INDIANA, Pa., July 18, 2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 compared to net income of $31.2 million, or $0.81 per diluted share, for the first quarter of 2024 and net income of $34.5 million, or $0.89 per diluted share, for the second quarter of 2023.

S&T Bancorp, Inc. (PRNewsfoto/S&T Bancorp, Inc.)

Second Quarter of 2024 Highlights:

  • Solid return metrics with return on average assets (ROA) of 1.45%, return on average equity (ROE) of 10.61% and return on average tangible equity (ROTE) (non-GAAP) of 15.01% compared to ROA of 1.32%, ROE of 9.74% and ROTE (non-GAAP) of 13.85% for the first quarter of 2024.
  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.82% compared to 1.76% for the first quarter of 2024.
  • Net interest margin (NIM) (FTE) (non-GAAP) increased to 3.85% compared to 3.84% in the first quarter of 2024.
  • Customer deposit growth of $155.1 million, or 8.63% annualized, which was offset by lower brokered deposits of $75.1 million, resulting in total deposit growth of $80.0 million for the second quarter of 2024.
  • Nonperforming assets remain low at $35.0 million, or 0.45% of total loans plus other real estate owned, or OREO, compared to $33.3 million, or 0.44% of total loans plus OREO, at March 31, 2024.

"I am extremely proud of our second quarter financial results with solid return metrics and a strong net interest margin," said chief executive officer Chris McComish. "The investments we have made in our people, processes and products to grow our customer base are producing results. We remain focused on our strategic priorities of deepening our customer deposit franchise, strengthening asset quality and maintaining solid core profitability all driven by our highly talented and engaged team."

Net Interest Income

Net interest income increased $0.1 million to $83.6 million for the second quarter of 2024 compared to $83.5 million for the first quarter of 2024. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased one basis point to 3.85% compared to 3.84% in the prior quarter. The yield on total average loans increased four basis points to 6.29% compared to 6.25% in the first quarter of 2024. NIM continues to be positively impacted by a reduction in wholesale funding due to strong customer deposit growth. Total interest-bearing deposit cost increased 15 basis points to 2.92% compared to 2.77% in the first quarter of 2024. Higher interest-bearing deposit cost was primarily due to growth in higher costing average certificates of deposit, which increased $135.0 million compared to the first quarter of 2024. Average borrowings decreased $146.5 million to $350.4 million compared to $496.9 million in the first quarter of 2024 due to higher average deposit balances. Total borrowing cost decreased 13 basis points to 5.46% compared to 5.59% in the first quarter of 2024.

Asset Quality

The allowance for credit losses was $106.2 million, or 1.38% of total portfolio loans, as of June 30, 2024, compared to $104.8 million, or 1.37%, at March 31, 2024. The provision for credit losses was $0.4 million for the second quarter of 2024 compared to $2.6 million in the first quarter of 2024. The decrease in the provision for the second quarter was primarily due to net loan recoveries. Net loan recoveries were $0.4 million for the second quarter of 2024 compared to net loan charge-offs of $6.6 million in the first quarter of 2024. Nonperforming assets to total loans plus OREO remained low at 0.45% as of June 30, 2024 compared to 0.44% at March 31, 2024.

Noninterest Income and Expense

Noninterest income increased $0.5 million to $13.3 million in the second quarter of 2024 compared to $12.8 million in the first quarter of 2024. Debit and credit card income increased $0.5 million compared to the first quarter mainly due to seasonality. Other income increased $3.0 million primarily related to a fair value adjustment from the Visa exchange offer for Visa Class B-1 common stock during the second quarter of 2024. This was offset by a loss of $3.2 million during the second quarter related to the repositioning of $49.0 million of securities into longer duration higher-yielding securities.

Total noninterest expense decreased $0.9 million to $53.6 million compared to $54.5 million in the first quarter of 2024 mainly due to the timing of expenses. Salaries and employee benefits increased $0.9 million primarily related to higher medical costs compared to the first quarter of 2024.

