INDIANA, Pa., July 21 PA-S&T-earnings
INDIANA, Pa., July 21 /PRNewswire-FirstCall/ -- S&T Bancorp, Inc.
(Nasdaq: STBA) today announced net income of $13.9 million or $0.54 diluted
earnings per share for the second quarter of 2008, compared to $13.9 million
of net income and $0.56 diluted earnings per share for the second quarter of
2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070920/NETH079LOGO )
For the six months ended June 30, 2008, net income totaled $28.7 million
and $1.14 diluted earnings per share, as compared to $27.2 million of net
income and $1.08 diluted earnings per share for the six months ended June 30,
2007, representing a six percent increase.
Annualized return on average equity for the six months ended June 30, 2008
was 15.97 percent as compared to 16.81 percent in the year ago period and
16.97 percent for the full year 2007. Year-to-date annualized return on
average assets through June 30, 2008 was 1.62 percent compared with 1.64
percent in the first half of 2007 and 1.68 percent for the full year 2007.
Todd D. Brice, president and chief executive officer, commented, "We are
very pleased with our overall performance this quarter despite some
non-recurring items resulting from the consummation of the IBT Bancorp, Inc.
("IBT") acquisition. Both staffs worked extremely hard to ensure that the
systems and processes were integrated as seamlessly as possible. All of this
was achieved, while at the same time accomplishing outstanding loan growth,
reducing problem credits and significantly expanding net interest income. I
couldn't be more proud of the team's performance, and I believe our
organization is uniquely positioned to take advantage of current market
conditions."
IBT was a nine branch, $793 million asset community bank in Westmoreland
County, Pennsylvania. The merger was completed on June 6, 2008, and all IBT
branches are now operating under the S&T Bank name.
Nonperforming assets totaled $17.8 million or 0.41 percent of total assets
at June 30, 2008 as compared to $23.8 million or 0.69 percent at March 31,
2008 and $17.3 million or 0.51 percent at December 31, 2007. Net loan
charge-offs for the first six months of 2008 were $2.1 million or 0.15 percent
of average loans on an annualized basis compared to $0.9 million or 0.07
percent for the first six months of 2007. During the second quarter of 2008,
a $3.7 million nonperforming credit with a $2.0 million specifically assigned
allowance for loan losses was resolved for $4.5 million. Another $3.6 million
nonperforming credit with a $1.0 million specifically assigned allowance for
loan losses was also resolved during the quarter resulting in a $1.1 million
charge-off.
The allowance for loan losses at June 30, 2008 was $38.8 million or 1.12
percent of total loans, as compared to $35.7 million or 1.25 percent at March
31, 2008 and $34.3 million or 1.23 percent at December 31, 2007. For the six
months ended June 30, 2008, the provision for loan losses was $1.2 million as
compared to $3.5 million for the six months ended June 30, 2007. The
provision and allowance for loan losses, which are based upon management's
detailed quarterly analysis of the adequacy of the allowance for loan losses,
are directionally consistent with the changes in asset quality and the
improvement in nonaccrual loans and other performance metrics.
Brice added, "Asset quality is always a primary focus for everyone at S&T.
Our underwriting and loan administration processes continue to serve us well,
especially during these challenging economic times. In addition, I never miss
an opportunity to remind shareholders that we have no subprime loans or
securities in our portfolios."
Net interest income on a fully taxable equivalent basis for the second
quarter of 2008 was $34.9 million, an increase of $4.7 million or 16 percent,
as compared to $30.2 million for the same period of 2007. Net interest income
on a fully taxable equivalent basis for the six months ended June 30, 2008 was
$66.6 million, a $7.0 million or 12 percent increase, compared to $59.6
million for the six months ended June 30, 2007. The net interest margin, on a
fully taxable equivalent basis, was 4.08 percent, 3.99 percent and 4.04
percent for the second quarter, first quarter and six months ended June 30,
2008, respectively. For the same periods in 2007, the net interest margin was
3.86 percent, 3.84 percent and 3.85 percent, respectively.
Earning assets have increased $792.3 million over the past 12 months.
$752.0 million of this increase is related to the IBT acquisition; $185.1
million is related to growth in commercial lending and $48.0 million is
related to growth in consumer lending. These earning asset increases were
partially offset by $62.6 million of debt securities that matured and were not
replaced during the period, and $130.2 million of debt securities from the IBT
acquisition which were sold as a balance sheet restructuring strategy.
Overall deposits increased $490.1 million during the past 12 months,
including $574.0 million of deposits that were acquired with the IBT merger.
