EX-99.1 2 stba-20220630xex991.htm EX-99.1 Document

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

S&T Bancorp, Inc. Announces Second Quarter 2022 Net Income

Indiana, Pa. - July 21, 2022 - 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 $28.9 million, or $0.74 per diluted share, for the second quarter of 2022 compared to net income of $29.1 million, or $0.74 per diluted share, for the first quarter of 2022 and net income of $28.4 million, or $0.72 per diluted share, for the second quarter of 2021.

Second Quarter of 2022 Highlights:

•Return on average assets (ROA) of 1.25%, return on average equity (ROE) of 9.83% and return on average tangible equity (ROTE) (non-GAAP) of 14.63%.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) of 1.71%.
•Net interest income increased $7.5 million, or 11%, and NIM (FTE) (Non-GAAP) increased 40 basis points compared to the first quarter of 2022.
•Strong consumer loan growth of $111.7 million, or 27.5% annualized, compared to March 31, 2022.
•Nonperforming assets decreased $20.7 million, or 34.8%, compared to March 31, 2022.
•S&T’s Board of Directors approved a $0.30 per share dividend compared to $0.28 per share in the same period last year.

"Our performance was strong this quarter with significant growth in net interest income and net interest margin. We also saw significant improvement in our nonperforming assets with a decline of nearly 35% from the first quarter and a 66% decline from a year ago," said Chris McComish, chief executive officer. "We are extremely proud to be recently named by Forbes as a Best-In-State Bank especially on the heels of our recognition by J.D. Power as the highest in overall customer satisfaction with retail banking in the Pennsylvania region. Both awards are an honor and a true reflection of our dedicated employees and the trust our customers have placed in us to help meet their financial needs."

Net Interest Income

Net interest income increased $7.5 million, or 11%, to $75.2 million for the second quarter of 2022 compared to $67.7 million for the first quarter of 2022. The increase in net interest income was primarily due to higher interest rates in the second quarter. The yield on total average loans increased 34 basis points compared to the first quarter of 2022 while the cost of total interest-bearing deposits remained unchanged at 0.14%. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased 40 basis points to 3.56% compared to 3.16% in the prior quarter.
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S&T Earnings Release -2

Asset Quality

Total nonperforming assets decreased $20.7 million, or 34.8%, to $38.8 million at June 30, 2022. The decrease primarily related to the resolution of a $9.9 million commercial and industrial, or C&I, relationship and additional loan pay-offs. Significant progress has been made in reducing nonperforming assets over the past year with a reduction of $74.9 million, or 65.9%, since June 30, 2021. Nonperforming assets to total loans plus other real estate owned, or OREO, decreased 30 basis points to 0.55% at June 30, 2022 compared to 0.85% at
March 31, 2022 and 1.62% at June 30, 2021. Net loan charge-offs were $3.0 million for the second quarter of 2022 compared to net loan recoveries of $2.0 million in the first quarter of 2022. Gross loan charge-offs of $7.7 million were offset by recoveries of $4.7 million during the second quarter of 2022. The C&I relationship previously mentioned resulted in a $5.5 million charge-off which was offset by a $3.9 million C&I recovery from a relationship that was charged off in 2019. The provision for credit losses was $3.2 million for the second quarter of 2022 compared to negative $0.5 million in the first quarter of 2022. The negative provision in the first quarter of 2022 was mainly due to the net recovery of $2.0 million. The allowance for credit losses was 1.39% of total portfolio loans as of June 30, 2022 compared to 1.43% at March 31, 2022.

Noninterest Income and Expense

Noninterest income decreased $2.6 million to $12.6 million in the second quarter of 2022 compared to $15.2 million in the first quarter of 2022. Other income decreased $1.9 million primarily related to the decline in the fair value of the assets in a nonqualified benefit plan and a $0.5 million gain on sale of OREO in the first quarter of 2022. Mortgage banking income decreased $0.5 million due to a shift in the volume of loans sold to loans held in the portfolio. Noninterest expense increased $1.0 million to $48.4 million for the second quarter of 2022 compared to $47.4 million in the first quarter of 2022 mainly due to an increase of $1.1 million in salaries and employee benefits related to higher incentives and medical expense offset by a decline in the fair value of the liability in a nonqualified benefit plan. Professional services and legal increased $0.4 million related to various consulting engagements during the second quarter of 2022.

