EX-99.1 2 stba-20200331xex991.htm EXHIBIT 99.1
S&T Earnings Release -1

CONTACT: Mark Kochvar Chief Financial Officer 724.465.4826 800 Philadelphia Street Indiana, PA 15701 mark.kochvar@stbank.com www.stbancorp.com |  |

FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces First Quarter 2020 Results and Declares First Quarter Dividend
Indiana, Pa. - April 30, 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 its first quarter 2020 earnings. Net income was $13.2 million, or $0.34 per diluted share, for the first quarter of 2020 compared to net income of $22.3 million, or $0.62 per diluted share, for the fourth quarter of 2019, and $22.9 million, or $0.66 per diluted share, for the first quarter of 2019. The first quarter of 2020 financial results included one-time expenses of $2.3 million, or $0.05 per diluted share, related to the DNB Financial Corporation (DNB) merger which closed on November 30, 2019, compared to $10.2 million, or $0.23 per diluted share in the fourth quarter of 2019.
Impact and Response to the COVID-19 Pandemic:
In response to the COVID-19 pandemic numerous measures have been taken to promote the health and safety of our employees, and the customers and communities we serve. Preventive health measures including social distancing, wearing masks, remote work where feasible, extra cleaning and branch access restrictions have been implemented. Our ongoing Business Continuity teams were activated and have guided our efforts to respond to the rapidly developing situation.
We have made strong efforts to support our customers and communities through the potential financial hardships that have arisen through this crisis, including:

• | Consumer and homeowner needs based loan assistance

• | Commercial and Business needs based loan assistance

• | Access to the SBA Paycheck Protection Program

• | Extended Solution Center (call center) hours

• | Promotion of Mobile and Online banking solutions

• | $85,000 of donations to local food banks and hospitals

S&T is well positioned to be a source of strength and support during this crisis through our employees and customers supported by strong capital and liquidity.
First Quarter of 2020 Highlights:

• | Portfolio loans increased $109.6 million, or 6.2% annualized, compared to the fourth quarter of 2019.

• | Net interest margin was 3.53% compared to 3.55% for the fourth quarter of 2019 and 3.71% for the same quarter a year ago.

• | Return on average assets (ROA) was 0.61%, return on average equity (ROE) was 4.47% and return on average tangible equity (ROTE) (non-GAAP) was 6.82%. Excluding $2.3 million of merger related expenses ROA was 0.70% (non-GAAP), ROE was 5.13% (non-GAAP) and ROTE was 7.79% (non-GAAP)

• | S&T's Board of Directors declared a $0.28 per share dividend. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year.

