PR Newswire | Jan 28, 2021 07:31AM EST

01/28 06:30 CST

S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2020 Results INDIANA, Pa., Jan. 28, 2021

INDIANA, Pa., Jan. 28, 2021 /PRNewswire/ -- 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 its fourth quarter and full year 2020 earnings. Net income was $24.2 million, or $0.62 per diluted share, for the fourth quarter compared to net income of $16.7 million, or $0.43 per diluted share, for the third quarter of 2020, and $22.3 million, or $0.62 per diluted share, for the fourth quarter of 2019.

Net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. 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, for the full year 2020.

Fourth Quarter of 2020 Highlights:

Return on average assets (ROA) was 1.05%, return on average equity (ROE) was 8.35% and return on average tangible equity (ROTE) (non-GAAP) was 12.71%.

* Pre-tax pre-provision to average assets (PTPP) (non-GAAP) was 1.61%. * Net interest margin (FTE) (non-GAAP) increased 9 basis points to 3.38% compared to 3.29% for the third quarter of 2020. * Portfolio loans decreased $169.0 million compared to September 30, 2020. * Deposits decreased $213.3 million compared to September 30, 2020. * The allowance for credit losses to total portfolio loans was 1.63% at December 31, 2020 compared to 1.64% at September 30, 2020. * S&T's Board of Directors declared a $0.28 per share dividend which is consistent with the same period last year.

Full Year 2020 Highlights:

* ROA was 0.23%, ROE was 1.80% and ROTE (non-GAAP) was 2.92%. Excluding the loss from the customer fraud ROA (non-GAAP) was 0.74%, ROE (non-GAAP) was 5.76% and ROTE (non-GAAP) was 8.80%. * PTPP (non-GAAP) was 1.67%. * Portfolio loans increased $88.7 million, or 1.2%, compared to December 31, 2019. * Deposits increased $384.0 million, or 5.5%, compared to December 31, 2019. * Mortgage banking income increased $8.4 million to $10.9 million compared to 2019 due to strong refinance activity. * Full year 2020 dividends declared increased 2.8% to $1.12 compared to $1.09 in 2019.

"The year 2020 was challenging for our country, the banking industry and S&T. I continue to be amazed by the resilience of our team of bankers and the communities that we serve during these difficult times," said Todd Brice, chief executive officer of S&T. "As I move on to my next chapter of retirement this coming March, I'm gratified to know that the S&T team will continue to perform at a high level for the benefit of all of our stakeholders."

Fourth Quarter of 2020 Results (three months ended December 31, 2020)

Net Interest Income

Net interest income increased $0.6 million to $69.9 million compared to $69.3 million in the third quarter of 2020. The increase in net interest income was primarily due to a reduction in deposit costs and the increased contribution of Paycheck Protection Program (PPP) loans to net interest income. Total interest-bearing deposit costs decreased 12 basis points to 0.36% as higher cost Certificates of Deposits and Money Market accounts repriced. The PPP contribution increased by $1.7 million compared to the third quarter of 2020 due to the beginning of loan forgiveness, which led to an increase in loan yield of 2 basis points to 3.89%. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) increased 9 basis points to 3.38% compared to 3.29% in the prior quarter. Excluding PPP, net interest margin (FTE) (non-GAAP) declined 1 basis point to 3.35% compared to 3.36%.

Asset Quality

The provision for credit losses decreased $10.4 million to $7.1 million for the fourth quarter of 2020 compared to $17.5 million in the third quarter of 2020. Net loan charge-offs were $11.2 million for the fourth quarter of 2020 compared to $12.9 million in the third quarter of 2020. Total nonperforming loans increased $62.7 million to $146.8 million, or 2.03% of total loans, at December 31, 2020 compared to $84.1 million, or 1.13% of total loans at September 30, 2020. The increase in nonperforming loans primarily related to the addition of $56.7 million of hotel loans. The hotel loans have specific reserves of $6.7 million at December 31, 2020 which were based upon updated appraisals received during the fourth quarter of 2020. The allowance for credit losses was 1.63% of total portfolio loans at December 31, 2020 compared to 1.64% at September 30, 2020. Excluding PPP loans, the allowance for credit losses was 1.74% of total portfolio loans at December 31, 2020 compared to 1.77% at September 30, 2020.

