13.40 | $ | 14.07 | ||||||
Market value | $ | 29.59 | $ | 28.38 | $ | 24.85 | ||||||
Profitability Ratios (annualized) | ||||||||||||
Return on average assets | 1.21 | % | 0.99 | % | 1.26 | % | ||||||
Return on average tangible assets (4) | 1.29 | % | 1.05 | % | 1.33 | % | ||||||
Return on average shareholders’ equity | 9.52 | % | 7.85 | % | 9.99 | % | ||||||
Return on average tangible shareholders’ equity (5) | 15.79 | % | 11.80 | % | 14.48 | % | ||||||
Efficiency ratio (FTE) (2) | 55.63 | % | 62.57 | % | 60.36 | % |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 5 |
For the Six Months Ended June 30, | ||||||||
(dollars in thousands, except per share data) | 2015 | 2014 | ||||||
INTEREST INCOME | ||||||||
Loans, including fees | $ | 88,859 | $ | 72,263 | ||||
Investment securities: | ||||||||
Taxable | 4,777 | 3,960 | ||||||
Tax-exempt | 2,018 | 1,908 | ||||||
Dividends | 872 | 406 | ||||||
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Total Interest Income | 96,526 | 78,537 | ||||||
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INTEREST EXPENSE | ||||||||
Deposits | 6,058 | 4,986 | ||||||
Borrowings and junior subordinated debt securities | 1,398 | 1,105 | ||||||
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Total Interest Expense | 7,456 | 6,091 | ||||||
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NET INTEREST INCOME | 89,070 | 72,446 | ||||||
Provision for loan losses | 3,266 | (845 | ) | |||||
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Net Interest Income After Provision for Loan Losses | 85,804 | 73,291 | ||||||
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NONINTEREST INCOME | ||||||||
Securities (losses) gains, net | (34 | ) | 41 | |||||
Wealth management fees | 5,853 | 5,792 | ||||||
Debit and credit card fees | 5,736 | 5,226 | ||||||
Service charges on deposit accounts | 5,459 | 5,083 | ||||||
Insurance fees | 3,041 | 3,102 | ||||||
Mortgage banking | 1,308 | 396 | ||||||
Other | 4,104 | 3,547 | ||||||
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Total Noninterest Income | 25,467 | 23,187 | ||||||
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NONINTEREST EXPENSE | ||||||||
Salaries and employee benefits | 34,235 | 31,148 | ||||||
Net occupancy | 5,270 | 4,214 | ||||||
Data processing | 4,876 | 4,314 | ||||||
Furniture and equipment | 2,808 | 2,548 | ||||||
Professional services and legal | 1,324 | 1,538 | ||||||
Other taxes | 2,002 | 1,524 | ||||||
Marketing | 2,009 | 1,578 | ||||||
FDIC insurance | 1,503 | 1,210 | ||||||
Merger related expenses | 3,167 | — | ||||||
Other | 11,876 | 11,005 | ||||||
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Total Noninterest Expense | 69,070 | 59,079 | ||||||
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Income Before Taxes | 42,201 | 37,399 | ||||||
Provision for income taxes | 11,178 | 8,646 | ||||||
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Net Income | $ | 31,023 | $ | 28,753 | ||||
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Per Share Data: | ||||||||
Average shares outstanding - diluted | 32,988,295 | 29,700,170 | ||||||
Average shares outstanding - two-class method | 33,083,499 | 29,739,174 | ||||||
Diluted earnings per share (1) | $ | 0.94 | $ | 0.97 | ||||
Dividends declared per share | $ | 0.36 | $ | 0.33 | ||||
Dividends paid to net income | 37.42 | % | 34.12 | % | ||||
Profitability Ratios (annualized) | ||||||||
Return on average assets | 1.11 | % | 1.25 | % | ||||
Return on average tangible assets (8) | 1.18 | % | 1.31 | % | ||||
Return on average shareholders’ equity | 8.75 | % | 9.91 | % | ||||
