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]

Financial Performance - Net income for Q2 2024 was $34.4 million, or $0.89 per diluted share, compared to $31.2 million, or $0.81 per diluted share in Q1 2024[18]. - Net income for Q2 2024 was $138,239 thousand, an increase from $125,643 thousand in Q1 2024, representing a growth of 10.7%[40]. - Net Income for Q2 2024 was $34,371, compared to $34,467 in Q2 2023, showing a slight decrease of 0.3%[50]. - Diluted earnings per share for Q2 2024 were $0.89, unchanged from Q2 2023[50]. Revenue and Income - Pre-provision net revenue to average assets (PPNR) was 1.82% in Q2 2024, up from 1.76% in Q1 2024[1]. - Noninterest income increased by $0.5 million to $13.3 million in Q2 2024 compared to $12.8 million in Q1 2024[7]. - Noninterest income increased to $13,305 thousand in Q2 2024 from $12,830 thousand in Q1 2024[40]. - Total Interest and Dividend Income for Q2 2024 was $128,765, an increase of 9.7% from $117,333 in Q2 2023[50]. - Net Interest Income After Provision for Credit Losses rose to $83,172 in Q2 2024, compared to $77,594 in Q2 2023, reflecting a growth of 7.3%[50]. Asset and Loan Growth - Total portfolio loans increased by $57.5 million, or 3.02% annualized, to $7.7 billion compared to Q1 2024[26]. - Total loans increased to $7.67 billion in the first half of 2024, up from $7.24 billion in the same period of 2023, representing a growth of approximately 6.0%[36]. - Total assets were $9.6 billion at June 30, 2024, compared to $9.5 billion at March 31, 2024[26]. - Total assets increased to $9,635,462 thousand in Q2 2024, up from $9,252,922 thousand in Q2 2023, representing a growth of 4.14%[52]. - Total portfolio loans reached $7,713,570 thousand in Q2 2024, up from $7,319,611 thousand in Q2 2023, reflecting a growth of 5.39%[52]. Deposits and Funding - Customer deposits grew by $155.1 million, or 8.63% annualized, resulting in total deposit growth of $80.0 million for Q2 2024[20]. - Total interest-bearing deposits increased to $5.39 billion, up from $4.68 billion year-over-year, reflecting a growth of approximately 15.2%[36]. - Total deposits rose to $7,680,336 thousand in Q2 2024, compared to $7,141,210 thousand in Q2 2023, marking an increase of 7.54%[52]. Efficiency and Expenses - Total noninterest expense decreased by $0.9 million to $53.6 million compared to $54.5 million in Q1 2024[25]. - Efficiency ratio decreased to 54.94% in Q2 2024 from 56.21% in Q1 2024, indicating improved operational efficiency[40]. - Total Noninterest Expense increased to $53,608 in Q2 2024, up from $49,633 in Q2 2023, representing an increase of 8.4%[50]. Credit Quality - Nonperforming assets remained low at $35.0 million, or 0.45% of total loans plus other real estate owned, compared to 0.44% in Q1 2024[2]. - The allowance for credit losses was $106.2 million, or 1.38% of total portfolio loans, as of June 30, 2024[6]. - Nonaccrual loans totaled $34.86 million, representing 0.45% of total loans, compared to 0.20% in the second quarter of 2023[39]. - The net loan charge-offs were $388 thousand in Q2 2024, a decrease from $10,967 thousand in Q2 2023, indicating improved loan performance[55]. Shareholder Equity - The company reported a total of $1.30 billion in shareholders' equity as of June 30, 2024, compared to $1.22 billion a year earlier, marking an increase of about 6.1%[36]. - Total shareholders' equity increased to $1,321,443 thousand in Q2 2024, up from $1,212,853 thousand in Q2 2023, a rise of 8.95%[52]. - Tangible common equity increased to $1,321,443 thousand in Q2 2024 from $1,212,853 thousand in Q2 2023, representing a growth of 8.95%[61]. Interest Margin - Net interest margin (NIM) increased to 3.85% in Q2 2024 from 3.84% in Q1 2024[1]. - The net interest margin (FTE) for the first six months of 2024 was 3.84%, down from 4.27% in the same period of 2023[36]. - Net interest margin rate (FTE) for Q2 2024 was $338,956 thousand annualized, compared to $356,022 thousand in Q2 2023, a decline of 4.78%[61].

