S&T BANCORP, INC. ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Published

INDIANA, Pa., Jan. 25, 2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced fourth quarter and full year 2023 earnings. Net income of $37.0 million, or $0.96 per diluted share, for the fourth quarter of 2023 compared to net income of $33.5 million, or $0.87 per diluted share, for the third quarter of 2023 and net income of $40.3 million, or $1.03 per diluted share, for the fourth quarter of 2022.

S&T Bancorp, Inc. Logo. (PRNewsFoto/S&T Bancorp, Inc.)

Net income increased 6.83% to a record $144.8 million for 2023 compared to net income of $135.5 million for 2022. Earnings per diluted share, or EPS, increased 8.09% to a record $3.74 compared to $3.46 per diluted share in 2022.

Fourth Quarter of 2023 Highlights:

  • Strong return metrics with return on average assets (ROA) of 1.55%, return on average equity (ROE) of 11.79% and return on average tangible equity (ROTE) (non-GAAP) of 17.00% compared to ROA of 1.42%, ROE of 10.84% and ROTE (non-GAAP) of 15.78% for the third quarter of 2023.
  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.97% compared to 1.99% for the third quarter of 2023.
  • Net interest margin (NIM) (FTE) (non-GAAP) was solid at 3.92% compared to 4.09% in the third quarter of 2023.
  • Total portfolio loans increased $137.4 million, or 7.25% annualized, compared to September 30, 2023.
  • Total deposits increased $298.9 million with $98.2 million of growth in customer deposits and $200.7 million of brokered deposits compared to September 30, 2023.
  • Net charge-offs of $3.6 million, or 0.19% of average loans (annualized), compared to net charge-offs of $3.7 million, or 0.20% of average loans (annualized), in the third quarter of 2023.

Full Year 2023 Highlights:

  • Record EPS and net income for the second consecutive full year.
  • Net income increased 6.83% to $144.8 million and EPS increased 8.09% to $3.74 per share compared to 2022.
  • Strong return metrics with ROA of 1.56%, ROE of 11.80% and ROTE (non-GAAP) of 17.15% compared to ROA of 1.48%, ROE of 11.47% and ROTE (non-GAAP) of 17.02% for the prior year.
  • PPNR (non-GAAP) was 2.12% compared to 1.93% in the prior year.
  • Strong NIM (FTE) (non-GAAP) of 4.13% compared to 3.76% for the prior year.
  • Net interest income increased $33.6 million, or 10.65%, compared to 2022.
  • Total portfolio loans increased $469.4 million, or 6.53%, compared to December 31, 2022.
  • Nonperforming assets remained low at $23.0 million, or 0.30% of total loans plus other real estate owned, or OREO compared to $22.1 million, or 0.31% at December 31, 2022.
  • Net charge-offs of $13.2 million, or 0.18% of average loans, compared to net charge-offs of $2.6 million, or 0.04% of average loans, in the prior year.

"It was a great year for S&T with record net income and earnings per share for the second year in a row," said Chris McComish, chief executive officer. "Our highly engaged teams that go above and beyond every day to provide an award-winning customer experience are fundamental to our success. For the quarter, I am pleased that we achieved balanced loan and deposit growth, while delivering excellent returns and efficiency. Our people-forward purpose positions us well for continued growth."

Fourth Quarter of 2023 Results (three months ended December 31, 2023)

Net Interest Income

Net interest income was $85.1 million for the fourth quarter of 2023 compared to $87.4 million for the third quarter of 2023. The decrease of $2.3 million in net interest income was driven by higher funding costs, partially offset by higher yields on interest-earning assets. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) was 3.92% compared to 4.09% in the prior quarter. The yield on total average loans increased 4 basis points to 6.19% compared to 6.15% in the third quarter of 2023. Average loan balances increased $151.4 million to $7.6 billion compared to $7.4 billion in the third quarter of 2023. Total interest-bearing deposit costs increased 49 basis points to 2.53% compared to 2.04% in the third quarter of 2023. Higher interest-bearing deposit costs primarily related to growth in higher costing deposit products combined with a continued shift in the mix of deposits. Average money market balances increased $247.4 million and average CD balances increased $150.7 million compared to the third quarter of 2023. Average borrowings decreased $151.5 million to $523.8 million compared to $675.3 million in the third quarter of 2023 due to increased deposits.

