8-K
S&T BANCORP INC (STBA)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
October 17, 2022
Date of Report (date of earliest event reported)
S&T BANCORP, INC
(Exact name of registrant as specified in its charter)
| Pennsylvania | 0-12508 | 25-1434426 | |
|---|---|---|---|
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |
| 800 Philadelphia Street | Indiana | PA | 15701 |
| (Address of Principal Executive Offices) | (Zip Code) |
(800) 325-2265
Registrant's telephone number, including area code
(Not applicable)
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, $2.50 par value | STBA | The NASDAQ Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On October 20, 2022 S&T announced by press release its earnings for the three and nine months ended September 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated by reference in this Item 2.02. The information contained in this Item 2.02 of this Report on Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 7.01 Regulation FD Disclosure.
In connection with the issuance of its earnings for the three and nine months ended September 30, 2022, S&T has also made available on its website materials that contain supplemental information about S&T’s financial results (“Supplemental Information”). A copy of the supplemental information is attached hereto asExhibit 99.2 and is incorporated by reference in this Item 7.01. The information contained in this Item 7.01 of this Report on Form 8-K, including Exhibit 99.2, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
The Board of Directors of S&T approved a $0.31 per share cash dividend on October 17, 2022. A copy of the press release is attached hereto as Exhibit 99.3. This is an increase of $0.01, or 3.3 percent, compared to a cash dividend of $0.30 per shared declared in the prior quarter and a $0.02, or 6.9 percent, increase compared to the same period in the prior year. The annualized yield using the October 17, 2022 closing price of $32.08 is 3.9 percent. The dividend is payable November 17, 2022 to shareholders of record on November 3, 2022.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description of Exhibit |
|---|---|
| 99.1 | Press Release |
| 99.2 | Supplemental Information |
| 99.3 | Dividend Press Release |
| 104 | Cover Page Interactive Data File (embedded in the cover page formatted in Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned thereunto duly authorized.
| S&T Bancorp, Inc. | |
|---|---|
| /s/ Mark Kochvar | |
| October 20, 2022 | Mark Kochvar<br>Senior Executive Vice President,<br>Chief Financial Officer |
Document
| INVESTOR CONTACT:<br><br>Mark Kochvar<br><br>S&T Bancorp, Inc.<br><br>Chief Financial Officer<br><br>724.465.4826<br><br>mark.kochvar@stbank.com |
|---|
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces Record Quarterly EPS and Net Income
INDIANA, Pa. - October 20, 2022 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $37.2 million, or $0.95 per diluted share, for the third quarter of 2022 compared to net income of $28.9 million, or $0.74 per diluted share, for the second quarter of 2022 and net income of $27.6 million, or $0.70 per diluted share, for the third quarter of 2021.
Third Quarter of 2022 Highlights:
•Record EPS and net income for the third quarter of 2022.
•EPS and net income increased more than 28% compared to the second quarter of 2022 and by approximately 35% compared to the third quarter of 2021.
•Solid return metrics with return on average assets (ROA) of 1.64%, return on average equity (ROE) of 12.47% and return on average tangible equity (ROTE) (non-GAAP) of 18.46%.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) of 2.15%.
•Net interest margin (NIM) (FTE) (Non-GAAP) expanded 48 basis points to 4.04% for the third quarter.
•Net interest income increased $8.6 million, or 11.4%, compared to the second quarter.
•Loans, excluding PPP, increased $63.1 million, or 3.6% annualized, with strong consumer loan growth of $113.5 million.
•Nonperforming assets decreased $10.0 million, or 25.8%, resulting in a nonperforming assets to total loans plus other real estate owned, or OREO, ratio of 0.41% compared to 0.55% at June 30, 2022.
•S&T's Board of Directors approved a $0.01 per share, or 3.3%, increase in the quarterly cash dividend to $0.31 per share compared to the prior quarter.
"We are excited to share an exceptionally strong quarter with record EPS and net income. Our balance sheet is
well-positioned in this rising interest rate environment resulting in significant net interest income growth and net
interest margin expansion," said Chris McComish, chief executive officer. "Our financial performance, driven by our award-winning customer experience and employee engagement give us great optimism as we move through the current economic environment."
Net Interest Income
Net interest income increased $8.6 million, or 11.4%, to $83.8 million for the third quarter of 2022 compared to $75.2 million for the second quarter of 2022. The increase in net interest income was primarily due to higher
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S&T Earnings Release - 2
interest rates in the third quarter. The yield on total average loans increased 58 basis points to 4.69% compared to 4.11% in the second quarter of 2022. Total interest-bearing deposit costs increased 29 basis points to 0.43% compared to 0.14% in the second quarter of 2022. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) expanded 48 basis points to 4.04% compared to 3.56% in the prior quarter. The increase in NIM (FTE) (non-GAAP) was due to higher yields on loans and a better earning asset mix only partially offset by a higher cost of deposits.
Asset Quality
Total nonperforming assets decreased $10.0 million, or 25.8%, to $28.8 million at September 30, 2022 compared to $38.8 million at June 30, 2022. Nonperforming assets to total loans plus OREO, decreased 14 basis points to 0.41% at September 30, 2022 compared to 0.55% at June 30, 2022. Net loan charge-offs were $0.7 million for the third quarter of 2022 compared to $3.0 million in the second quarter of 2022. The provision for credit losses was $2.5 million for the third quarter of 2022 compared to $3.2 million in the second quarter of 2022. The allowance for credit losses was 1.40% of total portfolio loans as of September 30, 2022 compared to 1.39% at June 30, 2022. The increase in the allowance for credit losses was related to additional uncertainty in the macroeconomic environment.