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S&T Earnings Release -2
“Despite facing obvious challenges in the final month of the quarter, it has been rewarding to see the commitment and dedication of the S&T Bank team to adapt to a rapidly changing environment,” said Todd Brice, Chief Executive Officer. “The pandemic has presented many uncertainties, but the response of our employees to assist clients has been amazing and will strengthen our long-standing relationships with them.” Mr. Brice continued, “Prior to the COVID-19 pandemic we had tremendous momentum across all our lines of business and markets and are well positioned to capitalize on opportunities as the economy recovers.”
Net Interest Income
Net interest income increased $5.6 million to $70.0 million for the first quarter of 2020 compared to $64.4 million for the fourth quarter of 2019. The increase was primarily due to growth in average loan balances of $666.3 million, the majority due to a full quarter impact for the DNB merger, which added $900 million of loans and $991 million of deposits. Net interest margin on a fully taxable equivalent basis (FTE) (non-GAAP) declined 2 basis points to 3.53% for the first quarter of 2020 from 3.55% in the fourth quarter of 2019 primarily due to decreases in short-term rates. Loan rates decreased 13 basis points to 4.64% and total interest-bearing liability costs decreased 16 basis points to 1.22%.
Asset Quality
The adoption of the Current Expected Credit Loss (CECL) accounting standard as of January 1, 2020 and the uncertainty around the COVID-19 pandemic both contributed to the higher Allowance for Credit Losses (ACL) of 1.34% of total portfolio loans as of March 31, 2020 compared to 0.87% at December 31, 2019. The provision for credit losses increased to $20.0 million in the first quarter of 2020 compared to $2.2 million in the fourth quarter of 2019. Included in the provision for credit losses in the first quarter of 2020 is $1.6 million for the reserve for unfunded commitments compared to $0.1 million in the fourth quarter of 2019. Net loan charge-offs were $11.2 million for the first quarter of 2020 compared to $2.0 million in the fourth quarter of 2019. The increase in net loan charge-offs in the first quarter 2020 primarily related to a $9.9 million Commercial & Industrial loan charge-off, which was classified as nonperforming and impaired in the fourth quarter of 2019. Total nonperforming loans increased $19.7 million to $73.8 million, or 1.02% of total loans, at March 31, 2020 compared to $54.1 million, or 0.76% of total loans at December 31, 2019. The increase in nonperforming loans in the first quarter of 2020 primarily related to a $20.9 million Commercial Real Estate relationship that had been experiencing difficulties prior to the onset of the pandemic.
Noninterest Income and Expense
Noninterest income decreased $2.8 million to $12.4 million in the first quarter of 2020 compared to $15.2 million in the fourth quarter of 2019. Other noninterest income decreased by $3.5 million primarily due to the decline in the fair value of the assets in a nonqualified benefit plan of $1.6 million and a reduction in the fair value of equity securities of $2.0 million. Mortgage banking income improved during the quarter by $0.5 million due to increased refinancing activity.
Noninterest expense decreased $3.7 million to $46.4 million for the first quarter of 2020 compared to $50.0 million in the fourth quarter of 2019. The decrease in noninterest expense was mainly due to a $7.9 million decrease in merger related expenses, to $2.3 million in the first quarter of 2020 compared to $10.2 million in the fourth quarter of 2019. The decrease of $1.5 million in salaries and employee benefits primarily related to the decline in the fair value of the liability in a nonqualified benefit plan. These decreases were offset by increases of $2.1 million in other expenses, $2.4 million in other taxes and $0.5 million in FDIC insurance expense. Included in other expenses was a $1.1 million increase related to historic tax credits and a $0.3 million increase in amortization of intangibles due to the DNB merger. Other taxes increased $2.4 million mainly due to a one-time adjustment related to a state sales tax assessment in the fourth quarter of 2019. The increase in FDIC insurance expense was due to $0.5 million of Small Bank Assessment Credits received in the fourth quarter of 2019.
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S&T Earnings Release -3
Financial Condition
Total assets increased $0.2 billion to $9.0 billion at March 31, 2020 compared to $8.8 billion at December 31, 2019. Portfolio loans grew during the quarter with an increase of $109.6 million, or 6.2% annualized, compared to the fourth quarter of 2019. Commercial loans grew $107.6 million during the quarter, or 7.9% annualized, with growth in all commercial portfolios. Deposits were $7.1 billion at March 31, 2020 compared to $7.0 billion at December 31, 2019.
Common shares totaling 411,430 were repurchased during the first quarter of 2020 at a total cost of $12.6 million, or an average of $30.52 per share. As the impact of the COVID-19 pandemic spread, repurchase activity was suspended in mid-March.
All regulatory risk-based capital ratios declined at March 31, 2020 compared to December 31, 2019 due to increases in risk weighted assets, lower retained earnings growth and share repurchases. 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 April 29, 2020. This is an increase of 3.7% compared to a dividend of $0.27 per share declared in the same period in the prior year. The dividend is payable June 2, 2020 to shareholders of record on May 19, 2020.
Conference Call
S&T will host its first quarter 2020 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, April 30, 2020. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “1st 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 May 7, 2020, by dialing 1.877.481.4010; the Conference ID is 33995.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.0 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 named by Forbes as a 2019 World's Best Bank. 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, stbank.com, and follow us on Facebook, Instagram, and LinkedIn.
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
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S&T Earnings Release -4
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; 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; 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; 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 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. |  | S&T Earnings Release - | 5
Consolidated Selected Financial Data |  |  |
Unaudited |  |  |