Company Overview - S&T Bancorp, Inc. is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, trading on NASDAQ under the symbol STBA [5] - Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio [5] Recognition and Awards - S&T Bank has been named a national 2024 Financial Services Industry Top Workplace Winner, highlighting its commitment to a people-first workplace culture [4] - The award is based on employee participation in the Energage 2024 Employee Survey, which recognizes organizations that foster engaged and supportive work environments [2][4] Employee Engagement - The survey received an exceptional participation rate, indicating high employee engagement and willingness to provide feedback [5] - S&T's Chief Human Resources Officer emphasized the importance of employee insights for continuous improvement and organizational growth [5] Energage's Role - Energage is a purpose-driven company that helps organizations turn employee feedback into actionable business intelligence and recognition through the Top Workplaces program [3] - The program is built on 18 years of culture research and feedback from 27 million employees across over 70,000 organizations, providing accurate competitive benchmarks [3]

Core Points - S&T Bancorp, Inc. will release its second quarter earnings on July 18, 2024, before the market opens [4] - A conference call to discuss the earnings will be held live via webcast at 1:00 p.m. ET on the same day [7] - The company is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [6] Earnings Release Details - The second quarter earnings release will be accessible on the company's website [2] - The webcast of the conference call will be archived for 12 months [5] - Participants can submit questions via email before and during the webcast [8]

Core Points - S&T Bank is launching its second annual Lemonade Days fundraising campaign from June 1 to June 8, 2024, to support Alex's Lemonade Stand Foundation (ALSF), the largest independent childhood cancer charity in the U.S. [1][2] - In 2023, S&T Bank raised over $30,000 for ALSF in Central and Southeastern Pennsylvania and plans to expand its lemonade stands across all markets this year [3] - ALSF was founded by Alex Scott, who raised $1 million for childhood cancer research before her passing at age eight, and continues to fund critical research and support families affected by childhood cancer [5] Company Overview - S&T Bancorp Inc. is a $9.5 billion bank holding company headquartered in Indiana, Pennsylvania, and trades on NASDAQ under the symbol STBA [4] - S&T Bank operates in Pennsylvania and Ohio and has received recognition as a Best-in-State Bank by Forbes in 2023 and as one of America's Best Banks in 2024 [4] Foundation Overview - Alex's Lemonade Stand Foundation (ALSF) originated from Alex Scott's front yard lemonade stand, which aimed to raise funds for childhood cancer research [5] - ALSF has grown into a global fundraising movement and is a leader in funding pediatric cancer research projects and providing support programs for families affected by childhood cancer [5]

