Core Viewpoint - S&T Bancorp (STBA) is experiencing significant selling pressure, with a 9.1% decline over the past four weeks, but is positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2] - STBA's current RSI reading is 28.21, suggesting that the heavy selling may be exhausting, indicating a potential bounce back towards equilibrium in supply and demand [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that STBA's earnings estimates for the current year have increased by 1.1% over the last 30 days, which often correlates with near-term price appreciation [7] - STBA holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8]

Core Viewpoint - S&T Bancorp (STBA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook for the company's earnings and potential stock price movement [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are a significant factor influencing stock prices [2][4]. - An upward trend in earnings estimates has been correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][5]. Recent Performance and Projections - The Zacks Consensus Estimate for S&T Bancorp is projected at $3.41 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - Over the past three months, the consensus estimate for S&T Bancorp has increased by 4.7%, reflecting a positive revision trend [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a "Strong Buy" or "Buy" rating [9][10]. - The upgrade of S&T Bancorp to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Points - S&T Bancorp, Inc. will hold a conference call to discuss its third quarter 2025 earnings on October 23, 2025, at 1:00 p.m. ET [1][8] - The earnings release will occur before the market opens on the same day [2] - The conference call will be conducted by key executives including the CEO, President, and CFO [1] Company Overview - S&T Bancorp, Inc. is a bank holding company with total assets of $9.8 billion, 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]

Core Points - Christine J. Toretti, chair of the board of S&T Bancorp, Inc. and S&T Bank since 2018, will resign effective September 28, 2025, due to her appointment as ambassador to Sweden [1] - Christopher J. McComish has been elected as the new chairman of the board, combining the roles of CEO and chair, while Jeffrey D. Grube has been appointed as the lead independent director [3][4] - The board believes McComish's experience as CEO positions him well to address critical business issues, while Grube's extensive knowledge will aid in his new role [4][5] Company Overview - S&T Bancorp, Inc. is a $9.8 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [7]

Group 1 - S&T Bancorp, Inc. (STBA) has recently experienced a "golden cross" event, indicating a potential bullish breakout as its 50-day simple moving average has crossed above its 200-day simple moving average [1][2] - The golden cross pattern typically suggests a trend reversal, starting from a downtrend, followed by the crossover, and culminating in an upward price movement [3] - STBA has moved 10.6% higher over the last four weeks, and the company currently holds a 3 (Hold) rating on the Zacks Rank, indicating a positive outlook [4] Group 2 - There have been three upward revisions in STBA's earnings estimates over the past 60 days, with no downward revisions, leading to an increase in the Zacks Consensus Estimate for the current quarter [4][5] - The combination of positive earnings outlook and the technical bullish signal suggests that investors may want to monitor STBA for potential gains in the near future [5]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) This section presents S&T Bancorp's unaudited interim financial statements, detailing balance sheets, income, equity, and cash flows, reflecting asset growth and Q2 2025 net income [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$9.81 billion** by June 30, 2025, driven by loan growth, with deposits rising to **$7.92 billion** and shareholders' equity to **$1.45 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$9,810,069** | **$9,657,972** | | Portfolio loans, net | $7,835,854 | $7,641,464 | | Securities available for sale | $1,021,183 | $987,591 | | **Total Liabilities** | **$8,364,576** | **$8,277,678** | | Total Deposits | $7,920,920 | $7,783,117 | | **Total Shareholders' Equity** | **$1,445,493** | **$1,380,294** | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2025 net income decreased to **$31.9 million** from **$34.4 million** in Q2 2024, with diluted EPS at **$0.83**, while six-month net income remained stable Key Income Statement Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $86,572 | $83,594 | $169,895 | $167,071 | | Provision for credit losses | $1,974 | $422 | $(1,066) | $3,049 | | **Net Income** | **$31,900** | **$34,371** | **$65,301** | **$65,610** | | Earnings per share—diluted | $0.83 | $0.89 | $1.69 | $1.70 | | Dividends declared per share | $0.34 | $0.33 | $0.68 | $0.66 | [Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased to **$1.45 billion** by June 30, 2025, driven by net income and positive changes in other comprehensive income, partially offset by dividends - For the six months ended June 30, 2025, total shareholders' equity increased by **$65.2 million**, reflecting strong earnings and favorable movements in other comprehensive income[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash decreased by **$41.7 million** in the first half of 2025, with investing activities using **$208.7 million** primarily for loan growth, funded by financing and operating activities Six Months Ended June 30, Cash Flow Summary (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $56,976 | $91,123 | | Net Cash Used in Investing Activities | $(208,712) | $(70,651) | | Net Cash Provided by (Used in) Financing Activities | $110,034 | $(7,774) | | **Net (decrease) increase in cash** | **$(41,702)** | **$12,698** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on accounting policies, fair value, securities, loans, and commitments, highlighting improved asset quality and reduced unrealized losses - The available-for-sale securities portfolio stood at **$1.02 billion**, with net unrealized losses decreasing to **$46.1 million** from **$71.7 million** at year-end 2024, primarily due to changes in interest rates[32](index=32&type=chunk)[34](index=34&type=chunk) - Total loans grew to **$7.93 billion**. The Allowance for Credit Losses (ACL) decreased to **$98.6 million**, or **1.24%** of total loans, at June 30, 2025, down from **1.31%** at December 31, 2024[36](index=36&type=chunk)[115](index=115&type=chunk) - Commitments to extend credit increased to **$2.53 billion** as of June 30, 2025, from **$2.38 billion** at the end of 2024[65](index=65&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, noting increased net interest income, improved asset quality, and balance sheet expansion driven by deposit growth, despite a decline in net income due to higher noninterest expenses [Executive Overview](index=29&type=section&id=Executive%20Overview) S&T Bancorp, a **$9.8 billion** bank holding company, outlines strategic priorities for 2025 focusing on deposit growth, profitability, asset quality, and talent investment - The company's strategic priorities for 2025 and beyond are focused on growing the deposit franchise, core profitability, asset quality, and talent and engagement[78](index=78&type=chunk) [Earnings Summary](index=29&type=section&id=Earnings%20Summary) Q2 2025 net income was **$31.9 million** (**$0.83** diluted EPS), a decrease from Q2 2024, with return on average assets at **1.32%** and tangible equity at **12.12%** Q2 2025 vs Q2 2024 Profitability | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income | $31.9 million | $34.4 million | | Earnings per share - diluted | $0.83 | $0.89 | | Return on average assets | 1.32% | 1.45% | | Return on average tangible shareholders' equity (non-GAAP) | 12.12% | 15.01% | [Net Interest Income](index=31&type=section&id=Net%20Interest%20Income) Net interest income (FTE) increased by **3.4%** to **$87.2 million** in Q2 2025, with the FTE net interest margin expanding to **3.88%** due to an improved funding mix - Net interest income increased by **$3.0 million** (**3.56%**) in Q2 2025 compared to Q2 2024, primarily due to an improved funding mix and lower interest rates on liabilities[80](index=80&type=chunk) Net Interest Margin (FTE) (non-GAAP) | Period | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Margin (FTE) | 3.88% | 3.85% | [Provision for Credit Losses](index=35&type=section&id=Provision%20for%20Credit%20Losses) The provision for credit losses increased to **$2.0 million** in Q2 2025, driven by higher provisions for unfunded commitments and charge-offs, despite improved asset quality - For the six months ended June 30, 2025, the provision for credit losses was a negative **$1.1 million**, a significant decrease from a **$3.0 million** provision in the same period of 2024, driven by improved asset quality and a **$4.2 million** reduction in specific reserves[81](index=81&type=chunk)[95](index=95&type=chunk) [Noninterest Income](index=35&type=section&id=Noninterest%20Income) Noninterest income remained flat at **$13.5 million** in Q2 2025, primarily due to the absence of security losses, offset by a decline in other noninterest income - The absence of security sale losses in Q2 2025 (**$0** vs **$3.2 million** loss in Q2 2024) was the primary driver for the stable noninterest income, offset by lower other income[97](index=97&type=chunk) [Noninterest Expense](index=35&type=section&id=Noninterest%20Expense) Total noninterest expense increased by **8.4%** to **$58.1 million** in Q2 2025, primarily driven by an **8.3%** rise in salaries and