Document

Indiana, Pa. - January 28, 2021 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York, announced its fourth quarter and full year 2020 earnings. Net income was $24.2 million, or $0.62 per diluted share, for the fourth quarter compared to net income of $16.7 million, or $0.43 per diluted share, for the third quarter of 2020, and $22.3 million, or $0.62 per diluted share, for the fourth quarter of 2019.

Net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million, or $1.19 per diluted share, for the full year 2020.

Fourth Quarter of 2020 Highlights:
Return on average assets (ROA) was 1.05%, return on average equity (ROE) was 8.35% and return on average tangible equity (ROTE) (non-GAAP) was 12.71%.

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

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

Full year net income was $21.0 million, or $0.53 per diluted share, for the year ended December 31, 2020 compared to net income of $98.2 million, or $2.82 per diluted share, for 2019. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million or $1.19 per diluted share. Full year results were impacted by the DNB Financial Corporation (DNB) merger that occurred on November 30, 2019 with 12 months of impact in 2020 compared to only one month in 2019.

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

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

S&T Bancorp, Inc. is a $9.0 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was recently ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. Established in 1902, S&T Bank operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.

This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, “ believe”, “assume”, “strategy”, “trend”, “plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “believe”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets

and interest-bearing liabilities; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, including DNB, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2019, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.


	2020		2020		2019
	Fourth		Third Quarter		Fourth Quarter
(dollars in thousands, except per share data)	Quarter
INTEREST AND DIVIDEND INCOME
Loans, including fees	$71,148		$72,263		$77,426
Investment securities:
Taxable	3,371		3,473		3,744
Tax-exempt	851		885		836
Dividends	178		227		451
Total Interest and Dividend Income	75,548		76,848		82,457

INTEREST EXPENSE
Deposits	4,795		6,626		15,783
Borrowings and junior subordinated debt securities	824		946		2,262
Total Interest Expense	5,619		7,572		18,045

NET INTEREST INCOME	69,929		69,276		64,412
Provision for credit losses	7,130		17,485		2,105
Net Interest Income After Provision for Credit Losses	62,799		51,791		62,307

NONINTEREST INCOME
Loss on sale of securities	—		—		(26)
Debit and credit card fees	3,830		4,171		3,454
Mortgage banking	3,100		3,964		765
Service charges on deposit accounts	2,984		2,820		3,540
Wealth management	2,486		2,522		2,412
Commercial loan swap income	812		499		2,356



Other	2,397		2,507		2,730
Total Noninterest Income	15,609		16,483		15,231

NONINTEREST EXPENSE
Salaries and employee benefits	22,789		24,571		22,851
Net occupancy	4,068		3,441		3,219
Data processing and information technology	3,835		4,218		4,141
Furniture, equipment and software	2,904		2,440		2,337
Marketing	2,113		1,793		1,116
Other taxes	1,806		1,612		(818)
Professional services and legal	1,503		1,911		862
FDIC insurance	1,372		1,900		222
Merger related expenses	—		—		10,179
Other	8,138		6,360		6,069
Total Noninterest Expense	48,528		48,246		50,178

Income Before Taxes	29,880		20,028		27,360
Income Tax Expense	5,703		3,323		5,091

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

Per Share Data:
Shares outstanding at end of period	39,298,007		39,251,638		39,560,304
Average diluted shares outstanding	39,021,008		39,020,811		35,913,237
Diluted earnings per share	$0.62		$0.43		$0.62
Dividends declared per share	$0.28		$0.28		$0.28
Dividend yield (annualized)	4.51	%	6.33	%	2.78	%
Dividends paid to net income	45.40	%	65.61	%	42.94	%
Book value	$29.38		$29.10		$30.13
Tangible book value (1)	$19.71		$19.40		$20.52
Market value	$24.84		$17.69		$40.29

Profitability Ratios (annualized)
Return on average assets	1.05	%	0.72	%	1.11	%

Return on average shareholders' equity	8.35	%	5.80	%	8.30	%
Return on average tangible shareholders' equity (2)	12.71	%	8.96	%	12.04	%
Efficiency ratio (FTE) (3)	56.26	%	55.75	%	49.64	%


