#USA #financial results #Indiana #ST Bancorp #ST Bank

S&T Bancorp, Inc. Reports Q1 2025 Financial Results

On April 24, 2025, S&T Bancorp, Inc. (NASDAQ: STBA), the parent company of S&T Bank, announced its financial results for the first quarter of 2025, highlighting a net income of $33.4 million, equating to $0.87 per diluted share. When compared with the previous quarter's net income of $33.1 million ($0.86 per diluted share) and the same period last year, which saw a lower net income of $31.2 million ($0.81 per diluted share), this marks a significant improvement in financial performance.

Financial Highlights of Q1 2025

In terms of key performance indicators, S&T Bancorp demonstrated commendable metrics: a return on average assets (ROA) of 1.41%, a return on average equity (ROE) of 9.67%, and a return on tangible equity (ROTE) of 13.29% (non-GAAP). These figures reflect increases from the previous quarter's ROA of 1.37%, ROE of 9.57%, and ROTE of 13.25%. The pre-provision net revenue to average assets also showed a slight rise to 1.73% from the prior quarter's 1.72%.

The net interest margin (NIM), a critical measure for bank profitability, increased by 4 basis points to 3.81%, up from 3.77% in the last quarter of 2024. Supporting this positive trajectory, total loans climbed by $93.4 million, or an annualized increase of 4.89%. Customer deposits surged by $109.8 million, reflecting a healthy growth rate of 7.23% annualized, though this was slightly offset by a reduction in brokered deposits.

Asset Quality Remains Strong

The quality of S&T Bancorp's assets continued to exhibit robustness. The company reported net recoveries and an impressive negative provision for credit losses of $3.0 million, an improvement from $2.5 million in the previous quarter. Nonperforming assets decreased by $5.5 million, bringing the total to $22.4 million (0.29% of total loans and other real estate owned), compared to $27.9 million (0.36%) at the end of December 2024.

CEO Chris McComish expressed satisfaction with the results, crediting solid customer deposit and loan growth, an increase in net interest margin, and the excellent quality management of assets. He stated, “Our focus remains firmly in support of our customers while executing on our growth-oriented business drivers.”

Net Interest Income and Asset Composition

For the first quarter, net interest income remained steady at $83.3 million, unchanged from the fourth quarter of 2024. However, average yield on total interest-earning assets did see an 8 basis point decline, adjusting to 5.70%, influenced by lower interest rates. The total average cost of interest-bearing liabilities fell to 2.87%, reflecting reduced deposit costs and a notable drop in higher-cost borrowings.

S&T Bancorp's total assets stood firm at $9.7 billion, marking stability since the end of 2024. Notably, there was a considerable increase in commercial loans, with commercial real estate lending growing by $74.2 million.

Conference Call

Following the release, S&T Bancorp will hold its quarterly earnings conference call live via webcast at 1:00 PM ET on April 24, 2025. Investors and interested parties can access the webcast through the company's Investor Relations webpage. The event will also be archived for a year for those unable to join live.

About S&T Bancorp, Inc.

S&T Bancorp, Inc., founded in 1902, operates as a $9.7 billion bank holding company based in Indiana, Pennsylvania. Its flagship subsidiary, S&T Bank, caters to clients across Pennsylvania and Ohio with a commitment to delivering exceptional financial services. The firm encourages stakeholders to stay updated via its social media channels, including Facebook, Instagram, and LinkedIn.

This remarkable financial performance of S&T Bancorp in the first quarter of 2025 not only showcases effective management but also positions the company favorably for future growth amidst evolving market conditions.