stba-202410170000719220false00007192202024-10-172024-10-17
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
October 17, 2024
Date of Report (date of earliest event reported)
S&T BANCORP, INC
(Exact name of registrant as specified in its charter)
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Pennsylvania | 0-12508 | 25-1434426 | |
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
| |
800 Philadelphia Street | Indiana | PA | 15701 | |
(Address of Principal Executive Offices) | (Zip Code) | |
(800) 325-2265
Registrant's telephone number, including area code
(Not applicable)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
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| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, $2.50 par value | STBA | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 17, 2024 S&T Bancorp Inc. (S&T) announced by press release its earnings for the three and nine months ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in this Item 2.02. The information contained in this Item 2.02 of this Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 7.01 Regulation FD Disclosure.
In connection with the issuance of its earnings for the three and nine months ended September 30, 2024, S&T has also made available on its website materials that contain supplemental information about S&T’s financial results (“Supplemental Information”). A copy of the supplemental information is attached hereto as Exhibit 99.2 and is incorporated by reference in this Item 7.01. The information contained in this Item 7.01 of this Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| | | | | | | | |
| Exhibit No. | | Description of Exhibit |
| | Press Release |
| | Supplemental Information |
| 104 | | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.
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| S&T Bancorp, Inc. |
| /s/ Mark Kochvar |
| October 17, 2024 | Mark Kochvar
Senior Executive Vice President,
Chief Financial Officer |
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INVESTOR CONTACT: Mark Kochvar S&T Bancorp, Inc. Chief Financial Officer 724.465.4826 mark.kochvar@stbank.com | | |
FOR IMMEDIATE RELEASE
S&T Bancorp Inc. Announces Third Quarter 2024 Results
INDIANA, Pa., - October 17, 2024 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024 compared to net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 and net income of $33.5 million, or $0.87 per diluted share, for the third quarter of 2023.
Third Quarter of 2024 Highlights:
•Solid return metrics with return on average assets (ROA) of 1.35%, return on average equity (ROE) of 9.58% and return on average tangible equity (ROTE) (non-GAAP) of 13.35% compared to ROA of 1.45%, ROE of 10.61% and ROTE (non-GAAP) of 15.01% for the second quarter of 2024.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.69% compared to 1.82% for the second quarter of 2024.
•Net interest margin (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the second quarter of 2024.
•Customer deposit growth of $100.5 million, or 5.42% annualized, was offset by lower brokered deposits of $126.0 million, resulting in a net decrease in total deposits of $25.5 million for the third quarter of 2024.
•The allowance for credit losses to total portfolio loans was 1.36% compared to 1.38% at June 30, 2024.
"We are pleased to report strong third quarter results, highlighted by solid return metrics, continued improvement in asset quality and our fifth consecutive quarter of customer deposit growth. Our capital levels continue to build, positioning us to take advantage of market opportunities," said chief executive officer Chris McComish. "These results would not be possible without the commitment and hard work of our teams and their focus on our people-forward purpose, which is moving our customers, employees and communities forward while delivering value to our shareholders."
Net Interest Income
Net interest income increased $0.9 million to $84.5 million for the third quarter of 2024 compared to $83.6 million for the second quarter of 2024. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the prior quarter. The yield on total average loans increased one basis point to 6.30% compared to 6.29% in the second quarter of 2024. Total interest-bearing deposit costs increased 12 basis points to 3.04% compared to 2.92% in the second quarter of 2024. Higher interest-bearing deposit costs were primarily due to growth in higher costing average money market accounts of $112.8 million and certificates of deposit of $51.5 million compared to the second quarter of 2024. Average borrowings decreased $58.1 million to $292.3 million compared to
$350.4 million in the second quarter of 2024 primarily due to higher average deposit balances. Total borrowing costs decreased 9 basis points to 5.37% compared to 5.46% in the second quarter of 2024.
Asset Quality
The allowance for credit losses, or ACL, was $104.3 million, or 1.36% of total portfolio loans, at September 30, 2024, compared to $106.2 million, or 1.38%, at June 30, 2024. The provision for credit losses improved by $0.9 million with a negative $0.5 million provision for credit losses for the third quarter of 2024 compared to a $0.4 million provision for credit losses in the second quarter of 2024. The decrease in the provision for credit losses for the third quarter was mainly attributed to a lower level of ACL primarily related to a decrease in qualitative reserve due to improvement in asset quality. Net loan charge-offs were $2.1 million for the third quarter of 2024 compared to net loan recoveries of $0.4 million in the second quarter of 2024. Nonperforming assets to total portfolio loans plus other real estate owned decreased 4 basis points to 0.41% at September 30, 2024 compared to 0.45% at June 30, 2024.
Noninterest Income and Expense
Noninterest income decreased $1.4 million to $11.9 million in the third quarter of 2024 compared to $13.3 million in the prior quarter. The decrease in noninterest income was primarily due to changes in the value of Visa Class B-1 common stock and losses related to the repositioning of securities into longer duration, higher-yielding securities. During the third quarter of 2024, a $2.2 million securities repositioning loss was recognized, which was partially offset by a $0.2 million unrealized gain related to Visa Class B-1 common stock resulting in a $2.0 million net loss in noninterest income. This compares to a $3.2 million securities repositioning loss, which was offset by a $3.2 million unrealized gain from the Visa exchange offer for Class B-1 common stock resulting in no net impact to noninterest income during the second quarter of 2024.
Total noninterest expense increased $1.8 million to $55.4 million compared to $53.6 million in the second quarter of 2024. Salaries and employee benefits increased $0.9 million primarily related to higher incentive costs compared to the second quarter of 2024. Data processing and information technology increased $0.8 million compared to the second quarter of 2024 due to the timing of investments in technology.