[PART I. FINANCIAL INFORMATION](index=2&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) The financial statements present S&T Bancorp's financial position as of March 31, 2024, and its performance for the first quarter. Total assets slightly decreased to $9.54 billion from $9.55 billion at year-end 2023. Net income for Q1 2024 was $31.2 million, a decrease from $39.8 million in Q1 2023, primarily driven by lower net interest income and a higher provision for credit losses. Total shareholders' equity increased to $1.30 billion from $1.28 billion at year-end 2023 [Consolidated Balance Sheets](index=2&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$9,539,103** | **$9,551,526** | | Portfolio loans, net | $7,551,232 | $7,545,375 | | Goodwill | $373,424 | $373,424 | | **Total Deposits** | **$7,600,347** | **$7,521,769** | | Short-term borrowings | $285,000 | $415,000 | | **Total Liabilities** | **$8,244,029** | **$8,268,081** | | **Total Shareholders' Equity** | **$1,295,074** | **$1,283,445** | - Total assets saw a slight decrease of **$12.4 million**, while total deposits grew by **$78.6 million**, allowing for a **$130.0 million** reduction in short-term borrowings[8](index=8&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net Interest Income | $83,477 | $88,791 | | Provision for credit losses | $2,627 | $922 | | Total Noninterest Income | $12,830 | $13,190 | | Total Noninterest Expense | $54,520 | $51,699 | | **Net Income** | **$31,239** | **$39,799** | | **Earnings per share—diluted** | **$0.81** | **$1.02** | | Dividends declared per share | $0.33 | $0.32 | - Net income decreased by **21.5% YoY**, driven by a **6.0%** decline in Net Interest Income, a **185%** increase in the Provision for credit losses, and a **5.5%** rise in Noninterest Expense[10](index=10&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary (in thousands) | Activity | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $46,378 | $44,255 | | Net Cash Used in Investing Activities | ($8,338) | ($55,745) | | Net Cash (Used in) Provided by Financing Activities | ($64,190) | $45,633 | | **Net (decrease) increase in cash** | **($26,150)** | **$34,143** | - The net decrease in cash was primarily due to financing activities, including a **$130.0 million** net decrease in short-term borrowings and **$12.6 million** in dividend payments, which was partially offset by a net increase in deposits[13](index=13&type=chunk) [Notes to Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the adoption of new accounting standards, particularly ASU 2023-02 for tax credit investments, which resulted in a $1.0 million adjustment to retained earnings. The loan portfolio composition remained stable at $7.66 billion. Nonperforming loans increased to $33.2 million from $22.9 million at year-end. The Allowance for Credit Losses (ACL) decreased to $104.8 million, representing 1.37% of total loans. Derivative liabilities, primarily for hedging, stood at $91.0 million - Adopted ASU 2023-02 for tax credit investments, using the proportional amortization method (PAM). This resulted in a **$1.0 million** cumulative effect adjustment to retained earnings as of January 1, 2024[19](index=19&type=chunk)[70](index=70&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Commercial real estate | $2,699,782 | $2,659,135 | | Commercial and industrial | $1,410,517 | $1,436,183 | | Business banking | $1,307,155 | $1,360,765 | | Consumer real estate | $1,782,973 | $1,731,778 | | **Total Portfolio Loans** | **$7,656,034** | **$7,653,341** | Allowance for Credit Losses (ACL) Activity (in thousands) | Description | Three Months Ended Mar 31, 2024 | | :--- | :--- | | Balance at beginning of period | $107,966 | | Provision for credit losses on loans | $3,425 | | Net Charge-offs | ($6,589) | | **Balance at End of Period** | **$104,802** | - Total nonperforming assets increased to **$33.3 million** at March 31, 2024, from **$23.0 million** at December 31, 2023, primarily due to a rise in nonaccrual loans[45](index=45&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the $8.6 million year-over-year decrease in Q1 2024 net income to a $5.3 million decline in net interest income, a $1.7 million increase in the provision for credit losses, and a $2.8 million rise in noninterest expenses. The Net Interest Margin (NIM) compressed by 48 basis points to 3.84% due to higher funding costs. The financial condition remains stable with total assets at $9.5 billion. The loan portfolio was flat, while deposits grew by $78.6 million, reducing reliance on borrowings. Asset quality saw an increase in nonperforming loans, though capital levels remain strong and well above regulatory requirements - The company's strategic priorities for 2024 focus on its deposit franchise, core profitability, asset quality, and talent engagement[92](index=92&type=chunk) Key Profitability Metrics | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net income | $31.2M | $39.8M | | Diluted EPS | $0.81 | $1.02 | | Return on average assets | 1.32% | 1.77% | | Return on average tangible shareholders' equity (non-GAAP) | 13.85% | 19.61% | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q1 2024 operating results declined compared to Q1 2023. Net interest income fell by $5.3 million as the cost of interest-bearing liabilities rose 131 basis points, outpacing the 47 basis point increase in asset yields. The provision for credit losses increased by $1.7 million, driven by higher net charge-offs of $6.6 million. Noninterest income was stable, while noninterest expense grew by $2.8 million, mainly from higher salaries and technology investments. The effective tax rate increased to 20.2% from 19.4% - Net interest margin (NIM) on an FTE basis (non-GAAP) decreased by **48 basis points** to **3.84%** in Q1 2024 from **4.32%** in Q1 2023, primarily due to higher interest rates and a shift in funding mix to more expensive money market accounts and certificates of deposit[94](index=94&type=chunk)[100](index=100&type=chunk) - Net loan charge-offs were **$6.6 million** in Q1 2024, compared to net recoveries of **$5.1 million** in Q1 2023. The 2024 charge-offs were mainly related to two CRE relationships and one C&I relationship[106](index=106&type=chunk) - Noninterest expense increased by **$2.8 million YoY**, driven by a **$1.9 million** rise in salaries and benefits (due to merit increases and new talent) and a **$0.7 million** increase in data processing and IT costs[108](index=108&type=chunk) [Financial Condition](index=34&type=section&id=Financial%20Condition) As of March 31, 2024, the company's financial condition remained solid. Total assets were stable at $9.5 billion. The loan portfolio was flat at $7.7 billion, with a slight mix shift from commercial to consumer real estate loans. Total deposits grew by $78.6 million to $7.6 billion, enabling a $130.1 million reduction in total borrowings. Nonperforming assets increased to $33.3 million from $23.0 million at year-end, primarily from one large CRE loan moving to nonaccrual status. Capital ratios improved and remain well-capitalized, with a Common Equity Tier 1 ratio of 13.59% Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2024 | % of Total | | :--- | :--- | :--- | | Total Commercial Loans | $5,324,927 | 69.6% | | Total Consumer Loans | $2,331,107 | 30.4% | | **Total Portfolio Loans** | **$7,656,034** | **100.0%** | - Nonaccrual loans increased by **$10.3 million** to **$33.2 million**, mainly due to the addition of a **$16.4 million** CRE loan which was subsequently written down[129](index=129&type=chunk) - Total deposits increased by **$78.6 million** from year-end 2023, with customer deposits growing by **$77.8 million**, reflecting a focus on the deposit franchise[131](index=131&type=chunk)[132](index=132&type=chunk) Capital Ratios | Ratio | March 31, 2024 | Well-Capitalized Guideline | | :--- | :--- | :--- | | Tier 1 leverage | 11.30% | 5.00% | | Common equity tier 1 | 13.59% | 6.50% | | Total capital | 15.49% | 10.00% | [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company actively manages market risk, primarily interest rate risk, through its Asset and Liability Committee (ALCO). The balance sheet is asset-sensitive, meaning net interest income is projected to increase in a rising rate environment and decrease in a falling rate environment. As of March 31, 2024, a 100 basis point instantaneous increase in rates is estimated to increase pretax net interest income by 0.8% over 12 months, while a 100 basis point decrease would lower it by 4.2%. The company's risk exposure remains within its established policy limits - The company's balance sheet is positioned to be asset sensitive, meaning net interest income is expected to benefit from rising interest rates and be negatively impacted by falling rates[152](index=152&type=chunk) Interest Rate Sensitivity Analysis (Pretax Net Interest Income - 1-12 Months) | Change in Interest Rate (bps) | % Change at Mar 31, 2024 | % Change at Dec 31, 2023 | | :--- | :--- | :--- | | +200 | 2.6% | 1.2% | | +100 | 0.8% | 0.2% | | -100 | (4.2)% | (3.5)% | | -200 | (6.0)% | (4.2)% | [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2024. There were no material changes to the company's internal control over financial reporting during the first quarter of 2024 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective in all material respects as of the end of the period[156](index=156&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, these controls[157](index=157&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Other Information Summary](index=42&type=section&id=Other%20Information%20Summary) This section confirms there were no material changes to risk factors and no new legal proceedings. A new $50 million share repurchase plan was authorized in January 2024, replacing the previous plan, though no shares were repurchased during the first quarter. Other disclosures are standard and report no significant events - There have been no material changes to the risk factors previously disclosed in the 2023 Form 10-K[160](index=160&type=chunk) - On January 24, 2024, the Board of Directors authorized a new **$50 million** share repurchase plan, set to expire on May 30, 2025. No shares were purchased under this plan during the first quarter of 2024[161](index=161&type=chunk)

