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
April 18,2022
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 April 21, 2022 S&T Bancorp, Inc. announced by press release its earnings for the three months ended
March 31, 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 months ended March 31, 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 declared a $0.30 per share cash dividend at its regular meeting held April 18, 2022. A copy of the press release is attached hereto as Exhibit 99.3. This is an increase of $0.01, or 3.4 percent, compared to a common stock dividend of $0.29 per share declared in the prior quarter and a $0.02, or 7.1 percent, increase compared to the same period in the prior year. The annualized yield using the April 18, 2022 closing price of $28.07 is 4.3 percent. The dividend is payable May 19, 2022 to shareholders of record on May 5, 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 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 | |
| April 21, 2022 | Mark Kochvar<br>Senior Executive Vice President,<br>Chief Financial Officer |
Document
| CONTACT:<br><br>Mark Kochvar<br><br>Chief Financial Officer<br><br>724.465.4826<br><br>mark.kochvar@stbank.com<br><br>stbancorp.com |
|---|
FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces First Quarter 2022 Net Income
Indiana, Pa. - April 21, 2022 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, with operations in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York, announced net income of $29.1 million, or $0.74 per diluted share, for the first quarter of 2022 compared to net income of $22.5 million, or $0.57 per diluted share, for the fourth quarter of 2021 and net income of $31.9 million, or $0.81 per diluted share, for the first quarter of 2021.
First Quarter of 2022 Highlights:
•Return on average assets (ROA) of 1.25%, return on average equity (ROE) of 9.88% and return on average tangible equity (ROTE) (non-GAAP) of 14.61%.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) of 1.52%.
•Strong consumer loan growth of $38.6 million, or 9.8% annualized, compared to December 31, 2021.
•Total deposits remain stable with an improvement in the overall deposit mix to lower costing products compared to December 31, 2021.
•Nonperforming assets decreased $20.1 million, or 25%, compared to December 31, 2021.
•Net loan recoveries of $2.0 million drove a negative provision for credit losses of $0.5 million for the first quarter of 2022.
•S&T Bank was named highest in overall customer satisfaction with retail banking in the Pennsylvania region according to J.D. Power 2022 U.S. Retail Banking Satisfaction Study.*
•S&T's Board of Directors approved a $0.01 per share, or 3.4%, increase in the quarterly cash dividend to $0.30 per share compared to a $0.29 per share dividend declared in the prior quarter and a $0.02, or 7.1 percent, increase compared to the same period in the prior year.
"There is a lot to be proud of at S&T this quarter including our recognition by J.D. Power as the highest in overall customer satisfaction with retail banking in the Pennsylvania region. We are honored that our customers have great confidence and trust in us," said Chris McComish, chief executive officer. "During the quarter, we saw meaningful improvement in our credit quality, strong growth in our consumer loan portfolio and a better net interest margin with an improved outlook."
Net Interest Income
Net interest income decreased $0.7 million to $67.7 million for the first quarter of 2022 compared to $68.4 million for the fourth quarter of 2021. Net interest income related to Paycheck Protection Program (PPP) loans decreased $1.4 million to $1.7 million for the first quarter of 2022 compared to $3.1 million in the fourth quarter of 2021. Net interest income, excluding PPP, increased by $0.7 million compared to the prior quarter, in part due to higher average loans excluding PPP of $54.1 million compared to the prior quarter. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased 4 basis points to 3.16% compared to 3.12% in the prior quarter. The increase in NIM (FTE) (non-GAAP) was primarily due to an improved asset mix and higher loan and securities yields offset by lower PPP.
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Asset Quality
Asset quality improved with a $20.1 million, or 25%, decrease in nonperforming assets compared to December 31, 2021. The decrease primarily related to the sale of an other real estate owned (OREO) property which reduced nonperforming assets by $6.3 million, the return to accrual of $4.6 million of hotel loans due to improved operating performance and the pay-off of a $4.2 million commercial and industrial (C&I) nonperforming loan. Nonperforming assets to total loans plus OREO was 0.85% at March 31, 2022 compared to 1.13% at December 31, 2021. Net loan recoveries were $2.0 million for the first quarter of 2022 compared to net loan charge-offs of $17.7 million in the fourth quarter of 2021. The net recoveries primarily related to a $2.5 million recovery on a C&I relationship during the first quarter of 2022. The provision for credit losses was negative $0.5 million for the first quarter of 2022 compared to $7.1 million in the fourth quarter of 2021. The negative provision was mainly due to the recovery for the first quarter of 2022. The allowance for credit losses was 1.43% of total portfolio loans as of March 31, 2022 compared to 1.41% at December 31, 2021.
