S&T BANCORP INC - FORM 8-K - EX-99.1 - July 22, 2021

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EX-99.3 - EX-99.3 - S&T BANCORP INCstba-2021x6x30divxex993.htm
EX-99.2 - EX-99.2 - S&T BANCORP INCwebcalldeck2021-06.htm
8-K - 8-K - S&T BANCORP INCstba-20210719.htm

CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
mark.kochvar@stbank.com
stbancorp.com
earn_image1a15a.jpg
FOR IMMEDIATE RELEASE                


S&T Bancorp, Inc. Announces Second Quarter 2021 Net Income

Indiana, Pa. - July 22, 2021 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York, announced net income of $28.4 million, or $0.72 per diluted share, for the second quarter of 2021 compared to net income of $31.9 million, or $0.81 per diluted share, for the first quarter of 2021, and a net loss of ($33.1) million, or ($0.85) per diluted share, for the second quarter of 2020. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million, or $1.19 per diluted share, resulting in a net loss for the second quarter of 2020.

New Chief Executive Officer

Christopher J. McComish has been appointed as the company's chief executive officer, effective August 23, 2021. Chris McComish has over 30 years of financial service experience, providing executive leadership to consumer banking, commercial banking, and wealth management businesses. He has a strong track record of driving growth and transformation while enhancing both digital and human customer engagement. Most recently, Chris served as senior executive vice president of TCF Bank, leading all consumer banking lines of business as well as business banking and wealth management. Prior to TCF, he served as president and CEO of Scottrade Bank, the banking subsidiary of Scottrade Financial Services, Inc. In addition, he served as the head of personal banking and then as chief operating officer for personal and commercial banking at BMO Harris Bank. He began his career at Wachovia Bank, where he spent over 20 years in various regional and line of business leadership roles.

"I am honored to have the opportunity to partner with Chris to lead this great organization," said David Antolik, president and interim chief executive officer. "Chris's experience in executive leadership roles in banking combined with my 30 plus years of experience at S&T puts us in a position of strength to move our company forward."

Second Quarter of 2021 Highlights:

•Christopher McComish has been appointed as the chief executive officer, effective August 23, 2021.
•Return on average assets (ROA) of 1.21%, return on average equity (ROE) of 9.65%, return on average tangible equity (ROTE) (non-GAAP) of 14.41% and pre-tax pre-provision income to average assets (PTPP) (non-GAAP) of 1.61%.
•Net interest margin (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% for the first quarter of 2021 primarily due to higher cash balances and a lower Paycheck Protection Program (PPP) contribution.
•Ex-PPP portfolio loans decreased $12.7 million and total portfolio loans decreased $175.8 million compared to March 31, 2021.
•Deposits increased $139.2 million to $8.0 billion at June 30, 2021 compared to March 31, 2021.
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S&T Earnings Release -2

•The allowance for credit losses to total portfolio loans was 1.56% at June 30, 2021 compared to 1.60% at March 31, 2021.
•S&T's Board of Directors declared a $0.28 per share dividend which was consistent with the $0.28 per share dividend declared in the same period in the prior year.

"We continue to see positive signs of a recovery across all of our markets," said David Antolik. "Customer activity has increased substantially and our loan pipeline exceeds pre-pandemic levels making us optimistic about our growth prospects for the second half of 2021."

Net Interest Income

Net interest income decreased $2.4 million to $68.3 million for the second quarter of 2021 compared to $70.7 million for the first quarter of 2021. The decrease in net interest income was primarily due to a lower contribution from PPP and lower average loan balances ex-PPP. The PPP contribution decreased $1.7 million to $4.1 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Average portfolio loans ex-PPP decreased $123.1 million compared to the first quarter of 2021. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% in the prior quarter. The decline in NIM (FTE) (non-GAAP) was due to a higher average cash balance (18 basis points), a lower PPP contribution (8 basis points) and lower loan yields (7 basis points). Partially offsetting these declines were lower costing liabilities which increased NIM (FTE) (Non-GAAP) by 5 basis points.

