[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements, detailing the company's financial position, performance, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets%20-%20June%2030,%202021%20and%20December%2031,%202020) Consolidated Balance Sheet Highlights (in thousands) | Item | June 30, 2021 | December 31, 2020 | Change | % Change | | :----------------------------------- | :------------ | :---------------- | :----- | :------- | | Total Assets | $9,495,832 | $8,967,897 | $527,935 | 5.89% | | Cash and due from banks | $985,278 | $229,666 | $755,612 | 329.01% | | Portfolio loans, net | $6,897,715 | $7,108,248 | $(210,533) | -2.96% | | Total Deposits | $8,015,264 | $7,420,538 | $594,726 | 8.01% | | Total Liabilities | $8,307,099 | $7,813,186 | $493,913 | 6.32% | | Total Shareholders' Equity | $1,188,733 | $1,154,711 | $34,022 | 2.95% | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202021%20and%202020) Key Income Statement Data (in thousands, except per share data) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Total Interest and Dividend Income | $71,577 | $80,479 | $146,358 | $168,069 | | Total Interest Expense | $3,273 | $10,331 | $7,396 | $27,885 | | Net Interest Income | $68,304 | $70,148 | $138,962 | $140,184 | | Provision for credit losses (expense/benefit) | $(2,561) | $86,759 | $(5,699) | $106,809 | | Total Noninterest Income | $15,424 | $15,224 | $32,661 | $27,627 | | Total Noninterest Expense | $45,829 | $43,478 | $91,409 | $89,869 | | Net Income (Loss) | $28,367 | $(33,072) | $60,268 | $(19,841) | | Earnings per share—basic | $0.73 | $(0.85) | $1.54 | $(0.51) | | Earnings per share—diluted | $0.72 | $(0.85) | $1.54 | $(0.51) | | Comprehensive Income (Loss) | $30,911 | $(29,512) | $54,902 | $1,061 | [Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202021%20and%202020) Shareholders' Equity Changes (in thousands) | Item | June 30, 2021 | June 30, 2020 | | :----------------------------------- | :------------ | :------------ | | Balance at beginning of period (YTD) | $1,154,711 | $1,191,998 | | Net income (loss) for the six months | $60,268 | $(19,841) | | Other comprehensive (loss)/income, net of tax | $(5,366) | $20,902 | | Cash dividends declared ($0.56 per share) | $(21,963) | $(22,012) | | Balance at End of Period | $1,188,733 | $1,135,777 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20-%20Three%20and%20Six%20Months%20Ended%20June%2030,%202021%20and%202020) Cash Flow Summary (in thousands) for Six Months Ended June 30 | Activity | 2021 | 2020 | | :----------------------------------- | :--------- | :--------- | | Net Cash Provided by Operating Activities | $128,043 | $(31,568) | | Net Cash Provided by (Used in) Investing Activities | $127,336 | $(484,280) | | Net Cash Provided by Financing Activities | $500,233 | $669,390 | | Net increase in cash and cash equivalents | $755,612 | $153,542 | | Cash and Cash Equivalents at End of Period | $985,278 | $351,365 | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [NOTE 1. BASIS OF PRESENTATION](index=8&type=section&id=NOTE%201.%20BASIS%20OF%20PRESENTATION) - The interim Consolidated Financial Statements are prepared in accordance with GAAP for interim financial information and include S&T Bancorp, Inc. and its wholly-owned subsidiaries. The company completed the acquisition of DNB Financial Corporation on November 30, 2019[15](index=15&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - ASU No. 2019-12, simplifying income tax accounting, was adopted on January 1, 2021, with no impact on consolidated financial statements. ASU No. 2020-04, Reference Rate Reform, is being evaluated and is not expected to materially impact financial statements[20](index=20&type=chunk)[22](index=22&type=chunk) [NOTE 2. EARNINGS PER SHARE](index=10&type=section&id=NOTE%202.%20EARNINGS%20PER%20SHARE) Earnings Per Share (EPS) (in thousands, except per share data) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Net Income Allocated to Shareholders | $28,226 | $(33,072) | $59,985 | $(19,841) | | Weighted Average Shares Outstanding—Basic | 39,048,971 | 39,013,161 | 39,039,007 | 39,142,351 | | Earnings per share—basic | $0.73 | $(0.85) | $1.54 | $(0.51) | | Earnings per share—diluted | $0.72 | $(0.85) | $1.54 | $(0.51) | [NOTE 3. FAIR VALUE MEASUREMENTS](index=11&type=section&id=NOTE%203.