S&T BANCORP, INC. 
By INDIANA, Pa., Jan. 23, 2012 /PRNewswire/ -- S&T Bancorp, Inc. (NASDAQ: STBA), a full-service financial institution with office locations in 10 Pennsylvania counties, has announced its full year and fourth quarter earnings for 2011.
(Logo: http://photos.prnewswire.com/prnh/20070917/NEM099LOGO )
Todd D. Brice, president and chief executive officer of S&T Bancorp, Inc., offered the following highlights:
-- Full year 2011 earnings increased 6% to $39.7 million or $1.41 diluted
earnings per common share compared to 2010 earnings of $37.3 million or
$1.34 diluted earnings per common share.
-- Fourth quarter earnings were $9.3 million, with diluted earnings per
common share of $0.33 compared to $0.44 in the third quarter of 2011 and
$0.31 in the fourth quarter of 2010.
-- Redeemed $108.7 million of preferred stock from the U.S. Department of
Treasury's Capital Purchase Program (CPP) without raising additional
capital.
-- Asset quality metrics continue to show improvement with nonperforming
assets to total loans plus other real estate owned (OREO) down to 1.92%
compared to 2.08% in the third quarter of 2011 and 2.07% in the fourth
quarter of 2010.
"In 2011, S&T Bank had success in two areas that will generate plenty of momentum as we move into 2012," said Todd D. Brice, president and chief executive officer. "First, we redeemed all of the preferred stock we issued through the U.S. Treasury's Capital Purchase Program, a move that will boost earnings in 2012 by $0.22 per share. Second, we announced the pending acquisition of Mainline Bancorp, which is expected to close in the first quarter of 2012. This merger will capitalize on the synergies between our two banks and give us a greater presence in key regions that include Blair and Cambria counties."
U.S. Treasury's Capital Purchase Program
During the fourth quarter, S&T redeemed all of the preferred stock it sold to the U.S. Department of the Treasury in January of 2009 as part of the CPP. S&T's strong capital position allowed for the repurchase of the preferred shares without raising additional capital and without any conditions from regulators. S&T used available cash to fund the repurchase of the outstanding preferred stock for $108.7 million and the payment of the final dividend of $0.3 million. As a result of this redemption, a one-time non-cash reduction in net income available to common shareholders of approximately $1.8 million or $0.06 per common diluted share was recognized to accelerate the accretion of the discount for the preferred stock.
Net Interest Income (FTE)
Net interest income and net interest margin on a fully taxable equivalent basis decreased from the prior year primarily due to a shift in asset mix from loans to lower yielding securities. This shift in asset mix is a result of significant loan pay downs during 2011. Net interest income for the full year 2011 was $141.5 million compared to $150.5 million in 2010. The net interest margin declined in 2011 to 3.83% from 4.05% in 2010. Average loans decreased $169.2 million from the prior year, while the yield decreased by 21 basis points to 4.88%. The decrease in loans was offset by an increase in average securities of $153.0 million mainly due to an increase in excess funds held at the Federal Reserve. These excess funds have decreased the yield on securities by 132 basis points to 2.58%.
Net interest income for the fourth quarter of 2011 was $35.2 million compared to $34.9 million in the third quarter of 2011. The net interest margin increased to 3.79% in the fourth quarter of 2011 compared to 3.76% in the third quarter of 2011. The increase in income and rate is due to favorable borrowing and certificate of deposit repricing, combined with higher loan related fees.
Asset Quality
Asset quality metrics continue to show improvement. Nonperforming assets decreased to $60.1 million or 1.92% of total loans plus OREO compared to $65.2 million or 2.08% in the third quarter of 2011 and down from $69.7 million or 2.07% in the fourth quarter of 2010. Included in nonperforming assets were troubled debt restructurings (TDRs) of $18.2 million. These restructured loans are a result of our continued efforts to work directly with our customers through the current challenging economic cycle.
