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S&T Bancorp Inc. Announces First Quarter 2024 Results

INDIANA, Pa., April 18, 2024 /PRNewswire/ -- S&T Bancorp Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $31.2 million, or $0.81 per diluted share, for the first quarter of 2024 compared to net income of $37.0 million, or $0.96 per diluted share, for the fourth quarter of 2023 and net income of $39.8 million, or $1.02 per diluted share, for the first quarter of 2023.

S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)
S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)

First Quarter of 2024 Highlights:

  • Solid return metrics with return on average assets (ROA) of 1.32%, return on average equity (ROE) of 9.74% and return on average tangible equity (ROTE) (non-GAAP) of 13.85% compared to ROA of 1.55%, ROE of 11.79% and ROTE (non-GAAP) of 17.00% for the fourth quarter of 2023.

  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.76% compared to 1.97% for the fourth quarter of 2023.

  • Net interest margin (NIM) (FTE) (non-GAAP) remains strong at 3.84% compared to 3.92% in the fourth quarter of 2023.

  • Total deposits increased $78.6 million to $7.6 billion at March 31, 2024 compared to $7.5 billion at December 31, 2023, representing the third consecutive quarter of deposit growth.

  • Nonperforming assets remain low at $33.3 million, or 0.44% of total loans plus other real estate owned, or OREO, compared to $23.0 million, or 0.30% of total loans plus OREO, at December 31, 2023.

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"I am very pleased that we had a solid start to the year with excellent return metrics," said Chief Executive Officer Chris McComish. "Our team continues to execute on strategies that have driven our strong results and deposit growth. The deep customer relationships built by our dedicated teams are at the core of our success. And for a second year in a row, we were named to the 2024 Forbes list of America's Best Midsize Employers, based on survey feedback from our highly engaged employees. I am confident that our people-forward approach will continue to show positive results."

Net Interest Income

Net interest income was $83.5 million for the first quarter of 2024 compared to $85.1 million for the fourth quarter of 2023. The decrease of $1.6 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) remains strong at 3.84% compared to 3.92% in the prior quarter. The yield on total average loans increased 6 basis points to 6.25% compared to 6.19% in the fourth quarter of 2023. Average loan balances increased $103.4 million to $7.7 billion compared to $7.6 billion in the fourth quarter of 2023. Total interest-bearing deposit costs increased 24 basis points to 2.77% compared to 2.53% in the fourth 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 $76.7 million and average CD balances increased $105.8 million compared to the fourth quarter of 2023. Average borrowings decreased $26.9 million to $496.9 million compared to $523.8 million in the fourth quarter of 2023 due to higher average deposit balances.

Asset Quality

The allowance for credit losses was $104.8 million, or 1.37% of total portfolio loans, as of March 31, 2024, compared to $108.0 million, or 1.41%, at December 31, 2023. The provision for credit losses was $2.6 million for the first quarter of 2024 compared to $0.9 million in the fourth quarter of 2023. The increase in the provision for credit losses primarily related to higher net charge-offs offset by a lower level of required reserve compared to the fourth quarter of 2023. Net loan charge-offs were $6.6 million for the first quarter of 2024 compared to net loan charge-offs of $3.6 million in the fourth quarter of 2023. Nonperforming assets to total loans plus OREO remained low at 0.44% as of March 31, 2024, compared to 0.30% at December 31, 2023.

Noninterest Income and Expense

Noninterest income decreased $5.3 million to $12.8 million in the first quarter of 2024 compared to $18.1 million in the fourth quarter of 2023. The decrease is primarily due to a return to more normal levels of noninterest income in the first quarter of 2024 after experiencing unusual items in the fourth quarter of 2023 including a gain on OREO of $3.3 million and valuation adjustments on our commercial loan swaps of $0.3 million and on a nonqualified benefit plan of $0.8 million. Customer activity was also seasonally slower in the first quarter of 2024 resulting in lower debit card fees and service charges. Noninterest expense decreased $1.7 million to $54.5 million compared to $56.2 million in the fourth quarter of 2023. The decrease was primarily due to lower salaries and employee benefits of $1.4 million mainly related to a decrease in medical expense compared to the fourth quarter of 2023.