Return on average tangible shareholders’ equity (9) | 13.85 | % | 14.45 | % | ||||
Efficiency ratio (FTE) (2) | 58.80 | % | 60.10 | % |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 6 |
2015 | 2015 | 2014 | ||||||||||
(dollars in thousands) | Second Quarter | First Quarter | Second Quarter | |||||||||
ASSETS | ||||||||||||
Cash and due from banks, including interest-bearing deposits | $ | 146,582 | $ | 124,737 | $ | 130,235 | ||||||
Securities available-for-sale, at fair value | 666,624 | 655,829 | 588,488 | |||||||||
Loans held for sale | 13,634 | 6,126 | 3,102 | |||||||||
Commercial loans: | ||||||||||||
Commercial real estate | 2,054,935 | 2,006,131 | 1,636,383 | |||||||||
Commercial and industrial | 1,239,382 | 1,199,115 | 922,191 | |||||||||
Commercial construction | 344,983 | 333,177 | 188,311 | |||||||||
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Total Commercial Loans | 3,639,300 | 3,538,423 | 2,746,885 | |||||||||
Consumer loans: | ||||||||||||
Residential mortgage | 599,502 | 603,536 | 492,589 | |||||||||
Home equity | 457,813 | 439,282 | 416,226 | |||||||||
Installment and other consumer | 94,437 | 97,284 | 65,838 | |||||||||
Consumer construction | 7,446 | 5,173 | 3,541 | |||||||||
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Total Consumer Loans | 1,159,198 | 1,145,275 | 978,194 | |||||||||
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Total portfolio loans | 4,798,498 | 4,683,698 | 3,725,079 | |||||||||
Allowance for loan losses | (48,814 | ) | (48,106 | ) | (46,580 | ) | ||||||
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Total portfolio loans, net | 4,749,684 | 4,635,592 | 3,678,499 | |||||||||
Goodwill | 291,204 | 290,617 | 175,820 | |||||||||
Other assets | 266,000 | 258,392 | 211,886 | |||||||||
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Total Assets | $ | 6,133,728 | $ | 5,971,293 | $ | 4,788,030 | ||||||
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LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-bearing demand | $ | 1,182,124 | $ | 1,177,623 | $ | 1,089,999 | ||||||
Interest-bearing demand | 703,797 | 686,546 | 307,897 | |||||||||
Money market | 633,175 | 617,609 | 301,719 | |||||||||
Savings | 1,093,057 | 1,073,755 | 1,024,050 | |||||||||
Certificates of deposit | 1,247,262 | 1,272,998 | 1,141,581 | |||||||||
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Total Deposits | 4,859,415 | 4,828,531 | 3,865,246 | |||||||||
Securities sold under repurchase agreements | 46,235 | 46,721 | 25,269 | |||||||||
Short-term borrowings | 230,975 | 199,573 | 185,000 | |||||||||
Long-term borrowings | 118,228 | 18,838 | 20,636 | |||||||||
Junior subordinated debt securities | 45,619 | 50,619 | 45,619 | |||||||||
Other liabilities | 62,027 | 64,753 | 49,073 | |||||||||
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Total Liabilities | 5,362,499 | 5,209,035 | 4,190,843 | |||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
Total Shareholders’ Equity | 771,229 | 762,258 | 597,187 | |||||||||
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Total Liabilities and Shareholders’ Equity | $ | 6,133,728 | $ | 5,971,293 | $ | 4,788,030 | ||||||
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Capitalization Ratios | ||||||||||||
Shareholders’ equity / assets | 12.57 | % | 12.77 | % | 12.47 | % | ||||||
Tangible common equity / tangible assets (6) | 8.14 | % | 8.22 | % | 9.10 | % | ||||||
Tier 1 leverage ratio | 8.92 | % | 10.06 | % | 9.91 | % | ||||||
Common equity tier 1 capital | 9.59 | % | 9.82 | % | 11.75 | % | ||||||
Risk-based capital - tier 1 | 9.97 | % | 10.22 | % | 12.30 | % | ||||||