S&T Bancorp, Inc. (NASDAQ:STBA) Q1 2024 Earnings Conference Call April 18, 2024 1:00 PM ET Company Participants Mark Kochvar - CFO Chris McComish - CEO Dave Antolik - President Conference Call Participants Daniel Tamayo - Raymond James Kelly Motta - KBW Sharanjit Cheema - D.A. Davidson Companies Daniel Cardenas - Janney Montgomery Scott Matthew Breese - Stephens Inc. Operator Welcome to the S&T Bancorp First Quarter 2024 Conference Call. After the management’s remarks, there will be a question-and-answer ...

Income • Decrease in other related to a $3.3 million gain on OREO and $1.1 million of valuation adjustments in 4Q23 • Customer activity seasonally slower 1Q24 1Q24 vs 4Q23 1Q24 vs 1Q23 Noninterest Expense $54.5 ($1.7) $2.8 Expense • Salaries and benefits decreased $1.4 million mainly related to medical expense compared to 4Q23 ■ Noninterest Expense OEfficiency Ratio* Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures 10 Capital Common Equity Total Leverage Tier 1 Net I ...

| --- | --- | --- | --- | |--------------------------------------------------------------------------------------------------------------|-----------------|------------------|---------------| | | 2024 | 2023 | 2023 | | (dollars and shares in thousands) (1) Tangible Book Value (non-GAAP) | First Quarter | Fourth Quarter | First Quarter | | Total shareholders' equity Less: goodwill and other intangible assets, net of deferred | $1,295,074 | $1,283,445 | $1,227,795 | | tax liability | (376,396) | (376,631) | ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-12508 S&T BANCORP, INC. (Exact name of registrant as specified in its charter) Pennsylvania 25-1434426 (State or other jurisdiction of incorporation ...