S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q2 2016 Earnings Presentation
35 slides from S&t Bancorp's earnings presentation, Aug 2, 2016
Slide 1: Second Quarter 2016
Second Quarter 2016 Exhibit 99.2
Slide 2: Forward Looking Statement and Risk Factor
Forward Looking Statement and Risk Factor This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements include, among others, statements regarding trend
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references certain non-GAAP financial measures, such as net interest income on a fully taxable equi
Slide 4: Corporate Profile
Sait Bancorpix. Corporate Profile © Headquartered in Indiana, PA Rochester © $6.7 billion in assets (as of 06.30.16) © $854 million market cap. (as of 06.30.16) Bank holding company with 64 offices and 5 insurance locations © Stock symbol: STBA Akron * Named Sandler O'Neill Sm-Alll Star in 2013, 201
Slide 5: Performance Summary
Performance Summary (1)Refer to appendix for reconciliation of Non-GAAP financial measures (2)Annualized for quarterly data
Slide 6: STBA Investment Thesis
STBA Investment Thesis Above peer performance Strategic and effective mergers and expansion Demonstrated expense discipline and efficiency Organic growth Sound asset quality Stable regional economies with long-term oil and gas benefit Undervalued compared to peer
Slide 7: Performance: Return on Average Assets
Performance Sai Bancorpix. Return on Average Assets 1.4% 1.22% 1.2% 1.12% 1.13% 1.01% 1.05% 1.0% 0.8% 0.6% 0.4% 0.2% 0.0% 2013 2014 2015 1916” () BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets ®) Annualized
Slide 8: Performance: Return on Average Tangible Equity
Performance Sai Bancorpix. Return on Average Tangible Equity 14.39% 14.02% 14.0% 13.94% re 13.30% 0.0% 2013 2014 2015 1Q 162) 2Q 162) SN Group Holding Compe lion of Assets 8 ® Annualized
Slide 9: Performance: Return on Average Equity
Performance Sai Bancorpix. Return on Average Equity 12.5% 10.0% 9.71% 9.21% 8.94% | ——$— ate 8.37% 7.5% 5.0% 2.5% 0.0% 2013 2014 2015 1Q 16?) 22 162) (9 BHCPR Peer Group 2: Bank Holding Companies with $3-10 Billion of Assets ® Annualized 9
Slide 10: Mergers and expansion
Mainline National Bank acquired - March 9, 2012 Northeast Ohio Loan Production Office opened – August 27, 2012 Gateway Bank acquired August 13, 2012 Western NY LPO opened – March 23, 2015 Integrity Bank acquired March 4, 2015 Central Ohio LPO opened – January 21, 2014 S&T Bank branch opens in State
Slide 11: Expenses: Non Interest Expense / Average Assets
Expenses Sai Bancorp. Non Interest Expense / Average Assets 3.5% 3.0% 2.61% 2.5% 2.46% 240% 2.30% 2.14% 2.0% 1.5% 1.0% 0.5% 0.0% 2013 2014 2015 1Q 162) 2 162) () BHCPR Peer lic ) Annualized
Slide 12: Expenses: Efficiency Ratio
Expenses Sai Bancorp. Efficiency Ratio 70% 65% Peer( 60% 60.03% 58.67% 57.19% 55.86% 55% 54.37% 50% 45% 40% 2013 2014 2015 1016 2Q 16
Slide 13: Growth: Loan Dollars
Growth Sai Bancorpix. (100) Loan Dollars (in (200) (300) (400) (500) 2Q15 3Q15 4Q15 1016 2Q16 m= Line Utilization mm New > Payments mmm Payofts e=Net Growth
Slide 14: Market Opportunity
Market Opportunity MSA 2016 Population (in thousands) 2016-2021 % Change Median HH Income (in thousands) Locations Deposits (in millions) Deposit Market Share % Loans (in millions) Pittsburgh, PA 2,353 0.14% 55 27 $1,846 1.6% $2,018 Indiana, PA1 87 (0.97)% 47 10 $1,399 58.3% $380 Jefferson-Clarion,
Slide 15: Asset quality: Non Performing Loans / Total Loans
Asset quality Sai Bancorp. Non Performing Loans / Total Loans 2.0% 1.5% 1.0% 0.79% 0.5% 0.0% 2013 2014 2015 10 16 2Q 16 \) BHCPR Peer li 15
