S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q1 2023 Earnings Presentation
18 slides from S&t Bancorp's earnings presentation, Apr 20, 2023
Slide 1: First Quarter 2023 Earnings Supplement
First Quarter 2023 Earnings Supplement
Slide 2: Forward Looking Statements and Risk Factors; Non-GAAP Financial Measures
Forward Looking Statements and Risk Factors Non-GAAP This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Financial Measures Reform Act of 1995. Forward-looking statements generally relate to our
Slide 3: First Quarter Overview
First Quarter Overview HIGHLIGHTS EARNINGS EPS Net Income • Solid return metrics $1.02 $39.8 million • NIM relatively unchanged from prior quarter RETURNS ROA ROE • Net recovery of $5.1 million, or 0.29%, of 1.77% 13.38% average loans • Expenses well controlled with an ROTE* PPNR* efficiency ratio o
Slide 4: Balance Sheet
Balance Sheet 1Q23 VS 4Q22: • Loans increased $67.1 million, or 3.8% annualized, since December 31, 2022 ($75) ($50) ($25) $0 $25 $50 $75 1Q23 4Q22 Var • Consumer growth of $65.3 million, or 13.7% annualized Cash & Int Bear Bal $244 $210 $34 • Deposits of $7.2 billion decreased $66.9 million since D
Slide 5: Deposits
Deposits • Strong, well-diversified deposit base of INSURED/UNINSURED DEPOSITS 230,000 customers • Balance mix 59% personal and 41% business • Uninsured deposits include $323 million of collateralized municipal deposits • Deposits declined $66.9 million from 4Q22; January decline followed by stabili
Slide 6: Net Interest Income
Net Interest Income • Net interest income and NIM relatively unchanged to prior quarter • Deposit balance migration and exception pricing increased funding costs • $500 million notional receive-fixed swaps for rates down protection 1Q23 VS SPOT NIM: 1Q23 Mar23 Earning Assets FTE 5.39 % 5.38 % Costin
Slide 7: Funding Costs
Funding Costs 1Q23 DEPOSIT CHANGES DECREASES/INCREASES • 1Q23 interest-bearing deposit costs increased 37 basis points to 1.30% due to a change in mix of deposits • CD increase mostly due to migration; $88 million of net new money • $23 million of DDA decline is due to migration to IntraFi (NOW prod
Slide 8: Funding Capacity
Funding Capacity FUNDING SOURCES • Strong liquidity position with well-diversified deposit base Capacity Used Available • Significant funding availability through FHLB $2,965 $624 $2,341 FHLB and Federal Reserve Federal Reserve Window 794 0 794 • Funding availability meets liquidity needs in both no
Slide 9: Asset Quality
Asset ASSET QUALITY TRENDS Quality • ACL increased mainly due to a $4.2 million specific reserve and higher qualitative reserve for macro environment • Net recovery of $5.1 million due to a $9.3 million recovery from a customer fraud in 2020 – Strategic note sale resulted in $3.4 million charge-off
Slide 10: Office CRE
Office CRE 7% total loans; 83% non-CBD; granular; minimal maturities over next 24 months TOTAL LOANS CRE LOANS OFFICE $7,251 $3,145 $479 Non-CBD CBD 83% 17% $395 $84 CRE 43% C&I 24% Consumer 27% Const 6% CRE comprises 43% of our total loans Office comprises 7% of our total loans 83% of our office lo
Slide 11: CRE Maturities
CRE Maturities in next 24 months CRE MATURITIES BY INDUSTRY: Only 15% of our CRE loans mature in the next 24 months CRE MATURITIES BY SIZE: CRE MATURITIES BY QUARTER: Size Total # Avg Size 10mm+ $81.6 Loans 6 $13.6 5mm-10mm 169.6 23 7.4 1mm-5mm 175.5 81 2.2 Under 1mm 54.5 173 0.3 Total $481.2 283 $1
Slide 12: Noninterest Income
Noninterest Income Decrease mainly related to a $2.0 million gain on OREO in 4Q22 1Q23 1Q23 vs 4Q22 1Q23 vs 1Q22 Debit and Credit Card $4.4 $0.0 ($0.7) Service Charges 4.1 (0.2) 0.1 Wealth 2.9 (0.1) (0.3) Mortgage 0.3 0.0 (0.7) Security Gain 0.0 0.0 0.0 Other 1.5 (2.1) (0.4) Noninterest Income $13.2
Slide 13: Noninterest Expense
Noninterest Expense FDIC higher due to increase in insurance assessment rate; marketing higher due to timing of marketing promotions 1Q23 1Q23 vs 4Q22 1Q23 vs 1Q22 Salaries & Benefits $27.6 ($0.4) $3.9 Data Processing 4.3 0.1 (0.1) Occupancy 3.8 — (0.1) FF&E 2.9 (0.1) 0.1 Marketing 1.9 0.6 0.5 Profe
Slide 14: Securities
Securities • Securities portfolio is only 11% of total assets SECURITIES MIX • 100% of securities portfolio is classified as available-for-sale • Average duration of 3.9 years at 1Q23 compared to 3.7 years at 4Q21 • AOCI of $69.4 million related to securities portfolio, if realized, would decrease C
Slide 15: Capital
Capital • Capital levels remain strong • TCE / TA has increased despite AOCI adjustments * TCE / TA Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 15
Slide 16: Appendix Definitions of GAAP to Non-GAAP Financial Measures
Appendix Definitions of GAAP to Non-GAAP Financial Measures 1Q23 Return on Average Tangible Shareholders' Equity (ROTE) (non-GAAP) Net income (annualized) $161,407 Plus: amortization of intangibles (annualized), net of tax 1,085 Net income before amortization of intangibles (annualized) $162,492 Ave
Slide 17: Appendix Definitions of GAAP to Non-GAAP Financial Measures
Appendix Definitions of GAAP to Non-GAAP Financial Measures 1Q23 4Q22 3Q22 2Q22 1Q22 Tangible Common Equity/Tangible Assets (TCE) (non-GAAP) Total shareholders' equity $1,227,795 $1,184,659 $1,153,181 $1,178,358 $1,184,950 Less: goodwill and other intangible assets, net of deferred tax liability (37
Slide 18: First Quarter 2023 Earnings Supplement
First Quarter 2023 Earnings Supplement