EX-99.1 2 stba-20161231xex991.htm EXHIBIT 99.1

CONTACT: Mark Kochvar Chief Financial Officer 724.465.4826 800 Philadelphia St. Indiana, PA mark.kochvar@stbank.net www.stbancorp.com |  |

FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces Fourth Quarter and Full Year 2016 Results
Indiana, Pa., - January 26, 2017 - S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank with locations in Pennsylvania, Ohio and New York, announced today its fourth quarter and full year 2016 earnings. Fourth quarter earnings were $17.7 million, or $0.51 per diluted share, compared to third quarter of 2016 earnings of $20.6 million, or $0.59 per diluted share, and fourth quarter of 2015 earnings of $17.4 million, or $0.50 per diluted share. For the year ended December 31, 2016, net income was a record $71.4 million, an increase of 6.4% over net income of $67.1 million for 2015. Diluted earnings per share was $2.05, an increase of 3.5% from $1.98 in 2015.
Fourth Quarter of 2016 Highlights:

• | Portfolio loans increased $193 million from September 30, 2016, representing a 14.2% annualized rate.

• | Total deposits increased $127 million from September 30, 2016, representing a 9.8% annualized rate.

• | Return on average assets was 1.04% and return on average equity was 8.36%.

• | Net interest margin (FTE) (Non-GAAP) was stable at 3.45% compared to 3.46% for the prior quarter.

• | S&T declared a $0.20 per share dividend, a 5.3% increase compared to $0.19 in the same period a year ago.

Full Year 2016 Highlights:

• | Net income increased 6.4% to a record $71.4 million compared to $67.1 million for 2015.

• | Strong organic portfolio loan growth of $584 million, or 11.6%.

• | Total deposits grew $396 million, or 8.1%.

• | Return on average assets was 1.08% and return on average equity was 8.67%.

“We are pleased to announce record net income for 2016,” said Todd Brice, president and chief executive officer of S&T. “The investments that we have made in our markets over the past few years have made a big impact on our overall financial performance. Our assets grew organically almost 10% during 2016 which is a true testament to our team members and our ability to successfully execute our growth strategy. As we move into 2017, we believe that we are well positioned for continued growth.”
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S&T Earnings Release - 2
Fourth Quarter of 2016 Results
Net Interest Income
Net interest income increased $1.0 million, or 1.9%, to $52.5 million compared to $51.5 million in the third quarter of 2016. Net interest income was positively impacted by an increase in average loans of $131 million, or 2.4%, compared to the prior quarter. Net interest margin on a fully taxable equivalent basis (FTE) (Non-GAAP) was stable at 3.45% compared to 3.46% in the prior quarter. Loan yields and deposit costs were both relatively unchanged quarter over quarter, allowing organic growth to drive net interest income higher.
Asset Quality
Total nonperforming loans were $42.6 million, or 0.76% of total loans at December 31, 2016 compared to $40.5 million, or 0.75% of total loans at September 30, 2016. Net charge-offs for the fourth quarter of 2016 were $6.6 million compared to net charge-offs of $0.9 million in the third quarter of 2016. Included in net charge-offs for the fourth quarter of 2016 was a $1.5 million specific reserve that was previously recorded in the first quarter of 2016. The provision for loan losses was $5.6 million compared to $2.5 million in the third quarter of 2016. The higher provision was a result of higher loan charge-offs and loan growth compared to the prior quarter. The allowance for loan losses was $52.8 million, or 0.94% of total portfolio loans at December 31, 2016, compared to $53.8 million, or 0.99% of total portfolio loans, at September 30, 2016.
Noninterest Income and Expense
Noninterest income decreased $0.5 million to $12.9 million compared to $13.4 million in the third quarter of 2016. The decrease in noninterest income was primarily due to a $0.4 million decline in mortgage banking due to the increase in rates that occurred during the fourth quarter. Noninterest expense increased $1.2 million to $35.6 million from $34.4 million in the third quarter of 2016. Salaries and employee benefit expense increased $0.8 million due to higher incentives and medical costs compared to the third quarter of 2016. Other expense increased $0.8 million primarily due to significant loan related expense recoveries that occurred in the third quarter of 2016. The efficiency ratio improved to 54.06% compared to 55.86% in the prior year.
Financial Condition
Total assets increased $225 million to $6.9 billion at December 31, 2016 compared to $6.7 billion at September 30, 2016. Commercial loans increased $182 million, or 17.4% annualized, with growth in all commercial categories. Total consumer loans increased $11.4 million, or 3.6% annualized, with growth primarily in residential mortgage. Total deposits increased $127 million, or 9.8% annualized, with growth primarily in money market accounts. S&T’s risk-based capital ratios were relatively unchanged compared with the third quarter of 2016. All capital ratios remain significantly above the well-capitalized thresholds of federal bank regulatory agencies.
Full Year 2016 Results
S&T’s growth strategy continued successfully in 2016 with organic loan growth of $584 million, or 11.6%. Commercial loans grew $519 million, or 13.5%, and consumer loans grew $65 million, or 5.5%, during 2016. Loan growth was very strong in our newer markets of Ohio, New York and south-central Pennsylvania contributing $440 million of total loan growth during 2016.
Full year 2016 earnings increased $4.3 million, or 6.4%, to a record $71.4 million compared to $67.1 million and diluted earnings per share increased $0.07, or 3.5%, to $2.05 per diluted share compared to $1.98 per diluted share for 2015. Net interest income increased by $15.7 million, or 8.4%, in 2016 due to the excellent organic loan growth. The provision for loan losses increased $7.6 million to $18.0 million in 2016 compared to $10.4 million in 2015 primarily due to higher loan charge-offs and loan growth. Net loan charge-offs increased $3.2 million to $13.3 million in 2016 from $10.2 million in 2015. To view an infographic featuring 2016 highlights, click here. [Refer to Exhibit 99.2]
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S&T Earnings Release - 3
Dividend
The Board of Directors of S&T declared a $0.20 per share cash dividend at its regular meeting held
January 23, 2017. This is an increase of 5.3% compared to a common stock dividend of $0.19 per share declared in the same period in the prior year. The dividend is payable February 23, 2017 to shareholders of record on February 9, 2017. Dividends declared in 2016 increased $0.04, or 5.5%, to $0.77 compared to $0.73 for 2015.
Conference Call
S&T will host its fourth quarter 2016 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, January 26, 2017. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “4th Quarter 2016 Conference Call” and follow the instructions.
About S&T Bancorp, Inc.
S&T Bancorp, Inc. is a $6.9 billion bank holding company that is headquartered in Indiana, Pa. and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902, and operates locations in Pennsylvania, Ohio and New York. For more information visit www.stbancorp.com, www.stbank.com, or call 800.325.2265.
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, cyber-security concerns; rapid technological developments and changes; 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; 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; general economic or business conditions; 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; 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.
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S&T Earnings Release - 4
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. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 5

