First Quarter 2020 Todd Brice Chief Executive Officer Dave Antolik President Mark Kochvar Chief Financial Officer MEMBERMEMBER FDIC FDIC
Forward Looking Statements and Risk Factors This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position, and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as “will likely result”, “expect”, “anticipate”, “estimate”, “forecast”, “project”, “intend”, “ believe”, “assume”, “strategy”, “trend”, “plan”, “outlook”, “outcome”, “continue”, “remain”, “potential”, “opportunity”, “believe”, “comfortable”, “current”, “position”, “maintain”, “sustain”, “seek”, “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for loan losses; cyber-security concerns; rapid technological developments and changes; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; changes in accounting policies, practices, or guidance, for example, our adoption of CECL; legislation affecting the financial services industry as a whole, and S&T, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions, including DNB, cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; general economic or business conditions, including the strength of regional economic conditions in our market area; the duration and severity of the corona virus (“COVID-19”) pandemic, both in our principal area of operations and nationally, including the ultimate impact of the pandemic on the economy generally and on our operations; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made. Non-GAAP Financial Measures In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), S&T management uses and this presentation contains or references certain non-GAAP financial measures, such as net interest income on a fully taxable equivalent basis. S&T believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although S&T believes that these non-GAAP financial measures enhance investors’ understanding of S&T’s business and performance, these non- GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the respective Quarterly Reports in Exhibit 99.1 of Form 8-K for S&T Bancorp, Inc. and subsidiaries. MEMBER FDIC 2
Corporate Profile • Headquartered in Indiana, PA • $9.0 billion in assets (as of 03.31.20) • $1.1 billion market cap (as of 03.31.20) • Locations in 5 markets • Stock symbol: STBA MEMBER FDIC 3
STBA Investment Thesis STBA Investment Thesis The Right Size • Above peer performance • Big enough to: • Demonstrated expense • Provide full complement of discipline and efficiency products and services • Organic growth • Access technology • Strategic and effective mergers • Access capital markets and expansion • Attract talent • Exposure to five regional • Expand - mergers and markets acquisitions/de novo • Small enough to: • Stay close to our customers • Understand our markets • Be responsive MEMBER FDIC 4
Strategic Goals • Remain a high performing, independent, regional community bank • Follow a disciplined approach focused on organic growth • Continue to enhance our market-based growth platform focused on the unique opportunities in our 5 distinct markets • Continue to improve the effectiveness and efficiency of our lines of business • Build on the S&T brand strength, drive demand, and enhance our digital capabilities • Pursue and integrate M&A opportunities that align with our strategic objectives MEMBER FDIC 5