employee benefits Noninterest Expense Comparison (in thousands) | Expense Category | Q2 2025 | Q2 2024 | $ Change | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $32,907 | $30,388 | $2,519 | | Data processing and IT | $4,847 | $4,215 | $632 | | **Total Noninterest Expense** | **$58,114** | **$53,608** | **$4,506** | [Financial Condition](index=36&type=section&id=Financial%20Condition) Total assets grew to **$9.8 billion** by June 30, 2025, driven by loan portfolio expansion and funded by increased customer deposits, while shareholders' equity also rose - Total portfolio loans increased by **$191.5 million** (**2.5%**) in the first half of 2025, with growth in both commercial (**$148.8 million**) and consumer (**$42.7 million**) portfolios[102](index=102&type=chunk)[110](index=110&type=chunk) - Customer deposits grew by **$162.6 million**, while brokered deposits decreased by **$24.8 million**, indicating a strategic focus on core deposit growth[104](index=104&type=chunk)[117](index=117&type=chunk) - The allowance for credit losses (ACL) as a percentage of total loans decreased to **1.24%** from **1.31%** at year-end 2024, reflecting improved asset quality[115](index=115&type=chunk) - Nonaccrual loans decreased by **$6.6 million** to **$21.3 million**, representing just **0.27%** of total portfolio loans, down from **0.36%** at year-end 2024[116](index=116&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with **$3.8 billion** in borrowing capacity exceeding uninsured deposits, and all regulatory capital ratios well above 'well-capitalized' thresholds Capital Ratios as of June 30, 2025 | Ratio (S&T Bancorp, Inc.) | Actual Ratio | Well-Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 leverage | 12.18% | 5.00% | | Common equity tier 1 | 14.59% | 6.50% | | Tier 1 capital | 14.91% | 8.00% | | Total capital | 16.48% | 10.00% | - Total available borrowing capacity was **$3.8 billion**, providing significant coverage for the **$2.7 billion** in uninsured deposits[126](index=126&type=chunk)[118](index=118&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with its asset-sensitive balance sheet modeled to increase pretax net interest income by **0.7%** in a **+100 basis point** rate shock Interest Rate Sensitivity Analysis (June 30, 2025) | Change in Interest Rate (bps) | % Change in Pretax Net Interest Income (1-12 Months) | | :--- | :--- | | +200 | 1.2% | | +100 | 0.7% | | -100 | (1.9)% | | -200 | (4.4)% | [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[137](index=137&type=chunk) - No changes were made to internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[138](index=138&type=chunk) [PART II. OTHER INFORMATION](index=45&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=45&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material legal proceedings - There are no legal proceedings to report[141](index=141&type=chunk) [Item 1A. Risk Factors](index=45&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the last annual report - No material changes to risk factors have occurred since the last annual report[141](index=141&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase common stock in Q2 2025, but the Board extended its **$50 million** share repurchase plan until July 31, 2026 - No shares were repurchased during the second quarter of 2025[142](index=142&type=chunk) - The Board of Directors extended the **$50 million** share repurchase plan until July 31, 2026[142](index=142&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and XBRL data

Financial Data and Key Metrics Changes - The company reported an EPS of $0.83 and net income of $32 million, with a return on assets (ROA) of 1.32% and a pre-provision net revenue (PPNR) of 1.73% [8][19] - Net interest income increased by $3.3 million, or 3.9%, compared to the first quarter, with a net interest margin (NIM) expansion to 3.88%, up seven basis points [14][18] - Total assets exceeded $9.8 billion, driven by a 5% increase in loans [6][8] Business Line Data and Key Metrics Changes - Annualized loan growth was just over 5%, amounting to $98 million in Q2, primarily driven by commercial real estate balances, which increased by $58 million [9][10] - The mortgage and home equity businesses contributed a combined net growth of $26 million [10] - Customer deposit growth was $28 million, or 1.42% annualized, with non-interest bearing deposits representing 28% of total deposits [11][12] Market Data and Key Metrics Changes - The company maintained a stable allowance for credit losses at 1.24% of total loans, with non-performing assets (NPAs) remaining low [12][39] - The competitive landscape varies geographically, with the company maintaining significant market share in its core markets while being a disruptor in Ohio [64] Company Strategy and Development Direction - The company is focused on organic growth, with