S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q1 2021 Earnings Presentation
31 slides from S&t Bancorp's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021
MEMBER FDICMEMBER FDIC Dave Antolik President and Interim Chief Executive Officer Mark Kochvar Chief Financial Officer First Quarter 2021
Slide 2: Forward Looking Statements and Risk Factors
MEMBER FDIC Forward Looking Statements and Risk Factors This information 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 cond
Slide 3: Corporate Profile
MEMBER FDIC 3 Corporate Profile • Headquartered in Indiana, PA • $9.3 billion in assets • $1.3 billion market cap • Locations in 5 markets • Stock symbol: STBA As of March 31, 2021
Slide 4: STBA Investment Thesis
MEMBER FDIC 4 STBA Investment Thesis • Demonstrated expense discipline and efficiency • Organic growth • Strategic and effective mergers and expansion • Exposure to five regional markets • Well positioned for growth
Slide 5: Strategic Goals
MEMBER FDIC 5 Strategic Goals • Follow a disciplined approach focused on organic growth and revenue diversification • Continue to enhance our market-based growth platform focused on the unique opportunities in our 5 distinct markets, including taking advantage of market disruption and targeted recru
Slide 6: First Quarter Highlights
MEMBER FDIC*Refer to appendix for reconciliation of non-GAAP financial measures 6 First Quarter Highlights Earnings: EPS Net Income $0.81 $31.9 million Returns: ROA ROE ROTE* PTPP* 1.42% 11.15% 16.78% 1.89% Asset NCO Provision ACL Quality: 0.33% $3.1 million 1.60% ex-PPP 1.72% • Strong return metric
Slide 7: Key Metrics
MEMBER FDIC*Refer to appendix for reconciliation of non-GAAP financial measures 7 Key Metrics 1Q21 4Q20 1Q20 Reported Metrics: Net income (in millions) $31.9 $24.2 $13.2 Diluted earnings per share $0.81 $0.62 $0.34 Dividends declared per share $0.28 $0.28 $0.28 Book value $29.75 $29.38 $30.06 Tangib
Slide 8: Performance
MEMBER FDIC Return on Average Equity 2017 2018 2019 2020 1Q21 0.0% 5.0% 10.0% 15.0% Return on Average Tangible Equity 2017 2018 2019 2020 1Q21 0.0% 5.0% 10.0% 15.0% 20.0% PTPP / Average Assets 2017 2018 2019 2020 2021 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% Return on Average Assets 2017 2018 2019 2020 1Q
Slide 9: Net Interest Income and Core NIM
MEMBER FDIC Data as of March 31, 2021 Dollars in millions 9 Net Interest Income Core NIM remains stable: We are proactively managing our interest-bearing deposit costs: • Our ex-PPP NIM improved 2 bps from 4Q20 to 1Q21 • PPP loans contributed $5.8 million to our NII and 0.10% to our NIM in 1Q21 • We
Slide 10: Noninterest Income
MEMBER FDIC 10 Noninterest Income Dollars in millions 1Q21 1Q21 vs 4Q20 1Q21 vs 1Q20 Service Charges $3.5 $0.0 $(0.5) Debit Card 4.2 0.3 0.7 Mortgage 4.3 1.2 3.1 Wealth 2.9 0.4 0.6 Other 2.3 (0.3) 1.0 Noninterest Income $17.2 $1.6 $4.8 Noninterest income growth is led by record mortgage banking reve
Slide 11: Noninterest Expense
MEMBER FDIC 11 Noninterest Expense 1Q20 Efficiency Ratio excludes $2.3 million of one-time merger expenses Strong history of expense discipline: Dollars in millions 1Q21 1Q21 vs 4Q20 1Q21 vs 1Q20 Salaries & Benefits $23.3 $0.5 $2.0 Occupancy 3.8 (0.2) 0.1 FF&E 2.6 (0.3) 0.1 Data Processing 4.2 0.4 0
