Attached files
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| 8-K - FORM 8-K - S&T BANCORP INC | d263162d8k.htm |
 Third Quarter 2011
Exhibit 99.1 |
 Todd
Brice President and
Chief Executive Officer
Mark Kochvar
Sr. EVP and
Chief Financial Officer |
 3
Forward Looking Statement
and Risk Factor
•
This presentation contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. Forward- looking statements
include, among others, statements regarding trends, strategies, plans, beliefs,
intentions, expectations, goals and opportunities. Forward looking
statements are typically identified by words or phrases such as believe,
expect, anticipate, intend, estimate, assume, strategy, plan, outlook,
outcome, continue, remain, trend and variations of such words and similar
expressions,
or
future
or
conditional
verbs
such
as
will,
would,
should,
could,
may
or
similar
expressions. Actual results and performance could differ materially from
those anticipated by these forward-looking statements. Factors
that could cause such a difference include, but are not limited to, general
economic conditions, changes in interest rates, deposit flows, loan demand,
asset quality, including real estate and other collateral values, and
competition. •
S&T cautions that these forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. These
forward-looking statements speak only as of the date hereof, and
S&T assumes no duty to update forward-looking statements. Subsequent
written
or
oral
statements
attributable
to
S&T
or
persons
acting
on
its
behalf
are
expressly
qualified in their entirety by the cautionary statements contained herein and
those in S&T’s reports previously and subsequently filed with the
Securities and Exchange Commission. |
 4
Non-GAAP Financial Measures
•
In
addition
to
the
results
of
operations
presented
in
accordance
with
Generally
Accepted
Accounting Principles (GAAP), S&T management uses and this presentation
contains or references, certain non-GAAP financial measures, such as
net interest income on a fully taxable equivalent basis, that S&T
believes provide information useful to investors in understanding our
underlying operational performance and our business and performance trends as they
facilitate comparisons with the performance of others in the financial
services industry. Although S&T believes
that
these
non-GAAP
financial
measures
enhance
investors’
understanding
of
S&T’s
business and performance, these non-GAAP financial measures should not be
considered an alternative to GAAP. The non-GAAP financial
measures contained therein should be read in conjunction with the audited
financial statements and analysis as presented in the Annual Report on Form
10-K as well as the unaudited financial statements and analyses as presented in the
respective Quarterly Reports on Forms 10-Q for S&T Bancorp, Inc. and
subsidiaries. |
 5
S&T Bancorp Corporate Profile |
 Investor Highlights
•
Historically High Performing Bank
•
Experienced Management Team
•
Relationship Banking Model
•
Well-Positioned for Growth
6 |
 7
*
2011 peer banks per 2011 proxy statement
* *
Annualized
Return on Assets
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2006
2007
2008
2009
2010
2011 YTD**
PA Banks
Peer Bank Median*