Asset Quality

The provision for credit losses was $0.9 million for the fourth quarter of 2023 compared to $5.5 million in the third quarter of 2023. The decrease in the provision for credit losses primarily related to a lower allowance for credit losses driven by improvement in loan risk ratings compared to the prior quarter. Net loan charge-offs were $3.6 million for the fourth quarter of 2023 compared to net loan charge-offs of $3.7 million in the third quarter of 2023. The allowance for credit losses was relatively stable at $108.0 million, or 1.41% of total portfolio loans, as of December 31, 2023 compared to $108.2 million, or 1.44%, at September 30, 2023. Nonperforming assets to total loans plus OREO remained low at 0.30% at December 31, 2023 compared to 0.22% at September 30, 2023.

Noninterest Income and Expense

Noninterest income increased $5.9 million to $18.1 million in the fourth quarter of 2023 compared to $12.2 million in the third quarter of 2023. The increase mainly related to higher other income from a gain on OREO of $3.3 million and from valuation adjustments on our commercial loan swaps and a nonqualified benefit plan of $2.2 million compared to the third quarter of 2023. Noninterest expense increased $3.4 million to $56.2 million compared to $52.8 million in the third quarter of 2023. The increase was primarily due to higher salaries and employee benefits of $3.4 million mainly related to increases in medical, incentives and a valuation adjustment on a nonqualified benefit plan compared to the third quarter of 2023.

Financial Condition

Total assets were $9.6 billion at December 31, 2023 compared to $9.5 billion at September 30, 2023. Total portfolio loans increased $137.4 million, or 7.25% annualized, compared to September 30, 2023. The consumer loan portfolio increased $84.5 million with growth in residential mortgages of $77.0 million compared to September 30, 2023. The commercial loan portfolio increased $52.9 million with growth in commercial real estate of $71.3 million offset by a decrease in commercial construction of $25.2 million compared to September 30, 2023. Total deposits increased $298.9 million compared to September 30, 2023. CDs increased $93.8 million mainly due to growth from new and existing customers and a continued shift from other deposit types compared to September 30, 2023. Money Market increased $326.4 million mainly due to growth from new and existing customers, shifts from other deposit types and an increase in brokered money markets of $200.7 million compared to September 30, 2023. Total borrowings decreased $215.1 million to $503.6 million compared to $718.7 million at September 30, 2023 primarily related to deposit growth.

S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2023 Results (twelve months ended December 31, 2023)

Net income increased 6.83% to a record $144.8 million compared to net income of $135.5 million for 2022. Earnings per diluted share, or EPS, increased 8.09% to a record $3.74 compared to $3.46 per diluted share in 2022.

Net interest income increased $33.6 million, or 10.65% compared to 2022 primarily due to the impact of higher interest rates which drove an increase in yields on earning assets and higher costing liabilities. NIM (FTE) (non-GAAP) expanded 37 basis points to 4.13% compared to 3.76% for 2022. The yield on total average loans increased 154 basis points to 6.04% compared to 4.50% in 2022. Total interest-bearing deposit costs increased 152 basis points to 1.92% compared to 0.40% in 2022. Total borrowing cost increased 258 basis points to 5.59% compared to 3.01% in 2022.

Noninterest income decreased $0.6 million compared to the prior year. Mortgage banking income decreased $1.1 million due to a decline in loan sale activity caused by higher interest rates and a shift to holding originated mortgage loans on the balance sheet. Debit and credit card fees decreased $0.8 million and service charges on deposit accounts decreased $0.6 million due to decreased customer activity. Offsetting these decreases was an increase in other noninterest income of $2.5 million compared to the prior year primarily related to valuation adjustments on our commercial loan swaps and a nonqualified benefit plan. Noninterest expense increased $13.6 million compared to 2022. Salaries and employee benefits increased $8.2 million primarily due to higher salaries related to inflationary wage pressure, the acquisition of new talent and a change in valuation adjustment on a nonqualified benefit plan. The efficiency ratio (non-GAAP) for 2023 was 51.35% compared to 52.34% for 2022 due to higher revenue.

Nonperforming assets remained low at $23.0 million compared to $22.1 million in the prior year resulting in a nonperforming assets to total loans plus OREO ratio of 0.30% compared to 0.31% at December 31, 2022. The provision for credit losses increased $9.5 million to $17.9 million for 2023 compared to $8.4 million for 2022 primarily due to higher net charge-offs. Net loan charge-offs were $13.2 million for 2023 compared to $2.6 million for 2022. The allowance for credit losses was 1.41% of total portfolio loans as of December 31, 2023 and December 31, 2022.

