Group 1 - S&T Bank announced a donation of over $117,000 to Alex's Lemonade Stand Foundation (ALSF) for 2025, continuing its fundraising efforts that began in 2023 [1] - The bank hosted 72 lemonade stands across Pennsylvania and Ohio from May 31 to June 7, 2025, and has exceeded its fundraising goals for three consecutive years [1][4] - ALSF has raised over $300 million to fund research, support families, and raise awareness for childhood cancer since its inception [3] Group 2 - S&T Bancorp, Inc. is a $9.7 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [5] - The principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [5]

Financial Performance - Net income for the three months ended March 31, 2025, was $33.4 million, an increase of $2.2 million compared to $31.2 million for the same period in 2024, resulting in earnings per share of $0.87 versus $0.81[78]. - Noninterest income decreased by $2.4 million to $10.4 million for the three months ended March 31, 2025, mainly due to $2.3 million of realized losses from repositioning securities[81]. - The provision for income taxes increased by $0.4 million to $8.3 million for the three months ended March 31, 2025, with an effective tax rate of 19.9% compared to 20.2% for the same period in 2024[82]. Interest Income and Expenses - Net interest income remained relatively unchanged at $83.3 million for the three months ended March 31, 2025, compared to $83.5 million for the same period in 2024, with a net interest margin of 3.81% compared to 3.84%[79]. - Total interest and dividend income was $124.8 million for the three months ended March 31, 2025, down from $127.8 million in 2024, with interest expense decreasing from $44.3 million to $41.5 million[74]. - Interest income on an FTE basis decreased by $3.0 million for the three months ended March 31, 2025, primarily due to lower interest rates[88]. Credit Losses and Allowances - The provision for credit losses decreased by $5.6 million to negative $3.0 million for the three months ended March 31, 2025, primarily due to a lower level of allowance for credit losses (ACL) and a decrease in net loan charge-offs[80]. - The allowance for credit losses decreased to $99.0 million at the end of the period, reflecting net recoveries and charge-offs[109]. - Allowance for credit losses (ACL) decreased by $2.5 million to $99.0 million, or 1.26% of total portfolio loans, as of March 31, 2025, compared to 1.31% at December 31, 2024[111]. Asset and Equity Growth - Average shareholders' equity increased to $1.4 billion for the three months ended March 31, 2025, from $1.29 billion in 2024[75]. - Total shareholders' equity increased by $37.7 million to $1.4 billion at March 31, 2025, driven by net income of $33.4 million[100]. - The company reported assets of $9.7 billion as of March 31, 2025, operating primarily in Pennsylvania and Ohio[76]. Loans and Deposits - Average loans increased by $99.1 million for the three months ended March 31, 2025, compared to the same period in 2024[88]. - Customer deposits increased by $134.7 million to $7.7 billion at March 31, 2025, contributing to a reduction in higher-cost borrowings[99]. - Total deposits increased by $109.8 million, or 1.4%, to $7.89 billion at March 31, 2025, with customer deposits rising by $134.7 million, or 1.8%[114]. Borrowings and Liquidity - Total borrowings decreased by $55.0 million, or 22.0%, to $195.3 million at March 31, 2025, primarily due to strong growth in customer deposits[100]. - The company had total uninsured deposits of $2.7 billion, or 33.9% of the total deposit base, at March 31, 2025[115]. - As of March 31, 2025, S&T Bank had $923.1 million in highly liquid assets, resulting in a highly liquid assets to total assets ratio of 9.5%[124]. Capital Ratios - The leverage ratio improved to 12.09% at March 31, 2025, up from 11.98% at December 31, 2024, exceeding the regulatory guideline of 5.00%[125]. - The Common Equity Tier 1 ratio was 14.67% at March 31, 2025, compared to 14.58% at December 31, 2024, also above the regulatory guideline of 6.50%[125]. - The total capital to risk-weighted assets ratio was 16.57% at March 31, 2025, compared to 16.49% at December 31, 2024[126]. Strategic Priorities - Strategic priorities for 2025 include growing the deposit franchise, enhancing core profitability, and improving asset quality and talent engagement[77]. Market Risk and Sensitivity Analysis - The market risk stress test is performed at least annually to identify model assumptions that significantly impact pretax net interest income[133]. - Sensitivity analyses help identify which model assumptions have the greatest impact on pretax net interest income[133]. - EVE analyses indicate an improvement in the rates up scenarios and a decline in the rates down scenarios when comparing March 31, 2025, to December 31, 2024[132].

