EX-99.1 2 stba-20220630xex991.htm EX-99.1

CONTACT: Mark Kochvar Chief Financial Officer 724.465.4826 mark.kochvar@stbank.com stbancorp.com |  |

FOR IMMEDIATE RELEASE
S&T Bancorp, Inc. Announces Second Quarter 2022 Net Income
Indiana, Pa. - July 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 $28.9 million, or $0.74 per diluted share, for the second quarter of 2022 compared to net income of $29.1 million, or $0.74 per diluted share, for the first quarter of 2022 and net income of $28.4 million, or $0.72 per diluted share, for the second quarter of 2021.
Second Quarter of 2022 Highlights:
•Return on average assets (ROA) of 1.25%, return on average equity (ROE) of 9.83% and return on average tangible equity (ROTE) (non-GAAP) of 14.63%.
•Pre-provision net revenue to average assets (PPNR) (non-GAAP) of 1.71%.
•Net interest income increased $7.5 million, or 11%, and NIM (FTE) (Non-GAAP) increased 40 basis points compared to the first quarter of 2022.
•Strong consumer loan growth of $111.7 million, or 27.5% annualized, compared to March 31, 2022.
•Nonperforming assets decreased $20.7 million, or 34.8%, compared to March 31, 2022.
•S&T’s Board of Directors approved a $0.30 per share dividend compared to $0.28 per share in the same period last year.
"Our performance was strong this quarter with significant growth in net interest income and net interest margin. We also saw significant improvement in our nonperforming assets with a decline of nearly 35% from the first quarter and a 66% decline from a year ago," said Chris McComish, chief executive officer. "We are extremely proud to be recently named by Forbes as a Best-In-State Bank especially on the heels of our recognition by J.D. Power as the highest in overall customer satisfaction with retail banking in the Pennsylvania region. Both awards are an honor and a true reflection of our dedicated employees and the trust our customers have placed in us to help meet their financial needs."
Net Interest Income
Net interest income increased $7.5 million, or 11%, to $75.2 million for the second quarter of 2022 compared to $67.7 million for the first quarter of 2022. The increase in net interest income was primarily due to higher interest rates in the second quarter. The yield on total average loans increased 34 basis points compared to the first quarter of 2022 while the cost of total interest-bearing deposits remained unchanged at 0.14%. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased 40 basis points to 3.56% compared to 3.16% in the prior quarter.
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S&T Earnings Release -2
Asset Quality
Total nonperforming assets decreased $20.7 million, or 34.8%, to $38.8 million at June 30, 2022. The decrease primarily related to the resolution of a $9.9 million commercial and industrial, or C&I, relationship and additional loan pay-offs. Significant progress has been made in reducing nonperforming assets over the past year with a reduction of $74.9 million, or 65.9%, since June 30, 2021. Nonperforming assets to total loans plus other real estate owned, or OREO, decreased 30 basis points to 0.55% at June 30, 2022 compared to 0.85% at
March 31, 2022 and 1.62% at June 30, 2021. Net loan charge-offs were $3.0 million for the second quarter of 2022 compared to net loan recoveries of $2.0 million in the first quarter of 2022. Gross loan charge-offs of $7.7 million were offset by recoveries of $4.7 million during the second quarter of 2022. The C&I relationship previously mentioned resulted in a $5.5 million charge-off which was offset by a $3.9 million C&I recovery from a relationship that was charged off in 2019. The provision for credit losses was $3.2 million for the second quarter of 2022 compared to negative $0.5 million in the first quarter of 2022. The negative provision in the first quarter of 2022 was mainly due to the net recovery of $2.0 million. The allowance for credit losses was 1.39% of total portfolio loans as of June 30, 2022 compared to 1.43% at March 31, 2022.
Noninterest Income and Expense
Noninterest income decreased $2.6 million to $12.6 million in the second quarter of 2022 compared to $15.2 million in the first quarter of 2022. Other income decreased $1.9 million primarily related to the decline in the fair value of the assets in a nonqualified benefit plan and a $0.5 million gain on sale of OREO in the first quarter of 2022. Mortgage banking income decreased $0.5 million due to a shift in the volume of loans sold to loans held in the portfolio. Noninterest expense increased $1.0 million to $48.4 million for the second quarter of 2022 compared to $47.4 million in the first quarter of 2022 mainly due to an increase of $1.1 million in salaries and employee benefits related to higher incentives and medical expense offset by a decline in the fair value of the liability in a nonqualified benefit plan. Professional services and legal increased $0.4 million related to various consulting engagements during the second quarter of 2022.
Financial Condition
Total assets were $9.1 billion at June 30, 2022 compared to $9.4 billion at March 31, 2022. The decrease in total assets related to a $479.1 million decline in cash balances which was mainly due to a decrease in total deposits and an increase in loans. Total portfolio loans excluding, Paycheck Protection Program, or PPP, increased by $107.2 million, or 6.2% annualized, compared to March 31, 2022. The consumer loan portfolio grew $111.7 million, or 27.5% annualized, with strong growth in both residential mortgages and home equity compared to
March 31, 2022. Noninterest-bearing demand deposits were stable at $2.7 billion compared to March 31, 2022. Interest-bearing deposits declined $344.7 million compared to March 31, 2022. The decline in interest-bearing deposits was concentrated in higher balance, rate sensitive customer accounts.
During the second quarter of 2022, 151,220 common shares were repurchased at a total cost of $4.2 million, or an average of $27.46 per share. S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
Dividend
S&T's Board of Directors approved a $0.30 per share cash dividend on July 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 August 18, 2022 to shareholders of record on August 4, 2022.
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S&T Earnings Release -3
Conference Call
S&T will host its second quarter 2022 earnings conference call live over the Internet at 1:00 p.m. ET on Thursday, July 21, 2022. To access the webcast, go to S&T’s webpage at www.stbancorp.com and click on “Events & Presentations.” Select “2nd 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 July 28, 2022, by dialing 1.877.481.4010; the Conference ID is 45770.
About S&T Bancorp, Inc. and S&T Bank
S&T Bancorp, Inc. is a $9.1 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in five markets including Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio and Upstate New York. S&T Bank was recently named by Forbes as a 2022 Best-in-State Bank. S&T Bank also received the highest ranking in customer satisfaction for retail banking in the Pennsylvania region by J.D. Power*. 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,
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S&T Earnings Release -4
including the ultimate impact of the pandemic on the economy generally and on our operations; our participation in the Paycheck Protection Program; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.
Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2021, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
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S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited |  | S&T Earnings Release - | 5