COVID-19 We are committed to helping our employees, customers, and communities during these unprecedented and challenging times: Employees Consumers Businesses Communities • Working from home • Needs-based loan • Needs-based loan • $75,000 donation to • Rotating schedules payment deferrals payment deferrals local food banks • Split ops staff between multiple facilities • Extended solution • SBA PPP lending • $10,000 donation to center hours • Bonus pay for those • Extended solution local hospital working in offices • Encouraged use of center hours • Paid child care for online/mobile school closures solutions • Encouraged use of • Drive-up only online/mobile • Rigorous sanitation solutions • Suspended all travel • Financial wellness MEMBER FDIC 6
Performance Return on Average Assets Return on Average Equity 1.8% 1.6% 1.50% 1.45%(3) 15.0% 1.4% (2) 1.22 Peer(1) 11.60% (3) 12.5% (2) 10.92% (1) 1.2% 1.08% 9.90% Peer 8.67% 1.0% 10.0% 0.8% (5) 1.03% 1.32% 0.70% 7.5% 5.13%(5) 0.6% 9.98% 5.0% 8.37% 0.4% 0.61% 4.47% 0.2% 2.5% 0.0% 0.0% (6) (6) 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 Return on Average Tangible Equity(4) 20.0% 17.14% 15.76%(3) 15.08%(2) 13.71% 15.0% Peer(1) 10.0% 7.79%(5) 14.41% 12.77% 5.0% 6.82% 0.0% (6) 2016 2017 2018 2019 1Q 2020 (1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 billion of assets through 4Q19. (2)This is a non-GAAP number that adjusts for the effects of a one-time, non-cash re-measurement of $13.4 million of our deferred tax asset in 2017. Refer to appendix for reconciliation of non- GAAP financial measures. (3) This is a non-GAAP number that adjust for $11.4 million of merger related expenses in 2019. Refer to appendix for reconciliation of these non-GAAP financial measures. (4)Refer to appendix for reconciliation of non-GAAP financial measures. MEMBER FDIC 7 (5) This is a non-GAAP number that adjusts for $2.3 million of merger related expenses in 1Q 2020. Refer to appendix for reconciliation of these non-GAAP financial measures (6) Annualized
Expenses Noninterest Expense / Average Assets Efficiency Ratio(3) 3.0% 70% Peer(1) 2.5% 2.17% 2.10% 2.06% 2.09%(2) (4) 2.02% Peer(1) 2.0% 60% 54.06% (4) (2) 52.89% 1.5% 51.77% 50.60% 51.39% 1.0% 50% 0.5% 0.0% 40% (5) 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 (1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 billion of assets through 4Q19. (2) This is a non-GAAP number that adjust for $11.4 million of merger related expenses in 2019. Refer to appendix for reconciliation of these non-GAAP financial measures. (3)Refer to appendix for reconciliation of non-GAAP financial measures. (4) this is a non-GAAP number that adjusts for $2.3 million of merger related expenses in 1Q 2020. Refer to appendix for reconciliation of these non-GAAP financial measures. (5) Annualized MEMBER FDIC 8
Mergers and Expansion Upstate NY Northeast OH Central OH Eastern PA Eastern PA LPO opens in Rochester, NY LPO opens in Independence, OH Branch opens in Hillard, OH LPO Opens in Gr. Berks, PA Acquired DNB Financial Corp. March 24, 2015 August 13, 2018 March 4, 2019 (LPO 2014) November 4, 2019 November 30, 2019 Northeast OH Western PA Northeast OH Upstate NY Branch opens in Akron, OH LPO Opens in Pittsburgh, PA Branch Opens in Cuyahoga Falls, OH LPO Opens in Buffalo, NY Total Assets December 21, 2015 (LPO 2012) October 31, 2016 April 22, 2019 May 29, 2019 $9,005 $9,000 $8,765 1,138 $8,500 $8,000 $7,500 7,627 $7,252 ) $7,060 s n $6,943 o $7,000 i l l i m ( $ $6,500 n i $6,000 $5,500 $5,000 $4,500 2016 2017 2018 2019 1Q 2020 S&TBank DNB First MEMBER FDIC 9
Eastern PA Expansion DNB Financial Timeline • June 5, 2019 - S&T & DNB announced merger • November 30, 2019 - Merger is finalized • February 10, 2020 - All systems are converted and DNB starts operating under the name S&T Bank • DNB adds ◦ 14 Branches ◦ $900 million in Loans ◦ $991 million in Deposits LPO (2019) S&T Bank (Integrity 2015) S&T Bank (DNB Financial 2019) MEMBER FDIC 10
