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]

Financial Performance - Net income for Q1 2025 was $33.4 million, or $0.87 per diluted share, compared to $33.1 million, or $0.86 per diluted share in Q4 2024[1] - Net income for Q1 2025 was $33,401,000, representing a slight increase of 1.0% from $33,065,000 in Q4 2024[16] - Diluted earnings per share for Q1 2025 rose to $0.87, up from $0.86 in Q4 2024, indicating a growth of 1.2%[16] Asset and Loan Growth - Total portfolio loans increased by $93.4 million, or 4.89% annualized, compared to December 31, 2024[3] - Total assets increased to $9,718,276,000 in Q1 2025, compared to $9,657,972,000 in Q4 2024, marking a growth of 0.6%[17] - Total deposits rose by $109.8 million, or 5.72% annualized, with customer deposit growth of $134.7 million, or 7.23% annualized[7] - Total deposits reached $7,892,933,000 in Q1 2025, an increase of 1.4% from $7,783,117,000 in Q4 2024[17] - Average interest-earning assets rose to $8,899,485 thousand in Q1 2025, compared to $8,860,338 thousand in Q4 2024[22] Profitability Ratios - Return on average assets (ROA) was 1.41%, return on average equity (ROE) was 9.67%, and return on average tangible equity (ROTE) was 13.29%, showing slight improvements from Q4 2024[3] - The return on average assets for Q1 2025 was 1.41%, up from 1.37% in Q4 2024, reflecting improved asset efficiency[16] - Return on average tangible shareholders' equity (non-GAAP) was 13.29% in Q1 2025, slightly up from 13.25% in Q4 2024[20] Nonperforming Assets and Credit Quality - Nonperforming assets decreased by $5.5 million to $22.4 million, or 0.29% of total loans plus other real estate owned (OREO)[3] - Total nonperforming assets decreased to $22,368 thousand in Q1 2025 from $27,945 thousand in Q4 2024, a reduction of 20.1%[19] - Total nonaccrual loans decreased to $22,339 thousand in Q1 2025 from $27,937 thousand in Q4 2024, representing a decline of 20.5%[19] - The allowance for credit losses (ACL) was $99.0 million, or 1.26% of total portfolio loans, down from 1.31% at the end of Q4 2024[5] - Allowance for credit losses to total portfolio loans was 1.26% in Q1 2025, down from 1.31% in Q4 2024[19] - Net loan charge-offs were ($27) thousand in Q1 2025, a significant improvement compared to ($58) thousand in Q4 2024[19] Income and Expense Analysis - Total interest and dividend income for Q1 2025 was $124,848,000, a decrease of 2.4% from Q4 2024's $127,879,000[16] - Net interest income after provision for credit losses increased to $86,363,000 in Q1 2025, compared to $85,720,000 in Q4 2024, reflecting a growth of 0.8%[16] - Total noninterest income decreased to $10,429,000 in Q1 2025, down 6.0% from $11,071,000 in Q4 2024[16] - Noninterest income decreased by $0.7 million to $10.4 million due to seasonally slower customer activity[6] Capital Position - The company maintains a strong regulatory capital position with all capital ratios above the well-capitalized thresholds[8] - Shareholders' equity as a percentage of total assets improved to 14.59% in Q1 2025, compared to 14.29% in Q4 2024, demonstrating stronger capital position[17] Efficiency Metrics - The efficiency ratio (FTE) for Q1 2025 was 56.99%, slightly higher than 56.93% in Q4 2024, indicating a marginal increase in operational costs relative to income[16] - Efficiency ratio (non-GAAP) was 56.99% in Q1 2025, slightly higher than 56.93% in Q4 2024[20] Interest Margin - Net interest margin (NIM) on a fully taxable equivalent basis increased by 4 basis points to 3.81% compared to 3.77% in Q4 2024[4] - Net interest margin (FTE) improved to 3.81% in Q1 2025 compared to 3.77% in Q4 2024[22] Tangible Book Value - Tangible book value increased to $27.24 in Q1 2025, up from $26.25 in Q4 2024, reflecting a growth of 3.8%[20]

S&T Bancorp, Inc. is a $9.7 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn. To Ask Questions: Prior to the webcast, please email questions to [email protected]. Also, participants who log into the webcast will ha ...