"We continue to execute on our strategic initiative to improve our asset quality which drove nonperforming assets down twenty-five percent this quarter. Improving asset quality will remain a strategic priority for us especially given the evolving macroeconomic outlook," said Chris McComish, chief executive officer.
Noninterest Income and Expense
Noninterest income increased $2.2 million to $14.8 million in the third quarter of 2022 compared to $12.6 million in the second quarter of 2022. Other income increased $1.8 million in the third quarter primarily related to a lower unfavorable decline in the fair value of the assets in a nonqualified benefit plan and a gain on sale of OREO of $0.6 million. Noninterest expense increased $1.2 million to $49.6 million for the third quarter of 2022 compared to $48.4 million in the second quarter of 2022 mainly due to an increase of $1.9 million in salaries and employee benefits related to a lower decline in the fair value of the liability in a nonqualified benefit plan and higher pension expense. Professional services and legal decreased $0.5 million related to various consulting engagements during the second quarter of 2022.
Financial Condition
Total assets were $8.9 billion at September 30, 2022 compared to $9.1 billion at June 30, 2022. The decrease in total assets related to a $209.8 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 increased by $63.1 million, or 3.6% annualized, compared to June 30, 2022. The consumer loan portfolio grew $113.5 million with strong growth across all consumer loan categories compared to June 30, 2022. Total deposits decreased $201.7 million to $7.4 billion at September 30, 2022 compared to $7.6 billion at June 30, 2022. The decline in deposits was due to the competitive market driven by rising interest rates.
During the third quarter of 2022, 117,283 common shares were repurchased at a total cost of $3.5 million, or an average of $29.71 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.
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S&T Earnings Release - 3
Dividend
S&T's Board of Directors approved a $0.31 per share cash dividend on October 17, 2022. This dividend compares to a $0.29 per share cash dividend declared in the same period in the prior year. The dividend is payable November 17, 2022 to shareholders of record on November 3, 2022.
Conference Call
S&T will host its third quarter 2022 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 20, 2022. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “3rd 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 October 27, 2022, by dialing 1.877.481.4010; the Conference ID is 46631.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $8.9 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, Ohio and 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 in 2022. 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; legislation
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affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.
Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 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.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 5 | |
|---|---|---|---|
| 2022 | 2022 | 2021 | |
| --- | --- | --- | --- |
| Third | Second | Third | |
| (dollars in thousands, except per share data) | Quarter | Quarter | Quarter |
| INTEREST AND DIVIDEND INCOME | |||
| Loans, including fees | 83,035 | 71,018 | 66,914 |
| Investment Securities: | |||
| Taxable | 6,305 | 5,995 | 4,176 |
| Tax-exempt | 380 | 484 | 595 |
| Dividends | 115 | 102 | 84 |
| Total Interest and Dividend Income | 89,835 | 77,599 | 71,769 |
| INTEREST EXPENSE | |||
| Deposits | 5,197 | 1,790 | 2,439 |
| Borrowings and junior subordinated debt securities | 840 | 615 | 619 |
| Total Interest Expense | 6,037 | 2,405 | 3,058 |
| NET INTEREST INCOME | 83,798 | 75,194 | 68,711 |
| Provision for credit losses | 2,498 | 3,204 | 3,388 |
| Net Interest Income After Provision for Credit Losses | 81,300 | 71,990 | 65,323 |
| NONINTEREST INCOME | |||
| Net gain on sale of securities | 198 | — | — |
| Debit and credit card | 4,768 | 4,756 | 4,579 |
| Service charges on deposit accounts | 4,333 | 4,181 | 3,923 |
| Wealth management | 3,212 | 3,247 | 3,464 |
| Mortgage banking | 425 | 466 | 2,162 |
| Other | 1,824 | (20) | 1,718 |
| Total Noninterest Income | 14,760 | 12,630 | 15,846 |
| NONINTEREST EXPENSE | |||
| Salaries and employee benefits | 26,700 | 24,811 | 25,228 |
| Data processing and information technology | 4,220 | 4,104 | 4,001 |
| Occupancy | 3,490 | 3,634 | 3,660 |
| Furniture, equipment and software | 2,915 | 2,939 | 2,745 |
| Professional services and legal | 1,851 | 2,380 | 1,550 |
| Other taxes | 1,559 | 1,682 | 1,830 |
