PR Newswire | Jan 27, 2022 07:31AM EST

01/27 06:30 CST

S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2021 Results INDIANA, Pa., Jan. 27, 2022

INDIANA, Pa., Jan. 27, 2022 /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 2021 earnings. Net income was $22.5 million, or $0.57 per diluted share, for the fourth quarter compared to net income of $27.6 million, or $0.70 per diluted share, for the third quarter of 2021, and $24.2 million, or $0.62 per diluted share, for the fourth quarter of 2020.

Net income was $110.3 million, or $2.81 per diluted share, for the year ended December 31, 2021 compared to net income of $21.0 million, or $0.53 per diluted share, for 2020. Net income for 2020 was impacted by a customer fraud that reduced net income by $46.3 million, or $1.19 per diluted share.

Fourth Quarter of 2021 Highlights:

* Return on average assets (ROA) was 0.94%, return on average equity (ROE) was 7.39% and return on average tangible equity (ROTE) (non-GAAP) was 10.95%. * Pre-tax pre-provision to average assets (PTPP) (non-GAAP) was 1.44%. * Net interest income, excluding Paycheck Protection Program (PPP), increased by $0.8 million compared to the third quarter of 2021. * Net interest margin (FTE) (non-GAAP) was relatively unchanged at 3.12% compared to 3.14% for the third quarter of 2021. * Total portfolio loans, excluding PPP, increased $122.6 million, or 7.2% annualized, compared to September 30, 2021. * Broad-based loan growth across nearly all loan categories. Commercial loans, excluding PPP, increased $75.3 million, or 5.7% annualized and consumer loans increased $47.3 million, or 12.1% annualized, compared to September 30, 2021. * Total deposit growth of $51.4 million with an improved deposit mix and strong noninterest-bearing demand growth compared to September 30, 2021. * The allowance for credit losses to total portfolio loans was 1.41% at December 31, 2021 compared to 1.55% at September 30, 2021. * S&T's Board of Directors declared a $0.29 per share dividend compared to $0.28 per share in the same period last year.

Full Year 2021 Highlights:

* Record net income of $110.3 million. * ROA was 1.18%, ROE was 9.30% and ROTE (non-GAAP) was 13.85%. * PTPP (non-GAAP) was 1.62%. * Total portfolio loans, excluding PPP, increased $150.8 million, or 2.2% compared to December 31, 2020. * Total deposit growth of $576.0 million, or 7.8%, with an improved deposit mix and strong noninterest-bearing demand growth compared to December 31, 2020. * Strong core customer fee growth, including service charges, card income and wealth management, of $7.2 million, or 18.7% compared to 2020. * Full year 2021 dividends declared increased to $1.13 compared to $1.12 in 2020.

"2021 was a year of transition and significant change for S&T." said Chris McComish, chief executive officer of S&T. "I am extremely proud of our entire team, as exemplified by their resilience, teamwork and commitment to the customers and communities that we serve. The S&T team is focused and engaged around our priorities to deliver results and achieve our growth goals. Our fourth quarter was highlighted by broad based loan growth and solid deposit growth giving us great momentum as we enter 2022."

Fourth Quarter of 2021 Results (three months ended December 31, 2021)

Net Interest Income

Net interest income decreased $0.3 million to $68.4 million compared to $68.7 million in the third quarter of 2021. Net interest income, excluding PPP, increased by $0.8 million compared to the prior quarter. Net interest income related to PPP loans decreased $1.1 million to $3.1 million compared to $4.2 million in the prior quarter. Average PPP loans decreased by $92.7 million compared to the third quarter of 2021. Average loans, excluding PPP, increased $128.8 million compared to the prior quarter. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) decreased 2 basis points to 3.12% compared to 3.14% in the prior quarter. The decline in NIM (FTE) (non-GAAP) was primarily due to lower loan and security yields.