	For the Twelve Months Ended December 31,
(dollars in thousands, except per share data)		2020		2019
INTEREST AND DIVIDEND INCOME
Loans, including fees		$300,960		$300,625
Investment securities:
Taxable		14,918		14,733
Tax-exempt		3,497		3,302
Dividends		1,089		1,824
Total Interest and Dividend Income		320,464		320,484

INTEREST EXPENSE
Deposits		35,986		63,026
Borrowings and junior subordinated debt securities		5,090		10,667
Total Interest Expense		41,076		73,693

NET INTEREST INCOME		279,388		246,791
Provision for credit losses		131,424		14,873
Net Interest Income After Provision for Credit Losses		147,964		231,918

NONINTEREST INCOME
Net gain (loss) on sale of securities		142		(26)
Debit and credit card		15,093		13,405
Service charges on deposit accounts		11,704		13,316
Mortgage banking		10,923		2,491
Wealth management		9,957		8,623
Commercial loan swap income		4,740		5,503




Other		7,160		9,246
Total Noninterest Income		59,719		52,558

NONINTEREST EXPENSE
Salaries and employee benefits		90,115		83,986
Data processing and information technology		15,499		14,468
Net occupancy		14,529		12,103
Furniture, equipment and software		11,050		8,958
Other taxes		6,622		3,364
Professional services and legal		6,394		4,244
Marketing		5,996		4,631
FDIC insurance		5,089		758
Merger related expenses		2,342		11,350
Other		29,008		23,254
Total Noninterest Expense		186,644		167,116

Income Before Taxes		21,039		117,360
Income taxes (benefit) expense		(1)		19,126

Net Income		$21,040		$98,234

Per Share Data:
Average diluted shares outstanding		39,073,219		34,679,478
Diluted earnings per share		$0.53		$2.82
Dividends declared per share		$1.12		$1.09
Dividends paid to net income		200.89	%	38.03	%

Profitability Ratios
Return on average assets		0.23	%	1.32	%
Return on average shareholders' equity		1.80	%	9.98	%
Return on average tangible shareholders' equity (6)		2.92	%	14.41	%
Efficiency ratio (FTE) (7)		53.86	%	51.39	%


	2020		2020		2019
	Fourth		Third		Fourth
(dollars in thousands)	Quarter		Quarter		Quarter
ASSETS
Cash and due from banks, including interest-bearing deposits	$229,666		$308,489		$169,304
Federal funds sold	—		—		28,519
Securities, at fair value	773,693		718,169		784,283
Loans held for sale	18,528		16,724		5,256
Commercial loans:
Commercial real estate	3,244,974		3,290,138		3,416,518
Commercial and industrial	1,954,453		2,042,467		1,720,833
Commercial construction	474,280		477,429		375,445
Total Commercial Loans	5,673,707		5,810,034		5,512,796
Consumer loans:
Residential mortgage	918,398		950,887		998,585
Home equity	535,165		537,869		538,348
Installment and other consumer	80,915		80,735		79,033
Consumer construction	17,675		15,343		8,390
Total Consumer Loans	1,552,153		1,584,834		1,624,356
Total Portfolio Loans	7,225,860		7,394,868		7,137,152
Allowance for credit losses	(117,612)		(120,998)		(62,224)
Total Portfolio Loans, Net	7,108,248		7,273,870		7,074,928
Federal Home Loan Bank and other restricted stock, at cost	13,030		15,777		22,977
Goodwill	373,424		373,417		371,621
Other assets	451,308		484,126		307,762
Total Assets	$8,967,897		$9,190,572		$8,764,649

LIABILITIES
Deposits:
Noninterest-bearing demand	$2,261,994		$2,232,706		$1,698,082
Interest-bearing demand	864,510		982,956		962,331
Money market	1,937,063		2,033,585		1,949,811
Savings	969,508		938,475		830,919
Certificates of deposit	1,387,463		1,446,096		1,595,433
Total Deposits	7,420,538		7,633,818		7,036,576

Borrowings:
Securities sold under repurchase agreements	65,163		42,706		19,888
Short-term borrowings	75,000		83,000		281,319
Long-term borrowings	23,681		49,076		50,868
Junior subordinated debt securities	64,083		64,068		64,277
Total Borrowings	227,927		238,850		416,352
Other liabilities	164,721		175,789		119,723
Total Liabilities	7,813,186		8,048,457		7,572,651