Financial Condition
Total assets were $9.6 billion at both September 30, 2024 and June 30, 2024. Total portfolio loans were $7.7 billion at both September 30, 2024 and June 30, 2024. Total portfolio loans decreased $24.5 million with a $76.4 million decrease in commercial loans partially offset by consumer loan growth of $51.9 million compared to June 30, 2024. Commercial loan growth continues to be impacted by a lower level of loan originations and higher pay-offs. Total deposits were $7.7 billion at both September 30, 2024 and June 30, 2024. Customer deposit growth continues to be strong allowing for a reduction in higher costing borrowings and brokered deposits. Customer deposit growth was $100.5 million, or 5.42% annualized, which was offset by lower brokered deposits of $126.0 million, resulting in a decrease in total deposits of $25.5 million for the third quarter of 2024. Total borrowings decreased $25.0 million to $338.4 million compared to $363.4 million at June 30, 2024.
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 third quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, October 17, 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 $9.6 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. 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.
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 5 |
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| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands, except per share data) | Quarter | | Quarter | | Quarter | |
| INTEREST AND DIVIDEND INCOME | | | | | | |
| Loans, including fees | $120,907 | | | $119,564 | | | $114,258 | | |
| Investment Securities: | | | | | | |
| Taxable | 10,221 | | | 8,761 | | | 7,857 | | |
| Tax-exempt | 165 | | | 168 | | | 213 | | |
| Dividends | 181 | | | 272 | | | 631 | | |
| Total Interest and Dividend Income | 131,474 | | | 128,765 | | | 122,959 | | |
| | | | | | |
| INTEREST EXPENSE | | | | | | |
| Deposits | 42,493 | | | 39,629 | | | 24,910 | | |
| Borrowings, junior subordinated debt securities and other | 4,504 | | | 5,542 | | | 10,662 | | |
| Total Interest Expense | 46,997 | | | 45,171 | | | 35,572 | | |
| | | | | | |
| NET INTEREST INCOME | 84,477 | | | 83,594 | | | 87,387 | | |
| Provision for credit losses | (454) | | | 422 | | | 5,498 | | |
| Net Interest Income After Provision for Credit Losses | 84,931 | | | 83,172 | | | 81,889 | | |
| | | | | | |
| NONINTEREST INCOME | | | | | | |
Loss on sale of securities | (2,199) | | | (3,150) | | | — | | |
| Debit and credit card | 4,688 | | | 4,713 | | | 4,690 | | |
| Service charges on deposit accounts | 4,181 | | | 4,089 | | | 4,060 | | |
| Wealth management | 3,071 | | | 2,995 | | | 3,003 | | |
| Mortgage banking | 355 | | | 254 | | | 294 | | |
| Other | 1,781 | | | 4,404 | | | 131 | | |
| Total Noninterest Income | 11,877 | | | 13,305 | | | 12,178 | | |
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| NONINTEREST EXPENSE | | | | | | |
| Salaries and employee benefits | 31,274 | | | 30,388 | | | 27,521 | | |
| Data processing and information technology | 5,003 | | | 4,215 | | | 4,479 | | |
| Occupancy | 3,828 | | | 3,649 | | | 3,671 | | |
| Furniture, equipment and software | 3,410 | | | 3,382 | | | 3,125 | | |
| Other taxes | 1,874 | | | 1,433 | | | 1,831 | | |
| Marketing | 1,382 | | | 1,404 | | | 1,741 | | |
| Professional services and legal | 1,229 | | | 1,403 | | | 1,965 | | |
| FDIC insurance | 1,054 | | | 1,053 | | | 1,029 | | |
| Other noninterest expense | 6,311 | | | 6,681 | | | 7,437 | | |
| Total Noninterest Expense | 55,365 | | | 53,608 | | | 52,799 | | |
| Income Before Taxes | 41,443 | | | 42,869 | | | 41,268 | | |
| Income tax expense | 8,853 | | | 8,498 | | | 7,800 | | |
| Net Income | $32,590 | | | $34,371 | | | $33,468 | | |
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| Per Share Data | | | | | | |
| Shares outstanding at end of period | 38,259,730 | | | 38,256,204 | | | 38,244,309 | | |
| Average shares outstanding - diluted | 38,560,409 | | | 38,531,692 | | | 38,336,016 | | |
| Diluted earnings per share | $0.85 | | | $0.89 | | | $0.87 | | |
| Dividends declared per share | $0.33 | | | $0.33 | | | $0.32 | | |
| Dividend yield (annualized) | 3.15 | % | | 3.95 | % | | 4.73 | % | |
| Dividends paid to net income | 38.77 | % | | 36.97 | % | | 36.55 | % | |
| Book value | $35.96 | | | $34.54 | | | $31.99 | | |
Tangible book value (1) | $26.13 | | | $24.71 | | | $22.14 | | |
| Market value | $41.97 | | | $33.39 | | | $27.08 | | |
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| Profitability Ratios (Annualized) | | | | | | |
| Return on average assets | 1.35 | % | | 1.45 | % | | 1.42 | % | |
| Return on average shareholders' equity | 9.58 | % | | 10.61 | % | | 10.84 | % | |
Return on average tangible shareholders' equity(2) | 13.35 | % | | 15.01 | % | | 15.78 | % | |
Pre-provision net revenue / average assets(3) | 1.69 | % | | 1.82 | % | | 1.99 | % | |
Efficiency ratio (FTE)(4) | 55.88 | % | | 54.94 | % | | 52.67 | % | |
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 6 |
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| | | Nine Months Ended September 30, | |