Asset Quality

Total nonperforming loans decreased by 40.4% or $45.0 million to $66.3 million, or 0.95% of total loans, at December 31, 2021 compared to $111.3 million, or 1.60% of total loans at September 30, 2021. The decrease in nonperforming loans primarily related to the return to performing status of $22.1 million of hotel loans and due to loan charge-offs.The provision for credit losses increased $3.7 million to $7.1 million for the fourth quarter of 2021 compared to $3.4 million in the third quarter of 2021. Net loan charge-offs were $17.7 million for the fourth quarter of 2021 compared to $3.6 million in the third quarter of 2021. Higher net charge-offs related to two commercial and industrial (C&I) relationships. A $10.3 million charge-off was taken on a relationship that moved to nonperforming during the third quarter of 2021 and had a specific reserve of $9.3 million at September 30, 2021. Additionally, a $5.6 million charge-off was taken related to a nonperforming relationship. The allowance for credit losses was 1.41% of total portfolio loans at December 31, 2021 compared to 1.55% at September 30, 2021.

Noninterest Income and Expense

Noninterest income increased $0.3 million to $16.1 million in the fourth quarter of 2021 compared to $15.8 million in the third quarter of 2021. The increase in noninterest income primarily related to higher commercial loan swap income of $0.4 million and other income of $0.7 million which was related to market value adjustments. Offsetting this increase was a decline in mortgage banking income of $0.6 million due to lower refinance activity compared to the third quarter of 2021. Noninterest expense increased $3.0 million to $50.2 million in the fourth quarter of 2021 compared to $47.2 million in the third quarter of 2021. Salaries and employee benefits increased $1.9 million compared to the prior quarter primarily due to higher incentives. Data processing increased $0.7 million due to increased activity and new products and services and marketing increased $0.5 million due to the timing of marketing initiatives.

Financial Condition

Total assets increased $52.5 million to $9.5 billion at December 31, 2021 compared to $9.4 billion at September 30, 2021. Portfolio loans, excluding PPP, increased $122.6 million, or 7.2% annualized, compared to September 30, 2021. Loan growth was in all categories except commercial construction. Commercial loans, excluding PPP, increased $75.3 million, or 5.7% annualized, which primarily consisted of C&I growth, excluding PPP, of $122.9 million, or 32.1% annualized. Consumer loans increased $47.3 million, or 12.1% annualized, which primarily consisted of home equity growth of $15.8 million, or 11.5% annualized, and residential mortgage growth of $12.0 million, or 5.4% annualized. PPP loans were $88.3 million at December 31, 2021 with $92.7 million of forgiveness during the fourth quarter of 2021. Securities increased $40.7 million compared to September 30, 2021 due to cash being redeployed to higher yielding assets. Total deposits increased $51.4 million mainly due to increases in noninterest-bearing demand of $96.3 million, savings of $35.3 million and money market of $25.3 million offset by a decrease in certificates of deposit of $113.2 million compared to September 30, 2021. S&T continues to maintain a strong capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Full Year 2021 Results (twelve months ended December 31, 2021)

Full year net income was a record $110.3 million, or $2.81 per diluted share, for the year ended December 31, 2021 compared to net income of $21.0 million, or $0.53 per diluted share, for 2020. Net income for 2020 was impacted by a customer fraud that reduced net income by $46.3 million, or $1.19 per diluted share.

Net interest income decreased $3.3 million compared to 2020 primarily due to the impact of a full year in a low interest rate environment. Net interest income was further impacted by the effects of the pandemic on loan growth throughout 2021 which resulted in a decrease in average loan balances of $325.8 million. Net interest margin (FTE) (non-GAAP) decreased 16 basis points to 3.22% compared to 3.38% for 2020.

Noninterest income increased $4.9 million compared to the prior year. Wealth management income increased $2.9 million due to customer growth and improved market conditions. Debit and credit card fees increased $2.9 million and service charges on deposit accounts increased $1.4 million due to increased customer activity. These were offset by lower commercial loan swap income of $3.6 million and mortgage banking income of $1.2 million. Noninterest expense increased $2.2 million compared to 2020. Salaries and employee benefits increased $10.1 million primarily due to higher payroll incentives. Data processing and information technology increased $1.2 million due to new products and services in 2021. These higher expenses were offset by decreases in marketing of $1.4 million and merger related expenses of $2.3 million. The efficiency ratio (non-GAAP) for 2021 was 55.05% compared to 53.86% for 2020.

