INDIANA, Pa., April 18,
2024 /PRNewswire/ -- S&T Bancorp Inc. (S&T)
(NASDAQ: STBA), the holding company for S&T Bank, announced net
income of $31.2 million, or
$0.81 per diluted share, for the
first quarter of 2024 compared to net income of $37.0 million, or $0.96 per diluted share, for the fourth quarter
of 2023 and net income of $39.8
million, or $1.02 per diluted
share, for the first quarter of 2023.
First Quarter of 2024 Highlights:
- Solid return metrics with return on average assets (ROA) of
1.32%, return on average equity (ROE) of 9.74% and return on
average tangible equity (ROTE) (non-GAAP) of 13.85% compared to ROA
of 1.55%, ROE of 11.79% and ROTE (non-GAAP) of 17.00% for the
fourth quarter of 2023.
- Pre-provision net revenue to average assets (PPNR) (non-GAAP)
was 1.76% compared to 1.97% for the fourth quarter of 2023.
- Net interest margin (NIM) (FTE) (non-GAAP) remains strong at
3.84% compared to 3.92% in the fourth quarter of 2023.
- Total deposits increased $78.6
million to $7.6 billion at
March 31, 2024 compared to
$7.5 billion at December 31, 2023, representing the third
consecutive quarter of deposit growth.
- Nonperforming assets remain low at $33.3
million, or 0.44% of total loans plus other real estate
owned, or OREO, compared to $23.0
million, or 0.30% of total loans plus OREO, at December 31, 2023.
"I am very pleased that we had a solid start to the year with
excellent return metrics," said Chief Executive Officer
Chris McComish. "Our team continues
to execute on strategies that have driven our strong results and
deposit growth. The deep customer relationships built by our
dedicated teams are at the core of our success. And for a second
year in a row, we were named to the 2024 Forbes list of America's
Best Midsize Employers, based on survey feedback from our highly
engaged employees. I am confident that our people-forward approach
will continue to show positive results."
Net Interest Income
Net interest income was $83.5
million for the first quarter of 2024 compared to
$85.1 million for the fourth quarter
of 2023. The decrease of $1.6 million
in net interest income was driven by higher funding costs,
partially offset by higher yields on interest-earning assets. Net
interest margin on a fully taxable equivalent basis (NIM) (FTE)
(non-GAAP) remains strong at 3.84% compared to 3.92% in the prior
quarter. The yield on total average loans increased 6 basis points
to 6.25% compared to 6.19% in the fourth quarter of 2023.
Average loan balances increased $103.4 million to $7.7 billion compared to $7.6 billion in the fourth quarter of 2023.
Total interest-bearing deposit costs increased 24 basis points to
2.77% compared to 2.53% in the fourth quarter of 2023. Higher
interest-bearing deposit costs primarily related to growth in
higher costing deposit products combined with a continued shift in
the mix of deposits. Average money market balances increased
$76.7 million and average CD balances
increased $105.8 million compared to
the fourth quarter of 2023. Average borrowings decreased
$26.9 million to $496.9 million compared to $523.8 million in the fourth quarter of 2023
due to higher average deposit balances.
Asset Quality
The allowance for credit losses was $104.8 million, or 1.37% of total portfolio
loans, as of March 31, 2024, compared to $108.0 million, or 1.41%, at December 31,
2023. The provision for credit losses was $2.6 million for the first quarter of 2024
compared to $0.9 million in the
fourth quarter of 2023. The increase in the provision for credit
losses primarily related to higher net charge-offs offset by a
lower level of required reserve compared to the fourth quarter of
2023. Net loan charge-offs were $6.6
million for the first quarter of 2024 compared to net loan
charge-offs of $3.6 million in the
fourth quarter of 2023. Nonperforming assets to total loans plus
OREO remained low at 0.44% as of March 31, 2024, compared to
0.30% at December 31, 2023.