| (dollars in thousands, except per share data) | | | 2024 | | 2023 | |
| INTEREST AND DIVIDEND INCOME | | | | | | |
| Loans, including fees | | | $359,048 | | | $325,681 | | |
| Investment Securities: | | | | | | |
| Taxable | | | 27,577 | | | 23,120 | | |
| Tax-exempt | | | 526 | | | 642 | | |
| Dividends | | | 842 | | | 1,752 | | |
| Total Interest and Dividend Income | | | 387,993 | | | 351,195 | | |
| | | | | | |
| INTEREST EXPENSE | | | | | | |
| Deposits | | | 118,784 | | | 59,915 | | |
| Borrowings, junior subordinated debt securities and other | | | 17,661 | | | 26,979 | | |
| Total Interest Expense | | | 136,445 | | | 86,894 | | |
| | | | | | |
| NET INTEREST INCOME | | | 251,548 | | | 264,301 | | |
| Provision for credit losses | | | 2,595 | | | 16,949 | | |
| Net Interest Income After Provision for Credit Losses | | | 248,953 | | | 247,352 | | |
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| NONINTEREST INCOME | | | | | | |
Loss on sale of securities | | | (5,346) | | | — | | |
| Debit and credit card | | | 13,636 | | | 13,708 | | |
| Service charges on deposit accounts | | | 12,098 | | | 12,064 | | |
| Wealth management | | | 9,108 | | | 9,136 | | |
| Mortgage banking | | | 886 | | | 884 | | |
| Other | | | 7,630 | | | 3,767 | | |
| Total Noninterest Income | | | 38,012 | | | 39,559 | | |
| | | | | | |
| NONINTEREST EXPENSE | | | | | | |
| Salaries and employee benefits | | | 91,174 | | | 80,513 | | |
| Data processing and information technology | | | 14,172 | | | 12,914 | | |
| Occupancy | | | 11,347 | | | 11,216 | | |
| Furniture, equipment and software | | | 10,264 | | | 9,178 | | |
| Professional services and legal | | | 5,178 | | | 4,943 | | |
| Other taxes | | | 4,729 | | | 5,053 | | |
| Marketing | | | 4,352 | | | 5,855 | | |
| FDIC insurance | | | 3,156 | | | 3,073 | | |
| Other noninterest expense | | | 19,121 | | | 21,386 | | |
| Total Noninterest Expense | | | 163,493 | | | 154,131 | | |
| Income Before Taxes | | | 123,472 | | | 132,780 | | |
| Income tax expense | | | 25,272 | | | 25,046 | | |
| | | | | | |
| Net Income | | | $98,200 | | | $107,734 | | |
| | | | | | |
| Per Share Data | | | | | | |
| Average shares outstanding - diluted | | | 38,563,721 | | | 38,668,964 | | |
| Diluted earnings per share | | | $2.55 | | | $2.78 | | |
| Dividends declared per share | | | $0.99 | | | $0.96 | | |
| Dividends paid to net income | | | 38.66 | % | | 34.43 | % | |
| | | | | | |
| Profitability Ratios (annualized) | | | | | | |
| Return on average assets | | | 1.37 | % | | 1.56 | % | |
| Return on average shareholders' equity | | | 9.97 | % | | 11.80 | % | |
Return on average tangible shareholders' equity(5) | | | 14.06 | % | | 17.20 | % | |
Pre-provision net revenue / average assets(6) | | | 1.76 | % | | 2.17 | % | |
Efficiency ratio (FTE)(7) | | | 55.68 | % | | 50.41 | % | |
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 7 |
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| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
| ASSETS | | | | | | |
| Cash and due from banks | $228,090 | | | $246,310 | | | $238,453 | | |
| Securities available for sale, at fair value | 1,011,312 | | | 977,958 | | | 955,262 | | |
| Loans held for sale | 307 | | | 188 | | | 257 | | |
| Commercial loans: | | | | | | |
| Commercial real estate | 3,327,895 | | | 3,347,699 | | | 3,286,272 | | |
| Commercial and industrial | 1,548,172 | | | 1,611,183 | | | 1,635,354 | | |
| Commercial construction | 386,509 | | | 380,128 | | | 388,470 | | |
| Total Commercial Loans | 5,262,576 | | | 5,339,010 | | | 5,310,096 | | |
| Consumer loans: | | | | | | |
| Residential mortgage | 1,612,629 | | | 1,562,026 | | | 1,384,133 | | |
| Home equity | 645,966 | | | 642,225 | | | 649,122 | | |
| Installment and other consumer | 105,235 | | | 102,660 | | | 115,379 | | |
| Consumer construction | 62,648 | | | 67,649 | | | 57,188 | | |
| Total Consumer Loans | 2,426,478 | | | 2,374,560 | | | 2,205,822 | | |
| Total Portfolio Loans | 7,689,054 | | | 7,713,570 | | | 7,515,918 | | |
| Allowance for credit losses | (104,321) | | | (106,150) | | | (108,206) | | |
| Total Portfolio Loans, Net | 7,584,733 | | | 7,607,420 | | | 7,407,712 | | |
| Federal Home Loan Bank and other restricted stock, at cost | 11,484 | | | 12,056 | | | 38,576 | | |
| Goodwill | 373,424 | | | 373,424 | | | 373,424 | | |
| Other assets | 374,597 | | | 418,106 | | | 452,393 | | |
| Total Assets | $9,583,947 | | | $9,635,462 | | | $9,466,077 | | |
| | | | | | |
| LIABILITIES | | | | | | |
| Deposits: | | | | | | |
| Noninterest-bearing demand | $2,157,537 | | | $2,206,589 | | | $2,276,009 | | |
| Interest-bearing demand | 773,224 | | | 789,317 | | | 868,624 | | |
| Money market | 2,074,095 | | | 2,008,486 | | | 1,615,445 | | |
| Savings | 879,653 | | | 906,794 | | | 974,940 | | |
| Certificates of deposit | 1,770,332 | | | 1,769,150 | | | 1,487,879 | | |
| Total Deposits | 7,654,841 | | | 7,680,336 | | | 7,222,897 | | |
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| Borrowings: | | | | | | |
| | | | | | |
| Short-term borrowings | 225,000 | | | 275,000 | | | 630,000 | | |
