PR Newswire | Oct 21, 2021 07:31AM EDT

10/21 06:30 CDT

S&T Bancorp, Inc. Announces Third Quarter 2021 Net Income INDIANA, Pa., Oct. 21, 2021

INDIANA, Pa., Oct. 21, 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 $27.6 million, or $0.70 per diluted share, for the third quarter of 2021 compared to net income of $28.4 million, or $0.72 per diluted share, for the second quarter of 2021, and net income of $16.7 million, or $0.43 per diluted share, for the third quarter of 2020.

"We are pleased to announce solid performance for this quarter," said Chris McComish, chief executive officer. "Both earnings and loan growth are a direct reflection of our talented team and the impact we are having in our markets."

Third Quarter of 2021 Highlights

* Return on average assets (ROA) of 1.15%, return on average equity (ROE) of 9.13%, return on average tangible equity (ROTE) (non-GAAP) of 13.53% and pre-tax pre-provision income to average assets (PTPP) (non-GAAP) of 1.56%. * Total portfolio loans excluding PPP increased $117.8 million, or 7.0% annualized, compared to June 30, 2021. * Solid C&I growth excluding PPP loans of $79.5 million, or 21.9% annualized, compared to June 30, 2021 driven by improved utilization and strong new customer activity. * The allowance for credit losses to total portfolio loans was 1.55% at September 30, 2021 compared to 1.56% at June 30, 2021. * S&T's Board of Directors approved a $0.01 per share, or 3.6%, increase in the quarterly cash dividend to $0.29 per share compared to $0.28 per share dividend declared in the same period in the prior year.

"It has been an exciting and productive first 60 days for me as the new CEO of S&T," said Chris McComish, "I am impressed with our employee and marketplace engagement, both of which represent the foundation for future growth. My confidence is further reflected in our Board of Directors' recent approval of a 3.6% increase in our quarterly dividend."

Net Interest Income

Net interest income increased $0.4 million to $68.7 million for the third quarter of 2021 compared to $68.3 million for the second quarter of 2021. Net interest income related to PPP loans was relatively unchanged at $4.2 million for the third quarter of 2021 compared to $4.1 million in the second quarter of 2021. Average PPP loans decreased by $192.7 million compared to the second quarter of 2021. Average loans excluding PPP increased $95.3 million compared to the prior quarter. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) decreased 2 basis points to 3.14% compared to 3.16% in the prior quarter. The decline in NIM (FTE) (non-GAAP) was due to lower loan yields (7 basis points) and a higher average cash balance (4 basis points). Partially offsetting these declines was a higher relative PPP contribution (8 basis points) and lower costing liabilities (1 basis point).

Asset Quality

The provision for credit losses increased $0.8 million to $3.4 million for the third quarter of 2021 compared to $2.6 million in the second quarter of 2021. Net loan charge-offs were $3.6 million for the third quarter of 2021 compared to $7.5 million in the second quarter of 2021. During the third quarter of 2021, two relationships moved from nonperforming loans to OREO totaling $12.2 million. Total nonperforming assets increased $10.9 million to $124.7 million, or 1.78% of total loans plus OREO, at September 30, 2021 compared to $113.8 million, or 1.62% of total loans plus other real estate owned (OREO) at June 30, 2021. The increase in nonperforming assets related to the addition of a $21.7 million commercial and industrial (C&I) loan which required a $9.3 million specific reserve at September 30, 2021. Offsetting this increase in nonperforming assets was $11.8 million of hotel loans that returned to performing status during the third quarter of 2021. Specific reserves on hotels decreased $6.0 million due to updated valuations. The allowance for credit losses was 1.55% of total portfolio loans as of September 30, 2021 compared to 1.56% at June 30, 2021.

Noninterest Income and Expense

Noninterest income increased $0.4 million to $15.8 million in the third quarter of 2021 compared to $15.4 million in the second quarter of 2021. Mortgage banking income increased $0.4 million mainly due to an improved mortgage servicing rights valuation. Noninterest expense increased $1.4 million to $47.2 million for the third quarter of 2021 compared to $45.8 million in the second quarter of 2021. Salaries and employee benefits increased $0.7 million due to higher incentives and new hires.

