INDIANA, Pa., Oct. 19,
2023 /PRNewswire/ -- S&T Bancorp, Inc. (S&T)
(NASDAQ: STBA), the holding company for S&T Bank, announced net
income of $33.5 million, or
$0.87 per diluted share, for the
third quarter of 2023 compared to net income of $34.5 million, or $0.89 per diluted share, for the second quarter
of 2023 and net income of $37.2
million, or $0.95 per diluted
share, for the third quarter of 2022.
Third Quarter of 2023 Highlights:
- Solid return metrics with return on average assets (ROA) of
1.42%, return on average equity (ROE) of 10.84% and return on
average tangible equity (ROTE) (non-GAAP) of 15.78% compared to ROA
of 1.51%, ROE of 11.23% and ROTE (non-GAAP) of 16.32% for the
second quarter of 2023.
- Pre-provision net revenue to average assets (PPNR) (non-GAAP)
was 1.99% compared to 2.30% for the second quarter of 2023.
- Net interest margin (NIM) (FTE) (non-GAAP) remains strong at
4.09% compared to 4.22% in the second quarter of 2023.
- Total portfolio loans increased $196.3
million, or 10.6% annualized, compared to June 30, 2023.
- Total deposits of $7.2 billion
remain relatively unchanged compared to June
30, 2023.
- Nonperforming assets decreased $1.6
million to $16.4 million, or
0.22% of total loans plus other real estate owned, or OREO,
compared to 0.25% at June 30,
2023.
- Net charge-offs of $3.7 million,
or 0.20% of average loans (annualized), compared to net charge-offs
of $11.0 million, or 0.60% of average
loans (annualized), in the second quarter of 2023.
"Our third quarter performance was strong with solid return
metrics," said Chris McComish, chief
executive officer. "While recognizing there are challenges across
the industry, we are very proud of the core earnings growth we have
had in this rising interest rate environment. Our net interest
margin remains strong at 4.09%. Deposit balances stabilized during
the quarter and the shift in the mix of our deposits slowed
considerably compared to earlier in the year. We believe our team's
efforts around our customer-focused initiatives are paying off in
this competitive environment."
Net Interest Income
Net interest income was $87.4
million for the third quarter of 2023 compared to
$88.1 million for the second quarter
of 2023. The decrease of $0.7 million
in net interest income was driven by higher funding costs,
partially offset by higher yields on interest-earning assets. Net
interest margin on a fully taxable equivalent basis (NIM) (FTE)
(non-GAAP) was 4.09% compared to 4.22% in the prior quarter. The
yield on total average loans increased 14 basis points to 6.15%
compared to 6.01% in the second quarter of 2023 due to higher
interest rates. Average loan balances increased $126.5 million to $7.4
billion compared to $7.3
billion in the second quarter of 2023. Total
interest-bearing deposit costs increased 33 basis points to 2.04%
compared to 1.71% in the second quarter of 2023. Higher
interest-bearing deposit costs primarily related to an increase in
interest rates and a continued shift in the mix of deposits with
higher balances in certificates of deposit, or CDs. Average CD
balances increased $147.0 million
compared to the second quarter of 2023. Total borrowing costs
increased 25 basis points to 5.77% compared to 5.52% in the second
quarter of 2023. Average borrowings increased $58.8 million to $675.3
million compared to $616.5
million in the second quarter of 2023 due to average loan
growth that exceeded average deposit growth.
Asset Quality
Total nonperforming assets decreased $1.6
million to $16.4 million at
September 30, 2023 compared to $18.0 million at June 30, 2023.
Nonperforming assets to total loans plus OREO decreased 3 basis
points to 0.22% at September 30, 2023 compared to 0.25% at
June 30, 2023. Net loan charge-offs were $3.7 million for the third quarter of 2023
compared to net loan charge-offs of $11.0
million in the second quarter of 2023. The provision for
credit losses was $5.5 million for
the third quarter of 2023 compared to $10.5
million in the second quarter of 2023. The decrease in the
provision for credit losses primarily related to higher net
charge-offs in the second quarter compared to the third quarter of
2023. The allowance for credit losses was $108.2 million, or 1.44% of total portfolio
loans, as of September 30, 2023 compared to $105.8 million, or 1.44%, at June 30,
2023.
Noninterest Income and Expense
Noninterest income decreased $2.0
million to $12.2 million in
the third quarter of 2023 compared to $14.2
million in the second quarter of 2023. The decrease mainly
related to lower other income from changes in valuation adjustments
of $1.6 million and due to a gain on
OREO of $0.6 million in the second
quarter of 2023. Noninterest expense increased $3.2 million to $52.8
million compared to $49.6
million in the second quarter of 2023. Salaries and employee
benefits increased $2.1 million
mainly due to higher incentives compared to the second quarter of
2023.
Financial Condition
Total assets were $9.5 billion at
September 30, 2023 compared to $9.3
billion at June 30, 2023. Total portfolio loans
increased $196.3 million, or 10.6%
annualized, compared to June 30, 2023. The consumer loan
portfolio increased $112.8 million
with growth in residential mortgages of $97.4 million compared to June 30, 2023. The
commercial loan portfolio increased $83.5 million with growth in commercial real
estate of $62.1 million and
commercial construction of $25.4 million compared to June 30,
2023. Total deposits increased $81.7
million compared to June 30, 2023. CDs increased
$154.7 million mainly due to an
increase in brokered CDs of $75.0
million and a continued shift from other deposit types
compared to June 30, 2023. Total
borrowings increased $94.7 million to
$718.7 million compared to
$624.0 million at June 30, 2023
primarily related to loan growth.
S&T continues to maintain a strong regulatory capital
position with all capital ratios above the well-capitalized
thresholds of federal bank regulatory agencies.