Dividend

S&T's Board of Directors approved a $0.33 per share cash dividend on January 24, 2024. This is an increase of $0.01, or 3.13%, compared to a $0.32 per share cash dividend declared in the same period in the prior year. The dividend is payable February 22, 2024 to shareholders of record on February 8, 2024. Dividends declared in 2023 increased $0.09, or 7.50%, to $1.29 compared to $1.20 for 2022.

Conference Call

S&T will host its fourth quarter 2023 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 25, 2024. To access the webcast, go to S&T Bancorp, Inc.'s Investor Relations webpage www.stbancorp.com. After the live presentation, the webcast will be archived at www.stbancorp.com for 12 months.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.6 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. S&T Bank was named by Forbes as a 2023 Best-in-State Bank. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.

Forward-Looking Statements

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, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," "believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve," and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; environmental, social and governance practices and disclosures, including climate change, hiring practices, the diversity of the work force, and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2022, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, pre-provision net revenue to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures 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 other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands, except per share data)

Quarter

Quarter

Quarter

INTEREST AND DIVIDEND INCOME

Loans, including fees

$117,443

$114,258

$96,220

Investment Securities:

Taxable

8,491

7,857

6,507

Tax-exempt

210

213

233

Dividends

562

631

248

Total Interest and Dividend Income

126,706

122,959

103,208

INTEREST EXPENSE

Deposits

32,921

24,910

11,067

Borrowings, junior subordinated debt securities and other

8,676

10,662

3,083

Total Interest Expense

41,597

35,572

14,150

NET INTEREST INCOME

85,109

87,387

89,058

Provision for credit losses

943

5,498

3,176

Net Interest Income After Provision for Credit Losses

84,166

81,889

85,882

NONINTEREST INCOME

Debit and credit card

4,540

4,690

4,421

Service charges on deposit accounts

4,129

4,060

4,341

Wealth management

3,050

3,003

3,016

Mortgage banking

280

294

309

Other

6,062

131

3,556

Total Noninterest Income

18,061

12,178

15,643

NONINTEREST EXPENSE

Salaries and employee benefits

30,949

27,521

27,998

Data processing and information technology

4,523

4,479

4,159

Furniture, equipment and software

3,734

3,125

2,975

Occupancy

3,598

3,671

3,806

Professional services and legal

1,968

1,965

2,138

Other taxes

1,870

1,831

1,842

Marketing

1,435

1,741

1,348

FDIC insurance

1,049

1,029

437

Other noninterest expense

7,077

7,437

6,572

Total Noninterest Expense

56,203

52,799

51,275

Income Before Taxes

46,024

41,268

50,250

Income tax expense

8,977

7,800

9,980

Net Income

$37,047

$33,468

$40,270

Per Share Data

Shares outstanding at end of period

38,232,806

38,244,309

38,999,733

Average shares outstanding - diluted

38,379,493

38,336,016

38,944,575

Diluted earnings per share

$0.96

$0.87

$1.03

Dividends declared per share

$0.33

$0.32

$0.31

Dividend yield (annualized)

3.95 %

4.73 %

3.63 %

Dividends paid to net income

34.04 %

36.55 %

29.85 %

Book value

$33.57

$31.99

$30.38

Tangible book value (1)

$23.72

$22.14

$20.69

Market value

$33.42

$27.08

$34.18

Profitability Ratios (Annualized)

Return on average assets

1.55 %

1.42 %

1.78 %

Return on average shareholders' equity

11.79 %

10.84 %

13.68 %

Return on average tangible shareholders' equity(2)

17.00 %

15.78 %

20.36 %

Pre-provision net revenue / average assets(3)

1.97 %

1.99 %

2.36 %

Efficiency ratio (FTE)(4)

54.12 %

52.67 %

48.73 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Twelve Months Ended December 31,

(dollars in thousands, except per share data)

2023

2022

INTEREST AND DIVIDEND INCOME

Loans, including fees

$443,124

$314,866

Investment Securities:

Taxable

31,611

23,743

Tax-exempt

852

1,579

Dividends

2,314

563

Total Interest and Dividend Income

477,901

340,751

INTEREST EXPENSE

Deposits

92,836

19,907

Borrowings, junior subordinated debt securities and other

35,655

5,061

Total Interest Expense

128,491

24,968

NET INTEREST INCOME

349,410

315,783

Provision for credit losses

17,892

8,366

Net Interest Income After Provision for Credit Losses

331,518

307,417

NONINTEREST INCOME

Net gain on sale of securities

198

Debit and credit card

18,248

19,008

Service charges on deposit accounts

16,193

16,829

Wealth management

12,186

12,717

Mortgage banking

1,164

2,215

Other

9,829

7,292

Total Noninterest Income

57,620

58,259

NONINTEREST EXPENSE

Salaries and employee benefits

111,462

103,221

Data processing and information technology

17,437

16,918

Occupancy

14,814

14,812

Furniture, equipment and software

12,912

11,606

Professional services and legal

7,823

8,318

Other taxes

6,813

6,620

Marketing

6,488

5,600

FDIC insurance

4,122

2,854

Other noninterest expense

28,463

26,797

Total Noninterest Expense

210,334

196,746

Income Before Taxes

178,804

168,930

Income tax expense

34,023

33,410

Net Income

$144,781

$135,520

Per Share Data

Average shares outstanding - diluted

38,655,405

39,030,934

Diluted earnings per share

$3.74

$3.46

Dividends declared per share

$1.29

$1.20

Dividends paid to net income

34.33 %

34.64 %

Profitability Ratios (annualized)

Return on average assets

1.56 %

1.48 %

Return on average shareholders' equity

11.80 %

11.47 %

Return on average tangible shareholders' equity(5)

17.15 %

17.02 %

Pre-provision net revenue / average assets(6)

2.12 %

1.93 %

Efficiency ratio (FTE)(7)

51.35 %

52.34 %

 

S&T Bancorp, Inc.

 Consolidated Selected Financial Data

Unaudited

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

ASSETS

Cash and due from banks

$233,612

$238,453

$210,009

Securities available for sale, at fair value

970,391

955,262

1,002,778

Loans held for sale

153

257

16

Commercial loans:

Commercial real estate

3,357,603

3,286,272

3,128,187

Commercial and industrial

1,642,106

1,635,354

1,718,976

Commercial construction

363,284

388,470

399,371

Total Commercial Loans

5,362,993

5,310,096

5,246,534

Consumer loans:

Residential mortgage

1,461,097

1,384,133

1,116,528

Home equity

650,666

649,122

652,066

Installment and other consumer

114,897

115,379

124,896

Consumer construction

63,688

57,188

43,945

Total Consumer Loans

2,290,348

2,205,822

1,937,435

Total Portfolio Loans

7,653,341

7,515,918

7,183,969

Allowance for credit losses

(107,966)

(108,206)

(101,340)

Total Portfolio Loans, Net

7,545,375

7,407,712

7,082,629

Federal Home Loan Bank and other restricted stock, at cost

25,082

38,576

23,035

Goodwill

373,424

373,424

373,424

Other assets

403,489

452,393

418,676

Total Assets

$9,551,526

$9,466,077

$9,110,567

LIABILITIES

Deposits:

Noninterest-bearing demand

$2,221,942

$2,276,009

$2,588,692

Interest-bearing demand

825,787

868,624

846,653

Money market

1,941,842

1,615,445

1,731,521

Savings

950,546

974,940

1,118,511

Certificates of deposit

1,581,652

1,487,879

934,593

Total Deposits

7,521,769

7,222,897

7,219,970

Borrowings:

Short-term borrowings

415,000

630,000

370,000

Long-term borrowings

39,277

39,396

14,741

Junior subordinated debt securities

49,358

49,343

54,453

Total Borrowings

503,635

718,739

439,194

Other liabilities

242,677

300,909

266,744

Total Liabilities

8,268,081

8,242,545

7,925,908

SHAREHOLDERS' EQUITY

Total Shareholders' Equity

1,283,445

1,223,532

1,184,659

Total Liabilities and Shareholders' Equity

$9,551,526

$9,466,077

$9,110,567

Capitalization Ratios

Shareholders' equity / assets

13.44 %

12.93 %

13.00 %

Tangible common equity / tangible assets(9)

