S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — FY2019 Earnings Presentation
24 slides from S&t Bancorp's earnings presentation, Feb 12, 2020
Slide 1: Full Year 2019
Full Year 2019 Todd Brice Chief Executive Officer Dave Antolik President Mark Kochvar Chief Financial Officer 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 • $8.8 billion in assets (as of 12.31.19) • $1.6 billion market cap (as of 12.31.19) • Locations in 5 markets • Stock symbol: STBA MEMBER FDIC 3
Slide 4: 2019 Highlights
2019 Highlights MEMBER FDIC 4
Slide 5: 2019 Highlights
2019 Highlights MEMBER FDIC 5
Slide 6: 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 7: Strategic Goals
Strategic Goals • Remain a high performing, independent, regional community bank • Follow a disciplined approach focused on organic growth • Continue to enhance our market-based growth platform focused on the unique opportunities in our 5 distinct markets • Continue to improve the effectiveness and
Slide 8: Performance
Performance Return on Average Assets Return on Average Equity 1.8% 1.6% 1.50% 1.45%(3) 15.0% 1.4% 1.22%(2) 12.5% 11.60% (3) 1.2% 1.13% 1.08% 9.90%(2) 10.92% Peer(1) 8.94% 8.67% Peer(1) 1.0% 1.32% 10.0% 0.8% 1.03% 7.5% 9.98% 8.37% 0.6% 5.0% 0.4% 0.2% 2.5% 0.0% 0.0% 2015 2016 2017 2018 2019 2015 2016
Slide 9: Expenses
Expenses Noninterest Expense / Average Assets Efficiency Ratio(3) 3.0% 70% Peer(1) 2.5% 2.30% 2.17% (2) 2.10% 2.06% 2.09% Peer(1) 2.0% 60% 55.86% 54.06% 1.5% 51.77% (2) 50.60% 51.39% 1.0% 50% 0.5% 0.0% 40% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 (1) BHCPR Peer Group 2: Bank Holding Compani
Slide 10: Mergers and Expansion
Mergers and Expansion Northeast OH Eastern PA Eastern PA Upstate NY Central OH Eastern PA LPO opens in Independence, OH LPO Opens in Gr. Berks, PA Integrity Bank acquired LPO opens in Rochester, NY Branch opens in Hillard, OH Acquired DNB Financial Corp. August 13, 2018 November 4, 2019 March 4, 201
Slide 11: Eastern PA Expansion
Eastern PA Expansion DNB Financial Timeline • June 5, 2019 - S&T & DNB announced merger • November 30, 2019 - Merger is finalized • February 10, 2020 - All systems are converted and DNB starts operating under the name S&T Bank • DNB adds ◦ 14 Branches ◦ $900 million in Loans ◦ $991 million in Deposi
Slide 12: Markets
Markets S&T Operates in 5 Regional Markets Totals as of 12.31.19 Portfolio Loans - $7,137 Deposits - $7,037 Western PA Western PA Upstate NY 6% $408 52% 7% Other 6% 64% $3,689 Central OH $522 $426 $4,520 Upstate NY 0% $17 7% Central OH 1% $79 $492 Northeast OH 2% $111 Northeast OH 27% Eastern PA 28%
Slide 13: Loans
Loans Loan Mix as of 12.31.19 Amount % of Total CRE $3,416 48% C&I 1,721 24% Consumer 1,616 23% Construction 384 5% Total Portfolio Loans $7,137 100% Dollars in millions MEMBER FDIC 13
Slide 14: Deposits
Deposits Deposit Mix as of 12.31.19 Amount % of Total Money Market $1,950 27% DDA 1,698 24% CD's 1,596 23% Int Bear DDA 962 14% Savings 831 12% Total Deposits $7,037 100% Amount % of Total Personal $4,117 59% Business 2,559 36% Brokered 361 5% Total $7,037 100% MEMBER FDIC 14 Dollars in millions
Slide 15: 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 16: Valuation: Stock Performance
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of 12.31.19) 1 YR 3 YR 5 YR 10 YR STBA 9.49% 3.55% 8.94% 12.04% S&P 600 Bank 22.83% 3.84% 11.39% 13.35% NASDAQ Bank 24.38% 3.21% 10.54% 11.52% S&P 500 31.48% 15.25% 11.68% 13.54% Source: Bloomberg
Slide 17: Asset Quality
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.00% 0.50% 0.77% 0.76% 0.76% 0.40% 0.75% 0.70% 0.30% 0.25% Peer(1) 0.50% 0.42% 0.22% 0.22% 0.18% 0.18% 0.20% 0.25% Peer(1) 0.10% 0.00% 0.00% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 (1) BHCPR Peer Group 2: Bank
Slide 18: CECL
CECL Estimated Allowance for Credit Losses (1) 12/31/2019 $62.2 1/1/2020 CECL Adoption $7.5-$9.0 DNB Acquired Loans $9.5-$11.0 Allowance for Credit Losses - 1/1/2020 $79.2-$82.2 Allowance for Credit Losses/Total Loans 1.11%-1.15% Financial Impact (1) CECL Change 12/31/2019 Retained Earnings ($13.4)-
Slide 19: Performance Summary
Performance Performance Summary 2019 2017 2019 Excludes 2018 2017 Excludes DTA(3) 2016 2015 Merger Exp(2) Net Income (in thousands) $98,234 $107,478 $105,334 $72,968 $86,401 $71,392 $67,081 Diluted Earnings per Share $2.82 $3.09 $3.01 $2.09 $2.47 $2.05 $1.98 Dividends Declared per Share $1.09 $0.99
Slide 20: Financial Data
Financial Data Income Statement Balance Sheet 2017 2019 2018 2017 Excludes DTA(1) 2016 2015 2019 2018 2017 2016 2015 Net Interest Income $246,791 $234,438 $225,733 $203,259 $187,551 Securities $784,283 $684,872 $698,291 $693,487 $660,963 Noninterest Income 52,558 49,181 55,462 54,635 51,033 Interest
Slide 21: Financial Data: Net Interest Margin and Loan Portfolio
Financial Data Net Interest Margin Loan Portfolio 2019 2018 2017 2016 2015 Dollars in thousands 2019 2018 2017 2016 2015 Commercial Securities - FTE 2.64% 2.62% 2.48% 2.41% 2.48% Commercial Real Estate $3,416,518 $2,921,832 $2,685,994 $2,498,476 $2,166,603 Commercial & Industrial 1,720,833 1,493,416
Slide 22: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Net Interest Margin Rate (FTE) (Non-GAAP) 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Total Shareholders’ Equity (GAAP basis) $1,191,998 $935,761 $884,031 $841,956 $792,237 Total interest income $320
Slide 23: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Return on Average Equity Return on Tangible Shareholders' Equity Return on Average Equity Return on Tangible Shareholders' Equity 2019 2019 2017 2017 Net Income $98,234 Net Income $98,234 Net Income $72,968 Net Income $72,968 Adjust for merger related expenses 1
Slide 24: Full year 2019
Full year 2019 MEMBERMEMBER FDIC FDIC