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands, except per share data) | Quarter |  | Quarter |  | Quarter |
INTEREST AND DIVIDEND INCOME |  |  |  |  |  |
Loans, including fees | $71,018 |  |  | $64,593 |  |  | $66,942 |  |
Investment Securities: |  |  |  |  |  |
Taxable | 5,995 |  |  | 4,936 |  |  | 3,793 |  |
Tax-exempt | 484 |  |  | 482 |  |  | 690 |  |
Dividends | 102 |  |  | 98 |  |  | 152 |  |
Total Interest and Dividend Income | 77,599 |  |  | 70,109 |  |  | 71,577 |  |
INTEREST EXPENSE |  |  |  |  |  |
Deposits | 1,790 |  |  | 1,853 |  |  | 2,652 |  |
Borrowings and junior subordinated debt securities | 615 |  |  | 523 |  |  | 621 |  |
Total Interest Expense | 2,405 |  |  | 2,376 |  |  | 3,273 |  |
NET INTEREST INCOME | 75,194 |  |  | 67,733 |  |  | 68,304 |  |
Provision for credit losses | 3,204 |  |  | (512) |  |  | 2,561 |  |
Net Interest Income After Provision for Credit Losses | 71,990 |  |  | 68,245 |  |  | 65,743 |  |
NONINTEREST INCOME |  |  |  |  |  |
Net gain on sale of securities | — |  |  | — |  |  | 29 |  |
Debit and credit card | 4,756 |  |  | 5,063 |  |  | 4,744 |  |
Service charges on deposit accounts | 4,181 |  |  | 3,974 |  |  | 3,642 |  |
Wealth management | 3,247 |  |  | 3,242 |  |  | 3,167 |  |
Mortgage banking | 466 |  |  | 1,015 |  |  | 1,734 |  |
Other | (20) |  |  | 1,932 |  |  | 2,108 |  |
Total Noninterest Income | 12,630 |  |  | 15,226 |  |  | 15,424 |  |
NONINTEREST EXPENSE |  |  |  |  |  |
Salaries and employee benefits | 24,811 |  |  | 23,712 |  |  | 24,515 |  |
Data processing and information technology | 4,104 |  |  | 4,435 |  |  | 3,787 |  |
Occupancy | 3,634 |  |  | 3,882 |  |  | 3,434 |  |
Furniture, equipment and software | 2,939 |  |  | 2,777 |  |  | 2,402 |  |
Professional services and legal | 2,380 |  |  | 1,949 |  |  | 1,637 |  |
Other taxes | 1,682 |  |  | 1,537 |  |  | 1,832 |  |
Marketing | 1,524 |  |  | 1,361 |  |  | 996 |  |
FDIC insurance | 882 |  |  | 937 |  |  | 924 |  |
Other | 6,468 |  |  | 6,824 |  |  | 6,302 |  |
Total Noninterest Expense | 48,424 |  |  | 47,414 |  |  | 45,829 |  |
Income Before Taxes | 36,196 |  |  | 36,057 |  |  | 35,338 |  |
Income tax expense | 7,338 |  |  | 6,914 |  |  | 6,971 |  |
Net Income | $28,858 |  |  | $29,143 |  |  | $28,367 |  |
Per Share Data |  |  |  |  |  |
Shares outstanding at end of period | 39,148,999 |  |  | 39,351,688 |  |  | 39,345,719 |  |
Average shares outstanding - diluted | 39,099,631 |  |  | 39,089,933 |  |  | 39,048,971 |  |
Diluted earnings per share | $0.74 |  |  | $0.74 |  |  | $0.72 |  |
Dividends declared per share | $0.30 |  |  | $0.29 |  |  | $0.28 |  |
Dividend yield (annualized) | 4.37 | % |  | 3.92 | % |  | 3.58 | % |
Dividends paid to net income | 40.86 | % |  | 39.06 | % |  | 38.74 | % |
Book value | $30.10 |  |  | $30.11 |  |  | $30.21 |  |
Tangible book value (1) | $20.44 |  |  | $20.49 |  |  | $20.57 |  |
Market value | $27.43 |  |  | $29.58 |  |  | $31.30 |  |
Profitability Ratios (Annualized) |  |  |  |  |  |
Return on average assets | 1.25 | % |  | 1.25 | % |  | 1.21 | % |
Return on average shareholders' equity | 9.83 | % |  | 9.88 | % |  | 9.65 | % |
Return on average tangible shareholders' equity(2) | 14.63 | % |  | 14.61 | % |  | 14.41 | % |
Pre-provision net revenue/ average assets(3) | 1.71 | % |  | 1.52 | % |  | 1.61 | % |
Efficiency ratio (FTE)(4) | 54.82 | % |  | 56.82 | % |  | 54.37 | % |