| Long-term borrowings | 64,015 | | | 39,034 | | | 39,396 | | |
| Junior subordinated debt securities | 49,403 | | | 49,388 | | | 49,343 | | |
| Total Borrowings | 338,418 | | | 363,422 | | | 718,739 | | |
| Other liabilities | 214,934 | | | 270,261 | | | 300,909 | | |
| Total Liabilities | 8,208,193 | | | 8,314,019 | | | 8,242,545 | | |
| | | | | | |
| SHAREHOLDERS’ EQUITY | | | | | | |
| Total Shareholders’ Equity | 1,375,754 | | | 1,321,443 | | | 1,223,532 | | |
| Total Liabilities and Shareholders’ Equity | $9,583,947 | | | $9,635,462 | | | $9,466,077 | | |
| | | | | | |
| Capitalization Ratios | | | | | | |
| Shareholders' equity / assets | 14.35 | % | | 13.71 | % | | 12.93 | % | |
Tangible common equity / tangible assets(8) | 10.86 | % | | 10.21 | % | | 9.31 | % | |
| Tier 1 leverage ratio | 11.70 | % | | 11.51 | % | | 11.12 | % | |
| Common equity tier 1 capital | 14.37 | % | | 13.89 | % | | 13.11 | % | |
| Risk-based capital - tier 1 | 14.70 | % | | 14.21 | % | | 13.43 | % | |
| Risk-based capital - total | 16.28 | % | | 15.79 | % | | 15.01 | % | |
| | | | | | |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 8 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
| Net Interest Margin (FTE) (QTD Averages) | | | | | | |
| ASSETS | | | | | | |
| Interest-bearing deposits with banks | $200,301 | 5.44% | $143,521 | 5.47% | $144,303 | 4.93% |
| Securities, at fair value | 990,375 | 3.12% | 961,552 | 2.93% | 964,928 | 2.64% |
| Loans held for sale | 20 | 6.77% | 27 | 7.37% | 207 | 6.70% |
| Commercial real estate | 3,298,619 | 5.96% | 3,346,725 | 5.97% | 3,243,056 | 5.83% |
| Commercial and industrial | 1,566,145 | 7.39% | 1,606,173 | 7.38% | 1,646,572 | 7.22% |
| Commercial construction | 406,321 | 7.82% | 374,856 | 7.82% | 373,111 | 7.80% |
| Total Commercial Loans | 5,271,085 | 6.53% | 5,327,754 | 6.52% | 5,262,739 | 6.41% |
| Residential mortgage | 1,589,791 | 5.11% | 1,528,200 | 5.00% | 1,332,913 | 4.66% |
| Home equity | 642,384 | 7.01% | 644,545 | 7.01% | 645,949 | 6.80% |
| Installment and other consumer | 103,390 | 8.65% | 105,313 | 8.63% | 115,111 | 8.52% |
| Consumer construction | 62,998 | 6.42% | 72,899 | 5.97% | 52,783 | 4.89% |
| Total Consumer Loans | 2,398,563 | 5.81% | 2,350,957 | 5.75% | 2,146,756 | 5.52% |
| Total Portfolio Loans | 7,669,648 | 6.30% | 7,678,711 | 6.29% | 7,409,495 | 6.15% |
| Total Loans | 7,669,668 | 6.30% | 7,678,738 | 6.29% | 7,409,702 | 6.15% |
| Total other earning assets | 15,413 | 6.21% | 20,087 | 7.04% | 42,645 | 6.97% |
| Total Interest-earning Assets | 8,875,757 | 5.93% | 8,803,898 | 5.91% | 8,561,578 | 5.74% |
| Noninterest-earning assets | 744,609 | | 756,552 | | 763,243 | |
| Total Assets | $9,620,366 | | $9,560,450 | | $9,324,821 | |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Interest-bearing demand | $785,854 | 1.11% | $822,671 | 1.13% | $868,782 | 0.91% |
| Money market | 2,051,754 | 3.40% | 1,938,963 | 3.25% | 1,595,964 | 2.34% |
| Savings | 891,952 | 0.75% | 915,768 | 0.70% | 996,999 | 0.47% |
| Certificates of deposit | 1,825,530 | 4.60% | 1,774,037 | 4.55% | 1,382,532 | 3.54% |
| Total Interest-bearing Deposits | 5,555,090 | 3.04% | 5,451,439 | 2.92% | 4,844,277 | 2.04% |
| | | | | | |
| Short-term borrowings | 202,500 | 4.88% | 261,923 | 5.09% | 585,196 | 5.65% |
| Long-term borrowings | 40,383 | 4.47% | 39,099 | 4.53% | 39,458 | 4.47% |
| Junior subordinated debt securities | 49,394 | 8.11% | 49,379 | 8.18% | 50,649 | 8.16% |
| Total Borrowings | 292,277 | 5.37% | 350,401 | 5.46% | 675,303 | 5.77% |
| Total Other Interest-bearing Liabilities | 41,038 | | 5.36% | 57,734 | 5.42% | 62,584 | | 5.33% |
| Total Interest-bearing Liabilities | 5,888,405 | 3.17% | 5,859,574 | 3.10% | 5,582,164 | 2.53% |
| Noninterest-bearing liabilities | 2,377,914 | | 2,397,606 | | 2,517,752 | |
| Shareholders' equity | 1,354,047 | | 1,303,270 | | 1,224,905 | |
| Total Liabilities and Shareholders' Equity | $9,620,366 | | $9,560,450 | | $9,324,821 | |
| | | | | | |
Net Interest Margin(9) | | 3.82% | | 3.85% | | 4.09% |
| | | | | | |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 9 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | |
| (dollars in thousands) | | | 2024 | | 2023 | |
| Net Interest Margin (FTE) (YTD Averages) | | | | | | |
| ASSETS | | | | | | |
| Interest-bearing deposits with banks | | | $162,957 | 5.54% | $139,248 | 4.91% |
| Securities, at fair value | | | 972,941 | 2.96% | 982,831 | 2.56% |
| Loans held for sale | | | 74 | 7.14% | 142 | 6.63% |
| Commercial real estate | | | 3,336,689 | 5.95% | 3,184,270 | 5.64% |
| Commercial and industrial | | | 1,599,528 | 7.37% | 1,680,640 | 7.03% |
| Commercial construction | | | 382,177 | 7.78% | 382,020 | 7.55% |
| Total Commercial Loans | | | 5,318,394 | 6.51% | 5,246,930 | 6.23% |
| Residential mortgage | | | 1,532,410 | 5.02% | 1,236,310 | 4.54% |
| Home equity | | | 645,055 | 7.01% | 647,785 | 6.56% |
| Installment and other consumer | | | 106,523 | 8.64% | 118,846 | 8.20% |
| Consumer construction | | | 68,504 | 5.98% | 47,203 | 4.63% |
| Total Consumer Loans | | | 2,352,492 | 5.75% | 2,050,144 | 5.39% |
