INDIANA, Pa., Jan. 25 /PRNewswire-FirstCall/ --- S&T Bancorp, Inc. (Nasdaq: STBA) today announced earnings for the fourth quarter and the year ended December 31, 2009. Diluted earnings per share for the fourth quarter of 2009 were $0.28 per share compared to $0.57 per share in the fourth quarter of 2008. Net income for the fourth quarter of 2009 decreased to $7.6 million as compared to $15.8 million in the comparable period one year ago. For the year ended December 31, 2009, diluted earnings per share were $0.07 as compared to $2.28 in 2008, and net income decreased from $60.2 million in 2008 to $2.0 million in 2009.
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Todd D. Brice, president and chief executive officer, commented, "The economic events of 2009 presented previously unknown performance challenges and credit quality stresses that significantly affected our earnings this year. I couldn't be more proud of how the S&T organization responded to these challenges and strategically positioned the bank to take advantage of market opportunities that are sure to be presented in 2010."
Net interest income, on a fully taxable equivalent basis, decreased approximately $4.2 million or 10 percent for the quarter ending December 31, 2009, and increased $2.1 million or 1 percent for the 12 months of 2009, as compared to the same periods of 2008. A higher level of nonaccrual loans in 2009 negatively affected net interest income by $3.1 million. Net interest margin on a fully taxable equivalent basis was 3.94 percent, 3.94 percent and 3.89 percent for the third quarter, fourth quarter and full year of 2009, respectively. For the same periods of 2008, the net margin on a fully taxable equivalent basis was 4.07 percent, 4.13 percent and 4.07 percent, respectively.
Earning assets have decreased $262 million over the past 12 months, driven by a $164 million decrease in loans and $98 million decrease in investment securities. The loan decrease is primarily due to reduced demand for commercial real estate financing and development in the market, and less credit demand and utilization by businesses responding to the recessionary economic environment. A significant portion of maturing investment securities were not replaced in 2009 as the risk/reward for leveraging activities was significantly reduced in a volatile interest rate environment.
Deposits increased $76 million or 2 percent during the 12-month period ending December 31, 2009. Particularly noteworthy and beneficial to performance was a $112 million or 19 percent increase in noninterest-bearing deposit accounts. Brice commented, "Increasing core deposits, especially cash management relationships with our commercial customers, has been an ongoing strategic focus. The combination of reduced loan demand, lower investment securities and increased deposits has contributed to a $420 million reduction in borrowings over the past 12 months. We believe that strong liquidity and capital positions are important for these uncertain economic times, and to take advantage of market opportunities when the economy does turn positive."
Noninterest income, excluding investment security gains and losses, increased $4.6 million for the 12-month period ended December 31, 2009, as compared to 2008, primarily due to increases of $0.6 million for deposit fees, $1.0 million of debit/credit card activities, $3.0 million of mortgage banking revenues and $2.2 million of fair market valuations for the deferred compensation plan trust. These noninterest revenue increases were partially offset by decreases in insurance, wealth management, and commercial loan swap activities of $0.3 million, $0.5 million and $1.4 million, respectively. The commercial loan swap results were negatively affected by a $0.6 million charge related to a troubled loan relationship in the third quarter 2009. Also affecting year-over-year comparisons is a $0.4 million non-recurring gain in the first quarter 2008 from the VISA initial public offering.
Investment security losses for 2009 were $5.1 million, a $3.4 million increase from the $1.7 million of losses during 2008. Included in the 2009 results is $5.3 million of other-than-temporary impairment charges on 17 bank equity holdings. Five of these charges totaling $0.5 million occurred in the fourth quarter 2009. The equity securities portfolio currently has a market value of $12.2 million at December 31, 2009, as compared to $14.9 million at December 31, 2008. During the past two years, S&T has implemented a strategy to methodically sell holdings in this portfolio and only retain strategic positions in bank holding companies within our market area.