a clear path to reach $10 billion in total assets through loan growth and strategic initiatives [6][19] - There is an ongoing emphasis on improving asset quality and maintaining a solid deposit mix, with a disciplined approach to potential inorganic growth opportunities [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, expecting to maintain a mid to high single-digit growth rate for the remainder of the year [25][50] - The company is actively monitoring the impact of economic changes and tariffs but has not seen significant adverse effects on growth [12][39] Other Important Information - The company added four new commercial bankers to enhance its commercial and industrial (C&I) lending efforts [10][53] - The tangible common equity (TCE) ratio increased by 18 basis points, positioning the company well for growth opportunities [18][19] Q&A Session Summary Question: What is the outlook for funding costs and loan growth? - Management indicated that successful deposit raising efforts could offset some pressure on margins, but growth might be slightly lower than the current NIM of 3.88% [23] Question: Can you clarify the potential upside in a higher for longer interest rate environment? - Management noted that benefits from repricing on loans and securities could yield a couple of basis points of upside, but it would not be significant [24] Question: What is the company's strategy regarding M&A? - Management confirmed that building long-term relationships is critical, and they are optimistic about participating in M&A as market uncertainty decreases [29] Question: How does the company view its credit quality and reserves? - Management aims to stabilize non-performing loans (NPLs) and maintain low charge-offs, with reserves currently at 1.24% of loans [39][42] Question: What is the expected impact of crossing the $10 billion asset threshold? - The Durbin hit is estimated between $6 million and $7 million annually, but the company has built infrastructure to manage this without significant additional expenses [43][56] Question: What are the primary drivers of loan growth in the second half of the year? - Management highlighted consistent growth across various business lines, particularly in commercial real estate and home equity, with a focus on maintaining strong pipelines [50][51]

Earnings and Profitability - The company reported earnings per share (EPS) of $0.83 and net income of $31.9 million[8] - Return on Assets (ROA) was 1.32% and Return on Equity (ROE) was 8.91%[8] - Return on Average Tangible Shareholders' Equity (ROTE) reached 12.12%, while Pre-Provision Net Revenue (PPNR) was 1.73%[8] Balance Sheet - Loan growth amounted to $98.1 million, representing an annualized growth rate of 5.02%[8, 18] - Deposit growth was $28.0 million, with an annualized growth rate of 1.42%[8, 18] - The company's total deposits reached $7.921 billion in 2Q25, compared to $7.893 billion in 1Q25[15] Asset Quality - The Allowance for Credit Losses (ACL) ratio was 1.24%[8, 26] - Net loan charge-offs were $1.2 million, or 0.06% of total loans[8, 26] - Nonperforming Assets (NPAs) represented 0.27% of total portfolio loans plus OREO[8, 26] Net Interest Income - Net interest income grew by $3.3 million, a 3.90% increase compared to 1Q25[10, 32] - Net Interest Margin (NIM) expanded by 7 basis points to 3.88%[8, 10, 32] Noninterest Income and Expense - Noninterest income totaled $13.5 million, a $3.1 million increase compared to 1Q25[34] - Noninterest expense was $58.1 million, a $3.0 million increase compared to 1Q25, primarily due to higher salaries & benefits[39] Capital Adequacy - Tangible Common Equity (TCE) to Tangible Assets (TA) ratio was 11.34%[44, 49]

分组1 - S&T Bancorp reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.80 per share, but down from $0.89 per share a year ago, representing an earnings surprise of +3.75% [1] - The company posted revenues of $100.07 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.46%, compared to year-ago revenues of $96.9 million [2] - S&T Bancorp has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates only once during the same period [2] 分组2 - The stock has added about 1.1% since the beginning of the year, underperforming the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the coming quarter is $0.79 on revenues of $99.52 million, and for the current fiscal year, it is $3.26 on revenues of $395.43 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[S&T Bancorp, Inc. Second Quarter 2025 Results](index=1&type=section&id=S%26T%20Bancorp%2C%20Inc.