stba-20201019
0000719220false00007192202020-10-192020-10-19

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 19, 2020
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $2.50 par valueSTBAThe 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 22, 2020 S&T Bancorp, Inc. announced by press release its earnings for the three and nine months ended September 30, 2020. 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, 2020, 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 included in this Current Report as Exhibit 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 hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of 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 Act or the Exchange Act, except as shall be expressly set forth by reference in such a filing.
Item 8.01 Other Events.
The Board of Directors of S&T declared a $0.28 per share cash dividend on October 19, 2020. A copy of the press release is attached hereto as Exhibit 99.3. This is comparable to a dividend of $0.28 per share declared in the same period last year. The dividend is payable November 19, 2020 to shareholders of record on November 5, 2020.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.Description of Exhibit
Press Release
Supplemental Information
Dividend Release
104Cover 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 22, 2020
Mark Kochvar
Senior Executive Vice President,
Chief Financial Officer


CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701
www.stbancorp.com
earnimage1a151.jpg
FOR IMMEDIATE RELEASE                


S&T Bancorp, Inc. Announces Third Quarter 2020 Results

Indiana, Pa. - October 22, 2020 - 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 $16.7 million, or $0.43 per diluted share, for the third quarter of 2020 compared to a net loss of ($33.1) million, or ($0.85) per diluted share, for the second quarter of 2020, and net income of $26.9 million, or $0.79 per diluted share, for the third quarter of 2019. The net loss in the second quarter of 2020 was due to a customer fraud resulting from a check kiting scheme which reduced net income by $46.3 million, or $1.19 per diluted share. S&T continues to pursue all available sources of recovery to mitigate the loss.

Third Quarter of 2020 Highlights:

•Return on average assets (ROA) was 0.72%, return on average equity (ROE) was 5.80% and return on average tangible equity (ROTE) (non-GAAP) was 8.96%. Pre-tax pre-provision to average assets (non-GAAP) was 1.61%.
•Net interest margin (FTE) (non-GAAP) was stable at 3.29% compared to 3.31% for the second quarter of 2020.
•Portfolio loans decreased $153.7 million compared to June 30, 2020.
•Deposits decreased $234.1 million to $7.6 billion at September 30, 2020 due to the pay down of $269.0 million of brokered deposits during the third quarter.
•Mortgage banking revenue increased $1.3 million compared to the second quarter due to continued strong refinance activity.
•The allowance for credit losses to total portfolio loans was 1.64% at September 30, 2020 compared to 1.52% at June 30, 2020. Excluding PPP loans, the allowance for credit losses to total portfolio loans was 1.77% at September 30, 2020 compared to 1.64% at June 30, 2020.
•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 navigate through this difficult environment related to the COVID-19 pandemic,” said Todd Brice, Chief Executive Officer. “I have every confidence in the S&T team to work through these difficult times, and I am impressed by their strong resilience and desire to help our customers and communities.”

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Net Interest Income

Net interest income decreased $0.8 million to $69.3 million for the third quarter of 2020 compared to $70.1 million for the second quarter of 2020. The decrease in net interest income was primarily due to lower loan balances as lower yields on loans were mostly offset by decreased rates on deposits. Average loans decreased $154.2 million compared to the second quarter of 2020. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) was stable at 3.29% for the third quarter of 2020 compared to 3.31% in the second quarter of 2020. Loan rates decreased 13 basis points to 3.87% and total interest-bearing deposit costs decreased 19 basis points to 0.48%.

Asset Quality

The provision for credit losses was $17.5 million for the third quarter of 2020 compared to $86.8 million in the second quarter of 2020. The customer fraud that resulted in a $58.7 million charge-off to the bank had a significant impact on the provision for credit losses during the second quarter of 2020. Net loan charge-offs were $12.9 million for the third quarter of 2020 compared to $68.1 million in the second quarter of 2020. During the third quarter, a $21.3 million CRE relationship, which was placed on nonaccrual in the first quarter of 2020, was charged down by $10.0 million leaving a remaining outstanding balance of $11.3 million. The relationship experienced continued deterioration as a result of the COVID-19 pandemic. Total nonperforming loans decreased $6.0 million to $84.1 million, or 1.13% of total loans, at September 30, 2020 compared to $90.1 million, or 1.19% of total loans at June 30, 2020. The allowance for credit losses was 1.64% of total portfolio loans as of September 30, 2020 compared to 1.52% at June 30, 2020. Excluding PPP loans, the allowance for credit losses was 1.77% of total portfolio loans at September 30, 2020 compared to 1.64% at June 30, 2020. The impact of the COVID-19 pandemic on our hotel loan portfolio and a $6.2 million increase in specific reserves contributed to the higher allowance for credit losses at September 30, 2020 compared to June 30, 2020.

Noninterest Income and Expense

Noninterest income increased $1.3 million to $16.5 million in the third quarter of 2020 compared to $15.2 million in the second quarter of 2020. Mortgage banking income increased $1.3 million compared to the second quarter of 2020 due to continued strong refinance activity. Both debit and credit card fees and service charges on deposit accounts increased due to improved customer activity compared to the second quarter of 2020.

Noninterest expense increased $4.8 million to $48.3 million for the third quarter of 2020 compared to $43.5 million in the second quarter of 2020. Salaries and employee benefits increased $3.2 million due to lower deferred origination costs related to PPP loans, higher pension costs due to an increase in retirements and a return to more normal medical costs compared to the second quarter of 2020. FDIC insurance increased $0.9 million due to the impact of recent results on certain components of the assessment calculation. Marketing expense increased
$0.8 million due to the timing of marketing initiatives and the redesign of our website.