Noninterest expense increased $24.3 million or 29 percent for the full year 2009, as compared to the 2008 period. Salaries and employee benefits increased $6.1 million, primarily due to the addition of 56 average full-time equivalent staff, mostly due to the IBT acquisition in the second quarter of 2008, a $3.0 million increase in pension expense, offset by a $3.9 million reduction in incentives and profit sharing. Salaries and benefits expense was also negatively affected by the aforementioned fair market valuations for the deferred compensation plan trust. Other significant increases affecting noninterest expense in 2009 included $8.0 million of FDIC insurance premium, $1.9 million of reserve for unfunded commitments, $1.6 million of affordable housing project amortization and impairments, $3.8 million in legal, consulting, and loan collection costs, primarily due to resolving troubled loans, and $1.3 million of amortization of acquisition intangibles.
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 55 percent and 45 percent for the twelve-month periods ended December 31, 2009 and 2008, respectively.
Nonperforming assets totaled $95.4 million or 2.29 percent of total assets at December 31, 2009, as compared to $91.2 million or 2.17 percent at September 30, 2009 and $43.3 million or 0.98 percent at December 31, 2008. During the fourth quarter of 2009, two significant relationships were placed into nonperforming status:
- A $9.7 million relationship for a resort in central Pennsylvania that has experienced a decline in bookings and cash flows. The relationship has a partial United States Department of Agriculture guarantee, and no specific reserve has been established.
- A $5.2 million loan for an industrial warehouse property located in the southeast United States. Slowness in achieving target occupancy has created cash flow shortfalls that historically have been supplemented by the owners. Because continued owners' support is uncertain, a specific reserve of $1.5 million was established based upon a fourth quarter 2009 appraisal. The property is scheduled for auction during the first quarter of 2010.
The allowance for loan losses at December 31, 2009 was $59.6 million or 1.75 percent of total loans as compared to $42.7 million or 1.20 percent at December 31, 2008. In the fourth quarter of 2009, S&T recorded a provision for loan losses of $10.4 million as compared to $5.6 million in the fourth quarter of 2008. Included in the allowance is $17.0 million of specifically assigned reserves. For the 12 months ended December 31, 2009, the provision for loan losses was $72.4 million as compared to $12.9 million for the 12 months ended December 31, 2008. The provision for loan losses is based upon management's detailed quarterly analysis of the adequacy of the allowance for loan losses.
During the fourth quarter 2009, net charge-offs were $11.7 million. The most significant charged off loans were:
- $5.0 million for two commercial real estate projects in the New York and Connecticut region. Projects include a mixed-use commercial property and a new condominium project. Specific reserves of $4.2 million had been previously established for these projects. The mixed-use commercial property was fully charged-off, and the condominium project has an outstanding balance of $3.9 million.
- $2.5 million for a commercial and industrial loan secured by assignment of partnership interests. Unresolved legal issues among the partners makes the value of the partnership interest uncertain and the loan has been fully charged-off. A specific reserve of $2.1 million had been previously established.
- $0.6 million for condominium construction loans in western Pennsylvania. The remaining balance of $1.0 million is believed to be adequately collateralized based upon values established by previous unit sales. A specific reserve of $0.6 million had been previously established.
On January 16, 2009, S&T received $108.7 million of funds from the U.S. Treasury's Capital Purchase Program through the issuance of preferred stock and warrants for common stock. The purpose of the government program was to promote lending by healthy banks to individuals and businesses in order to stimulate the economy. Dividends and amortization associated with this preferred stock were $5.9 million for the twelve-month period ending December 31, 2009. Brice commented, "Participation in the Capital Purchase Program was a difficult decision for S&T, since we were already designated as 'well capitalized' by regulatory guidelines. While the additional capital is comforting during these times, our intention is to obtain regulatory approval for returning these funds in the most shareholder-friendly manner possible once a positive direction in the economy becomes more clear." S&T's capital ratios for leverage, Total, Tier I and tangible common capital to tangible assets at December 31, 2009 were 10.26 percent, 15.43 percent, 12.10 percent and 6.84 percent, respectively.
S&T Bancorp, Inc. declared a common stock quarterly dividend of $0.15 per share on January 18, 2010 which is payable on February 25, 2010 to shareholders of record as of February 1, 2010. This dividend represents a 3.5 percent projected annual yield utilizing the December 31, 2009 closing market price of $17.01.
