EX-99.1 2 stba-ex991earningspressrel.htm EX-99.1 Document

INVESTOR CONTACT:
Mark Kochvar
S&T Bancorp, Inc.
Chief Financial Officer
724.465.4826
mark.kochvar@stbank.com
earn_image1a15.jpg
FOR IMMEDIATE RELEASE
S&T Bancorp Inc. Announces Third Quarter 2024 Results
INDIANA, Pa., - October 17, 2024 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024 compared to net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 and net income of $33.5 million, or $0.87 per diluted share, for the third quarter of 2023.
Third Quarter of 2024 Highlights:
•Solid return metrics with return on average assets (ROA) of 1.35%, return on average equity (ROE) of 9.58% and return on average tangible equity (ROTE) (non-GAAP) of 13.35% compared to ROA of 1.45%, ROE of 10.61% and ROTE (non-GAAP) of 15.01% for the second quarter of 2024.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.69% compared to 1.82% for the second quarter of 2024.
•Net interest margin (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the second quarter of 2024.
•Customer deposit growth of $100.5 million, or 5.42% annualized, was offset by lower brokered deposits of $126.0 million, resulting in a net decrease in total deposits of $25.5 million for the third quarter of 2024.
•The allowance for credit losses to total portfolio loans was 1.36% compared to 1.38% at June 30, 2024.
"We are pleased to report strong third quarter results, highlighted by solid return metrics, continued improvement in asset quality and our fifth consecutive quarter of customer deposit growth. Our capital levels continue to build, positioning us to take advantage of market opportunities," said chief executive officer Chris McComish. "These results would not be possible without the commitment and hard work of our teams and their focus on our people-forward purpose, which is moving our customers, employees and communities forward while delivering value to our shareholders."
Net Interest Income
Net interest income increased $0.9 million to $84.5 million for the third quarter of 2024 compared to $83.6 million for the second quarter of 2024. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the prior quarter. The yield on total average loans increased one basis point to 6.30% compared to 6.29% in the second quarter of 2024. Total interest-bearing deposit costs increased 12 basis points to 3.04% compared to 2.92% in the second quarter of 2024. Higher interest-bearing deposit costs were primarily due to growth in higher costing average money market accounts of $112.8 million and certificates of deposit of $51.5 million compared to the second quarter of 2024. Average borrowings decreased $58.1 million to $292.3 million compared to
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S&T Earnings Release - 2

$350.4 million in the second quarter of 2024 primarily due to higher average deposit balances. Total borrowing costs decreased 9 basis points to 5.37% compared to 5.46% in the second quarter of 2024.
Asset Quality
The allowance for credit losses, or ACL, was $104.3 million, or 1.36% of total portfolio loans, at September 30, 2024, compared to $106.2 million, or 1.38%, at June 30, 2024. The provision for credit losses improved by $0.9 million with a negative $0.5 million provision for credit losses for the third quarter of 2024 compared to a $0.4 million provision for credit losses in the second quarter of 2024. The decrease in the provision for credit losses for the third quarter was mainly attributed to a lower level of ACL primarily related to a decrease in qualitative reserve due to improvement in asset quality. Net loan charge-offs were $2.1 million for the third quarter of 2024 compared to net loan recoveries of $0.4 million in the second quarter of 2024. Nonperforming assets to total portfolio loans plus other real estate owned decreased 4 basis points to 0.41% at September 30, 2024 compared to 0.45% at June 30, 2024.
Noninterest Income and Expense
Noninterest income decreased $1.4 million to $11.9 million in the third quarter of 2024 compared to $13.3 million in the prior quarter. The decrease in noninterest income was primarily due to changes in the value of Visa Class B-1 common stock and losses related to the repositioning of securities into longer duration, higher-yielding securities. During the third quarter of 2024, a $2.2 million securities repositioning loss was recognized, which was partially offset by a $0.2 million unrealized gain related to Visa Class B-1 common stock resulting in a $2.0 million net loss in noninterest income. This compares to a $3.2 million securities repositioning loss, which was offset by a $3.2 million unrealized gain from the Visa exchange offer for Class B-1 common stock resulting in no net impact to noninterest income during the second quarter of 2024.
Total noninterest expense increased $1.8 million to $55.4 million compared to $53.6 million in the second quarter of 2024. Salaries and employee benefits increased $0.9 million primarily related to higher incentive costs compared to the second quarter of 2024. Data processing and information technology increased $0.8 million compared to the second quarter of 2024 due to the timing of investments in technology.