Core Points - Frank J. Palermo, Jr. will not stand for reelection after 12 years on the board of S&T Bancorp due to reaching the mandatory retirement age [1] - S&T Bancorp expresses gratitude for Palermo's dedicated service and contributions to the company [2][4] Company Overview - S&T Bancorp, Inc. is a $9.7 billion bank holding company headquartered in Indiana, Pennsylvania, trading on NASDAQ under the symbol STBA [4] - The principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [4] Background of Frank J. Palermo, Jr. - Palermo has been the managing shareholder of Palermo, Kissinger & Associates, P.C. since 1983 and is a Certified Public Accountant [3] - He played a key role in forming Gateway Bank of Pennsylvania and served as chairman of the audit committee from 2004 to 2012 [3] - His career spans 43 years in public accounting, contributing significant financial expertise to S&T Bancorp [3][4]

Financial Data and Key Metrics Changes - Earnings per share (EPS) was 87 cents, and net income was $33 million, both exceeding Q4 2024 and Q1 2024, and above consensus estimates [9] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [10][12] - Net interest margin (NIM) expanded by four basis points to 3.81%, with stable net interest income despite two fewer days in the quarter [24] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [12] - Consumer loan growth was $12 million, driven by residential mortgage and home equity, while commercial loan growth was over $81 million, primarily from commercial real estate and construction [16][18] - The allowance for credit losses declined by approximately $2.5 million, ending the quarter at 1.26% of total loans [18] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [14] - Commercial and industrial (C&I) balances declined by $20 million, reflecting reduced automobile floor plan borrowings [17] Company Strategy and Development Direction - The company is focused on organic and inorganic growth, with plans to cross over $10 billion in assets in the second half of the year [35] - There is an emphasis on enhancing the deposit franchise and maintaining top quartile profitability while focusing on asset quality [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to move forward despite market uncertainties, citing strong employee engagement and performance drivers [8] - The company anticipates balanced growth in loans for the remainder of the year, with a focus on monitoring macroeconomic impacts [17][19] Other Important Information - Noninterest income declined by $700,000 primarily due to seasonally lower customer activity [26] - The total capital equity (TCE) ratio increased by 34 basis points, positioning the company well for growth opportunities [29] Q&A Session Summary Question: Thoughts on deals in the current environment and timing on crossing $10 billion - Management indicated ongoing conversations in the marketplace and anticipates crossing $10 billion in the second half of the year, with preparations for regulatory requirements [35][36] Question: Spreads on C&I and CRE - Management noted that spreads in the C&I space remained stable, while some pressure on CRE spreads was observed due to increased competition from larger banks [38][40] Question: Impact of tariffs on borrower base - Management is actively monitoring credit risk related to tariffs and has a structured approach to manage exposure through data gathering and customer conversations [48][50] Question: Reserves and credit trends - Management believes they are close to normalizing reserves, with a slight potential for further decreases depending on economic outlook [52] Question: Loan yields and securities cash flows - New loan yields were reported in the 6.75% range, with expectations for continued support to the margin from securities and swaps [57][59] Question: Hiring expectations for the year - The company is focused on recruiting C&I bankers to support pipeline expansion, with a cautious approach to hiring amid macroeconomic uncertainties [70][72]