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
(dollars in thousands, except per share data) | Quarter |  | Quarter |  | Quarter |
INTEREST INCOME |  |  |  |  |  |
Loans, including fees |  | $55,168 |  |  |  | $53,956 |  |  |  | $49,574 |  |
Investment securities: |  |  |  |  |  |
Taxable | 2,636 |  |  | 2,570 |  |  | 2,493 |  |
Tax-exempt | 894 |  |  | 907 |  |  | 948 |  |
Dividends | 398 |  |  | 375 |  |  | 338 |  |
Total Interest Income | 59,096 |  |  | 57,808 |  |  | 53,353 |  |
INTEREST EXPENSE |  |  |  |  |  |
Deposits | 5,289 |  |  | 5,119 |  |  | 3,611 |  |
Borrowings and junior subordinated debt securities | 1,349 |  |  | 1,234 |  |  | 857 |  |
Total Interest Expense | 6,638 |  |  | 6,353 |  |  | 4,468 |  |
NET INTEREST INCOME | 52,458 |  |  | 51,455 |  |  | 48,885 |  |
Provision for loan losses | 5,586 |  |  | 2,516 |  |  | 3,915 |  |
Net Interest Income After Provision for Loan Losses | 46,872 |  |  | 48,939 |  |  | 44,970 |  |
NONINTEREST INCOME |  |  |  |  |  |
Securities (losses) gains, net | — |  |  | — |  |  | — |  |
Service charges on deposit accounts | 3,240 |  |  | 3,208 |  |  | 3,113 |  |
Debit and credit card fees | 3,125 |  |  | 3,163 |  |  | 3,381 |  |
Wealth management fees | 2,509 |  |  | 2,565 |  |  | 2,777 |  |
Insurance fees | 1,066 |  |  | 1,208 |  |  | 1,126 |  |
Mortgage banking | 694 |  |  | 1,077 |  |  | 549 |  |
Other | 2,288 |  |  | 2,227 |  |  | 2,138 |  |
Total Noninterest Income | 12,922 |  |  | 13,448 |  |  | 13,084 |  |
NONINTEREST EXPENSE |  |  |  |  |  |
Salaries and employee benefits | 19,787 |  |  | 19,011 |  |  | 17,228 |  |
Net occupancy | 2,644 |  |  | 2,776 |  |  | 2,639 |  |
Data processing | 2,083 |  |  | 2,129 |  |  | 2,348 |  |
Furniture and equipment | 1,710 |  |  | 1,932 |  |  | 1,632 |  |
Professional services and legal | 1,177 |  |  | 1,041 |  |  | 1,095 |  |
FDIC insurance | 1,046 |  |  | 1,005 |  |  | 923 |  |
Other taxes | 974 |  |  | 1,080 |  |  | 895 |  |
Marketing | 840 |  |  | 896 |  |  | 1,319 |  |
Other | 5,364 |  |  | 4,569 |  |  | 5,738 |  |
Total Noninterest Expense | 35,625 |  |  | 34,439 |  |  | 33,817 |  |
Income Before Taxes | 24,169 |  |  | 27,948 |  |  | 24,237 |  |
Provision for income taxes | 6,510 |  |  | 7,367 |  |  | 6,814 |  |
Net Income |  | $17,659 |  |  |  | $20,581 |  |  |  | $17,423 |  |
Per Share Data: |  |  |  |  |  |
Shares outstanding at end of period | 34,913,023 |  |  | 34,913,023 |  |  | 34,810,374 |  |
Average shares outstanding - diluted | 34,839,189 |  |  | 34,768,505 |  |  | 34,715,899 |  |
Average shares outstanding - two-class method | 34,801,271 |  |  | 34,802,233 |  |  | 34,810,813 |  |
Diluted earnings per share (1) |  | $0.51 |  |  |  | $0.59 |  |  |  | $0.50 |  |
Dividends declared per share |  | $0.20 |  |  |  | $0.19 |  |  |  | $0.19 |  |
Dividend yield (annualized) | 2.05 | % |  | 2.62 | % |  | 2.47 | % |
Dividends paid to net income | 39.41 | % |  | 32.13 | % |  | 37.89 | % |
Book value |  | $24.12 |  |  |  | $24.02 |  |  |  | $22.76 |  |
Tangible book value (3) |  | $15.67 |  |  |  | $15.57 |  |  |  | $14.26 |  |
Market value |  | $39.04 |  |  |  | $28.99 |  |  |  | $30.82 |  |
Profitability Ratios (annualized) |  |  |  |  |  |
Return on average assets | 1.04 | % |  | 1.23 | % |  | 1.10 | % |
Return on average tangible assets (4) | 1.10 | % |  | 1.31 | % |  | 1.18 | % |
Return on average shareholders' equity | 8.36 | % |  | 9.85 | % |  | 8.74 | % |
Return on average tangible shareholders' equity (5) | 13.05 | % |  | 15.46 | % |  | 14.21 | % |
Efficiency ratio (FTE) (2) | 53.04 | % |  | 51.65 | % |  | 53.17 | % |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 6

