S&T Bancorp, Inc.

Welcome to the S&T Bank Corp second quarter 2023 conference call. After the management's remarks, there will be a question and answer session. Now I'd like to turn the call over to Chief Financial Officer, Mark Kochvar. Please go ahead.

Great. Thank you. Good afternoon, everyone. Thank you for participating in today's conference call. You can follow along with the slide portion of the presentation by clicking on the page advance button at the bottom of your screen. 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 page two. This 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 2023 earnings release, as well as the earnings supplement slide deck, can be obtained by clicking on the materials button in the lower right section of your screen. This will open up a panel on the right where you can download these items. You can also obtain a copy of these materials by visiting our investor relations website at stbankcorp.com. 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? Great, Mark. Thank you, and good afternoon, everybody. Just for all of you following along, I'm going to begin my remarks on page three and welcome all of you to the call this afternoon. I certainly appreciate the analysts being here with us. and we look forward to your questions. I also want to take a second to thank our shareholders and employees and others listening in on the call. It's our employee commitment and engagement that drives these results, and we're all proud to share them with you and have them a part of this call. Before I get into the numbers, I do want to further emphasize how good I feel about the progress we're making around moving our company forward and what we've defined as our people-forward purpose. This purpose is driving our actions and behaviors and is the cornerstone of our efforts to drive top-tier employee engagement and customer loyalty the keys to us achieving our financial goals. During the quarter, we saw further evidence of this People Forward purpose coming to life as we received from Forbes our second consecutive Best in State award as defined by our customers. Now turning to page three, You'll see on this slide there's a lot that we feel good about in these numbers. For the quarter, we earned 89 cents a share, just under $35 million, and a PPNR that was actually up seven basis points compared to Q1. That improvement, in spite of all of the changes in the interest rate environment, everything is really driven by two factors. We ended up with a quarter at a 422 net interest margin. While that's down 10 basis points compared to Q1, we drove right at $88 million of net interest income. Mark's going to talk more about that on page six, but that is evidence of the revenue generating power of the organization and the work that we did to really manage our balance sheet during this time. There's certainly incredible intensity for deposits in the marketplace. We've taken a very proactive and customer relationship focused to this work, working hard to protect all that we have and grow what we have while at the same time balancing balance sheet growth with maintaining our margins. So a 10 basis point decline on a starting pouring of 432 down to 422. Not all declines should be looked at equally, and we feel very good about what we've been able to work through. The other driver of that PPNR was our expense control. We ended up with an efficiency ratio of 48.2 for the quarter. Again, it speaks to the discipline way in which we're running the business, but those two factors in the environment that we're in, resulting in the earnings is something that we feel good about. We did have net charge offs of about $11 million in the quarter, and Dave's gonna provide more details in that. And again, we're optimistic about the good work that we're doing. certainly feel good about the engagement they have with our teams and the work that we're doing with our customers and we're moving forward. So with that, I'll turn it over to Dave and allow him to spend some time on the balance sheet.