S&T BANCORP, INC. 
By INDIANA, Pa., Jan. 29, 2013 /PRNewswire/ -- S&T Bancorp, Inc. (NASDAQ: STBA), a full-service financial institution with office locations in 11 Pennsylvania counties, has announced its fourth quarter and full year earnings for 2012.
(Logo: http://photos.prnewswire.com/prnh/20070917/NEM099LOGO )
Todd D. Brice, president and chief executive officer of S&T Bancorp, Inc., offered the following highlights:
-- Fourth quarter earnings were $9.5 million compared to $12.6 million in
the third quarter of 2012. Diluted earnings per common share were $0.32
compared to $0.43 in the third quarter of 2012.
-- Net interest margin (FTE) increased in the fourth quarter compared to
the third quarter of 2012 both in rate, up 1 basis point to 3.51%, and
dollars, up $0.5 million to $35.4 million.
-- Average loans increased $59.8 million in the fourth quarter compared to
the third quarter of 2012.
-- Asset quality generally improved in the fourth quarter compared to the
third quarter of 2012. Non-performing assets decreased by $11.7
million.
-- Full year 2012 earnings were $34.2 million or $1.18 diluted earnings per
common share compared to 2011 earnings of $39.7 million or $1.41 diluted
earnings per common share.
"The fourth quarter demonstrated improvement across a number of fronts," said Todd Brice, president and chief executive officer of S&T Bancorp, Inc. "With our loan pipeline building over the past two quarters, we were able to book a significant amount of new loans in the fourth quarter, resulting in solid loan growth. This loan growth improved our asset mix and kept the net interest margin stable. In addition, we saw improvement on the asset quality front with the resolution of a number of problem credits."
Net Interest Income (FTE)
Net interest income improved this quarter by $0.5 million to $35.4 million compared to the third quarter of 2012. Our net interest margin rate increased by one basis point to 3.51% due in part to the improvement in asset mix that came with higher average balances in loans and securities, and a decline in average interest-bearing deposits with banks. Our cost of interest-bearing liabilities decreased by six basis points primarily due to repricing of core deposits and certificates of deposit.
Asset Quality
Asset quality metrics improved in many areas from the prior quarter, including decreases in non-performing loans (NPLs), OREO, and substandard loans. We resolved a number of problem credits during the quarter and experienced less than $6 million in new NPLs for the second quarter in a row. Net charge-offs of $4.0 million and provision for loan losses of $4.2 million for the fourth quarter of 2012 kept the allowance for loan losses essentially unchanged at $46.5 million or 1.38% of total loans at December 31, 2012.
Noninterest Income and Expense
Noninterest income decreased from the prior quarter by $1.0 million to $11.6 million, primarily due to normal seasonal fluctuations in insurance and merchant processing, and some non-recurring items. We also recognized $0.5 million of interest rate swap fees as our customers opted to lock in low rates for longer term loans. Noninterest expense decreased $1.3 million from the prior quarter to $29.7 million, primarily due to a decrease in the provision for unfunded commitments of $1.2 million, as a result of a large increase in construction related loan commitments in the third quarter of 2012.
Financial Condition
Assets increased from the prior quarter by $0.1 billion to $4.5 billion at December 31, 2012, primarily driven by loan growth. S&T's capital ratios are generally down slightly this quarter as loan growth outpaced increased capital from retained earnings. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
2012 Full Year
Full year 2012 earnings decreased by $5.5 million to $34.2 million and diluted earnings per common share decreased $0.23 to $1.18 compared to full year 2011. We completed two mergers during 2012, acquiring Mainline Bancorp Inc. in March and Gateway Bank of Pennsylvania (Gateway) in August. Average loans were flat comparing 2012 and 2011 despite the additional loans from the acquisitions. The low interest rate environment was a challenge to our net interest income, as earning asset rates reset faster than our ability to offset those decreases on the funding side. Net interest income (FTE) declined by $1.8 million compared to 2011 despite adding earning asset balances from the mergers.
Noninterest income increased $4.7 million, primarily due to increases in wealth management, mortgage banking and interest rate swap fees. Security gains also added $3.1 million more in 2012 than 2011. Non-interest expenses were $19.0 million higher in 2012 than in 2011. The merger transactions resulted in $6.1 million of one-time merger related expenses and approximately $5.0 million in additional normal ongoing expenses. Other significant expense increases included $2.0 million additional in pension expense and a $3.3 million increase in the provision for unfunded loan commitments.