|  | For the Twelve Months Ended December 31,
(dollars in thousands, except per share data) |  |  | 2016 |  | 2015 |
INTEREST INCOME |  |  |  |  |  |
Loans, including fees |  |  |  | $212,301 |  |  |  | $188,012 |  |
Investment securities: |  |  |  |  |  |
Taxable |  |  | 10,340 |  |  | 9,792 |  |
Tax-exempt |  |  | 3,658 |  |  | 3,954 |  |
Dividends |  |  | 1,475 |  |  | 1,790 |  |
Total Interest Income |  |  | 227,774 |  |  | 203,548 |  |
INTEREST EXPENSE |  |  |  |  |  |
Deposits |  |  | 19,692 |  |  | 12,944 |  |
Borrowings and junior subordinated debt securities |  |  | 4,823 |  |  | 3,053 |  |
Total Interest Expense |  |  | 24,515 |  |  | 15,997 |  |
NET INTEREST INCOME |  |  | 203,259 |  |  | 187,551 |  |
Provision for loan losses |  |  | 17,965 |  |  | 10,388 |  |
Net Interest Income After Provision for Loan Losses |  |  | 185,294 |  |  | 177,163 |  |
NONINTEREST INCOME |  |  |  |  |  |
Securities (losses) gains, net |  |  | — |  |  | (34 | ) |
Service charges on deposit accounts |  |  | 12,512 |  |  | 11,642 |  |
Debit and credit card fees |  |  | 11,943 |  |  | 12,113 |  |
Wealth management fees |  |  | 10,456 |  |  | 11,444 |  |
Insurance fees |  |  | 5,253 |  |  | 5,500 |  |
Mortgage banking |  |  | 2,879 |  |  | 2,554 |  |
Gain on sale of credit card portfolio |  |  | 2,066 |  |  | — |  |
Other |  |  | 9,526 |  |  | 7,814 |  |
Total Noninterest Income |  |  | 54,635 |  |  | 51,033 |  |
NONINTEREST EXPENSE |  |  |  |  |  |
Salaries and employee benefits |  |  | 77,325 |  |  | 68,252 |  |
Net occupancy |  |  | 11,057 |  |  | 10,652 |  |
Data processing |  |  | 9,047 |  |  | 9,677 |  |
Furniture and equipment |  |  | 7,290 |  |  | 6,093 |  |
Professional services and legal |  |  | 4,212 |  |  | 3,365 |  |
FDIC insurance |  |  | 3,984 |  |  | 3,416 |  |
Other taxes |  |  | 4,050 |  |  | 3,616 |  |
Marketing |  |  | 3,713 |  |  | 4,224 |  |
Merger related expenses |  |  | — |  |  | 3,167 |  |
Other |  |  | 22,554 |  |  | 24,255 |  |
Total Noninterest Expense |  |  | 143,232 |  |  | 136,717 |  |
Income Before Taxes |  |  | 96,697 |  |  | 91,479 |  |
Provision for income taxes |  |  | 25,305 |  |  | 24,398 |  |
Net Income |  |  |  | $71,392 |  |  |  | $67,081 |  |
Per Share Data: |  |  |  |  |  |
Average shares outstanding - diluted |  |  | 34,773,170 |  |  | 33,848,082 |  |
Average shares outstanding - two-class method |  |  | 34,787,492 |  |  | 33,954,548 |  |
Diluted earnings per share (1) |  |  |  | $2.05 |  |  |  | $1.98 |  |
Dividends declared per share |  |  |  | $0.77 |  |  |  | $0.73 |  |
Dividends paid to net income |  |  | 37.52 | % |  | 36.47 | % |
Profitability Ratios |  |  |  |  |  |
Return on average assets |  |  | 1.08 | % |  | 1.13 | % |
Return on average tangible assets (8) |  |  | 1.15 | % |  | 1.20 | % |
Return on average shareholders' equity |  |  | 8.67 | % |  | 8.94 | % |
Return on average tangible shareholders' equity (9) |  |  | 13.71 | % |  | 14.39 | % |
Efficiency ratio (FTE) (2) |  |  | 54.06 | % |  | 55.86 | % |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 7

