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) | ( ...

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, 2023 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 specified in its charter) Pennsylvania 25-1434426 (State or other jurisdiction of incorporation ...

S&T Bancorp, Inc. (NASDAQ:STBA) Q4 2023 Results Conference Call January 25, 2024 1:00 PM ET Company Participants Mark Kochvar - CFO Chris McComish - CEO Dave Antolik - President Conference Call Participants Daniel Tamayo - Raymond James Michael Perito - KBW Manuel Navas - D.A. Davidson Matthew Breese - Stephens Inc Daniel Cardenas - Janney Montgomery Scott Operator Welcome to the S&T Bancorp Fourth Quarter 2023 Conference Call. After the management's remarks, there will be a question-and-answer session. Now ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents S&T Bancorp's unaudited consolidated financial statements for Q3 and nine months ended September 30, 2023, including balance sheets, income, equity, cash flows, and notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to **$9.47 billion** by September 30, 2023, driven by loan growth, while deposits remained stable at **$7.2 billion** with a shift to higher-cost certificates Consolidated Balance Sheet Highlights (in thousands) | Account | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$9,466,077** | **$9,110,567** | | Portfolio loans, net | $7,407,712 | $7,082,629 | | Securities available for sale | $955,262 | $1,002,778 | | **Total Liabilities** | **$8,242,545** | **$7,925,908** | | Total Deposits | $7,222,897 | $7,219,970 | | Short-term borrowings | $630,000 | $370,000 | | **Total Shareholders' Equity** | **$1,223,532** | **$1,184,659** | - The growth in total assets was primarily fueled by a **$325 million** increase in net portfolio loans[8](index=8&type=chunk) - A significant shift occurred in deposit composition: noninterest-bearing demand deposits fell by **$312.7 million**, while certificates of deposit grew by **$553.3 million**[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Q3 2023 net income decreased to **$33.5 million** due to higher credit loss provision and interest expense, while nine-month net income increased to **$107.7 million** driven by net interest income growth Key Income Statement Data (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $87,387 | $83,798 | $264,301 | $226,725 | | Provision for credit losses | $5,498 | $2,498 | $16,949 | $5,190 | | **Net Income** | **$33,468** | **$37,249** | **$107,734** | **$95,250** | | Earnings per share—diluted | $0.87 | $0.95 | $2.78 | $2.43 | - Total interest income for the nine-month period grew significantly to **$351.2 million** in 2023 from **$237.5 million** in 2022, reflecting the higher interest rate environment[10](index=10&type=chunk) - Total interest expense also saw a sharp increase, rising to **$86.9 million** for the first nine months of 2023 from just **$10.8 million** in the prior-year period, driven by higher deposit and borrowing costs[10](index=10&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity grew from **$1.18 billion** to **$1.22 billion** by September 30, 2023, primarily from net income, partially offset by dividends, repurchases, and other comprehensive loss Shareholders' Equity Activity - Nine Months Ended Sep 30, 2023 (in thousands) | Description | Amount | | :--- | :--- | | Balance at January 1, 2023 | $1,184,659 | | Net Income | $107,734 | | Other comprehensive loss, net of tax | ($13,511) | | Cash dividends declared | ($37,190) | | Repurchase of S&T Stock | ($19,998) | | **Balance at September 30, 2023** | **$1,223,532** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash and due from banks increased by **$28.4 million** for the nine months, with **$132.1 million** from operations, **$328.8 million** used in investing, and **$225.2 million** provided by financing activities Cash Flow Summary - Nine Months Ended Sep 30 (in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $132,070 | $205,236 | | Net Cash Used in Investing Activities | ($328,829) | ($306,607) | | Net Cash Provided by (Used in) Financing Activities | $225,203 | ($685,941) | | **Net increase (decrease) in cash** | **$28,444** | **($787,312)** | - A significant shift in financing activities occurred, from a net cash use of **$685.9 million** in 2022 to a net cash provision of **$225.2 million** in 2023, largely due to increased borrowings[14](index=14&type=chunk) [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures for financial statements, covering accounting policies, fair value, portfolio risks, credit losses, derivatives, and off-balance sheet commitments - The company adopted ASU 2022-02 on January 1, 2023, which eliminated the Troubled Debt Restructuring (TDR) accounting model and enhanced disclosures for loan modifications to borrowers experiencing financial difficulty, resulting in a **$0.6 million** increase to the Allowance for Credit Losses (ACL) and a decrease to retained earnings[20](index=20&type=chunk)[23](index=23&type=chunk) - The company's available-for-sale debt securities portfolio had gross unrealized losses of **$115.4 million** as of September 30, 2023, primarily