S&T Bancorp, Inc. Announces Third Quarter 2012 Results
PR Newswire
INDIANA, Pa., Oct. 23, 2012
INDIANA, Pa., Oct. 23, 2012 /PRNewswire/ — S&T Bancorp, Inc. (NASDAQ: STBA), a full-service financial institution with office locations in 11 Pennsylvania counties, has announced its third quarter 2012 results.
Todd D. Brice, president and chief executive officer of S&T Bancorp, Inc., offered the following highlights:
- Third quarter earnings improved to $12.6 million compared to $8.6 million in the second quarter of 2012 and $12.2 million in the third quarter of 2011. Diluted earnings per common share of $0.43 compared to $0.30 in the second quarter of 2012 and $0.44 in the third quarter of 2011.
- The merger with Gateway Bank of Pennsylvania was completed on August 13, 2012 adding $100 million of loans and $105 million of deposits.
- Asset quality metrics showed improvement from the prior quarter, including significantly reduced net loan charge-offs of $2.7 million compared to $8.2 million in the second quarter of 2012 and $8.0 million in the third quarter of 2011.
“Our third-quarter results show continued stabilization in our loan portfolio, both in terms of growth and asset quality. We have seen a lift in organic lending activity which should help us to offset the pressures that we have experienced from payoffs in our loan portfolio,” said Todd Brice, president and chief executive officer of S&T Bancorp, Inc.
“We are also excited about our partnership with Gateway Bank which closed this quarter as it extends our footprint into a vibrant Washington County market. In addition, we are adding some very experienced bankers to our team who will benefit by having access to an expanded mix of products and services as well as increased lending limits.”
Merger Activity
On August 13, 2012, Gateway Bank of Pennsylvania, now Gateway Bank, was acquired by S&T Bancorp, Inc. Gateway Bank has a branch in McMurray and a branch in Cranberry Township, adding approximately $100 million of loans and $105 million of deposits. Gateway Bank will merge into S&T Bank in the first quarter of 2013. The third quarter of 2012 results included one-time merger related expenses of $0.6 million, or $0.01 per share.
Year-to-date merger expenses approximate $5.3 million, or $0.12 per share, as a result of both the Mainline and Gateway Bank mergers. Combined, these two mergers have added approximately $230 million of loans and $310 million of deposits and expanded our branch network by 10 locations.
Net Interest Income (FTE)
Net interest income was unchanged at $34.9 million for both the second and third quarters of 2012 and the third quarter of 2011. Our net interest margin continues to be impacted by the low interest rate environment, declining to 3.50% as compared to 3.57% in the prior quarter and 3.76% in the third quarter of 2011. Total average interest-earning assets increased this quarter by $39.8 million, primarily the result of the Gateway acquisition. The decline in net interest margin this quarter is due to the yield on loans decreasing 15 basis points from the second quarter of 2012 to 4.52% as the rates on new loans are lower than the rates on loans being replaced from early payoffs and normal amortization. The decline in our cost of funds this quarter to 0.70% from 0.77% in the second quarter was not sufficient to offset the decline in loans. The improvement in our cost of funds was primarily due to lower offered rates on maturing certificates of deposit and an improved deposit mix.
Asset Quality
Asset quality metrics improved from the prior quarter, with nonperforming assets (NPAs) of $67.6 million or 2.06% of total loans plus OREO compared to $72.0 million or 2.25% in the second quarter of 2012. NPAs were $65.2 million or 2.08% of total loans plus OREO in the same period a year ago. Net charge-offs for the third quarter of 2012 were $2.7 million, compared to $8.2 million in the second quarter of 2012 and $8.0 million in the third quarter of 2011. The provision for loan losses decreased to $2.3 million this quarter compared to $7.0 million in the second quarter of 2012 and increased from $1.5 million in the third quarter of 2011. The allowance for loan losses (ALL) remains relatively unchanged from the prior quarter at $46.3 million or 1.41% compared to $46.7 million or 1.46% at June 30, 2012 and $51.5 million or 1.64% at September 30, 2011.