We experienced asset quality challenges in the first half of 2012, which resulted in $7.2 million more in provision for loan losses in 2012 as compared to 2011. Also in 2012, we had no preferred dividend payments due to the redemption of $108.7 million of preferred stock from the U.S. Department of Treasury's Capital Purchase Program in December of 2011.
Merger Activity
On February 8, 2013, S&T anticipates the closing of the bank level merger of S&T Bank and Gateway. S&T Bancorp previously acquired Gateway on August 13, 2012. With the systems conversion to take place over the weekend of February 9-10, the two former Gateway offices in McMurray and Cranberry Township, PA will open on February 11, 2013 as full service offices of S&T Bank.
Conference Call
S&T Bancorp, Inc. will host its fourth quarter 2012 earnings conference call live over the Internet at 1:00 p.m. ET on Tuesday, January 29, 2013. To access the webcast, go to S&T Bancorp's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2012 Conference Call" and follow the instructions.
About S&T Bancorp, Inc.
Headquartered in Indiana, PA, S&T Bancorp, Inc. operates offices within Allegheny, Armstrong, Blair, Butler, Cambria, Clarion, Clearfield, Indiana, Jefferson, Washington and Westmoreland counties. With assets of $4.5 billion, S&T Bancorp, Inc. stock trades on the NASDAQ Global Select Market System under the symbol STBA. For more information, visit www.stbancorp.com.
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 Generally Accepted Accounting Principles (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 taxable 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 is 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
Unaudited
(in thousands, except per share
data)
For the Twelve Months Ended
December 31,
----------------------------
2012 2011
---- ----
Income Statements
-----------------
Interest Income $156,251 $165,079
Interest Expense 21,024 27,733
------ ------
Net Interest Income 135,227 137,346
Taxable Equivalent Adjustment 4,471 4,155
----- -----
Net Interest Income (FTE) (3) 139,698 141,501
Provision for Loan Losses 22,815 15,609
------ ------
Net Interest Income After
Provision (FTE) 116,883 125,892
------- -------
Security Gains (Losses), Net 3,016 (124)
Wealth Management 9,808 8,180
Service Charges and Fees 9,992 9,978
Insurance 8,448 8,314
Other 20,648 17,709
------ ------
Total Noninterest Income 48,896 44,181
Salaries and Employee Benefits 60,256 51,078
Occupancy and Equipment Expense,
Net 12,867 11,884
Data Processing Expense 9,620 6,853
FDIC Expense 2,926 3,570
Other 37,194 30,523
------ ------
Total Noninterest Expense 122,863 103,908
------- -------
Income Before Taxes 45,932 66,041
Taxable Equivalent Adjustment 4,471 4,155
Applicable Income Taxes 7,261 14,622
----- ------
Net Income 34,200 47,264
Preferred Stock Dividends and
Discount Amortization - 7,611
--- -----
Net Income Available to Common
Shareholders $34,200 $39,653
======= =======
Per Common Share Data:
Average Shares Outstanding -
Diluted 29,008,880 27,990,150
Diluted Earnings Per Common
Share* $1.18 $1.41
Dividends Declared $0.60 $0.60
* Diluted earnings per share under the two-class method is determined on the net income reported on the income
statement less earnings allocated to participating securities.