%20Second%20Quarter%202025%20Results) This report presents S&T Bancorp's Q2 2025 financial results, covering performance, statements, and non-GAAP measures [Performance Overview](index=1&type=section&id=Performance%20Overview) S&T Bancorp reported Q2 2025 net income of $31.9 million, driven by increased net interest income and improved asset quality [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) Key financial results and performance ratios for Q2 2025 show net income, EPS, and asset quality metrics Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $31.9 million | $33.4 million | $34.4 million | | Diluted EPS | $0.83 | $0.87 | $0.89 | Q2 2025 Key Performance Ratios | Ratio | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Return on average assets (ROA) | 1.32% | 1.41% | | Return on average equity (ROE) | 8.91% | 9.67% | | Return on average tangible equity (ROTE) (non-GAAP) | 12.12% | 13.29% | | Pre-provision net revenue to average assets (PPNR) (non-GAAP) | 1.73% | 1.73% | - Total portfolio loans increased by **$98.1 million** (**5.02%** annualized) and total deposits grew by **$28.0 million** (**1.42%** annualized) compared to the previous quarter[5](index=5&type=chunk) - Nonperforming assets improved, decreasing by **$1.1 million** to **$21.3 million**, representing **0.27%** of total loans plus OREO[5](index=5&type=chunk) [Net Interest Income](index=1&type=section&id=Net%20Interest%20Income) Net interest income increased due to asset growth and favorable repricing, despite lower liability costs Net Interest Income and Margin (QoQ) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $86.6 million | $83.3 million | +$3.3 million (3.90%) | | NIM (FTE) (non-GAAP) | 3.88% | 3.81% | +7 bps | - The growth in net interest income was driven by a **$112.5 million** increase in average interest-earning assets and favorable asset repricing[4](index=4&type=chunk) - Total interest-bearing liability costs decreased by **3 basis points** to **2.84%**, primarily due to the repricing of certificates of deposits[4](index=4&type=chunk) [Asset Quality](index=2&type=section&id=Asset%20Quality) Asset quality remained strong with a decrease in nonperforming assets and a slight increase in credit loss provision - The allowance for credit losses (ACL) stood at **$98.6 million**, or **1.24%** of total portfolio loans, at the end of Q2 2025, a slight decrease from **1.26%** in Q1 2025[6](index=6&type=chunk) - The provision for credit losses was **$2.0 million** for Q2 2025, compared to a negative provision of **$3.0 million** in Q1 2025, which was influenced by net recoveries and a decrease in specific reserves[6](index=6&type=chunk) - Net charge-offs were **$1.2 million** (**0.06%** of average loans) in Q2 2025, compared to net recoveries in the prior quarter[6](index=6&type=chunk) [Noninterest Income and Expense](index=2&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income increased due to prior period losses, while expenses rose from higher salaries and benefits - Noninterest income increased by **$3.1 million** to **$13.5 million** in Q2 2025, primarily because Q1 2025 included a **$2.3 million** realized loss from securities repositioning[7](index=7&type=chunk) - Total noninterest expense rose by **$3.0 million** to **$58.1 million**, mainly due to a **$3.1 million** increase in salaries and employee benefits from annual merit increases, higher incentives, and medical costs[7](index=7&type=chunk) [Financial Condition](index=2&type=section&id=Financial%20Condition) Total assets and loans grew, deposit mix shifted, and capital ratios remained strong, exceeding well-capitalized thresholds - Total assets grew to **$9.8 billion** at June 30, 2025, from **$9.7 billion** at March 31, 2025[8](index=8&type=chunk) - Loan growth was driven by increases in commercial real estate (+$58.0 million) and consumer loans (+$30.8 million)[8](index=8&type=chunk) - Deposit mix shifted, with increases in noninterest-bearing demand, money market, and CDs, offset by decreases in interest-bearing demand and savings accounts[8](index=8&type=chunk) - The company maintains a strong regulatory capital position, with all capital ratios exceeding the well-capitalized thresholds[9](index=9&type=chunk) [Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Consolidated%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements show Q2 net income of $31.9 million, asset growth to $9.8 billion, and strong asset quality [Statements of Income](index=5&type=section&id=Statements%20of%20Income) Income statements detail quarterly and six-month financial performance, including net interest income and net income Quarterly Income Statement Highlights (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $86,572 | $83,323 | $83,594 | | Provision for credit losses | $1,974 | ($3,040) | $422 | | Total Noninterest Income | $13,500 | $10,429 | $13,305 | | Total Noninterest Expense | $58,114 | $55,091 | $53,608 | | **Net Income** | **$31,900** | **$33,401** | **$34,371** | Six Months Ended June 30 Income Statement Highlights (in thousands) | Line Item | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $169,895 | $167,071 | | Provision