S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2020 Results

January 28, 2021 7:30 AM EST

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INDIANA, Pa., Jan. 28, 2021 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2020 earnings. Net income was $24.2 million, or $0.62 per diluted share, for the fourth quarter compared to net income of $16.7 million, or $0.43 per diluted share, for the third quarter of 2020, and $22.3 million, or $0.62 per diluted share, for the fourth quarter of 2019.

Net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million, or $1.19 per diluted share, for the full year 2020.

Fourth Quarter of 2020 Highlights:

Return on average assets (ROA) was 1.05%, return on average equity (ROE) was 8.35% and return on average tangible equity (ROTE) (non-GAAP) was 12.71%.

  • Pre-tax pre-provision to average assets (PTPP) (non-GAAP) was 1.61%.
  • Net interest margin (FTE) (non-GAAP) increased 9 basis points to 3.38% compared to 3.29% for the third quarter of  2020.
  • Portfolio loans decreased $169.0 million compared to September 30, 2020.
  • Deposits decreased $213.3 million compared to September 30, 2020.
  • The allowance for credit losses to total portfolio loans was 1.63% at December 31, 2020 compared to 1.64% at September 30, 2020.
  • S&T's Board of Directors declared a $0.28 per share dividend which is consistent with the same period last year.

Full Year 2020 Highlights:

  • ROA was 0.23%, ROE was 1.80% and ROTE (non-GAAP) was 2.92%. Excluding the loss from the customer fraud ROA (non-GAAP) was 0.74%, ROE (non-GAAP) was 5.76% and ROTE (non-GAAP) was 8.80%.
  • PTPP (non-GAAP) was 1.67%.
  • Portfolio loans increased $88.7 million, or 1.2%, compared to December 31, 2019.
  • Deposits increased $384.0 million, or 5.5%, compared to December 31, 2019.
  • Mortgage banking income increased $8.4 million to $10.9 million compared to 2019 due to strong refinance activity.
  • Full year 2020 dividends declared increased 2.8% to $1.12 compared to $1.09 in 2019.

"The year 2020 was challenging for our country, the banking industry and S&T. I continue to be amazed by the resilience of our team of bankers and the communities that we serve during these difficult times," said Todd Brice, chief executive officer of S&T. "As I move on to my next chapter of retirement this coming March, I'm gratified to know that the S&T team will continue to perform at a high level for the benefit of all of our stakeholders."

Fourth Quarter of 2020 Results (three months ended December 31, 2020)

Net Interest Income

Net interest income increased $0.6 million to $69.9 million compared to $69.3 million in the third quarter of 2020. The increase in net interest income was primarily due to a reduction in deposit costs and the increased contribution of Paycheck Protection Program (PPP) loans to net interest income. Total interest-bearing deposit costs decreased 12 basis points to 0.36% as higher cost Certificates of Deposits and Money Market accounts repriced. The PPP contribution increased by $1.7 million compared to the third quarter of 2020 due to the beginning of loan forgiveness, which led to an increase in loan yield of 2 basis points to 3.89%. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 9 basis points to 3.38% compared to 3.29% in the prior quarter. Excluding PPP, net interest margin (FTE) (non-GAAP) declined 1 basis point to 3.35% compared to 3.36%.

Asset Quality

The provision for credit losses decreased $10.4 million to $7.1 million for the fourth quarter of 2020 compared to $17.5 million in the third quarter of 2020. Net loan charge-offs were $11.2 million for the fourth quarter of 2020 compared to $12.9 million in the third quarter of 2020. Total nonperforming loans increased $62.7 million to $146.8 million, or 2.03% of total loans, at December 31, 2020 compared to $84.1 million, or 1.13% of total loans at September 30, 2020. The increase in nonperforming loans primarily related to the addition of $56.7 million of hotel loans. The hotel loans have specific reserves of $6.7 million at December 31, 2020 which were based upon updated appraisals received during the fourth quarter of 2020. The allowance for credit losses was 1.63% of total portfolio loans at December 31, 2020 compared to 1.64% at September 30, 2020. Excluding PPP loans, the allowance for credit losses was 1.74% of total portfolio loans at December 31, 2020 compared to 1.77% at September 30, 2020.