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands, except per share data) | Quarter |  | Quarter |  | Quarter |
INTEREST AND DIVIDEND INCOME |  |  |  |  |  |
Loans, including fees | $82,051 |  | $77,426 |  | $73,392 |
Investment securities: |  |  |  |  |  |
Taxable | 4,215 |  | 3,744 |  | 3,790 |
Tax-exempt | 870 |  | 836 |  | 844 |
Dividends | 453 |  | 451 |  | 564 |
Total Interest and Dividend Income | 87,589 |  | 82,457 |  | 78,590 |
INTEREST EXPENSE |  |  |  |  |  |
Deposits | 15,338 |  | 15,783 |  | 14,981 |
Borrowings and junior subordinated debt securities | 2,215 |  | 2,262 |  | 3,253 |
Total Interest Expense | 17,553 |  | 18,045 |  | 18,234 |
NET INTEREST INCOME | 70,036 |  | 64,412 |  | 60,356 |
Provision for credit losses(a) | 20,050 |  | 2,239 |  | 5,684 |
Net Interest Income After Provision for Credit Losses | 49,986 |  | 62,173 |  | 54,672 |
NONINTEREST INCOME |  |  |  |  |  |
Net gain (loss) on sale of securities | — |  |  | (26 | ) |  | — |  |
Service charges on deposit accounts | 3,558 |  | 3,540 |  | 3,153 |
Debit and credit card | 3,482 |  | 3,454 |  | 2,974 |
Commercial loan swap income | 2,484 |  | 2,356 |  | 581 |
Wealth management | 2,362 |  | 2,412 |  | 2,048 |
Mortgage banking | 1,236 |  | 765 |  | 494 |
Other | (719) |  | 2,730 |  | 2,112 |
Total Noninterest Income | 12,403 |  | 15,231 |  | 11,362 |
NONINTEREST EXPENSE |  |  |  |  |  |
Salaries and employee benefits | 21,335 |  | 22,851 |  | 20,910 |
Data processing and information technology | 3,868 |  | 4,141 |  | 3,233 |
Net occupancy | 3,765 |  | 3,219 |  | 3,036 |
Furniture, equipment and software | 2,519 |  | 2,337 |  | 2,230 |
Merger related expense | 2,342 |  | 10,179 |  | — |  |
Other taxes | 1,600 |  | (818) |  | 1,185 |
Marketing | 1,111 |  | 1,116 |  | 1,141 |
Professional services and legal | 1,048 |  | 862 |  | 1,184 |
FDIC insurance | 770 |  | 222 |  | 516 |
Other | 8,033 |  | 5,935 |  | 5,449 |
Total Noninterest Expense | 46,391 |  | 50,044 |  | 38,884 |
Income Before Taxes | 15,998 |  | 27,360 |  | 27,150 |
Provision for income taxes | 2,767 |  | 5,091 |  | 4,222 |
Net Income | $13,231 |  | $22,269 |  | $22,928 |
Per Share Data |  |  |  |  |  |
Shares outstanding at end of period | 39,125,425 |  | 39,560,304 |  | 34,330,136 |
Average shares outstanding - diluted | 39,325,938 |  | 35,913,237 |  | 34,542,811 |
Diluted earnings per share | $0.34 |  | $0.62 |  | $0.66 |
Dividends declared per share | $0.28 |  | $0.28 |  | $0.27 |
Dividend yield (annualized) | 4.10 | % |  | 2.78 | % |  | 2.73 | % |
Dividends paid to net income | 83.52 | % |  | 42.94 | % |  | 40.64 | % |
Book value | $30.06 |  | $30.13 |  | $27.47 |
Tangible book value (1) | $20.29 |  | $20.52 |  | $19.04 |
Market value | $27.32 |  | $40.29 |  | $39.53 |
Profitability Ratios (annualized) |  |  |  |  |  |
Return on average assets | 0.61 | % |  | 1.11 | % |  | 1.29 | % |
Return on average shareholders' equity | 4.47 | % |  | 8.30 | % |  | 9.84 | % |
Return on average tangible shareholders' equity (2) | 6.82 | % |  | 12.04 | % |  | 14.27 | % |
Efficiency ratio (FTE) (3) | 52.89 | % |  | 49.64 | % |  | 53.55 | % |

