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 ...

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 ...

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].

Financial Data and Key Metrics Changes - The company reported a net income of $34 million, equating to $0.89 per share, which is an increase of $0.08 from Q1 [34] - The return on tangible common equity (ROTCE) was 15%, and the pre-provision net revenue (PPNR) remained strong at 1.82% [34] - The net interest margin (NIM) was reported at 3.85%, up 1 basis point from the previous quarter, indicating an improvement in net interest income [26][34] Business Line Data and Key Metrics Changes - Customer deposit growth exceeded $150 million in the quarter, resulting in over 8.5% annualized growth [22] - The allowance for credit losses increased slightly from 1.37% to 1.38% of total loans, reflecting a modest increase in asset quality concerns [36] - Noninterest income improved primarily due to seasonal changes in debit and credit card fees, along with a $3.1 million gain from Visa Class B-1 shares [16] Market Data and Key Metrics Changes - The company experienced a reduction in criticized and classified assets by 12% quarter-over-quarter and 29% year-over-year, equating to a $107 million reduction over the past four quarters [24][111] - The commercial and business banking pipelines are expected to grow, indicating a positive outlook for loan growth in Q4 [37][53] Company Strategy and Development Direction - The company is focused on organic growth and enhancing customer relationships, which has led to increased wallet share among existing customers [92][95] - There is a strategic emphasis on maintaining strong asset quality while exploring inorganic growth opportunities in contiguous states [88][89] - The management is optimistic about the future, citing improved credit quality and a stable operating environment [21][88] Management's Comments on Operating Environment and Future Outlook - Management noted that the credit quality remains stable to improving, with a focus on enhancing asset quality as a fundamental driver of financial performance [10][21] - There is an expectation of continued funding cost pressure, but the NIM is believed to be close to the bottom, with potential for slight compression if the Federal Reserve cuts rates [45][56] - The management expressed confidence in the overall reserve level at 1.38% and indicated that the need for reserves is expected to moderate barring any unexpected macroeconomic events [71][80] Other Important Information - The company has about $500 million in swaps, which will help manage floating rate exposure and is expected to provide repricing opportunities starting in Q1 2025 [28][70] - The efficiency ratio was reported below 55%, at 54.92%, indicating effective cost management [34] Q&A Session Summary Question: What is the outlook for net interest margin (NIM)? - Management expects NIM to be close to the bottom, with potential slight compression if the Fed cuts rates [45][56] Question: Can you provide details on the commercial pipeline? - The commercial pipeline is strengthening across various regions, driven by pent-up demand and improved visibility regarding interest rates [52][53] Question: How comfortable is the company with the current reserve level? - Management is comfortable with the reserve level at 1.38% and expects it to continue to moderate as asset quality improves [71][80] Question: What is the company's strategy regarding M&A? - The company is focused on organic growth but is also exploring inorganic growth opportunities in contiguous states [88][89] Question: How is the competitive environment affecting deposit growth? - The competitive environment remains rate-sensitive, but the company is leveraging customer loyalty and proactive outreach to maintain deposit growth [96][92]

Company Performance - S&T Bancorp reported quarterly earnings of $0.89 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, and matching the earnings from the same quarter last year [1] - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Revenues for the quarter ended June 2024 were $96.9 million, surpassing the Zacks Consensus Estimate by 1.09%, but down from $102.31 million a year ago [14] Stock Performance - S&T Bancorp shares have increased approximately 19.1% since the beginning of the year, compared to a 17.2% gain for the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [11] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $97 million, and $3.02 on revenues of $385.9 million for the current fiscal year [5] - The trend of estimate revisions for S&T Bancorp is mixed, which may change following the recent earnings report [10][11] Industry Context - S&T Bancorp operates within the Banks - Northeast industry, which is currently ranked in the bottom 41% of over 250 Zacks industries [12] - The performance of S&T Bancorp's stock may be influenced by the overall outlook for the banking industry [12]