Financial Condition
Total assets were $9.6 billion at both September 30, 2024 and June 30, 2024. Total portfolio loans were $7.7 billion at both September 30, 2024 and June 30, 2024. Total portfolio loans decreased $24.5 million with a $76.4 million decrease in commercial loans partially offset by consumer loan growth of $51.9 million compared to June 30, 2024. Commercial loan growth continues to be impacted by a lower level of loan originations and higher pay-offs. Total deposits were $7.7 billion at both September 30, 2024 and June 30, 2024. Customer deposit growth continues to be strong allowing for a reduction in higher costing borrowings and brokered deposits. Customer deposit growth was $100.5 million, or 5.42% annualized, which was offset by lower brokered deposits of $126.0 million, resulting in a decrease in total deposits of $25.5 million for the third quarter of 2024. Total borrowings decreased $25.0 million to $338.4 million compared to $363.4 million at June 30, 2024.
S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
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Conference Call
S&T will host its third quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, October 17, 2024. To access the webcast, go to S&T Bancorp Inc.’s investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.6 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 Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.
Forward-Looking Statements
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, or ACL; 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, 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; any remaining uncertainties with 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; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; 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
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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; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force, and racial and social justice issues; 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 and geopolitical tensions and conflicts between nations.
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, 2023, 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 traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 5
202420242023
ThirdSecondThird
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$120,907 $119,564 $114,258 
Investment Securities:
Taxable10,221 8,761 7,857 
Tax-exempt165 168 213 
Dividends181 272 631 
Total Interest and Dividend Income131,474 128,765 122,959 
INTEREST EXPENSE
Deposits42,493 39,629 24,910 
Borrowings, junior subordinated debt securities and other4,504 5,542 10,662 
Total Interest Expense46,997 45,171 35,572 
NET INTEREST INCOME84,477 83,594 87,387 
Provision for credit losses(454)422 5,498 
Net Interest Income After Provision for Credit Losses84,931 83,172 81,889 
NONINTEREST INCOME
Loss on sale of securities
(2,199)(3,150)— 
Debit and credit card4,688 4,713 4,690 
Service charges on deposit accounts4,181 4,089 4,060 
Wealth management3,071 2,995 3,003 
Mortgage banking355 254 294 
Other1,781 4,404 131 
Total Noninterest Income11,877 13,305 12,178 
NONINTEREST EXPENSE
Salaries and employee benefits31,274 30,388 27,521 
Data processing and information technology5,003 4,215 4,479 
Occupancy3,828 3,649 3,671 
Furniture, equipment and software3,410 3,382 3,125 
Other taxes1,874 1,433 1,831 
Marketing1,382 1,404 1,741 
Professional services and legal1,229 1,403 1,965 
FDIC insurance1,054 1,053 1,029 
Other noninterest expense6,311 6,681 7,437 
Total Noninterest Expense55,365 53,608 52,799 
Income Before Taxes41,443 42,869 41,268 
Income tax expense8,853 8,498 7,800 
Net Income$32,590 $34,371 $33,468 
Per Share Data
Shares outstanding at end of period38,259,730 38,256,204 38,244,309 
Average shares outstanding - diluted38,560,409 38,531,692 38,336,016 
Diluted earnings per share$0.85 $0.89 $0.87 
Dividends declared per share$0.33 $0.33 $0.32 
Dividend yield (annualized)3.15 %3.95 %4.73 %
Dividends paid to net income38.77 %36.97 %36.55 %
Book value$35.96 $34.54 $31.99 
Tangible book value (1)
$26.13 $24.71 $22.14 
Market value$41.97 $33.39 $27.08 
