S&T Bancorp, Inc.

Good day, ladies and gentlemen, and welcome to the S&T Bancorp Incorporated Second Quarter Earnings Conference Call. At this time, all participants have been placed on a listen-only mode, and we will open up the floor 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.

Thank you very much, and good afternoon, everybody. 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 2022 earnings release can be obtained by clicking on the press release link on your screen or by visiting our investor relations website at www.stbankcorp.com. We will be reviewing an earnings supplement slide deck as part of the presentation. You can obtain a copy of those slides on our website under events and presentations, second quarter 2022 earnings conference call. Click on the second quarter 2022 earnings supplement link. With me today are Chris McCommish, S&T's CEO, and Dave Antolik, S&T's president. I'd now like to turn the program over to Chris.

Chris. Mark, thank you, and good afternoon, everybody, and welcome to our second quarter call. Really appreciate you being with us and look forward to your questions afterwards. I'm starting on page three, and before we get into the numbers, I do want to take just a moment of personal privilege as I've essentially been here for one year with the company, while our company at the same time is celebrating our own 120-year anniversary. It's obviously been a year of significant change, both internally and externally. And for that, I need to recognize our employees. Through pandemics and hybrid work, inflation challenges, and a new CEO, they stayed focused and committed to our customers. This is evidenced by yet another form of external recognition. Following on the heels of our J.D. Power Award for Retail Customer Experience that we received last in april we announced this week a best in in state bank for the state of pennsylvania award from fors we certainly don't take this type of recognition lightly as it's a clear proof point around the customer trust that's embedded in this company from our customers both our customers as well as the markets we serve and for me it's the best reflection of the talent level of our team and it's the position you want to be in as a banker during more uncertain economic times. As you may recall from our previous discussions, my primary focus has been to strengthen our foundation built on S&T's distinctive customer trust and improve the core of the organization, including safety and soundness, while positioning our company for further growth and impact in the marketplace. I've been clear throughout that our financial performance and results will be driven through a focus on building and enhancing employee engagement, and the engagement and commitment of our teams to deliver for customers, and that will rise and fall on the effectiveness and the work that we are doing as leaders. We've made a conscious effort here at S&T over the past 12 months to create a blend of new talent into the organization, as well as providing promotional and expanded leadership opportunities for talented leaders already here at S&T. It's actually reflected by the three of us on this call. Between Dave and Mark, we've got more than 60 years of S&T experience and me being here new for a year. But taking that combination of outside industry expertise with deep S&T knowledge and knowledge of the markets that we serve and how we win and who we are as a company is creating a great recipe for success as we move forward today. It's also reflected in some of the new roles that we have in the company, including both of our heads of commercial and consumer banking, our head of marketing and customer experience, our chief human resources officer, as well as the top two individuals both running our credit risk management organization and our risk management organizations. This blend of talented individuals committed to S&T and the customers we serve, really I can't be more excited about the future and the team that we've built as well as the progress we're seeing today. In that light, here's a couple of highlights from the quarter's results. $29 million of net income. meaningful year-over-year and quarter-over-quarter increases in PPNR driven through significant margin expansion. Additionally, we've seen further declines in our NPA levels and improvement in credit quality with NPAs down 35% linked quarter. This has been a significant priority for our company and will continue to be so. We also saw solid consumer loan growth in the quarter and I'm particularly pleased by this. I talked about this last quarter, but this is the result of a strategic focus of our organization to deepen customer relationships. These are customers that have meaningful relationships with us, and these lending opportunities represent expansion of those relationships. As we move forward, our foundation building remains the focus. Enhancing capabilities to deliver for customers with an eye towards safety and soundness all underpinned and led by a great team. As I said in the beginning, I'm honored to be here, and I'm excited about who we are, our team, and our ability to deliver. I look forward to your questions, and again, I'll turn it over to Dave and Mark for more details.