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

·11 min read

INDIANA, Pa., July 22, 2021 /PRNewswire/ -- 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 $28.4 million, or $0.72 per diluted share, for the second quarter of 2021 compared to net income of $31.9 million, or $0.81 per diluted share, for the first quarter of 2021, and a net loss of ($33.1) million, or ($0.85) per diluted share, for the second quarter of 2020. A loss of $58.7 million was recognized during the second quarter of 2020 related to a customer fraud resulting from a check kiting scheme. This fraud loss reduced net income by $46.3 million, or $1.19 per diluted share, resulting in a net loss for the second quarter of 2020.

S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)
S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)

New Chief Executive Officer

Christopher J. McComish has been appointed as the company's chief executive officer, effective August 23, 2021. Chris McComish has over 30 years of financial service experience, providing executive leadership to consumer banking, commercial banking, and wealth management businesses. He has a strong track record of driving growth and transformation while enhancing both digital and human customer engagement. Most recently, Chris served as senior executive vice president of TCF Bank, leading all consumer banking lines of business as well as business banking and wealth management. Prior to TCF, he served as president and CEO of Scottrade Bank, the banking subsidiary of Scottrade Financial Services, Inc. In addition, he served as the head of personal banking and then as chief operating officer for personal and commercial banking at BMO Harris Bank. He began his career at Wachovia Bank, where he spent over 20 years in various regional and line of business leadership roles.

"I am honored to have the opportunity to partner with Chris to lead this great organization," said David Antolik, president and interim chief executive officer. "Chris's experience in executive leadership roles in banking combined with my 30 plus years of experience at S&T puts us in a position of strength to move our company forward."

Second Quarter of 2021 Highlights:

  • Christopher McComish has been appointed as the chief executive officer, effective August 23, 2021.

  • Return on average assets (ROA) of 1.21%, return on average equity (ROE) of 9.65%, return on average tangible equity (ROTE) (non-GAAP) of 14.41% and pre-tax pre-provision income to average assets (PTPP) (non-GAAP) of 1.61%.

  • Net interest margin (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% for the first quarter of 2021 primarily due to higher cash balances and a lower Paycheck Protection Program (PPP) contribution.

  • Ex-PPP portfolio loans decreased $12.7 million and total portfolio loans decreased $175.8 million compared to March 31, 2021.

  • Deposits increased $139.2 million to $8.0 billion at June 30, 2021 compared to March 31, 2021.

  • The allowance for credit losses to total portfolio loans was 1.56% at June 30, 2021 compared to 1.60% at March 31, 2021.

  • S&T's Board of Directors declared a $0.28 per share dividend which was consistent with the $0.28 per share dividend declared in the same period in the prior year.

"We continue to see positive signs of a recovery across all of our markets," said David Antolik. "Customer activity has increased substantially and our loan pipeline exceeds pre-pandemic levels making us optimistic about our growth prospects for the second half of 2021."

Net Interest Income

Net interest income decreased $2.4 million to $68.3 million for the second quarter of 2021 compared to $70.7 million for the first quarter of 2021. The decrease in net interest income was primarily due to a lower contribution from PPP and lower average loan balances ex-PPP. The PPP contribution decreased $1.7 million to $4.1 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Average portfolio loans ex-PPP decreased $123.1 million compared to the first quarter of 2021. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) decreased 31 basis points to 3.16% compared to 3.47% in the prior quarter. The decline in NIM (FTE) (non-GAAP) was due to a higher average cash balance (18 basis points), a lower PPP contribution (8 basis points) and lower loan yields (7 basis points). Partially offsetting these declines were lower costing liabilities which increased NIM (FTE) (Non-GAAP) by 5 basis points.

Asset Quality

The provision for credit losses decreased $0.5 million to $2.6 million for the second quarter of 2021 compared to $3.1 million in the first quarter of 2021. Net loan charge-offs were $7.5 million for the second quarter of 2021 compared to $5.8 million in the first quarter of 2021. Total nonperforming loans decreased $22.6 million to $112.6 million, or 1.61% of total loans, at June 30, 2021 compared to $135.2 million, or 1.88% of total loans at March 31, 2021. The allowance for credit losses was 1.56% of total portfolio loans as of June 30, 2021 compared to 1.60% at March 31, 2021. The allowance for credit losses was 1.64% of total portfolio ex-PPP loans at June 30, 2021 compared to 1.72% at March 31, 2021.