Financial Condition

Total assets were $9.6 billion at June 30, 2024 compared to $9.5 billion at March 31, 2024. Total portfolio loans increased $57.5 million, or 3.02% annualized, to $7.7 billion compared to March 31, 2024. The increase in loans primarily related to growth in residential mortgages of $61.5 million compared to March 31, 2024. Total deposits increased $80.0 million, or 4.23% annualized, compared to March 31, 2024 with growth in customer deposits of $155.1 million, or 8.63% annualized, offset by lower brokered deposits of $75.1 million. DDA increased $17.7 million in the second quarter of 2024 compared to a decline of $33.0 million in the first quarter of 2024. Total borrowings decreased $10.1 million to $363.4 million compared to $373.5 million at March 31, 2024 primarily related to deposit growth.

S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Conference Call

S&T will host its second quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, July 18, 2024. To access the webcast, go to S&T Bancorp Inc.'s investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.6 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn.

Forward-Looking Statements

This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," "believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; any remaining uncertainties with the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force, and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses and geopolitical tensions and conflicts between nations.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2023, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


2024

2024

2023

Second

First

Second

(dollars in thousands, except per share data)

Quarter

Quarter

Quarter

INTEREST AND DIVIDEND INCOME





Loans, including fees

$119,564

$118,577

$108,699

Investment Securities:





Taxable

8,761

8,595

7,806

Tax-exempt

168

193

215

Dividends

272

389

613

Total Interest and Dividend Income

128,765

127,754

117,333







INTEREST EXPENSE





Deposits

39,629

36,662

20,102

Borrowings, junior subordinated debt securities and other

5,542

7,615

9,108

Total Interest Expense

45,171

44,277

29,210







NET INTEREST INCOME

83,594

83,477

88,123

Provision for credit losses

422

2,627

10,529

Net Interest Income After Provision for Credit Losses

83,172

80,850

77,594







NONINTEREST INCOME





Net (loss) gain on sale of securities

(3,150)

3

—

Debit and credit card

4,713

4,235

4,645

Service charges on deposit accounts

4,089

3,828

3,928

Wealth management

2,995

3,042

3,185

Mortgage banking

254

277

289

Other

4,404

1,445

2,144

Total Noninterest Income

13,305

12,830

14,191







NONINTEREST EXPENSE





Salaries and employee benefits

30,388

29,512

25,391

Data processing and information technology

4,215

4,954

4,177

Occupancy

3,649

3,870

3,710

Furniture, equipment and software

3,382

3,472

3,192

Marketing

1,404

1,943

1,459

Other taxes

1,433

1,871

1,322

Professional services and legal

1,403

1,720

2,069

FDIC insurance

1,053

1,049

1,032

Other noninterest expense

6,681

6,129

7,281

Total Noninterest Expense

53,608

54,520

49,633

Income Before Taxes

42,869

39,160

42,152

Income tax expense

8,498

7,921

7,685

Net Income

$34,371

$31,239

$34,467







Per Share Data





Shares outstanding at end of period

38,256,204

38,233,280

38,241,918

Average shares outstanding - diluted

38,531,692

38,418,085

38,614,022

Diluted earnings per share

$0.89

$0.81

$0.89

Dividends declared per share

$0.33

$0.33

$0.32

Dividend yield (annualized)

3.95 %

4.11 %

4.71 %

Dividends paid to net income

36.97 %

40.39 %

35.98 %

Book value

$34.54

$33.87

$31.72

Tangible book value (1)

$24.71

$24.03

$21.85

Market value

$33.39

$32.08

$27.19







Profitability Ratios (Annualized)





Return on average assets

1.45 %

1.32 %

1.51 %

Return on average shareholders' equity

10.61 %

9.74 %

11.23 %

Return on average tangible shareholders' equity(2)

15.01 %

13.85 %

16.32 %

Pre-provision net revenue / average assets(3)

1.82 %

1.76 %

2.30 %

Efficiency ratio (FTE)(4)

54.94 %

56.21 %

48.21 %







 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited




Six Months Ended June 30,

(dollars in thousands, except per share data)

2024

2023

INTEREST AND DIVIDEND INCOME





Loans, including fees

$238,141

$211,423

Investment Securities:





Taxable

17,356

15,263

Tax-exempt

361

429

Dividends

661

1,121

Total Interest and Dividend Income

256,519

228,236







INTEREST EXPENSE





Deposits

76,291

35,005

Borrowings, junior subordinated debt securities and other

13,157

16,317

Total Interest Expense

89,448

51,322







NET INTEREST INCOME

167,071

176,914

Provision for credit losses

3,049

11,451

Net Interest Income After Provision for Credit Losses

164,022

165,463







NONINTEREST INCOME





Net (loss) gain on sale of securities

(3,147)

—

Debit and credit card

8,948

9,018

Service charges on deposit accounts

7,917

8,004

Wealth management

6,037

6,133

Mortgage banking

531

590

Other

5,849

3,636

Total Noninterest Income

26,135

27,381







NONINTEREST EXPENSE





Salaries and employee benefits

59,900

52,992

Data processing and information technology

9,169

8,435

Occupancy

7,519

7,545

Furniture, equipment and software

6,854

6,053

Professional services and legal

3,123

3,890

Other taxes

3,304

3,112

Marketing

3,347

3,312

FDIC insurance

2,102

2,044

Other noninterest expense

12,810

13,949

Total Noninterest Expense

108,128

101,332

Income Before Taxes

82,029

91,512

Income tax expense

16,419

17,246







Net Income

$65,610

$74,266







Per Share Data





Average shares outstanding - diluted

38,495,622

38,821,886

Diluted earnings per share

$1.70

$1.91

Dividends declared per share

$0.66

$0.64

Dividends paid to net income

38.60 %

33.48 %







Profitability Ratios (annualized)





Return on average assets

1.38 %

1.64 %

Return on average shareholders' equity

10.17 %

12.29 %

Return on average tangible shareholders' equity(5)

14.44 %

17.93 %

Pre-provision net revenue / average assets(6)

1.79 %

2.27 %

Efficiency ratio (FTE)(7)

55.57 %

49.31 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


2024

2024

2023

Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

ASSETS





Cash and due from banks

$246,310

$207,462

$227,867

Securities available for sale, at fair value

977,958

970,728

970,372

Loans held for sale

188

—

541

Commercial loans:





Commercial real estate

3,347,699

3,367,722

3,224,180

Commercial and industrial

1,611,183

1,597,119

1,639,332

Commercial construction

380,128

360,086

363,100

Total Commercial Loans

5,339,010

5,324,927

5,226,612

Consumer loans:





Residential mortgage

1,562,026

1,500,499

1,286,771

Home equity

642,225

645,780

645,897

Installment and other consumer

102,660

108,232

115,634

Consumer construction

67,649

76,596

44,697

Total Consumer Loans

2,374,560

2,331,107

2,092,999

Total Portfolio Loans

7,713,570

7,656,034

7,319,611

Allowance for credit losses

(106,150)

(104,802)

(105,757)

Total Portfolio Loans, Net

7,607,420

7,551,232

7,213,854

Federal Home Loan Bank and other restricted stock, at cost

12,056

13,703

31,271

Goodwill

373,424

373,424

373,424

Other assets

418,106

422,554

435,593

Total Assets

$9,635,462

$9,539,103

$9,252,922







LIABILITIES





Deposits:





Noninterest-bearing demand

$2,206,589

$2,188,927

$2,330,237

Interest-bearing demand

789,317

848,729

875,174

Money market

2,008,486

1,882,157

1,583,717

Savings

906,794

936,056

1,018,936

Certificates of deposit

1,769,150

1,744,478

1,333,146

Total Deposits

7,680,336

7,600,347

7,141,210







Borrowings:





Short-term borrowings

275,000

285,000

530,000

Long-term borrowings

39,034

39,156

39,513

Junior subordinated debt securities

49,388

49,373

54,483

Total Borrowings

363,422

373,529

623,996

Other liabilities

270,261

270,153

274,863

Total Liabilities

8,314,019

8,244,029

8,040,069







SHAREHOLDERS' EQUITY





Total Shareholders' Equity

1,321,443

1,295,074

1,212,853

Total Liabilities and Shareholders' Equity

$9,635,462

$9,539,103

$9,252,922







Capitalization Ratios





Shareholders' equity / assets

13.71 %

13.58 %

13.11 %

Tangible common equity / tangible assets(9)