Profitability Ratios (Annualized)
Return on average assets1.35 %1.45 %1.42 %
Return on average shareholders' equity9.58 %10.61 %10.84 %
Return on average tangible shareholders' equity(2)
13.35 %15.01 %15.78 %
Pre-provision net revenue / average assets(3)
1.69 %1.82 %1.99 %
Efficiency ratio (FTE)(4)
55.88 %54.94 %52.67 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 6
Nine Months Ended September 30,
(dollars in thousands, except per share data)20242023
INTEREST AND DIVIDEND INCOME
Loans, including fees$359,048 $325,681 
Investment Securities:
Taxable27,577 23,120 
Tax-exempt526 642 
Dividends842 1,752 
Total Interest and Dividend Income387,993 351,195 
INTEREST EXPENSE
Deposits118,784 59,915 
Borrowings, junior subordinated debt securities and other17,661 26,979 
Total Interest Expense136,445 86,894 
NET INTEREST INCOME251,548 264,301 
Provision for credit losses2,595 16,949 
Net Interest Income After Provision for Credit Losses248,953 247,352 
NONINTEREST INCOME
Loss on sale of securities
(5,346)— 
Debit and credit card13,636 13,708 
Service charges on deposit accounts12,098 12,064 
Wealth management9,108 9,136 
Mortgage banking886 884 
Other7,630 3,767 
Total Noninterest Income38,012 39,559 
NONINTEREST EXPENSE
Salaries and employee benefits91,174 80,513 
Data processing and information technology14,172 12,914 
Occupancy11,347 11,216 
Furniture, equipment and software10,264 9,178 
Professional services and legal5,178 4,943 
Other taxes4,729 5,053 
Marketing4,352 5,855 
FDIC insurance3,156 3,073 
Other noninterest expense19,121 21,386 
Total Noninterest Expense163,493 154,131 
Income Before Taxes123,472 132,780 
Income tax expense25,272 25,046 
Net Income$98,200 $107,734 
Per Share Data
Average shares outstanding - diluted38,563,721 38,668,964 
Diluted earnings per share$2.55 $2.78 
Dividends declared per share$0.99 $0.96 
Dividends paid to net income38.66 %34.43 %
Profitability Ratios (annualized)
Return on average assets1.37 %1.56 %
Return on average shareholders' equity9.97 %11.80 %
Return on average tangible shareholders' equity(5)
14.06 %17.20 %
Pre-provision net revenue / average assets(6)
1.76 %2.17 %
Efficiency ratio (FTE)(7)
55.68 %50.41 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 7
202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks$228,090 $246,310 $238,453 
Securities available for sale, at fair value1,011,312 977,958 955,262 
Loans held for sale307 188 257 
Commercial loans:
Commercial real estate3,327,895 3,347,699 3,286,272 
Commercial and industrial1,548,172 1,611,183 1,635,354 
Commercial construction386,509 380,128 388,470 
Total Commercial Loans5,262,576 5,339,010 5,310,096 
Consumer loans:
Residential mortgage1,612,629 1,562,026 1,384,133 
Home equity645,966 642,225 649,122 
Installment and other consumer105,235 102,660 115,379 
Consumer construction62,648 67,649 57,188 
Total Consumer Loans2,426,478 2,374,560 2,205,822 
Total Portfolio Loans7,689,054 7,713,570 7,515,918 
Allowance for credit losses(104,321)(106,150)(108,206)
Total Portfolio Loans, Net7,584,733 7,607,420 7,407,712 
Federal Home Loan Bank and other restricted stock, at cost11,484 12,056 38,576 
Goodwill373,424 373,424 373,424 
Other assets374,597 418,106 452,393 
Total Assets$9,583,947 $9,635,462 $9,466,077 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,157,537 $2,206,589 $2,276,009 
Interest-bearing demand773,224 789,317 868,624 
Money market2,074,095 2,008,486 1,615,445 
Savings879,653 906,794 974,940 
Certificates of deposit1,770,332 1,769,150 1,487,879 
Total Deposits7,654,841 7,680,336 7,222,897 
Borrowings:
Short-term borrowings225,000 275,000 630,000 
Long-term borrowings64,015 39,034 39,396 
Junior subordinated debt securities49,403 49,388 49,343 
Total Borrowings338,418 363,422 718,739 
Other liabilities214,934 270,261 300,909 
Total Liabilities8,208,193 8,314,019 8,242,545 
SHAREHOLDERS’ EQUITY
Total Shareholders’ Equity1,375,754 1,321,443 1,223,532 
Total Liabilities and Shareholders’ Equity$9,583,947 $9,635,462 $9,466,077 
Capitalization Ratios
Shareholders' equity / assets14.35 %13.71 %12.93 %
Tangible common equity / tangible assets(8)
10.86 %10.21 %9.31 %
Tier 1 leverage ratio11.70 %11.51 %11.12 %
