XML 35 R40.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Summary of Consideration, Assets Acquired and Liabilities Assumed
The following table provides a summary of the assets acquired and liabilities assumed by DNB, the preliminary estimates of the fair value adjustments necessary to adjust those acquired assets and assumed liabilities to estimated fair value and the preliminary estimates of the resultant fair values of those assets and liabilities by S&T. S&T intends to finalize its accounting for the acquisition of DNB within one year from the date of acquisition. The preliminary fair value adjustments shown in the following table continue to be evaluated by management and may be subject to further adjustment.
 
November 30, 2019
(dollars in thousands)
As Recorded by DNB
 
Preliminary Fair Value Adjustments(1)
 
As Recorded by S&T
Fair Value of Assets Acquired
 
 
 
 
 
Cash and cash equivalents
$
64,119

 
$
—

 
$
64,119

Securities and other investments
108,715

 
183

 
108,898

Loans
917,127

 
(8,143
)
 
908,984

Allowance for loan losses
(6,487
)
 
6,487

 
—

Goodwill
15,525

 
(15,525
)
 
—

Premises and equipment
6,782

 
8,090

 
14,872

Accrued interest receivable
4,138

 
—

 
4,138

Deferred income taxes
2,017

 
(3,298
)
 
(1,281
)
Core deposits and other intangible assets
269

 
(269
)
 
—

Other assets
24,883

 
(4,278
)
 
20,605

Total Assets Acquired
1,137,088

 
(16,753
)
 
1,120,335

Fair Value of Liabilities Assumed
 
 
 
 
 
Deposits
966,263

 
1,002

 
967,265

Borrowings
37,617

 
(276
)
 
37,341

Accrued interest payable and other liabilities
11,157

 
(3,184
)
 
7,973

Total Liabilities Assumed
1,015,037

 
(2,458
)
 
1,012,579

Total Net Assets Acquired
$
122,051

 
$
(14,295
)
 
$
107,756

Core Deposit Intangible Asset
 
 
 
 
$
7,288

Wealth Management Intangible Asset
 
 
 
 
1,772

Total Fair Value of Net Assets Acquired and Identified
 
 
 
 
$
116,816

Consideration Paid
 
 
 
 
 
Cash
 
 
 
 
$
360

Common stock
 
 
 
 
200,631

Fair Value of Total Consideration
 
 
 
 
$
200,991

Goodwill
 
 
 
 
$
84,175


(1)Management is continuing to evaluate the purchase accounting fair value adjustments related to loans, including loan classification, intangible assets, premises and equipment, deferred income taxes, other assets and borrowings until the final valuations and appraisals are complete. Any changes in preliminary estimates will be adjusted in goodwill in subsequent periods, but not extending beyond one year from the date of acquisition.
Schedule of Pro Forma Information
The following table presents unaudited pro forma financial information which combines the historical consolidated statements of income of S&T and DNB to give effect to the merger as if it had occurred on January 1, 2018 for the periods presented.
 
Unaudited Pro Forma Information December 31
(dollars in thousands, except per share data)
2019
 
2018
Total Revenue
$
341,117

 
$
325,668

Net Income(1)
120,964

 
116,046

 
 
 
 
Earnings Per Common Share:(1)
 
 
 
Basic
$
3.03

 
$
2.90

Diluted
$
3.03

 
$
2.88

(1)Excludes non-recurring merger-related expenses of $13.6 million, net of tax at 21 percent.