S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — FY2018 Earnings Presentation
20 slides from S&t Bancorp's earnings presentation, Feb 12, 2019
Slide 1: S&T Bancorp Full Year 2018
Sai Bancorp. Full Year 2018
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 • $7.3 billion in assets (as of 12.31.18) • $1.3 billion market cap (as of 12.31.18) • Locations in 5 markets • Stock symbol: STBA 2
Slide 4: S&T Bancorp 2018 highlights
Sai Bancorp. Asset Size fl Market Cap IM stock Price Selpancorp.. $7.3 §S1.3 $37.84 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 Brice
Slide 5: Increase in cash dividends paid in 2018
Sai Bancorprn. 21% Increase in cash dividends paidin 2018
Slide 6: 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 7: 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% 11.60% 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 2018 2014 2015 2016 2017 2018 Retur
Slide 8: 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% 2.06% 60% 55.86% 2.0% 54.06% 51.77% 1.5% 50.60% 50% 1.0% 0.5% 0.0% 40% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (1) BHCPR Peer Group 2: Bank Holding Companies
Slide 9: 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 10: Asset Quality
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.00% 0.60% 0.76% 0.77% 0.50% 0.70% 0.75% 0.40% Peer(1) 0.30% 0.25% 0.22% 0.50% 0.42% 0.18% 0.18% 0.20% 0.32% 0.10% 0.25% 0.00% Peer(1) 0.00% 0.00% -0.10% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 (1) BHCPR Peer
Slide 11: Loans
Loans Loan Mix As of 12.31.18 Amount % of Total CRE $2,922 50% C&I 1,493 25% Consumer 1,274 21% Construction 257 4% Total Portfolio Loans $5,946 100% Dollars in Millions 10
Slide 12: Deposits
Deposits Deposit Mix As of 12.31.18 Amount % of Total DDA $1,421 25% Int Bear DDA 574 10% CD's 1,482 26% Money Market 1,412 25% Savings 785 14% Total Deposits $5,674 100% Dollars in Millions 11
Slide 13: Rate Sensitivity
Rate Sensitivity Net Interest Margin Betas As of 12.31.18 4Q18 vs Balance 3Q16 4Q18 3Q16 Beta 4Q18(2) Fed Funds 0.50% 2.28% 1.78% Net Interest Margin - FTE(1) 3.46% 3.65% 0.19% 11% Total Interest Earning Assets 3.87% 4.65% 0.78% 44% $6.7 Total Costing Liabilities 0.56% 1.41% 0.85% 48% 4.8 Securities
Slide 14: 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 31 26 Patrick J. Haberfield Chief Credit Officer 31 8 David
Slide 15: Valuation Stock Performance
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of 12.31.18) 1 YR 3 YR 5 YR 10 YR STBA (2.66)% 9.76% 11.16% 3.55% S&P 600 Bank (10.25)% 9.13% 7.55% 7.05% NASDAQ Bank (16.09)% 6.84% 6.85% 7.19% S&P 500 (4.37)% 9.24% 8.48% 13.10% Source: Bloomberg
Slide 16: Performance Summary
Performance Performance Summary 2017 2018 2017 Excludes DTA(2) 2016 2015 2014 Net Income (in $ thousands) $105,334 $72,968 $86,401 $71,392 $67,081 $57,910 Diluted Earnings per Share $3.01 $2.09 $2.47 $2.05 $1.98 $1.95 Dividends Declared per Share $0.99 $0.82 $0.77 $0.73 $0.68 Total Assets (in $ mill
Slide 17: Financial Data
Financial Data Income Statement Balance Sheet 2017 2018 2017 Excludes DTA(1) 2016 2015 2014 2018 2017 2016 2015 2014 Securities $684,872 $698,291 $693,487 $660,963 $640,273 Net Interest Income $234,438 $225,733 $203,259 $187,551 $148,042 Interest-bearing Balances 155,489 61,965 87,201 41,639 57,048
Slide 18: Financial Data
Financial Data Net Interest Margin Loan Portfolio 2018 2017 2016 2015 2014 Dollars in thousands 2018 2017 2016 2015 2014 Commercial Securities - FTE 2.62% 2.48% 2.41% 2.48% 2.58% Commercial Real Estate $2,921,832 $2,685,994 $2,498,476 $2,166,603 $1,682,236 Loans - FTE 4.72% 4.32% 4.08% 4.09% 4.06% C
Slide 19: Appendix – Non-GAAP Measures
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Efficiency Ratio (YTD)(Non-GAAP) 2018 2017 2016 2015 2014 Efficiency ratio (YTD)(non-GAAP) 2018 2017 2016 2015 2014 Total Shareholders’ Equity (GAAP basis) $935,761 $884,031 $841,956 $792,237 $608,389 Noni
Slide 20: S&T Bancorp Full Year 2018
Sai Bancorp. Full Year 2018