Risk-based capital - total | 11.48 | % | 11.86 | % | 14.26 | % |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 7 |
2015 | 2015 | 2014 | ||||||||||||||||||||||
(dollars in thousands) | Second | First | Second | |||||||||||||||||||||
Net Interest Margin (FTE) (QTD Averages) | Quarter | Quarter | Quarter | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Loans | $ | 4,764,852 | 4.20 | % | $ | 4,122,631 | 4.01 | % | $ | 3,650,050 | 4.11 | % | ||||||||||||
Taxable investment securities | 513,639 | 1.94 | % | 504,867 | 1.97 | % | 427,976 | 1.99 | % | |||||||||||||||
Tax-exempt investment securities | 136,824 | 4.49 | % | 142,194 | 4.41 | % | 129,687 | 4.65 | % | |||||||||||||||
Federal Home Loan Bank and other restricted stock | 22,166 | 3.42 | % | 15,427 | 12.66 | % | 12,752 | 3.89 | % | |||||||||||||||
Interest-bearing deposits with banks | 65,246 | 0.25 | % | 65,575 | 0.22 | % | 88,706 | 0.28 | % | |||||||||||||||
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Total Interest-earning Assets | 5,502,727 | 3.94 | % | 4,850,694 | 3.78 | % | 4,309,171 | 3.84 | % | |||||||||||||||
Noninterest-earning assets | 537,348 | 421,132 | 372,445 | |||||||||||||||||||||
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Total Assets | $ | 6,040,075 | $ | 5,271,826 | $ | 4,681,616 | ||||||||||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||
Interest-bearing demand | $ | 660,058 | 0.15 | % | $ | 432,009 | 0.08 | % | $ | 311,719 | 0.03 | % | ||||||||||||
Money market | 427,354 | 0.19 | % | 362,939 | 0.18 | % | 327,666 | 0.15 | % | |||||||||||||||
Savings | 1,073,360 | 0.16 | % | 1,052,347 | 0.16 | % | 1,035,691 | 0.16 | % | |||||||||||||||
Certificates of deposit | 1,120,256 | 0.68 | % | 991,542 | 0.87 | % | 899,086 | 0.78 | % | |||||||||||||||
CDARS and brokered deposits | 347,013 | 0.32 | % | 260,555 | 0.34 | % | 230,036 | 0.32 | % | |||||||||||||||
Securities sold under repurchase agreements | 45,017 | 0.01 | % | 40,039 | 0.01 | % | 30,718 | 0.01 | % | |||||||||||||||
Short-term borrowings | 228,505 | 0.33 | % | 236,440 | 0.32 | % | 108,640 | 0.30 | % | |||||||||||||||
Long-term borrowings | 78,912 | 0.98 | % | 19,086 | 3.01 | % | 20,873 | 3.01 | % | |||||||||||||||
Junior subordinated debt securities | 49,905 | 2.93 | % | 47,175 | 2.77 | % | 45,619 | 2.66 | % | |||||||||||||||
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Total Interest-bearing Liabilities | 4,030,380 | 0.38 | % | 3,442,132 | 0.43 | % | 3,010,048 | 0.40 | % | |||||||||||||||
Noninterest-bearing demand | 1,175,620 | 1,101,795 | 1,028,997 | |||||||||||||||||||||
Other liabilities | 67,500 | 64,643 | 51,390 | |||||||||||||||||||||
Shareholders’ equity | 766,575 | 663,256 | 591,181 | |||||||||||||||||||||
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Total Liabilities and Shareholders’ Equity | $ | 6,040,075 | $ | 5,271,826 | $ | 4,681,616 | ||||||||||||||||||
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Net Interest Margin(7) | 3.67 | % | 3.48 | % | 3.56 | % |
For the Six Months Ended June 30, | ||||||||||||||||
(dollars in thousands) | 2015 | 2014 | ||||||||||||||
Net Interest Margin (FTE) (YTD Averages) | ||||||||||||||||
ASSETS | ||||||||||||||||
Loans | $ | 4,445,515 | 4.11 | % | $ | 3,613,470 | 4.12 | % | ||||||||
Taxable investment securities | 509,271 | 1.95 | % | 411,535 | 1.98 | % | ||||||||||
Tax-exempt investment securities | 139,501 | 4.45 | % | 125,591 | 4.68 | % | ||||||||||
Federal Home Loan Bank and other restricted stock | 18,815 | 7.20 | % | 13,070 | 3.28 | % | ||||||||||
Interest-bearing deposits with banks | 65,410 | 0.23 | % | 118,419 | 0.25 | % | ||||||||||