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

|  |  | Six Months Ended June 30, |
(dollars in thousands, except per share data) |  |  | 2022 |  | 2021 |
INTEREST AND DIVIDEND INCOME |  |  |  |  |  |
Loans, including fees |  |  | $135,611 |  |  | $137,174 |  |
Investment Securities: |  |  |  |  |  |
Taxable |  |  | 10,931 |  |  | 7,356 |  |
Tax-exempt |  |  | 966 |  |  | 1,503 |  |
Dividends |  |  | 200 |  |  | 325 |  |
Total Interest and Dividend Income |  |  | 147,708 |  |  | 146,358 |  |
INTEREST EXPENSE |  |  |  |  |  |
Deposits |  |  | 3,643 |  |  | 6,133 |  |
Borrowings and junior subordinated debt securities |  |  | 1,138 |  |  | 1,263 |  |
Total Interest Expense |  |  | 4,781 |  |  | 7,396 |  |
NET INTEREST INCOME |  |  | 142,927 |  |  | 138,962 |  |
Provision for credit losses |  |  | 2,692 |  |  | 5,699 |  |
Net Interest Income After Provision for Credit Losses |  |  | 140,235 |  |  | 133,263 |  |
NONINTEREST INCOME |  |  |  |  |  |
Net gain on sale of securities |  |  | — |  |  | 29 |  |
Debit and credit card |  |  | 9,819 |  |  | 8,906 |  |
Service charges on deposit accounts |  |  | 8,155 |  |  | 7,116 |  |
Wealth management |  |  | 6,489 |  |  | 6,111 |  |
Mortgage banking |  |  | 1,481 |  |  | 6,044 |  |
Other |  |  | 1,912 |  |  | 4,541 |  |
Total Noninterest Income |  |  | 27,856 |  |  | 32,747 |  |
NONINTEREST EXPENSE |  |  |  |  |  |
Salaries and employee benefits |  |  | 48,523 |  |  | 47,842 |  |
Data processing and information technology |  |  | 8,539 |  |  | 8,012 |  |
Occupancy |  |  | 7,516 |  |  | 7,261 |  |
Furniture, equipment and software |  |  | 5,716 |  |  | 5,042 |  |
Professional services and legal |  |  | 4,329 |  |  | 3,168 |  |
Other taxes |  |  | 3,219 |  |  | 3,268 |  |
Marketing |  |  | 2,885 |  |  | 2,318 |  |
FDIC insurance |  |  | 1,819 |  |  | 1,970 |  |
Other |  |  | 13,292 |  |  | 12,614 |  |
Total Noninterest Expense |  |  | 95,838 |  |  | 91,495 |  |
Income Before Taxes |  |  | 72,253 |  |  | 74,515 |  |
Income tax expense |  |  | 14,252 |  |  | 14,247 |  |
Net Income |  |  | $58,001 |  |  | $60,268 |  |
Per Share Data |  |  |  |  |  |
Average shares outstanding - diluted |  |  | 39,095,716 |  |  | 39,039,007 |  |
Diluted earnings per share |  |  | $1.48 |  |  | $1.54 |  |
Dividends declared per share |  |  | $0.59 |  |  | $0.56 |  |
Dividends paid to net income |  |  | 39.96 | % |  | 36.44 | % |
Profitability Ratios (annualized) |  |  |  |  |  |
Return on average assets |  |  | 1.25 | % |  | 1.31 | % |
Return on average shareholders' equity |  |  | 9.85 | % |  | 10.39 | % |
Return on average tangible shareholders' equity(5) |  |  | 14.62 | % |  | 15.57 | % |
Pre-provision net revenue / average assets(6) |  |  | 1.62 | % |  | 1.75 | % |
Efficiency ratio (FTE)(7) |  |  | 55.79 | % |  | 52.89 | % |