Noninterest Income and Expense

Noninterest income decreased $0.9 million to $15.6 million in the fourth quarter of 2020 compared to $16.5 million in the third quarter of 2020. The decrease in noninterest income was primarily due to a decline in mortgage banking income due to lower activity compared to the third quarter of 2020. Noninterest expense increased $0.3 million to $48.5 million in the fourth quarter of 2020 compared to $48.2 million in the third quarter of 2020. Other noninterest expense increased $1.8 million mainly related to higher loan workout costs compared to the prior quarter. Salaries and employee benefits decreased $1.8 million due to lower incentives, pension and medical costs compared to the prior quarter.

Financial Condition

Total assets decreased $222.7 million to $9.0 billion at December 31, 2020 compared to $9.2 billion at September 30, 2020. Portfolio loans decreased $169.0 million compared to September 30, 2020 as loan originations continue to be impacted by the pandemic and $85.0 million of PPP loans were forgiven during the fourth quarter of 2020. Securities increased $55.5 million compared to September 30, 2020 due to cash being redeployed to higher yielding assets. Total deposits decreased $213.3 million mainly due to decreases in interest-bearing demand of $118.4 million, money market of $96.5 million and certificates of deposits of $58.6 million compared to September 30, 2020.

All capital ratios increased at December 31, 2020 compared to September 30, 2020 and remain above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2020 Results (twelve months ended December 31, 2020)

Full year net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million or $1.19 per diluted share. Full year results were impacted by the DNB Financial Corporation (DNB) merger that occurred on November 30, 2019 with 12 months of impact in 2020 compared to only one month in 2019.

Net interest income increased $32.6 million, or 13.2%, compared to 2019 primarily due to the merger with DNB. Net interest income was impacted by the decrease in interest rates and the effects of the pandemic on loan growth throughout 2020. Net interest margin (FTE) (non-GAAP) decreased 26 basis points to 3.38% compared to 3.64% for 2019. Noninterest income increased $7.2 million compared to the prior year primarily related to higher mortgage banking income of $8.4 million offset by the impact of the pandemic mainly on service charges on deposit accounts. Noninterest expense increased $19.5 million compared to 2019. The DNB merger increased operating expenses which was offset by a reduction of $9.0 million in merger related expenses. FDIC insurance increased $4.3 million due to the DNB merger, the impact of recent financial results on certain components of the assessment calculation and Small Bank Assessment Credits received in 2019. Other expense increased $5.8 million in part due to higher loan collection costs in 2020 compared to 2019. The efficiency ratio (non-GAAP) for 2020, excluding merger related expenses, was 53.86% compared to 51.39% for 2019.

The provision for credit losses increased $116.5 million to $131.4 million for 2020 compared to $14.9 million for 2019. Excluding the customer fraud loss of $58.7 million, the provision was $72.7 million for 2020. The provision for credit losses increased significantly in 2020 due to the pandemic and the adoption of Current Expected Credit Losses (CECL) on January 1, 2020. Net loan charge-offs were $103.4 million for 2020 compared to $13.6 million for 2019. Excluding the customer fraud, charge-offs were $44.7 million for 2020. Total nonperforming loans increased $92.7 million to $146.8 million, or 2.03% of total loans, at December 31, 2020 compared to $54.1 million, or 0.76% of total loans at December 31, 2019. The increase in nonperforming loans primarily related to the addition of $56.7 million of hotel loans. The allowance for credit losses was 1.63% of total portfolio loans as of December 31, 2020 compared to 0.87% at December 31, 2019. Excluding PPP loans, the allowance for credit losses was 1.74% of total portfolio loans at December 31, 2020. The adoption of CECL increased the allowance for credit losses by $17.5 million on January 1, 2020.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend at its regular meeting held January 25, 2021. This is consistent with the common stock dividend declared in the same period in the prior year. The dividend is payable February 25, 2021 to shareholders of record on February 11, 2021. Dividends declared in 2020 increased $0.03, or 2.8%, to $1.12 compared to $1.09 for 2019.