(a)Upon adoption of CECL on January 1, 2020, provision for credit losses has been modified to also include amounts related to unfunded loan commitments. Prior period amounts have been restated to conform to the current presentation.
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S&T Bancorp, Inc. |  | S&T Earnings Release - | 6
Consolidated Selected Financial Data |  |  |
Unaudited |  |  |

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
ASSETS |  |  |  |  |  |
Cash and due from banks, including interest-bearing deposits | $187,684 |  | $169,304 |  | $116,820 |
Federal funds sold | — |  |  | 28,519 |  | — |  |
Securities, at fair value | 799,532 |  | 784,283 |  | 680,420 |
Loans held for sale | 7,309 |  | 5,256 |  | 2,706 |
Commercial loans: |  |  |  |  |  |
Commercial real estate | 3,442,495 |  | 3,416,518 |  | 2,901,625 |
Commercial and industrial | 1,781,402 |  | 1,720,833 |  | 1,513,007 |
Commercial construction | 396,518 |  | 375,445 |  | 245,658 |
Total Commercial Loans | 5,620,415 |  | 5,512,796 |  | 4,660,290 |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 988,816 |  | 998,585 |  | 729,914 |
Home equity | 544,405 |  | 538,348 |  | 463,566 |
Installment and other consumer | 79,887 |  | 79,033 |  | 70,960 |
Consumer construction | 13,222 |  | 8,390 |  | 10,722 |
Total Consumer Loans | 1,626,330 |  | 1,624,356 |  | 1,275,162 |
Total Portfolio Loans | 7,246,745 |  | 7,137,152 |  | 5,935,452 |
Allowance for credit losses | (96,850) |  | (62,224) |  | (61,409) |
Total Portfolio Loans, Net | 7,149,895 |  | 7,074,928 |  | 5,874,043 |
Federal Home Loan Bank and other restricted stock, at cost | 28,253 |  | 22,977 |  | 19,959 |
Commercial rate swaps | 88,135 |  | 25,647 |  | 10,645 |
Goodwill | 374,270 |  | 371,621 |  | 287,446 |
Other assets | 370,418 |  | 282,115 |  | 237,223 |
Total Assets | $9,005,496 |  | $8,764,649 |  | $7,229,262 |
LIABILITIES |  |  |  |  |  |
Deposits: |  |  |  |  |  |
Noninterest-bearing demand | $1,702,960 |  | $1,698,082 |  | $1,423,436 |
Interest-bearing demand | 962,937 |  | 962,331 |  | 541,053 |
Money market | 1,967,692 |  | 1,949,811 |  | 1,700,964 |
Savings | 836,237 |  | 830,919 |  | 767,175 |
Certificates of deposit | 1,588,053 |  | 1,595,433 |  | 1,400,773 |
Total Deposits | 7,057,879 |  | 7,036,576 |  | 5,833,401 |
Borrowings: |  |  |  |  |  |
Securities sold under repurchase agreements | 69,644 |  | 19,888 |  | 23,427 |
Short-term borrowings | 410,240 |  | 281,319 |  | 235,000 |
Long-term borrowings | 50,180 |  | 50,868 |  | 70,418 |
Junior subordinated debt securities | 64,038 |  | 64,277 |  | 45,619 |
Total Borrowings | 594,102 |  | 416,352 |  | 374,464 |
Other liabilities | 177,264 |  | 119,723 |  | 78,241 |
Total Liabilities | 7,829,245 |  | 7,572,651 |  | 6,286,106 |
SHAREHOLDERS' EQUITY |  |  |  |  |  |
Total Shareholders' Equity | 1,176,251 |  | 1,191,998 |  | 943,156 |
Total Liabilities and Shareholders' Equity | $9,005,496 |  | $8,764,649 |  | $7,229,262 |
Capitalization Ratios |  |  |  |  |  |
Shareholders' equity / assets | 13.06 | % |  | 13.60 | % |  | 13.05 | % |
Tangible common equity / tangible assets (4) | 9.21 | % |  | 9.68 | % |  | 9.42 | % |
Tier 1 leverage ratio | 10.03 | % |  | 10.29 | % |  | 9.96 | % |
Common equity tier 1 capital | 10.93 | % |  | 11.43 | % |  | 11.35 | % |
Risk-based capital - tier 1 | 11.32 | % |  | 11.84 | % |  | 11.69 | % |
Risk-based capital - total | 12.73 | % |  | 13.22 | % |  | 13.19 | % |

