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S&T Bancorp Inc. Announces Third Quarter 2024 Results

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S&T Bancorp reported net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024. Key highlights include:

- Return on average assets (ROA) of 1.35%
- Return on average equity (ROE) of 9.58%
- Net interest margin (NIM) remained strong at 3.82%
- Customer deposit growth of $100.5 million, or 5.42% annualized
- Allowance for credit losses to total portfolio loans was 1.36%

Net interest income increased to $84.5 million. The provision for credit losses improved with a negative $0.5 million provision. Noninterest income decreased to $11.9 million, while noninterest expense increased to $55.4 million. Total assets remained at $9.6 billion, with total portfolio loans at $7.7 billion and total deposits at $7.7 billion.

Positive
  • Strong return metrics with ROA of 1.35% and ROE of 9.58%
  • Net interest margin remained robust at 3.82%
  • Customer deposit growth of $100.5 million, or 5.42% annualized
  • Improvement in asset quality with nonperforming assets to total portfolio loans decreasing to 0.41%
  • Net interest income increased by $0.9 million to $84.5 million
Negative
  • Net income decreased to $32.6 million from $34.4 million in the previous quarter
  • Total deposits decreased by $25.5 million due to lower brokered deposits
  • Noninterest income decreased by $1.4 million to $11.9 million
  • Total noninterest expense increased by $1.8 million to $55.4 million
  • Commercial loan growth impacted by lower loan originations and higher payoffs

Insights

S&T Bancorp's Q3 2024 results show a solid financial performance with some mixed signals. The bank reported net income of $32.6 million, or $0.85 per diluted share, slightly down from Q2 2024 and Q3 2023. Key performance metrics remain strong:

  • ROA of 1.35%
  • ROE of 9.58%
  • ROTE (non-GAAP) of 13.35%
  • Net interest margin (NIM) at 3.82%

Customer deposit growth was positive at $100.5 million (5.42% annualized), offsetting a decrease in brokered deposits. The bank's asset quality improved, with nonperforming assets to total portfolio loans decreasing to 0.41%. However, there was a slight decrease in the allowance for credit losses to 1.36% of total portfolio loans.

The bank's capital position remains strong, positioning it well for potential market opportunities. While there are some pressures on noninterest income and expenses, the overall financial health appears stable, with the bank maintaining a balanced approach to growth and risk management.

From a market perspective, S&T Bancorp's Q3 2024 results present a mixed picture for investors. The slight decline in earnings per share (EPS) from $0.89 to $0.85 quarter-over-quarter might raise some concerns. However, the bank's ability to grow customer deposits in a challenging environment is noteworthy.

The reduction in brokered deposits and borrowings indicates a strategic shift towards more stable funding sources, which could be viewed positively by the market. The bank's consistent net interest margin of 3.82% in a fluctuating rate environment demonstrates resilience in its core business model.

Investors should pay attention to the following trends:

  • Continued pressure on noninterest income
  • Increasing noninterest expenses, particularly in technology investments
  • Slower commercial loan growth offset by consumer loan expansion

These factors suggest that while S&T Bancorp is maintaining stability, it may face challenges in significantly boosting profitability in the near term. The market's reaction will likely depend on how these results compare to peer banks and overall sector expectations.

INDIANA, Pa., Oct. 17, 2024 /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024 compared to net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024 and net income of $33.5 million, or $0.87 per diluted share, for the third quarter of 2023.

Third Quarter of 2024 Highlights:

  • Solid return metrics with return on average assets (ROA) of 1.35%, return on average equity (ROE) of 9.58% and return on average tangible equity (ROTE) (non-GAAP) of 13.35% compared to ROA of 1.45%, ROE of 10.61% and ROTE (non-GAAP) of 15.01% for the second quarter of 2024.
  • Pre-provision net revenue to average assets (PPNR) (non-GAAP) was 1.69% compared to 1.82% for the second quarter of 2024.
  • Net interest margin (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the second quarter of 2024.
  • Customer deposit growth of $100.5 million, or 5.42% annualized, was offset by lower brokered deposits of $126.0 million, resulting in a net decrease in total deposits of $25.5 million for the third quarter of 2024.
  • The allowance for credit losses to total portfolio loans was 1.36% compared to 1.38% at June 30, 2024.

