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S&T Bancorp Inc. Announces Second Quarter 2024 Results

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S&T Bancorp (NASDAQ: STBA) reported net income of $34.4 million, or $0.89 per diluted share, for Q2 2024. Key highlights include:

- ROA of 1.45%, ROE of 10.61%, and ROTE of 15.01%
- Net interest margin increased to 3.85%
- Customer deposit growth of $155.1 million (8.63% annualized)
- Nonperforming assets at 0.45% of total loans plus OREO
- Total portfolio loans increased by $57.5 million (3.02% annualized)
- Total deposits grew by $80.0 million (4.23% annualized)

The bank maintained strong regulatory capital ratios and saw improvements in key financial metrics compared to Q1 2024.

Positive
  • Net income increased to $34.4 million from $31.2 million in Q1 2024
  • ROA improved to 1.45% from 1.32% in Q1 2024
  • Net interest margin increased to 3.85% from 3.84% in Q1 2024
  • Customer deposit growth of $155.1 million, or 8.63% annualized
  • Total portfolio loans increased by $57.5 million, or 3.02% annualized
  • Net loan recoveries of $0.4 million compared to net charge-offs of $6.6 million in Q1 2024
  • Noninterest income increased by $0.5 million to $13.3 million
Negative
  • Total interest-bearing deposit cost increased 15 basis points to 2.92%
  • Loss of $3.2 million related to repositioning of securities

Insights

In the second quarter of 2024, S&T Bancorp Inc. reported a slight increase in net income from $31.2 million in Q1 2024 to $34.4 million in Q2 2024. The net income per diluted share remained stable at $0.89, which is identical to the same quarter the previous year. This increase, though modest, demonstrates the bank's ability to grow revenue consistently over short periods.

Return on average assets (ROA) and return on average equity (ROE) showed positive trends, with ROA at 1.45% (up from 1.32%) and ROE at 10.61% (up from 9.74%). These metrics indicate improved efficiency and profitability, suggesting that S&T Bancorp is using its assets and equity more effectively than in previous quarters. The bank also improved its return on average tangible equity (ROTE) to 15.01%, indicating strong performance after accounting for intangible assets.

Customer deposit growth of $155.1 million and a reduction in brokered deposits by $75.1 million reflects a strategic shift towards more stable funding sources. However, nonperforming assets remain relatively low at 0.45%, slightly higher than Q1 2024 but still within a manageable range.

The slight increase in net interest margin (NIM) from 3.84% to 3.85% points to effective management of interest-bearing assets. Despite an increase in the cost of interest-bearing deposits, the overall borrowing cost decreased due to higher average deposit balances.

Overall, the results illustrate a steady performance with strategic shifts towards growing customer deposits and maintaining asset quality, which should appeal to investors focused on stability and gradual growth.

S&T Bancorp Inc.'s Q2 2024 performance shows a comprehensive snapshot of the bank's current standing and strategic movements. The increase in debit and credit card income by $0.5 million due to seasonality provides a positive outlook for noninterest income streams, which are essential for the diversified revenue model of banks.

The bank's asset quality remains strong, demonstrated by a decrease in the allowance for credit losses and net loan recoveries. Although the provision for credit losses decreased significantly from $2.6 million to $0.4 million, the overall credit environment appears stable, giving confidence to stakeholders regarding the bank's risk management practices.

The decision to reposition $49 million of securities into longer-duration, higher-yielding securities resulted in a $3.2 million loss. While this could be seen as a drawback in the short term, rebalancing the portfolio towards higher yields could be beneficial in the long term, particularly in a potentially rising interest rate environment.

The bank's continuous investment in infrastructure, as mentioned by their CEO, to support customer growth, along with strong regulatory capital positions, inspires investor confidence in its long-term strategic vision.

INDIANA, Pa., July 18, 2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 compared to net income of $31.2 million, or $0.81 per diluted share, for the first quarter of 2024 and net income of $34.5 million, or $0.89 per diluted share, for the second quarter of 2023.