Asset Quality

The provision for credit losses decreased $0.5 million to $2.6 million for the second quarter of 2021 compared to $3.1 million in the first quarter of 2021. Net loan charge-offs were $7.5 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Total nonperforming loans decreased $22.6 million to $112.6 million, or 1.61% of total loans, at June 30, 2021 compared to $135.2 million, or 1.88% of total loans at March 31, 2021. The allowance for credit losses was 1.56% of total portfolio loans as of June 30, 2021 compared to 1.60% at March 31, 2021. The allowance for credit losses was 1.64% of total portfolio ex-PPP loans at June 30, 2021 compared to 1.72% at March 31, 2021.

Noninterest Income and Expense

Noninterest income decreased $1.8 million to $15.4 million in the second quarter of 2021 compared to
$17.2 million in the first quarter of 2021. Mortgage banking income decreased $2.6 million due to a lower volume of loans sold and a decrease in the mortgage servicing rights valuation. Debit and credit card fees were strong with a $0.6 million increase compared to the prior quarter.

Noninterest expense increased $0.2 million to $45.8 million for the second quarter of 2021 compared to $45.6 million in the first quarter of 2021. Salaries and employee benefits increased $1.2 million due to annual merit increases and higher incentives.

Financial Condition

Total assets increased $166.9 million to $9.5 billion at June 30, 2021 compared to $9.3 billion at March 31, 2021. Cash increased $313.8 million to $985.3 million at June 30, 2021 compared to March 31, 2021 due to PPP forgiveness and an increase in deposits as a result of stimulus programs. Total portfolio loans decreased
$175.8 million compared to March 31, 2021. PPP originations were $31.1 million and PPP forgiveness was $194.2 million during the second quarter of 2021. Loan activity continues to be impacted by the pandemic. Deposits increased $139.2 million with a favorable mix of higher deposits across all categories except certificates of deposits. S&T continues to maintain a strong capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
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S&T Earnings Release -3


Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend on July 19, 2021. This is unchanged from the same period in the prior year. The dividend is payable August 19, 2021 to shareholders of record on August 5, 2021.

Conference Call

S&T will host its second quarter 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 22, 2021. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd Quarter 2021 Earnings Conference Call” and follow the instructions. After the live presentation, the webcast will be archived on this website for at least 90 days. A replay of the call will also be available until July 29, 2021, by dialing 1.877.481.4010; the Conference ID is 41690.

About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.5 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank was established in 1902 and operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.

This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, “ believe”, “assume”, “strategy”, “trend”, “plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, including DNB, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider;
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S&T Earnings Release -4

our ability to attract and retain talented executives and employees; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2020, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.