Core Insights - S&T Bancorp reported strong Q1 2025 results with earnings per share (EPS) of 87¢, net income of $33 million, and growth in customer deposits and loans, exceeding previous quarters and consensus estimates [2][3][8] - The company experienced a 7.23% annualized growth in customer deposits, marking the seventh consecutive quarter of expansion, primarily driven by consumer activities [4][9] - Loan growth was recorded at 4.89% annualized, with significant contributions from commercial real estate and construction sectors, while C&I loan balances declined by $20 million [5][9] Financial Performance - Net interest margin expanded by 4 basis points to 3.81% in Q1 2025, supported by a decrease in funding costs [2][10] - The allowance for credit losses decreased by approximately $2.5 million, ending the quarter at 1.26% of total loans, indicating improved asset quality [2][9] - The company completed $193.6 million in bond restructurings, projected to increase net interest income by about $5 million in 2025 [5][11] Growth Outlook - Management expressed confidence in mid-single-digit loan growth for the first half of 2025, with potential acceleration to high mid-single digits in the second half as newly hired bankers' pipelines materialize [3][4][9] - The commercial loan pipeline increased by nearly 40% since year-end 2024, indicating strong future growth potential [4][9] - The company anticipates crossing the $10 billion asset threshold organically in the second half of 2025 [5][14] Market Positioning - The company has been recognized for strong financial performance and superior employee engagement by organizations like Forbes and S&P [7][8] - The management team is focused on maintaining top-tier asset quality and profitability while navigating market uncertainties [8][29] - The company is actively recruiting C&I bankers to support pipeline expansion and organic growth [28][29]

Financial Data and Key Metrics Changes - Earnings per share (EPS) was $0.87 and net income was $33 million, both exceeding Q4 2024 and Q1 2024, significantly above consensus estimates [7] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [7][10] - Net interest margin (NIM) expanded by four basis points to 3.81% due to decreased funding costs [17] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [10] - Consumer loan growth was $12 million, driven by residential mortgage and home equity [11] - Commercial loan growth exceeded $81 million, primarily from commercial real estate and construction segments [12] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [11] - The commercial and industrial (C&I) balances declined by $20 million, reflecting reduced borrowings in specific categories [13] Company Strategy and Development Direction - The company is focused on enhancing its deposit franchise, maintaining top quartile profitability, and ensuring high asset quality [6] - There is an emphasis on organic and inorganic growth opportunities, with plans to cross $10 billion in assets in the second half of the year [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties, supported by strong employee engagement and performance recognition [6] - The outlook for loan growth remains positive, with expectations for mid-single-digit growth in the short term [13] Other Important Information - Non-interest income declined by $700,000 due to seasonal factors, but core non-interest income remained stable year-over-year [18] - The total capital ratio increased by 34 basis points, positioning the company well for future growth opportunities [19] Q&A Session Summary Question: Thoughts on deals in the current environment and timing for crossing $10 billion in assets - Management indicated ongoing conversations in the market and anticipated crossing $10 billion in the second half of the year, with preparations for regulatory requirements [27] Question: Insights on spreads in C&I and commercial real estate - Spreads in C&I remained stable, with hesitancy observed among customers due to economic uncertainty, while some regional banks have become more aggressive in commercial real estate [28][29] Question: Impact of tariffs on borrower base and credit trends - Management is actively monitoring the impact of tariffs and has seen stability in criticized and classified loans, indicating a normalization in credit trends [36][37] Question: Expectations for loan yields and securities cash flows - New loan yields were reported in the $6.75 range, with expectations for continued support to the margin from securities and swaps [43][44] Question: Hiring expectations and pipeline growth - The company is focused on recruiting C&I bankers to support pipeline expansion, with a cautious approach to hiring amid macroeconomic uncertainties [53]

