INDIANA, Pa., April 20,
2023 /PRNewswire/ -- S&T Bancorp, Inc. (S&T)
(NASDAQ: STBA), the holding company for S&T Bank, announced net
income of $39.8 million, or
$1.02 per diluted share, for the
first quarter of 2023 compared to net income of $40.3 million, or $1.03 per diluted share, for the fourth quarter
of 2022 and net income of $29.1
million, or $0.74 per diluted
share, for the first quarter of 2022.
First Quarter of 2023 Highlights:
- Solid return metrics with return on average assets (ROA) of
1.77%, return on average equity (ROE) of 13.38% and return on
average tangible equity (ROTE) (non-GAAP) of 19.61% compared to ROA
of 1.78%, ROE of 13.68% and ROTE (non-GAAP) of 20.36% for the
fourth quarter of 2022.
- Pre-provision net revenue to average assets (PPNR) (non-GAAP)
of 2.23% compared to 2.36% for the fourth quarter of 2022.
- Net interest margin (NIM) (FTE) (non-GAAP) was relatively
unchanged at 4.32% compared to 4.33% in the fourth quarter of
2022.
- Total portfolio loans increased $67.1
million, or 3.8% annualized, compared to December 31, 2022.
- Deposits decreased $66.9 million,
or 3.8% annualized, compared to December 31,
2022 with a decline in January, stability in February and
growth in March.
- Net recovery of $5.1 million, or
0.29% of average loans (annualized), primarily related to a
$9.3 million recovery from a customer
fraud in 2020.
"We delivered solid net interest margin and return metrics for
the first quarter. Our balance sheet is a source of strength with a
stable, well-diversified deposit base and a strong capital
position," said Chris McComish,
chief executive officer. "As the economic landscape continues to
evolve, we remain committed to our purpose of People-Forward
Banking. I am proud of the results from our team's proactive
customer outreach and engagement during the quarter."
Net Interest Income
Net interest income was $88.8
million for the first quarter of 2023 compared to
$89.1 million for the fourth quarter
of 2022. The decrease of $0.3 million
in net interest income was driven by higher funding costs and two
fewer days in the first quarter, partially offset by higher yields
on interest-earning assets. Net interest margin on a fully taxable
equivalent basis (NIM) (FTE) (non-GAAP) decreased 1 basis point to
4.32% compared to 4.33% in the prior quarter. The yield on total
average loans increased 43 basis points to 5.81% compared to 5.38%
in the fourth quarter of 2022 due to higher interest rates. Total
interest-bearing deposit costs increased 37 basis points to 1.30%
compared to 0.93% in the fourth quarter of 2022. Higher
interest-bearing deposit costs primarily related to a change in the
mix of deposits with higher balances in certificates of deposit.
Average certificate of deposit balances increased $110.7 million compared to the fourth quarter of
2022. Total borrowing costs increased 53 basis points to 5.13%
compared to 4.60% in the fourth quarter of 2022. Average borrowings
increased $303.2 million to
$520.8 million compared to
$217.6 million in the fourth quarter
of 2022 due to loan growth and deposit balance declines.
Asset Quality
Net loan recoveries were $5.1
million for the first quarter of 2023 compared to net loan
charge-offs of $0.9 million in the
fourth quarter of 2022. The net recovery primarily related to a
$9.3 million recovery from a customer
fraud in 2020. Total charge-offs of $4.5
million primarily related to a $3.4
million charge from a strategic exit of a C&I credit
through a note sale . Total nonperforming assets increased
$5.6 million to $27.7 million at March 31, 2023 compared to
$22.1 million at
December 31, 2022. Nonperforming assets to total loans plus
OREO increased 7 basis points to 0.38% at March 31, 2023
compared to 0.31% at December 31, 2022. The provision for
credit losses was $0.9 million for
the first quarter of 2023 compared to $3.2
million in the fourth quarter of 2022. The allowance for
credit losses was 1.49% of total portfolio loans as of
March 31, 2023 compared to 1.41% at December 31, 2022.
The increase in the allowance for credit losses related to a
$4.2 million specific reserve and
additional qualitative reserve due to the uncertainty in the
macroeconomic environment.