Slide 12: S&T Operates in 5 Regional Markets
MEMBER FDIC Upstate NY 0% $24 Northeast OH 2% $154 Central OH 2% $120 S&T operates in 5 regional markets: 12 Markets Western PA Eastern PA Upstate NY Central OH Northeast OH Eastern PA Western PA50% $3,598 27% $1,952 8% $566 9% $617 6% $450 68% $5,344 Dollars in millions As of March 31, 2021 26% $2,
Slide 13: Loan Mix
MEMBER FDIC 13 Loan Mix Dollars in millions As of March 31, 2021 Offices $ 481 Multi-Family 454 Health Care 359 Other 298 Manufacturing 255 Hotels 243 Flex/Mixed Use 240 Retail Space 229 Storage 203 Strip Malls 194 Dealerships 119 Student Rentals 76 Restaurants 70 Convenience Stores 64 Total CRE (46
Slide 14: Deposit Mix
MEMBER FDIC 14 Dollars in millions As of March 31, 2021 Deposit Mix Amount % of Total DDA $2,540 32% Money Market 2,003 26% CDs 1,320 17% Savings 1,037 13% Int Bear DDA 976 12% Total Deposits $7,876 100% Amount % of Total Personal $4,419 56% Business 3,442 44% Brokered 15 0% Total Deposits $7,876 10
Slide 15: Loan Modifications
MEMBER FDIC *Reported as Consumer Loans Dollars in millions Excludes PPP loans 15 Loan Modifications Modifications have been reduced to less than 1% of loans. Hotel loan modifications decreased by 82% during the first quarter: Loan Type June 30, 2020 December 31, 2020 March 31, 2021 Total Balance Mo
Slide 16: SBA PPP
MEMBER FDIC Ratios as of March 31, 2021 Dollars in millions *Refer to appendix for reconciliation of non-GAAP financial measures 16 SBA PPP 44% of our round 1 PPP loans have been forgiven and we booked $190 million in round 2: Date Round 1 Balance % Forgiven September 30, 2020 $550 December 31, 2020
Slide 17: Asset Quality
MEMBER FDIC Nonperforming Loans / Total Loans 2017 2018 2019 2020 1Q21 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 17 (1) Excludes PPP loans. (2) Excludes loss from customer fraud in Q2 2020, actual ratio is 1.40%. Refer to appendix for reconciliation of non-GAAP financial measures. Net Charge Offs / Averag
Slide 18: Capital
MEMBER FDIC Data as of March 31, 2021 Dollars in millions *Refer to appendix for reconciliation of non-GAAP financial measures 18 Capital We have strong capital levels and are well-positioned for growth: PPP loans impacted selected ratios as below: Ratio Excluding PPP Including PPP Impact Leverage R
Slide 19: Income Statement
MEMBER FDIC 19 (1)These are non-GAAP numbers that adjusted for a pre-tax loss of $58.7 million resulting from customer fraud related to a check kiting scheme in Q2 2020. Refer to appendix for reconciliation of non-GAAP financial measures. (2)These are non-GAAP numbers that adjust for $11.4 million o
Slide 20: Balance Sheet
MEMBER FDIC 20 Balance Sheet 1Q21 2020 2019 2018 2017 Dollars in thousands Securities $817,299 $773,693 $784,283 $684,872 $698,291 Interest-bearing Balances 671,429 158,903 124,491 82,740 61,965 Loans, Net 7,080,861 7,126,776 7,080,184 5,888,023 5,709,544 Other 759,390 908,525 775,691 596,586 590,45
Slide 21: Net Interest Margin
MEMBER FDIC 21(1)Refer to appendix for reconciliation of non-GAAP financial measures. Net Interest Margin 1Q21 2020 2019 2018 2017 Securities - FTE 2.34 % 2.49 % 2.64 % 2.62 % 2.48 % Loans - FTE 3.96 % 4.09 % 4.95 % 4.72 % 4.32 % Total Interest-earning Assets - FTE 3.67 % 3.87 % 4.71 % 4.48 % 4.09 %