Noninterest Income and Expense
Noninterest income decreased $5.3
million to $12.8 million in
the first quarter of 2024 compared to $18.1
million in the fourth quarter of 2023. The decrease is
primarily due to a return to more normal levels of noninterest
income in the first quarter of 2024 after experiencing unusual
items in the fourth quarter of 2023 including a gain on OREO of
$3.3 million and valuation
adjustments on our commercial loan swaps of $0.3 million and on a nonqualified benefit plan
of $0.8 million. Customer activity
was also seasonally slower in the first quarter of 2024 resulting
in lower debit card fees and service charges. Noninterest expense
decreased $1.7 million to
$54.5 million compared to
$56.2 million in the fourth quarter
of 2023. The decrease was primarily due to lower salaries and
employee benefits of $1.4 million
mainly related to a decrease in medical expense compared to the
fourth quarter of 2023.
Financial Condition
Total assets were $9.5 billion at
March 31, 2024, compared to $9.6
billion at December 31, 2023. Total portfolio loans
remained unchanged at $7.7 billion compared to December 31,
2023. The consumer loan portfolio increased $40.8 million with growth in residential
mortgages of $39.4 million compared
to December 31, 2023. The commercial loan portfolio decreased
$38.1 million primarily due to a
decline in commercial and industrial of $45.0 million compared to December 31, 2023.
Total deposits increased $78.6
million , or 4.2% annualized, compared to December 31,
2023. CDs increased $162.8 million
compared to December 31, 2023, due to
the replacement of $101.0 million of
brokered money market funds with a like amount of brokered CDs and
customers shifting from other deposit types. Total borrowings
decreased $130.1 million to
$373.5 million compared to
$503.6 million at December 31,
2023 primarily related to deposit growth.
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 2024 earnings conference
call live via webcast at 1:00 p.m. ET on
Thursday, April 18, 2024. To access the webcast, go to
S&T Bancorp Inc.'s investor relations
webpage stbancorp.com. After the live presentation, the
webcast will be archived at stbancorp.com for 12 months.
About S&T Bancorp Inc. and S&T Bank
S&T Bancorp Inc. is a $9.5
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
2023 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; any
remaining uncertainties with 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; 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; ESG 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 and geopolitical tensions
and conflicts between nations.
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, 2023, 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 on 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
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands, except per share data)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
$118,577
|
|
$117,443
|
|
$102,724
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
8,595
|
|
8,491
|