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Total Interest-earning Assets | 5,178,512 | 3.87 | % | 4,282,085 | 3.82 | % | ||||||||||
Noninterest-earning assets | 479,561 | 374,940 | ||||||||||||||
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Total Assets | $ | 5,658,073 | $ | 4,657,025 | ||||||||||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
Interest-bearing demand | $ | 546,663 | 0.12 | % | $ | 312,565 | 0.02 | % | ||||||||
Money market | 395,324 | 0.19 | % | 338,928 | 0.15 | % | ||||||||||
Savings | 1,062,911 | 0.16 | % | 1,025,007 | 0.16 | % | ||||||||||
Certificates of deposit | 1,056,254 | 0.77 | % | 904,869 | 0.79 | % | ||||||||||
CDARS and brokered deposits | 304,023 | 0.33 | % | 210,426 | 0.33 | % | ||||||||||
Securities sold under repurchase agreements | 42,542 | 0.01 | % | 33,641 | 0.01 | % | ||||||||||
Short-term borrowings | 232,451 | 0.33 | % | 118,156 | 0.30 | % | ||||||||||
Long-term borrowings | 49,165 | 1.37 | % | 21,168 | 3.04 | % | ||||||||||
Junior subordinated debt securities | 48,547 | 2.85 | % | 45,619 | 2.68 | % | ||||||||||
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Total Interest-bearing Liabilities | 3,737,880 | 0.40 | % | 3,010,379 | 0.41 | % | ||||||||||
Noninterest-bearing demand | 1,138,912 | 1,009,506 | ||||||||||||||
Other liabilities | 66,080 | 52,116 | ||||||||||||||
Shareholders’ equity | 715,201 | 585,024 | ||||||||||||||
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|
|
| |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 5,658,073 | $ | 4,657,025 | ||||||||||||
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|
|
| |||||||||||||
Net Interest Margin(10) | 3.58 | % | 3.54 | % |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 8 |
2015 | 2015 | 2014 | ||||||||||||||||||||||
Second | First | Second | ||||||||||||||||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||||||||||||||||||||
Nonperforming Loans (NPL) | ||||||||||||||||||||||||
% NPL | % NPL | % NPL | ||||||||||||||||||||||
Commercial loans: | ||||||||||||||||||||||||
Commercial real estate | $ | 7,309 | 0.36 | % | $ | 8,386 | 0.42 | % | $ | 5,658 | 0.35 | % | ||||||||||||
Commercial and industrial | 3,143 | 0.25 | % | 3,550 | 0.30 | % | 3,837 | 0.42 | % | |||||||||||||||
Commercial construction | 4,472 | 1.30 | % | 1,973 | 0.59 | % | 1,870 | 0.99 | % | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Nonperforming Commercial Loans | 14,924 | 0.41 | % | 13,909 | 0.39 | % | 11,365 | 0.41 | % | |||||||||||||||
Consumer loans: | ||||||||||||||||||||||||
Residential mortgage | 2,010 | 0.34 | % | 2,226 | 0.37 | % | 2,118 | 0.43 | % | |||||||||||||||
Home equity | 2,026 | 0.44 | % | 1,986 | 0.45 | % | 1,431 | 0.34 | % | |||||||||||||||
Installment and other consumer | 179 | 0.19 | % | 13 | 0.01 | % | 26 | 0.04 | % | |||||||||||||||
Consumer construction | — | — | — | — | — | — | ||||||||||||||||||
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| |||||||||||||||||||
Total Nonperforming Consumer Loans | 4,215 | 0.36 | % | 4,225 | 0.37 | % | 3,575 | 0.37 | % | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
Total Nonperforming Loans | $ | 19,139 | 0.40 | % | $ | 18,134 | 0.39 | % | $ | 14,940 | 0.40 | % | ||||||||||||
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| |||||||||||||||||||
2015 | 2015 | 2014 | ||||||||||||||||||||||
Second | First | Second | ||||||||||||||||||||||
Quarter | Quarter | Quarter | ||||||||||||||||||||||
Asset Quality Data | ||||||||||||||||||||||||
Nonperforming loans | $ | 19,139 | $ | 18,134 | $ | 14,940 | ||||||||||||||||||
Assets acquired through foreclosure or repossession | 750 | 1,294 | 431 | |||||||||||||||||||||