%20FAIR%20VALUE%20MEASUREMENTS) - The company uses fair value measurements for financial assets and liabilities, categorized into a three-level hierarchy based on input observability. Level 1 uses unadjusted quoted prices in active markets, Level 2 uses observable market data for similar instruments, and Level 3 uses significant unobservable inputs[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) Assets Recorded at Fair Value on a Recurring Basis (June 30, 2021, in thousands) | Asset Type | Level 1 | Level 2 | Level 3 | Total | | :----------------------------------- | :------ | :------ | :------ | :------ | | Total Securities | $75,819 | $764,556 | $— | $840,375 | | Securities held in a deferred compensation plan | $7,808 | $— | $— | $7,808 | | Derivative financial assets (Interest rate swaps) | $— | $49,078 | $— | $49,078 | | Derivative financial assets (Interest rate lock commitments) | $— | $— | $1,137 | $1,137 | Liabilities Recorded at Fair Value on a Recurring Basis (June 30, 2021, in thousands) | Liability Type | Level 1 | Level 2 | Level 3 | Total | | :----------------------------------- | :------ | :------ | :------ | :------ | | Derivative financial liabilities (Interest rate swaps) | $— | $49,477 | $— | $49,477 | | Derivative financial liabilities (Forward sale contracts) | $— | $91 | $— | $91 | Assets Recorded at Fair Value on a Nonrecurring Basis (June 30, 2021, in thousands) | Asset Type | Fair Value | Valuation Technique | Significant Unobservable Inputs | Weighted Average | | :----------------------------------- | :--------- | :------------------ | :------------------------------ | :--------------- | | Loans individually evaluated | $60,778 | Collateral method | Appraisal adjustment | 13.68% | | Other real estate owned | $1,088 | Collateral method | Costs to sell | 4.21% | | Mortgage servicing rights | $6,658 | Discounted cash flow method | Discount rate, Constant prepayment rates | 9.39%, 11.13% | [NOTE 4. SECURITIES](index=18&type=section&id=NOTE%204.%20SECURITIES) Securities Portfolio Fair Values (in thousands) | Item | June 30, 2021 | December 31, 2020 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Available-for-sale debt securities | $839,279 | $770,393 | $68,886 | | Marketable equity securities | $1,096 | $3,300 | $(2,204) | | Total Securities | $840,375 | $773,693 | $66,682 | Net Unrealized Gains/(Losses) on Available-for-Sale Debt Securities (in thousands) | Item | June 30, 2021 | December 31, 2020 | | :----------------------------------- | :------------ | :---------------- | | Total unrealized gains/(losses) | $23,999 | $33,388 | | Net Unrealized Gains/(Losses), Net of Tax | $18,892 | $26,279 | - The decrease in net unrealized gains on available-for-sale debt securities was primarily due to an increase in interest rates from December 31, 2020, to June 30, 2021. The company does not intend to sell and is not likely to be required to sell securities in an unrealized loss position before recovery of their amortized cost[61](index=61&type=chunk)[175](index=175&type=chunk) [NOTE 5. LOANS AND LOANS HELD FOR SALE](index=21&type=section&id=NOTE%205.%20LOANS%20AND%20LOANS%20HELD%20FOR%20SALE) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2021 | December 31, 2020 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Total Portfolio Loans | $7,007,351 | $7,225,860 | $(218,509) | | Commercial Loans (Total) | $5,499,044 | $5,673,707 | $(174,663) | | Commercial and industrial (C&I) | $1,774,358 | $1,954,453 | $(180,095) | | Consumer Loans (Total) | $1,508,307 | $1,552,153 | $(43,846) | | Loans held for sale | $7,648 | $18,528 | $(10,880) | - Commercial and industrial (C&I) loans included **$336.1 million** of Paycheck Protection Program (PPP) loans at June 30, 2021, down from **$465.0 million** at December 31, 2020. PPP loans are 100% guaranteed by the SBA and are forgivable[67](index=67&type=chunk) Troubled Debt Restructurings (TDRs) (in thousands) | Status | June 30, 2021 | December 31, 2020 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Performing TDRs | $14,321 | $17,460 | $(3,139) | | Nonperforming TDRs | $20,650 | $29,288 | $(8,638) | | Total TDRs | $34,971 | $46,748 | $(11,777) | Nonperforming Assets (in thousands) | Item | June 30, 2021 | December 31, 2020 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Nonaccrual loans | $91,969 | $117,485 | $(25,516) | | Nonaccrual TDRs | $20,650 | $29,289 | $(8,639) | | Total Nonaccrual Loans | $112,619 | $146,774 | $(34,155) | | OREO | $1,145 | $2,155 | $(1,010) | | Total Nonperforming Assets | $113,764 | $148,929 | $(35,165) | [NOTE 6. ALLOWANCE FOR CREDIT LOSSES](index=25&type=section&id=NOTE%206.