Financial Condition

Total assets were $9.4 billion at September 30, 2021 compared to $9.5 billion at June 30, 2021. Cash remains elevated at $934.4 million at September 30, 2021 compared to $985.3 million at June 30, 2021. Loan demand improved in the third quarter with portfolio loan growth excluding PPP loans of $117.8 million, or 7.0% annualized, compared to June 30, 2021. Loan growth was in almost all categories with C&I growth of $79.5 million, or 21.9% annualized, residential real estate growth of $28.6 million, or 13.2% annualized, construction growth of $21.2 million, or 17.6% annualized, and installment growth of $9.4 million, or 42.3% annualized. PPP loans were $181.0 million at September 30, 2021 with $155.0 million of forgiveness during the third quarter of 2021. Deposits decreased $70.1 million mainly in 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

S&T's Board of Directors approved a $0.01 per share, or 3.6%, increase in the quarterly cash dividend to $0.29 per share on October 18, 2021. This dividend compares to $0.28 per share dividend declared in the same period in the prior year. The dividend is payable November 18, 2021 to shareholders of record on November 4, 2021.

Conference Call

S&T will host its third quarter 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 21, 2021. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "3rd 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 October 28, 2021, by dialing 1.877.481.4010; the Conference ID is 42885.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.4 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

Third Second Third

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

INTEREST AND DIVIDEND INCOME

Loans, including fees $66,914 $66,942 $72,263

Investment Securities:

Taxable 4,176 3,793 3,473

Tax-exempt 595 690 885

Dividends 84 152 227

Total Interest and Dividend Income 71,769 71,577 76,848



INTEREST EXPENSE

Deposits 2,439 2,652 6,626

Borrowings and junior subordinated debt securities 619 621 946

Total Interest Expense 3,058 3,273 7,572



NET INTEREST INCOME 68,711 68,304 69,276

Provision for credit losses 3,388 2,561 17,485

Net Interest Income After Provision for Credit Losses65,323 65,743 51,791



NONINTEREST INCOME

Net gain on sale of securities - 29 -

Debit and credit card 4,579 4,744 4,171

Service charges on deposit accounts 3,923 3,642 3,303

Wealth management 3,464 3,167 2,522

Mortgage banking 2,162 1,734 3,964

Commercial loan swap income 184 299 499

Other 1,534 1,809 2,024

Total Noninterest Income 15,846 15,424 16,483



NONINTEREST EXPENSE

Salaries and employee benefits 25,228 24,515 24,571

Data processing and information technology 4,001 3,787 4,218

Occupancy 3,660 3,434 3,441

Furniture, equipment and software 2,745 2,402 2,440

Other taxes 1,830 1,832 1,612

Professional services and legal 1,550 1,637 1,911

Marketing 890 996 1,793

FDIC insurance 1,210 924 1,900

Other 6,127 6,302 6,360

Total Noninterest Expense 47,241 45,829 48,246

Income Before Taxes 33,928 35,338 20,028

Income tax expense 6,330 6,971 3,323

Net Income $27,598 $28,367 $16,705



Per Share Data

Shares outstanding at end of period 39,367,84739,345,71939,251,638

Average shares outstanding - diluted 39,062,08039,048,97139,020,811

Diluted earnings per share $0.70 $0.72 $0.43

Dividends declared per share $0.28 $0.28 $0.28

Dividend yield (annualized) 3.80% 3.58% 6.33%

Dividends paid to net income 39.83% 38.74% 65.61%

Book value $30.52 $30.21 $29.10

Tangible book value ^(1) $20.89 $20.57 $19.40

Market value $29.47 $31.30 $17.69

Profitability Ratios (Annualized)