Conference Call
S&T will host its third quarter 2023 earnings conference
call live over the Internet at 1:00 p.m. ET
on Thursday, October 19, 2023. To access the webcast,
go to S&T Bancorp, Inc.'s Investor Relations
webpage www.stbancorp.com. After the live presentation, the
webcast will be archived at www.stbancorp.com for 12
months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.5
billion bank holding company that is headquartered in
Indiana, Pennsylvania and trades on the NASDAQ Global
Select Market under the symbol STBA. Its principal subsidiary,
S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. S&T Bank was named by Forbes as
a 2023 Best-in-State Bank. For more information visit
stbancorp.com or stbank.com. Follow us on Facebook, Instagram
and LinkedIn.
Forward-Looking Statements
This information contains or incorporates statements that we
believe are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally relate to our financial condition, results of
operations, plans, objectives, outlook for earnings, revenues,
expenses, capital and liquidity levels and ratios, asset levels,
asset quality, financial position and other matters regarding or
affecting S&T and its future business and operations.
Forward-looking statements are typically identified by words or
phrases such as "will likely result," "expect," "anticipate,"
"estimate," "forecast," "project," "intend," "believe," "assume,"
"strategy," "trend," "plan," "outlook," "outcome," "continue,"
"remain," "potential," "opportunity," "comfortable," "current,"
"position," "maintain," "sustain," "seek," "achieve," and
variations of such words and similar expressions, or future or
conditional verbs such as will, would, should, could or may.
Although we believe the assumptions upon which these
forward-looking statements are based are reasonable, any of these
assumptions could prove to be inaccurate and the forward-looking
statements based on these assumptions could be incorrect. The
matters discussed in these forward-looking statements are subject
to various risks, uncertainties and other factors that could cause
actual results and trends to differ materially from those made,
projected, or implied in or by the forward-looking statements
depending on a variety of uncertainties or other factors including,
but not limited to: credit losses and the credit risk of our
commercial and consumer loan products; changes in the level of
charge-offs and changes in estimates of the adequacy of the
allowance for credit losses, or ACL; cyber-security concerns; rapid
technological developments and changes; operational risks or risk
management failures by us or critical third parties, including
fraud risk; our ability to manage our reputational
risks; sensitivity to the interest rate environment, a rapid
increase in interest rates or a change in the shape of the yield
curve; a change in spreads on interest-earning assets and
interest-bearing liabilities; 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; environmental, social and governance
practices and disclosures, including climate change, hiring
practices, the diversity of the work force, and racial and social
justice issues; deterioration of the housing market and reduced
demand for mortgages; deterioration in the overall macroeconomic
conditions or the state of the banking industry that could warrant
further analysis of the carrying value of goodwill and could result
in an adjustment to its carrying value resulting in a non-cash
charge to net income; the stability of our core deposit base and
access to contingency funding; re-emergence of turbulence in
significant portions of the global financial and real estate
markets that could impact our performance, both directly, by
affecting our revenues and the value of our assets and liabilities,
and indirectly, by affecting the economy generally and access to
capital in the amounts, at the times and on the terms required to
support our future businesses.
Many of these factors, as well as other factors, are described
in our Annual Report on Form 10-K for the year ended December 31, 2022, including Part I, Item
1A-"Risk Factors" and any of our subsequent filings with the SEC.
Forward-looking statements are based on beliefs and assumptions
using information available at the time the statements are made. We
caution you not to unduly rely on forward-looking statements
because the assumptions, beliefs, expectations and projections
about future events may, and often do, differ materially from
actual results. Any forward-looking statement speaks only as to the
date on which it is made, and we undertake no obligation to update
any forward-looking statement to reflect developments occurring
after the statement is made.
Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with
GAAP, our management uses, and this information contains or
references, certain non-GAAP financial measures, such as tangible
book value, return on average tangible shareholder's equity, PPNR
to average assets, efficiency ratio, tangible common equity to
tangible assets and net interest margin on an FTE basis. We believe
these non-GAAP financial measures provide information useful to
investors in understanding our underlying operational performance
and our business and performance trends as they facilitate
comparisons with the performance of other companies in the
financial services industry. Although we believe that these
non-GAAP financial measures enhance investors' understanding of our
business and performance, these non-GAAP financial measures should
not be considered alternatives to GAAP or considered to be more
important than financial results determined in accordance with
GAAP, nor are they necessarily comparable with non-GAAP measures
which may be presented by other companies. See Definitions and
Reconciliation of GAAP to Non-GAAP Financial Measures for more
information related to these financial measures.