|
7,457
|
|
Tax-exempt
|
193
|
|
210
|
|
214
|
|
Dividends
|
389
|
|
562
|
|
508
|
|
Total Interest and
Dividend Income
|
127,754
|
|
126,706
|
|
110,903
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
36,662
|
|
32,921
|
|
14,903
|
|
Borrowings, junior
subordinated debt securities and other
|
7,615
|
|
8,676
|
|
7,209
|
|
Total Interest
Expense
|
44,277
|
|
41,597
|
|
22,112
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
83,477
|
|
85,109
|
|
88,791
|
|
Provision for credit
losses
|
2,627
|
|
943
|
|
922
|
|
Net Interest Income
After Provision for Credit Losses
|
80,850
|
|
84,166
|
|
87,869
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain on sale of
securities
|
3
|
|
—
|
|
—
|
|
Debit and credit
card
|
4,235
|
|
4,540
|
|
4,373
|
|
Service charges on
deposit accounts
|
3,828
|
|
4,129
|
|
4,076
|
|
Wealth
management
|
3,042
|
|
3,050
|
|
2,948
|
|
Mortgage
banking
|
277
|
|
280
|
|
301
|
|
Other
|
1,445
|
|
6,062
|
|
1,492
|
|
Total Noninterest
Income
|
12,830
|
|
18,061
|
|
13,190
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
29,512
|
|
30,949
|
|
27,601
|
|
Data processing and
information technology
|
4,954
|
|
4,523
|
|
4,258
|
|
Occupancy
|
3,870
|
|
3,598
|
|
3,835
|
|
Furniture, equipment
and software
|
3,472
|
|
3,734
|
|
2,861
|
|
Marketing
|
1,943
|
|
1,435
|
|
1,853
|
|
Other taxes
|
1,871
|
|
1,870
|
|
1,790
|
|
Professional services
and legal
|
1,720
|
|
1,968
|
|
1,821
|
|
FDIC
insurance
|
1,049
|
|
1,049
|
|
1,012
|
|
Other noninterest
expense
|
6,129
|
|
7,077
|
|
6,668
|
|
Total Noninterest
Expense
|
54,520
|
|
56,203
|
|
51,699
|
|
Income Before
Taxes
|
39,160
|
|
46,024
|
|
49,360
|
|
Income tax
expense
|
7,921
|
|
8,977
|
|
9,561
|
|
Net
Income
|
$31,239
|
|
$37,047
|
|
$39,799
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
38,233,280
|
|
38,232,806
|
|
38,998,156
|
|
Average shares
outstanding - diluted
|
38,418,085
|
|
38,379,493
|
|
39,032,062
|
|
Diluted earnings per
share
|
$0.81
|
|
$0.96
|
|
$1.02
|
|
Dividends declared per
share
|
$0.33
|
|
$0.33
|
|
$0.32
|
|
Dividend yield
(annualized)
|
4.11 %
|
|
3.95 %
|
|
4.07 %
|
|
Dividends paid to net
income
|
40.39 %
|
|
34.04 %
|
|
31.10 %
|
|
Book value
|
$33.87
|
|
$33.57
|
|
$31.48
|
|
Tangible book value
(1)
|
$24.03
|
|
$23.72
|
|
$21.81
|
|
Market value
|
$32.08
|
|
$33.42
|
|
$31.45
|
|
|
|
|
|
|
|
|
Profitability Ratios
(Annualized)
|
|
|
|
|
|
|
Return on average
assets
|
1.32 %
|
|
1.55 %
|
|
1.77 %
|
|
Return on average
shareholders' equity
|
9.74 %
|
|
11.79 %
|
|
13.38 %
|
|
Return on average
tangible shareholders' equity(2)
|
13.85 %
|
|
17.00 %
|
|
19.61 %
|
|
Pre-provision net
revenue / average assets(3)
|
1.76 %
|
|
1.97 %
|
|
2.23 %
|
|
Efficiency ratio
(FTE)(4)
|
56.21 %
|
|
54.12 %
|
|
50.42 %
|
|
|
|
|
|
|
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks
|
$207,462
|
|
$233,612
|
|
$244,152
|
|
Securities available
for sale, at fair value
|
970,728
|
|
970,391
|
|
998,708
|
|
Loans held for
sale
|
—
|
|
153
|
|
81
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
3,367,722