Financial Condition

Total assets decreased $283.7 million to $9.2 billion at September 30, 2020 compared to $9.5 billion at June 30, 2020. Portfolio loans decreased $153.7 million compared to June 30, 2020 as loan originations continue to be impacted by the COVID-19 pandemic. The securities portfolio declined $86.2 million compared to June 30, 2020 mainly due to short term investments maturing in conjunction with our planned reduction of $269 million in brokered deposits. The decrease in brokered deposits resulted in a decline in total deposits of $234.1 million to $7.6 billion at September 30, 2020 compared to $7.9 billion at June 30, 2020. Customer deposits, which increased significantly during the second quarter of 2020, remained relatively unchanged in the third quarter despite decreases in deposit rates.
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All regulatory capital ratios increased at September 30, 2020 compared to June 30, 2020. 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 October 19, 2020. This is unchanged from the same period in the prior year. The dividend is payable November 19, 2020 to shareholders of record on November 5, 2020.

Conference Call

S&T will host its third quarter 2020 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, October 22, 2020. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “3rd Quarter 2020 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 29, 2020, by dialing 1.877.481.4010; the Conference ID is 37817.

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

S&T Bancorp, Inc. is a $9.2 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 recently ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. Established in 1902, S&T Bank 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”, “believe”, “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; 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
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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; 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; 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, 2019, 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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Consolidated Selected Financial Data
Unaudited
202020202019
ThirdSecondThird
(dollars in thousands, except per share data)QuarterQuarterQuarter
INTEREST AND DIVIDEND INCOME
Loans, including fees$72,263 $75,498 $75,080 
Investment securities:
Taxable3,473 3,791 3,552 
Tax-exempt885 959 787 
Dividends227 231 394 
Total Interest and Dividend Income76,848 80,479 79,813 
INTEREST EXPENSE
Deposits6,626 9,227 16,207 
Borrowings and junior subordinated debt securities946 1,104 2,410 
Total Interest Expense7,572 10,331 18,617 
NET INTEREST INCOME69,276 70,148 61,196 
Provision for credit losses17,485 86,759 4,913 
Net Interest Income (Loss) After Provision for Credit Losses51,791 (16,611)56,283 
NONINTEREST INCOME
Net gain on sale of securities— 142 — 
Debit and credit card4,171 3,612 3,475 
Mortgage banking3,964 2,623 594 
Service charges on deposit accounts2,820 2,342 3,412 
Wealth management2,522 2,586 2,101 
Commercial loan swap income499 945 1,464 
Other2,507 2,974 2,017 
Total Noninterest Income16,483 15,224 13,063 
NONINTEREST EXPENSE
Salaries and employee benefits24,571 21,419 19,936 
Data processing and information technology4,218 3,585 3,681 
Net occupancy3,441 3,437 2,898 
Furniture, equipment and software2,440 3,006 2,090 
Professional services and legal1,911 1,932 1,054 
FDIC insurance1,900 1,048 (675)
Marketing1,793 979 1,062 
Other taxes1,612 1,604 1,540 
Merger related expense— — 552 
Other6,360 6,468 5,529 
Total Noninterest Expense48,246 43,478 37,667 
Income (Loss) Before Taxes20,028 (44,865)31,679 
Income tax expense (benefit)3,323 (11,793)4,743 
Net Income (Loss)$16,705 ($33,072)$26,936 
Per Share Data
Shares outstanding at end of period39,251,638 39,253,460 34,244,719 
Average shares outstanding - diluted39,020,811 39,013,161 34,277,270 
Diluted earnings (loss) per share$0.43 ($0.85)$0.79 
Dividends declared per share$0.28 $0.28 $0.27 
Dividend yield (annualized)6.33 %4.78 %2.96 %
Dividends paid to net income65.61 %NM34.30 %
Book value$29.10 $28.93 $28.69 
Tangible book value (1)
$19.40 $19.22 $20.25 
Market value$17.69 $23.45 $36.53 
Profitability Ratios (Annualized)
Return on average assets0.72 %(1.41 %)1.45 %
Return on average shareholders' equity5.80 %(11.17 %)10.97 %
Return on average tangible shareholders' equity (2)
8.96 %(16.19 %)15.69 %
Efficiency ratio (FTE) (3)
55.75 %50.51 %50.09 %
NM - Not Meaningful
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Consolidated Selected Financial Data
Unaudited
Nine Months Ended September 30,
(dollars in thousands, except per share data)20202019
INTEREST INCOME
Loans, including fees$229,812 $223,200 
Investment securities:
Taxable11,547 10,989 
Tax-exempt2,646 2,466 
Dividends911 1,373 
Total Interest and Dividend Income244,916 238,028 
INTEREST EXPENSE
Deposits31,191 47,243 
Borrowings and junior subordinated debt securities4,265 8,406 
Total Interest Expense35,456 55,649 
NET INTEREST INCOME209,460 182,379 
Provision for credit losses124,294 12,767 
Net Interest Income After Provision for Credit Losses85,166 169,612 
NONINTEREST INCOME
Net gain on sale of securities142 — 
Debit and credit card 11,264 9,951 
Mortgage banking7,823 1,726 
Service charges on deposit accounts8,720 9,777 
Wealth management 7,471 6,210 
Commercial swap fee income3,928 3,147 
Other4,762 6,515 
Total Noninterest Income44,110 37,326 
NONINTEREST EXPENSE
Salaries and employee benefits67,326 61,135 
Data processing and information technology11,671 10,327 
Net occupancy10,643 8,883 
Furniture, equipment and software7,965 6,621 
Professional services and legal4,890 3,382 
FDIC insurance3,718 536 
Marketing3,883 3,514 
Other taxes4,816 4,182 
Merger related expense2,342 1,171 
Other20,861 17,187 
Total Noninterest Expense138,115 116,938 
(Loss) Income Before Taxes(8,839)90,000 
Income tax (benefit) expense(5,703)14,035 
Net (Loss) Income($3,136)$75,965 
Per Share Data
Average shares outstanding - diluted39,101,309 34,407,732 
Diluted (loss) earnings per share($0.08)$2.21 
Dividends declared per share$0.84 $0.81 
Dividends paid to net incomeNM36.59 %
Profitability Ratios (annualized)
Return on average assets(0.05 %)1.40 %
Return on average shareholders' equity(0.36 %)10.61 %
Return on average tangible shareholders' equity (6)
(0.27 %)15.30 %
Efficiency ratio (FTE) (7)
53.06 %52.54 %
NM - Not Meaningful
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Consolidated Selected Financial Data
Unaudited
202020202019
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
ASSETS
Cash and due from banks, including interest-bearing deposits$308,489 $351,365 $173,609 
Securities, at fair value718,169 804,366 669,226 
Loans held for sale16,724 14,259 8,371 
Commercial loans:
Commercial real estate3,290,138 3,345,513 2,922,197 
Commercial and industrial2,042,467 2,140,355 1,626,854 
Commercial construction477,429 459,264 314,813 
Total Commercial Loans5,810,034 5,945,132 4,863,864 
Consumer loans:
Residential mortgage950,887 971,023 770,882 
Home equity537,869 539,519 475,024 
