S&T Bancorp, Inc.

Welcome to the S&T Bancorp third quarter 2024 conference call. After 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.

Great. Thank you, and good afternoon, everyone. And thank you 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 third 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'd now like to turn the call and program over to Chris.

Mark, thank you and good afternoon, everyone. I'm going to begin my comments on page three. I'd like to welcome everybody to the call. I certainly appreciate the analysts being here with us today and we look forward to your questions. I also want to thank our employees, shareholders, and others listening in on the call. To our leadership team and employees, your commitment and engagement is what drives these financial results, and as I've said every quarter, 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 the connection of our purpose to our core drivers of performance. Our drivers of performance are centered on the health and growth of our deposit, customer deposit franchise, consistently solid credit quality, strong core profitability, all of which are underpinned by the talent and engagement level of our teams, which lead to the results we're going to speak to today. To sum it up, we have made strong progress on all of our performance drivers, and in Q3, the continued growth of our deposit franchise and improving asset quality led the way to deliver very solid results for the quarter. Additionally, as you're aware, over the past few years, due to the results we've been able to deliver, we have been able to build a significant amount of capital. Our performance, combined with our strong capital levels, gives us real optimism as we head into the end of 2024 and into 2025. We're excited about our prospects for growth while delivering for our customer shareholders in the communities that we serve. Turning to the quarter, our $33 million in net income equated to 85 cents per share, down slightly from Q3. Our return metrics were again excellent with a 13.5% ROTCE, 1.35% ROA, and while our PPNR remained solid at 1.69%. It is important to note our PPNR was impacted by a little bit more than $2 million of securities losses that we proactively decision to help mitigate impacts of a future declining rate environment. Our net interest income showed growth in Q2, while our net interest margin at 3.82% declined slightly, but remained very strong. Again, this is the direct result of another quarter of very solid customer deposit growth. Mark will provide more details on both our net interest income and our net interest margin in a few minutes. Asset quality continues to improve as we have another quarter of declining slash improving ACL, and Dave is going to dive more deeply here in a few minutes. He's also going to touch on the pickup we are seeing in our loan pipelines and activity. Moving to page four, while those did not grow during the quarter, it's a reflection of lower pipelines from earlier in the year, combined with a higher level of payoffs. On the deposit side, customer deposit growth was more than $100 million in the quarter, producing over 5% growth annualized. While some mixed shifts continued, overall DDA balances remained very strong at 28% of total balances. The customer deposit growth allowed us to reduce wholesale and broker deposits and borrowings by $150 million combined, which will obviously have a positive impact on our future net interest margin. I'm going to stop right there, and I'm going to turn it over to Dave, and he can talk a little bit more about the loan book and credit quality. Then Mark will provide more color on the income statement and capital. Following that, we'll have some questions, and I look forward to answering them.