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
ASSETS |  |  |  |  |  |
Cash and due from banks, including interest-bearing deposits |  | $139,486 |  |  |  | $125,163 |  |  |  | $99,399 |  |
Securities available-for-sale, at fair value | 693,487 |  |  | 671,128 |  |  | 660,963 |  |
Loans held for sale | 3,793 |  |  | 11,694 |  |  | 35,321 |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate | 2,498,476 |  |  | 2,427,164 |  |  | 2,166,603 |  |
Commercial and industrial | 1,401,035 |  |  | 1,344,297 |  |  | 1,256,830 |  |
Commercial construction | 455,884 |  |  | 402,124 |  |  | 413,444 |  |
Total Commercial Loans | 4,355,395 |  |  | 4,173,585 |  |  | 3,836,877 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 701,982 |  |  | 692,574 |  |  | 639,372 |  |
Home equity | 482,284 |  |  | 483,935 |  |  | 470,845 |  |
Installment and other consumer | 65,852 |  |  | 62,288 |  |  | 73,939 |  |
Consumer construction | 5,906 |  |  | 5,852 |  |  | 6,579 |  |
Total Consumer Loans | 1,256,024 |  |  | 1,244,649 |  |  | 1,190,735 |  |
Total portfolio loans | 5,611,419 |  |  | 5,418,234 |  |  | 5,027,612 |  |
Allowance for loan losses | (52,775 | ) |  | (53,793 | ) |  | (48,147 | ) |
Total portfolio loans, net | 5,558,644 |  |  | 5,364,441 |  |  | 4,979,465 |  |
Goodwill | 291,670 |  |  | 291,670 |  |  | 291,764 |  |
Other assets | 255,973 |  |  | 254,109 |  |  | 251,442 |  |
Total Assets |  | $6,943,053 |  |  |  | $6,718,205 |  |  |  | $6,318,354 |  |
LIABILITIES |  |  |  |  |  |
Deposits: |  |  |  |  |  |
Noninterest-bearing demand |  | $1,263,833 |  |  |  | $1,232,469 |  |  |  | $1,227,766 |  |
Interest-bearing demand | 638,300 |  |  | 657,326 |  |  | 616,188 |  |
Money market | 936,461 |  |  | 764,125 |  |  | 605,184 |  |
Savings | 1,050,131 |  |  | 1,026,234 |  |  | 1,061,265 |  |
Certificates of deposit | 1,383,652 |  |  | 1,465,277 |  |  | 1,366,208 |  |
Total Deposits | 5,272,377 |  |  | 5,145,431 |  |  | 4,876,611 |  |
Securities sold under repurchase agreements | 50,832 |  |  | 40,949 |  |  | 62,086 |  |
Short-term borrowings | 660,000 |  |  | 565,000 |  |  | 356,000 |  |
Long-term borrowings | 14,713 |  |  | 15,303 |  |  | 117,043 |  |
Junior subordinated debt securities | 45,619 |  |  | 45,619 |  |  | 45,619 |  |
Other liabilities | 57,556 |  |  | 67,196 |  |  | 68,758 |  |
Total Liabilities | 6,101,097 |  |  | 5,879,498 |  |  | 5,526,117 |  |
SHAREHOLDERS' EQUITY |  |  |  |  |  |
Total Shareholders' Equity | 841,956 |  |  | 838,707 |  |  | 792,237 |  |
Total Liabilities and Shareholders' Equity |  | $6,943,053 |  |  |  | $6,718,205 |  |  |  | $6,318,354 |  |
Capitalization Ratios |  |  |  |  |  |
Shareholders' equity / assets | 12.13 | % |  | 12.48 | % |  | 12.54 | % |
Tangible common equity / tangible assets (6) | 8.23 | % |  | 8.46 | % |  | 8.24 | % |
Tier 1 leverage ratio | 8.98 | % |  | 9.02 | % |  | 8.96 | % |
Common equity tier 1 capital | 10.04 | % |  | 10.01 | % |  | 9.77 | % |
Risk-based capital - tier 1 | 10.39 | % |  | 10.37 | % |  | 10.15 | % |
Risk-based capital - total | 11.86 | % |  | 11.87 | % |  | 11.60 | % |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 8