Financial Condition

Total assets were $9.5 billion at March 31, 2024, compared to $9.6 billion at December 31, 2023. Total portfolio loans remained unchanged at $7.7 billion compared to December 31, 2023. The consumer loan portfolio increased $40.8 million with growth in residential mortgages of $39.4 million compared to December 31, 2023. The commercial loan portfolio decreased $38.1 million primarily due to a decline in commercial and industrial of $45.0 million compared to December 31, 2023. Total deposits increased $78.6 million , or 4.2% annualized, compared to December 31, 2023. CDs increased $162.8 million compared to December 31, 2023, due to the replacement of $101.0 million of brokered money market funds with a like amount of brokered CDs and customers shifting from other deposit types. Total borrowings decreased $130.1 million to $373.5 million compared to $503.6 million at December 31, 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.

Conference Call

S&T will host its first quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, April 18, 2024. To access the webcast, go to S&T Bancorp Inc.'s investor relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.

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

S&T Bancorp Inc. is a $9.5 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; any remaining uncertainties with 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; ESG 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 and geopolitical tensions and conflicts between nations.

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, 2023, 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, PPNR 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



2024


2023


2023



First


Fourth


First


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME







Loans, including fees

$118,577


$117,443


$102,724


Investment Securities:







Taxable

8,595


8,491


7,457


Tax-exempt

193


210


214


Dividends

389


562


508


Total Interest and Dividend Income

127,754


126,706


110,903









INTEREST EXPENSE







Deposits

36,662


32,921


14,903


Borrowings, junior subordinated debt securities and other

7,615


8,676


7,209


Total Interest Expense

44,277


41,597


22,112









NET INTEREST INCOME

83,477


85,109


88,791


Provision for credit losses

2,627


943


922


Net Interest Income After Provision for Credit Losses

80,850


84,166


87,869









NONINTEREST INCOME







Net gain on sale of securities

3




Debit and credit card

4,235


4,540


4,373


Service charges on deposit accounts

3,828


4,129


4,076


Wealth management

3,042


3,050


2,948


Mortgage banking

277


280


301


Other

1,445


6,062


1,492


Total Noninterest Income

12,830


18,061


13,190









NONINTEREST EXPENSE







Salaries and employee benefits

29,512


30,949


27,601


Data processing and information technology

4,954


4,523


4,258


Occupancy

3,870


3,598


3,835


Furniture, equipment and software

3,472


3,734


2,861


Marketing

1,943


1,435


1,853


Other taxes

1,871


1,870


1,790


Professional services and legal

1,720


1,968


1,821


FDIC insurance

1,049


1,049


1,012


Other noninterest expense

6,129


7,077


6,668


Total Noninterest Expense

54,520


56,203


51,699


Income Before Taxes

39,160


46,024


49,360


Income tax expense

7,921


8,977


9,561


Net Income

$31,239


$37,047


$39,799









Per Share Data







Shares outstanding at end of period

38,233,280


38,232,806


38,998,156


Average shares outstanding - diluted

38,418,085


38,379,493


39,032,062


Diluted earnings per share

$0.81


$0.96


$1.02


Dividends declared per share

$0.33


$0.33


$0.32


Dividend yield (annualized)

4.11 %


3.95 %


4.07 %


Dividends paid to net income

40.39 %


34.04 %


31.10 %


Book value

$33.87


$33.57


$31.48


Tangible book value (1)

$24.03


$23.72


$21.81


Market value

$32.08


$33.42


$31.45









Profitability Ratios (Annualized)







Return on average assets

1.32 %


1.55 %


1.77 %


Return on average shareholders' equity

9.74 %


11.79 %


13.38 %


Return on average tangible shareholders' equity(2)

13.85 %


17.00 %


19.61 %


Pre-provision net revenue / average assets(3)

1.76 %


1.97 %


2.23 %


Efficiency ratio (FTE)(4)