| Marketing | 1,367 | 1,524 | 890 |
| FDIC insurance | 598 | 882 | 1,210 |
| Other | 6,933 | 6,468 | 6,127 |
| Total Noninterest Expense | 49,633 | 48,424 | 47,241 |
| Income Before Taxes | 46,427 | 36,196 | 33,928 |
| Income tax expense | 9,178 | 7,338 | 6,330 |
| Net Income | 37,249 | 28,858 | 27,598 |
| Per Share Data | |||
| Shares outstanding at end of period | 39,012,773 | 39,148,999 | 39,367,847 |
| Average shares outstanding - diluted | 38,975,145 | 39,099,631 | 39,062,080 |
| Diluted earnings per share | 0.95 | 0.74 | 0.70 |
| Dividends declared per share | 0.30 | 0.30 | 0.28 |
| Dividend yield (annualized) | 4.09 | 4.37 | 3.80 |
| Dividends paid to net income | 31.39 | 40.86 | 39.83 |
| Book value | 29.56 | 30.10 | 30.52 |
| Tangible book value (1) | 19.87 | 20.44 | 20.89 |
| Market value | 29.31 | 27.43 | 29.47 |
| Profitability Ratios (Annualized) | |||
| Return on average assets | 1.64 | 1.25 | 1.15 |
| Return on average shareholders' equity | 12.47 | 9.83 | 9.13 |
| Return on average tangible shareholders' equity(2) | 18.46 | 14.63 | 13.53 |
| Pre-provision net revenue / average assets(3) | 2.15 | 1.71 | 1.56 |
| Efficiency ratio (FTE)(4) | 50.19 | 54.82 | 55.50 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 6 |
|---|---|---|
| Nine Months Ended September 30, | ||
| --- | --- | --- |
| (dollars in thousands, except per share data) | 2022 | 2021 |
| INTEREST AND DIVIDEND INCOME | ||
| Loans, including fees | 218,646 | 204,088 |
| Investment Securities: | ||
| Taxable | 17,236 | 11,532 |
| Tax-exempt | 1,346 | 2,098 |
| Dividends | 315 | 409 |
| Total Interest and Dividend Income | 237,543 | 218,127 |
| INTEREST EXPENSE | ||
| Deposits | 8,840 | 8,572 |
| Borrowings and junior subordinated debt securities | 1,978 | 1,881 |
| Total Interest Expense | 10,818 | 10,453 |
| NET INTEREST INCOME | 226,725 | 207,674 |
| Provision for credit losses | 5,190 | 9,087 |
| Net Interest Income After Provision for Credit Losses | 221,535 | 198,587 |
| NONINTEREST INCOME | ||
| Net gain on sale of securities | 198 | 29 |
| Debit and credit card | 14,587 | 13,486 |
| Service charges on deposit accounts | 12,488 | 11,039 |
| Wealth management | 9,701 | 9,576 |
| Mortgage banking | 1,906 | 8,206 |
| Other | 3,736 | 6,257 |
| Total Noninterest Income | 42,616 | 48,593 |
| NONINTEREST EXPENSE | ||
| Salaries and employee benefits | 75,223 | 73,070 |
| Data processing and information technology | 12,759 | 12,012 |
| Occupancy | 11,006 | 10,921 |
| Furniture, equipment and software | 8,631 | 7,787 |
| Professional services and legal | 6,180 | 4,718 |
| Other taxes | 4,778 | 5,098 |
| Marketing | 4,252 | 3,208 |
| FDIC insurance | 2,417 | 3,180 |
| Other | 20,225 | 18,742 |
| Total Noninterest Expense | 145,471 | 138,736 |
| Income Before Taxes | 118,680 | 108,444 |
| Income tax expense | 23,430 | 20,578 |
| Net Income | 95,250 | 87,866 |
| Per Share Data | ||
| Average shares outstanding - diluted | 39,049,151 | 39,044,870 |
| Diluted earnings per share | 2.43 | 2.24 |
| Dividends declared per share | 0.89 | 0.84 |
| Dividends paid to net income | 36.61 | 37.50 |
| Profitability Ratios (annualized) | ||
| Return on average assets | 1.38 | 1.26 |
| Return on average shareholders' equity | 10.73 | 9.96 |
| Return on average tangible shareholders' equity(5) | 15.91 | 14.87 |
| Pre-provision net revenue / average assets(6) | 1.79 | 1.68 |
| Efficiency ratio (FTE)(7) | 53.75 | 53.75 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 7 | |
|---|---|---|---|
| 2022 | 2022 | 2021 | |
| --- | --- | --- | --- |
| Third | Second | Third | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| ASSETS | |||
| Cash and due from banks, including interest-bearing deposits | 134,903 | 344,694 | 934,377 |
| Securities, at fair value | 997,428 | 1,068,576 | 870,121 |
| Loans held for sale | 1,039 | 1,311 | 4,303 |
| Commercial loans: | |||
| Commercial real estate | 3,134,841 | 3,191,670 | 3,225,863 |
| Commercial and industrial | 1,714,714 | 1,695,031 | 1,698,784 |
| Commercial construction | 390,093 | 410,425 | 499,317 |
| Total Commercial Loans | 5,239,648 | 5,297,126 | 5,423,964 |
| Consumer loans: | |||
| Residential mortgage | 1,043,973 | 975,108 | 887,937 |
| Home equity | 642,937 | 611,893 | 548,396 |
| Installment and other consumer | 126,629 | 119,938 | 97,606 |
| Consumer construction | 43,729 | 36,829 | 12,184 |
| Total Consumer Loans | 1,857,268 | 1,743,768 | 1,546,123 |
| Total Portfolio Loans | 7,096,916 | 7,040,894 | 6,970,087 |
| Allowance for credit losses | (99,694) | (98,095) | (108,348) |
| Total Portfolio Loans, Net | 6,997,222 | 6,942,799 | 6,861,739 |
| Federal Home Loan Bank and other restricted stock, at cost | 10,900 | 7,949 | 9,893 |
