S&T BANCORP, INC. INDIANA, Pa., Jan. 26, 2017 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its fourth quarter and full year 2016 earnings. Fourth quarter earnings were $17.7 million, or $0.51 per diluted share, compared to third quarter of 2016 earnings of $20.6 million, or $0.59 per diluted share, and fourth quarter of 2015 earnings of $17.4 million, or $0.50 per diluted share. For the year ended December 31, 2016, net income was a record $71.4 million, an increase of 6.4% over net income of $67.1 million for 2015. Diluted earnings per share was $2.05, an increase of 3.5% from $1.98 in 2015.
Fourth Quarter of 2016 Highlights:
-- Portfolio loans increased $193 million from September 30, 2016,
representing a 14.2% annualized rate.
-- Total deposits increased $127 million from September 30, 2016,
representing a 9.8% annualized rate.
-- Return on average assets was 1.04% and return on average equity was
8.36%.
-- Net interest margin (FTE) (Non-GAAP) was stable at 3.45% compared to
3.46% for the prior quarter.
-- S&T declared a $0.20 per share dividend, a 5.3% increase compared to
$0.19 in the same period a year ago.
Full Year 2016 Highlights:
-- Net income increased 6.4% to a record $71.4 million compared to $67.1
million for 2015.
-- Strong organic portfolio loan growth of $584 million, or 11.6%.
-- Total deposits grew $396 million, or 8.1%.
-- Return on average assets was 1.08% and return on average equity was
8.67%.
"We are pleased to announce record net income for 2016," said Todd Brice, president and chief executive officer of S&T. "The investments that we have made in our markets over the past few years have made a big impact on our overall financial performance. Our assets grew organically almost 10% during 2016 which is a true testament to our team members and our ability to successfully execute our growth strategy. As we move into 2017, we believe that we are well positioned for continued growth."
Fourth Quarter of 2016 Results
Net Interest Income
Net interest income increased $1.0 million, or 1.9%, to $52.5 million compared to $51.5 million in the third quarter of 2016. Net interest income was positively impacted by an increase in average loans of $131 million, or 2.4%, compared to the prior quarter. Net interest margin on a fully taxable equivalent basis (FTE) (Non-GAAP) was stable at 3.45% compared to 3.46% in the prior quarter. Loan yields and deposit costs were both relatively unchanged quarter over quarter, allowing organic growth to drive net interest income higher.
Asset Quality
Total nonperforming loans were $42.6 million, or 0.76% of total loans at December 31, 2016 compared to $40.5 million, or 0.75% of total loans at September 30, 2016. Net charge-offs for the fourth quarter of 2016 were $6.6 million compared to net charge-offs of $0.9 million in the third quarter of 2016. Included in net charge-offs for the fourth quarter of 2016 was a $1.5 million specific reserve that was previously recorded in the first quarter of 2016. The provision for loan losses was $5.6 million compared to $2.5 million in the third quarter of 2016. The higher provision was a result of higher loan charge-offs and loan growth compared to the prior quarter. The allowance for loan losses was $52.8 million, or 0.94% of total portfolio loans at December 31, 2016, compared to $53.8 million, or 0.99% of total portfolio loans, at September 30, 2016.
Noninterest Income and Expense
Noninterest income decreased $0.5 million to $12.9 million compared to $13.4 million in the third quarter of 2016. The decrease in noninterest income was primarily due to a $0.4 million decline in mortgage banking due to the increase in rates that occurred during the fourth quarter. Noninterest expense increased $1.2 million to $35.6 million from $34.4 million in the third quarter of 2016. Salaries and employee benefit expense increased $0.8 million due to higher incentives and medical costs compared to the third quarter of 2016. Other expense increased $0.8 million primarily due to significant loan related expense recoveries that occurred in the third quarter of 2016. The efficiency ratio improved to 54.06% compared to 55.86% in the prior year.
Financial Condition
Total assets increased $225 million to $6.9 billion at December 31, 2016 compared to $6.7 billion at September 30, 2016. Commercial loans increased $182 million, or 17.4% annualized, with growth in all commercial categories. Total consumer loans increased $11.4 million, or 3.6% annualized, with growth primarily in residential mortgage. Total deposits increased $127 million, or 9.8% annualized, with growth primarily in money market accounts. S&T's risk-based capital ratios were relatively unchanged compared with the third quarter of 2016. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
Full Year 2016 Results
S&T's growth strategy continued successfully in 2016 with organic loan growth of $584 million, or 11.6%. Commercial loans grew $519 million, or 13.5%, and consumer loans grew $65 million, or 5.5%, during 2016. Loan growth was very strong in our newer markets of Ohio, New York and south-central Pennsylvania contributing $440 million of total loan growth during 2016.