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
ASSETS |  |  |  |  |  |
Cash and due from banks, including interest-bearing deposits | $344,694 |  |  | $823,757 |  |  | $985,278 |  |
Securities, at fair value | 1,068,576 |  |  | 1,028,218 |  |  | 840,375 |  |
Loans held for sale | 1,311 |  |  | 1,346 |  |  | 7,648 |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate | 3,191,669 |  |  | 3,257,955 |  |  | 3,246,533 |  |
Commercial and industrial | 1,695,031 |  |  | 1,675,316 |  |  | 1,774,358 |  |
Commercial construction | 410,425 |  |  | 398,592 |  |  | 478,153 |  |
Total Commercial Loans | 5,297,125 |  |  | 5,331,863 |  |  | 5,499,044 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 975,109 |  |  | 912,531 |  |  | 859,329 |  |
Home equity | 611,893 |  |  | 581,821 |  |  | 547,658 |  |
Installment and other consumer | 119,938 |  |  | 112,297 |  |  | 88,210 |  |
Consumer construction | 36,829 |  |  | 25,399 |  |  | 13,110 |  |
Total Consumer Loans | 1,743,769 |  |  | 1,632,048 |  |  | 1,508,307 |  |
Total Portfolio Loans | 7,040,894 |  |  | 6,963,911 |  |  | 7,007,351 |  |
Allowance for credit losses | (98,095) |  |  | (99,915) |  |  | (109,636) |  |
Total Portfolio Loans, Net | 6,942,799 |  |  | 6,863,996 |  |  | 6,897,715 |  |
Federal Home Loan Bank and other restricted stock, at cost | 7,949 |  |  | 9,349 |  |  | 10,106 |  |
Goodwill | 373,424 |  |  | 373,424 |  |  | 373,424 |  |
Other assets | 365,061 |  |  | 332,191 |  |  | 381,286 |  |
Total Assets | $9,103,814 |  |  | $9,432,281 |  |  | $9,495,832 |  |
LIABILITIES |  |  |  |  |  |
Deposits: |  |  |  |  |  |
Noninterest-bearing demand | $2,736,849 |  |  | $2,740,315 |  |  | $2,668,833 |  |
Interest-bearing demand | 880,432 |  |  | 1,070,656 |  |  | 979,300 |  |
Money market | 1,888,506 |  |  | 1,992,916 |  |  | 2,047,254 |  |
Savings | 1,125,344 |  |  | 1,117,985 |  |  | 1,050,256 |  |
Certificates of deposit | 981,116 |  |  | 1,038,586 |  |  | 1,269,621 |  |
Total Deposits | 7,612,247 |  |  | 7,960,458 |  |  | 8,015,264 |  |
Borrowings: |  |  |  |  |  |
Securities sold under repurchase agreements | 39,259 |  |  | 70,112 |  |  | 68,587 |  |
Long-term borrowings | 21,988 |  |  | 22,171 |  |  | 22,969 |  |
Junior subordinated debt securities | 54,423 |  |  | 54,408 |  |  | 64,113 |  |
Total Borrowings | 115,670 |  |  | 146,691 |  |  | 155,669 |  |
Other liabilities | 197,539 |  |  | 140,182 |  |  | 136,166 |  |
Total Liabilities | 7,925,456 |  |  | 8,247,331 |  |  | 8,307,099 |  |
SHAREHOLDERS' EQUITY |  |  |  |  |  |
Total Shareholders' Equity | 1,178,358 |  |  | 1,184,950 |  |  | 1,188,733 |  |
Total Liabilities and Shareholders' Equity | $9,103,814 |  |  | $9,432,281 |  |  | $9,495,832 |  |
Capitalization Ratios |  |  |  |  |  |
Shareholders' equity / assets | 12.94 | % |  | 12.56 | % |  | 12.52 | % |
Tangible common equity / tangible assets(9) | 9.17 | % |  | 8.91 | % |  | 8.88 | % |
Tier 1 leverage ratio | 10.25 | % |  | 9.85 | % |  | 9.52 | % |
Common equity tier 1 capital | 12.34 | % |  | 12.26 | % |  | 11.98 | % |
Risk-based capital - tier 1 | 12.74 | % |  | 12.67 | % |  | 12.40 | % |
Risk-based capital - total | 14.23 | % |  | 14.18 | % |  | 14.00 | % |