Brice added, "While core deposits are our most stable and lowest cost of funds
overall, from time to time, we may experience periods like we are in today
where borrowings have a slight pricing advantage. We are willing to accept
slightly less robust deposit growth in the short run to take advantage of
these unique circumstances. We know that we have excellent and very
competitive deposit products, especially our CMA high-yield savings account,
cash management services and electronic banking systems that we believe will
continue to keep us competitive and serve our customers' needs well into the
future. Particularly encouraging is the recent growth in demand deposit and
cash management products."
Noninterest income, excluding net security gains and losses, increased
$1.1 million to $18.7 million for the six-month period ended June 30, 2008, as
compared to $17.6 million for the same year ago period. Significant increases
in these results include a $0.4 million gain from the VISA initial public
offering, $0.4 million of debit/credit card fees, $0.6 million of commercial
loan swap fees and $0.4 million of insurance revenue. Offsetting the
increases were lower letter of credit fees, mortgage banking revenues and
deferred compensation plan valuations.
Net investment security losses for the first half of 2008 were $1.2
million, as compared to $2.1 million of equity security gains during the same
period of 2007. The 2008 results include $1.3 million of other-than-temporary
impairment charges for three bank equity holdings and $0.7 million of losses
related to restructuring the IBT debt securities portfolio. The equity
securities portfolio currently has a market value of $23.2 million at June 30,
2008 as compared to $44.9 million at June 30, 2007.
Noninterest expense increased $4.7 million or 13 percent to $40.3 million
for the first six months of 2008, as compared to $35.6 million for the 2007
period. Significantly affecting noninterest expense during the second quarter
2008 was $0.9 million of merger related expenses, a $1.4 million valuation
adjustment for five affordable housing limited partnerships and $1.6 million
of increases to the reserve for unfunded commitments. Staff expense increases
of $0.6 million primarily include the effects of year-end merit increases,
higher medical plan costs and increased full-time equivalent staff levels.
Occupancy and equipment expense increased $0.6 million during the six-month
period as compared to the same period a year ago as a result of several
facility remodelings and additions that occurred during the last 12 months.
The efficiency ratio, which measures noninterest expense to noninterest
income, excluding net security gains and losses, plus net interest income on a
fully taxable equivalent basis, was 47 percent and 46 percent for the
six-month periods ended June 30, 2008 and 2007, respectively.
S&T Bancorp, Inc. declared a common stock quarterly dividend of $0.31 per
share on June 16, 2008 which is payable on July 25, 2008 to shareholders of
record as of July 1, 2008. This dividend represents a 3.3 percent increase
over the $0.30 per share quarterly dividend declared a year ago and a 4.3
percent projected annual yield utilizing the June 30, 2008 closing market
price of $29.06.
Headquartered in Indiana, Pennsylvania, S&T Bancorp, Inc. operates 55
offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion,
Clearfield, Indiana, Jefferson and Westmoreland counties. With assets of $4.4
billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market
under the symbol STBA.
This information may contain forward-looking statements regarding future
financial performance which are not historical facts and which involve risks
and uncertainties. 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. This information should be read in conjunction with the audited
financial statements and analysis as presented in the Annual Report on Form
10-K for S&T Bancorp, Inc. and subsidiaries.
S&T Bancorp, Inc.
Consolidated Selected Financial Data
June 30, 2008
(Dollars in thousands, except per share data)
2007
MarchJune SeptemberDecember
For the period: 1Q 2Q 3Q 4Q
Interest Income $52,934 $54,274 $54,761 $53,637
Interest Expense 24,725 25,321 25,485 23,636
Net Interest Income 28,209 28,953 29,276 30,001
Taxable Equivalent
Adjustment 1,186 1,216 1,170 1,156
Net Interest Income (FTE)29,395 30,169 30,446 31,157
Provision For Loan Losses 2,178 1,305 1,142 1,187
Net Interest Income After
Provisions (FTE)27,217 28,864 29,304 29,970
Security Gains and Losses,
Net1,656 481 1,129 579
Service Charges and Fees2,343 2,529 2,605 2,647
Wealth Management 1,855 1,978 1,751 1,886
Insurance 1,894 1,792 1,874 1,726
Other 2,424 2,744 4,270 2,443
Total Noninterest Income 8,516 9,043 10,500 8,702
Salaries and Employee
Benefits 9,934 10,073 9,910 10,470
Occupancy and Equip.