Non-GAAP Financial Measures

This release presents certain non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, see "Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures" in the accompanying tables.

Conference Call

S&T will host its fourth quarter 2020 earnings conference call live over the internet at 1:00 p.m. ET on Thursday, January 28, 2021. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2020 Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until February 4, 2021, by dialing 1.877.481.4010; the Conference ID is 39369.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is a $9.0 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 recently ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.

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", "believe", "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; 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 including a prolonged period of low interest rates, 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; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S&T, in particular; 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, including DNB, 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; the duration and severity of the coronavirus ("COVID-19") pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2019, 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.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020

2020

2019

Fourth

Third

Fourth

(dollars in thousands, except per share data)

Quarter

Quarter

Quarter

INTEREST AND DIVIDEND INCOME

Loans, including fees

$71,148

$72,263

$77,426

Investment securities:

Taxable

3,371

3,473

3,744

Tax-exempt

851

885

836

Dividends

178

227

451

Total Interest and Dividend Income

75,548

76,848

82,457

INTEREST EXPENSE

Deposits

4,795

6,626

15,783

Borrowings and junior subordinated debt securities

824

946

2,262

Total Interest Expense

5,619

7,572

18,045

NET INTEREST INCOME

69,929

69,276

64,412

Provision for credit losses

7,130

17,485

2,105

Net Interest Income After Provision for Credit Losses

62,799

51,791

62,307

NONINTEREST INCOME

 Loss on sale of securities

(26)

 Debit and credit card fees

3,830

4,171

3,454

 Mortgage banking

3,100

3,964

765

 Service charges on deposit accounts

2,984

2,820

3,540

 Wealth management

2,486

2,522

2,412

 Commercial loan swap income

812

499

2,356

 Other

2,397

2,507

2,730

Total Noninterest Income

15,609

16,483

15,231

NONINTEREST EXPENSE

Salaries and employee benefits

22,789

24,571

22,851

Net occupancy

4,068

3,441

3,219

Data processing and information technology

3,835

4,218

4,141

Furniture, equipment and software

2,904

2,440

2,337

Marketing

2,113

1,793

1,116

Other taxes

1,806

1,612

(818)

Professional services and legal

1,503

1,911

862

FDIC insurance

1,372

1,900

222

Merger related expenses

10,179

Other

8,138

6,360

6,069

Total Noninterest Expense

48,528

48,246

50,178

Income Before Taxes

29,880

20,028

27,360

Income Tax Expense

5,703

3,323

5,091

Net Income

$24,177

$16,705

$22,269

Per Share Data:

Shares outstanding at end of period 

39,298,007

39,251,638

39,560,304

Average diluted shares outstanding

39,021,008

39,020,811

35,913,237

Diluted earnings per share

$0.62

$0.43

$0.62

Dividends declared per share

$0.28

$0.28

$0.28

Dividend yield (annualized)

4.51%

6.33%

2.78%

Dividends paid to net income

45.40%

65.61%

42.94%

Book value 

$29.38

$29.10

$30.13

Tangible book value (1)

$19.71

$19.40

$20.52

Market value

$24.84

$17.69

$40.29

Profitability Ratios (annualized) 

Return on average assets 

1.05%

0.72%

1.11%

Return on average shareholders' equity 

8.35%

5.80%

8.30%

Return on average tangible shareholders' equity (2)

12.71%

8.96%

12.04%

Efficiency ratio (FTE) (3)

56.26%

55.75%

49.64%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

For the Twelve Months Ended December 31,

(dollars in thousands, except per share data)

2020

2019

INTEREST AND DIVIDEND INCOME

Loans, including fees

$300,960

$300,625

Investment securities:

Taxable

14,918

14,733

Tax-exempt

3,497

3,302

Dividends

1,089

1,824

Total Interest and Dividend Income

320,464

320,484

INTEREST EXPENSE

Deposits

35,986

63,026

Borrowings and junior subordinated debt securities

5,090

10,667

Total Interest Expense

41,076

73,693

NET INTEREST INCOME

279,388

246,791

Provision for credit losses

131,424

14,873

Net Interest Income After Provision for Credit Losses

147,964

231,918

NONINTEREST INCOME

Net gain (loss) on sale of securities

142

(26)