|
|
3,357,603
|
|
3,145,079
|
|
Commercial and
industrial
|
1,597,119
|
|
1,642,106
|
|
1,709,612
|
|
Commercial
construction
|
360,086
|
|
363,284
|
|
393,658
|
|
Total Commercial
Loans
|
5,324,927
|
|
5,362,993
|
|
5,248,349
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
1,500,499
|
|
1,461,097
|
|
1,189,220
|
|
Home equity
|
645,780
|
|
650,666
|
|
649,590
|
|
Installment and other
consumer
|
108,232
|
|
114,897
|
|
119,843
|
|
Consumer
construction
|
76,596
|
|
63,688
|
|
44,062
|
|
Total Consumer
Loans
|
2,331,107
|
|
2,290,348
|
|
2,002,715
|
|
Total Portfolio
Loans
|
7,656,034
|
|
7,653,341
|
|
7,251,064
|
|
Allowance for credit
losses
|
(104,802)
|
|
(107,966)
|
|
(108,113)
|
|
Total Portfolio
Loans, Net
|
7,551,232
|
|
7,545,375
|
|
7,142,951
|
|
Federal Home Loan Bank
and other restricted stock, at cost
|
13,703
|
|
25,082
|
|
30,262
|
|
Goodwill
|
373,424
|
|
373,424
|
|
373,424
|
|
Other assets
|
422,554
|
|
403,489
|
|
403,864
|
|
Total
Assets
|
$9,539,103
|
|
$9,551,526
|
|
$9,193,442
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$2,188,927
|
|
$2,221,942
|
|
$2,468,638
|
|
Interest-bearing
demand
|
848,729
|
|
825,787
|
|
841,130
|
|
Money
market
|
1,882,157
|
|
1,941,842
|
|
1,599,814
|
|
Savings
|
936,056
|
|
950,546
|
|
1,068,274
|
|
Certificates of
deposit
|
1,744,478
|
|
1,581,652
|
|
1,175,238
|
|
Total
Deposits
|
7,600,347
|
|
7,521,769
|
|
7,153,094
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
Short-term
borrowings
|
285,000
|
|
415,000
|
|
495,000
|
|
Long-term
borrowings
|
39,156
|
|
39,277
|
|
14,628
|
|
Junior subordinated
debt securities
|
49,373
|
|
49,358
|
|
54,468
|
|
Total
Borrowings
|
373,529
|
|
503,635
|
|
564,096
|
|
Other
liabilities
|
270,153
|
|
242,677
|
|
248,457
|
|
Total
Liabilities
|
8,244,029
|
|
8,268,081
|
|
7,965,647
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
1,295,074
|
|
1,283,445
|
|
1,227,795
|
|
Total Liabilities
and Shareholders' Equity
|
$9,539,103
|
|
$9,551,526
|
|
$9,193,442
|
|
|
|
|
|
|
|
|
Capitalization
Ratios
|
|
|
|
|
|
|
Shareholders' equity /
assets
|
13.58 %
|
|
13.44 %
|
|
13.36 %
|
|
Tangible common equity
/ tangible assets(5)
|
10.03 %
|
|
9.88 %
|
|
9.65 %
|
|
Tier 1 leverage
ratio
|
11.30 %
|
|
11.21 %
|
|
11.15 %
|
|
Common equity tier 1
capital
|
13.59 %
|
|
13.37 %
|
|
13.10 %
|
|
Risk-based capital -
tier 1
|
13.91 %
|
|
13.69 %
|
|
13.50 %
|
|
Risk-based capital -
total
|
15.49 %
|
|
15.27 %
|
|
15.09 %
|
|
|
|
|
|
|
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Net Interest Margin
(FTE) (QTD Averages)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
$144,637
|
5.75 %
|
$149,985
|
5.92 %
|
$140,499
|
4.22 %
|
|
Securities, at fair
value
|
966,703
|
2.81 %
|
956,107
|
2.75 %
|
1,000,609
|
2.51 %
|
|
Loans held for
sale
|
176
|
7.12 %
|
57
|
7.25 %
|
126
|
6.39 %
|
|
Commercial real
estate
|
3,365,142
|
5.92 %
|
3,312,509
|
5.86 %
|
3,132,382
|
5.45 %
|
|
Commercial and
industrial
|
1,626,633
|
7.36 %
|
1,621,091
|
7.29 %
|
1,711,113
|
6.76 %
|
|
Commercial
construction
|
365,088
|
7.70 %
|