The provision for loan losses decreased in 2011 to $15.6 million from $29.5 million in 2010. Net charge-offs were also down significantly in 2011, to 0.56% of average loans compared to 1.11% in 2010. For the fourth quarter of 2011, the provision for loan losses was $2.3 million compared to $1.5 million for the third quarter of 2011 and $7.7 million in the fourth quarter of 2010. Net charge-offs were $5.0 million for the fourth quarter compared to $8.0 million in the third quarter and $12.6 million in the fourth quarter of 2010. The decrease in provision during 2011 is primarily a result of a general improvement in asset quality.
The allowance for loan losses at December 31, 2011 was $48.8 million or 1.56% of total loans, as compared to $51.5 million or 1.64% at September 30, 2011 and $51.4 million or 1.53% at December 31, 2010. The allowance to nonperforming loans was 87% at both December 31, 2011 and September 30, 2011 and 80% at December 31, 2010. Included in the allowance is $5.5 million of specific reserves compared to $2.9 million in the third quarter of 2011 and $3.6 million in the fourth quarter of 2010.
Noninterest Income
Noninterest income decreased $2.7 million to $44.2 million for the full year 2011 compared to $46.9 for the full year 2010. The decrease from the prior year primarily relates to a $2.2 million decline in mortgage banking and a $1.2 million decline in service charges and fees on deposits. The decrease in mortgage banking is due to lower volume of loan sales in the secondary market. The decrease in service charges and fees relates to a $1.8 million decline in overdraft fees due to regulatory changes that took effect in August 2010. This decrease was partially offset by an increase in new deposit related fees of $0.5 million in 2011.
Noninterest income for the fourth quarter increased to $11.6 million compared to $10.4 million in the third quarter of 2011. The increase of $1.2 million primarily relates to mortgage banking activities. During the third quarter, lower interest rates resulted in a decrease in the value of the mortgage servicing rights asset of $0.8 million, and in the fourth quarter, increased activity resulted in an increase in fees of $0.2 million.
Noninterest Expense
Noninterest expense decreased for the full year 2011 by $1.7 million to $103.9 million compared to $105.6 million in 2010. The decrease was driven by a reduction of $1.9 million in FDIC expense as a result of a change in methodology for the assessment and a $1.1 million decrease in loan collection fees as asset quality improved. During 2010 there were one time costs of $2.3 million for a legal settlement and a $1.1 million write-off of start-up expenses for a mutual fund advised by an affiliate. These decreases were offset by higher salaries and benefits cost of $1.5 million primarily related to annual merit increases.
Noninterest expense for the fourth quarter was $26.7 million compared to $24.2 million for the third quarter of 2011. The increase from the third quarter of 2011 includes higher salaries and benefits of $1.2 million primarily related to higher medical cost in the current quarter and increased incentive plan expense. Also, there was a reduction in the reserve for unfunded loan commitments of $1.2 million in the third quarter compared to a reduction of $0.5 million in the fourth quarter. The $0.5 million reduction in reserves in the fourth quarter is due to a decline in available commitments.
Financial Condition
Total assets have remained relatively unchanged since the fourth quarter of 2010 at $4.1 billion. The decline in loan balances has been offset by commensurate increases in securities, primarily excess cash held at the Federal Reserve. An encouraging sign is the significant slowdown in the decline of loan balances experienced in the fourth quarter of 2011. Gross loans decreased by only $3.5 million in the fourth quarter compared to a decrease of $227.8 million in the first three quarters of 2011. Deposits remained little changed at $3.3 billion since the fourth quarter of 2010, although with some improvement in mix.
S&T's capital ratios declined due to the redemption of the CPP, but remain significantly above the "well capitalized" thresholds of federal bank regulatory agencies with a tier 1 leverage capital ratio of 9.17%, tier 1 risk-based capital ratio of 11.63% and total risk-based capital ratio of 15.20%. S&T's tangible common equity ratio was 8.09% for the fourth quarter of 2011 compared to 8.30% for the third quarter of 2011 and 7.61% for the fourth quarter of 2010. The decline in the fourth quarter of 2011 is due to an increase in the pension liability caused by a lower discount rate.