Return on average assets 1.15% 1.21% 0.72%

Return on average shareholders' equity 9.13% 9.65% 5.80%

Return on average tangible shareholders' equity ^(2) 13.53% 14.41% 8.96%

Pre-tax pre-provision income / average assets^(3) 1.56% 1.61% 1.61%

Efficiency ratio (FTE) ^(4) 55.50% 54.37% 55.75%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Nine Months Ended September 30,

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

INTEREST AND DIVIDEND INCOME

Loans, including fees $204,088 $229,812

Investment Securities:

Taxable 11,532 11,547

Tax-exempt 2,098 2,646

Dividends 409 911

Total Interest and Dividend Income 218,127 244,916



INTEREST EXPENSE

Deposits 8,572 31,191

Borrowings and junior subordinated debt 1,882 4,265 securities

Total Interest Expense 10,453 35,456



NET INTEREST INCOME 207,674 209,460

Provision for credit losses 9,087 124,294

Net Interest Income After Provision for Credit198,587 85,166 Losses



NONINTEREST INCOME

Net gain on sale of securities 29 142

Debit and credit card 13,486 11,264

Service charges on deposit accounts 11,039 10,116

Wealth management 9,576 7,471

Mortgage banking 8,206 7,823

Commercial loan swap income 577 3,928

Other 5,595 3,366

Total Noninterest Income 48,507 44,110



NONINTEREST EXPENSE

Salaries and employee benefits 73,070 67,326

Data processing and information technology 12,012 11,671

Occupancy 10,921 10,643

Furniture, equipment and software 7,787 7,965

Other taxes 5,098 4,816

Professional services and legal 4,718 4,890

Marketing 3,208 3,883

FDIC insurance 3,180 3,718

Merger related expenses - 2,342

Other 18,656 20,861

Total Noninterest Expense 138,650 138,115



Income Before Taxes 108,444 (8,839)

Income tax expense (benefit) 20,578 (5,703)



Net Income (Loss) $87,866 ($3,136)



Per Share Data

Average shares outstanding - diluted 39,044,870 39,101,309

Diluted earnings (loss) per share $2.24 ($0.08)

Dividends declared per share $0.84 $0.84

Dividends paid to net income 37.50% NM



Profitability Ratios (annualized)

Return on average assets 1.26% (0.05)%

Return on average shareholders' equity 9.96% (0.36)%

Return on average tangible shareholders' 14.87% (0.27)% equity ^(5)

Pre-tax pre-provision income / average assets 1.68% 1.68% ^(6)

Efficiency ratio (FTE) ^(7) 53.75% 53.06%



NM - Not Meaningful



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter

ASSETS

Cash and due from banks, including interest-bearing deposits$934,377 $985,278 $308,489

Securities, at fair value 870,121 840,375 718,169

Loans held for sale 4,303 7,648 16,724

Commercial loans:

Commercial real estate 3,225,863 3,246,533 3,290,138

Commercial and industrial 1,698,784 1,774,358 2,042,467

Commercial construction 499,317 478,153 477,429

Total Commercial Loans 5,423,964 5,499,044 5,810,034

Consumer loans:

Residential mortgage 887,937 859,329 950,887

Home equity 548,396 547,658 537,869

Installment and other consumer 97,606 88,210 80,735

Consumer construction 12,184 13,110 15,343

Total Consumer Loans 1,546,123 1,508,307 1,584,834

Total Portfolio Loans 6,970,087 7,007,351 7,394,868

Allowance for credit losses (108,348) (109,636) (120,998)

Total Portfolio Loans, Net 6,861,739 6,897,715 7,273,870

Federal Home Loan Bank and other restricted stock, at cost 9,893 10,106 15,777

Goodwill 373,424 373,424 373,417

Other assets 382,197 381,286 484,126

Total Assets $9,436,054$9,495,832$9,190,572



LIABILITIES

Deposits:

Noninterest-bearing demand $2,652,314$2,668,833$2,232,706

Interest-bearing demand 971,321 979,300 982,956

Money market 2,045,320 2,047,254 2,033,585

Savings 1,074,896 1,050,256 938,475

Certificates of deposit 1,201,268 1,269,621 1,446,096

Total Deposits 7,945,119 8,015,264 7,633,818



Borrowings:

Securities sold under repurchase agreements 72,586 68,587 42,706

Short-term borrowings - - 83,000

Long-term borrowings 22,693 22,969 49,076

Junior subordinated debt securities 64,128 64,113 64,068

Total Borrowings 159,407 155,669 238,850

Other liabilities 129,847 136,166 175,789

Total Liabilities 8,234,373 8,307,099 8,048,457



SHAREHOLDERS' EQUITY

Total Shareholders' Equity 1,201,681 1,188,733 1,142,115

Total Liabilities and Shareholders' Equity $9,436,054$9,495,832$9,190,572



Capitalization Ratios

Shareholders' equity / assets 12.73% 12.52% 12.43%

Tangible common equity / tangible assets ^(8) 9.08% 8.88% 8.64%

Tier 1 leverage ratio 9.65% 9.52% 9.11%

Common equity tier 1 capital 12.07% 11.98% 11.05%

Risk-based capital - tier 1 12.48% 12.40% 11.46%

Risk-based capital - total 14.06% 14.00% 13.18%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks $914,370 0.16%$785,465 0.09%$213,051 0.11%

Securities, at fair value 836,019 2.19%826,861 2.19%759,094 2.41%

Loans held for sale 3,656 3.35%4,353 3.01%4,432 3.09%

Commercial real estate 3,239,867 3.68%3,251,894 3.69%3,322,656 4.02%

Commercial and industrial 1,744,684 4.17%1,890,538 3.90%2,107,750 3.45%

Commercial construction 490,940 3.20%462,928 3.34%469,214 3.43%

Total Commercial Loans 5,475,491 3.80%5,605,359 3.73%5,899,620 3.77%

Residential mortgage 875,684 4.00%863,254 4.17%954,861 4.33%

Home equity 547,984 3.34%535,933 3.50%536,735 3.73%

Installment and other consumer 92,615 5.85%84,259 6.05%79,649 6.47%

Consumer construction 13,626 3.66%13,264 6.39%14,475 4.32%

Total Consumer Loans 1,529,909 3.87%1,496,710 4.06%1,585,720 4.24%

Total Portfolio Loans 7,005,400 3.81%7,102,069 3.80%7,485,340 3.87%

Total Loans 7,009,056 3.81%7,106,422 3.80%7,489,772 3.87%

Federal Home Loan Bank and other restricted stock9,981 2.62%10,529 4.51%15,157 5.11%

Total Interest-earning Assets 8,769,425 3.28%8,729,277 3.31%8,477,074 3.65%

Noninterest-earning assets 724,759 704,635 815,930

Total Assets $9,494,184 $9,433,911 $9,293,004



LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand $962,139 0.08%$998,134 0.09%$967,735 0.18%

Money market 2,062,958 0.18%2,037,976 0.18%2,074,862 0.33%

Savings 1,059,904 0.03%1,044,899 0.03%923,208 0.07%

Certificates of deposit 1,240,345 0.41%1,291,194 0.45%1,486,016 1.16%

Total Interest-bearing Deposits 5,325,346 0.18%5,372,203 0.20%5,451,821 0.48%

Securities sold under repurchase agreements 71,054 0.10%67,838 0.10%64,000 0.25%

Short-term borrowings - -% - -% 84,310 0.38%

Long-term borrowings 22,841 1.99%23,113 2.01%49,269 2.52%

Junior subordinated debt securities 64,118 3.01%64,103 3.06%64,057 3.19%

Total Borrowings 158,012 1.56%155,054 1.61%261,636 1.44%

Total Interest-bearing Liabilities 5,483,358 0.22%5,527,256 0.24%5,713,457 0.53%

Noninterest-bearing liabilities 2,812,185 2,727,653 2,433,665

Shareholders' equity 1,198,641 1,179,002 1,145,882

Total Liabilities and Shareholders' Equity $9,494,184 $9,433,911 $9,293,004



Net Interest Margin ^(9) 3.14% 3.16% 3.29%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Nine Months Ended September 30,