"We are pleased to report strong third quarter results, highlighted by solid return metrics, continued improvement in asset quality and our fifth consecutive quarter of customer deposit growth. Our capital levels continue to build, positioning us to take advantage of market opportunities," said Chief Executive Officer Chris McComish. "These results would not be possible without the commitment and hard work of our teams and their focus on our people-forward purpose, which is moving our customers, employees and communities forward while delivering value to our shareholders."

Net Interest Income

Net interest income increased $0.9 million to $84.5 million for the third quarter of 2024 compared to $83.6 million for the second quarter of 2024. Net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) remained strong at 3.82% compared to 3.85% in the prior quarter. The yield on total average loans increased one basis point to 6.30% compared to 6.29% in the second quarter of 2024. Total interest-bearing deposit costs increased 12 basis points to 3.04% compared to 2.92% in the second quarter of 2024. Higher interest-bearing deposit costs were primarily due to growth in higher costing average money market accounts of $112.8 million and certificates of deposit of $51.5 million compared to the second quarter of 2024. Average borrowings decreased $58.1 million to $292.3 million compared to $350.4 million in the second quarter of 2024 primarily due to higher average deposit balances. Total borrowing costs decreased 9 basis points to 5.37% compared to 5.46% in the second quarter of 2024.

Asset Quality

The allowance for credit losses, or ACL, was $104.3 million, or 1.36% of total portfolio loans, at September 30, 2024, compared to $106.2 million, or 1.38%, at June 30, 2024. The provision for credit losses improved by $0.9 million with a negative $0.5 million provision for credit losses for the third quarter of 2024 compared to a $0.4 million provision for credit losses in the second quarter of 2024. The decrease in the provision for credit losses for the third quarter was mainly attributed to a lower level of ACL primarily related to a decrease in qualitative reserve due to improvement in asset quality. Net loan charge-offs were $2.1 million for the third quarter of 2024 compared to net loan recoveries of $0.4 million in the second quarter of 2024. Nonperforming assets to total portfolio loans plus other real estate owned decreased 4 basis points to 0.41% on September 30, 2024, compared to 0.45% at June 30, 2024.

Noninterest Income and Expense

Noninterest income decreased $1.4 million to $11.9 million in the third quarter of 2024 compared to $13.3 million in the prior quarter. The decrease in noninterest income was primarily due to changes in the value of Visa Class B-1 common stock and losses related to the repositioning of securities into longer duration, higher-yielding securities. During the third quarter of 2024, a $2.2 million securities repositioning loss was recognized, which was partially offset by a $0.2 million unrealized gain related to Visa Class B-1 common stock resulting in a $2.0 million net loss in noninterest income. This compares to a $3.2 million securities repositioning loss, which was offset by a $3.2 million unrealized gain from the Visa exchange offer for Class B-1 common stock resulting in no net impact to noninterest income during the second quarter of 2024.

Total noninterest expense increased $1.8 million to $55.4 million compared to $53.6 million in the second quarter of 2024. Salaries and employee benefits increased $0.9 million primarily related to higher incentive costs compared to the second quarter of 2024. Data processing and information technology increased $0.8 million compared to the second quarter of 2024 due to the timing of investments in technology.

Financial Condition

Total assets were $9.6 billion at both September 30, 2024, and June 30, 2024. Total portfolio loans were $7.7 billion at both September 30, 2024, and June 30, 2024. Total portfolio loans decreased $24.5 million with a $76.4 million decrease in commercial loans partially offset by consumer loan growth of $51.9 million compared to June 30, 2024. Commercial loan growth continues to be impacted by a lower level of loan originations and higher payoffs. Total deposits were $7.7 billion at both September 30, 2024, and June 30, 2024. Customer deposit growth continues to be strong allowing for a reduction in higher costing borrowings and brokered deposits. Customer deposit growth was $100.5 million, or 5.42% annualized, which was offset by lower brokered deposits of $126.0 million, resulting in a decrease in total deposits of $25.5 million for the third quarter of 2024. Total borrowings decreased $25.0 million to $338.4 million compared to $363.4 million at June 30, 2024.