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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
5
202120212020
SecondFirstSecond
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$66,942 $70,232 $75,498 
Investment Securities:
Taxable3,793 3,563 3,791 
Tax-exempt690 813 959 
Dividends152 173 231 
Total Interest and Dividend Income71,577 74,781 80,479 
INTEREST EXPENSE
Deposits2,652 3,481 9,227 
Borrowings and junior subordinated debt securities621 641 1,104 
Total Interest Expense3,273 4,122 10,331 
NET INTEREST INCOME68,304 70,659 70,148 
Provision for credit losses2,561 3,137 86,759 
Net Interest Income After Provision for Credit Losses65,743 67,522 (16,611)
NONINTEREST INCOME
Net gain on sale of securities29 — 142 
Debit and credit card4,744 4,162 3,612 
Service charges on deposit accounts3,642 3,474 2,805 
Wealth management3,167 2,944 2,585 
Mortgage banking1,734 4,310 2,623 
Commercial loan swap income299 95 945 
Other1,809 2,251 2,511 
Total Noninterest Income15,424 17,236 15,224 
NONINTEREST EXPENSE
Salaries and employee benefits24,515 23,327 21,419 
Data processing and information technology3,787 4,225 3,585 
Occupancy3,434 3,827 3,437 
Furniture, equipment and software2,402 2,640 3,006 
Other taxes1,832 1,436 1,604 
Professional services and legal1,637 1,531 1,932 
Marketing996 1,322 979 
FDIC insurance924 1,046 1,048 
Other6,302 6,226 6,468 
Total Noninterest Expense45,829 45,580 43,478 
Income (Loss) Before Taxes35,338 39,178 (44,865)
Income tax expense (benefit)6,971 7,276 (11,793)
Net Income (Loss)$28,367 $31,902 ($33,072)
Per Share Data
Shares outstanding at end of period39,345,719 39,268,359 39,263,460 
Average shares outstanding - diluted39,048,971 39,021,208 39,013,161 
Diluted earnings (loss) per share$0.72 $0.81 ($0.85)
Dividends declared per share$0.28 $0.28 $0.28 
Dividend yield (annualized)3.58 %3.34 %4.78 %
Dividends paid to net income38.74 %34.40 %NM
Book value$30.21 $29.75 $28.93 
Tangible book value (1)
$20.57 $20.08 $19.22 
Market value$31.30 $33.50 $23.45 
Profitability Ratios (Annualized)
Return on average assets1.21 %1.42 %(1.41 %)
Return on average shareholders' equity9.65 %11.15 %(11.17 %)
Return on average tangible shareholders' equity (2)
14.41 %16.78 %(16.19 %)
Pre-tax pre-provision income / average assets(3)
1.61 %1.89 %1.79 %
Efficiency ratio (FTE) (4)
54.37 %51.47 %50.51 %
NM - Not Meaningful
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
6
Six Months Ended June 30,
(dollars in thousands, except per share data)20212020
INTEREST AND DIVIDEND INCOME
Loans, including fees$137,174 $157,549 
Investment Securities:
Taxable7,356 8,074 
Tax-exempt1,503 1,762 
Dividends325 684 
Total Interest and Dividend Income146,358 168,069 
INTEREST EXPENSE
Deposits6,133 24,565 
Borrowings and junior subordinated debt securities1,263 3,320 
Total Interest Expense7,396 27,885 
NET INTEREST INCOME138,962 140,184 
Provision for credit losses5,699 106,809 
Net Interest Income After Provision for Credit Losses133,263 33,375 
NONINTEREST INCOME
Net gain on sale of securities29 142 
Debit and credit card8,906 3,859 
Service charges on deposit accounts7,116 6,814 
Wealth management6,111 4,949 
Mortgage banking6,044 7,093 
Commercial loan swap income393 3,429 
Other4,062 1,341 
Total Noninterest Income32,661 27,627 
NONINTEREST EXPENSE
Salaries and employee benefits47,842 42,754 
Data processing and information technology8,012 7,453 
Occupancy7,261 7,202 
Furniture, equipment and software5,042 5,525 
Other taxes3,268 3,205 
Professional services and legal3,168 2,980 
Marketing2,318 2,090 
FDIC insurance1,970 1,818 
Merger related expenses— 2,342 
Other12,528 14,500 
Total Noninterest Expense91,409 89,869 
Income (Loss) Before Taxes74,515 (28,867)
Income tax expense (benefit)14,247 (9,026)
Net Income (Loss)$60,268 ($19,841)
Per Share Data
Average shares outstanding - diluted39,034,808 39,142,351 
Diluted earnings (loss) per share$1.54 ($0.51)
Dividends declared per share$0.56 $0.56 
Dividends paid to net income36.44%NM
Profitability Ratios (annualized)
Return on average assets1.31 %(0.44 %)
Return on average shareholders' equity10.39 %(3.35 %)
Return on average tangible shareholders' equity (5)
15.57 %(4.68 %)
Pre-tax pre-provision income / average assets (6)
1.75 %1.72 %
Efficiency ratio (FTE) (7)
52.89 %51.68 %
NM - Not Meaningful
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
7
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks, including interest-bearing deposits$985,278 $671,429 $351,365 
Securities, at fair value840,375 817,299 804,366 
Loans held for sale7,648 12,794 14,259 
Commercial loans:
Commercial real estate3,246,533 3,284,555 3,345,513 
Commercial and industrial1,774,358 1,931,711 2,140,355 
Commercial construction478,153 460,417 459,264 
Total Commercial Loans5,499,044 5,676,683 5,945,132 
Consumer loans:
Residential mortgage859,329 881,245 971,023 
Home equity547,658 530,350 539,519 
Installment and other consumer88,210 80,646 79,816 
Consumer construction13,110 14,244 13,068 
Total Consumer Loans1,508,307 1,506,485 1,603,426 
Total Portfolio Loans7,007,351 7,183,168 7,548,558 
Allowance for credit losses(109,636)(115,101)(114,609)
Total Portfolio Loans, Net6,897,715 7,068,067 7,433,949 
Federal Home Loan Bank and other restricted stock, at cost10,106 12,199 15,151 
Goodwill373,424 373,424 373,289 
Other assets381,286 373,767 481,917 
Total Assets$9,495,832 $9,328,979 $9,474,296 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,668,833 $2,539,594 $2,250,958 
Interest-bearing demand979,300 976,225 1,055,261 
Money market2,047,254 2,002,857 2,121,588 
Savings1,050,256 1,036,927 916,268 
Certificates of deposit1,269,621 1,320,425 1,523,841 
Total Deposits8,015,264 7,876,028 7,867,916 
Borrowings:
Securities sold under repurchase agreements68,587 67,417 92,159 
Short-term borrowings— — 84,541 
Long-term borrowings22,969 23,282 49,489 
Junior subordinated debt securities64,113 64,097 64,053 
