Financial Data and Key Metrics Changes - The company reported a net income of $34 million, equating to $0.89 per share, which is an increase of $0.08 from Q1 [34] - The return on tangible common equity (ROTCE) was 15%, and the pre-provision net revenue (PPNR) remained strong at 1.82% [34] - The net interest margin (NIM) was reported at 3.85%, up 1 basis point from the previous quarter, indicating an improvement in net interest income [26][34] Business Line Data and Key Metrics Changes - Customer deposit growth exceeded $150 million in the quarter, resulting in over 8.5% annualized growth [22] - The allowance for credit losses increased slightly from 1.37% to 1.38% of total loans, reflecting a modest increase in asset quality concerns [36] - Noninterest income improved primarily due to seasonal changes in debit and credit card fees, along with a $3.1 million gain from Visa Class B-1 shares [16] Market Data and Key Metrics Changes - The company experienced a reduction in criticized and classified assets by 12% quarter-over-quarter and 29% year-over-year, equating to a $107 million reduction over the past four quarters [24][111] - The commercial and business banking pipelines are expected to grow, indicating a positive outlook for loan growth in Q4 [37][53] Company Strategy and Development Direction - The company is focused on organic growth and enhancing customer relationships, which has led to increased wallet share among existing customers [92][95] - There is a strategic emphasis on maintaining strong asset quality while exploring inorganic growth opportunities in contiguous states [88][89] - The management is optimistic about the future, citing improved credit quality and a stable operating environment [21][88] Management's Comments on Operating Environment and Future Outlook - Management noted that the credit quality remains stable to improving, with a focus on enhancing asset quality as a fundamental driver of financial performance [10][21] - There is an expectation of continued funding cost pressure, but the NIM is believed to be close to the bottom, with potential for slight compression if the Federal Reserve cuts rates [45][56] - The management expressed confidence in the overall reserve level at 1.38% and indicated that the need for reserves is expected to moderate barring any unexpected macroeconomic events [71][80] Other Important Information - The company has about $500 million in swaps, which will help manage floating rate exposure and is expected to provide repricing opportunities starting in Q1 2025 [28][70] - The efficiency ratio was reported below 55%, at 54.92%, indicating effective cost management [34] Q&A Session Summary Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to be close to the bottom, with potential slight compression if the Fed cuts rates [45][56] Question: Can you provide details on the commercial pipeline? - The commercial pipeline is strengthening across various regions, driven by pent-up demand and improved visibility regarding interest rates [52][53] Question: How comfortable is the company with the current reserve level? - Management is comfortable with the reserve level at 1.38% and expects it to continue to moderate as asset quality improves [71][80] Question: What is the company's strategy regarding M&A? - The company is focused on organic growth but is also exploring inorganic growth opportunities in contiguous states [88][89] Question: How is the competitive environment affecting deposit growth? - The competitive environment remains rate-sensitive, but the company is leveraging customer loyalty and proactive outreach to maintain deposit growth [96][92]

Company Performance - S&T Bancorp reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and matching the earnings from the same quarter last year [1] - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Revenues for the quarter ended June 2024 were $96.9 million, surpassing the Zacks Consensus Estimate by 1.09%, but down from $102.31 million a year ago [14] Stock Performance - S&T Bancorp shares have increased approximately 19.1% since the beginning of the year, compared to a 17.2% gain for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [11] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $97 million, and $3.02 on revenues of $385.9 million for the current fiscal year [5] - The trend of estimate revisions for S&T Bancorp is mixed, which may change following the recent earnings report [10][11] Industry Context - S&T Bancorp operates within the Banks - Northeast industry, which is currently ranked in the bottom 41% of over 250 Zacks industries [12] - The performance of S&T Bancorp's stock may be influenced by the overall outlook for the banking industry [12]