10.21 %

10.03 %

9.42 %

Tier 1 leverage ratio

11.51 %

11.30 %

11.12 %

Common equity tier 1 capital

13.89 %

13.59 %

13.07 %

Risk-based capital - tier 1

14.21 %

13.91 %

13.47 %

Risk-based capital - total

15.79 %

15.49 %

15.06 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2024

2024

2023


Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

Net Interest Margin (FTE) (QTD Averages)






ASSETS






Interest-bearing deposits with banks

$143,521

5.47 %

$144,637

5.75 %

$132,900

5.61 %

Securities, at fair value

961,552

2.93 %

966,703

2.81 %

983,349

2.54 %

Loans held for sale

27

7.37 %

176

7.12 %

92

6.87 %

Commercial real estate

3,346,725

5.97 %

3,365,142

5.92 %

3,176,154

5.62 %

Commercial and industrial

1,606,173

7.38 %

1,626,633

7.36 %

1,684,944

7.13 %

Commercial construction

374,856

7.82 %

365,088

7.70 %

384,329

7.63 %

Total Commercial Loans

5,327,754

6.52 %

5,356,863

6.48 %

5,245,427

6.25 %

Residential mortgage

1,528,200

5.00 %

1,478,609

4.93 %

1,229,129

4.52 %

Home equity

644,545

7.01 %

648,265

6.99 %

647,070

6.59 %

Installment and other consumer

105,313

8.63 %

110,899

8.64 %

118,641

8.28 %

Consumer construction

72,899

5.97 %

69,676

5.60 %

42,879

4.26 %

Total Consumer Loans

2,350,957

5.75 %

2,307,449

5.71 %

2,037,719

5.39 %

Total Portfolio Loans

7,678,711

6.29 %

7,664,312

6.25 %

7,283,146

6.01 %

Total Loans

7,678,738

6.29 %

7,664,488

6.25 %

7,283,238

6.01 %

Total other earning assets

20,087

7.04 %

25,335

7.12 %

37,003

7.26 %

Total Interest-earning Assets

8,803,898

5.91 %

8,801,163

5.86 %

8,436,490

5.61 %

Noninterest-earning assets

756,552

737,742

740,299

Total Assets

$9,560,450

$9,538,905

$9,176,789









LIABILITIES AND SHAREHOLDERS' EQUITY






Interest-bearing demand

$822,671

1.13 %

$829,095

1.12 %

$847,776

0.58 %

Money market

1,938,963

3.25 %

1,920,009

3.15 %

1,599,051

2.13 %

Savings

915,768

0.70 %

939,467

0.63 %

1,037,924

0.38 %

Certificates of deposit

1,774,037

4.55 %

1,639,059

4.37 %

1,235,496

3.06 %

Total Interest-bearing Deposits

5,451,439

2.92 %

5,327,630

2.77 %

4,720,247

1.71 %

Short-term borrowings

261,923

5.09 %

408,351

5.37 %

529,013

5.39 %

Long-term borrowings

39,099

4.53 %

39,221

4.53 %

32,980

4.14 %

Junior subordinated debt securities

49,379

8.18 %

49,364

8.23 %

54,474

7.62 %

Total Borrowings

350,401

5.46 %

496,936

5.59 %

616,467

5.52 %

Total Other Interest-bearing Liabilities

57,734

5.42 %

52,239

5.42 %

49,572

5.06 %

Total Interest-bearing Liabilities

5,859,574

3.10 %

5,876,805

3.03 %

5,386,286

2.18 %

Noninterest-bearing liabilities

2,397,606

2,371,586

2,559,888

Shareholders' equity

1,303,270

1,290,514

1,230,615

Total Liabilities and Shareholders' Equity

$9,560,450

$9,538,905

$9,176,789









Net Interest Margin(10)

3.85 %

3.84 %

4.22 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,

(dollars in thousands)

2024

2023

Net Interest Margin (FTE) (YTD Averages)