| Goodwill | 373,424 | 373,424 | 373,424 |
| Other assets | 421,053 | 365,061 | 382,197 |
| Total Assets | 8,935,969 | 9,103,814 | 9,436,054 |
| LIABILITIES | |||
| Deposits: | |||
| Noninterest-bearing demand | 2,663,176 | 2,736,849 | 2,652,314 |
| Interest-bearing demand | 847,825 | 880,432 | 971,321 |
| Money market | 1,818,642 | 1,888,506 | 2,045,320 |
| Savings | 1,128,169 | 1,125,344 | 1,074,896 |
| Certificates of deposit | 952,785 | 981,116 | 1,201,268 |
| Total Deposits | 7,410,597 | 7,612,247 | 7,945,119 |
| Borrowings: | |||
| Securities sold under repurchase agreements | — | 39,259 | 72,586 |
| Short-term borrowings | 35,000 | — | — |
| Long-term borrowings | 14,853 | 21,988 | 22,693 |
| Junior subordinated debt securities | 54,438 | 54,423 | 64,128 |
| Total Borrowings | 104,291 | 115,670 | 159,407 |
| Other liabilities | 267,900 | 197,539 | 129,847 |
| Total Liabilities | 7,782,788 | 7,925,456 | 8,234,373 |
| SHAREHOLDERS' EQUITY | |||
| Total Shareholders' Equity | 1,153,181 | 1,178,358 | 1,201,681 |
| Total Liabilities and Shareholders' Equity | 8,935,969 | 9,103,814 | 9,436,054 |
| Capitalization Ratios | |||
| Shareholders' equity / assets | 12.90 | 12.94 | 12.73 |
| Tangible common equity / tangible assets(9) | 9.06 | 9.17 | 9.08 |
| Tier 1 leverage ratio | 10.75 | 10.25 | 9.65 |
| Common equity tier 1 capital | 12.53 | 12.34 | 12.07 |
| Risk-based capital - tier 1 | 12.93 | 12.74 | 12.48 |
| Risk-based capital - total | 14.43 | 14.23 | 14.06 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 8 | |
|---|---|---|---|
| 2022 | 2022 | 2021 | |
| --- | --- | --- | --- |
| Third | Second | Third | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| Net Interest Margin (FTE) (QTD Averages) | |||
| ASSETS | |||
| Interest-bearing deposits with banks | 158,700 | 528,413 | 914,370 |
| Securities, at fair value | 1,051,534 | 1,024,106 | 836,019 |
| Loans held for sale | 1,032 | 1,406 | 3,656 |
| Commercial real estate | 3,159,543 | 3,197,406 | 3,239,867 |
| Commercial and industrial | 1,704,271 | 1,685,728 | 1,744,684 |
| Commercial construction | 405,460 | 404,856 | 490,940 |
| Total Commercial Loans | 5,269,274 | 5,287,990 | 5,475,491 |
| Residential mortgage | 1,005,139 | 939,756 | 875,684 |
| Home equity | 629,827 | 594,529 | 547,984 |
| Installment and other consumer | 123,010 | 119,041 | 92,615 |
| Consumer construction | 40,975 | 31,204 | 13,626 |
| Total Consumer Loans | 1,798,951 | 1,684,530 | 1,529,909 |
| Total Portfolio Loans | 7,068,225 | 6,972,520 | 7,005,400 |
| Total Loans | 7,069,257 | 6,973,926 | 7,009,056 |
| Federal Home Loan Bank and other restricted stock | 8,398 | 8,939 | 9,981 |
| Total Interest-earning Assets | 8,287,889 | 8,535,384 | 8,769,425 |
| Noninterest-earning assets | 721,480 | 690,207 | 724,759 |
| Total Assets | 9,009,369 | 9,225,591 | 9,494,184 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Interest-bearing demand | 872,302 | 979,514 | 962,139 |
| Money market | 1,861,389 | 1,930,852 | 2,062,958 |
| Savings | 1,131,575 | 1,118,346 | 1,059,904 |
| Certificates of deposit | 962,898 | 1,001,775 | 1,240,345 |
| Total Interest-bearing Deposits | 4,828,164 | 5,030,487 | 5,325,346 |
| Securities sold under repurchase agreements | 12,668 | 50,037 | 71,054 |
| Short-term borrowings | 10,379 | — | — |
| Long-term borrowings | 17,278 | 22,072 | 22,841 |
| Junior subordinated debt securities | 54,428 | 54,413 | 64,118 |
| Total Borrowings | 94,753 | 126,522 | 158,012 |
| Total Interest-bearing Liabilities | 4,922,917 | 5,157,009 | 5,483,358 |
| Noninterest-bearing liabilities | 2,901,290 | 2,891,032 | 2,812,185 |
| Shareholders' equity | 1,185,162 | 1,177,550 | 1,198,641 |
| Total Liabilities and Shareholders' Equity | 9,009,369 | 9,225,591 | 9,494,184 |
| Net Interest Margin(10) |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 9 |
|---|---|---|
| Nine Months Ended September 30, | ||
| --- | --- | --- |
| (dollars in thousands) | 2022 | 2021 |
| Net Interest Margin (FTE) (YTD Averages) | ||
| ASSETS | ||
| Interest-bearing deposits with banks | 478,896 | 669,593 |
| Securities, at fair value | 1,026,131 | 815,197 |
| Loans held for sale | 1,326 | 4,780 |
| Commercial real estate | 3,204,371 | 3,248,417 |
| Commercial and industrial | 1,700,923 | 1,863,447 |
| Commercial construction | 406,513 | 479,733 |
| Total Commercial Loans | 5,311,807 | 5,591,597 |
| Residential mortgage | 947,454 | 878,709 |
| Home equity | 598,595 | 538,931 |
| Installment and other consumer | 117,388 | 85,640 |
| Consumer construction | 31,407 | 14,257 |
| Total Consumer Loans | 1,694,844 | 1,517,538 |
| Total Portfolio Loans | 7,006,651 | 7,109,135 |
| Total Loans | 7,007,977 | 7,113,915 |
| Federal Home Loan Bank and other restricted stock | 8,869 | 10,579 |