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars in
thousands, except per share data)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
$114,258
|
|
$108,699
|
|
$83,035
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
7,857
|
|
7,806
|
|
6,305
|
|
Tax-exempt
|
213
|
|
215
|
|
380
|
|
Dividends
|
631
|
|
613
|
|
115
|
|
Total Interest and
Dividend Income
|
122,959
|
|
117,333
|
|
89,835
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
24,910
|
|
20,102
|
|
5,197
|
|
Borrowings, junior
subordinated debt securities and other
|
10,662
|
|
9,108
|
|
840
|
|
Total Interest
Expense
|
35,572
|
|
29,210
|
|
6,037
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
87,387
|
|
88,123
|
|
83,798
|
|
Provision for credit
losses
|
5,498
|
|
10,529
|
|
2,498
|
|
Net Interest Income
After Provision for Credit Losses
|
81,889
|
|
77,594
|
|
81,300
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain on sale of
securities
|
—
|
|
—
|
|
198
|
|
Debit and credit
card
|
4,690
|
|
4,645
|
|
4,768
|
|
Service charges on
deposit accounts
|
4,060
|
|
3,928
|
|
4,333
|
|
Wealth
management
|
3,003
|
|
3,185
|
|
3,212
|
|
Mortgage
banking
|
294
|
|
289
|
|
425
|
|
Other
|
135
|
|
2,144
|
|
1,824
|
|
Total Noninterest
Income
|
12,182
|
|
14,191
|
|
14,760
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
27,521
|
|
25,391
|
|
26,700
|
|
Data processing and
information technology
|
4,479
|
|
4,177
|
|
4,220
|
|
Occupancy
|
3,671
|
|
3,710
|
|
3,490
|
|
Furniture, equipment
and software
|
3,125
|
|
3,192
|
|
2,915
|
|
Professional services
and legal
|
1,965
|
|
2,069
|
|
1,851
|
|
Other taxes
|
1,831
|
|
1,322
|
|
1,559
|
|
Marketing
|
1,741
|
|
1,459
|
|
1,367
|
|
FDIC
insurance
|
1,029
|
|
1,032
|
|
598
|
|
Other
|
7,441
|
|
7,281
|
|
6,933
|
|
Total Noninterest
Expense
|
52,803
|
|
49,633
|
|
49,633
|
|
Income Before
Taxes
|
41,268
|
|
42,152
|
|
46,427
|
|
Income tax
expense
|
7,800
|
|
7,685
|
|
9,178
|
|
Net
Income
|
$33,468
|
|
$34,467
|
|
$37,249
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Shares outstanding at
end of period
|
38,244,309
|
|
38,241,918
|
|
39,012,773
|
|
Average shares
outstanding - diluted
|
38,336,016
|
|
38,614,022
|
|
38,975,145
|
|
Diluted earnings per
share
|
$0.87
|
|
$0.89
|
|
$0.95
|
|
Dividends declared per
share
|
$0.32
|
|
$0.32
|
|
$0.30
|
|
Dividend yield
(annualized)
|
4.73 %
|
|
4.71 %
|
|
4.09 %
|
|
Dividends paid to net
income
|
36.55 %
|
|
35.98 %
|
|
31.39 %
|
|
Book value
|
$31.99
|
|
$31.72
|
|
$29.56
|
|
Tangible book value
(1)
|
$22.14
|
|
$21.85
|
|
$19.87
|
|
Market value
|
$27.08
|
|
$27.19
|
|
$29.31
|
|
|
|
|
|
|
|
|
Profitability Ratios
(Annualized)
|
|
|
|
|
|
|
Return on average
assets
|
1.42 %
|
|
1.51 %
|
|
1.64 %
|
|
Return on average
shareholders' equity
|
10.84 %
|
|
11.23 %
|
|
12.47 %
|
|
Return on average
tangible shareholders' equity(2)
|
15.78 %
|
|
16.32 %
|
|
18.46 %
|
|
Pre-provision net
revenue / average assets(3)
|
1.99 %
|
|
2.30 %
|
|
2.15 %
|
|
Efficiency ratio
(FTE)(4)
|
52.68 %
|
|
48.21 %
|
|
50.19 %
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(dollars in
thousands, except per share data)
|
|
|
2023
|
|
2022
|
|
INTEREST AND
DIVIDEND INCOME
|
|
|
|
|
|
|
Loans, including
fees
|
|
|
$325,681
|
|
$218,646
|
|
Investment
Securities:
|
|
|
|
|
|
|
Taxable
|
|
|
23,120
|
|
17,236
|
|
Tax-exempt
|
|
|
642
|
|
1,346
|
|
Dividends
|
|
|
1,752
|
|
315
|
|
Total Interest and
Dividend Income
|
|
|
351,195
|
|
237,543
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE
|
|
|
|
|
|
|
Deposits
|
|
|
59,915
|
|
8,840
|
|
Borrowings, junior
subordinated debt securities and other
|
|
|
26,979
|
|
1,978
|
|
Total Interest
Expense
|
|
|
86,894
|
|
10,818
|
|
|
|
|
|
|
|
|
NET INTEREST
INCOME
|
|
|
264,301
|
|
226,725
|
|
Provision for credit
losses
|
|
|
16,949
|
|
5,190
|
|
Net Interest Income
After Provision for Credit Losses
|
|
|
247,352
|
|
221,535
|
|
|
|
|
|
|
|
|
NONINTEREST
INCOME
|
|
|
|
|
|
|
Net gain on sale of
securities
|
|
|
—
|
|
198
|
|
Debit and credit
card
|
|
|
13,708
|
|
14,587
|
|
Service charges on
deposit accounts
|
|
|
12,064
|
|
12,488
|
|
Wealth
management
|
|
|
9,136
|
|
9,701
|
|