for credit losses | ($1,066) | $3,049 | | Total Noninterest Income | $23,929 | $26,135 | | Total Noninterest Expense | $113,205 | $108,128 | | **Net Income** | **$65,301** | **$65,610** | [Balance Sheets](index=7&type=section&id=Balance%20Sheets) Balance sheets show asset and deposit growth, loan portfolio expansion, and strong capitalization ratios Balance Sheet Highlights (in thousands) | Line Item | June 30, 2025 | Mar 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Portfolio Loans | $7,934,434 | $7,836,349 | $7,713,570 | | Total Assets | $9,810,069 | $9,718,276 | $9,635,462 | | Total Deposits | $7,920,920 | $7,892,933 | $7,680,336 | | Total Shareholders' Equity | $1,445,493 | $1,418,034 | $1,321,443 | Capitalization Ratios | Ratio | June 30, 2025 | Mar 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Shareholders' equity / assets | 14.73% | 14.59% | 13.71% | | Common equity tier 1 capital | 14.59% | 14.67% | 13.89% | | Risk-based capital - total | 16.48% | 16.57% | 15.79% | [Net Interest Margin Analysis](index=8&type=section&id=Net%20Interest%20Margin%20Analysis) Net interest margin analysis details quarterly and year-to-date trends in asset yields and liability costs Quarterly Net Interest Margin (FTE) Breakdown | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Yield on Interest-earning Assets | 5.76% | 5.70% | 5.91% | | Cost of Interest-bearing Liabilities | 2.84% | 2.87% | 3.10% | | **Net Interest Margin (FTE)** | **3.88%** | **3.81%** | **3.85%** | - For the six months ended June 30, the Net Interest Margin (FTE) was stable at **3.84%** for both 2025 and 2024[20](index=20&type=chunk) [Asset Quality Details](index=10&type=section&id=Asset%20Quality%20Details) Detailed asset quality metrics show improvements in nonaccrual loans and changes in net charge-offs Asset Quality Ratios | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Nonaccrual loans / total loans | 0.27% | 0.29% | 0.45% | | Allowance for credit losses / total portfolio loans | 1.24% | 1.26% | 1.38% | | Net loan charge-offs (annualized) / avg loans | 0.06% | (0.00%) | (0.02%) | - Total nonaccrual loans decreased to **$21.3 million** in Q2 2025 from **$22.3 million** in Q1 2025 and **$34.9 million** in Q2 2024[21](index=21&type=chunk)[22](index=22&type=chunk) - The company experienced net loan charge-offs of **$1.2 million** in Q2 2025, compared to net recoveries of **$27 thousand** in Q1 2025 and **$388 thousand** in Q2 2024[21](index=21&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP financial measures provide insights into operational performance, with detailed reconciliations for key metrics like ROTE and PPNR - Management uses non-GAAP measures to provide investors with a clearer understanding of underlying operational performance and business trends[15](index=15&type=chunk) - Key non-GAAP measures include: tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets, and net interest margin on an FTE basis[15](index=15&type=chunk) Reconciliation of Efficiency Ratio (non-GAAP) for Q2 2025 (in thousands) | Item | Amount | | :--- | :--- | | Noninterest expense | $58,114 | | Net interest income (FTE) | $87,162 | | Noninterest income (adjusted) | $13,500 | | **Total Revenue (adjusted)** | **$100,662** | | **Efficiency Ratio (non-GAAP)** | **57.73%** | [Supplementary Information](index=2&type=section&id=Supplementary%20Information) Supplementary information includes company overview, conference call details, and forward-looking statements outlining various risks and uncertainties [Company Overview and Conference Call](index=2&type=section&id=Company%20Overview%20and%20Conference%20Call) Company overview details S&T Bancorp's operations and announces the Q2 2025 earnings conference call - S&T Bancorp, Inc. is a **$9.8 billion** bank holding company headquartered in Indiana, Pennsylvania, with its principal subsidiary, S&T Bank, operating in Pennsylvania and Ohio[11](index=11&type=chunk) - The company will host its second quarter 2025 earnings conference call via webcast at 1:00 p.m. ET on Thursday, July 24, 2025[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) Forward-looking statements discuss potential risks and uncertainties affecting future financial performance, cautioning against undue reliance - The report contains forward-looking statements regarding financial condition, results of operations, and business strategy, which are subject to various risks and uncertainties[12](index=12&type=chunk) - Key risk factors mentioned include credit losses, interest rate sensitivity, cybersecurity concerns, regulatory changes, and general economic conditions[12](index=12&type=chunk)[13](index=13&type=chunk) - Readers are cautioned not to place undue reliance on these statements, as they are based on information available at the time and are not guarantees of future performance[14](index=14&type=chunk)