Financial Performance - Net income for Q2 2024 was $34.4 million, or $0.89 per diluted share, compared to $31.2 million, or $0.81 per diluted share in Q1 2024[18]. - Net income for Q2 2024 was $138,239 thousand, an increase from $125,643 thousand in Q1 2024, representing a growth of 10.7%[40]. - Net Income for Q2 2024 was $34,371, compared to $34,467 in Q2 2023, showing a slight decrease of 0.3%[50]. - Diluted earnings per share for Q2 2024 were $0.89, unchanged from Q2 2023[50]. Revenue and Income - Pre-provision net revenue to average assets (PPNR) was 1.82% in Q2 2024, up from 1.76% in Q1 2024[1]. - Noninterest income increased by $0.5 million to $13.3 million in Q2 2024 compared to $12.8 million in Q1 2024[7]. - Noninterest income increased to $13,305 thousand in Q2 2024 from $12,830 thousand in Q1 2024[40]. - Total Interest and Dividend Income for Q2 2024 was $128,765, an increase of 9.7% from $117,333 in Q2 2023[50]. - Net Interest Income After Provision for Credit Losses rose to $83,172 in Q2 2024, compared to $77,594 in Q2 2023, reflecting a growth of 7.3%[50]. Asset and Loan Growth - Total portfolio loans increased by $57.5 million, or 3.02% annualized, to $7.7 billion compared to Q1 2024[26]. - Total loans increased to $7.67 billion in the first half of 2024, up from $7.24 billion in the same period of 2023, representing a growth of approximately 6.0%[36]. - Total assets were $9.6 billion at June 30, 2024, compared to $9.5 billion at March 31, 2024[26]. - Total assets increased to $9,635,462 thousand in Q2 2024, up from $9,252,922 thousand in Q2 2023, representing a growth of 4.14%[52]. - Total portfolio loans reached $7,713,570 thousand in Q2 2024, up from $7,319,611 thousand in Q2 2023, reflecting a growth of 5.39%[52]. Deposits and Funding - Customer deposits grew by $155.1 million, or 8.63% annualized, resulting in total deposit growth of $80.0 million for Q2 2024[20]. - Total interest-bearing deposits increased to $5.39 billion, up from $4.68 billion year-over-year, reflecting a growth of approximately 15.2%[36]. - Total deposits rose to $7,680,336 thousand in Q2 2024, compared to $7,141,210 thousand in Q2 2023, marking an increase of 7.54%[52]. Efficiency and Expenses - Total noninterest expense decreased by $0.9 million to $53.6 million compared to $54.5 million in Q1 2024[25]. - Efficiency ratio decreased to 54.94% in Q2 2024 from 56.21% in Q1 2024, indicating improved operational efficiency[40]. - Total Noninterest Expense increased to $53,608 in Q2 2024, up from $49,633 in Q2 2023, representing an increase of 8.4%[50]. Credit Quality - Nonperforming assets remained low at $35.0 million, or 0.45% of total loans plus other real estate owned, compared to 0.44% in Q1 2024[2]. - The allowance for credit losses was $106.2 million, or 1.38% of total portfolio loans, as of June 30, 2024[6]. - Nonaccrual loans totaled $34.86 million, representing 0.45% of total loans, compared to 0.20% in the second quarter of 2023[39]. - The net loan charge-offs were $388 thousand in Q2 2024, a decrease from $10,967 thousand in Q2 2023, indicating improved loan performance[55]. Shareholder Equity - The company reported a total of $1.30 billion in shareholders' equity as of June 30, 2024, compared to $1.22 billion a year earlier, marking an increase of about 6.1%[36]. - Total shareholders' equity increased to $1,321,443 thousand in Q2 2024, up from $1,212,853 thousand in Q2 2023, a rise of 8.95%[52]. - Tangible common equity increased to $1,321,443 thousand in Q2 2024 from $1,212,853 thousand in Q2 2023, representing a growth of 8.95%[61]. Interest Margin - Net interest margin (NIM) increased to 3.85% in Q2 2024 from 3.84% in Q1 2024[1]. - The net interest margin (FTE) for the first six months of 2024 was 3.84%, down from 4.27% in the same period of 2023[36]. - Net interest margin rate (FTE) for Q2 2024 was $338,956 thousand annualized, compared to $356,022 thousand in Q2 2023, a decline of 4.78%[61].