Total Borrowings155,669 154,796 290,242 
Other liabilities136,166 129,877 180,361 
Total Liabilities8,307,099 8,160,701 8,338,519 
SHAREHOLDERS' EQUITY
Total Shareholders' Equity1,188,733 1,168,278 1,135,777 
Total Liabilities and Shareholders' Equity$9,495,832 $9,328,979 $9,474,296 
Capitalization Ratios
Shareholders' equity / assets12.52 %12.52 %11.99 %
Tangible common equity / tangible assets (8)
8.88 %8.81 %8.30 %
Tier 1 leverage ratio9.52 %9.71 %8.89 %
Common equity tier 1 capital11.98 %11.84 %10.70 %
Risk-based capital - tier 112.40 %12.26 %11.10 %
Risk-based capital - total14.00 %13.93 %12.74 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
8
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$785,4650.09%$302,2190.09%$163,0190.08%
Securities, at fair value826,8612.19%782,1182.34%785,2292.56%
Loans held for sale4,3533.01%6,3602.83%9,9313.08%
Commercial real estate3,251,8943.69%3,253,6413.76%3,389,6164.23%
Commercial and industrial1,890,5383.90%1,957,4594.31%2,200,1483.61%
Commercial construction462,9283.34%485,2693.37%430,9123.75%
Total Commercial Loans5,605,3593.73%5,696,3693.91%6,020,6763.97%
Residential mortgage863,2544.17%897,4274.22%976,9164.20%
Home equity535,9333.50%532,7083.65%543,7703.69%
Installment and other consumer84,2596.05%79,9076.33%79,9446.34%
Consumer construction13,2646.39%15,9084.79%12,7584.58%
Total Consumer Loans1,496,7104.06%1,525,9504.14%1,613,3884.14%
Total Portfolio Loans7,102,0693.80%7,222,3193.96%7,634,0644.00%
Total Loans7,106,4223.80%7,228,6793.96%7,643,9954.00%
Federal Home Loan Bank and other restricted stock10,5294.51%11,2424.94%19,7093.75%
Total Interest-earning Assets8,729,2773.31%8,324,2593.67%8,611,9523.80%
Noninterest-earning assets704,635756,273817,767
Total Assets$9,433,911$9,080,532$9,429,719
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$998,1340.09%$895,8910.10%$1,033,9050.24%
Money market2,037,9760.18%1,968,7790.19%2,076,4830.50%
Savings1,044,8990.03%995,2280.06%887,3570.07%
Certificates of deposit1,291,1940.45%1,344,6040.65%1,560,8851.51%
Total Interest-bearing Deposits5,372,2030.20%5,204,5030.27%5,558,6300.67%
Securities sold under repurchase agreements67,8380.10%64,6530.15%85,3020.25%
Short-term borrowings0—%25,5560.19%178,2730.38%
Long-term borrowings23,1132.01%23,4712.00%49,7742.53%
Junior subordinated debt securities64,1033.06%64,0883.09%64,0443.58%
Total Borrowings155,0541.61%177,7681.46%377,3931.18%
Total Interest-bearing Liabilities5,527,2560.24%5,382,2710.31%5,936,0230.70%
Noninterest-bearing liabilities2,727,6532,538,1492,302,676
Shareholders' equity1,179,0021,160,1131,191,020
Total Liabilities and Shareholders' Equity$9,433,911$9,080,532$9,429,719
Net Interest Margin (9)
3.16%3.47%3.31%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
9
Six Months Ended June 30,
(dollars in thousands)20212020
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks$545,1770.09%$131,3320.59%
Securities, at fair value804,6132.26%786,0432.55%
Loans held for sale5,3512.90%5,8993.19%
Commercial real estate3,252,7633.72%3,399,1504.48%
Commercial and industrial1,923,8134.10%1,975,9134.02%
Commercial construction474,0373.36%408,6384.19%
Total Commercial Loans5,650,6133.82%5,783,7014.30%
Residential mortgage880,2464.20%983,8914.19%
Home equity534,3293.58%541,9814.26%
Installment and other consumer82,0956.19%79,8126.67%
Consumer construction14,5785.52%11,6334.59%
Total Consumer Loans1,511,2494.10%1,617,3174.34%
Total Portfolio Loans7,161,8623.88%7,401,0184.31%
Total Loans7,167,2133.88%7,406,9174.31%
Federal Home Loan Bank and other restricted stock10,8844.73%21,6555.47%
Total Interest-earning Assets8,527,8873.49%8,345,9474.09%
Noninterest-earning assets730,117752,576
Total Assets$9,258,003$9,098,523
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$947,2950.10%$987,9680.41%
Money market2,003,5690.18%2,035,1240.88%
Savings1,020,2010.04%859,1710.15%
Certificates of deposit1,317,7510.55%1,581,1041.66%
Total Interest-bearing deposits5,288,8160.23%5,463,3670.90%
Securities sold under repurchase agreements66,2540.13%58,0460.33%
Short-term borrowings12,7070.19%232,3191.14%
Long-term borrowings23,2912.01%50,8092.53%
Junior subordinated debt securities64,0953.07%64,1203.99%
Total Borrowings166,3481.53%405,2941.65%
Total Interest-bearing Liabilities5,455,1640.27%5,868,6610.96%
Noninterest-bearing liabilities2,633,2192,039,565
Shareholders' equity1,169,6201,190,297
Total Liabilities and Shareholders' Equity$9,258,003$9,098,523
Net Interest Margin (10)
3.31%3.42%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
10
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Nonperforming Loans (NPL)
Commercial loans:% NPL% NPL% NPL
Commercial real estate$82,050 2.53%$98,606 3.00%$61,643 1.84%
Commercial and industrial16,997 0.96%18,145 0.94%8,484 0.40%
Commercial construction384 0.08%384 0.08%1,504 0.33%
Commercial Loan Held for Sale— —%2,798 NM— —%
Total Nonperforming Commercial Loans99,431 1.81%119,933 2.11%71,631 1.20%
Consumer loans:
Residential mortgage9,917 1.15%11,737 1.33%14,649 1.51%
Home equity3,150 0.58%3,441 0.65%3,814 0.71%
Installment and other consumer121 0.14%100 0.12%19 0.02%
Total Nonperforming Consumer Loans13,188 0.87%15,278 1.01%18,482 1.14%
Total Nonperforming Loans$112,619 1.61%$135,211 1.88%$90,113 1.19%
NM-Not Meaningful
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Loan Charge-offs (Recoveries)
Charge-offs$8,737 $6,532 $63,304 
Recoveries (1,264)(721)(231)
Net Loan Charge-offs (Recoveries)$7,473 $5,812 $63,072 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$— $— $58,671 
Commercial real estate6,595 698 5,588 
Commercial and industrial795 4,913 3,060 
Commercial construction(2)(1)(19)
Total Commercial Loan Charge-offs (Recoveries)7,388 5,610 67,300 
Consumer loans:
Residential mortgage(57)71 74 
Home equity10 232 16 
Installment and other consumer132 (102)682 
Total Consumer Loan Charge-offs (Recoveries)85 202 772 
Total Net Loan Charge-offs (Recoveries)$7,473 $5,812 $68,072 

- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
11
Six Months Ended June 30,
(dollars in thousands)20212020
Loan Charge-offs (Recoveries)
Charge-offs$15,270 $79,749 
Recoveries (1,985)(520)
Net Loan Charge-offs (Recoveries)$13,285$79,229 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$—$58,671 
Commercial real estate7,2936,016 
Commercial and industrial5,70813,325 
Commercial construction(3)(21)
Total Commercial Loan Charge-offs/(Recoveries)12,99877,991 
Consumer loans:
Residential mortgage1593 
Home equity24297 
Installment and other consumer301,048 
Total Consumer Loan Charge-offs (Recoveries)2871,238 
Total Net Loan Charge-offs (Recoveries)$13,285$79,229 
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonperforming loans$112,619 $135,211 $90,113 
OREO1,145 1,620 2,740 
Nonperforming assets113,764 136,831 92,853 
Troubled debt restructurings (nonaccruing)20,650 29,983 31,755 
Troubled debt restructurings (accruing)14,321 17,916 15,536 
Total troubled debt restructurings34,971 47,899 47,291 
Nonperforming loans / total loans1.61 %1.88 %1.19 %
Nonperforming assets / total loans plus OREO1.62 %1.90 %1.23 %
Allowance for credit losses / total portfolio loans1.56 %1.60 %1.52 %
Allowance for credit losses / total portfolio loans excluding PPP1.64 %1.72 %NA
Allowance for credit losses / nonperforming loans97 %85 %127 %
Net loan charge-offs (recoveries)$7,473 $5,812 $68,072 
Net loan charge-offs (recoveries)(annualized) / average loans0.43 %0.33 %3.58 %
NA = Not Applicable