Second Quarter of 2024 Highlights:

  • Solid return metrics with return on average assets (ROA) of 1.45%, return on average equity (ROE) of 10.61% and return on average tangible equity (ROTE) (non-GAAP) of 15.01% compared to ROA of 1.32%, ROE of 9.74% and ROTE (non-GAAP) of 13.85% for the first quarter of 2024.
  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.82% compared to 1.76% for the first quarter of 2024.
  • Net interest margin (NIM) (FTE) (non-GAAP) increased to 3.85% compared to 3.84% in the first quarter of 2024.
  • Customer deposit growth of $155.1 million, or 8.63% annualized, which was offset by lower brokered deposits of $75.1 million, resulting in total deposit growth of $80.0 million for the second quarter of 2024.
  • Nonperforming assets remain low at $35.0 million, or 0.45% of total loans plus other real estate owned, or OREO, compared to $33.3 million, or 0.44% of total loans plus OREO, at March 31, 2024.

"I am extremely proud of our second quarter financial results with solid return metrics and a strong net interest margin," said chief executive officer Chris McComish. "The investments we have made in our people, processes and products to grow our customer base are producing results. We remain focused on our strategic priorities of deepening our customer deposit franchise, strengthening asset quality and maintaining solid core profitability all driven by our highly talented and engaged team."

Net Interest Income

Net interest income increased $0.1 million to $83.6 million for the second quarter of 2024 compared to $83.5 million for the first quarter of 2024. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) increased one basis point to 3.85% compared to 3.84% in the prior quarter. The yield on total average loans increased four basis points to 6.29% compared to 6.25% in the first quarter of 2024. NIM continues to be positively impacted by a reduction in wholesale funding due to strong customer deposit growth. Total interest-bearing deposit cost increased 15 basis points to 2.92% compared to 2.77% in the first quarter of 2024. Higher interest-bearing deposit cost was primarily due to growth in higher costing average certificates of deposit, which increased $135.0 million compared to the first quarter of 2024. Average borrowings decreased $146.5 million to $350.4 million compared to $496.9 million in the first quarter of 2024 due to higher average deposit balances. Total borrowing cost decreased 13 basis points to 5.46% compared to 5.59% in the first quarter of 2024.

Asset Quality

The allowance for credit losses was $106.2 million, or 1.38% of total portfolio loans, as of June 30, 2024, compared to $104.8 million, or 1.37%, at March 31, 2024. The provision for credit losses was $0.4 million for the second quarter of 2024 compared to $2.6 million in the first quarter of 2024. The decrease in the provision for the second quarter was primarily due to net loan recoveries. Net loan recoveries were $0.4 million for the second quarter of 2024 compared to net loan charge-offs of $6.6 million in the first quarter of 2024. Nonperforming assets to total loans plus OREO remained low at 0.45% as of June 30, 2024 compared to 0.44% at March 31, 2024.

Noninterest Income and Expense

Noninterest income increased $0.5 million to $13.3 million in the second quarter of 2024 compared to $12.8 million in the first quarter of 2024. Debit and credit card income increased $0.5 million compared to the first quarter mainly due to seasonality. Other income increased $3.0 million primarily related to a fair value adjustment from the Visa exchange offer for Visa Class B-1 common stock during the second quarter of 2024. This was offset by a loss of $3.2 million during the second quarter related to the repositioning of $49.0 million of securities into longer duration higher-yielding securities.

Total noninterest expense decreased $0.9 million to $53.6 million compared to $54.5 million in the first quarter of 2024 mainly due to the timing of expenses. Salaries and employee benefits increased $0.9 million primarily related to higher medical costs compared to the first quarter of 2024.

Financial Condition

Total assets were $9.6 billion at June 30, 2024 compared to $9.5 billion at March 31, 2024. Total portfolio loans increased $57.5 million, or 3.02% annualized, to $7.7 billion compared to March 31, 2024. The increase in loans primarily related to growth in residential mortgages of $61.5 million compared to March 31, 2024. Total deposits increased $80.0 million, or 4.23% annualized, compared to March 31, 2024 with growth in customer deposits of $155.1 million, or 8.63% annualized, offset by lower brokered deposits of $75.1 million. DDA increased $17.7 million in the second quarter of 2024 compared to a decline of $33.0 million in the first quarter of 2024. Total borrowings decreased $10.1 million to $363.4 million compared to $373.5 million at March 31, 2024 primarily related to deposit growth.