%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) - The Allowance for Credit Losses (ACL) is maintained to absorb estimated expected credit losses, considering historical loss experience, current conditions, and future economic forecasts. Loan risk ratings (Pass, Special Mention, Substandard, Doubtful) are used to monitor the commercial loan portfolio[81](index=81&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) Allowance for Credit Losses on Loans (in thousands) | Item | June 30, 2021 | December 31, 2020 | Change | | :----------------------------------- | :------------ | :---------------- | :----- | | Balance at End of Period | $109,636 | $117,612 | $(7,976) | Provision for Credit Losses on Loans (in thousands) | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30 | $2,008 | $85,831 | | Six Months Ended June 30 | $5,308 | $104,262 | Net (Charge-offs)/Recoveries on Loans (in thousands) | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30 | $(7,473) | $(68,072) | | Six Months Ended June 30 | $(13,285) | $(79,229) | - The significant decrease in the provision for credit losses in 2021 was mainly due to a customer fraud charge-off in 2020 and an improved economic forecast in 2021. The company adopted ASU 2016-13 (CECL) on January 1, 2020, resulting in a **$27.4 million** increase to ACL[100](index=100&type=chunk)[103](index=103&type=chunk) [NOTE 7. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES](index=34&type=section&id=NOTE%207.%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) - The company uses derivative instruments, including interest rate swaps for commercial loans and interest rate lock commitments/forward sale contracts for mortgage loans, to manage interest rate and pricing risks. These derivatives are recognized at fair value on the balance sheet[105](index=105&type=chunk)[108](index=108&type=chunk) Derivative Financial Instruments (in thousands) | Item | June 30, 2021 | December 31, 2020 | | :----------------------------------- | :------------ | :---------------- | | Interest Rate Swap Contracts (Assets) - Fair value | $49,078 | $78,319 | | Interest Rate Swap Contracts (Liabilities) - Fair value | $49,477 | $79,033 | | Interest Rate Lock Commitments (Assets) - Fair value | $1,137 | $2,900 | | Forward Sale Contracts (Liabilities) - Fair value | $91 | $385 | Total Derivatives (Loss)/Gain Recognized in Income (in thousands) | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30 | $(684) | $822 | | Six Months Ended June 30 | $(1,154) | $2,249 | [NOTE 8. COMMITMENTS AND CONTINGENCIES](index=36&type=section&id=NOTE%208.%20COMMITMENTS%20AND%20CONTINGENCIES) Commitments and Letters of Credit (in thousands) | Item | June 30, 2021 | December 31, 2020 | | :----------------------------------- | :------------ | :---------------- | | Commitments to extend credit | $2,476,630 | $2,185,752 | | Standby letters of credit | $86,532 | $89,095 | | Total | $2,563,162 | $2,274,847 | Allowance for Credit Losses on Unfunded Loan Commitments (in thousands) | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Balance at End of Period (Q2) | $4,858 | $7,004 | | Balance at End of Period (YTD Q2) | $4,858 | $7,004 | - The company is subject to various legal and administrative proceedings, but management believes the outcome will not have a material adverse effect on its financial position or results of operations[117](index=117&type=chunk) [NOTE 9. OTHER COMPREHENSIVE INCOME (LOSS)](index=37&type=section&id=NOTE%209.%20OTHER%20COMPREHENSIVE%20INCOME%20(LOSS)) Other Comprehensive Income (Loss) (in thousands, net of tax) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Change in net unrealized gains/(losses) on debt securities available-for-sale | $255 | $3,195 | $(7,385) | $20,171 | | Adjustment to funded status of employee benefit plans | $2,289 | $365 | $2,019 | $731 | | Total Other Comprehensive Income (Loss) | $2,544 | $3,560 | $(5,366) | $20,902 | [NOTE 10. EMPLOYEE BENEFITS](index=38&type=section&id=NOTE%2010.%20EMPLOYEE%20BENEFITS) - The company's qualified and nonqualified defined benefit plans had benefit accruals frozen in 2016. Pension expense continues to be recorded, primarily for interest costs and amortization of actuarial losses. A pension settlement charge of **$0.2 million** (Q2 2021) and **$0.9 million** (YTD Q2 2021) was recognized due to lump-sum distributions[122](index=122&type=chunk)[124](index=124&type=chunk) Net Periodic Pension Cost (in thousands) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Net Periodic Pension Expense | $627 | $304 | $1,611 | $607 | [NOTE 11. SHARE REPURCHASE PLAN](index=38&type=section&id=NOTE%2011.%20SHARE%20REPURCHASE%20PLAN) - The Board of Directors extended the **$50 million** share repurchase plan through March 31, 2022, with **$37.4 million** of capacity remaining at June 30, 2021. No shares were repurchased during the three and six months ended June 30, 2021, as repurchase activity was suspended in March 2020 due to the COVID-19 pandemic[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=39&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results, highlighting key metrics, COVID-19 impacts, and strategic initiatives [Overview](index=40&type=section&id=Overview) - S&T Bancorp, Inc. is a bank holding company headquartered in Indiana, Pennsylvania, with **$9.5 billion** in assets at June 30, 2021. It operates in five markets and provides a full range of financial services[131](index=131&type=chunk) - The company's strategic plan focuses on