Common equity tier 1 capital14.37 %13.89 %13.11 %
Risk-based capital - tier 114.70 %14.21 %13.43 %
Risk-based capital - total16.28 %15.79 %15.01 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 8

202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$200,3015.44%$143,5215.47%$144,3034.93%
Securities, at fair value990,3753.12%961,5522.93%964,9282.64%
Loans held for sale206.77%277.37%2076.70%
Commercial real estate3,298,6195.96%3,346,7255.97%3,243,0565.83%
Commercial and industrial1,566,1457.39%1,606,1737.38%1,646,5727.22%
Commercial construction406,3217.82%374,8567.82%373,1117.80%
Total Commercial Loans5,271,0856.53%5,327,7546.52%5,262,7396.41%
Residential mortgage1,589,7915.11%1,528,2005.00%1,332,9134.66%
Home equity642,3847.01%644,5457.01%645,9496.80%
Installment and other consumer103,3908.65%105,3138.63%115,1118.52%
Consumer construction62,9986.42%72,8995.97%52,7834.89%
Total Consumer Loans2,398,5635.81%2,350,9575.75%2,146,7565.52%
Total Portfolio Loans7,669,6486.30%7,678,7116.29%7,409,4956.15%
Total Loans7,669,6686.30%7,678,7386.29%7,409,7026.15%
Total other earning assets15,4136.21%20,0877.04%42,6456.97%
Total Interest-earning Assets8,875,7575.93%8,803,8985.91%8,561,5785.74%
Noninterest-earning assets744,609756,552763,243
Total Assets$9,620,366$9,560,450$9,324,821
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$785,8541.11%$822,6711.13%$868,7820.91%
Money market2,051,7543.40%1,938,9633.25%1,595,9642.34%
Savings891,9520.75%915,7680.70%996,9990.47%
Certificates of deposit1,825,5304.60%1,774,0374.55%1,382,5323.54%
Total Interest-bearing Deposits5,555,0903.04%5,451,4392.92%4,844,2772.04%
Short-term borrowings202,5004.88%261,9235.09%585,1965.65%
Long-term borrowings40,3834.47%39,0994.53%39,4584.47%
Junior subordinated debt securities49,3948.11%49,3798.18%50,6498.16%
Total Borrowings292,2775.37%350,4015.46%675,3035.77%
Total Other Interest-bearing Liabilities41,038 5.36%57,7345.42%62,584 5.33%
Total Interest-bearing Liabilities5,888,4053.17%5,859,5743.10%5,582,1642.53%
Noninterest-bearing liabilities2,377,9142,397,6062,517,752
Shareholders' equity1,354,0471,303,2701,224,905
Total Liabilities and Shareholders' Equity$9,620,366$9,560,450$9,324,821
Net Interest Margin(9)
3.82%3.85%4.09%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 9
Nine Months Ended September 30,
(dollars in thousands)20242023
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks$162,9575.54%$139,2484.91%
Securities, at fair value972,9412.96%982,8312.56%
Loans held for sale747.14%1426.63%
Commercial real estate3,336,6895.95%3,184,2705.64%
Commercial and industrial1,599,5287.37%1,680,6407.03%
Commercial construction382,1777.78%382,0207.55%
Total Commercial Loans5,318,3946.51%5,246,9306.23%
Residential mortgage1,532,4105.02%1,236,3104.54%
Home equity645,0557.01%647,7856.56%
Installment and other consumer106,5238.64%118,8468.20%
Consumer construction68,5045.98%47,2034.63%
Total Consumer Loans2,352,4925.75%2,050,1445.39%
Total Portfolio Loans7,670,8866.28%7,297,0745.99%
Total Loans7,670,9606.28%7,297,2165.99%
Total other earning assets20,2606.87%38,1526.98%
Total Interest-earning Assets8,827,1185.90%8,457,4475.58%
Noninterest-earning assets746,295752,326
Total Assets$9,573,413$9,209,773
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$812,4431.12%$847,2220.61%
Money market1,970,5393.27%1,621,7262.11%
Savings915,6430.69%1,041,3460.38%
Certificates of deposit1,746,4984.51%1,224,7042.99%
Total Interest-bearing deposits5,445,1232.91%4,734,9981.69%
Short-term borrowings290,6025.17%522,4485.36%
Long-term borrowings39,5714.51%29,1334.05%
Junior subordinated debt securities49,3798.17%53,1807.75%
Total Borrowings379,5525.49%604,7615.50%
Total Other Interest-bearing Liabilities50,3035.40%55,6375.01%
Total Interest-bearing Liabilities5,874,9783.10%5,395,3962.15%
Noninterest-bearing liabilities2,382,3522,593,683
Shareholders' equity1,316,0831,220,694
Total Liabilities and Shareholders' Equity$9,573,413$9,209,773
Net Interest Margin(10)
3.84%4.21%
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 10
202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Nonaccrual Loans
Commercial loans:% Loans% Loans% Loans