ASSETS






Interest-bearing deposits with banks

$144,079

5.61 %

$136,679

4.90 %

Securities, at fair value

964,128

2.87 %

991,931

2.52 %

Loans held for sale

101

7.16 %

108

6.60 %

Commercial real estate

3,355,933

5.95 %

3,154,390

5.54 %

Commercial and industrial

1,616,403

7.37 %

1,697,956

6.94 %

Commercial construction

369,972

7.76 %

386,549

7.43 %

Total Commercial Loans

5,342,308

6.50 %

5,238,895

6.13 %

Residential mortgage

1,503,405

4.97 %

1,187,208

4.48 %

Home equity

646,405

7.00 %

648,718

6.44 %

Installment and other consumer

108,106

8.64 %

120,746

8.04 %

Consumer construction

71,288

5.79 %

44,366

4.47 %

Total Consumer Loans

2,329,204

5.73 %

2,001,038

5.33 %

Total Portfolio Loans

7,671,512

6.27 %

7,239,933

5.91 %

Total Loans

7,671,613

6.27 %

7,240,041

5.91 %

Total other earning assets

22,711

7.08 %

35,868

6.99 %

Total Interest-earning Assets

8,802,531

5.89 %

8,404,519

5.50 %

Noninterest-earning assets

747,147

747,464

Total Assets

$9,549,678

$9,151,983









LIABILITIES AND SHAREHOLDERS' EQUITY






Interest-bearing demand

$825,883

1.13 %

$836,263

0.46 %

Money market

1,929,486

3.20 %

1,634,820

2.00 %

Savings

927,618

0.66 %

1,063,887

0.34 %

Certificates of deposit

1,706,548

4.46 %

1,144,484

2.66 %

Total Interest-bearing deposits

5,389,535

2.85 %

4,679,454

1.51 %

Short-term borrowings

335,137

5.26 %

490,554

5.18 %

Long-term borrowings

39,160

4.53 %

23,885

3.71 %

Junior subordinated debt securities

49,372

8.20 %

54,466

7.56 %

Total Borrowings

423,669

5.54 %

568,905

5.34 %

Total Other Interest-bearing Liabilities

54,986

5.42 %

52,107

4.81 %

Total Interest-bearing Liabilities

5,868,190

3.06 %

5,300,466

1.95 %

Noninterest-bearing liabilities

2,384,596

2,632,964

Shareholders' equity

1,296,892

1,218,553

Total Liabilities and Shareholders' Equity

$9,549,678

$9,151,983









Net Interest Margin(8)


3.84 %

4.27 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2024

2024

2023


Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

Nonaccrual Loans






Commercial loans:

% Loans

% Loans

% Loans

Commercial real estate

$15,090

0.45 %

$18,082

0.54 %

$1,859

0.06 %

Commercial and industrial

7,075

0.44 %

3,092

0.19 %

4,842

0.30 %

Commercial construction

4,960

1.30 %

4,960

1.38 %

384

0.11 %

Total Nonaccrual Commercial Loans

27,125

0.51 %

26,134

0.49 %

7,085

0.14 %

Consumer loans:






Residential mortgage

4,698

0.30 %

4,160

0.28 %

4,167

0.32 %

Home equity

2,804

0.44 %

2,709

0.42 %

2,700

0.42 %

Installment and other consumer

230

0.22 %

206

0.19 %

367

0.32 %

Total Nonaccrual Consumer Loans

7,732

0.33 %

7,075

0.30 %

7,234

0.35 %

Total Nonaccrual Loans

$34,857

0.45 %

$33,209

0.43 %

$14,319

0.20 %

 

2024

2024

2023

Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

Loan (Recoveries) Charge-offs





Charge-offs

$845

$6,939

$12,222

Recoveries

(1,233)

(350)

(1,255)

Net Loan (Recoveries) Charge-offs

($388)

$6,589

$10,967







Net Loan (Recoveries) Charge-offs





Commercial loans:





Commercial real estate

($379)

$5,238

($1,030)

Commercial and industrial

(658)

950

11,296

Commercial construction

—

—

—

Total Commercial Loan (Recoveries) Charge-offs

(1,037)