| Total Interest-earning Assets | 8,521,873 | 8,609,284 |
| Noninterest-earning assets | 706,640 | 728,314 |
| Total Assets | 9,228,513 | 9,337,598 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Interest-bearing demand | 945,733 | 952,297 |
| Money market | 1,948,653 | 2,023,583 |
| Savings | 1,119,739 | 1,033,581 |
| Certificates of deposit | 1,011,228 | 1,291,666 |
| Total Interest-bearing deposits | 5,025,353 | 5,301,126 |
| Securities sold under repurchase agreements | 47,912 | 67,872 |
| Short-term borrowings | 3,498 | 8,425 |
| Long-term borrowings | 20,535 | 23,139 |
| Junior subordinated debt securities | 54,413 | 64,103 |
| Total Borrowings | 126,358 | 163,539 |
| Total Interest-bearing Liabilities | 5,151,711 | 5,464,665 |
| Noninterest-bearing liabilities | 2,890,375 | 2,693,530 |
| Shareholders' equity | 1,186,427 | 1,179,403 |
| Total Liabilities and Shareholders' Equity | 9,228,513 | 9,337,598 |
| Net Interest Margin(8) |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 10 | | --- | --- | --- || | 2022 | | 2022 | | 2021 | | | --- | --- | --- | --- | --- | --- | --- | | | Third | | Second | | Third | | | (dollars in thousands) | Quarter | | Quarter | | Quarter | | | Nonperforming Loans (NPL) | | | | | | | | Commercial loans: | | % NPL | | % NPL | | % NPL | | Commercial real estate | $8,556 | 0.27% | $15,783 | 0.49% | $56,400 | 1.71% | | Commercial and industrial | 3,847 | 0.22% | 4,454 | 0.26% | 38,581 | 2.27% | | Commercial construction | 384 | 0.10% | 864 | 0.21% | 4,053 | 0.75% | | Total Nonperforming Commercial Loans | 12,787 | 0.24% | 21,101 | 0.40% | 99,034 | 1.83% | | Consumer loans: | | | | | | | | Residential mortgage | 7,357 | 0.70% | 8,137 | 0.83% | 9,172 | 1.03% | | Home equity | 2,216 | 0.34% | 2,281 | 0.37% | 2,917 | 0.53% | | Installment and other consumer | 417 | 0.33% | 256 | 0.21% | 189 | 0.19% | | Total Nonperforming Consumer Loans | 9,990 | 0.54% | 10,674 | 0.61% | 12,278 | 0.79% | | Total Nonperforming Loans | $22,777 | 0.32% | $31,775 | 0.45% | $111,312 | 1.60% || | 2022 | 2022 | 2021 | | --- | --- | --- | --- | | | Third | Second | Third | | (dollars in thousands) | Quarter | Quarter | Quarter | | Loan Charge-offs (Recoveries) | | | | | Charge-offs | $1,239 | $7,678 | $4,207 | | Recoveries | (529) | (4,666) | (616) | | Net Loan Charge-offs | $710 | $3,012 | $3,591 | | Net Loan Charge-offs (Recoveries) | | | | | Commercial loans: | | | | | Commercial real estate | $304 | ($125) | $3,652 | | Commercial and industrial | 80 | 2,712 | (277) | | Commercial construction | — | — | 54 | | Total Commercial Loan Charge-offs | 384 | 2,587 | 3,429 | | Consumer loans: | | | | | Residential mortgage | 41 | 13 | 2 | | Home equity | 111 | 6 | 37 | | Installment and other consumer | 174 | 406 | 123 | | Total Consumer Loan Charge-offs | 326 | 425 | 162 | | Total Net Loan Charge-offs | $710 | $3,012 | $3,591 |
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 11 | | --- | --- | --- || | Nine Months Ended September 30, | | | --- | --- | --- | | (dollars in thousands) | 2022 | 2021 | | Loan Charge-offs (Recoveries) | | | | Charge-offs | $9,899 | $19,477 | | Recoveries | (8,213) | (2,601) | | Net Loan Charge-offs | $1,686 | $16,876 | | Net Loan Charge-offs | | | | Commercial loans: | | | | Commercial real estate | $356 | $10,945 | | Commercial and industrial | 285 | 5,431 | | Commercial construction | (1) | 51 | | Total Commercial Loan Charge-offs | 640 | 16,427 | | Consumer loans: | | | | Residential mortgage | 135 | 17 | | Home equity | 97 | 279 | | Installment and other consumer | 814 | 153 | | Total Consumer Loan Charge-offs | 1,046 | 449 | | Total Net Loan Charge-offs | $1,686 | $16,876 | | | 2022 | 2022 | 2021 | | --- | --- | --- | --- | | | Third | Second | Third | | (dollars in thousands) | Quarter | Quarter | Quarter | | Asset Quality Data | | | | | Nonperforming loans | 22,777 | 31,775 | 111,312 | | OREO | 6,022 | 7,046 | 13,370 | | Total nonperforming assets | 28,799 | 38,821 | 124,682 | | Troubled debt restructurings (nonaccruing) | 3,860 | 4,010 | 14,033 | | Troubled debt restructurings (accruing) | 8,925 | 9,338 | 13,782 | | Total troubled debt restructurings | 12,785 | 13,348 | 27,815 | | Nonperforming loans / total loans | 0.32 | 0.45 | 1.60 | | Nonperforming assets / total loans plus OREO | 0.41 | 0.55 | 1.78 | | Allowance for credit losses / total portfolio loans | 1.40 | 1.39 | 1.55 | | Allowance for credit losses / total portfolio loans excluding PPP | 1.41 | 1.40 | 1.60 | | Allowance for credit losses / nonperforming loans | 438 | 309 | 97 | | Net loan charge-offs (recoveries) | 710 | 3,012 | 3,590 | | Net loan charge-offs (recoveries) (annualized) / average loans | 0.04 | 0.17 | 0.21 |
All values are in US Dollars.