Debit and credit card

15,093

13,405

Service charges on deposit accounts

11,704

13,316

Mortgage banking

10,923

2,491

Wealth management

9,957

8,623

Commercial loan swap income

4,740

5,503

Other

7,160

9,246

Total Noninterest Income

59,719

52,558

NONINTEREST EXPENSE

Salaries and employee benefits

90,115

83,986

Data processing and information technology

15,499

14,468

Net occupancy

14,529

12,103

Furniture, equipment and software

11,050

8,958

Other taxes

6,622

3,364

Professional services and legal

6,394

4,244

Marketing

5,996

4,631

FDIC insurance

5,089

758

Merger related expenses

2,342

11,350

Other

29,008

23,254

Total Noninterest Expense

186,644

167,116

Income Before Taxes

21,039

117,360

Income taxes (benefit) expense

(1)

19,126

Net Income

$21,040

$98,234

Per Share Data:

Average diluted shares outstanding

39,073,219

34,679,478

Diluted earnings per share

$0.53

$2.82

Dividends declared per share

$1.12

$1.09

Dividends paid to net income

200.89%

38.03%

Profitability Ratios 

Return on average assets 

0.23%

1.32%

Return on average shareholders' equity 

1.80%

9.98%

Return on average tangible shareholders' equity (6)

2.92%

14.41%

Efficiency ratio (FTE) (7)

53.86%

51.39%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020

2020

2019

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

ASSETS

Cash and due from banks, including interest-bearing deposits

$229,666

$308,489

$169,304

Federal funds sold

28,519

Securities, at fair value

773,693

718,169

784,283

Loans held for sale

18,528

16,724

5,256

Commercial loans:

Commercial real estate

3,244,974

3,290,138

3,416,518

Commercial and industrial

1,954,453

2,042,467

1,720,833

Commercial construction

474,280

477,429

375,445

Total Commercial Loans

5,673,707

5,810,034

5,512,796

Consumer loans:

Residential mortgage

918,398

950,887

998,585

Home equity

535,165

537,869

538,348

Installment and other consumer

80,915

80,735

79,033

Consumer construction

17,675

15,343

8,390

Total Consumer Loans

1,552,153

1,584,834

1,624,356

Total Portfolio Loans

7,225,860

7,394,868

7,137,152

Allowance for credit losses

(117,612)

(120,998)

(62,224)

Total Portfolio Loans, Net

7,108,248

7,273,870

7,074,928

Federal Home Loan Bank and other restricted stock, at cost

13,030

15,777

22,977

Goodwill

373,424

373,417

371,621

Other assets

451,308

484,126

307,762

Total Assets

$8,967,897

$9,190,572

$8,764,649

LIABILITIES

Deposits:

Noninterest-bearing demand

$2,261,994

$2,232,706

$1,698,082

Interest-bearing demand

864,510

982,956

962,331

Money market

1,937,063

2,033,585

1,949,811

Savings

969,508

938,475

830,919

Certificates of deposit

1,387,463

1,446,096

1,595,433

Total Deposits

7,420,538

7,633,818

7,036,576

Borrowings:

Securities sold under repurchase agreements

65,163

42,706

19,888

Short-term borrowings

75,000

83,000

281,319

Long-term borrowings

23,681

49,076

50,868

Junior subordinated debt securities

64,083

64,068

64,277

Total Borrowings

227,927

238,850

416,352

Other liabilities

164,721

175,789

119,723

Total Liabilities

7,813,186

8,048,457

7,572,651

SHAREHOLDERS' EQUITY

Total Shareholders' Equity

1,154,711

1,142,115

1,191,998

Total Liabilities and Shareholders' Equity

$8,967,897

$9,190,572

$8,764,649

Capitalization Ratios

Shareholders' equity / assets

12.88%

12.43%

13.60%

Tangible common equity / tangible assets (4)

