S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q3 2018 Earnings Presentation
18 slides from S&t Bancorp's earnings presentation, Dec 7, 2018
Slide 1: Third Quarter 2018
Third Quarter 2018 MEMBER 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 Corporate Profile • Headquartered in Indiana, PA • $7.1 billion in assets (as of 09.30.18) • $1.5 billion market cap (as of 09.30.18) • Locations in 5 regional markets • Stock symbol: STBA 2
Slide 4: STBA Investment Thesis
STBA Investment Thesis STBA Investment Thesis The Right Size • Above peer performance • Big enough to: • Demonstrated expense discipline and • Provide full complement of products efficiency and services • Organic growth • Access technology • Strategic and effective mergers and • Access capital marke
Slide 5: Performance
Performance Return on Average Assets Return on Average Equity 1.8% 1.6% 1.50% 15.0% 1.4% 1.22% 1.22%(2) 12.5% 11.63% 1.13% (2) 1.2% 1.08% 9.71% 9.90% (1) 10.0% 8.94% 8.67% 1.0% Peer Peer(1) 1.03 7.5% 0.8% 8.37 0.6% 5.0% 0.4% 2.5% 0.2% 0.0% 0.0% 2014 2015 2016 2017 YTD 3Q18 (3) 2014 2015 2016 2017 YT
Slide 6: Expenses
Expenses Noninterest Expense / Average Assets Efficiency Ratio(2) 3.5% 70% 3.0% 2.46% Peer(1) 2.5% 2.30% 58.67% Peer(1) 2.17% 2.10% 2.08% 60% 55.86% 2.0% 54.06% 51.77% 1.5% 50.59% 50% 1.0% 0.5% 0.0% 40% 2014 2015 2016 2017 YTD 3Q18 2014 2015 2016 2017 YTD 3Q18 (1) BHCPR Peer Group 2: Bank Holding Co
Slide 7: Mergers and Expansion
Mergers and Expansion Integrity Bank North Shore Pittsburgh Mainline National Bank Gateway Bank acquired acquired LPO opened - acquired - March 9, 2012 August 13, 2012 March 4, 2015 November 16, 2016 Northeast Ohio Central Ohio LPO Western NY LPO S&T Bank branch Loan Production Office opened – Janua
Slide 8: Markets
Markets Loan Growth by Market 2012 S&T Operates in 5 Regional Markets Western NY MSAs Locations Deposits(2) Loans(2) Pittsburgh Southwestern PA(1) Altoona 50 $3,864 $2,863 Northeast OH Johnstown Southwestern Central PA PA Lancaster Central OH Central PA Harrisburg 7 665 828 York Western NY Western N
Slide 9: Asset Quality
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.00% 0.60% 0.76% 0.50% 0.70% 0.75% 0.40% 0.30% 0.25% Peer(1) 0.22% 0.50% 0.42% 0.18% 0.19% 0.36% 0.20% 0.32% 0.10% 0.25% 0.00% Peer(1) 0.00% 0.00% -0.10% (2) 2014 2015 2016 2017 3Q18 2014 2015 2016 2017 YTD 3Q18 (1) BHC
Slide 10: Asset Quality: Loan Mix
Asset Quality Loan Mix As of 09.30.18 Amount % of Total CRE $2,827 49% C&I 1,451 25% Consumer 1,246 21% Construction 284 5% Total Portfolio Loans $5,808 100% Dollars in Millions 9
Slide 11: Rate Sensitivity
Rate Sensitivity Net Interest Margin Betas As of 09.30.18 3Q18 vs Balance 3Q16 3Q18 3Q16 Beta 3Q18(2) Fed Funds 0.50% 2.01% 1.51% Net Interest Margin - FTE(1) 3.46% 3.67% 0.21% 14% Total Interest Earning Assets 3.87% 4.55% 0.68% 45% $6.5 Total Costing Liabilities 0.56% 1.23% 0.67% 45% 4.6 Securities
Slide 12: Senior Management
Senior Management Senior Management Name Title Years in Banking Years with S&T Todd D. Brice President & CEO 33 33 Mark Kochvar Chief Financial Officer 32 26 David G. Antolik Chief Lending Officer 30 28 Ernest J. Draganza Chief Risk Officer 31 26 Patrick J. Haberfield Chief Credit Officer 31 8 David
Slide 13: Valuation: Stock Performance
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of 09.30.18) 1 YR 3 YR 5 YR 10 YR STBA 12.06% 12.70% 15.25% 4.61% S&P 600 Bank 7.23% 15.60% 14.75% 7.00% NASDAQ Bank 5.30% 15.74% 13.97% 7.54% S&P 500 17.95% 17.32% 13.95% 11.96% Source: Bloomberg
Slide 14: Performance Summary
Performance Performance Summary YTD 3Q18 2017 Excludes 2016 2015 2014 DTA(2) Net Income (in $ thousands) $78,480 $72,968 $86,401 $71,392 $67,081 $57,910 Diluted Earnings per Share $2.24 $2.09 $2.47 $2.05 $1.98 $1.95 Dividends Declared per Share $0.72 $0.82 $0.77 $0.73 $0.68 Total Assets (in $ millio
Slide 15: Financial Data
Financial Data Income Statement Balance Sheet Excludes 3Q18 2017 2016 2015 2014 YTD 3Q18 2017 DTA(1) 2016 2015 2014 Securities $682,535 $698,291 $693,487 $660,963 $640,273 Net Interest Income $174,596 $225,733 $203,259 $187,551 $148,042 Interest-bearing Balances 132,650 61,965 87,201 41,639 57,048 N
Slide 16: Financial Data: Net Interest Margin and Loan Portfolio
Financial Data Net Interest Margin Loan Portfolio 3Q18 2017 2016 2015 2014 Dollars in thousands 3Q18 2017 2016 2015 2014 Commercial Securities - FTE 2.78% 2.48% 2.41% 2.48% 2.58% Commercial Real Estate $2,826,372 $2,685,994 $2,498,476 $2,166,603 $1,682,236 Loans - FTE 4.79% 4.32% 4.08% 4.09% 4.06% C
Slide 17: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible shareholders' equity/tangible assets (non-GAAP) Efficiency ratio (YTD)(non-GAAP) YTD 3Q18 2017 2016 2015 2014 Efficiency ratio (YTD)(non-GAAP) YTD 3Q18 2017 2016 2015 2014 Total Shareholders’ Equity (GAAP basis) $919,781 $884,031 $841,956 $792,237 $608,
Slide 18: Third Quarter 2018
Third Quarter 2018 MEMBER FDIC