Noninterest Income and Expense

Noninterest income decreased $1.8 million to $15.4 million in the second quarter of 2021 compared to $17.2 million in the first quarter of 2021. Mortgage banking income decreased $2.6 million due to a lower volume of loans sold and a decrease in the mortgage servicing rights valuation. Debit and credit card fees were strong with a $0.6 million increase compared to the prior quarter.

Noninterest expense increased $0.2 million to $45.8 million for the second quarter of 2021 compared to $45.6 million in the first quarter of 2021. Salaries and employee benefits increased $1.2 million due to annual merit increases and higher incentives.

Financial Condition

Total assets increased $166.9 million to $9.5 billion at June 30, 2021 compared to $9.3 billion at March 31, 2021. Cash increased $313.8 million to $985.3 million at June 30, 2021 compared to March 31, 2021 due to PPP forgiveness and an increase in deposits as a result of stimulus programs. Total portfolio loans decreased $175.8 million compared to March 31, 2021. PPP originations were $31.1 million and PPP forgiveness was $194.2 million during the second quarter of 2021. Loan activity continues to be impacted by the pandemic. Deposits increased $139.2 million with a favorable mix of higher deposits across all categories except 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

The Board of Directors of S&T declared a $0.28 per share cash dividend on July 19, 2021. This is unchanged from the same period in the prior year. The dividend is payable August 19, 2021 to shareholders of record on August 5, 2021.

Conference Call

S&T will host its second quarter 2021 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 22, 2021. To access the webcast, go to S&T's webpage at www.stbancorp.com and click on "Events & Presentations." Select "2nd 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 July 29, 2021, by dialing 1.877.481.4010; the Conference ID is 41690.

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

S&T Bancorp, Inc. is a $9.5 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 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.

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021


2021


2020



Second


First


Second


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME







Loans, including fees

$66,942



$70,232



$75,498



Investment Securities:







Taxable

3,793



3,563



3,791



Tax-exempt

690



813



959



Dividends

152



173



231



Total Interest and Dividend Income

71,577



74,781



80,479










INTEREST EXPENSE







Deposits

2,652



3,481



9,227



Borrowings and junior subordinated debt securities

621



641



1,104



Total Interest Expense

3,273



4,122



10,331










NET INTEREST INCOME

68,304



70,659



70,148



Provision for credit losses

2,561



3,137



86,759



Net Interest Income After Provision for Credit Losses

65,743



67,522



(16,611)










NONINTEREST INCOME







Net gain on sale of securities

29





142



Debit and credit card

4,744



4,162



3,612



Service charges on deposit accounts

3,642



3,474



2,805



Wealth management

3,167



2,944



2,585



Mortgage banking

1,734



4,310



2,623



Commercial loan swap income

299



95



945



Other

1,809



2,251



2,511



Total Noninterest Income

15,424



17,236



15,224










NONINTEREST EXPENSE







Salaries and employee benefits

24,515



23,327



21,419



Data processing and information technology

3,787



4,225



3,585



Occupancy

3,434



3,827



3,437



Furniture, equipment and software

2,402



2,640



3,006



Other taxes

1,832



1,436



1,604



Professional services and legal

1,637



1,531



1,932



Marketing

996



1,322



979



FDIC insurance

924



1,046



1,048



Other

6,302



6,226



6,468



Total Noninterest Expense

45,829



45,580



43,478



Income (Loss) Before Taxes

35,338



39,178



(44,865)



Income tax expense (benefit)

6,971



7,276



(11,793)



Net Income (Loss)

$28,367



$31,902



($33,072)










Per Share Data







Shares outstanding at end of period

39,345,719



39,268,359



39,263,460



Average shares outstanding - diluted

39,048,971



39,021,208



39,013,161



Diluted earnings (loss) per share

$0.72



$0.81



($0.85)



Dividends declared per share

$0.28



$0.28



$0.28



Dividend yield (annualized)