Noninterest Income and Expense
Noninterest income decreased $0.9 million to $15.2 million in the first quarter of 2022 compared to $16.1 million in the fourth quarter of 2021. Other income decreased $0.9 million primarily related to an unfavorable market valuation for a deferred compensation plan. Mortgage banking income decreased $0.5 million due to decreased activity with rising interest rates. Offsetting these decreases was an increase in debit and credit card fees of $0.6 million related to higher debit card activity. Noninterest expense decreased $2.8 million to $47.4 million for the first quarter of 2022 mainly due to a decrease of $3.4 million in salaries and employee benefits related to higher incentives in the fourth quarter of 2021. Other expense increased $0.5 million related to higher OREO expense compared to the fourth quarter of 2021.
Financial Condition
Total assets were $9.4 billion at March 31, 2022 compared to $9.5 billion at December 31, 2021. Securities increased $117.4 million compared to December 31, 2021 due to cash being redeployed to higher yielding assets. Total portfolio loans excluding PPP increased by $10.3 million compared to December 31, 2021. The consumer loan portfolio grew $38.6 million, or 9.8% annualized, with growth in all consumer categories compared to December 31, 2021. Total deposits remain stable with an improvement in the overall deposit mix to lower costing products compared to December 31, 2021. S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
S&T's Board of Directors approved a $0.01 per share, or 3.4%, increase in the quarterly cash dividend to $0.30 per share on April 18, 2022. This dividend compares to a $0.28 per share dividend declared in the same period in the prior year. The dividend is payable May 19, 2022 to shareholders of record on May 5, 2022.
Conference Call
S&T will host its first quarter 2022 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 21, 2022. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “1st 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 April 28, 2022, by dialing 1.877.481.4010; the Conference ID is 44915.
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About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.4 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bank recently received the highest ranking in customer satisfaction for retail banking in the Pennsylvania region by J.D. Power. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.
*S&T Bank received the highest score in Pennsylvania in the J.D. Power 2022 U.S. Retail Banking Satisfaction Study of customers’ satisfaction with their primary bank. Visit jdpower.com/awards for more details.
This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, “believe”, “assume”, “strategy”, “trend”, “plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; changes in accounting policies, practices, or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; our ability to successfully manage our CEO transition; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the coronavirus (“COVID-19”) pandemic, both in our principal area of operations and nationally, 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,
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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 | 2021 | 2021 | |
| --- | --- | --- | --- |
| First | Fourth | First | |
| (dollars in thousands, except per share data) | Quarter | Quarter | Quarter |
| INTEREST AND DIVIDEND INCOME | |||
| Loans, including fees | 64,593 | 66,373 | 70,232 |
| Investment Securities: | |||