Full year 2016 earnings increased $4.3 million, or 6.4%, to a record $71.4 million compared to $67.1 million and diluted earnings per share increased $0.07, or 3.5%, to $2.05 per diluted share compared to $1.98 per diluted share for 2015. Net interest income increased by $15.7 million, or 8.4%, in 2016 due to the excellent organic loan growth. The provision for loan losses increased $7.6 million to $18.0 million in 2016 compared to $10.4 million in 2015 primarily due to higher loan charge-offs and loan growth. Net loan charge-offs increased $3.2 million to $13.3 million in 2016 from $10.2 million in 2015. To view an infographic featuring 2016 highlights, click here.
Dividend
The Board of Directors of S&T declared a $0.20 per share cash dividend at its regular meeting held January 23, 2017. This is an increase of 5.3% compared to a common stock dividend of $0.19 per share declared in the same period in the prior year. The dividend is payable February 23, 2017 to shareholders of record on February 9, 2017. Dividends declared in 2016 increased $0.04, or 5.5%, to $0.77 compared to $0.73 for 2015.
Conference Call
S&T will host its fourth quarter 2016 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 26, 2017. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2016 Conference Call" and follow the instructions.
About S&T Bancorp, Inc.
S&T Bancorp, Inc. is a $6.9 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com, www.stbank.com, or call 800.325.2265.
This information contains certain 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, cyber-security concerns; rapid technological developments and changes; 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; 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 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; general economic or business conditions; 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; 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 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
2016 2016 2015
---- ----
Fourth Third Fourth
(dollars in thousands, except per share data) Quarter Quarter Quarter
------- ------- -------
INTEREST INCOME
Loans, including fees $55,168 $53,956 $49,574
Investment securities:
Taxable 2,636 2,570 2,493
Tax-exempt 894 907 948
Dividends 398 375 338
---
Total Interest Income 59,096 57,808 53,353
------ ------ ------
INTEREST EXPENSE
Deposits 5,289 5,119 3,611
Borrowings and junior subordinated debt securities 1,349 1,234 857
Total Interest Expense 6,638 6,353 4,468
----- ----- -----
NET INTEREST INCOME 52,458 51,455 48,885
Provision for loan losses 5,586 2,516 3,915
Net Interest Income After Provision for Loan Losses 46,872 48,939 44,970
------ ------ ------
NONINTEREST INCOME
Securities (losses) gains, net - - -
Service charges on deposit accounts 3,240 3,208 3,113
Debit and credit card fees 3,125 3,163 3,381
Wealth management fees 2,509 2,565 2,777
Insurance fees 1,066 1,208 1,126
Mortgage banking 694 1,077 549
Other 2,288 2,227 2,138
Total Noninterest Income 12,922 13,448 13,084
------ ------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 19,787 19,011 17,228
Net occupancy 2,644 2,776 2,639
Data processing 2,083 2,129 2,348
Furniture and equipment 1,710 1,932 1,632
Professional services and legal 1,177 1,041 1,095
FDIC insurance 1,046 1,005 923
Other taxes 974 1,080 895
Marketing 840 896 1,319
Other 5,364 4,569 5,738
Total Noninterest Expense 35,625 34,439 33,817
------ ------ ------
Income Before Taxes 24,169 27,948 24,237
Provision for income taxes 6,510 7,367 6,814
----- ----- -----
Net Income $17,659 $20,581 $17,423
======= ======= =======
Per Share Data:
Shares outstanding at end of period 34,913,023 34,913,023 34,810,374
Average shares outstanding - diluted 34,839,189 34,768,505 34,715,899
Average shares outstanding - two-class method 34,801,271 34,802,233 34,810,813
Diluted earnings per share (1) $0.51 $0.59 $0.50
Dividends declared per share $0.20 $0.19 $0.19