STBA |
 8
Return on Equity
*
2011 peer banks per 2011 proxy statement
* *
Annualized
-5%
0%
5%
10%
15%
20%
-5%
0%
5%
10%
15%
20%
2006
2007
2008
2009
2010
2011 YTD**
PA Banks
Peer Bank Median*
STBA |
 9
Marcellus Shale Distribution
Pennsylvania
S&T Bank Regional Footprint
S&T Bank Locations
Marcellus Shale Formation |
 Marcellus Activity in S&T’s Market Area
Permits
Issued
Wells
Drilled
2009
283
114
2010
358
170
2011
*
456
213
*
January –
October 2011
Source: Pennsylvania DEP
10 |
 11
|
 12
12
Quarterly Summary
2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Net Income
$12.2
$13.4
$10.9
Diluted Earnings per Common Share
$0.44
$0.48
$0.39
Common Return on Average Assets
*
1.20%
1.31%
1.06%
Common Return on Average Equity
*
8.12%
9.15%
7.61%
Dollars in millions
*
Annualized |
 13
13
Income Statement
Dollars in millions
*
Refer to appendix for reconciliation of Non-GAAP financial measures
2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Net Interest Income –
FTE
*
$34.9
$35.6
$38.1
Noninterest Income
10.4
11.2
12.3
Total Revenue
45.3
46.8
50.4
Noninterest Expense
(24.2)
(25.6)
(24.9)
Security (Losses) Gains
(0.1)
(0.1)
-
Provision for Loan Losses
(1.5)
(1.1)
(8.3)
Net Income Before Taxes
19.5
20.0
17.2
Taxes
(5.7)
(5.0)
(4.7)
Preferred Stock Dividends
(1.6)
(1.6)
(1.6)
Net Income Available to Common
Shareholders
$ 12.2
$13.4
$10.9
Diluted Earnings per Common Share
$ 0.44
$0.48
$0.39 |
 14
14
Balance Sheet
Dollars in millions
Sept. 30,
2011
June 30,
2011
Sept. 30,
2010
Securities
$359
$358
$301
Loans, Net
3,085
3,145
3,315
Other
648
555
482
Total Assets
$4,092
$4,058
$4,098
Deposits
$3,271
$3,254
$3,304
Borrowings
165
164
169
Other Liabilities
52
47
50
Equity
604
593
575
Total Liabilities & Equity
$4,092
$4,058
$4,098 |
 15
15
Loan Portfolio
Dollars in millions
Sept. 30,
2011
June 30,
2011
Sept. 30,
2010
Consumer
Home Equity
$ 423
$ 432
$ 451
Residential Mortgage
351
346
362
Installment and Other Consumer
68
70
76
Construction
3
3
7
Total Consumer
845
851
896
Commercial
Commercial Real Estate
1,414
1,442
1,437
Commercial & Industrial
682
691
728
Construction
191
208
306
Total Commercial
2,287
2,341
2,471
Total Portfolio Loans
3,132
3,192
3,367
Total Loans Held for Sale
4
11
4
Total Loans
$3,136
$3,203
$ 3,371 |
 16
16
Asset Quality
*
YTD September 30, 2011 Annualized
Sept. 30,
December 31,
2011
2010
2009
2008
2007
Nonperforming Loans / Total Loans
1.89%
1.90%
2.67%
1.19%
0.60%
Nonperforming Assets / Total Loans Plus
OREO
2.08
2.07
2.80
1.21
0.62
Net
Charge-offs
/
Average
Loans
*
0.54
1.11
1.60
0.31
0.17
Loan Loss Reserve / Total Loans
1.64
1.53
1.75
1.20
1.23
Loan Loss Reserve / Nonperforming Loans
87
80
66
101
204 |
 17
Nonperforming Loans
83
2.15
49.2
Total Commercial
15
4.56
8.7
Construction
10
0.88
6.0
Commercial & Industrial
58
2.44
34.5
Commercial Real Estate
Commercial
17
1.18
10.0
Total Consumer
1
5.82
0.2
Construction
-
-
-
Installment and Other Consumer
11
1.92
6.7
Residential Mortgage
5
0.73
$ 3.1
Home Equity
% of
Total NPL
Consumer
% NPL
Sept. 30,
2011
Total Nonperforming Loans
100
1.89
$ 59.2
Nonperforming
Loans
(NPL)
are
loans
where
collection
of
interest
or
principal
is
doubtful
or
generally
when
interest
or
principal
payments are 90 days or more past due.