Financial Condition

Total assets were $9.1 billion at June 30, 2022 compared to $9.4 billion at March 31, 2022. The decrease in total assets related to a $479.1 million decline in cash balances which was mainly due to a decrease in total deposits and an increase in loans. Total portfolio loans excluding, Paycheck Protection Program, or PPP, increased by $107.2 million, or 6.2% annualized, compared to March 31, 2022. The consumer loan portfolio grew $111.7 million, or 27.5% annualized, with strong growth in both residential mortgages and home equity compared to
March 31, 2022. Noninterest-bearing demand deposits were stable at $2.7 billion compared to March 31, 2022. Interest-bearing deposits declined $344.7 million compared to March 31, 2022. The decline in interest-bearing deposits was concentrated in higher balance, rate sensitive customer accounts.

During the second quarter of 2022, 151,220 common shares were repurchased at a total cost of $4.2 million, or an average of $27.46 per share. S&T continues to maintain a strong regulatory 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 $0.30 per share cash dividend on July 18, 2022. This dividend compares to a $0.28 per share dividend declared in the same period in the prior year. The dividend is payable August 18, 2022 to shareholders of record on August 4, 2022.





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Conference Call

S&T will host its second quarter 2022 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 21, 2022. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd Quarter 2022 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 July 28, 2022, by dialing 1.877.481.4010; the Conference ID is 45770.

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

S&T Bancorp, Inc. is a $9.1 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. S&T Bank was recently named by Forbes as a 2022 Best-in-State Bank. S&T Bank also received the highest ranking in customer satisfaction for retail banking in the Pennsylvania region by J.D. Power*. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.

*S&T Bank received the highest score in Pennsylvania in the J.D. Power 2022 U.S. Retail Banking Satisfaction Study of customers’ satisfaction with their primary bank. Visit jdpower.com/awards for more details.

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,
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S&T Earnings Release -4