Dividend yield (annualized) 2.05% 2.62% 2.47%
Dividends paid to net income 39.41% 32.13% 37.89%
Book value $24.12 $24.02 $22.76
Tangible book value (3) $15.67 $15.57 $14.26
Market value $39.04 $28.99 $30.82
Profitability Ratios (annualized)
--------------------------------
Return on average assets 1.04% 1.23% 1.10%
Return on average tangible assets (4) 1.10% 1.31% 1.18%
Return on average shareholders' equity 8.36% 9.85% 8.74%
Return on average tangible shareholders' equity (5) 13.05% 15.46% 14.21%
Efficiency ratio (FTE) (2) 53.04% 51.65% 53.17%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
For the Twelve Months Ended December 31,
(dollars in thousands, except per share data) 2016 2015
---- ----
INTEREST INCOME
Loans, including fees $212,301 $188,012
Investment securities:
Taxable 10,340 9,792
Tax-exempt 3,658 3,954
Dividends 1,475 1,790
Total Interest Income 227,774 203,548
------- -------
INTEREST EXPENSE
Deposits 19,692 12,944
Borrowings and junior subordinated debt securities 4,823 3,053
Total Interest Expense 24,515 15,997
------ ------
NET INTEREST INCOME 203,259 187,551
Provision for loan losses 17,965 10,388
Net Interest Income After Provision for Loan Losses 185,294 177,163
------- -------
NONINTEREST INCOME
Securities (losses) gains, net - (34)
Service charges on deposit accounts 12,512 11,642
Debit and credit card fees 11,943 12,113
Wealth management fees 10,456 11,444
Insurance fees 5,253 5,500
Mortgage banking 2,879 2,554
Gain on sale of credit card portfolio 2,066 -
Other 9,526 7,814
Total Noninterest Income 54,635 51,033
------ ------
NONINTEREST EXPENSE
Salaries and employee benefits 77,325 68,252
Net occupancy 11,057 10,652
Data processing 9,047 9,677
Furniture and equipment 7,290 6,093
Professional services and legal 4,212 3,365
FDIC insurance 3,984 3,416
Other taxes 4,050 3,616
Marketing 3,713 4,224
Merger related expenses - 3,167
Other 22,554 24,255
Total Noninterest Expense 143,232 136,717
------- -------
Income Before Taxes 96,697 91,479
Provision for income taxes 25,305 24,398
------ ------
Net Income $71,392 $67,081
======= =======
Per Share Data:
Average shares outstanding - diluted 34,773,170 33,848,082
Average shares outstanding - two-class method 34,787,492 33,954,548
Diluted earnings per share (1) $2.05 $1.98
Dividends declared per share $0.77 $0.73
Dividends paid to net income 37.52% 36.47%
Profitability Ratios
--------------------
Return on average assets 1.08% 1.13%
Return on average tangible assets (8) 1.15% 1.20%
Return on average shareholders' equity 8.67% 8.94%
Return on average tangible shareholders' equity (9) 13.71% 14.39%
Efficiency ratio (FTE) (2) 54.06% 55.86%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2016 2016 2015
Fourth Third Fourth
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
ASSETS
Cash and due from banks,
including interest-
bearing deposits $139,486 $125,163 $99,399
Securities available-
for-sale, at fair value 693,487 671,128 660,963
Loans held for sale 3,793 11,694 35,321
Commercial loans:
Commercial real estate 2,498,476 2,427,164 2,166,603
Commercial and industrial 1,401,035 1,344,297 1,256,830
Commercial construction 455,884 402,124 413,444
Total Commercial Loans 4,355,395 4,173,585 3,836,877
Consumer loans:
Residential mortgage 701,982 692,574 639,372
Home equity 482,284 483,935 470,845
Installment and other
consumer 65,852 62,288 73,939
Consumer construction 5,906 5,852 6,579
Total Consumer Loans 1,256,024 1,244,649 1,190,735
Total portfolio loans 5,611,419 5,418,234 5,027,612
Allowance for loan losses (52,775) (53,793) (48,147)
Total portfolio loans,
net 5,558,644 5,364,441 4,979,465
Goodwill 291,670 291,670 291,764
Other assets 255,973 254,109 251,442
Total Assets $6,943,053 $6,718,205 $6,318,354
========== ========== ==========
LIABILITIES
Deposits:
Noninterest-bearing
demand $1,263,833 $1,232,469 $1,227,766
Interest-bearing demand 638,300 657,326 616,188
Money market 936,461 764,125 605,184
