S&T Bancorp, Inc.

Welcome to the SMT Bancorp second quarter 2024 conference call. After the management's remarks, there will be a question and answer session. Now, I would like to turn the call over to Chief Financial Officer Mark Kochvar. Please go ahead.

Thank you, and good afternoon, everyone. Thanks for participating in today's earnings call. Before beginning the presentation, I want to take time to refer you to our statement about forward-looking statements and risk factors. 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 2024 earnings release, as well as this 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 would now like to turn the program over to Chris.

Chris? Mark, thank you, and good afternoon, everybody, and welcome all of you to the call. We appreciate the analysts being here with us, and we look forward to your questions. I'm going to begin my remarks on page three, but before I do, I do want to take a minute to thank our employees, shareholders, and others listening and on the call. To our leadership team and our employees, your commitment and engagement is what drives these financial results that we're going to discuss. These results are yours, and you should be very proud. Our performance this quarter reflects our continued progress centered on S&T's People Forward purpose, and more specifically, how our focus on this purpose is delivering for our customers, shareholders, and the communities we serve. As we've discussed before on this call, this purpose defines who we are, and our values define how we do our work. All of this is connected to the four core drivers of our performance, the health and growth of our customer deposit franchise, delivering consistent, solid credit quality, best-in-class core profitability, all of this underpinned by the talent and engagement level of our teams. This is where we are focused, and this focus is what's delivering for our shareholders. To sum it up, we made strong progress on all four of our performance drivers as they've shown great progress and they've produced the results that you will see in this deck. Turning to the quarter, our $34 million in net income equated to $0.89 per share, up $0.08 from Q1. Our return metrics were excellent with a 15% ROTCE, while our PPNR remained strong at 1.82, and the efficiency ratio was below 55 at 54.92. Our NIM and NEE both improved versus Q1, as our net interest margin was at 385, which is very strong. This is a direct result of very solid customer deposit growth and mixed shift in our deposits, which led to a moderating cost of funds. Mark will provide more detail here. Our credit quality remains stable to improving, and Dave is going to dive more deeply here in a few minutes. He will also have additional detail provided on our multifamily and office CRE exposure, and will also touch on the pickup we're seeing in our loan pipelines. Moving to page four, while loan growth was in line with previous guidance, while we saw meaningful deposit growth. On the deposit side, customer deposit growth was more than $150 million in the quarter. This was after $75 million of growth in Q1 and produced over 8.5% annualized growth. While mixed shift continued $17 million in DBA balance growth, resulted in strong performance, and overall DDA balances remain strong at 29% of total balances. The customer deposit growth allowed us to reduce wholesale deposits and borrowings by $85 million, which obviously has a positive impact on our net interest margin. I'm going to stop right there and turn it over to Dave, and he can spend a little bit more time on the loan book and credit quality. Then Mark will provide more color on the income statement and capital. I look forward to your questions.