disciplined organic growth within its current footprint and through market expansion, while also evaluating acquisition opportunities. The COVID-19 pandemic continues to negatively impact financial performance, particularly asset quality and net interest margin due to low interest rates and declining loan balances, though PPP loans provided a favorable impact[133](index=133&type=chunk)[134](index=134&type=chunk)[135](index=135&type=chunk) [Earnings Summary](index=40&type=section&id=Earnings%20Summary) Earnings Summary (in millions, except per share data) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Net Income (Loss) | $28.4 | $(33.1) | $60.3 | $(19.8) | | Diluted EPS | $0.72 | $(0.85) | $1.54 | $(0.51) | | Net Interest Income | $68.3 | $70.1 | $139.0 | $140.2 | | Provision for Credit Losses | $2.6 | $86.8 | $5.7 | $106.8 | | Noninterest Income | $15.4 | $15.2 | $32.7 | $27.6 | | Noninterest Expense | $45.8 | $43.5 | $91.4 | $89.9 | | Effective Tax Rate | 19.7% | 26.3% | 19.1% | 31.3% | - The significant increase in net income for Q2 and YTD Q2 2021 was primarily driven by a substantial decrease in the provision for credit losses, which was impacted by a customer fraud charge-off in 2020 and an improved economic forecast in 2021[136](index=136&type=chunk)[138](index=138&type=chunk) [Explanation of Use of Non-GAAP Financial Measures](index=41&type=section&id=Explanation%20of%20Use%20of%20Non-GAAP%20Financial%20Measures) - Management uses non-GAAP financial measures, specifically net interest income and net interest margin on a fully taxable equivalent (FTE) basis, to provide useful information to investors by facilitating comparisons within the financial services industry. These measures adjust for the tax benefit of income on certain tax-exempt loans and securities[142](index=142&type=chunk)[143](index=143&type=chunk) [RESULTS OF OPERATIONS](index=42&type=section&id=RESULTS%20OF%20OPERATIONS) [Net Interest Income](index=42&type=section&id=Net%20Interest%20Income) Net Interest Income and Margin (FTE Basis, in thousands) | Item | Q2 2021 | Q2 2020 | YTD Q2 2021 | YTD Q2 2020 | | :----------------------------------- | :------ | :------ | :---------- | :---------- | | Net Interest Income (GAAP) | $68,304 | $70,148 | $138,962 | $140,184 | | Net Interest Income (FTE) | $68,889 | $70,995 | $140,211 | $141,881 | | Net Interest Margin (GAAP) | 3.13% | 3.27% | 3.28% | 3.37% | | Net Interest Margin (FTE) | 3.16% | 3.31% | 3.31% | 3.42% | - Net interest income on an FTE basis decreased by **$2.1 million** for Q2 2021 and **$1.7 million** for YTD Q2 2021, primarily due to lower short-term interest rates and decreased average loan balances. PPP loans favorably impacted net interest income by **$4.1 million** (Q2 2021) and **$9.9 million** (YTD Q2 2021)[151](index=151&type=chunk) - Interest expense decreased by **$7.1 million** (Q2 2021) and **$20.5 million** (YTD Q2 2021) due to lower short-term interest rates and a decrease in average interest-bearing deposits. The average rate paid on interest-bearing deposits decreased by **47 basis points** (Q2) and **67 basis points** (YTD Q2)[154](index=154&type=chunk) [Provision for Credit Losses](index=46&type=section&id=Provision%20for%20Credit%20Losses) - The provision for credit losses significantly decreased by **$84.2 million** (Q2 2021) and **$101.1 million** (YTD Q2 2021) compared to the same periods in 2020. This reduction was mainly attributed to a customer fraud charge-off in 2020 and an improved economic forecast in 2021[157](index=157&type=chunk)[158](index=158&type=chunk) Net Charge-offs (in millions) | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30 | $7.4 | $68.1 | | Six Months Ended June 30 | $13.3 | $79.2 | - Nonperforming loans increased by **$22.5 million** to **$112.6 million** at June 30, 2021, primarily due to the addition of **$48.7 million** in hotel loans moving to nonperforming status in Q4 2020, partially offset by charge-offs and payoffs[162](index=162&type=chunk) [Noninterest Income](index=47&type=section&id=Noninterest%20Income) Noninterest Income (in thousands) | Item | Q2 2021 | Q2 2020 | $ Change | % Change | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total Noninterest Income | $15,424 | $15,224 | $200 | 1.3% | | Debit and credit card | $4,744 | $3,612 | $1,132 | 31.3% | | Service charges on deposit accounts | $3,642 | $2,805 | $837 | 29.8% | | Wealth management | $3,167 | $2,586 | $581 | 22.4% | | Commercial loan swap income | $299 | $945 | $(646) | -68.4% | | Item | YTD Q2 2021 | YTD Q2 2020 | $ Change | % Change | | :----------------------------------- | :---------- | :---------- | :------- | :------- | | Total Noninterest Income | $32,661 | $27,627 | $5,034 | 18.2% | | Debit and credit card | $8,906 | $7,093 | $1,813 | 25.6% | | Wealth management | $6,111 | $4,949 | $1,162 | 23.5% | | Commercial loan swap income | $393 | $3,429 | $(3,036) | -88.5% | - Increases in debit and credit card income, service charges on deposit accounts, and wealth management income were driven by increased customer activity and market appreciation. Commercial loan swap income decreased significantly due to reduced activity from the pandemic and interest rate environment[163](index=163&type=chunk) [Noninterest Expense](index=48&type=section&id=Noninterest%20Expense) Noninterest Expense (in thousands) | Item | Q2 2021 | Q2 2020 | $ Change | % Change | | :----------------------------------- | :------ | :------ | :------- | :------- | | Total Noninterest Expense | $45,829 | $43,478 | $2,351 | 5.4% | | Salaries and employee benefits | $24,515 | $21,419 | $3,096 | 14.5% | | Item | YTD Q2 2021 | YTD Q2 2020 | $ Change | % Change | | :----------------------------------- | :---------- | :---------- | :------- | :------- | | Total Noninterest Expense | $91,409 | $89,869 | $1,540 | 1.7% | | Salaries and employee benefits | $47,842 | $42,754 | $5,088 | 11.9% | | Merger related expenses | $— | $2,342 | $(2,342) | -100.0% | - The increase in noninterest expense was mainly due to higher salaries and employee benefits, driven by increased payroll incentives, restricted stock expense, and pension expense. This was partially offset by the absence of merger-related expenses in 2021, which were **$2.3 million** in YTD Q2 2020[167](index=167&type=chunk) [Provision for Income Taxes](index=48&type=section&id=Provision%20for%20Income%20Taxes) - The provision for income taxes increased significantly by **$18.8 million** (Q2 2021) and **$23.3 million** (YTD Q2 2021) compared to the same periods in 2020, primarily due to the shift from pretax losses in 2020 to pretax income in 2021[168](index=168&type=chunk) Effective Tax Rate | Period | 2021 | 2020 | | :----------------------------------- | :----- | :----- | | Three Months Ended June 30 | 19.7% | 26.3% | | Six Months Ended June 30 | 19.1% | 31.3% | [Financial Condition as of June 30, 2021](index=48&type=section&id=Financial%20Condition%20as%20of%20June%2030,%202021) [Total Assets and Liabilities](index=48&type=section&id=Total%20Assets%20and%20Liabilities) - Total assets increased by **$527.9 million** to **$9.5 billion** at June 30, 2021, driven by a **$755.6 million** increase in cash and due from banks due to PPP forgiveness and increased deposits. Total portfolio loans decreased by **$218.5 million** to **$7.0 billion**[169](index=169&type=chunk) - Total deposits increased by **$594.7 million** to **$8.0 billion**, primarily from customer deposits due to government stimulus and PPP. Total borrowings decreased by **$72.3 million** to **$155.7 million** due to increased customer deposits. Total shareholders' equity increased by **$34.0 million** to **$1.2 billion**, mainly from net income[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) [Securities Activity](index=49&type=section&id=Securities%20Activity) Securities Portfolio (in thousands) | Item | June 30, 2021 | December 31, 2020 | $ Change | | :----------------------------------- | :------------ | :---------------- | :------- | | Total Securities | $840,375 | $773,693 | $66,682 | | Available-for-Sale Debt Securities | $839,279 | $770,393 | $68,886 | | Net unrealized gain on bond portfolio | $24,000 | $33,400 | $(9,400) | - The increase in securities was primarily due to overall investing activities. The decrease in the net unrealized gain position on the bond portfolio was mainly due to rising interest rates during the first six months of 2021[174](index=174&type=chunk)[175](index=175&type=chunk) [Loan Composition](index=50&type=section&id=Loan%20Composition) Loan Portfolio Composition (in thousands) | Loan Type | June 30, 2021 | % of Loans | December 31, 2020 | % of Loans | | :----------------------------------- | :------------ | :--------- | :---------------- | :--------- | | Total Portfolio Loans | $7,007,351 | 100.0% | $7,225,860 | 100.0% | | Commercial Loans | $5,499,044 | 78.5% | $5,673,707 | 78.5% | | Commercial and industrial (C&I) | $1,774,358 | 25.4% | $1,954,453 | 27.0% | | Consumer Loans | $1,508,307 | 21.5% | $1,552,153 | 21.5% | - Total portfolio loans decreased by **$218.5 million** to **$7.0 billion** at June 30, 2021. Excluding PPP loans, portfolio loans decreased by **$89.6 million** due to decreased activity related to the COVID-19 pandemic. Commercial loans constituted **78.5%** of the total portfolio, with **71%** of total loans being variable rate[177](index=177&type=chunk)[178](index=178&type=chunk)[180](index=180&type=chunk) - PPP loans included in C&I were **$336.1 million** at June 30, 2021, down from **$465.0 million** at December 31, 2020, representing a net decline of **$128.9 million**[178](index=178&type=chunk)[179](index=179&type=chunk) [Allowance