Mortgage
banking
|
|
|
884
|
|
1,906
|
|
Other
|
|
|
3,771
|
|
3,736
|
|
Total Noninterest
Income
|
|
|
39,563
|
|
42,616
|
|
|
|
|
|
|
|
|
NONINTEREST
EXPENSE
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
|
80,513
|
|
75,223
|
|
Data processing and
information technology
|
|
|
12,914
|
|
12,759
|
|
Occupancy
|
|
|
11,216
|
|
11,006
|
|
Furniture, equipment
and software
|
|
|
9,178
|
|
8,631
|
|
Professional services
and legal
|
|
|
5,855
|
|
6,180
|
|
Marketing
|
|
|
5,053
|
|
4,252
|
|
Other taxes
|
|
|
4,943
|
|
4,778
|
|
FDIC
insurance
|
|
|
3,073
|
|
2,417
|
|
Other
|
|
|
21,390
|
|
20,225
|
|
Total Noninterest
Expense
|
|
|
154,135
|
|
145,471
|
|
Income Before
Taxes
|
|
|
132,780
|
|
118,680
|
|
Income tax
expense
|
|
|
25,046
|
|
23,430
|
|
|
|
|
|
|
|
|
Net
Income
|
|
|
$107,734
|
|
$95,250
|
|
|
|
|
|
|
|
|
Per Share
Data
|
|
|
|
|
|
|
Average shares
outstanding - diluted
|
|
|
38,668,964
|
|
39,049,151
|
|
Diluted earnings per
share
|
|
|
$2.78
|
|
$2.43
|
|
Dividends declared per
share
|
|
|
$0.96
|
|
$0.89
|
|
Dividends paid to net
income
|
|
|
34.43 %
|
|
36.61 %
|
|
|
|
|
|
|
|
|
Profitability Ratios
(annualized)
|
|
|
|
|
|
|
Return on average
assets
|
|
|
1.56 %
|
|
1.38 %
|
|
Return on average
shareholders' equity
|
|
|
11.80 %
|
|
10.73 %
|
|
Return on average
tangible shareholders' equity(5)
|
|
|
17.20 %
|
|
15.91 %
|
|
Pre-provision net
revenue / average assets(6)
|
|
|
2.17 %
|
|
1.79 %
|
|
Efficiency ratio
(FTE)(7)
|
|
|
50.42 %
|
|
53.75 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
ASSETS
|
|
|
|
|
|
|
Cash and due from
banks, including interest-bearing deposits
|
$238,453
|
|
$227,867
|
|
$134,903
|
|
Securities, at fair
value
|
955,262
|
|
970,372
|
|
997,428
|
|
Loans held for
sale
|
257
|
|
541
|
|
1,039
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
3,286,272
|
|
3,224,180
|
|
3,134,841
|
|
Commercial and
industrial
|
1,635,354
|
|
1,639,332
|
|
1,714,714
|
|
Commercial
construction
|
388,470
|
|
363,100
|
|
390,093
|
|
Total Commercial
Loans
|
5,310,096
|
|
5,226,612
|
|
5,239,648
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
1,384,133
|
|
1,286,771
|
|
1,043,973
|
|
Home equity
|
649,122
|
|
645,897
|
|
642,937
|
|
Installment and other
consumer
|
115,379
|
|
115,634
|
|
126,629
|
|
Consumer
construction
|
57,188
|
|
44,697
|
|
43,729
|
|
Total Consumer
Loans
|
2,205,822
|
|
2,092,999
|
|
1,857,268
|
|
Total Portfolio
Loans
|
7,515,918
|
|
7,319,611
|
|
7,096,916
|
|
Allowance for credit
losses
|
(108,206)
|
|
(105,757)
|
|
(99,694)
|
|
Total Portfolio
Loans, Net
|
7,407,712
|
|
7,213,854
|
|
6,997,222
|
|
Federal Home Loan Bank
and other restricted stock, at cost
|
38,576
|
|
31,271
|
|
10,900
|
|
Goodwill
|
373,424
|
|
373,424
|
|
373,424
|
|
Other assets
|
452,393
|
|
435,593
|
|
421,053
|
|
Total
Assets
|
$9,466,077
|
|
$9,252,922
|
|
$8,935,969
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
Noninterest-bearing
demand
|
$2,276,009
|
|
$2,330,237
|
|
$2,663,176
|
|
Interest-bearing
demand
|
868,624
|
|
875,174
|
|
847,825
|
|
Money
market
|
1,615,445
|
|
1,583,717
|
|
1,818,642
|
|
Savings
|
974,940
|
|
1,018,936
|
|
1,128,169
|
|
Certificates of
deposit
|
1,487,879
|
|
1,333,146
|
|
952,785
|
|
Total
Deposits
|
7,222,897
|
|
7,141,210
|
|
7,410,597
|
|
|
|
|
|
|
|
|
Borrowings:
|
|
|
|
|
|
|
Short-term
borrowings
|
630,000
|
|
530,000
|
|
35,000
|
|
Long-term
borrowings
|
39,396
|
|
39,513
|
|
14,853
|
|
Junior subordinated
debt securities
|
49,343
|
|
54,483
|
|
54,438
|
|
Total
Borrowings
|
718,739
|
|
623,996
|
|
104,291
|
|
Other
liabilities
|
300,909
|
|
274,863
|
|
267,900
|
|
Total
Liabilities
|
8,242,545
|
|
8,040,069
|
|
7,782,788
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Total Shareholders'
Equity
|
1,223,532
|
|
1,212,853
|
|
1,153,181
|
|
Total Liabilities
and Shareholders' Equity
|
$9,466,077
|
|
$9,252,922
|
|
$8,935,969
|
|
|
|
|
|
|
|
|
Capitalization
Ratios
|
|
|
|
|
|
|
Shareholders' equity /
assets
|
12.93 %
|
|
13.11 %
|
|
12.90 %
|
|
Tangible common equity
/ tangible assets(9)
|
9.31 %
|
|
9.42 %
|
|
9.06 %
|
|
Tier 1 leverage
ratio
|
11.12 %
|
|
11.12 %
|
|
10.75 %
|
|
Common equity tier 1