S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.

Conference Call

S&T will host its second quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, July 18, 2024. To access the webcast, go to S&T Bancorp Inc.'s investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months.

About S&T Bancorp, Inc. and S&T Bank

S&T Bancorp, Inc. is a $9.6 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.

Forward-Looking Statements

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 other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," "believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; any remaining uncertainties with the transition from LIBOR as a reference rate; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and employees; general economic or business conditions, including the strength of regional economic conditions in our market area; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force, and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses and geopolitical tensions and conflicts between nations.

Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2023, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.

Non-GAAP Financial Measures

In addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2024


2024


2023



Second


First


Second


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME







Loans, including fees

$119,564


$118,577


$108,699


Investment Securities:







Taxable

8,761


8,595


7,806


Tax-exempt

168


193


215


Dividends

272


389


613


Total Interest and Dividend Income

128,765


127,754


117,333









INTEREST EXPENSE







Deposits

39,629


36,662


20,102


Borrowings, junior subordinated debt securities and other

5,542


7,615


9,108


Total Interest Expense

45,171


44,277


29,210









NET INTEREST INCOME

83,594


83,477


88,123


Provision for credit losses

422


2,627


10,529


Net Interest Income After Provision for Credit Losses

83,172


80,850


77,594









NONINTEREST INCOME







Net (loss) gain on sale of securities

(3,150)


3



Debit and credit card

4,713


4,235


4,645


Service charges on deposit accounts

4,089


3,828


3,928


Wealth management

2,995


3,042


3,185


Mortgage banking

254


277


289


Other

4,404


1,445


2,144


Total Noninterest Income

13,305


12,830


14,191









NONINTEREST EXPENSE







Salaries and employee benefits

30,388


29,512


25,391


Data processing and information technology

4,215


4,954


4,177


Occupancy

3,649


3,870


3,710


Furniture, equipment and software

3,382


3,472


3,192


Marketing

1,404


1,943


1,459


Other taxes

1,433


1,871


1,322


Professional services and legal

1,403


1,720


2,069


FDIC insurance

1,053


1,049


1,032


Other noninterest expense

6,681


6,129


7,281


Total Noninterest Expense

53,608


54,520


49,633


Income Before Taxes

42,869


39,160


42,152


Income tax expense

8,498


7,921


7,685


Net Income

$34,371


$31,239


$34,467









Per Share Data







Shares outstanding at end of period

38,256,204


38,233,280


38,241,918


Average shares outstanding - diluted

38,531,692


38,418,085


38,614,022


Diluted earnings per share

$0.89


$0.81


$0.89


Dividends declared per share

$0.33


$0.33


$0.32


Dividend yield (annualized)

3.95 %


4.11 %


4.71 %


Dividends paid to net income

36.97 %


40.39 %


35.98 %


Book value

$34.54


$33.87


$31.72


Tangible book value (1)

$24.71


$24.03


$21.85


Market value

$33.39


$32.08


$27.19









Profitability Ratios (Annualized)







Return on average assets

1.45 %


1.32 %


1.51 %


Return on average shareholders' equity

10.61 %


9.74 %


11.23 %


Return on average tangible shareholders' equity(2)

15.01 %


13.85 %


16.32 %


Pre-provision net revenue / average assets(3)

1.82 %


1.76 %


2.30 %


Efficiency ratio (FTE)(4)

54.94 %


56.21 %


48.21 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands, except per share data)



2024


2023


INTEREST AND DIVIDEND INCOME







Loans, including fees



$238,141


$211,423


Investment Securities:







Taxable



17,356


15,263


Tax-exempt



361


429


Dividends



661


1,121


Total Interest and Dividend Income



256,519


228,236









INTEREST EXPENSE







Deposits



76,291


35,005


Borrowings, junior subordinated debt securities and other



13,157


16,317


Total Interest Expense



89,448


51,322









NET INTEREST INCOME



167,071


176,914


Provision for credit losses



3,049


11,451


Net Interest Income After Provision for Credit Losses



164,022


165,463









NONINTEREST INCOME







Net (loss) gain on sale of securities



(3,147)