9.02%

8.64%

9.68%

Tier 1 leverage ratio

9.43%

9.11%

10.29%

Common equity tier 1 capital

11.33%

11.05%

11.43%

Risk-based capital - tier 1

11.74%

11.46%

11.84%

Risk-based capital - total

13.44%

13.18%

13.22%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020

2020

2019

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks

$242,778

0.11%

$213,051

0.11%

$82,255

1.44%

Securities, at fair value

726,535

2.43%

759,094

2.41%

696,889

2.61%

Loans held for sale

4,206

2.98%

4,432

3.09%

3,582

3.56%

Commercial Loans:

Commercial real estate

3,269,109

3.77%

3,322,656

4.02%

3,056,513

4.77%

Commercial and industrial

2,012,774

3.95%

2,107,750

3.45%

1,666,061

4.77%

Commercial construction

481,136

3.42%

469,214

3.43%

339,274

4.71%

Total Commercial Loans

5,763,019

3.81%

5,899,620

3.77%

5,061,848

4.77%

Consumer Loans:

Residential mortgage

936,735

4.29%

954,861

4.33%

850,566

4.42%

Home equity

537,201

3.66%

536,735

3.73%

499,520

5.03%

Installment and other consumer

80,849

6.43%

79,649

6.47%

76,029

7.13%

Consumer construction

16,154

4.21%

14,475

4.32%

12,021

4.96%

Total Consumer Loans

1,570,939

4.18%

1,585,720

4.24%

1,438,136

4.78%

Total Portfolio Loans

7,333,958

3.89%

7,485,340

3.87%

6,499,984

4.77%

Total Loans

7,338,164

3.89%

7,489,772

3.87%

6,503,566

4.77%

Federal Home Loan Bank and other restricted stock

14,545

3.97%

15,157

5.11%

21,791

7.44%

Total Interest-earning Assets

8,322,022

3.65%

8,477,074

3.65%

7,304,501

4.53%

Noninterest-earning assets

802,037

815,930

619,586

Total Assets

$9,124,059

$9,293,004

$7,924,087

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand

$904,190

0.11%

$967,735

0.18%

$810,909

0.75%

Money market

2,015,248

0.20%

2,074,862

0.33%

1,791,981

1.53%

Savings

956,438

0.07%

923,208

0.07%

783,990

0.26%

Certificates of deposit

1,423,727

0.93%

1,486,016

1.16%

1,417,619

1.91%

Total Interest-bearing Deposits

5,299,603

0.36%

5,451,821

0.48%

4,804,499

1.30%

Borrowings:

Securities sold under repurchase agreements

50,607

0.25%

64,000

0.25%

14,046

0.75%

Short-term borrowings

75,728

0.22%

84,310

0.38%

241,368

2.08%

Long-term borrowings

40,986

2.43%

49,269

2.52%

56,026

2.63%

Junior subordinated debt securities

64,073

3.11%

64,057

3.19%

54,801

4.33%

Total Borrowings

231,394

1.42%

261,636

1.44%

366,241

2.45%

Total Interest-bearing Liabilities

5,530,997

0.40%

5,713,457

0.53%

5,170,740

1.38%

Noninterest-bearing liabilities

2,441,129

2,433,665

1,689,076

Shareholders' Equity

1,151,933

1,145,882

1,064,271

Total Liabilities and Shareholders' Equity

$9,124,059

$9,293,004

$7,924,087

Net Interest Margin (5)

3.38%

3.29%

3.55%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

For the Twelve Months Ended December 31,

(dollars in thousands)

2020

2019

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks

$179,887

0.29%

$59,941

2.06%

Securities, at fair value

764,311

2.49%

678,069

2.64%

Loans held for sale

5,105

3.13%

2,169

3.88%

Commercial Loans:

Commercial real estate

3,347,234

4.19%

2,945,278

4.92%

Commercial and industrial

2,018,318

3.85%

1,575,485

5.04%

Commercial construction

442,088

3.78%

278,665

5.11%

Total Commercial Loans

5,807,640

4.04%

4,799,428

4.97%

Consumer Loans:

Residential mortgage

964,740

4.25%

765,604

4.43%

Home equity

539,461

3.98%

475,149

5.31%

Installment and other consumer

80,032

6.56%

72,283

7.16%

Consumer construction

13,484

4.40%

10,896

5.44%

Total Consumer Loans

1,597,717

4.28%

1,323,932

4.90%

Total Portfolio Loans

7,405,357

4.09%

6,123,360

4.95%

Total Loans

7,410,462

4.09%

6,125,529

4.95%

Federal Home Loan Bank and other restricted stock

18,234

5.10%

21,833

7.52%

Total Interest-earning Assets

8,372,894

3.87%

6,885,372

4.71%

Noninterest-earning assets

779,853

550,164

Total Assets

$9,152,747

$7,435,536

LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand

$961,823

0.28%

$641,403

0.61%

Money market

2,040,116

0.57%

1,691,910

1.79%

Savings

899,717

0.11%

766,142

0.25%

Certificates of deposit

1,517,643

1.36%

1,396,706

1.93%

Total Interest-bearing Deposits

5,419,299

0.66%

4,496,161

1.40%

Borrowings:

Securities sold under repurchase agreements

57,673

0.29%

16,863

0.65%

Short-term borrowings

155,753

0.92%

255,264

2.51%

Long-term borrowings

47,953

2.50%

66,392

2.76%

Junior subordinated debt securities

64,092

3.57%

47,934

4.82%

Total Borrowings

325,471

1.56%

386,453

2.76%

Total Interest-bearing Liabilities

5,744,770

0.72%

4,882,614

1.51%

Noninterest-bearing liabilities

2,238,488

1,569,014

Total Shareholders' Equity

1,169,489

983,908

Total Liabilities and Shareholders' Equity

$9,152,747

$7,435,536

Net Interest Margin (8)

3.38%

3.64%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020

2020

2019

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Nonperforming Loans (NPL)

Commercial loans:

% Loans

% Loans

% Loans

Commercial real estate

$105,014

3.24%

$52,805

1.60%

$29,140

0.85%

Commercial and industrial

23,337

1.19%

12,498

0.61%

13,982

0.81%

Commercial construction

384

0.08%

1,504

0.31%

737

0.20%

Total Nonperforming Commercial Loans

128,735

2.27%

66,807

1.15%

43,859

0.80%

Consumer loans:

Residential mortgage

13,008

1.42%

13,018

1.37%

7,519

0.75%

Home equity

4,935

0.92%

4,106

0.76%

2,639

0.49%

Installment and other consumer

96

0.12%

141

0.17%

40

0.05%

Total Nonperforming Consumer Loans

18,039

1.15%

17,265

1.08%

10,198

0.63%

Total Nonperforming Loans

$146,774

2.03%

$84,072

1.13%

$54,057

0.76%

(dollars in thousands)

Loan Charge-offs/(Recoveries)

Charge-offs

$12,951

$13,667

$2,798

Recoveries

(1,713)

(754)

(802)

Net Loan Charge-offs/(Recoveries)

$11,238

$12,913

$1,996

Net Loan Charge-offs (Recoveries)

Commercial Loans:

Commercial real estate

$10,185

$10,963

$829

Commercial and industrial

412

1,267

(121)

Commercial construction

293

(1)

404

Total Commercial Loan Charge-offs/(Recoveries)

10,890

12,229

1,112

Consumer loans:

Residential mortgage

68

274

112

Home equity

132

204

383

Installment and other consumer

148

206

389

Total Consumer Loan Charge-offs

348

684

884

Total Net Loan Charge-offs/(Recoveries)

$11,238

$12,913

$1,996

 

For the Twelve Months Ended December 31,

(dollars in thousands)

2020

2019

Loan Charge-offs/(Recoveries)

Charge-offs

$106,365

$16,189

Recoveries

(2,986)

(2,544)

Net Loan Charge-offs/(Recoveries)

$103,379

$13,645

Net Loan Charge-offs (Recoveries)

Commercial loans:

Customer fraud

$58,671

$0

Commercial real estate

27,164

3,527

Commercial and industrial

15,004

7,540

Commercial construction

271

401

Total Commercial Loan Charge-offs/(Recoveries)