Noninterest Income and Expense
Noninterest income decreased $2.4
million to $13.2 million in
the first quarter of 2023 compared to $15.6
million in the fourth quarter of 2022. The decrease mainly
related to a decline in other income of $2.1
million primarily related to a net gain on the sale of OREO
of $2.0 million in the fourth quarter
of 2022. Noninterest expense was $51.7
million compared to $51.3
million in the fourth quarter of 2022. FDIC insurance
increased $0.6 million primarily
related to an increase in the assessment rate schedule effective
January 1, 2023. Marketing increased
$0.5 million due to the timing of
various marketing promotions. Salaries and employee benefits
decreased $0.4 million due to lower
incentives and pension costs.
Financial Condition
Total assets were $9.2 billion at
March 31, 2023 compared to $9.1
billion at December 31, 2022. Total portfolio loans
increased by $67.1 million, or 3.8%
annualized, compared to December 31, 2022. The consumer loan
portfolio increased $65.3 million
with growth in residential mortgages of $72.7 million compared to December 31,
2022.
Total deposits decreased $66.9
million, or 3.8% annualized, compared to December 31, 2022. Deposit balances declined
early in the quarter for the month of January followed by stability
in February and growth in March. Certificates of deposit increased
$240.6 million compared to
December 31, 2022 mainly due to
migration from other deposit categories. Our deposit base is stable
and well-diversified with 59% personal deposits and 41% business
deposits. Total borrowings increased $124.9
million to $564.1 million
compared to December 31, 2022 related
to loan growth and deposit declines.
S&T continues to maintain a strong regulatory capital
position with all capital ratios above the well-capitalized
thresholds of federal bank regulatory agencies.
Conference Call
S&T will host its first quarter 2023 earnings conference
call live over the Internet at 1:00 p.m. ET
on Thursday, April 20, 2023. To access the webcast, go
to S&T Bancorp, Inc.'s Investor Relations
webpage www.stbancorp.com. After the live presentation, the
webcast will be archived at www.stbancorp.com for 12 months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.2
billion bank holding company that is headquartered in
Indiana, Pennsylvania 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 Pennsylvania and Ohio. S&T Bank was named by Forbes as
a 2022 Best-in-State Bank. For more information visit stbancorp.com
or stbank.com. Follow us on Facebook, Instagram and
LinkedIn.
Forward-Looking Statements
This information contains or incorporates statements that we
believe are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to our financial condition, results of
operations, plans, objectives, outlook for earnings, revenues,
expenses, capital and liquidity levels and ratios, asset levels,
asset quality, financial position and other matters regarding or
affecting S&T and its future business and operations.
Forward-looking statements are typically identified by words or
phrases such as "will likely result," "expect," "anticipate,"
"estimate," "forecast," "project," "intend," "believe," "assume,"
"strategy," "trend," "plan," "outlook," "outcome," "continue,"
"remain," "potential," "opportunity," "comfortable," "current,"
"position," "maintain," "sustain," "seek," "achieve," and
variations of such words and similar expressions, or future or
conditional verbs such as will, would, should, could or may.
Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, any of these
assumptions could prove to be inaccurate and the forward-looking
statements based on these assumptions could be incorrect. The