Installment and other consumer80,735 79,816 74,460 
Consumer construction15,343 13,068 11,535 
Total Consumer Loans1,584,834 1,603,426 1,331,901 
Total Portfolio Loans7,394,868 7,548,558 6,195,765 
Allowance for credit losses(120,998)(114,609)(62,115)
Total Portfolio Loans, Net7,273,870 7,433,949 6,133,650 
Federal Home Loan Bank and other restricted stock, at cost15,777 15,151 25,397 
Goodwill373,417 373,289 287,446 
Other assets484,126 481,917 274,292 
Total Assets$9,190,572 $9,474,296 $7,571,991 
LIABILITIES
Deposits:
Noninterest-bearing demand$2,232,706 $2,250,958 $1,490,409 
Interest-bearing demand982,956 1,055,261 751,881 
Money market2,033,585 2,121,588 1,660,569 
Savings938,475 916,268 753,464 
Certificates of deposit1,446,096 1,523,841 1,326,369 
Total Deposits7,633,818 7,867,916 5,982,692 
Borrowings:
Securities sold under repurchase agreements42,706 92,159 13,925 
Short-term borrowings83,000 84,541 370,000 
Long-term borrowings49,076 49,489 69,156 
Junior subordinated debt securities64,068 64,053 45,619 
Total Borrowings238,850 290,242 498,700 
Other liabilities175,789 180,361 108,152 
Total Liabilities8,048,457 8,338,519 6,589,544 
SHAREHOLDERS' EQUITY
Total Shareholders' Equity1,142,115 1,135,777 982,447 
Total Liabilities and Shareholders' Equity$9,190,572 $9,474,296 $7,571,991 
Capitalization Ratios
Shareholders' equity / assets12.43 %11.99 %12.97 %
Tangible common equity / tangible assets (4)
8.64 %8.30 %9.52 %
Tier 1 leverage ratio9.11 %8.89 %10.20 %
Common equity tier 1 capital11.05 %10.70 %11.17 %
Risk-based capital - tier 111.46 %11.10 %11.49 %
Risk-based capital - total13.18 %12.74 %12.92 %
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Consolidated Selected Financial Data
Unaudited
202020202019
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Net Interest Margin (FTE) (QTD Averages)
ASSETS
Interest-bearing deposits with banks$213,0510.11%$163,0190.08%$53,7252.32%
Securities, at fair value759,0942.41%785,2292.56%661,7522.59%
Loans held for sale4,4323.09%9,9313.08%2,7123.98%
Commercial real estate3,322,6564.02%3,389,6164.23%2,922,7674.89%
Commercial and industrial2,107,7503.45%2,200,1483.61%1,566,3695.06%
Commercial construction469,2143.43%430,9123.75%282,1755.14%
Total Commercial Loans5,899,6203.77%6,020,6763.97%4,771,3114.96%
Residential mortgage954,8614.33%976,9164.20%753,6494.41%
Home equity536,7353.73%543,7703.69%469,5675.36%
Installment and other consumer79,6496.47%79,9446.34%72,6067.10%
Consumer construction14,4754.32%12,7584.58%11,0565.39%
Total Consumer Loans1,585,7204.24%1,613,3884.14%1,306,8784.91%
Total Portfolio Loans7,485,3403.87%7,634,0644.00%6,078,1894.95%
Total Loans7,489,7723.87%7,643,9954.00%6,080,9014.95%
Federal Home Loan Bank and other restricted stock15,1575.11%19,7093.75%19,9817.00%
Total Interest-earning Assets8,477,0743.65%8,611,9523.80%6,816,3594.70%
Noninterest-earning assets815,930817,767538,514
Total Assets$9,293,004$9,429,719$7,354,873
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$967,7350.18%$1,033,9050.24%$655,7350.72%
Money market2,074,8620.33%2,076,4830.50%1,709,2481.83%
Savings923,2080.07%887,3570.07%749,2870.24%
Certificates of deposit1,486,0161.16%1,560,8851.51%1,345,4741.97%
Total Interest-bearing Deposits5,451,8210.48%5,558,6300.67%4,459,7441.44%
Securities sold under repurchase agreements64,0000.25%85,3020.25%14,0300.73%
Short-term borrowings84,3100.38%178,2730.38%218,7992.47%
Long-term borrowings49,2692.52%49,7742.53%69,4212.68%
Junior subordinated debt securities64,0573.19%64,0443.58%45,6194.82%
Total Borrowings261,6361.44%377,3931.18%347,8692.75%
Total Interest-bearing Liabilities5,713,4570.53%5,936,0230.70%4,807,6131.54%
Noninterest-bearing liabilities2,433,6652,302,6761,573,549
Shareholders' equity1,145,8821,191,020973,711
Total Liabilities and Shareholders' Equity$9,293,004$9,429,719$7,354,873
Net Interest Margin (5)
3.29%3.31%3.62%
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Consolidated Selected Financial Data
Unaudited
Nine Months Ended September 30,
(dollars in thousands)20202019
Net Interest Margin (FTE) (YTD Averages)
ASSETS
Interest-bearing deposits with banks$158,7710.38%$52,4212.38%
Securities, at fair value776,9952.50%671,7272.65%
Loans held for sale5,4073.17%1,6934.11%
Commercial real estate3,373,4664.33%2,907,7924.97%
Commercial and industrial2,020,1793.82%1,544,9625.14%
Commercial construction428,9773.91%258,2395.28%
Total Commercial Loans5,822,6224.12%4,710,9935.04%
Residential mortgage974,1444.24%736,9724.43%
Home equity540,2204.09%466,9365.41%
Installment and other consumer79,7576.60%71,0217.17%
Consumer construction12,5874.49%10,5175.63%
Total Consumer Loans1,606,7084.31%1,285,4464.95%
Total Portfolio Loans7,429,3304.16%5,996,4395.02%
Total Loans7,434,7374.16%5,998,1325.02%
Federal Home Loan Bank and other restricted stock19,4735.38%21,8487.55%
Total Interest-earning Assets8,389,9763.94%6,744,1284.77%
Noninterest-earning assets772,404526,788
Total Assets$9,162,380$7,270,916
LIABILITIES AND SHAREHOLDERS' EQUITY
Interest-bearing demand$981,1740.33%$584,2800.54%
Money market2,048,4660.69%1,658,1871.88%
Savings880,6730.12%760,1280.25%
Certificates of deposit1,549,1771.50%1,389,6581.94%
Total Interest-bearing deposits5,459,4900.76%4,392,2531.44%
Securities sold under repurchase agreements60,0450.30%17,8120.63%
Short-term borrowings182,6231.02%259,9472.65%
Long-term borrowings50,2922.52%69,8862.79%
Junior subordinated debt securities64,0993.72%45,6195.02%
Total Borrowings357,0591.60%393,2642.86%
Total Interest-bearing Liabilities5,816,5490.81%4,785,5171.55%
Noninterest-bearing liabilities2,170,4471,528,573
Shareholders' equity1,175,384956,826
Total Liabilities and Shareholders' Equity$9,162,380$7,270,916
Net Interest Margin (8)
3.37%3.67%
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S&T Bancorp, Inc.
S&T Earnings Release -
10
Consolidated Selected Financial Data
Unaudited
202020202019
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Nonperforming Loans (NPL)
Commercial loans:% NPL% NPL% NPL
Commercial real estate$52,805 1.60%$61,643 1.84%$33,740 1.15%
Commercial and industrial12,498 0.61%8,484 0.40%4,206 0.26%
Commercial construction1,504 0.31%1,504 0.33%1,143 0.36%
Total Nonperforming Commercial Loans66,807 1.15%71,631 1.20%39,089 0.80%
Consumer loans:
Residential mortgage13,018 1.37%14,649 1.51%7,384 0.96%
Home equity4,106 0.76%3,814 0.71%3,492 0.74%
Installment and other consumer141 0.17%19 0.02%18 0.02%
Total Nonperforming Consumer Loans17,265 1.08%18,482 1.14%10,894 0.81%
Total Nonperforming Loans$84,072 1.13%$90,113 1.19%$49,983 0.81%
202020202019
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Loan Charge-offs (Recoveries)
Charge-offs$13,667 $68,304 $4,700 
Recoveries (754)(231)(423)
Net Loan Charge-offs (Recoveries)$12,913 $68,072 $4,277 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$— $58,671 $— 
Commercial real estate10,963 5,588 2,298 
Commercial and industrial1,267 3,060 1,257 
Commercial construction(1)(19)(1)
Total Commercial Loan Charge-offs (Recoveries)12,229 67,300 3,554 
Consumer loans:
Residential mortgage274 74 289 
Home equity204 16 13 
Installment and other consumer206 682 421 
Total Consumer Loan Charge-offs684 772 723 
Total Net Loan Charge-offs (Recoveries)$12,913 $68,072 $4,277 