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands, except per share data)
2012 2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Income Statements
-----------------
Interest Income $38,920 $38,820 $40,258
Interest Expense 4,629 5,025 6,192
----- ----- -----
Net Interest Income 34,291 33,795 34,066
Taxable Equivalent
Adjustment 1,094 1,119 1,101
----- ----- -----
Net Interest Income
(FTE) (2) 35,385 34,914 35,167
Provision for Loan
Losses 4,215 2,305 2,336
----- ----- -----
Net Interest Income
After Provision (FTE) 31,170 32,609 32,831
------ ------ ------
Security Gains
(Losses) , Net - 2,170 -
Wealth Management 2,415 2,397 2,622
Service Charges and
Fees 2,585 2,567 2,021
Insurance 1,722 2,402 1,809
Other 4,843 5,210 5,122
----- ----- -----
Total Noninterest
Income 11,565 12,576 11,574
Salaries and Employee
Benefits 14,323 14,819 13,446
Occupancy and
Equipment Expense,
Net 3,412 3,392 2,831
Data Processing
Expense 2,172 2,012 1,925
FDIC Expense 762 838 678
Other 9,048 9,957 7,792
----- ----- -----
Total Noninterest
Expense 29,717 31,018 26,672
------ ------ ------
Income Before Taxes 13,018 16,337 17,733
Taxable Equivalent
Adjustment 1,094 1,119 1,101
Applicable Income
Taxes 2,400 2,623 4,376
----- ----- -----
Net Income 9,524 12,595 12,256
Preferred Stock
Dividends and
Discount Amortization - - 2,939
--- --- -----
Net Income Available
to Common
Shareholders $9,524 $12,595 $9,317
====== ======= ======
Per Common Share Data:
Shares Outstanding at
End of Period 29,732,209 29,733,592 28,131,249
Average Shares
Outstanding -Diluted 29,659,999 29,277,232 28,068,064
Diluted Earnings Per
Common Share * $0.32 $0.43 $0.33
Dividends Declared $0.15 $0.15 $0.15
Common Book Value $18.08 $17.97 $17.44
Tangible Common Book
Value (1) $11.98 $11.86 $11.36
Market Value $18.07 $17.61 $19.55
* Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less
earnings allocated to participating securities.
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
For the Twelve Months Ended December 31,
----------------------------------------
2012 2011
---- ----
Net Interest Margin (FTE) (YTD Averages)(3)
------------------------------------------
Assets
Loans $3,213,018 4.59% $3,216,857 4.88%
Interest-bearing Deposits with Banks 289,947 0.25% 123,714 0.24%
Securities 404,810 3.01% 356,017 3.39%
Total Interest-earning Assets 3,907,775 4.10% 3,696,588 4.58%
Noninterest-earning Assets 404,763 376,020
Total Assets $4,312,538 $4,072,608
========== ==========
Liabilities and Shareholders' Equity
NOW/Money Market/Savings $1,518,602 0.20% $1,297,360 0.15%
Certificates of Deposit 1,104,262 1.24% 1,181,822 1.77%
Borrowed Funds < 1 Year 97,600 0.21% 42,135 0.13%
Borrowed Funds > 1 Year 124,460 3.22% 122,270 3.87%
Total Interest-bearing Liabilities 2,844,924 0.74% 2,643,587 1.05%
Noninterest-bearing Liabilities
Demand Deposits 877,056 792,911
Shareholders' Equity/Other 590,558 636,110
Total Noninterest-bearing Liabilities 1,467,614 1,429,021
--------- ---------
Total Liabilities and Shareholders' Equity $4,312,538 $4,072,608
========== ==========
Net Interest Margin 3.57% 3.83%
2012 2012 2011
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Net Interest Margin (FTE) (QTD Averages)(2)
------------------------------------------
Assets
Loans $3,286,039 4.44% $3,226,219 4.52% $3,126,126 4.83%
Interest-bearing Deposits with Banks 267,719 0.29% 329,985 0.28% 189,726 0.28%
Securities 445,059 2.76% 404,881 2.89% 372,815 3.36%
Total Interest-earning Assets 3,998,817 3.97% 3,961,085 4.00% 3,688,667 4.45%
Noninterest-earning Assets 411,078 411,528 381,191
Total Assets $4,409,895 $4,372,613 $4,069,858
========== ========== ==========
Liabilities and Shareholders' Equity
NOW/Money Market/Savings $1,614,444 0.19% $1,567,005 0.21% $1,338,276 0.14%
Certificates of Deposit 1,058,308 1.06% 1,079,894 1.15% 1,135,517 1.64%