matters discussed in these forward-looking statements are subject
to various risks, uncertainties and other factors that could cause
actual results and trends to differ materially from those made,
projected, or implied in or by the forward-looking statements
depending on a variety of uncertainties or other factors including,
but not limited to: credit losses and the credit risk of our
commercial and consumer loan products; changes in the level of
charge-offs and changes in estimates of the adequacy of the
allowance for credit losses, or ACL; cyber-security concerns; rapid
technological developments and changes; operational risks or risk
management failures by us or critical third parties, including
fraud risk; our ability to manage our reputational risks;
sensitivity to the interest rate environment, a rapid increase in
interest rates or a change in the shape of the yield curve; a
change in spreads on interest-earning assets and interest-bearing
liabilities; the transition from LIBOR as a reference rate;
regulatory supervision and oversight, including changes in
regulatory capital requirements and our ability to address those
requirements; unanticipated changes in our liquidity position;
unanticipated changes in regulatory and governmental policies
impacting interest rates and financial markets; changes in
accounting policies, practices or guidance; legislation affecting
the financial services industry as a whole, and S&T, in
particular; developments affecting the industry and the soundness
of financial institutions and further disruption to the economy and
U.S. banking system may adversely affect our business, results of
operations, liquidity and stock price; the outcome of pending and
future litigation and governmental proceedings; increasing price
and product/service competition; the ability to continue to
introduce competitive new products and services on a timely,
cost-effective basis; managing our internal growth and
acquisitions; the possibility that the anticipated benefits from
acquisitions cannot be fully realized in a timely manner or at all,
or that integrating the acquired operations will be more difficult,
disruptive or costly than anticipated; containing costs and
expenses; reliance on significant customer relationships; an
interruption or cessation of an important service by a third-party
provider; our ability to attract and retain talented executives and
employees; general economic or business conditions, including the
strength of regional economic conditions in our market area;
environmental, social and governance practices and disclosures,
including climate change, hiring practices, the diversity of the
work force, and racial and social justice issues; deterioration of
the housing market and reduced demand for mortgages; deterioration
in the overall macroeconomic conditions or the state of the banking
industry that could warrant further analysis of the carrying value
of goodwill and could result in an adjustment to its carrying value
resulting in a non-cash charge to net income; the stability of our
core deposit base and access to contingency funding; re-emergence
of turbulence in significant portions of the global financial and
real estate markets that could impact our performance, both
directly, by affecting our revenues and the value of our assets and
liabilities, and indirectly, by affecting the economy generally and
access to capital in the amounts, at the times and on the terms
required to support our future businesses.
Many of these factors, as well as other factors, are described
in our Annual Report on Form 10-K for the year ended December 31, 2022, including Part I, Item
1A-"Risk Factors" and any of our subsequent filings with the SEC.