capital
|
13.11 %
|
|
13.07 %
|
|
12.53 %
|
|
Risk-based capital -
tier 1
|
13.43 %
|
|
13.47 %
|
|
12.93 %
|
|
Risk-based capital -
total
|
15.01 %
|
|
15.06 %
|
|
14.43 %
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Net Interest Margin
(FTE) (QTD Averages)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
$144,303
|
4.93 %
|
$132,900
|
5.61 %
|
$158,700
|
2.05 %
|
|
Securities, at fair
value
|
964,928
|
2.64 %
|
983,349
|
2.54 %
|
1,051,534
|
2.28 %
|
|
Loans held for
sale
|
207
|
6.70 %
|
92
|
6.87 %
|
1,032
|
5.36 %
|
|
Commercial real
estate
|
3,243,056
|
5.83 %
|
3,176,154
|
5.62 %
|
3,159,543
|
4.63 %
|
|
Commercial and
industrial
|
1,646,572
|
7.22 %
|
1,684,944
|
7.13 %
|
1,704,271
|
5.10 %
|
|
Commercial
construction
|
373,111
|
7.80 %
|
384,329
|
7.63 %
|
405,460
|
5.05 %
|
|
Total Commercial
Loans
|
5,262,739
|
6.41 %
|
5,245,427
|
6.25 %
|
5,269,274
|
4.81 %
|
|
Residential
mortgage
|
1,332,913
|
4.66 %
|
1,229,129
|
4.52 %
|
1,005,139
|
4.12 %
|
|
Home equity
|
645,949
|
6.80 %
|
647,070
|
6.59 %
|
629,827
|
4.34 %
|
|
Installment and other
consumer
|
115,111
|
8.52 %
|
118,641
|
8.28 %
|
123,010
|
6.10 %
|
|
Consumer
construction
|
52,783
|
4.89 %
|
42,879
|
4.26 %
|
40,975
|
3.47 %
|
|
Total Consumer
Loans
|
2,146,756
|
5.52 %
|
2,037,719
|
5.39 %
|
1,798,951
|
4.31 %
|
|
Total Portfolio
Loans
|
7,409,495
|
6.15 %
|
7,283,146
|
6.01 %
|
7,068,225
|
4.69 %
|
|
Total
Loans
|
7,409,702
|
6.15 %
|
7,283,238
|
6.01 %
|
7,069,257
|
4.69 %
|
|
Total other earning
assets
|
42,645
|
6.97 %
|
37,003
|
7.26 %
|
8,398
|
4.55 %
|
|
Total
Interest-earning Assets
|
8,561,578
|
5.74 %
|
8,436,490
|
5.61 %
|
8,287,889
|
4.33 %
|
|
Noninterest-earning
assets
|
763,243
|
|
740,299
|
|
721,480
|
|
|
Total
Assets
|
$9,324,821
|
|
$9,176,789
|
|
$9,009,369
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
$868,782
|
0.91 %
|
$847,776
|
0.58 %
|
$872,302
|
0.07 %
|
|
Money
market
|
1,595,964
|
2.34 %
|
1,599,051
|
2.13 %
|
1,861,389
|
0.69 %
|
|
Savings
|
996,999
|
0.47 %
|
1,037,924
|
0.38 %
|
1,131,575
|
0.10 %
|
|
Certificates of
deposit
|
1,382,532
|
3.54 %
|
1,235,496
|
3.06 %
|
962,898
|
0.61 %
|
|
Total
Interest-bearing Deposits
|
4,844,277
|
2.04 %
|
4,720,247
|
1.71 %
|
4,828,164
|
0.43 %
|
|
Securities sold under
repurchase agreements
|
—
|
— %
|
—
|
— %
|
12,668
|
0.10 %
|
|
Short-term
borrowings
|
585,196
|
5.65 %
|
529,013
|
5.39 %
|
10,379
|
3.16 %
|
|
Long-term
borrowings
|
39,458
|
4.47 %
|
32,980
|
4.14 %
|
17,278
|
2.25 %
|
|
Junior subordinated
debt securities
|
50,649
|
8.16 %
|
54,474
|
7.62 %
|
54,428
|
4.78 %
|
|
Total
Borrowings
|
675,303
|
5.77 %
|
616,467
|
5.52 %
|
94,753
|
3.52 %
|
|
Total Other
Interest-bearing Liabilities
|
62,584
|
5.33 %
|
49,572
|
5.06 %
|
—
|
— %
|
|
Total
Interest-bearing Liabilities
|
5,582,164
|
2.53 %
|
5,386,286
|
2.18 %
|
4,922,917
|
0.49 %
|
|
Noninterest-bearing
liabilities
|
2,517,752
|
|
2,559,888
|
|
2,901,290
|
|
|
Shareholders'
equity
|
1,224,905
|
|
1,230,615
|
|
1,185,162
|
|
|
Total Liabilities
and Shareholders' Equity
|
$9,324,821
|
|
$9,176,789
|
|
$9,009,369
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin(10)
|
|
4.09 %
|
|
4.22 %
|
|
4.04 %
|
|
|
|
|
|
|
|
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
|
Net Interest Margin
(FTE) (YTD Averages)
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
|
$139,248
|
4.91 %
|
$478,896
|
0.60 %
|
|
Securities, at fair
value
|
|
|
982,831
|
2.56 %
|
1,026,131
|
2.19 %
|
|
Loans held for
sale
|
|
|
142
|
6.63 %
|
1,326
|
4.15 %
|
|
Commercial real
estate
|
|
|
3,184,270
|
5.64 %
|
3,204,371
|
4.14 %
|
|
Commercial and
industrial
|
|
|
1,680,640
|
7.03 %
|
1,700,923
|
4.47 %
|
|
Commercial
construction
|
|
|
382,020
|
7.55 %
|
406,513
|
4.05 %
|
|
Total Commercial
Loans
|
|
|
5,246,930
|
6.23 %
|
5,311,807
|
4.24 %
|
|
Residential
mortgage
|
|
|
1,236,310
|
4.54 %
|
947,454
|
4.04 %
|
|
Home equity
|
|
|
647,785
|
6.56 %
|
598,595
|
3.80 %
|
|
Installment and other
consumer
|
|
|
118,846
|
8.20 %
|
117,388
|
5.64 %
|
|
Consumer
construction
|
|
|
47,203
|
4.63 %
|
31,407
|
3.41 %
|
|
Total Consumer
Loans
|
|
|
2,050,144
|
5.39 %
|
1,694,844
|
4.05 %