Headquartered in Indiana, PA, S&T Bancorp, Inc. operates 55 offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson, and Westmoreland counties. With assets of $4.2 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System 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, change in interest rates, deposit flows, loan demand, asset quality, including real estate and other collateral values, and competition. In addition to the results of operations presented in accordance with GAAP, S&T management uses, and this press release contains or references, certain non-GAAP financial measures, such as net interest income on a fully tax-equivalent basis. S&T believes 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 others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors' understanding of S&T's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. A reconciliation of these non-GAAP financial measures are presented in the attached financial data spreadsheet. 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
December 31, 2009
(Dollars in thousands, except per share data)
2008
----
March June Sept. Dec.
----- ---- ----- ----
1Q 2Q 3Q 4Q
--- --- --- ---
For the period:
Interest
Income $50,458 $50,433 $57,416 $57,811
Interest
Expense 19,909 16,791 18,245 17,226
------ ------ ------ ------
Net Interest
Income 30,549 33,642 39,171 40,585
Taxable
Equivalent
Adjustment 1,148 1,227 1,385 1,388
----- ----- ----- -----
Net Interest
Income
(FTE) 31,697 34,869 40,556 41,973
Provision
For Loan
Losses 1,279 (118) 6,156 5,561
----- ---- ----- -----
Net
Interest
Income
After
Provisions
(FTE) 30,418 34,987 34,400 36,412
------ ------ ------ ------
Security
Gains and
Losses,
Net 611 (1,829) (341) (92)
Service
Charges
and Fees 2,402 2,754 3,599 3,567
Wealth
Management 1,862 1,907 2,118 2,081
Insurance 1,997 2,042 2,073 1,984
Other 2,638 3,100 2,811 2,168
----- ----- ----- -----
Total
Noninterest
Income 8,899 9,803 10,601 9,800
Salaries
and
Employee
Benefits 10,060 10,514 11,725 10,409
Occupancy
and Equip.
Expense,
Net 2,660 2,636 2,761 2,838
Data
Processing
Expense 1,071 1,668 1,365 1,384
FDIC
Expense 75 74 131 129
Other 4,089 7,492 6,358 6,363
----- ----- ----- -----
Total
Noninterest
Expense 17,955 22,384 22,340 21,123
------ ------ ------ ------
Income
(Loss)
Before
Taxes 21,973 20,577 22,320 24,997
Taxable
Equivalent
Adjustment 1,148 1,227 1,385 1,388
Applicable
Income
Taxes 5,969 5,489 5,249 7,809
----- ----- ----- -----
Net Income
(Loss) 14,856 13,861 15,686 15,800
Preferred
Stock
Dividends - - - -
--- --- --- ---
Net Income
(Loss)
Available
to Common
Shareholders $14,856 $13,861 $15,686 $15,800
======= ======= ======= =======
Per Common
Share
Data:
Shares
Outstanding
at End of
Period 24,615,136 27,408,633 27,588,510 27,632,928
Average
Shares
Outstanding
-Diluted 24,680,484 25,503,920 27,602,216 27,722,550
Net Income
(Loss) -
Diluted $0.60 $0.54 $0.57 $0.57
Dividends
Declared $0.31 $0.31 $0.31 $0.31
Common Book
Value $14.18 $16.00 $16.34 $16.24
Tangible
Common
Book Value
(5) $12.04 $9.52 $9.97 $9.87
Market
Value $32.17 $29.06 $36.83 $35.50
2009
----
March June September December
----- ---- --------- --------
1Q 2Q 3Q 4Q
--- --- --- ---
For the period:
Interest
Income $50,424 $49,226 $48,310 $47,126
Interest
Expense 14,279 12,677 11,477 10,671
------ ------ ------ ------
Net
Interest
Income 36,145 36,549 36,833 36,455
Taxable
Equivalent
Adjustment 1,334 1,311 1,284 1,274
----- ----- ----- -----
Net
Interest
Income
(FTE) 37,479 37,860 38,117 37,729
Provision
For Loan
Losses 21,389 32,184 8,382 10,399
------ ------ ----- ------
Net
Interest
Income
After
Provisions
(FTE) 16,090 5,676 29,735 27,330
------ ----- ------ ------
Security
Gains and
Losses,
Net (1,246) (1,296) (2,059) (487)
Service
Charges
and Fees 3,056 3,232 3,305 3,349
Wealth
Management 1,743 1,912 1,920 1,924
Insurance 1,862 1,985 2,020 1,884
Other 3,601 4,624 3,038 4,213
----- ----- ----- -----
Total
Noninterest
Income 10,262 11,753 10,283 11,370
Salaries
and
Employee
Benefits 11,655 12,698 12,284 12,211
Occupancy
and Equip.
