S&T Bancorp Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Announces Net Charge-Offs for the Fourth Quarter of 2016
January 26, 2017 at 12:30 pm
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S&T Bancorp Inc. announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2016. For the quarter, the company's 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. 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. Income before taxes was $24.169 million compared to $24.237 million reported a year ago. Return on average tangible assets was 1.10% compared to 1.18% reported a year ago. Return on average tangible shareholders' equity was 13.05% compared to 14.21% reported a year ago. Return on average assets was 1.04% compared to 1.10% reported a year ago. Return on average shareholders' equity was 8.36% compared to 8.74% reported a year ago. Book value per share was $24.12 as at December 31, 2016 compared to $22.76 as at December 31, 2015. Tangible book value per share was $15.67 as at December 31, 2016 compared to $14.26 as at December 31, 2015.
For the year, the company's 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. 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. Income before taxes was $96.697 million compared to $91.479 million reported a year ago. Return on average tangible assets was 115% compared to 1.20% reported a year ago. Return on average assets was 1.08% compared to 1.13% reported a year ago. Return on average shareholders' equity was 8.67% compared to 8.94% reported a year ago. Return on average tangible shareholders' equity was 13.71% compared to 14.39% reported a year ago.
The company's 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.
S&T Bancorp, Inc. is a bank holding company. The Companyâs segments include Commercial Real Estate (CRE), Commercial and Industrial (C&I), Commercial Construction, Business Banking, Consumer Real Estate and Other Consumer. The CRE segment includes loans secured by commercial purpose real estate, including both owner-occupied properties and investment properties for various purposes such as hotels, retail, multifamily and healthcare. The C&I segment includes loans made to operating companies or manufacturers for the purpose of production, operating capacity, accounts receivable, inventory, or equipment financing. The Commercial Construction segment includes loans made to finance the construction of buildings or other structures, as well as to finance the acquisition and development of raw land for various purposes. The Business Banking segment includes commercial loans made to small businesses. Consumer Real Estate segment includes loans secured by first and second liens.
S&T Bancorp Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2016; Announces Net Charge-Offs for the Fourth Quarter of 2016