Fourth Quarter 2021 Earnings Supplement
Forward Looking Statements and Risk Factors 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. Non-GAAP Financial Measures In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors’ understanding of S&T’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained within this presentation should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the respective Quarterly Reports in Exhibit 99.1 of Form 8-K for S&T Bancorp, Inc. and subsidiaries. 2
3 Fourth Quarter Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.57 Net Income $22.5 million ROA 0.94% ROE 7.39% ROTE* 10.95% PTPP* 1.44% HIGHLIGHTS • Net interest income, excluding PPP, increased $0.8 million • Broad-based loan growth, excluding PPP, of $122.6 million, or 7.2% annualized • Deposits increased $51.4 million with an improved deposit mix
4 Full Year Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $2.81 Net Income $110.3 million ROA 1.18% ROE 9.30% ROTE* 13.85% PTPP* 1.62% HIGHLIGHTS • Loans, excluding PPP, increased $150.8 million, or 2.2% • Deposits increased $576.0 million with an improved deposit mix • Strong core customer fee growth of $7.2 million, or 18.7%
4Q21 VS 3Q21: Balance Sheet • Loans, excluding PPP, increased $123 million; 7% annualized growth rate for second consecutive quarter • Loan growth in all categories except construction • Deposit mix improved; DDA increased $96.3 million and CDs decreased $113.2 million Dollars in millions 5 4Q21 3Q21 Variance $922 $934 ($12) $911 $870 $41 $6,912 $6,789 $123 $5 $19 ($14) $83 $162 ($79) $7,997 $7,945 $52 4Q21 vs 3Q21: 4Q21 Variance Annualized Growth C&I Ex-PPP $1,641 $123 32% Resi/Home Eq 1,464 28 8% CRE 3,237 11 1% Consumer 108 10 42% Construction 462 (49) (38)% Total $6,912 $123 7% Cash & Int Bear Bal Investments Loans Ex-PPP PPP1 PPP2 Deposits ($100) ($50) $0 $50 $100 $150
• Core net interest income increased $0.8 million • NIM is relatively unchanged • We are well-positioned to benefit from rising rates Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 6 Loan Rate Sensitivity Mix 52% 22% 26% Floating Adjustable Fixed
4Q21 4Q21 vs 3Q21 4Q21 vs 4Q20 Debit and Credit Card $4.5 $(0.1) $0.6 Service Charges 4.0 0.1 0.5 Wealth 3.3 (0.2) 0.8 Mortgage 1.5 (0.6) (1.6) Other 2.8 1.1 0.1 Noninterest Income $16.1 $0.3 $0.5 • Positive trends in core customer fees • Favorably impacted by valuations • Moderating mortgage banking income Noninterest Income 7Dollars in millions Core Customer Fees: Debit and Credit Card; Service Charges; Wealth Mortgage; Other
4Q21 4Q21 vs 3Q21 4Q21 vs 4Q20 Salaries & Benefits $27.1 $1.9 $4.4 Data Processing 4.7 0.7 0.8 Occupancy 3.6 0.0 (0.4) FF&E 2.9 0.2 0.0 Professional Services 1.7 0.1 0.1 Other Taxes 1.5 (0.3) (0.3) Marketing 1.3 0.5 (0.8) FDIC 1.0 (0.2) (0.3) Other 6.3 0.1 (1.9) Noninterest Expense $50.2 $3.0 $1.7 Expenses elevated due to higher incentives, data processing, and marketing Noninterest Expense Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 8 $48.5 $45.6 $45.8 $47.2 $50.2 Noninterest Expense Efficiency Ratio* 4Q20 1Q21 2Q21 3Q21 4Q21 56% 51% 54% 56% 59%
Asset Quality ACL 4Q21 VS 3Q21: Dollars in millions 9 ASSET QUALITY TRENDS • Nonperforming loans declined 40.4% or $45 million • Continued improvement in the hotel portfolio including $22.1 million return to accrual status
Capital We have strong capital levels and are well-positioned for growth Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 10 TOTAL CAPITAL
4Q21 2021 Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $89,176 $110,343 Plus: amortization of intangibles (annualized), net of tax (366) 1,400 Net income before amortization of intangibles (annualized) $90,552 $111,743 Average total shareholders' equity $1,206,216 $1,186,161 Less: average goodwill and other intangible assets, net of deferred tax liability (379,090) (379,612) Average tangible equity (non-GAAP) $827,126 $806,549 Return on average tangible shareholders' equity (non-GAAP) 10.95 % 13.85% PTPP / Average Assets (non-GAAP) Income before taxes $27,225 $135,668 Plus: Provision for credit losses 7,128 16,215 Total 34,353 151,884 Total (annualized) (non-GAAP) $136,292 $151,884 Average assets $9,490,357 $9,375,850 PTPP / Average Assets (non-GAAP) 1.44 % 1.62 % Tangible Common Equity / Tangible Assets (non-GAAP) Total shareholders' equity $1,206,453 Less: goodwill and other intangible assets, net of deferred tax liability (378,871) Tangible common equity (non-GAAP) $827,582 Total assets $9,488,529 Less: goodwill and other intangible assets, net of deferred tax liability (378,871) Tangible assets (non-GAAP) $9,109,658 Tangible common equity to tangible assets (non-GAAP) 9.08% Appendix Definitions of GAAP to Non-GAAP Financial Measures 11
4Q21 3Q21 2Q21 1Q21 4Q20 Efficiency Ratio (non-GAAP) Noninterest expense $50,189 $47,241 $45,829 $45,580 $48,528 Net interest income per consolidated statements of net income $68,438 $68,712 $68,304 $70,659 $69,929 Plus: taxable equivalent adjustment 510 557 585 664 725 Net interest income (FTE) (non-GAAP) 68,948 69,269 68,889 71,323 70,654 Noninterest income 16,104 15,846 15,424 17,236 15,609 Less: net (gains) losses on sale of securities — — (29) — — Net interest income (FTE) (non-GAAP) plus noninterest income $85,052 $85,115 $84,284 $88,560 $86,263 Efficiency ratio (non-GAAP) 59.01 % 55.50 % 54.37 % 51.47 % 56.26 % Net Interest Margin Rate (FTE) (non-GAAP) Interest income and dividend income $71,135 $71,769 $71,577 $74,781 $75,548 Less: interest expense (2,697) (3,058) (3,273) (4,123) (5,619) Net interest income per consolidated statements of net income 68,437 68,711 68,304 70,658 69,929 Plus: taxable equivalent adjustment 510 557 585 664 725 Net interest income (FTE) (non-GAAP) $68,947 $69,268 $68,889 $71,322 $70,654 Net interest income (FTE) (annualized) $273,537 $274,812 $276,313 $289,251 $281,080 Average interest-earning assets $8,768,329 $8,769,425 $8,729,277 $8,324,259 $8,322,022 Net interest margin (FTE) (non-GAAP) 3.12 % 3.14 % 3.16 % 3.47 % 3.38 % Appendix Definitions of GAAP to Non-GAAP Financial Measures 12
Fourth Quarter 2021 Earnings Supplement