for Credit Losses](index=50&type=section&id=Allowance%20for%20Credit%20Losses) Allowance for Credit Losses (ACL) Metrics | Metric | June 30, 2021 | December 31, 2020 | | :----------------------------------- | :------------ | :---------------- | | ACL on loans (in thousands) | $109,636 | $117,612 | | ACL as a percentage of total portfolio loans | 1.56% | 1.63% | | ACL as a percentage of total portfolio loans (excluding PPP loans) | 1.64% | 1.74% | | Ratio of net charge-offs to average loans outstanding (annualized) | 0.37% | 0.61% | - The ACL decreased by **$8.0 million** to **$109.6 million** at June 30, 2021, primarily due to improved economic trends and forecasts, and a decrease in specific reserves on individually assessed loans. Net loan charge-offs were **$13.3 million** (**0.37%** of average loans) for the six months ended June 30, 2021, including a **$4.9 million** charge-off on a CRE relationship[189](index=189&type=chunk)[191](index=191&type=chunk) - Substandard loans decreased by **$11.7 million** to **$275.4 million**, and special mention loans decreased by **$10.2 million** to **$259.7 million**. Troubled debt restructurings (TDRs) decreased by **$11.8 million** to **$34.9 million**[192](index=192&type=chunk)[193](index=193&type=chunk) [Nonperforming Assets](index=53&type=section&id=Nonperforming%20Assets) Nonperforming Assets (in thousands) | Item | June 30, 2021 | December 31, 2020 | $ Change | | :----------------------------------- | :------------ | :---------------- | :------- | | Total Nonperforming Loans | $112,619 | $146,774 | $(34,155) | | OREO | $1,145 | $2,155 | $(1,010) | | Total Nonperforming Assets | $113,764 | $148,929 | $(35,165) | | Nonperforming loans as a percent of total portfolio loans | 1.61% | 2.03% | | | Nonperforming assets as a percent of total portfolio loans plus OREO | 1.62% | 2.06% | | - Nonperforming loans decreased by **$34.2 million** to **$112.6 million** at June 30, 2021, primarily due to payoffs of three CRE relationships totaling **$14.4 million** and charge-offs of a **$4.9 million** CRE relationship and a **$3.9 million** C&I relationship[196](index=196&type=chunk) [Deposits](index=53&type=section&id=Deposits) Deposit Composition (in thousands) | Deposit Type | June 30, 2021 | December 31, 2020 | $ Change | | :----------------------------------- | :------------ | :---------------- | :------- | | Total Deposits | $8,015,264 | $7,420,538 | $594,726 | | Total Customer Deposits | $8,010,264 | $7,352,302 | $657,962 | | Noninterest-bearing demand | $2,668,833 | $2,261,994 | $406,839 | | Total Brokered Deposits | $5,000 | $68,236 | $(63,236) | - Total deposits increased by **$594.7 million** (**8.0%**) from December 31, 2020, primarily driven by a **$658.0 million** increase in customer deposits due to government stimulus programs, PPP, and customers' liquidity preferences. Brokered deposits decreased by **$63.2 million** due to reduced need for wholesale funding[198](index=198&type=chunk) [Borrowings](index=54&type=section&id=Borrowings) Borrowings (in thousands) | Borrowing Type | June 30, 2021 | December 31, 2020 | $ Change | | :----------------------------------- | :------------ | :---------------- | :------- | | Total Borrowings | $155,668 | $227,927 | $(72,259) | | Short-term borrowings | $— | $75,000 | $(75,000) | - Total borrowings decreased by **$72.3 million** (**31.7%**) compared to December 31, 2020, primarily due to a **$75.0 million** decline in short-term borrowings, reflecting the increased customer deposits[199](index=199&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) - The company maintains adequate liquidity through a stable customer deposit base and various other funding sources, including FHLB borrowing availability (**$2.5 billion** remaining at June 30, 2021). Highly liquid assets totaled **$1.4 billion** (**14.4%** of total assets) at June 30, 2021[204](index=204&type=chunk)[205](index=205&type=chunk)[206](index=206&type=chunk) S&T Bancorp, Inc. Regulatory Capital Ratios (June 30, 2021) | Capital Ratio | Ratio | | :----------------------------------- | :---- | | Tier 1 leverage | 9.52% | | Common equity tier 1 to risk-weighted assets | 11.98% | | Tier 1 capital to risk-weighted assets | 12.40% | | Total capital to risk-weighted assets | 14.00% | - The company elected the five-year transition option for CECL's impact on regulatory capital. A shelf registration statement on Form S-3 has been filed, but no securities have been issued under it as of June 30, 2021[207](index=207&type=chunk)[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's market risk exposure, primarily interest rate risk, and its management through rate shock and EVE analyses - Market risk, primarily interest rate risk, is continually monitored by the Asset and Liability Committee (ALCO) through