The provision for credit losses decreased $115.2 million to $16.2 million for 2021 compared to $131.4 million for 2020. Excluding the customer fraud loss of $58.7 million, the provision was $72.7 million for 2020. The provision for credit losses decreased significantly in 2021 due to lower net charge-offs and an improved outlook for the economy and our loan portfolio. Net loan charge-offs were $34.5 million for 2021 compared to $103.4 million for 2020. Excluding the customer fraud, net charge-offs were $44.7 million for 2020. Total nonperforming loans decreased $80.5 million to $66.3 million, or 0.95% of total loans, at December 31, 2021 compared to $146.8 million, or 2.03% of total loans at December 31, 2020. The allowance for credit losses was 1.41% of total portfolio loans as of December 31, 2021 compared to 1.63% at December 31, 2020.

Dividend

S&T's Board of Directors approved a quarterly cash dividend of $0.29 per share on January 24, 2022. This dividend compares to $0.28 per share dividend declared in the same period in the prior year. The dividend is payable February 24, 2022 to shareholders of record on February 10, 2022. Dividends declared in 2021 increased $0.01 to $1.13 compared to $1.12 for 2020.

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 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 27, 2022. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "4th 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 February 3, 2022, by dialing 1.877.481.4010; the Conference ID is 44007.

About S&T Bancorp, Inc.

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; 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, 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

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

INTEREST AND DIVIDEND INCOME

Loans, including fees $66,373 $66,914 $71,148

Investment securities:

Taxable 4,173 4,176 3,371

Tax-exempt 495 595 851

Dividends 94 84 178

Total Interest and Dividend Income 71,135 71,769 75,548



INTEREST EXPENSE

Deposits 2,186 2,439 4,795

Borrowings and junior subordinated debt securities 511 619 824

Total Interest Expense 2,697 3,058 5,619



NET INTEREST INCOME 68,438 68,711 69,929

Provision for credit losses 7,128 3,388 7,130

Net Interest Income After Provision for Credit Losses61,310 65,323 62,799



NONINTEREST INCOME

Gain (loss) on sale of securities - - -

Debit and credit card fees 4,467 4,579 3,830

Service charges on deposit accounts 4,001 3,923 3,492

Wealth management 3,314 3,464 2,486

Mortgage banking 1,528 2,162 3,100

Commercial loan swap income 569 184 812

Other 2,225 1,534 1,889

Total Noninterest Income 16,104 15,846 15,609



NONINTEREST EXPENSE

Salaries and employee benefits 27,144 25,228 22,789

Data processing and information technology 4,668 4,001 3,835

Net occupancy 3,624 3,660 4,068

Furniture, equipment and software 2,897 2,745 2,904

Professional services and legal 1,650 1,550 1,503

Other taxes 1,545 1,830 1,806

Marketing 1,346 890 2,113

FDIC insurance 1,044 1,210 1,372

Other 6,271 6,127 8,138

Total Noninterest Expense 50,189 47,241 48,528



Income Before Taxes 27,225 33,928 29,880

Income Tax Expense 4,748 6,330 5,703



Net Income $22,477 $27,598 $24,177



Per Share Data:

Shares outstanding at end of period 39,351,19439,367,84739,298,007

Average diluted shares outstanding 39,082,28539,062,08039,021,008

Diluted earnings per share $0.57 $0.70 $0.62

Dividends declared per share $0.29 $0.28 $0.28

Dividend yield (annualized) 3.68% 3.80% 4.51%

Dividends paid to net income 50.64% 39.83% 45.40%

Book value $30.66 $30.52 $29.38

Tangible book value ^(1) $21.03 $20.89 $19.71

Market value $31.52 $29.47 $24.84



Profitability Ratios (annualized)