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Net Interest Margin (FTE) (QTD Averages) |  |  |  |  |  |
ASSETS |  |  |  |  |  |
Loans |  | $5,513,074 |  | 4.07% |  | $5,382,516 |  | 4.08% |  | $5,000,736 |  | 4.02%
Taxable investment securities | 549,092 |  | 1.99% | 545,249 |  | 1.95% | 522,679 |  | 1.98%
Tax-exempt investment securities | 130,596 |  | 4.21% | 133,661 |  | 4.17% | 135,803 |  | 4.30%
Federal Home Loan Bank and other restricted stock | 26,149 |  | 4.56% | 24,454 |  | 4.52% | 20,848 |  | 4.59%
Interest-bearing deposits with banks | 43,023 |  | 0.45% | 37,852 |  | 0.52% | 57,317 |  | 0.30%
Total Interest-earning Assets | 6,261,934 |  | 3.87% | 6,123,732 |  | 3.87% | 5,737,383 |  | 3.80%
Noninterest-earning assets | 524,653 |  |  | 519,011 |  |  | 539,482 |  |
Total Assets |  | $6,786,587 |  |  |  | $6,642,743 |  |  |  | $6,276,865 |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
Interest-bearing demand | 647,345 |  | 0.17% | 663,477 |  | 0.17% | 610,553 |  | 0.13%
Money market | 594,812 |  | 0.45% | 540,891 |  | 0.42% | 376,752 |  | 0.20%
Savings | 1,033,297 |  | 0.20% | 1,034,018 |  | 0.20% | 1,073,111 |  | 0.16%
Certificates of deposit | 1,369,546 |  | 0.94% | 1,379,952 |  | 0.95% | 1,146,674 |  | 0.80%
CDARS and brokered deposits | 374,512 |  | 0.62% | 309,413 |  | 0.56% | 499,569 |  | 0.37%
Securities sold under repurchase agreements | 42,570 |  | 0.01% | 44,927 |  | 0.01% | 49,493 |  | 0.01%
Short-term borrowings | 500,890 |  | 0.68% | 459,043 |  | 0.66% | 291,793 |  | 0.41%
Long-term borrowings | 14,957 |  | 2.85% | 15,545 |  | 2.85% | 117,275 |  | 0.77%
Junior subordinated debt securities | 45,619 |  | 3.33% | 45,619 |  | 3.15% | 45,619 |  | 2.82%
Total Interest-bearing Liabilities | 4,623,548 |  | 0.57% | 4,492,885 |  | 0.56% | 4,210,839 |  | 0.42%
Noninterest-bearing demand | 1,248,141 |  |  | 1,247,884 |  |  | 1,205,009 |  |
Other liabilities | 74,274 |  |  | 70,799 |  |  | 69,834 |  |
Shareholders' equity | 840,624 |  |  | 831,175 |  |  | 791,183 |  |
Total Liabilities and Shareholders' Equity |  | $6,786,587 |  |  |  | $6,642,743 |  |  |  | $6,276,865 |  |
Net Interest Margin (7) |  | 3.45% |  | 3.46% |  | 3.50%

