S&T Bancorp, Inc. Announces Record First Quarter 2021 Net Income
S&T Bancorp, Inc. (NASDAQ: STBA) reported a record net income of $31.9 million, or $0.81 per diluted share for Q1 2021, up from $24.2 million in Q4 2020 and $13.2 million in Q1 2020. The bank's return on average assets reached 1.42%, with a net interest margin of 3.47%. Deposits surged by $455.5 million to $7.9 billion, while portfolio loans fell by $42.7 million to $7.2 billion. A consistent cash dividend of $0.28 per share was declared, in line with the previous year.
- Record net income of $31.9 million for Q1 2021.
- Deposits increased by $455.5 million to $7.9 billion.
- Strong return metrics: ROA of 1.42%, ROE of 11.15%, ROTE of 16.78%.
- Noninterest income rose by $1.6 million to $17.2 million.
- Total assets increased by $361.1 million to $9.3 billion.
- Stable dividend of $0.28 per share maintained.
- Portfolio loans decreased by $42.7 million to $7.2 billion.
- Nonperforming loans rose to $135.2 million, 1.88% of total loans.
INDIANA, Pa., April 22, 2021 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York, announced record net income of
First Quarter of 2021 Highlights:
- Record net income of
$31.9 million . - Return metrics were strong with return on average assets (ROA) of
1.42% , return on average equity (ROE) of11.15% , return on average tangible equity (ROTE) (non-GAAP) of16.78% and pre-tax pre-provision income to average assets (PTPP) (non-GAAP) of1.89% . - Net interest margin (FTE) (non-GAAP) increased 9 basis points to
3.47% compared to3.38% for the fourth quarter of 2020. - Portfolio loans decreased
$42.7 million to$7.2 billion at March 31, 2021 compared to December 31, 2020. - Deposits increased
$455.5 million to$7.9 billion at March 31, 2021 compared to December 31, 2020. - Mortgage banking revenue increased
$1.2 million to$4.3 million for the first quarter of 2021 compared to the fourth quarter of 2020. - The allowance for credit losses to total portfolio loans was
1.60% at March 31, 2021 compared to1.63% at December 31, 2020. - S&T's Board of Directors declared a
$0.28 per share dividend which was consistent with the$0.28 per share dividend declared in the same period in the prior year.
"We are pleased to start the year with record quarterly net income and results that reflect what our company is capable of delivering," said David Antolik, president and interim chief executive officer. "We are optimistic about where S&T is headed in 2021, even with the challenging environment, and are well positioned to take advantage of the growth opportunities that will arise."
Net Interest Income
Net interest income increased
Asset Quality
Asset quality improved during the first quarter of 2021 compared to the fourth quarter of 2020. The provision for credit losses decreased to
Noninterest Income and Expense
Noninterest income increased
Noninterest expense decreased
Financial Condition
Total assets increased
Dividend
The Board of Directors of S&T declared a
Conference Call
S&T will host its first quarter 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 22, 2021. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "1st Quarter 2021 Earnings Conference Call" and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until April 29, 2021, by dialing 1.877.481.4010; the Conference ID is 40575.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a
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; 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 including a prolonged period of low interest rates, 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; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S&T, in particular; 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, including DNB, 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; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus ("COVID-19") pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; 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, 2020, 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.