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, 2021, 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
202220222021
SecondFirstSecond
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$71,018 $64,593 $66,942 
Investment Securities:
Taxable5,995 4,936 3,793 
Tax-exempt484 482 690 
Dividends102 98 152 
Total Interest and Dividend Income77,599 70,109 71,577 
INTEREST EXPENSE
Deposits1,790 1,853 2,652 
Borrowings and junior subordinated debt securities615 523 621 
Total Interest Expense2,405 2,376 3,273 
NET INTEREST INCOME75,194 67,733 68,304 
Provision for credit losses3,204 (512)2,561 
Net Interest Income After Provision for Credit Losses71,990 68,245 65,743 
NONINTEREST INCOME
Net gain on sale of securities— — 29 
Debit and credit card4,756 5,063 4,744 
Service charges on deposit accounts4,181 3,974 3,642 
Wealth management3,247 3,242 3,167 
Mortgage banking466 1,015 1,734 
Other(20)1,932 2,108 
Total Noninterest Income12,630 15,226 15,424 
NONINTEREST EXPENSE
Salaries and employee benefits24,811 23,712 24,515 
Data processing and information technology4,104 4,435 3,787 
Occupancy3,634 3,882 3,434 
Furniture, equipment and software2,939 2,777 2,402 
Professional services and legal2,380 1,949 1,637 
Other taxes1,682 1,537 1,832 
Marketing1,524 1,361 996 
FDIC insurance882 937 924 
Other 6,468 6,824 6,302 
Total Noninterest Expense48,424 47,414 45,829 
Income Before Taxes36,196 36,057 35,338 
Income tax expense7,338 6,914 6,971 
Net Income$28,858 $29,143 $28,367 
Per Share Data
Shares outstanding at end of period39,148,999 39,351,688 39,345,719 
Average shares outstanding - diluted39,099,631 39,089,933 39,048,971 
Diluted earnings per share$0.74 $0.74 $0.72 
Dividends declared per share$0.30 $0.29 $0.28 
Dividend yield (annualized)4.37 %3.92 %3.58 %
Dividends paid to net income40.86 %39.06 %38.74 %
Book value$30.10 $30.11 $30.21 
Tangible book value (1)
$20.44 $20.49 $20.57 
Market value$27.43 $29.58 $31.30 
Profitability Ratios (Annualized)
Return on average assets1.25 %1.25 %1.21 %
Return on average shareholders' equity9.83 %9.88 %9.65 %
Return on average tangible shareholders' equity(2)
14.63 %14.61 %14.41 %
Pre-provision net revenue/ average assets(3)
1.71 %1.52 %1.61 %
Efficiency ratio (FTE)(4)
54.82 %56.82 %54.37 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
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Six Months Ended June 30,
(dollars in thousands, except per share data)20222021
INTEREST AND DIVIDEND INCOME
Loans, including fees$135,611 $137,174 
Investment Securities:
Taxable10,931 7,356 
Tax-exempt966 1,503 
Dividends200 325 
Total Interest and Dividend Income147,708 146,358 
INTEREST EXPENSE
Deposits3,643 6,133 
Borrowings and junior subordinated debt securities1,138 1,263 
Total Interest Expense4,781 7,396 
NET INTEREST INCOME142,927 138,962 
Provision for credit losses2,692 5,699 
Net Interest Income After Provision for Credit Losses140,235 133,263 
NONINTEREST INCOME
Net gain on sale of securities— 29 
Debit and credit card9,819 8,906 
Service charges on deposit accounts8,155 7,116 
Wealth management6,489 6,111 
Mortgage banking1,481 6,044 
Other1,912 4,541 
Total Noninterest Income27,856 32,747 
NONINTEREST EXPENSE
Salaries and employee benefits48,523 47,842 
Data processing and information technology8,539 8,012 
Occupancy7,516 7,261 
Furniture, equipment and software5,716 5,042 
Professional services and legal4,329 3,168 
Other taxes3,219 3,268 
Marketing2,885 2,318 
FDIC insurance1,819 1,970 
Other13,292 12,614 
Total Noninterest Expense95,838 91,495 
Income Before Taxes72,253 74,515 
Income tax expense14,252 14,247 
Net Income$58,001 $60,268 
Per Share Data
Average shares outstanding - diluted39,095,716 39,039,007 
Diluted earnings per share$1.48 $1.54 
Dividends declared per share$0.59 $0.56 
Dividends paid to net income39.96 %36.44 %
Profitability Ratios (annualized)
Return on average assets1.25 %1.31 %
Return on average shareholders' equity9.85 %10.39 %
Return on average tangible shareholders' equity(5)
14.62 %15.57 %
Pre-provision net revenue / average assets(6)
1.62 %1.75 %
Efficiency ratio (FTE)(7)
55.79 %52.89 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
7
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks, including interest-bearing deposits$344,694 $823,757 $985,278 
Securities, at fair value1,068,576 1,028,218 840,375 
Loans held for sale1,311 1,346 7,648 
Commercial loans:
Commercial real estate3,191,669 3,257,955 3,246,533 
Commercial and industrial1,695,031 1,675,316 1,774,358 
Commercial construction410,425 398,592 478,153 
Total Commercial Loans5,297,125 5,331,863 5,499,044 
Consumer loans:
Residential mortgage975,109 912,531 859,329 
Home equity611,893 581,821 547,658 
Installment and other consumer119,938 112,297 88,210 
Consumer construction36,829 25,399 13,110 
Total Consumer Loans1,743,769 1,632,048 1,508,307 
Total Portfolio Loans7,040,894 6,963,911 7,007,351 
Allowance for credit losses(98,095)(99,915)(109,636)
Total Portfolio Loans, Net6,942,799 6,863,996 6,897,715 
Federal Home Loan Bank and other restricted stock, at cost7,949 9,349 10,106 
Goodwill373,424 373,424 373,424 
Other assets365,061 332,191 381,286 
Total Assets$9,103,814 $9,432,281 $9,495,832 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,736,849 $2,740,315 $2,668,833 
Interest-bearing demand880,432 1,070,656 979,300 
Money market1,888,506 1,992,916 2,047,254 
Savings1,125,344 1,117,985 1,050,256 
Certificates of deposit981,116 1,038,586 1,269,621 
Total Deposits7,612,247 7,960,458 8,015,264 
Borrowings:
Securities sold under repurchase agreements39,259 70,112 68,587 
Long-term borrowings21,988 22,171 22,969 
Junior subordinated debt securities54,423 54,408 64,113 
Total Borrowings115,670 146,691 155,669 
Other liabilities197,539 140,182 136,166 