| Nine Months Ended September 30, | ||
|---|---|---|
| (dollars in thousands) | 2022 | 2021 |
| Asset Quality Data | ||
| Net loan charge-offs | 1,686 | 16,875 |
| Net loan charge-offs (annualized) / average loans | 0.03 | 0.32 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 12 |
|---|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| 2022 | 2022 | 2021 | |
|---|---|---|---|
| Third | Second | Third | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| (1) Tangible Book Value (non-GAAP) | |||
| Total shareholders' equity | 1,153,181 | 1,178,358 | 1,201,681 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (377,961) | (378,259) | (379,218) |
| Tangible common equity (non-GAAP) | 775,220 | 800,099 | 822,463 |
| Common shares outstanding | 39,013 | 39,149 | 39,368 |
| Tangible book value (non-GAAP) | 19.87 | 20.44 | 20.89 |
| (2) Return on Average Tangible Shareholders' Equity (non-GAAP) | |||
| Net income (annualized) | 147,781 | 115,750 | 109,492 |
| Plus: amortization of intangibles (annualized), net of tax | 1,181 | 1,197 | 1,369 |
| Net income before amortization of intangibles (annualized) | 148,962 | 116,947 | 110,861 |
| Average total shareholders' equity | 1,185,162 | 1,177,550 | 1,198,641 |
| Less: average goodwill and other intangible assets, net of deferred tax liability | (378,154) | (378,453) | (379,443) |
| Average tangible equity (non-GAAP) | 807,008 | 799,097 | 819,198 |
| Return on average tangible shareholders' equity (non-GAAP) | 18.46 | 14.63 | 13.53 |
| (3) PPNR / Average Assets (non-GAAP) | |||
| Income before taxes | 46,427 | 36,196 | 33,928 |
| Plus: Provision for credit losses | 2,498 | 3,204 | 3,388 |
| Total | 48,925 | 39,400 | 37,316 |
| Total (annualized) (non-GAAP) | 194,106 | 158,034 | 148,051 |
| Average assets | 9,009,369 | 9,225,591 | 9,494,184 |
| PPNR / Average Assets (non-GAAP) | 2.15 | 1.71 | 1.56 |
| (4) Efficiency Ratio (non-GAAP) | |||
| Noninterest expense | 49,633 | 48,424 | 47,241 |
| Net interest income per consolidated statements of net income | 83,798 | 75,194 | 68,711 |
| Plus: taxable equivalent adjustment | 521 | 506 | 557 |
| Net interest income (FTE) (non-GAAP) | 84,319 | 75,700 | 69,268 |
| Noninterest income | 14,760 | 12,630 | 15,846 |
| Less: net gains on sale of securities | (198) | — | — |
| Net interest income (FTE) (non-GAAP) plus noninterest income | 98,881 | 88,330 | 85,114 |
| Efficiency ratio (non-GAAP) | 50.19 | 54.82 | 55.50 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 13 |
|---|---|---|
| Nine Months Ended September 30, | ||
| --- | --- | --- |
| (dollars in thousands) | 2022 | 2021 |
| (5) Return on Average Tangible Shareholders' Equity (non-GAAP) | ||
| Net income (annualized) | 127,350 | 117,477 |
| Plus: amortization of intangibles (annualized), net of tax | 1,217 | 1,409 |
| Net income before amortization of intangibles (annualized) | 128,567 | 118,886 |
| Average total shareholders' equity | 1,186,427 | 1,179,403 |
| Less: average goodwill and other intangible assets, net of deferred tax liability | (378,454) | (379,788) |
| Average tangible equity (non-GAAP) | 807,973 | 799,615 |
| Return on average tangible shareholders' equity (non-GAAP) | 15.91 | 14.87 |
| (6) PPNR / Average Assets (non-GAAP) | ||
| Income before taxes | 118,680 | 108,444 |
| Plus: Provision for credit losses | 5,190 | 9,087 |
| Total | 123,870 | 117,531 |
| Total (annualized) (non-GAAP) | 165,614 | 157,139 |
| Average assets | 9,228,513 | 9,337,598 |
| PPNR / Average Assets (non-GAAP) | 1.79 | 1.68 |
| (7) Efficiency Ratio (non-GAAP) | ||
| Noninterest expense | 145,471 | 138,736 |
| Net interest income per consolidated statements of net income | 226,725 | 207,674 |
| Plus: taxable equivalent adjustment | 1,520 | 1,806 |
| Net interest income (FTE) (non-GAAP) | 228,245 | 209,480 |
| Noninterest income | 42,616 | 48,593 |
| Less: net gains on sale of securities | (198) | (29) |
| Net interest income (FTE) (non-GAAP) plus noninterest income | 270,663 | 258,044 |
| Efficiency ratio (non-GAAP) | 53.75 | 53.75 |
| (8) Net Interest Margin Rate (FTE) (non-GAAP) | ||
| Interest income and dividend income | 237,543 | 218,127 |
| Less: interest expense | (10,818) | (10,453) |
| Net interest income per consolidated statements of net income | 226,725 | 207,674 |
| Plus: taxable equivalent adjustment | 1,520 | 1,806 |
| Net interest income (FTE) (non-GAAP) | 228,245 | 209,480 |
| Net interest income (FTE) (annualized) | 305,163 | 280,074 |
| Average interest-earning assets | 8,521,873 | 8,609,284 |
| Net interest margin - (FTE) (non-GAAP) | 3.58 | 3.25 |
All values are in US Dollars.
