S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Investor Presentation (September 2019)
25 slides from S&t Bancorp's investor presentation, Sep 3, 2019
Slide 1: Second Quarter 2019
Second Quarter 2019 MEMBERMEMBER FDIC FDIC
Slide 2: Forward Looking Statement and Risk Factors
Forward Looking Statement and Risk Factors This presentation 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
Slide 3: Corporate Profile
Corporate Profile • Headquartered in Indiana, PA • $7.3 billion in assets (as of 6.30.19) • $1.3 billion market cap (as of 6.30.19) • Locations in 5 markets • Stock symbol: STBA MEMBER FDIC 3
Slide 4: STBA Investment Thesis
STBA Investment Thesis STBA Investment Thesis The Right Size • Above peer performance • Big enough to: • Demonstrated expense • Provide full complement of discipline and efficiency products and services • Organic growth • Access technology • Strategic and effective mergers • Access capital markets a
Slide 5: Performance
Performance Return on Average Assets Return on Average Equity 1.8% 1.6% 1.50% 1.37% 15.0% 1.4% (2) 1.22% Peer(1) 12.5% (2) 11.60% 1.2% 1.13% 1.08% 9.90% Peer(1)10.43% 1.0% 10.0% 8.94% 8.67% 0.8% 1.03% 7.5% 0.6% 8.37% 5.0% 0.4% 0.2% 2.5% 0.0% 0.0% 2015 2016 2017 2018 2Q YTD 2015 2016 2017 2018 2Q YTD
Slide 6: Expenses
Expenses Noninterest Expense / Average Assets Efficiency Ratio(2) 3.0% 70% Peer(1) 2.5% 2.30% 2.21% (1) 2.17% 2.10% 2.06% Peer 2.0% 60% 55.86% 54.06% 53.79% 1.5% 51.77% 50.60% 1.0% 50% 0.5% 0.0% 40% 2015 2016 2017 2018 2Q YTD 2015 2016 2017 2018 2Q YTD (3) 2019 2019 (1) BHCPR Peer Group 2: Bank Hold
Slide 7: Mergers and Expansion
Mergers and Expansion Central & Southeast PA Northeast OH Central OH Signed a definitive agreement to acquire Central PA Upstate NY LPO opens in Independence, OH Branch opens in Hillard, OH DNB Financial Corp. Integrity Bank acquired LPO opens in Rochester, NY August 13, 2018 March 4, 2019 June 5, 2
Slide 8: Strategic Expansion into SE Pennsylvania
Strategic Expansion into SE Pennsylvania MEMBER FDIC 8
Slide 9: Overview of DNB Financial Corporation
Overview of DNB Financial Corporation MEMBER FDIC 9
Slide 10: Our Combined Company
Our Combined Company MEMBER FDIC 10
Slide 11: Transaction Structure
Transaction Structure MEMBER FDIC 11
Slide 12: Key Assumptions
Key Assumptions MEMBER FDIC 12
Slide 13: Estimated Pro Forma Financial Metrics
Estimated Pro Forma Financial Metrics MEMBER FDIC 13
Slide 14: Tangible Book Value Per Share Dilution
Tangible Book Value Per Share Dilution Model assumes a 12/31/2019 closing date (1)Includes the net effect of deferred tax liabilities associated with amortizable intangible assets. (2)Based upon STBA's closing price of $38.75 as of 6/4/2019. Included consideration for 4,331,121 common shares outstan
Slide 15: Asset Quality
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.00% 0.50% 0.76% 0.77% 0.75% 0.40% 0.75% 0.70% 0.30% 0.25% 0.25% Peer(1) 0.22% 0.50% 0.42% 0.18% 0.18% 0.20% 0.25% 0.10% Peer(1) 0.00% 0.00% 2015 2016 2017 2018 2Q YTD (2) 2015 2016 2017 2018 6.30.19 2019 (1) BHCPR Peer
Slide 16: Markets S&T Operates in Regional Markets
Markets S&T Operates in 5 Regional Markets Totals as of 6.30.19 Portfolio Loans - $6,033 Deposits - $5,857 Western PA Western PA Upstate NY 6% $364 60% Other 75% 8% $3,624 8% Central OH $4,398 $502 $474 7% Upstate NY 0% $13 $403 Central OH 1% $61 Northeast OH 2% $74 Northeast OH 14% Central PA 19% $
Slide 17: Loans
Loans Loan Mix as of 6.30.19 Amount % of Total CRE $2,907 48% C&I 1,560 26% Consumer 1,287 21% Construction 279 5% Total Portfolio Loans $6,033 100% Dollars in millions MEMBER FDIC 17
Slide 18: Deposits
Deposits Deposit Mix as of 6.30.19 Amount % of Total Money Market $1,742 30% DDA 1,463 25% CD's 1,348 23% Savings 754 13% Int Bear DDA 550 9% Total Deposits $5,857 100% MEMBER FDIC 18 Dollars in millions
Slide 19: Senior Management
Senior Management Name Title Years in Banking Years with S&T Todd D. Brice CEO 33 33 David G. Antolik President & Chief Lending Officer 31 29 Mark Kochvar Chief Financial Officer 33 27 Ernest J. Draganza Chief Risk Officer 32 27 Patrick J. Haberfield Chief Credit Officer 32 9 David P. Ruddock Chief
Slide 20: Valuation Stock Performance
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of June 30, 2019) 1 YR 3 YR 5 YR 10 YR STBA (11.08)% 18.18% 11.35% 15.01% S&P 600 Bank (5.52)% 13.60% 10.72% 13.89% NASDAQ Bank (8.87)% 12.73% 9.40% 11.40% S&P 500 10.44 % 14.21% 10.71% 14.69% Sour
Slide 21: Performance Summary
Performance Performance Summary 2Q YTD 2018 2017 2017 2016 2015 2019 Excludes DTA(3) Net Income (in thousands) $49,029 $105,334 $72,968 $86,401 $71,392 $67,081 Diluted Earnings per Share $1.43 $3.01 $2.09 $2.47 $2.05 $1.98 Dividends Declared per Share $0.54 $0.99 $0.82 $0.77 $0.73 Total Assets (in m
Slide 22: Financial Data
Financial Data Income Statement Balance Sheet 2Q YTD 2017 2019 2018 2017 Excludes DTA(1) 2016 2015 6.30.19 2018 2017 2016 2015 Securities $668,588 $684,872 $698,291 $693,487 $660,963 Net Interest Income $121,183 $234,438 $225,733 $203,259 $187,551 Interest-bearing Balances 62,042 82,740 61,965 87,20
Slide 23: Financial Data: Net Interest Margin and Loan Portfolio
Financial Data Net Interest Margin Loan Portfolio 2Q YTD 2019 2018 2017 2016 2015 Dollars in thousands 6.30.19 2018 2017 2016 2015 Commercial Securities - FTE 2.67% 2.62% 2.48% 2.41% 2.48% Commercial Real Estate $2,906,895 $2,921,832 $2,685,994 $2,498,476 $2,166,603 Commercial & Industrial 1,559,727
Slide 24: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Efficiency Ratio (YTD)(Non-GAAP) 6.30.19 2018 2017 2016 2015 2Q YTD Efficiency ratio (YTD)(non-GAAP) 2019 2018 2017 2016 2015 Total Shareholders’ Equity (GAAP basis) $964,953 $935,761 $884,031 $841,956 $79
Slide 25: Second Quarter 2019
Second Quarter 2019 MEMBERMEMBER FDIC FDIC