S&T Bancorp(US:STBA)2025-11-06 21:54Financial Performance - For the three months ended September 30, 2025, net income was $34.962 million, an increase from $32.590 million in the same period of 2024, representing a growth of 7.3%[80] - The company reported earnings per share (diluted) of $0.91 for the three months ended September 30, 2025, compared to $0.85 for the same period in 2024[80] - Average tangible shareholders' equity was $1.087 billion for the three months ended September 30, 2025, compared to $977.999 million in the same period of 2024[77] - Return on average tangible shareholders' equity (non-GAAP) was 12.81% for the three months ended September 30, 2025, down from 13.35% in the same period of 2024[77] - Total assets increased to $9,717.7 million as of September 30, 2025, compared to $9,573.4 million as of September 30, 2024[1] - Total assets of the company reached $9.800 billion as of September 30, 2025, compared to $9.620 billion in the same period in 2024[90] Income and Expenses - Net interest income increased by $4.8 million, or 5.64%, for the three months ended September 30, 2025, compared to the same period in 2024[81] - Noninterest income increased by $1.9 million for the three months ended September 30, 2025, primarily due to no security losses in 2025 versus $2.2 million in losses in 2024[83] - Noninterest expense rose by $1.0 million, or 1.83%, for the three months ended September 30, 2025, with salaries and employee benefits increasing by $0.9 million due to merit increases and higher medical costs[84] - The effective tax rate decreased to 20.2% for the three months ended September 30, 2025, from 21.4% in the same period in 2024, attributed to increased low-income housing tax credits[85] Interest Income and Margin - The net interest margin (NIM) on a fully taxable equivalent (FTE) basis increased to 3.93% for the three months ended September 30, 2025, up from 3.82% in the same period of 2024[81] - Net interest income for the three months ended September 30, 2025, was $89.843 million, compared to $85.148 million for the same period in 2024, reflecting a net interest margin of 3.93% versus 3.82%[90] - Total interest and dividend income for the three months ended September 30, 2025, was $131.623 million, slightly up from $131.474 million in the same period of 2024[76] Loans and Credit Losses - The provision for credit losses increased to $2.8 million for the three months ended September 30, 2025, compared to a negative $0.4 million in the same period of 2024[82] - Net loan charge-offs were $2.4 million and $3.5 million for the three and nine months ended September 30, 2025, compared to $2.1 million and $8.3 million for the same periods in 2024[98] - Total portfolio loans increased by $238.0 million to $8.0 billion at September 30, 2025, with the commercial loan portfolio increasing by $158.8 million and the consumer loan portfolio increasing by $79.3 million[103] - The allowance for credit losses (ACL) decreased to $98.2 million, or 1.23% of total portfolio loans, down from $101.5 million, or 1.31%, at December 31, 2024[117] Deposits and Borrowings - Total deposits increased by $138.8 million to $7.9 billion at September 30, 2025, with customer deposits increasing by $163.6 million to $7.7 billion[105] - Average interest-bearing deposits increased to $5.779 billion for the three months ended September 30, 2025, with an average rate of 2.74%, compared to $5.555 billion and 3.04% in 2024[90] - Total borrowings decreased to $235.3 million at September 30, 2025, down from $250.3 million at December 31, 2024[123] Risk Management and Capital - The company implemented various ALCO strategies to manage interest rate and liquidity risks, aiming to maintain an acceptable level of net interest income[88] - Capital ratios for S&T Bancorp, Inc. exceeded well-capitalized regulatory guidelines, with total capital to risk-weighted assets at 16.63% as of September 30, 2025, compared to 16.49% at December 31, 2024[132] - The company continuously monitors interest rate risk through ALCO, which conducts rate shock analyses, EVE analyses, and stress tests[135] Strategic Priorities - The strategic priorities for 2025 and beyond include growing the deposit franchise and enhancing core profitability[79] - The company has filed a shelf registration statement allowing for the issuance of various securities for general corporate purposes, including possible acquisitions and stock repurchases[132]