Noninterest Income and Expense
Security gains of $2.2 million were recognized in the third quarter of 2012 compared to nominal gains in both the second quarter of 2012 and third quarter of 2011. The gains were the result of a sale of one equity position in a financial institution after a recent merger announcement. Year-to-date gains were $3.0 million including a gain in the first quarter of $0.8 million related to another sale of an equity position in a recently acquired financial institution.
Noninterest income was little changed from the prior quarter at $12.6 million compared to $12.5 million in the second quarter of 2012 and up from $10.4 million in the third quarter of 2011. The increased fee income from the third quarter of 2011 is due to strong performance in our mortgage banking and wealth management businesses. Noninterest expense increased $1.7 million to $31.0 million from prior quarter of $29.3 million. Approximately $0.6 million of the increase related to one-time merger related expenses, including $0.4 million for legal and consulting fees and $0.2 million for change in control, severance and other employee costs. Operating expenses increased by $0.5 million during the quarter due to the addition of two Gateway branches. The reserve for unfunded commitments increased by $0.4 million from the second quarter of 2012, primarily due to an increase in construction commitments.
Financial Condition
Assets increased to $4.4 billion at September 30, 2012 compared to $4.3 billion at June 30, 2012 and $4.1 billion at September 30, 2011. The increase is a result of the Mainline and Gateway acquisitions which added $368 million in total assets.
S&T’s capital ratios improved from the prior quarter but are down from the year ago quarter due to the redemption of preferred stock from the U.S. Department of Treasury’s Capital Purchase Program in the fourth quarter of 2011. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies with a tier 1 leverage capital ratio of 9.27%, tier 1 risk-based capital ratio of 12.01% and total risk-based capital ratio of 15.45%.
Conference Call
S&T Bancorp, Inc. will host its third quarter 2012 earnings conference call live over the Internet at 1:00 p.m. ET on Tuesday, October 23, 2012. To access the webcast, go to S&T Bancorp’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “3rd Quarter 2012 Conference Call” and follow the instructions.
About S&T Bancorp, Inc.
Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson, Washington and Westmoreland counties. With assets of $4.4 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System under the symbol STBA. For more information, visit www.stbancorp.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, 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 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.
|
S&T Bancorp, Inc. |
||||||
|
Consolidated Selected Financial Data |
||||||
|
Unaudited |
||||||
|
(in thousands, except per share data) |
||||||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Income Statements |
||||||
|
Interest Income |
$38,820 |
$39,370 |
$40,845 |
|||
|
Interest Expense |
5,025 |
5,551 |
6,976 |
|||
|