Borrowed Funds < 1 Year 61,588 0.16% 94,789 0.23% 41,261 0.11%
Borrowed Funds > 1 Year 124,947 3.15% 125,511 3.20% 122,660 3.21%
Total Interest-bearing Liabilities 2,859,287 0.64% 2,867,199 0.70% 2,637,714 0.93%
Noninterest-bearing Liabilities
Demand Deposits 929,575 903,949 800,188
Shareholders' Equity/Other 621,033 601,465 631,956
Total Noninterest-bearing Liabilities 1,550,608 1,505,414 1,432,144
--------- --------- ---------
Total Liabilities and Shareholders' Equity $4,409,895 $4,372,613 $4,069,858
========== ========== ==========
Net Interest Margin 3.51% 3.50% 3.79%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
2012 2012 2011
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Balance Sheets (Period-End)
--------------------------
Assets
Cash $80,595 $62,457 $61,672
Interest-bearing Deposits with Banks 257,116 284,619 208,854
Securities 467,581 432,057 375,812
Loans, Net 3,322,638 3,236,066 3,083,768
Other Assets 398,772 407,059 389,888
Total Assets $4,526,702 $4,422,258 $4,119,994
========== ========== ==========
Liabilities and Shareholders' Equity
Noninterest-bearing Demand Deposits $960,980 $928,000 $818,686
Interest-bearing Deposits 2,677,448 2,666,406 2,517,173
Short-term Borrowings 137,582 80,268 105,370
Long-term Debt 124,720 125,281 122,493
Other Liabilities 88,550 88,061 65,746
Shareholders' Equity 537,422 534,242 490,526
Total Liabilities and Shareholders' Equity $4,526,702 $4,422,258 $4,119,994
========== ========== ==========
2012 2012 2011
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Loans (Period-End)
-----------------
Consumer
Home Equity $431,335 $447,123 $411,404
Residential Mortgage 427,303 409,967 358,846
Installment & Other Consumer 73,875 75,157 67,131
Construction 2,437 2,098 2,440
Total Consumer Loans 934,950 934,345 839,821
------- ------- -------
Commercial
Commercial Real Estate 1,452,133 1,438,526 1,415,333
Commercial & Industrial 791,396 748,569 685,753
Construction 168,143 157,717 188,852
Total Commercial Loans 2,411,672 2,344,812 2,289,938
--------- --------- ---------
Total Portfolio Loans 3,346,622 3,279,157 3,129,759
Loans Held for Sale 22,499 3,188 2,850
Total Loans $3,369,121 $3,282,345 $3,132,609
========== ========== ==========
Nonperforming Loans (NPL)
------------------------
Consumer % NPL % NPL % NPL
----- ----- -----
Home Equity $3,653 0.85% $3,994 0.89% $2,936 0.71%
Residential Mortgage 7,278 1.70% 7,584 1.85% 7,228 2.01%
Installment & Other Consumer 40 0.05% 49 0.07% 4 0.01%
Construction 218 8.95% 399 19.02% 181 7.42%
Total Consumer Loans 11,189 1.20% 12,026 1.29% 10,349 1.23%
------ ------ ------
Commercial
Commercial Real Estate 30,556 2.10% 32,828 2.28% 31,648 2.24%
Commercial & Industrial 6,435 0.81% 6,851 0.92% 7,571 1.10%
Construction 6,778 4.03% 14,411 9.14% 6,547 3.47%
Total Commercial Loans 43,769 1.81% 54,090 2.31% 45,766 2.00%
Total Nonperforming Loans $54,958 1.64% $66,116 2.02% $56,115 1.79%
======= ======= =======
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
2012 2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and Commercial Real Estate (CRE)
--------------------------------------------
PA vs. Out-of-State
-------------------
Pennsylvania $1,319,127 $1,312,646 $1,301,211
Out-of-State 301,149 283,597 302,974
Total Construction and CRE PA vs. Out-of-State $1,620,276 $1,596,243 $1,604,185
========== ========== ==========
Construction and CRE - NPL PA vs. Out-of-State % NPL % NPL % NPL
---------------------------------------------- ----- ----- -----
Pennsylvania $34,217 2.59% $41,009 3.12% $33,665 2.59%
Out-of-State 3,117 1.04% 6,230 2.20% 4,530 1.50%
Total Construction and CRE - NPL PA vs. Out-of-State $37,334 2.30% $47,239 2.96% $38,195 2.38%
======= ======= =======
2012 2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and CRE by Type