Financial Data and Key Metrics Changes - Earnings per share (EPS) was $0.87 and net income was $33 million, both exceeding Q4 2024 and Q1 2024, significantly above consensus estimates [7] - Customer deposit growth was over 7% annualized, marking the seventh consecutive quarter of growth [7][10] - Net interest margin (NIM) expanded by four basis points to 3.81%, with funding costs decreasing [8][17] Business Line Data and Key Metrics Changes - Total loan growth was $93 million or 4.89% annualized, consistent with previous guidance [10] - Consumer loan growth was $12 million, driven by residential mortgage and home equity [11] - Commercial loan growth exceeded $81 million, primarily from commercial real estate and construction segments [12] Market Data and Key Metrics Changes - The majority of deposit growth came from consumer activities, with significant contributions from money market accounts [11] - The commercial and industrial (C&I) balances declined by $20 million, reflecting reduced automobile floor plan borrowings [13] Company Strategy and Development Direction - The company is focused on enhancing its deposit franchise, maintaining top quartile profitability, and ensuring high asset quality [6] - There is an emphasis on organic growth through hiring additional bankers and improving customer engagement [52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate market uncertainties, supported by strong employee engagement and financial performance [6] - The outlook for loan growth remains positive, with expectations for mid-single-digit growth in the short term and high mid-single-digit growth in the latter half of 2025 [13][40] Other Important Information - The allowance for credit losses declined by approximately $2.5 million, ending the quarter at 1.26% of total loans [14] - Non-interest income declined by $700,000 due to seasonally lower customer activity [18] Q&A Session Summary Question: Thoughts on deals in the current environment and timing for crossing $10 billion without a deal - Management indicated ongoing conversations in the market and anticipated crossing $10 billion in the second half of the year, prepared for regulatory requirements [26] Question: Insights on spreads in C&I and CRE - Spreads in the C&I space remained stable, with hesitancy among customers due to economic uncertainty; CRE spreads faced pressure from larger banks becoming more aggressive [27][28] Question: Impact of tariffs on borrower base and credit trends - Management is actively monitoring credit risk related to tariffs and has seen stabilization in criticized and classified loans [36][39] Question: Expectations for loan yields and securities cash flows - New loan yields were around 6.75%, with expectations for continued support to the margin from securities and swaps [42][45] Question: Hiring expectations for the year - The company is focused on recruiting C&I bankers to support pipeline expansion, with a 15% increase in calling officers already achieved [52]

Earnings and Profitability - Earnings per share (EPS) reached $0.87[8] - Net income totaled $33.4 million[8] - Return on Assets (ROA) was 1.41%[8] - Return on Equity (ROE) was 9.67%[8] - Return on Average Tangible Shareholders' Equity (ROTE) was 13.29%[8] - Pre-provision Net Revenue (PPNR) was 1.73%[8] Balance Sheet and Asset Quality - Loan growth amounted to $93.4 million, representing an annualized growth rate of 4.89%[8, 18] - Deposit growth reached $109.8 million, with an annualized growth rate of 5.72%[8] - The company reduced borrowings by $55.0 million[18] - The company reduced brokered deposits by $24.9 million[18] - ACL was 1.26%[8] - Nonperforming Assets (NPAs) stood at 0.29% of total portfolio loans plus OREO[8, 26] Net Interest Income and Noninterest Income - Net Interest Margin (NIM) increased by 4 basis points to 3.81%[8, 11, 32] - The company repositioned $193.6 million of securities over the past four quarters, expected to positively impact net interest income by $5.0 million in 2025[37] - Noninterest income totaled $10.4 million[34]

Core Insights - S&T Bancorp reported revenue of $93.75 million for Q1 2025, a year-over-year decline of 2.7% and a surprise of -2.95% compared to the Zacks Consensus Estimate of $96.6 million [1] - The EPS for the quarter was $0.87, an increase from $0.81 a year ago, with a surprise of +17.57% over the consensus estimate of $0.74 [1] Performance Metrics - The efficiency ratio (FTE) was reported at 57%, slightly better than the average estimate of 57.5% from two analysts [4] - The net interest margin (FTE) (non-GAAP) was 3.8%, exceeding the average estimate of 3.7% from two analysts [4] - Average interest-earning assets totaled $8.90 billion, below the average estimate of $8.97 billion from two analysts [4] - Total noninterest income was $10.43 million, significantly lower than the estimated $13.75 million from two analysts [4] Stock Performance - S&T Bancorp shares returned -3.9% over the past month, outperforming the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - S&T Bancorp reported quarterly earnings of $0.87 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing an increase from $0.81 per share a year ago, resulting in an earnings surprise of 17.57% [1] - The company posted revenues of $93.75 million for the quarter ended March 2025, which was 2.95% below the Zacks Consensus Estimate and a decrease from $96.31 million year-over-year [2] - S&T Bancorp has surpassed consensus EPS estimates in all four of the last quarters, while it has only topped consensus revenue estimates once in the same period [2] 分组2 - The stock has declined approximately 5.3% since the beginning of the year, compared to a decline of 8.6% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $98.1 million, and for the current fiscal year, it is $3.10 on revenues of $394.8 million [7] - The Zacks Industry Rank for Banks - Northeast is in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]