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

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Net Interest Margin (FTE) (QTD Averages) |  |  |  |  |  |
ASSETS |  |  |  |  |  |
Interest-bearing deposits with banks | $99,646 | 1.42% | $82,255 | 1.44% | $53,588 | 2.63%
Securities, at fair value | 786,858 | 2.54% | 696,889 | 2.61% | 680,517 | 2.68%
Loans held for sale | 1,867 | 3.76% | 3,582 | 3.56% | 894 | 4.07%
Commercial real estate | 3,408,684 | 4.73% | 3,056,513 | 4.77% | 2,905,272 | 5.02%
Commercial and industrial | 1,751,678 | 4.53% | 1,666,061 | 4.77% | 1,508,658 | 5.20%
Commercial construction | 386,363 | 4.68% | 339,274 | 4.71% | 249,997 | 5.37%
Total Commercial Loans | 5,546,725 | 4.66% | 5,061,848 | 4.77% | 4,663,927 | 5.10%
Residential mortgage | 990,866 | 4.18% | 850,566 | 4.42% | 722,554 | 4.38%
Home equity | 540,193 | 4.84% | 499,520 | 5.03% | 467,739 | 5.44%
Installment and other consumer | 79,680 | 7.01% | 76,029 | 7.13% | 69,099 | 7.17%
Consumer construction | 10,508 | 4.61% | 12,021 | 4.96% | 9,466 | 6.19%
Total Consumer Loans | 1,621,247 | 4.54% | 1,438,136 | 4.78% | 1,268,858 | 4.93%
Total Portfolio Loans | 7,167,972 | 4.64% | 6,499,984 | 4.77% | 5,932,785 | 5.06%
Total Loans | 7,169,839 | 4.64% | 6,503,566 | 4.77% | 5,933,679 | 5.06%
Federal Home Loan Bank and other restricted stock | 23,601 | 6.90% | 21,791 | 7.44% | 24,471 | 8.49%
Total Interest-earning Assets | 8,079,944 | 4.40% | 7,304,501 | 4.53% | 6,692,255 | 4.81%
Noninterest-earning assets | 687,382 |  | 619,586 |  | 518,500 |
Total Assets | $8,767,326 |  | $7,924,087 |  | $7,210,755 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
Interest-bearing demand | $942,030 | 0.59% | $810,909 | 0.75% | $545,695 | 0.41%
Money market | 1,993,764 | 1.27% | 1,791,981 | 1.53% | 1,568,417 | 1.89%
Savings | 830,985 | 0.23% | 783,990 | 0.26% | 770,587 | 0.25%
Certificates of deposit | 1,601,324 | 1.80% | 1,417,619 | 1.91% | 1,434,511 | 1.88%
Total interest-bearing Deposits | 5,368,103 | 1.15% | 4,804,499 | 1.30% | 4,319,210 | 1.41%
Securities sold under repurchase agreements | 30,790 | 0.56% | 14,046 | 0.75% | 23,170 | 0.52%
Short-term borrowings | 286,365 | 1.61% | 241,368 | 2.08% | 319,389 | 2.72%
Long-term borrowings | 51,845 | 2.52% | 56,026 | 2.63% | 70,196 | 2.84%
Junior subordinated debt securities | 64,195 | 4.40% | 54,801 | 4.33% | 45,619 | 5.21%
Total Borrowings | 433,195 | 2.06% | 366,241 | 2.45% | 458,374 | 2.88%
Total interest-bearing Liabilities | 5,801,298 | 1.22% | 5,170,740 | 1.38% | 4,777,584 | 1.55%
Noninterest-bearing liabilities | 1,776,453 |  | 1,689,076 |  | 1,488,057 |
Shareholders' equity | 1,189,575 |  | 1,064,271 |  | 945,114 |
Total Liabilities and Shareholders' Equity | $8,767,326 |  | $7,924,087 |  | $7,210,755 |
Net Interest Margin (5) |  | 3.53% |  | 3.55% |  | 3.71%

