EX-99.1 2 stba-20210930xex991.htm EX-99.1 Document

CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
mark.kochvar@stbank.com
stbancorp.com
earn_image1a15.jpg
FOR IMMEDIATE RELEASE                


S&T Bancorp, Inc. Announces Third Quarter 2021 Net Income

Indiana, Pa. - October 21, 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 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)
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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.

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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
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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.



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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
5
202120212020
ThirdSecondThird
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$66,914 $66,942 $72,263 
Investment Securities:
Taxable4,176 3,793 3,473 
Tax-exempt595 690 885 
Dividends84 152 227 
Total Interest and Dividend Income71,769 71,577 76,848 
INTEREST EXPENSE
Deposits2,439 2,652 6,626 
Borrowings and junior subordinated debt securities619 621 946 
Total Interest Expense3,058 3,273 7,572 
NET INTEREST INCOME68,711 68,304 69,276 
Provision for credit losses3,388 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 card4,579 4,744 4,171 
Service charges on deposit accounts3,923 3,642 3,303 
Wealth management3,464 3,167 2,522 
Mortgage banking2,162 1,734 3,964 
Commercial loan swap income184 299 499 
Other1,534 1,809 2,024 
Total Noninterest Income15,846 15,424 16,483 
NONINTEREST EXPENSE
Salaries and employee benefits25,228 24,515 24,571 
Data processing and information technology4,001 3,787 4,218 
Occupancy3,660 3,434 3,441 
Furniture, equipment and software2,745 2,402 2,440 
Other taxes1,830 1,832 1,612 
Professional services and legal1,550 1,637 1,911 
Marketing890 996 1,793 
FDIC insurance1,210 924 1,900 
Other6,127 6,302 6,360 
Total Noninterest Expense47,241 45,829 48,246 
Income Before Taxes33,928 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 period39,367,847 39,345,719 39,251,638 
Average shares outstanding - diluted39,062,080 39,048,971 39,020,811 
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 income39.83 %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 assets1.15 %1.21 %0.72 %
Return on average shareholders' equity9.13 %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 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
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Nine Months Ended September 30,
(dollars in thousands, except per share data)20212020
INTEREST AND DIVIDEND INCOME
Loans, including fees$204,088 $229,812 
Investment Securities:
Taxable11,532 11,547 
Tax-exempt2,098 2,646 
Dividends409 911 
Total Interest and Dividend Income218,127 244,916 
INTEREST EXPENSE
Deposits8,572 31,191 
Borrowings and junior subordinated debt securities1,882 4,265 
Total Interest Expense10,453 35,456 
NET INTEREST INCOME207,674 209,460 
Provision for credit losses9,087 124,294 
Net Interest Income After Provision for Credit Losses198,587 85,166 
NONINTEREST INCOME
Net gain on sale of securities29 142 
Debit and credit card13,486 11,264 
Service charges on deposit accounts11,039 10,116 
Wealth management9,576 7,471 
Mortgage banking8,206 7,823 
Commercial loan swap income577 3,928 
Other5,595 3,366 
Total Noninterest Income48,507 44,110 
NONINTEREST EXPENSE
Salaries and employee benefits73,070 67,326 
Data processing and information technology12,012 11,671 
Occupancy10,921 10,643 
Furniture, equipment and software7,787 7,965 
Other taxes5,098 4,816 
Professional services and legal4,718 4,890 
Marketing3,208 3,883 
FDIC insurance3,180 3,718 
Merger related expenses— 2,342 
Other18,656 20,861 
Total Noninterest Expense138,650 138,115 
Income Before Taxes108,444 (8,839)
Income tax expense (benefit)20,578 (5,703)
Net Income (Loss)$87,866 ($3,136)
Per Share Data
Average shares outstanding - diluted39,044,870 39,101,309 
Diluted earnings (loss) per share$2.24 ($0.08)
Dividends declared per share$0.84 $0.84 
Dividends paid to net income37.50 %NM
Profitability Ratios (annualized)
Return on average assets1.26 %(0.05 %)
Return on average shareholders' equity9.96 %(0.36 %)
Return on average tangible shareholders' equity (5)
14.87 %(0.27 %)
Pre-tax pre-provision income / average assets (6)
1.68 %1.68 %
Efficiency ratio (FTE) (7)
53.75 %53.06 %
NM - Not Meaningful
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
7
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks, including interest-bearing deposits$934,377 $985,278 $308,489 
Securities, at fair value870,121 840,375 718,169 
Loans held for sale4,303 7,648 16,724 
Commercial loans:
Commercial real estate3,225,863 3,246,533 3,290,138 
Commercial and industrial1,698,784 1,774,358 2,042,467 
Commercial construction499,317 478,153 477,429 
Total Commercial Loans5,423,964 5,499,044 5,810,034 
Consumer loans:
Residential mortgage887,937 859,329 950,887 
Home equity548,396 547,658 537,869 
Installment and other consumer97,606 88,210 80,735 
Consumer construction12,184 13,110 15,343 
Total Consumer Loans1,546,123 1,508,307 1,584,834 
Total Portfolio Loans6,970,087 7,007,351 7,394,868 
Allowance for credit losses(108,348)(109,636)(120,998)
Total Portfolio Loans, Net6,861,739 6,897,715 7,273,870 
Federal Home Loan Bank and other restricted stock, at cost9,893 10,106 15,777 
Goodwill373,424 373,424 373,417 
Other assets382,197 381,286 484,126 
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 demand971,321 979,300 982,956 
Money market2,045,320 2,047,254 2,033,585 
Savings1,074,896 1,050,256 938,475 
Certificates of deposit1,201,268 1,269,621 1,446,096 
Total Deposits7,945,119 8,015,264 7,633,818 
Borrowings:
Securities sold under repurchase agreements72,586 68,587 42,706 
Short-term borrowings— — 83,000 
