Third Quarter 2024 Earnings Supplement Forward Looking Statements and Risk Factors 2 This information contains or incorporates statements that we believe are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and ...

Financial Data and Key Metrics Changes - The company reported a net income of $33 million, equating to $0.85 per share, which is a slight decrease from the previous quarter [5] - Return on Tangible Common Equity (ROTCE) was 13.5%, and Return on Assets (ROA) was 1.35%, with a solid Pre-Provision Net Revenue (PPNR) of 1.69% [5][12] - Net interest income improved by $900,000 compared to the previous quarter, while the net interest margin decreased slightly to 3.82% [12] Business Line Data and Key Metrics Changes - Loans decreased by nearly $25 million, primarily due to a reduction in commercial loan balances of $76 million, with payoffs increasing by nearly 50% [7][8] - Customer deposit growth exceeded $100 million in the quarter, resulting in over 5% annualized growth, with DDA balances remaining strong at 28% of total balances [6][10] - Growth was observed in all segments of consumer loans except for construction, with a significant increase in the loan pipeline expected to carry into Q4 [8] Market Data and Key Metrics Changes - The allowance for credit losses (ACL) declined by approximately $2 million, moving from 1.38% to 1.36% of total loans, with non-performing assets remaining low at $31.9 million [9] - Criticized and classified assets decreased by almost 3% during the quarter, marking the fourth consecutive quarter of reductions [9] Company Strategy and Development Direction - The company is optimistic about growth prospects heading into 2025, supported by strong capital levels and a focus on customer deposit growth [4] - The management emphasized the importance of maintaining solid credit quality and profitability while preparing for both organic and inorganic growth opportunities [15][27] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is improving, with expectations for loan growth in Q4 to be in the low to mid-single-digit range [10] - The company anticipates additional net interest margin compression of 10 to 12 basis points due to potential rate cuts, but expects to stabilize in the low-3.70% range by early 2025 [13][29] Other Important Information - Noninterest income declined by $1.4 million in Q3, primarily due to securities repositioning and a loss related to Visa Class B-1 shares [14] - Noninterest expenses increased by $1.8 million, driven by higher salaries and benefits due to increased incentive payouts [15] Q&A Session Summary Question: Update on normalized net charge-offs or provisions - Management indicated that current charge-off levels are closer to normalized levels and that provisioning may need to increase as loan growth resumes [18] Question: Clarification on net interest margin guidance - Management explained that if the Fed moves slower, stabilization of margins may take longer and could be slightly higher than the projected low-3.70% range [20] Question: Confidence in pipeline strength despite elevated payoffs - Management expressed confidence in the pipeline due to proactive customer engagement and clarity in the rate environment, which encourages investment decisions [22][23] Question: Thoughts on crossing $10 billion in assets and Durbin impact - Management acknowledged the potential $6 million to $7 million impact from Durbin but emphasized their preparedness to absorb the additional regulatory oversight [26][27] Question: Additional securities restructurings - Management is not anticipating significant additional restructurings, with any future actions likely to be smaller in scale [40] Question: Payoff activity in commercial real estate - Management clarified that the payoff activity was part of normal business operations and not solely driven by competitive pressures [41][42]

Core Insights - S&T Bancorp reported revenue of $96.35 million for Q3 2024, a year-over-year decline of 3.2% and a surprise of -2.57% compared to the Zacks Consensus Estimate of $98.9 million [1] - The EPS for the quarter was $0.85, slightly down from $0.87 a year ago, but exceeded the consensus estimate of $0.82 by +3.66% [1] Financial Performance Metrics - Efficiency Ratio (FTE) was reported at 55.9%, higher than the average estimate of 54.8% from two analysts [2] - Net interest margin (FTE) (non-GAAP) was 3.8%, matching the average estimate of 3.8% [2] - Average interest-earning assets totaled $8.88 billion, slightly below the average estimate of $8.90 billion [2] - Net interest income (FTE) (non-GAAP) was $85.15 million, compared to the estimated $85.80 million [2] - Total Noninterest income was $11.88 million, below the average estimate of $12.95 million [2] Stock Performance - S&T Bancorp shares have returned -2.3% over the past month, contrasting with the Zacks S&P 500 composite's +3.8% change [2] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [2]

S&T Bancorp (STBA) came out with quarterly earnings of $0.85 per share, beating the Zacks Consensus Estimate of $0.82 per share. This compares to earnings of $0.87 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 3.66%. A quarter ago, it was expected that this holding company for S&T Bank would post earnings of $0.75 per share when it actually produced earnings of $0.89, delivering a surprise of 18.67%. Over the last four quar ...