Total Liabilities7,925,456 8,247,331 8,307,099 
SHAREHOLDERS' EQUITY
Total Shareholders' Equity1,178,358 1,184,950 1,188,733 
Total Liabilities and Shareholders' Equity$9,103,814 $9,432,281 $9,495,832 
Capitalization Ratios
Shareholders' equity / assets12.94 %12.56 %12.52 %
Tangible common equity / tangible assets(9)
9.17 %8.91 %8.88 %
Tier 1 leverage ratio10.25 %9.85 %9.52 %
Common equity tier 1 capital12.34 %12.26 %11.98 %
Risk-based capital - tier 112.74 %12.67 %12.40 %
Risk-based capital - total14.23 %14.18 %14.00 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
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S&T Earnings Release -
8
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$528,4130.78%$756,1410.16%$785,4650.09%
Securities, at fair value1,024,1062.19%1,002,2122.10%826,8612.19%
Loans held for sale1,4063.95%1,5453.51%4,3533.01%
Commercial real estate3,197,4064.14%3,257,2383.65%3,251,8943.69%
Commercial and industrial1,685,7284.31%1,712,8653.98%1,890,5383.90%
Commercial construction404,8563.78%409,2643.30%462,9283.34%
Total Commercial Loans5,287,9904.16%5,379,3673.73%5,605,3593.73%
Residential mortgage939,7563.98%896,2684.02%863,2544.17%
Home equity594,5293.56%570,7813.43%535,9333.50%
Installment and other consumer119,0415.36%109,9725.44%84,2596.05%
Consumer construction31,2043.36%21,8333.37%13,2646.39%
Total Consumer Loans1,684,5303.92%1,598,8543.90%1,496,7104.06%
Total Portfolio Loans6,972,5204.11%6,978,2213.77%7,102,0693.80%
Total Loans6,973,9264.11%6,979,7653.77%7,106,4223.80%
Federal Home Loan Bank and other restricted stock8,9393.69%9,2803.40%10,5294.51%
Total Interest-earning Assets8,535,3843.67%8,747,3983.27%8,729,2773.31%
Noninterest-earning assets690,207709,246704,635
Total Assets$9,225,591$9,456,644$9,433,911
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$979,5140.07%$986,6390.08%$998,1340.09%
Money market1,930,8520.15%2,055,8570.15%2,037,9760.18%
Savings1,118,3460.05%1,109,0480.03%1,044,8990.03%
Certificates of deposit1,001,7750.31%1,070,1890.32%1,291,1940.45%
Total Interest-bearing Deposits5,030,4870.14%5,221,7330.14%5,372,2030.20%
Securities sold under repurchase agreements50,0370.10%81,7900.10%67,8380.10%
Long-term borrowings22,0722.01%22,3101.95%23,1132.01%
Junior subordinated debt securities54,4133.62%54,3982.95%64,1033.06%
Total Borrowings126,5221.95%158,4981.34%155,0541.61%
Total Interest-bearing Liabilities5,157,0090.19%5,380,2310.18%5,527,2560.24%
Noninterest-bearing liabilities2,891,0322,879,7182,727,653
Shareholders' equity1,177,5501,196,6941,179,002
Total Liabilities and Shareholders' Equity$9,225,591$9,456,644$9,433,911
Net Interest Margin(10)
3.56%3.16%3.16%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
9
Six Months Ended June 30,
(dollars in thousands)20222021
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks$641,6480.42%$545,1770.09%
Securities, at fair value1,013,2192.14%804,6132.26%
Loans held for sale1,4753.72%5,3512.90%
Commercial real estate3,227,1563.89%3,252,7633.72%
Commercial and industrial1,699,2224.15%1,923,8134.10%
Commercial construction407,0483.54%474,0373.36%
Total Commercial Loans5,333,4263.95%5,650,6133.82%
Residential mortgage918,1324.00%880,2464.20%
Home equity582,7213.50%534,3293.58%
Installment and other consumer114,5315.40%82,0956.19%
Consumer construction26,5443.36%14,5785.52%
Total Consumer Loans1,641,9283.91%1,511,2494.10%
Total Portfolio Loans6,975,3543.94%7,161,8623.88%
Total Loans6,976,8293.94%7,167,2133.88%
Federal Home Loan Bank and other restricted stock9,1083.54%10,8844.73%
Total Interest-earning Assets8,640,8043.47%8,527,8873.49%
Noninterest-earning assets699,097730,117
Total Assets$9,339,901$9,258,003
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$983,0570.07%$947,2950.10%
Money market1,993,0090.15%2,003,5690.18%
Savings1,113,7230.04%1,020,2010.04%
Certificates of deposit1,035,7930.32%1,317,7510.55%
Total Interest-bearing deposits5,125,5820.14%5,288,8160.23%
Securities sold under repurchase agreements65,8260.10%66,2540.13%
Short-term borrowings——%12,7070.19%
Long-term borrowings22,1901.98%23,2912.01%
Junior subordinated debt securities54,4063.29%64,0953.07%
Total Borrowings142,4221.61%166,3481.53%
Total Interest-bearing Liabilities5,268,0040.18%5,455,1640.27%
Noninterest-bearing liabilities2,884,8282,633,219
Shareholders' equity1,187,0691,169,620
Total Liabilities and Shareholders' Equity$9,339,901$9,258,003
Net Interest Margin(8)
3.35%3.31%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
10
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Nonperforming Loans (NPL)
Commercial loans:% NPL% NPL% NPL
Commercial real estate$15,783 0.49%$26,699 0.82%$82,050 2.53%
Commercial and industrial4,454 0.26%14,673 0.90%16,997 0.96%
Commercial construction864 0.21%864 0.22%384 0.08%
Total Nonperforming Commercial Loans21,101 0.40%42,236 0.79%99,431 1.81%
Consumer loans:
Residential mortgage8,137 0.83%7,450 0.82%9,917 1.15%
Home equity2,281 0.37%2,713 0.47%3,150 0.58%
Installment and other consumer256 0.21%125 0.11%121 0.14%
Total Nonperforming Consumer Loans10,674 0.61%10,287 0.63%13,188 0.87%
Total Nonperforming Loans$31,775 0.45%$52,524 0.75%$112,619 1.61%
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Loan Charge-offs (Recoveries)
Charge-offs$7,678 $982 $8,737 
Recoveries(4,666)(3,019)(1,264)
Net Loan Charge-offs (Recoveries)$3,012 ($2,037)$7,473 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Commercial real estate($125)$178 $6,595 
Commercial and industrial2,712 (2,507)795 
Commercial construction— (1)(2)
Total Commercial Loan Charge-offs (Recoveries)2,587 (2,330)7,388 
Consumer loans:
Residential mortgage13 81 (57)
Home equity6 (20)10 
Installment and other consumer406 232 132 
Total Consumer Loan Charge-offs425 293 85 
Total Net Loan Charge-offs (Recoveries)$3,012 ($2,037)$7,473 

