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 ...

| --- | |-------| | | | | 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 a loss of $33.1 million, or $0.85 per share, primarily due to a significant check-kiting scheme by a single business customer [6] - Excluding the loss from the fraud, core EPS was $0.34 per share, with a return on assets of 0.57%, return on equity of 4.48%, and return on tangible common equity of 6.86% [7] - The efficiency ratio improved to 50.51%, indicating effective expense management [8] - Total reserves increased by 18.34% to $114.6 million, with a reserve to loan ratio of 1.64% excluding PPP [14] Business Line Data and Key Metrics Changes - Mortgage banking production year-to-date was $213 million, a 54% increase year-over-year, with 70% of production being refinancing [10] - Commercial and industrial (C&I) loans saw a growth of $359 million due to PPP loans, while excluding PPP, C&I balances declined by $189 million [17] - Construction loan balances increased by $62 million, showing resilience despite COVID-19 impacts [18] Market Data and Key Metrics Changes - Significant deposit growth of $810 million was reported, with over half in noninterest-bearing demand deposit accounts [8] - The company experienced a 24% decline in branch transactions year-over-year, while digital banking activities surged, with call center volumes up 41% and Zelle payments up 27% [11] Company Strategy and Development Direction - The company is focused on enhancing processes and monitoring to prevent future fraud incidents [6] - A new website was launched to improve digital client services, reflecting a commitment to digital transformation [12] - The company aims to maintain a low efficiency ratio while managing expenses amid margin pressures expected in the coming year [36] Management Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing impact of COVID-19 on operations and emphasized the importance of health and safety measures [11] - There is an expectation of continued weakness in service charges and swaps in the second half of the year, but strong mortgage activity is anticipated [29] - Management is closely monitoring credit risks, particularly in the hotel segment, and expects a longer recovery period for this sector [22] Other Important Information - The Board of Directors declared a dividend of $0.28, a 3% increase from the same period last year [15] - The company has implemented a robust monitoring process for its most severely impacted loan segments, particularly hotels [22] Q&A Session Summary Question: Are there initiatives to reduce the expense rate beyond the second half guide in 2021? - Management is reviewing branch operations and has exited 12 positions to manage expenses, but no specific branch closures are committed at this time [35] Question: How do you expect the percentage of modified loans to trend in the coming months? - Management anticipates a continued reduction in modified loans as modifications expire, with close monitoring of segments with concerns [37] Question: What is the average loan size within the hotel and retail CRE books? - The average hotel loan size is $3.1 million, with modified averages at $3.8 million [56] Question: What changes have been made internally due to the fraud incident? - The company has enhanced processes and oversight following a thorough investigation into the fraud incident [57]