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

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Nonperforming Loans (NPL) |  |  |  |  |  |
Commercial loans: |  | % NPL |  | % NPL |  | % NPL
Commercial real estate |  | $50,508 |  | 1.47% |  | $29,140 |  | 0.85% |  | $29,109 |  | 1.00%
Commercial and industrial | 9,081 |  | 0.51% | 13,982 |  | 0.81% | 6,810 |  | 0.45%
Commercial construction | 571 |  | 0.14% | 737 |  | 0.20% | 1,226 |  | 0.50%
Total Nonperforming Commercial Loans | 60,160 |  | 1.07% | 43,859 |  | 0.80% | 37,145 |  | 0.80%
Consumer loans: |  |  |  |  |  |
Residential mortgage | 10,582 |  | 1.07% | 7,519 |  | 0.75% | 6,630 |  | 0.91%
Home equity | 2,797 |  | 0.51% | 2,639 |  | 0.49% | 4,146 |  | 0.89%
Installment and other consumer | 258 |  | 0.32% | 40 |  | 0.05% | 29 |  | 0.04%
Total Nonperforming Consumer Loans | 13,637 |  | 0.83% | 10,198 |  | 0.63% | 10,805 |  | 0.85%
Total Nonperforming Loans |  | $73,797 |  | 1.02% |  | $54,057 |  | 0.76% |  | $47,950 |  | 0.81%

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Loan Charge-offs/(Recoveries) |  |  |  |  |  |
Charge-offs |  | $11,445 |  |  |  | $2,798 |  |  |  | $6,023 |  |
Recoveries | (289 | ) |  | (802 | ) |  | (788 | ) |
Net Loan Charge-offs/(Recoveries) |  | $11,156 |  |  |  | $1,996 |  |  |  | $5,235 |  |
Net Loan Charge-offs/(Recoveries) |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate |  | $428 |  |  |  | $829 |  |  |  | ($121 | ) |
Commercial and industrial | 10,265 |  |  | (121 | ) |  | 5,059 |  |
Commercial construction | (2 | ) |  | 404 |  |  | (1 | ) |
Total Commercial Loan Charge-offs/(Recoveries) | 10,691 |  |  | 1,112 |  |  | 4,937 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 19 |  |  | 112 |  |  | 115 |  |
Home equity | 80 |  |  | 383 |  |  | (19 | ) |
Installment and other consumer | 366 |  |  | 389 |  |  | 284 |  |
Consumer construction | — |  |  | — |  |  | (82 | ) |
Total Consumer Loan Charge-offs | 465 |  |  | 884 |  |  | 298 |  |
Total Net Loan Charge-offs/(Recoveries) |  | $11,156 |  |  |  | $1,996 |  |  |  | $5,235 |  |