Six Months Ended June 30,
(dollars in thousands)20222021
Loan Charge-offs (Recoveries)
Charge-offs$8,661 $15,270 
Recoveries(7,685)(1,985)
Net Loan Charge-offs$976$13,285
Net Loan Charge-offs
Commercial loans:
Commercial real estate527,293
Commercial and industrial2055,708
Commercial construction(1)(3)
Total Commercial Loan Charge-offs25612,998
Consumer loans:
Residential mortgage9415
Home equity(14)242
Installment and other consumer64030
Total Consumer Loan Charge-offs720287
Total Net Loan Charge-offs$976$13,285
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
11
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonperforming loans$31,775 $52,524 $112,619 
OREO7,046 7,028 1,145 
Total nonperforming assets38,821 59,552 113,764 
Troubled debt restructurings (nonaccruing)4,010 15,389 20,650 
Troubled debt restructurings (accruing)9,338 10,739 14,321 
Total troubled debt restructurings13,348 26,128 34,971 
Nonperforming loans / total loans0.45 %0.75 %1.61 %
Nonperforming assets / total loans plus OREO0.55 %0.85 %1.62 %
Allowance for credit losses / total portfolio loans1.39 %1.43 %1.56 %
Allowance for credit losses / total portfolio loans excluding PPP1.40 %1.44 %1.64 %
Allowance for credit losses / nonperforming loans309 %190 %97 %
Net loan charge-offs (recoveries)$3,012 ($2,037)$7,473 
Net loan charge-offs (recoveries) (annualized) / average loans0.17 %(0.12 %)0.43 %