Noninterest Income and Expense

Noninterest income decreased $0.9 million to $15.6 million in the fourth quarter of 2020 compared to $16.5 million in the third quarter of 2020. The decrease in noninterest income was primarily due to a decline in mortgage banking income due to lower activity compared to the third quarter of 2020. Noninterest expense increased $0.3 million to $48.5 million in the fourth quarter of 2020 compared to $48.2 million in the third quarter of 2020. Other noninterest expense increased $1.8 million mainly related to higher loan workout costs compared to the prior quarter. Salaries and employee benefits decreased $1.8 million due to lower incentives, pension and medical costs compared to the prior quarter.

Financial Condition

Total assets decreased $222.7 million to $9.0 billion at December 31, 2020 compared to $9.2 billion at September 30, 2020. Portfolio loans decreased $169.0 million compared to September 30, 2020 as loan originations continue to be impacted by the pandemic and $85.0 million of PPP loans were forgiven during the fourth quarter of 2020. Securities increased $55.5 million compared to September 30, 2020 due to cash being redeployed to higher yielding assets. Total deposits decreased $213.3 million mainly due to decreases in interest-bearing demand of $118.4 million, money market of $96.5 million and certificates of deposits of $58.6 million compared to September 30, 2020.

All capital ratios increased at December 31, 2020 compared to September 30, 2020 and remain above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2020 Results (twelve months ended December 31, 2020)

Full year net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. 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. Full year results were impacted by the DNB Financial Corporation (DNB) merger that occurred on November 30, 2019 with 12 months of impact in 2020 compared to only one month in 2019.

Net interest income increased $32.6 million, or 13.2%, compared to 2019 primarily due to the merger with DNB. Net interest income was impacted by the decrease in interest rates and the effects of the pandemic on loan growth throughout 2020. Net interest margin (FTE) (non-GAAP) decreased 26 basis points to 3.38% compared to 3.64% for 2019. Noninterest income increased $7.2 million compared to the prior year primarily related to higher mortgage banking income of $8.4 million offset by the impact of the pandemic mainly on service charges on deposit accounts. Noninterest expense increased $19.5 million compared to 2019. The DNB merger increased operating expenses which was offset by a reduction of $9.0 million in merger related expenses. FDIC insurance increased $4.3 million due to the DNB merger, the impact of recent financial results on certain components of the assessment calculation and Small Bank Assessment Credits received in 2019. Other expense increased $5.8 million in part due to higher loan collection costs in 2020 compared to 2019. The efficiency ratio (non-GAAP) for 2020, excluding merger related expenses, was 53.86% compared to 51.39% for 2019.

The provision for credit losses increased $116.5 million to $131.4 million for 2020 compared to $14.9 million for 2019. Excluding the customer fraud loss of $58.7 million, the provision was $72.7 million for 2020. The provision for credit losses increased significantly in 2020 due to the pandemic and the adoption of Current Expected Credit Losses (CECL) on January 1, 2020. Net loan charge-offs were $103.4 million for 2020 compared to $13.6 million for 2019. Excluding the customer fraud, charge-offs were $44.7 million for 2020. Total nonperforming loans increased $92.7 million to $146.8 million, or 2.03% of total loans, at December 31, 2020 compared to $54.1 million, or 0.76% of total loans at December 31, 2019. The increase in nonperforming loans primarily related to the addition of $56.7 million of hotel loans. The allowance for credit losses was 1.63% of total portfolio loans as of December 31, 2020 compared to 0.87% at December 31, 2019. Excluding PPP loans, the allowance for credit losses was 1.74% of total portfolio loans at December 31, 2020. The adoption of CECL increased the allowance for credit losses by $17.5 million on January 1, 2020.