56.21 %


54.12 %


50.42 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2024


2023


2023



First


Fourth


First


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks

$207,462


$233,612


$244,152


Securities available for sale, at fair value

970,728


970,391


998,708


Loans held for sale


153


81


Commercial loans:







Commercial real estate

3,367,722


3,357,603


3,145,079


Commercial and industrial

1,597,119


1,642,106


1,709,612


Commercial construction

360,086


363,284


393,658


Total Commercial Loans

5,324,927


5,362,993


5,248,349


Consumer loans:







Residential mortgage

1,500,499


1,461,097


1,189,220


Home equity

645,780


650,666


649,590


Installment and other consumer

108,232


114,897


119,843


Consumer construction

76,596


63,688


44,062


Total Consumer Loans

2,331,107


2,290,348


2,002,715


Total Portfolio Loans

7,656,034


7,653,341


7,251,064


Allowance for credit losses

(104,802)


(107,966)


(108,113)


Total Portfolio Loans, Net

7,551,232


7,545,375


7,142,951


Federal Home Loan Bank and other restricted stock, at cost

13,703


25,082


30,262


Goodwill

373,424


373,424


373,424


Other assets

422,554


403,489


403,864


Total Assets

$9,539,103


$9,551,526


$9,193,442









LIABILITIES







Deposits:







Noninterest-bearing demand

$2,188,927


$2,221,942


$2,468,638


Interest-bearing demand

848,729


825,787


841,130


Money market

1,882,157


1,941,842


1,599,814


Savings

936,056


950,546


1,068,274


Certificates of deposit

1,744,478


1,581,652


1,175,238


Total Deposits

7,600,347


7,521,769


7,153,094









Borrowings:







Short-term borrowings

285,000


415,000


495,000


Long-term borrowings

39,156


39,277


14,628


Junior subordinated debt securities

49,373


49,358


54,468


Total Borrowings

373,529


503,635


564,096


Other liabilities

270,153


242,677


248,457


Total Liabilities

8,244,029


8,268,081


7,965,647









SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,295,074


1,283,445


1,227,795


Total Liabilities and Shareholders' Equity

$9,539,103


$9,551,526


$9,193,442









Capitalization Ratios







Shareholders' equity / assets

13.58 %


13.44 %


13.36 %


Tangible common equity / tangible assets(5)

10.03 %


9.88 %


9.65 %


Tier 1 leverage ratio

11.30 %


11.21 %


11.15 %


Common equity tier 1 capital

13.59 %


13.37 %


13.10 %


Risk-based capital - tier 1

13.91 %


13.69 %


13.50 %


Risk-based capital - total

15.49 %


15.27 %


15.09 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2024


2023


2023




First


Fourth


First



(dollars in thousands)

Quarter


Quarter


Quarter



Net Interest Margin (FTE) (QTD Averages)








