S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — FY2022 Earnings Presentation
31 slides from S&t Bancorp's earnings presentation, Feb 13, 2023
Slide 1: Full Year 2022
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer Full Year 2022
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 • $9.1 billion in assets • $7.2 billion in deposits • $7.2 billion in loans • $1.3 billion market cap • Stock symbol: STBA • 120 year anniversary Corporate Profile
Slide 4: Geographic Footprint
Geographic Footprint 4 Serving over 230,000 customers in Pennsylvania and Ohio Footprint comprises 9.6 million people and 215,000 businesses 1,200 team members providing award- winning customer satisfaction Akron Columbus Philadelphia Harrisburg Pittsburgh Indiana
Slide 5: Award-Winning Customer Satisfaction
Award-Winning Customer Satisfaction 5 J.D. Power Award S&T Bank ranked #1 in overall customer satisfaction in the Pennsylvania region in the 2022 U.S. Retail Banking Satisfaction Study by J.D. Power. We ranked #1 in the following areas: account offerings, convenience banking, people and trust. For J
Slide 6: Top Workplace Recognition
Top Workplace Recognition 6 Top Workplaces for Diversity, Equity and Inclusion (DE&I) S&T Bank was named a Top Workplace for Diversity, Equity and Inclusion (DE&I). The national award recognizes top workplaces that promote a welcoming and inclusive culture as well as programs that are made available
Slide 7: Strategic Path Forward Project "Our Shared Future"
7 Strategic Path Forward Project “Our Shared Future”
Slide 8: Strategic Drivers
8 ◦ NIM management ◦ Balance efficiency and infrastructure investments ◦ Data and analytics ◦ Credit risk management practices ◦ Process enhancements ◦ Strategic investments ◦ “Our Shared Future” culture and mindset ◦ Talent acquisition and retention ◦ Diversity, Equity & Inclusion ◦ Treasury Manage
Slide 9: Fourth Quarter Overview
9 Fourth Quarter Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $1.03 Net Income $40.3 million ROA 1.78% ROE 13.68% ROTE* 20.36% PPNR* 2.36% HIGHLIGHTS • Record net income and EPS for the second consecutive quarter • EPS and net income increased 8%
Slide 10: Full Year Overview
10 Full Year Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $3.46 Net Income $135.5 million ROA 1.48% ROE 11.47% ROTE* 17.02% PPNR* 1.93% HIGHLIGHTS • Record EPS and net income • EPS and net income increased more than 23% compared to 2021 • Solid r
Slide 11: Performance
PPNR / AVERAGE ASSETS * 2018 2019 2020 2021 2022 0.0% 0.4% 0.8% 1.2% 1.6% 2.0% 2.4% RETURN ON AVERAGE TANGIBLE EQUITY * 2018 2019 2020 2021 2022 0.0% 5.0% 10.0% 15.0% 20.0% RETURN ON AVERAGE EQUITY 2018 2019 2020 2021 2022 0.0% 5.0% 10.0% 15.0% RETURN ON AVERAGE ASSETS 2018 2019 2020 2021 2022 0.0%
Slide 12: 4Q22 vs 3Q22: Balance Sheet
4Q22 VS 3Q22: Balance Sheet • Loans increased $87 million, or 4.9% annualized • Consumer growth of $80 million, or 17.6% • Deposits declined $191 million due to the interest rate environment Dollars in millions 12 Cash & Int Bear Bal Securities Loans Deposits ($300) ($200) ($100) $0 $100 4Q22 3Q22 V
Slide 13: Asset Quality
Asset Quality ACL 4Q22 VS 3Q22: Dollars in millions 13 ASSET QUALITY TRENDS • Modest ACL build • NPAs decreased 23%, or $6.7 million • NPA/total loans plus OREO of 0.31% compared to 0.41% 3Q22 and 1.13% 4Q21 • Minimal net charge-off activity in 2022
Slide 14: Net Interest Income
• Net interest income increased $5.3 million, or 6%, due to higher interest rates • NIM expanded 29 bps to 4.33% Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 14 Loan Rate Sensitivity Mix 50% 22% 28% Floating Adjustable Fixed
Slide 15: Noninterest Income
4Q22 4Q22 vs 3Q22 4Q22 vs 4Q21 Debit and Credit Card $4.4 ($0.4) ($0.1) Service Charges 4.3 0.0 0.3 Wealth 3.0 (0.2) (0.3) Mortgage 0.3 (0.1) (1.2) Security Gain 0.0 (0.2) 0.0 Other 3.6 1.7 0.8 Noninterest Income $15.6 $0.8 ($0.5) Noninterest Income 15Dollars in millions Increased due to $2.0 millio
Slide 16: Noninterest Expense
4Q22 4Q22 vs 3Q22 4Q22 vs 4Q21 Salaries & Benefits $28.0 $1.3 $0.9 Data Processing 4.2 0.0 (0.5) Occupancy 3.8 0.4 0.2 FF&E 3.0 0.1 0.1 Professional Services 2.1 0.2 0.4 Other Taxes 1.8 0.2 0.3 Marketing 1.4 0.0 0.1 FDIC 0.4 (0.2) (0.7) Other 6.6 (0.3) 0.3 Noninterest Expense $51.3 $1.7 $1.1 Increas