(dollars in thousands) 2021 2020

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks $669,593 0.12%$158,771 0.38%

Securities, at fair value 815,197 2.24%776,995 2.50%

Loans held for sale 4,780 3.02%5,407 3.17%

Commercial real estate 3,248,417 3.71%3,373,466 4.33%

Commercial and industrial 1,863,447 4.13%2,020,179 3.82%

Commercial construction 479,733 3.30%428,977 3.91%

Total Commercial Loans 5,591,597 3.81%5,822,622 4.12%

Residential mortgage 878,709 4.13%974,144 4.24%

Home equity 538,931 3.49%540,220 4.09%

Installment and other consumer 85,640 6.06%79,757 6.60%

Consumer construction 14,257 4.92%12,587 4.49%

Total Consumer Loans 1,517,538 4.02%1,606,708 4.31%

Total Portfolio Loans 7,109,135 3.86%7,429,330 4.16%

Total Loans 7,113,915 3.86%7,434,737 4.16%

Federal Home Loan Bank and other restricted stock10,579 4.07%19,473 5.38%

Total Interest-earning Assets 8,609,284 3.41%8,389,976 3.94%

Noninterest-earning assets 728,314 772,404

Total Assets $9,337,598 $9,162,380



LIABILITIES AND SHAREHOLDERS' EQUITY

Interest-bearing demand $952,297 0.09%$981,174 0.33%

Money market 2,023,583 0.18%2,048,466 0.69%

Savings 1,033,581 0.04%880,673 0.12%

Certificates of deposit 1,291,666 0.51%1,549,177 1.50%

Total Interest-bearing deposits 5,301,126 0.22%5,459,490 0.76%

Securities sold under repurchase agreements 67,872 0.12%60,045 0.30%

Short-term borrowings 8,425 0.19%182,623 1.02%

Long-term borrowings 23,139 2.00%50,292 2.52%

Junior subordinated debt securities 64,103 3.05%64,099 3.72%

Total Borrowings 163,539 1.54%357,059 1.60%

Total Interest-bearing Liabilities 5,464,665 0.26%5,816,549 0.81%

Noninterest-bearing liabilities 2,693,530 2,170,447

Shareholders' equity 1,179,403 1,175,384

Total Liabilities and Shareholders' Equity $9,337,598 $9,162,380



Net Interest Margin ^(10) 3.25% 3.37%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter

Nonperforming Loans (NPL)

Commercial loans: % NPL % NPL % NPL

Commercial real estate $56,400 1.71%$82,050 2.53%$52,8051.60%

Commercial and industrial 38,581 2.27%16,997 0.96%12,498 0.61%

Commercial construction 4,053 0.75%384 0.08%1,504 0.31%

Total Nonperforming Commercial Loans^ (1)99,034 1.83%99,431 1.81%66,807 1.15%

Consumer loans:

Residential mortgage 9,172 1.03%9,917 1.15%13,018 1.37%

Home equity 2,917 0.53%3,150 0.58%4,106 0.76%

Installment and other consumer 189 0.19%121 0.14%141 0.17%

Total Nonperforming Consumer Loans 12,278 0.79%13,188 0.87%17,265 1.08%

Total Nonperforming Loans ^(1) $111,3121.60%$112,6191.61%$84,0721.13%

^(1) Included in nonperforming commercial loans is $1.7 million of loans held for sale.