|
|
Total Portfolio
Loans
|
|
|
7,297,074
|
5.99 %
|
7,006,651
|
4.19 %
|
|
Total
Loans
|
|
|
7,297,216
|
5.99 %
|
7,007,977
|
4.19 %
|
|
Total other earning
assets
|
|
|
38,152
|
6.98 %
|
8,869
|
3.86 %
|
|
Total
Interest-earning Assets
|
|
|
8,457,447
|
5.58 %
|
8,521,873
|
3.75 %
|
|
Noninterest-earning
assets
|
|
|
752,326
|
|
706,640
|
|
|
Total
Assets
|
|
|
$9,209,773
|
|
$9,228,513
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
Interest-bearing
demand
|
|
|
$847,222
|
0.61 %
|
$945,733
|
0.07 %
|
|
Money
market
|
|
|
1,621,726
|
2.11 %
|
1,948,653
|
0.32 %
|
|
Savings
|
|
|
1,041,346
|
0.38 %
|
1,119,739
|
0.06 %
|
|
Certificates of
deposit
|
|
|
1,224,704
|
2.99 %
|
1,011,228
|
0.41 %
|
|
Total
Interest-bearing deposits
|
|
|
4,734,998
|
1.69 %
|
5,025,353
|
0.24 %
|
|
Securities sold under
repurchase agreements
|
|
|
—
|
— %
|
47,912
|
0.10 %
|
|
Short-term
borrowings
|
|
|
522,448
|
5.36 %
|
3,498
|
3.16 %
|
|
Long-term
borrowings
|
|
|
29,133
|
4.05 %
|
20,535
|
2.06 %
|
|
Junior subordinated
debt securities
|
|
|
53,180
|
7.75 %
|
54,413
|
3.79 %
|
|
Total
Borrowings
|
|
|
604,761
|
5.50 %
|
126,358
|
2.09 %
|
|
Total Other
Interest-bearing Liabilities
|
|
|
55,637
|
5.01 %
|
—
|
— %
|
|
Total
Interest-bearing Liabilities
|
|
|
5,395,396
|
2.15 %
|
5,151,711
|
0.28 %
|
|
Noninterest-bearing
liabilities
|
|
|
2,593,683
|
|
2,890,375
|
|
|
Shareholders'
equity
|
|
|
1,220,694
|
|
1,186,427
|
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
$9,209,773
|
|
$9,228,513
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Margin(8)
|
|
|
|
4.21 %
|
|
3.58 %
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
Third
|
|
Second
|
|
Third
|
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
|
Nonaccrual
Loans
|
|
|
|
|
|
|
|
Commercial
loans:
|
|
%
Loans
|
|
%
Loans
|
|
%
Loans
|
|
Commercial real
estate
|
$1,735
|
0.05 %
|
$1,859
|
0.06 %
|
$8,556
|
0.27 %
|
|
Commercial and
industrial
|
3,468
|
0.21 %
|
4,842
|
0.30 %
|
3,847
|
0.22 %
|
|
Commercial
construction
|
384
|
0.10 %
|
384
|
0.11 %
|
384
|
0.10 %
|
|
Total Nonaccrual
Commercial Loans
|
5,587
|
0.11 %
|
7,085
|
0.14 %
|
12,787
|
0.24 %
|
|
Consumer
loans:
|
|
|
|
|
|
|
|
Residential
mortgage
|
4,139
|
0.30 %
|
4,167
|
0.32 %
|
7,357
|
0.70 %
|
|
Home equity
|
2,617
|
0.40 %
|
2,700
|
0.42 %
|
2,216
|
0.34 %
|
|
Installment and other
consumer
|
334
|
0.29 %
|
367
|
0.32 %
|
417
|
0.33 %
|
|
Total Nonaccrual
Consumer Loans
|
7,090
|
0.32 %
|
7,234
|
0.35 %
|
9,990
|
0.54 %
|
|
Total Nonaccrual
Loans
|
$12,677
|
0.17 %
|
$14,319
|
0.20 %
|
$22,777
|
0.32 %
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Charge-offs
|
$4,077
|
|
$12,222
|
|
$1,239
|
|
Recoveries
|
(367)
|
|
(1,255)
|
|
(529)
|
|
Net Loan
Charge-offs
|
$3,710
|
|
$10,967
|
|
$710
|
|
|
|
|
|
|
|
|
Net Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Commercial real
estate
|
(13)
|
|
(1,030)
|
|
304
|
|
Commercial and
industrial
|
3,389
|
|
11,296
|
|
80
|
|
Total Commercial Loan
Charge-offs
|
3,376
|
|
10,266
|
|
384
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
(11)
|
|
(1)
|
|
41
|
|
Home equity
|
71
|
|
(12)
|
|
111
|
|
Installment and other
consumer
|
274
|
|
714
|
|
174
|
|
Total Consumer Loan
Charge-offs
|
334
|
|
701
|
|
326
|
|
Total Net Loan
Charge-offs
|
$3,710
|
|
$10,967
|
|
$710
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Charge-offs
|
|
|
$20,758
|
|
$9,899
|
|
Recoveries
|
|
|
(11,196)
|
|
(8,213)
|
|
Net Loan
Charge-offs
|
|
|
$9,562
|
|
$1,686
|
|
|
|
|
|
|
|
|
Net Loan Charge-offs
(Recoveries)
|
|
|
|
|
|
|
Commercial
loans:
|
|
|
|
|
|
|
Customer
fraud
|
|
|
($9,329)
|
|
$—
|
|
Commercial real
estate
|
|
|
(1,068)
|
|
356
|
|
Commercial and
industrial
|
|
|
18,633
|
|
285
|
|
Commercial
construction
|
|
|
(2)
|
|
(1)
|
|
Total Commercial Loan
Charge-offs
|
|
|
8,234
|
|
640
|
|
Consumer
loans:
|
|
|
|
|
|
|
Residential
mortgage
|
|
|
(3)
|
|
135
|
|
Home equity
|
|
|
90
|
|
97
|
|
Installment and other
consumer
|
|
|
1,241
|
|
814
|
|
Total Consumer Loan
Charge-offs
|
|
|
1,328
|
|
1,046
|
|
Total Net Loan
Charge-offs
|
|
|
$9,562
|
|
$1,686
|
|
|
|
|
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Nonaccrual