| Taxable | 4,936 | 4,173 | 3,563 |
| Tax-exempt | 482 | 495 | 813 |
| Dividends | 98 | 94 | 173 |
| Total Interest and Dividend Income | 70,109 | 71,135 | 74,781 |
| INTEREST EXPENSE | |||
| Deposits | 1,853 | 2,186 | 3,481 |
| Borrowings and junior subordinated debt securities | 523 | 511 | 641 |
| Total Interest Expense | 2,376 | 2,697 | 4,122 |
| NET INTEREST INCOME | 67,733 | 68,438 | 70,659 |
| Provision for credit losses | (512) | 7,128 | 3,137 |
| Net Interest Income After Provision for Credit Losses | 68,245 | 61,310 | 67,522 |
| NONINTEREST INCOME | |||
| Net gain on sale of securities | — | — | — |
| Debit and credit card | 5,063 | 4,467 | 4,162 |
| Service charges on deposit accounts | 3,974 | 4,001 | 3,474 |
| Wealth management | 3,242 | 3,314 | 2,944 |
| Mortgage banking | 1,015 | 1,528 | 4,310 |
| Other | 1,932 | 2,794 | 2,346 |
| Total Noninterest Income | 15,226 | 16,104 | 17,236 |
| NONINTEREST EXPENSE | |||
| Salaries and employee benefits | 23,712 | 27,144 | 23,327 |
| Data processing and information technology | 4,435 | 4,668 | 4,225 |
| Occupancy | 3,882 | 3,624 | 3,827 |
| Furniture, equipment and software | 2,777 | 2,897 | 2,640 |
| Professional services and legal | 1,949 | 1,650 | 1,531 |
| Other taxes | 1,537 | 1,545 | 1,436 |
| Marketing | 1,361 | 1,346 | 1,322 |
| FDIC insurance | 937 | 1,044 | 1,046 |
| Other | 6,824 | 6,271 | 6,226 |
| Total Noninterest Expense | 47,414 | 50,189 | 45,580 |
| Income Before Taxes | 36,057 | 27,225 | 39,178 |
| Income tax expense | 6,914 | 4,748 | 7,276 |
| Net Income | 29,143 | 22,477 | 31,902 |
| Per Share Data | |||
| Shares outstanding at end of period | 39,351,688 | 39,351,194 | 39,268,359 |
| Average shares outstanding - diluted | 39,089,933 | 39,082,285 | 39,021,208 |
| Diluted earnings per share | 0.74 | 0.57 | 0.81 |
| Dividends declared per share | 0.29 | 0.29 | 0.28 |
| Dividend yield (annualized) | 3.92 | 3.68 | 3.34 |
| Dividends paid to net income | 39.06 | 50.64 | 34.40 |
| Book value | 30.11 | 30.66 | 29.75 |
| Tangible book value (1) | 20.49 | 21.03 | 20.08 |
| Market value | 29.58 | 31.52 | 33.50 |
| Profitability Ratios (Annualized) | |||
| Return on average assets | 1.25 | 0.94 | 1.42 |
| Return on average shareholders' equity | 9.88 | 7.39 | 11.15 |
| Return on average tangible shareholders' equity (2) | 14.61 | 10.95 | 16.78 |
| Pre-provision net revenue/ average assets (3) | 1.52 | 1.44 | 1.89 |
| Efficiency ratio (FTE) (4) | 56.82 | 59.01 | 51.47 |
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 | |
|---|---|---|---|
| 2022 | 2021 | 2021 | |
| --- | --- | --- | --- |
| First | Fourth | First | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| ASSETS | |||
| Cash and due from banks, including interest-bearing deposits | 823,757 | 922,215 | 671,429 |
| Securities, at fair value | 1,028,218 | 910,793 | 817,299 |
| Loans held for sale | 1,346 | 1,522 | 12,794 |
| Commercial loans: | |||
| Commercial real estate | 3,257,955 | 3,236,653 | 3,284,555 |
| Commercial and industrial | 1,675,316 | 1,728,969 | 1,931,711 |
| Commercial construction | 398,592 | 440,962 | 460,417 |
| Total Commercial Loans | 5,331,863 | 5,406,584 | 5,676,683 |
| Consumer loans: | |||
| Residential mortgage | 912,531 | 899,956 | 881,245 |
| Home equity | 581,821 | 564,219 | 530,350 |
| Installment and other consumer | 112,297 | 107,928 | 80,646 |
| Consumer construction | 25,399 | 21,303 | 14,244 |
| Total Consumer Loans | 1,632,048 | 1,593,406 | 1,506,485 |
| Total Portfolio Loans | 6,963,911 | 6,999,990 | 7,183,168 |
| Allowance for credit losses | (99,915) | (98,576) | (115,101) |