----------------------------
Retail/Strip Malls $280,047 $275,566 $288,453
Offices 198,818 199,286 218,619
Residential Rental Properties 185,354 171,891 198,011
Hotels 176,862 193,460 193,833
Real Estate/Land Development - Commercial 146,216 129,738 102,623
Healthcare/Education 111,152 99,018 105,642
Manufacturing/Industrial/Warehouse 106,589 99,315 95,883
Flex/Mixed Use 91,576 96,403 97,766
Recreational 38,013 39,267 43,152
Convenience Stores 36,569 28,451 29,489
Restaurant 30,391 30,173 29,921
Real Estate Development - Residential 23,333 29,142 60,808
Miscellaneous * 195,356 204,533 139,985
Total Construction and CRE by Type $1,620,276 $1,596,243 $1,604,185
========== ========== ==========
2012 2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Construction and CRE - NPL by Type % NPL % NPL % NPL
---------------------------------- ----- ----- -----
Retail/Strip Malls $7,332 2.62% $7,617 2.76% $5,285 1.83%
Offices 3,488 1.75% 4,529 2.27% 3,973 1.82%
Residential Rental Properties 2,864 1.55% 3,488 2.03% 2,851 1.44%
Hotels - - - - 700 0.36%
Real Estate/Land Development - Commercial 3,503 2.40% 7,879 6.07% 771 0.75%
Healthcare/Education 267 0.24% 581 0.59% 311 0.29%
Manufacturing/Industrial/Warehouse 3,985 3.74% 4,227 4.26% 4,638 4.84%
Flex/Mixed Use 771 0.84% 51 0.05% - -
Recreational 7,824 20.58% 7,956 20.26% 9,365 21.70%
Convenience Stores - - 73 0.26% - -
Restaurant 1,329 4.37% 1,583 5.25% 940 3.14%
Real Estate Development - Residential 3,275 14.03% 6,532 22.41% 6,284 10.33%
Miscellaneous 2,696 1.38% 2,723 1.33% 3,077 2.20%
Total Construction and CRE - NPL by Type $37,334 2.30% $47,239 2.96% $38,195 2.38%
======= ======= =======
* Included in the miscellaneous category of Construction and CRE by type are loans from the recent acquisition of Gateway Bank on August 9, 2012 of $38.6 million. Detail by type was not available.
S&T Bancorp,
Inc.
Consolidated
Selected
Financial
Data
Unaudited
(in thousands)
2012 2012 2011
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Commercial
Credit
Exposure
----------
Pass
Commercial
Real Estate $1,265,811 $1,251,422 $1,229,005
Commercial &
Industrial 718,070 674,819 600,895
Construction 118,841 105,684 136,270
Total Pass $2,102,722 $2,031,925 $1,966,170
========== ========== ==========
Special
Mention
Commercial
Real Estate $96,156 $92,544 $84,400
Commercial &
Industrial 42,016 32,952 33,135
Construction 30,748 23,043 17,106
Total Special
Mention $168,920 $148,539 $134,641
======== ======== ========
Substandard
Commercial
Real Estate $90,167 $94,560 $101,928
Commercial &
Industrial 31,310 40,798 51,723
Construction 18,554 28,990 35,476
Total
Substandard $140,031 $164,348 $189,127
======== ======== ========
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
(in thousands)
2012 2012 2011
---- ----
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Asset Quality Data
------------------
Nonperforming Loans $54,958 $66,116 $56,115
Assets Acquired through Foreclosure or Repossession 911 1,468 3,967
Nonperforming Assets 55,869 67,584 60,082
Troubled Debt Restructurings (Nonaccrual) 18,940 23,414 18,184
Troubled Debt Restructurings (Accruing) 41,521 37,110 49,716
Total Troubled Debt Restructurings 60,461 60,524 67,900
Allowance for Loan Losses 46,484 46,279 48,841
Nonperforming Loans / Loans 1.63% 2.01% 1.79%
Nonperforming Assets / Loans plus OREO 1.66% 2.06% 1.92%
Allowance for Loan Losses / Loans 1.38% 1.41% 1.56%
Allowance for Loan Losses / Nonperforming Loans 85% 70% 87%
Net Loan Charge-offs (Recoveries) 4,011 2,714 5,028
Net Loan Charge-offs (Recoveries) (Annualized) / Average Loans 0.49% 0.33% 0.64%
Profitability Ratios (Annualized)
--------------------------------
Common Return on Average Assets 0.86% 1.15% 0.91%
Common Return on Average Tangible Assets(4) 0.90% 1.19% 0.95%