9.88 %

9.31 %

9.24 %

Tier 1 leverage ratio

11.21 %

11.12 %

11.06 %

Common equity tier 1 capital

13.37 %

13.11 %

12.81 %

Risk-based capital - tier 1

13.69 %

13.43 %

13.21 %

Risk-based capital - total

15.27 %

15.01 %

14.73 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks

$149,985

5.92 %

$144,303

4.93 %

$79,881

4.04 %

Securities, at fair value

956,107

2.75 %

964,928

2.64 %

991,774

2.43 %

Loans held for sale

57

7.25 %

207

6.70 %

491

6.19 %

Commercial real estate

3,312,509

5.86 %

3,243,056

5.83 %

3,118,874

5.14 %

Commercial and industrial

1,621,091

7.29 %

1,646,572

7.22 %

1,724,480

6.15 %

Commercial construction

381,294

7.55 %

373,111

7.80 %

387,737

6.64 %

Total Commercial Loans

5,314,894

6.42 %

5,262,739

6.41 %

5,231,091

5.58 %

Residential mortgage

1,417,891

4.81 %

1,332,913

4.66 %

1,077,114

4.25 %

Home equity

650,721

6.94 %

645,949

6.80 %

648,340

5.44 %

Installment and other consumer

114,720

9.15 %

115,111

8.52 %

126,570

6.97 %

Consumer construction

62,850

5.22 %

52,783

4.89 %

41,385

3.81 %

Total Consumer Loans

2,246,182

5.66 %

2,146,756

5.52 %

1,893,409

4.83 %

Total Portfolio Loans

7,561,076

6.19 %

7,409,495

6.15 %

7,124,500

5.38 %

Total Loans

7,561,133

6.19 %

7,409,702

6.15 %

7,124,991

5.38 %

Total other earning assets

37,502

7.23 %

42,645

6.97 %

24,043

5.32 %

Total Interest-earning Assets

8,704,727

5.81 %

8,561,578

5.74 %

8,220,689

5.01 %

Noninterest-earning assets

768,942

763,243

763,927

Total Assets

$9,473,669

$9,324,821

$8,984,616

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand

$836,771

1.03 %

$868,782

0.91 %

$836,585

0.24 %

Money market

1,843,338

2.98 %

1,595,964

2.34 %

1,792,162

1.60 %

Savings

957,903

0.57 %

996,999

0.47 %

1,127,987

0.22 %

Certificates of deposit

1,533,266

4.02 %

1,382,532

3.54 %

941,774

1.14 %

Total Interest-bearing Deposits

5,171,278

2.53 %

4,844,277

2.04 %

4,698,508

0.93 %

Short-term borrowings

435,060

5.75 %

585,196

5.65 %

148,370

4.22 %

Long-term borrowings

39,341

4.53 %

39,458

4.47 %

14,801

2.55 %

Junior subordinated debt securities

49,350

8.25 %

50,649

8.16 %

54,443

6.21 %

Total Borrowings

523,751

5.90 %

675,303

5.77 %

217,614

4.60 %

Total Other Interest-bearing Liabilities

65,547

5.40 %

62,584

5.33 %

60,156

3.72 %

Total Interest-bearing Liabilities

5,760,576

2.86 %

5,582,164

2.53 %

4,976,278

1.13 %

Noninterest-bearing liabilities

2,466,063

2,517,752

2,840,315

Shareholders' equity

1,247,030

1,224,905

1,168,023

Total Liabilities and Shareholders' Equity

$9,473,669

$9,324,821

$8,984,616

Net Interest Margin(10)

3.92 %

4.09 %

4.33 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Twelve Months Ended December 31,

(dollars in thousands)