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 third quarter 2024 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, October 17, 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



Third


Second


Third


(dollars in thousands, except per share data)

Quarter


Quarter


Quarter


INTEREST AND DIVIDEND INCOME







Loans, including fees

$120,907


$119,564


$114,258


Investment Securities:







Taxable

10,221


8,761


7,857


Tax-exempt

165


168


213


Dividends

181


272


631


Total Interest and Dividend Income

131,474


128,765


122,959









INTEREST EXPENSE







Deposits

42,493


39,629


24,910


Borrowings, junior subordinated debt securities and other

4,504


5,542


10,662


Total Interest Expense

46,997


45,171


35,572









NET INTEREST INCOME

84,477


83,594


87,387


Provision for credit losses

(454)


422


5,498


Net Interest Income After Provision for Credit Losses

84,931


83,172


81,889









NONINTEREST INCOME







Loss on sale of securities

(2,199)


(3,150)



Debit and credit card

4,688


4,713


4,690


Service charges on deposit accounts

4,181


4,089


4,060


Wealth management

3,071


2,995


3,003


Mortgage banking

355


254


294


Other

1,781


4,404


131


Total Noninterest Income

11,877


13,305


12,178









NONINTEREST EXPENSE







Salaries and employee benefits

31,274


30,388


27,521


Data processing and information technology

5,003


4,215


4,479


Occupancy

3,828


3,649


3,671


Furniture, equipment and software

3,410


3,382


3,125


Other taxes

1,874


1,433


1,831


Marketing

1,382


1,404


1,741


Professional services and legal

1,229


1,403


1,965


FDIC insurance

1,054


1,053


1,029


Other noninterest expense

6,311


6,681


7,437


Total Noninterest Expense

55,365


53,608


52,799


Income Before Taxes

41,443


42,869


41,268


Income tax expense

8,853


8,498


7,800


Net Income

$32,590


$34,371


$33,468









Per Share Data







Shares outstanding at end of period

38,259,730


38,256,204


38,244,309


Average shares outstanding - diluted

38,560,409


38,531,692


38,336,016


Diluted earnings per share

$0.85


$0.89


$0.87


Dividends declared per share

$0.33


$0.33


$0.32


Dividend yield (annualized)

3.15 %


3.95 %


4.73 %


Dividends paid to net income

38.77 %


36.97 %


36.55 %


Book value

$35.96


$34.54


$31.99


Tangible book value (1)

$26.13


$24.71


$22.14


Market value

$41.97


$33.39


$27.08









Profitability Ratios (Annualized)







Return on average assets

1.35 %


1.45 %


1.42 %


Return on average shareholders' equity

9.58 %


10.61 %


10.84 %


Return on average tangible shareholders' equity(2)

13.35 %


15.01 %


15.78 %


Pre-provision net revenue / average assets(3)

1.69 %


1.82 %


1.99 %


Efficiency ratio (FTE)(4)

55.88 %


54.94 %


52.67 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 





Nine Months Ended September 30,


(dollars in thousands, except per share data)



2024


2023


INTEREST AND DIVIDEND INCOME







Loans, including fees



$359,048


$325,681


Investment Securities:







Taxable



27,577


23,120


Tax-exempt



526


642


Dividends



842


1,752


Total Interest and Dividend Income



387,993


351,195









INTEREST EXPENSE







Deposits



118,784


59,915


Borrowings, junior subordinated debt securities and other



17,661


26,979


Total Interest Expense



136,445


86,894









NET INTEREST INCOME



251,548


264,301


Provision for credit losses



2,595


16,949


Net Interest Income After Provision for Credit Losses



248,953


247,352









NONINTEREST INCOME







Loss on sale of securities



(5,346)



