S&T Bancorp, Inc. : STBA-US: Dividend Analysis : November 02nd, 2017 (record date) : By the numbers : November 2, 2017

Our analysis is based on comparing S&T Bancorp, Inc. with the following peers – Univest Corporation of Pennsylvania, ACNB Corporation, Bryn Mawr Bank Corporation, F.N.B. Corporation, First Commonwealth Financial Corporation, Citizens & Northern Corporation, M&T Bank Corporation, Tompkins Financial Corporation and Penns Woods Bancorp, Inc. (UVSP-US, ACNB-US, BMTC-US, FNB-US, FCF-US, CZNC-US, MTB-US, TMP-US and PWOD-US).

S&T Bancorp, Inc.’s dividend yield is 2.53 percent and its dividend payout is 34.33 percent. This compares to a peer average dividend yield of 2.64 percent and a payout level of 43.75 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 50 out of a possible score of 100 is only about average.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), STBA-US paid a medium quality dividend, which represents a yield of 1.98% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 1 was high quality, 2 were medium quality and 2 were low quality.
  • The ending cash balance, with a dividend coverage of 1.95x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), STBA-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 3.53x), investing cash flow (coverage of -22.94x), issuance cash flow (coverage of 21.91x) and twelve-month prior cash (coverage of 2.10x), for a total dividend coverage of 5.27x.

STBA-US’s issuance cash flow includes outflows from net share buybacks (coverage of -0.00x). Thus, the total coverage including share buybacks is 2.96x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 3.23 2.41 2.27 2.28 1.97 2.53
Dividend Payout (%) 50.85 35.88 34.87 36.87 37.56 34.33

A complete list of metrics and analysis is available on the company page.

Company Profile

S&T Bancorp, Inc. is a bank holding company. The company through its subsidiaries, S&T Bank, 9th Street Holdings, Inc. and STBA Capital Trust I offers financial services and insurance solutions for both business and individual clients. It operates through the following business segments: Community Banking, Wealth Management and Insurance. The Community Banking segment offers services, which include accepting time and demand accounts, originating commercial and consumer loans and providing letters of credit and credit card services. The Wealth Management segment offers discount brokerage services, services as executor and trustee under wills and deeds, guardian and custodian of employee benefits and other trust and brokerage services, as well as a registered investment advisor that manages private investment accounts for individuals and institutions. The Insurance segment includes a full-service insurance agency offering commercial property and casualty insurance, group life and health coverage, employee benefit solutions and personal insurance lines. S&T Bancorp was founded on March 17, 1983 and is headquartered in Indiana, PA.

Disclaimer

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