Savings 1,050,131 1,026,234 1,061,265
Certificates of deposit 1,383,652 1,465,277 1,366,208
Total Deposits 5,272,377 5,145,431 4,876,611
Securities sold under
repurchase agreements 50,832 40,949 62,086
Short-term borrowings 660,000 565,000 356,000
Long-term borrowings 14,713 15,303 117,043
Junior subordinated debt
securities 45,619 45,619 45,619
Other liabilities 57,556 67,196 68,758
------
Total Liabilities 6,101,097 5,879,498 5,526,117
SHAREHOLDERS' EQUITY
Total Shareholders'
Equity 841,956 838,707 792,237
------- ------- -------
Total Liabilities and
Shareholders' Equity $6,943,053 $6,718,205 $6,318,354
========== ========== ==========
Capitalization Ratios
---------------------
Shareholders' equity /
assets 12.13% 12.48% 12.54%
Tangible common equity /
tangible assets (6) 8.23% 8.46% 8.24%
Tier 1 leverage ratio 8.98% 9.02% 8.96%
Common equity tier 1
capital 10.04% 10.01% 9.77%
Risk-based capital -
tier 1 10.39% 10.37% 10.15%
Risk-based capital -
total 11.86% 11.87% 11.60%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2016 2016 2015
Fourth Third Fourth
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Net Interest Margin (FTE) (QTD Averages)
---------------------------------------
ASSETS
Loans $5,513,074 4.07% $5,382,516 4.08% $5,000,736 4.02%
Taxable investment securities 549,092 1.99% 545,249 1.95% 522,679 1.98%
Tax-exempt investment securities 130,596 4.21% 133,661 4.17% 135,803 4.30%
Federal Home Loan Bank and other restricted stock 26,149 4.56% 24,454 4.52% 20,848 4.59%
Interest-bearing deposits with banks 43,023 0.45% 37,852 0.52% 57,317 0.30%
Total Interest-earning Assets 6,261,934 3.87% 6,123,732 3.87% 5,737,383 3.80%
Noninterest-earning assets 524,653 519,011 539,482
Total Assets $6,786,587 $6,642,743 $6,276,865
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand 647,345 0.17% 663,477 0.17% 610,553 0.13%
Money market 594,812 0.45% 540,891 0.42% 376,752 0.20%
Savings 1,033,297 0.20% 1,034,018 0.20% 1,073,111 0.16%
Certificates of deposit 1,369,546 0.94% 1,379,952 0.95% 1,146,674 0.80%
CDARS and brokered deposits 374,512 0.62% 309,413 0.56% 499,569 0.37%
Securities sold under repurchase agreements 42,570 0.01% 44,927 0.01% 49,493 0.01%
Short-term borrowings 500,890 0.68% 459,043 0.66% 291,793 0.41%
Long-term borrowings 14,957 2.85% 15,545 2.85% 117,275 0.77%
Junior subordinated debt securities 45,619 3.33% 45,619 3.15% 45,619 2.82%
Total Interest-bearing Liabilities 4,623,548 0.57% 4,492,885 0.56% 4,210,839 0.42%
Noninterest-bearing demand 1,248,141 1,247,884 1,205,009
Other liabilities 74,274 70,799 69,834
Shareholders' equity 840,624 831,175 791,183
Total Liabilities and Shareholders' Equity $6,786,587 $6,642,743 $6,276,865
========== ========== ==========
Net Interest Margin (7) 3.45% 3.46% 3.50%
For the Twelve Months Ended December 31,
(dollars in thousands) 2016 2015
Net Interest Margin (FTE) (YTD Averages)
---------------------------------------
ASSETS
Loans $5,324,834 4.08% $4,692,433 4.09%
Taxable investment securities 543,348 1.97% 516,335 1.97%
Tax-exempt investment securities 133,348 4.22% 138,321 4.40%
Federal Home Loan Bank and other restricted stock 23,811 4.53% 19,672 7.12%
Interest-bearing deposits with banks 41,810 0.50% 66,101 0.25%
Total Interest-earning Assets 6,067,151 3.87% 5,432,862 3.86%
Noninterest-earning assets 521,104 509,236
Total Assets $6,588,255 $5,942,098
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand 638,461 0.16% 592,301 0.13%
Money market 506,440 0.38% 388,172 0.19%
Savings 1,039,664 0.19% 1,072,683 0.16%
Certificates of deposit 1,351,413 0.94% 1,093,564 0.77%
CDARS and brokered deposits 362,576 0.56% 376,095 0.35%
Securities sold under repurchase agreements 51,021 0.01% 44,394 0.01%
Short-term borrowings 414,426 0.65% 257,117 0.36%
Long-term borrowings 50,256 1.33% 83,648 0.94%
Junior subordinated debt securities 45,619 3.14% 47,071 2.82%
Total Interest-bearing Liabilities 4,459,876 0.55% 3,955,045 0.40%