Expense, Net 2,261 2,447 2,423 2,452
Data Processing Expense 1,234 1,301 1,179 1,166
FDIC Expense 76 77 74 75
Other 4,084 4,163 4,543 5,518
Total Noninterest Expense17,589 18,061 18,129 19,681
Income Before Taxes19,800 20,327 22,804 19,570
Taxable Equivalent Adjustment 1,186 1,216 1,170 1,156
Applicable Income Taxes 5,316 5,235 5,973 5,103
Net Income $13,298 $13,876 $15,661 $13,311
Per Common Share Data:
Shares Outstanding at End
of Period 24,897,787 24,468,671 24,543,177 24,551,087
Average Shares Outstanding
- Diluted 25,389,584 24,847,410 24,690,735 24,677,720
Net Income - Diluted$0.52 $0.56 $0.63 $0.54
Dividends Declared $0.30 $0.30 $0.30 $0.31
Book Value $13.16 $12.98 $13.36 $13.75
Market Value $33.04 $32.90 $32.09 $27.64
2008 Six months ended
MarchJune JuneJune
For the period: 1Q 2Q20082007
Interest Income $50,458 $50,433$100,891$107,208
Interest Expense 19,909 16,791 36,700 50,047
Net Interest Income 30,549 33,642 64,191 57,161
Taxable Equivalent
Adjustment 1,148 1,227 2,375 2,402
Net Interest Income (FTE)31,697 34,869 66,566 59,563
Provision For Loan Losses 1,279(118) 1,161 3,483
Net Interest Income After
Provisions (FTE)30,418 34,987 65,405 56,080
Security Gains and Losses,
Net 611 (1,829) (1,218) 2,136
Service Charges and Fees2,402 2,754 5,156 4,871
Wealth Management 1,862 1,907 3,769 3,833
Insurance 1,997 2,042 4,039 3,686
Other 2,638 3,100 5,738 5,169
Total Noninterest Income 8,899 9,803 18,702 17,559
Salaries and Employee
Benefits 10,060 10,514 20,574 20,006
Occupancy and Equip.
Expense, Net 2,660 2,636 5,296 4,708
Data Processing Expense 1,071 1,668 2,739 2,535
FDIC Expense 75 74 149 153
Other 4,089 7,492 11,581 8,246
Total Noninterest Expense17,955 22,384 40,339 35,648
Income Before Taxes21,973 20,577 42,550 40,127
Taxable Equivalent Adjustment 1,148 1,227 2,375 2,402
Applicable Income Taxes 5,969 5,489 11,458 10,552
Net Income $14,856 $13,861 $28,717 $27,173
Per Common Share Data:
Shares Outstanding at End
of Period 24,615,136 27,408,633 27,408,633 24,468,671
Average Shares Outstanding
- Diluted 24,680,484 25,503,920 25,092,202 25,117,043
Net Income - Diluted$0.60 $0.54 $1.14 $1.08
Dividends Declared $0.31 $0.31 $0.62 $0.60
Book Value $14.18 $16.00 $16.00 $12.98
Market Value $32.17 $29.06 $29.06 $32.90
S&T Bancorp, Inc.
Consolidated Selected Financial Data
June 30, 2008
(Dollars in thousands)
2007
MarchJune SeptemberDecember
Asset Quality Data 1Q 2Q 3Q 4Q
Nonaccrual Loans and
Nonperforming Loans $19,854 $14,944 $14,445 $16,798
Assets acquired through
foreclosure or repossession 606 610 869 488
Nonperforming Assets 20,460 15,554 15,314 17,286
Allowance for Loan Losses 35,319 35,808 34,144 34,345
Nonperforming Loans / Loans 0.73% 0.54% 0.52% 0.60%
Allowance for Loan Losses
/ Loans1.29% 1.31% 1.24% 1.23%
Allowance for Loan Losses
/ Nonperforming Loans 178%240%236%204%
Net Loan Charge-offs 78 817 2,806 986
Net Loan Charge-offs
(annualized)/Average Loans 0.01% 0.12% 0.41% 0.14%
Balance Sheet (Period-End)
Assets $3,361,963 $3,368,761 $3,348,096 $3,407,621
Earning Assets 3,146,934 3,141,844 3,126,714 3,169,594
Securities412,384 398,612 375,151 372,655
Loans, Gross2,734,550 2,743,232 2,751,564 2,796,939
Total Deposits 2,576,887 2,624,495 2,620,176 2,621,825
Non-Interest Bearing
Deposits 444,525 446,455 451,196 459,708
NOW, Money Market &
Savings1,204,833 1,230,290 1,233,969 1,243,061
CD's $100,000 and over 259,390 258,311 250,011 249,643
Other Time Deposits 668,139 689,439 685,000 669,413
Short-term borrowings 169,552 144,342 125,809 180,258
Long-term Debt246,715 246,487 236,255 226,021