2023

2022

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks

$141,954

5.17 %

$378,323

0.78 %

Securities, at fair value

976,095

2.61 %

1,017,471

2.25 %

Loans held for sale

121

6.71 %

1,115

4.38 %

Commercial real estate

3,216,593

5.70 %

3,182,821

4.39 %

Commercial and industrial

1,665,630

7.10 %

1,706,861

4.90 %

Commercial construction

381,838

7.55 %

401,780

4.68 %

Total Commercial Loans

5,264,061

6.27 %

5,291,462

4.57 %

Residential mortgage

1,282,078

4.62 %

980,134

4.10 %

Home equity

648,525

6.65 %

611,134

4.24 %

Installment and other consumer

117,807

8.43 %

119,703

6.00 %

Consumer construction

51,146

4.81 %

33,922

3.53 %

Total Consumer Loans

2,099,556

5.46 %

1,744,893

4.26 %

Total Portfolio Loans

7,363,617

6.04 %

7,036,355

4.50 %

Total Loans

7,363,738

6.04 %

7,037,470

4.50 %

Total other earning assets

37,988

7.04 %

12,694

4.54 %

Total Interest-earning Assets

8,519,775

5.64 %

8,445,958

4.06 %

Noninterest-earning assets

756,481

721,080

Total Assets

$9,276,256

$9,167,038

LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand

$844,588

0.72 %

$918,222

0.11 %

Money market

1,677,584

2.33 %

1,909,208

0.63 %

Savings

1,020,314

0.43 %

1,121,818

0.10 %

Certificates of deposit

1,302,478

3.30 %

993,722

0.58 %

Total Interest-bearing deposits

4,844,964

1.92 %

4,942,970

0.40 %

Securities sold under repurchase agreements

— %

35,836

0.10 %

Short-term borrowings

500,421

5.44 %

40,013

4.15 %

Long-term borrowings

31,706

4.20 %

19,090

2.15 %

Junior subordinated debt securities

52,215

7.87 %

54,420

4.40 %

Total Borrowings

584,342

5.59 %

149,359

3.01 %

Total Other Interest-bearing Liabilities

58,135

5.12 %

15,163

3.69 %

Total Interest-bearing Liabilities

5,487,441

2.34 %

5,107,492

0.49 %

Noninterest-bearing liabilities

2,561,483

2,877,758

Shareholders' equity

1,227,332

1,181,788

Total Liabilities and Shareholders' Equity

$9,276,256

$9,167,038

Net Interest Margin(8)

4.13 %

3.76 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Nonaccrual Loans

Commercial loans:

% Loans

% Loans

% Loans

Commercial real estate

$7,267

0.22 %

$1,735

0.05 %

$7,323

0.23 %

Commercial and industrial

3,243

0.20 %

3,468

0.21 %

2,974

0.17 %

Commercial construction

4,960

1.37 %

384

0.10 %

384

0.10 %

Total Nonaccrual Commercial Loans

15,470

0.29 %

5,587

0.11 %

10,681

0.20 %

Consumer loans:

Residential mortgage

4,579

0.31 %

4,139

0.30 %

6,063

0.54 %

Home equity

2,567

0.39 %

2,617

0.40 %

2,031

0.31 %

Installment and other consumer

330

0.29 %

334

0.29 %

277

0.22 %

Total Nonaccrual Consumer Loans

7,476

0.33 %

7,090

0.32 %

8,371

0.43 %

Total Nonaccrual Loans

$22,946

0.30 %

$12,677

0.17 %

$19,052

0.27 %

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Loan Charge-offs (Recoveries)

Charge-offs

$3,880

$4,077

$1,718

Recoveries

(260)

(367)

(808)

Net Loan Charge-offs

$3,620

$3,710

$910

Net Loan Charge-offs (Recoveries)

Commercial loans:

Commercial real estate

$1,690

($13)

$412

Commercial and industrial

949

3,389

150

Commercial construction

451

Total Commercial Loan Charge-offs

3,090

3,376

562

Consumer loans:

Residential mortgage

(3)

(11)

51

Home equity

148

71

136

Installment and other consumer

385

274

161

Total Consumer Loan Charge-offs

530

334

348

Total Net Loan Charge-offs

$3,620

$3,710

$910

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Twelve Months Ended December 31,

(dollars in thousands)

2023

2022

Loan Charge-offs (Recoveries)

Charge-offs

$24,638

$11,617

Recoveries

(11,456)

(9,022)

Net Loan Charge-offs

$13,182

$2,595

Net Loan Charge-offs (Recoveries)

Commercial loans:

Customer fraud

($9,329)

$—

Commercial real estate

622

768

Commercial and industrial

19,582

435

Commercial construction

449

(1)

Total Commercial Loan Charge-offs

11,324

1,202

Consumer loans:

Residential mortgage

(6)

186

Home equity

238

232

Installment and other consumer

1,626

975

Total Consumer Loan Charge-offs

1,858

1,393

Total Net Loan Charge-offs

$13,182

$2,595

 