SHAREHOLDERS' EQUITY
Total Shareholders' Equity	1,154,711		1,142,115		1,191,998
Total Liabilities and Shareholders' Equity	$8,967,897		$9,190,572		$8,764,649

Capitalization Ratios
Shareholders' equity / assets	12.88	%	12.43	%	13.60	%
Tangible common equity / tangible assets (4)	9.02	%	8.64	%	9.68	%
Tier 1 leverage ratio	9.43	%	9.11	%	10.29	%
Common equity tier 1 capital	11.33	%	11.05	%	11.43	%
Risk-based capital - tier 1	11.74	%	11.46	%	11.84	%
Risk-based capital - total	13.44	%	13.18	%	13.22	%


	2020		2020		2019
	Fourth		Third Quarter		Fourth Quarter
(dollars in thousands)	Quarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks	$242,778	0.11%	$213,051	0.11%	$82,255	1.44%
Securities, at fair value	726,535	2.43%	759,094	2.41%	696,889	2.61%
Loans held for sale	4,206	2.98%	4,432	3.09%	3,582	3.56%
Commercial Loans:
Commercial real estate	3,269,109	3.77%	3,322,656	4.02%	3,056,513	4.77%
Commercial and industrial	2,012,774	3.95%	2,107,750	3.45%	1,666,061	4.77%
Commercial construction	481,136	3.42%	469,214	3.43%	339,274	4.71%
Total Commercial Loans	5,763,019	3.81%	5,899,620	3.77%	5,061,848	4.77%
Consumer Loans:
Residential mortgage	936,735	4.29%	954,861	4.33%	850,566	4.42%
Home equity	537,201	3.66%	536,735	3.73%	499,520	5.03%
Installment and other consumer	80,849	6.43%	79,649	6.47%	76,029	7.13%
Consumer construction	16,154	4.21%	14,475	4.32%	12,021	4.96%
Total Consumer Loans	1,570,939	4.18%	1,585,720	4.24%	1,438,136	4.78%
Total Portfolio Loans	7,333,958	3.89%	7,485,340	3.87%	6,499,984	4.77%
Total Loans	7,338,164	3.89%	7,489,772	3.87%	6,503,566	4.77%
Federal Home Loan Bank and other restricted stock	14,545	3.97%	15,157	5.11%	21,791	7.44%
Total Interest-earning Assets	8,322,022	3.65%	8,477,074	3.65%	7,304,501	4.53%
Noninterest-earning assets	802,037		815,930		619,586
Total Assets	$9,124,059		$9,293,004		$7,924,087

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest-bearing demand	$904,190	0.11%	$967,735	0.18%	$810,909	0.75%
Money market	2,015,248	0.20%	2,074,862	0.33%	1,791,981	1.53%
Savings	956,438	0.07%	923,208	0.07%	783,990	0.26%
Certificates of deposit	1,423,727	0.93%	1,486,016	1.16%	1,417,619	1.91%
Total Interest-bearing Deposits	5,299,603	0.36%	5,451,821	0.48%	4,804,499	1.30%
Borrowings:
Securities sold under repurchase agreements	50,607	0.25%	64,000	0.25%	14,046	0.75%
Short-term borrowings	75,728	0.22%	84,310	0.38%	241,368	2.08%
Long-term borrowings	40,986	2.43%	49,269	2.52%	56,026	2.63%
Junior subordinated debt securities	64,073	3.11%	64,057	3.19%	54,801	4.33%
Total Borrowings	231,394	1.42%	261,636	1.44%	366,241	2.45%
Total Interest-bearing Liabilities	5,530,997	0.40%	5,713,457	0.53%	5,170,740	1.38%
Noninterest-bearing liabilities	2,441,129		2,433,665		1,689,076


Shareholders' Equity	1,151,933		1,145,882		1,064,271
Total Liabilities and Shareholders' Equity	$9,124,059		$9,293,004		$7,924,087