Return on average assets 0.94% 1.15% 1.05%

Return on average shareholders' equity 7.39% 9.13% 8.35%

Return on average tangible shareholders' equity ^(2) 10.95% 13.53% 12.71%

Pre-tax pre-provision income/ average assets ^(3) 1.44% 1.56% 1.61%

Efficiency ratio (FTE) ^(4) 59.01% 55.50% 56.26%

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



For the Twelve Months Ended December 31,

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

INTEREST AND DIVIDEND INCOME

Loans, including fees $270,460 $300,960

Investment securities:

Taxable 15,706 14,918

Tax-exempt 2,593 3,497

Dividends 503 1,089

Total Interest and Dividend Income 289,262 320,464



INTEREST EXPENSE

Deposits 10,757 35,986

Borrowings and junior subordinated debt securities 2,393 5,090

Total Interest Expense 13,150 41,076



NET INTEREST INCOME 276,112 279,388

Provision for credit losses 16,215 131,424

Net Interest Income After Provision for Credit Losses259,897 147,964



NONINTEREST INCOME

Net gain on sale of securities 29 142

Debit and credit card 17,952 15,093

Service charges on deposit accounts 15,040 13,597

Wealth management 12,889 9,957

Mortgage banking 9,734 10,923

Commercial loan swap income 1,146 4,740

Other 7,820 5,267

Total Noninterest Income 64,610 59,719



NONINTEREST EXPENSE

Salaries and employee benefits 100,214 90,115

Data processing and information technology 16,681 15,499

Net occupancy 14,544 14,529

Furniture, equipment and software 10,684 11,050

Other taxes 6,644 6,622

Professional services and legal 6,368 6,394

Marketing 4,553 5,996

FDIC insurance 4,224 5,089

Merger related expenses - 2,342

Other 24,927 29,008

Total Noninterest Expense 188,839 186,644



Income Before Taxes 135,668 21,039

Income taxes (benefit) expense 25,325 (1)



Net Income $110,343 $21,040



Per Share Data:

Average diluted shares outstanding 39,052,96139,073,219

Diluted earnings per share $2.81 $0.53

Dividends declared per share $1.13 $1.12

Dividends paid to net income 40.18% 200.89%



Profitability Ratios

Return on average assets 1.18% 0.23%

Return on average shareholders' equity 9.30% 1.80%

Return on average tangible shareholders' equity ^(5) 13.85% 2.92%

Pre-tax pre-provision income/average assets ^(6) 1.62% 1.67%

Efficiency ratio (FTE) ^(7) 55.05% 53.86%

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



2021 2021 2020

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

ASSETS

Cash and due from banks, including interest-bearing deposits$922,215 $934,377 $229,666

Securities, at fair value 910,793 870,121 773,693

Loans held for sale 1,522 4,303 18,528

Commercial loans:

Commercial real estate 3,236,653 3,225,863 3,244,974

Commercial and industrial 1,728,969 1,698,784 1,954,453

Commercial construction 440,962 499,317 474,280

Total Commercial Loans 5,406,584 5,423,964 5,673,707

Consumer loans:

Residential mortgage 899,956 887,937 918,398

Home equity 564,219 548,396 535,165

Installment and other consumer 107,928 97,606 80,915

Consumer construction 21,303 12,184 17,675

Total Consumer Loans 1,593,406 1,546,123 1,552,153

Total Portfolio Loans 6,999,990 6,970,087 7,225,860

Allowance for credit losses (98,576) (108,348) (117,612)

Total Portfolio Loans, Net 6,901,414 6,861,739 7,108,248

Federal Home Loan Bank and other restricted stock, at cost 9,519 9,893 13,030

Goodwill 373,424 373,424 373,424

Other assets 369,642 382,197 451,308

Total Assets $9,488,529$9,436,054$8,967,897



LIABILITIES

Deposits:

Noninterest-bearing demand $2,748,586$2,652,314$2,261,994

Interest-bearing demand 979,133 971,321 864,510

Money market 2,070,579 2,045,320 1,937,063

Savings 1,110,155 1,074,896 969,508

Certificates of deposit 1,088,071 1,201,268 1,387,463

Total Deposits 7,996,524 7,945,119 7,420,538



Borrowings:

Securities sold under repurchase agreements 84,491 72,586 65,163

Short-term borrowings - - 75,000

Long-term borrowings 22,430 22,693 23,681

Junior subordinated debt securities 54,393 64,128 64,083

Total Borrowings 161,314 159,407 227,927

Other liabilities 124,237 129,847 164,721

Total Liabilities 8,282,075 8,234,373 7,813,186



SHAREHOLDERS' EQUITY

Total Shareholders' Equity 1,206,454 1,201,681 1,154,711

Total Liabilities and Shareholders' Equity $9,488,529$9,436,054$8,967,897



Capitalization Ratios

Shareholders' equity / assets 12.71% 12.73% 12.88%

Tangible common equity / tangible assets ^(9) 9.08% 9.08% 9.02%

Tier 1 leverage ratio 9.74% 9.65% 9.43%

Common equity tier 1 capital 12.03% 12.07% 11.33%

Risk-based capital - tier 1 12.43% 12.48% 11.74%

Risk-based capital - total 13.79% 14.06% 13.44%

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



2021 2021 2020

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

Net Interest Margin (FTE) (QTD Averages)

ASSETS

Interest-bearing deposits with banks $877,738 0.16%$914,370 0.16%$242,778 0.11%

Securities, at fair value 883,066 2.02%836,019 2.19%726,535 2.43%

Loans held for sale 2,057 3.03%3,656 3.35%4,206 2.98%

Commercial Loans:

Commercial real estate 3,252,946 3.59%3,239,867 3.68%3,269,109 3.77%

Commercial and industrial 1,729,014 4.21%1,744,684 4.17%2,012,774 3.95%

Commercial construction 446,219 3.19%490,940 3.20%481,136 3.42%

Total Commercial Loans 5,428,179 3.76%5,475,491 3.80%5,763,019 3.81%

Consumer Loans:

Residential mortgage 889,758 4.03%875,684 4.00%936,735 4.29%

Home equity 558,158 3.37%547,984 3.34%537,201 3.66%

Installment and other consumer 103,450 5.63%92,615 5.85%80,849 6.43%

Consumer construction 16,203 3.50%13,626 3.66%16,154 4.21%

Total Consumer Loans 1,567,569 3.90%1,529,909 3.87%1,570,939 4.18%

Total Portfolio Loans 6,995,748 3.79%7,005,400 3.81%7,333,958 3.89%

Total Loans 6,997,805 3.79%7,009,056 3.81%7,338,164 3.89%

Federal Home Loan Bank and other restricted stock9,720 3.06%9,981 2.62%14,545 3.97%

Total Interest-earning Assets 8,768,329 3.25%8,769,425 3.28%8,322,022 3.65%

Noninterest-earning assets 722,029 724,759 802,037

Total Assets $9,490,357 $9,494,184 $9,124,059



LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand $967,826 0.07%$962,139 0.08%$904,190 0.11%

Money market 2,063,447 0.17%2,062,958 0.18%2,015,248 0.20%

Savings 1,090,211 0.03%1,059,904 0.03%956,438 0.07%

Certificates of deposit 1,147,664 0.36%1,240,345 0.41%1,423,727 0.93%

Total Interest-bearing Deposits 5,269,148 0.16%5,325,346 0.18%5,299,603 0.36%

Borrowings:

Securities sold under repurchase agreements 76,171 0.10%71,054 0.10%50,607 0.25%

Short-term borrowings - -% - -% 75,728 0.22%

Long-term borrowings 22,566 1.96%22,841 1.99%40,986 2.43%

Junior subordinated debt securities 54,383 2.77%64,118 3.01%64,073 3.11%

Total Borrowings 153,120 1.32%158,012 1.56%231,394 1.42%

Total Interest-bearing Liabilities 5,422,269 0.20%5,483,358 0.22%5,530,997 0.40%

Noninterest-bearing liabilities 2,861,873 2,812,185 2,441,129

Shareholders' Equity 1,206,216 1,198,641 1,151,933

Total Liabilities and Shareholders' Equity $9,490,357 $9,494,184 $9,124,059



Net Interest Margin ^(10) 3.12% 3.14% 3.38%



S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



For the Twelve Months Ended December 31,

(dollars in thousands) 2021 2020

Net Interest Margin (FTE) (YTD Averages)

ASSETS

Interest-bearing deposits with banks $722,057 0.13%$179,887 0.29%

Securities, at fair value 832,304 2.18%764,311 2.49%

Loans held for sale 4,094 3.03%5,105 3.13%

Commercial Loans:

Commercial real estate 3,249,559 3.68%3,347,234 4.19%

Commercial and industrial 1,829,563 4.15%2,018,318 3.85%

Commercial construction 471,286 3.28%442,088 3.78%

Total Commercial Loans 5,550,407 3.80%5,807,640 4.04%

Consumer Loans:

Residential mortgage 881,494 4.11%964,740 4.25%

Home equity 543,777 3.46%539,461 3.98%

Installment and other consumer 90,129 5.94%80,032 6.56%

Consumer construction 14,748 4.53%13,484 4.40%

Total Consumer Loans 1,530,148 3.99%1,597,717 4.28%

Total Portfolio Loans 7,080,555 3.84%7,405,357 4.09%

Total Loans 7,084,649 3.84%7,410,462 4.09%

Federal Home Loan Bank and other restricted stock10,363 3.83%18,234 5.10%

Total Interest-earning Assets 8,649,372 3.37%8,372,894 3.87%

Noninterest-earning assets 726,478 779,853

Total Assets $9,375,850 $9,152,747



LIABILITIES AND SHAREHOLDERS' EQUITY

Deposits:

Interest-bearing demand $956,211 0.08%$961,823 0.28%

Money market 2,033,631 0.18%2,040,116 0.57%

Savings 1,047,855 0.03%899,717 0.11%

Certificates of deposit 1,255,370 0.47%1,517,643 1.36%

Total Interest-bearing Deposits 5,293,066 0.20%5,419,299 0.66%

Borrowings:

Securities sold under repurchase agreements 69,964 0.11%57,673 0.29%

Short-term borrowings 6,301 0.19%155,753 0.92%

Long-term borrowings 22,995 1.99%47,953 2.50%

Junior subordinated debt securities 61,653 2.99%64,092 3.57%

Total Borrowings 160,913 1.49%325,471 1.56%

Total Interest-bearing Liabilities 5,453,979 0.24%5,744,770 0.72%

Noninterest-bearing liabilities 2,735,710 2,238,488

Total Shareholders' Equity 1,186,161 1,169,489

Total Liabilities and Shareholders' Equity $9,375,850 $9,152,747



Net Interest Margin ^(8) 3.22% 3.38%





S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



2021 2021 2020

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter

Nonperforming Loans (NPL)

Commercial loans: % Loans % Loans % Loans

Commercial real estate $32,8921.02% $56,400 1.71% $105,014 3.24%

Commercial and industrial 19,810 1.15% 38,581 2.27% 23,337 1.19%

Commercial construction 2,471 0.56% 4,053 0.75% 384 0.08%

Total Nonperforming Commercial Loans55,173 1.02% 99,034 1.83% 128,735 2.27%

Consumer loans:

Residential mortgage 8,227 0.91% 9,172 1.03% 13,008 1.42%

Home equity 2,733 0.48% 2,917 0.53% 4,935 0.92%

Installment and other consumer 158 0.15% 189 0.19% 96 0.12%

Total Nonperforming Consumer Loans 11,118 0.70% 12,278 0.79% 18,039 1.15%

Total Nonperforming Loans $66,2910.95% $111,3121.60% $146,774 2.03%

(dollars in thousands)

