Attached files
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| 8-K - FORM 8-K - S&T BANCORP INC | d484342d8k.htm |
 Exhibit 99.1 |
 |
 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. 3 |
 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
Corporate Profile |
 6
*
2012 peer banks per 2012 proxy statement
Common Return on Assets |
 7
Common Return on Equity
*
2012 peer banks per 2012 proxy statement |
 8
Summary
2012
2011
2010
Net Income Available to Common Shareholders
$34.2
$39.7
$37.3
Diluted Earnings per Common Share
$1.18
$1.41
$1.34
Common Return on Average Assets
0.79%
0.97%
0.90%
Common Return on Average Equity
6.62%
6.78%
6.58%
Dollars in millions |
 9
4 Lines of Business |
 Commercial Banking
•
34 commercial lenders
•
14 community lenders
•
Privately held companies with sales up to
$150 million
•
$1-7 million preferred facility
•
Growing pipeline
•
Adding producers
10 |
 Retail Banking
•
Over 100,000 Households
•
59 branches
•
Average branch size of $61.5 million
•
Home Center
•
92% of customers highly satisfied
•
Over 70,000 customers enrolled in online banking
•
Over 9,500 customers enrolled in Mobile Banking
11 |
 Wealth Management
•
$1.7 billion AUM
•
3 Divisions
–
S&T Trust
–
S&T Financial Services
–
RIA/Stewart Capital
•
Annual revenue of $9.8 million
•
Adding producers
12 |
 Insurance
•
Purchased Evergreen Insurance in 2002
•
Full service agency
–
Commercial P&C (65%)
–
Group Life and Health (20%)
–
Personal Lines (15%)
•
Annual revenue of $5.2 million
13 |
 14
Quarterly Summary
Dollars in millions, except per share data
*
Annualized
2012
2012
2011
Fourth
Quarter
Third
Quarter
Fourth
Quarter
Net Income Available to Common
Shareholders
$9.5
$12.6
$ 9.3
Diluted Earnings per Common Share
$0.32
$ 0.43
$0.33
Common Return on Average Assets
0.86%
1.15%
0.91%
Common Return on Average Equity
7.05%
9.56%
6.41%
*
* |
 15
Income Statement
Dollars in millions, except per share data
*
Refer to appendix for reconciliation of Non-GAAP financial measures
2012
2012
2011
Fourth
Quarter
Third
Quarter
Fourth
Quarter
Net Interest Income –
FTE
*
$35.4
$34.9
$35.1
Noninterest Income
11.5
12.5
11.6
Total Revenue
46.9
47.4
46.7
Noninterest Expense
(29.7)
(31.0)
(26.7)
Security Gains (Losses)
-
2.2
-
Provision for Loan Losses
(4.2)
(2.3)
(2.3)
Net Income Before Taxes
13.0
16.3
17.7
Taxes
(3.5)
(3.7)
(5.5)
Preferred Stock Dividends/Amortization
-
-
(2.9)
Net Income Available to Common
Shareholders
$ 9.5
$12.6
$9.3
Diluted Earnings per Common Share
$ 0.32
$0.43
$ 0.33 |
 16
Balance Sheet
Dollars in millions
December 31,
2012
September 30,
2012
December 31,
2011
Securities
$ 468
$ 432
$ 376
Interest Bearing Balances
257
285
209
Loans, Net
3,323
3,236
3,084
Other
479
469
451
Total Assets
$4,527
$4,422
$4,120
Deposits
$3,638
$3,594
$3,336
Borrowings
263
206
228
Other Liabilities
89
88
65
Equity
537
534
491
Total Liabilities & Equity
$4,527
$4,422
$4,120 |
 17
Loan Portfolio
Dollars in millions
December 31,
2012
September 30,
2012
December 31,
2011
Consumer
Home Equity
$ 431
$ 447
$ 411
Residential Mortgage
427
410
359
Installment and Other Consumer
74
75
67
Construction