3.58%



3.34%



4.78%



Dividends paid to net income

38.74%



34.40%



NM



Book value

$30.21



$29.75



$28.93



Tangible book value (1)

$20.57



$20.08



$19.22



Market value

$31.30



$33.50



$23.45



Profitability Ratios (Annualized)







Return on average assets

1.21%



1.42%



(1.41)%



Return on average shareholders' equity

9.65%



11.15%



(11.17)%



Return on average tangible shareholders' equity (2)

14.41%



16.78%



(16.19)%



Pre-tax pre-provision income / average assets(3)

1.61%



1.89%



1.79%



Efficiency ratio (FTE) (4)

54.37%



51.47%



50.51%



NM - Not Meaningful







S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands, except per share data)



2021


2020


INTEREST AND DIVIDEND INCOME







Loans, including fees



$137,174



$157,549



Investment Securities:







Taxable



7,356



8,074



Tax-exempt



1,503



1,762



Dividends



325



684



Total Interest and Dividend Income



146,358



168,069










INTEREST EXPENSE







Deposits



6,133



24,565



Borrowings and junior subordinated debt securities



1,263



3,320



Total Interest Expense



7,396



27,885










NET INTEREST INCOME



138,962



140,184



Provision for credit losses



5,699



106,809



Net Interest Income After Provision for Credit Losses



133,263



33,375










NONINTEREST INCOME







Net gain on sale of securities



29



142



Debit and credit card



8,906



3,859



Service charges on deposit accounts



7,116



6,814



Wealth management



6,111



4,949



Mortgage banking



6,044



7,093



Commercial loan swap income



393



3,429



Other



4,062



1,341



Total Noninterest Income



32,661



27,627










NONINTEREST EXPENSE







Salaries and employee benefits



47,842



42,754



Data processing and information technology



8,012



7,453



Occupancy



7,261



7,202



Furniture, equipment and software



5,042



5,525



Other taxes



3,268



3,205



Professional services and legal



3,168



2,980



Marketing



2,318



2,090



FDIC insurance



1,970



1,818



Merger related expenses





2,342



Other



12,528



14,500



Total Noninterest Expense



91,409



89,869










Income (Loss) Before Taxes



74,515



(28,867)



Income tax expense (benefit)



14,247



(9,026)










Net Income (Loss)



$60,268



($19,841)










...

Per Share Data







Average shares outstanding - diluted



39,034,808



39,142,351



Diluted earnings (loss) per share



$1.54



($0.51)



Dividends declared per share



$0.56



$0.56



Dividends paid to net income



36.44%



NM










Profitability Ratios (annualized)







Return on average assets



1.31%



(0.44)%



Return on average shareholders' equity



10.39%



(3.35)%



Return on average tangible shareholders' equity (5)



15.57%



(4.68)%



Pre-tax pre-provision income / average assets (6)



1.75%



1.72%



Efficiency ratio (FTE) (7)



52.89%



51.68%



NM - Not Meaningful














S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks, including interest-bearing deposits

$985,278



$671,429



$351,365



Securities, at fair value

840,375



817,299



804,366



Loans held for sale

7,648



12,794



14,259



Commercial loans:







Commercial real estate

3,246,533



3,284,555



3,345,513



Commercial and industrial

1,774,358



1,931,711



2,140,355



Commercial construction

478,153



460,417



459,264



Total Commercial Loans

5,499,044



5,676,683



5,945,132



Consumer loans:







Residential mortgage

859,329



881,245



971,023



Home equity

547,658



530,350



539,519



Installment and other consumer

88,210



80,646



79,816



Consumer construction

13,110



14,244



13,068



Total Consumer Loans

1,508,307



1,506,485



1,603,426



Total Portfolio Loans

7,007,351



7,183,168



7,548,558



Allowance for credit losses

(109,636)



(115,101)



(114,609)



Total Portfolio Loans, Net

6,897,715



7,068,067



7,433,949



Federal Home Loan Bank and other restricted stock, at cost

10,106



12,199



15,151



Goodwill

373,424



373,424



373,289



Other assets

381,286



373,767



481,917



Total Assets

$9,495,832



$9,328,979



$9,474,296










LIABILITIES







Deposits:







Noninterest-bearing demand

$2,668,833



$2,539,594



$2,250,958



Interest-bearing demand

979,300



976,225



1,055,261



Money market

2,047,254



2,002,857



2,121,588



Savings

1,050,256



1,036,927



916,268



Certificates of deposit

1,269,621



1,320,425



1,523,841



Total Deposits

8,015,264



7,876,028



7,867,916










Borrowings:







Securities sold under repurchase agreements

68,587



67,417



92,159



Short-term borrowings





84,541



Long-term borrowings

22,969



23,282



49,489



Junior subordinated debt securities

64,113



64,097



64,053



Total Borrowings

155,669



154,796



290,242



Other liabilities

136,166



129,877



180,361



Total Liabilities

8,307,099



8,160,701



8,338,519










SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,188,733



1,168,278



1,135,777



Total Liabilities and Shareholders' Equity

$9,495,832



$9,328,979



$9,474,296










Capitalization Ratios







Shareholders' equity / assets

12.52%



12.52%



11.99%



Tangible common equity / tangible assets (8)

8.88%



8.81%



8.30%



Tier 1 leverage ratio

9.52%



9.71%



8.89%



Common equity tier 1 capital

11.98%



11.84%



10.70%



Risk-based capital - tier 1

12.40%



12.26%



11.10%



Risk-based capital - total

14.00%



13.93%



12.74%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Net Interest Margin (FTE) (QTD Averages)







ASSETS







Interest-bearing deposits with banks

$785,465

0.09%

$302,219

0.09%

$163,019

0.08%

Securities, at fair value

826,861

2.19%

782,118

2.34%

785,229

2.56%

Loans held for sale

4,353

3.01%

6,360

2.83%

9,931

3.08%

Commercial real estate

3,251,894

3.69%

3,253,641

3.76%

3,389,616

4.23%

Commercial and industrial

1,890,538

3.90%

1,957,459

4.31%

2,200,148

3.61%

Commercial construction

462,928

3.34%

485,269

3.37%

430,912

3.75%

Total Commercial Loans

5,605,359

3.73%

5,696,369

3.91%

6,020,676

3.97%

Residential mortgage

863,254

4.17%

897,427

4.22%

976,916

4.20%

Home equity

535,933

3.50%

532,708

3.65%

543,770

3.69%

Installment and other consumer

84,259

6.05%

79,907

6.33%

79,944

6.34%

Consumer construction

13,264

6.39%

15,908

4.79%

12,758

4.58%

Total Consumer Loans

1,496,710

4.06%

1,525,950

4.14%

1,613,388

4.14%

Total Portfolio Loans

7,102,069

3.80%

7,222,319

3.96%

7,634,064

4.00%

Total Loans

7,106,422

3.80%

7,228,679

3.96%

7,643,995

4.00%

Federal Home Loan Bank and other restricted stock

10,529

4.51%

11,242

4.94%

19,709

3.75%

Total Interest-earning Assets

8,729,277

3.31%

8,324,259

3.67%

8,611,952

3.80%

Noninterest-earning assets

704,635


756,273


817,767


Total Assets

$9,433,911


$9,080,532


$9,429,719









LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing demand

$998,134

0.09%

$895,891

0.10%

$1,033,905

0.24%

Money market

2,037,976

0.18%

1,968,779

0.19%

2,076,483

0.50%

Savings

1,044,899

0.03%

995,228

0.06%

887,357

0.07%

Certificates of deposit

1,291,194

0.45%

1,344,604

0.65%

1,560,885

1.51%

Total Interest-bearing Deposits

5,372,203

0.20%

5,204,503

0.27%

5,558,630

0.67%

Securities sold under repurchase agreements

67,838

0.10%

64,653

0.15%

85,302

0.25%

Short-term borrowings

0

—%

25,556

0.19%

178,273

0.38%

Long-term borrowings

23,113

2.01%

23,471

2.00%

49,774

2.53%

Junior subordinated debt securities

64,103

3.06%

64,088

3.09%

64,044

3.58%

Total Borrowings

155,054

1.61%

177,768

1.46%

377,393

1.18%

Total Interest-bearing Liabilities

5,527,256

0.24%

5,382,271

0.31%

5,936,023

0.70%

Noninterest-bearing liabilities

2,727,653


2,538,149


2,302,676


Shareholders' equity

1,179,002


1,160,113


1,191,020


Total Liabilities and Shareholders' Equity

$9,433,911


$9,080,532


$9,429,719









Net Interest Margin (9)