101,110

11,468

Consumer loans:

Residential mortgage

435

364

Home equity

433

434

Installment and other consumer

1,401

1,461

Consumer construction

(82)

Total Consumer Loan Charge-offs/(Recoveries)

2,269

2,177

Total Net Loan Charge-offs/(Recoveries)

$103,379

$13,645

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020

2020

2019

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Asset Quality Data

Nonperforming loans

$146,774

$84,072

$54,057

OREO

2,155

2,317

3,525

Nonperforming assets

148,929

86,389

57,582

Troubled debt restructurings (nonaccruing)

29,289

18,648

8,912

Troubled debt restructurings (accruing)

17,460

18,478

36,960

Total troubled debt restructurings

46,749

37,126

45,872

Nonperforming loans / total loans

2.03%

1.13%

0.76%

Nonperforming assets / total loans plus OREO

2.06%

1.17%

0.81%

Allowance for credit losses / total portfolio loans

1.63%

1.64%

0.87%

Allowance for credit losses / nonperforming loans

80%

144%

115%

Net loan charge-offs

$11,238

$12,913

$1,996

Net loan charge-offs (annualized) / average loans

0.61%

0.69%

0.12%

For the Twelve Months Ended December 31,

(dollars in thousands)

2020

2019

Asset Quality Data

Net loan charge-offs

$103,379

$13,645

Net loan charge-offs / average loans

1.40%

0.22%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

2020

2020

2019

Fourth

Third

Fourth

Quarter

Quarter

Quarter

(1) Tangible Book Value (non-GAAP)

Total shareholders' equity

$1,154,711

$1,142,115

$1,191,998

Less: goodwill and other intangible assets, net of deferred tax liability

(380,278)

(380,735)

(380,247)

Tangible common equity (non-GAAP)

$774,434

$761,380

$811,751

Common shares outstanding

39,298

39,252

39,560

Tangible book value (non-GAAP)

$19.71

$19.40

$20.52

(2) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income (annualized)

$96,181

$66,455

$88,350

Plus: amortization of intangibles (annualized), net of tax

1,853

2,069

1,025

Net income before amortization of intangibles (annualized)

$98,034

$68,524

$89,375

Average total shareholders' equity

$1,151,933

$1,145,882

$1,064,271

Less: average  goodwill and other intangible assets, net of deferred tax liability

(380,734)

(380,781)

(322,204)

Average tangible equity (non-GAAP)

$771,199

$765,101

$742,067

Return on average tangible shareholders' equity (non-GAAP)

12.71%

8.96%

12.04%

(3) Efficiency Ratio (non-GAAP)

Noninterest expense

$48,528

$48,246

$50,178

Less: merger related expenses

(10,179)

Noninterest expense excluding nonrecurring items

$48,528

$48,246

$39,999

Net interest income per consolidated statements of net income

$69,929

$69,276

$64,412

Plus: taxable equivalent adjustment

725

780

903

Net interest income (FTE) (non-GAAP)

70,654

70,056

65,315

Noninterest income

15,609

16,483

15,231

Less: net losses on sale of securities

26

Net interest income (FTE) (non-GAAP) plus noninterest income

$86,263

$86,539

$80,572

Efficiency ratio (non-GAAP)

56.26%

55.75%

49.64%

(4) Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders' equity

$1,154,711

$1,142,115

$1,191,998

Less: goodwill and other intangible assets, net of deferred tax liability

(380,278)

(380,735)

(380,247)

Tangible common equity (non-GAAP)

$774,434

$761,380

$811,751

Total assets

$8,967,896

$9,190,572

$8,764,649

Less: goodwill and other intangible assets, net of deferred tax liability

(380,278)

(380,735)

(380,247)

Tangible assets (non-GAAP)

$8,587,618

$8,809,837

$8,384,402

Tangible common equity to tangible assets (non-GAAP)

9.02%

8.64%

9.68%

(5) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income

$75,548

$76,848

$82,457

Less: interest expense

(5,619)

(7,572)

(18,045)