6,188

10,266

Consumer loans:





Residential mortgage

33

7

(1)

Home equity

274

105

(12)

Installment and other consumer

342

289

714

Total Consumer Loan Charge-offs

649

401

701

Total Net Loan (Recoveries) Charge-offs

($388)

$6,589

$10,967

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited




Six Months Ended June 30,

(dollars in thousands)

2024

2023

Loan Charge-offs (Recoveries)





Charge-offs

$7,784

$16,681

Recoveries

(1,583)

(10,829)

Net Loan Charge-offs

$6,201

$5,852







Net Loan Charge-offs (Recoveries)





Commercial loans:





Customer fraud

$—

($9,329)

Commercial real estate

4,859

(1,055)

Commercial and industrial

292

15,244

Commercial construction

—

(2)

Total Commercial Loan Charge-offs

5,151

4,858

Consumer loans:





Residential mortgage

40

8

Home equity

379

19

Installment and other consumer

631

967

Total Consumer Loan Charge-offs

1,050

994

Total Net Loan Charge-offs

$6,201

$5,852

 

2024

2024

2023

Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

Asset Quality Data





Nonaccrual loans

$34,857

$33,209

$14,319

OREO

95

140

3,666

Total nonperforming assets

34,952

33,349

17,985

Nonaccrual loans / total loans

0.45 %

0.43 %

0.20 %

Nonperforming assets / total loans plus OREO

0.45 %

0.44 %

0.25 %

Allowance for credit losses / total portfolio loans

1.38 %

1.37 %

1.44 %

Allowance for credit losses / nonaccrual loans

305 %

316 %

739 %

Net loan (recoveries) charge-offs

($388)

$6,589

$10,967

Net loan (recoveries) charge-offs (annualized) / average loans

(0.02 %)

0.35 %

0.60 %

 

Six Months Ended June 30,

(dollars in thousands)

2024

2023

Asset Quality Data





Net loan charge-offs

$6,201

$5,852

Net loan charge-offs / average loans

0.16 %

0.16 %

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

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


2024

2024

2023

Second

First

Second

(dollars and shares in thousands)

Quarter

Quarter

Quarter

(1) Tangible Book Value (non-GAAP)





Total shareholders' equity

$1,321,443

$1,295,074

$1,212,853

Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)

(376,396)

(377,144)

Tangible common equity (non-GAAP)

$945,289

$918,678

$835,709

Common shares outstanding

38,256

38,233

38,242

Tangible book value (non-GAAP)

$24.71

$24.03

$21.85

Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts.







(2) Return on Average Tangible Shareholders' Equity (non-GAAP)





Net income (annualized)

$138,239

$125,643

$138,248

Plus: amortization of intangibles (annualized), net of tax

921

944

1,046

Net income before amortization of intangibles (annualized)

$139,160

$126,587

$139,294







Average total shareholders' equity

$1,303,270

$1,290,514

$1,230,615

Less: average goodwill and other intangible assets, net of deferred tax liability

(376,285)

(376,518)

(377,280)

Average tangible equity (non-GAAP)

$926,985

$913,996

$853,335

Return on average tangible shareholders' equity (non-GAAP)

15.01 %

13.85 %

16.32 %

Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.







(3) Pre-provision Net Revenue / Average Assets (non-GAAP)





Income before taxes

$42,869

$39,160

$42,152

   Plus: Provision for credit losses

422

2,627

10,529

Total

$43,291

$41,787

$52,681

Total (annualized) (non-GAAP)

$174,115

$168,066

$211,302

Average assets

$9,560,450

$9,538,905

$9,176,789

Pre-provision Net Revenue / Average Assets (non-GAAP)

1.82 %

1.76 %

2.30 %

Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this to be
a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.