attributed to changes in interest rates rather than credit quality deterioration[37](index=37&type=chunk)[38](index=38&type=chunk) - Total commitments to extend credit were **$2.7 billion**, and standby letters of credit were **$53.1 million** as of September 30, 2023[80](index=80&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operations, analyzing earnings, net interest income, credit losses, noninterest items, balance sheet changes, and highlighting strong liquidity and capital [Overview](index=33&type=section&id=Overview) S&T Bancorp, a **$9.5 billion** bank holding company, maintains a strong liquidity and balance sheet with a diversified deposit base, robust capital, and **$3.8 billion** in available borrowing capacity - The company's deposit base is well-diversified, consisting of **57.4%** personal, **35.2%** business, **5.0%** public funds, and **2.4%** brokered deposits as of September 30, 2023[97](index=97&type=chunk) - Total uninsured deposits amount to **$2.2 billion**, representing **31%** of the total deposit base[97](index=97&type=chunk) - Available borrowing capacity stood at **$3.8 billion** at September 30, 2023, including access to the FHLB, Federal Reserve Discount Window, and the Bank Term Funding Program (BTFP)[97](index=97&type=chunk) [Earnings Summary](index=33&type=section&id=Earnings%20Summary) Q3 2023 net income decreased to **$33.5 million** due to higher credit loss provision and expenses, while nine-month net income rose to **$107.7 million** driven by increased net interest income Key Profitability Metrics | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income (in thousands) | $33,468 | $37,249 | $107,734 | $95,250 | | Earnings per share - diluted | $0.87 | $0.95 | $2.78 | $2.43 | | Return on average assets | 1.42% | 1.64% | 1.56% | 1.38% | | Return on average shareholders' equity | 10.84% | 12.47% | 11.80% | 10.73% | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Net interest income grew despite rising interest expense, while credit loss provision increased, noninterest income declined due to valuation adjustments, and noninterest expense rose from higher salaries - Net interest margin (NIM) on a fully taxable equivalent (FTE) basis increased to **4.09%** in Q3 2023 from **4.04%** in Q3 2022, and to **4.21%** for the nine-month period from **3.58%** a year prior, driven by higher interest rates[100](index=100&type=chunk)[107](index=107&type=chunk)[113](index=113&type=chunk) - The provision for credit losses for the nine months ended Sep 30, 2023, was **$17.0 million**, an increase of **$11.8 million** from the same period in 2022, due to higher net charge-offs and an increased qualitative reserve[101](index=101&type=chunk)[119](index=119&type=chunk) - Noninterest income for Q3 2023 decreased by **$2.6 million** year-over-year, primarily due to a **$0.9 million** valuation adjustment for commercial loan swaps and a **$0.6 million** gain on OREO sale in the prior year period that did not recur[102](index=102&type=chunk)[122](index=122&type=chunk) - Noninterest expense for the nine months ended Sep 30, 2023, increased by **$8.7 million** year-over-year, mainly due to a **$5.3 million** rise in salaries and employee benefits[103](index=103&type=chunk)[124](index=124&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition) Total assets grew by **$355.5 million** to **$9.5 billion** driven by loan growth, deposits remained flat at **$7.2 billion** with a mix shift, and borrowings increased by **$279.5 million** - Total portfolio loans grew by **4.6%** to **$7.5 billion** at September 30, 2023, with consumer real estate loans increasing by **15.3%** and commercial loans increasing by **1.2%**[126](index=126&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk) - The Allowance for Credit Losses (ACL) increased to **$108.2 million** (**1.44%** of loans) from **$101.3 million** (**1.41%** of loans) at year-end, reflecting a larger qualitative reserve and downgrades in the C&I portfolio[142](index=142&type=chunk) - Nonaccrual loans decreased by **33.5%** to **$12.7 million** (**0.17%** of loans) from **$19.1 million** (**0.27%** of loans) at year-end 2022, mainly due to the payoff of a large CRE loan[146](index=146&type=chunk) - Total borrowings increased to **$718.7 million** from **$439.2 million** at year-end 2022 to support loan growth[149](index=149&type=chunk) [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, supported by a stable deposit base and **$3.8 billion** in borrowing capacity, with all capital ratios exceeding 'well-capitalized' minimums Available Funding Sources (in thousands) | Source | Borrowing Capacity | Balance | Available | | :--- | :--- | :--- | :--- | | FHLB | $3,125,638 | $787,701 | $2,337,937 | | Federal Reserve Discount Window | $769,550 | $0 | $769,550 | | Federal Reserve BTFP | $675,784 | $0 | $675,784 | | **Total** | **$4,570,972** | **$787,701** | **$3,783,271** | Regulatory Capital Ratios (S&T Bancorp, Inc.) | Ratio | September 30, 2023 | Well-Capitalized Guideline | | :--- | :--- | :--- | | Common equity tier 1 | 13.11% | 6.50% | | Tier 1 capital | 13.43% | 8.00% | | Total capital | 15.01% | 10.00% | | Tier 1 leverage | 11.12% | 5.