S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — FY2021 Earnings Presentation
31 slides from S&t Bancorp's earnings presentation, Feb 17, 2022
Slide 1: Full Year 2021
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer Full Year 2021
Slide 2: Forward Looking Statements and Risk Factors
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 condition, result
Slide 3: Corporate Profile
3 Corporate Profile The Markets We Serve• $9.5 billion in assets • $7.0 billion in loans • $8.0 billion in deposits • $1.2 billion market cap • Stock symbol: STBA • Founded in 1902 120th Anniversary • Locations in 5 attractive markets in 3 states • Markets comprise 9.1 million people and 179,000 bus
Slide 4: Opportunity for Growth
Foundational franchise with stable customer base (Western PA/Eastern PA); Supported by 80% of branch distribution network 4 Opportunity for Growth S&T Bank Mkt Share Leader Other Banks Deposits as published in the 2021 FDIC Summary of Deposits survey Pittsburgh Eastern PA Cleveland Columbus Buffalo
Slide 5: Building the Foundation for Growth
Internal promotion External hire Infrastructure We are rolling out “The S&T Way” to ensure a consistent and effective operating model. Partnering with industry-leading technology companies/fintechs to: Enhance our risk management and Drive consistent revenue growth Capabilities We have enhanced our
Slide 6: Drivers of Performance
Promote strategic clarity and effective communications Invest in organization talent and performance Advance strategic infrastructure and platform investments Ensure rigorous credit risk and enterprise governance practices Pursue high impact growth initiatives Drivers of Performance 6 ENGAGEMENT • T
Slide 7: Fourth Quarter Overview
7 Fourth Quarter Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.57 Net Income $22.5 million ROA 0.94% ROE 7.39% ROTE* 10.95% PTPP* 1.44% HIGHLIGHTS • Net interest income, excluding PPP, increased $0.8 million • Broad-based loan growth, excluding
Slide 8: Full Year Overview
8 Full Year Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $2.81 Net Income $110.3 million ROA 1.18% ROE 9.30% ROTE* 13.85% PTPP* 1.62% HIGHLIGHTS • Loans, excluding PPP, increased $150.8 million, or 2.2% • Deposits increased $576.0 million with an
Slide 9: Performance
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 TANGIBLE EQUITY * 2017 2018 2019 2020 2021 0.0% 5.0% 10.0% 15.0% 20.0% RETURN ON AVERAGE EQUITY 2017 2018 2019 2020 2021 0.0% 5.0% 10.0% 15.0% RETURN ON AVERAGE ASSETS 2017 2018 2019 2020 2021 0.0%
Slide 10: 4Q21 vs 3Q21: Balance Sheet
4Q21 VS 3Q21: Balance Sheet • Loans, excluding PPP, increased $123 million; 7% annualized growth rate for second consecutive quarter • Loan growth in all categories except construction • Deposit mix improved; DDA increased $96.3 million and CDs decreased $113.2 million Dollars in millions 10 4Q21 3Q
Slide 11: Net Interest Income
• Core net interest income increased $0.8 million • NIM is relatively unchanged • We are well-positioned to benefit from rising rates Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 11 Loan Rate Sensitivity Mix 52% 22% 26% Floating Adjust
Slide 12: Noninterest Income
4Q21 4Q21 vs 3Q21 4Q21 vs 4Q20 Debit and Credit Card $4.5 $(0.1) $0.6 Service Charges 4.0 0.1 0.5 Wealth 3.3 (0.2) 0.8 Mortgage 1.5 (0.6) (1.6) Other 2.8 1.1 0.1 Noninterest Income $16.1 $0.3 $0.5 • Positive trends in core customer fees • Favorably impacted by valuations • Moderating mortgage bankin
Slide 13: Noninterest Expense
4Q21 4Q21 vs 3Q21 4Q21 vs 4Q20 Salaries & Benefits $27.1 $1.9 $4.4 Data Processing 4.7 0.7 0.8 Occupancy 3.6 0.0 (0.4) FF&E 2.9 0.2 0.0 Professional Services 1.7 0.1 0.1 Other Taxes 1.5 (0.3) (0.3) Marketing 1.3 0.5 (0.8) FDIC 1.0 (0.2) (0.3) Other 6.3 0.1 (1.9) Noninterest Expense $50.2 $3.0 $1.7 E
Slide 14: Markets
Western PA Upstate NY Central OH Northeast OH Eastern PA 48% $3,391 28% $1,932 9% $639 9% $628 6% $410 Portfolio Loans $7,000 Upstate NY 0% $24 Northeast OH 2% $157 Central OH 2% $144 Eastern PA Western PA69% $5,492 25% $1,998 Other 2% $182 Deposits $7,997 We operate in 5 regional markets: Markets 1
Slide 15: Loan Mix
Loan Mix Our loan portfolio is well-diversified: Dollars in millions 15 Amount % of Total CRE $3,237 46% C&I 1,729 25% Consumer 1,593 23% Construction 441 6% Total $7,000 100%
Slide 16: Loan Growth