Expense,
Net 3,082 3,023 2,882 2,898
Data
Processing
Expense 1,468 1,542 1,565 1,473
FDIC
Expense 1,941 3,447 1,526 1,475
Other 7,292 12,052 6,582 7,031
----- ------ ----- -----
Total
Noninterest
Expense 25,438 32,762 24,839 25,088
------ ------ ------ ------
Income
(Loss)
Before
Taxes (332) (16,629) 13,120 13,125
Taxable
Equivalent
Adjustment 1,334 1,311 1,284 1,274
Applicable
Income
Taxes 176 (9,284) 2,578 2,660
--- ------ ----- -----
Net Income
(Loss) (1,842) (8,656) 9,258 9,191
Preferred
Stock
Dividends 1,283 1,541 1,543 1,545
----- ----- ----- -----
Net Income
(Loss)
Available
to Common
Shareholders ($3,125) ($10,197) $7,715 $7,646
======= ======== ====== ======
Per Common
Share
Data:
Shares
Outstanding
at End of
Period 27,637,317 27,654,530 27,684,807 27,746,554
Average
Shares
Outstanding
-Diluted 27,637,292 27,650,937 27,716,134 27,701,846
Net Income
(Loss) -
Diluted ($0.11) ($0.37) $0.28 $0.28
Dividends
Declared $0.31 $0.15 $0.15 $0.00
Common Book
Value $16.01 $15.48 $15.77 $16.14
Tangible
Common
Book Value
(5) $9.68 $9.17 $9.44 $9.85
Market
Value $21.21 $12.16 $12.96 $17.01
Twelve months ended
-------------------
December December
-------- --------
2009 2008
---- ----
For the period:
Interest Income $195,087 $216,118
Interest Expense 49,105 72,171
------ ------
Net Interest Income 145,982 143,947
Taxable Equivalent
Adjustment 5,202 5,147
----- -----
Net Interest Income (FTE) 151,184 149,094
Provision For Loan Losses 72,354 12,878
------ ------
Net Interest Income
After Provisions (FTE) 78,830 136,216
------ -------
Security Gains and
Losses, Net (5,088) (1,651)
Service Charges and Fees 12,942 12,322
Wealth Management 7,500 7,967
Insurance 7,751 8,096
Other 15,475 10,718
------ ------
Total Noninterest Income 43,668 39,103
Salaries and Employee
Benefits 48,848 42,708
Occupancy and Equip.
Expense, Net 11,886 10,895
Data Processing Expense 6,048 5,488
FDIC Expense 8,388 409
Other 32,956 24,301
------ ------
Total Noninterest Expense 108,126 83,801
------- ------
Income (Loss) Before
Taxes 9,284 89,867
Taxable Equivalent
Adjustment 5,202 5,147
Applicable Income Taxes (3,869) 24,517
------ ------
Net Income (Loss) 7,951 60,203
Preferred Stock
Dividends 5,913
----- ---
Net Income (Loss)
Available to Common
Shareholders $2,038 $60,203
====== =======
Per Common Share Data:
Shares Outstanding at End
of Period 27,746,554 27,632,928
Average Shares
Outstanding -Diluted 27,658,861 26,384,309
Net Income (Loss) -
Diluted $0.07 $2.28
Dividends Declared $0.61 $1.24
Common Book Value $16.14 $16.24
Tangible Common Book
Value (5) $9.85 $9.87
Market Value $17.01 $35.50
S&T Bancorp, Inc.