About S&T Bancorp, Inc.
Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson and Westmoreland counties. With assets of $4.1 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System under the symbol STBA. For more information, visit www.stbancorp.com.
This information may contain forward-looking statements regarding future financial performance which are not historical facts and which involve risks and uncertainties. Actual results and performance could differ materially from those anticipated by these forward-looking statements. Factors that could cause such a difference include, but are not limited to, general economic conditions, change in interest rates, deposit flows, loan demand, asset quality, including real estate and other collateral values and competition. In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors' understanding of S&T's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. A reconciliation of these non-GAAP financial measures is presented in the attached financial data spreadsheet. This information should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K for S&T Bancorp, Inc. and subsidiaries.
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
(in thousands, except
per share data)
For the Twelve Months Ended December 31,
2011 2010
---- ----
Income Statements
-----------------
Interest Income $165,079 $180,419
Interest Expense 27,733 34,573
------ ------
Net Interest Income 137,346 145,846
Taxable Equivalent
Adjustment 4,155 4,627
----- -----
Net Interest Income
(FTE) 141,501 150,473
Provision For Loan
Losses 15,609 29,511
------ ------
Net Interest Income
After Provisions
(FTE) 125,892 120,962
------- -------
Security (Losses)
Gains, Net (124) 274
Service Charges and
Fees 9,978 11,178
Wealth Management 8,180 7,808
Insurance 8,314 8,312
Other 17,709 19,638
------ ------
Total Noninterest
Income 44,181 46,936
Salaries and Employee
Benefits 51,078 48,715
Occupancy and
Equipment Expense,
Net 11,884 11,982
Data Processing
Expense 6,853 6,145
FDIC Expense 3,570 5,426
Other 30,523 33,365
------ ------
Total Noninterest
Expense 103,908 105,633
------- -------
Income Before Taxes 66,041 62,539
Taxable Equivalent
Adjustment 4,155 4,627
Applicable Income
Taxes 14,622 14,432
------ ------
Net Income 47,264 43,480
Preferred Stock
Dividends and
Discount Amortization 7,611 6,201
----- -----
Net Income Available
to Common
Shareholders $39,653 $37,279
======= =======
Per Common Share Data:
Average Shares
Outstanding -Diluted 27,990,150 27,813,406
Net Income - Diluted * $1.41 $1.34
Dividends Declared $0.60 $0.60
* Diluted earnings per
share under the two-
class method is
determined on the net
income reported on
the income statement
less earnings
allocated to
participating
securities.
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
(in thousands, except
per share data)
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Income Statements
-----------------
Interest Income $40,258 $40,845 $44,210
Interest Expense 6,192 6,976 7,876
----- ----- -----
Net Interest Income 34,066 33,869 36,334
Taxable Equivalent
Adjustment 1,101 1,002 1,075
----- ----- -----
Net Interest Income
(FTE) 35,167 34,871 37,409
Provision For Loan
Losses 2,336 1,535 7,676
----- ----- -----
Net Interest Income
After Provisions
(FTE) 32,831 33,336 29,733
------ ------ ------
Security (Losses)
Gains, Net - (81) 11
Service Charges and
Fees 2,622 2,683 2,473
Wealth Management 2,021 1,965 2,047
Insurance 1,809 2,192 1,855
Other 5,122 3,584 5,616
----- ----- -----
Total Noninterest
Income 11,574 10,424 11,991
Salaries and Employee
Benefits 13,446 11,741 12,452
Occupancy and
Equipment Expense,
Net 2,831 2,916 3,104
Data Processing
Expense 1,925 1,743 1,544
FDIC Expense 678 749 1,367
Other 7,792 7,044 8,551
----- ----- -----
Total Noninterest
Expense 26,672 24,193 27,018
------ ------ ------
Income Before Taxes 17,733 19,486 14,717
Taxable Equivalent
Adjustment 1,101 1,002 1,075
Applicable Income
Taxes 4,376 4,681 3,352
----- ----- -----
Net Income 12,256 13,803 10,290
Preferred Stock
Dividends and
Discount Amortization 2,939 1,559 1,553
----- ----- -----
Net Income Available
to Common
Shareholders $9,317 $12,244 $8,737
====== ======= ======
Per Common Share Data:
Shares Outstanding at
End of Period 28,131,249 28,106,451 27,951,689
Average Shares
Outstanding -Diluted 28,068,064 28,025,419 27,883,109
Diluted Earnings Per
Common Share * $0.33 $0.44 $0.31
Dividends Declared $0.15 $0.15 $0.15
Common Book Value $17.44 $17.68 $16.91
Tangible Common Book
Value (1) $11.36 $11.58 $10.73
Market Value $19.55 $16.16 $22.59
* Diluted earnings per
share under the two-
class method is
determined on the net
income reported on
the income statement
less earnings
allocated to
participating
securities.