381,294
|
7.55 %
|
388,795
|
7.23 %
|
|
Total Commercial
Loans
|
5,356,863
|
6.48 %
|
5,314,894
|
6.42 %
|
5,232,290
|
6.01 %
|
|
Residential
mortgage
|
1,478,609
|
4.93 %
|
1,417,891
|
4.81 %
|
1,144,821
|
4.43 %
|
|
Home equity
|
648,265
|
6.99 %
|
650,721
|
6.94 %
|
650,385
|
6.28 %
|
|
Installment and other
consumer
|
110,899
|
8.64 %
|
114,720
|
9.15 %
|
122,873
|
7.80 %
|
|
Consumer
construction
|
69,676
|
5.60 %
|
62,850
|
5.22 %
|
45,870
|
4.67 %
|
|
Total Consumer
Loans
|
2,307,449
|
5.71 %
|
2,246,182
|
5.66 %
|
1,963,949
|
5.26 %
|
|
Total Portfolio
Loans
|
7,664,312
|
6.25 %
|
7,561,076
|
6.19 %
|
7,196,239
|
5.81 %
|
|
Total
Loans
|
7,664,488
|
6.25 %
|
7,561,133
|
6.19 %
|
7,196,365
|
5.81 %
|
|
Total other earning
assets
|
25,335
|
7.12 %
|
37,502
|
7.23 %
|
34,720
|
6.71 %
|
|
Total
Interest-earning Assets
|
8,801,163
|
5.86 %
|
8,704,727
|
5.81 %
|
8,372,193
|
5.39 %
|
|
Noninterest-earning
assets
|
737,742
|
|
768,942
|
|
754,677
|
|
|
Total
Assets
|
$9,538,905
|
|
$9,473,669
|
|
$9,126,870
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$829,095
|
1.12 %
|
$836,771
|
1.03 %
|
$824,623
|
0.33 %
|
|
Money
market
|
1,920,009
|
3.15 %
|
1,843,338
|
2.98 %
|
1,670,988
|
1.88 %
|
|
Savings
|
939,467
|
0.63 %
|
957,903
|
0.57 %
|
1,090,137
|
0.30 %
|
|
Certificates of
deposit
|
1,639,059
|
4.37 %
|
1,533,266
|
4.02 %
|
1,052,460
|
2.19 %
|
|
Total
Interest-bearing Deposits
|
5,327,630
|
2.77 %
|
5,171,278
|
2.53 %
|
4,638,208
|
1.30 %
|
|
Short-term
borrowings
|
408,351
|
5.37 %
|
435,060
|
5.75 %
|
451,668
|
4.93 %
|
|
Long-term
borrowings
|
39,221
|
4.53 %
|
39,341
|
4.53 %
|
14,689
|
2.71 %
|
|
Junior subordinated
debt securities
|
49,364
|
8.23 %
|
49,350
|
8.25 %
|
54,458
|
7.50 %
|
|
Total
Borrowings
|
496,936
|
5.59 %
|
523,751
|
5.90 %
|
520,815
|
5.13 %
|
|
Total Other
Interest-bearing Liabilities
|
52,239
|
5.42 %
|
65,547
|
5.40 %
|
54,669
|
4.58 %
|
|
Total
Interest-bearing Liabilities
|
5,876,805
|
3.03 %
|
5,760,576
|
2.86 %
|
5,213,692
|
1.72 %
|
|
Noninterest-bearing
liabilities
|
2,371,586
|
|
2,466,063
|
|
2,706,820
|
|
|
Shareholders'
equity
|
1,290,514
|
|
1,247,030
|
|
1,206,358
|
|
|
Total Liabilities
and Shareholders' Equity
|
$9,538,905
|
|
$9,473,669
|
|
$9,126,870
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin(6)
|
|
3.84 %
|
|
3.92 %
|
|
4.32 %
|
|
|
|
|
|
|
|
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Nonaccrual
Loans
|
|
|
|
|
|
|
|
Commercial
loans:
|
|
%
Loans
|
|
%
Loans
|
|
%
Loans
|
|
Commercial real
estate
|
$18,082
|
0.54 %
|
$7,267
|
0.22 %
|
$7,931
|
0.25 %
|
|
Commercial and
industrial
|
3,092
|
0.19 %
|
3,244
|
0.20 %
|
9,348
|
0.55 %
|
|
Commercial
construction
|
4,960
|
1.38 %
|
4,960
|
1.37 %
|
384
|
0.10 %
|
|
Total Nonaccrual
Commercial Loans
|
26,134
|
0.49 %
|
15,471
|
0.29 %
|
17,663
|
0.34 %
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
Residential
mortgage
|
4,160
|
0.28 %
|
4,579
|
0.31 %
|
4,749
|
0.40 %
|
|
Home equity
|
2,709
|
0.42 %
|
2,567
|
0.39 %
|
1,915
|
0.29 %
|
|
Installment and other
consumer
|
206
|
0.19 %