Financial Performance - Total interest and dividend income for 2024 was $515,872,000, an increase of 7.9% from $477,901,000 in 2023[164]. - Net income for 2024 was $131.3 million, a decrease of 9.3% from $144.8 million in 2023, with diluted earnings per share (EPS) at $3.41 compared to $3.74 in 2023[170]. - Noninterest income fell by $8.5 million to $49.1 million in 2024, primarily due to $7.9 million in realized losses from the repositioning of securities[173]. - Total noninterest expense increased by $8.6 million to $218.9 million in 2024, with salaries and employee benefits rising by $10.5 million due to merit increases and new talent acquisition[174]. - The efficiency ratio (non-GAAP) for 2024 was 55.99%, compared to 51.35% in 2023, indicating a decline in operational efficiency[174]. - Comprehensive income for 2024 was $145,174,000, down from $166,005,000 in 2023[272]. Interest Income and Expense - Net interest income on an FTE basis for 2024 was $337,512,000, a decrease of 4.1% from $351,960,000 in 2023[164]. - The total interest expense for 2024 was $181,066,000, compared to $128,491,000 in 2023, reflecting a significant increase[164]. - Interest income on an FTE basis increased by $38.1 million to $518.6 million in 2024 compared to $480.5 million in 2023, primarily due to higher interest rates on interest-earning assets[181]. - The net interest margin on an FTE basis for 2024 was 3.82%, down from 4.13% in 2023[164]. - Net interest income decreased by $14.6 million, or 4.18%, to $334.8 million in 2024, with a net interest margin (NIM) on a fully taxable equivalent (FTE) basis of 3.82%, down 31 basis points from 4.13% in 2023[171]. Credit Quality and Losses - The allowance for credit losses (ACL) is subject to significant estimation uncertainty, with a potential increase of approximately 75% under a severely adverse economic scenario[155]. - The provision for credit losses significantly decreased to $0.1 million in 2024 from $17.9 million in 2023, reflecting improved asset quality[172]. - Net loan charge-offs for 2024 were $8.3 million, or 0.11% of average loans, down from $13.2 million, or 0.18%, in 2023[186]. - The Allowance for Credit Losses (ACL) was $101.5 million, or 1.31% of total portfolio loans, at December 31, 2024, down from $108.0 million, or 1.41% in 2023, reflecting a $6.5 million decrease due to improved asset quality[230]. Assets and Liabilities - Total assets increased to $9.57 billion in 2024 from $9.28 billion in 2023[180]. - Average shareholders' equity increased to $1.33 billion in 2024 from $1.23 billion in 2023, reflecting growth in the company's capital base[170]. - Total deposits increased to $7,783,117 thousand in 2024, up from $7,521,769 thousand in 2023, representing a growth of approximately 3.5%[270]. - Customer deposits increased by $411.7 million, or 5.8%, to $7.6 billion at December 31, 2024, while brokered deposits decreased by $150.4 million, or 40.0%[193]. - Total borrowings decreased by $253.3 million, from $503.6 million in 2023 to $250.3 million in 2024[239]. Strategic Focus and Future Outlook - The company aims to focus on growing its deposit franchise, core profitability, asset quality, and talent engagement in its strategic priorities for 2025 and beyond[168]. - The bank's management continuously monitors the loan portfolio for potential and emerging risks related to inflation and interest rate changes[257]. - The company plans to monitor its loan strategy and may revert to selling more residential mortgages in the future[215]. Regulatory and Compliance - The leverage ratio stood at 11.98%, significantly above the regulatory guideline of 5.00%[251]. - Common Equity Tier 1 ratio was 14.58%, exceeding the regulatory guideline of 6.50%[251]. - The effective tax rate increased to 20.4% in 2024 from 19.0% in 2023, primarily due to the adoption of new accounting standards[175]. Impairment and Goodwill - Goodwill was tested for impairment as of October 1, 2024, and was concluded to be not impaired[160]. - The company did not recognize any impairment charges on the securities portfolio in 2024, 2023, or 2022, indicating stable credit quality[198].

Core Insights - S&T Bank has been recognized for the second consecutive year on Forbes America's Best Banks list, ranking 46th overall and being the top-ranked bank headquartered in Pennsylvania [1][3]. Company Performance - The recognition is attributed to S&T Bank's focus on a people-forward purpose, which has led to strong results for stakeholders in 2024, fostering growth and optimism for 2025 [2]. - The evaluation for the Forbes list involved ten equally weighted metrics assessing growth, credit quality, and profitability for the 12 months ending September 30, 2024, along with stock performance for the 12 months ending January 10, 2025 [2]. Company Overview - S&T Bancorp, Inc. is a bank holding company with assets totaling $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].

Financial Performance - Full year net income was $131.3 million, with an EPS of $3.41[7] - Full year Return on Average Assets (ROA) was 1.37% and Return on Average Equity (ROE) was 9.86%[7] - Full year Return on Average Tangible Shareholders' Equity (ROTE) was 13.84% and Pre-provision Net Revenue (PPNR) was 1.77%[7] - Fourth quarter net income was $33.1 million, with an EPS of $0.86[12] - Fourth quarter Return on Average Assets (ROA) was 1.37% and Return on Average Equity (ROE) was 9.57%[12] - Fourth quarter Return on Average Tangible Shareholders' Equity (ROTE) was 13.25% and Pre-provision Net Revenue (PPNR) was 1.72%[12] Balance Sheet - Full year loan growth was $89.6 million, a 1.17% increase, and deposit growth was $261.3 million, a 3.47% increase[7] - Total deposit growth of $261.3 million for the full year, including $411.7 million (5.76%) of customer deposit growth[10] - Fourth quarter loan growth was $53.9 million, and deposit growth was $128.3 million[12] - Total deposit growth of $128.3 million for the fourth quarter, including $78.3 million (4.15% annualized) of customer deposit growth[15] Asset Quality and Net Interest Income - Full year Net Interest Margin (NIM) was 3.82%[7] - Fourth quarter Net Interest Margin (NIM) was 3.77%[12] - Nonperforming Assets (NPAs) decreased 5 basis points to 0.36% of total portfolio loans plus OREO[22] - The Allowance for Credit Losses (ACL) decreased 5 basis points to 1.31% compared to 1.36% at September 30, 2024[26]