S&T Bancorp, Inc.

Good day, ladies and gentlemen, and welcome to the S&T Bancorp, Inc. Second 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 questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Mark Kochvar. Sir, the floor is yours.

Well, thank you very much. 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 second quarter 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 through the link on your screen or also on our website under events and presentations, second quarter 2021 earnings conference call. Click on the second quarter 2021 earnings supplement. With me today is Dave Antolik, S&T's president and interim chief executive officer. I would now like to turn the program over to Dave.

Well, thank you, Mark, and good afternoon, everyone. Mark and I appreciate you joining us for the call today and for your ongoing interest and support of S&T Bank. As announced last week, our board of directors has chosen Mr. Christopher McCommish as our new CEO. Chris comes to us with a wealth of executive bank leadership experience, and I look forward to him joining us on next quarter's call. I've had the pleasure of spending time with Chris over the past several weeks as we work together to transition duties and welcome him to our organization and community. I strongly believe that his experiences leading larger, customer-focused, and employee-driven organizations, particularly in the digital and consumer spaces, will complement my long tenure and understanding of our culture, customers, and my experience in the commercial banking space. I believe that we have found the right leader to move us forward as a strong, independent community bank focused on growth and providing solid returns for our shareholders. If I could refer you to page three of our earnings supplement for the quarter, I am pleased to report net income of $28.4 million. That translates to total earnings of 72 cents per share. Our return metrics remain solid and in line with our expectations with ROA of 1.21%, ROE of 9.65%, return on tangible common equity of 14.41%, and pre-tax, pre-provisioned average assets of 1.61%. I'm also pleased to report that our board of directors has declared a 28 cents per share dividend consistent with Q1 and with the same period last year. The dividend is payable August 19th to shareholders of record on August 5th. Slide four highlights the changes to our balance sheet during Q2. Cash balances grew by $985 million. Our primary goal for deploying this liquidity is by growing customer loan balances. In support of this goal, we experienced improved customer demand as evidenced by a continuation of growing loan pipelines in all categories, a modest increase in commercial utilization rates, and increases in total commitments of $189 million during the quarter. Year-to-date loan production is well ahead of goal in all categories, and was particularly strong in late June. However, this production was offset by higher CRE payoffs earlier in the quarter. Highlighting consumer loan balance activity was an increase in home equity balances that was offset by lower residential mortgage balances. We expect the residential mortgage balances to reverse course as we book more to the portfolio in support of our cash deployment strategy and a change in customer activity from refinance to purchase and construction. We anticipate that second half loan growth excluding Triple P to be in the low single digits consistent with prior guidance. During the quarter, we made several key additions to our production staff, including a new market executive in Northeast Ohio, a new director of mortgage sales, two business bankers, and three commercial bankers. I'll now turn the discussion over to Mark to cover the next few slides.