3.16%


3.47%


3.31%








S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands)



2021


2020


Net Interest Margin (FTE) (YTD Averages)







ASSETS







Interest-bearing deposits with banks



$545,177

0.09%

$131,332

0.59%

Securities, at fair value



804,613

2.26%

786,043

2.55%

Loans held for sale



5,351

2.90%

5,899

3.19%

Commercial real estate



3,252,763

3.72%

3,399,150

4.48%

Commercial and industrial



1,923,813

4.10%

1,975,913

4.02%

Commercial construction



474,037

3.36%

408,638

4.19%

Total Commercial Loans



5,650,613

3.82%

5,783,701

4.30%

Residential mortgage



880,246

4.20%

983,891

4.19%

Home equity



534,329

3.58%

541,981

4.26%

Installment and other consumer



82,095

6.19%

79,812

6.67%

Consumer construction



14,578

5.52%

11,633

4.59%

Total Consumer Loans



1,511,249

4.10%

1,617,317

4.34%

Total Portfolio Loans



7,161,862

3.88%

7,401,018

4.31%

Total Loans



7,167,213

3.88%

7,406,917

4.31%

Federal Home Loan Bank and other restricted stock



10,884

4.73%

21,655

5.47%

Total Interest-earning Assets



8,527,887

3.49%

8,345,947

4.09%

Noninterest-earning assets



730,117


752,576


Total Assets



$9,258,003


$9,098,523









LIABILITIES AND SHAREHOLDERS' EQUITY







Interest-bearing demand



$947,295

0.10%

$987,968

0.41%

Money market



2,003,569

0.18%

2,035,124

0.88%

Savings



1,020,201

0.04%

859,171

0.15%

Certificates of deposit



1,317,751

0.55%

1,581,104

1.66%

Total Interest-bearing deposits



5,288,816

0.23%

5,463,367

0.90%

Securities sold under repurchase agreements



66,254

0.13%

58,046

0.33%

Short-term borrowings



12,707

0.19%

232,319

1.14%

Long-term borrowings



23,291

2.01%

50,809

2.53%

Junior subordinated debt securities



64,095

3.07%

64,120

3.99%

Total Borrowings



166,348

1.53%

405,294

1.65%

Total Interest-bearing Liabilities



5,455,164

0.27%

5,868,661

0.96%

Noninterest-bearing liabilities



2,633,219


2,039,565


Shareholders' equity



1,169,620


1,190,297


Total Liabilities and Shareholders' Equity



$9,258,003


$9,098,523









Net Interest Margin (10)




3.31%


3.42%

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Nonperforming Loans (NPL)







Commercial loans:


% NPL


% NPL


% NPL

Commercial real estate

$82,050


2.53%

$98,606


3.00%

$61,643


1.84%

Commercial and industrial

16,997


0.96%

18,145


0.94%

8,484


0.40%

Commercial construction

384


0.08%

384


0.08%

1,504


0.33%

Commercial Loan Held for Sale


—%

2,798


NM


—%

Total Nonperforming Commercial Loans

99,431


1.81%

119,933


2.11%

71,631


1.20%

Consumer loans:







Residential mortgage

9,917


1.15%

11,737


1.33%

14,649


1.51%

Home equity

3,150


0.58%

3,441


0.65%

3,814


0.71%

Installment and other consumer

121


0.14%

100


0.12%

19


0.02%

Total Nonperforming Consumer Loans

13,188


0.87%

15,278


1.01%

18,482


1.14%

Total Nonperforming Loans

$112,619


1.61%

$135,211


1.88%

$90,113


1.19%

NM-Not Meaningful








2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Loan Charge-offs (Recoveries)







Charge-offs

$8,737



$6,532



$63,304



Recoveries

(1,264)



(721)



(231)



Net Loan Charge-offs (Recoveries)

$7,473



$5,812



$63,072










Net Loan Charge-offs (Recoveries)







Commercial loans:







Customer fraud

$—



$—



$58,671



Commercial real estate

6,595



698



5,588



Commercial and industrial

795



4,913



3,060



Commercial construction

(2)



(1)



(19)



Total Commercial Loan Charge-offs (Recoveries)

7,388



5,610



67,300



Consumer loans:







Residential mortgage

(57)



71



74



Home equity

10



232



16



Installment and other consumer

132



(102)



682



Total Consumer Loan Charge-offs (Recoveries)

85



202



772



Total Net Loan Charge-offs (Recoveries)

$7,473



$5,812



$68,072



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands)



2021


2020


Loan Charge-offs (Recoveries)







Charge-offs



$15,270



$79,749



Recoveries



(1,985)



(520)



Net Loan Charge-offs (Recoveries)



$13,285



$79,229










Net Loan Charge-offs (Recoveries)







Commercial loans:







Customer fraud



$—


$58,671



Commercial real estate



7,293


6,016



Commercial and industrial



5,708


13,325



Commercial construction



(3)


(21)



Total Commercial Loan Charge-offs/(Recoveries)



12,998


77,991



Consumer loans:







Residential mortgage



15


93



Home equity



242


97



Installment and other consumer



30


1,048



Total Consumer Loan Charge-offs (Recoveries)



287


1,238



Total Net Loan Charge-offs (Recoveries)



$13,285


$79,229




2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonperforming loans

$112,619



$135,211



$90,113



OREO

1,145



1,620



2,740



Nonperforming assets

113,764



136,831



92,853



Troubled debt restructurings (nonaccruing)

20,650



29,983



31,755



Troubled debt restructurings (accruing)

14,321



17,916



15,536



Total troubled debt restructurings

34,971



47,899



47,291



Nonperforming loans / total loans

1.61%



1.88%



1.19%



Nonperforming assets / total loans plus OREO

1.62%



1.90%



1.23%



Allowance for credit losses / total portfolio loans

1.56%



1.60%



1.52%



Allowance for credit losses / total portfolio loans excluding PPP

1.64%



1.72%



NA



Allowance for credit losses / nonperforming loans

97%



85%



127%



Net loan charge-offs (recoveries)

$7,473



$5,812



$68,072



Net loan charge-offs (recoveries)(annualized) / average loans

0.43%



0.33%



3.58%



NA = Not Applicable










Six Months Ended June 30,


(dollars in thousands)



2021


2020


Asset Quality Data







Net loan charge-offs (recoveries)



$13,285



$79,229



Net loan charge-offs (recoveries)(annualized) / average loans



0.37%



2.15%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


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



2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter









(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$1,188,733



$1,168,278



$1,135,777



Less: goodwill and other intangible assets, net of deferred tax liability

(379,563)



(379,911)



(380,986)



Tangible common equity (non-GAAP)

$809,170



$788,367



$754,791



Common shares outstanding

39,346



39,268



39,263



Tangible book value (non-GAAP)

$20.57



$20.08



$19.22










(2) Return on Average Tangible Shareholders' Equity (non-GAAP)







Net income (loss) (annualized)

$113,778



$129,378



($133,016)



Plus: amortization of intangibles (annualized), net of tax

1,395



1,464



2,072



Net income before amortization of intangibles (annualized)

$115,173



$130,842



($130,944)










Average total shareholders' equity

$1,179,002



$1,160,113



$1,191,020



Less: average goodwill and other intangible assets, net of deferred tax liability

(379,784)



(380,144)



(382,081)



Average tangible equity (non-GAAP)

$799,218



$779,969



$808,939



Return on average tangible shareholders' equity (non-GAAP)

14.41%



16.78%



(16.19)%










(3) PTPP / Average Assets (non-GAAP)







Income (loss) before taxes

$35,338



$39,178



($44,865)



Plus: Provision for credit losses

2,561



3,137



86,759



Total

37,899



42,315



41,894



Total (annualized) (non-GAAP)

$152,012



$171,611



$168,497



Average assets

$9,433,911



$9,080,532



$9,429,719



PTPP / Average Assets (non-GAAP)

1.61%



1.89%



1.79%










(4) Efficiency Ratio (non-GAAP)