Slide 16: Asset quality: Net Charge Offs / Average Loans
Asset quality Sai Bancorp. Net Charge Offs / Average Loans 0.4% 0.23% 0.2% 0.0% 2013 2014 2015 1Q 16?) 2 16°) () BHCPR Peer i ies wit Annualized 16
Slide 17: Asset quality: Loan Mix
Home Equity $480 39% Mortgage/Construction $677 56% Other $58 5% CRE $2,389 57% C&I $1,386 33% Construction $398 10% Loan Mix As of 06.30.16 Total Portfolio Loans $5,388 Commercial Consumer Asset quality In $ millions
Slide 18: Commercial Real Estate Diversification
Asset quality Commercial Real Estate Diversification As of 06.30.16 Total CRE $2,389 million
Slide 19: Stable regional economies with long-term oil & gas benefit
Stable regional economies with long-term oil & gas benefit Regional economy
Slide 20: Undervalued compared to peer
Undervalued compared to peer(1) Valuation (1)KRX-Dow Jones KBW Regional Bank Index Members Stock prices as of 07.20.16; Performance for last twelve months reported Source: Bloomberg
Slide 21: Stock Performance
Stock Performance 1 YR 3YR 5YR 10YR STBA -15.10% 10.50% 8.72% 0.13% NASDAQ Bank -3.07% 9.53% 11.60% 0.80% KRX-Dow Jones KBW Regional Bank -6.21% 9.66% 11.68% 0.67% S&P 500 3.97% 11.60% 12.06% 7.41% Institutional Ownership 49.20% Insider Ownership 3.19% Employee 401K 1.74% Source: Bloomberg Source: N
Slide 22: Rate Sensitivity
Rate Sensitivity As of 06.30.16 Loans & Securities Floating Rate $2,294 37% ARM/Future Reset $1,607 26% Fixed Rate $2,251 37% Total $6,152 100% Deposits & Borrowings Floating Rate/Short Wholesale Liabilities $955 17% Non-Maturity Variable Deposits $2,196 38% Non-Interest Bearing DDA $1,220 21% Fixed
Slide 23: Senior Management
Senior Management Name Title Years in Banking Years with S&T Todd D. Brice President & CEO 31 31 Mark Kochvar Chief Financial Officer 30 24 David G. Antolik Chief Lending Officer 28 26 Ernest J. Draganza Chief Risk Officer 29 24 Patrick J. Haberfield Chief Credit Officer 29 6 David P. Ruddock 31 31
Slide 24: Continuous Improvement
Continuous Improvement Multi-Faceted Growth Profit Improvement Operational Effectiveness Culture Customer Experience Risk Management 3 mergers since 2012 3 new LPOs in 3 years McCandless, PA branch opened in 2015 Akron, OH branch opened in 2015 Platinum banking Closed 5 branches Converted 2 branches
Slide 25: Lines of Business
Lines of Business Commercial Banking 48 commercial bankers 18 business bankers Privately held companies with sales up to $150 million Regional team based approach to credit delivery Dedicated small business (B2B) delivery channel Dedicated treasury management team Retail Banking Competitive, relatio
Slide 26: The Right Size
The Right Size Big enough to: Provide full complement of products and services Access technology Access capital markets Attract talent Expand – mergers and acquisitions/de novo Small enough to: Stay close to our customers Understand our markets Be responsive
Slide 27: Income Statement
Income Statement Dollars in thousands, except per share data
Slide 28: Balance Sheet
Balance Sheet Dollars in thousands
Slide 29: Net Interest Margin
Net Interest Margin *Refer to appendix for reconciliation of Non-GAAP financial measures
Slide 30: Loan Portfolio
Loan Portfolio Dollars in thousands
Slide 31: Asset Quality
Asset Quality Dollars in thousands
Slide 32: Capital
Capital *Refer to appendix for reconciliation of Non-GAAP financial measures
Slide 33: APPENDIX – Non-GAAP Measures
APPENDIX – Non-GAAP Measures
Slide 34: APPENDIX – Non-GAAP Measures
APPENDIX – Non-GAAP Measures
Slide 35: Second Quarter 2016
Second Quarter 2016