Forward-looking statements are based on beliefs and assumptions
using information available at the time the statements are made. We
caution you not to unduly rely on forward-looking statements
because the assumptions, beliefs, expectations and projections
about future events may, and often do, differ materially from
actual results. Any forward-looking statement speaks only as to the
date on which it is made, and we undertake no obligation to update
any forward-looking statement to reflect developments occurring
after the statement is made.
Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with
GAAP, our management uses, and this information contains or
references, certain non-GAAP financial measures, such as tangible
book value, return of average tangible shareholder's equity, PPNR
to average assets, efficiency ratio, tangible common equity to
tangible assets and net interest margin on an FTE basis. We believe
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 other companies in the
financial services industry. Although we believe that these
non-GAAP financial measures enhance investors' understanding of our
business and performance, these non-GAAP financial measures should
not be considered alternatives to GAAP or considered to be more
important than financial results determined in accordance with
GAAP, nor are they necessarily comparable with non-GAAP measures
which may be presented by other companies. See Definitions and
Reconciliation of GAAP to Non-GAAP Financial Measures for more
information related to these financial measures.
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data Unaudited
|
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands, except per share data)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
$102,724
|
|
$96,220
|
|
$64,593
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
7,457
|
|
6,507
|
|
4,936
|
|
Tax-exempt
|
214
|
|
233
|
|
482
|
|
Dividends
|
508
|
|
248
|
|
98
|
|
Total Interest and
Dividend Income
|
110,903
|
|
103,208
|
|
70,109
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
14,903
|
|
11,067
|
|
1,853
|
|
Borrowings, junior
subordinated debt securities and other
|
7,209
|
|
3,083
|
|
523
|
|
Total Interest
Expense
|
22,112
|
|
14,150
|
|
2,376
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
88,791
|
|
89,058
|
|
67,733
|
|
Provision for credit
losses
|
922
|
|
3,176
|
|
(512)
|
|
Net Interest Income
After Provision for Credit Losses
|
87,869
|
|
85,882
|
|
68,245
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain on sale of
securities
|
—
|
|
—
|
|
—
|
|
Debit and credit
card
|
4,373
|
|
4,421
|
|
5,063
|
|
Service charges on
deposit accounts
|
4,076
|
|
4,341
|
|
3,974
|
|
Wealth
management
|
2,948
|
|
3,016
|
|
3,242
|
|
Mortgage
banking
|
301
|
|
309
|
|
1,015
|
|
Other
|
1,492
|
|
3,556
|
|
1,932
|
|
Total Noninterest
Income
|
13,190
|
|
15,643
|
|
15,226
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
27,601
|
|
27,998
|
|
23,712
|
|
Data processing and
information technology
|
4,258
|
|
4,159
|
|
4,435
|
|
Occupancy
|
3,835
|
|
3,806
|
|
3,882
|
|
Furniture, equipment
and software
|
2,861
|
|
2,975
|
|
2,777
|
|
Marketing
|
1,853
|
|
1,348
|
|
1,361
|
|
Professional services
and legal
|
1,821
|
|
2,138
|
|
1,949
|
|
Other taxes
|
1,790
|
|
1,842
|
|
1,537
|
|
FDIC
insurance
|
1,012
|
|
437
|
|
937
|
|
Other
|
6,668
|
|
6,572
|
|
6,824
|
|
Total Noninterest
Expense
|
51,699
|
|
51,275
|
|
47,414
|
|
Income Before
Taxes
|
49,360
|
|
50,250
|
|
36,057
|
|
Income tax
expense
|
9,561
|
|
9,980
|
|
6,914
|
|
Net
Income
|
$39,799
|
|
$40,270
|
|
$29,143
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
38,998,156
|
|
38,999,733
|
|
39,351,688
|
|
Average shares
outstanding - diluted
|
39,032,062