Debit and credit card



8,948


9,018


Service charges on deposit accounts



7,917


8,004


Wealth management



6,037


6,133


Mortgage banking



531


590


Other



5,849


3,636


Total Noninterest Income



26,135


27,381









NONINTEREST EXPENSE







Salaries and employee benefits



59,900


52,992


Data processing and information technology



9,169


8,435


Occupancy



7,519


7,545


Furniture, equipment and software



6,854


6,053


Professional services and legal



3,123


3,890


Other taxes



3,304


3,112


Marketing



3,347


3,312


FDIC insurance



2,102


2,044


Other noninterest expense



12,810


13,949


Total Noninterest Expense



108,128


101,332


Income Before Taxes



82,029


91,512


Income tax expense



16,419


17,246









Net Income



$65,610


$74,266









Per Share Data







Average shares outstanding - diluted



38,495,622


38,821,886


Diluted earnings per share



$1.70


$1.91


Dividends declared per share



$0.66


$0.64


Dividends paid to net income



38.60 %


33.48 %









Profitability Ratios (annualized)







Return on average assets



1.38 %


1.64 %


Return on average shareholders' equity



10.17 %


12.29 %


Return on average tangible shareholders' equity(5)



14.44 %


17.93 %


Pre-provision net revenue / average assets(6)



1.79 %


2.27 %


Efficiency ratio (FTE)(7)



55.57 %


49.31 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited



2024


2024


2023



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks

$246,310


$207,462


$227,867


Securities available for sale, at fair value

977,958


970,728


970,372


Loans held for sale

188



541


Commercial loans:







Commercial real estate

3,347,699


3,367,722


3,224,180


Commercial and industrial

1,611,183


1,597,119


1,639,332


Commercial construction

380,128


360,086


363,100


Total Commercial Loans

5,339,010


5,324,927


5,226,612


Consumer loans:







Residential mortgage

1,562,026


1,500,499


1,286,771


Home equity

642,225


645,780


645,897


Installment and other consumer

102,660


108,232


115,634


Consumer construction

67,649


76,596


44,697


Total Consumer Loans

2,374,560


2,331,107


2,092,999


Total Portfolio Loans

7,713,570


7,656,034


7,319,611


Allowance for credit losses

(106,150)


(104,802)


(105,757)


Total Portfolio Loans, Net

7,607,420


7,551,232


7,213,854


Federal Home Loan Bank and other restricted stock, at cost

12,056


13,703


31,271


Goodwill

373,424


373,424


373,424


Other assets

418,106


422,554


435,593


Total Assets

$9,635,462


$9,539,103


$9,252,922









LIABILITIES







Deposits:







Noninterest-bearing demand

$2,206,589


$2,188,927


$2,330,237


Interest-bearing demand

789,317


848,729


875,174


Money market

2,008,486


1,882,157


1,583,717


Savings

906,794


936,056


1,018,936


Certificates of deposit

1,769,150


1,744,478


1,333,146


Total Deposits

7,680,336


7,600,347


7,141,210









Borrowings:







Short-term borrowings

275,000


285,000


530,000


Long-term borrowings

39,034


39,156


39,513


Junior subordinated debt securities

49,388


49,373


54,483


Total Borrowings

363,422


373,529


623,996


Other liabilities

270,261


270,153


274,863


Total Liabilities

8,314,019


8,244,029


8,040,069









SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,321,443


1,295,074


1,212,853


Total Liabilities and Shareholders' Equity

$9,635,462


$9,539,103


$9,252,922









Capitalization Ratios







Shareholders' equity / assets

13.71 %


13.58 %


13.11 %


Tangible common equity / tangible assets(9)

10.21 %


10.03 %


9.42 %


Tier 1 leverage ratio

11.51 %


11.30 %


11.12 %


Common equity tier 1 capital

13.89 %


13.59 %


13.07 %


Risk-based capital - tier 1

14.21 %


13.91 %


13.47 %


Risk-based capital - total

15.79 %


15.49 %


15.06 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2024


2024


2023




Second


First


Second



(dollars in thousands)

Quarter


Quarter


Quarter



Net Interest Margin (FTE) (QTD Averages)