Loan Charge-offs/(Recoveries)

Charge-offs $18,048 $4,206 $12,951

Recoveries (393) (616) (1,713)

Net Loan Charge-offs $17,655 $3,590 $11,238



Net Loan Charge-offs (Recoveries)

Commercial Loans:

Commercial real estate $1,352 $3,651 $10,185

Commercial and industrial 16,053 (277) 412

Commercial construction (10) 54 293

Total Commercial Loan Charge-offs 17,395 3,428 10,890

Consumer loans:

Residential mortgage 104 2 68

Home equity 8 37 132

Installment and other consumer 148 123 148

Total Consumer Loan Charge-offs 260 162 348

Total Net Loan Charge-offs $17,655 $3,590 $11,238



For the Twelve Months Ended December 31,

(dollars in thousands) 2021 2020

Loan Charge-offs/(Recoveries)

Charge-offs $37,524 $106,365

Recoveries (2,994) (2,986)

Net Loan Charge-offs $34,530 $103,379



Net Loan Charge-offs (Recoveries)

Commercial Loans:

Customer fraud $- $58,671

Commercial real estate 12,296 27,164

Commercial and industrial 21,483 15,004

Commercial construction 42 271

Total Commercial Loan Charge-offs 33,821 101,110

Consumer loans:

Residential mortgage 121 435

Home equity 288 433

Installment and other consumer 300 1,401

Total Consumer Loan Charge-offs 709 2,269

Total Net Loan Charge-offs $34,530 $103,379

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



2021 2021 2020

Fourth Third Fourth

(dollars in thousands) QuarterQuarter Quarter

Asset Quality Data

Nonperforming loans $66,291$111,312$146,774

OREO 13,313 13,370 2,155

Nonperforming assets 79,604 124,682 148,929

Troubled debt restructurings (nonaccruing) 21,774 14,033 29,289

Troubled debt restructurings (accruing) 9,921 13,782 17,460

Total troubled debt restructurings 31,695 27,815 46,749

Nonperforming loans / total loans 0.95% 1.60% 2.03%

Allowance for credit losses / total portfolio loans1.41% 1.55% 1.63%

Allowance for credit losses / nonperforming loans 149% 97% 80%

Net loan charge-offs $17,655$3,590 $11,238

Net loan charge-offs (annualized) / average loans 1.02% 0.21% 0.61%





For the Twelve Months Ended December 31,

(dollars in thousands) 2021 2020

Asset Quality Data

Net loan charge-offs $34,530 $103,379

Net loan charge-offs / average loans 0.49% 1.40%

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



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

2021 2021 2020

Fourth Third Fourth

(dollars and shares in thousands) Quarter Quarter Quarter



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

Total shareholders' equity $1,206,453$1,201,681$1,154,711

Less: goodwill and other intangible assets, net of deferred tax liability (378,871) (379,218) (380,278)

Tangible common equity (non-GAAP) $827,582 $822,462 $774,434

Common shares outstanding 39,351 39,368 39,298

Tangible book value (non-GAAP) $21.03 $20.89 $19.71



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

Net income (annualized) $89,176 $109,492 $96,181

Plus: amortization of intangibles (annualized), net of tax (366) 1,369 1,853

Net income before amortization of intangibles (annualized) $90,552 $110,861 $98,034



Average total shareholders' equity $1,206,216$1,198,641$1,151,933

Less: average goodwill and other intangible assets, net of deferred tax (379,090) (379,443) (380,734) liability

Average tangible equity (non-GAAP) $827,126 $819,197 $771,199

Return on average tangible shareholders' equity (non-GAAP) 10.95% 13.53% 12.71%



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

Income before taxes $27,225 $33,928 $29,880

Plus: Provision for credit losses 7,128 3,388 7,130

Total 34,353 37,317 37,010

Total (annualized) (non-GAAP) $136,292 $148,051 $147,235

Average assets $9,490,357$9,494,184$9,124,059

PTPP / Average Assets (non-GAAP) 1.44 % 1.56 % 1.61 %



^(4) Efficiency Ratio (non-GAAP)