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
(in thousands)
For the Twelve Months Ended December 31,
----------------------------------------
2011 2010
---- ----
Net Interest Margin
(FTE) (Yearly Averages)
------------------------
Assets
Loans $3,216,857 4.88% $3,386,103 5.09%
Securities/Other 479,731 2.58% 326,757 3.90%
------- -------
Total Interest-earning
Assets 3,696,588 4.58% 3,712,860 4.98%
Noninterest-earning
Assets 376,020 410,595
------- -------
Total Assets $4,072,608 $4,123,455
========== ==========
Liabilities and
Shareholders' Equity
Now/Money Market/
Savings $1,297,360 0.15% $1,267,708 0.26%
Certificates of Deposit 1,181,822 1.77% 1,300,803 1.95%
Borrowed Funds < 1 Year 42,135 0.13% 78,963 0.27%
Borrowed Funds > 1 Year 122,270 3.87% 133,539 4.23%
------- -------
Total Interest-bearing
Liabilities 2,643,587 1.05% 2,781,013 1.24%
Noninterest-bearing
Liabilities
Demand Deposits 792,911 728,708
Shareholders' Equity/
Other 636,110 613,734
------- -------
Total Noninterest-
bearing Liabilities 1,429,021 1,342,442
--------- ---------
Total Liabilities and
Shareholders' Equity $4,072,608 $4,123,455
========== ==========
Net Interest Margin 3.83% 4.05%
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Net Interest Margin
(FTE) (Quarterly
Averages)
-------------------
Assets
Loans $3,126,126 4.83% $3,171,379 4.85% $3,360,786 5.02%
Securities/Other 562,541 2.32% 510,575 2.39% 296,270 3.77%
------- ------- -------
Total Interest-earning
Assets 3,688,667 4.45% 3,681,954 4.51% 3,657,056 4.92%
Noninterest-earning
Assets 381,191 376,077 460,073
------- ------- -------
Total Assets $4,069,858 $4,058,031 $4,117,129
========== ========== ==========
Liabilities and
Shareholders' Equity
Now/Money Market/
Savings $1,338,276 0.14% $1,287,489 0.14% $1,289,946 0.25%
Certificates of Deposit 1,135,517 1.64% 1,159,557 1.81% 1,268,473 1.82%
Borrowed Funds < 1 Year 41,261 0.11% 41,257 0.12% 48,121 0.11%
Borrowed Funds > 1 Year 122,660 3.21% 123,103 3.93% 120,192 4.16%
------- ------- -------
Total Interest-bearing
Liabilities 2,637,714 0.93% 2,611,406 1.06% 2,726,732 1.15%
Noninterest-bearing
Liabilities
Demand Deposits 800,188 799,247 757,857
Shareholders' Equity/
Other 631,956 647,378 632,540
------- ------- -------
Total Noninterest-
bearing Liabilities 1,432,144 1,446,625 1,390,397
--------- --------- ---------
Total Liabilities and
Shareholders' Equity $4,069,858 $4,058,031 $4,117,129
========== ========== ==========
Net Interest Margin 3.79% 3.76% 4.05%
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
(in thousands)
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Balance Sheets (Period-
End)
-----------------------
Assets
Cash $61,723 $58,552 $48,182
Securities 584,615 563,152 370,404
Loans, Net 3,083,768 3,084,609 3,312,540
