S&T BANCORP INCSTBA

S&T BANCORP INC Segments Disclosure

10-KFiled Feb 24, 20173 min read
SEGMENTS
We operate three reportable operating segments: Community Banking, Insurance and Wealth Management.
•Our Community Banking segment offers services which include accepting time and demand deposits and originating commercial and consumer loans.
•Our 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.
•Our 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 following represents total assets by reportable operating segment as of December 31:
(dollars in thousands)
2016

 
2015

Community Banking
$
6,930,712

 
$
6,305,046

Insurance
9,226

 
9,619

Wealth Management
3,115

 
3,689

Total Assets
$
6,943,053

 
$
6,318,354


The following tables provide financial information for our three segments. The financial results of the business segments include allocations for shared services based on an internal analysis that supports line of business and branch performance measurement. Shared services include expenses such as employee benefits, occupancy expense, computer support and other corporate overhead. Even with these allocations, the financial results are not necessarily indicative of the business segments’ financial condition and results of operations as if they existed as independent entities. The information provided under the caption “Eliminations” represents operations not considered to be reportable segments and/or general operating expenses and eliminations and adjustments, which are necessary for purposes of reconciling to the Consolidated Financial Statements.
 
For the Year Ended December 31, 2016
(dollars in thousands)
Community
Banking

Insurance

Wealth
Management

Eliminations

Consolidated

Interest income
$
227,756

$
2

$
459

$
(443
)
$
227,774

Interest expense
24,851

—

—

(336
)
24,515

Net interest income
202,905

2

459

(107
)
203,259

Provision for loan losses
17,965

—

—

—

17,965

Noninterest income
37,717

4,794

10,443

1,681

54,635

Noninterest expense
120,744

4,582

9,751

1,574

136,651

Depreciation expense
4,905

45

16

—

4,966

Amortization of intangible assets
1,543

50

22

—

1,615

Provision for income taxes
24,872

42

391

—

25,305

Net Income
$
70,593

$
77

$
722

$
—

$
71,392

 
For the Year Ended December 31, 2015
(dollars in thousands)
Community
Banking

Insurance

Wealth
Management

Eliminations

Consolidated

Interest income
$
203,439

$
2

$
508

$
(401
)
$
203,548

Interest expense
16,678

—

—

(681
)
15,997

Net interest income
186,761

2

508

280

187,551

Provision for loan losses
10,388

—

—

—

10,388

Noninterest income
34,106

5,035

11,412

480

51,033

Noninterest expense
115,998

4,365

9,037

760

130,160

Depreciation expense
4,664

50

25

—

4,739

Amortization of intangible assets
1,738

50

30

—

1,818

Provision for income taxes
23,209

200

989

—

24,398

Net Income
$
64,870

$
372

$
1,839

$
—

$
67,081

 
For the Year Ended December 31, 2014
(dollars in thousands)
Community
Banking

Insurance

Wealth
Management

Eliminations

Consolidated

Interest income
$
160,403

$
2

$
518

$
(400
)
$
160,523

Interest expense
13,989

—

—

(1,508
)
12,481

Net interest income
146,414

2

518

1,108

148,042

Provision for loan losses
1,715

—

—

—

1,715

Noninterest income
29,443

5,279

11,297

319

46,338

Noninterest expense
97,733

4,313

9,173

1,427

112,646

Depreciation expense
3,387

51

27

—

3,465

Amortization of intangible assets
1,039

51

39

—

1,129

Provision (benefit) for income taxes
16,311

303

901

—

17,515

Net Income
$
55,672

$
563

$
1,675

$
—

$
57,910

Historical Timeline

Fiscal YearFiled
2016Feb 24, 2017Showing above
2015Feb 23, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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