|
330
|
0.29 %
|
317
|
0.26 %
|
|
Total Nonaccrual
Consumer Loans
|
7,075
|
0.30 %
|
7,476
|
0.33 %
|
6,981
|
0.35 %
|
|
Total Nonaccrual
Loans
|
$33,209
|
0.43 %
|
$22,947
|
0.30 %
|
$24,644
|
0.34 %
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Charge-offs
|
$6,939
|
|
$3,880
|
|
$4,459
|
|
Recoveries
|
(350)
|
|
(260)
|
|
(9,574)
|
|
Net Loan Charge-offs
(Recoveries)
|
$6,589
|
|
$3,620
|
|
($5,115)
|
|
|
|
|
|
|
|
|
Net Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Customer
fraud
|
$—
|
|
$—
|
|
($9,329)
|
|
Commercial real
estate
|
$5,238
|
|
$1,690
|
|
($25)
|
|
Commercial and
industrial
|
950
|
|
949
|
|
3,948
|
|
Commercial
construction
|
—
|
|
451
|
|
(2)
|
|
Total Commercial Loan
Charge-offs (Recoveries)
|
6,188
|
|
3,090
|
|
(5,408)
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
7
|
|
(3)
|
|
9
|
|
Home equity
|
105
|
|
148
|
|
31
|
|
Installment and other
consumer
|
289
|
|
385
|
|
253
|
|
Total Consumer Loan
Charge-offs
|
401
|
|
530
|
|
293
|
|
Total Net Loan
Charge-offs (Recoveries)
|
$6,589
|
|
$3,620
|
|
($5,115)
|
|
|
|
|
|
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Nonaccrual
loans
|
$33,209
|
|
$22,947
|
|
$24,644
|
|
OREO
|
140
|
|
75
|
|
3,076
|
|
Total nonperforming
assets
|
33,349
|
|
23,022
|
|
27,720
|
|
Nonaccrual loans /
total loans
|
0.43 %
|
|
0.30 %
|
|
0.34 %
|
|
Nonperforming assets /
total loans plus OREO
|
0.44 %
|
|
0.30 %
|
|
0.38 %
|
|
Allowance for credit
losses / total portfolio loans
|
1.37 %
|
|
1.41 %
|
|
1.49 %
|
|
Allowance for credit
losses / nonaccrual loans
|
316 %
|
|
471 %
|
|
439 %
|
|
Net loan charge-offs
(recoveries)
|
$6,589
|
|
$3,620
|
|
($5,115)
|
|
Net loan charge-offs
(recoveries) (annualized) / average loans
|
0.35 %
|
|
0.19 %
|
|
(0.29 %)
|
|
S&T Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars and shares
in thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(1) Tangible Book
Value (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,295,074
|
|
$1,283,445
|
|
$1,227,795
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,396)
|
|
(376,631)
|
|
(377,405)
|
|
Tangible common equity
(non-GAAP)
|
$918,678
|
|
$906,814
|
|
$850,390
|
|
Common shares
outstanding
|
38,233
|
|
38,233
|
|
38,998
|
|
Tangible book value
(non-GAAP)
|
$24.03
|
|
$23.72
|
|
$21.81
|
|
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)
|
$125,643
|
|
$146,980
|
|
$161,407
|
|
Plus: amortization of
intangibles (annualized), net of tax
|
944
|
|
1,003
|
|
1,085
|
|
Net income before
amortization of intangibles (annualized)
|
$126,587
|
|
$147,983
|
|
$162,492
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
$1,290,514
|
|
$1,247,030
|
|
$1,206,358
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
(376,518)
|
|
(376,761)
|
|
(377,576)
|
|
Average tangible
equity (non-GAAP)
|
$913,996
|
|
$870,269
|
|
$828,782
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
13.85 %
|
|
17.00 %
|
|
19.61 %
|
|
Return on average
tangible shareholders' equity is a key profitability metric used by
management to measure financial performance.