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Net Interest Margin (FTE) (QTD Averages) |  |  |  |  |  |
ASSETS |  |  |  |  |  |
Interest-bearing deposits with banks | $528,413 | 0.78% | $756,141 | 0.16% | $785,465 | 0.09%
Securities, at fair value | 1,024,106 | 2.19% | 1,002,212 | 2.10% | 826,861 | 2.19%
Loans held for sale | 1,406 | 3.95% | 1,545 | 3.51% | 4,353 | 3.01%
Commercial real estate | 3,197,406 | 4.14% | 3,257,238 | 3.65% | 3,251,894 | 3.69%
Commercial and industrial | 1,685,728 | 4.31% | 1,712,865 | 3.98% | 1,890,538 | 3.90%
Commercial construction | 404,856 | 3.78% | 409,264 | 3.30% | 462,928 | 3.34%
Total Commercial Loans | 5,287,990 | 4.16% | 5,379,367 | 3.73% | 5,605,359 | 3.73%
Residential mortgage | 939,756 | 3.98% | 896,268 | 4.02% | 863,254 | 4.17%
Home equity | 594,529 | 3.56% | 570,781 | 3.43% | 535,933 | 3.50%
Installment and other consumer | 119,041 | 5.36% | 109,972 | 5.44% | 84,259 | 6.05%
Consumer construction | 31,204 | 3.36% | 21,833 | 3.37% | 13,264 | 6.39%
Total Consumer Loans | 1,684,530 | 3.92% | 1,598,854 | 3.90% | 1,496,710 | 4.06%
Total Portfolio Loans | 6,972,520 | 4.11% | 6,978,221 | 3.77% | 7,102,069 | 3.80%
Total Loans | 6,973,926 | 4.11% | 6,979,765 | 3.77% | 7,106,422 | 3.80%
Federal Home Loan Bank and other restricted stock | 8,939 | 3.69% | 9,280 | 3.40% | 10,529 | 4.51%
Total Interest-earning Assets | 8,535,384 | 3.67% | 8,747,398 | 3.27% | 8,729,277 | 3.31%
Noninterest-earning assets | 690,207 |  | 709,246 |  | 704,635 |
Total Assets | $9,225,591 |  | $9,456,644 |  | $9,433,911 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
Interest-bearing demand | $979,514 | 0.07% | $986,639 | 0.08% | $998,134 | 0.09%
Money market | 1,930,852 | 0.15% | 2,055,857 | 0.15% | 2,037,976 | 0.18%
Savings | 1,118,346 | 0.05% | 1,109,048 | 0.03% | 1,044,899 | 0.03%
Certificates of deposit | 1,001,775 | 0.31% | 1,070,189 | 0.32% | 1,291,194 | 0.45%
Total Interest-bearing Deposits | 5,030,487 | 0.14% | 5,221,733 | 0.14% | 5,372,203 | 0.20%
Securities sold under repurchase agreements | 50,037 | 0.10% | 81,790 | 0.10% | 67,838 | 0.10%
Long-term borrowings | 22,072 | 2.01% | 22,310 | 1.95% | 23,113 | 2.01%
Junior subordinated debt securities | 54,413 | 3.62% | 54,398 | 2.95% | 64,103 | 3.06%
Total Borrowings | 126,522 | 1.95% | 158,498 | 1.34% | 155,054 | 1.61%
Total Interest-bearing Liabilities | 5,157,009 | 0.19% | 5,380,231 | 0.18% | 5,527,256 | 0.24%
Noninterest-bearing liabilities | 2,891,032 |  | 2,879,718 |  | 2,727,653 |
Shareholders' equity | 1,177,550 |  | 1,196,694 |  | 1,179,002 |
Total Liabilities and Shareholders' Equity | $9,225,591 |  | $9,456,644 |  | $9,433,911 |
Net Interest Margin(10) |  | 3.56% |  | 3.16% |  | 3.16%

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

|  |  | Six Months Ended June 30, |
(dollars in thousands) |  |  | 2022 |  | 2021 |
Net Interest Margin (FTE) (YTD Averages) |  |  |  |  |  |
ASSETS |  |  |  |  |  |
Interest-bearing deposits with banks |  |  | $641,648 | 0.42% | $545,177 | 0.09%
Securities, at fair value |  |  | 1,013,219 | 2.14% | 804,613 | 2.26%
Loans held for sale |  |  | 1,475 | 3.72% | 5,351 | 2.90%
Commercial real estate |  |  | 3,227,156 | 3.89% | 3,252,763 | 3.72%
Commercial and industrial |  |  | 1,699,222 | 4.15% | 1,923,813 | 4.10%
Commercial construction |  |  | 407,048 | 3.54% | 474,037 | 3.36%
Total Commercial Loans |  |  | 5,333,426 | 3.95% | 5,650,613 | 3.82%
Residential mortgage |  |  | 918,132 | 4.00% | 880,246 | 4.20%
Home equity |  |  | 582,721 | 3.50% | 534,329 | 3.58%
Installment and other consumer |  |  | 114,531 | 5.40% | 82,095 | 6.19%
Consumer construction |  |  | 26,544 | 3.36% | 14,578 | 5.52%
Total Consumer Loans |  |  | 1,641,928 | 3.91% | 1,511,249 | 4.10%
Total Portfolio Loans |  |  | 6,975,354 | 3.94% | 7,161,862 | 3.88%
Total Loans |  |  | 6,976,829 | 3.94% | 7,167,213 | 3.88%
Federal Home Loan Bank and other restricted stock |  |  | 9,108 | 3.54% | 10,884 | 4.73%
Total Interest-earning Assets |  |  | 8,640,804 | 3.47% | 8,527,887 | 3.49%
Noninterest-earning assets |  |  | 699,097 |  | 730,117 |
Total Assets |  |  | $9,339,901 |  | $9,258,003 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |  |  |
Interest-bearing demand |  |  | $983,057 | 0.07% | $947,295 | 0.10%
Money market |  |  | 1,993,009 | 0.15% | 2,003,569 | 0.18%
Savings |  |  | 1,113,723 | 0.04% | 1,020,201 | 0.04%
Certificates of deposit |  |  | 1,035,793 | 0.32% | 1,317,751 | 0.55%
Total Interest-bearing deposits |  |  | 5,125,582 | 0.14% | 5,288,816 | 0.23%
Securities sold under repurchase agreements |  |  | 65,826 | 0.10% | 66,254 | 0.13%
Short-term borrowings |  |  | — | —% | 12,707 | 0.19%
Long-term borrowings |  |  | 22,190 | 1.98% | 23,291 | 2.01%
Junior subordinated debt securities |  |  | 54,406 | 3.29% | 64,095 | 3.07%
Total Borrowings |  |  | 142,422 | 1.61% | 166,348 | 1.53%
Total Interest-bearing Liabilities |  |  | 5,268,004 | 0.18% | 5,455,164 | 0.27%
Noninterest-bearing liabilities |  |  | 2,884,828 |  | 2,633,219 |
Shareholders' equity |  |  | 1,187,069 |  | 1,169,620 |
Total Liabilities and Shareholders' Equity |  |  | $9,339,901 |  | $9,258,003 |
Net Interest Margin(8) |  |  |  | 3.35% |  | 3.31%