2021 2021 2020

Third Second Third

(dollars in thousands) QuarterQuarter Quarter

Loan Charge-offs (Recoveries)

Charge-offs $4,206$8,737 $13,667

Recoveries (616) (1,264)(754)

Net Loan Charge-offs (Recoveries) $3,590$7,473 $12,913



Net Loan Charge-offs (Recoveries)

Commercial loans:

Commercial real estate 3,651 6,595 10,963

Commercial and industrial (277) 795 1,267

Commercial construction 54 (2) (1)

Total Commercial Loan Charge-offs (Recoveries)3,428 7,388 12,229

Consumer loans:

Residential mortgage 2 (57) 274

Home equity 37 10 204

Installment and other consumer 123 132 206

Total Consumer Loan Charge-offs (Recoveries) 162 85 684

Total Net Loan Charge-offs (Recoveries) $3,590$7,473 $12,913

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Nine Months Ended September 30,

(dollars in thousands) 2021 2020

Loan Charge-offs (Recoveries)

Charge-offs $19,476 $93,415

Recoveries (2,601) (1,273)

Net Loan Charge-offs (Recoveries) $16,875 $92,142



Net Loan Charge-offs (Recoveries)

Commercial loans:

Customer fraud $- $58,671

Commercial real estate 10,944 16,979

Commercial and industrial 5,431 14,592

Commercial construction 51 (22)

Total Commercial Loan Charge-offs/(Recoveries)16,426 90,220

Consumer loans:

Residential mortgage 17 367

Home equity 279 301

Installment and other consumer 153 1,254

Total Consumer Loan Charge-offs (Recoveries) 449 1,922

Total Net Loan Charge-offs (Recoveries) $16,875 $92,142





2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter

Asset Quality Data

Nonperforming loans $111,312112,619$84,072

OREO 13,370 1,145 2,317

Total Nonperforming assets 124,682 113,76486,389

Troubled debt restructurings (nonaccruing) 14,033 20,650 18,648

Troubled debt restructurings (accruing) 13,782 14,321 18,478

Total troubled debt restructurings 27,815 34,971 37,126

Nonperforming loans / total loans 1.60% 1.61% 1.13%

Nonperforming assets / total loans plus OREO 1.78% 1.62% 1.17%

Allowance for credit losses / total portfolio loans 1.55% 1.56% 1.64%

Allowance for credit losses / total portfolio loans excluding PPP1.60% 1.64% 1.77%

Allowance for credit losses / nonperforming loans 97% 97.00% 144%

Net loan charge-offs (recoveries) $3,590 $7,473 $12,913

Net loan charge-offs (recoveries)(annualized) / average loans 0.21% 0.43% 0.69%





Nine Months Ended September 30,

(dollars in thousands) 2021 2020

Asset Quality Data

Net loan charge-offs (recoveries) $16,875 $92,142

Net loan charge-offs (recoveries)(annualized) / average loans0.32% 1.66%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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



2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter



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

Total shareholders' equity $1,201,681$1,188,733$1,142,115

Less: goodwill and other intangible assets, net of deferred tax (379,218) (379,563) (380,735) liability

Tangible common equity (non-GAAP) $822,462 $809,170 $761,380

Common shares outstanding 39,368 39,346 39,252

Tangible book value (non-GAAP) $20.89 $20.57 $19.40



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

Net income (annualized) $109,492 $113,778 $66,455

Plus: amortization of intangibles (annualized), net of tax 1,369 1,395 2,069

Net income before amortization of intangibles (annualized) $110,861 $115,173 $68,524



Average total shareholders' equity $1,198,641$1,179,002$1,145,882

Less: average goodwill and other intangible assets, net of deferred(379,443) (379,784) (380,781) tax liability

Average tangible equity (non-GAAP) $819,197 $799,218 $765,101

Return on average tangible shareholders' equity (non-GAAP) 13.53% 14.41% 8.96%



^(3) PTPP / Average Assets (non-GAAP)

Income before taxes $33,928 $35,338 $20,028

Plus: Provision for credit losses 3,388 2,561 17,485

Total 37,317 37,899 37,513

Total (annualized) (non-GAAP) $148,051 $152,012 $149,237

Average assets $9,494,184$9,433,911$9,293,004

PTPP / Average Assets (non-GAAP) 1.56% 1.61% 1.61%



^(4) Efficiency Ratio (non-GAAP)

Noninterest expense $47,241 $45,829 $48,246

Net interest income per consolidated statements of net income $68,712 $68,304 $69,276

