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S&T Bancorp (STBA)
NASDAQ:STBA
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S&T Bancorp
(NASDAQ:STBA)
73Outperform
S&T Bancorp (STBA) vs. S&P 500 (SPY)
Market Cap
$1.42B
Dividend Yield3.62%
Average Volume (3M)191.57K
Price to Earnings (P/E)10.9
Beta (1Y)0.97
Revenue Growth5.36%
EPS Growth-8.74%
CountryUS
Employees1,206
SectorFinancial
Sector Strength80
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.41
Shares Outstanding38,261,030
10 Day Avg. Volume218,514
30 Day Avg. Volume191,573
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.69
Price to Cash Flow (P/CF)6.50
P/FCF Ratio3.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$44.00Price Target Upside17.87% Upside
Rating ConsensusHold
Number of Analyst Covering3
S&T Bancorp Business Overview & Revenue Model
Company DescriptionS&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.
How the Company Makes MoneyS&T Bancorp generates revenue primarily through interest income and non-interest income. Interest income is earned from the company's lending activities, which include commercial and consumer loans, as well as mortgages. The difference between the interest earned on loans and the interest paid on deposits and borrowed funds constitutes the net interest margin, a significant source of income for the bank. Non-interest income is derived from fees and service charges related to the bank's deposit accounts, loan servicing, and wealth management services. Additionally, S&T Bancorp may earn income from investment securities and other financial instruments. The company also benefits from strategic partnerships and community engagement, which help expand its customer base and enhance its service offerings, contributing to its overall earnings.
S&T Bancorp Financial Statement Overview
Summary
S&T Bancorp demonstrates strong revenue growth and efficient cost management, reflected in high EBIT margins. The strategic reduction in leverage has improved its balance sheet strength, albeit potentially limiting growth. Cash flow management is stable, though profitability needs enhancement to improve net profit margins.Income Statement
S&T Bancorp has demonstrated strong revenue growth over recent years, increasing from $299M in 2019 to $515M in 2024. The gross profit margin remains robust at 100% due to its nature as a financial institution. However, the net profit margin has decreased slightly from 37.2% in 2023 to 25.5% in 2024, indicating pressure on profitability. The EBIT margin is notably high at 98.8% for 2024, reflecting efficient cost management.75
Positive
Balance Sheet
The company's balance sheet reflects a healthy equity position with an equity ratio of 14.3% in 2024. The debt-to-equity ratio has improved significantly, dropping from 0.39 in 2023 to 0.11 in 2024, indicating a strong reduction in leverage. However, the banking industry typically operates with higher leverage, and this conservative approach may limit growth potential.70
Positive
Cash Flow
The cash flow statements show a stable operating cash flow, with a slight increase in free cash flow in 2024. However, the free cash flow to net income ratio has decreased from 1.1 in 2023 to 1.32 in 2024, suggesting less cash is being generated relative to net income. The operating cash flow to net income ratio remains consistent, indicating steady cash flow management.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 515.87M | 389.14M | 374.04M | 340.72M | 339.11M | Gross Profit |
| 515.87M | 389.14M | 374.04M | 340.72M | 339.11M | EBIT |
| 509.52M | 178.80M | 199.96M | 135.67M | 21.04M | EBITDA |
| 0.00 | 0.00 | 177.96M | 147.15M | 33.10M | Net Income Common Stockholders |
| 131.26M | 144.78M | 135.52M | 110.34M | 21.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.23B | 233.61M | 210.01M | 1.83B | 1.00B | Total Assets |
| 9.66B | 9.55B | 9.11B | 9.49B | 8.97B | Total Debt |
| 150.00M | 503.63M | 439.19M | 76.82M | 162.76M | Net Debt |
| -94.82M | 270.02M | 229.19M | -845.39M | -66.90M | Total Liabilities |
| 8.28B | 8.27B | 7.93B | 76.82M | 7.81B | Stockholders Equity |
| 1.38B | 1.28B | 1.18B | 1.21B | 1.15B |
| Cash Flow | Free Cash Flow | |||
| 173.37M | 165.53M | 236.57M | 212.50M | 48.03M | Operating Cash Flow |
| 173.37M | 171.75M | 240.43M | 216.11M | 53.45M | Investing Cash Flow |
| -118.29M | -444.22M | -398.59M | 11.98M | -161.10M | Financing Cash Flow |
| -43.87M | 296.07M | -554.05M | 464.46M | 139.49M |
S&T Bancorp Technical Analysis
Negative
37.33
Price Trends
38.62
Negative
39.46
Negative
39.02
Negative
Market Momentum
-0.45
Positive
40.20
Neutral
50.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBA, the sentiment is Negative. The current price of 37.33 is below the 20-day moving average (MA) of 37.67, below the 50-day MA of 38.62, and below the 200-day MA of 39.02, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 40.20 is Neutral, neither overbought nor oversold. The STOCH value of 50.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STBA.