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Asset Quality Data |  |  |  |  |  |
Nonperforming loans |  | $73,797 |  |  |  | $54,057 |  |  |  | $47,950 |  |
OREO | 3,389 |  |  | 3,525 |  |  | 2,828 |  |
Nonperforming assets | 77,186 |  |  | 57,582 |  |  | 50,778 |  |
Troubled debt restructurings (nonaccruing) | 36,054 |  |  | 8,912 |  |  | 7,873 |  |
Troubled debt restructurings (accruing) | 15,189 |  |  | 36,960 |  |  | 23,002 |  |
Total troubled debt restructurings | 51,243 |  |  | 45,872 |  |  | 30,875 |  |
Nonperforming loans / loans | 1.02 | % |  | 0.76 | % |  | 0.81 | % |
Nonperforming assets / loans plus OREO | 1.06 | % |  | 0.81 | % |  | 0.85 | % |
Allowance for credit losses / total portfolio loans | 1.34 | % |  | 0.87 | % |  | 1.03 | % |
Allowance for credit losses / nonperforming loans | 131 | % |  | 115 | % |  | 128 | % |
Net loan charge-offs (recoveries) |  | $11,156 |  |  |  | $1,996 |  |  |  | $5,235 |  |
Net loan charge-offs (recoveries)(annualized) / average loans | 0.63 | % |  | 0.12 | % |  | 0.36 | % |

- more -

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

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

| 2020 |  | 2019 |  | 2019 |
| First |  | Fourth |  | First |
| Quarter |  | Quarter |  | Quarter |
(1) Tangible Book Value (non-GAAP) |  |  |  |  |  |
Total shareholders' equity |  | $1,176,251 |  |  |  | $1,191,998 |  |  |  | $943,156 |  |
Less: goodwill and other intangible assets | (384,557 | ) |  | (382,540 | ) |  | (289,864 | ) |
Tax effect of other intangible assets | 2,160 |  |  | 2,293 |  |  | 508 |  |
Tangible common equity (non-GAAP) |  | $793,854 |  |  |  | $811,751 |  |  |  | $653,800 |  |
Common shares outstanding | 39,125 |  |  | 39,560 |  |  | 34,330 |  |
Tangible book value (non-GAAP) |  | $20.29 |  |  |  | $20.52 |  |  |  | $19.04 |  |
(2) Return on Average Tangible Shareholders' Equity (non-GAAP) |  |  |  |  |  |
Net income (annualized) |  | $53,216 |  |  |  | $88,350 |  |  |  | $92,987 |  |
Plus: amortization of intangibles (annualized) | 2,542 |  |  | 1,298 |  |  | 739 |  |
Tax effect of amortization of intangibles (annualized) | (534 | ) |  | (273 | ) |  | (155 | ) |
Net income before amortization of intangibles (annualized) |  | $55,224 |  |  |  | $89,375 |  |  |  | $93,571 |  |
Average total shareholders' equity |  | $1,189,575 |  |  |  | $1,064,271 |  |  |  | $945,114 |  |
Less: average goodwill and other intangible assets | (382,025 | ) |  | (323,281 | ) |  | (289,954 | ) |
Tax effect of average goodwill and other intangible assets | 2,235 |  |  | 1,077 |  |  | 527 |  |
Average tangible equity (non-GAAP) |  | $809,785 |  |  |  | $742,067 |  |  |  | $655,687 |  |
Return on average tangible shareholders' equity (non-GAAP) | 6.82 | % |  | 12.04 | % |  | 14.27 | % |
(3) Efficiency Ratio (non-GAAP) |  |  |  |  |  |
Noninterest expense |  | $46,391 |  |  |  | $50,178 |  |  |  | $38,919 |  |
Less: merger related expenses | (2,342 | ) |  | (10,179 | ) |  | — |  |
Noninterest expense excluding nonrecurring items |  | $44,049 |  |  |  | $39,999 |  |  |  | $38,919 |  |
Net interest income per consolidated statements of net income |  | $70,036 |  |  |  | $60,827 |  |  |  | $60,356 |  |
Less: net (gains) losses on sale of securities | — |  |  | 26,000 |  |  | — |  |
Plus: taxable equivalent adjustment | 849 |  |  | 903 |  |  | 961 |  |
Net interest income (FTE) (non-GAAP) |  | $70,885 |  |  |  | $65,341 |  |  |  | $61,317 |  |
Noninterest income | 12,403 |  |  | 15,231 |  |  | 11,362 |  |
Net interest income (FTE) (non-GAAP) plus noninterest income |  | $83,288 |  |  |  | $80,572 |  |  |  | $72,679 |  |
Efficiency ratio (non-GAAP) | 52.89 | % |  | 49.64 | % |  | 53.55 | % |
(4) Tangible Common Equity / Tangible Assets (non-GAAP) |  |  |  |  |  |
Total shareholders' equity |  | $1,176,251 |  |  |  | $1,191,998 |  |  |  | $943,156 |  |
Less: goodwill and other intangible assets | (384,557 | ) |  | (382,540 | ) |  | (289,864 | ) |
Tax effect of goodwill and other intangible assets | 2,160 |  |  | 2,293 |  |  | 508 |  |
Tangible common equity (non-GAAP) |  | $793,854 |  |  |  | $811,751 |  |  |  | $653,800 |  |
Total assets |  | $9,005,497 |  |  |  | $8,764,649 |  |  |  | $7,229,262 |  |
Less: goodwill and other intangible assets | (384,557 | ) |  | (382,540 | ) |  | (289,864 | ) |
Tax effect of goodwill and other intangible assets | 2,160 |  |  | 2,293 |  |  | 508 |  |
Tangible assets (non-GAAP) |  | $8,623,100 |  |  |  | $8,384,402 |  |  |  | $6,939,906 |  |
Tangible common equity to tangible assets (non-GAAP) | 9.21 | % |  | 9.68 | % |  | 9.42 | % |
(5) Net Interest Margin Rate (FTE) (non-GAAP) |  |  |  |  |  |
Interest income |  | $87,589 |  |  |  | $82,457 |  |  |  | $78,590 |  |
Less: interest expense | 17,553 |  |  | (18,045 | ) |  | (18,234 | ) |
Net interest income per consolidated statements of net income |  | $70,036 |  |  |  | $64,412 |  |  |  | $60,356 |  |
Plus: taxable equivalent adjustment | 849 |  |  | 903 |  |  | 961 |  |
Net interest income (FTE) (non-GAAP) |  | $70,885 |  |  |  | $65,315 |  |  |  | $61,317 |  |
Net interest income (FTE) (annualized) |  | $285,098 |  |  |  | $259,130 |  |  |  | $248,675 |  |
Average earning assets |  | $8,079,944 |  |  |  | $7,304,501 |  |  |  | $6,692,255 |  |
Net interest margin - (FTE) (non-GAAP) | 3.53 | % |  | 3.55 | % |  | 3.71 | % |