| Total Portfolio Loans, Net | 6,863,996 | 6,901,414 | 7,068,067 |
| Federal Home Loan Bank and other restricted stock, at cost | 9,349 | 9,519 | 12,199 |
| Goodwill | 373,424 | 373,424 | 373,424 |
| Other assets | 332,191 | 369,642 | 373,767 |
| Total Assets | 9,432,281 | 9,488,529 | 9,328,979 |
| LIABILITIES | |||
| Deposits: | |||
| Noninterest-bearing demand | 2,740,315 | 2,748,586 | 2,539,594 |
| Interest-bearing demand | 1,070,656 | 979,133 | 976,225 |
| Money market | 1,992,916 | 2,070,579 | 2,002,857 |
| Savings | 1,117,985 | 1,110,155 | 1,036,927 |
| Certificates of deposit | 1,038,586 | 1,088,071 | 1,320,425 |
| Total Deposits | 7,960,458 | 7,996,524 | 7,876,028 |
| Borrowings: | |||
| Securities sold under repurchase agreements | 70,112 | 84,491 | 67,417 |
| Short-term borrowings | — | — | — |
| Long-term borrowings | 22,171 | 22,430 | 23,282 |
| Junior subordinated debt securities | 54,408 | 54,393 | 64,097 |
| Total Borrowings | 146,691 | 161,314 | 154,796 |
| Other liabilities | 140,182 | 124,237 | 129,877 |
| Total Liabilities | 8,247,331 | 8,282,075 | 8,160,701 |
| SHAREHOLDERS' EQUITY | |||
| Total Shareholders' Equity | 1,184,950 | 1,206,454 | 1,168,278 |
| Total Liabilities and Shareholders' Equity | 9,432,281 | 9,488,529 | 9,328,979 |
| Capitalization Ratios | |||
| Shareholders' equity / assets | 12.56 | 12.71 | 12.52 |
| Tangible common equity / tangible assets (5) | 8.91 | 9.08 | 8.81 |
| Tier 1 leverage ratio | 9.85 | 9.74 | 9.71 |
| Common equity tier 1 capital | 12.26 | 12.03 | 11.84 |
| Risk-based capital - tier 1 | 12.67 | 12.43 | 12.26 |
| Risk-based capital - total | 14.18 | 13.79 | 13.93 |
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 | 2021 | 2021 | |
| --- | --- | --- | --- |
| First | Fourth | First | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| Net Interest Margin (FTE) (QTD Averages) | |||
| ASSETS | |||
| Interest-bearing deposits with banks | 756,141 | 877,738 | 302,219 |
| Securities, at fair value | 1,002,212 | 883,066 | 782,118 |
| Loans held for sale | 1,545 | 2,057 | 6,360 |
| Commercial real estate | 3,257,238 | 3,252,946 | 3,253,641 |
| Commercial and industrial | 1,712,865 | 1,729,014 | 1,957,459 |
| Commercial construction | 409,264 | 446,219 | 485,269 |
| Total Commercial Loans | 5,379,367 | 5,428,179 | 5,696,369 |
| Residential mortgage | 896,268 | 889,758 | 897,427 |
| Home equity | 570,781 | 558,158 | 532,708 |
| Installment and other consumer | 109,972 | 103,450 | 79,907 |
| Consumer construction | 21,833 | 16,203 | 15,908 |
| Total Consumer Loans | 1,598,854 | 1,567,569 | 1,525,950 |
| Total Portfolio Loans | 6,978,221 | 6,995,748 | 7,222,319 |
| Total Loans | 6,979,765 | 6,997,805 | 7,228,679 |
| Federal Home Loan Bank and other restricted stock | 9,280 | 9,720 | 11,242 |
| Total Interest-earning Assets | 8,747,398 | 8,768,329 | 8,324,259 |
| Noninterest-earning assets | 709,246 | 722,029 | 756,273 |
| Total Assets | 9,456,644 | 9,490,357 | 9,080,532 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||
| Interest-bearing demand | 986,639 | 967,826 | 895,891 |
| Money market | 2,055,857 | 2,063,447 | 1,968,779 |
| Savings | 1,109,048 | 1,090,211 | 995,228 |
| Certificates of deposit | 1,070,189 | 1,147,664 | 1,344,604 |
| Total Interest-bearing Deposits | 5,221,733 | 5,269,148 | 5,204,503 |
| Securities sold under repurchase agreements | 81,790 | 76,171 | 64,653 |
| Short-term borrowings | — | — | 25,556 |
| Long-term borrowings | 22,310 | 22,566 | 23,471 |
| Junior subordinated debt securities | 54,398 | 54,383 | 64,088 |