ASSETS








Interest-bearing deposits with banks

$144,637

5.75 %

$149,985

5.92 %

$140,499

4.22 %


Securities, at fair value

966,703

2.81 %

956,107

2.75 %

1,000,609

2.51 %


Loans held for sale

176

7.12 %

57

7.25 %

126

6.39 %


Commercial real estate

3,365,142

5.92 %

3,312,509

5.86 %

3,132,382

5.45 %


Commercial and industrial

1,626,633

7.36 %

1,621,091

7.29 %

1,711,113

6.76 %


Commercial construction

365,088

7.70 %

381,294

7.55 %

388,795

7.23 %


Total Commercial Loans

5,356,863

6.48 %

5,314,894

6.42 %

5,232,290

6.01 %


Residential mortgage

1,478,609

4.93 %

1,417,891

4.81 %

1,144,821

4.43 %


Home equity

648,265

6.99 %

650,721

6.94 %

650,385

6.28 %


Installment and other consumer

110,899

8.64 %

114,720

9.15 %

122,873

7.80 %


Consumer construction

69,676

5.60 %

62,850

5.22 %

45,870

4.67 %


Total Consumer Loans

2,307,449

5.71 %

2,246,182

5.66 %

1,963,949

5.26 %


Total Portfolio Loans

7,664,312

6.25 %

7,561,076

6.19 %

7,196,239

5.81 %


Total Loans

7,664,488

6.25 %

7,561,133

6.19 %

7,196,365

5.81 %


Total other earning assets

25,335

7.12 %

37,502

7.23 %

34,720

6.71 %


Total Interest-earning Assets

8,801,163

5.86 %

8,704,727

5.81 %

8,372,193

5.39 %


Noninterest-earning assets

737,742


768,942


754,677



Total Assets

$9,538,905


$9,473,669


$9,126,870











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand

$829,095

1.12 %

$836,771

1.03 %

$824,623

0.33 %


Money market

1,920,009

3.15 %

1,843,338

2.98 %

1,670,988

1.88 %


Savings

939,467

0.63 %

957,903

0.57 %

1,090,137

0.30 %


Certificates of deposit

1,639,059

4.37 %

1,533,266

4.02 %

1,052,460

2.19 %


Total Interest-bearing Deposits

5,327,630

2.77 %

5,171,278

2.53 %

4,638,208

1.30 %


Short-term borrowings

408,351

5.37 %

435,060

5.75 %

451,668

4.93 %


Long-term borrowings

39,221

4.53 %

39,341

4.53 %

14,689

2.71 %


Junior subordinated debt securities

49,364

8.23 %

49,350

8.25 %

54,458

7.50 %


Total Borrowings

496,936

5.59 %

523,751

5.90 %

520,815

5.13 %


Total Other Interest-bearing Liabilities

52,239

5.42 %

65,547

5.40 %

54,669

4.58 %


Total Interest-bearing Liabilities

5,876,805

3.03 %

5,760,576

2.86 %

5,213,692

1.72 %


Noninterest-bearing liabilities

2,371,586


2,466,063


2,706,820



Shareholders' equity

1,290,514


1,247,030


1,206,358



Total Liabilities and Shareholders' Equity

$9,538,905


$9,473,669


$9,126,870











Net Interest Margin(6)


3.84 %


3.92 %


4.32 %










 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2024


2023


2023




First


Fourth


First



(dollars in thousands)

Quarter


Quarter


Quarter



Nonaccrual Loans








Commercial loans:


% Loans


% Loans


% Loans


Commercial real estate

$18,082

0.54 %

$7,267

0.22 %

$7,931

0.25 %


Commercial and industrial

3,092

0.19 %

3,244

0.20 %

9,348

0.55 %


Commercial construction

4,960

1.38 %

4,960

1.37 %

384

0.10 %


Total Nonaccrual Commercial Loans

26,134

0.49 %

15,471

0.29 %

17,663

0.34 %


Consumer loans:








Residential mortgage

4,160

0.28 %

4,579

0.31 %

4,749

0.40 %


Home equity

2,709

0.42 %

2,567

0.39 %

1,915

0.29 %


Installment and other consumer

206

0.19 %

330

0.29 %

317

0.26 %


Total Nonaccrual Consumer Loans

7,075

0.30 %

7,476

0.33 %

6,981

0.35 %


Total Nonaccrual Loans

$33,209

0.43 %

$22,947

0.30 %

$24,644

0.34 %




 


2024


2023


2023



First


Fourth


First


(dollars in thousands)

Quarter


Quarter


Quarter


Loan Charge-offs (Recoveries)







Charge-offs

$6,939


$3,880


$4,459


Recoveries

(350)


(260)


(9,574)


Net Loan Charge-offs (Recoveries)

$6,589


$3,620


($5,115)









Net Loan Charge-offs (Recoveries)







Commercial loans:







Customer fraud

$—


$—


($9,329)


Commercial real estate

$5,238


$1,690


($25)


Commercial and industrial

950


949


3,948


Commercial construction


451


(2)


Total Commercial Loan Charge-offs (Recoveries)

6,188


3,090


(5,408)


Consumer loans:







Residential mortgage

7


(3)