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| S&T Bancorp, Inc.<br><br>Consolidated Selected Financial Data<br><br>Unaudited | S&T Earnings Release - | 14 |
|---|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| 2022 | 2022 | 2021 | |
|---|---|---|---|
| Third | Second | Third | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| (9) Tangible Common Equity / Tangible Assets (non-GAAP) | |||
| Total shareholders' equity | 1,153,181 | 1,178,358 | 1,201,681 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (377,961) | (378,259) | (379,218) |
| Tangible common equity (non-GAAP) | 775,220 | 800,099 | 822,463 |
| Total assets | 8,935,969 | 9,103,814 | 9,436,054 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (377,961) | (378,259) | (379,218) |
| Tangible assets (non-GAAP) | 8,558,008 | 8,725,555 | 9,056,836 |
| Tangible common equity to tangible assets (non-GAAP) | 9.06 | 9.17 | 9.08 |
| (10) Net Interest Margin Rate (FTE) (non-GAAP) | |||
| Interest income and dividend income | 89,835 | 77,599 | 71,769 |
| Less: interest expense | (6,037) | (2,405) | (3,058) |
| Net interest income per consolidated statements of net income | 83,798 | 75,194 | 68,711 |
| Plus: taxable equivalent adjustment | 521 | 506 | 557 |
| Net interest income (FTE) (non-GAAP) | 84,319 | 75,700 | 69,268 |
| Net interest income (FTE) (annualized) | 334,526 | 303,633 | 274,812 |
| Average interest-earning assets | 8,287,889 | 8,535,384 | 8,769,425 |
| Net interest margin (FTE) (non-GAAP) | 4.04 | 3.56 | 3.14 |
All values are in US Dollars.
a3q22supplementaldeck
Third Quarter 2022 Earnings Supplement
Forward Looking Statements and Risk Factors This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result,” “expect,” “anticipate,” “estimate,” “forecast,” “project,” “intend,” “believe,” “assume,” “strategy,” “trend,” “plan,” “outlook,” “outcome,” “continue,” “remain,” “potential,” “opportunity,” “comfortable,” “current,” “position,” “maintain,” “sustain,” “seek,” “achieve,” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest- earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 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. Non-GAAP Financial Measures In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors’ understanding of S&T’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained within this presentation should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the respective Quarterly Reports in Exhibit 99.1 of Form 8-K for S&T Bancorp, Inc. and subsidiaries. 2
3 Third Quarter Overview RETURNS EARNINGS *Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.95 Net Income $37.2 million ROA 1.64% ROE 12.47% ROTE* 18.46% PPNR* 2.15% HIGHLIGHTS • Record EPS and net income • EPS and net income increased more than 28% compared to 2Q22 • Solid return metrics • NII increased 11% and NIM expanded 48 basis points to 4.04% due to higher interest rates • Dividend increased $0.01, or 3.3%, to $0.31 per share
Loan Change by Type: Balance Sheet • Loans, excluding PPP, increased 63 million, or 3.6% annualized, with consumer growth of $114 million • Deposits declined $202 million due to the rate environment Dollars in millions 4 CRE C&I Comm Const Residential Home Equity Consumer Cons Const ($75) ($50) ($25) $0 $25 $50 $75 DDA Int DDA MM . Savings CD ($75) ($50) ($25) $0 $25 $50 $75 Deposit Change by Type: 3Q22 2Q22 Var $135 $345 ($210) $997 $1,069 ($72) $7,092 $7,029 $63 $5 $12 ($7) $7,410 $7,612 ($202) Cash & Int Bear Bal Securities Loans Ex-PPP PPP Deposits ($300) ($200) ($100) $0 $100
Asset Quality ACL 3Q22 VS 2Q22: Dollars in millions 5 ASSET QUALITY TRENDS • ACL increased mainly due to higher qualitative reserve for macro environment • NPAs decreased 26%, or $10 million • Minimal net charge-off activity in 2022
• Net interest income increased $8.6 million, or 11%, due to higher rates • NIM expanded 48 bps to 4.04% • We are well-positioned to benefit from rising rates Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 6 Loan Rate Sensitivity Mix 51% 22% 27% Floating Adjustable Fixed
3Q22 3Q22 vs 2Q22 3Q22 vs 3Q21 Debit and Credit Card $4.8 $0.0 $0.2 Service Charges 4.4 0.2 0.5 Wealth 3.2 0.0 (0.3) Mortgage 0.4 (0.1) (1.8) Security Gain 0.2 0.2 0.2 Other 1.8 1.8 0.1 Noninterest Income $14.8 $2.1 ($1.1) Noninterest Income 7Dollars in millions Increased due to lower unfavorable deferred compensation valuation of $1.0 million and OREO gain of $0.6 million