Six Months Ended June 30,
(dollars in thousands)20212020
Asset Quality Data
Net loan charge-offs (recoveries)$13,285 $79,229 
Net loan charge-offs (recoveries)(annualized) / average loans0.37 %2.15 %
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
12
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity
$1,188,733 $1,168,278 $1,135,777 
Less: goodwill and other intangible assets, net of deferred tax liability
(379,563)(379,911)(380,986)
Tangible common equity (non-GAAP)
$809,170 $788,367 $754,791 
Common shares outstanding
39,346 39,268 39,263 
Tangible book value (non-GAAP)
$20.57 $20.08 $19.22 
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (loss) (annualized)
$113,778 $129,378 ($133,016)
Plus: amortization of intangibles (annualized), net of tax
1,395 1,464 2,072 
Net income before amortization of intangibles (annualized)
$115,173 $130,842 ($130,944)
Average total shareholders' equity
$1,179,002 $1,160,113 $1,191,020 
Less: average goodwill and other intangible assets, net of deferred tax liability
(379,784)(380,144)(382,081)
Average tangible equity (non-GAAP)
$799,218 $779,969 $808,939 
Return on average tangible shareholders' equity (non-GAAP)
14.41 %16.78 %(16.19 %)
(3) PTPP / Average Assets (non-GAAP)
Income (loss) before taxes$35,338 $39,178 ($44,865)
Plus: Provision for credit losses2,561 3,137 86,759 
Total37,899 42,315 41,894 
Total (annualized) (non-GAAP)$152,012 $171,611 $168,497 
Average assets$9,433,911 $9,080,532 $9,429,719 
PTPP / Average Assets (non-GAAP)1.61 %1.89 %1.79 %
(4) Efficiency Ratio (non-GAAP)
Noninterest expense
$45,829 $45,580 $43,478 
Net interest income per consolidated statements of net income
$68,304 $70,659 $70,148 
Plus: taxable equivalent adjustment
585 664 847 
Net interest income (FTE) (non-GAAP)
68,889 71,323 70,995 
Noninterest income
15,424 17,236 15,224 
Less: net (gains) losses on sale of securities
(29)— (142)
Net interest income (FTE) (non-GAAP) plus noninterest income
$84,284 $88,560 $86,077 
Efficiency ratio (non-GAAP)
54.37 %51.47 %50.51 %


- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
13
Six Months Ended June 30,
(dollars in thousands)20212020
(5) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (loss) (annualized)
$121,535 ($39,900)
Plus: amortization of intangibles (annualized), net of tax
1,429 2,040 
Net income before amortization of intangibles (annualized)
$122,964 ($37,860)
Average total shareholders' equity
$1,169,620 $1,190,297 
Less: average goodwill and other intangible assets, net of deferred tax liability
(379,963)(380,935)
Average tangible equity (non-GAAP)
$789,657 $809,362 
Return on average tangible shareholders' equity (non-GAAP)
15.57 %(4.68 %)
(6) PTPP / Average Assets (non-GAAP)
Income (loss) before taxes$74,515 ($28,867)
Plus: Provision for credit losses5,699 106,809 
Total80,214 77,942 
Total (annualized) (non-GAAP)$161,758 $156,741 
Average assets$9,258,003 $9,098,523 
PTPP / Average Assets (non-GAAP)1.75 %1.72 %
(7) Efficiency Ratio (non-GAAP)
Noninterest expense
$91,409 $89,869 
Less: merger related expenses
— (2,342)
Noninterest expense excluding nonrecurring items
$91,409 $87,527 
Net interest income per consolidated statements of net income
$138,962 $140,184 
Plus: taxable equivalent adjustment
1,249 1,697 
Net interest income (FTE) (non-GAAP)
140,211 141,881 
Noninterest income
32,661 27,627 
Less: net (gains) losses on sale of securities
(29)(142)
Net interest income (FTE) (non-GAAP) plus noninterest income
$172,843 $169,366 
Efficiency ratio (non-GAAP)
52.89 %51.68 %
(10) Net Interest Margin Rate (FTE) (non-GAAP)
 Interest income and dividend income$146,358 $168,069 
 Less: interest expense(7,396)(27,885)
 Net interest income per consolidated statements of net income138,962 140,184 
 Plus: taxable equivalent adjustment1,249 1,697 
 Net interest income (FTE) (non-GAAP)$140,211 $141,881 
 Net interest income (FTE) (annualized)$282,746 $285,321 
 Average interest-earning assets$8,527,886 $8,345,947 
 Net interest margin - (FTE) (non-GAAP)3.31 %3.42 %



- more -

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
14
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202120212020
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
(8) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity
$1,188,733 $1,168,278 $1,135,777 
Less: goodwill and other intangible assets, net of deferred tax liability(379,563)(379,911)(380,986)
Tangible common equity (non-GAAP)
$809,170 $788,367 $754,791 
Total assets
$9,495,832 $9,328,979 $9,474,296 
Less: goodwill and other intangible assets, net of deferred tax liability(379,563)(379,911)(380,986)
Tangible assets (non-GAAP)
$9,116,268 $8,949,068 $9,093,310 
Tangible common equity to tangible assets (non-GAAP)
8.88 %8.81 %8.30 %
(9) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income
$71,577 $74,781 $80,479 
Less: interest expense
(3,273)(4,122)(10,331)
Net interest income per consolidated statements of net income
68,304 70,659 70,148 
Plus: taxable equivalent adjustment
585 664 847 
Net interest income (FTE) (non-GAAP)
$68,889 $71,323 $70,995 
Net interest income (FTE) (annualized)
$276,313 $289,253 $285,540 
Average interest- earning assets
$8,729,277 $8,324,259 $8,611,952 
Net interest margin (FTE) (non-GAAP)
3.16 %3.47 %3.31 %


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