| Total Portfolio Loans | | | 7,670,886 | 6.28% | 7,297,074 | 5.99% |
| Total Loans | | | 7,670,960 | 6.28% | 7,297,216 | 5.99% |
| Total other earning assets | | | 20,260 | 6.87% | 38,152 | 6.98% |
| Total Interest-earning Assets | | | 8,827,118 | 5.90% | 8,457,447 | 5.58% |
| Noninterest-earning assets | | | 746,295 | | 752,326 | |
| Total Assets | | | $9,573,413 | | $9,209,773 | |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | |
| Interest-bearing demand | | | $812,443 | 1.12% | $847,222 | 0.61% |
| Money market | | | 1,970,539 | 3.27% | 1,621,726 | 2.11% |
| Savings | | | 915,643 | 0.69% | 1,041,346 | 0.38% |
| Certificates of deposit | | | 1,746,498 | 4.51% | 1,224,704 | 2.99% |
| Total Interest-bearing deposits | | | 5,445,123 | 2.91% | 4,734,998 | 1.69% |
| | | | | | |
| Short-term borrowings | | | 290,602 | 5.17% | 522,448 | 5.36% |
| Long-term borrowings | | | 39,571 | 4.51% | 29,133 | 4.05% |
| Junior subordinated debt securities | | | 49,379 | 8.17% | 53,180 | 7.75% |
| Total Borrowings | | | 379,552 | 5.49% | 604,761 | 5.50% |
| Total Other Interest-bearing Liabilities | | | 50,303 | 5.40% | 55,637 | 5.01% |
| Total Interest-bearing Liabilities | | | 5,874,978 | 3.10% | 5,395,396 | 2.15% |
| Noninterest-bearing liabilities | | | 2,382,352 | | 2,593,683 | |
| Shareholders' equity | | | 1,316,083 | | 1,220,694 | |
| Total Liabilities and Shareholders' Equity | | | $9,573,413 | | $9,209,773 | |
| | | | | | |
Net Interest Margin(10) | | | | 3.84% | | 4.21% |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 10 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
| Nonaccrual Loans | | | | | | |
| Commercial loans: | | % Loans | | % Loans | | % Loans |
| Commercial real estate | $14,877 | | 0.45% | $15,090 | | 0.45% | $1,735 | | 0.05% |
| Commercial and industrial | 5,789 | | 0.37% | 7,075 | | 0.44% | 3,468 | | 0.21% |
| Commercial construction | 3,416 | | 0.88% | 4,960 | | 1.30% | 384 | | 0.10% |
| | | | | | |
| Total Nonaccrual Commercial Loans | 24,082 | | 0.46% | 27,125 | | 0.51% | 5,587 | | 0.11% |
| Consumer loans: | | | | | | |
| Residential mortgage | 4,478 | | 0.28% | 4,698 | | 0.30% | 4,139 | | 0.30% |
| Home equity | 3,065 | | 0.47% | 2,804 | | 0.44% | 2,617 | | 0.40% |
| Installment and other consumer | 264 | | 0.25% | 230 | | 0.22% | 334 | | 0.29% |
| | | | | | |
| Total Nonaccrual Consumer Loans | 7,807 | | 0.32% | 7,732 | | 0.33% | 7,090 | | 0.32% |
| Total Nonaccrual Loans | $31,889 | | 0.41% | $34,857 | | 0.45% | $12,677 | | 0.17% |
|
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
Loan Charge-offs (Recoveries) | | | | | | |
| Charge-offs | $2,440 | | | $845 | | | $4,077 | | |
| Recoveries | (302) | | | (1,233) | | | (367) | | |
Net Loan Charge-offs (Recoveries) | $2,138 | | | ($388) | | | $3,710 | | |
| | | | | | |
Net Loan Charge-offs (Recoveries) | | | | | | |
| Commercial loans: | | | | | | |
| | | | | | |
| Commercial real estate | $47 | | | ($379) | | | ($13) | | |
| Commercial and industrial | 1,256 | | | (658) | | | 3,389 | | |
| Commercial construction | — | | | — | | | — | | |
Total Commercial Loan Charge-offs (Recoveries) | 1,303 | | | (1,037) | | | 3,376 | | |
| Consumer loans: | | | | | | |
| Residential mortgage | (5) | | | 33 | | | (11) | | |
| Home equity | 580 | | | 274 | | | 71 | | |
| Installment and other consumer | 260 | | | 342 | | | 274 | | |
| | | | | | |
| Total Consumer Loan Charge-offs | 835 | | | 649 | | | 334 | | |
Total Net Loan Charge-offs (Recoveries) | $2,138 | | | ($388) | | | $3,710 | | |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 11 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | |
| (dollars in thousands) | | | 2024 | | 2023 | |
| Loan Charge-offs (Recoveries) | | | | | | |
| Charge-offs | | | $10,224 | | | $20,758 | | |
| Recoveries | | | (1,885) | | | (11,196) | | |
| Net Loan Charge-offs | | | $8,339 | | $9,562 | |
| | | | | | |
| Net Loan Charge-offs (Recoveries) | | | | | | |
| Commercial loans: | | | | | | |
| Customer fraud | | | $— | | ($9,329) | |
| Commercial real estate | | | 4,906 | | (1,068) | |
| Commercial and industrial | | | 1,547 | | 18,633 | |
| Commercial construction | | | — | | | (2) | | |
| Total Commercial Loan Charge-offs | | | 6,453 | | 8,234 | |
| Consumer loans: | | | | | | |
| Residential mortgage | | | 35 | | (3) | |
| Home equity | | | 959 | | 90 | |
| Installment and other consumer | | | 892 | | 1,241 | |
| | | | | | |
| Total Consumer Loan Charge-offs | | | 1,886 | | 1,328 | |
| Total Net Loan Charge-offs | | | $8,339 | | $9,562 | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
| Asset Quality Data | | | | | | |
| Nonaccrual loans | $31,889 | | | $34,857 | | | $12,677 | | |
| OREO | — | | | 95 | | | 3,715 | | |
| Total nonperforming assets | 31,889 | | | 34,952 | | | 16,392 | | |
| Nonaccrual loans / total loans | 0.41 | % | | 0.45 | % | | 0.17 | % | |
| Nonperforming assets / total loans plus OREO | 0.41 | % | | 0.45 | % | | 0.22 | % | |
| Allowance for credit losses / total portfolio loans | 1.36 | % | | 1.38 | % | | 1.44 | % | |
| Allowance for credit losses / nonaccrual loans | 327 | % | | 305 | % | | 854 | % | |