Consolidated Selected Financial Data
December 31, 2009
(Dollars in thousands)
2008
----
March June September December
Asset Quality Data 1Q 2Q 3Q 4Q
------------------ --- --- --- ---
Nonaccrual Loans and
Nonperforming Loans $23,212 $15,959 $32,793 $42,466
Assets Acquired through
Foreclosure or
Repossession 630 1,884 1,111 851
Nonperforming Assets 23,842 17,843 33,904 43,317
Allowance for Loan
Losses 35,717 38,796 43,235 42,689
Nonperforming Loans /
Loans 0.81% 0.46% 0.92% 1.19%
Allowance for Loan
Losses /Loans 1.25% 1.12% 1.21% 1.20%
Allowance for Loan
Losses /Nonperforming
Loans 154% 243% 132% 101%
Net Loan Charge-offs
(Recoveries) (94) 2,224 1,717 6,107
Net Loan Charge-offs
(Recoveries)
(annualized)/Average
Loans -0.01% 0.29% 0.20% 0.68%
Balance Sheet (Period-
End)
----------------------
Assets $3,463,806 $4,353,568 $4,461,085 $4,438,368
Earning Assets 3,212,919 3,934,187 4,075,431 4,044,970
Securities 362,053 466,524 496,844 476,255
Loans, Gross 2,850,866 3,467,663 3,578,587 3,568,716
Total Deposits 2,605,187 3,114,560 3,131,882 3,228,416
Non-Interest Bearing
Deposits 471,040 593,339 600,246 600,282
NOW, Money Market &
Savings 1,203,833 1,325,755 1,280,816 1,334,324
CD's $100,000 and over 250,489 329,087 353,167 377,748
Other Time Deposits 679,825 866,379 897,653 916,062
Short-term Borrowings 211,391 472,045 552,505 421,894
Long-term Debt 246,403 281,163 280,921 270,950
Shareholders' Equity 349,073 438,499 450,717 448,694
Balance Sheet (Daily
Averages)
--------------------
Assets $3,407,665 $3,701,389 $4,346,481 $4,419,465
Earning Assets 3,198,279 3,434,268 3,961,327 4,042,118
Securities 369,400 386,243 472,293 490,754
Loans, Gross 2,828,762 3,048,024 3,488,843 3,551,179
Deposits 2,579,321 2,712,198 3,086,428 3,205,711
Shareholders' Equity 345,939 377,160 447,941 458,600
2009
----
March June September December
Asset Quality Data 1Q 2Q 3Q 4Q
------------------ --- --- --- ---
Nonaccrual Loans and
Nonperforming Loans $92,047 $71,433 $86,454 $90,807
Assets Acquired through
Foreclosure or
Repossession 1,452 2,262 4,745 4,607
Nonperforming Assets 93,499 73,695 91,199 95,414
Allowance for Loan
Losses 59,847 57,875 60,880 59,580
Nonperforming Loans /
Loans 2.62% 2.06% 2.51% 2.67%
Allowance for Loan
Losses /Loans 1.70% 1.67% 1.77% 1.75%
Allowance for Loan
Losses /Nonperforming
Loans 65% 81% 70% 66%
Net Loan Charge-offs
(Recoveries) 4,231 34,156 5,376 11,699
Net Loan Charge-offs
(Recoveries)
(annualized)/Average
Loans 0.49% 3.91% 0.62% 1.36%
Balance Sheet (Period-
End)
----------------------
Assets $4,314,540 $4,243,876 $4,208,224 $4,170,475
Earning Assets 3,948,774 3,868,782 3,836,327 3,782,809
Securities 429,919 409,011 389,980 378,402
Loans, Gross 3,518,855 3,459,771 3,446,347 3,404,407
Total Deposits 3,244,197 3,155,852 3,279,784 3,304,542
Non-Interest Bearing
Deposits 625,325 629,967 673,863 712,121
NOW, Money Market &
Savings 1,264,407 1,170,573 1,212,073 1,302,051
CD's $100,000 and over 422,841 403,694 472,736 411,901
Other Time Deposits 931,624 951,618 921,112 878,469
Short-term Borrowings 225,898 291,763 143,980 96,235
Long-term Debt 232,282 207,028 186,772 176,513
Shareholders' Equity 547,276 533,094 541,682 553,318
Balance Sheet (Daily
Averages)
--------------------
Assets $4,360,166 $4,304,406 $4,207,966 $4,167,295
Earning Assets 3,980,258 3,935,389 3,836,806 3,798,477
Securities 445,150 427,285 397,106 385,966
Loans, Gross 3,534,064 3,508,104 3,439,700 3,412,510
Deposits 3,251,587 3,220,761 3,251,265 3,271,199
Shareholders' Equity 542,240 549,968 540,153 545,787
S&T Bancorp, Inc.