|
|
38,944,575
|
|
39,089,933
|
|
Diluted earnings per
share
|
$1.02
|
|
$1.03
|
|
$0.74
|
|
Dividends declared per
share
|
$0.32
|
|
$0.31
|
|
$0.29
|
|
Dividend yield
(annualized)
|
4.07 %
|
|
3.63 %
|
|
3.92 %
|
|
Dividends paid to net
income
|
31.10 %
|
|
29.85 %
|
|
39.06 %
|
|
Book value
|
$31.48
|
|
$30.38
|
|
$30.11
|
|
Tangible book value
(1)
|
$21.81
|
|
$20.69
|
|
$20.49
|
|
Market value
|
$31.45
|
|
$34.18
|
|
$29.58
|
|
|
|
|
|
|
|
|
Profitability Ratios
(Annualized)
|
|
|
|
|
|
|
Return on average
assets
|
1.77 %
|
|
1.78 %
|
|
1.25 %
|
|
Return on average
shareholders' equity
|
13.38 %
|
|
13.68 %
|
|
9.88 %
|
|
Return on average
tangible shareholders' equity(2)
|
19.61 %
|
|
20.36 %
|
|
14.61 %
|
|
Pre-provision net
revenue / average assets(3)
|
2.23 %
|
|
2.36 %
|
|
1.52 %
|
|
Efficiency ratio
(FTE)(4)
|
50.42 %
|
|
48.73 %
|
|
56.82 %
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data Unaudited
|
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks, including interest-bearing deposits
|
$244,152
|
|
$210,009
|
|
$823,757
|
|
Securities, at fair
value
|
998,708
|
|
1,002,778
|
|
1,028,218
|
|
Loans held for
sale
|
81
|
|
16
|
|
1,346
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
3,145,079
|
|
3,128,187
|
|
3,257,955
|
|
Commercial and
industrial
|
1,709,612
|
|
1,718,976
|
|
1,675,316
|
|
Commercial
construction
|
393,658
|
|
399,371
|
|
398,592
|
|
Total Commercial
Loans
|
5,248,349
|
|
5,246,534
|
|
5,331,863
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
1,189,220
|
|
1,116,528
|
|
912,531
|
|
Home equity
|
649,590
|
|
652,066
|
|
581,821
|
|
Installment and other
consumer
|
119,843
|
|
124,896
|
|
112,297
|
|
Consumer
construction
|
44,062
|
|
43,945
|
|
25,399
|
|
Total Consumer
Loans
|
2,002,715
|
|
1,937,435
|
|
1,632,048
|
|
Total Portfolio
Loans
|
7,251,064
|
|
7,183,969
|
|
6,963,911
|
|
Allowance for credit
losses
|
(108,113)
|
|
(101,340)
|
|
(99,915)
|
|
Total Portfolio
Loans, Net
|
7,142,951
|
|
7,082,629
|
|
6,863,996
|
|
Federal Home Loan Bank
and other restricted stock, at cost
|
30,262
|
|
23,035
|
|
9,349
|
|
Goodwill
|
373,424
|
|
373,424
|
|
373,424
|
|
Other assets
|
403,864
|
|
418,676
|
|
332,191
|
|
Total
Assets
|
$9,193,442
|
|
$9,110,567
|
|
$9,432,281
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$2,468,638
|
|
$2,588,692
|
|
$2,740,315
|
|
Interest-bearing
demand
|
841,130
|
|
846,653
|
|
1,070,656
|
|
Money
market
|
1,599,814
|
|
1,731,521
|
|
1,992,916
|
|
Savings
|
1,068,274
|
|
1,118,511
|
|
1,117,985
|
|
Certificates of
deposit
|
1,175,238
|
|
934,593
|
|
1,038,586
|
|
Total
Deposits
|
7,153,094
|
|
7,219,970
|
|
7,960,458
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
Short-term
borrowings
|
495,000
|
|
370,000
|
|
70,112
|
|
Long-term
borrowings
|
14,628
|
|
14,741
|
|
22,171
|
|
Junior subordinated
debt securities
|
54,468
|
|
54,453
|
|
54,408
|
|
Total
Borrowings
|
564,096
|
|
439,194
|
|
146,691
|
|
Other
liabilities
|
248,457
|
|
266,744
|
|
140,182
|
|
Total
Liabilities
|
7,965,647
|
|
7,925,908
|
|
8,247,331
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
1,227,795
|
|
1,184,659
|
|
1,184,950
|
|
Total Liabilities
and Shareholders' Equity
|
$9,193,442
|
|
$9,110,567
|
|
$9,432,281
|
|
|
|
|
|
|
|
|
Capitalization
Ratios
|
|
|
|
|
|
|
Shareholders' equity /
assets
|
13.36 %
|
|
13.00 %
|
|
12.56 %
|
|
Tangible common equity
/ tangible assets(5)
|
9.65 %
|
|
9.24 %
|
|
8.91 %
|
|
Tier 1 leverage
ratio
|
11.15 %
|
|
11.06 %
|
|
9.85 %
|
|
Common equity tier 1
capital
|
13.10 %
|
|
12.81 %
|
|
12.26 %
|
|
Risk-based capital -
tier 1
|
13.50 %
|
|
13.21 %
|
|
12.67 %
|
|
Risk-based capital -
total
|
15.09 %
|
|
14.73 %
|
|
14.18 %