Commercial real estate$14,877 0.45%$15,090 0.45%$1,735 0.05%
Commercial and industrial5,789 0.37%7,075 0.44%3,468 0.21%
Commercial construction3,416 0.88%4,960 1.30%384 0.10%
Total Nonaccrual Commercial Loans24,082 0.46%27,125 0.51%5,587 0.11%
Consumer loans:
Residential mortgage4,478 0.28%4,698 0.30%4,139 0.30%
Home equity3,065 0.47%2,804 0.44%2,617 0.40%
Installment and other consumer264 0.25%230 0.22%334 0.29%
Total Nonaccrual Consumer Loans7,807 0.32%7,732 0.33%7,090 0.32%
Total Nonaccrual Loans$31,889 0.41%$34,857 0.45%$12,677 0.17%
202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Loan Charge-offs (Recoveries)
Charge-offs$2,440 $845 $4,077 
Recoveries(302)(1,233)(367)
Net Loan Charge-offs (Recoveries)
$2,138 ($388)$3,710 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Commercial real estate$47 ($379)($13)
Commercial and industrial1,256 (658)3,389 
Commercial construction— — — 
Total Commercial Loan Charge-offs (Recoveries)
1,303 (1,037)3,376 
Consumer loans:
Residential mortgage(5)33 (11)
Home equity580 274 71 
Installment and other consumer260 342 274 
Total Consumer Loan Charge-offs835 649 334 
Total Net Loan Charge-offs (Recoveries)
$2,138 ($388)$3,710 
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 11
Nine Months Ended September 30,
(dollars in thousands)20242023
Loan Charge-offs (Recoveries)
Charge-offs$10,224 $20,758 
Recoveries(1,885)(11,196)
Net Loan Charge-offs$8,339$9,562
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$—($9,329)
Commercial real estate4,906(1,068)
Commercial and industrial1,54718,633
Commercial construction— (2)
Total Commercial Loan Charge-offs6,4538,234
Consumer loans:
Residential mortgage35(3)
Home equity95990
Installment and other consumer8921,241
Total Consumer Loan Charge-offs1,8861,328
Total Net Loan Charge-offs$8,339$9,562
202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonaccrual loans$31,889 $34,857 $12,677 
OREO— 95 3,715 
Total nonperforming assets31,889 34,952 16,392 
Nonaccrual loans / total loans0.41 %0.45 %0.17 %
Nonperforming assets / total loans plus OREO0.41 %0.45 %0.22 %
Allowance for credit losses / total portfolio loans1.36 %1.38 %1.44 %
Allowance for credit losses / nonaccrual loans327 %305 %854 %
Net loan charge-offs (recoveries)
$2,138 ($388)$3,710 
Net loan charge-offs (recoveries) (annualized) / average loans
0.11 %(0.02 %)0.20 %
Nine Months Ended September 30,
(dollars in thousands)20242023
Asset Quality Data
Net loan charge-offs$8,339 $9,562 
Net loan charge-offs (annualized) / average loans
0.15 %0.18 %
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S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 12
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202420242023
ThirdSecondThird
(dollars and shares in thousands)QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
Total shareholders' equity$1,375,754 $1,321,443 $1,223,532 
Less: goodwill and other intangible assets, net of deferred tax liability(375,931)(376,154)(376,883)
Tangible common equity (non-GAAP)$999,823 $945,289 $846,649 
Common shares outstanding38,260 38,256 38,244 
Tangible book value (non-GAAP)$26.13 $24.71 $22.14 
Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts.
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)$129,652 $138,239 $132,779 
Plus: amortization of intangibles (annualized), net of tax893 921 1,034 
Net income before amortization of intangibles (annualized)$130,545 $139,160 $133,813 
Average total shareholders' equity$1,354,047 $1,303,270 $1,224,905 
Less: average goodwill and other intangible assets, net of deferred tax liability(376,048)(376,285)(377,020)
Average tangible equity (non-GAAP)$977,999 $926,985 $847,885 
Return on average tangible shareholders' equity (non-GAAP)13.35 %15.01 %15.78 %
Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.
(3) Pre-provision Net Revenue / Average Assets (non-GAAP)
Income before taxes$41,443 $42,869 $41,268 
Plus: Provision for credit losses(454)422 5,498 
Total$40,989 $43,291 $46,766 
Total (annualized) (non-GAAP)$163,065 $174,115 $185,538 
Average assets$9,620,366 $9,560,450 $9,324,821 
Pre-provision Net Revenue / Average Assets (non-GAAP)1.69 %1.82 %1.99 %
Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.