Consolidated Selected Financial Data
December 31, 2009
(Dollars in thousands, except per share data)
2008
----
March June September December
1Q 2Q 3Q 4Q
-- -- -- --
Profitability Ratios (annualized)
---------------------------------
Common Return on Average Assets 1.75% 1.51% 1.44% 1.42%
Common Return on Average Tangible
Common Assets (6) 1.78% 1.54% 1.50% 1.48%
Common Return on Average
Shareholders' Equity 17.27% 14.78% 13.93% 13.71%
Common Return on Average Tangible
Common Equity (7) 20.37% 19.17% 22.95% 22.32%
Yield on Earning Assets (FTE) 6.49% 6.05% 5.92% 5.83%
Cost of Interest Bearing Funds 3.10% 2.43% 2.23% 2.06%
Net Interest Margin (FTE)(4) 3.99% 4.08% 4.07% 4.13%
Efficiency Ratio (FTE)(1) 44.23% 50.11% 43.67% 40.80%
Capitalization Ratios
---------------------
Dividends Paid to Net Income 51.23% 55.05% 54.17% 54.13%
Common Equity to Assets (8) 10.08% 10.07% 10.10% 10.11%
Leverage Ratio (2) 9.28% 8.05% 7.15% 7.30%
Risk Based Capital - Tier I (3) 10.29% 7.99% 8.23% 8.65%
Risk Based Capital - Tier II (3) 12.46% 11.12% 11.40% 11.82%
Tangible Common Equity/Tangible
Assets (8) 8.69% 6.25% 6.42% 6.41%
Definitions and reconciliation of GAAP to non-GAAP financial measures:
(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.
(5) Tangible Common Book Value
Common book value (GAAP basis) $14.18 $16.00 $16.34 $16.24
Effect of excluding intangible
assets (2.14) (6.48) (6.37) (6.37)
----- ----- ----- ----
Tangible common book value $12.04 $9.52 $9.97 $9.87
(6) Common Return on Average
Tangible Common Assets
Common return on average assets
(GAAP basis) 1.75% 1.51% 1.44% 1.42%
Effect of excluding intangible
assets 0.03% 0.03% 0.06% 0.06%
---- ---- ---- ----
Common return on average tangible
common assets 1.78% 1.54% 1.50% 1.48%
(7) Common Return on Average Tangible
Common Equity
Common return on average equity
(GAAP basis) 17.27% 14.78% 13.93% 13.71%
Effect of excluding intangible
assets 3.10% 4.39% 9.02% 8.61%
Effect of excluding preferred
stock 0.00% 0.00% 0.00% 0.00%
---- ---- ---- ----
Common return on average tangible
common equity 20.37% 19.17% 22.95% 22.32%
(8) Tangible Common Equity / Tangible
Assets
Common equity / Assets (GAAP
basis) 10.08% 10.07% 10.10% 10.11%
Effect of excluding intangible
assets -1.39% -3.82% -3.68% -3.70%
----- ----- ----- -----
Tangible common equity / Tangible
assets 8.69% 6.25% 6.42% 6.41%
2009
----
March June September December
1Q 2Q 3Q 4Q
-- -- -- --
Profitability Ratios (annualized)
---------------------------------
Common Return on Average Assets -0.29% -0.95% 0.73% 0.73%
Common Return on Average Tangible
Common Assets (6) -0.30% -0.99% 0.76% 0.76%
Common Return on Average
Shareholders' Equity -2.34% -7.44% 5.67% 5.56%
Common Return on Average Tangible
Common Equity (7) -4.53% -15.13% 11.75% 11.42%
Yield on Earning Assets (FTE) 5.27% 5.16% 5.14% 5.06%
Cost of Interest Bearing Funds 1.82% 1.65% 1.53% 1.46%
Net Interest Margin (FTE)(4) 3.82% 3.86% 3.94% 3.94%
Efficiency Ratio (FTE)(1) 53.28% 66.04% 51.32% 51.10%
Capitalization Ratios
---------------------
Dividends Paid to Net Income -273.87% -84.02% 53.77% 54.31%
Common Equity to Assets (8) 10.26% 10.09% 10.37% 10.74%
Leverage Ratio (2) 9.73% 9.56% 9.92% 10.26%
Risk Based Capital - Tier I (3) 11.58% 11.33% 11.57% 12.10%
Risk Based Capital - Tier II (3) 14.82% 14.60% 14.86% 15.43%
Tangible Common Equity/Tangible
Assets (8) 6.46% 6.23% 6.48% 6.84%
Definitions and reconciliation of GAAP to non-GAAP financial measures:
(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.