Net Interest Income |
33,795 |
33,819 |
33,869 |
|||
|
Taxable Equivalent Adjustment |
1,119 |
1,129 |
1,002 |
|||
|
Net Interest Income (FTE) (2) |
34,914 |
34,948 |
34,871 |
|||
|
Provision for Loan Losses |
2,305 |
7,023 |
1,535 |
|||
|
Net Interest Income After Provision (FTE) |
32,609 |
27,925 |
33,336 |
|||
|
Security Gains (Losses) , Net |
2,170 |
6 |
(81) |
|||
|
Wealth Management |
2,397 |
2,577 |
1,965 |
|||
|
Service Charges and Fees |
2,567 |
2,432 |
2,683 |
|||
|
Insurance |
2,402 |
2,111 |
2,192 |
|||
|
Other |
5,210 |
5,405 |
3,584 |
|||
|
Total Noninterest Income |
12,576 |
12,525 |
10,424 |
|||
|
Salaries and Employee Benefits |
14,819 |
14,641 |
11,741 |
|||
|
Occupancy and Equipment Expense, Net |
3,392 |
3,041 |
2,916 |
|||
|
Data Processing Expense |
2,012 |
2,195 |
1,743 |
|||
|
FDIC Expense |
838 |
719 |
749 |
|||
|
Other |
9,957 |
8,748 |
7,044 |
|||
|
Total Noninterest Expense |
31,018 |
29,344 |
24,193 |
|||
|
Income Before Taxes |
16,337 |
11,112 |
19,486 |
|||
|
Taxable Equivalent Adjustment |
1,119 |
1,129 |
1,002 |
|||
|
Applicable Income Taxes |
2,623 |
1,383 |
4,681 |
|||
|
Net Income |
12,595 |
8,600 |
13,803 |
|||
|
Preferred Stock Dividends and Discount Amortization |
– |
– |
1,559 |
|||
|
Net Income Available to Common Shareholders |
$12,595 |
$8,600 |
$12,244 |
|||
|
Per Common Share Data: |
||||||
|
Shares Outstanding at End of Period |
29,733,592 |
28,935,689 |
28,106,451 |
|||
|
Average Shares Outstanding – Diluted |
29,277,232 |
28,810,754 |
28,025,419 |
|||
|
Diluted Earnings Per Common Share * |
$0.43 |
$0.30 |
$0.44 |
|||
|
Dividends Declared |
$0.15 |
$0.15 |
$0.15 |
|||
|
Common Book Value |
$17.97 |
$17.65 |
$17.68 |
|||
|
Tangible Common Book Value (1) |
$11.86 |
$11.52 |
$11.58 |
|||
|
Market Value |
$17.61 |
$18.47 |
$16.16 |
|||
|
* 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. |
||||||
|
S&T Bancorp, Inc. |
|||||
|
Consolidated Selected Financial Data |
|||||
|
Unaudited |
|||||
|
(in thousands, except per share data) |
|||||
|
For the Nine Months Ended September 30, |
|||||
|
2012 |
2011 |
||||
|
Income Statements |
|||||
|
Interest Income |
$117,330 |
$124,820 |
|||
|
Interest Expense |
16,395 |
21,541 |
|||
|
Net Interest Income |
100,935 |
103,279 |
|||
|
Taxable Equivalent Adjustment |
3,378 |
3,054 |
|||
|
Net Interest Income (FTE) (3) |
104,313 |
106,333 |
|||
|
Provision for Loan Losses |
18,600 |
13,272 |
|||
|
Net Interest Income After Provision (FTE) |
85,713 |
93,061 |
|||
|
Security Gains (Losses), Net |
3,016 |
(124) |
|||
|
Wealth Management |
7,393 |
6,159 |
|||
|
Service Charges and Fees |
7,407 |
7,356 |
|||
|
Insurance |
6,725 |
6,505 |
|||
|
Other |
15,806 |
12,587 |
|||
|
Total Noninterest Income |
37,331 |
32,607 |
|||
|
Salaries and Employee Benefits |
45,933 |
37,632 |
|||
|
Occupancy and Equipment Expense, Net |
9,455 |
9,053 |
|||
|
Data Processing Expense |
7,448 |
4,928 |
|||
|
FDIC Expense |
2,164 |
2,892 |
|||
|
Other |
28,146 |
22,731 |
|||
|
Total Noninterest Expense |
93,146 |
77,236 |
|||
|
Income Before Taxes |
32,914 |
48,308 |
|||
|
Taxable Equivalent Adjustment |
3,378 |
3,054 |
|||
|
Applicable Income Taxes |
4,861 |
10,246 |