Debit and credit card



13,636


13,708


Service charges on deposit accounts



12,098


12,064


Wealth management



9,108


9,136


Mortgage banking



886


884


Other



7,630


3,767


Total Noninterest Income



38,012


39,559









NONINTEREST EXPENSE







Salaries and employee benefits



91,174


80,513


Data processing and information technology



14,172


12,914


Occupancy



11,347


11,216


Furniture, equipment and software



10,264


9,178


Professional services and legal



5,178


4,943


Other taxes



4,729


5,053


Marketing



4,352


5,855


FDIC insurance



3,156


3,073


Other noninterest expense



19,121


21,386


Total Noninterest Expense



163,493


154,131


Income Before Taxes



123,472


132,780


Income tax expense



25,272


25,046









Net Income



$98,200


$107,734









Per Share Data







Average shares outstanding - diluted



38,563,721


38,668,964


Diluted earnings per share



$2.55


$2.78


Dividends declared per share



$0.99


$0.96


Dividends paid to net income



38.66 %


34.43 %









Profitability Ratios (annualized)







Return on average assets



1.37 %


1.56 %


Return on average shareholders' equity



9.97 %


11.80 %


Return on average tangible shareholders' equity(5)



14.06 %


17.20 %


Pre-provision net revenue / average assets(6)



1.76 %


2.17 %


Efficiency ratio (FTE)(7)



55.68 %


50.41 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 



2024


2024


2023



Third


Second


Third


(dollars in thousands)

Quarter


Quarter


Quarter


ASSETS







Cash and due from banks

$228,090


$246,310


$238,453


Securities available for sale, at fair value

1,011,312


977,958


955,262


Loans held for sale

307


188


257


Commercial loans:







Commercial real estate

3,327,895


3,347,699


3,286,272


Commercial and industrial

1,548,172


1,611,183


1,635,354


Commercial construction

386,509


380,128


388,470


Total Commercial Loans

5,262,576


5,339,010


5,310,096


Consumer loans:







Residential mortgage

1,612,629


1,562,026


1,384,133


Home equity

645,966


642,225


649,122


Installment and other consumer

105,235


102,660


115,379


Consumer construction

62,648


67,649


57,188


Total Consumer Loans

2,426,478


2,374,560


2,205,822


Total Portfolio Loans

7,689,054


7,713,570


7,515,918


Allowance for credit losses

(104,321)


(106,150)


(108,206)


Total Portfolio Loans, Net

7,584,733


7,607,420


7,407,712


Federal Home Loan Bank and other restricted stock, at cost

11,484


12,056


38,576


Goodwill

373,424


373,424


373,424


Other assets

374,597


418,106


452,393


Total Assets

$9,583,947


$9,635,462


$9,466,077









LIABILITIES







Deposits:







Noninterest-bearing demand

$2,157,537


$2,206,589


$2,276,009


Interest-bearing demand

773,224


789,317


868,624


Money market

2,074,095


2,008,486


1,615,445


Savings

879,653


906,794


974,940


Certificates of deposit

1,770,332


1,769,150


1,487,879


Total Deposits

7,654,841


7,680,336


7,222,897









Borrowings:







Short-term borrowings

225,000


275,000


630,000


Long-term borrowings

64,015


39,034


39,396


Junior subordinated debt securities

49,403


49,388


49,343


Total Borrowings

338,418


363,422


718,739


Other liabilities

214,934


270,261


300,909


Total Liabilities

8,208,193


8,314,019


8,242,545









SHAREHOLDERS' EQUITY







Total Shareholders' Equity

1,375,754


1,321,443


1,223,532


Total Liabilities and Shareholders' Equity

$9,583,947


$9,635,462


$9,466,077









Capitalization Ratios







Shareholders' equity / assets

14.35 %


13.71 %


12.93 %


Tangible common equity / tangible assets(8)