Other Assets 389,888 385,657 383,213
------- ------- -------
Total Assets $4,119,994 $4,091,970 $4,114,339
========== ========== ==========
Liabilities and
Shareholders' Equity
Noninterest-bearing
Demand Deposits $818,686 $817,518 $765,812
Interest-bearing Deposits 2,517,173 2,453,913 2,551,712
Short-term Borrowings 105,370 42,409 40,653
Long-term Debt 122,493 122,938 119,984
Other Liabilities 65,746 51,518 57,513
Shareholders' Equity 490,526 603,674 578,665
------- ------- -------
Total Liabilities and
Shareholders' Equity $4,119,994 $4,091,970 $4,114,339
========== ========== ==========
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Loans (Period-End)
-----------------
Consumer
Home Equity $411,404 $423,166 $441,096
Residential Mortgage 358,846 350,619 359,536
Installment & Other
Consumer 67,131 68,049 74,780
Construction 2,440 3,111 4,019
----- ----- -----
Total Consumer Loans 839,821 844,945 879,431
------- ------- -------
Commercial
Commercial Real Estate 1,415,333 1,414,398 1,494,202
Commercial & Industrial 685,753 681,866 722,359
Construction 188,852 190,974 259,598
------- ------- -------
Total Commercial Loans 2,289,938 2,287,238 2,476,159
--------- --------- ---------
Total Portfolio Loans 3,129,759 3,132,183 3,355,590
Loans Held for Sale 2,850 3,959 8,337
----- ----- -----
Total Loans $3,132,609 $3,136,142 $3,363,927
========== ========== ==========
Nonperforming Loans (NPL)
------------------------
Consumer % NPL % NPL % NPL
----- ----- -----
Home Equity $2,936 0.71% $3,095 0.73% $1,432 0.32%
Residential Mortgage 7,228 2.01% 6,719 1.92% 5,996 1.67%
Installment & Other
Consumer 4 0.01% 15 0.02% 65 0.09%
Construction 181 7.42% 181 5.82% 526 13.09%
--- --- ---
Total Consumer Loans 10,349 1.23% 10,010 1.18% 8,019 0.91%
------ ------ -----
Commercial
Commercial Real Estate 31,648 2.24% 34,524 2.44% 44,310 2.97%
Commercial & Industrial 7,571 1.10% 6,002 0.88% 3,567 0.49%
Construction 6,547 3.47% 8,703 4.56% 7,987 3.08%
----- ----- -----
Total Commercial Loans 45,766 2.00% 49,229 2.15% 55,864 2.26%
------ ------ ------
Total Nonperforming Loans $56,115 1.79% $59,239 1.89% $63,883 1.90%
======= ======= =======
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and Commercial Real Estate (CRE)
--------------------------------------------
PA vs. Out-of-State
-------------------
Pennsylvania $1,301,211 $1,295,367 $1,390,635
Out-of-State 302,974 310,005 363,165
------- ------- -------
Total Construction and CRE PA vs. Out-of-State $1,604,185 $1,605,372 $1,753,800
========== ========== ==========
Construction and CRE - NPL PA vs. Out-of-State % NPL % NPL % NPL
---------------------------------------------- ----- ----- -----
Pennsylvania $33,665 2.59% $38,864 3.00% $43,515 3.13%
Out-of-State 4,530 1.50% 4,363 1.41% 8,782 2.42%
----- ----- -----