Nine Months Ended September 30,
(dollars in thousands)20202019
Loan Charge-offs (Recoveries)
Charge-offs$93,415 $13,391 
Recoveries (1,273)(1,743)
Net Loan Charge-offs (Recoveries)$92,142$11,648 
Net Loan Charge-offs (Recoveries)
Commercial loans:
Customer fraud$58,671$— 
Commercial real estate16,9792,699 
Commercial and industrial14,5927,661 
Commercial construction(22)(4)
Total Commercial Loan Charge-offs/(Recoveries)90,22010,356 
Consumer loans:
Residential mortgage367251 
Home equity30151 
Installment and other consumer1,2541,072 
Consumer construction— (82)
Total Consumer Loan Charge-offs1,9221,292 
Total Net Loan Charge-offs (Recoveries)$92,142$11,648 
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S&T Bancorp, Inc.
S&T Earnings Release -
11
Consolidated Selected Financial Data
Unaudited
202020202019
ThirdSecondThird
(dollars in thousands)QuarterQuarterQuarter
Asset Quality Data
Nonperforming loans$84,072 $90,113 $49,983 
OREO2,317 2,740 1,724 
Nonperforming assets86,389 92,853 51,707 
Troubled debt restructurings (nonaccruing)18,648 31,755 14,496 
Troubled debt restructurings (accruing)18,478 15,536 38,434 
Total troubled debt restructurings37,126 47,291 52,930 
Nonperforming loans / total loans1.13 %1.19 %0.81 %
Nonperforming assets / total loans plus OREO1.17 %1.23 %0.83 %
Allowance for credit losses / total portfolio loans1.64 %1.52 %1.00 %
Allowance for credit losses / nonperforming loans144 %127 %124 %
Net loan charge-offs (recoveries)$12,913 $68,072 $4,277 
Net loan charge-offs (recoveries)(annualized) / average loans0.69 %3.58 %0.28 %