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


	For the Twelve Months Ended December 31,
(dollars in thousands)		2020		2019
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks		$179,887	0.29%	$59,941	2.06%
Securities, at fair value		764,311	2.49%	678,069	2.64%
Loans held for sale		5,105	3.13%	2,169	3.88%
Commercial Loans:
Commercial real estate		3,347,234	4.19%	2,945,278	4.92%
Commercial and industrial		2,018,318	3.85%	1,575,485	5.04%
Commercial construction		442,088	3.78%	278,665	5.11%
Total Commercial Loans		5,807,640	4.04%	4,799,428	4.97%
Consumer Loans:
Residential mortgage		964,740	4.25%	765,604	4.43%
Home equity		539,461	3.98%	475,149	5.31%
Installment and other consumer		80,032	6.56%	72,283	7.16%
Consumer construction		13,484	4.40%	10,896	5.44%
Total Consumer Loans		1,597,717	4.28%	1,323,932	4.90%
Total Portfolio Loans		7,405,357	4.09%	6,123,360	4.95%
Total Loans		7,410,462	4.09%	6,125,529	4.95%
Federal Home Loan Bank and other restricted stock		18,234	5.10%	21,833	7.52%
Total Interest-earning Assets		8,372,894	3.87%	6,885,372	4.71%
Noninterest-earning assets		779,853		550,164
Total Assets		$9,152,747		$7,435,536

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Interest-bearing demand		$961,823	0.28%	$641,403	0.61%
Money market		2,040,116	0.57%	1,691,910	1.79%
Savings		899,717	0.11%	766,142	0.25%
Certificates of deposit		1,517,643	1.36%	1,396,706	1.93%
Total Interest-bearing Deposits		5,419,299	0.66%	4,496,161	1.40%
Borrowings:
Securities sold under repurchase agreements		57,673	0.29%	16,863	0.65%
Short-term borrowings		155,753	0.92%	255,264	2.51%
Long-term borrowings		47,953	2.50%	66,392	2.76%
Junior subordinated debt securities		64,092	3.57%	47,934	4.82%
Total Borrowings		325,471	1.56%	386,453	2.76%
Total Interest-bearing Liabilities		5,744,770	0.72%	4,882,614	1.51%
Noninterest-bearing liabilities		2,238,488		1,569,014


Total Shareholders' Equity		1,169,489		983,908
Total Liabilities and Shareholders' Equity		$9,152,747		$7,435,536

Net Interest Margin (8)			3.38%		3.64%


	2020		2020		2019
	Fourth		Third Quarter		Fourth Quarter
(dollars in thousands)	Quarter
Nonperforming Loans (NPL)
Commercial loans:		% Loans		% Loans		% Loans
Commercial real estate	$105,014	3.24%	$52,805	1.60%	$29,140	0.85%
Commercial and industrial	23,337	1.19%	12,498	0.61%	13,982	0.81%
Commercial construction	384	0.08%	1,504	0.31%	737	0.20%
Total Nonperforming Commercial Loans	128,735	2.27%	66,807	1.15%	43,859	0.80%
Consumer loans:
Residential mortgage	13,008	1.42%	13,018	1.37%	7,519	0.75%
Home equity	4,935	0.92%	4,106	0.76%	2,639	0.49%
Installment and other consumer	96	0.12%	141	0.17%	40	0.05%

Total Nonperforming Consumer Loans	18,039	1.15%	17,265	1.08%	10,198	0.63%
Total Nonperforming Loans	$146,774	2.03%	$84,072	1.13%	$54,057	0.76%



(dollars in thousands)
Loan Charge-offs/(Recoveries)
Charge-offs	$12,951	$13,667	$2,798
Recoveries	(1,713)	(754)	(802)
Net Loan Charge-offs/(Recoveries)	$11,238	$12,913	$1,996

Net Loan Charge-offs (Recoveries)
Commercial Loans:
Commercial real estate	$10,185	$10,963	$829
Commercial and industrial	412	1,267	(121)
Commercial construction	293	(1)	404
Total Commercial Loan Charge-offs/(Recoveries)	10,890	12,229	1,112
Consumer loans:
Residential mortgage	68	274	112
Home equity	132	204	383
Installment and other consumer	148	206	389

Total Consumer Loan Charge-offs	348	684	884
Total Net Loan Charge-offs/(Recoveries)	$11,238	$12,913	$1,996



	For the Twelve Months Ended December 31,
(dollars in thousands)		2020	2019
Loan Charge-offs/(Recoveries)
Charge-offs		$106,365	$16,189
Recoveries		(2,986)	(2,544)
Net Loan Charge-offs/(Recoveries)		$103,379	$13,645

Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud		$58,671	$0
Commercial real estate		27,164	3,527
Commercial and industrial		15,004	7,540
Commercial construction		271	401
Total Commercial Loan Charge-offs/(Recoveries)		101,110	11,468
Consumer loans:
Residential mortgage		435	364
Home equity		433	434
Installment and other consumer		1,401	1,461
Consumer construction		—	(82)
Total Consumer Loan Charge-offs/(Recoveries)		2,269	2,177
Total Net Loan Charge-offs/(Recoveries)		$103,379	$13,645


	2020			2020		2019
	Fourth			Third		Fourth
(dollars in thousands)	Quarter			Quarter		Quarter
Asset Quality Data
Nonperforming loans	$146,774			$84,072		$54,057
OREO	2,155			2,317		3,525
Nonperforming assets	148,929			86,389		57,582
Troubled debt restructurings (nonaccruing)	29,289			18,648		8,912
Troubled debt restructurings (accruing)	17,460			18,478		36,960
Total troubled debt restructurings	46,749			37,126		45,872
Nonperforming loans / total loans	2.03	%		1.13	%	0.76	%
Nonperforming assets / total loans plus OREO	2.06	%		1.17	%	0.81	%

Allowance for credit losses / total portfolio loans	1.63	%		1.64	%	0.87	%
Allowance for credit losses / nonperforming loans	80	%		144	%	115	%
Net loan charge-offs	$11,238			$12,913		$1,996
Net loan charge-offs (annualized) / average loans	0.61	%		0.69	%	0.12	%


			For the Twelve Months Ended December 31,
(dollars in thousands)				2020		2019
Asset Quality Data
Net loan charge-offs				$103,379		$13,645
Net loan charge-offs / average loans				1.40	%	0.22	%


	2020		2020		2019
	Fourth		Third		Fourth
	Quarter		Quarter		Quarter

(1) Tangible Book Value (non-GAAP)
Total shareholders' equity	$1,154,711		$1,142,115		$1,191,998
Less: goodwill and other intangible assets, net of deferred tax liability	(380,278)		(380,735)		(380,247)
Tangible common equity (non-GAAP)	$774,434		$761,380		$811,751
Common shares outstanding	39,298		39,252		39,560
Tangible book value (non-GAAP)	$19.71		$19.40		$20.52

(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)	$96,181		$66,455		$88,350
Plus: amortization of intangibles (annualized), net of tax	1,853		2,069		1,025
Net income before amortization of intangibles (annualized)	$98,034		$68,524		$89,375

Average total shareholders' equity	$1,151,933		$1,145,882		$1,064,271
Less: average goodwill and other intangible assets, net of deferred tax liability	(380,734)		(380,781)		(322,204)
Average tangible equity (non-GAAP)	$771,199		$765,101		$742,067
Return on average tangible shareholders' equity (non-GAAP)	12.71	%	8.96	%	12.04	%

(3) Efficiency Ratio (non-GAAP)
Noninterest expense	$48,528		$48,246		$50,178
Less: merger related expenses	—		—		(10,179)
Noninterest expense excluding nonrecurring items	$48,528		$48,246		$39,999

Net interest income per consolidated statements of net income	$69,929		$69,276		$64,412
Plus: taxable equivalent adjustment	725		780		903
Net interest income (FTE) (non-GAAP)	70,654		70,056		65,315
Noninterest income	15,609		16,483		15,231
Less: net losses on sale of securities	—		—		26
Net interest income (FTE) (non-GAAP) plus noninterest income	$86,263		$86,539		$80,572
Efficiency ratio (non-GAAP)	56.26	%	55.75	%	49.64	%

(4) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity	$1,154,711		$1,142,115		$1,191,998
Less: goodwill and other intangible assets, net of deferred tax liability	(380,278)		(380,735)		(380,247)
Tangible common equity (non-GAAP)	$774,434		$761,380		$811,751

Total assets	$8,967,896		$9,190,572		$8,764,649
Less: goodwill and other intangible assets, net of deferred tax liability	(380,278)		(380,735)		(380,247)
Tangible assets (non-GAAP)	$8,587,618		$8,809,837		$8,384,402
Tangible common equity to tangible assets (non-GAAP)	9.02	%	8.64	%	9.68	%