Total Construction and CRE - NPL PA vs. Out-of-State $38,195 2.38% $43,227 2.69% $52,297 2.98%
======= ======= =======
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and CRE by Type
----------------------------
Retail/Strip Malls $288,453 $286,424 $304,324
Offices 218,619 216,815 232,655
Residential Rental Properties 198,011 198,422 242,756
Hotels 193,833 186,342 192,954
Healthcare/Education 105,642 107,871 95,029
Real Estate Development - Commercial 102,623 98,196 90,136
Flex/Mixed Use 97,766 95,578 118,610
Manufacturing/Industrial/Warehouse 95,883 99,382 118,791
Real Estate Development - Residential 60,808 73,145 88,487
Recreational 43,152 43,770 44,514
Restaurant 29,921 35,259 41,398
Convenience Stores 29,489 28,250 24,637
Miscellaneous 139,985 135,918 159,509
------- ------- -------
Total Construction and CRE by Type $1,604,185 $1,605,372 $1,753,800
========== ========== ==========
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and CRE - NPL by Type % NPL % NPL % NPL
---------------------------------- ----- ----- -----
Retail/Strip Malls $5,285 1.83% $2,371 0.83% $3,176 1.04%
Offices 3,973 1.82% 5,124 2.36% 2,720 1.17%
Residential Rental Properties 2,851 1.44% 3,381 1.70% 11,087 4.57%
Hotels 700 0.36% 1,100 0.59% 1,465 0.76%
Healthcare/Education 311 0.29% - 0.00% 1,509 1.59%
Real Estate Development - Commercial 771 0.75% 1,660 1.69% 5,525 6.13%
Flex/Mixed Use - 0.00% - 0.00% 2,740 2.31%
Manufacturing/Industrial/Warehouse 4,638 4.84% 5,183 5.22% 1,944 1.64%
Real Estate Development - Residential 6,284 10.33% 8,352 11.42% 6,693 7.56%
Recreational 9,365 21.70% 9,463 21.62% 9,344 20.99%
Restaurant 940 3.14% 4,153 11.78% 5,759 13.91%
Convenience Stores - 0.00% - 0.00% - 0.00%
Miscellaneous 3,077 2.20% 2,440 1.80% 335 0.21%
----- ----- ---
Total Construction and CRE - NPL by Type $38,195 2.38% $43,227 2.69% $52,297 2.98%
======= ======= =======
S&T Bancorp,
Inc.
Consolidated
Selected
Financial
Data
Unaudited
(in
thousands)
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Commercial
Credit
Exposure
----------
Pass
Commercial
Real Estate $1,229,005 $1,201,955 $1,297,242
Commercial &
Industrial 600,895 601,552 619,011
Construction 136,270 148,084 221,492
------- ------- -------
Total Pass $1,966,170 $1,951,591 $2,137,745
========== ========== ==========
Special
Mention
Commercial
Real Estate $84,400 $89,164 $86,653
Commercial &
Industrial 33,135 19,450 76,158
Construction 17,106 10,432 16,308
------ ------ ------
Total Special
Mention $134,641 $119,046 $179,119
======== ======== ========
Substandard
Commercial
Real Estate $101,928 $123,279 $110,307
Commercial &
Industrial 51,723 60,864 27,190
Construction 35,476 32,458 21,798
------ ------ ------
Total
Substandard $189,127 $216,601 $159,295
======== ======== ========
S&T Bancorp, Inc.