Dividend

The Board of Directors of S&T declared a $0.28 per share cash dividend at its regular meeting held January 25, 2021. This is consistent with the common stock dividend declared in the same period in the prior year. The dividend is payable February 25, 2021 to shareholders of record on February 11, 2021. Dividends declared in 2020 increased $0.03, or 2.8%, to $1.12 compared to $1.09 for 2019.

Non-GAAP Financial Measures

This release presents certain non-GAAP financial measures. For a reconciliation to the most directly comparable GAAP measures, see "Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures" in the accompanying tables.

Conference Call

S&T will host its fourth quarter 2020 earnings conference call live over the internet at 1:00 p.m. ET on Thursday, January 28, 2021. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th Quarter 2020 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 February 4, 2021, by dialing 1.877.481.4010; the Conference ID is 39369.

About S&T Bancorp, Inc.

S&T Bancorp, Inc. is a $9.0 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 recently ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. Established in 1902, S&T Bank 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", "believe", "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; 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; our ability to attract and retain talented executives and employees; 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; 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, 2019, 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.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2020 2020 2019

Fourth Third Fourth

(dollars in thousands, except per share Quarter Quarter Quarter data)

INTEREST AND DIVIDEND INCOME

Loans, including fees $71,148 $72,263 $77,426

Investment securities:

Taxable 3,371 3,473 3,744

Tax-exempt 851 885 836

Dividends 178 227 451

Total Interest and Dividend Income 75,548 76,848 82,457



INTEREST EXPENSE

Deposits 4,795 6,626 15,783

Borrowings and junior subordinated debt 824 946 2,262 securities

Total Interest Expense 5,619 7,572 18,045



NET INTEREST INCOME 69,929 69,276 64,412

Provision for credit losses 7,130 17,485 2,105

Net Interest Income After Provision for 62,799 51,791 62,307 Credit Losses



NONINTEREST INCOME

Loss on sale of securities - - (26)

Debit and credit card fees 3,830 4,171 3,454

Mortgage banking 3,100 3,964 765

Service charges on deposit accounts 2,984 2,820 3,540

Wealth management 2,486 2,522 2,412

Commercial loan swap income 812 499 2,356

Other 2,397 2,507 2,730

Total Noninterest Income 15,609 16,483 15,231



NONINTEREST EXPENSE

Salaries and employee benefits 22,789 24,571 22,851

Net occupancy 4,068 3,441 3,219

Data processing and information 3,835 4,218 4,141 technology

Furniture, equipment and software 2,904 2,440 2,337

Marketing 2,113 1,793 1,116

Other taxes 1,806 1,612 (818)

Professional services and legal 1,503 1,911 862

FDIC insurance 1,372 1,900 222

Merger related expenses - - 10,179

Other 8,138 6,360 6,069

Total Noninterest Expense 48,528 48,246 50,178



Income Before Taxes 29,880 20,028 27,360

Income Tax Expense 5,703 3,323 5,091



Net Income $24,177 $16,705 $22,269



Per Share Data:

Shares outstanding at end of period 39,298,00739,251,63839,560,304

Average diluted shares outstanding 39,021,00839,020,81135,913,237

Diluted earnings per share $0.62 $0.43 $0.62

Dividends declared per share $0.28 $0.28 $0.28

Dividend yield (annualized) 4.51% 6.33% 2.78%

Dividends paid to net income 45.40% 65.61% 42.94%

Book value $29.38 $29.10 $30.13

Tangible book value^ (1) $19.71 $19.40 $20.52

Market value $24.84 $17.69 $40.29



Profitability Ratios (annualized)

Return on average assets 1.05% 0.72% 1.11%

Return on average shareholders' equity 8.35% 5.80% 8.30%

Return on average tangible shareholders'12.71% 8.96% 12.04% equity ^(2)

Efficiency ratio (FTE) ^(3) 56.26% 55.75% 49.64%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



For the Twelve Months Ended December 31,

(dollars in thousands, except per share data) 2020 2019

INTEREST AND DIVIDEND INCOME

Loans, including fees $300,960 $300,625

Investment securities:

Taxable 14,918 14,733

Tax-exempt 3,497 3,302

Dividends 1,089 1,824

Total Interest and Dividend Income 320,464 320,484



INTEREST EXPENSE

Deposits 35,986 63,026

Borrowings and junior subordinated debt securities 5,090 10,667

Total Interest Expense 41,076 73,693



NET INTEREST INCOME 279,388 246,791

Provision for credit losses 131,424 14,873

Net Interest Income After Provision for Credit 147,964 231,918 Losses



NONINTEREST INCOME

Net gain (loss) on sale of securities 142 (26)

Debit and credit card 15,093 13,405

Service charges on deposit accounts 11,704 13,316

Mortgage banking 10,923 2,491

Wealth management 9,957 8,623

Commercial loan swap income 4,740 5,503

Other 7,160 9,246

Total Noninterest Income 59,719 52,558



NONINTEREST EXPENSE

Salaries and employee benefits 90,115 83,986

Data processing and information technology 15,499 14,468

Net occupancy 14,529 12,103

Furniture, equipment and software 11,050 8,958

Other taxes 6,622 3,364

Professional services and legal 6,394 4,244

Marketing 5,996 4,631

FDIC insurance 5,089 758

Merger related expenses 2,342 11,350

Other 29,008 23,254

Total Noninterest Expense 186,644 167,116



Income Before Taxes 21,039 117,360

Income taxes (benefit) expense (1) 19,126



Net Income $21,040 $98,234



Per Share Data:

Average diluted shares outstanding 39,073,219 34,679,478

Diluted earnings per share $0.53 $2.82

Dividends declared per share $1.12 $1.09

Dividends paid to net income 200.89% 38.03%



Profitability Ratios

Return on average assets 0.23% 1.32%

Return on average shareholders' equity 1.80% 9.98%

Return on average tangible shareholders' equity ^(6)2.92% 14.41%

Efficiency ratio (FTE) ^(7) 53.86% 51.39%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2020 2020 2019

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

ASSETS

Cash and due from banks, including $229,666 $308,489 $169,304 interest-bearing deposits

Federal funds sold - - 28,519

Securities, at fair value 773,693 718,169 784,283

Loans held for sale 18,528 16,724 5,256

Commercial loans:

Commercial real estate 3,244,974 3,290,138 3,416,518

Commercial and industrial 1,954,453 2,042,467 1,720,833

Commercial construction 474,280 477,429 375,445

Total Commercial Loans 5,673,707 5,810,034 5,512,796

Consumer loans:

Residential mortgage 918,398 950,887 998,585

Home equity 535,165 537,869 538,348

Installment and other consumer 80,915 80,735 79,033

Consumer construction 17,675 15,343 8,390

Total Consumer Loans 1,552,153 1,584,834 1,624,356

Total Portfolio Loans 7,225,860 7,394,868 7,137,152

Allowance for credit losses (117,612) (120,998) (62,224)

Total Portfolio Loans, Net 7,108,248 7,273,870 7,074,928

Federal Home Loan Bank and other 13,030 15,777 22,977 restricted stock, at cost

Goodwill 373,424 373,417 371,621

Other assets 451,308 484,126 307,762

Total Assets $8,967,897$9,190,572$8,764,649



LIABILITIES

Deposits:

Noninterest-bearing demand $2,261,994$2,232,706$1,698,082

Interest-bearing demand 864,510 982,956 962,331

Money market 1,937,063 2,033,585 1,949,811

Savings 969,508 938,475 830,919

Certificates of deposit 1,387,463 1,446,096 1,595,433

Total Deposits 7,420,538 7,633,818 7,036,576



Borrowings:

Securities sold under repurchase 65,163 42,706 19,888 agreements

Short-term borrowings 75,000 83,000 281,319

Long-term borrowings 23,681 49,076 50,868

Junior subordinated debt securities 64,083 64,068 64,277

Total Borrowings 227,927 238,850 416,352

Other liabilities 164,721 175,789 119,723

Total Liabilities 7,813,186 8,048,457 7,572,651



SHAREHOLDERS' EQUITY

Total Shareholders' Equity 1,154,711 1,142,115 1,191,998

Total Liabilities and Shareholders' $8,967,897$9,190,572$8,764,649Equity



Capitalization Ratios

Shareholders' equity / assets 12.88% 12.43% 13.60%

Tangible common equity / tangible assets9.02% 8.64% 9.68% ^(4)