3Q22 3Q22 vs 2Q22 3Q22 vs 3Q21 Salaries & Benefits $26.7 $1.9 $1.5 Data Processing 4.2 0.1 0.2 Occupancy 3.4 (0.2) (0.3) FF&E 2.9 0.0 0.2 Professional Services 1.9 (0.5) 0.3 Other Taxes 1.6 (0.1) (0.2) Marketing 1.4 (0.1) 0.5 FDIC 0.6 (0.3) (0.6) Other 6.9 0.4 0.8 Noninterest Expense $49.6 $1.2 $2.4 Increased due to higher salaries and benefits from a lower deferred compensation valuation and higher pension settlement cost Noninterest Expense Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 8
Capital Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 9 TCE / TA* • Capital levels remain strong • TCE / TA is relatively unchanged despite AOCI adjustments • $3.5 million of buybacks executed in 3Q22
3Q22 Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $147,781 Plus: amortization of intangibles (annualized), net of tax 1,181 Net income before amortization of intangibles (annualized) $148,962 Average total shareholders' equity $1,185,162 Less: average goodwill and other intangible assets, net of deferred tax liability (378,154) Average tangible equity (non-GAAP) $807,008 Return on average tangible shareholders' equity (non-GAAP) 18.46 % PPNR / Average Assets (non-GAAP) Income before taxes $46,427 Plus: Provision for credit losses 2,498 Total $48,925 Total (annualized) (non-GAAP) $194,106 Average assets $9,009,369 PPNR / Average Assets (non-GAAP) 2.15 % Tangible Common Equity / Tangible Assets (non-GAAP) Total shareholders' equity $1,153,181 Less: goodwill and other intangible assets, net of deferred tax liability (377,961) Tangible common equity (non-GAAP) $775,220 Total assets $8,935,969 Less: goodwill and other intangible assets, net of deferred tax liability (377,961) Tangible assets (non-GAAP) $8,558,008 Tangible common equity to tangible assets (non-GAAP) 9.06 % Appendix Definitions of GAAP to Non-GAAP Financial Measures 10
3Q22 2Q22 1Q22 4Q21 3Q21 Efficiency Ratio (non-GAAP) Noninterest expense $49,633 $48,424 $47,414 $50,189 $47,241 Net interest income per consolidated statements of net income 83,798 75,194 67,733 68,438 68,712 Plus: taxable equivalent adjustment 521 506 493 510 557 Net interest income (FTE) (non-GAAP) $84,319 $75,700 $68,226 $68,948 $69,269 Noninterest income 14,760 12,630 15,226 16,104 15,846 Less: net gains on sale of securities (198) — — — — Net interest income (FTE) (non-GAAP) plus noninterest income $98,881 $88,330 $83,452 $85,052 $85,115 Efficiency ratio (non-GAAP) 50.19 % 54.82 % 56.82 % 59.01 % 55.50 % Net Interest Margin Rate (FTE) (non-GAAP) Interest income and dividend income $89,835 $77,599 $70,109 $71,135 $71,769 Less: interest expense (6,037) (2,405) (2,376) (2,697) (3,058) Net interest income per consolidated statements of net income $83,798 $75,194 $67,733 $68,437 $68,711 Plus: taxable equivalent adjustment 521 506 493 510 557 Net interest income (FTE) (non-GAAP) $84,319 $75,700 $68,226 $68,947 $69,268 Net interest income (FTE) (annualized) $334,526 $303,633 $276,694 $273,537 $274,812 Average interest-earning assets $8,287,889 $8,535,384 $8,747,398 $8,768,329 $8,769,425 Net interest margin (FTE) (non-GAAP) 4.04 % 3.56 % 3.16 % 3.12 % 3.14 % Appendix Definitions of GAAP to Non-GAAP Financial Measures 11
Third Quarter 2022 Earnings Supplement
Document
| INVESTOR CONTACT:<br><br>Mark Kochvar<br><br>S&T Bancorp, Inc.<br><br>Chief Financial Officer<br><br>724.465.4826<br><br>mark.kochvar@stbank.com |
|---|
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Increases Quarterly Cash Dividend
INDIANA, Pa. - October 18, 2022 - The Board of Directors of S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, approved a $0.31 per share cash dividend on October 17, 2022. This is an increase of $0.01, or 3.3 percent, compared to a cash dividend of $0.30 per shared declared in the prior quarter and a $0.02, or 6.9 percent, increase compared to the same period in the prior year. The annualized yield using the October 17, 2022 closing price of $32.08 is 3.9 percent. The dividend is payable November 17, 2022 to shareholders of record on November 3, 2022.
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 Pennsylvania, Ohio and 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 in 2022. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.