|  | For the Twelve Months Ended December 31,
(dollars in thousands) |  |  | 2016 |  | 2015 |
Net Interest Margin (FTE) (YTD Averages) |  |  |  |  |  |
ASSETS |  |  |  |  |  |
Loans |  |  |  | $5,324,834 |  | 4.08% |  | $4,692,433 |  | 4.09%
Taxable investment securities |  |  | 543,348 |  | 1.97% | 516,335 |  | 1.97%
Tax-exempt investment securities |  |  | 133,348 |  | 4.22% | 138,321 |  | 4.40%
Federal Home Loan Bank and other restricted stock |  |  | 23,811 |  | 4.53% | 19,672 |  | 7.12%
Interest-bearing deposits with banks |  |  | 41,810 |  | 0.50% | 66,101 |  | 0.25%
Total Interest-earning Assets |  |  | 6,067,151 |  | 3.87% | 5,432,862 |  | 3.86%
Noninterest-earning assets |  |  | 521,104 |  |  | 509,236 |  |
Total Assets |  |  |  | $6,588,255 |  |  |  | $5,942,098 |  |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
Interest-bearing demand |  |  | 638,461 |  | 0.16% | 592,301 |  | 0.13%
Money market |  |  | 506,440 |  | 0.38% | 388,172 |  | 0.19%
Savings |  |  | 1,039,664 |  | 0.19% | 1,072,683 |  | 0.16%
Certificates of deposit |  |  | 1,351,413 |  | 0.94% | 1,093,564 |  | 0.77%
CDARS and brokered deposits |  |  | 362,576 |  | 0.56% | 376,095 |  | 0.35%
Securities sold under repurchase agreements |  |  | 51,021 |  | 0.01% | 44,394 |  | 0.01%
Short-term borrowings |  |  | 414,426 |  | 0.65% | 257,117 |  | 0.36%
Long-term borrowings |  |  | 50,256 |  | 1.33% | 83,648 |  | 0.94%
Junior subordinated debt securities |  |  | 45,619 |  | 3.14% | 47,071 |  | 2.82%
Total Interest-bearing Liabilities |  |  | 4,459,876 |  | 0.55% | 3,955,045 |  | 0.40%
Noninterest-bearing demand |  |  | 1,232,633 |  |  | 1,170,011 |  |
Other liabilities |  |  | 72,139 |  |  | 66,973 |  |
Shareholders' equity |  |  | 823,607 |  |  | 750,069 |  |
Total Liabilities and Shareholders' Equity |  |  |  | $6,588,255 |  |  |  | $5,942,098 |  |
Net Interest Margin (10) |  |  |  | 3.47% |  | 3.56%

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 9

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Nonperforming Loans (NPL) |  |  |  |  |  |
Commercial loans: |  | % NPL |  | % NPL |  | % NPL
Commercial real estate | $16,172 | 0.65% | $7,551 | 0.31% | $8,719 | 0.40%
Commercial and industrial | 8,071 |  | 0.58% | 11,890 |  | 0.88% | 9,279 |  | 0.74%
Commercial construction | 4,927 |  | 1.08% | 6,653 |  | 1.65% | 8,753 |  | 2.12%
Total Nonperforming Commercial Loans | 29,170 |  | 0.67% | 26,094 |  | 0.63% | 26,751 |  | 0.70%
Consumer loans: |  |  |  |  |  |
Residential mortgage | 9,918 |  | 1.41% | 11,400 |  | 1.63% | 5,629 |  | 0.88%
Home equity | 3,439 |  | 0.71% | 2,955 |  | 0.61% | 2,902 |  | 0.62%
Installment and other consumer | 108 |  | 0.16% | 44 |  | 0.07% | 100 |  | 0.14%
Consumer construction | — |  | —% | — |  | —% | — |  | —%
Total Nonperforming Consumer Loans | 13,465 |  | 1.07% | 14,399 |  | 1.16% | 8,631 |  | 0.72%
Total Nonperforming Loans | $42,635 | 0.76% | $40,493 | 0.75% | $35,382 | 0.71%

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Loan Charge-offs |  |  |  |  |  |
Charge-offs |  | $6,938 |  |  |  | $1,500 |  |  |  | $6,419 |  |
Recoveries | (333 | ) |  | (564 | ) |  | (744 | ) |
Net Loan Charge-offs |  | $6,605 |  |  |  | $936 |  |  |  | $5,675 |  |
Net Loan Charge-offs |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate |  | $1,276 |  |  |  | ($171 | ) |  |  | ($436 | ) |
Commercial and industrial | 3,433 |  |  | 245 |  |  | 2,518 |  |
Commercial construction | 768 |  |  | 146 |  |  | 2,063 |  |
Total Commercial Loan Charge-offs | 5,477 |  |  | 220 |  |  | 4,145 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 722 |  |  | 331 |  |  | 407 |  |
Home equity | 26 |  |  | (1 | ) |  | 728 |  |
Installment and other consumer | 453 |  |  | 391 |  |  | 406 |  |
Consumer construction | (73 | ) |  | (5 | ) |  | (11 | ) |
Total Consumer Loan Charge-offs | 1,128 |  |  | 716 |  |  | 1,530 |  |
Total Net Loan Charge-offs |  | $6,605 |  |  |  | $936 |  |  |  | $5,675 |  |

|  | For the Twelve Months Ended December 31,
(dollars in thousands) |  |  | 2016 |  | 2015 |
Loan Charge-offs |  |  |  |  |  |
Charge-offs |  |  |  | $15,561 |  |  |  | $15,266 |  |
Recoveries |  |  | (2,223 | ) |  | (5,114 | ) |
Net Loan Charge-offs |  |  |  | $13,338 |  |  |  | $10,152 |  |
Net Loan Charge-offs |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate |  |  |  | $2,422 |  |  |  | ($758 | ) |
Commercial and industrial |  |  | 6,088 |  |  | 4,858 |  |
Commercial construction |  |  | 1,856 |  |  | 3,178 |  |
Total Commercial Loan Charge-offs |  |  | 10,366 |  |  | 7,278 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage |  |  | 1,230 |  |  | 866 |  |
Home equity |  |  | 183 |  |  | 947 |  |
Installment and other consumer |  |  | 1,748 |  |  | 1,202 |  |
Consumer construction |  |  | (189 | ) |  | (141 | ) |
Total Consumer Loan Charge-offs |  |  | 2,972 |  |  | 2,874 |  |
Total Net Loan Charge-offs |  |  |  | $13,338 |  |  |  | $10,152 |  |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 10