(5) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income	$75,548		$76,848		$82,457
Less: interest expense	(5,619)		(7,572)		(18,045)
Net interest income per consolidated statements of net income	69,929		69,276		64,412
Plus: taxable equivalent adjustment	725		780		903
Net interest income (FTE) (non-GAAP)	$70,654		$70,056		$65,315
Net interest income (FTE) (annualized)	$281,080		$278,701		$259,130
Average earning assets	$8,322,022		$8,477,074		$7,304,501
Net interest margin (FTE) (non-GAAP)	3.38	%	3.29	%	3.55	%


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

	2020			2020		2019
	Fourth			Third		Fourth
	Quarter			Quarter		Quarter

PTPP / Average Assets (non-GAAP)
Income before taxes	$29,880			$20,028		$27,360
Plus: Provision for credit losses	7,130			17,485		2,238
Total	37,010			37,513		29,598
Total (annualized) (non-GAAP)	$147,235			$149,237		$117,427
Average assets	$9,124,059			$9,293,004		$7,924,087
PTPP / Average Assets (non-GAAP)	1.61	%		1.61	%	1.48	%

			For the Twelve Months Ended December 31,
				2020		2019

(6) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income				$21,040		$98,234
Plus: amortization of intangibles, net of tax				2,001		660
Net income before amortization of intangibles				$23,041		$98,894

Average total shareholders' equity				$1,169,489		$983,908
Less: average goodwill and other intangible assets, net of deferred tax liability				(380,846)		(297,589)
Average tangible equity (non-GAAP)				$788,643		$686,319
Return on average tangible shareholders' equity (non-GAAP)				2.92	%	14.41	%

(7) Efficiency Ratio (non-GAAP)
Noninterest expense				$186,643		$167,116
Less: merger related expenses				(2,342)		(11,350)
Noninterest expense excluding nonrecurring items				$184,301		$155,766

Net interest income per consolidated statements of net income				$279,388		$246,791
Plus: taxable equivalent adjustment				3,202		3,757
Net interest income (FTE) (non-GAAP)				282,590		250,548
Noninterest income				59,719		52,558
Less: net (gains)losses on sale of securities				(142)		26
Net interest income (FTE) (non-GAAP) plus noninterest income				$342,167		$303,132
Efficiency ratio (non-GAAP)				53.86	%	51.39	%

(8) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income				$320,464		$320,484
Less: interest expense				(41,076)		(73,693)
Net interest income per consolidated statements of net income				279,388		246,791
Plus: taxable equivalent adjustment				3,202		3,757
Net interest income (FTE) (non-GAAP)				$282,590		$250,548

Average earning assets				$8,372,894		$6,885,372
Net interest margin (FTE) (non-GAAP)				3.38	%	3.64	%

PTPP / Average Assets (non-GAAP)
Income before taxes				$21,039		$117,360
Plus: Provision for credit losses				131,424		14,873
Total				152,463		132,233
Total (non-GAAP)				$152,463		$132,233
Average assets				$9,152,747		$7,435,536
PTPP / Average Assets (non-GAAP)				1.67	%	1.78	%


	2020
	Twelve Months Ended December 31,


Return on Average Tangible Shareholders' Equity (non-GAAP)
Net Income	$21,040
Provision for credit losses	58,671
Tax effect	(12,321)
Net income excluding fraud	$67,390

Net income excluding fraud	$67,390
Plus: amortization of intangibles , net of tax	2,001
Net income before amortization of intangibles	$69,391

Average total shareholders' equity	$1,169,489
Less: average goodwill and intangible assets, net of deferred tax liability	(380,846)
Average tangible equity (non-GAAP)	$788,643
Return on average tangible shareholders' equity (non-GAAP)	8.80	%

Return on Average Assets (non-GAAP)
Net income excluding fraud	$67,390
Average total assets	9,152,747
Return on average assets (non-GAAP)	0.74	%

Return on Average Equity (non-GAAP)
Net income excluding fraud	$67,390
Average total shareholders' equity	1,169,489
Return on average assets (non-GAAP)	5.76	%


CONTACT: Mark Kochvar Chief Financial Officer 724.465.4826 800 Philadelphia St. Indiana, PA mark.kochvar@stbank.com www.stbancorp.com


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 6


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 7


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 8


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 9


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 10


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 11


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 12


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 13


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 14


S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited			S&T Earnings Release - 15