Markets S&T Operates in 5 Regional Markets Totals as of 03.31.20 Portfolio Loans - $7,247 Deposits - $7,058 Western PA Western PA Upstate NY 6% $414 51% $3,659 64% 8% Other 7% $4,510 Central OH $609 $469 Upstate NY 0% $18 7% Central OH 1% $79 Northeast OH 2% $117 $522 Northeast OH Eastern PA 26% 28% $1,865 $2,043 Eastern PA Dollars in millions MEMBER FDIC 11
Deposits Deposit Mix as of 03.31.20 Amount % of Total Money Market $1,968 27% DDA 1,703 24% CD's 1,588 23% Int Bear DDA 963 14% Savings 836 12% Total Deposits $7,058 100% Amount % of Total Personal $4,172 59% Business 2,542 36% Brokered 344 5% Total $7,058 100% MEMBER FDIC 12 Dollars in millions
Loan Mix Data as of March 31, 2020 $ in millions MEMBER FDIC 13
Commercial Loan Modifications In response to COVID-19, we are offering commercial loan customers needs-based payment deferrals and modifications to interest only periods: Total Modified % of Bal Total Modified % of Bal Loan Type Balance Balance Modified Loan Type Balance Balance Modified Other $511 $105 20% Manufacturing $340 $17 5% Multi-Family 433 57 13% Services 258 20 8% Offices 429 97 23% Construction 150 11 7% Health Care 389 23 6% Real Estate Rent/ 130 16 12% Flex/Mixed Use 335 102 31% Floorplans 129 126 98% Manufacturing 254 13 5% Health Care 124 13 11% Hotels 236 218 92% Other 116 35 30% Strip Malls 209 91 44% Transportation 115 30 26% Retail Space 187 63 34% Public Admin 109 2 2% Storage 150 16 11% Wholesale Trade 105 8 8% Dealerships 111 25 23% Retail Trade 96 21 22% Convenience Stores 83 1 1% Education 58 12 22% Restaurants 59 32 55% Utilities 51 — 0% Student Rentals 57 20 35% Total C&I $1,781 $313 18% Total CRE $3,443 $863 25% Resi Secured $409 $47 11% Total $6,030 $1,258 21% Construction $397 $35 9% Total Real Estate $4,249 $944 22% *Reported as Consumer Loans Balances as of March 31, 2020; modification requests as of April 26, 2020. $ in millions MEMBER FDIC 14
Hotels The COVID-19 pandemic is negatively impacting the hotel industry. Our hotel portfolio is comprised of 79 loans and totals $254 million: • 92% of the hotel portfolio is pass-rated. • 84% of the portfolio is with a Marriott, Geography: Hilton, Holiday Inn, or Hyatt chain. State Balance • 90% of the hotel portfolio (58 loans) Pennsylvania $158 have requested modifications. Ohio 60 New York 22 Virginia 8 Total Modified % of Bal West Virginia 5 Loan Type Balance Balance Modified Total $254 CRE $236 $218 92% Construction 18 10 56% Total Hotel Portfolio $254 $228 90% Balances as of March 31, 2020; modification requests as of April 26, 2020. $ in millions MEMBER FDIC 15
Consumer Loan Modifications In response to COVID-19, we are offering mortgage and consumer loan payment deferrals with no negative credit bureau reporting and have paused foreclosures/ repossessions: Total Modified % of Bal Total Avg Mod Avg Loan Type Balance Balance Modified FICO FICO General Program Details • 90-day principal and interest payment deferral Mortgages $593 $30 5% 742 711 • interest does not accrue during the deferral period • maturity is extended 3 months Home equity • 90-day principal and interest payment deferral installment loans 171 10 6% 740 712 • interest does not accrue during the deferral period • maturity is extended 3 months Home equity • 90-day principal deferral lines of credit 373 18 5% 752 741 Consumer • 90-day principal and interest payment deferral installment loans 51 2 5% 743 706 • interest does not accrue during the deferral period • maturity is extended 3 months Unsecured • Not eligible for payment deferrals lines of credit 29 — 0% 749 n/a Total $1,217 $60 5% 745 725 Balances as of March 31, 2020; approved modifications requests as of April 27, 2020. $ in millions MEMBER FDIC 16