Tier 1 leverage ratio 9.43% 9.11% 10.29%

Common equity tier 1 capital 11.33% 11.05% 11.43%

Risk-based capital - tier 1 11.74% 11.46% 11.84%

Risk-based capital - total 13.44% 13.18% 13.22%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2020 2020 2019

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing $242,778 0.11%$213,051 0.11%$82,255 1.44%deposits with banks

Securities, at fair 726,535 2.43%759,094 2.41%696,889 2.61%value

Loans held for sale 4,206 2.98%4,432 3.09%3,582 3.56%

Commercial Loans:

Commercial real estate 3,269,109 3.77%3,322,656 4.02%3,056,513 4.77%

Commercial and 2,012,774 3.95%2,107,750 3.45%1,666,061 4.77%industrial

Commercial construction481,136 3.42%469,214 3.43%339,274 4.71%

Total Commercial Loans 5,763,019 3.81%5,899,620 3.77%5,061,848 4.77%

Consumer Loans:

Residential mortgage 936,735 4.29%954,861 4.33%850,566 4.42%

Home equity 537,201 3.66%536,735 3.73%499,520 5.03%

Installment and other 80,849 6.43%79,649 6.47%76,029 7.13%consumer

Consumer construction 16,154 4.21%14,475 4.32%12,021 4.96%

Total Consumer Loans 1,570,939 4.18%1,585,720 4.24%1,438,136 4.78%

Total Portfolio Loans 7,333,958 3.89%7,485,340 3.87%6,499,984 4.77%

Total Loans 7,338,164 3.89%7,489,772 3.87%6,503,566 4.77%

Federal Home Loan Bank and other restricted 14,545 3.97%15,157 5.11%21,791 7.44%stock

Total Interest-earning 8,322,022 3.65%8,477,074 3.65%7,304,501 4.53%Assets

Noninterest-earning 802,037 815,930 619,586 assets

Total Assets $9,124,059 $9,293,004 $7,924,087



LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand$904,190 0.11%$967,735 0.18%$810,909 0.75%

Money market 2,015,248 0.20%2,074,862 0.33%1,791,981 1.53%

Savings 956,438 0.07%923,208 0.07%783,990 0.26%

Certificates of deposit1,423,727 0.93%1,486,016 1.16%1,417,619 1.91%

Total Interest-bearing 5,299,603 0.36%5,451,821 0.48%4,804,499 1.30%Deposits

Borrowings:

Securities sold under 50,607 0.25%64,000 0.25%14,046 0.75%repurchase agreements

Short-term borrowings 75,728 0.22%84,310 0.38%241,368 2.08%

Long-term borrowings 40,986 2.43%49,269 2.52%56,026 2.63%

Junior subordinated 64,073 3.11%64,057 3.19%54,801 4.33%debt securities

Total Borrowings 231,394 1.42%261,636 1.44%366,241 2.45%

Total Interest-bearing 5,530,997 0.40%5,713,457 0.53%5,170,740 1.38%Liabilities

Noninterest-bearing 2,441,129 2,433,665 1,689,076 liabilities

Shareholders' Equity 1,151,933 1,145,882 1,064,271

Total Liabilities and $9,124,059 $9,293,004 $7,924,087 Shareholders' Equity



Net Interest Margin ^ 3.38% 3.29% 3.55%(5)

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



For the Twelve Months Ended December 31,

(dollars in thousands) 2020 2019

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks$179,887 0.29%$59,941 2.06%

Securities, at fair value 764,311 2.49%678,069 2.64%

Loans held for sale 5,105 3.13%2,169 3.88%

Commercial Loans:

Commercial real estate 3,347,234 4.19%2,945,278 4.92%

Commercial and industrial 2,018,318 3.85%1,575,485 5.04%

Commercial construction 442,088 3.78%278,665 5.11%

Total Commercial Loans 5,807,640 4.04%4,799,428 4.97%

Consumer Loans:

Residential mortgage 964,740 4.25%765,604 4.43%

Home equity 539,461 3.98%475,149 5.31%

Installment and other consumer 80,032 6.56%72,283 7.16%

Consumer construction 13,484 4.40%10,896 5.44%

Total Consumer Loans 1,597,717 4.28%1,323,932 4.90%

Total Portfolio Loans 7,405,357 4.09%6,123,360 4.95%

Total Loans 7,410,462 4.09%6,125,529 4.95%

Federal Home Loan Bank and other 18,234 5.10%21,833 7.52%restricted stock

Total Interest-earning Assets 8,372,894 3.87%6,885,372 4.71%

Noninterest-earning assets 779,853 550,164

Total Assets $9,152,747 $7,435,536



LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand $961,823 0.28%$641,403 0.61%

Money market 2,040,116 0.57%1,691,910 1.79%

Savings 899,717 0.11%766,142 0.25%

Certificates of deposit 1,517,643 1.36%1,396,706 1.93%

Total Interest-bearing Deposits 5,419,299 0.66%4,496,161 1.40%

Borrowings:

Securities sold under repurchase 57,673 0.29%16,863 0.65%agreements

Short-term borrowings 155,753 0.92%255,264 2.51%

Long-term borrowings 47,953 2.50%66,392 2.76%

Junior subordinated debt securities 64,092 3.57%47,934 4.82%

Total Borrowings 325,471 1.56%386,453 2.76%

Total Interest-bearing Liabilities 5,744,770 0.72%4,882,614 1.51%

Noninterest-bearing liabilities 2,238,488 1,569,014

Total Shareholders' Equity 1,169,489 983,908

Total Liabilities and Shareholders' $9,152,747 $7,435,536 Equity



Net Interest Margin ^(8) 3.38% 3.64%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2020 2020 2019

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

Nonperforming Loans (NPL)

Commercial loans: % Loans % Loans % Loans

Commercial real estate $105,0143.24% $52,8051.60% $29,1400.85%

Commercial and industrial 23,337 1.19% 12,498 0.61% 13,982 0.81%

Commercial construction 384 0.08% 1,504 0.31% 737 0.20%

Total Nonperforming 128,735 2.27% 66,807 1.15% 43,859 0.80% Commercial Loans

Consumer loans:

Residential mortgage 13,008 1.42% 13,018 1.37% 7,519 0.75%

Home equity 4,935 0.92% 4,106 0.76% 2,639 0.49%

Installment and other 96 0.12% 141 0.17% 40 0.05% consumer

Total Nonperforming Consumer18,039 1.15% 17,265 1.08% 10,198 0.63% Loans

Total Nonperforming Loans $146,7742.03% $84,0721.13% $54,0570.76%



(dollars in thousands)

Loan Charge-offs/ (Recoveries)

Charge-offs $12,951 $13,667 $2,798

Recoveries (1,713) (754) (802)

Net Loan Charge-offs/ $11,238 $12,913 $1,996 (Recoveries)



Net Loan Charge-offs (Recoveries)

Commercial Loans:

Commercial real estate $10,185 $10,963 $829

Commercial and industrial 412 1,267 (121)

Commercial construction 293 (1) 404

Total Commercial Loan 10,890 12,229 1,112 Charge-offs/(Recoveries)

Consumer loans:

Residential mortgage 68 274 112

Home equity 132 204 383

Installment and other 148 206 389 consumer

Total Consumer Loan 348 684 884 Charge-offs

Total Net Loan Charge-offs/ $11,238 $12,913 $1,996 (Recoveries)

For the Twelve Months Ended December 31,

(dollars in thousands) 2020 2019

Loan Charge-offs/(Recoveries)

Charge-offs $106,365 $16,189

Recoveries (2,986) (2,544)

Net Loan Charge-offs/(Recoveries) $103,379 $13,645



Net Loan Charge-offs (Recoveries)

Commercial loans:

Customer fraud $58,671 $0

Commercial real estate 27,164 3,527

Commercial and industrial 15,004 7,540

Commercial construction 271 401

Total Commercial Loan Charge-offs/ 101,110 11,468 (Recoveries)

Consumer loans:

Residential mortgage 435 364

Home equity 433 434

Installment and other consumer 1,401 1,461

Consumer construction - (82)

Total Consumer Loan Charge-offs/ 2,269 2,177 (Recoveries)

Total Net Loan Charge-offs/(Recoveries) $103,379 $13,645

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2020 2020 2019

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

Asset Quality Data

Nonperforming loans $146,774$84,072 $54,057

OREO 2,155 2,317 3,525

Nonperforming assets 148,929 86,389 57,582

Troubled debt restructurings 29,289 18,648 8,912 (nonaccruing)

Troubled debt 17,460 18,478 36,960 restructurings (accruing)

Total troubled debt 46,749 37,126 45,872 restructurings

Nonperforming loans / 2.03% 1.13% 0.76% total loans

Nonperforming assets / 2.06% 1.17% 0.81% total loans plus OREO

Allowance for credit losses / total portfolio 1.63% 1.64% 0.87% loans

Allowance for credit losses / nonperforming 80% 144% 115% loans

Net loan charge-offs $11,238 $12,913 $1,996

Net loan charge-offs (annualized) / average 0.61% 0.69% 0.12% loans





For the Twelve Months Ended December 31,

(dollars in thousands) 2020 2019

Asset Quality Data

Net loan charge-offs $103,379 $13,645

Net loan charge-offs / 1.40% 0.22% average loans

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:



2020 2020 2019

Fourth Third Fourth

Quarter Quarter Quarter



^(1) Tangible Book Value (non-GAAP)

Total shareholders' equity $1,154,711$1,142,115$1,191,998

Less: goodwill and other intangible (380,278) (380,735) (380,247) assets, net of deferred tax liability

Tangible common equity (non-GAAP) $774,434 $761,380 $811,751

Common shares outstanding 39,298 39,252 39,560

Tangible book value (non-GAAP) $19.71 $19.40 $20.52



^(2) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income (annualized) $96,181 $66,455 $88,350

Plus: amortization of intangibles 1,853 2,069 1,025 (annualized), net of tax

Net income before amortization of $98,034 $68,524 $89,375 intangibles (annualized)



Average total shareholders' equity $1,151,933$1,145,882$1,064,271

Less: average goodwill and other intangible assets, net of deferred tax(380,734) (380,781) (322,204) liability

Average tangible equity (non-GAAP) $771,199 $765,101 $742,067

Return on average tangible 12.71% 8.96% 12.04% shareholders' equity (non-GAAP)



^(3) Efficiency Ratio (non-GAAP)

Noninterest expense $48,528 $48,246 $50,178

Less: merger related expenses - - (10,179)

Noninterest expense excluding $48,528 $48,246 $39,999 nonrecurring items



Net interest income per consolidated $69,929 $69,276 $64,412 statements of net income

Plus: taxable equivalent adjustment 725 780 903

Net interest income (FTE) (non-GAAP) 70,654 70,056 65,315

Noninterest income 15,609 16,483 15,231

Less: net losses on sale of securities- - 26

Net interest income (FTE) (non-GAAP) $86,263 $86,539 $80,572 plus noninterest income

Efficiency ratio (non-GAAP) 56.26% 55.75% 49.64%



^(4) Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders' equity $1,154,711$1,142,115$1,191,998

Less: goodwill and other intangible (380,278) (380,735) (380,247) assets, net of deferred tax liability

Tangible common equity (non-GAAP) $774,434 $761,380 $811,751



Total assets $8,967,896$9,190,572$8,764,649

Less: goodwill and other intangible (380,278) (380,735) (380,247) assets, net of deferred tax liability

Tangible assets (non-GAAP) $8,587,618$8,809,837$8,384,402

Tangible common equity to tangible 9.02% 8.64% 9.68% assets (non-GAAP)



^(5) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income $75,548 $76,848 $82,457

Less: interest expense (5,619) (7,572) (18,045)