(4) Efficiency Ratio (non-GAAP)





Noninterest expense

$53,608

$54,520

$49,633







Net interest income per consolidated statements of net income

$83,594

$83,477

$88,123

Plus: taxable equivalent adjustment

682

692

639

Net interest income (FTE) (non-GAAP)

84,276

84,169

88,762

Noninterest income

13,305

12,830

14,191

Less: net gains on sale of securities

3,150

(3)

—

Less: Visa Class B-1 exchange

(3,156)

—

—

Net interest income (FTE) (non-GAAP) plus noninterest income

$97,575

$96,996

$102,953

Efficiency ratio (non-GAAP)

54.94 %

56.21 %

48.21 %

 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which
ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited




Six Months Ended June 30,

(dollars in thousands)

2024

2023

(5) Return on Average Tangible Shareholders' Equity (non-GAAP)





Net income (annualized)

$131,941

$149,763

Plus: amortization of intangibles (annualized), net of tax

932

1,066

Net income before amortization of intangibles (annualized)

$132,873

$150,829







Average total shareholders' equity

$1,296,892

$1,218,553

Less: average goodwill and other intangible assets, net of deferred tax liability

(376,402)

(377,427)

Average tangible equity (non-GAAP)

$920,490

$841,126

Return on average tangible shareholders' equity (non-GAAP)

14.44 %

17.93 %

Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.







(6) Pre-provision Net Revenue / Average Assets (non-GAAP)





Income before taxes

$82,029

$91,512

   Plus: Provision for credit losses

3,049

11,451

Total

$85,078

$102,963

Total (annualized) (non-GAAP)

$171,091

$207,632

Average assets

$9,549,678

$9,151,983

Pre-provision Net Revenue / Average Assets (non-GAAP)

1.79 %

2.27 %

Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this
to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.







(7) Efficiency Ratio (non-GAAP)





Noninterest expense

$108,128

$101,332







Net interest income per consolidated statements of net income

$167,071

$176,914

Plus: taxable equivalent adjustment

1,375

1,194

Net interest income (FTE) (non-GAAP)

168,446

178,108

Noninterest income

26,135

27,381

Less: net gains on sale of securities

3,147

—

Less: Visa Class B-1 exchange

(3,156)

—

Net interest income (FTE) (non-GAAP) plus noninterest income

$194,572

$205,489

Efficiency ratio (non-GAAP)

55.57 %

49.31 %

The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which
ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.







(8) Net Interest Margin Rate (FTE) (non-GAAP)





Interest income and dividend income

$256,519

$228,236

   Less: interest expense

(89,448)

(51,322)

Net interest income per consolidated statements of net income

167,071

176,914

   Plus: taxable equivalent adjustment

1,375

1,194

Net interest income (FTE) (non-GAAP)

$168,446

$178,108

Net interest income (FTE) (annualized)

$338,743

$359,166

Average interest-earning assets

$8,802,531

$8,404,519

Net interest margin - (FTE) (non-GAAP)

3.84 %

4.27 %

The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP).
The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received
deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry
measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 

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


2024

2024

2023

Second

First

Second

(dollars in thousands)

Quarter

Quarter

Quarter

(9) Tangible Common Equity / Tangible Assets (non-GAAP)





Total shareholders' equity

$1,321,443

$1,295,074

$1,212,853

Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)

(376,396)

(377,144)

Tangible common equity (non-GAAP)

$945,289

$918,678

$835,709







Total assets

$9,635,462

$9,539,103

$9,252,922

Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)

(376,396)

(377,144)

Tangible assets (non-GAAP)

$9,259,308

$9,162,707

$8,875,778

Tangible common equity to tangible assets (non-GAAP)

10.21 %

10.03 %

9.42 %

Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.







(10) Net Interest Margin Rate (FTE) (non-GAAP)





Interest income and dividend income

$128,765

$127,754

$117,333

Less: interest expense

(45,171)

(44,277)

(29,210)

Net interest income per consolidated statements of net income

83,594

83,477

88,123

Plus: taxable equivalent adjustment

682

692

639

Net interest income (FTE) (non-GAAP)

$84,276

$84,169

$88,762

Net interest income (FTE) (annualized)

$338,956

$338,526

$356,022

Average interest-earning assets

$8,803,898

$8,801,163

$8,436,490

Net interest margin (FTE) (non-GAAP)

3.85 %

3.84 %

4.22 %

The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP).
The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received
deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry
measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

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SOURCE S&T Bancorp, Inc.

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