Core Insights - S&T Bancorp reported revenue of $94.33 million for Q4 2024, marking an 8.6% year-over-year decline and a surprise of -2.95% compared to the Zacks Consensus Estimate of $97.2 million [1] - The EPS for the quarter was $0.86, down from $0.96 a year ago, but exceeded the consensus estimate of $0.78 by 10.26% [1] Financial Performance Metrics - The Efficiency Ratio (FTE) was reported at 56.9%, slightly above the estimated 56.7% [4] - The Net Interest Margin (FTE) (non-GAAP) remained stable at 3.8%, matching the analyst estimate [4] - Average interest-earning assets totaled $8.86 billion, slightly below the estimated $8.87 billion [4] - Net loan charge-offs were reported at 0%, better than the 0.2% average estimate [4] - Net interest income (FTE) (non-GAAP) was $83.92 million, exceeding the average estimate of $83.65 million [4] - Total Noninterest income was $11.07 million, significantly lower than the estimated $13.95 million [4] Stock Performance - Over the past month, S&T Bancorp shares returned -0.5%, while the Zacks S&P 500 composite increased by 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3]

Core Insights - S&T Bancorp reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.78 per share, but down from $0.96 per share a year ago, indicating an earnings surprise of 10.26% [1] - The company posted revenues of $94.33 million for the quarter, missing the Zacks Consensus Estimate by 2.95% and down from $103.17 million year-over-year [2] - The stock has underperformed the market, losing about 0.5% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.77 on revenues of $95.9 million, and for the current fiscal year, it is $3.02 on revenues of $388.1 million [7] - The estimate revisions trend for S&T Bancorp is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] Industry Context - The Banks - Northeast industry, to which S&T Bancorp belongs, is currently in the top 6% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q4 2024 was $33.1 million, or $0.86 per diluted share, compared to $32.6 million, or $0.85 per diluted share in Q3 2024, and $37.0 million, or $0.96 per diluted share in Q4 2023[1][2] - Full year 2024 net income was $131.3 million, down from $144.8 million in 2023, with EPS at $3.41 compared to $3.74 in 2023[2][12] - Net income for Q4 2024 was $33,065,000, down from $37,047,000 in Q4 2023, indicating a decrease of 10.7%[26] - Diluted earnings per share for Q4 2024 was $0.86, compared to $0.96 in Q4 2023, reflecting a decline of 10.4%[26] - Net income for the twelve months ended December 31, 2024, was $131,265,000, down from $144,781,000 in 2023, a decrease of 9.3%[27] Income and Revenue - Net interest income for Q4 2024 was $83.3 million, down from $84.5 million in Q3 2024, with a net interest margin (NIM) of 3.77%[7][10] - Noninterest income decreased by $0.8 million to $11.1 million in Q4 2024 compared to Q3 2024[9] - Total interest and dividend income for Q4 2024 was $127,879,000, a slight increase from $126,706,000 in Q4 2023[26] - Net interest income after provision for credit losses for Q4 2024 was $85,720,000, compared to $84,166,000 in Q4 2023, reflecting a year-over-year increase of 1.3%[26] - For the twelve months ended December 31, 2024, total interest and dividend income was $515,872,000, an increase of 7.9% from $477,901,000 in 2023[27] Assets and Loans - Total assets were $9.7 billion at December 31, 2024, compared to $9.6 billion at September 30, 2024[10] - Total portfolio loans increased by $53.9 million, or 2.79% annualized, compared to September 30, 2024[5][10] - Total portfolio loans reached $7,742,958 thousand in Q4 2024, a slight increase from $7,653,341 thousand in Q4 2023, reflecting a growth of 1.17%[28] - Total commercial loans totaled $5,281,300 thousand in Q4 2024, a decrease of 1.52% from $5,362,993 thousand in Q4 2023[28] - Consumer loans increased to $2,461,658 thousand in Q4 2024, up from $2,290,348 thousand in Q4 2023, reflecting a growth of 7.48%[28] Deposits and Equity - Total deposits increased by $128.3 million, including customer deposit growth of $78.3 million, or 4.15% annualized[5] - Total deposits rose to $7,783,117 thousand in Q4 2024, compared to $7,521,769 thousand in Q4 2023, marking an increase of 3.48%[28] - Total shareholders' equity increased to $1,380,294 thousand in Q4 2024, up from $1,283,445 thousand in Q4 2023, indicating a growth of 7.57%[28] - Average total shareholders' equity increased to $1,330,870 thousand in 2024 from $1,227,332 thousand in 2023[37] Efficiency and Ratios - The efficiency ratio (FTE) for Q4 2024 was 56.93%, compared to 54.12% in Q4 2023, indicating a decline in operational efficiency[26] - Return on average assets (ROA) for Q4 2024 was 1.37%, and return on average equity (ROE) was 9.57%[5] - Return on average assets for Q4 2024 was 1.37%, slightly down from 1.55% in Q4 2023[26] - Return on average tangible shareholders' equity (non-GAAP) was 13.25% in Q4 2024, down from 17.00% in Q4 2023[35] - The Tier 1 leverage ratio improved to 11.98% in Q4 2024, up from 11.21% in Q4 2023[28] Nonperforming Assets and Credit Losses - Nonperforming assets remained low at $27.9 million, or 0.36% of total loans plus other real estate owned (OREO), compared to 0.41% at September 30, 2024[5][8] - Total nonaccrual loans increased to $27,937 thousand in Q4 2024, representing 0.36% of total loans, compared to $31,889 thousand (0.41%) in Q3 2024 and $22,947 thousand (0.30%) in Q4 2023[33] - Net loan charge-offs for the twelve months ended December 31, 2024, were $8,280 thousand, a decrease from $13,182 thousand in 2023[34] - The allowance for credit losses decreased to $101,494 thousand in Q4 2024 from $107,966 thousand in Q4 2023, a reduction of 6.03%[28] Dividends - The Board of Directors approved a cash dividend of $0.34 per share, an increase of $0.01, or 3.03%, compared to the prior year[17] - The company declared dividends of $0.34 per share in Q4 2024, up from $0.33 in Q4 2023, reflecting a 3.0% increase[26]