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Nonperforming Loans (NPL) |  |  |  |  |  |
Commercial loans: |  | % NPL |  | % NPL |  | % NPL
Commercial real estate | $15,783 |  | 0.49% | $26,699 |  | 0.82% | $82,050 |  | 2.53%
Commercial and industrial | 4,454 |  | 0.26% | 14,673 |  | 0.90% | 16,997 |  | 0.96%
Commercial construction | 864 |  | 0.21% | 864 |  | 0.22% | 384 |  | 0.08%
Total Nonperforming Commercial Loans | 21,101 |  | 0.40% | 42,236 |  | 0.79% | 99,431 |  | 1.81%
Consumer loans: |  |  |  |  |  |
Residential mortgage | 8,137 |  | 0.83% | 7,450 |  | 0.82% | 9,917 |  | 1.15%
Home equity | 2,281 |  | 0.37% | 2,713 |  | 0.47% | 3,150 |  | 0.58%
Installment and other consumer | 256 |  | 0.21% | 125 |  | 0.11% | 121 |  | 0.14%
Total Nonperforming Consumer Loans | 10,674 |  | 0.61% | 10,287 |  | 0.63% | 13,188 |  | 0.87%
Total Nonperforming Loans | $31,775 |  | 0.45% | $52,524 |  | 0.75% | $112,619 |  | 1.61%

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Loan Charge-offs (Recoveries) |  |  |  |  |  |
Charge-offs | $7,678 |  |  | $982 |  |  | $8,737 |  |
Recoveries | (4,666) |  |  | (3,019) |  |  | (1,264) |  |
Net Loan Charge-offs (Recoveries) | $3,012 |  |  | ($2,037) |  |  | $7,473 |  |
Net Loan Charge-offs (Recoveries) |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate | ($125) |  |  | $178 |  |  | $6,595 |  |
Commercial and industrial | 2,712 |  |  | (2,507) |  |  | 795 |  |
Commercial construction | — |  |  | (1) |  |  | (2) |  |
Total Commercial Loan Charge-offs (Recoveries) | 2,587 |  |  | (2,330) |  |  | 7,388 |  |
Consumer loans: |  |  |  |  |  |
Residential mortgage | 13 |  |  | 81 |  |  | (57) |  |
Home equity | 6 |  |  | (20) |  |  | 10 |  |
Installment and other consumer | 406 |  |  | 232 |  |  | 132 |  |
Total Consumer Loan Charge-offs | 425 |  |  | 293 |  |  | 85 |  |
Total Net Loan Charge-offs (Recoveries) | $3,012 |  |  | ($2,037) |  |  | $7,473 |  |

|  |  | Six Months Ended June 30, |
(dollars in thousands) |  |  | 2022 |  | 2021 |
Loan Charge-offs (Recoveries) |  |  |  |  |  |
Charge-offs |  |  | $8,661 |  |  | $15,270 |  |
Recoveries |  |  | (7,685) |  |  | (1,985) |  |
Net Loan Charge-offs |  |  | $976 |  | $13,285 |
Net Loan Charge-offs |  |  |  |  |  |
Commercial loans: |  |  |  |  |  |
Commercial real estate |  |  | 52 |  | 7,293 |
Commercial and industrial |  |  | 205 |  | 5,708 |
Commercial construction |  |  | (1) |  |  | (3) |  |
Total Commercial Loan Charge-offs |  |  | 256 |  | 12,998 |
Consumer loans: |  |  |  |  |  |
Residential mortgage |  |  | 94 |  | 15 |
Home equity |  |  | (14) |  | 242 |
Installment and other consumer |  |  | 640 |  | 30 |
Total Consumer Loan Charge-offs |  |  | 720 |  | 287 |
Total Net Loan Charge-offs |  |  | $976 |  | $13,285 |