|||
|
Net Income |
24,675 |
35,008 |
|||
|
Preferred Stock Dividends and Discount Amortization |
– |
4,672 |
|||
|
Net Income Available to Common Shareholders |
$24,675 |
$30,336 |
|||
|
Per Common Share Data: |
|||||
|
Average Shares Outstanding – Diluted |
28,774,196 |
27,971,837 |
|||
|
Diluted Earnings Per Common Share* |
$0.85 |
$1.08 |
|||
|
Dividends Declared |
$0.45 |
$0.45 |
|||
|
* 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. |
|||||
|
S&T Bancorp, Inc. |
||||||
|
Consolidated Selected Financial Data |
||||||
|
Unaudited |
||||||
|
(in thousands) |
||||||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Net Interest Margin (FTE) (QTD Averages)(2) |
||||||
|
Assets |
||||||
|
Loans |
$3,226,219 |
4.52% |
$3,203,349 |
4.67% |
$3,171,379 |
4.85% |
|
Interest-bearing Deposits with Banks |
329,985 |
0.28% |
330,647 |
0.22% |
150,833 |
0.21% |
|
Securities |
404,881 |
2.89% |
387,305 |
3.15% |
359,742 |
3.31% |
|
Total Interest-earning Assets |
3,961,085 |
4.00% |
3,921,301 |
4.14% |
3,681,954 |
4.51% |
|
Noninterest-earning Assets |
411,528 |
404,124 |
376,077 |
|||
|
Total Assets |
$4,372,613 |
$4,325,425 |
$4,058,031 |
|||
|
Liabilities and Shareholders’ Equity |
||||||
|
NOW/Money Market/Savings |
$1,567,005 |
0.21% |
$1,489,524 |
0.22% |
$1,287,489 |
0.14% |
|
Certificates of Deposit |
1,079,894 |
1.15% |
1,146,931 |
1.28% |
1,159,557 |
1.81% |
|
Borrowed Funds < 1 Year |
94,789 |
0.23% |
121,507 |
0.22% |
41,257 |
0.12% |
|
Borrowed Funds > 1 Year |
125,511 |
3.20% |
125,153 |
3.23% |
123,103 |
3.93% |
|
Total Interest-bearing Liabilities |
2,867,199 |
0.70% |
2,883,115 |
0.77% |
2,611,406 |
1.06% |
|
Noninterest-bearing Liabilities |
||||||
|
Demand Deposits |
903,949 |
864,437 |
799,247 |
|||
|
Shareholders’ Equity/Other |
601,465 |
577,873 |
647,378 |
|||
|
Total Noninterest-bearing Liabilities |
1,505,414 |
1,442,310 |
1,446,625 |
|||
|
Total Liabilities and Shareholders’ Equity |
$4,372,613 |
$4,325,425 |
$4,058,031 |
|||
|
Net Interest Margin |
3.50% |
3.57% |
3.76% |
|||
|
For the Nine Months Ended September 30, |
||||||
|
2012 |
2011 |
|||||
|
Net Interest Margin (FTE) (YTD Averages)(3) |
||||||
|
Assets |
||||||
|
Loans |
$3,188,500 |
4.64% |
$3,247,433 |
4.89% |
||
|
Interest-bearing Deposits with Banks |
297,410 |
0.24% |
101,469 |
0.22% |
||
|
Securities |
391,295 |
3.10% |
350,355 |
3.41% |
||
|
Total Interest-earning Assets |
3,877,205 |
4.15% |
3,699,257 |
4.62% |
||
|
Noninterest-earning Assets |
403,034 |
374,278 |
||||
|
Total Assets |
$4,280,239 |
$4,073,535 |
||||
|
Liabilities and Shareholders’ Equity |
||||||
|
NOW/Money Market/Savings |
$1,486,421 |
0.20% |
$1,283,571 |
0.16% |
||
|
Certificates of Deposit |
1,119,692 |
1.30% |
1,197,426 |
1.81% |
||
|
Borrowed Funds < 1 Year |
109,692 |
0.22% |
42,430 |
0.14% |
||
|
Borrowed Funds > 1 Year |
124,297 |
3.25% |
122,139 |
4.09% |
||
|
Total Interest-bearing Liabilities |
2,840,102 |
0.77% |
2,645,566 |
1.09% |
||
|
Noninterest-bearing Liabilities |
||||||
|
Demand Deposits |
859,446 |
790,459 |
||||
|
Shareholders’ Equity/Other |
580,691 |
637,510 |
||||
|
Total Noninterest-bearing Liabilities |
1,440,137 |
1,427,969 |
||||