S&T Bancorp, Inc. | |||||||||
2021 | 2020 | 2020 | |||||||
First | Fourth | First | |||||||
(dollars in thousands, except per share data) | Quarter | Quarter | Quarter | ||||||
INTEREST AND DIVIDEND INCOME | |||||||||
Loans, including fees | |||||||||
Investment Securities: | |||||||||
Taxable | 3,563 | 3,371 | 4,215 | ||||||
Tax-exempt | 813 | 851 | 870 | ||||||
Dividends | 173 | 178 | 453 | ||||||
Total Interest and Dividend Income | 74,781 | 75,548 | 87,589 | ||||||
INTEREST EXPENSE | |||||||||
Deposits | 3,481 | 4,795 | 15,338 | ||||||
Borrowings and junior subordinated debt securities | 641 | 824 | 2,215 | ||||||
Total Interest Expense | 4,122 | 5,619 | 17,553 | ||||||
NET INTEREST INCOME | 70,659 | 69,929 | 70,036 | ||||||
Provision for credit losses | 3,137 | 7,130 | 20,050 | ||||||
Net Interest Income After Provision for Credit Losses | 67,522 | 62,799 | 49,986 | ||||||
NONINTEREST INCOME | |||||||||
Net gain on sale of securities | — | — | — | ||||||
Mortgage banking | 4,310 | 3,100 | 1,236 | ||||||
Debit and credit card | 4,162 | 3,830 | 3,482 | ||||||
Service charges on deposit accounts | 3,474 | 3,492 | 4,008 | ||||||
Wealth management | 2,944 | 2,486 | 2,362 | ||||||
Commercial loan swap income | 95 | 812 | 2,484 | ||||||
Other | 2,251 | 1,889 | (1,169) | ||||||
Total Noninterest Income | 17,236 | 15,609 | 12,403 | ||||||
NONINTEREST EXPENSE | |||||||||
Salaries and employee benefits | 23,327 | 22,789 | 21,335 | ||||||
Data processing and information technology | 4,225 | 3,835 | 3,868 | ||||||
Net occupancy | 3,827 | 4,068 | 3,765 | ||||||
Furniture, equipment and software | 2,640 | 2,904 | 2,519 | ||||||
Professional services and legal | 1,531 | 1,503 | 1,048 | ||||||
Other taxes | 1,436 | 1,806 | 1,600 | ||||||
Marketing | 1,322 | 2,113 | 1,111 | ||||||
FDIC insurance | 1,046 | 1,372 | 770 | ||||||
Merger related expenses | — | — | 2,342 | ||||||
Other | 6,226 | 8,138 | 8,033 | ||||||
Total Noninterest Expense | 45,580 | 48,528 | 46,391 | ||||||
Income Before Taxes | 39,178 | 29,880 | 15,998 | ||||||
Income tax expense | 7,276 | 5,703 | 2,767 | ||||||
Net Income | |||||||||
Per Share Data | |||||||||
Shares outstanding at end of period | 39,268,359 | 39,298,007 | 39,125,425 | ||||||
Average shares outstanding - diluted | 39,021,208 | 39,021,008 | 39,325,938 | ||||||
Diluted earnings per share | |||||||||
Dividends declared per share | |||||||||
Dividend yield (annualized) | |||||||||
Dividends paid to net income | |||||||||
Book value | |||||||||
Tangible book value (1) | |||||||||
Market value | |||||||||
Profitability Ratios (Annualized) | |||||||||
Return on average assets | |||||||||
Return on average shareholders' equity | |||||||||
Return on average tangible shareholders' equity (2) | |||||||||
Pre-tax pre-provision income/ average assets(3) | |||||||||
Efficiency ratio (FTE) (4) | |||||||||
S&T Bancorp, Inc. | |||||||||
2021 | 2020 | 2020 | |||||||
First | Fourth | First | |||||||
(dollars in thousands) | Quarter | Quarter | Quarter | ||||||
ASSETS | |||||||||
Cash and due from banks, including interest-bearing deposits | |||||||||
Securities, at fair value | 817,299 | 773,693 | 799,532 | ||||||
Loans held for sale | 12,794 | 18,528 | 7,309 | ||||||
Commercial loans: | |||||||||
Commercial real estate | 3,284,555 | 3,244,974 | 3,442,495 | ||||||
Commercial and industrial | 1,931,711 | 1,954,453 | 1,781,402 | ||||||
Commercial construction | 460,417 | 474,280 | 396,518 | ||||||