ASSETS








Interest-bearing deposits with banks

$143,521

5.47 %

$144,637

5.75 %

$132,900

5.61 %


Securities, at fair value

961,552

2.93 %

966,703

2.81 %

983,349

2.54 %


Loans held for sale

27

7.37 %

176

7.12 %

92

6.87 %


Commercial real estate

3,346,725

5.97 %

3,365,142

5.92 %

3,176,154

5.62 %


Commercial and industrial

1,606,173

7.38 %

1,626,633

7.36 %

1,684,944

7.13 %


Commercial construction

374,856

7.82 %

365,088

7.70 %

384,329

7.63 %


Total Commercial Loans

5,327,754

6.52 %

5,356,863

6.48 %

5,245,427

6.25 %


Residential mortgage

1,528,200

5.00 %

1,478,609

4.93 %

1,229,129

4.52 %


Home equity

644,545

7.01 %

648,265

6.99 %

647,070

6.59 %


Installment and other consumer

105,313

8.63 %

110,899

8.64 %

118,641

8.28 %


Consumer construction

72,899

5.97 %

69,676

5.60 %

42,879

4.26 %


Total Consumer Loans

2,350,957

5.75 %

2,307,449

5.71 %

2,037,719

5.39 %


Total Portfolio Loans

7,678,711

6.29 %

7,664,312

6.25 %

7,283,146

6.01 %


Total Loans

7,678,738

6.29 %

7,664,488

6.25 %

7,283,238

6.01 %


Total other earning assets

20,087

7.04 %

25,335

7.12 %

37,003

7.26 %


Total Interest-earning Assets

8,803,898

5.91 %

8,801,163

5.86 %

8,436,490

5.61 %


Noninterest-earning assets

756,552


737,742


740,299



Total Assets

$9,560,450


$9,538,905


$9,176,789











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand

$822,671

1.13 %

$829,095

1.12 %

$847,776

0.58 %


Money market

1,938,963

3.25 %

1,920,009

3.15 %

1,599,051

2.13 %


Savings

915,768

0.70 %

939,467

0.63 %

1,037,924

0.38 %


Certificates of deposit

1,774,037

4.55 %

1,639,059

4.37 %

1,235,496

3.06 %


Total Interest-bearing Deposits

5,451,439

2.92 %

5,327,630

2.77 %

4,720,247

1.71 %


Short-term borrowings

261,923

5.09 %

408,351

5.37 %

529,013

5.39 %


Long-term borrowings

39,099

4.53 %

39,221

4.53 %

32,980

4.14 %


Junior subordinated debt securities

49,379

8.18 %

49,364

8.23 %

54,474

7.62 %


Total Borrowings

350,401

5.46 %

496,936

5.59 %

616,467

5.52 %


Total Other Interest-bearing Liabilities

57,734

5.42 %

52,239

5.42 %

49,572

5.06 %


Total Interest-bearing Liabilities

5,859,574

3.10 %

5,876,805

3.03 %

5,386,286

2.18 %


Noninterest-bearing liabilities

2,397,606


2,371,586


2,559,888



Shareholders' equity

1,303,270


1,290,514


1,230,615



Total Liabilities and Shareholders' Equity

$9,560,450


$9,538,905


$9,176,789











Net Interest Margin(10)


3.85 %


3.84 %


4.22 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







Six Months Ended June 30,



(dollars in thousands)



2024


2023



Net Interest Margin (FTE) (YTD Averages)