Nine Months Ended September 30,
(dollars in thousands)20202019
Asset Quality Data
Net loan charge-offs (recoveries)$92,142 $11,648 
Net loan charge-offs (recoveries)(annualized) / average loans1.66 %0.26 %


S&T Bancorp, Inc.
S&T Earnings Release -
12
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
202020202019
ThirdSecondThird
QuarterQuarterQuarter
(1) Tangible Book Value (non-GAAP)
 Total shareholders' equity$1,142,115 $1,135,777 $982,447 
      Less: goodwill and other intangible assets(382,681)(383,032)(289,538)
     Tax effect of other intangible assets1,946 2,046 439 
 Tangible common equity (non-GAAP)$761,380 $754,791 $693,348 
 Common shares outstanding39,252 39,263 34,245 
 Tangible book value (non-GAAP)$19.40 $19.22 $20.25 
(2) Return on Average Tangible Shareholders' Equity (non-GAAP)
  Net (loss) income (annualized)$66,455 ($133,016)$106,865 
       Plus: amortization of intangibles (annualized)2,619 2,623 647 
       Tax effect of amortization of intangibles (annualized)(550)(551)(136)
  Net (loss) income before amortization of intangibles (annualized)$68,524 ($130,944)$107,376 
  Average total shareholders' equity$1,145,882 $1,191,020 $973,711 
       Less: average goodwill and other intangible assets(382,780)(384,197)(289,622)
       Tax effect of average goodwill and other intangible assets1,999 2,116 457 
  Average tangible equity (non-GAAP)$765,101 $808,939 $684,546 
  Return on average tangible shareholders' equity (non-GAAP)8.96 %(16.19 %)15.69 %
(3) Efficiency Ratio (non-GAAP)
Noninterest expense$48,246 $43,478 $37,667 
Less: merger related expenses— — — 
Noninterest expense excluding nonrecurring items$48,246 $43,478 $37,667 
Net interest income per consolidated statements of net income$69,276 $70,148 $61,196 
     Less: net (gains) losses on sale of securities— (142)— 
     Plus: taxable equivalent adjustment780 847 934 
Net interest income (FTE) (non-GAAP)$70,056 $70,853 $62,130 
Noninterest income16,483 15,224 13,063 
Net interest income (FTE) (non-GAAP) plus noninterest income$86,539 $86,077 $75,193 
Efficiency ratio (non-GAAP)55.75 %50.51 %50.09 %
(4) Tangible Common Equity / Tangible Assets (non-GAAP)
 Total shareholders' equity$1,142,115 $1,135,777 $982,447 
      Less: goodwill and other intangible assets(382,681)(383,032)(289,538)
      Tax effect of goodwill and other intangible assets1,946 2,046 439 
 Tangible common equity (non-GAAP)$761,380 $754,791 $693,348 
 Total assets$9,190,572 $9,474,296 $7,571,991 
      Less: goodwill and other intangible assets(382,681)(383,032)(289,538)
      Tax effect of goodwill and other intangible assets1,946 2,046 439 
 Tangible assets (non-GAAP)$8,809,837 $9,093,310 $7,282,892 
 Tangible common equity to tangible assets (non-GAAP)8.64 %8.30 %9.52 %
(5) Net Interest Margin Rate (FTE) (non-GAAP)
 Interest income$76,848 $80,479 $79,813 
      Less: interest expense7,572 10,331 (18,617)
 Net interest income per consolidated statements of net income$69,276 $70,148 $61,196 
      Plus: taxable equivalent adjustment780 847 934 
 Net interest income (FTE) (non-GAAP)$70,056 $70,995 $62,130 
 Net interest income (FTE) (annualized)$278,701 $285,540 $246,494 
 Average earning assets$8,477,074 $8,611,952 $6,816,359 
 Net interest margin - (FTE) (non-GAAP)3.29 %3.31 %3.62 %
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S&T Bancorp, Inc.
S&T Earnings Release -
13
Consolidated Selected Financial Data
Unaudited
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures - continued:
2020
Third
Quarter
PTPP / Average Assets (non-GAAP)
Income before taxes$20,028 
Plus: Provision for credit losses17,485 
Total37,513 
Total (annualized) (non-GAAP)$149,237 
Average assets$9,293,004 
PTPP / Average Assets (non-GAAP)1.61 %
Nine Months Ended September 30,
20202019
(6) Return on Average Tangible Shareholders' Equity (non-GAAP)
  Net (loss) income (annualized)($4,189)$101,564 
  Plus: amortization of intangibles (annualized)2,595 680 
  Tax effect of amortization of intangibles (annualized)(545)(143)
  Net (loss) income before amortization of intangibles (annualized)($2,140)$102,101 
  Average total shareholders' equity$1,175,384 $956,826 
  Less: average goodwill and other intangible assets(383,000)(289,786)
  Tax effect of average goodwill and other intangible assets2,116 491 
  Average tangible equity (non-GAAP)$794,500 $667,531 
  Return on average tangible equity (non-GAAP)(0.27 %)15.30 %
(7) Efficiency Ratio (non-GAAP)
Noninterest expense$138,115 $116,938 
Less: merger related expenses(2,342)— 
Noninterest expense excluding nonrecurring items$135,773 $116,938 
Net interest income per consolidated statements of net income$209,460 $182,379 
Less: net (gains) losses on sale of securities(142)— 
Plus: taxable equivalent adjustment2,477 2,854 
Net interest income (FTE) (non-GAAP)$211,795 $185,233 
Noninterest income44,110 37,326 
Net interest income (FTE) (non-GAAP) plus noninterest income$255,905 $222,559 
Efficiency ratio (non-GAAP)53.06 %52.54 %
(8) Net Interest Margin Rate (FTE) (non-GAAP)
 Interest income$244,916 $238,028 
 Less: interest expense35,456 (55,649)
 Net interest income per consolidated statements of net income209,460 182,379 
 Plus: taxable equivalent adjustment2,477 2,854 
 Net interest income (FTE) (non-GAAP)$211,937 $185,233 
 Net interest income (FTE) (annualized)$283,098 $247,656 
 Average earning assets$8,389,976 $6,744,127 
 Net interest margin - (FTE) (non-GAAP)3.37 %3.67 %