Loan Growth Dollars in millions 16 FASTEST GROWING SEGMENTS IN 4Q21 Wholesale Real Estate Other Manufacturing Retail Trade Home Equity Mtg/Const Other Resi Sec Bus Storage Strip Malls Other C-Stores 0 20 40 60 QTD GROWTH BY TYPE C&I Consumer CRE Construction (60) (30) 0 30 60 90 120 Loans, excluding
Slide 17: Deposit Mix
Deposit Mix We have a solid core deposit profile: Dollars in millions 17 Amount % of Total DDA $2,749 34% MM 2,071 26% Savings 1,110 14% CDs 1,088 14% Int Bear DDA 979 12% Total $7,997 100% Amount % of Total Personal $4,429 55% Business 3,563 45% Brokered 5 0% Total $7,997 100%
Slide 18: Asset Quality
Asset Quality ACL 4Q21 VS 3Q21: Dollars in millions 18 ASSET QUALITY TRENDS • Nonperforming loans declined 40.4% or $45 million • Continued improvement in the hotel portfolio including $22.1 million return to accrual status
Slide 19: Capital
Capital We have strong capital levels and are well-positioned for growth Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 19 TOTAL CAPITAL
Slide 20: Financial Data: Income Statement
Financial Data (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 21: Financial Data: Balance Sheet
Financial Data 21 Balance Sheet 2021 2020 2019 2018 2017 Dollars in thousands Securities $910,793 $773,693 $784,283 $684,872 $698,291 Interest-bearing Balances 857,192 158,903 124,491 82,740 61,965 Loans, Net 6,902,936 7,126,776 7,080,184 5,888,023 5,709,544 Other 817,608 908,525 775,691 596,586 590
Slide 22: Net Interest Margin
Net Interest Margin 2021 2020 2019 2018 2017 Securities - FTE 2.18% 2.49% 2.64% 2.62% 2.48% Loans - FTE 3.84% 4.09% 4.95% 4.72% 4.32% Total Interest-earning Assets - FTE 3.37% 3.87% 4.71% 4.48% 4.09% Interest-bearing Deposits 0.20% 0.66% 1.40% 1.01% 0.62% Borrowings 1.49% 1.56% 2.76% 2.19% 1.27% Tot
Slide 23: Financial Data: Loan Portfolio
Financial Data 23 Loan Portfolio 2021 2020 2019 2018 2017 Dollars in thousands Commercial Real Estate $3,236,653 $3,244,974 $3,416,518 $2,921,832 $2,685,994 Commercial and Industrial 1,728,969 1,954,453 1,720,833 1,493,416 1,433,266 Commercial Construction 440,962 474,280 375,445 257,197 384,334 Tot
Slide 24: Financial Data: Asset Quality
Financial Data 24 Asset Quality 2021 2020 2019 2018 2017 Dollars in thousands Total Nonperforming Loans $66,291 $146,774 $54,057 $46,073 $23,938 Nonperforming Loans/Total Loans 0.95% 2.03% 0.76% 0.77% 0.42% Nonperforming Assets/Total Loans + OREO 1.13% 2.06% 0.81% 0.83% 0.42% YTD Net Charge-offs /Av
Slide 25: Financial Data: Capital
Financial Data 25 Capital 2021 2020 2019 2018 2017 Tier 1 Leverage 9.74% 9.43% 10.29% 10.05% 9.17% Common Tier 1 – Risk-Based Capital 12.03% 11.33% 11.43% 11.38% 10.71% Tier 1 – Risk-Based Capital 12.43% 11.74% 11.84% 11.72% 11.06% Total – Risk-Based Capital 13.79% 13.44% 13.22% 13.21% 12.55% Tangib
Slide 26: Return on Average Tangible Equity and PTPP Reconciliation
4Q21 2021 Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $89,176 $110,343 Plus: amortization of intangibles (annualized), net of tax (366) 1,400 Net income before amortization of intangibles (annualized) $90,552 $111,743 Average total shareholders' equity $1,206,2
Slide 27: Efficiency Ratio and Net Interest Margin Reconciliation
4Q21 3Q21 2Q21 1Q21 4Q20 Efficiency Ratio (non-GAAP) Noninterest expense $50,189 $47,241 $45,829 $45,580 $48,528 Net interest income per consolidated statements of net income $68,438 $68,712 $68,304 $70,659 $69,929 Plus: taxable equivalent adjustment 510 557 585 664 725 Net interest income (FTE) (no
Slide 28: Net Income Excluding Nonrecurring Items
2020 2019 2017 Excludes Fraud Excludes Merger Exp 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 Diluted Earnin
Slide 29: Return on Average Tangible Equity Reconciliation
2021 2020 2020 2019 2019 2018 2017 2017 Excludes Fraud Excludes Merger Exp Excludes DTA Return on Average Tangible Equity (non-GAAP) Net income (annualized) $110,343 $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 nonrecurring
Slide 30: PTPP and Tangible Common Equity Reconciliation
2021 2020 2020 2019 2019 2018 2017 Excludes Fraud Excludes Merger Exp PTPP / Average Assets (Non-GAAP) Income before taxes $135,668 $21,040 $117,360 $117,360 $123,179 $119,405 Plus: merger related expenses — — — 11,350 — — Plus: provision for credit losses 16,215 131,424 14,873 14,873 14,995 13,883
Slide 31: Christopher J. McComish and Mark Kochvar
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer Full Year 2021