ASSETS








Interest-bearing deposits with banks



$144,079

5.61 %

$136,679

4.90 %


Securities, at fair value



964,128

2.87 %

991,931

2.52 %


Loans held for sale



101

7.16 %

108

6.60 %


Commercial real estate



3,355,933

5.95 %

3,154,390

5.54 %


Commercial and industrial



1,616,403

7.37 %

1,697,956

6.94 %


Commercial construction



369,972

7.76 %

386,549

7.43 %


Total Commercial Loans



5,342,308

6.50 %

5,238,895

6.13 %


Residential mortgage



1,503,405

4.97 %

1,187,208

4.48 %


Home equity



646,405

7.00 %

648,718

6.44 %


Installment and other consumer



108,106

8.64 %

120,746

8.04 %


Consumer construction



71,288

5.79 %

44,366

4.47 %


Total Consumer Loans



2,329,204

5.73 %

2,001,038

5.33 %


Total Portfolio Loans



7,671,512

6.27 %

7,239,933

5.91 %


Total Loans



7,671,613

6.27 %

7,240,041

5.91 %


Total other earning assets



22,711

7.08 %

35,868

6.99 %


Total Interest-earning Assets



8,802,531

5.89 %

8,404,519

5.50 %


Noninterest-earning assets



747,147


747,464



Total Assets



$9,549,678


$9,151,983











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand



$825,883

1.13 %

$836,263

0.46 %


Money market



1,929,486

3.20 %

1,634,820

2.00 %


Savings



927,618

0.66 %

1,063,887

0.34 %


Certificates of deposit



1,706,548

4.46 %

1,144,484

2.66 %


Total Interest-bearing deposits



5,389,535

2.85 %

4,679,454

1.51 %


Short-term borrowings



335,137

5.26 %

490,554

5.18 %


Long-term borrowings



39,160

4.53 %

23,885

3.71 %


Junior subordinated debt securities



49,372

8.20 %

54,466

7.56 %


Total Borrowings



423,669

5.54 %

568,905

5.34 %


Total Other Interest-bearing Liabilities



54,986

5.42 %

52,107

4.81 %


Total Interest-bearing Liabilities



5,868,190

3.06 %

5,300,466

1.95 %


Noninterest-bearing liabilities



2,384,596


2,632,964



Shareholders' equity



1,296,892


1,218,553



Total Liabilities and Shareholders' Equity



$9,549,678


$9,151,983











Net Interest Margin(8)




3.84 %


4.27 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





2024


2024


2023




Second


First


Second



(dollars in thousands)

Quarter


Quarter


Quarter



Nonaccrual Loans








Commercial loans:


% Loans


% Loans


% Loans


Commercial real estate

$15,090

0.45 %

$18,082

0.54 %

$1,859

0.06 %


Commercial and industrial

7,075

0.44 %

3,092

0.19 %

4,842

0.30 %


Commercial construction

4,960

1.30 %

4,960

1.38 %

384

0.11 %


Total Nonaccrual Commercial Loans

27,125

0.51 %

26,134

0.49 %

7,085

0.14 %


Consumer loans:








Residential mortgage

4,698

0.30 %

4,160

0.28 %

4,167

0.32 %


Home equity

2,804

0.44 %

2,709

0.42 %

2,700

0.42 %


Installment and other consumer

230

0.22 %

206

0.19 %

367

0.32 %


Total Nonaccrual Consumer Loans

7,732

0.33 %

7,075

0.30 %

7,234

0.35 %


Total Nonaccrual Loans

$34,857

0.45 %

$33,209

0.43 %

$14,319

0.20 %


 


2024


2024


2023



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Loan (Recoveries) Charge-offs







Charge-offs

$845


$6,939


$12,222


Recoveries

(1,233)


(350)


(1,255)


Net Loan (Recoveries) Charge-offs

($388)


$6,589


$10,967









Net Loan (Recoveries) Charge-offs







Commercial loans:







Commercial real estate

($379)


$5,238


($1,030)


Commercial and industrial

(658)


950


11,296


Commercial construction




Total Commercial Loan (Recoveries) Charge-offs

(1,037)


6,188


10,266


Consumer loans:







Residential mortgage

33


7


(1)


Home equity

274


105


(12)


Installment and other consumer

342


289


714


Total Consumer Loan Charge-offs

649


401


701


Total Net Loan (Recoveries) Charge-offs

($388)


$6,589


$10,967


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands)



2024


2023


Loan Charge-offs (Recoveries)







Charge-offs



$7,784


$16,681


Recoveries



(1,583)


(10,829)


Net Loan Charge-offs



$6,201


$5,852









Net Loan Charge-offs (Recoveries)







Commercial loans:







Customer fraud



$—


($9,329)


Commercial real estate



4,859


(1,055)


Commercial and industrial



292


15,244


Commercial construction




(2)