- more -
S&T Bancorp, Inc.
S&T Earnings Release -
14
Consolidated Selected Financial Data
Unaudited
The following profitability metrics for the nine months ended September 30, 2020 are adjusted to exclude a $58.7 million loss related to a customer fraud.
2020
Nine Months Ended September 30,
Return on Average Tangible Shareholders' Equity (non-GAAP)
Net loss($3,136)
Provision for credit losses58,671 
Tax effect (12,321)
Net income excluding fraud$43,214 
Net income excluding fraud (annualized)$57,724 
Plus: amortization of intangibles (annualized)2,595 
Tax effect of amortization of intangibles (annualized)(545)
Net income before amortization of intangibles (annualized)$59,774 
Average total shareholders' equity$1,175,384 
Less: average goodwill and other intangible assets(383,000)
Tax effect of average goodwill and other intangible assets2,116 
Average tangible equity (non-GAAP)$794,500 
Return on average tangible shareholders' equity (non-GAAP)7.52 %
Return on Average Assets (non-GAAP)
Net income excluding fraud (annualized)$57,724 
Average total assets9,162,380 
Return on average assets (non-GAAP)0.63 %
Return on Average Equity (non-GAAP)
Net income excluding fraud (annualized)$57,724 
Average total shareholders' equity1,175,384 
Return on average assets (non-GAAP)4.91 %


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Third Quarter 2020 Earnings Supplement MEMBER FDIC

 
Forward Looking Statements and Risk Factors This information contains certain 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”, “believe”, “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 loan 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; 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; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the corona virus (“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; 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 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 therein 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

 
Third Quarter 2020 Highlights EPS: $ 0.43 • PTPP 1.61%, $37.5 million • NIM stability Net Income: • Mortgage banking $16.7 million • Moderate ACL build • Dividend of $0.28 declared Returns: ROA ROE ROTE 0.72% 5.80% 8.96% Asset ACL NCO Provision 1.64% Quality: 0.69% $17.5 million ex-PPP 1.77% Refer to appendix for reconciliation of non-GAAP financial measures 3

 
Third Quarter 2020 Key Metrics 2020 2020 2020 2019 Third Second Second Third Quarter Quarter Quarter Quarter Reported Metrics: Reported Ex-fraud* Net income (loss) $16.7 million ($33.1 million) $13.3 million $26.9 million Diluted earnings (loss) per share $0.43 ($0.85) $0.34 $0.79 Dividends declared per share $0.28 $0.28 $0.27 Book value $29.10 $28.93 $28.69 Tangible book value* $19.40 $19.22 $20.25 Return on average assets 0.72% (1.41)% 0.57 % 1.45% Return on average shareholders' equity 5.80% (11.17)% 4.48 % 10.97% Return on average tangible shareholders' equity* 8.96% (16.19)% 6.86 % 15.69% PTPP* $37.5 million $41.9 million $36.6 million PTPP / average assets* 1.61% 1.79% 1.97 % Efficiency ratio (FTE)* 55.75% 50.51% 50.09% Net interest margin (FTE)* 3.29% 3.31% 3.62% Credit Metrics: Nonperforming loans / loans 1.13 % 1.19 % 0.81 % Net loan charge-offs / average loans 0.69 % 3.58 % 0.49 % 0.28 % ACL / total portfolio loans 1.64 % 1.52 % 1.00 % ACL / total portfolio loans, ex-PPP 1.77 % 1.64 % NA Ex-fraud metrics exclude loss from customer fraud in Q2 2020 *Refer to appendix for reconciliation of non-GAAP financial measures 4