Nonperforming assets | 19,889 | 19,428 | 15,371 | |||||||||||||||||||||
Troubled debt restructurings (nonaccruing) | 8,927 | 9,916 | 5,241 | |||||||||||||||||||||
Troubled debt restructurings (accruing) | 32,560 | 36,423 | 37,120 | |||||||||||||||||||||
Total troubled debt restructurings | 41,487 | 46,339 | 42,361 | |||||||||||||||||||||
Nonperforming loans / loans | 0.40 | % | 0.39 | % | 0.40 | % | ||||||||||||||||||
Nonperforming assets / loans plus OREO | 0.41 | % | 0.41 | % | 0.41 | % | ||||||||||||||||||
Allowance for loan losses / originated loans | 1.23 | % | 1.27 | % | 1.29 | % | ||||||||||||||||||
Allowance for loan losses / total loans | 1.02 | % | 1.03 | % | 1.25 | % | ||||||||||||||||||
Allowance for loan losses / nonperforming loans | 255 | % | 265 | % | 312 | % | ||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 1,349 | $ | 1,014 | $ | (1,099 | ) | |||||||||||||||||
Net loan charge-offs (recoveries)(annualized) / average loans | 0.11 | % | 0.10 | % | (0.12 | %) | ||||||||||||||||||
For the Six Months Ended June 30, | ||||||||||||||||||||||||
(dollars in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Asset Quality Data | ||||||||||||||||||||||||
Net loan charge-offs (recoveries) | $ | 2,363 | $ | (1,171 | ) | |||||||||||||||||||
Net loan charge-offs (recoveries)(annualized) / average loans | 0.11 | % | (0.07 | %) |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 9 |
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
(1) | Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less earnings allocated to participating securities. |
(2) | Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis. |
2015 | 2015 | 2014 | ||||||||||
Second | First | Second | ||||||||||
Quarter | Quarter | Quarter | ||||||||||
(3) Tangible Book Value (non-GAAP) | ||||||||||||
Total shareholders’ equity | $ | 771,229 | $ | 762,258 | $ | 597,187 | ||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (296,065 | ) | (295,814 | ) | (177,866 | ) | ||||||
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|
|
|
| |||||||
Tangible common equity (non-GAAP) | $ | 475,164 | $ | 466,444 | $ | 419,321 | ||||||
Common shares outstanding | 34,813 | 34,798 | 29,797 | |||||||||
Tangible book value (non-GAAP) | $ | 13.65 | $ | 13.40 | $ | 14.07 | ||||||
(4) Return on Average Tangible Assets (non-GAAP) | ||||||||||||
Net income (annualized) | $ | 72,952 | $ | 52,054 | $ | 59,042 | ||||||
Plus: amortization of intangibles net of tax (annualized) | 1,347 | 917 | 775 | |||||||||
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|
|
|
|
| |||||||
Net income before amortization of intangibles (annualized) | 74,299 | 52,971 | 59,817 | |||||||||
Average total assets | 6,040,075 | 5,271,826 | 4,681,616 | |||||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (295,886 | ) | (214,299 | ) | (177,963 | ) | ||||||
|
|
|
|
|
| |||||||
Average tangible assets (non-GAAP) | $ | 5,744,189 | $ | 5,057,527 | $ | 4,503,653 | ||||||
Return on average tangible assets (non-GAAP) | 1.29 | % | 1.05 | % | 1.33 | % | ||||||
(5) Return on Average Tangible Shareholders’ Equity (non-GAAP) | ||||||||||||
Net income (annualized) | $ | 72,952 | $ | 52,054 | $ | 59,042 | ||||||
Plus: amortization of intangibles net of tax (annualized) | 1,347 | 917 | 775 | |||||||||
|
|
|
|
|
| |||||||
Net income before amortization of intangibles (annualized) | 74,299 | 52,971 | 59,817 | |||||||||
Average total shareholders’ equity | 766,575 | 663,256 | 591,181 | |||||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (295,886 | ) | (214,299 | ) | (177,963 | ) | ||||||
|
|
|
|
|
| |||||||