10.86 %


10.21 %


9.31 %


Tier 1 leverage ratio

11.70 %


11.51 %


11.12 %


Common equity tier 1 capital

14.37 %


13.89 %


13.11 %


Risk-based capital - tier 1

14.70 %


14.21 %


13.43 %


Risk-based capital - total

16.28 %


15.79 %


15.01 %









 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 




2024


2024


2023




Third


Second


Third



(dollars in thousands)

Quarter


Quarter


Quarter



Net Interest Margin (FTE) (QTD Averages)








ASSETS








Interest-bearing deposits with banks

$200,301

5.44 %

$143,521

5.47 %

$144,303

4.93 %


Securities, at fair value

990,375

3.12 %

961,552

2.93 %

964,928

2.64 %


Loans held for sale

20

6.77 %

27

7.37 %

207

6.70 %


Commercial real estate

3,298,619

5.96 %

3,346,725

5.97 %

3,243,056

5.83 %


Commercial and industrial

1,566,145

7.39 %

1,606,173

7.38 %

1,646,572

7.22 %


Commercial construction

406,321

7.82 %

374,856

7.82 %

373,111

7.80 %


Total Commercial Loans

5,271,085

6.53 %

5,327,754

6.52 %

5,262,739

6.41 %


Residential mortgage

1,589,791

5.11 %

1,528,200

5.00 %

1,332,913

4.66 %


Home equity

642,384

7.01 %

644,545

7.01 %

645,949

6.80 %


Installment and other consumer

103,390

8.65 %

105,313

8.63 %

115,111

8.52 %


Consumer construction

62,998

6.42 %

72,899

5.97 %

52,783

4.89 %


Total Consumer Loans

2,398,563

5.81 %

2,350,957

5.75 %

2,146,756

5.52 %


Total Portfolio Loans

7,669,648

6.30 %

7,678,711

6.29 %

7,409,495

6.15 %


Total Loans

7,669,668

6.30 %

7,678,738

6.29 %

7,409,702

6.15 %


Total other earning assets

15,413

6.21 %

20,087

7.04 %

42,645

6.97 %


Total Interest-earning Assets

8,875,757

5.93 %

8,803,898

5.91 %

8,561,578

5.74 %


Noninterest-earning assets

744,609


756,552


763,243



Total Assets

$9,620,366


$9,560,450


$9,324,821











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand

$785,854

1.11 %

$822,671

1.13 %

$868,782

0.91 %


Money market

2,051,754

3.40 %

1,938,963

3.25 %

1,595,964

2.34 %


Savings

891,952

0.75 %

915,768

0.70 %

996,999

0.47 %


Certificates of deposit

1,825,530

4.60 %

1,774,037

4.55 %

1,382,532

3.54 %


Total Interest-bearing Deposits

5,555,090

3.04 %

5,451,439

2.92 %

4,844,277

2.04 %


Short-term borrowings

202,500

4.88 %

261,923

5.09 %

585,196

5.65 %


Long-term borrowings

40,383

4.47 %

39,099

4.53 %

39,458

4.47 %


Junior subordinated debt securities

49,394

8.11 %

49,379

8.18 %

50,649

8.16 %


Total Borrowings

292,277

5.37 %

350,401

5.46 %

675,303

5.77 %


Total Other Interest-bearing Liabilities

41,038

5.36 %

57,734

5.42 %

62,584

5.33 %


Total Interest-bearing Liabilities

5,888,405

3.17 %

5,859,574

3.10 %

5,582,164

2.53 %


Noninterest-bearing liabilities

2,377,914


2,397,606


2,517,752



Shareholders' equity

1,354,047


1,303,270


1,224,905



Total Liabilities and Shareholders' Equity

$9,620,366


$9,560,450


$9,324,821











Net Interest Margin(9)


3.82 %


3.85 %


4.09 %










 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







Nine Months Ended September 30,



(dollars in thousands)



2024


2023



Net Interest Margin (FTE) (YTD Averages)