Total Commercial Loans | 5,676,683 | 5,673,707 | 5,620,415 | ||||||
Consumer loans: | |||||||||
Residential mortgage | 881,245 | 918,398 | 988,816 | ||||||
Home equity | 530,350 | 535,165 | 544,405 | ||||||
Installment and other consumer | 80,646 | 80,915 | 79,887 | ||||||
Consumer construction | 14,244 | 17,675 | 13,222 | ||||||
Total Consumer Loans | 1,506,485 | 1,552,153 | 1,626,330 | ||||||
Total Portfolio Loans | 7,183,168 | 7,225,860 | 7,246,745 | ||||||
Allowance for credit losses | (115,101) | (117,612) | (96,850) | ||||||
Total Portfolio Loans, Net | 7,068,067 | 7,108,248 | 7,149,895 | ||||||
Federal Home Loan Bank and other restricted stock, at cost | 12,199 | 13,030 | 28,253 | ||||||
Goodwill | 373,424 | 373,424 | 374,270 | ||||||
Other assets | 373,767 | 451,308 | 458,553 | ||||||
Total Assets | |||||||||
LIABILITIES | |||||||||
Deposits: | |||||||||
Noninterest-bearing demand | |||||||||
Interest-bearing demand | 976,225 | 864,510 | 962,937 | ||||||
Money market | 2,002,857 | 1,937,063 | 1,967,692 | ||||||
Savings | 1,036,927 | 969,508 | 836,237 | ||||||
Certificates of deposit | 1,320,425 | 1,387,463 | 1,588,053 | ||||||
Total Deposits | 7,876,028 | 7,420,538 | 7,057,879 | ||||||
Borrowings: | |||||||||
Securities sold under repurchase agreements | 67,417 | 65,163 | 69,644 | ||||||
Short-term borrowings | — | 75,000 | 410,240 | ||||||
Long-term borrowings | 23,282 | 23,681 | 50,180 | ||||||
Junior subordinated debt securities | 64,097 | 64,083 | 64,038 | ||||||
Total Borrowings | 154,796 | 227,927 | 594,102 | ||||||
Other liabilities | 129,877 | 164,721 | 177,264 | ||||||
Total Liabilities | 8,160,701 | 7,813,186 | 7,829,245 | ||||||
SHAREHOLDERS' EQUITY | |||||||||
Total Shareholders' Equity | 1,168,278 | 1,154,711 | 1,176,251 | ||||||
Total Liabilities and Shareholders' Equity | |||||||||
Capitalization Ratios | |||||||||
Shareholders' equity / assets | |||||||||
Tangible common equity / tangible assets (5) | |||||||||
Tier 1 leverage ratio | |||||||||
Common equity tier 1 capital | |||||||||
Risk-based capital - tier 1 | |||||||||
Risk-based capital - total | |||||||||
S&T Bancorp, Inc. | ||||||
2021 | 2020 | 2020 | ||||
First | Fourth | First | ||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||
Net Interest Margin (FTE) (QTD Averages) | ||||||
ASSETS | ||||||
Interest-bearing deposits with banks | ||||||
Securities, at fair value | 782,118 | 726,535 | 786,858 | |||
Loans held for sale | 6,360 | 4,206 | 1,867 | |||
Commercial real estate | 3,253,641 | 3,269,109 | 3,408,684 | |||
Commercial and industrial | 1,957,459 | 2,012,774 | 1,751,678 | |||
Commercial construction | 485,269 | 481,136 | 386,363 | |||
Total Commercial Loans | 5,696,369 | 5,763,019 | 5,546,725 | |||
Residential mortgage | 897,427 | 936,735 | 990,866 | |||
Home equity | 532,708 | 537,201 | 540,193 | |||
Installment and other consumer | 79,907 | 80,849 | 79,680 | |||
Consumer construction | 15,908 | 16,154 | 10,508 | |||
Total Consumer Loans | 1,525,950 | 1,570,939 | 1,621,247 | |||
Total Portfolio Loans | 7,222,319 | 7,333,958 | 7,167,972 | |||
Total Loans | 7,228,679 | 7,338,164 | 7,169,839 | |||
Federal Home Loan Bank and other restricted stock | 11,242 | 14,545 | 23,601 | |||
Total Interest-earning Assets | 8,324,259 | 8,322,022 | 8,079,944 | |||
Noninterest-earning assets | 756,273 | 802,037 | 687,382 | |||
Total Assets | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Interest-bearing demand | ||||||