Net interest income per consolidated 69,929 69,276 64,412 statements of net income

Plus: taxable equivalent adjustment 725 780 903

Net interest income (FTE) (non-GAAP) $70,654 $70,056 $65,315

Net interest income (FTE) (annualized)$281,080 $278,701 $259,130

Average earning assets $8,322,022$8,477,074$7,304,501

Net interest margin (FTE) (non-GAAP) 3.38% 3.29% 3.55%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures - continued:



2020 2020 2019

Fourth Third Fourth

Quarter Quarter Quarter



PTPP / Average Assets (non-GAAP)

Income before taxes $29,880 $20,028 $27,360

Plus: Provision for 7,130 17,485 2,238 credit losses

Total 37,010 37,513 29,598

Total (annualized) $147,235 $149,237 $117,427 (non-GAAP)

Average assets $9,124,059$9,293,004 $7,924,087

PTPP / Average Assets 1.61% 1.61% 1.48% (non-GAAP)



For the Twelve Months Ended December 31,

2020 2019



^ (6) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income $21,040 $98,234

Plus: amortization of 2,001 660 intangibles, net of tax

Net income before amortization of $23,041 $98,894 intangibles



Average total $1,169,489 $983,908 shareholders' equity

Less: average goodwill and other intangible (380,846) (297,589) assets, net of deferred tax liability

Average tangible equity $788,643 $686,319 (non-GAAP)

Return on average tangible shareholders' 2.92% 14.41% equity (non-GAAP)



^ (7) Efficiency Ratio (non-GAAP)

Noninterest expense $186,643 $167,116

Less: merger related (2,342) (11,350) expenses

Noninterest expense excluding nonrecurring $184,301 $155,766 items



Net interest income per consolidated statements $279,388 $246,791 of net income

Plus: taxable equivalent 3,202 3,757 adjustment

Net interest income 282,590 250,548 (FTE) (non-GAAP)

Noninterest income 59,719 52,558

Less: net (gains)losses (142) 26 on sale of securities

Net interest income (FTE) (non-GAAP) plus $342,167 $303,132 noninterest income

Efficiency ratio 53.86% 51.39% (non-GAAP)



^ (8) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income $320,464 $320,484

Less: interest expense (41,076) (73,693)

Net interest income per consolidated statements 279,388 246,791 of net income

Plus: taxable equivalent 3,202 3,757 adjustment

Net interest income $282,590 $250,548 (FTE) (non-GAAP)

Average earning assets $8,372,894 $6,885,372

Net interest margin 3.38% 3.64% (FTE) (non-GAAP)



PTPP / Average Assets (non-GAAP)

Income before taxes $21,039 $117,360

Plus: Provision for 131,424 14,873 credit losses

Total 152,463 132,233

Total (non-GAAP) $152,463 $132,233

Average assets $9,152,747 $7,435,536

PTPP / Average Assets 1.67% 1.78% (non-GAAP)

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



The following profitability metrics for the twelve months ended December 31, 2020 are adjusted to exclude a $58.7 million loss related to a customer fraud.



2020

Twelve Months Ended

December 31,



Return on Average Tangible Shareholders' Equity (non-GAAP)

Net Income $21,040

Provision for credit losses 58,671

Tax effect (12,321)

Net income excluding fraud $67,390



Net income excluding fraud $67,390

Plus: amortization of intangibles , net of tax 2,001

Net income before amortization of intangibles $69,391



Average total shareholders' equity $1,169,489

Less: average goodwill and intangible assets, net of deferred tax liability(380,846)

Average tangible equity (non-GAAP) $788,643

Return on average tangible shareholders' equity (non-GAAP) 8.80%



Return on Average Assets (non-GAAP)

Net income excluding fraud $67,390

Average total assets 9,152,747

Return on average assets (non-GAAP) 0.74%



Return on Average Equity (non-GAAP)

Net income excluding fraud $67,390

Average total shareholders' equity 1,169,489

Return on average assets (non-GAAP) 5.76%

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SOURCE S&T Bancorp, Inc.