 
Third Quarter 2020 SBA PPP We dedicated substantial resources to the SBA PPP and approved over $550 million: Total Number of % of. Loan Size Balance Loans Loans. <$50,000 $32 1,441 49.1% <$150,000 66 770 26.3% <$350,000 84 366 12.5% >$350,000 368 355 12.1% Total $550 2,932 PPP loans impacted selected ratios as below: Excluding Including Impact Ratio PPP* PPP Net Interest Margin 3.36 % 3.29 % -0.07 % ACL / total portfolio loans 1.77 % 1.64 % -0.13 % Nonperforming loans / loans 1.23 % 1.13 % -0.10 % TCE / TA 9.22 % 8.64 % -0.58 % Leverage Ratio 9.71 % 9.11 % -0.60 % Data as of September 30, 2020 $ in millions *Refer to appendix for reconciliation of non-GAAP financial measures 5

 
Third Quarter 2020 Loan Modifications We continue to see declines in customers requiring needs-based payment deferrals and modifications to interest only periods. Modifications have been reduced to 5% of loans. June 30, 2020 August 31, 2020 September 30, 2020 Total Mod Mod Total Mod Mod Total Mod Mod Loan Type Balance Balance % Balance Balance % Balance Balance % 6/30/20 6/30/20 6/30/20 8/31/20 9/30/20 9/30/20 CRE $3,346 $993 30% $3,346 $386 12% $3,290 $322 10 % Resi Secured Business* 425 53 13% 425 6 1% 427 1 0 % Construction 459 47 10% 459 23 5% 477 2 0 % C&I 1,593 203 13% 1,593 36 2% 1,493 25 2 % Total Commercial 5,822 1,297 22% 5,822 451 8% 5,687 350 6 % Total Consumer 1,179 69 6% 1,179 0 0% 1,158 0 0 % Total $7,001 $1,365 20% $7,001 $451 6% $6,845 $350 5 % *Reported as Consumer Loans $ in millions Excludes PPP loans 6

 
Third Quarter 2020 Commercial Loan Modifications Commercial loan modifications have been reduced to $350 million or 6% of the outstanding balance: Total Modified % of Bal Total Modified % of Bal Loan Type Loan Type Balance Balance Modified Balance Balance Modified Other $495 $28 6 % Manufacturing $298 $6 2 % Multi-Family 455 12 3 % Services 257 2 1 % Offices 397 3 1 % Other 154 12 8 % Health Care 364 18 5 % Construction 133 1 0 % Flex/Mixed Use 299 7 2 % Real Estate Rent/Lease 113 2 2 % Manufacturing 242 5 2 % Transportation 117 1 1 % Hotels 243 230 95 % Public Admin 107 0 0 % Strip Malls 197 11 6 % Health Care 100 0 0 % Retail Space 195 6 3 % Wholesale Trade 91 0 0 % Storage 173 1 1 % Retail Trade 61 0 0 % Dealerships 113 0 0 % Floorplans 62 1 2 % Convenience Stores 58 0 0 % Total C&I 1,493 25 2 % Restaurants 59 1 2 % Total CRE 3,290 322 10 % Total Commercial $5,687 $350 6 % Resi Secured Business* 427 1 0 % Construction 477 2 0 % Total Real Estate $4,194 $325 8 % *Reported as Consumer Loans $ in millions, Total Balances as of September 30, 2020; Modified Balances reflect loans with active deferrals as of September 30, 2020, Excludes PPP loans 7

 
Third Quarter 2020 Hotels The COVID-19 pandemic is negatively impacting the hospitality industry and our hotel portfolio: Portfolio Total Modified Balance Balance 9/30/20 9/30/20 Balance $243 $230 Number 57 45 • 84% of the portfolio is with a Average Size $4.3 $5.1 Marriott, Hilton, Holiday Inn, or Hyatt chain. Internal Total • Pre-COVID LTV 58% Risk Rating Balance 9/30/20 Pass $8 Special Mention 115 Substandard 120 Total $243 $ in millions 8

 
Third Quarter 2020 Allowance for Credit Losses After adopting CECL in 2020, we have prudently built our ACL in response to the pandemic, its impact on our customers, and the changing economic outlook: $ in millions Portfolio Changes: Includes balance changes, internal risk rating changes, and net charge-offs Economic/Qualitative Factors: Includes changes to the reasonable and supportable forecast and changes to qualitative factors 9

 
Third Quarter 2020 Net Interest Income We are asset sensitive but have experienced core NIM stabilization: • Our ex-PPP NIM was stable from Q2 to Q3 • We reduced brokered deposits by $269 million in Q3 due to low-cost customer deposit growth • We significantly reduced deposit rates several times throughout Q2 and Q3 We are proactively managing our interest-bearing deposit costs: We expect favorable repricing on the following funding throughout the next nine months: Funding type Balance Rate CD maturities $838 1.38 % Long-term wholesale funding 46 2.53 % Total $884 1.44 % Data as of September 30, 2020 $ in millions 10

 
Third Quarter 2020 Capital We are well-capitalized and have sufficient excess capital: Key points: • The Leverage Ratio and TCE / TA are impacted by PPP. The ex-PPP Leverage Ratio is 9.71% and TCE / TA is 9.22%. • We are taking a prudent approach to capital management, given economic uncertainty. • Our internally-run capital stress test results demonstrate that we have adequate capital cushions. • We are utilizing the five-year CECL transition for regulatory capital purposes. Data as of September 30, 2020 $ in millions 11

