PR Newswire | Jul 22, 2021 07:31AM EDT

07/22 06:30 CDT

S&T Bancorp, Inc. Announces Second Quarter 2021 Net Income INDIANA, Pa., July 22, 2021

INDIANA, Pa., July 22, 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 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. * 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.

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; 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.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021 2021 2020

Second First Second

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

INTEREST AND DIVIDEND INCOME

Loans, including fees $66,942 $70,232 $75,498

Investment Securities:

Taxable 3,793 3,563 3,791

Tax-exempt 690 813 959

Dividends 152 173 231

Total Interest and Dividend Income 71,577 74,781 80,479



INTEREST EXPENSE

Deposits 2,652 3,481 9,227

Borrowings and junior subordinated debt securities 621 641 1,104

Total Interest Expense 3,273 4,122 10,331



NET INTEREST INCOME 68,304 70,659 70,148

Provision for credit losses 2,561 3,137 86,759

Net Interest Income After Provision for Credit Losses65,743 67,522 (16,611)



NONINTEREST INCOME

Net gain on sale of securities 29 - 142

Debit and credit card 4,744 4,162 3,612

Service charges on deposit accounts 3,642 3,474 2,805

Wealth management 3,167 2,944 2,585

Mortgage banking 1,734 4,310 2,623

Commercial loan swap income 299 95 945

Other 1,809 2,251 2,511

Total Noninterest Income 15,424 17,236 15,224



NONINTEREST EXPENSE

Salaries and employee benefits 24,515 23,327 21,419

Data processing and information technology 3,787 4,225 3,585

Occupancy 3,434 3,827 3,437

Furniture, equipment and software 2,402 2,640 3,006

Other taxes 1,832 1,436 1,604

Professional services and legal 1,637 1,531 1,932

Marketing 996 1,322 979

FDIC insurance 924 1,046 1,048

Other 6,302 6,226 6,468

Total Noninterest Expense 45,829 45,580 43,478

Income (Loss) Before Taxes 35,338 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 period 39,345,71939,268,35939,263,460

Average shares outstanding - diluted 39,048,97139,021,20839,013,161

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 income 38.74% 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 assets 1.21% 1.42% (1.41)%

Return on average shareholders' equity 9.65% 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

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Six Months Ended June 30,

(dollars in thousands, except per share data) 2021 2020

INTEREST AND DIVIDEND INCOME

Loans, including fees $137,174 $157,549

Investment Securities:

Taxable 7,356 8,074

Tax-exempt 1,503 1,762

Dividends 325 684

Total Interest and Dividend Income 146,358 168,069



INTEREST EXPENSE

Deposits 6,133 24,565

Borrowings and junior subordinated debt securities 1,263 3,320

Total Interest Expense 7,396 27,885



NET INTEREST INCOME 138,962 140,184

Provision for credit losses 5,699 106,809

Net Interest Income After Provision for Credit Losses133,263 33,375



NONINTEREST INCOME

Net gain on sale of securities 29 142

Debit and credit card 8,906 3,859

Service charges on deposit accounts 7,116 6,814

Wealth management 6,111 4,949

Mortgage banking 6,044 7,093

Commercial loan swap income 393 3,429

Other 4,062 1,341

Total Noninterest Income 32,661 27,627



NONINTEREST EXPENSE

Salaries and employee benefits 47,842 42,754

Data processing and information technology 8,012 7,453

Occupancy 7,261 7,202

Furniture, equipment and software 5,042 5,525

Other taxes 3,268 3,205

Professional services and legal 3,168 2,980

Marketing 2,318 2,090

FDIC insurance 1,970 1,818

Merger related expenses - 2,342

Other 12,528 14,500

Total Noninterest Expense 91,409 89,869



Income (Loss) Before Taxes 74,515 (28,867)

Income tax expense (benefit) 14,247 (9,026)



Net Income (Loss) $60,268 ($19,841)



Per Share Data

Average shares outstanding - diluted 39,034,808 39,142,351

Diluted earnings (loss) per share $1.54 ($0.51)

Dividends declared per share $0.56 $0.56

Dividends paid to net income 36.44% NM



Profitability Ratios (annualized)

Return on average assets 1.31% (0.44)%

Return on average shareholders' equity 10.39% (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



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter

ASSETS

Cash and due from banks, including interest-bearing deposits$985,278 $671,429 $351,365

Securities, at fair value 840,375 817,299 804,366

Loans held for sale 7,648 12,794 14,259

Commercial loans:

Commercial real estate 3,246,533 3,284,555 3,345,513

Commercial and industrial 1,774,358 1,931,711 2,140,355

Commercial construction 478,153 460,417 459,264

Total Commercial Loans 5,499,044 5,676,683 5,945,132

Consumer loans:

Residential mortgage 859,329 881,245 971,023

Home equity 547,658 530,350 539,519

Installment and other consumer 88,210 80,646 79,816

Consumer construction 13,110 14,244 13,068

Total Consumer Loans 1,508,307 1,506,485 1,603,426

Total Portfolio Loans 7,007,351 7,183,168 7,548,558

Allowance for credit losses (109,636) (115,101) (114,609)

