BUSINESS COMBINATIONS On November 30, 2019, we completed our acquisition of DNB Financial Corporation, or DNB, and DNB First National Association, its wholly-owned bank subsidiary, located in Downingtown, Pennsylvania. The acquisition of DNB expanded our Eastern Pennsylvania market by adding 14 banking locations, in an all-stock transaction structured as a merger of DNB with and into S&amp;T, with S&amp;T being the surviving entity. The related systems conversion of DNB into S&amp;T Bank occurred on February 7, 2020. DNB shareholders received, without interest, 1.22 shares of S&amp;T common stock for each share of DNB common stock. The total purchase price was approximately $201.0 million, which included $0.4 million of cash and 5,318,964 S&amp;T common shares at a fair value of $37.72 per share. The fair value of $37.72 per share of S&amp;T common stock was based on the November 30, 2019 closing price. The Merger was accounted for under the acquisition method of accounting and our Consolidated Financial Statements include all DNB Bank transactions beginning on December 1, 2019. Goodwill of $85.8 million at June 30, 2020 was calculated as the excess of the consideration exchanged over the fair value of the identifiable net assets acquired. All of the goodwill was assigned to our Community Banking segment. The goodwill recognized is not deductible for tax purposes. The following table provides a summary of the assets acquired and liabilities assumed from DNB, the preliminary estimates of the fair value adjustments necessary to adjust those acquired assets and assumed liabilities to estimated fair value and the preliminary estimates of the resultant fair values of those assets and liabilities by S&amp;T at November 30, 2019, the acquisition date. Preliminary estimates were adjusted by $1.7 million during the six months ended June 30, 2020. These measurement period adjustments primarily related to $2.4 million reduction in the fair value of loans, $0.3 million reduction in the fair value of borrowings and $0.3 million in deferred income taxes. As information becomes known, additional fair value adjustments to loans, other real estate owned, or OREO, and income taxes may be recognized during the measurement period, which may not extend beyond one year following the acquisition. The following table presents the preliminary fair value adjustments and the measurement period adjustments as of the dates presented: November 30, 2019 June 30, 2020 As Recorded by DNB Preliminary Fair Value Adjustments As Recorded by S&amp;T Measurement Period Adjustments As Recorded by S&amp;T Fair Value of Assets Acquired Cash and cash equivalents $ 64,119 $  $ 64,119 $  $ 64,119 Securities and other investments 108,715 183 108,898  108,898 Loans 917,127 (8,143) 908,984 (2,377) 906,607 Allowance for credit losses (6,487) 6,487    Goodwill 15,525 (15,525)    Premises and equipment 6,782 8,090 14,872  14,872 Accrued interest receivable 4,138  4,138  4,138 Deferred income taxes 2,017 (3,298) (1,281) 311 (970) Core deposits and other intangible assets 269 (269)    Other assets 24,883 (4,278) 20,605 74 20,679 Total Assets Acquired 1,137,088 (16,753) 1,120,335 (1,992) 1,118,343 Fair Value of Liabilities Assumed Deposits 966,263 1,002 967,265  967,265 Borrowings 37,617 (276) 37,341 (257) 37,084 Accrued interest payable and other liabilities 11,157 (3,184) 7,973 (68) 7,905 Total Liabilities Assumed 1,015,037 (2,458) 1,012,579 (325) 1,012,254 Total Net Assets Acquired $ 122,051 $ (14,295) $ 107,756 $ (1,667) $ 106,089 Core Deposit Intangible Asset $ 7,288 $  $ 7,288 Wealth Management Intangible Asset 1,772  1,772 Total Fair Value of Net Assets Acquired and Identified $ 116,816 $ (1,667) $ 115,149 Consideration Paid Cash $ 360 $  $ 360 Common stock 200,631  200,631 Fair Value of Total Consideration $ 200,991 $  $ 200,991 Goodwill $ 84,175 $ 1,667 $ 85,842 Loans acquired in the Merger were recorded at fair value with no carryover of the related ACL from DNB. Determining the fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The preliminary fair value of the loans acquired was estimated at $909.0 million, net of a $10.5 million discount. The discount is accreted to interest income over the remaining contractual life of the loans. During the six month period ended June 30, 2020, the fair value of acquired loans was reduced by an additional $2.5 million as we continue to finalize our evaluation of the loan portfolio. As of June 30, 2020, direct costs related to the DNB merger of $13.7 million were recognized and expensed as incurred. During the six months ended June 30, 2020, we recognized $2.3 million of merger related expenses including $0.2 million in legal and professional fees, $1.4 million in severance payments and stay-bonuses, $0.4 million for data processing and $0.3 million in other expenses. As of December 31, 2019, we recognized $11.4 million of merger related expenses, including $4.7 million for data processing contract termination and system conversion costs, $2.8 million in legal and professional expenses, $3.4 million in severance payments and $0.5 million in other expenses.