Total Commercial Loan Charge-offs



5,151


4,858


Consumer loans:







Residential mortgage



40


8


Home equity



379


19


Installment and other consumer



631


967


Total Consumer Loan Charge-offs



1,050


994


Total Net Loan Charge-offs



$6,201


$5,852


 


2024


2024


2023



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonaccrual loans

$34,857


$33,209


$14,319


OREO

95


140


3,666


Total nonperforming assets

34,952


33,349


17,985


Nonaccrual loans / total loans

0.45 %


0.43 %


0.20 %


Nonperforming assets / total loans plus OREO

0.45 %


0.44 %


0.25 %


Allowance for credit losses / total portfolio loans

1.38 %


1.37 %


1.44 %


Allowance for credit losses / nonaccrual loans

305 %


316 %


739 %


Net loan (recoveries) charge-offs

($388)


$6,589


$10,967


Net loan (recoveries) charge-offs (annualized) / average loans

(0.02 %)


0.35 %


0.60 %


 




Six Months Ended June 30,


(dollars in thousands)



2024


2023


Asset Quality Data







Net loan charge-offs



$6,201


$5,852


Net loan charge-offs / average loans



0.16 %


0.16 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited


Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:



2024


2024


2023



Second


First


Second


(dollars and shares in thousands)

Quarter


Quarter


Quarter


(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$1,321,443


$1,295,074


$1,212,853


Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)


(376,396)


(377,144)


Tangible common equity (non-GAAP)

$945,289


$918,678


$835,709


Common shares outstanding

38,256


38,233


38,242


Tangible book value (non-GAAP)

$24.71


$24.03


$21.85


Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts.








(2) Return on Average Tangible Shareholders' Equity (non-GAAP)







Net income (annualized)

$138,239


$125,643


$138,248


Plus: amortization of intangibles (annualized), net of tax

921


944


1,046


Net income before amortization of intangibles (annualized)

$139,160


$126,587


$139,294









Average total shareholders' equity

$1,303,270


$1,290,514


$1,230,615


Less: average goodwill and other intangible assets, net of deferred tax liability

(376,285)


(376,518)


(377,280)


Average tangible equity (non-GAAP)

$926,985


$913,996


$853,335


Return on average tangible shareholders' equity (non-GAAP)

15.01 %


13.85 %


16.32 %


Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.








(3) Pre-provision Net Revenue / Average Assets (non-GAAP)







Income before taxes

$42,869


$39,160


$42,152


   Plus: Provision for credit losses

422


2,627


10,529


Total

$43,291


$41,787


$52,681


Total (annualized) (non-GAAP)

$174,115


$168,066


$211,302


Average assets

$9,560,450


$9,538,905


$9,176,789


Pre-provision Net Revenue / Average Assets (non-GAAP)

1.82 %


1.76 %


2.30 %


Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this to be
a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.








(4) Efficiency Ratio (non-GAAP)







Noninterest expense

$53,608


$54,520


$49,633









Net interest income per consolidated statements of net income

$83,594


$83,477


$88,123


Plus: taxable equivalent adjustment

682


692


639


Net interest income (FTE) (non-GAAP)

84,276


84,169


88,762


Noninterest income

13,305


12,830


14,191


Less: net gains on sale of securities

3,150


(3)



Less: Visa Class B-1 exchange

(3,156)




Net interest income (FTE) (non-GAAP) plus noninterest income

$97,575


$96,996


$102,953


Efficiency ratio (non-GAAP)

54.94 %


56.21 %


48.21 %


 The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which
ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited





Six Months Ended June 30,


(dollars in thousands)



2024


2023


(5) Return on Average Tangible Shareholders' Equity (non-GAAP)







Net income (annualized)



$131,941


$149,763


Plus: amortization of intangibles (annualized), net of tax



932


1,066


Net income before amortization of intangibles (annualized)



$132,873


$150,829









Average total shareholders' equity



$1,296,892


$1,218,553


Less: average goodwill and other intangible assets, net of deferred tax liability



(376,402)


(377,427)


Average tangible equity (non-GAAP)



$920,490


$841,126


Return on average tangible shareholders' equity (non-GAAP)



14.44 %


17.93 %


Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance.