Money market | 1,968,779 | 2,015,248 | 1,993,764 | |||
Savings | 995,228 | 956,438 | 830,985 | |||
Certificates of deposit | 1,344,604 | 1,423,727 | 1,601,324 | |||
Total Interest-bearing Deposits | 5,204,503 | 5,299,603 | 5,368,103 | |||
Securities sold under repurchase agreements | 64,653 | 50,607 | 30,790 | |||
Short-term borrowings | 25,556 | 75,728 | 286,365 | |||
Long-term borrowings | 23,471 | 40,986 | 51,845 | |||
Junior subordinated debt securities | 64,088 | 64,073 | 64,195 | |||
Total Borrowings | 177,768 | 231,394 | 433,195 | |||
Total Interest-bearing Liabilities | 5,382,271 | 5,530,997 | 5,801,298 | |||
Noninterest-bearing liabilities | 2,538,149 | 2,441,129 | 1,776,453 | |||
Shareholders' equity | 1,160,113 | 1,151,933 | 1,189,575 | |||
Total Liabilities and Shareholders' Equity | ||||||
Net Interest Margin (6) | ||||||
S&T Bancorp, Inc. | ||||||||||
2021 | 2020 | 2020 | ||||||||
First | Fourth | First | ||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||||||
Nonperforming Loans (NPL) | ||||||||||
Commercial loans: | % NPL | % NPL | % NPL | |||||||
Commercial real estate | ||||||||||
Commercial and industrial | 18,145 | 23,337 | 9,081 | |||||||
Commercial construction | 384 | 384 | 571 | |||||||
Commercial loan held for sale | 2,798 | NM | — | — | — | — | ||||
Total Nonperforming Commercial Loans | 119,933 | 128,735 | 60,160 | |||||||
Consumer loans: | ||||||||||
Residential mortgage | 11,737 | 13,008 | 10,582 | |||||||
Home equity | 3,441 | 4,935 | 2,797 | |||||||
Installment and other consumer | 100 | 96 | 258 | |||||||
Total Nonperforming Consumer Loans | 15,278 | 18,039 | 13,637 | |||||||
Total Nonperforming Loans | ||||||||||
NM-Not Meaningful | ||||||||||
2021 | 2020 | 2020 | ||||||||
First | Fourth | First | ||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||||||
Loan Charge-offs (Recoveries) | ||||||||||
Charge-offs | ||||||||||
Recoveries | (721) | (1,713) | (289) | |||||||
Net Loan Charge-offs (Recoveries) | ||||||||||
Net Loan Charge-offs (Recoveries) | ||||||||||
Commercial loans: | ||||||||||
Commercial real estate | 698 | 10,185 | 428 | |||||||
Commercial and industrial | 4,913 | 412 | 10,265 | |||||||
Commercial construction | (1) | 293 | (2) | |||||||
Total Commercial Loan Charge-offs (Recoveries) | 5,610 | 10,890 | 10,691 | |||||||
Consumer loans: | ||||||||||
Residential mortgage | 71 | 68 | 19 | |||||||
Home equity | 232 | 132 | 80 | |||||||
Installment and other consumer | (102) | 148 | 366 | |||||||
Total Consumer Loan Charge-offs | 202 | 348 | 465 | |||||||
Total Net Loan Charge-offs (Recoveries) | ||||||||||
2021 | 2020 | 2020 | ||||||||
First | Fourth | First | ||||||||
(dollars in thousands) | Quarter | Quarter | Quarter | |||||||
Asset Quality Data | ||||||||||
Nonperforming loans | ||||||||||
OREO | 1,620 | 2,155 | 3,389 | |||||||
Nonperforming assets | 136,831 | 148,929 | 77,186 | |||||||
Troubled debt restructurings (nonaccruing) | 29,983 | 29,289 | 36,054 | |||||||
Troubled debt restructurings (accruing) | 17,916 | 17,460 | 15,189 | |||||||
Total troubled debt restructurings | 47,899 | 46,749 | 51,243 | |||||||
Nonperforming loans / total loans | ||||||||||
Nonperforming assets / total loans plus OREO | ||||||||||
Allowance for credit losses / total portfolio loans | ||||||||||
Allowance for credit losses / total portfolio loans excluding PPP | NA | |||||||||
Allowance for credit losses / nonperforming loans | ||||||||||