|
|
|
|
|
|
|
|
(3) Pre-provision
Net Revenue / Average Assets (non-GAAP)
|
|
|
|
|
|
|
Income before
taxes
|
$39,160
|
|
$46,024
|
|
$49,360
|
|
Plus: Provision for
credit losses
|
2,627
|
|
943
|
|
922
|
|
Total
|
$41,787
|
|
$46,967
|
|
$50,282
|
|
Total (annualized)
(non-GAAP)
|
$168,066
|
|
$186,336
|
|
$203,921
|
|
Average
assets
|
$9,538,905
|
|
$9,473,669
|
|
$9,126,870
|
|
Pre-provision Net
Revenue / Average Assets (non-GAAP)
|
1.76 %
|
|
1.97 %
|
|
2.23 %
|
|
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
|
$54,520
|
|
$56,203
|
|
$51,699
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
$83,477
|
|
$85,109
|
|
$88,791
|
|
Plus: taxable
equivalent adjustment
|
692
|
|
683
|
|
555
|
|
Net interest income
(FTE) (non-GAAP)
|
84,169
|
|
85,792
|
|
89,346
|
|
Noninterest
income
|
12,830
|
|
18,061
|
|
13,190
|
|
Less: net gains on
sale of securities
|
(3)
|
|
—
|
|
—
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
$96,996
|
|
$103,853
|
|
$102,536
|
|
Efficiency ratio
(non-GAAP)
|
56.21 %
|
|
54.12 %
|
|
50.42 %
|
|
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:
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
First
|
|
Fourth
|
|
First
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(5) Tangible Common
Equity / Tangible Assets (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,295,074
|
|
$1,283,445
|
|
$1,227,795
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,396)
|
|
(376,631)
|
|
(377,405)
|
|
Tangible common equity
(non-GAAP)
|
$918,678
|
|
$906,814
|
|
$850,390
|
|
|
|
|
|
|
|
|
Total
assets
|
$9,539,103
|
|
$9,551,526
|
|
$9,193,442
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,396)
|
|
(376,631)
|
|
(377,405)
|
|
Tangible assets
(non-GAAP)
|
$9,162,707
|
|
$9,174,895
|
|
$8,816,037
|
|
Tangible common equity
to tangible assets (non-GAAP)
|
10.03 %
|
|
9.88 %
|
|
9.65 %
|
|
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
|
$127,754
|
|
$126,706
|
|
$110,903
|
|
Less: interest
expense
|
(44,277)
|
|
(41,597)
|
|
(22,112)
|
|
Net interest income
per consolidated statements of net income
|
83,477
|
|
85,109
|
|
88,791
|
|
Plus: taxable
equivalent adjustment
|
692
|
|
683
|
|
555
|
|
Net interest income
(FTE) (non-GAAP)
|
$84,169
|
|
$85,792
|
|
$89,346
|
|
Net interest income
(FTE) (annualized)
|
$338,526
|
|
$340,370
|
|
$362,348
|
|
Average
interest-earning assets
|
$8,801,163
|
|
$8,704,727
|
|
$8,372,193
|
|
Net interest margin
(FTE) (non-GAAP)
|
3.84 %
|
|
3.92 %
|
|
4.32 %
|
|
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.