Net loan charge-offs (recoveries) | $2,138 | | | ($388) | | | $3,710 | | |
Net loan charge-offs (recoveries) (annualized) / average loans | 0.11 | % | | (0.02 | %) | | 0.20 | % | |
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | |
| (dollars in thousands) | | | 2024 | | 2023 | |
| Asset Quality Data | | | | | | |
| Net loan charge-offs | | | $8,339 | | | $9,562 | | |
Net loan charge-offs (annualized) / average loans | | | 0.15 | % | | 0.18 | % | |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 12 |
|
|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars and shares in thousands) | Quarter | | Quarter | | Quarter | |
(1) Tangible Book Value (non-GAAP) | | | | | | |
| Total shareholders' equity | $1,375,754 | | | $1,321,443 | | | $1,223,532 | | |
| Less: goodwill and other intangible assets, net of deferred tax liability | (375,931) | | | (376,154) | | | (376,883) | | |
| Tangible common equity (non-GAAP) | $999,823 | | | $945,289 | | | $846,649 | | |
| Common shares outstanding | 38,260 | | | 38,256 | | | 38,244 | | |
| Tangible book value (non-GAAP) | $26.13 | | | $24.71 | | | $22.14 | | |
| 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) | $129,652 | | | $138,239 | | | $132,779 | | |
| Plus: amortization of intangibles (annualized), net of tax | 893 | | | 921 | | | 1,034 | | |
| Net income before amortization of intangibles (annualized) | $130,545 | | | $139,160 | | | $133,813 | | |
| | | | | | |
| Average total shareholders' equity | $1,354,047 | | | $1,303,270 | | | $1,224,905 | | |
| Less: average goodwill and other intangible assets, net of deferred tax liability | (376,048) | | | (376,285) | | | (377,020) | | |
| Average tangible equity (non-GAAP) | $977,999 | | | $926,985 | | | $847,885 | | |
| Return on average tangible shareholders' equity (non-GAAP) | 13.35 | % | | 15.01 | % | | 15.78 | % | |
| 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 | $41,443 | | | $42,869 | | | $41,268 | | |
| Plus: Provision for credit losses | (454) | | | 422 | | | 5,498 | | |
| Total | $40,989 | | | $43,291 | | | $46,766 | | |
| Total (annualized) (non-GAAP) | $163,065 | | | $174,115 | | | $185,538 | | |
| Average assets | $9,620,366 | | | $9,560,450 | | | $9,324,821 | | |
| Pre-provision Net Revenue / Average Assets (non-GAAP) | 1.69 | % | | 1.82 | % | | 1.99 | % | |
| 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 | $55,365 | | | $53,608 | | | $52,799 | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Net interest income per consolidated statements of net income | $84,477 | | | $83,594 | | | $87,387 | | |
| Plus: taxable equivalent adjustment | 671 | | | 682 | | | 674 | | |
| Net interest income (FTE) (non-GAAP) | 85,148 | | | 84,276 | | | 88,061 | | |
| Noninterest income | 11,877 | | | 13,305 | | | 12,178 | | |
Less: net losses (gains) on sale of securities | 2,199 | | | 3,150 | | | — | | |
| Less: Visa Class B-1 exchange | (150) | | | (3,156) | | | — | | |
| Net interest income (FTE) (non-GAAP) plus noninterest income | $99,074 | | | $97,575 | | | $100,239 | | |
| Efficiency ratio (non-GAAP) | 55.88 | % | | 54.94 | % | | 52.67 | % | |
| 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 | | S&T Earnings Release - 13 |
|
|
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months Ended September 30, | |
| (dollars in thousands) | | | 2024 | | 2023 | |
(5) Return on Average Tangible Shareholders' Equity (non-GAAP) | | | | | | |
| Net income (annualized) | | | $131,172 | | | $144,040 | | |
| Plus: amortization of intangibles (annualized), net of tax | | | 919 | | | 1,055 | | |
| Net income before amortization of intangibles (annualized) | | | $132,091 | | | $145,095 | | |
| | | | | | |
| Average total shareholders' equity | | | $1,316,083 | | | $1,220,694 | | |
| Less: average goodwill and other intangible assets, net of deferred tax liability | | | (376,283) | | | (377,290) | | |
| Average tangible equity (non-GAAP) | | | $939,800 | | | $843,404 | | |
| Return on average tangible shareholders' equity (non-GAAP) | | | 14.06 | % | | 17.20 | % | |
| Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance. |
| | | | | | |
(6) Pre-provision Net Revenue / Average Assets (non-GAAP) | | | | | | |
| Income before taxes | | | $123,472 | | | $132,780 | | |
| Plus: Provision for credit losses | | | 2,595 | | | 16,949 | | |
| Total | | | $126,067 | | | $149,729 | | |
| Total (annualized) (non-GAAP) | | | $168,396 | | | $200,186 | | |
| Average assets | | | $9,573,413 | | | $9,209,773 | | |
| Pre-provision Net Revenue / Average Assets (non-GAAP) | | | 1.76 | % | | 2.17 | % | |
| 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. |
| | | | | | |
(7) Efficiency Ratio (non-GAAP) | | | | | | |
| Noninterest expense | | | $163,493 | | | $154,131 | | |
| | | | | | |
| | | | | | |
| | | | | | |
| Net interest income per consolidated statements of net income | | | $251,548 | | | $264,301 | | |
| Plus: taxable equivalent adjustment | | | 2,045 | | | 1,868 | | |
| Net interest income (FTE) (non-GAAP) | | | 253,593 | | | 266,169 | | |
| Noninterest income | | | 38,012 | | | 39,559 | | |
Less: net losses (gains) on sale of securities | | | 5,346 | | | — | | |