- more -

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

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:
The following profitability metrics are adjusted to exclude merger related expenses from the DNB merger in the first quarter ended March 31, 2020.

| 2020 |
| First |
| Quarter |
Return on Average Tangible Shareholders' Equity (non-GAAP) |  |
Net income |  | $13,231 |  |
Adjust for merger related expenses | 2,342 |  |
Tax effect of merger related expenses | (405 | ) |
Net income excluding merger related expenses |  | $15,168 |  |
Net income excluding merger related expenses (annualized) |  | $61,005 |  |
Plus: amortization of intangibles (annualized) | 2,542 |  |
Tax effect of amortization of intangibles (annualized) | (440 | ) |
Net income before amortization of intangibles (annualized) |  | $63,107 |  |
Average total shareholders' equity |  | $1,189,575 |  |
Less: average goodwill and other intangible assets | (382,025 | ) |
Tax effect of average goodwill and other intangible assets | 2,235 |  |
Average tangible equity (non-GAAP) |  | $809,785 |  |
Return on average tangible shareholders' equity (non-GAAP) | 7.79 | % |
Return on Average Assets (non-GAAP) |  |
Net income excluding merger related expenses (annualized) |  | $61,005 |  |
Average total assets | 8,767,326 |  |
Return on average assets (non-GAAP) | 0.70 | % |
Return on Average Equity (non-GAAP) |  |
Net income excluding merger related expenses (annualized) |  | $61,005 |  |
Average total shareholders' equity | 1,189,575 |  |
Return on average assets (non-GAAP) | 5.13 | % |