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1. Company Snapshot

1.a. Company Description

S&T Bancorp, Inc.operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services.The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Business Banking, Commercial Construction, Consumer Real Estate, and Other Consumer.


The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits.It also manages private investment accounts for individuals and institutions.In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies.


As of December 31, 2021, it operated 73 banking branches and 5 loan production offices located in Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York.S&T Bancorp, Inc.was founded in 1902 and is headquartered in Indiana, Pennsylvania.

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1.b. Last Insights on STBA

The recent 3-month performance of S&T Bancorp, Inc. was impacted by a lack of significant news or developments that could have positively influenced the company's stock price. However, the absence of major negative events, such as regulatory issues or significant losses, also contributed to a relatively stable period. The company's recent earnings release, which beat expectations, was a positive development, but its impact may have been limited by the lack of other significant news.

1.c. Company Highlights

2. S&T Bancorp's Q3 2025 Earnings: Steady Performance and Growth Prospects

S&T Bancorp reported a solid third-quarter 2025 earnings per share (EPS) of $0.91, surpassing estimates of $0.85, with net income reaching $35 million. The return on assets (ROA) stood at 1.42%, and pre-provision net revenue (PPNR) was 1.89%. The company's net interest margin expanded by 5 basis points to 3.93%, driven by a 3% increase in net interest income. Total loan balances grew $47 million, or 2.3% annually, led by commercial real estate (CRE) activities. The tangible book value grew over 3% in the quarter, and the efficiency ratio improved to 54.4%.

Publication Date: Oct -30

📋 Highlights
  • Earnings Performance: Q3 2025 EPS of $0.91, net income of $35 million, ROA of 1.42%, and PPNR of 1.89%.
  • Net Interest Margin Expansion: NIM grew 5 bps to 3.93%, driven by a 3% rise in net interest income.
  • Loan Growth: Total loans increased $47 million (2.3% YoY), led by commercial real estate (CRE) activities.
  • Efficiency and Capital Strength: Efficiency ratio improved to 54.4%, and tangible book value rose over 3%.
  • Strategic Goals: $50 million share repurchase authorization and a clear path to $10 billion in assets by mid-2026.

Asset Quality and Credit Performance

Asset quality remained strong, with criticized and classified assets up moderately quarter-over-quarter. The allowance for credit losses decreased by 1 basis point, and non-performing assets (NPAs) increased to 62 basis points of total loans. Dave Antolik mentioned that credits that went nonperforming included one C&I credit related to a manufacturer and two CRE credits associated with construction risk, indicating a manageable credit risk.

Growth Prospects and Guidance

S&T Bancorp expects mid-single-digit loan growth in the fourth quarter and guidance for net interest income and NIM to remain stable in the near term. Mark Kochvar discussed the company's expectations for margins in a down-rate environment, stating that if margins hold up as expected, the current numbers are reasonable. The company is on track to reach $10 billion in assets through organic growth, with Matthew Breese from Stephens inquiring that this milestone will likely be achieved in the first half of next year.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio that can be derived from the given 'P/B Ratio' of 0.14, and a Dividend Yield of 3.78%, S&T Bancorp presents an attractive valuation profile for income investors. Analysts estimate next year's revenue growth at 4.9%, indicating a positive outlook for the company's future performance.

Strategic Focus and Capital Management

The company has a $50 million share repurchase authorization in place and is evaluating opportunities to add bankers, expecting them to be self-funding. Mark Kochvar stated that they might be better opportunities for share repurchases, but they will reassess as they progress through the quarter. Christopher McComish discussed the company's M&A strategy, focusing on the deposit franchise and considering geographic expansion and deposit composition when evaluating potential targets.

3. NewsRoom

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Edgestream Partners L.P. Invests $3.19 Million in S&T Bancorp, Inc. $STBA

Dec -04

Source: defenseworld.net

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S&T BANCORP WELCOMES STEPHANIE N. DOLIVEIRA TO BOARD OF DIRECTORS

Oct -30

Source: prnewswire.com

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S&T Bancorp, Inc. Increases Quarterly Cash Dividend

Oct -29

Source: prnewswire.com

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S&T Bancorp, Inc. (STBA) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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S&T Bancorp (STBA) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -23

Source: zacks.com

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S&T Bancorp (STBA) Q3 Earnings and Revenues Top Estimates

Oct -23

Source: zacks.com

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S&T Bancorp, Inc. Announces Third Quarter 2025 Results

Oct -23

Source: prnewswire.com

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DAVID ANTOLIK, PRESIDENT OF S&T BANK, NAMED 2025 C-SUITE AWARD RECIPIENT BY PITTSBURGH BUSINESS TIMES

Oct -16

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.00%)

6. Segments

Community Banking

Expected Growth: 1.0%

S&T Bancorp's Community Banking segment growth is driven by strategic branch expansion, increased commercial lending, and a focus on customer relationships. Additionally, investments in digital banking platforms and treasury management services have enhanced customer experience, contributing to the 1.0% growth rate.

7. Detailed Products

Personal Banking

S&T Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, loans, and investment products.

Business Banking

S&T Bancorp, Inc. provides business banking services, including commercial loans, cash management, and treasury management solutions.

Wealth Management

S&T Bancorp, Inc. offers wealth management services, including investment management, trust services, and retirement planning.

Mortgage Banking

S&T Bancorp, Inc. provides mortgage banking services, including residential and commercial mortgage lending.

Insurance

S&T Bancorp, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

Investment Services

S&T Bancorp, Inc. provides investment services, including brokerage services, investment advice, and portfolio management.

8. S&T Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for S&T Bancorp, Inc. is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low due to the lack of concentration in the banking industry and the high switching costs for customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of a few large suppliers of technology and services, but the bank has some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many competitors in the banking industry, leading to a highly competitive market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.34%
Debt Cost 7.79%
Equity Weight 71.66%
Equity Cost 7.79%
WACC 7.79%
Leverage 39.55%

11. Quality Control: S&T Bancorp, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Value: 8.0

Growth: 6.6

Quality: 7.2

Yield: 6.0

Momentum: 8.0

Volatility: 6.3

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First United

A-Score: 6.8/10

Value: 6.8

Growth: 6.3

Quality: 6.8

Yield: 7.0

Momentum: 7.5

Volatility: 6.7

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Northrim Bank

A-Score: 6.8/10

Value: 6.7

Growth: 5.1

Quality: 7.5

Yield: 7.0

Momentum: 8.0

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Central Pacific Financial

A-Score: 6.7/10

Value: 6.6

Growth: 5.0

Quality: 7.0

Yield: 8.0

Momentum: 6.0

Volatility: 7.7

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S&T Bancorp

A-Score: 6.2/10

Value: 5.7

Growth: 5.6

Quality: 6.4

Yield: 8.0

Momentum: 3.5

Volatility: 8.0

1-Year Total Return ->

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Hope Bancorp

A-Score: 5.3/10

Value: 5.8

Growth: 3.6

Quality: 5.5

Yield: 8.0

Momentum: 2.0

Volatility: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.13$

Current Price

40.13$

Potential

-0.00%

Expected Cash-Flows