Total Portfolio Loans, Net 6,897,715 7,068,067 7,433,949

Federal Home Loan Bank and other restricted stock, at cost 10,106 12,199 15,151

Goodwill 373,424 373,424 373,289

Other assets 381,286 373,767 481,917

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 demand 979,300 976,225 1,055,261

Money market 2,047,254 2,002,857 2,121,588

Savings 1,050,256 1,036,927 916,268

Certificates of deposit 1,269,621 1,320,425 1,523,841

Total Deposits 8,015,264 7,876,028 7,867,916



Borrowings:

Securities sold under repurchase agreements 68,587 67,417 92,159

Short-term borrowings - - 84,541

Long-term borrowings 22,969 23,282 49,489

Junior subordinated debt securities 64,113 64,097 64,053

Total Borrowings 155,669 154,796 290,242

Other liabilities 136,166 129,877 180,361

Total Liabilities 8,307,099 8,160,701 8,338,519



SHAREHOLDERS' EQUITY

Total Shareholders' Equity 1,188,733 1,168,278 1,135,777

Total Liabilities and Shareholders' Equity $9,495,832$9,328,979$9,474,296



Capitalization Ratios

Shareholders' equity / assets 12.52% 12.52% 11.99%

Tangible common equity / tangible assets ^(8) 8.88% 8.81% 8.30%

Tier 1 leverage ratio 9.52% 9.71% 8.89%

Common equity tier 1 capital 11.98% 11.84% 10.70%

Risk-based capital - tier 1 12.40% 12.26% 11.10%

Risk-based capital - total 14.00% 13.93% 12.74%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks $785,465 0.09%$302,219 0.09%$163,019 0.08%

Securities, at fair value 826,861 2.19%782,118 2.34%785,229 2.56%

Loans held for sale 4,353 3.01%6,360 2.83%9,931 3.08%

Commercial real estate 3,251,894 3.69%3,253,641 3.76%3,389,616 4.23%

Commercial and industrial 1,890,538 3.90%1,957,459 4.31%2,200,148 3.61%

Commercial construction 462,928 3.34%485,269 3.37%430,912 3.75%

Total Commercial Loans 5,605,359 3.73%5,696,369 3.91%6,020,676 3.97%

Residential mortgage 863,254 4.17%897,427 4.22%976,916 4.20%

Home equity 535,933 3.50%532,708 3.65%543,770 3.69%

Installment and other consumer 84,259 6.05%79,907 6.33%79,944 6.34%

Consumer construction 13,264 6.39%15,908 4.79%12,758 4.58%

Total Consumer Loans 1,496,710 4.06%1,525,950 4.14%1,613,388 4.14%

Total Portfolio Loans 7,102,069 3.80%7,222,319 3.96%7,634,064 4.00%

Total Loans 7,106,422 3.80%7,228,679 3.96%7,643,995 4.00%

Federal Home Loan Bank and other restricted stock10,529 4.51%11,242 4.94%19,709 3.75%

Total Interest-earning Assets 8,729,277 3.31%8,324,259 3.67%8,611,952 3.80%

Noninterest-earning assets 704,635 756,273 817,767

Total Assets $9,433,911 $9,080,532 $9,429,719



LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand $998,134 0.09%$895,891 0.10%$1,033,9050.24%

Money market 2,037,976 0.18%1,968,779 0.19%2,076,483 0.50%

Savings 1,044,899 0.03%995,228 0.06%887,357 0.07%

Certificates of deposit 1,291,194 0.45%1,344,604 0.65%1,560,885 1.51%

Total Interest-bearing Deposits 5,372,203 0.20%5,204,503 0.27%5,558,630 0.67%

Securities sold under repurchase agreements 67,838 0.10%64,653 0.15%85,302 0.25%

Short-term borrowings 0 -% 25,556 0.19%178,273 0.38%

Long-term borrowings 23,113 2.01%23,471 2.00%49,774 2.53%

Junior subordinated debt securities 64,103 3.06%64,088 3.09%64,044 3.58%

Total Borrowings 155,054 1.61%177,768 1.46%377,393 1.18%

Total Interest-bearing Liabilities 5,527,256 0.24%5,382,271 0.31%5,936,023 0.70%

Noninterest-bearing liabilities 2,727,653 2,538,149 2,302,676

Shareholders' equity 1,179,002 1,160,113 1,191,020

Total Liabilities and Shareholders' Equity $9,433,911 $9,080,532 $9,429,719



Net Interest Margin ^(9) 3.16% 3.47% 3.31%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Six Months Ended June 30,

(dollars in thousands) 2021 2020

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks $545,177 0.09%$131,332 0.59%