Common Return on Average Equity 7.05% 9.56% 6.41%
Common Return on Average Tangible Common Equity (5) 10.65% 14.52% 11.29%
Efficiency Ratio (FTE) (6) 63.29% 65.31% 57.06%
Capitalization Ratios
---------------------
Dividends Paid to Net Income 46.83% 34.47% 45.25%
Common Equity / Assets 11.87% 12.08% 11.91%
Tier 1 Leverage Ratio 9.31% 9.27% 9.17%
Risk-based Capital - Tier 1 11.98% 12.01% 11.63%
Risk-based Capital - Total 15.39% 15.45% 15.20%
Tangible Common Equity / Tangible Assets(7) 8.20% 8.32% 8.09%
For the Twelve Months Ended
December 31,
---------------------------
2012 2011
---- ----
Asset Quality Data
------------------
Net Loan Charge-offs (Recoveries) 25,173 18,155
Net Loan Charge-offs (Recoveries) / Average Loans 0.78% 0.56%
Profitability Ratios (Annualized)
--------------------------------
Common Return on Average Assets 0.79% 0.97%
Common Return on Average Tangible Common Assets (8) 0.83% 1.02%
Common Return on Average Shareholders' Equity 6.62% 6.78%
Common Return on Average Tangible Common Equity (9) 10.07% 12.62%
Efficiency Ratio (FTE) (6) 65.15% 55.96%
Capitalization Ratios
---------------------
Dividends Paid to Net Income 50.75% 42.44%
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
2012 2012 2011
Fourth Third Fourth
Quarter Quarter Quarter
------- ------- -------
Definitions and Reconciliation of GAAP to
-----------------------------------------
Non-GAAP Financial Measures:
----------------------------
(1) Tangible Common Book Value
Common Book Value (GAAP Basis) $18.08 $17.97 $17.44
Effect of Excluding Intangible Assets (6.10) (6.11) (6.08)
Tangible Common Book Value $11.98 $11.86 $11.36
(2) Interest Income on a Fully Taxable Equivalent Basis
Interest Income (GAAP Basis) $38,920 $38,820 $40,258
Taxable Equivalent Adjustment to Interest Income (Non-GAAP) 1,094 1,119 1,101
Interest Income on a Fully Taxable Equivalent Basis(Non-GAAP) 40,014 39,939 41,359
Interest Expense (GAAP Basis) 4,629 5,025 6,192
Net Interest Income on a Fully Taxable Equivalent Basis(Non-GAAP) $35,385 $34,914 $35,167
(4) Common Return on Average Tangible Assets
Common Return on Average Assets (GAAP Basis) 0.86% 1.15% 0.91%
Effect of Excluding Intangible Assets 0.04% 0.04% 0.04%
Common Return on Average Tangible Assets 0.90% 1.19% 0.95%
(5) Common Return on Average Tangible Common Equity
Common Return on Average Common Equity (GAAP Basis) 7.05% 9.56% 6.41%
Effect of Excluding Intangible Assets 3.60% 4.96% 2.17%
Effect of Excluding Preferred Stock - - 2.71%
Common Return on Average Tangible Common Equity 10.65% 14.52% 11.29%
(6) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.
(7) Tangible Common Equity / Tangible Assets
Common Equity / Assets(GAAP Basis) 11.87% 12.08% 11.91%
Effect of Excluding Intangible Assets -3.67% -3.76% -3.82%
Tangible Common Equity / Tangible Assets 8.20% 8.32% 8.09%
For the Twelve Months Ended December
31,
------------------------------------
2012 2011
---- ----
(3) Interest Income on a Fully Taxable Equivalent Basis
Interest Income (GAAP Basis) $156,251 $165,079
Taxable Equivalent Adjustment to Interest Income 4,471 4,155
Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) 160,722 169,234
Interest Expense (GAAP Basis) 21,024 27,733
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $139,698 $141,501
(8) Common Return on Average Tangible Common Assets
Common Return on Average Assets (GAAP Basis) 0.79% 0.97%
Effect of Excluding Intangible Assets 0.04% 0.05%
Common Return on Average Tangible Common Assets 0.83% 1.02%
(9) Common Return on Average Tangible Common Equity
Common Return on Average Shareholders' Equity (GAAP Basis) 6.62% 6.78%
Effect of Excluding Intangible Assets 3.45% 3.03%
Effect of Excluding Preferred Stock - 2.81%
Common Return on Average Tangible Common Equity 10.07% 12.62%
SOURCE S&T Bancorp, Inc.