(6) Pre-provision Net Revenue / Average Assets (non-GAAP)







Income before taxes



$82,029


$91,512


   Plus: Provision for credit losses



3,049


11,451


Total



$85,078


$102,963


Total (annualized) (non-GAAP)



$171,091


$207,632


Average assets



$9,549,678


$9,151,983


Pre-provision Net Revenue / Average Assets (non-GAAP)



1.79 %


2.27 %


Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses. We believe this
to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital.








(7) Efficiency Ratio (non-GAAP)







Noninterest expense



$108,128


$101,332









Net interest income per consolidated statements of net income



$167,071


$176,914


Plus: taxable equivalent adjustment



1,375


1,194


Net interest income (FTE) (non-GAAP)



168,446


178,108


Noninterest income



26,135


27,381


Less: net gains on sale of securities



3,147



Less: Visa Class B-1 exchange



(3,156)



Net interest income (FTE) (non-GAAP) plus noninterest income



$194,572


$205,489


Efficiency ratio (non-GAAP)



55.57 %


49.31 %


The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), which
ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice.








(8) Net Interest Margin Rate (FTE) (non-GAAP)







Interest income and dividend income



$256,519


$228,236


   Less: interest expense



(89,448)


(51,322)


Net interest income per consolidated statements of net income



167,071


176,914


   Plus: taxable equivalent adjustment



1,375


1,194


Net interest income (FTE) (non-GAAP)



$168,446


$178,108


Net interest income (FTE) (annualized)



$338,743


$359,166


Average interest-earning assets



$8,802,531


$8,404,519


Net interest margin - (FTE) (non-GAAP)



3.84 %


4.27 %


The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP).
The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received
deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry
measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 

Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures:



2024


2024


2023



Second


First


Second


(dollars in thousands)

Quarter


Quarter


Quarter


(9) Tangible Common Equity / Tangible Assets (non-GAAP)







Total shareholders' equity

$1,321,443


$1,295,074


$1,212,853


Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)


(376,396)


(377,144)


Tangible common equity (non-GAAP)

$945,289


$918,678


$835,709









Total assets

$9,635,462


$9,539,103


$9,252,922


Less: goodwill and other intangible assets, net of deferred tax liability

(376,154)


(376,396)


(377,144)


Tangible assets (non-GAAP)

$9,259,308


$9,162,707


$8,875,778


Tangible common equity to tangible assets (non-GAAP)

10.21 %


10.03 %


9.42 %


Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy.








(10) Net Interest Margin Rate (FTE) (non-GAAP)







Interest income and dividend income

$128,765


$127,754


$117,333


Less: interest expense

(45,171)


(44,277)


(29,210)


Net interest income per consolidated statements of net income

83,594


83,477


88,123


Plus: taxable equivalent adjustment

682


692


639


Net interest income (FTE) (non-GAAP)

$84,276


$84,169


$88,762


Net interest income (FTE) (annualized)

$338,956


$338,526


$356,022


Average interest-earning assets

$8,803,898


$8,801,163


$8,436,490


Net interest margin (FTE) (non-GAAP)

3.85 %


3.84 %


4.22 %


The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP).
The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received
deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry
measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/st-bancorp-inc-announces-second-quarter-2024-results-302199959.html

SOURCE S&T Bancorp, Inc.

FAQ

What was S&T Bancorp's (STBA) earnings per share in Q2 2024?

S&T Bancorp (STBA) reported earnings of $0.89 per diluted share in Q2 2024.

How much did S&T Bancorp's (STBA) customer deposits grow in Q2 2024?

S&T Bancorp's (STBA) customer deposits grew by $155.1 million, or 8.63% annualized, in Q2 2024.

What was S&T Bancorp's (STBA) net interest margin in Q2 2024?

S&T Bancorp's (STBA) net interest margin (NIM) increased to 3.85% in Q2 2024.

How did S&T Bancorp's (STBA) nonperforming assets ratio change in Q2 2024?

S&T Bancorp's (STBA) nonperforming assets to total loans plus OREO slightly increased to 0.45% as of June 30, 2024, compared to 0.44% at March 31, 2024.

S&T Bancorp Inc

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