2023

2023

2022

Fourth

Third

Fourth

(dollars in thousands)

Quarter

Quarter

Quarter

Asset Quality Data

Nonaccrual loans

$22,947

$12,677

$19,052

OREO

75

3,715

3,065

Total nonperforming assets

23,022

16,392

22,117

Troubled debt restructurings (nonaccruing)*

2,894

Troubled debt restructurings (accruing)*

8,891

Total troubled debt restructurings*

11,785

Nonaccrual loans / total loans

0.30 %

0.17 %

0.27 %

Nonperforming assets / total loans plus OREO

0.30 %

0.22 %

0.31 %

Allowance for credit losses / total portfolio loans

1.41 %

1.44 %

1.41 %

Allowance for credit losses / nonaccrual loans

471 %

854 %

532 %

Net loan charge-offs (recoveries)

$3,620

$3,710

$910

Net loan charge-offs (recoveries) (annualized) / average loans

0.19 %

0.20 %

0.05 %

*TDR's were eliminated as of January 1, 2023 as part of implementing ASU 2022-02, Financial Instruments Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.

 

Twelve Months Ended December 31,

(dollars in thousands)

2023

2022

Asset Quality Data

Net loan charge-offs

$13,182

$2,595

Net loan charge-offs / average loans

0.18 %

0.04 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

2023

2023

2022

Fourth

Third

Fourth

(dollars and shares in thousands)

Quarter

Quarter

Quarter

(1) Tangible Book Value (non-GAAP)

Total shareholders' equity

$1,283,445

$1,223,532

$1,184,659

Less: goodwill and other intangible assets, net of deferred tax liability

(376,631)

(376,883)

(377,673)

Tangible common equity (non-GAAP)

$906,814

$846,649

$806,986

Common shares outstanding

38,233

38,244

39,000

Tangible book value (non-GAAP)

$23.72

$22.14

$20.69

Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts.

(2) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income (annualized)

$146,980

$132,779

$159,765

Plus: amortization of intangibles (annualized), net of tax

1,003

1,034

1,144

Net income before amortization of intangibles (annualized)

$147,983

$133,813

$160,909

Average total shareholders' equity

$1,247,030

$1,224,905

$1,168,023

Less: average goodwill and other intangible assets, net of deferred tax liability

(376,761)

(377,020)

(377,857)

Average tangible equity (non-GAAP)

$870,269

$847,885

$790,166

Return on average tangible shareholders' equity (non-GAAP)

17.00 %

15.78 %

20.36 %

Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.

(3) Pre-provision Net Revenue / Average Assets (non-GAAP)

Income before taxes

$46,024

$41,268

$50,250

   Plus: Provision for credit losses

943

5,498

3,176

Total

$46,967

$46,766

$53,426

Total (annualized) (non-GAAP)

$186,336

$185,538

$211,961

Average assets

$9,473,669

$9,324,821

$8,984,616

Pre-provision Net Revenue / Average Assets (non-GAAP)

1.97 %

1.99 %

2.36 %

Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.

(4) Efficiency Ratio (non-GAAP)

Noninterest expense

$56,203

$52,799

$51,275

Net interest income per consolidated statements of net income

$85,109

$87,387

$89,058

Plus: taxable equivalent adjustment

683

674

532

Net interest income (FTE) (non-GAAP)

85,792

88,061

89,590

Noninterest income

18,061

12,178

15,643

Net interest income (FTE) (non-GAAP) plus noninterest income

$103,853

$100,239

$105,233

Efficiency ratio (non-GAAP)

54.12 %

52.67 %

48.73 %

 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Twelve Months Ended December 31,

(dollars in thousands)

2023

2022

(5) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income

$144,781

$135,520

Plus: amortization of intangibles, net of tax

1,042

1,199

Net income before amortization of intangibles

$145,823

$136,719

Average total shareholders' equity

$1,227,332

$1,181,788

Less: average goodwill and other intangible assets, net of deferred tax liability

(377,157)

(378,303)

Average tangible equity (non-GAAP)

$850,175

$803,485

Return on average tangible shareholders' equity (non-GAAP)

17.15 %

17.02 %

Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.

(6) Pre-provision Net Revenue / Average Assets (non-GAAP)

Income before taxes

$178,804

$168,930

Plus: Provision for credit losses

17,892

8,366

Total

$196,696

$177,296

Average assets

$9,276,256