S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q1 2019 Earnings Presentation
21 slides from S&t Bancorp's earnings presentation, May 6, 2019
Slide 1: First Quarter 2019
First Quarter 2019 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 • $7.2 billion in assets (as of 03.31.19) • $1.4 billion market cap (as of 03.31.19) • Locations in 5 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 • Provide full complement of discipline and efficiency products and services • Organic growth • Access technology • Strategic and effective mergers • Access capital markets a
Slide 5: Performance
Performance Return on Average Assets Return on Average Equity 1.8% 1.6% 1.50% 15.0% 1.4% (2) 1.29% 1.22% (2) 11.60% (1) 12.5% 9.90% 1.2% 1.13% 1.08% Peer 8.67% Peer(1) 9.84% 1.0% 10.0% 8.94% 1.03 0.8% 7.5% 8.37 0.6% 5.0% 0.4% 0.2% 2.5% 0.0% 0.0% 2015 2016 2017 2018 1Q19 (4) 2015 2016 2017 2018 1Q19
Slide 6: Expenses
Expenses Noninterest Expense / Average Assets Efficiency Ratio(2) 3.0% 70% Peer(1) 2.5% 2.30% 2.17% 2.19% 2.10% 2.06% Peer(1) 2.0% 60% 55.86% 54.06% 53.55% 1.5% 51.77% 50.60% 1.0% 50% 0.5% 0.0% 40% 2015 2016 2017 2018 1Q19 2015 2016 2017 2018 1Q19 (1) BHCPR Peer Group 2: Bank Holding Companies with
Slide 7: Mergers and Expansion
Mergers and Expansion Western PA Central OH Central PA Northeast OH LPO opens in Pittsburgh , PA LPO opens in Columbus OH Integrity Bank acquired Branch opens in Cuyahoga Falls, OH November 16, 2016 January 21, 2014 March 4, 2015 April 22, 2019 Upstate NY Central OH Central OH LPO opens in Rochester
Slide 8: Asset Quality
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.00% 0.50% 0.81% 0.77% 0.76% 0.40% 0.36% 0.75% 0.70% 0.30% 0.25% 0.50% 0.42% Peer(1) 0.22% 0.18% 0.18% 0.20% 0.25% 0.10% Peer(1) 0.00% 0.00% (2) 2015 2016 2017 2018 1Q19 2015 2016 2017 2018 1Q19 (1) BHCPR Peer Group 2:
Slide 9: Markets S&T Operates in Regional Markets
Markets S&T Operates in 5 Regional Markets March 31, 2019 Deposits(1) Loans(1) Western PA $4,390 $3,594 Central PA 789 1,098 Northeast OH 70 407 Central OH 49 477 Upstate NY 12 362 Other(2) 523 — Total $5,833 $5,938 (1) Source: Internal Data (2) Includes Brokered, Trust & Official Deposits Dollars i
Slide 10: Loans
Loans Loan Mix As of 03.31.19 Amount % of Total CRE $2,902 50% C&I 1,513 25% Consumer 1,264 21% Construction 256 4% Total Portfolio Loans $5,935 100% Dollars in millions 9
Slide 11: Deposits
Deposits Deposit Mix As of 03.31.19 Amount % of Total DDA $1,423 24% Int Bear DDA 541 9% CD's 1,401 25% Money Market 1,701 29% Savings 767 13% Total Deposits $5,833 100% Dollars in millions 10
Slide 12: Rate Sensitivity
Rate Sensitivity Net Interest Margin Betas As of 03.31.19 1 1Q19vs Balance 3Q16 1Q19 3Q16 Beta 1Q19(2) Fed Funds 0.50% 2.50% 2.00% Net Interest Margin - FTE(1) 3.46% 3.71% 0.25% 12% Total Interest Earning Assets 3.87% 4.81% 0.94% 47% $6.7 Total Costing Liabilities 0.56% 1.55% 0.99% 49% 4.7 Securitie
Slide 13: Senior Management
Senior Management Senior Management Name Title Years in Banking Years with S&T Todd D. Brice CEO 33 33 David G. Antolik President & Chief Lending Officer 30 28 Mark Kochvar Chief Financial Officer 32 26 Ernest J. Draganza Chief Risk Officer 32 27 Patrick J. Haberfield Chief Credit Officer 31 8 David
Slide 14: Valuation: Stock Performance
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of 03.31.19) 1 YR 3 YR 5 YR 10 YR STBA 1.46 % 18.25% 13.62% 9.42% S&P 600 Bank (5.83)% 13.24% 9.00% 12.76% NASDAQ Bank (11.03)% 12.07% 7.96% 11.22% S&P 500 9.48 % 13.52% 10.90% 15.91% Source: Bloom
Slide 15: Performance Summary
Performance Performance Summary 2017 1Q19 2018 2017 Excludes DTA(3) 2016 2015 Net Income (in thousands) $22,928 $105,334 $72,968 $86,401 $71,392 $67,081 Diluted Earnings per Share $0.66 $3.01 $2.09 $2.47 $2.05 $1.98 Dividends Declared per Share $0.27 $0.99 $0.82 $0.77 $0.73 Total Assets (in millions
Slide 16: Record net income for 2018
billion billion “We are pleased to announce another successful year with record net income for 2018. We have great momentum as we move into 2019 thanks to our great team of bankers and our robust markets.” - Todd Bi Established in 1902 and experiencing growth throughout Pennsylvania, Ohio, and New Y
Slide 17: Increase in cash dividends paid in 2018
Sat Bancorp w. Increase in cash dividends paidin 2018 16
Slide 18: Financial Data: Income Statement and Balance Sheet
Financial Data Income Statement Balance Sheet 2017 1Q19 2018 2017 Excludes DTA(1) 2016 2015 1Q19 2018 2017 2016 2015 Securities $680,420 $684,872 $698,291 $693,487 $660,963 Net Interest Income $60,356 $234,438 $225,733 $203,259 $187,551 Interest-bearing Balances 116,820 155,489 61,965 87,201 41,639
Slide 19: Financial Data: Net Interest Margin and Loan Portfolio
Financial Data Net Interest Margin Loan Portfolio 1Q19 2018 2017 2016 2015 Dollars in thousands 1Q19 2018 2017 2016 2015 Commercial Securities - FTE 2.68% 2.62% 2.48% 2.41% 2.48% Commercial Real Estate $2,901,625 $2,921,832 $2,685,994 $2,498,476 $2,166,603 Loans - FTE 5.06% 4.72% 4.32% 4.08% 4.09% C
Slide 20: Appendix: Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Efficiency Ratio (YTD)(Non-GAAP) 1Q19 2018 2017 2016 2015 Efficiency ratio (YTD)(non-GAAP) 1Q19 2018 2017 2016 2015 Total Shareholders’ Equity (GAAP basis) $943,156 $935,761 $884,031 $841,956 $792,237 Noni
Slide 21: First Quarter 2019
First Quarter 2019 MEMBER FDIC