#United States #Indiana #ST Bank #S&T Bancorp #NASDAQ STBA

S&T Bancorp, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

S&T Bancorp, Inc. (NASDAQ: STBA), the holding company of S&T Bank, announced its financial results for the fourth quarter and the entire year of 2024 on January 30, 2025. The results indicate a mixed performance for the year amid fluctuating market conditions, with a total net income of $33.1 million for Q4, marking a slight increase from $32.6 million in Q3 but lower than the $37 million earned in the same quarter of the previous year.

The net income for the entire year of 2024 stood at $131.3 million compared to $144.8 million for 2023. Earnings per diluted share (EPS) was reported at $3.41, down from $3.74 in the previous year. Despite a decline in net income from the prior year, S&T's performance metrics such as return on average assets (ROA) at 1.37% and return on average equity (ROE) at 9.86% demonstrate a strong fiscal position.

Fourth Quarter Highlights:

• - Earnings: The net income for Q4 2024 was $33.1 million, with EPS at $0.86, indicating a slight quarter-over-quarter improvement in profitability.
• - Loan Portfolio: Total portfolio loans grew by $53.9 million, or 2.79% annualized, reflecting a continued demand for lending products.
• - Deposit Growth: Total deposits saw an increase of $128.3 million, including customer deposits that grew by $78.3 million, marking a solid annualized growth of 4.15%.
• - Asset Quality: The bank witnessed an improvement in asset quality, leading to a provision for credit losses of negative $2.5 million for Q4, indicating a favorable trend in recoveries. Nonperforming assets were recorded at a low ratio of 0.36% of total loans.

Full Year Highlights:

Throughout 2024, S&T Bancorp faced challenges due to fluctuating interest rates that altered net interest income significantly. Overall, the company reported a net interest income of $334.8 million for the year, down 4.18% from $349.4 million in 2023.

• - Interest Margin: The net interest margin was a crucial focus, reported at 3.82%, a decline compared to the previous year's 4.13%. The fluctuating interest rates primarily impacted funding costs and income from loans.
• - Customer Deposits: Total deposits grew by $261.3 million from the previous year, indicating robust customer confidence despite market volatility.
• - Dividend Achievement: The S&T Bancorp board approved a dividend of $0.34 per share, a 3.03% increase from last year's dividend, highlighting their commitment to returning value to shareholders despite reduced net income.

CEO’s Statement:

Chris McComish, the CEO of S&T Bancorp, expressed pride in the financial results amidst the challenges of the year. He emphasized the bank's key drivers of growth, which include a consistent uptick in customer deposits and ongoing improvements in asset quality. As S&T Bancorp enters 2025, McComish expressed optimism regarding the growth prospects based on their achievements in the past year and their strategic plans.

Financial Metrics Overview:

• - Return on Average Assets (ROA): 1.37%
• - Return on Average Equity (ROE): 9.86%
• - Nonperforming Assets: 0.36% of Total Loans
• - Customer Deposit Growth: 4.15%

As S&T Bancorp, Inc. prepares for future operations, it continues to monitor market conditions closely, aiming for strategic innovations to enhance their offerings and customer loyalty. With a foundation rooted in sound financial principles, the bank remains positive about its growth trajectory in the coming year.