rate shock analyses, Economic Value of Equity (EVE) analyses, and stress tests to mitigate earnings and market value fluctuations[210](index=210&type=chunk) Rate Shock Analyses Results (June 30, 2021) | Change in Interest Rate (basis points) | 1-12 Months % Change in Pretax Net Interest Income | 13-24 Months % Change in Pretax Net Interest Income | % Change in EVE | | :----------------------------------- | :------------------------------------------------- | :-------------------------------------------------- | :-------------- | | +100 | 6.4% | 8.8% | 14.4% | | -100 | (3.8%) | (7.5%) | (28.1%) | - The company's balance sheet is asset sensitive, meaning more assets than liabilities will reprice during measured timeframes. This implies that rising interest rates could increase net interest income and operating income, while declining rates could decrease them. The company has become more asset sensitive due to increased balances at the Federal Reserve[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2021, and reports no material changes in internal control over financial reporting during the quarter - Management, under the supervision of the Interim CEO and CFO, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective in all material respects as of June 30, 2021[219](index=219&type=chunk)[220](index=220&type=chunk) - There were no changes to the company's internal control over financial reporting during the quarter ended June 30, 2021, that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting[221](index=221&type=chunk) [PART II. OTHER INFORMATION](index=58&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) This section states that there are no material legal proceedings to report - No material legal proceedings are reported[222](index=222&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section updates the risk factors, highlighting a new risk related to the upcoming CEO transition and its potential impact on the company's future performance and strategy - There have been no material changes to previously disclosed risk factors, except for a new risk related to the successful transition of the new CEO, Christopher J. McComish, effective August 23, 2021. This transition may be disruptive and could affect revenue, operations, and financial condition[222](index=222&type=chunk)[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides an update on the company's share repurchase plan, noting its extension and remaining capacity, but indicating no repurchase activity during the second quarter of 2021 - The **$50 million** share repurchase plan was extended through March 31, 2022, with **$37.4 million** of capacity remaining at June 30, 2021. No shares were repurchased during the second quarter of 2021, as activity was suspended in March 2020 due to the COVID-19 pandemic[125](index=125&type=chunk)[224](index=224&type=chunk) [Item 3. Defaults Upon Senior Securities](index=60&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms that there were no defaults upon senior securities during the reported period - No defaults upon senior securities were reported[226](index=226&type=chunk) [Item 4. Mine Safety Disclosures](index=60&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company - Mine safety disclosures are not applicable[226](index=226&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) This section indicates that there is no other information to report - No other information is reported[226](index=226&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including merger agreements, articles of incorporation, incentive plans, severance agreements, certifications, and XBRL documents - The exhibits include the Agreement and Plan of Merger with DNB Financial Corporation, Amended and Restated Articles of Incorporation, S&T Bancorp, Inc. 2021 Incentive Plan, a Severance and General Release Agreement, Rule 13a-14(a) and (b) Certifications, and XBRL Instance Document and Taxonomy Extensions[226](index=226&type=chunk) [Signatures](index=61&type=section&id=Signatures) This section contains the required signatures for the Form 10-Q, confirming its submission by authorized personnel - The report was signed on August 4, 2021, by Mark Kochvar, Senior Executive Vice President and Chief Financial Officer, as the Principal Financial Officer and Duly Authorized Signatory[229](index=229&type=chunk)

S&T Bancorp, Inc. (NASDAQ:STBA) Q2 2021 Earnings Conference Call July 22, 2021 1:00 PM ET Company Participants Mark Kochvar - Senior EVP & CFO Dave Antolik - President & Interim CEO Conference Call Participants Michael Perito - KBW Russell Gunther - D.A. Davidson Matthew Breese - Stephens, Inc. Operator Good day, ladies and gentlemen, and welcome to the S&T Bancorp, Inc. Second Quarter 2021 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be ...