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
Asset Quality Data |  |  |  |  |  |
Nonperforming loans | $31,775 |  |  | $52,524 |  |  | $112,619 |  |
OREO | 7,046 |  |  | 7,028 |  |  | 1,145 |  |
Total nonperforming assets | 38,821 |  |  | 59,552 |  |  | 113,764 |  |
Troubled debt restructurings (nonaccruing) | 4,010 |  |  | 15,389 |  |  | 20,650 |  |
Troubled debt restructurings (accruing) | 9,338 |  |  | 10,739 |  |  | 14,321 |  |
Total troubled debt restructurings | 13,348 |  |  | 26,128 |  |  | 34,971 |  |
Nonperforming loans / total loans | 0.45 | % |  | 0.75 | % |  | 1.61 | % |
Nonperforming assets / total loans plus OREO | 0.55 | % |  | 0.85 | % |  | 1.62 | % |
Allowance for credit losses / total portfolio loans | 1.39 | % |  | 1.43 | % |  | 1.56 | % |
Allowance for credit losses / total portfolio loans excluding PPP | 1.40 | % |  | 1.44 | % |  | 1.64 | % |
Allowance for credit losses / nonperforming loans | 309 | % |  | 190 | % |  | 97 | % |
Net loan charge-offs (recoveries) | $3,012 |  |  | ($2,037) |  |  | $7,473 |  |
Net loan charge-offs (recoveries) (annualized) / average loans | 0.17 | % |  | (0.12 | %) |  | 0.43 | % |

|  |  | Six Months Ended June 30, |
(dollars in thousands) |  |  | 2022 |  | 2021 |
Asset Quality Data |  |  |  |  |  |
Net loan charge-offs |  |  | $976 |  |  | $13,285 |  |
Net loan charge-offs (annualized) / average loans |  |  | 0.03 | % |  | 0.37 | % |

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

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
|  |  | 4Q21 |  | 1Q21 |
(1) Tangible Book Value (non-GAAP) |  |  |  |  |  |
Total shareholders' equity | $1,178,358 |  |  | $1,184,950 |  |  | $1,188,733 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (378,259) |  |  | (378,557) |  |  | (379,563) |  |
Tangible common equity (non-GAAP) | $800,099 |  |  | $806,393 |  |  | $809,170 |  |
Common shares outstanding | 39,149 |  |  | 39,352 |  |  | 39,346 |  |
Tangible book value (non-GAAP) | $20.44 |  |  | $20.49 |  |  | $20.57 |  |
(2) Return on Average Tangible Shareholders' Equity (non-GAAP) |  |  |  |  |  |
Net income (annualized) | $115,750 |  |  | $118,192 |  |  | $113,778 |  |
Plus: amortization of intangibles (annualized), net of tax | 1,197 |  |  | 1,276 |  |  | 1,395 |  |
Net income before amortization of intangibles (annualized) | $116,947 |  |  | $119,468 |  |  | $115,173 |  |
Average total shareholders' equity | $1,177,550 |  |  | $1,196,694 |  |  | $1,179,002 |  |
Less: average goodwill and other intangible assets, net of deferred tax liability | (378,453) |  |  | (378,761) |  |  | (379,784) |  |
Average tangible equity (non-GAAP) | $799,097 |  |  | $817,932 |  |  | $799,218 |  |
Return on average tangible shareholders' equity (non-GAAP) | 14.63 | % |  | 14.61 | % |  | 14.41 | % |
(3) PPNR / Average Assets (non-GAAP) |  |  |  |  |  |
Income before taxes | $36,196 |  |  | $36,057 |  |  | $35,338 |  |
Plus: Provision for credit losses | 3,204 |  |  | (512) |  |  | 2,561 |  |
Total | $39,400 |  |  | $35,545 |  |  | $37,899 |  |
Total (annualized) (non-GAAP) | $158,034 |  |  | $144,155 |  |  | $152,012 |  |
Average assets | $9,225,591 |  |  | $9,456,644 |  |  | $9,433,911 |  |
PPNR / Average Assets (non-GAAP) | 1.71 | % |  | 1.52 | % |  | 1.61 | % |
(4) Efficiency Ratio (non-GAAP) |  |  |  |  |  |
Noninterest expense | $48,424 |  |  | $47,414 |  |  | $45,829 |  |
Net interest income per consolidated statements of net income | 75,194 |  |  | 67,733 |  |  | 68,304 |  |
Plus: taxable equivalent adjustment | 506 |  |  | 493 |  |  | 585 |  |
Net interest income (FTE) (non-GAAP) | $75,700 |  |  | $68,226 |  |  | $68,889 |  |
Noninterest income | 12,630 |  |  | 15,226 |  |  | 15,424 |  |
Less: net gains on sale of securities | — |  |  | — |  |  | (29) |  |
Net interest income (FTE) (non-GAAP) plus noninterest income | $88,330 |  |  | $83,452 |  |  | $84,284 |  |
Efficiency ratio (non-GAAP) | 54.82 | % |  | 56.82 | % |  | 54.37 | % |