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data Unaudited
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Net Interest Margin
(FTE) (QTD Averages)
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
$140,499
|
4.22 %
|
$79,881
|
4.04 %
|
$756,141
|
0.16 %
|
Securities, at fair
value
|
1,000,609
|
2.51 %
|
991,774
|
2.43 %
|
1,002,212
|
2.10 %
|
Loans held for
sale
|
126
|
6.39 %
|
491
|
6.19 %
|
1,545
|
3.51 %
|
Commercial real
estate
|
3,132,382
|
5.45 %
|
3,118,874
|
5.14 %
|
3,257,238
|
3.65 %
|
Commercial and
industrial
|
1,711,113
|
6.76 %
|
1,724,480
|
6.15 %
|
1,712,865
|
3.98 %
|
Commercial
construction
|
388,795
|
7.23 %
|
387,737
|
6.64 %
|
409,264
|
3.30 %
|
Total Commercial
Loans
|
5,232,290
|
6.01 %
|
5,231,091
|
5.58 %
|
5,379,367
|
3.73 %
|
Residential
mortgage
|
1,144,821
|
4.43 %
|
1,077,114
|
4.25 %
|
896,268
|
4.02 %
|
Home equity
|
650,385
|
6.28 %
|
648,340
|
5.44 %
|
570,781
|
3.43 %
|
Installment and other
consumer
|
122,873
|
7.80 %
|
126,570
|
6.97 %
|
109,972
|
5.44 %
|
Consumer
construction
|
45,870
|
4.67 %
|
41,385
|
3.81 %
|
21,833
|
3.37 %
|
Total Consumer
Loans
|
1,963,949
|
5.26 %
|
1,893,409
|
4.83 %
|
1,598,854
|
3.90 %
|
Total Portfolio
Loans
|
7,196,239
|
5.81 %
|
7,124,500
|
5.38 %
|
6,978,221
|
3.77 %
|
Total
Loans
|
7,196,365
|
5.81 %
|
7,124,991
|
5.38 %
|
6,979,765
|
3.77 %
|
Federal Home Loan Bank
and other restricted stock
|
34,720
|
6.71 %
|
24,043
|
5.32 %
|
9,280
|
3.40 %
|
Total
Interest-earning Assets
|
8,372,193
|
5.39 %
|
8,220,689
|
5.01 %
|
8,747,398
|
3.27 %
|
Noninterest-earning
assets
|
754,677
|
|
763,927
|
|
709,246
|
|
Total
Assets
|
$9,126,870
|
|
$8,984,616
|
|
$9,456,644
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Interest-bearing
demand
|
$824,623
|
0.33 %
|
$836,585
|
0.24 %
|
$986,639
|
0.08 %
|
Money
market
|
1,670,988
|
1.88 %
|
1,792,162
|
1.60 %
|
2,055,857
|
0.15 %
|
Savings
|
1,090,137
|
0.30 %
|
1,127,987
|
0.22 %
|
1,109,048
|
0.03 %
|
Certificates of
deposit
|
1,052,460
|
2.19 %
|
941,774
|
1.14 %
|
1,070,189
|
0.32 %
|
Total
Interest-bearing Deposits
|
4,638,208
|
1.30 %
|
4,698,508
|
0.93 %
|
5,221,733
|
0.14 %
|
Securities sold under
repurchase agreements
|
—
|
— %
|
—
|
— %
|
81,790
|
0.10 %
|
Short-term
borrowings
|
451,668
|
4.93 %
|
148,370
|
4.22 %
|
—
|
— %
|
Long-term
borrowings
|
14,689
|
2.71 %
|
14,801
|
2.55 %
|
22,310
|
1.95 %
|
Junior subordinated
debt securities
|
54,458
|
7.50 %
|
54,443
|
6.21 %
|
54,398
|
2.95 %
|
Total
Borrowings
|
520,815
|
5.13 %
|
217,614
|
4.60 %
|
158,498
|
1.34 %
|
Total Other Costing
Liabilities
|
54,669
|
4.58 %
|
60,156
|
3.72 %
|
—
|
— %
|
Total
Interest-bearing Liabilities
|
5,213,692
|
1.72 %
|
4,976,278
|
1.13 %
|
5,380,231
|
0.18 %
|
Noninterest-bearing
liabilities
|
2,706,820
|
|
2,840,315
|
|
2,879,718
|
|
Shareholders'
equity
|
1,206,358
|
|
1,168,023
|
|
1,196,694
|
|
Total Liabilities
and Shareholders' Equity
|
$9,126,870
|
|
$8,984,616
|
|
$9,456,644
|
|
|
|
|
|
|
|
|
Net Interest
Margin(6)
|
|
4.32 %
|
|
4.33 %
|
|
3.16 %
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data Unaudited
|
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Nonaccrual
Loans
|
|
|
|
|
|
|
Commercial
loans:
|
|
%
Loans
|
|
%
Loans
|
|
%
Loans
|
Commercial real
estate
|
$7,932
|
0.25 %
|
$7,323
|
0.23 %
|
$26,699
|
0.82 %
|
Commercial and
industrial
|
9,348
|
0.55 %
|
2,974
|
0.17 %
|
14,673
|
0.90 %
|
Commercial
construction
|
384
|
0.10 %
|
384
|
0.10 %
|
864
|
0.22 %
|
Total Nonaccrual
Commercial Loans
|
17,664
|
0.34 %
|
10,681
|
0.20 %
|
42,236
|
0.79 %
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
4,749
|
0.40 %
|
6,063
|
0.54 %
|
7,450
|
0.82 %
|
Home equity
|
1,915
|
0.29 %
|
2,031
|
0.31 %
|
2,713
|
0.47 %
|
Installment and other
consumer