Company Overview - S&T Bancorp, Inc. is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, trading on NASDAQ under the symbol STBA [5] - Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [5] Recognition and Awards - S&T Bank has been named a national 2024 Financial Services Industry Top Workplace Winner, highlighting its commitment to a people-first workplace culture [4] - The award is based on employee participation in the Energage 2024 Employee Survey, which recognizes organizations that foster engaged and supportive work environments [2][4] Employee Engagement - The survey received an exceptional participation rate, indicating high employee engagement and willingness to provide feedback [5] - S&T's Chief Human Resources Officer emphasized the importance of employee insights for continuous improvement and organizational growth [5] Energage's Role - Energage is a purpose-driven company that helps organizations turn employee feedback into actionable business intelligence and recognition through the Top Workplaces program [3] - The program is built on 18 years of culture research and feedback from 27 million employees across over 70,000 organizations, providing accurate competitive benchmarks [3]

Core Points - S&T Bancorp, Inc. will release its second quarter earnings on July 18, 2024, before the market opens [4] - A conference call to discuss the earnings will be held live via webcast at 1:00 p.m. ET on the same day [7] - The company is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [6] Earnings Release Details - The second quarter earnings release will be accessible on the company's website [2] - The webcast of the conference call will be archived for 12 months [5] - Participants can submit questions via email before and during the webcast [8]

Core Points - S&T Bank is launching its second annual Lemonade Days fundraising campaign from June 1 to June 8, 2024, to support Alex's Lemonade Stand Foundation (ALSF), the largest independent childhood cancer charity in the U.S. [1][2] - In 2023, S&T Bank raised over $30,000 for ALSF in Central and Southeastern Pennsylvania and plans to expand its lemonade stands across all markets this year [3] - ALSF was founded by Alex Scott, who raised $1 million for childhood cancer research before her passing at age eight, and continues to fund critical research and support families affected by childhood cancer [5] Company Overview - S&T Bancorp Inc. is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [4] - S&T Bank operates in Pennsylvania and Ohio and has received recognition as a Best-in-State Bank by Forbes in 2023 and as one of America's Best Banks in 2024 [4] Foundation Overview - Alex's Lemonade Stand Foundation (ALSF) originated from Alex Scott's front yard lemonade stand, which aimed to raise funds for childhood cancer research [5] - ALSF has grown into a global fundraising movement and is a leader in funding pediatric cancer research projects and providing support programs for families affected by childhood cancer [5]

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, 2024 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 2024 Earnings Conference Call April 18, 2024 1:00 PM ET Company Participants Mark Kochvar - CFO Chris McComish - CEO Dave Antolik - President Conference Call Participants Daniel Tamayo - Raymond James Kelly Motta - KBW Sharanjit Cheema - D.A. Davidson Companies Daniel Cardenas - Janney Montgomery Scott Matthew Breese - Stephens Inc. Operator Welcome to the S&T Bancorp First Quarter 2024 Conference Call. After the management’s remarks, there will be a question-and-answer ...

Income • Decrease in other related to a $3.3 million gain on OREO and $1.1 million of valuation adjustments in 4Q23 • Customer activity seasonally slower 1Q24 1Q24 vs 4Q23 1Q24 vs 1Q23 Noninterest Expense $54.5 ($1.7) $2.8 Expense • Salaries and benefits decreased $1.4 million mainly related to medical expense compared to 4Q23 ■ Noninterest Expense OEfficiency Ratio* Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 10 Capital Common Equity Total Leverage Tier 1 Net I ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------|-----------------|------------------|---------------| | | 2024 | 2023 | 2023 | | (dollars and shares in thousands) (1) Tangible Book Value (non-GAAP) | First Quarter | Fourth Quarter | First Quarter | | Total shareholders' equity Less: goodwill and other intangible assets, net of deferred | $1,295,074 | $1,283,445 | $1,227,795 | | tax liability | (376,396) | (376,631) | ( ...