loans
|
$12,677
|
|
$14,319
|
|
$22,777
|
|
OREO
|
3,715
|
|
3,666
|
|
6,022
|
|
Total nonperforming
assets
|
16,392
|
|
17,985
|
|
28,799
|
|
Troubled debt
restructurings (nonaccruing)*
|
—
|
|
—
|
|
3,860
|
|
Troubled debt
restructurings (accruing)*
|
—
|
|
—
|
|
8,925
|
|
Total troubled debt
restructurings*
|
—
|
|
—
|
|
12,785
|
|
Nonaccrual loans /
total loans
|
0.17 %
|
|
0.20 %
|
|
0.32 %
|
|
Nonperforming assets /
total loans plus OREO
|
0.22 %
|
|
0.25 %
|
|
0.41 %
|
|
Allowance for credit
losses / total portfolio loans
|
1.44 %
|
|
1.44 %
|
|
1.40 %
|
|
Allowance for credit
losses / nonaccrual loans
|
854 %
|
|
739 %
|
|
438 %
|
|
Net loan charge-offs
(recoveries)
|
$3,710
|
|
$10,967
|
|
$710
|
|
Net loan charge-offs
(recoveries) (annualized) / average loans
|
0.20 %
|
|
0.60 %
|
|
0.04 %
|
|
|
*TDR's were
eliminated as of January 1, 2023 as part of implementing ASU
2022-02, Financial Instruments Credit Losses (Topic 326): Troubled
Debt Restructurings and Vintage Disclosures.
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
Asset Quality
Data
|
|
|
|
|
|
|
Net loan
charge-offs
|
|
|
$9,562
|
|
$1,686
|
|
Net loan charge-offs
(annualized) / average loans
|
|
|
0.18 %
|
|
0.03 %
|
|
S&T
Bancorp, Inc.
Consolidated Selected Financial
Data
Unaudited
|
|
|
|
Definitions
and Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars and shares
in thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(1) Tangible Book
Value (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,223,532
|
|
$1,212,853
|
|
$1,153,181
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,883)
|
|
(377,144)
|
|
(377,961)
|
|
Tangible common equity
(non-GAAP)
|
$846,649
|
|
$835,709
|
|
$775,220
|
|
Common shares
outstanding
|
38,244
|
|
38,242
|
|
39,013
|
|
Tangible book value
(non-GAAP)
|
$22.14
|
|
$21.85
|
|
$19.87
|
|
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)
|
$132,779
|
|
$138,248
|
|
$147,781
|
|
Plus: amortization of
intangibles (annualized), net of tax
|
1,034
|
|
1,046
|
|
1,181
|
|
Net income before
amortization of intangibles (annualized)
|
$133,813
|
|
$139,294
|
|
$148,962
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
$1,224,905
|
|
$1,230,615
|
|
$1,185,162
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
(377,020)
|
|
(377,280)
|
|
(378,154)
|
|
Average tangible
equity (non-GAAP)
|
$847,885
|
|
$853,335
|
|
$807,008
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
15.78 %
|
|
16.32 %
|
|
18.46 %
|
|
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
|
$41,268
|
|
$42,152
|
|
$46,427
|
|
Plus: Provision for
credit losses
|
5,498
|
|
10,529
|
|
2,498
|
|
Total
|
$46,766
|
|
$52,681
|
|
$48,925
|
|
Total (annualized)
(non-GAAP)
|
$185,538
|
|
$211,302
|
|
$194,106
|
|
Average
assets
|
$9,324,821
|
|
$9,176,789
|
|
$9,009,369
|
|
Pre-provision Net
Revenue / Average Assets (non-GAAP)
|
1.99 %
|
|
2.30 %
|
|
2.15 %
|
|
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
|
$52,803
|
|
$49,633
|
|
$49,633
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
87,387
|
|
88,123
|
|
83,798
|
|
Plus: taxable
equivalent adjustment
|
674
|
|
639
|
|
521
|
|
Net interest income
(FTE) (non-GAAP)
|
$88,061
|
|
$88,762
|
|
$84,319
|
|
Noninterest
income
|
12,182
|
|
14,191
|
|
14,760
|
|
Less: net gains on
sale of securities
|
—
|
|
—
|
|
(198)
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
$100,243
|
|
$102,953
|
|
$98,881
|
|
Efficiency ratio
(non-GAAP)
|
52.68 %
|
|
48.21 %
|
|
50.19 %
|
|
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
|
|
|
|
|
|
|
Nine Months Ended
September 30,
|
|
(dollars in
thousands)
|
|
|
2023
|
|
2022
|
|
(5) Return on
Average Tangible Shareholders' Equity (non-GAAP)
|
|
|
|
|
|
|
Net income
(annualized)
|
|
|
$144,040
|
|
$127,350
|
|
Plus: amortization of
intangibles (annualized), net of tax
|
|
|
1,055
|
|
1,217
|
|
Net income before
amortization of intangibles (annualized)
|
|
|
$145,095
|
|
$128,567
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
|
|
$1,220,694
|
|
$1,186,427
|
|
Less: average goodwill
and other intangible assets, net of deferred tax
liability
|
|
|
(377,290)
|
|
(378,454)
|
|
