S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q2 2020 Earnings Presentation
22 slides from S&t Bancorp's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Earnings Supplement
Second Quarter 2020 Earnings Supplement MEMBER FDIC
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors This information contains certain 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 of operations, plans, objectives, outlo
Slide 3: Second Quarter 2020 Highlights
Second Quarter 2020 Highlights EPS: ($ 0.85) ex-fraud $0.34 PTPP 1.79%; $41.9 million Deposit growth $810 million ($33.1) million Net (Loss): Net Income: $13.3 million Mortgage banking ACL build $17.8 million PPP participation ROA ROE ROTE Returns: (1.41%) (11.17%) (16.19%) Efficiency ra
Slide 4: Fraud
Second Quarter 2020 Fraud • Check Kiting Scheme – Second quarter 2020 loss of $58.7 million or $1.19 per diluted share – Perpetrated by single business relationship – Discovered and first disclosed in late May 2020 • Update and Actions Taken to Date – No additional fraud-related losses expected – Pu
Slide 5: Key Metrics
Second Quarter 2020 Key Metrics 2020 2020 2019 Second First Second Quarter Quarter Quarter Reported Metrics: Net (loss) income ($33.1 million) $13.2 million $26.1 million Diluted (loss) earnings per share ($0.85) $0.34 $0.76 Dividends declared per share $0.28 $0.28 $0.27 Book value $28.93 $30.06 $28
Slide 6: Response to Challenging Times
Second Quarter 2020 Response to Challenging Times We remain committed to helping our employees, customers, and communities during these unprecedented and challenging times: COVID-19 Pandemic Racial and Social Inequality Employees: We strive to educate our employees to be Working from home and al
Slide 7: Digital Channels
Second Quarter 2020 Digital Channels Strategic investments in our technology, marketing, and analytics will help us to deliver a distinctive customer experience and drive digital revenue and account growth: New website launch in Q3 2020 Q2 2020 Digital Utilization • Mobile-first, responsive design •
Slide 8: J.D. Power Award
Second Quarter 2020 J.D. Power Award • S&T ranked highest in customer satisfaction with retail banking in the Mid-Atlantic by J.D. Power in the 2020 U.S. Retail Banking Satisfaction Study. • We ranked #1 in the following factors: – Communication and Advice – Convenience – Product and Fees – Channel
Slide 9: Loan Mix
Second Quarter 2020 Loan Mix Data as of June 30, 2020 $ in millions 9
Slide 10: Loan Modifications
Second Quarter 2020 Loan Modifications In response to COVID-19, we offered loan customers needs-based payment deferrals and modifications to interest only periods: March 31, 2020 June 30, 2020 July 21, 2020 Loan Type Total Mod Mod Total Mod Mod Total Mod Mod Balance Balance % Balance Balance % Balan
Slide 11: Commercial Loan Modifications
Second Quarter 2020 Commercial Loan Modifications 68% of commercial loans with expired modifications have returned to contractual terms: Expired 2nd Return to Contract Expired 2nd Return to Contract Loan Type Loan Type Mods Mods $ % Mods Mods $ % Other $48 $13 $35 74% Manufacturing $5 $1 $4 83% Mult
Slide 12: Commercial Loan Modifications
Second Quarter 2020 Commercial Loan Modifications We are working with our customers as modifications expire and have reduced the modified balance of commercial loans from 22% to 17% since June 30, 2020: Total Modified % of Bal Total Modified % of Bal Loan Type Loan Type Balance Balance Modified Bala
Slide 13: Hotels Portfolio
Second Quarter 2020 Hotels Portfolio Total Modified % of Bal Balance Balance Modified 6/30/20 7/21/20 Balance $233 $223 96% • 84% of the portfolio is with a Number 74 58 78% Marriott, Hilton, Holiday Inn, or Hyatt chain. Average Size $3.1 $3.8 • Pre-COVID LTV 58% Geography Total Balance Modified % M
Slide 14: Consumer Loan Modifications
Second Quarter 2020 Consumer Loan Modifications In response to COVID-19, we offered mortgage and consumer loan payment deferrals with no negative credit bureau reporting and have paused foreclosures/repossessions. Modification extensions are not currently being offered. Total Modified % of Bal Loan
Slide 15: SBA PPP
Second Quarter 2020 SBA PPP We dedicated substantial resources to the SBA PPP and approved over $547 million: Total Number of % of. Loan Size Balance Loans Loans. <$150,000 $98.0 2,213 75.5% <$350,000 83.2 364 12.4% >$350,000 366.4 354 12.1% Total $547.6 2,931 PPP loans impacted selected ratios as b
Slide 16: Interest Rate Environment
Second Quarter 2020 Interest Rate Environment We are asset sensitive and but expect core NIM to stabilize: Loans and Securities Deposit Growth Fixed Rate We experienced $810 million of growth in low-cost Floating deposit funding in Q2 2020 due to customers Rate conservatively holding cash deposits.
Slide 17: Capital
Second Quarter 2020 Capital We are well-capitalized and have sufficient excess capital: Key points: The Leverage Ratio and TCE / TA are impacted by PPP. The ex-PPP Leverage Ratio is 9.11% and TCE / TA is 8.83%. We are taking a prudent approach to capital management, given economic uncertainty.
Slide 18: Appendix: Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures
Second Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2020 2020 2019 Second First Second Quarter Quarter Quarter (1) Tangible Book Value (non-GAAP) Total shareholders' equity $1,135,777 $1,176,251 $964,953 Less: goodwill and other intangible assets (383,
Slide 19: Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures
Second Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2020 2020 2019 Second First Second Quarter Quarter Quarter (4) Efficiency Ratio (non-GAAP) Noninterest expense $43,478 $46,391 $40,352 Less: merger related expenses — (2,342) — Noninterest expense exc
Slide 20: Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures
Second Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: The following profitability metrics are adjusted to exclude a $58.7 million loss related to a customer 2020 2020 fraud in the second quarter ended June 30, 2020 and to exclude merger related expenses
Slide 21: Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: The following profitability metrics are adjusted to exclude a $58.7 million loss related to a customer 2020 2020 fraud in the second quarter ended June 30, 2020 and to exclude merger related expenses from the Second First DNB mer
Slide 22: Earnings Supplement
Second Quarter 2020 Earnings Supplement MEMBER FDIC