(5) Tangible Common Book Value
Common book value
(GAAP basis) $16.01 $15.48 $15.77 $16.14
Effect of excluding intangible
assets (6.33) (6.31) (6.33) (6.29)
----- ----- ----- -----
Tangible common book value $9.68 $9.17 $9.44 $9.85
(6) Common Return on Average
Tangible Common Assets
Common return on average assets
(GAAP basis) -0.29% -0.95% 0.73% 0.73%
Effect of excluding intangible
assets -0.01% -0.04% 0.03% 0.03%
----- ----- ---- ----
Common return on average tangible
common assets -0.30% -0.99% 0.76% 0.76%
(7) Common Return on Average Tangible
Common Equity
Common return on average equity
(GAAP basis) -2.34% -7.44% 5.67% 5.56%
Effect of excluding intangible
assets -1.08% -4.23% 3.38% 3.24%
Effect of excluding preferred
stock -1.11% -3.46% 2.70% 2.62%
----- ----- ---- ----
Common return on average tangible
common equity -4.53% -15.13% 11.75% 11.42%
(8) Tangible Common Equity / Tangible Assets
Common equity / Assets (GAAP
basis) 10.26% 10.09% 10.37% 10.74%
Effect of excluding intangible
assets -3.80% -3.86% -3.89% -3.90%
----- ----- ----- -----
Tangible common equity / Tangible
assets 6.46% 6.23% 6.48% 6.84%
Year-to-date
------------
December December
2009 2008
---- ----
Profitability Ratios (annualized)
---------------------------------
Common Return on Average Assets 0.05% 1.52%
Common Return on Average Tangible
Common Assets (6) 0.05% 1.57%
Common Return on Average
Shareholders' Equity 0.37% 14.77%
Common Return on Average Tangible
Common Equity (7) 0.76% 21.27%
Yield on Earning Assets (FTE) 5.16% 6.05%
Cost of Interest Bearing Funds 1.62% 2.41%
Net Interest Margin (FTE)(4) 3.89% 4.07%
Efficiency Ratio (FTE)(1) 55.49% 44.53%
-----
Definitions and reconciliation of GAAP to non-GAAP financial measures:
(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.
(5) Tangible Common Book Value
Common book value
(GAAP basis) $16.14 $16.24
Effect of excluding intangible
assets (6.29) (6.37)
----- -----
Tangible common book value $9.85 $9.87
(6) Common Return on Average
Tangible Common Assets
Common return on average assets
(GAAP basis) 0.05% 1.52%
Effect of excluding intangible
assets - 0.05%
---- ----
Common return on average
tangible
common assets 0.05% 1.57%
(7) Common Return on Average
Tangible Common Equity
Common return on average equity
(GAAP basis) 0.37% 14.77%
Effect of excluding intangible
assets 0.21% 6.50%
Effect of excluding preferred
stock 0.18% 0.00%
---- ----
Common return on average tangible
common equity 0.76% 21.27%
(8) Tangible Common Equity / Tangible Assets
Common equity / Assets (GAAP basis)
Effect of excluding intangible assets
Tangible common equity / Tangible assets
SOURCE S&T Bancorp, Inc.
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