|
316
|
0.26 %
|
277
|
0.22 %
|
125
|
0.11 %
|
Total Nonaccrual
Consumer Loans
|
6,980
|
0.35 %
|
8,371
|
0.43 %
|
10,287
|
0.63 %
|
Total Nonaccrual
Loans
|
$24,644
|
0.34 %
|
$19,052
|
0.27 %
|
$52,524
|
0.75 %
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Loan (Recoveries)
Charge-offs
|
|
|
|
|
|
|
Charge-offs
|
$4,459
|
|
$1,718
|
|
$982
|
|
Recoveries
|
(9,574)
|
|
(808)
|
|
(3,019)
|
|
Net Loan
(Recoveries) Charge-offs
|
($5,115)
|
|
$910
|
|
($2,037)
|
|
|
|
|
|
|
|
|
Net Loan
(Recoveries) Charge-offs
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Customer
fraud
|
($9,329)
|
|
$—
|
|
$—
|
|
Commercial real
estate
|
(25)
|
|
$412
|
|
$178
|
|
Commercial and
industrial
|
3,948
|
|
150
|
|
(2,507)
|
|
Commercial
construction
|
(2)
|
|
—
|
|
(1)
|
|
Total Commercial
Loan (Recoveries) Charge-offs
|
(5,408)
|
|
562
|
|
(2,330)
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
9
|
|
51
|
|
81
|
|
Home equity
|
31
|
|
136
|
|
(20)
|
|
Installment and other
consumer
|
253
|
|
161
|
|
232
|
|
Total Consumer Loan
Charge-offs (Recoveries)
|
293
|
|
348
|
|
293
|
|
Total Net Loan
(Recoveries) Charge-offs
|
($5,115)
|
|
$910
|
|
($2,037)
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Nonaccrual
loans
|
$24,644
|
|
$19,052
|
|
$52,524
|
|
OREO
|
3,076
|
|
3,065
|
|
7,028
|
|
Total nonperforming
assets
|
27,720
|
|
22,117
|
|
59,552
|
|
Troubled debt
restructurings (nonaccruing)*
|
—
|
|
2,894
|
|
15,389
|
|
Troubled debt
restructurings (accruing)*
|
—
|
|
8,891
|
|
10,739
|
|
Total troubled debt
restructurings*
|
—
|
|
11,785
|
|
26,128
|
|
Nonaccrual loans /
total loans
|
0.34 %
|
|
0.27 %
|
|
0.75 %
|
|
Nonperforming assets /
total loans plus OREO
|
0.38 %
|
|
0.31 %
|
|
0.85 %
|
|
Allowance for credit
losses / total portfolio loans
|
1.49 %
|
|
1.41 %
|
|
1.43 %
|
|
Allowance for credit
losses / nonaccrual loans
|
439 %
|
|
532 %
|
|
190 %
|
|
Net loan (recoveries)
charge-offs
|
($5,115)
|
|
$910
|
|
($2,037)
|
|
Net loan (recoveries)
charge-offs (annualized) / average loans
|
(0.29 %)
|
|
0.05 %
|
|
(0.12 %)
|
|
*TDR's were
eliminated as of January 1, 2023 as part of implementing ASU
2022-02, Financial Instruments
Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage
Disclosures.
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars and shares
in thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(1) Tangible Book
Value (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,227,795
|
|
$1,184,659
|
|
$1,184,950
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(377,405)
|
|
(377,673)
|
|
(378,557)
|
|
Tangible common equity
(non-GAAP)
|
$850,390
|
|
$806,986
|
|
$806,393
|
|
Common shares
outstanding
|
38,998
|
|
39,000
|
|
39,352
|
|
Tangible book value
(non-GAAP)
|
$21.81
|
|
$20.69
|
|
$20.49
|
|
Tangible book value
is a preferred industry metric used to measure our company's value
and commonly used by investors and
analysts.
|
|
|
|
|
|
|
|
(2) Return on
Average Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
(annualized)
|
$161,407
|
|
$159,765
|
|
$118,192
|
|
Plus: amortization of
intangibles (annualized), net of tax
|
1,085
|
|
1,144
|
|
1,276
|
|
Net income before
amortization of intangibles (annualized)
|
$162,492
|
|
$160,909
|
|
$119,468
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
$1,206,358
|
|
$1,168,023
|
|
$1,196,694
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
(377,576)
|
|
(377,857)
|
|
(378,761)
|
|
Average tangible
equity (non-GAAP)
|
$828,782
|
|
$790,166
|
|
$817,933
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
19.61 %
|
|
20.36 %
|
|
14.61 %
|
|
Return on average
tangible shareholders' equity is a key profitability metric used by
management to measure financial performance.