Consolidated Selected
Financial Data
Unaudited
(in thousands)
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming Loans $56,115 $59,239 $63,883
Assets Acquired
through Foreclosure
or Repossession 3,967 5,992 5,820
Nonperforming Assets 60,082 65,231 69,703
Troubled Debt
Restructurings
(Nonaccrual) 18,184 22,124 32,779
Allowance for Loan
Losses 48,841 51,533 51,387
Nonperforming Loans /
Loans 1.79% 1.89% 1.90%
Nonperforming Assets /
Loans plus OREO 1.92% 2.08% 2.07%
Allowance for Loan
Losses /Loans 1.56% 1.64% 1.53%
Allowance for Loan
Losses /
Nonperforming Loans 87% 87% 80%
Net Loan Charge-offs
(Recoveries) 5,028 8,006 12,570
Net Loan Charge-offs
(Recoveries)
(Annualized) /
Average Loans 0.64% 1.00% 1.48%
Profitability Ratios
(Annualized)
--------------------
Common Return on
Average Assets 0.91% 1.20% 0.84%
Common Return on
Average Tangible
Assets (2) 0.95% 1.25% 0.88%
Common Return on
Average Equity 6.41% 8.12% 6.00%
Common Return on
Average Tangible
Common Equity (3) 11.29% 15.20% 11.59%
Efficiency Ratio (FTE)
(4) 57.06% 53.41% 54.69%
Capitalization Ratios
---------------------
Dividends Paid to Net
Income 45.25% 34.40% 47.82%
Common Equity / Assets 11.91% 12.14% 11.48%
Tier 1 Leverage Ratio 9.17% 11.80% 11.07%
Risk-Based Capital -
Tier 1 11.63% 14.95% 13.28%
Risk-Based Capital -
Total 15.20% 18.51% 16.68%
Tangible Common Equity
/Tangible Assets (5) 8.09% 8.30% 7.61%
For the Twelve Months Ended
December 31,
----------------------------
2011 2010
---- ----
Asset Quality Data
------------------
Net Loan Charge-offs
(Recoveries) 18,155 37,704
Net Loan Charge-offs
(Recoveries) /
Average Loans 0.56% 1.11%
Profitability Ratios
(Annualized)
--------------------
Common Return on
Average Assets 0.97% 0.90%
Common Return on
Average Tangible
Common Assets (6) 1.02% 0.94%
Common Return on
Average Shareholders'
Equity 6.78% 6.58%
Common Return on
Average Tangible
Common Equity (7) 12.62% 12.98%
Efficiency Ratio (FTE)
(4) 55.96% 53.51%
Capitalization Ratios
---------------------
Dividends Paid to Net
Income 42.44% 44.75%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2011 2011 2010
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Definitions and Reconciliation of GAAP to
--------------------------------------
Non-GAAP Financial Measures:
----------------------------
(1) Tangible Common Book Value
Common Book Value (GAAP
Basis) $17.44 $17.68 $16.91
Effect of Excluding
Intangible Assets (6.08) (6.10) (6.18)
----- ----- -----
Tangible Common Book
Value $11.36 $11.58 $10.73
(2) Common Return on Average Tangible Assets
Common Return on
Average Assets (GAAP
Basis) 0.91% 1.20% 0.84%
Effect of Excluding
Intangible Assets 0.04% 0.05% 0.04%
---- ---- ----
Common Return on
Average Tangible
Assets 0.95% 1.25% 0.88%
(3) Common Return on Average Tangible Common
Equity
Common Return on
Average Common Equity
(GAAP Basis) 6.41% 8.12% 6.00%
Effect of Excluding
Intangible Assets 2.17% 3.80% 3.03%
Effect of Excluding
Preferred Stock 2.71% 3.28% 2.56%
---- ---- ----
Common Return on
Average Tangible
Common Equity 11.29% 15.20% 11.59%
(4) Recurring noninterest expense divided by recurring noninterest income plus net interest income, on a fully
taxable equivalent basis.
(5) Tangible Common Equity / Tangible Assets
Common Equity /Assets
(GAAP Basis) 11.91% 12.14% 11.48%
Effect of Excluding
Intangible Assets -3.82% -3.84% -3.87%
----- ----- -----
Tangible Common Equity
/Tangible Assets 8.09% 8.30% 7.61%
For the Twelve Months Ended
December 31,
----------------------------
2011 2010
---- ----
(6) Common Return on Average Tangible Common
Assets
Common Return on Average Assets (GAAP Basis) 0.97% 0.90%
Effect of Excluding Intangible Assets 0.05% 0.04%
---- ----
Common Return on Average Tangible Common Assets 1.02% 0.94%
(7) Common Return on Average Tangible Common
Equity
Common Return on Average Shareholders' Equity
(GAAP Basis) 6.78% 6.58%
Effect of Excluding Intangible Assets 3.03% 3.49%
Effect of Excluding Preferred Stock 2.81% 2.91%
---- ----
Common Return on Average Tangible Common Equity 12.62% 12.98%
SOURCE S&T Bancorp, Inc.
