S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q3 2019 Earnings Presentation
25 slides from S&t Bancorp's earnings presentation, Nov 4, 2019
Slide 1: Third Quarter 2019
Third Quarter 2019 MEMBERMEMBER FDIC FDIC
Slide 2: Forward Looking Statement and Risk Factors
Forward Looking Statement and Risk Factors 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, outloo
Slide 3: Corporate Profile
Corporate Profile • Headquartered in Indiana, PA • $7.6 billion in assets (as of 9.30.19) • $1.3 billion market cap (as of 9.30.19) • 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% 1.40% 15.0% 1.4% (2) 1.22% Peer(1) 12.5% (2) 11.60% 1.2% 1.13% 1.08% 9.90% Peer(1) 10.61% 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 3Q YTD 2015 2016 2017 2018 3Q YT
Slide 6: Expenses
Expenses Noninterest Expense / Average Assets Efficiency Ratio(2) 3.0% 70% Peer(1) 2.5% 2.30% 2.15% (1) 2.17% 2.10% 2.06% Peer 2.0% 60% 55.86% 54.06% 1.5% 51.77% 52.54% 50.60% 1.0% 50% 0.5% 0.0% 40% 2015 2016 2017 2018 3Q YTD 2015 2016 2017 2018 3Q 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 Central PA Upstate NY Signed a definitive agreement to acquire LPO opens in Independence, OH Branch opens in Hillard, OH Integrity Bank acquired LPO opens in Rochester, NY DNB Financial Corp. June 5, 2019 August 13, 2018 March 4, 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% 0.81% 0.76% 0.77% 0.40% 0.75% 0.70% 0.30% 0.25% 0.26% 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 3Q YTD (2) 2015 2016 2017 2018 9.30.19 2019 (1) BHCPR Peer
Slide 16: Markets S&T Operates in
Markets S&T Operates in 5 Regional Markets Totals as of 9.30.19 Portfolio Loans - $6,196 Deposits - $5,983 Western PA Western PA Upstate NY 6% $384 60% Other 75% 8% $3,695 7% Central OH $4,492 $523 $409 7% Upstate NY 0% $16 $443 Central OH 1% $67 Northeast OH 2% $97 Northeast OH 15% Central PA 19% $
Slide 17: Loans
Loans Loan Mix as of 9.30.19 Amount % of Total CRE $2,922 47% C&I 1,627 26% Consumer 1,321 22% Construction 326 5% Total Portfolio Loans $6,196 100% Dollars in millions MEMBER FDIC 17
Slide 18: Deposits
Deposits Deposit Mix as of 9.30.19 Amount % of Total Money Market $1,661 28% DDA 1,490 25% CD's 1,326 23% Savings 754 12% Int Bear DDA 752 12% Total Deposits $5,983 100% Amount % of Total Personal $3,493 58% Business 2,189 37% Brokered 301 5% Total 5,983 100% 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 34 34 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 Sept 30, 2019) 1 YR 3 YR 5 YR 10 YR STBA (13.35)% 10.65% 12.05% 13.93% S&P 600 Bank (5.68)% 9.63% 11.82% 12.48% NASDAQ Bank (7.95)% 8.81% 10.19% 10.26% S&P 500 4.23 % 13.39% 10.82% 13.22% Source
Slide 21: Performance Summary
Performance Performance Summary 3Q YTD 2018 2017 2017 2016 2015 2019 Excludes DTA(3) Net Income (in thousands) $75,965 $105,334 $72,968 $86,401 $71,392 $67,081 Diluted Earnings per Share $2.21 $3.01 $2.09 $2.47 $2.05 $1.98 Dividends Declared per Share $0.81 $0.99 $0.82 $0.77 $0.73 Total Assets (in m
Slide 22: Financial Data
Financial Data Income Statement Balance Sheet 3Q YTD 2017 2019 2018 2017 Excludes DTA(1) 2016 2015 9.30.19 2018 2017 2016 2015 Securities $669,226 $684,872 $698,291 $693,487 $660,963 Net Interest Income $182,379 $234,438 $225,733 $203,259 $187,551 Interest-bearing Balances 69,021 82,740 61,965 87,20
Slide 23: Financial Data: Net Interest Margin, Loan Portfolio
Financial Data Net Interest Margin Loan Portfolio 3Q YTD 2019 2018 2017 2016 2015 Dollars in thousands 9.30.19 2018 2017 2016 2015 Commercial Securities - FTE 2.65% 2.62% 2.48% 2.41% 2.48% Commercial Real Estate $2,922,197 $2,921,832 $2,685,994 $2,498,476 $2,166,603 Commercial & Industrial 1,626,854
Slide 24: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Efficiency Ratio (YTD)(Non-GAAP) 9.30.19 2018 2017 2016 2015 3Q YTD Efficiency ratio (YTD)(non-GAAP) 2019 2018 2017 2016 2015 Total Shareholders’ Equity (GAAP basis) $982,447 $935,761 $884,031 $841,956 $79
Slide 25: Third Quarter 2019
Third Quarter 2019 MEMBERMEMBER FDIC FDIC