|
Total Liabilities and Shareholders’ Equity |
$4,280,239 |
$4,073,535 |
||||
|
Net Interest Margin |
3.58% |
3.84% |
||||
|
S&T Bancorp, Inc. |
||||||
|
Consolidated Selected Financial Data |
||||||
|
Unaudited |
||||||
|
(in thousands) |
||||||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Balance Sheets (Period-End) |
||||||
|
Assets |
||||||
|
Cash |
$62,457 |
$60,057 |
$58,508 |
|||
|
Interest-bearing Deposits with Banks |
284,619 |
343,187 |
203,898 |
|||
|
Securities |
432,057 |
387,110 |
359,298 |
|||
|
Loans, Net |
3,236,066 |
3,151,033 |
3,084,609 |
|||
|
Other Assets |
407,059 |
406,005 |
385,657 |
|||
|
Total Assets |
$4,422,258 |
$4,347,392 |
$4,091,970 |
|||
|
Liabilities and Shareholders’ Equity |
||||||
|
Noninterest-bearing Demand Deposits |
$928,000 |
$887,442 |
$817,518 |
|||
|
Interest-bearing Deposits |
2,666,406 |
2,630,531 |
2,453,913 |
|||
|
Short-term Borrowings |
80,268 |
121,740 |
42,409 |
|||
|
Long-term Debt |
125,281 |
125,837 |
122,938 |
|||
|
Other Liabilities |
88,061 |
71,266 |
51,518 |
|||
|
Shareholders’ Equity |
534,242 |
510,576 |
603,674 |
|||
|
Total Liabilities and Shareholders’ Equity |
$4,422,258 |
$4,347,392 |
$4,091,970 |
|||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Loans (Period-End) |
||||||
|
Consumer |
||||||
|
Home Equity |
$447,123 |
$434,329 |
$423,166 |
|||
|
Residential Mortgage |
409,967 |
398,412 |
350,619 |
|||
|
Installment & Other Consumer |
75,157 |
78,768 |
68,049 |
|||
|
Construction |
2,098 |
2,208 |
3,111 |
|||
|
Total Consumer Loans |
934,345 |
913,717 |
844,945 |
|||
|
Commercial |
||||||
|
Commercial Real Estate |
1,438,526 |
1,401,751 |
1,414,398 |
|||
|
Commercial & Industrial |
748,569 |
717,107 |
681,866 |
|||
|
Construction |
157,717 |
162,872 |
190,974 |
|||
|
Total Commercial Loans |
2,344,812 |
2,281,730 |
2,287,238 |
|||
|
Total Portfolio Loans |
3,279,157 |
3,195,447 |
3,132,183 |
|||
|
Loans Held for Sale |
3,188 |
2,275 |
3,959 |
|||
|
Total Loans |
$3,282,345 |
$3,197,722 |
$3,136,142 |
|||
|
Nonperforming Loans (NPL) |
||||||
|
Consumer |
% NPL |
% NPL |
% NPL |
|||
|
Home Equity |
$3,994 |
0.89% |
$3,397 |
0.78% |
$3,095 |
0.73% |
|
Residential Mortgage |
7,584 |
1.85% |
8,964 |
2.25% |
6,719 |
1.92% |
|
Installment & Other Consumer |
49 |
0.07% |
41 |
0.05% |
15 |
0.02% |
|
Construction |
399 |
19.02% |
399 |
18.07% |
181 |
5.82% |
|
Total Consumer Loans |
12,026 |
1.29% |
$12,801 |
1.40% |
10,010 |
1.18% |
|
Commercial |
||||||
|
Commercial Real Estate |
32,828 |
2.28% |
35,916 |
2.56% |
34,524 |
2.44% |
|
Commercial & Industrial |
6,851 |
0.92% |
6,750 |
0.94% |
6,002 |
0.88% |
|
Construction |
14,411 |
9.14% |
13,646 |
8.38% |
8,703 |
4.56% |
|
Total Commercial Loans |
54,090 |
2.31% |
56,312 |
2.47% |
49,229 |
2.15% |
|
Total Nonperforming Loans |
$66,116 |
2.02% |
$69,113 |
2.16% |
$59,239 |
1.89% |
|
S&T Bancorp, Inc. |
||||||
|
Consolidated Selected Financial Data |
||||||
|
Unaudited |
||||||
|
(in thousands) |
||||||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Construction and Commercial Real Estate (CRE) |
||||||
|
PA vs. Out-of-State |
||||||
|
Pennsylvania |
$1,312,646 |
$1,271,669 |
$1,295,367 |