(4) Efficiency Ratio (non-GAAP)
Noninterest expense$55,365 $53,608 $52,799 
Net interest income per consolidated statements of net income$84,477 $83,594 $87,387 
Plus: taxable equivalent adjustment671 682 674 
Net interest income (FTE) (non-GAAP)85,148 84,276 88,061 
Noninterest income11,877 13,305 12,178 
Less: net losses (gains) on sale of securities
2,199 3,150 — 
Less: Visa Class B-1 exchange(150)(3,156)— 
Net interest income (FTE) (non-GAAP) plus noninterest income$99,074 $97,575 $100,239 
Efficiency ratio (non-GAAP)55.88 %54.94 %52.67 %
 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.
- more -
S&T Bancorp, Inc.
Consolidated Selected Financial Data
Unaudited
S&T Earnings Release - 13
Nine Months Ended September 30,
(dollars in thousands)20242023
(5) Return on Average Tangible Shareholders' Equity (non-GAAP)
Net income (annualized)$131,172 $144,040 
Plus: amortization of intangibles (annualized), net of tax919 1,055 
Net income before amortization of intangibles (annualized)$132,091 $145,095 
Average total shareholders' equity$1,316,083 $1,220,694 
Less: average goodwill and other intangible assets, net of deferred tax liability(376,283)(377,290)
Average tangible equity (non-GAAP)$939,800 $843,404 
Return on average tangible shareholders' equity (non-GAAP)14.06 %17.20 %
Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.
(6) Pre-provision Net Revenue / Average Assets (non-GAAP)
Income before taxes$123,472 $132,780 
Plus: Provision for credit losses2,595 16,949 
Total$126,067 $149,729 
Total (annualized) (non-GAAP)$168,396 $200,186 
Average assets$9,573,413 $9,209,773 
Pre-provision Net Revenue / Average Assets (non-GAAP)1.76 %2.17 %
Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.
(7) Efficiency Ratio (non-GAAP)
Noninterest expense$163,493 $154,131 
Net interest income per consolidated statements of net income$251,548 $264,301 
Plus: taxable equivalent adjustment2,045 1,868 
Net interest income (FTE) (non-GAAP)253,593 266,169 
Noninterest income38,012 39,559 
Less: net losses (gains) on sale of securities
5,346 — 
Less: Visa Class B-1 exchange(3,306)— 
Net interest income (FTE) (non-GAAP) plus noninterest income$293,645 $305,728 
Efficiency ratio (non-GAAP)55.68 %50.41 %
The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.
(10) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income$387,993 $351,195 
Less: interest expense(136,445)(86,894)
Net interest income per consolidated statements of net income251,548 264,301 
Plus: taxable equivalent adjustment2,045 1,868 
Net interest income (FTE) (non-GAAP)$253,593 $266,169 
Net interest income (FTE) (annualized)$338,741 $355,867 
Average interest-earning assets$8,827,118 $8,457,447 
Net interest margin - (FTE) (non-GAAP)3.84 %4.21 %
The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.



- 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:
202420242023
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
(8) Tangible Common Equity / Tangible Assets (non-GAAP)
Total shareholders' equity$1,375,754 $1,321,443 $1,223,532 
Less: goodwill and other intangible assets, net of deferred tax liability(375,931)(376,154)(376,883)
Tangible common equity (non-GAAP)$999,823 $945,289 $846,649 
Total assets$9,583,947 $9,635,462 $9,466,077 
Less: goodwill and other intangible assets, net of deferred tax liability(375,931)(376,154)(376,883)
Tangible assets (non-GAAP)$9,208,016 $9,259,308 $9,089,194 
Tangible common equity to tangible assets (non-GAAP)10.86 %10.21 %9.31 %
Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.
(9) Net Interest Margin Rate (FTE) (non-GAAP)
Interest income and dividend income$131,474 $128,765 $122,959 
Less: interest expense(46,997)(45,171)(35,572)
Net interest income per consolidated statements of net income84,477 83,594 87,387 
Plus: taxable equivalent adjustment671 682 674 
Net interest income (FTE) (non-GAAP)$85,148 $84,276 $88,061 
Net interest income (FTE) (annualized)$338,741 $338,956 $349,373 
Average interest-earning assets$8,875,757 $8,803,898 $8,561,578 
Net interest margin (FTE) (non-GAAP)3.82 %3.85 %4.09 %
The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.
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