ASSETS








Interest-bearing deposits with banks



$162,957

5.54 %

$139,248

4.91 %


Securities, at fair value



972,941

2.96 %

982,831

2.56 %


Loans held for sale



74

7.14 %

142

6.63 %


Commercial real estate



3,336,689

5.95 %

3,184,270

5.64 %


Commercial and industrial



1,599,528

7.37 %

1,680,640

7.03 %


Commercial construction



382,177

7.78 %

382,020

7.55 %


Total Commercial Loans



5,318,394

6.51 %

5,246,930

6.23 %


Residential mortgage



1,532,410

5.02 %

1,236,310

4.54 %


Home equity



645,055

7.01 %

647,785

6.56 %


Installment and other consumer



106,523

8.64 %

118,846

8.20 %


Consumer construction



68,504

5.98 %

47,203

4.63 %


Total Consumer Loans



2,352,492

5.75 %

2,050,144

5.39 %


Total Portfolio Loans



7,670,886

6.28 %

7,297,074

5.99 %


Total Loans



7,670,960

6.28 %

7,297,216

5.99 %


Total other earning assets



20,260

6.87 %

38,152

6.98 %


Total Interest-earning Assets



8,827,118

5.90 %

8,457,447

5.58 %


Noninterest-earning assets



746,295


752,326



Total Assets



$9,573,413


$9,209,773











LIABILITIES AND SHAREHOLDERS' EQUITY








Interest-bearing demand



$812,443

1.12 %

$847,222

0.61 %


Money market



1,970,539

3.27 %

1,621,726

2.11 %


Savings



915,643

0.69 %

1,041,346

0.38 %


Certificates of deposit



1,746,498

4.51 %

1,224,704

2.99 %


Total Interest-bearing deposits



5,445,123

2.91 %

4,734,998

1.69 %


Short-term borrowings



290,602

5.17 %

522,448

5.36 %


Long-term borrowings



39,571

4.51 %

29,133

4.05 %


Junior subordinated debt securities



49,379

8.17 %

53,180

7.75 %


Total Borrowings



379,552

5.49 %

604,761

5.50 %


Total Other Interest-bearing Liabilities



50,303

5.40 %

55,637

5.01 %


Total Interest-bearing Liabilities



5,874,978

3.10 %

5,395,396

2.15 %


Noninterest-bearing liabilities



2,382,352


2,593,683



Shareholders' equity



1,316,083


1,220,694



Total Liabilities and Shareholders' Equity



$9,573,413


$9,209,773











Net Interest Margin(10)




3.84 %


4.21 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 




2024


2024


2023




Third


Second


Third



(dollars in thousands)

Quarter


Quarter


Quarter



Nonaccrual Loans








Commercial loans:


% Loans


% Loans


% Loans


Commercial real estate

$14,877

0.45 %

$15,090

0.45 %

$1,735

0.05 %


Commercial and industrial

5,789

0.37 %

7,075

0.44 %

3,468

0.21 %


Commercial construction

3,416

0.88 %

4,960

1.30 %

384

0.10 %


Total Nonaccrual Commercial Loans

24,082

0.46 %

27,125

0.51 %

5,587

0.11 %


Consumer loans:








Residential mortgage

4,478

0.28 %

4,698

0.30 %

4,139

0.30 %


Home equity

3,065

0.47 %

2,804

0.44 %

2,617

0.40 %


Installment and other consumer

264

0.25 %

230

0.22 %

334

0.29 %


Total Nonaccrual Consumer Loans

7,807

0.32 %

7,732

0.33 %

7,090

0.32 %


Total Nonaccrual Loans

$31,889

0.41 %

$34,857

0.45 %

$12,677

0.17 %




 


2024


2024


2023



Third


Second


Third


(dollars in thousands)

Quarter


Quarter


Quarter


Loan Charge-offs (Recoveries)







Charge-offs

$2,440


$845


$4,077


Recoveries

(302)


(1,233)


(367)


Net Loan Charge-offs (Recoveries)

$2,138


($388)


$3,710









Net Loan Charge-offs (Recoveries)







Commercial loans:







Commercial real estate

$47


($379)


($13)


Commercial and industrial

1,256


(658)


3,389


Commercial construction




Total Commercial Loan Charge-offs (Recoveries)

1,303


(1,037)


3,376


Consumer loans:







Residential mortgage

(5)


33


(11)


Home equity

580


274


71


Installment and other consumer

260


342


274


Total Consumer Loan Charge-offs

835


649


334


Total Net Loan Charge-offs (Recoveries)

$2,138


($388)


$3,710


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited







Nine Months Ended September 30,


(dollars in thousands)



2024


2023


Loan Charge-offs (Recoveries)







Charge-offs



$10,224


$20,758


Recoveries



(1,885)


(11,196)


Net Loan Charge-offs



$8,339


$9,562









Net Loan Charge-offs (Recoveries)







Commercial loans:







Customer fraud



$—


($9,329)


Commercial real estate



4,906


(1,068)


Commercial and industrial



1,547


18,633


Commercial construction




(2)


Total Commercial Loan Charge-offs



6,453


8,234


Consumer loans:







Residential mortgage



35


(3)


Home equity



959


90


Installment and other consumer



892


1,241


Total Consumer Loan Charge-offs



1,886


1,328


Total Net Loan Charge-offs



$8,339


$9,562









 


2024


2024


2023



Third


Second


Third


(dollars in thousands)

Quarter


Quarter


Quarter


Asset Quality Data







Nonaccrual loans

$31,889


$34,857


$12,677


OREO


95


3,715


Total nonperforming assets

31,889


34,952


16,392


Nonaccrual loans / total loans

0.41 %


0.45 %


0.17 %


Nonperforming assets / total loans plus OREO

0.41 %


0.45 %


0.22 %


Allowance for credit losses / total portfolio loans

1.36 %


1.38 %


1.44 %


Allowance for credit losses / nonaccrual loans

327 %


305 %


854 %


Net loan charge-offs (recoveries)

$2,138


($388)


$3,710


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

0.11 %


(0.02 %)


0.20 %


 




Nine Months Ended September 30,


(dollars in thousands)



2024


2023


Asset Quality Data







Net loan charge-offs



$8,339


$9,562


Net loan charge-offs (annualized) / average loans



0.15 %


0.18 %


 

S&T Bancorp, Inc.

Consolidated Selected Financial Data

Unaudited

 


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





2024


2024


2023



Third


Second


Third


(dollars and shares in thousands)

Quarter


Quarter


Quarter


(1) Tangible Book Value (non-GAAP)







Total shareholders' equity

$1,375,754


$1,321,443


$1,223,532


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

(375,931)


(376,154)


(376,883)


Tangible common equity (non-GAAP)

$999,823


$945,289


$846,649


Common shares outstanding

38,260


38,256


38,244


Tangible book value (non-GAAP)

$26.13


$24.71


$22.14


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)

$129,652


$138,239


$132,779


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

893


921


1,034


Net income before amortization of intangibles (annualized)

$130,545


$139,160


$133,813









Average total shareholders' equity

$1,354,047


$1,303,270


$1,224,905


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

(376,048)


(376,285)


(377,020)


Average tangible equity (non-GAAP)

$977,999


$926,985


$847,885


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

13.35 %


15.01 %


15.78 %


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

$41,443


$42,869


$41,268


       Plus: Provision for credit losses

(454)


422


5,498


Total

$40,989


$43,291


$46,766


Total (annualized) (non-GAAP)

$163,065


$174,115


$185,538


Average assets

$9,620,366


$9,560,450


$9,324,821


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

1.69 %


1.82 %


1.99 %


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

$55,365


$53,608


$52,799









Net interest income per consolidated statements of net income

$84,477


$83,594


$87,387


Plus: taxable equivalent adjustment

671


682


674


Net interest income (FTE) (non-GAAP)

85,148


84,276


88,061


Noninterest income

11,877


13,305


12,178


Less: net losses (gains) on sale of securities

2,199


3,150



Less: Visa Class B-1 exchange

(150)