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with an asset-sensitive balance sheet indicating net interest income increases in rising rates and decreases in falling rates Interest Rate Sensitivity Analysis (Pretax Net Interest Income % Change) | Change in Interest Rate (bps) | 1 - 12 Months % Change | 13 - 24 Months % Change | | :--- | :--- | :--- | | +400 | 7.7% | 10.9% | | +200 | 3.7% | 5.0% | | +100 | 1.7% | 2.4% | | -100 | (4.1)% | (5.8)% | | -200 | (5.9)% | (8.4)% | - The balance sheet is asset sensitive, meaning more assets than liabilities will reprice in a given period, leading to higher net interest income in a rising rate environment and lower net interest income in a falling rate environment[168](index=168&type=chunk) [Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, deemed disclosure controls effective as of September 30, 2023, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[172](index=172&type=chunk) - No changes were made to internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[173](index=173&type=chunk) [PART II. OTHER INFORMATION](index=51&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no legal proceedings - None[175](index=175&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2022 Form 10-K, except for a new risk concerning adverse effects from difficult market conditions and bank failures - A new risk factor has been added concerning the potential adverse effects of difficult market conditions, such as rapidly rising interest rates and recent bank receiverships, on the company's business, operations, liquidity, and stock price[176](index=176&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No shares were repurchased in Q3 2023; a **$50 million** share repurchase plan remains active with **$9.8 million** available as of September 30, 2023 - No shares were repurchased during the three months ended September 30, 2023[179](index=179&type=chunk) - The company has a **$50 million** share repurchase plan authorized through March 31, 2024, with **$9,807,857** remaining capacity at the end of the quarter[179](index=179&type=chunk) [Defaults Upon Senior Securities](index=53&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities - None[180](index=180&type=chunk) [Mine Safety Disclosures](index=53&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[180](index=180&type=chunk) [Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted, terminated, or modified trading arrangements during the third quarter of 2023 - No director or Section 16 officer adopted, terminated, or modified a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the quarter[180](index=180&type=chunk) [Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists Form 10-Q exhibits, including CEO and CFO certifications and XBRL interactive data files - The report includes certifications from the Chief Executive Officer and Chief Financial Officer under Rule 13a-14(a) and Rule 13a-14(b)[181](index=181&type=chunk) - Interactive Data Files (XBRL documents) are included as exhibits[181](index=181&type=chunk)

S&T Bancorp, Inc. (NASDAQ:STBA) Q3 2023 Results Conference Call October 19, 2023 1:00 PM ET Company Participants Mark Kochvar - CFO Chris McComish - CEO Dave Antolik - President Conference Call Participants Daniel Tamayo - Raymond James Matthew Breese - Stephens Manuel Navas - D.A. Davidson Daniel Cardenas - Janney Montgomery Scott Michael Perito - KBW Operator Welcome to the S&T Bancorp Third Quarter 2023 Conference Call. After management’s remarks, there will be a question-and-answer session. Now, I’d lik ...

Financial Performance - Pre-provision Net Revenue (PPNR) to Average Assets (non-GAAP) was 2.30%[2], which increased by 7 basis points compared to 1Q23[11] - Return on Average Tangible Shareholders' Equity (ROTE) (non-GAAP) was 16.32%[3] - Net Interest Margin (NIM) remains strong at 4.22%, a modest decline of 10 basis points compared to 1Q23[11, 18] - The efficiency ratio was 48.21%[11] Asset Quality - Net charge-offs were $11.0 million, or 0.60% of average loans (annualized)[11] - Nonperforming Assets decreased $9.7 million to 0.25% of total loans plus OREO[30] Capital and Balance Sheet - Tangible common equity to tangible assets (non-GAAP) was 9.42%[5] - Loans increased $68.5 million, or 3.8% annualized, since March 31, 2023[12] - Share repurchases of $20.0 million occurred in 2Q23[48] Income and Expense - Quarterly net interest income has improved $19.7 million, or 28.8%, since the fourth quarter of 2021[32] - Noninterest expense decreased by $2.0 million compared to 1Q23[35]