Noninterest expense

$45,829



$45,580



$43,478



Net interest income per consolidated statements of net income

$68,304



$70,659



$70,148



Plus: taxable equivalent adjustment

585



664



847



Net interest income (FTE) (non-GAAP)

68,889



71,323



70,995



Noninterest income

15,424



17,236



15,224



Less: net (gains) losses on sale of securities

(29)





(142)



Net interest income (FTE) (non-GAAP) plus noninterest income

$84,284



$88,560



$86,077



Efficiency ratio (non-GAAP)

54.37%



51.47%



50.51%










S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands)



2021


2020









(5) Return on Average Tangible Shareholders' Equity (non-GAAP)







Net income (loss) (annualized)



$121,535



($39,900)



Plus: amortization of intangibles (annualized), net of tax



1,429



2,040



Net income before amortization of intangibles (annualized)



$122,964



($37,860)










Average total shareholders' equity



$1,169,620



$1,190,297



Less: average goodwill and other intangible assets, net of deferred tax liability



(379,963)



(380,935)



Average tangible equity (non-GAAP)



$789,657



$809,362



Return on average tangible shareholders' equity (non-GAAP)



15.57%



(4.68)%










(6) PTPP / Average Assets (non-GAAP)







Income (loss) before taxes



$74,515



($28,867)



Plus: Provision for credit losses



5,699



106,809



Total



80,214



77,942



Total (annualized) (non-GAAP)



$161,758



$156,741



Average assets



$9,258,003



$9,098,523



PTPP / Average Assets (non-GAAP)



1.75%



1.72%










(7) Efficiency Ratio (non-GAAP)







Noninterest expense



$91,409



$89,869



Less: merger related expenses





(2,342)



Noninterest expense excluding nonrecurring items



$91,409



$87,527










Net interest income per consolidated statements of net income



$138,962



$140,184



Plus: taxable equivalent adjustment



1,249



1,697



Net interest income (FTE) (non-GAAP)



140,211



141,881



Noninterest income



32,661



27,627



Less: net (gains) losses on sale of securities



(29)



(142)



Net interest income (FTE) (non-GAAP) plus noninterest income



$172,843



$169,366



Efficiency ratio (non-GAAP)



52.89%



51.68%










(10) Net Interest Margin Rate (FTE) (non-GAAP)







Interest income and dividend income



$146,358



$168,069



Less: interest expense



(7,396)



(27,885)



Net interest income per consolidated statements of net income



138,962



140,184



Plus: taxable equivalent adjustment



1,249



1,697



Net interest income (FTE) (non-GAAP)



$140,211



$141,881



Net interest income (FTE) (annualized)



$282,746



$285,321



Average interest-earning assets



$8,527,886



$8,345,947



Net interest margin - (FTE) (non-GAAP)



3.31%



3.42%



S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


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



2021


2021


2020



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter









(8) Tangible Common Equity / Tangible Assets (non-GAAP)







Total shareholders' equity

$1,188,733



$1,168,278



$1,135,777



Less: goodwill and other intangible assets, net of deferred tax liability

(379,563)



(379,911)



(380,986)



Tangible common equity (non-GAAP)

$809,170



$788,367



$754,791










Total assets

$9,495,832



$9,328,979



$9,474,296



Less: goodwill and other intangible assets, net of deferred tax liability

(379,563)



(379,911)



(380,986)



Tangible assets (non-GAAP)

$9,116,268



$8,949,068



$9,093,310



Tangible common equity to tangible assets (non-GAAP)

8.88%



8.81%



8.30%










(9) Net Interest Margin Rate (FTE) (non-GAAP)







Interest income and dividend income

$71,577



$74,781



$80,479



Less: interest expense

(3,273)



(4,122)



(10,331)



Net interest income per consolidated statements of net income

68,304



70,659



70,148



Plus: taxable equivalent adjustment

585



664



847



Net interest income (FTE) (non-GAAP)

$68,889



$71,323



$70,995



Net interest income (FTE) (annualized)

$276,313



$289,253



$285,540



Average interest- earning assets

$8,729,277



$8,324,259



$8,611,952



Net interest margin (FTE) (non-GAAP)

3.16%



3.47%



3.31%










Cision
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SOURCE S&T Bancorp, Inc.