SBA PPP We dedicated substantial resources to the SBA PPP and approved over $547 million: Total Number of Average Loan Size Balance Loans Balance Total $547,974 2,959 $185 Data as of May 5, 2020. $ in thousands MEMBER FDIC 17
Line Utilization We have experienced limited increases in line usage since February 2020: Data as of April 24, 2020 $ in millions MEMBER FDIC 18
Asset Quality Nonperforming Loans / Total Loans Net Charge Offs / Average Loans 1.25% 0.70% 0.63% 1.02% 0.60% 1.00% 0.76% 0.77% 0.76% 0.50% 0.75% Peer(1) 0.40% 0.30% 0.25% 0.50% 0.42% 0.22% 0.18% 0.18% 0.20% Peer(1) 0.25% 0.10% 0.00% 0.00% (2) 2016 2017 2018 2019 1Q 2020 2016 2017 2018 2019 1Q 2020 (1) BHCPR Peer Group 2: Bank Holding Companies with $3-10 billion of assets through 4Q19. (2) Annualized MEMBER FDIC 19
Allowance for Credit Losses (ACL) Our allowance for credit losses increased $34.7 million, or 47 bps, since last quarter, due to the adoption of CECL and the uncertainty of the COVID-19 pandemic: Does not include unfunded commitment reserve. $ in millions MEMBER FDIC 20
Low Interest Rate Environment We are asset sensitive and expect NIM compression in a low rate environment: Loans and Securities LIBOR Fixed Floating Rate Rate We benefit from LIBOR's delayed decrease, as we have more LIBOR-based assets than LIBOR-based LIBOR-based assets $2,671 LIBOR-based liabilities 357 ARM / LIBOR Gap $2,314 Future Reset Deposits and Borrowings Funding Repricing Opportunities Fixed Floating We expect favorable repricing on the following funding throughout the next twelve months: Rate Rate/Short Wholesale Liabilities Funding type Balance Rate Non- CD maturities $1,315 1.75% Interest Non-Maturity Intro MMIA rate expirations 187 2.34% Bearing Variable Long-term wholesale funding 70 2.43% DDA Total $1,572 1.85% Deposits Data as of March 31, 2020 $ in millions MEMBER FDIC 21
Capital We are well-capitalized and have sufficient excess capital: Ratio Well Cap Excess % Capital $ Excess $ Leverage Ratio 10.03% 5.00% 5.03% $844 $423 Common Equity Tier 1 Ratio 10.93% 6.50% 4.43% 815 330 Tier 1 Capital Ratio 11.32% 8.00% 3.32% 844 247 Total Capital Ratio 12.73% 10.00% 2.73% 949 203 TCE / TA 9.21% 794 Key points: • We are taking a prudent approach to capital management, given economic uncertainty. • Our internally-run capital stress test results demonstrate that we have adequate capital cushions. • We intend to utilize the five-year CECL transition for regulatory capital purposes. Data as of March 31, 2020 MEMBER FDIC 22 $ in millions
Liquidity We have access to over $3.5 billion of liquidity from multiple sources: Liquidity Source Availability FHLB $2,455 Federal Reserve 610 Unpledged securities 498 Fed Funds Lines 130 Total $3,693 We have established access to the Federal Reserve’s PPP Lending Facility. Loans and deposits have grown since quarter end: Loans: Increased $482 million, or 6.7% Due to funding PPP loans. Loan volume remains soft, prepayments have slowed. Deposits: Increased $622 million, or 8.8%. Due to funding PPP loans and over $65 million of economic impact payments. Limited outflows due to recent rate reductions. Data as of April 24, 2020 $ in millions MEMBER FDIC 23
Senior Management Name Title Years in Banking Years with S&T Todd D. Brice CEO 34 34 David G. Antolik President 31 29 Mark Kochvar Chief Financial Officer 33 27 Ernest J. Draganza Chief Risk Officer 32 27 David P. Ruddock Chief Operating Officer 34 34 Rebecca A. Stapleton Chief Banking Officer 31 31 MEMBER FDIC 24