Long-term borrowings22,693 22,969 49,076 
Junior subordinated debt securities64,128 64,113 64,068 
Total Borrowings159,407 155,669 238,850 
Other liabilities129,847 136,166 175,789 
Total Liabilities8,234,373 8,307,099 8,048,457 
SHAREHOLDERS' EQUITY
Total Shareholders' Equity1,201,681 1,188,733 1,142,115 
Total Liabilities and Shareholders' Equity$9,436,054 $9,495,832 $9,190,572 
Capitalization Ratios
Shareholders' equity / assets12.73 %12.52 %12.43 %
Tangible common equity / tangible assets (8)
9.08 %8.88 %8.64 %
Tier 1 leverage ratio9.65 %9.52 %9.11 %
Common equity tier 1 capital12.07 %11.98 %11.05 %
Risk-based capital - tier 112.48 %12.40 %11.46 %
Risk-based capital - total14.06 %14.00 %13.18 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
8
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$914,3700.16%$785,4650.09%$213,0510.11%
Securities, at fair value836,0192.19%826,8612.19%759,0942.41%
Loans held for sale3,6563.35%4,3533.01%4,4323.09%
Commercial real estate3,239,8673.68%3,251,8943.69%3,322,6564.02%
Commercial and industrial1,744,6844.17%1,890,5383.90%2,107,7503.45%
Commercial construction490,9403.20%462,9283.34%469,2143.43%
Total Commercial Loans5,475,4913.80%5,605,3593.73%5,899,6203.77%
Residential mortgage875,6844.00%863,2544.17%954,8614.33%
Home equity547,9843.34%535,9333.50%536,7353.73%
Installment and other consumer92,6155.85%84,2596.05%79,6496.47%
Consumer construction13,6263.66%13,2646.39%14,4754.32%
Total Consumer Loans1,529,9093.87%1,496,7104.06%1,585,7204.24%
Total Portfolio Loans7,005,4003.81%7,102,0693.80%7,485,3403.87%
Total Loans7,009,0563.81%7,106,4223.80%7,489,7723.87%
Federal Home Loan Bank and other restricted stock9,9812.62%10,5294.51%15,1575.11%
Total Interest-earning Assets8,769,4253.28%8,729,2773.31%8,477,0743.65%
Noninterest-earning assets724,759704,635815,930
Total Assets$9,494,184$9,433,911$9,293,004
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$962,1390.08%$998,1340.09%$967,7350.18%
Money market2,062,9580.18%2,037,9760.18%2,074,8620.33%
Savings1,059,9040.03%1,044,8990.03%923,2080.07%
Certificates of deposit1,240,3450.41%1,291,1940.45%1,486,0161.16%
Total Interest-bearing Deposits5,325,3460.18%5,372,2030.20%5,451,8210.48%
Securities sold under repurchase agreements71,0540.10%67,8380.10%64,0000.25%
Short-term borrowings——%——%84,3100.38%
Long-term borrowings22,8411.99%23,1132.01%49,2692.52%
Junior subordinated debt securities64,1183.01%64,1033.06%64,0573.19%
Total Borrowings158,0121.56%155,0541.61%261,6361.44%
Total Interest-bearing Liabilities5,483,3580.22%5,527,2560.24%5,713,4570.53%
Noninterest-bearing liabilities2,812,1852,727,6532,433,665
Shareholders' equity1,198,6411,179,0021,145,882
Total Liabilities and Shareholders' Equity$9,494,184$9,433,911$9,293,004
Net Interest Margin (9)
3.14%3.16%3.29%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
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Nine Months Ended September 30,
(dollars in thousands)20212020
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks$669,5930.12%$158,7710.38%
Securities, at fair value815,1972.24%776,9952.50%
Loans held for sale4,7803.02%5,4073.17%
Commercial real estate3,248,4173.71%3,373,4664.33%
Commercial and industrial1,863,4474.13%2,020,1793.82%
Commercial construction479,7333.30%428,9773.91%
Total Commercial Loans5,591,5973.81%5,822,6224.12%
Residential mortgage878,7094.13%974,1444.24%
Home equity538,9313.49%540,2204.09%
Installment and other consumer85,6406.06%79,7576.60%
Consumer construction14,2574.92%12,5874.49%
Total Consumer Loans1,517,5384.02%1,606,7084.31%
Total Portfolio Loans7,109,1353.86%7,429,3304.16%
Total Loans7,113,9153.86%7,434,7374.16%
Federal Home Loan Bank and other restricted stock10,5794.07%19,4735.38%
Total Interest-earning Assets8,609,2843.41%8,389,9763.94%
Noninterest-earning assets728,314772,404
Total Assets$9,337,598$9,162,380
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$952,2970.09%$981,1740.33%
Money market2,023,5830.18%2,048,4660.69%
Savings1,033,5810.04%880,6730.12%
Certificates of deposit1,291,6660.51%1,549,1771.50%
Total Interest-bearing deposits5,301,1260.22%5,459,4900.76%
Securities sold under repurchase agreements67,8720.12%60,0450.30%
Short-term borrowings8,4250.19%182,6231.02%
Long-term borrowings23,1392.00%50,2922.52%
Junior subordinated debt securities64,1033.05%64,0993.72%
Total Borrowings163,5391.54%357,0591.60%
Total Interest-bearing Liabilities5,464,6650.26%5,816,5490.81%
Noninterest-bearing liabilities2,693,5302,170,447
Shareholders' equity1,179,4031,175,384
Total Liabilities and Shareholders' Equity$9,337,598$9,162,380
Net Interest Margin (10)
3.25%3.37%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
10
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Nonperforming Loans (NPL)
Commercial loans:% NPL% NPL% NPL
Commercial real estate$56,400 1.71%$82,050 2.53%$52,805 1.60%
Commercial and industrial38,581 2.27%16,997 0.96%12,498 0.61%
Commercial construction4,053 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 mortgage9,172 1.03%9,917 1.15%13,018 1.37%
Home equity2,917 0.53%3,150 0.58%4,106 0.76%
Installment and other consumer189 0.19%121 0.14%141 0.17%
Total Nonperforming Consumer Loans12,278 0.79%13,188 0.87%17,265 1.08%
Total Nonperforming Loans (1)
$111,312 1.60%$112,619 1.61%$84,072 1.13%
(1) Included in nonperforming commercial loans is $1.7 million of loans held for sale.
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
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 estate3,651 6,595 10,963 
Commercial and industrial(277)795 1,267 
Commercial construction54 (2)(1)
Total Commercial Loan Charge-offs (Recoveries)3,428 7,388 12,229 
Consumer loans:
Residential mortgage2 (57)274 
Home equity37 10 204 
Installment and other consumer123 132 206 
Total Consumer Loan Charge-offs (Recoveries)162 85 684 
Total Net Loan Charge-offs (Recoveries)$3,590 $7,473 $12,913 

- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
11
Nine Months Ended September 30,
(dollars in thousands)20212020
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 estate10,94416,979 
Commercial and industrial5,43114,592 
Commercial construction51(22)
Total Commercial Loan Charge-offs/(Recoveries)16,42690,220 
Consumer loans:
Residential mortgage17367 
Home equity279301 
Installment and other consumer1531,254 
Total Consumer Loan Charge-offs (Recoveries)4491,922 
Total Net Loan Charge-offs (Recoveries)$16,875$92,142 
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonperforming loans$111,312 112,619 $84,072 
OREO13,370 1,145 2,317 
Total Nonperforming assets124,682 113,764 86,389 
Troubled debt restructurings (nonaccruing)14,033 20,650 18,648 
Troubled debt restructurings (accruing)13,782 14,321 18,478 
Total troubled debt restructurings27,815 34,971 37,126 
Nonperforming loans / total loans1.60 %1.61 %1.13 %
Nonperforming assets / total loans plus OREO1.78 %1.62 %1.17 %
Allowance for credit losses / total portfolio loans1.55 %1.56 %1.64 %
Allowance for credit losses / total portfolio loans excluding PPP1.60 %1.64 %1.77 %
Allowance for credit losses / nonperforming loans97 %97.00 %144 %
Net loan charge-offs (recoveries)$3,590 $7,473 $12,913 
Net loan charge-offs (recoveries)(annualized) / average loans0.21 %0.43 %0.69 %

Nine Months Ended September 30,
(dollars in thousands)20212020
Asset Quality Data
Net loan charge-offs (recoveries)$16,875 $92,142 
Net loan charge-offs (recoveries)(annualized) / average loans0.32 %1.66 %
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
12
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:

202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
(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 liability
(379,218)(379,563)(380,735)
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 tax liability
(379,443)(379,784)(380,781)
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 losses3,388 2,561 17,485 
Total37,317 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 %


- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
13
Nine Months Ended September 30,
(dollars in thousands)20212020
(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 liability
(379,788)(380,884)
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 losses9,087 124,294 
Total117,531 115,455 
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 income207,674 209,460 
 Plus: taxable equivalent adjustment1,806 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 %



- more -

S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
14
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202120212020
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
(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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