(3,156)



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

$99,074


$97,575


$100,239


Efficiency ratio (non-GAAP)

55.88 %


54.94 %


52.67 %


 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

 





Nine Months Ended September 30,


(dollars in thousands)



2024


2023


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







Net income (annualized)



$131,172


$144,040


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



919


1,055


Net income before amortization of intangibles (annualized)



$132,091


$145,095









Average total shareholders' equity



$1,316,083


$1,220,694


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



(376,283)


(377,290)


Average tangible equity (non-GAAP)



$939,800


$843,404


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



14.06 %


17.20 %


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



$123,472


$132,780


       Plus: Provision for credit losses



2,595


16,949


Total



$126,067


$149,729


Total (annualized) (non-GAAP)



$168,396


$200,186


Average assets



$9,573,413


$9,209,773


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



1.76 %


2.17 %


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



$163,493


$154,131









Net interest income per consolidated statements of net income



$251,548


$264,301


Plus: taxable equivalent adjustment



2,045


1,868


Net interest income (FTE) (non-GAAP)



253,593


266,169


Noninterest income



38,012


39,559


Less: net losses (gains) on sale of securities



5,346



Less: Visa Class B-1 exchange



(3,306)



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



$293,645


$305,728


Efficiency ratio (non-GAAP)



55.68 %


50.41 %


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.









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







Interest income and dividend income



$387,993


$351,195


      Less: interest expense



(136,445)


(86,894)


Net interest income per consolidated statements of net income



251,548


264,301


      Plus: taxable equivalent adjustment



2,045


1,868


Net interest income (FTE) (non-GAAP)



$253,593


$266,169


Net interest income (FTE) (annualized)



$338,741


$355,867


Average interest-earning assets



$8,827,118


$8,457,447


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



3.84 %


4.21 %


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



Third


Second


Third


(dollars in thousands)

Quarter


Quarter


Quarter


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







Total shareholders' equity

$1,375,754


$1,321,443


$1,223,532


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

(375,931)


(376,154)


(376,883)


Tangible common equity (non-GAAP)

$999,823


$945,289


$846,649









Total assets

$9,583,947


$9,635,462


$9,466,077


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

(375,931)


(376,154)


(376,883)


Tangible assets (non-GAAP)

$9,208,016


$9,259,308


$9,089,194


Tangible common equity to tangible assets (non-GAAP)

10.86 %


10.21 %


9.31 %


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









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







Interest income and dividend income

$131,474


$128,765


$122,959


Less: interest expense

(46,997)


(45,171)


(35,572)


Net interest income per consolidated statements of net income

84,477


83,594


87,387


Plus: taxable equivalent adjustment

671


682


674


Net interest income (FTE) (non-GAAP)

$85,148


$84,276


$88,061


Net interest income (FTE) (annualized)

$338,741


$338,956


$349,373


Average interest-earning assets

$8,875,757


$8,803,898


$8,561,578


Net interest margin (FTE) (non-GAAP)

3.82 %


3.85 %


4.09 %


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-third-quarter-2024-results-302278527.html

SOURCE S&T Bancorp, Inc.

FAQ

What was S&T Bancorp's (STBA) net income for Q3 2024?

S&T Bancorp reported net income of $32.6 million, or $0.85 per diluted share, for the third quarter of 2024.

How did S&T Bancorp's (STBA) customer deposits perform in Q3 2024?

S&T Bancorp experienced customer deposit growth of $100.5 million, or 5.42% annualized, in the third quarter of 2024.

What was S&T Bancorp's (STBA) net interest margin in Q3 2024?

S&T Bancorp's net interest margin (NIM) remained strong at 3.82% in the third quarter of 2024.

How did S&T Bancorp's (STBA) asset quality change in Q3 2024?

S&T Bancorp's asset quality improved, with nonperforming assets to total portfolio loans plus other real estate owned decreasing to 0.41% from 0.45% in the previous quarter.

S&T Bancorp Inc

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