3
2
3
Total Consumer
935
934
840
Commercial
Commercial Real Estate
1,452
1,439
1,415
Commercial & Industrial
792
748
686
Construction
168
158
189
Total Commercial
2,412
2,345
2,290
Total Portfolio Loans
3,347
3,279
3,130
Total Loans Held for Sale
22
3
3
Total Loans
$ 3,369
$3,282
$ 3,133 |
 18
Asset Quality
*
QTD annualized
December 31,
September 31,
December 31,
2012
2012
2011
Nonperforming Loans / Total Loans
1.63%
2.01%
1.79%
Nonperforming Assets / Total Loans
Plus OREO
1.66
2.06
1.92
Net Charge-offs / Average Loans*
0.49
0.33
0.64
Loan Loss Reserve / Total Loans
1.38
1.41
1.56
Loan Loss Reserve / Nonperforming
Loans
85
70
87 |
 19
Nonperforming Loans
45.8
1.81
43.8
Total Commercial
6.5
4.03
6.8
Construction
7.6
0.81
6.4
Commercial
& Industrial
31.7
2.10
30.6
Commercial
Real Estate
Commercial
10.3
1.20
11.2
Total Consumer
0.2
8.95
0.2
Construction
-
0.05
-
Installment
and Other Consumer
7.2
1.70
7.3
Residential
Mortgage
$ 2.9
0.85
$ 3.7
Home Equity
Dec. 31,
2011
Consumer
% NPL
Dec. 31,
2012
Total Nonperforming Loans
$56.1
1.64%
$55.0
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
$ 5.5
$ 2.2
Specific Reserves |
 20
Net Interest Margin
2012
2012
2011
Fourth
Quarter
Third
Quarter
Fourth
Quarter
Securities -
FTE
2.76%
2.89%
3.36%
Interest Bearing Deposits-FTE
0.29
0.28
0.28
Loans -
FTE
4.44
4.52
4.83
Total Earning Assets-FTE
3.97
4.00
4.45
Deposits
0.53
0.59
0.83
Borrowings
2.16
1.92
2.43
Total Costing Liabilities
0.64
0.70
0.93
Net Interest Margin –
FTE
*
3.51%
3.50%
3.79%
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 21
Noninterest Income
Dollars in millions
2012
2012
2011
Fourth
Quarter
Third
Quarter
Fourth
Quarter
Service Charges on Deposit Accounts
$ 2.6
$ 2.6
$ 2.6
Debit and Credit Card
2.7
3.0
2.7
Mortgage Banking
0.7
0.8
0.8
Wealth Management
2.4
2.4
2.0
Insurance
1.7
2.4
1.8
Other
1.4
1.3
1.7
Total
$11.5
$12.5
$11.6 |
 22
Securities
Dec.31,
2012
Sept. 30,
2012
Dec. 31,
2011
Agencies
$212
$193
$143
Agency CMO
58
60
65
Agency MBS
61
54
49
Municipals
113
99
89
Equities
10
9
12
FHLB Stock
14
17
18
Total
$468
$432
$376
All securities are classified as available-for sale
Dollars in millions |
 23
Deposits
Dollars in millions
Dec. 31,
2012
Sept. 30,
2012
Dec. 31,
2011
Noninterest-bearing Demand
$ 961
$ 928
$ 819
Interest-bearing Demand
317
322
283
Money Market
361
317
278
Savings
966
949
803
Certificates of Deposit < $100K
665
737
795
Certificates Of Deposit > $100K
368
341
358
Total
$3,638
$3,594
$3,336 |
 24
Capital Ratios
Dec. 31,
2012
Sept. 30,
2012
Dec. 31,
2011
Well-
Capitalized
Leverage
9.31%
9.27%
9.17%
5.00%
Tier 1 –
Risk-Based Capital
11.98
12.01
11.63
6.00
Total –
Risk-Based Capital
15.39
15.45
15.20
10.00
Tangible Common Equity /
Tangible Assets
*
8.20
8.32
8.09
NA
*
Refer to appendix for reconciliation of Non-GAAP financial measures
|
 Growth –
Merger & Acquisition Activity
•
2012 -
Gateway Bank of Pennsylvania
•
2012 -
Mainline Bancorp
•
2008 –
IBT Bancorp
•
2002 -
Peoples Financial Corp
•
1997 -
Peoples Bank of Unity
•
1991 -
Atlantic Financial Savings Bank
•
1991 -
Vanguard Savings Bank
25 |
 26
Merger Overview
S&T Bancorp, Inc.