|||
|
Out-of-State |
283,597 |
292,954 |
310,005 |
|||
|
Total Construction and CRE PA vs. Out-of-State |
$1,596,243 |
$1,564,623 |
$1,605,372 |
|||
|
Construction and CRE – NPL PA vs. Out-of-State |
% NPL |
% NPL |
% NPL |
|||
|
Pennsylvania |
$41,009 |
3.12% |
$42,732 |
3.36% |
$38,864 |
3.00% |
|
Out-of-State |
6,230 |
2.20% |
6,830 |
2.33% |
4,363 |
1.41% |
|
Total Construction and CRE – NPL PA vs. Out-of-State |
$47,239 |
2.96% |
$49,562 |
3.17% |
$43,227 |
2.69% |
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Construction and CRE by Type |
||||||
|
Retail/Strip Malls |
$275,566 |
$287,640 |
$286,424 |
|||
|
Offices |
199,286 |
203,509 |
216,815 |
|||
|
Hotels |
193,460 |
198,075 |
186,342 |
|||
|
Residential Rental Properties |
171,891 |
170,828 |
198,422 |
|||
|
Manufacturing/Industrial/Warehouse |
99,315 |
107,890 |
99,382 |
|||
|
Healthcare/Education |
99,018 |
104,798 |
107,871 |
|||
|
Flex/Mixed Use |
96,403 |
90,870 |
95,578 |
|||
|
Real Estate/Land Development – Commercial |
129,738 |
101,665 |
98,196 |
|||
|
Recreational |
39,267 |
41,545 |
43,770 |
|||
|
Restaurant |
30,173 |
31,036 |
35,259 |
|||
|
Real Estate Development – Residential |
29,142 |
46,595 |
73,145 |
|||
|
Convenience Stores |
28,451 |
29,343 |
28,250 |
|||
|
Miscellaneous * |
204,533 |
150,829 |
135,918 |
|||
|
Total Construction and CRE by Type |
$1,596,243 |
$1,564,623 |
$1,605,372 |
|||
|
2012 |
2012 |
2011 |
||||
|
Third |
Second |
Third |
||||
|
Quarter |
Quarter |
Quarter |
||||
|
Construction and CRE – NPL by Type |
% NPL |
% NPL |
% NPL |
|||
|
Retail/Strip Malls |
$7,617 |
2.76% |
$8,139 |
2.83% |
$2,371 |
0.83% |
|
Offices |
4,529 |
2.27% |
4,161 |
2.04% |
5,124 |
2.36% |
|
Hotels |
0 |
0.00% |
700 |
0.35% |
1,100 |
0.59% |
|
Residential Rental Properties |
3,488 |
2.03% |
3,423 |
2.00% |
3,381 |
1.70% |
|
Manufacturing/Industrial/Warehouse |
4,227 |
4.26% |
4,306 |
3.99% |
5,183 |
5.22% |
|
Healthcare/Education |
581 |
0.59% |
589 |
0.56% |
– |
– |
|
Flex/Mixed Use |
51 |
0.05% |
58 |
0.06% |
– |
– |
|
Real Estate/Land Development – Commercial |
7,879 |
6.07% |
6,558 |
6.45% |
1,660 |
1.69% |
|
Recreational |
7,956 |
20.26% |
10,130 |
24.38% |
9,463 |
21.62% |
|
Restaurant |
1,583 |
5.25% |
1,843 |
5.94% |
4,153 |
11.78% |
|
Real Estate Development – Residential |
6,532 |
22.41% |
7,088 |
15.21% |
8,352 |
11.42% |
|
Convenience Stores |
73 |
0.26% |
74 |
0.25% |
– |
– |
|
Miscellaneous |
2,723 |
1.33% |
2,493 |
1.65% |
2,440 |
1.80% |
|
Total Construction and CRE – NPL by Type |
$47,239 |
2.96% |
$49,562 |
3.17% |
$43,227 |
2.69% |
|
* Included in the miscellaneous category of Construction and CRE by type are loans from the recent acquisition of Gateway Bank on August 9, 2012 of $52.7 million Detail by type was not available. |
||||||
|
S&T Bancorp, Inc. |
|||||
|
Consolidated Selected Financial Data |
|||||
|
Unaudited |
|||||
|
(in thousands) |
|||||
|
2012 |
2012 |
2011 |
|||
|
Third |
Second |
Third |
|||
|
Quarter |
Quarter |
Quarter |
|||
|
Commercial Credit Exposure |
|||||
|
Pass |
|||||
|
Commercial Real Estate |
$1,251,422 |
$1,240,989 |
$1,201,955 |
||
|
Commercial & Industrial |
674,819 |
633,783 |
601,552 |
||