| Less: Visa Class B-1 exchange | | | (3,306) | | | — | | |
| Net interest income (FTE) (non-GAAP) plus noninterest income | | | $293,645 | | | $305,728 | | |
| Efficiency ratio (non-GAAP) | | | 55.68 | % | | 50.41 | % | |
| 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. |
| | | | | | |
(10) Net Interest Margin Rate (FTE) (non-GAAP) | | | | | | |
| Interest income and dividend income | | | $387,993 | | | $351,195 | | |
| Less: interest expense | | | (136,445) | | | (86,894) | | |
| Net interest income per consolidated statements of net income | | | 251,548 | | | 264,301 | | |
| Plus: taxable equivalent adjustment | | | 2,045 | | | 1,868 | | |
| Net interest income (FTE) (non-GAAP) | | | $253,593 | | | $266,169 | | |
| Net interest income (FTE) (annualized) | | | $338,741 | | | $355,867 | | |
| Average interest-earning assets | | | $8,827,118 | | | $8,457,447 | | |
| Net interest margin - (FTE) (non-GAAP) | | | 3.84 | % | | 4.21 | % | |
| 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. |
| | | | | | | | | | | |
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited | | S&T Earnings Release - 14 |
|
|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| | | | | | | | | | | | | | | | | | | | |
| 2024 | | 2024 | | 2023 | |
| Third | | Second | | Third | |
| (dollars in thousands) | Quarter | | Quarter | | Quarter | |
(8) Tangible Common Equity / Tangible Assets (non-GAAP) | | | | | | |
| Total shareholders' equity | $1,375,754 | | | $1,321,443 | | | $1,223,532 | | |
| Less: goodwill and other intangible assets, net of deferred tax liability | (375,931) | | | (376,154) | | | (376,883) | | |
| Tangible common equity (non-GAAP) | $999,823 | | | $945,289 | | | $846,649 | | |
| | | | | | |
| Total assets | $9,583,947 | | | $9,635,462 | | | $9,466,077 | | |
| Less: goodwill and other intangible assets, net of deferred tax liability | (375,931) | | | (376,154) | | | (376,883) | | |
| Tangible assets (non-GAAP) | $9,208,016 | | | $9,259,308 | | | $9,089,194 | | |
| Tangible common equity to tangible assets (non-GAAP) | 10.86 | % | | 10.21 | % | | 9.31 | % | |
| Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy. |
| | | | | | |
(9) Net Interest Margin Rate (FTE) (non-GAAP) | | | | | | |
| Interest income and dividend income | $131,474 | | | $128,765 | | | $122,959 | | |
| Less: interest expense | (46,997) | | | (45,171) | | | (35,572) | | |
| Net interest income per consolidated statements of net income | 84,477 | | | 83,594 | | | 87,387 | | |
| Plus: taxable equivalent adjustment | 671 | | | 682 | | | 674 | | |
| Net interest income (FTE) (non-GAAP) | $85,148 | | | $84,276 | | | $88,061 | | |
| Net interest income (FTE) (annualized) | $338,741 | | | $338,956 | | | $349,373 | | |
| Average interest-earning assets | $8,875,757 | | | $8,803,898 | | | $8,561,578 | | |
| Net interest margin (FTE) (non-GAAP) | 3.82 | % | | 3.85 | % | | 4.09 | % | |
| 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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Third Quarter 2024 Earnings Supplement
Forward Looking Statements and Risk Factors 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 the traditional measures presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these non-GAAP financial measures provide information useful to investors in understanding our underlying business, operational performance and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors’ understanding of S&T’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP 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. The non-GAAP financial measures contained within this presentation should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the respective Quarterly Reports in Exhibit 99.1 of Form 8-K for S&T Bancorp, Inc. and subsidiaries. 2
3 Third Quarter Overview RETURN METRICS EARNINGS Net Income $32.6 million *Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.85 ROA 1.35% ROE 9.58% ROTE* 13.35% PPNR* 1.69% HIGHLIGHTS • Solid earnings and return metrics • Strong NIM at 3.82% • Customer deposit growth over $100 million • Healthy ACL level with consistent improvement in overall asset quality ACL 1.36% NCO 0.11% ASSET QUALITY NPA 0.41% NIM* 3.82% Efficiency Ratio* 55.88%
Balance Sheet • Strong customer deposit growth of $100.5 million (5.42% annualized) • Brokered CDs declined $126.0 million • Reduction in borrowings of $25.0 million • Loans decreased $24.5 million due to lower level of originations and higher pay- offs Dollars in millions 4 3Q24 2Q24 Var $ 228 $ 246 $ (18) 1,011 978 33 7,689 7,714 (25) 7,655 7,680 (25) 338 363 (25) $(50) $(25) $0 $25 $50 Cash & Int Bear Bal Securities Loans Deposits Borrowings 3Q24 vs 2Q24: 3Q24 vs 2Q24 DEPOSIT CHANGES DECREASES/INCREASES
Asset Quality ACL Trend: Dollars in millions 5 ASSET QUALITY TRENDS • ACL to total portfolio loans of 1.36% compared to 1.38% as of June 30, 2024 • Net loan charge-offs of $2.1 million, or 0.11% of average loans (annualized) • NPAs decreased 4 basis points to 0.41% of total portfolio loans plus OREO % o f A verage Lo ans Net Loan Charge-Offs/(Recoveries) 3Q23 4Q23 1Q24 2Q24 3Q24 $(10) $(5) $0 $5 $10 $15 $20 -0.60% -0.30% 0.00% 0.30% 0.60% 0.90% 1.20% % o f Po rtfo lio Lo ans and O R EO Nonperforming Assets 3Q23 4Q23 1Q24 2Q24 3Q24 $0 $20 $40 $60 $80 0.00% 0.25% 0.50% 0.75% 1.00%