9


Home equity

105


148


31


Installment and other consumer

289


385


253


Total Consumer Loan Charge-offs

401


530


293


Total Net Loan Charge-offs (Recoveries)

$6,589


$3,620


($5,115)










2024


2023


2023



First


Fourth


First


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonaccrual loans

$33,209


$22,947


$24,644


OREO

140


75


3,076


Total nonperforming assets

33,349


23,022


27,720


Nonaccrual loans / total loans

0.43 %


0.30 %


0.34 %


Nonperforming assets / total loans plus OREO

0.44 %


0.30 %


0.38 %


Allowance for credit losses / total portfolio loans

1.37 %


1.41 %


1.49 %


Allowance for credit losses / nonaccrual loans

316 %


471 %


439 %


Net loan charge-offs (recoveries)

$6,589


$3,620


($5,115)


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

0.35 %


0.19 %


(0.29 %)


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 


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



2024


2023


2023



First


Fourth


First


(dollars and shares in thousands)

Quarter


Quarter


Quarter


(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$1,295,074


$1,283,445


$1,227,795


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

(376,396)


(376,631)


(377,405)


Tangible common equity (non-GAAP)

$918,678


$906,814


$850,390


Common shares outstanding

38,233


38,233


38,998


Tangible book value (non-GAAP)

$24.03


$23.72


$21.81


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)

$125,643


$146,980


$161,407


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

944


1,003


1,085


Net income before amortization of intangibles (annualized)

$126,587


$147,983


$162,492









Average total shareholders' equity

$1,290,514


$1,247,030


$1,206,358


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

(376,518)


(376,761)


(377,576)


Average tangible equity (non-GAAP)

$913,996


$870,269


$828,782


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

13.85 %


17.00 %


19.61 %


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

$39,160


$46,024


$49,360


Plus: Provision for credit losses

2,627


943


922


Total

$41,787


$46,967


$50,282


Total (annualized) (non-GAAP)

$168,066


$186,336


$203,921


Average assets

$9,538,905


$9,473,669


$9,126,870


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

1.76 %


1.97 %


2.23 %


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

$54,520


$56,203


$51,699









Net interest income per consolidated statements of net income

$83,477


$85,109


$88,791


Plus: taxable equivalent adjustment

692


683


555


Net interest income (FTE) (non-GAAP)

84,169


85,792


89,346


Noninterest income

12,830


18,061


13,190


Less: net gains on sale of securities

(3)




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

$96,996


$103,853


$102,536


Efficiency ratio (non-GAAP)

56.21 %


54.12 %


50.42 %


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

 

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



2024


2023


2023



First


Fourth


First


(dollars in thousands)

Quarter


Quarter


Quarter


(5) Tangible Common Equity / Tangible Assets (non-GAAP)







Total shareholders' equity

$1,295,074


$1,283,445


$1,227,795


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

(376,396)


(376,631)


(377,405)


Tangible common equity (non-GAAP)

$918,678


$906,814


$850,390









Total assets

$9,539,103


$9,551,526


$9,193,442


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

(376,396)


(376,631)


(377,405)


Tangible assets (non-GAAP)

$9,162,707


$9,174,895


$8,816,037


Tangible common equity to tangible assets (non-GAAP)

10.03 %


9.88 %


9.65 %


Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.








(6) Net Interest Margin Rate (FTE) (non-GAAP)







Interest income and dividend income

$127,754


$126,706


$110,903


Less: interest expense

(44,277)


(41,597)


(22,112)


Net interest income per consolidated statements of net income

83,477


85,109


88,791


Plus: taxable equivalent adjustment

692


683


555


Net interest income (FTE) (non-GAAP)

$84,169


$85,792


$89,346


Net interest income (FTE) (annualized)

$338,526


$340,370


$362,348


Average interest-earning assets

$8,801,163


$8,704,727


$8,372,193


Net interest margin (FTE) (non-GAAP)

3.84 %


3.92 %


4.32 %


The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

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SOURCE S&T Bancorp, Inc.