S&T Bancorp, Inc.

Good afternoon, ladies and gentlemen, and welcome to the S&T Bank Corp First Quarter 2021 Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and the floor will be open for your questions and comments following the presentation. It is now my pleasure to turn the floor over to your host, Mark Kochvar, CFO. Sir, the floor is yours.

Thank you, and good afternoon, everyone. Thank you for participating in today's conference call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors, which is on the screen in front of you. This statement provides the cautionary language required by the Securities and Exchange Commission for forward-looking statements that may be included in this presentation. A copy of the first quarter of 2021 earnings release can be obtained by clicking on the press release link on your screen or by visiting our investor relations website at stbankcorp.com. We will be reviewing an earnings supplement slide deck as part of this presentation. You can obtain a copy of those slides by clicking on the earnings supplement link on your screen or on our website under events and presentations, first quarter 2021 earnings conference call. Click on the first quarter 2021 earnings supplement. With me today is Dave Antolik, S&P president and interim CEO. Now I'd like to turn the program over to Dave.

Thank you, Mark Ann. Good afternoon, everyone. We appreciate you joining us for our first quarter earnings call. I personally want to thank you for your continued interest in S&T Bank. As you may know, our board of directors continues its search for a permanent CEO and, in the interim, has entrusted me with the honor of serving as CEO. While we recognize the challenges that exist in the current environment, our energy is focused on renewed growth initiatives, and preparing for a future as a dynamic, high-performing community bank. I'm encouraged and proud of the progress that we've made, and I'm pleased to report record net income of $31.9 million in Q1. This translates into 81 cents per share versus 62 cents per share in the previous quarter. Our return metrics were also much improved this quarter, with ROA of 142, ROE of 1115, return on tangible common equity at 1678. Our pre-tax pre-provision to average assets also improved to 1.89%. Mark will walk you through a more detailed discussion of our financial results, but I would like to highlight a $1.2 million increase in mortgage banking fees quarter over quarter, a nearly 20% increase in wealth management revenue quarter over quarter, a modest increase in the core NIM rate, improving asset quality, and a continued focus on expense control, which contributed to an improvement in our efficiency ratio to 51.47%. I'm also pleased to report that our Board of Directors has approved a $0.28 per share dividend consistent with the same period last year. This dividend is payable May 20th to shareholders record on May 6th. Our portfolio loan balances continue to reflect the impacts of stimulus programs, primarily Triple P. If I could direct your attention to page five of the earnings supplement, you will see an update of forgiveness for round one and bookings of $190 million in round two through March 31st. As a reminder, round one activities were limited to existing customers, while round two included new customers to the bank. Page six provides a history of our modified loan balances. We have seen modifications reduced to less than 1% of total loans, Most encouraging is the continued reduction of modified hotel balances, which are now just $32 million compared to $177 million at the end of the year. As I mentioned earlier, we have renewed our focus on growth, and we have seen improvements in both our commercial and consumer pipelines when compared to last quarter and last year. We continue to experience payout pressure from permanent market offerings in the CRE portfolio. And in order to combat these pressures, we recognize the need for additional volume in the commercial space. And in Q1, added four commercial bankers in order to improve production. We also added four mortgage loan originators in Q1. Our consumer pipeline is up 30% versus Q1 of last year. And we continue to see strong demand for our home equity promotional product that is currently in the market. With regard to our mortgage activity, our pipelines are pointing towards increased activity in Q2, along with a meaningful shift in mix from nearly 90% of all activity being sold in Q1 to more meaningful portfolio activity and a reduction in sold loans as customer preference moves towards purchase and construction. I'd now like to turn the presentation over to Mark.