• Net interest income increased $0.9 million • NIM remains strong at 3.82% down 3 basis points • Cost of funds increases have moderated as higher cost brokered deposits and borrowings are reduced Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 6 $87.4 $85.1 $83.5 $83.6 $84.5 4.09% 3.92% 3.84% 3.85% 3.82% NII NIM FTE* 3Q23 4Q23 1Q24 2Q24 3Q24 Total Cost of Funds 0.27% 0.28% 0.15% 0.05% 0.07% 1.76% 2.04% 2.19% 2.24% 2.31% Changes in Cost of Funds Cost of Funds 3Q23 4Q23 1Q24 2Q24 3Q24
3Q24 3Q24 vs 2Q24 3Q24 vs 3Q23 Debit and Credit Card $4.7 $0.0 $— Service Charges 4.2 0.1 0.1 Wealth 3.1 0.1 0.1 Mortgage 0.3 — — Security Loss (2.2) 1.0 (2.2) Other 1.8 (2.6) 1.7 Noninterest Income $11.9 ($1.4) ($0.3) Noninterest Income 7Dollars in millions • Decrease in Other related primarily to a $3.2 million gain on Visa Class B-1 conversion in the second quarter • Security Loss of $2.2 million related to repositioning of bond portfolio $12.2 $18.1 $12.8 $13.3 $11.9 3Q23 4Q23 1Q24 2Q24 3Q24
3Q24 3Q24 vs 2Q24 3Q24 vs 3Q23 Salaries & Benefits $31.3 $0.9 $3.8 Data Processing 5.0 0.8 0.5 Occupancy 3.8 0.2 0.2 FF&E 3.4 — 0.3 Other Taxes 1.9 0.4 — Marketing 1.4 — (0.4) Professional Services 1.2 (0.2) (0.7) FDIC 1.1 — — Other 6.3 (0.4) (1.1) Noninterest Expense $55.4 $1.8 $2.6 Noninterest Expense 8Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures • Salaries & benefits higher primarily due to higher incentives • Data processing higher due to timing of technology investments
Capital Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 9 TCE / TA* • We have strong capital levels and are well positioned for growth • TCE / TA higher due to solid earnings and improvement in AOCI which positively impacted TCE by 36 basis points 9.31% 9.88% 10.03% 10.21% 10.86% 3Q23 4Q23 1Q24 2Q24 3Q24
3Q24 Return on Average Tangible Shareholders' Equity (ROTE) (non-GAAP) Net income (annualized) $129,652 Plus: amortization of intangibles (annualized), net of tax 893 Net income before amortization of intangibles (annualized) $130,545 Average total shareholders' equity $1,354,047 Less: average goodwill and other intangible assets, net of deferred tax liability (376,048) Average tangible equity (non-GAAP) $977,999 Return on average tangible shareholders' equity (non-GAAP) 13.35 % Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance. Pre-provision Net Revenue (PPNR)/Average Assets (non-GAAP) Income before taxes $41,443 Plus: Provision for credit losses (454) Total $40,989 Total (annualized) (non-GAAP) $163,065 Average assets $9,620,366 PPNR/Average Assets (non-GAAP) 1.69 % 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. Appendix Definitions of GAAP to Non-GAAP Financial Measures 10
3Q24 2Q24 1Q24 4Q23 3Q23 Tangible Common Equity (TCE)/Tangible Assets (non-GAAP) Total shareholders' equity $1,375,754 $1,321,443 $1,295,074 $1,283,445 $1,223,532 Less: goodwill and other intangible assets, net of deferred tax liability (375,931) (376,154) (376,396) (376,631) (376,883) Tangible common equity (non-GAAP) $999,823 $945,289 $918,678 $906,814 $846,649 Total assets $9,583,947 $9,635,462 $9,539,103 $9,551,526 $9,466,077 Less: goodwill and other intangible assets, net of deferred tax liability (375,931) (376,154) (376,396) (376,631) (376,883) Tangible assets (non-GAAP) $9,208,016 $9,259,308 $9,162,707 $9,174,895 $9,089,194 Tangible common equity to tangible assets (non-GAAP) 10.86 % 10.21 % 10.03 % 9.88 % 9.31 % Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy. Efficiency Ratio (non-GAAP) Noninterest expense $55,365 $53,608 $54,520 $56,203 $52,799 Net interest income $84,477 $83,594 $83,477 $85,109 $87,387 Plus: taxable equivalent adjustment 671 682 692 683 674 Net interest income (FTE) (non-GAAP) 85,148 84,276 84,169 85,792 88,061 Noninterest income 11,877 13,305 12,830 18,061 12,178 Less: net gains on sale of securities 2,199 3,150 (3) — — Less: Visa Class B-1 exchange (150) (3,156) — — — Net interest income (FTE) (non-GAAP) plus noninterest income $99,074 $97,575 $96,999 $103,853 $100,239 Efficiency ratio (non-GAAP) 55.88 % 54.94 % 56.21 % 54.12 % 52.67 % 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. Net Interest Margin Rate (NIM) (FTE) (non-GAAP) Interest income and dividend income $131,474 $128,765 $127,754 $126,706 $122,959 Less: interest expense (46,997) (45,171) (44,277) (41,597) (35,572) Net interest income 84,477 83,594 83,477 85,109 87,387 Plus: taxable equivalent adjustment 671 682 692 683 674 Net interest income (FTE) (non-GAAP) $85,148 $84,276 $84,169 $85,792 $88,061 Net interest income (FTE) (annualized) $338,741 $338,956 $338,526 $340,370 $349,373 Average interest-earning assets $8,875,757 $8,803,898 $8,801,163 $8,704,727 $8,561,578 Net interest margin (FTE) (non-GAAP) 3.82 % 3.85 % 3.84 % 3.92 % 4.09 % 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. Appendix Definitions of GAAP to Non-GAAP Financial Measures 11
Third Quarter 2024 Earnings Supplement