Net loan charge-offs (recoveries) | ||||||||||
Net loan charge-offs (recoveries)(annualized) / average loans | ||||||||||
NA = Not Applicable | ||||||||||
S&T Bancorp, Inc. | |||||||||
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: | |||||||||
2021 | 2020 | 2020 | |||||||
First | Fourth | First | |||||||
Quarter | Quarter | Quarter | |||||||
(1) Tangible Book Value (non-GAAP) | |||||||||
Total shareholders' equity | |||||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (379,911) | (380,278) | (382,397) | ||||||
Tangible common equity (non-GAAP) | |||||||||
Common shares outstanding | 39,268 | 39,298 | 39,125 | ||||||
Tangible book value (non-GAAP) | |||||||||
(2) Return on Average Tangible Shareholders' Equity (non-GAAP) | |||||||||
Net income (annualized) | |||||||||
Plus: amortization of intangibles (annualized), net of tax | 1,464 | 1,853 | 2,008 | ||||||
Net income before amortization of intangibles (annualized) | |||||||||
Average total shareholders' equity | |||||||||
Less: average goodwill and other intangible assets, net of deferred tax liability | (380,144) | (380,734) | (379,790) | ||||||
Average tangible equity (non-GAAP) | |||||||||
Return on average tangible shareholders' equity (non-GAAP) | |||||||||
(3) PTPP / Average Assets (non-GAAP) | |||||||||
Income before taxes | |||||||||
Plus: Provision for credit losses | 3,137 | 7,130 | 20,050 | ||||||
Total | 42,315 | 37,010 | 36,048 | ||||||
Total (annualized) (non-GAAP) | |||||||||
Average assets | |||||||||
PTPP / Average Assets (non-GAAP) | |||||||||
(4) Efficiency Ratio (non-GAAP) | |||||||||
Noninterest expense | |||||||||
Less: merger related expenses | — | — | (2,342) | ||||||
Noninterest expense excluding nonrecurring items | |||||||||
Net interest income per consolidated statements of net income | |||||||||
Plus: taxable equivalent adjustment | 664 | 725 | 849 | ||||||
Net interest income (FTE) (non-GAAP) | 71,323 | 70,654 | 70,885 | ||||||
Noninterest income | 17,236 | 15,609 | 12,403 | ||||||
Less: net (gains) losses on sale of securities | — | — | — | ||||||
Net interest income (FTE) (non-GAAP) plus noninterest income | |||||||||
Efficiency ratio (non-GAAP) | |||||||||
S&T Bancorp, Inc. | |||||||||
2021 | 2020 | 2020 | |||||||
First | Fourth | First | |||||||
Quarter | Quarter | Quarter | |||||||
(5) Tangible Common Equity / Tangible Assets (non-GAAP) | |||||||||
Total shareholders' equity | |||||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (379,911) | (380,278) | (382,397) | ||||||
Tangible common equity (non-GAAP) | |||||||||
Total assets | |||||||||
Less: goodwill and other intangible assets, net of deferred tax liability | (379,911) | (380,278) | (382,397) | ||||||
Tangible assets (non-GAAP) | |||||||||
Tangible common equity to tangible assets (non-GAAP) | |||||||||
(6) Net Interest Margin Rate (FTE) (non-GAAP) | |||||||||
Interest income | |||||||||
Less: interest expense | (4,122) | (5,619) | (17,553) | ||||||
Net interest income per consolidated statements of net income | 70,659 | 69,929 | 70,036 | ||||||
Plus: taxable equivalent adjustment | 664 | 725 | 849 | ||||||
Net interest income (FTE) (non-GAAP) | |||||||||
Net interest income (FTE) (annualized) | |||||||||
Average earning assets | |||||||||
Net interest margin (FTE) (non-GAAP) | |||||||||
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SOURCE S&T Bancorp, Inc.
FAQ
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