|
|
|
|
|
|
|
|
(3) PPNR / Average
Assets (non-GAAP)
|
|
|
|
|
|
|
Income before
taxes
|
$49,360
|
|
$50,250
|
|
$36,057
|
|
Plus: Provision for
credit losses
|
922
|
|
3,176
|
|
(512)
|
|
Total
|
$50,282
|
|
$53,426
|
|
$35,545
|
|
Total (annualized)
(non-GAAP)
|
$203,921
|
|
$211,961
|
|
$144,155
|
|
Average
assets
|
$9,126,981
|
|
$8,984,616
|
|
$9,456,644
|
|
PPNR / Average Assets
(non-GAAP)
|
2.23 %
|
|
2.36 %
|
|
1.52 %
|
|
Pre-provision net
revenue to average assets is income before taxes adjusted to
exclude provision for credit losses. We believe
this to be a preferred industry measurement to help evaluate our
ability to fund credit losses or build capital.
|
|
|
|
|
|
|
|
(4) Efficiency Ratio
(non-GAAP)
|
|
|
|
|
|
|
Noninterest
expense
|
$51,699
|
|
$51,275
|
|
$47,414
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
88,791
|
|
89,058
|
|
67,733
|
|
Plus: taxable
equivalent adjustment
|
555
|
|
532
|
|
493
|
|
Net interest income
(FTE) (non-GAAP)
|
$89,346
|
|
$89,590
|
|
$68,226
|
|
Noninterest
income
|
13,190
|
|
15,643
|
|
15,226
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
$102,536
|
|
$105,233
|
|
$83,452
|
|
Efficiency ratio
(non-GAAP)
|
50.42 %
|
|
48.73 %
|
|
56.82 %
|
|
The efficiency ratio
is noninterest expense divided by noninterest income plus net
interest income, on an FTE basis (non-GAAP),
which ensures comparability of net interest income arising from
both taxable and tax-exempt sources and is consistent with
industry
practice.
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
2023
|
|
2022
|
|
2022
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(5) Tangible Common
Equity / Tangible Assets (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,227,795
|
|
$1,184,659
|
|
$1,184,950
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(377,405)
|
|
(377,673)
|
|
(378,557)
|
|
Tangible common equity
(non-GAAP)
|
$850,390
|
|
$806,986
|
|
$806,393
|
|
|
|
|
|
|
|
|
Total
assets
|
$9,194,034
|
|
$9,110,567
|
|
$9,432,281
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(377,405)
|
|
(377,673)
|
|
(378,557)
|
|
Tangible assets
(non-GAAP)
|
$8,816,629
|
|
$8,732,894
|
|
$9,053,724
|
|
Tangible common equity
to tangible assets (non-GAAP)
|
9.65 %
|
|
9.24 %
|
|
8.91 %
|
|
Tangible common
equity to tangible assets is a preferred industry measurement to
evaluate capital adequacy.
|
|
|
|
|
|
|
|
(6) Net Interest
Margin Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest income and
dividend income
|
$110,903
|
|
$103,208
|
|
$70,109
|
|
Less: interest
expense
|
(22,112)
|
|
(14,150)
|
|
(2,376)
|
|
Net interest income
per consolidated statements of net income
|
$88,791
|
|
$89,058
|
|
$67,733
|
|
Plus: taxable
equivalent adjustment
|
555
|
|
532
|
|
493
|
|
Net interest income
(FTE) (non-GAAP)
|
$89,346
|
|
$89,590
|
|
$68,226
|
|
Net interest income
(FTE) (annualized)
|
$362,348
|
|
$355,438
|
|
$276,694
|
|
Average
interest-earning assets
|
$8,372,193
|
|
$8,220,689
|
|
$8,747,398
|
|
Net interest margin
(FTE) (non-GAAP)
|
4.32 %
|
|
4.33 %
|
|
3.16 %
|
|
The interest income
on interest-earning assets, net interest income and net interest
margin are presented on an
FTE
basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax
benefit of income on certain tax-exempt loans and
securities and the dividend-received deduction for equity
securities using the federal statutory tax rate of 21 percent
for each period. We believe this to be the preferred industry
measurement of net interest income that provides a
relevant comparison between taxable and non-taxable sources of
interest income.
|
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SOURCE S&T Bancorp, Inc.