INVESTOR CONTACT: Mark Kochvar S&T Bancorp, Inc. Chief Financial Officer 724.465.4826 mark.kochvar@stbank.com FOR IMMEDIATE RELEASE S&T Bancorp Inc. Announces Third Quarter 2024 Results INDIANA, Pa., - October 17, 2024 – S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024 compared to net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 and net income of $3 ...

Wall Street analysts expect S&T Bancorp (STBA) to post quarterly earnings of $0.82 per share in its upcoming report, which indicates a year-over-year decline of 5.8%. Revenues are expected to be $98.9 million, down 0.7% from the year-ago quarter. The current level reflects a downward revision of 0.6% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. Before a comp ...

INDIANA, Pa., Oct. 1, 2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced today that a conference call detailing the company's third quarter 2024 earnings will be held live via webcast at 1:00 p.m. ET, Thursday, October 17, 2024. Christopher J. McComish, chief executive officer, David G. Antolik, president, and Mark Kochvar, chief financial officer, will conduct the conference call. The public is invited to listen. S&T Bancorp, Inc. intends to release its ...

Financial Performance - As of June 30, 2024, S&T Bancorp, Inc. has total assets of $9.6 billion[101] - For the three months ended June 30, 2024, interest income on an FTE basis was $129,447 thousand, compared to $117,972 thousand for the same period in 2023, representing a 10.9% increase[98] - Net interest income for the three months ended June 30, 2024, was $83,594 thousand, down from $88,123 thousand in the same period of 2023, a decrease of 5.9%[98] - Net income for the three months ended June 30, 2024, was $34.4 million, or $0.89 per diluted share, compared to $34.5 million, or $0.89 per diluted share, for the same period in 2023[102] - Noninterest income decreased by $0.9 million, or 6.24%, for the three months ended June 30, 2024, compared to the same period in 2023[104] - Noninterest expense increased by $4.0 million, or 8.01%, for the three months ended June 30, 2024, primarily due to increases in salaries and employee benefits[104] Interest and Loan Metrics - The net interest margin for the three months ended June 30, 2024, was 3.82%, compared to 4.19% for the same period in 2023, reflecting a decline of 0.37 percentage points[98] - Total interest-earning assets for the three months ended June 30, 2024, were $8.80 billion, compared to $8.44 billion for the same period in 2023[107] - The net interest margin (FTE) for the three months ended June 30, 2024, was 3.85%, down from 4.22% for the same period in 2023[107] - Average loan balances increased by $395.5 million for the three months ended June 30, 2024, compared to the same period in 2023[112] - The average yield on loan balances increased by 28 basis points for the three months ended June 30, 2024, due to higher interest rates[112] - Interest expense increased by $16.0 million for the three months ended June 30, 2024, primarily due to higher interest rates and a shift in customer deposit mix[112] Credit Losses and Provisions - The provision for credit losses decreased to $0.4 million for the three months ended June 30, 2024, down from $10.5 million for the same period in 2023[102] - The provision for credit losses decreased by $10.1 million to $0.4 million for the three months ended June 30, 2024, compared to $10.5 million for the same period in 2023[115] - Net loan recoveries were $0.4 million for the three months ended June 30, 2024, compared to net loan charge-offs of $11.0 million for the same period in 2023[115] Deposits and Borrowings - Total deposits increased by $158.6 million, with customer deposits rising by $232.9 million, or 3.26%, at June 30, 2024 compared to December 31, 2023[121] - Total deposits increased to $7.68 billion as of June 30, 2024, up from $7.52 billion at December 31, 2023, reflecting a 2.1% increase[134] - Total borrowings decreased by $140.2 million to $363.4 million at June 30, 2024, primarily due to deposit growth[138] - Short-term borrowings fell to $275.0 million at June 30, 2024, down from $415.0 million at December 31, 2023[139] Equity and Capital Ratios - Total shareholders' equity increased by $38.0 million to $1.3 billion at June 30, 2024, primarily due to net income of $65.6 million[121] - The leverage ratio improved to 11.51% at June 30, 2024, compared to 11.21% at December 31, 2023, exceeding the well-capitalized guideline of 5.00%[146] - The Common Equity Tier 1 ratio increased to 13.89% at June 30, 2024, up from 13.37% at December 31, 2023, also above the well-capitalized guideline of 6.50%[146] Strategic Focus and Market Conditions - The company aims to focus on deposit franchise, core profitability, asset quality, and talent engagement as strategic priorities for 2024 and beyond[101] - The loan volume has slowed due to higher interest rates and an uncertain macro environment[125] - The company conducts market risk stress tests annually, which include sensitivity analyses to identify the most impactful model assumptions on pretax net interest income[151] Interest Rate Sensitivity - As of June 30, 2024, a 400 basis point increase in interest rates is projected to result in a 4.8% change in pretax net interest income over 1-12 months and a 6.8% change over 13-24 months[149] - The economic value of equity (EVE) is expected to decrease by 32.5% with a 400 basis point increase in interest rates over the 1-12 month period[149] - The company’s asset-sensitive balance sheet indicates that in a rising interest rate environment, net interest income and operating income are likely to increase due to more assets repricing than liabilities[149]