| Total Borrowings | 158,498 | 153,120 | 177,768 |
| Total Interest-bearing Liabilities | 5,380,231 | 5,422,269 | 5,382,271 |
| Noninterest-bearing liabilities | 2,879,718 | 2,861,873 | 2,538,149 |
| Shareholders' equity | 1,196,694 | 1,206,216 | 1,160,113 |
| Total Liabilities and Shareholders' Equity | 9,456,644 | 9,490,357 | 9,080,532 |
| Net Interest Margin (6) |
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 | | 2021 | | 2021 | | | --- | --- | --- | --- | --- | --- | --- | | | First | | Fourth | | First | | | (dollars in thousands) | Quarter | | Quarter | | Quarter | | | Nonperforming Loans (NPL) | | | | | | | | Commercial loans: | | % NPL | | % NPL | | % NPL | | Commercial real estate | $26,699 | 0.82% | $32,892 | 1.02% | $98,606 | 3.00% | | Commercial and industrial | 14,673 | 0.90% | 19,810 | 1.15% | 18,145 | 0.94% | | Commercial construction | 864 | 0.22% | 2,471 | 0.56% | 384 | 0.08% | | Commercial loan held for sale | — | —% | — | —% | 2,798 | NM | | Total Nonperforming Commercial Loans | 42,236 | 0.79% | 55,173 | 1.02% | 119,933 | 2.11% | | Consumer loans: | | | | | | | | Residential mortgage | 7,450 | 0.82% | 8,227 | 0.91% | 11,737 | 1.33% | | Home equity | 2,713 | 0.47% | 2,733 | 0.48% | 3,441 | 0.65% | | Installment and other consumer | 125 | 0.11% | 158 | 0.15% | 100 | 0.12% | | Total Nonperforming Consumer Loans | 10,287 | 0.63% | 11,118 | 0.70% | 15,278 | 1.01% | | Total Nonperforming Loans | $52,524 | 0.75% | $66,291 | 0.95% | $135,211 | 1.88% | | NM - not meaningful | | | | | | || | 2022 | 2021 | 2021 | | --- | --- | --- | --- | | | First | Fourth | First | | (dollars in thousands) | Quarter | Quarter | Quarter | | Loan Charge-offs (Recoveries) | | | | | Charge-offs | $982 | $18,048 | $6,532 | | Recoveries | (3,019) | (393) | (721) | | Net Loan (Recoveries) Charge-offs | ($2,037) | $17,655 | $5,812 | | Net Loan Charge-offs (Recoveries) | | | | | Commercial loans: | | | | | Commercial real estate | $178 | $1,352 | $698 | | Commercial and industrial | (2,507) | 16,053 | 4,913 | | Commercial construction | (1) | (10) | (1) | | Total Commercial Loan (Recoveries) Charge-offs | (2,330) | 17,395 | 5,610 | | Consumer loans: | | | | | Residential mortgage | 81 | 104 | 71 | | Home equity | (20) | 8 | 232 | | Installment and other consumer | 232 | 148 | (102) | | Total Consumer Loan Charge-offs (Recoveries) | 293 | 260 | 202 | | Total Net Loan (Recoveries) Charge-offs | ($2,037) | $17,655 | $5,812 | | | 2022 | 2021 | 2021 | | --- | --- | --- | --- | | | First | Fourth | First | | (dollars in thousands) | Quarter | Quarter | Quarter | | Asset Quality Data | | | | | Nonperforming loans | 52,524 | 66,291 | 135,211 | | OREO | 7,028 | 13,313 | 1,620 | | Total Nonperforming assets | 59,552 | 79,604 | 136,831 | | Troubled debt restructurings (nonaccruing) | 15,389 | 21,774 | 29,983 | | Troubled debt restructurings (accruing) | 10,739 | 9,921 | 17,916 | | Total troubled debt restructurings | 26,128 | 31,695 | 47,899 | | Nonperforming loans / total loans | 0.75 | 0.95 | 1.88 | | Nonperforming assets / total loans plus OREO | 0.85 | 1.13 | 1.90 | | Allowance for credit losses / total portfolio loans | 1.43 | 1.41 | 1.60 | | Allowance for credit losses / total portfolio loans excluding PPP | 1.44 | 1.43 | 1.72 | | Allowance for credit losses / nonperforming loans | 190 | 149 | 85 | | Net loan (recoveries) charge-offs | (2,037) | 17,655 | 5,812 | | Net loan (recoveries) charge-offs (annualized) / average loans | (0.12 | 1.02 | 0.33 |
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 |
|---|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| First | Fourth | First | |