Shareholders' Equity 327,559 317,707 327,863 337,560
Balance Sheet (Daily Averages)
Assets $3,312,784 $3,344,544 $3,339,979 $3,346,685
Earning Assets 3,108,328 3,134,253 3,127,103 3,137,967
Securities420,645 403,351 384,405 370,100
Loans, Gross2,687,564 2,730,618 2,740,458 2,767,615
Deposits2,550,819 2,578,878 2,623,770 2,620,448
Shareholders' Equity 339,168 325,966 324,124 333,880
2008
March June
Asset Quality Data1Q2Q
Nonaccrual Loans and Nonperforming Loans $23,212 $15,959
Assets acquired through foreclosure
or repossession 630 1,884
Nonperforming Assets23,84217,843
Allowance for Loan Losses 35,71738,796
Nonperforming Loans / Loans 0.81% 0.46%
Allowance for Loan Losses / Loans1.25% 1.12%
Allowance for Loan Losses / Nonperforming Loans 154% 243%
Net Loan Charge-offs (94)2,224
Net Loan Charge-offs
(annualized)/Average Loans -0.01% 0.29%
Balance Sheet (Period-End)
Assets $3,463,806$4,353,466
Earning Assets 3,212,919 3,934,187
Securities 362,053 466,524
Loans, Gross 2,850,866 3,467,663
Total Deposits 2,605,187 3,114,560
Non-Interest Bearing Deposits471,040 593,339
NOW, Money Market & Savings1,203,833 1,325,755
CD's $100,000 and over 250,489 329,087
Other Time Deposits 679,825 866,379
Short-term borrowings 211,391 472,045
Long-term Debt 246,403 281,163
Shareholders' Equity 349,073 438,499
Balance Sheet (Daily Averages)
Assets $3,407,665$3,701,389
Earning Assets 3,198,279 3,434,268
Securities 369,400 386,243
Loans, Gross 2,828,762 3,048,024
Deposits 2,579,321 2,712,198
Shareholders' Equity 345,939 377,160
S&T Bancorp, Inc.
Consolidated Selected Financial Data
June 30, 2008
(Dollars in thousands, except per share data)
2007
MarchJune September December
Profitability Ratios (annualized)1Q 2Q 3Q 4Q
Return on Average Assets1.63%1.66%1.86%1.58%
Return on Average Shareholders'
Equity15.90% 17.07% 19.17% 15.82%
Yield on Earning Assets (FTE) 7.06%7.10%7.10%6.93%
Cost of Interest Bearing Funds 4.00%4.01%3.99%3.70%
Net Interest Margin (FTE)(4)3.84%3.86%3.86%3.94%
Efficiency Ratio (FTE)(1) 46.40% 46.06% 44.28% 49.38%
Capitalization Ratios
Dividends Paid to Net Income 57.21% 53.92% 46.86% 55.31%
Shareholders' Equity to Assets
(Period End) 9.74%9.43%9.79%9.91%
Leverage Ratio (2) 8.38%8.06%8.38%8.57%
Risk Based Capital - Tier I (3) 9.23%8.94%9.35%9.50%
Risk Based Capital - Tier II (3) 11.45% 11.15% 11.50% 11.64%
2008 Year-to-date
MarchJune June June
Profitability Ratios (annualized)1Q 2Q 2008 2007
Return on Average Assets1.75%1.51%1.62%1.64%
Return on Average Shareholders'
Equity17.27% 14.78% 15.97% 16.81%
Yield on Earning Assets (FTE) 6.49%6.05%6.26%7.08%
Cost of Interest Bearing Funds 3.10%2.43%2.75%4.00%
Net Interest Margin (FTE)(4)3.99%4.08%4.04%3.85%
Efficiency Ratio (FTE)(1) 44.23% 50.11% 47.31% 46.22%
Capitalization Ratios
Dividends Paid to Net Income 51.23% 55.05%
Shareholders' Equity to Assets
(Period End) 10.08% 10.07%
Leverage Ratio (2) 9.28%8.05%
Risk Based Capital - Tier I (3)10.29%7.99%
Risk Based Capital - Tier II (3) 12.46% 11.12%
Definitions:
(1) Recurring non-interest expense divided by recurring non-interest
income plus net interest income, on a fully taxable equivalent basis.
(2) Equity less goodwill to total assets and allowance for loan losses.
(3) Effective October 1, 1998, banking regulators require financial
institutions to include 45% of the pretax net unrealized holding gains on
available for sale equity securities in Tier 2 capital.
(4) Net interest income, on a fully taxable equivalent basis, annualized
divided by quarter-to-date average earning assets.
SOURCE S&T Bancorp, Inc.