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
| Quarter |  | Quarter |  | Quarter |
Asset Quality Data |  |  |  |  |  |
Nonperforming loans |  | $42,635 |  |  |  | $40,493 |  |  |  | $35,382 |  |
Assets acquired through foreclosure or repossession | 679 |  |  | 512 |  |  | 354 |  |
Nonperforming assets | 43,314 |  |  | 41,005 |  |  | 35,736 |  |
Troubled debt restructurings (nonaccruing) | 11,598 |  |  | 15,095 |  |  | 7,659 |  |
Troubled debt restructurings (accruing) | 13,423 |  |  | 12,936 |  |  | 23,955 |  |
Total troubled debt restructurings | 25,021 |  |  | 28,031 |  |  | 31,614 |  |
Nonperforming loans / loans | 0.76 | % |  | 0.75 | % |  | 0.70 | % |
Nonperforming assets / loans plus OREO | 0.77 | % |  | 0.76 | % |  | 0.71 | % |
Allowance for loan losses / total portfolio loans | 0.94 | % |  | 0.99 | % |  | 0.96 | % |
Allowance for loan losses / nonperforming loans | 124 | % |  | 133 | % |  | 136 | % |
Net loan charge-offs (recoveries) |  | $6,605 |  |  |  | $936 |  |  |  | $5,675 |  |
Net loan charge-offs (recoveries)(annualized) / average loans | 0.48 | % |  | 0.07 | % |  | 0.45 | % |
|  | For the Twelve Months Ended December 31,
(dollars in thousands) |  |  | 2016 |  | 2015 |
Asset Quality Data |  |  |  |  |  |
Net loan charge-offs (recoveries) |  |  | $13,338 |  | $10,152 |
Net loan charge-offs (recoveries) / average loans |  |  | 0.25 | % |  | 0.22 | % |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 11

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
(1) Diluted earnings per share under the two-class method is determined on the net income reported on the income statement less earnings allocated to participating securities.
(2) Noninterest expense divided by noninterest income plus net interest income, on a fully taxable equivalent (FTE) basis.