Valuation Stock Performance Total Annualized Shareholder Return Includes reinvested dividends (Data as of 03.31.20) 1 YR 3 YR 5 YR 10 YR STBA (28.70)% (5.23)% 1.82% 5.57% S&P 600 Bank (25.81)% (8.72)% 2.23% 7.06% NASDAQ Bank (28.61)% (11.16)% 0.35% 4.97% S&P 500 (6.93)% 5.09 % 6.71% 10.51% Source: Bloomberg Institutional Ownership 61.78% Insider Ownership 2.00% Source: NASDAQ MEMBER FDIC 25
Performance Performance Summary 2019 2017 1Q 2020 2019 Excludes 2018 2017 Excludes DTA(3) 2016 Merger Exp(2) Net Income (in thousands) $13,231 $98,234 $107,478 $105,334 $72,968 $86,401 $71,392 Diluted Earnings per Share $0.34 $2.82 $3.09 $3.01 $2.09 $2.47 $2.05 Dividends Declared per Share $0.28 $1.09 $0.99 $0.82 $0.77 Total Assets (in millions) $9,005 $8,765 $7,252 $7,060 $6,943 Total Loans (in millions) $7,254 $7,142 $5,949 $5,766 $5,615 Total Deposits (in millions) $7,058 $7,037 $5,674 $5,428 $5,272 Return on Average Assets(4) 0.61% 1.32% 1.45% 1.50% 1.03% 1.22% 1.08% Return on Average Equity(4) 4.47% 9.98% 10.92% 11.60% 8.37% 9.90% 8.67% Return on Tangible Equity(1)(4) 6.82% 14.41% 15.76% 17.14% 12.77% 15.08% 13.71% Net Interest Margin (FTE)(1)(4) 3.53% 3.64% 3.64% 3.56% 3.47% Nonperforming Assets/Loans+OREO 1.06% 0.81% 0.83% 0.42% 0.77% Allowance for Credit Losses/Total Portfolio 1.34% 0.87% 1.03% 0.98% 0.94% Loans Net Loan Charge-offs/Average Loans(4) 0.63% 0.22% 0.18% 0.18% 0.25% Risk Based Capital-Total 12.73% 13.22% 13.21% 12.55% 11.86% Tangible Shareholder Equity/Tangible Assets(1) 9.21% 9.68% 9.28% 8.72% 8.23% (1) Refer to appendix for reconciliation of non-GAAP financial measures. (2These are non-GAAP numbers that adjust for $11.4 million of merger related expenses in 2019. Refer to appendix for reconciliation of these non-GAAP financial measures. (3)These are non-GAAP numbers that adjust for the effects of a one-time, non-cash re-measurement of $13.4 million of our deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures. (4) Quarterly metrics on an annualized basis. MEMBER FDIC 26
Financial Data Income Statement Balance Sheet 2017 1Q 2020 2019 2018 2017 Excludes DTA(1) 2016 1Q 2020 2019 2018 2017 2016 Net Interest Income $70,036 $246,791 $234,438 $225,733 $203,259 Securities $799,532 $784,283 $684,872 $698,291 $693,487 Noninterest Income 12,403 52,558 49,181 55,462 54,635 Interest-bearing Balances 113,505 124,491 82,740 61,965 87,201 Loans, Net 7,157,204 7,080,184 5,888,023 5,709,544 5,562,437 Total Revenue 82,439 299,349 283,619 281,195 257,894 Other 935,255 775,691 596,586 590,455 599,928 Noninterest Expense 44,049 155,766 145,445 147,907 143,232 Total Assets $9,005,496 $8,764,649 $7,252,221 $7,060,255 $6,943,053 Merger Expenses 2,342 11,350 — — — Provision for Credit Losses (2) 20,050 14,873 14,995 13,883 17,965 Deposits $7,057,879 $7,036,576 $5,673,922 $5,427,891 $5,272,377 Net Income Before Taxes 15,998 117,360 123,179 119,405 96,697 Borrowings 594,102 416,352 604,316 683,081 771,164 Taxes 2,767 19,126 17,845 46,437 $33,004 25,305 Other Liabilities 177,264 119,723 38,222 65,252 57,556 Net Income $13,231 $98,234 $105,334 $72,968 $86,401 $71,392 Equity 1,176,251 1,191,998 935,761 884,031 841,956 Diluted Earnings per Share $0.34 $2.82 $3.01 $2.09 $2.47 $2.05 Total Liabilities & Equity $9,005,496 $8,764,649 $7,252,221 $7,060,255 $6,943,053 Dollars in thousands, except per share data (1)These are non-GAAP numbers that adjust for the effects of a one-time, non-cash re-measurement of $13.4 million of our deferred tax asset in 2017. Refer to appendix for reconciliation of non-GAAP financial measures. (2) Upon adoption of CECL on January 1, 2020, provision for credit losses has been modified to also include amounts related to unfunded loan commitments. MEMBER FDIC 27