 
Third Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2020 2020 2019 Third Second Third Quarter Quarter Quarter (1) Tangible Book Value (non-GAAP) Total shareholders' equity $1,142,115 $1,135,777 $982,447 Less: goodwill and other intangible assets (382,681) (383,032) (289,538) Tax effect of other intangible assets 1,946 2,046 439 Tangible common equity (non-GAAP) $761,380 $754,791 $693,348 Common shares outstanding 39,252 39,263 34,245 Tangible book value (non-GAAP) $19.40 $19.22 $20.25 (2) Return on Average Tangible Shareholders' Equity (non-GAAP) Net (loss) income (annualized) $66,455 ($133,016) $106,865 Plus: amortization of intangibles (annualized) 2,619 2,623 647 Tax effect of amortization of intangibles (annualized) (550) (551) (136) Net (loss) income before amortization of intangibles (annualized) $68,524 ($130,944) $107,376 Average total shareholders' equity $1,145,882 $1,191,020 $973,711 Less: average goodwill and other intangible assets (382,780) (384,197) (289,622) Tax effect of average goodwill and other intangible assets 1,999 2,116 457 Average tangible equity (non-GAAP) $765,101 $808,939 $684,546 Return on average tangible shareholders' equity (non-GAAP) 8.96 % (16.19) % 15.69 % (3) PTPP / Average Assets (non-GAAP) Income (Loss) Before Taxes $20,028 ($44,865) $31,679 Add: Provision for Credit Losses 17,485 86,759 4,913 Total $37,513 $41,894 $36,592 Total (annualized) (non-GAAP) $149,237 $168,497 $145,175 Average assets $9,293,004 $9,429,720 $7,354,873 PTPP / Average Assets (non-GAAP) 1.61 % 1.79 % 1.97 % 12

 
Third Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2020 2020 2019 Third Second Third Quarter Quarter Quarter (4) Efficiency Ratio (non-GAAP) Noninterest expense $48,246 $43,478 $37,667 Less: merger related expenses — — — Noninterest expense excluding nonrecurring items $48,246 $43,478 $37,667 Net interest income per consolidated statements of net income $69,276 $70,148 $61,196 Less: net (gains) losses on sale of securities — (142) — Plus: taxable equivalent adjustment 780 847 934 Net interest income (FTE) (non-GAAP) $70,056 $70,853 $62,130 Noninterest income 16,483 15,224 13,063 Net interest income (FTE) (non-GAAP) plus noninterest income $86,539 $86,077 $75,193 Efficiency ratio (non-GAAP) 55.75 % 50.51 % 50.09 % (5) Net Interest Margin Rate (FTE) (non-GAAP) Interest income $76,848 $80,479 $79,813 Less: interest expense 7,572 10,331 (18,617) Net interest income per consolidated statements of net income $69,276 $70,148 $61,196 Plus: taxable equivalent adjustment 780 847 934 Net interest income (FTE) (non-GAAP) $70,056 $70,995 $62,130 Net interest income (FTE) (annualized) $278,701 $285,540 $246,494 Average earning assets $8,477,074 $8,611,952 $6,816,359 Net interest margin - (FTE) (non-GAAP) 3.29 % 3.31 % 3.62 % 13

 
Third Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: The following profitability metrics are adjusted to exclude a $58.7 million loss related to a customer 2020 fraud in the second quarter ended June 30, 2020 and to exclude merger related expenses from the Second DNB merger in the first quarter ended March 31, 2020. Quarter (6) Return on Average Assets (non-GAAP) Net income excluding fraud and merger related expenses (annualized) $53,404 Average total assets 9,429,720 Return on average assets (non-GAAP) 0.57% (7) Return on Average Equity (non-GAAP) Net income excluding fraud and merger related expenses (annualized) $53,404 Average total shareholders' equity 1,191,020 Return on average shareholders' equity (non-GAAP) 4.48% (8) Return on Average Tangible Shareholders' Equity (non-GAAP) Net income ($33,072) Adjust for fraud and merger related expenses 58,671 Tax effect of fraud and merger related expenses (12,231) Net income excluding fraud and merger related expenses $13,278 Net income excluding fraud and merger related expenses (annualized) $53,404 Plus: amortization of intangibles (annualized) 2,623 Tax effect of amortization of intangibles (annualized) (551) Net income before amortization of intangibles (annualized) $55,476 Average total shareholders' equity $1,191,020 Less: average goodwill and other intangible assets (384,197) Tax effect of average goodwill and other intangible assets 2,116 Average tangible equity (non-GAAP) $808,940 Return on average tangible shareholders' equity (non-GAAP) 6.86% 14

 
Third Quarter 2020 Appendix Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: The following profitability metrics are adjusted to exclude a $58.7 million loss related to a customer 2020 fraud in the second quarter ended June 30, 2020 and to exclude merger related expenses from the Second DNB merger in the first quarter ended March 31, 2020. Quarter (9) Diluted (Loss) Earnings Per Share (non-GAAP) Diluted earnings per share ($0.85) Adjust for fraud and merger related expenses ($1.19) Diluted (loss) earnings per share excluding fraud and merger related expenses $0.34 15

 
Third Quarter 2020 Earnings Supplement MEMBER FDIC

 


CONTACT:
Mark Kochvar
Chief Financial Officer
724.465.4826
800 Philadelphia Street
Indiana, PA 15701
www.stbancorp.com
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FOR IMMEDIATE RELEASE

S&T Bancorp, Inc. Declares Dividend
Indiana, Pa. - October 20, 2020 - The Board of Directors of 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, declared a $0.28 per share cash dividend at its regular meeting held October 19, 2020. This is comparable to a common stock dividend of $0.28 per share declared in the same period in the prior year. The annualized yield using the October 19, 2020 closing price of $19.90 is 5.6 percent. The dividend is payable November 19, 2020 to shareholders of record on November 5, 2020.
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 recently ranked #1 in customer satisfaction with retail banking in the Mid-Atlantic including best in communication and advice by J.D. Power. Established in 1902, S&T Bank 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.