Core Points - S&T Bancorp, Inc. has approved a cash dividend of $0.34 per share, marking an increase of $0.01 or 3.03% from the previous year's dividend of $0.33 [1] - The annualized yield based on the closing price of $38.16 on January 28, 2025, is 3.56% [1] - The dividend will be payable on February 27, 2025, to shareholders of record on February 13, 2025 [1] Company Overview - S&T Bancorp, Inc. is a bank holding company with total assets of $9.6 billion, headquartered in Indiana, Pennsylvania [2] - The company trades on the NASDAQ Global Select Market under the symbol STBA and its principal subsidiary, S&T Bank, was established in 1902 [2] - S&T Bank operates in Pennsylvania and Ohio [2]

Financial Performance - For the three months ended September 30, 2024, total interest and dividend income was $131.474 million, compared to $122.959 million for the same period in 2023, representing a year-over-year increase of 10.3%[106] - Net interest income for the three months ended September 30, 2024, was $84.477 million, down from $87.387 million in the same period of 2023, reflecting a decrease of 2.1%[106] - Net income for the three months ended September 30, 2024, was $32.6 million, a decrease of 2.6% from $33.5 million in the same period in 2023[111] - Earnings per share (diluted) for the three months ended September 30, 2024, was $0.85, down from $0.87 in the same period in 2023[111] - Noninterest income decreased by $0.3 million, or 2.47%, for the three months ended September 30, 2024, compared to the same period in 2023[112] - Noninterest expense increased by $2.6 million, or 4.86%, for the three months ended September 30, 2024, compared to the same period in 2023[112] Asset and Liability Management - As of September 30, 2024, S&T Bancorp, Inc. has total assets of $9.6 billion[110] - Total assets increased to $9,573,413,000, while total liabilities and shareholders' equity also rose to $9,573,413,000[118] - Total loans increased to $7.67 billion for the three months ended September 30, 2024, compared to $7.41 billion in the same period in 2023[115] - Total deposits increased by $133.1 million to $7.65 billion at September 30, 2024, compared to December 31, 2023, representing a growth of 1.8%[142] - Customer deposits grew by $333.4 million, or 4.7%, compared to December 31, 2023, driven by a focus on expanding the deposit franchise[143] - Total borrowings decreased by $165.2 million to $338.4 million at September 30, 2024, primarily due to strong growth in customer deposits[144] Credit Quality - The provision for credit losses decreased to a negative $0.5 million for the three months ended September 30, 2024, compared to $5.5 million for the same period in 2023[112] - Net loan charge-offs were $2.1 million for the three months ended September 30, 2024, compared to $3.7 million for the same period in 2023[123] - Nonaccrual loans increased to $31.9 million at September 30, 2024, compared to $22.9 million at December 31, 2023, primarily due to a $16.3 million commercial real estate relationship[140] - The allowance for credit losses (ACL) decreased to $104.3 million, or 1.36% of total portfolio loans, down from $108.0 million or 1.41% at December 31, 2023[139] Strategic Focus - The company aims to focus on deposit franchise, core profitability, asset quality, and talent engagement as strategic priorities for 2024 and beyond[110] - The bank's asset-sensitive balance sheet implies that in a rising interest rate environment, net interest income and operating