Financial Data Net Interest Margin Loan Portfolio 1Q 2020 2019 2018 2017 2016 Dollars in thousands 1Q 2020 2019 2018 2017 2016 Commercial Securities - FTE 2.54% 2.64% 2.62% 2.48% 2.41% Commercial Real Estate $3,442,495 $3,416,518 $2,921,832 $2,685,994 $2,498,476 Commercial & Industrial 1,781,402 1,720,833 1,493,416 1,433,266 1,401,035 Loans - FTE 4.64% 4.95% 4.72% 4.32% 4.08% Construction 396,518 375,445 257,197 384,334 455,884 Total Interest-earning Assets - FTE 4.40% 4.71% 4.48% 4.09% 3.87% Total Commercial 5,620,415 5,512,796 4,672,445 4,503,594 4,355,395 Consumer Deposits 1.15% 1.40% 1.01% 0.62% 0.51% Residential Mortgage 988,816 998,585 726,679 698,774 701,982 Home Equity 544,405 538,348 471,562 487,326 482,284 Borrowings 2.06% 2.76% 2.19% 1.27% 0.86% Installment and Other Consumer 79,887 79,033 67,546 67,204 65,852 Total Costing Liabilities 1.22% 1.51% 1.18% 0.72% 0.55% Construction 13,222 8,390 8,416 4,551 5,906 Total Consumer 1,626,330 1,624,356 1,274,203 1,257,855 1,256,024 Total Portfolio Loans 7,246,745 7,137,152 5,946,648 5,761,449 5,611,419 Net Interest Margin – FTE(1) 3.53% 3.64% 3.64% 3.56% 3.47% Allowance for credit losses 96,850 5,256 2,371 4,485 3,793 Purchase Accounting NIM – FTE(1) 3.47% 3.62% 3.62% 3.53% 3.41% Total Loans $7,149,895 $7,142,408 $5,949,019 $5,765,934 $5,615,212 Asset Quality Capital Dollars in thousands 1Q 2020 2019 2018 2017 2016 1Q 2020 2019 2018 2017 2016 Total Nonperforming Loans $73,797 $54,057 $46,073 $23,938 $42,635 Tier 1 Leverage 10.03% 10.29% 10.05% 9.17% 8.98% Nonperforming Loans/ Total Loans 1.02% 0.76% 0.77% 0.42% 0.76% Common Tier 1 – Risk- Based Capital 10.93% 11.43% 11.38% 10.71% 10.04% Nonperforming Assets/ Total Loans + OREO 1.06% 0.81% 0.83% 0.42% 0.77% Net Charge-offs (Recoveries)(2)/Average Tier 1 – Risk-Based Capital 11.32% 11.84% 11.72% 11.06% 10.39% Loans 0.63% 0.22% 0.18% 0.18% 0.25% Allowance for Credit Losses/Total Portfolio Total – Risk-Based Capital 12.73% 13.22% 13.21% 12.55% 11.86% Loans 1.34% 0.87% 1.03% 0.98% 0.94% Allowance for Credit Losses/Nonperforming Tangible Common Equity/ Loans 131% 115% 132% 236% 124% Tangible Assets(1) 9.21% 9.68% 9.28% 8.72% 8.23% (1) Refer to appendix for reconciliation of non-GAAP financial measures. MEMBER FDIC 28 (2) Quarterly metrics on an annualized basis
Appendix APPENDIX – Non-GAAP Measures Tangible Shareholders' Equity/Tangible Assets (Non-GAAP) Net Interest Margin Rate (FTE) (Non-GAAP) 1Q 2020 2019 2018 2017 2016 1Q 2020 2019 2018 2017 2016 Total Shareholders’ Equity (GAAP basis) $1,176,251 $1,191,998 $935,761 $884,031 $841,956 Total interest income $87,589 $320,484 $289,826 $260,642 $227,774 Less: goodwill and other intangible assets (384,557) (382,540) (290,047) (295,347) (296,580) Less: interest expense (17,553) (73,693) (55,388) (34,909) (24,515) Tax effect of other intangible assets 2,160 2,293 546 1,287 1,719 Net interest income per consolidated 70,036 246,791 234,438 225,733 203,259 Tangible shareholders' equity (non-GAAP) 793,854 811,751 646,260 589,971 547,095 statements of net income Plus: taxable equivalent adjustment 849 3,757 3,804 7,493 7,043 Total assets (GAAP basis) 9,005,496 8,764,649 7,252,221 7,060,255 6,943,053 Net interest income (FTE) (non-GAAP) 70,885 250,548 238,242 233,226 210,302 Less: goodwill and other intangible assets (384,557) (382,540) (290,047) (295,347) (296,580) Purchase accounting adjustment (1,125) (1,048) (1,242) (1,839) (2,952) Tax effect