Mainline Bancorp, Inc.
Gateway Bank of PA
Total Assets
$4,526.7
$236.2
$132.3
Gross Loans
3,369.1
129.5
99.1
Total Deposits
3,638.4
206.0
105.4
Total Equity
537.4
21.1
16.0
Total Branches
49
8
2
S&T Bancorp as of 12/31/12; Mainline and Gateway as of merger dates, 3/09/12 and
8/10/12 respectively. In millions, except per share data
|
 27
The Right Size
•
Big Enough to:
–
Provide full complement of products and services
–
Access technology
–
Access Capital Markets
–
Attract talent
–
Expand –
Mergers and Acquisitions/DeNovo
•
Small Enough to:
–
Stay close to our customers
–
Understand our markets
–
Be responsive |
 2012
Fourth
Quarter
2012
Third
Quarter
2011
Fourth
Quarter
Interest Income per Consolidated Statements of Income
$38.9
$38.8
$40.2
Adjustment to Fully Taxable-equivalent Basis
1.1
1.1
1.1
Interest Income Adjusted to Fully Taxable-equivalent Basis
40.0
39.9
41.3
Interest Expense per Consolidated Statements of Income
4.6
5.0
6.2
Net Interest Income Adjusted to Fully Taxable-
equivalent Basis (non-GAAP)
$35.4
$34.9
$35.1
APPENDIX –
Non-GAAP Measures
Dollars in millions
28 |
 2012
2012
2011
Fourth
Quarter
Third
Quarter
Fourth
Quarter
Securities
2.34%
2.44%
2.92%
Adjustment to Fully Taxable-equivalent Basis
0.42
0.45
0.44
Securities Adjusted to Fully Taxable-equivalent Basis
2.76
2.89
3.36
Interest-bearing Deposits
0.29
0.28
0.28
Adjustment to Fully Taxable-equivalent Basis
0.00
0.00
0.00
Interest-bearing Deposits Adjusted to Fully Taxable-equivalent Basis
0.29
0.28
0.28
Loans
4.40
4.48
4.79
Adjustment to Fully Taxable-equivalent Basis
0.04
0.04
0.04
Loans Adjusted to Fully Taxable-equivalent Basis
4.44
4.52
4.83
Total Earning Assets
3.89
3.92
4.37
Adjustment to Fully Taxable-Equivalent Basis
0.08
0.08
0.08
Total Earning Assets Adjusted to Fully Taxable-equivalent Basis
3.97
4.00
4.45
Net Interest Margin
3.43
3.41
3.69
Adjustment to Fully Taxable-Equivalent Basis
0.08
0.09
0.10
Net Interest Margin Adjusted to Fully Taxable-equivalent Basis
3.51
3.50
3.79
APPENDIX –
Non-GAAP Measures /cont./
29 |
 Dec. 31,
2012
Sept. 30,
2012
Dec. 31,
2011
Tangible Common Equity/Tangible Assets
Common Equity/Assets (GAAP Basis)
11.87%
12.08%
11.91%
Effect of Excluding Intangible Assets
-3.67%
-3.76%
-3.82%
Tangible Common Equity/Tangible Assets
8.20%
8.32%
8.09%
APPENDIX –
Non-GAAP Measures /cont./
30 |
 |