Slide 17: Loan Mix
Loan Mix Our loan portfolio is well-diversified: Dollars in millions 17 Amount % of Total CRE $3,128 44% Consumer 1,938 27% C&I 1,719 24% Construction 399 6% Total $7,184 100%
Slide 18: Deposit Mix
Deposit Mix We have a solid core deposit profile: Dollars in millions 18 Amount % of Total DDA $2,589 36% MM 1,731 24% Savings 1,118 15% CDs 935 13% Int Bear DDA 847 12% Total $7,220 100% Amount % of Total Personal $4,172 58% Business 3,048 42% Total $7,220 100%
Slide 19: Capital
Capital Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 19 TCE / TA* • Capital levels remain strong • TCE / TA increased 18 basis points • Extension of share repurchase plan
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 2022 2021 2020 2019 2018 Dollars in thousands Total Securities $1,002,778 $910,793 $773,693 $784,283 $684,872 Interest-Bearing Deposits 138,149 857,192 158,903 124,491 82,740 Total Net Loans 7,082,645 6,902,936 7,126,776 7,080,184 5,888,023 Other Assets 886,995 817,60
Slide 22: Net Interest Margin
Net Interest Margin 2022 2021 2020 2019 2018 Securities - FTE 2.25% 2.18% 2.49% 2.64% 2.62% Loans - FTE 4.50% 3.84% 4.09% 4.95% 4.72% Total Interest-earning Assets - FTE 4.06% 3.37% 3.87% 4.71% 4.48% Interest-bearing Deposits 0.40% 0.20% 0.66% 1.40% 1.01% Borrowings 3.01% 1.49% 1.56% 2.76% 2.19% Tot
Slide 23: Financial Data: Loan Portfolio
Financial Data 23 Loan Portfolio 2022 2021 2020 2019 2018 Dollars in thousands Commercial Real Estate $3,128,187 $3,236,653 $3,244,974 $3,416,518 $2,921,832 Commercial and Industrial 1,718,976 1,728,969 1,954,453 1,720,833 1,493,416 Commercial Construction 399,371 440,962 474,280 375,445 257,197 Tot
Slide 24: Financial Data: Asset Quality
Financial Data 24 Asset Quality 2022 2021 2020 2019 2018 Dollars in thousands Total Nonaccrual Loans $19,052 $66,291 $146,774 $54,057 $46,073 Nonaccrual Loans/Total Loans 0.27% 0.95% 2.03% 0.76% 0.77% Nonperforming Assets/Total Loans + OREO 0.31% 1.13% 2.06% 0.81% 0.83% Net Charge-offs/Average Loans
Slide 25: Financial Data: Capital
Financial Data 25 Capital 2022 2021 2020 2019 2018 Tier 1 Leverage 11.06% 9.74% 9.43% 10.29% 10.05% Common Equity Tier 1 – Risk-Based Capital 12.81% 12.03% 11.33% 11.43% 11.38% Tier 1 – Risk-Based Capital 13.21% 12.43% 11.74% 11.84% 11.72% Total – Risk-Based Capital 14.73% 13.79% 13.44% 13.22% 13.21
Slide 26: Definitions of GAAP to Non-GAAP Financial Measures
4Q22 Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $159,765 Plus: amortization of intangibles (annualized), net of tax 1,144 Net income before amortization of intangibles (annualized) $160,909 Average total shareholders' equity $1,168,023 Less: average goodwill a
Slide 27: Tangible Common Equity/Tangible Assets and Efficiency Ratio
4Q22 3Q22 2Q22 1Q22 4Q21 Tangible Common Equity/Tangible Assets (non-GAAP) Total shareholders' equity $1,184,659 $1,153,181 $1,178,358 $1,184,950 $1,206,454 Less: goodwill and other intangible assets, net of deferred tax liability (377,673) (377,961) (378,259) (378,557) (378,871) Tangible common equ
Slide 28: Net Income Excluding Nonrecurring Items
2020 2019 Excludes Fraud Excludes Merger Exp Net Income Excluding Nonrecurring items Net income $21,040 $98,234 Nonrecurring items 58,671 11,350 Tax effect of nonrecurring items (12,321) (2,106) Adjusted net income (non-GAAP) $67,390 $107,478 Diluted Earnings Per Share Adjusted net income (non-GAAP)
Slide 29: Return on Average Tangible Shareholders' Equity
2022 2021 2020 2020 2019 2019 2018 Excludes Fraud Excludes Merger Exp Return on Average Tangible Shareholders' Equity (non-GAAP) Net income $135,520 $110,343 $21,040 $21,040 $98,234 $98,234 $105,334 Nonrecurring items — — — 58,671 — 11,350 — Tax effect of nonrecurring items — — — (12,321) — (2,106)
Slide 30: PPNR/Average Assets and TCE/TA
2022 2021 2020 2019 2019 2018 Excludes Merger Exp PPNR/Average Assets (Non-GAAP) Income before taxes $168,930 $135,668 $21,039 $117,360 $117,360 $123,179 Plus: merger related expenses — — — — 11,350 — Plus: provision for credit losses 8,366 16,215 131,424 14,873 14,873 14,995 Total adjusted income b
Slide 31: Full Year 2022
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer Full Year 2022