Core Viewpoint - S&T Bancorp (STBA) shows a promising earnings outlook with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][4][10] Earnings Estimates - The Zacks Consensus Estimate for S&T Bancorp has increased by 8.61% over the last 30 days, with two estimates going higher and no negative revisions [3] - For the full year, the company is expected to earn $3.22 per share, reflecting a year-over-year decline of 13.9% [4] - The current quarter estimate is projected at $0.82 per share, which represents a year-over-year change of -5.75% [8] Analyst Sentiment - The revisions trend for S&T Bancorp appears positive, with three estimates moving higher in the past month and no negative revisions [4] - The company has achieved a Zacks Rank 1 (Strong Buy), indicating strong analyst optimism regarding its earnings prospects [5][10] Stock Performance - S&T Bancorp shares have increased by 31.2% over the past four weeks, suggesting investor confidence in the company's earnings growth potential [10] - Empirical research indicates a strong correlation between earnings estimate revisions and near-term stock price movements, supporting the positive outlook for S&T Bancorp [7][10] Consensus Agreement - There is strong agreement among covering analysts in raising earnings estimates for S&T Bancorp, indicating a favorable consensus for the company's future performance [11]

Core Viewpoint - S&T Bancorp (STBA) is identified as a strong buy stock with a Momentum Score of A, indicating potential for significant near-term gains [1][4]. Momentum Investing - Momentum investing focuses on following a stock's recent price trends, with the aim of buying high and selling higher [2]. - The Zacks Momentum Style Score helps in evaluating stocks based on price changes and earnings estimate revisions [3]. Performance Metrics - STBA shares have increased by 16.28% over the past week, outperforming the Zacks Banks - Northeast industry, which rose by 6.39% [7]. - Over the last month, STBA's price change is 32.38%, compared to the industry's 16.04% [7]. - In the last quarter, STBA shares rose by 33.02%, and over the past year, they increased by 37%, while the S&P 500 only moved 11.27% and 22.23%, respectively [8]. Trading Volume - The average 20-day trading volume for STBA is 156,479 shares, which serves as a bullish indicator when combined with rising stock prices [9]. Earnings Outlook - In the past two months, two earnings estimates for STBA have been revised upwards, increasing the consensus estimate from $3.02 to $3.16 [12]. - For the next fiscal year, two estimates have also moved upwards with no downward revisions [12].