Average tangible
equity (non-GAAP)
|
|
|
$843,404
|
|
$807,973
|
|
Return on average
tangible shareholders' equity (non-GAAP)
|
|
|
17.20 %
|
|
15.91 %
|
|
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
|
|
|
$132,780
|
|
$118,680
|
|
Plus: Provision for
credit losses
|
|
|
16,949
|
|
5,190
|
|
Total
|
|
|
$149,729
|
|
$123,870
|
|
Total (annualized)
(non-GAAP)
|
|
|
$200,186
|
|
$165,614
|
|
Average
assets
|
|
|
$9,209,773
|
|
$9,228,513
|
|
Pre-provision Net
Revenue / Average Assets (non-GAAP)
|
|
|
2.17 %
|
|
1.79 %
|
|
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
|
|
|
$154,135
|
|
$145,471
|
|
|
|
|
|
|
|
|
Net interest income
per consolidated statements of net income
|
|
|
264,301
|
|
226,725
|
|
Plus: taxable
equivalent adjustment
|
|
|
1,868
|
|
1,520
|
|
Net interest income
(FTE) (non-GAAP)
|
|
|
$266,169
|
|
$228,245
|
|
Noninterest
income
|
|
|
39,563
|
|
42,616
|
|
Less: net gains on
sale of securities
|
|
|
—
|
|
(198)
|
|
Net interest income
(FTE) (non-GAAP) plus noninterest income
|
|
|
$305,732
|
|
$270,663
|
|
Efficiency ratio
(non-GAAP)
|
|
|
50.42 %
|
|
53.75 %
|
|
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.
|
|
|
|
|
|
|
|
|
(8) Net Interest
Margin Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest income and
dividend income
|
|
|
$351,195
|
|
$237,543
|
|
Less: interest
expense
|
|
|
(86,894)
|
|
(10,818)
|
|
Net interest income
per consolidated statements of net income
|
|
|
$264,301
|
|
$226,725
|
|
Plus: taxable
equivalent adjustment
|
|
|
1,868
|
|
1,520
|
|
Net interest income
(FTE) (non-GAAP)
|
|
|
$266,169
|
|
$228,245
|
|
Net interest income
(FTE) (annualized)
|
|
|
$355,867
|
|
$305,163
|
|
Average
interest-earning assets
|
|
|
$8,457,447
|
|
$8,521,873
|
|
Net interest margin -
(FTE) (non-GAAP)
|
|
|
4.21 %
|
|
3.58 %
|
|
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
|
|
|
|
Definitions and
Reconciliation of GAAP to Non-GAAP Financial
Measures:
|
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
Third
|
|
Second
|
|
Third
|
|
(dollars in
thousands)
|
Quarter
|
|
Quarter
|
|
Quarter
|
|
(9) Tangible Common
Equity / Tangible Assets (non-GAAP)
|
|
|
|
|
|
|
Total shareholders'
equity
|
$1,223,532
|
|
$1,212,853
|
|
$1,153,181
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,883)
|
|
(377,144)
|
|
(377,961)
|
|
Tangible common equity
(non-GAAP)
|
$846,649
|
|
$835,709
|
|
$775,220
|
|
|
|
|
|
|
|
|
Total
assets
|
$9,466,077
|
|
$9,252,922
|
|
$8,935,969
|
|
Less: goodwill and
other intangible assets, net of deferred tax liability
|
(376,883)
|
|
(377,144)
|
|
(377,961)
|
|
Tangible assets
(non-GAAP)
|
$9,089,194
|
|
$8,875,778
|
|
$8,558,008
|
|
Tangible common equity
to tangible assets (non-GAAP)
|
9.31 %
|
|
9.42 %
|
|
9.06 %
|
|
Tangible common
equity to tangible assets is a preferred industry measurement to
evaluate capital adequacy.
|
|
|
|
|
|
|
|
|
(10) Net Interest
Margin Rate (FTE) (non-GAAP)
|
|
|
|
|
|
|
Interest income and
dividend income
|
$122,959
|
|
$117,333
|
|
$89,835
|
|
Less: interest
expense
|
(35,572)
|
|
(29,210)
|
|
(6,037)
|
|
Net interest income
per consolidated statements of net income
|
$87,387
|
|
$88,123
|
|
$83,798
|
|
Plus: taxable
equivalent adjustment
|
674
|
|
639
|
|
521
|
|
Net interest income
(FTE) (non-GAAP)
|
$88,061
|
|
$88,762
|
|
$84,319
|
|
Net interest income
(FTE) (annualized)
|
$349,373
|
|
$356,022
|
|
$334,526
|
|
Average
interest-earning assets
|
$8,561,578
|
|
$8,436,490
|
|
$8,287,889
|
|
Net interest margin
(FTE) (non-GAAP)
|
4.09 %
|
|
4.22 %
|
|
4.04 %
|
|
|
The interest income
on interest-earning assets, net interest income and net interest
margin are presented on an FTE basis (non-GAAP). The FTE basis
(non-GAAP) adjusts for the tax benefit of income on certain
tax-exempt loans and securities and the dividend-received deduction
for equity securities using the federal statutory tax rate of 21
percent for each period. We believe this to be the preferred
industry measurement of net interest income that provides a
relevant comparison between taxable and non-taxable sources of
interest income.
|
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SOURCE S&T Bancorp, Inc.