Noninterest-bearing demand 1,232,633 1,170,011
Other liabilities 72,139 66,973
Shareholders' equity 823,607 750,069
Total Liabilities and Shareholders' Equity $6,588,255 $5,942,098
========== ==========
Net Interest Margin (10) 3.47% 3.56%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2016 2016 2015
---- ---- ----
Fourth Third Fourth
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Nonperforming Loans (NPL)
------------------------
Commercial loans: % NPL % NPL % NPL
----- ----- -----
Commercial real estate $16,172 0.65% $7,551 0.31% $8,719 0.40%
Commercial and industrial 8,071 0.58% 11,890 0.88% 9,279 0.74%
Commercial construction 4,927 1.08% 6,653 1.65% 8,753 2.12%
----- ----- -----
Total Nonperforming Commercial Loans 29,170 0.67% 26,094 0.63% 26,751 0.70%
Consumer loans:
Residential mortgage 9,918 1.41% 11,400 1.63% 5,629 0.88%
Home equity 3,439 0.71% 2,955 0.61% 2,902 0.62%
Installment and other consumer 108 0.16% 44 0.07% 100 0.14%
Consumer construction - -% - -% - -%
--- --- ---
Total Nonperforming Consumer Loans 13,465 1.07% 14,399 1.16% 8,631 0.72%
------ ------ -----
Total Nonperforming Loans $42,635 0.76% $40,493 0.75% $35,382 0.71%
======= ======= =======
2016 2016 2015
---- ---- ----
Fourth Third Fourth
(dollars in thousands) Quarter Quarter Quarter
------- ------- -------
Loan Charge-offs
----------------
Charge-offs $6,938 $1,500 $6,419
Recoveries (333) (564) (744)
---- ---- ----
Net Loan Charge-offs $6,605 $936 $5,675
====== ==== ======
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate $1,276 ($171) ($436)
Commercial and industrial 3,433 245 2,518
Commercial construction 768 146 2,063
--- --- -----
Total Commercial Loan Charge-offs 5,477 220 4,145
Consumer loans:
Residential mortgage 722 331 407
Home equity 26 (1) 728
Installment and other consumer 453 391 406
Consumer construction (73) (5) (11)
--- --- ---
Total Consumer Loan Charge-offs 1,128 716 1,530
----- --- -----
Total Net Loan Charge-offs $6,605 $936 $5,675
====== ==== ======
For the Twelve Months Ended December 31,
----------------------------------------
(dollars in thousands) 2016 2015
---- ----
Loan Charge-offs
----------------
Charge-offs $15,561 $15,266
Recoveries (2,223) (5,114)
------ ------
Net Loan Charge-offs $13,338 $10,152
======= =======
Net Loan Charge-offs
--------------------
Commercial loans:
Commercial real estate $2,422 ($758)
Commercial and industrial 6,088 4,858
Commercial construction 1,856 3,178
----- -----
Total Commercial Loan Charge-offs 10,366 7,278
Consumer loans:
Residential mortgage 1,230 866
Home equity 183 947
Installment and other consumer 1,748 1,202
Consumer construction (189) (141)
---- ----
Total Consumer Loan Charge-offs 2,972 2,874
----- -----
Total Net Loan Charge-offs $13,338 $10,152
======= =======
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2016 2016 2015
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming loans $42,635 $40,493 $35,382
Assets acquired through foreclosure or repossession 679 512 354
Nonperforming assets 43,314 41,005 35,736
Troubled debt restructurings (nonaccruing) 11,598 15,095 7,659
Troubled debt restructurings (accruing) 13,423 12,936 23,955
Total troubled debt restructurings 25,021 28,031 31,614
Nonperforming loans / loans 0.76% 0.75% 0.70%
Nonperforming assets / loans plus OREO 0.77% 0.76% 0.71%
Allowance for loan losses / total portfolio loans 0.94% 0.99% 0.96%
Allowance for loan losses / nonperforming loans 124% 133% 136%
Net loan charge-offs (recoveries) $6,605 $936 $5,675
Net loan charge-offs (recoveries)(annualized) / average loans 0.48% 0.07% 0.45%
For the Twelve Months Ended December 31,
----------------------------------------
(dollars in thousands) 2016 2015
---- ----
Asset Quality Data
------------------
Net loan charge-offs (recoveries) $13,338 $10,152
Net loan charge-offs (recoveries) / average loans 0.25% 0.22%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
(1) 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.