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S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited |  | S&T Earnings Release - | 13

|  |  | Six Months Ended June 30, |  |  |
(dollars in thousands) |  |  | 2022 |  | 2021 |  |  |
(5) Return on Average Tangible Shareholders' Equity (non-GAAP) |  |  |  |  |  |  |  |
Net income (annualized) |  |  | $116,964 |  |  | $121,535 |  |  |  |
Plus: amortization of intangibles (annualized), net of tax |  |  | 1,236 |  |  | 1,429 |  |  |  |
Net income before amortization of intangibles (annualized) |  |  | $118,200 |  |  | $122,964 |  |  |  |
Average total shareholders' equity |  |  | $1,187,069 |  |  | $1,169,620 |  |  |  |
Less: average goodwill and other intangible assets, net of deferred tax liability |  |  | (378,606) |  |  | (379,963) |  |  |  |
Average tangible equity (non-GAAP) |  |  | $808,463 |  |  | $789,657 |  |  |  |
Return on average tangible shareholders' equity (non-GAAP) |  |  | 14.62 | % |  | 15.57 | % |  |  |
(6) PPNR / Average Assets (non-GAAP) |  |  |  |  |  |  |  |
Income before taxes |  |  | $72,253 |  |  | $74,515 |  |  |  |
Plus: Provision for credit losses |  |  | 2,692 |  |  | 5,699 |  |  |  |
Total |  |  | $74,945 |  |  | $80,214 |  |  |  |
Total (annualized) (non-GAAP) |  |  | $151,132 |  |  | $161,758 |  |  |  |
Average assets |  |  | $9,339,901 |  |  | $9,258,003 |  |  |  |
PPNR / Average Assets (non-GAAP) |  |  | 1.62 | % |  | 1.75 | % |  |  |
(7) Efficiency Ratio (non-GAAP) |  |  |  |  |  |  |  |
Noninterest expense |  |  | $95,838 |  |  | $91,495 |  |  |  |
Net interest income per consolidated statements of net income |  |  | 142,927 |  |  | 138,962 |  |  |  |
Plus: taxable equivalent adjustment |  |  | 999 |  |  | 1,249 |  |  |  |
Net interest income (FTE) (non-GAAP) |  |  | $143,926 |  |  | $140,211 |  |  |  |
Noninterest income |  |  | 27,856 |  |  | 32,747 |  |  |  |
Less: net gains on sale of securities |  |  | — |  |  | (29) |  |  |  |
Net interest income (FTE) (non-GAAP) plus noninterest income |  |  | $171,782 |  |  | $172,929 |  |  |  |
Efficiency ratio (non-GAAP) |  |  | 55.79 | % |  | 52.91 | % |  |  |
(8) Net Interest Margin Rate (FTE) (non-GAAP) |  |  |  |  |  |  |  |
Interest income and dividend income |  |  | $147,708 |  |  | $146,358 |  |  |  |
Less: interest expense |  |  | (4,781) |  |  | (7,396) |  |  |  |
Net interest income per consolidated statements of net income |  |  | $142,927 |  |  | $138,962 |  |  |  |
Plus: taxable equivalent adjustment |  |  | 999 |  |  | 1,249 |  |  |  |
Net interest income (FTE) (non-GAAP) |  |  | $143,926 |  |  | $140,211 |  |  |  |
Net interest income (FTE) (annualized) |  |  | $290,236 |  |  | $282,746 |  |  |  |
Average interest-earning assets |  |  | $8,640,804 |  |  | $8,527,887 |  |  |  |
Net interest margin - (FTE) (non-GAAP) |  |  | 3.35 | % |  | 3.31 | % |  |  |

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S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited |  | S&T Earnings Release - | 14

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

| 2022 |  | 2022 |  | 2021 |
| Second |  | First |  | Second |
(dollars in thousands) | Quarter |  | Quarter |  | Quarter |
(9) Tangible Common Equity / Tangible Assets (non-GAAP) |  |  |  |  |  |
Total shareholders' equity | $1,178,358 |  |  | $1,184,950 |  |  | $1,188,733 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (378,259) |  |  | (378,557) |  |  | (379,563) |  |
Tangible common equity (non-GAAP) | $800,099 |  |  | $806,393 |  |  | $809,170 |  |
Total assets | $9,103,814 |  |  | $9,432,281 |  |  | $9,495,832 |  |
Less: goodwill and other intangible assets, net of deferred tax liability | (378,259) |  |  | (378,557) |  |  | (379,563) |  |
Tangible assets (non-GAAP) | $8,725,556 |  |  | $9,053,724 |  |  | $9,116,268 |  |
Tangible common equity to tangible assets (non-GAAP) | 9.17 | % |  | 8.91 | % |  | 8.88 | % |
(10) Net Interest Margin Rate (FTE) (non-GAAP) |  |  |  |  |  |
Interest income and dividend income | $77,599 |  |  | $70,109 |  |  | $71,577 |  |
Less: interest expense | (2,405) |  |  | (2,376) |  |  | (3,273) |  |
Net interest income per consolidated statements of net income | $75,194 |  |  | $67,733 |  |  | $68,304 |  |
Plus: taxable equivalent adjustment | 506 |  |  | 493 |  |  | 585 |  |
Net interest income (FTE) (non-GAAP) | $75,700 |  |  | $68,226 |  |  | $68,889 |  |
Net interest income (FTE) (annualized) | $303,633 |  |  | $276,694 |  |  | $276,313 |  |
Average interest- earning assets | $8,535,384 |  |  | $8,747,398 |  |  | $8,729,277 |  |
Net interest margin (FTE) (non-GAAP) | 3.56 | % |  | 3.16 | % |  | 3.16 | % |

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