| 2016 |  | 2016 |  | 2015 |
| Fourth |  | Third |  | Fourth |
| Quarter |  | Quarter |  | Quarter |
(3) Tangible Book Value (non-GAAP) |  |  |  |  |  |
Total shareholders' equity |  | $841,956 |  |  |  | $838,707 |  |  |  | $792,237 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (294,862 | ) |  | (295,104 | ) |  | (296,005 | ) |
Tangible common equity (non-GAAP) |  | $547,094 |  |  |  | $543,603 |  |  |  | $496,232 |  |
Common shares outstanding | 34,913 |  |  | 34,913 |  |  | 34,810 |  |
Tangible book value (non-GAAP) |  | $15.67 |  |  |  | $15.57 |  |  |  | $14.26 |  |
(4) Return on Average Tangible Assets (non-GAAP) |  |  |  |  |  |
Net income (annualized) |  | $70,254 |  |  |  | $81,877 |  |  |  | $69,123 |  |
Plus: amortization of intangibles net of tax (annualized) | 962 |  |  | 969 |  |  | 1,224 |  |
Net income before amortization of intangibles (annualized) |  | $71,216 |  |  |  | $82,846 |  |  |  | $70,347 |  |
Average total assets |  | $6,786,587 |  |  |  | $6,642,743 |  |  |  | $6,276,865 |  |
Less: average goodwill and other intangibles, net of deferred tax liability | (294,994 | ) |  | (295,235 | ) |  | (296,088 | ) |
Average tangible assets (non-GAAP) |  | $6,491,593 |  |  |  | $6,347,508 |  |  |  | $5,980,777 |  |
Return on average tangible assets (non-GAAP) | 1.10 | % |  | 1.31 | % |  | 1.18 | % |
(5) Return on Average Tangible Shareholders' Equity (non-GAAP) |  |  |  |  |  |
Net income (annualized) |  | $70,254 |  |  |  | $81,877 |  |  |  | $69,123 |  |
Plus: amortization of intangibles net of tax (annualized) | 962 |  |  | 969 |  |  | 1,224 |  |
Net income before amortization of intangibles (annualized) |  | $71,216 |  |  |  | $82,846 |  |  |  | $70,347 |  |
Average total shareholders' equity |  | $840,624 |  |  |  | $831,175 |  |  |  | $791,183 |  |
Less: average goodwill and other intangibles, net of deferred tax liability | (294,994 | ) |  | (295,235 | ) |  | (296,088 | ) |
Average tangible equity (non-GAAP) |  | $545,630 |  |  |  | $535,940 |  |  |  | $495,095 |  |
Return on average tangible equity (non-GAAP) | 13.05 | % |  | 15.46 | % |  | 14.21 | % |
(6) Tangible Common Equity / Tangible Assets (non-GAAP) |  |  |  |  |  |
Total shareholders' equity |  | $841,956 |  |  |  | $838,707 |  |  |  | $792,237 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (294,862 | ) |  | (295,104 | ) |  | (296,005 | ) |
Tangible common equity (non-GAAP) |  | $547,094 |  |  |  | $543,603 |  |  |  | $496,232 |  |
Total assets |  | $6,943,053 |  |  |  | $6,718,205 |  |  |  | $6,318,354 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (294,862 | ) |  | (295,104 | ) |  | (296,005 | ) |
Tangible assets (non-GAAP) |  | $6,648,191 |  |  |  | $6,423,101 |  |  |  | $6,022,349 |  |
Tangible common equity to tangible assets (non-GAAP) | 8.23 | % |  | 8.46 | % |  | 8.24 | % |
(7) Net Interest Margin Rate (FTE) (non-GAAP) |  |  |  |  |  |
Interest income |  | $59,096 |  |  |  | $57,808 |  |  |  | $53,353 |  |
Less: interest expense | (6,638 | ) |  | (6,353 | ) |  | (4,468 | ) |
Net interest income per consolidated statements of net income |  | $52,458 |  |  |  | $51,455 |  |  |  | $48,885 |  |
Plus: taxable equivalent adjustment | 1,789 |  |  | 1,771 |  |  | 1,630 |  |
Net interest income (FTE) (non-GAAP) |  | $54,247 |  |  |  | $53,226 |  |  |  | $50,515 |  |
Net interest income (FTE) (annualized) |  | $215,809 |  |  |  | $211,747 |  |  |  | $200,413 |  |
Average earning assets |  | $6,261,934 |  |  |  | $6,123,731 |  |  |  | $5,737,383 |  |
Net interest margin - (FTE) (non-GAAP) | 3.45 | % |  | 3.46 | % |  | 3.50 | % |

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| S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited | S&T Earnings Release - 12

|  | For the Twelve Months Ended December 31,
|  |  | 2016 |  | 2015 |
(8) Return on Average Tangible Assets (non-GAAP) |  |  |  |  |  |
Net income |  |  |  | $71,392 |  |  |  | $67,081 |  |
Plus: amortization of intangibles net of tax |  |  | 1,050 |  |  | 1,182 |  |
Net income before amortization of intangibles |  |  |  | $72,442 |  |  |  | $68,263 |  |
Average total assets |  |  |  | $6,588,255 |  |  |  | $5,942,098 |  |
Less: average goodwill and other intangibles, net of deferred tax liability |  |  | (295,385 | ) |  | (275,847 | ) |
Average tangible assets (non-GAAP) |  |  |  | $6,292,870 |  |  |  | $5,666,251 |  |
Return on average tangible assets (non-GAAP) |  |  | 1.15 | % |  | 1.20 | % |
(9) Return on Average Tangible Shareholders' Equity (non-GAAP) |  |  |  |  |  |
Net income |  |  |  | $71,392 |  |  |  | $67,081 |  |
Plus: amortization of intangibles net of tax |  |  | 1,050 |  |  | 1,182 |  |
Net income before amortization of intangibles |  |  |  | $72,442 |  |  |  | $68,263 |  |
Average total shareholders' equity |  |  |  | $823,607 |  |  |  | $750,069 |  |
Less: average goodwill and other intangibles, net of deferred tax liability |  |  | (295,385 | ) |  | (275,847 | ) |
Average tangible equity (non-GAAP) |  |  |  | $528,222 |  |  |  | $474,222 |  |
Return on average tangible equity (non-GAAP) |  |  | 13.71 | % |  | 14.39 | % |
(10) Net Interest Margin Rate (FTE) (non-GAAP) |  |  |  |  |  |
Interest income |  |  |  | $227,774 |  |  |  | $203,548 |  |
Less: interest expense |  |  | (24,515 | ) |  | (15,997 | ) |
Net interest income per consolidated statements of net income |  |  |  | $203,259 |  |  |  | $187,551 |  |
Plus: taxable equivalent adjustment |  |  | 7,043 |  |  | 6,123 |  |
Net interest income (FTE) (non-GAAP) |  |  |  | $210,302 |  |  |  | $193,674 |  |
Average earning assets |  |  |  | $6,067,151 |  |  |  | $5,432,862 |  |
Net interest margin - (FTE) (non-GAAP) |  |  | 3.47 | % |  | 3.56 | % |

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