Financial Performance - Net income for the three months ended June 30, 2023, was $34.5 million, or $0.89 per diluted share, compared to $28.9 million, or $0.74 per diluted share for the same period in 2022, representing a 19.4% increase in net income[100] - Noninterest income for the three months ended June 30, 2023, increased by $1.6 million to $14.2 million, while mortgage banking income decreased due to a decline in loan sale activity[104] - Noninterest expense increased by $1.2 million to $49.6 million for the three months ended June 30, 2023, primarily due to higher salaries and employee benefits[105] - Total interest and dividend income for Q2 2023 was $117,333, an increase of 51.2% from $77,599 in Q2 2022[110] - Net interest income for Q2 2023 was $88,123, up 17.5% from $75,194 in Q2 2022[110] - Return on average tangible shareholders' equity for Q2 2023 was 16.32%, up from 14.63% in Q2 2022[110] - Total shareholders' equity increased by $28.2 million to $1.2 billion at June 30, 2023, primarily due to net income of $74.3 million[134] Asset and Loan Growth - As of June 30, 2023, S&T Bancorp, Inc. has total assets of $9.3 billion[96] - Total assets increased by $142.4 million to $9.3 billion at June 30, 2023, compared to $9.1 billion at December 31, 2022[131] - Total portfolio loans increased by $135.6 million to $7.3 billion at June 30, 2023, primarily driven by consumer loan growth of $155.5 million[131] - Total loans increased to $7,283,238 in Q2 2023, compared to $6,973,926 in Q2 2022[110] - Average loan balances increased by $263.2 million for the six months ended June 30, 2023, compared to the same period in 2022, with the average yield on loans rising by 197 basis points[117] Deposits and Borrowings - Total deposits decreased by 1.1% compared to December 31, 2022, with total uninsured deposits at $2.2 billion, or 30% of the total deposit base[99] - Deposits decreased by $78.8 million to $7.1 billion at June 30, 2023, attributed to current economic conditions and competition in a higher interest rate environment[133] - Total borrowings increased by $184.8 million to $624.0 million at June 30, 2023, primarily due to loan growth and a decline in deposits[134] - Short-term borrowings rose by $160.0 million to $530.0 million at June 30, 2023, with an average interest rate during the period of 5.18%, up from 4.15% in the previous year[155] - Long-term borrowings increased to $39.5 million at June 30, 2023, from $14.7 million at December 31, 2022, with the average interest rate rising to 3.71% from 2.15%[156] Interest Income and Expense - Net interest income increased by $34.2 million, or 23.7%, for the six months ended June 30, 2023, compared to the same period in 2022, primarily due to higher interest rates[116] - Interest expense rose by $46.5 million for the six months ended June 30, 2023, primarily due to higher interest rates, with the average rate paid on interest-bearing deposits increasing by 137 basis points[119] - Total interest expense for Q2 2023 was $29,210, significantly higher than $2,405 in Q2 2022[110] - The cost of interest-bearing liabilities increased by 177 basis points for the six months ended June 30, 2023, compared to the same period in 2022[119] Credit Quality - The provision for credit losses rose to $10.5 million for the three months ended June 30, 2023, compared to $3.2 million for the same period in 2022, reflecting increased net loan charge-offs[103] - Net loan charge-offs were $11.0 million for the three months ended June 30, 2023, compared to $3.0 million for the same period in 2022[123] - The allowance for credit losses (ACL) was $105.8 million, or 1.44% of total portfolio loans, as of June 30, 2023, up from $101.3 million, or 1.41%, at December 31, 2022[145] - Nonperforming assets decreased by $4.1 million, or 18.6%, to $18.0 million at June 30, 2023, compared to $22.1 million at December 31, 2022[150] Liquidity and Capital Ratios - S&T Bancorp maintains a strong liquidity position with $3.8 billion in remaining borrowing availability as of June 30, 2023[99] - The Common Equity Tier 1 Ratio was 13.07% and the total capital ratio was 15.06% at June 30, 2023, indicating strong capital levels[99] - The leverage ratio stood at 11.12% as of June 30, 2023, compared to 11.06% at December 31, 2022, exceeding the regulatory guideline of 5.00%[162] - The Common Equity Tier 1 ratio improved to 13.07% at June 30, 2023, from 12.81% at December 31, 2022, surpassing the regulatory requirement of 6.50%[163] Interest Rate Sensitivity - The company has an asset sensitive balance sheet, meaning more assets than liabilities will reprice during measured time frames, impacting net interest income positively in a rising interest rate environment[171] - The percentage change in pretax net interest income for a 400 basis point increase in interest rates is 10.8% for the 1-12 month period and 13.9% for the 13-24 month period[170] - The percentage change in pretax net interest income for a 400 basis point decrease in interest rates is -15.9% for the 1-12 month period and -21.3% for the 13-24 month period[170] - The company conducts market risk stress tests annually, which include sensitivity analyses and simulations to assess the impact of various interest rate changes[173]

S&T Bancorp, Inc. (NASDAQ:STBA) Q2 2023 Earnings Conference Call July 20, 2023 1:00 PM ET Company Participants Mark Kochvar - Chief Financial Officer Chris McComish - Chief Executive Officer Dave Antolik - President Conference Call Participants Daniel Tamayo - Raymond James Michael Perito - KBW Manuel Navas - D.A. Davidson Daniel Cardenas - Janney Montgomery Scott Operator Welcome to the S&T Bancorp Second Quarter 2023 Conference Call. After the management's remarks, there will be a question-and-answer sess ...