S&T Bancorp Inc. (NASDAQ:STBA) Q1 2015 Earnings Conference Call Transcript
Apr 21, 2015 • 01:00 pm ET
Greetings and welcome to S&T Bancorp's First Quarter 2015 Earnings Conference Call. At this time all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Mr. Mark Kochvar. Thank you. You may begin.
Thank you. Good afternoon and thank you for participating in today's conference call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors, which is on the screen in front of you, who are using the webcast.
This statement provides the cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation. A copy of the first quarter earnings release can be obtained by clicking on the Press Release link on your screen or by visiting our Investor Relations website at www.stbancorp.com.
I'd now like to introduce Todd Brice, S&T's President and CEO, who will provide an overview of S&T's results.
Well, thank you Mark and good afternoon, everyone. As we announced in this morning's press release, we reported net income of $12.8 million, or $0.41 per share, compared to $14 million, or $0.47 per share, in the first quarter of 2014, and $14.5 million, or $0.49 per share, in the fourth quarter 2014.
Really, the big story this quarter is the consummation of our merger with Integrity Bank shares on March 4. This did however have an impact on our financial results this quarter. A one-time merger related charges were approximately $2.3 million, or $0.05 per share. But while it's been only a little over a month, we are very excited about our prospects in the south-central Pennsylvania marketplace.
The S&T, Integrity brand has been well received by clients and early results are very, very promising. The next milestone will be combining the banking entities and IT systems, which are going to incur on May 11th and our teams have been spending a considerable amount of time in preparation for the conversion and we do anticipate a smooth transition.
From a sales perspective, I really like our position across the organization, all of our lines of business including commercial banking, small business, retail mortgage and consumer banking. We have a seasoned team of bankers, who excel in developing deep relationship with clients and that's really is what we think as long-term value and benefit to our organization.
We're also happy with our results of the deposit side of our business this quarter. With the anticipated loan volumes that we expect to achieve in 2015, we made a strategic effort this year to focus on deposit gathering throughout the organization. And in Q1 deposits increased approximately $198 million, not including the merger.
The goal for the year as we have our deposit growth equal to our loan growth and we're off to a nice start. Once we've completed the Integrity conversion,