| (dollars and shares in thousands) | Quarter | Quarter | Quarter |
| 4Q21 | 1Q21 | ||
| (1) Tangible Book Value (non-GAAP) | |||
| Total shareholders' equity | 1,184,950 | 1,206,454 | 1,168,278 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (378,557) | (378,871) | (379,911) |
| Tangible common equity (non-GAAP) | 806,393 | 827,583 | 788,367 |
| Common shares outstanding | 39,352 | 39,351 | 39,268 |
| Tangible book value (non-GAAP) | 20.49 | 21.03 | 20.08 |
| (2) Return on Average Tangible Shareholders' Equity (non-GAAP) | |||
| Net income (annualized) | 118,192 | 89,176 | 129,378 |
| Plus: amortization of intangibles (annualized), net of tax | 1,276 | (366) | 1,464 |
| Net income before amortization of intangibles (annualized) | 119,468 | 90,552 | 130,842 |
| Average total shareholders' equity | 1,196,694 | 1,206,216 | 1,160,113 |
| Less: average goodwill and other intangible assets, net of deferred tax liability | (378,761) | (379,090) | (380,144) |
| Average tangible equity (non-GAAP) | 817,932 | 827,126 | 779,969 |
| Return on average tangible shareholders' equity (non-GAAP) | 14.61 | 10.95 | 16.78 |
| (3) PPNR / Average Assets (non-GAAP) | |||
| Income before taxes | 36,057 | 27,225 | 39,178 |
| Plus: Provision for credit losses | (512) | 7,128 | 3,137 |
| Total | 35,545 | 34,353 | 42,315 |
| Total (annualized) (non-GAAP) | 144,155 | 136,292 | 171,611 |
| Average assets | 9,456,644 | 9,490,357 | 9,080,532 |
| PPNR / Average Assets (non-GAAP) | 1.52 | 1.44 | 1.89 |
| (4) Efficiency Ratio (non-GAAP) | |||
| Noninterest expense | 47,414 | 50,189 | 45,580 |
| Net interest income per consolidated statements of net income | 67,733 | 68,438 | 70,659 |
| Plus: taxable equivalent adjustment | 493 | 510 | 664 |
| Net interest income (FTE) (non-GAAP) | 68,226 | 68,948 | 71,323 |
| Noninterest income | 15,226 | 16,104 | 17,236 |
| Less: net (gains) losses on sale of securities | — | — | — |
| Net interest income (FTE) (non-GAAP) plus noninterest income | 83,452 | 85,052 | 88,560 |
| Efficiency ratio (non-GAAP) | 56.82 | 59.01 | 51.47 |
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 |
|---|
Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
| 2022 | 2021 | 2021 | |
|---|---|---|---|
| First | Fourth | First | |
| (dollars in thousands) | Quarter | Quarter | Quarter |
| (5) Tangible Common Equity / Tangible Assets (non-GAAP) | |||
| Total shareholders' equity | 1,184,950 | 1,206,454 | 1,168,278 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (378,557) | (378,871) | (379,911) |
| Tangible common equity (non-GAAP) | 806,393 | 827,583 | 788,367 |
| Total assets | 9,432,281 | 9,488,529 | 9,328,979 |
| Less: goodwill and other intangible assets, net of deferred tax liability | (378,557) | (378,871) | (379,911) |
| Tangible assets (non-GAAP) | 9,053,724 | 9,109,658 | 8,949,068 |
| Tangible common equity to tangible assets (non-GAAP) | 8.91 | 9.08 | 8.81 |
| (6) Net Interest Margin Rate (FTE) (non-GAAP) | |||
| Interest income and dividend income | 70,109 | 71,135 | 74,781 |
| Less: interest expense | (2,376) | (2,697) | (4,122) |
| Net interest income per consolidated statements of net income | 67,733 | 68,438 | 70,659 |
| Plus: taxable equivalent adjustment | 493 | 510 | 664 |
| Net interest income (FTE) (non-GAAP) | 68,226 | 68,948 | 71,323 |
| Net interest income (FTE) (annualized) | 276,694 | 273,537 | 289,253 |
| Average interest- earning assets | 8,747,398 | 8,768,329 | 8,324,259 |
| Net interest margin (FTE) (non-GAAP) | 3.16 | 3.12 | 3.47 |
All values are in US Dollars.