Noninterest expense $50,189 $47,241 $48,528

Net interest income per consolidated statements of net income $68,438 $68,711 $69,929

Plus: taxable equivalent adjustment 510 557 725

Net interest income (FTE) (non-GAAP) 68,948 69,268 70,654

Noninterest income 16,104 15,846 15,609

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

Net interest income (FTE) (non-GAAP) plus noninterest income $85,052 $85,114 $86,263

Efficiency ratio (non-GAAP) 59.01% 55.50% 56.26%



S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



Twelve Months Ended December 31,

(dollars in thousands) 2021 2020



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

Net income (loss) (annualized) $110,343 $21,040

Plus: amortization of intangibles (annualized), net of tax 1,400 2,001

Net income before amortization of intangibles (annualized) $111,743 $23,041



Average total shareholders' equity $1,186,161 $1,169,489

Less: average goodwill and other intangible assets, net of deferred tax (379,612) (380,846) liability

Average tangible equity (non-GAAP) $806,549 $788,643

Return on average tangible shareholders' equity (non-GAAP) 13.85% 2.92%



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

Income (loss) before taxes $135,668 $21,039

Plus: Provision for credit losses 16,215 131,424

Total 151,884 152,463

Total (annualized) (non-GAAP) $151,884 $152,463

Average assets $9,375,850 $9,152,747

PTPP / Average Assets (non-GAAP) 1.62 % 1.67 %



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

Noninterest expense $188,839 $186,644

Less: merger related expenses - (2,342)

Noninterest expense excluding nonrecurring items $188,839 $184,302



Net interest income per consolidated statements of net income $276,112 $279,388

Plus: taxable equivalent adjustment 2,316 3,202

Net interest income (FTE) (non-GAAP) 278,428 282,590

Noninterest income 64,610 59,719

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

Net interest income (FTE) (non-GAAP) plus noninterest income $343,010 $342,167

Efficiency ratio (non-GAAP) 55.05% 53.86%



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

Interest income and dividend income $289,262 $320,464

Less: interest expense (13,150) (41,076)

Net interest income per consolidated statements of net income 276,112 279,388

Plus: taxable equivalent adjustment 2,316 3,202

Net interest income (FTE) (non-GAAP) $278,428 $282,590

Average interest-earning assets 8,649,372 $8,372,894

Net interest margin - (FTE) (non-GAAP) 3.22% 3.38%

S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited



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

2021 2021 2020

Fourth Third Fourth

(dollars in thousands) Quarter Quarter Quarter



^(9) Tangible Common Equity / Tangible Assets (non-GAAP)

Total shareholders' equity $1,206,453$1,201,681$1,154,711

Less: goodwill and other intangible assets, net of deferred tax liability(378,871) (379,218) (380,278)

Tangible common equity (non-GAAP) $827,582 $822,462 $774,434



Total assets $9,488,529$9,436,054$8,967,897

Less: goodwill and other intangible assets, net of deferred tax liability(378,871) (379,218) (380,278)

Tangible assets (non-GAAP) $9,109,658$9,056,836$8,587,619

Tangible common equity to tangible assets (non-GAAP) 9.08% 9.08% 9.02%



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

Interest income and dividend income $71,135 $71,769 $75,548

Less: interest expense (2,697) (3,058) (5,619)

Net interest income per consolidated statements of net income 68,437 68,711 69,929

Plus: taxable equivalent adjustment 510 557 725

Net interest income (FTE) (non-GAAP) $68,947 $69,268 $70,654

Net interest income (FTE) (annualized) $273,537 $274,812 $281,080

Average interest- earning assets $8,768,329$8,769,425$8,322,022

Net interest margin (FTE) (non-GAAP) 3.12% 3.14% 3.38%



View original content to download multimedia: https://www.prnewswire.com/news-releases/st-bancorp-inc-announces-fourth-quarter-and-full-year-2021-results-301469334.html

SOURCE S&T Bancorp, Inc.