|
Construction |
105,684 |
115,801 |
148,084 |
||
|
Total Pass |
$2,031,925 |
$1,990,573 |
$1,951,591 |
||
|
Special Mention |
|||||
|
Commercial Real Estate |
$92,544 |
$59,286 |
$89,164 |
||
|
Commercial & Industrial |
32,952 |
29,927 |
19,450 |
||
|
Construction |
23,043 |
14,610 |
10,432 |
||
|
Total Special Mention |
$148,539 |
$103,823 |
$119,046 |
||
|
Substandard |
|||||
|
Commercial Real Estate |
$94,560 |
$101,476 |
$123,279 |
||
|
Commercial & Industrial |
40,798 |
53,397 |
60,864 |
||
|
Construction |
28,990 |
32,461 |
32,458 |
||
|
Total Substandard |
$164,348 |
$187,334 |
$216,601 |
||
|
S&T Bancorp, Inc. |
|||||
|
Consolidated Selected Financial Data |
|||||
|
Unaudited |
|||||
|
(in thousands) |
|||||
|
2012 |
2012 |
2011 |
|||
|
Third |
Second |
Third |
|||
|
Quarter |
Quarter |
Quarter |
|||
|
Asset Quality Data |
|||||
|
Nonperforming Loans |
$66,116 |
$69,113 |
$59,239 |
||
|
Assets Acquired through Foreclosure or Repossession |
1,468 |
2,920 |
5,992 |
||
|
Nonperforming Assets |
67,584 |
72,033 |
65,231 |
||
|
Troubled Debt Restructurings (Nonaccrual) |
23,414 |
25,246 |
22,124 |
||
|
Troubled Debt Restructurings (Accruing) |
37,110 |
37,540 |
21,460 |
||
|
Total Troubled Debt Restructurings |
60,524 |
62,786 |
43,584 |
||
|
Allowance for Loan Losses |
46,279 |
46,689 |
51,533 |
||
|
Nonperforming Loans / Loans |
2.01% |
2.16% |
1.89% |
||
|
Nonperforming Assets / Loans plus OREO |
2.06% |
2.25% |
2.08% |
||
|
Allowance for Loan Losses / Loans |
1.41% |
1.46% |
1.64% |
||
|
Allowance for Loan Losses / Nonperforming Loans |
70% |
68% |
87% |
||
|
Net Loan Charge-offs (Recoveries) |
2,714 |
8,162 |
8,006 |
||
|
Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans |
0.33% |
1.02% |
1.00% |
||
|
Profitability Ratios (Annualized) |
|||||
|
Common Return on Average Assets |
1.15% |
0.80% |
1.20% |
||
|
Common Return on Average Tangible Assets(4) |
1.19% |
0.83% |
1.25% |
||
|
Common Return on Average Equity |
9.56% |
6.80% |
8.12% |
||
|
Common Return on Average Tangible Common Equity (5) |
14.52% |
10.44% |
15.20% |
||
|
Efficiency Ratio (FTE) (6) |
65.31% |
61.81% |
53.41% |
||
|
Capitalization Ratios |
|||||
|
Dividends Paid to Net Income |
34.47% |
50.43% |
34.40% |
||
|
Common Equity / Assets |
12.08% |
11.74% |
12.14% |
||
|
Tier 1 Leverage Ratio |
9.27% |
8.94% |
11.80% |
||
|
Risk-based Capital – Tier 1 |
12.01% |
11.82% |
14.95% |
||
|
Risk-based Capital – Total |
15.45% |
15.33% |
18.51% |
||
|
Tangible Common Equity / Tangible Assets(7) |
8.32% |
7.99% |
8.30% |
||
|
For the Nine Months Ended September 30, |
|||||
|
2012 |
2011 |
||||
|
Asset Quality Data |
|||||
|
Net Loan Charge-offs (Recoveries) |
21,162 |
13,126 |
|||
|
Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans |
0.89% |
0.54% |
|||
|
Profitability Ratios (Annualized) |
|||||
|
Common Return on Average Assets |
0.77% |
1.00% |
|||
|
Common Return on Average Tangible Common Assets (8) |
0.80% |
1.04% |
|||
|
Common Return on Average Shareholders’ Equity |
6.46% |
6.90% |
|||
|
Common Return on Average Tangible Common Equity (9) |
9.88% |
13.10% |
|||
|
Efficiency Ratio (FTE) (6) |
65.76% |
55.59% |
|||
|
Capitalization Ratios |