Securities, at fair value 804,613 2.26%786,043 2.55%

Loans held for sale 5,351 2.90%5,899 3.19%

Commercial real estate 3,252,763 3.72%3,399,150 4.48%

Commercial and industrial 1,923,813 4.10%1,975,913 4.02%

Commercial construction 474,037 3.36%408,638 4.19%

Total Commercial Loans 5,650,613 3.82%5,783,701 4.30%

Residential mortgage 880,246 4.20%983,891 4.19%

Home equity 534,329 3.58%541,981 4.26%

Installment and other consumer 82,095 6.19%79,812 6.67%

Consumer construction 14,578 5.52%11,633 4.59%

Total Consumer Loans 1,511,249 4.10%1,617,317 4.34%

Total Portfolio Loans 7,161,862 3.88%7,401,018 4.31%

Total Loans 7,167,213 3.88%7,406,917 4.31%

Federal Home Loan Bank and other restricted stock10,884 4.73%21,655 5.47%

Total Interest-earning Assets 8,527,887 3.49%8,345,947 4.09%

Noninterest-earning assets 730,117 752,576

Total Assets $9,258,003 $9,098,523



LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand $947,295 0.10%$987,968 0.41%

Money market 2,003,569 0.18%2,035,124 0.88%

Savings 1,020,201 0.04%859,171 0.15%

Certificates of deposit 1,317,751 0.55%1,581,104 1.66%

Total Interest-bearing deposits 5,288,816 0.23%5,463,367 0.90%

Securities sold under repurchase agreements 66,254 0.13%58,046 0.33%

Short-term borrowings 12,707 0.19%232,319 1.14%

Long-term borrowings 23,291 2.01%50,809 2.53%

Junior subordinated debt securities 64,095 3.07%64,120 3.99%

Total Borrowings 166,348 1.53%405,294 1.65%

Total Interest-bearing Liabilities 5,455,164 0.27%5,868,661 0.96%

Noninterest-bearing liabilities 2,633,219 2,039,565

Shareholders' equity 1,169,620 1,190,297

Total Liabilities and Shareholders' Equity $9,258,003 $9,098,523



Net Interest Margin ^(10) 3.31% 3.42%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter

Nonperforming Loans (NPL)

Commercial loans: % NPL % NPL % NPL

Commercial real estate $82,050 2.53%$98,606 3.00%$61,6431.84%

Commercial and industrial 16,997 0.96%18,145 0.94%8,484 0.40%

Commercial construction 384 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 mortgage 9,917 1.15%11,737 1.33%14,649 1.51%

Home equity 3,150 0.58%3,441 0.65%3,814 0.71%

Installment and other consumer 121 0.14%100 0.12%19 0.02%

Total Nonperforming Consumer Loans 13,188 0.87%15,278 1.01%18,482 1.14%

Total Nonperforming Loans $112,6191.61%$135,2111.88%$90,1131.19%

NM-Not Meaningful

2021 2021 2020

Second First Second

(dollars in thousands) Quarter QuarterQuarter

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 estate 6,595 698 5,588

Commercial and industrial 795 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 equity 10 232 16

Installment and other consumer 132 (102) 682

Total Consumer Loan Charge-offs (Recoveries) 85 202 772

Total Net Loan Charge-offs (Recoveries) $7,473 $5,812$68,072

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Six Months Ended June 30,

(dollars in thousands) 2021 2020

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 estate 7,293 6,016

Commercial and industrial 5,708 13,325

Commercial construction (3) (21)

Total Commercial Loan Charge-offs/(Recoveries)12,998 77,991

Consumer loans:

Residential mortgage 15 93

Home equity 242 97

Installment and other consumer 30 1,048

Total Consumer Loan Charge-offs (Recoveries) 287 1,238

Total Net Loan Charge-offs (Recoveries) $13,285 $79,229

2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter

Asset Quality Data

Nonperforming loans $112,619$135,211$90,113

OREO 1,145 1,620 2,740

Nonperforming assets 113,764 136,831 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 restructurings 34,971 47,899 47,291

Nonperforming loans / total loans 1.61% 1.88% 1.19%

Nonperforming assets / total loans plus OREO 1.62% 1.90% 1.23%

Allowance for credit losses / total portfolio loans 1.56% 1.60% 1.52%

Allowance for credit losses / total portfolio loans excluding PPP1.64% 1.72% NA

Allowance for credit losses / nonperforming loans 97% 85% 127%

Net loan charge-offs (recoveries) $7,473 $5,812 $68,072

Net loan charge-offs (recoveries)(annualized) / average loans 0.43% 0.33% 3.58%

NA = Not Applicable

Six Months Ended June 30,

(dollars in thousands) 2021 2020

Asset Quality Data

Net loan charge-offs (recoveries) $13,285 $79,229

Net loan charge-offs (recoveries)(annualized) / average loans0.37% 2.15%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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



2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter



^(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 (379,784) (380,144) (382,081) liability

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 losses 2,561 3,137 86,759

Total 37,899 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%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



Six Months Ended June 30,

(dollars in thousands) 2021 2020



^(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 (379,963) (380,935) liability

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 losses 5,699 106,809

Total 80,214 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 income 138,962 140,184

Plus: taxable equivalent adjustment 1,249 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%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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



2021 2021 2020

Second First Second

(dollars in thousands) Quarter Quarter Quarter



^(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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SOURCE S&T Bancorp, Inc.