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S&T Bancorp, Inc. Achieves Strong Financial Results for Q4 and Full Year 2025

S&T Bancorp, Inc. (NASDAQ: STBA), the holding company for S&T Bank, has recently announced its earnings for the fourth quarter and the entire fiscal year of 2025. The results underscore the company’s commitment to maintaining strong performance metrics and enhancing shareholder value despite fluctuating market conditions.

Q4 2025 Earnings Overview

In the fourth quarter of 2025, S&T Bancorp reported a net income of $34.0 million, translating to $0.89 per diluted share. This marks a slight decrease from the third quarter of 2025, where the net income was $35.0 million, or $0.91 per diluted share, but is an increase compared to the $33.1 million recorded in the fourth quarter of 2024.

Overall, the total net income for the fiscal year amounted to $134.2 million, up from $131.3 million in 2024, with earnings per diluted share reaching $3.49 compared to $3.41 in the previous year.

Key Financial Highlights

During Q4 2025, S&T Bancorp reported several noteworthy metrics:

• - The Return on Average Assets (ROA) stood at 1.37%, and the Return on Average Equity (ROE) was at 9.13%. These figures indicate strong profitability, although they show a slight decline from the previous quarter’s results.
• - Net Interest Income rose by $1.8 million, or 1.93%, bringing the total to $91.0 million for the quarter with a net interest margin of 3.99%, an increase from 3.93% in Q3.
• - Total loans increased by $91.0 million, or 4.52% annualized, reflecting effective loan growth strategies. Meanwhile, total deposits rose by $36.9 million, equating to an annual growth rate of 1.85%.
• - However, there was an increase in net charge-offs, reaching $11.0 million or 0.54% of average loans, which was significantly higher than the $2.4 million or 0.12% in Q3 2025.

Full Year 2025 Financial Performance

The overall performance for the entire year 2025 further highlighted S&T Bancorp's robust operational capabilities:

• - The net interest income for the year grew by $15.3 million, or 4.57%, totaling $350.1 million compared to $334.8 million in 2024.
• - The annual Net Interest Margin (FTE) increased 8 basis points to 3.90%, illustrating the company’s resilience amidst changes in the interest rate landscape.
• - Portfolio loans saw a remarkable increase of $329 million, or 4.25%, showing a significantly strengthened loan portfolio compared to the prior year. Meanwhile, deposits surged by $175.7 million, showcasing strong customer trust and engagement.
• - The report also noted an increase in nonperforming assets (NPAs) from $27.9 million in 2024 to $55.6 million in 2025, resulting in an NPA ratio of 0.69%.

Management Commentary

Chris McComish, Chief Executive Officer of S&T Bancorp, expressed pride in the company’s solid performance, stating, "These results reflect disciplined execution of our strategy, continued momentum on our key business drivers, and strong core profitability." He further emphasized the bank's commitment to a people-forward approach to fostering sustainable growth while enhancing shareholder value.

Looking Ahead: Future Initiatives

As S&T Bancorp transitions into 2026, the leadership team is focused on leveraging its strong financial base to further drive growth. A new $100 million share repurchase program has been authorized by the board of directors, indicating a proactive approach towards capital management and returning value to shareholders.

The outlook for 2026 appears promising, with continued focus on core strengths including customer service, allowing for both innovation and stability in an ever-changing financial landscape. With plans for sustained investments in technology and human resources, the bank is poised to tackle future challenges effectively.

In conclusion, S&T Bancorp’s 2025 results paint a picture of a resilient financial institution adeptly managing growth amidst challenges, making it a noteworthy player in the financial services industry.