|||||
|
Dividends Paid to Net Income |
52.27% |
41.58% |
|||
|
S&T Bancorp, Inc. |
|||||
|
Consolidated Selected Financial Data |
|||||
|
Unaudited |
|||||
|
2012 |
2012 |
2011 |
|||
|
Third |
Second |
Third |
|||
|
Quarter |
Quarter |
Quarter |
|||
|
Definitions and Reconciliation of GAAP to |
|||||
|
Non-GAAP Financial Measures: |
|||||
|
(1) Tangible Common Book Value |
|||||
|
Common Book Value (GAAP Basis) |
$17.97 |
$17.65 |
$17.68 |
||
|
Effect of Excluding Intangible Assets |
(6.11) |
(6.13) |
(6.10) |
||
|
Tangible Common Book Value |
$11.86 |
$11.52 |
$11.58 |
||
|
(2) Interest Income on a Fully Taxable Equivalent Basis |
|||||
|
Interest Income (GAAP Basis) |
$38,820 |
$39,370 |
$40,845 |
||
|
Taxable Equivalent Adjustment to Interest Income |
1,119 |
1,129 |
1,002 |
||
|
Interest Income on a Fully Taxable Equivalent Basis |
39,939 |
40,499 |
41,847 |
||
|
Interest Expense (GAAP Basis) |
5,025 |
5,551 |
6,976 |
||
|
Net Interest Income on a Fully Taxable Equivalent Basis |
$34,914 |
$34,948 |
$34,871 |
||
|
(4) Common Return on Average Tangible Assets |
|||||
|
Common Return on Average Assets (GAAP Basis) |
1.15% |
0.80% |
1.20% |
||
|
Effect of Excluding Intangible Assets |
0.04% |
0.03% |
0.05% |
||
|
Common Return on Average Tangible Assets |
1.19% |
0.83% |
1.25% |
||
|
(5) Common Return on Average Tangible Common Equity |
|||||
|
Common Return on Average Common Equity (GAAP Basis) |
9.56% |
6.80% |
8.12% |
||
|
Effect of Excluding Intangible Assets |
4.96% |
3.64% |
3.80% |
||
|
Effect of Excluding Preferred Stock |
– |
– |
3.28% |
||
|
Common Return on Average Tangible Common Equity |
14.52% |
10.44% |
15.20% |
||
|
(6) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis. |
|||||
|
(7) Tangible Common Equity / Tangible Assets |
|||||
|
Common Equity / Assets (GAAP Basis) |
12.08% |
11.74% |
12.14% |
||
|
Effect of Excluding Intangible Assets |
-3.76% |
-3.75% |
-3.84% |
||
|
Tangible Common Equity / Tangible Assets |
8.32% |
7.99% |
8.30% |
||
|
For the Nine Months Ended September 30, |
|||||
|
2012 |
2011 |
||||
|
(3) Interest Income on a Fully Taxable Equivalent Basis |
|||||
|
Interest Income (GAAP Basis) |
$117,330 |
$124,820 |
|||
|
Taxable Equivalent Adjustment to Interest Income |
3,378 |
3,054 |
|||
|
Interest Income on a Fully Taxable Equivalent Basis |
120,708 |
127,874 |
|||
|
Interest Expense (GAAP Basis) |
16,395 |
21,541 |
|||
|
Net Interest Income on a Fully Taxable Equivalent Basis |
$104,313 |
$106,333 |
|||
|
(8) Common Return on Average Tangible Common Assets |
|||||
|
Common Return on Average Assets (GAAP Basis) |
0.77% |
1.00% |
|||
|
Effect of Excluding Intangible Assets |
0.03% |
0.04% |
|||
|
Common Return on Average Tangible Common Assets |
0.80% |
1.04% |
|||
|
(9) Common Return on Average Tangible Common Equity |
|||||
|
Common Return on Average Shareholders’ Equity (GAAP Basis) |
6.46% |
6.90% |
|||
|
Effect of Excluding Intangible Assets |
3.42% |
3.35% |
|||
|
Effect of Excluding Preferred Stock |
– |
2.85% |
|||
|
Common Return on Average Tangible Common Equity |
9.88% |
13.10% |
|||
SOURCE S&T Bancorp, Inc.
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