Slide 22: Loan Portfolio
MEMBER FDIC 22 Loan Portfolio 1Q21 2020 2019 2018 2017 Dollars in thousands Commercial Real Estate $3,284,555 $3,244,974 $3,416,518 $2,921,832 $2,685,994 Commercial & Industrial 1,931,711 1,954,453 1,720,833 1,493,416 1,433,266 Construction 460,417 474,280 375,445 257,197 384,334 Total Commercial 5,
Slide 23: Asset Quality
MEMBER FDIC 23 Asset Quality 1Q21 2020 2019 2018 2017 Dollars in thousands Total Nonperforming Loans $135,211 $146,774 $54,057 $46,073 $23,938 Nonperforming Loans/Total Loans 1.88 % 2.03 % 0.76 % 0.77 % 0.42 % Nonperforming Assets/Total Loans + OREO 1.90 % 2.06 % 0.81 % 0.83 % 0.42 % Net Charge-offs
Slide 24: Capital
MEMBER FDIC 24(1)Refer to appendix for reconciliation of non-GAAP financial measures. Capital 1Q21 2020 2019 2018 2017 Tier 1 Leverage 9.71 % 9.43 % 10.29 % 10.05 % 9.17 % Common Tier 1 – Risk-Based Capital 11.84 % 11.33 % 11.43 % 11.38 % 10.71 % Tier 1 – Risk-Based Capital 12.26 % 11.74 % 11.84 % 1
Slide 25: Tangible Book Value and Return on Tangible Equity Reconciliation
MEMBER FDIC 25 1Q21 4Q20 1Q20 Tangible Book Value (non-GAAP) Total shareholders' equity $1,168,278 $1,154,711 $1,176,251 Less: goodwill and other intangible assets, net of deferred tax liability (379,911) (380,278) (382,397) Tangible common equity (non-GAAP) $788,367 $774,434 $793,854 Common shares
Slide 26: Efficiency Ratio and Net Interest Margin Reconciliation
MEMBER FDIC 26 1Q21 4Q20 1Q20 Efficiency Ratio (non-GAAP) Noninterest expense $45,580 $48,528 $46,391 Less: merger related expenses — — (2,342) Noninterest expense excluding nonrecurring items $45,580 $48,528 $44,049 Net interest income per consolidated statements of net income $70,659 $69,929 $70,0
Slide 27: Net Income Excluding Nonrecurring Items
MEMBER FDIC 27 2020 Excludes Fraud 2019 Excludes Merger Exp 2017 Excludes DTA Net Income excluding nonrecurring items Net income $21,040 $98,234 $72,968 Nonrecurring items 58,671 11,350 13,433 Tax effect of nonrecurring items (12,321) (2,106) — Adjusted net income (non-GAAP) $67,390 $107,478 $86,401
Slide 28: Return on Average Tangible Equity Reconciliation
MEMBER FDIC 28 1Q21 2020 2020 Excludes Fraud 2019 2019 Excludes Merger Exp 2018 2017 2017 Excludes DTA Return on Average Tangible Equity (non-GAAP) Net income $129,378 $21,040 $21,040 $98,234 $98,234 $105,334 $72,968 $72,968 Nonrecurring items — — 58,671 — 11,350 — — 13,433 Tax effect of nonrecurrin
Slide 29: Efficiency Ratio (YTD) Reconciliation
MEMBER FDIC 29 1Q21 2020 2020 Excludes Fraud 2019 2019 Excludes Merger Exp 2018 2017 Efficiency Ratio (YTD) (non-GAAP) Noninterest expense $45,580 $186,643 $167,116 $145,445 $147,907 Less: nonrecurring items — (2,342) (11,350) — — Noninterest income excluding nonrecurring items 45,580 184,301 155,76
Slide 30: Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures
MEMBER FDIC 30 2020 2020 Excludes Fraud Provision for credit losses Provision $131,424 $131,424 Less: customer fraud — 58,671 Adjusted provision for credit losses 131,424 72,753 YTD Net loan charge offs/ YTD Average loans Net charge-offs $103,379 $103,379 Less: customer fraud — 58,671 Adjusted net c
Slide 31: First Quarter 2021
MEMBER FDICMEMBER FDIC First Quarter 2021