S&T Bancorp, Inc. (STBA) Earnings Call Transcript & Summary

Good morning, and thank you for joining today's meeting. I apologize for the slight delay. Before beginning the meeting, 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 meeting. A copy of the proxy materials can be obtained by clicking on the link on your screens or by visiting our investor relations website at www.stbancorp.com. I would now like to introduce Christine Toretti, S&T's Chairperson.

Thank you, Mark. Good morning, and welcome to S&T Bancorp's Annual Meeting of Shareholders. I am Christine Toretti. And as Chairman of the corporation, I will serve as Chairman of this annual meeting. I have asked our Corporate Secretary, Ernie Draganza, to serve as Secretary for this morning's meeting. With me are Todd Brice, Chief Executive Officer of S&T Bank; Mark Kochvar, our Chief Financial Officer; and Ernie Draganza, Chief Risk Officer. Also in attendance today is Mike Haver of E&Y, our independent accountant. The purpose of this annual meeting is to act upon the following matters: to elect 15 directors to serve a 1-year term until the next Annual Meeting of Shareholders and until their respective successors are elected and qualified. The nominees are: Lewis W. Adkins, Jr.; David G. Antolik; Peter R. Barsz; Todd D. Brice; Christina A. Cassotis; Michael J. Donnelly; James T. Gibson; Jeffrey D. Grube; William J. Hieb; Jerry D. Hostetter; Robert E. Kane; James C. Miller; Frank J. Palermo, Jr.; Christine J. Toretti and Steven J. Weingarten. We also are to ratify the selection of Ernst & Young LLP as S&T's independent registered public accounting firm for the fiscal year 2020; to approve a nonbinding advisory basis the compensation of S&T's named executive officers; and to transact such other business as may properly come before the meeting or any adjournment thereof. In the essence of time during these unusual circumstances, this will be an abbreviated meeting. Additional financial information about 2019 and the first quarter of 2020 results can be found at our Investor Relations website at www.stbankcorp.com. Our CEO, Todd Brice, would like to make some brief remarks at this time. Todd?

Well, thank you, Christine, and thanks to all of you for joining our Annual Shareholders' Meeting today. We know that these are unprecedented times, and we hope that you and your families are staying safe and healthy. I'm sorry. We're getting a little bit of feedback right now. But at S&T Bank, we're continuing to navigate through this pandemic with our communities and our nation. As Christine mentioned, we are going to stick to the business portion of this meeting in lieu of our normal practice of presenting prior year results. I would, however, like to make a few comments about the actions we've taken to date in response to the COVID-19 and the impact on the economy and our operations. From the beginning, our focus has been to ensure the safety of our employees and our customers. We immediately took the necessary steps: drive-through only at our retail outlets; enhance cleaning measures; expanded call center hours and mobile banking channels, all while maintaining the service standards that our customers expect. We then focused on providing assistance to our loyal clients, who have been most directly impacted by the COVID-19 fallout, including hardship assistance programs, which offer modified payment terms and extensions. In addition, we quickly took action when the small business administration announced the Paycheck Protection Program and approved 2,953 loans at a combined $547 million. We are thankful that we're able to assist our clients through these difficult times and look forward to getting businesses reopened in our markets. Pennsylvania has begun to ease restrictions on businesses. And as of Friday, 13 of the counties in which we operate are now in the yellow phase, in addition to a number of other counties in Pennsylvania as well. And in Ohio, the majority of businesses are open, and 100% of the businesses will be open on May 26. Throughout the crisis, S&T Bank has looked for ways to support our communities. We donated $75,000 to local food banks and $10,000 to local hospitals. And our 108-year-old company has been through good times and bad times, and our focus has always been and will continue to be our customers and the communities where we live and work. I'm proud to share that our culture and passion to serve was recently recognized by J.D. Power, where the S&T Bank was named as the Best in Customer Satisfaction with Retail Banking in the Mid-Atlantic region. It's humbling to be recognized for the great service that we aspire to deliver every day. And lastly, to our shareholders, thank you for your continued investment in S&T Bank. We will continue to strive to protect and grow your investment. Thank you.

Thank you, Todd. We will conduct this meeting in accordance with the rules of conduct, which can be accessed by clicking on the Rules of Conduct link on your screen. Shareholders may submit questions during this meeting. We will attempt to accommodate as many questions from you within the prescribed time limits as possible. Only shareholders who have logged into the meeting with their control numbers will have the opportunity to ask questions. Questions from shareholders should pertain to the proposals being considered. The polls are now open. If you have already submitted your signed proxy card to the company, there is no need to vote at this time, unless you wish to change the vote contained in your previously submitted proxy. We will now address any questions received on the proposal. Mr. Kochvar has been monitoring the meeting website portal for questions. Mark, have we received any questions on the proposals?

Christine, there are no questions.

We will now move on with the meeting. It is 10:13, and I declare that the polls are now closed. The judge of elections has delivered the preliminary report. I have been informed that a majority of the shares of the corporation are represented by proxy. The Board of Directors has appointed Timothy P. McKee to be judge of elections and to tabulate the shareholder votes. Ernie, as Secretary, will you please read the results of the judge of elections?

All shareholder proposals have received the required number of votes to be approved. A Form 8-K will be filed with the SEC detailing the final voting results of each such proposal.

More than the required number of votes have been cast to approve each proposal. Therefore, the 15 nominees are hereby declared elected directors to serve a 1-year term until the next Annual Meeting of Shareholders and until their respective successors are elected and qualified. The selection of Ernst & Young LLP as S&T's independent registered public accounting firm for 2020 has been ratified, and a nonbinding advisory proposal on the compensation of S&T's named executive officers has been approved. Is there any other business to come before the meeting? Before we adjourn, we want to thank you for attending and hope your interest and support of S&T. This is your bank, and we hope you will refer family and friends to S&T. Seeing that there is no other formal business to come before the meeting, it is hereby adjourned. Thank you.