(2) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.
2016 2016 2015
---- ---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
(3) Tangible Book Value (non-GAAP)
Total shareholders' equity $841,956 $838,707 $792,237
Less: goodwill and other intangible assets, (294,862) (295,104) (296,005)
net of deferred tax liability
Tangible common equity (non-GAAP) $547,094 $543,603 $496,232
Common shares outstanding 34,913 34,913 34,810
Tangible book value (non-GAAP) $15.67 $15.57 $14.26
(4) Return on Average Tangible Assets (non-GAAP)
Net income (annualized) $70,254 $81,877 $69,123
Plus: amortization of intangibles net of tax (annualized) 962 969 1,224
--- --- -----
Net income before amortization of intangibles (annualized) $71,216 $82,846 $70,347
Average total assets $6,786,587 $6,642,743 $6,276,865
Less: average goodwill and other intangibles, (294,994) (295,235) (296,088)
net of deferred tax liability
Average tangible assets (non-GAAP) $6,491,593 $6,347,508 $5,980,777
Return on average tangible assets (non-GAAP) 1.10% 1.31% 1.18%
(5) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized) $70,254 $81,877 $69,123
Plus: amortization of intangibles net of tax (annualized) 962 969 1,224
--- --- -----
Net income before amortization of intangibles (annualized) $71,216 $82,846 $70,347
Average total shareholders' equity $840,624 $831,175 $791,183
Less: average goodwill and other intangibles, (294,994) (295,235) (296,088)
net of deferred tax liability
Average tangible equity (non-GAAP) $545,630 $535,940 $495,095
Return on average tangible equity (non-GAAP) 13.05% 15.46% 14.21%
(6) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity $841,956 $838,707 $792,237
Less: goodwill and other intangible assets, (294,862) (295,104) (296,005)
net of deferred tax liability
Tangible common equity (non-GAAP) $547,094 $543,603 $496,232
Total assets $6,943,053 $6,718,205 $6,318,354
Less: goodwill and other intangible assets, (294,862) (295,104) (296,005)
net of deferred tax liability
Tangible assets (non-GAAP) $6,648,191 $6,423,101 $6,022,349
Tangible common equity to tangible assets (non-GAAP) 8.23% 8.46% 8.24%
(7) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $59,096 $57,808 $53,353
Less: interest expense (6,638) (6,353) (4,468)
------ ------ ------
Net interest income per consolidated statements of net income $52,458 $51,455 $48,885
Plus: taxable equivalent adjustment 1,789 1,771 1,630
----- ----- -----
Net interest income (FTE) (non-GAAP) $54,247 $53,226 $50,515
Net interest income (FTE) (annualized) $215,809 $211,747 $200,413
Average earning assets $6,261,934 $6,123,731 $5,737,383
Net interest margin - (FTE) (non-GAAP) 3.45% 3.46% 3.50%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
For the Twelve Months Ended December 31,
----------------------------------------
2016 2015
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(8) Return on Average Tangible Assets (non-GAAP)
Net income $71,392 $67,081
Plus: amortization of intangibles net of tax 1,050 1,182
----- -----
Net income before amortization of intangibles $72,442 $68,263
Average total assets $6,588,255 $5,942,098
Less: average goodwill and other intangibles, (295,385) (275,847)
net of deferred tax liability
Average tangible assets (non-GAAP) $6,292,870 $5,666,251
Return on average tangible assets (non-GAAP) 1.15% 1.20%
(9) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income $71,392 $67,081
Plus: amortization of intangibles net of tax 1,050 1,182
----- -----
Net income before amortization of intangibles $72,442 $68,263
Average total shareholders' equity $823,607 $750,069
Less: average goodwill and other intangibles, (295,385) (275,847)
net of deferred tax liability
Average tangible equity (non-GAAP) $528,222 $474,222
Return on average tangible equity (non-GAAP) 13.71% 14.39%
(10) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income $227,774 $203,548
Less: interest expense (24,515) (15,997)
------- -------
Net interest income per consolidated statements of net income $203,259 $187,551
Plus: taxable equivalent adjustment 7,043 6,123
----- -----
Net interest income (FTE) (non-GAAP) $210,302 $193,674
Average earning assets $6,067,151 $5,432,862
Net interest margin - (FTE) (non-GAAP) 3.47% 3.56%
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/st-bancorp-inc-announces-fourth-quarter-and-full-year-2016-results-300397110.html
SOURCE S&T Bancorp, Inc.