Dollars in millions
Specific reserves $2.9
USDA Guarantee $6.8
17 |
 18
Construction & CRE by Type
Type
Sept. 30,
2011
% of Total
Sept. 30,
2010
Change
Retail/Strip Malls
$ 286
18
$ 299
$(13)
Miscellaneous
243
15
273
(30)
Offices
217
14
228
(11)
Residential Rental Properties
199
12
218
(19)
Hotels
186
11
196
(10)
Healthcare/Education
108
7
92
16
Manuf/Industrial/Warehouse
99
6
129
(30)
RE Develop –
CL
98
6
103
(5)
Flex/Mixed Used
96
6
112
(16)
RE Develop –
Residential
73
5
93
(20)
Total
$1,605
100
$1,743
($138)
18
Dollars in millions |
 19
Construction & CRE –
NPL by Type
Type
Sept. 30,
2011
% NPL
% of
Total NPL
Retail/Strip Malls
$ 2.4
0.83
6
Miscellaneous
16.0
6.60
37
Offices
5.1
2.36
12
Residential Rental Properties
3.4
1.70
8
Hotels
1.1
0.59
2
Healthcare/Education
-
-
-
Manuf/Industrial/Warehouse
5.2
5.22
12
RE Develop –
CL
1.7
1.69
4
Flex/Mixed Use
-
-
-
RE Develop –
Residential
8.3
11.42
19
Total
$43.2
2.69
100
19
Dollars in millions |
 20
Net Interest Margin
2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Securities -
FTE
2.39%
2.76%
3.82%
Loans -
FTE
4.85
4.89
5.10
Total Earning Assets
4.51
4.63
4.99
Deposits
0.93
0.97
1.08
Borrowings
2.97
3.10
2.90
Total Costing Liabilities
1.06
1.10
1.21
Net Interest Margin –
FTE
*
3.76
3.85
4.09
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 21
Noninterest Income
Dollars in millions
2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Community Banking
$ 6.3
$ 5.9
$ 6.0
Wealth Management
2.0
2.1
1.9
Insurance
2.2
2.2
2.1
Letters of Credit / Loan
0.6
0.7
0.6
Mortgage Banking
(0.5)
0.2
1.6
Other
(0.2)
0.1
0.1
Total
$10.4
$11.2
$12.3 |
 22
Securities
Sept. 30,
2011
June 30,
2011
Sept. 30,
2010
Agencies
$153
$142
$100
Agency CMO
70
71
45
Agency MBS
52
55
49
Municipals
53
58
73
Equities
12
12
11
FHLB Stock
19
20
23
Total
$359
$358
$301
All securities are classified as available-for sale
Dollars in millions |
 23
Deposits
Dollars in millions
Sept. 30,
2011
June 30,
2011
Sept. 30,
2010
Noninterest-bearing Demand
$ 817
$ 802
$ 744
Interest-bearing Demand
292
284
277
Money Market
255
237
247
Savings
773
753
746
Certificates of Deposit < $100K
745
769
823
Certificates Of Deposit > $100K
389
409
468
Total
$3,271
$3,254
$3,305 |
 24
24
Capital Ratios
Sept. 30,
2011
June 30,
2011
Sept. 30,
2010
Well-
Capitalized
Leverage
**
11.80%
11.49%
10.92%
5.00%
Tier 1 –
Risk-Based Capital
**
14.95
14.31
12.97
6.00
Total –
Risk-Based Capital
**
18.51
17.83
16.35
10.00
Tangible Common Equity /
Tangible Assets
*
8.30
8.08
7.53
NA
**
Includes CPP of $108.7 million
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 25
S&T
Bancorp
Capital
*
*
Total Risk-Based Capital
Well Capitalized
+3.69%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20% |
 26
|
 2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Interest Income per Consolidated Statements of Income
$40.9
$41.8
$45.3
Adjustment to Fully Taxable-equivalent Basis
1.0
1.0
1.1
Interest Income Adjusted to Fully Taxable-equivalent Basis
41.9
42.8
46.4
Interest Expense per Consolidated Statements of Income
7.0
7.2
8.3
Net Interest Income Adjusted to Fully Taxable-
equivalent Basis (non-GAAP)
$34.9
$35.6
$38.1
APPENDIX –
Non-GAAP Measures
Dollars in millions |
 2011
2011
2010
Third
Quarter
Second
Quarter
Third
Quarter
Tangible Common Equity/Tangible Assets
Common Equity/Assets (GAAP Basis)
12.14%
11.98%
11.43%
Effect of Excluding Intangible Assets
-3.84%
-3.90%
-3.90%
Tangible Common Equity/Tangible Assets
8.30%
8.08%
7.53%
APPENDIX –
Non-GAAP Measures /cont./
Dollars in millions |