Plus: taxable equivalent adjustment 557 585 780

Net interest income (FTE) (non-GAAP) 69,269 68,889 70,056

Noninterest income 15,846 15,424 16,483

Less: net (gains) losses on sale of securities - (29) -

Net interest income (FTE) (non-GAAP) plus noninterest income $85,115 $84,284 $86,539

Efficiency ratio (non-GAAP) 55.50% 54.37% 55.75%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

Nine Months Ended September 30,

(dollars in thousands) 2021 2020



^(5) Return on Average Tangible Shareholders' Equity (non-GAAP)

Net income (loss) (annualized) $117,477 ($4,189)

Plus: amortization of intangibles (annualized), net of tax 1,409 2,050

Net income before amortization of intangibles (annualized) $118,886 ($2,140)



Average total shareholders' equity $1,179,403 $1,175,384

Less: average goodwill and other intangible assets, net of deferred tax (379,788) (380,884) liability

Average tangible equity (non-GAAP) $799,614 $794,500

Return on average tangible shareholders' equity (non-GAAP) 14.87% (0.27)%



^(6) PTPP / Average Assets (non-GAAP)

Income (loss) before taxes $108,444 ($8,839)

Plus: Provision for credit losses 9,087 124,294

Total 117,531 115,455

Total (annualized) (non-GAAP) $157,139 $154,221

Average assets $9,337,598 $9,162,380

PTPP / Average Assets (non-GAAP) 1.68% 1.68%



^(7)^ Efficiency Ratio (non-GAAP)

Noninterest expense $138,650 $138,115

Less: merger related expenses - (2,342)

Noninterest expense excluding nonrecurring items $138,650 $135,773



Net interest income per consolidated statements of net income $207,674 $209,460

Plus: taxable equivalent adjustment 1,806 2,477

Net interest income (FTE) (non-GAAP) 209,480 211,937

Noninterest income 48,507 44,110

Less: net (gains) losses on sale of securities (29) (142)

Net interest income (FTE) (non-GAAP) plus noninterest income $257,958 $255,905

Efficiency ratio (non-GAAP) 53.75% 53.06%



^(10) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income and dividend income $218,127 $244,916

Less: interest expense (10,453) 35,456

Net interest income per consolidated statements of net income 207,674 209,460

Plus: taxable equivalent adjustment 1,806 2,477

Net interest income (FTE) (non-GAAP) $209,480 $211,937

Net interest income (FTE) (annualized) $280,074 $283,098

Average interest-earning assets $8,609,284 $8,389,976

Net interest margin - (FTE) (non-GAAP) 3.25% 3.37%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



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



2021 2021 2020

Third Second Third

(dollars in thousands) Quarter Quarter Quarter



^(8) Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders' equity $1,201,681$1,188,733$1,142,115

Less: goodwill and other intangible assets, net of deferred tax liability(379,218) (379,563) (380,735)

Tangible common equity (non-GAAP) $822,462 $809,170 $761,380



Total assets $9,436,054$9,495,832$9,190,572

Less: goodwill and other intangible assets, net of deferred tax liability(379,218) (379,563) (380,735)

Tangible assets (non-GAAP) $9,056,836$9,116,269$8,809,837

Tangible common equity to tangible assets (non-GAAP) 9.08% 8.88% 8.64%



^(9) Net Interest Margin Rate (FTE) (non-GAAP)

Interest income and dividend income $71,769 $71,577 $76,848

Less: interest expense (3,058) (3,273) (7,572)

Net interest income per consolidated statements of net income 68,711 68,304 69,276

Plus: taxable equivalent adjustment 557 585 780

Net interest income (FTE) (non-GAAP) $69,268 $68,889 $70,056

Net interest income (FTE) (annualized) $274,812 $276,313 $278,701

Average interest- earning assets $8,769,425$8,729,277$8,477,074

Net interest margin (FTE) (non-GAAP) 3.14% 3.16% 3.29%



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SOURCE S&T Bancorp, Inc.