income are expected to increase[158] Regulatory Capital - The leverage ratio improved to 11.70% at September 30, 2024, compared to 11.21% at December 31, 2023, exceeding the well-capitalized regulatory guideline of 5.00%[151] - The risk-based Common Equity Tier 1 ratio increased to 14.37% at September 30, 2024, compared to 13.37% at December 31, 2023, also above the well-capitalized regulatory guideline of 6.50%[151] Interest Rate Sensitivity - The rate shock analysis indicated a 2.0% increase in pretax net interest income over 1-12 months with a 400 basis point increase in interest rates as of September 30, 2024[156] - The economic value of equity (EVE) showed a decline of 32.3% with a 400 basis point increase in interest rates over the 1-12 month period[156] - The percentage change in pretax net interest income in the rates down scenarios showed a decline due to changes in the bond portfolio mix and upcoming maturities[158] Market Risk Management - The bank's market risk stress tests include sensitivity analyses and simulations to identify the impact of interest rate changes on earnings and capital[158] - The company performs a market risk stress test at least annually, which includes sensitivity analyses and simulations[158]

Core Insights - S&T Bank CEO Chris McComish has been awarded the 2024 Pittsburgh Business Times C-Suite award, recognizing his leadership and contributions to the bank's success [1][3][4] Company Performance - Under McComish's leadership since August 2021, S&T Bank has redefined its strategic direction, resulting in record earnings per share and net income for both 2022 and 2023 [4][5] - S&T Bancorp, Inc. is a $9.6 billion bank holding company headquartered in Indiana, Pennsylvania, with its principal subsidiary, S&T Bank, established in 1902 [4] Leadership and Community Involvement - The C-Suite award honors executives for their business acumen, leadership, and community involvement, with nominees selected from C-level executives in the Pittsburgh metro area [3] - McComish emphasized the collective efforts of the S&T Bank team in achieving their goals and the importance of community recognition [5] Recognition and Future Outlook - The award reflects the hard work of the entire S&T Bank team and the bank's commitment to a people-forward purpose [5] - S&T Bank's Board of Directors Chairman praised McComish for his inspiring leadership and dedication to community service, highlighting the bank's two record years of financial performance [5]

Earnings and Returns - Net income was $32.6 million[5] - Earnings per share (EPS) reached $0.85[5] - Return on Assets (ROA) stood at 1.35%[5] - Return on Equity (ROE) was 9.58%[5] - Return on Average Tangible Shareholders' Equity (ROTE) was 13.35%[5] Balance Sheet and Asset Quality - Customer deposits increased by $100.5 million, representing a 5.42% annualized growth[6] - Brokered CDs decreased by $126.0 million[6] - Borrowings were reduced by $25.0 million[6] - Net loan charge-offs were $2.1 million, or 0.11% of average loans (annualized)[6] - Nonperforming Assets (NPAs) decreased by 4 basis points to 0.41% of total portfolio loans plus OREO[6] Income Statement - Net Interest Income (NII) increased by $0.9 million[9] - Net Interest Margin (NIM) was 3.82%[5, 9] - Security losses amounted to $2.2 million due to bond portfolio repositioning[10] Capital - Tangible Common Equity (TCE) to Tangible Assets (TA) ratio increased to 10.86%[12, 16]

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 ...