of other intangible assets 2,160 2,293 546 1,287 1,719 Purchase accounting net interest income Tangible assets (non-GAAP) $8,623,100 $8,384,402 $6,962,720 $6,766,195 $6,648,192 (FTE) (non-GAAP) $69,760 $249,500 $237,000 $231,387 $207,350 Tangible shareholders' equity/tangible assets (non-GAAP) 9.21% 9.68% 9.28% 8.72% 8.23% Average interest earning assets $8,079,944 $6,885,372 $6,549,679 $6,549,821 $6,067,151 Net Interest Margin 3.48% 3.58% 3.58% 3.45% 3.35% Adjustment to FTE Basis 4.00% 0.06% 0.06% 0.11% 0.12% Net Interest Margin (FTE) (non-GAAP) 3.53% 3.64% 3.64% 3.56% 3.47% Return on Average Tangible Shareholders' Equity (Non-GAAP) Purchase accounting adjustment -6.00% -0.02% -0.02% -0.03% -0.06% 1Q 2020 2019 2018 2017 2016 Purchase accounting NIM – FTE (non-GAAP) 3.47% 3.62% 3.62% 3.53% 3.41% Net Income (1) $53,216 $98,234 $105,334 $72,968 $71,392 Efficiency Ratio (YTD)(Non-GAAP) Plus: amortization of intangibles (1) 2,542 836 861 1,233 1,615 Tax effect of amortization of intangibles (1) (534) (176) (181) (432) (565) Efficiency ratio (YTD)(non-GAAP) 1Q 2020 2019 2018 2017 2016 Net income before amortization of intangibles (1) 55,224 98,894 106,014 73,769 72,442 Noninterest expense $46,391 $167,116 145,445 $147,907 $143,232 Total average shareholders’ equity (GAAP Basis) 1,189,575 983,908 908,355 872,130 823,607 Less: merger related expenses (2,342) (11,350) — — — Less: average goodwill and other intangible assets (382,025) (298,228) (290,380) (295,937) (297,377) Noninterest income excluding nonrecurring items $44,049 $155,766 $145,445 $147,907 $143,232 Tax effect of other intangible assets 2,235 639 614 1,493 1,992 Tangible average shareholders' equity (non-GAAP) $809,785 $686,319 $618,589 $577,686 $528,222 Net interest income 7,036 246,791 234,438 225,733 203,259 Plus: taxable equivalent adjustment 849 3,757 3,804 7,493 7,043 Return on average tangible shareholders' equity (non-GAAP) 6.82% 14.41% 17.14% 12.77% 13.71% Net interest income (FTE) (non-GAAP) 70,885 250,548 238,242 233,226 210,302 Noninterest income 12,403 52,558 49,181 55,462 54,635 Less: securities (gains) losses, net 26 — (3,000) — Net interest income (FTE) (non-GAAP) plus noninterest income $83,288 $303,132 $287,423 $285,688 $264,937 Efficiency ratio (YTD)(non-GAAP) 52.89% 51.39% 50.60% 51.77% 54.06% (1) Quarterly metrics on an annualized basis MEMBER FDIC 29
Appendix APPENDIX – Non-GAAP Measures Return on Average Equity Return on Tangible Shareholders' Equity Return on Average Equity Return on Tangible Shareholders' Equity 1Q 2020 1Q 2020 2019 2019 Net Income $13,231 Net Income (1) $53,215 Net Income $98,234 Net Income $98,234 Adjust for merger related expenses 2,342 Adjust for merger related expenses (1) 9,419 Adjust for merger related expenses 11,350 Adjust for merger related expenses 11,350 Tax effect of merger related expenses (405) Tax effect of merger related expenses (1) (1,629) Tax effect of merger related expenses (2,106) Tax effect of merger related expenses (2,106) Adjusted net income (non-GAAP) 15,168 Adjusted net income (non-GAAP) (1) 61,005 Adjusted net income (non-GAAP) 107,478 Adjusted net income (non-GAAP) 107,478 Average shareholders' equity 1,189,575 Plus: amortization of intangibles (1) 2,542 Average shareholders' equity 983,908 Plus: amortization of intangibles 836 Average shareholders' equity 1,189,575 Tax effect of amortization of intangibles (1) (440) Average shareholders' equity 983,908 Tax effect of amortization of intangibles (176) Adjusted net income before amortization of Adjusted net income before amortization of Return on average equity (non-GAAP) 5.13 % intangibles 63,107 Return on average equity (non-GAAP) 10.92 % intangibles 108,138 Average total shareholders' equity 1,189,575 Average total shareholders' equity 983,908 Less: average goodwill and other intangible Less: average goodwill and other intangible assets (382,025) assets (298,228) Return on Average Assets Tax effect of average goodwill and other Return on Average Assets Tax effect of average goodwill and other intangible assets 2,235 intangible assets 639 1Q 2020 Average tangible equity (non-GAAP) $809,785 2019 Average tangible equity (non-GAAP) $686,319 Net Income $13,231 Return on average tangible equity (non-GAAP) 7.79 % Net Income $98,234 Return on average tangible equity (non-GAAP) 15.76 % Adjust for merger related expenses 2,342 Adjust for merger related expenses 11,350 Tax effect of merger related expenses (405) Net Income and Diluted Earnings Per Share Tax effect of merger related expenses (2,106) Net Income and Diluted Earnings Per Share Adjusted net income (non-GAAP) 15,168 1Q 2020 Adjusted net income (non-GAAP) 107,478 2019 Average assets $8,767,326 Net Income $13,231 Average assets $7,435,536 Net Income $98,234 Average assets (non-GAAP) 8,767,326 Adjust for merger related expenses 2,342 Average assets (non-GAAP) 7,435,536 Adjust for merger related expenses 11,350 Return on average assets (non-GAAP) 0.70 % Tax effect of merger related expenses (405) Return on average assets (non-GAAP) 1.45 % Tax effect of merger related expenses (2,106) Adjusted net income (non-GAAP) 15,168 Adjusted net income (non-GAAP) 107,478 Noninterest expense (non-GAAP)/ Noninterest expense (non-GAAP)/ Average Assets 1Q 2020 Average shares outstanding - diluted 39,326 Average Assets 2019 Average shares outstanding - diluted 34,679 Noninterest expense (1) $186,584 Diluted earnings per share (non-GAAP) $0.39 Noninterest expense $167,116 Diluted earnings per share (non-GAAP) $3.09 Less: merger related expenses (1) (9,419) Less: merger related expenses (11,350) Noninterest income excluding Noninterest income excluding nonrecurring items (1) $177,165 nonrecurring items $155,766 Average assets $8,767,326 Average assets $7,435,536 2.02% 2.09% (1) Quarterly metrics on an annualized basis MEMBER FDIC 30
Appendix APPENDIX – Non-GAAP Measures Return on Average Equity Return on Tangible Shareholders' Equity 2017 2017 Net Income $72,968 Net Income $72,968 Plus: DTA re-measurement 13,433 Plus: DTA re-measurement 13,433 Adjusted net income (non-GAAP) 86,401 Adjusted net income (non-GAAP) 86,401 Average assets 872,130 Plus: amortization of intangibles 1,233 Plus: DTA re-measurement 589 Tax effect of amortization of intangibles (432) Adjusted net income before amortization of Average assets (non-GAAP) 872,719 intangibles 87,202 Return on average equity (non-GAAP) 9.90% Average total shareholders' equity 872,130 Plus: DTA re-measurement 589 Less: average goodwill and other intangible assets (295,937) Return on Average Assets Tax effect of average goodwill and other intangible assets 1,493 2017 Average tangible equity (non-GAAP) $578,275 Net Income $72,968 Return on average tangible equity (non-GAAP) 15.08% Plus: DTA re-measurement 13,433 Adjusted net income (non-GAAP) 86,401 Net Income and Diluted Earnings Per Share 2017 Average assets $7,060,232 Net Income $72,968 Plus: DTA re-measurement 589 Plus: DTA re-measurement 13,433 Average assets (non-GAAP) 7,060,821 Adjusted net income (non-GAAP) 86,401 Return on average assets (non-GAAP) 1.22% Average shares outstanding - diluted 34,955 Diluted earnings per share (non-GAAP) $2.47 MEMBER FDIC 31
First Quarter 2020 MEMBERMEMBER FDIC FDIC