Six Months Ended June 30,
(dollars in thousands)20222021
Asset Quality Data
Net loan charge-offs$976 $13,285 
Net loan charge-offs (annualized) / average loans0.03 %0.37 %
- 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:

202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
4Q211Q21
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity$1,178,358 $1,184,950 $1,188,733 
Less: goodwill and other intangible assets, net of deferred tax liability(378,259)(378,557)(379,563)
Tangible common equity (non-GAAP)$800,099 $806,393 $809,170 
Common shares outstanding39,149 39,352 39,346 
Tangible book value (non-GAAP)$20.44 $20.49 $20.57 
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)$115,750 $118,192 $113,778 
Plus: amortization of intangibles (annualized), net of tax1,197 1,276 1,395 
Net income before amortization of intangibles (annualized)$116,947 $119,468 $115,173 
Average total shareholders' equity$1,177,550 $1,196,694 $1,179,002 
Less: average goodwill and other intangible assets, net of deferred tax liability(378,453)(378,761)(379,784)
Average tangible equity (non-GAAP)$799,097 $817,932 $799,218 
Return on average tangible shareholders' equity (non-GAAP)14.63 %14.61 %14.41 %
(3) PPNR / Average Assets (non-GAAP)
Income before taxes$36,196 $36,057 $35,338 
Plus: Provision for credit losses3,204 (512)2,561 
Total$39,400 $35,545 $37,899 
Total (annualized) (non-GAAP)$158,034 $144,155 $152,012 
Average assets$9,225,591 $9,456,644 $9,433,911 
PPNR / Average Assets (non-GAAP)1.71 %1.52 %1.61 %
(4) Efficiency Ratio (non-GAAP)
Noninterest expense$48,424 $47,414 $45,829 
Net interest income per consolidated statements of net income75,194 67,733 68,304 
Plus: taxable equivalent adjustment506 493 585 
Net interest income (FTE) (non-GAAP)$75,700 $68,226 $68,889 
Noninterest income12,630 15,226 15,424 
Less: net gains on sale of securities— — (29)
Net interest income (FTE) (non-GAAP) plus noninterest income$88,330 $83,452 $84,284 
Efficiency ratio (non-GAAP)54.82 %56.82 %54.37 %


- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release -
13
Six Months Ended June 30,
(dollars in thousands)20222021
(5) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)$116,964 $121,535 
Plus: amortization of intangibles (annualized), net of tax1,236 1,429 
Net income before amortization of intangibles (annualized)$118,200 $122,964 
Average total shareholders' equity$1,187,069 $1,169,620 
Less: average goodwill and other intangible assets, net of deferred tax liability(378,606)(379,963)
Average tangible equity (non-GAAP)$808,463 $789,657 
Return on average tangible shareholders' equity (non-GAAP)14.62 %15.57 %
(6) PPNR / Average Assets (non-GAAP)
Income before taxes$72,253 $74,515 
Plus: Provision for credit losses2,692 5,699 
Total$74,945 $80,214 
Total (annualized) (non-GAAP)$151,132 $161,758 
Average assets$9,339,901 $9,258,003 
PPNR / Average Assets (non-GAAP)1.62 %1.75 %
(7) Efficiency Ratio (non-GAAP)
Noninterest expense$95,838 $91,495 
Net interest income per consolidated statements of net income142,927 138,962 
Plus: taxable equivalent adjustment999 1,249 
Net interest income (FTE) (non-GAAP)$143,926 $140,211 
Noninterest income27,856 32,747 
Less: net gains on sale of securities— (29)
Net interest income (FTE) (non-GAAP) plus noninterest income$171,782 $172,929 
Efficiency ratio (non-GAAP)55.79 %52.91 %
(8) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income$147,708 $146,358 
Less: interest expense(4,781)(7,396)
Net interest income per consolidated statements of net income$142,927 $138,962 
Plus: taxable equivalent adjustment999 1,249 
Net interest income (FTE) (non-GAAP)$143,926 $140,211 
Net interest income (FTE) (annualized)$290,236 $282,746 
Average interest-earning assets$8,640,804 $8,527,887 
Net interest margin - (FTE) (non-GAAP)3.35 %3.31 %



- 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:
202220222021
SecondFirstSecond
(dollars in thousands)QuarterQuarterQuarter
(9) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity$1,178,358 $1,184,950 $1,188,733 
Less: goodwill and other intangible assets, net of deferred tax liability(378,259)(378,557)(379,563)
Tangible common equity (non-GAAP)$800,099 $806,393 $809,170 
Total assets$9,103,814 $9,432,281 $9,495,832 
Less: goodwill and other intangible assets, net of deferred tax liability(378,259)(378,557)(379,563)
Tangible assets (non-GAAP)$8,725,556 $9,053,724 $9,116,268 
Tangible common equity to tangible assets (non-GAAP)9.17 %8.91 %8.88 %
(10) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income$77,599 $70,109 $71,577 
Less: interest expense(2,405)(2,376)(3,273)
Net interest income per consolidated statements of net income$75,194 $67,733 $68,304 
Plus: taxable equivalent adjustment506 493 585 
Net interest income (FTE) (non-GAAP)$75,700 $68,226 $68,889 
Net interest income (FTE) (annualized)$303,633 $276,694 $276,313 
Average interest- earning assets$8,535,384 $8,747,398 $8,729,277 
Net interest margin (FTE) (non-GAAP)3.56 %3.16 %3.16 %


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