Core Insights - S&T Bancorp, Inc. reported a net income of $31.9 million, or $0.83 per diluted share, for Q2 2025, a decrease from $33.4 million, or $0.87 per diluted share, in Q1 2025 and $34.4 million, or $0.89 per diluted share, in Q2 2024 [1][16]. Financial Performance - Net interest income increased by $3.3 million, or 3.90%, to $86.6 million in Q2 2025 compared to $83.3 million in Q1 2025 [4]. - Average interest-earning assets rose by $112.5 million to $9.0 billion in Q2 2025 from $8.9 billion in Q1 2025 [4]. - The net interest margin (NIM) expanded by 7 basis points to 3.88% in Q2 2025 from 3.81% in Q1 2025 [4][22]. Asset Quality - The allowance for credit losses (ACL) was $98.6 million, or 1.24% of total portfolio loans, at June 30, 2025, compared to $99.0 million, or 1.26%, at March 31, 2025 [5]. - Nonperforming assets decreased by $1.1 million to $21.3 million, or 0.27% of total loans plus other real estate owned (OREO), from $22.4 million, or 0.29%, at March 31, 2025 [5][7]. Noninterest Income and Expense - Noninterest income increased by $3.1 million to $13.5 million in Q2 2025 compared to $10.4 million in Q1 2025, primarily due to higher debit and credit card fees and service charges [6]. - Total noninterest expense rose by $3.0 million to $58.1 million compared to $55.1 million in Q1 2025, with salaries and employee benefits increasing by $3.1 million [6]. Financial Condition - Total assets were $9.8 billion at June 30, 2025, compared to $9.7 billion at March 31, 2025 [7]. - Total portfolio loans increased by $98.1 million, or 5.02% annualized, compared to March 31, 2025 [7]. - Total deposits increased by $28.0 million, or 1.42% annualized, compared to March 31, 2025 [8]. Capital Position - S&T Bancorp maintained a strong regulatory capital position with all capital ratios above the well-capitalized thresholds set by federal bank regulatory agencies [9].

Company Overview - S&T Bancorp (STBA) is expected to report earnings for the quarter ended June 2025, with a consensus estimate of $0.79 per share, reflecting a year-over-year decline of 11.2% [3] - Revenues are projected to remain flat at $96.9 million compared to the same quarter last year [3] Earnings Expectations - The earnings report is anticipated to be released on July 24, and the stock may rise if actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for S&T Bancorp is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.27%, suggesting a bearish outlook from analysts [12] - The company currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [12] Historical Performance - In the last reported quarter, S&T Bancorp exceeded the expected earnings of $0.74 per share by delivering $0.87, resulting in a surprise of +17.57% [13] - The company has beaten consensus EPS estimates in each of the last four quarters [14] Industry Context - In the Zacks Banks - Northeast industry, Bridgewater (BWB) is expected to report earnings of $0.35 per share for the same quarter, indicating a year-over-year increase of 34.6% [18] - Bridgewater's revenue is projected to rise by 27.4% to $34.1 million, although its Earnings ESP is -1.45%, reflecting a bearish sentiment [19]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with S&T Bancorp (STBA) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank, which has a strong track record of outperforming the market, with STBA rated as 2 (Buy) [3] Group 2: Performance Metrics - STBA shares have increased by 5.58% over the past week, outperforming the Zacks Banks - Northeast industry, which rose by 4.31% [5] - Over the past quarter, STBA shares have risen by 15.86%, and by 16.8% over the last year, compared to the S&P 500's increases of 10.42% and 14.64% respectively [6] - The average 20-day trading volume for STBA is 138,538 shares, indicating a bullish sign when combined with rising stock prices [7] Group 3: Earnings Outlook - In the past two months, two earnings estimates for STBA have been revised upwards, increasing the consensus estimate from $3.15 to $3.26 [9] - For the next fiscal year, two estimates have also moved upwards with no downward revisions [9] Group 4: Conclusion - Given the positive performance metrics and earnings outlook, STBA is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Core Points - S&T Bancorp, Inc. will hold a conference call to discuss its second quarter 2025 earnings on July 24, 2025, at 1:00 p.m. ET [1][3] - The earnings release will be made available before the market opens on the same day [2][5] - The conference call will be accessible via webcast on the company's Investor Relations webpage [3][6] Company Information - S&T Bancorp, Inc. is a bank holding company with total assets of $9.7 billion, headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [6] - The principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [6]

Core Points - S&T Bank has been recognized as a Northeast Ohio Top Workplaces 2025 award winner based on employee feedback from a third-party survey conducted by Energage, LLC [1][2] - The Top Workplaces award highlights companies that foster exceptional workplace cultures, measuring factors such as employee empowerment, engagement, and alignment with company values [2][3] - S&T Bank's CEO, Chris McComish, expressed pride in the team's engagement and commitment to serving customers and communities [3] - The Chief Human Resources Officer, Susan Nicholson, emphasized the importance of employee feedback in achieving the Top Workplaces recognition, indicating a strong connection between employees and the bank [3] Company Overview - S&T Bancorp, Inc. is a bank holding company with assets of $9.7 billion, headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [4] - S&T Bank, the principal subsidiary, was established in 1902 and operates in Pennsylvania and Ohio [4] About Energage - Energage is a company focused on improving workplace culture through employee feedback, having surveyed over 27 million employees across more than 70,000 organizations [5] - The company provides tools and guidance to help organizations gain recognition for their employee-centric culture [5]

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]