Net interest income per consolidated statements of net income

69,929

69,276

64,412

Plus: taxable equivalent adjustment

725

780

903

Net interest income (FTE) (non-GAAP)

$70,654

$70,056

$65,315

Net interest income (FTE) (annualized)

$281,080

$278,701

$259,130

Average earning assets

$8,322,022

$8,477,074

$7,304,501

Net interest margin (FTE) (non-GAAP)

3.38%

3.29%

3.55%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures - continued:

2020

2020

2019

Fourth

Third

Fourth

Quarter

Quarter

Quarter

PTPP / Average Assets (non-GAAP)

Income before taxes

$29,880

$20,028

$27,360

Plus: Provision for credit losses

7,130

17,485

2,238

Total

37,010

37,513

29,598

Total (annualized) (non-GAAP)

$147,235

$149,237

$117,427

Average assets

$9,124,059

$9,293,004

$7,924,087

PTPP / Average Assets (non-GAAP)

1.61%

1.61%

1.48%

For the Twelve Months Ended December 31,

2020

2019

  (6) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income

$21,040

$98,234

Plus: amortization of intangibles, net of tax

2,001

660

Net income before amortization of intangibles

$23,041

$98,894

Average total shareholders' equity

$1,169,489

$983,908

Less: average goodwill and other intangible assets, net of deferred tax liability

(380,846)

(297,589)

Average tangible equity (non-GAAP)

$788,643

$686,319

Return on average tangible shareholders' equity (non-GAAP)

2.92%

14.41%

  (7) Efficiency Ratio (non-GAAP)

Noninterest expense

$186,643

$167,116

Less: merger related expenses

(2,342)

(11,350)

Noninterest expense excluding nonrecurring items

$184,301

$155,766

Net interest income per consolidated statements of net income

$279,388

$246,791

Plus: taxable equivalent adjustment

3,202

3,757

Net interest income (FTE) (non-GAAP)

282,590

250,548

Noninterest income

59,719

52,558

Less: net (gains)losses on sale of securities

(142)

26

Net interest income (FTE) (non-GAAP) plus noninterest income

$342,167

$303,132

Efficiency ratio (non-GAAP)

53.86%

51.39%

  (8) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income

$320,464

$320,484

Less: interest expense

(41,076)

(73,693)

Net interest income per consolidated statements of net income

279,388

246,791

Plus: taxable equivalent adjustment

3,202

3,757

Net interest income (FTE) (non-GAAP)

$282,590

$250,548

Average earning assets

$8,372,894

$6,885,372

Net interest margin (FTE) (non-GAAP)

3.38%

3.64%

 PTPP / Average Assets (non-GAAP)

Income before taxes

$21,039

$117,360

Plus: Provision for credit losses

131,424

14,873

Total

152,463

132,233

Total (non-GAAP)

$152,463

$132,233

Average assets

$9,152,747

$7,435,536

PTPP / Average Assets (non-GAAP)

1.67%

1.78%

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

The following profitability metrics for the twelve  months ended December 31, 2020  are adjusted to exclude a $58.7 million loss related to a customer fraud.

2020

Twelve Months Ended

December 31,

Return on Average Tangible Shareholders' Equity (non-GAAP)

Net Income

$21,040

Provision for credit losses

58,671

Tax effect

(12,321)

Net income excluding fraud

$67,390

Net income excluding fraud

$67,390

Plus: amortization of intangibles , net of tax

2,001

Net income before amortization of intangibles

$69,391

Average total shareholders' equity

$1,169,489

Less: average goodwill and  intangible assets, net of deferred tax liability

(380,846)

Average tangible equity (non-GAAP)

$788,643

Return on average tangible shareholders' equity (non-GAAP)

8.80%

Return on Average Assets (non-GAAP)

Net income excluding fraud

$67,390

Average total assets

9,152,747

Return on average assets (non-GAAP)

0.74%

Return on Average Equity (non-GAAP)

Net income excluding fraud

$67,390

Average total shareholders' equity

1,169,489

Return on average assets (non-GAAP)

5.76%

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-fourth-quarter-and-full-year-2020-results-301216936.html

SOURCE S&T Bancorp, Inc.



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