a1q22earningssupplementf
First 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 First Quarter Overview RETURNS EARNINGS 1S&T Bank received the highest score in Pennsylvania in the J.D. Power 2022 U.S. Retail Banking Satisfaction Study of customers’ satisfaction with their primary bank. Visit jdpower.com/awards for more details. 2Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.74 Net Income $29.1 million ROA 1.25% ROE 9.88% ROTE2 14.61% PPNR2 1.52% HIGHLIGHTS • Solid return metrics for the quarter • Dividend increased $0.01, or 3.4%, to $0.30 per share • S&T Bank was named highest in overall customer satisfaction with retail banking in the Pennsylvania region according to J.D. Power 2022 U.S. Retail Banking Satisfaction Study1 • Asset quality improvement with 25% decrease in nonperforming assets • Net loan recoveries of $2.0 million drove a negative provision of $0.5 million
1Q22 VS 4Q21: Balance Sheet • Consumer business drove strong growth of $38.6 million, or 9.8% annualized • Deposits remain stable with an improvement in the overall deposit mix to lower costing products • Securities increased $117.4 million due to cash being redeployed to higher yielding assets Dollars in millions 4 1Q22 4Q21 Variance $824 $922 ($98) $1,028 $911 $117 $6,922 $6,912 $10 $42 $88 ($46) $7,960 $7,997 ($37) Cash & Int Bear Bal Securities Loans Ex-PPP PPP Deposits ($100) ($50) $0 $50 $100 $150
Asset Quality ACL 1Q22 VS 4Q21: Dollars in millions 5 ASSET QUALITY TRENDS • Net loan recoveries of $2.0 million drove a negative provision of $0.5 million • NPAs decreased 25% due to the sale of an OREO property, hotels returning to accruing status, and payoffs
• Net interest income, excluding PPP, increased $0.7 million • NIM, excluding-PPP, increased 7 bps primarily due to an improved asset mix • 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 52% 22% 26% Floating Adjustable Fixed
1Q22 1Q22 vs 4Q21 1Q22 vs 1Q21 Debit and Credit Card $5.1 $0.6 $0.9 Service Charges 4.0 0.0 0.5 Wealth 3.2 (0.1) 0.3 Mortgage 1.0 (0.5) (3.3) Other 1.9 (0.9) (0.4) Noninterest Income $15.2 ($0.9) ($2.0) Noninterest Income 7Dollars in millions • Increased debit and credit card revenue • Moderating mortgage banking income • Unfavorable deferred compensation valuation
1Q22 1Q22 vs 4Q21 1Q22 vs 1Q21 Salaries & Benefits $23.7 ($3.4) $0.4 Data Processing 4.4 (0.2) 0.2 Occupancy 3.9 0.3 0.1 FF&E 2.8 (0.1) 0.1 Professional Services 1.9 0.3 0.4 Other Taxes 1.5 0.0 0.1 Marketing 1.4 0.0 0.0 FDIC 0.9 (0.1) (0.1) Other 6.8 0.6 0.6 Noninterest Expense $47.4 ($2.8) $1.8 • Decrease in salaries & benefits due to lower incentives • Higher other expense due to OREO costs Noninterest Expense Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 8 $45.6 $45.8 $47.2 $50.2 $47.4 Noninterest Expense Efficiency Ratio* 1Q21 2Q21 3Q21 4Q21 1Q22 51% 54% 56% 59% 57%
Capital We have strong capital levels and are well-positioned for growth Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 9 TOTAL CAPITAL