| --- | |-------| | | | | Forward Looking Statements and Risk Factors This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forwardlooking 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 r ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-12508 S&T BANCORP INC. (Exact name of registrant as ...

S&T Bancorp, Inc. (NASDAQ:STBA) Q1 2021 Earnings Conference Call April 22, 2021 1:00 PM ET Company Participants Mark Kochvar - Chief Financial Officer Dave Antolik - President & Interim Chief Executive Officer Conference Call Participants Matthew Breese - Stephens Russell Gunther - D.A. Davidson Operator Good afternoon, ladies and gentlemen and welcome to the S&T Bancorp First Quarter 2021 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be ...

MEMBER FDIC First Quarter 2021 Earnings Supplement Forward Looking Statements and Risk Factors This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial pos ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 Securities registered pursuant to Section 12(g) of the Act: None Registrant's telephone number, including area code (800) 325-2265 Securities registered pursuant to Section 12(b) of the Act: or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transiti ...

| --- | |-------| | | | | Forward Looking Statements and Risk Factors This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future ...

Financial Data and Key Metrics Changes - The company reported net income of $0.62 per share or $24.2 million, compared to $0.43 per share or $16.7 million in the third quarter [5] - Return on assets was 1.05%, return on equity was 8.35%, and return on tangible equity was 12.71% [5] - The pretax pre-provision income totaled $37 million or 1.61% of average assets [5] - Total deposits decreased by $213 million, primarily in Money Market and Certificates of Deposit categories [6] - Provision expense was $7.1 million, a decrease of $10.4 million from Q3, with net charge-offs of $11.2 million compared to $12.9 million in Q3 [6] Business Line Data and Key Metrics Changes - Portfolio loans decreased by $169 million, including $85 million in PPP forgiveness [9] - Commercial and Industrial (C&I) commitment utilization rates remained 4% to 5% below pre-pandemic levels [9] - Consumer balances declined by $33 million in Q4 due to residential mortgage declines [10] - Non-hotel modified balances at year-end reduced to $18 million [12] Market Data and Key Metrics Changes - The company experienced pressure on its Commercial Real Estate (CRE) balances, which declined by $45 million in the quarter [10] - The hotel portfolio saw an increase in nonperforming loans, with $56.7 million of hotel loans moving into non-accrual status [6][12] Company Strategy and Development Direction - The company anticipates modest loan growth in the low-single-digit range for 2021, supported by improved C&I utilization rates and growth in mortgage balances [13] - The company is fully participating in the second round of PPP, with approximately 650 applications received [11] - The focus remains on reducing deposit costs due to liquidity position [6] Management's Comments on Operating Environment and Future Outlook - Management noted that customers are still feeling the impacts of COVID-19, affecting loan balances and utilization rates [5] - The company expects a stable core net interest margin rate for the first half of the year, with potential volatility from PPP forgiveness timing [17] - Management expressed a cautious approach regarding credit risks and the hotel portfolio due to ongoing uncertainties related to the pandemic [29] Other Important Information - The Board of Directors declared a quarterly dividend of $0.28 per share payable on February 25 [6] - The CEO announced retirement effective March 31, marking the end of a 13-year tenure [22] Q&A Session Summary Question: Expense guidance of $47 million to $48 million - Management indicated that the guidance reflects a clean operation with no large programs to reduce franchise expenses, and some nonrecurring items are included [26] Question: Loan growth and geographic strength - Management highlighted strong activity in Central Ohio and plans to revisit opportunities in Eastern Pennsylvania post-COVID [28] Question: Potential buyback and use of capital - Management remains cautious on credit risks and has no immediate plans for a buyback program [29] Question: Non-performing hotel loans - 18 loans totaling $57 million moved into non-accrual, with average LTVs at 73% [34] Question: Commercial real estate and construction pipeline - Management sees decent activity in the CRE space, particularly in multifamily, but is cautious about internal limits [41] Question: Update on CEO search - The company is conducting interviews for the CEO position and aims to have a successor in place by the end of Q1 [44]

S&T Bancorp, Inc. (NASDAQ:STBA) Q3 2020 Earnings Conference Call October 22, 2020 1:00 PM ET Company Participants Mark Kochvar - Chief Financial Officer Todd Brice - Chief Executive Officer Dave Antolik - President Conference Call Participants Russell Gunther - D.A. Davidson Collyn Gilbert - KBW Matthew Breese - Stephens Inc. Operator Operator Good day ladies and gentlemen, and welcome to your S&T Bancorp Inc. Third Quarter Earnings Conference Call. All lines have been placed in a listen-only mode and the f ...