Average tangible equity (non-GAAP) | $ | 470,689 | $ | 448,957 | $ | 413,218 | ||||||
Return on average tangible equity (non-GAAP) | 15.79 | % | 11.80 | % | 14.48 | % | ||||||
(6) Tangible Common Equity / Tangible Assets (non-GAAP) | ||||||||||||
Total shareholders’ equity | $ | 771,229 | $ | 762,258 | $ | 597,187 | ||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (296,065 | ) | (295,814 | ) | (177,866 | ) | ||||||
|
|
|
|
|
| |||||||
Tangible common equity (non-GAAP) | 475,164 | 466,444 | 419,321 | |||||||||
Total assets | 6,133,728 | 5,971,293 | 4,788,030 | |||||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (296,065 | ) | (295,814 | ) | (177,866 | ) | ||||||
|
|
|
|
|
| |||||||
Tangible assets (non-GAAP) | $ | 5,837,663 | $ | 5,675,479 | $ | 4,610,164 | ||||||
Tangible common equity to tangible assets (non-GAAP) | 8.14 | % | 8.22 | % | 9.10 | % | ||||||
(7) Net Interest Margin Rate (FTE) (non-GAAP) | ||||||||||||
Interest income | $ | 52,611 | $ | 43,916 | $ | 39,872 | ||||||
Less: interest expense | (3,800 | ) | (3,657 | ) | (3,017 | ) | ||||||
|
|
|
|
|
| |||||||
Net interest income per consolidated statements of net income | 48,811 | 40,259 | 36,855 | |||||||||
Plus: taxable equivalent adjustment | 1,494 | 1,392 | 1,393 | |||||||||
|
|
|
|
|
| |||||||
Net interest income (FTE) (non-GAAP) | 50,305 | 41,651 | 38,248 | |||||||||
Net interest income (FTE) (annualized) | 201,773 | 168,918 | 153,412 | |||||||||
Average earning assets | $ | 5,502,727 | $ | 4,850,694 | $ | 4,309,171 | ||||||
Net interest margin - (FTE) (non-GAAP) | 3.67 | % | 3.48 | % | 3.56 | % |
S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release – 10 |
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
For the Six Months Ended June 30, | ||||||||
2015 | 2014 | |||||||
(8) Return on Average Tangible Assets (non-GAAP) | ||||||||
Net income (annualized) | $ | 62,560 | $ | 57,983 | ||||
Plus: amortization of intangibles net of tax (annualized) | 1,133 | 804 | ||||||
|
|
|
| |||||
Net income before amortization of intangibles (annualized) | 63,693 | 58,787 | ||||||
Average total assets | 5,658,073 | 4,657,025 | ||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (255,318 | ) | (178,063 | ) | ||||
|
|
|
| |||||
Average tangible assets (non-GAAP) | $ | 5,402,755 | $ | 4,478,962 | ||||
Return on average tangible assets (non-GAAP) | 1.18 | % | 1.31 | % | ||||
(9) Return on Average Tangible Shareholders’ Equity (non-GAAP) | ||||||||
Net income (annualized) | $ | 62,560 | $ | 57,983 | ||||
Plus: amortization of intangibles net of tax (annualized) | 1,133 | 804 | ||||||
|
|
|
| |||||
Net income before amortization of intangibles (annualized) | 63,693 | 58,787 | ||||||
Average total shareholders’ equity | 715,201 | 585,024 | ||||||
Less: average goodwill and other intangibles, net of deferred tax liability | (255,318 | ) | (178,063 | ) | ||||
|
|
|
| |||||
Average tangible equity (non-GAAP) | $ | 459,883 | $ | 406,961 | ||||
Return on average tangible equity (non-GAAP) | 13.85 | % | 14.45 | % | ||||
(10) Net Interest Margin Rate (FTE) (non-GAAP) | ||||||||
Interest income | $ | 96,526 | $ | 78,537 | ||||
Less: interest expense | (7,456 | ) | (6,091 | ) | ||||
|
|
|
| |||||
Net interest income per consolidated statements of net income | 89,070 | 72,446 | ||||||
Plus: taxable equivalent adjustment | 2,886 | 2,717 | ||||||
|
|
|
| |||||
Net interest income (FTE) (non-GAAP) | 91,956 | 75,163 | ||||||
Net interest income (FTE) (annualized) | 185,435 | 151,572 | ||||||
Average earning assets | $ | 5,178,512 | $ | 4,282,085 | ||||
Net interest margin - (FTE) (non-GAAP) | 3.58 | % | 3.54 | % |