1Q22 Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $118,192 Plus: amortization of intangibles (annualized), net of tax 1,276 Net income before amortization of intangibles (annualized) $119,468 Average total shareholders' equity $1,196,694 Less: average goodwill and other intangible assets, net of deferred tax liability (378,761) Average tangible equity (non-GAAP) $817,932 Return on average tangible shareholders' equity (non-GAAP) 14.61% PPNR / Average Assets (non-GAAP) Income before taxes $36,057 Plus: Provision for credit losses (512) Total 35,545 Total (annualized) (non-GAAP) $144,155 Average assets $9,456,644 PPNR / Average Assets (non-GAAP) 1.52 % Tangible Common Equity / Tangible Assets (non-GAAP) Total shareholders' equity $1,184,950 Less: goodwill and other intangible assets, net of deferred tax liability (378,557) Tangible common equity (non-GAAP) $806,393 Total assets $9,432,281 Less: goodwill and other intangible assets, net of deferred tax liability (378,557) Tangible assets (non-GAAP) $9,053,724 Tangible common equity to tangible assets (non-GAAP) 8.91% Appendix Definitions of GAAP to Non-GAAP Financial Measures 10
1Q22 4Q21 3Q21 2Q21 1Q21 Efficiency Ratio (non-GAAP) Noninterest expense $47,414 $50,189 $47,241 $45,829 $45,580 Net interest income per consolidated statements of net income $67,733 $68,438 $68,712 $68,304 $70,659 Plus: taxable equivalent adjustment 493 510 557 585 664 Net interest income (FTE) (non-GAAP) 68,226 68,948 69,269 68,889 71,323 Noninterest income 15,226 16,104 15,846 15,424 17,236 Less: net (gains) losses on sale of securities — — — (29) — Net interest income (FTE) (non-GAAP) plus noninterest income $83,452 $85,052 $85,115 $84,284 $88,560 Efficiency ratio (non-GAAP) 56.82 % 59.01 % 55.50 % 54.37 % 51.47 % Net Interest Margin Rate (FTE) (non-GAAP) Interest income and dividend income $70,109 $71,135 $71,769 $71,577 $74,781 Less: interest expense (2,376) (2,697) (3,058) (3,273) (4,123) Net interest income per consolidated statements of net income 67,733 68,437 68,711 68,304 70,658 Plus: taxable equivalent adjustment 493 510 557 585 664 Net interest income (FTE) (non-GAAP) $68,226 $68,947 $69,268 $68,889 71,322 Net interest income (FTE) (annualized) $276,694 $273,537 $274,812 $276,313 $289,251 Average interest-earning assets $8,747,398 $8,768,329 $8,769,425 $8,729,277 $8,324,259 Net interest margin (FTE) (non-GAAP) 3.16 % 3.12 % 3.14 % 3.16 % 3.47 % Appendix Definitions of GAAP to Non-GAAP Financial Measures 11
First Quarter 2022 Earnings Supplement
Document
| CONTACT:<br><br>Mark Kochvar<br><br>Chief Financial Officer<br><br>724.465.4826<br><br>800 Philadelphia Street<br><br>Indiana, PA 15701<br><br>mark.kochvar@stbank.com<br><br>www.stbancorp.com |
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FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Increases Quarterly Cash Dividend
Indiana, Pa. -April 19, 2022 - 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 $0.30 per share cash dividend at its regular meeting held April 18, 2022. This is an increase of $0.01, or 3.4 percent, compared to a common stock dividend of $0.29 per share declared in the prior quarter and a $0.02, or 7.1 percent, increase compared to the same period in the prior year. The annualized yield using the April 18, 2022 closing price of $28.07 is 4.3 percent. The dividend is payable May 19, 2022 to shareholders of record on May 5, 2022.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.5 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank was established in 1902 and operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bank recently received the highest ranking in customer satisfaction for retail banking in the Pennsylvania region by J.D. Power. For more information visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram, and LinkedIn.