S&T Bancorp Risk Analysis
S&T Bancorp disclosed 27 risk factors in its most recent earnings report. S&T Bancorp reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
S&T Bancorp Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.42B | 10.87 | 9.85% | 3.62% | 5.36% | -8.74% | |
65 Neutral | $4.98B | 12.83 | 5.38% | 4.95% | 6.09% | -26.94% | |
63 Neutral | $14.35B | 9.94 | 8.94% | 4.37% | 16.34% | -11.76% | |
62 Neutral | $3.24B | 11.33 | 9.69% | 3.87% | 21.10% | -4.20% | |
61 Neutral | $909.08M | 12.68 | 10.25% | 3.91% | 41.65% | 668.73% | |
61 Neutral | $4.97B | 12.60 | 7.62% | 4.30% | 6.80% | 1.48% | |
60 Neutral | $578.92M | 20.07 | 5.64% | 3.10% | 62.98% | -45.76% |
* Financial Sector Average
Performance Comparison
STBA
S&T Bancorp
37.33
7.38
24.64%
FULT
Fulton Financial
17.94
3.25
22.12%
ORRF
Orrstown Financial Services
29.76
4.84
19.42%
TMP
Tompkins Financial Corporation
63.35
17.31
37.60%
UBSI
United Bankshares
34.71
1.90
5.79%
VLY
Valley National Bancorp
9.06
1.82
25.14%
S&T Bancorp Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -1.01% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong performance with record earnings per share, robust capital levels, and continued deposit growth, alongside improvements in asset quality. However, there are slight concerns with the decline in net interest margin and income, and higher loan payoffs. Overall, the sentiment is optimistic about future growth opportunities and the company's ability to manage current challenges.Highlights
Record Earnings Per Share
S&T produced $3.41 per share in earnings for the year, marking another year of strong financial performance.
Strong Capital Levels
Capital levels were built to record levels, providing a strong foundation for future growth.
Continued Deposit Growth
Customer deposit growth was over $75 million in Q4, representing over 4% growth annualized and marking the sixth consecutive quarter of meaningful deposit growth.
Asset Quality Improvement
Allowance for credit losses declined from 1.36% to 1.31% of total loans. Nonperforming assets decreased by $4 million, and criticized and classified loans declined by 31% in 2024.
Loan Growth and Pipeline Expansion
Loan growth was just under 3% for the quarter with strong new loan production. Expanded pipelines in Business Banking and Commercial segments led to a doubling of those pipelines year-over-year.
Lowlights
Net Interest Margin Decline
The net interest margin declined slightly to 3.77% in Q4, down about 5 basis points from the third quarter.
Slight Contraction in Net Interest Income
Net interest income showed a slight contraction versus Q3, with a decrease of $1.2 million compared to the last quarter.
Higher Loan Payoffs
Higher payoffs in Q4 compared to earlier quarters in 2024, leading to pressure on growth.
Company Guidance
The guidance provided during the S&T Bancorp Fourth Quarter and Full Year 2024 Conference Call was optimistic, with several key metrics highlighted. The company reported $3.41 per share in earnings for the year, with strong returns and record capital levels, reflecting excellent financial performance. In the fourth quarter, net income was $33 million, equating to $0.86 per share, with a return on tangible common equity (ROTCE) of 13.25% and a return on assets (ROA) of 1.37%. The pre-provision net revenue (PPNR) remained solid at 1.72%. Despite a slight decrease in net interest income and a net interest margin of 3.77%, asset quality continued to improve, with the allowance for credit losses (ACL) declining to 1.31% of total loans. Loan growth was robust, just under 3% for the quarter, and deposit growth exceeded $75 million, marking the sixth consecutive quarter of significant deposit growth. The company anticipates mid-single-digit loan growth in the first half of 2025 and high mid-single-digit growth for the full year. Overall, S&T Bancorp expressed confidence in its performance and growth prospects heading into 2025.S&T Bancorp Corporate Events
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
S&T Bancorp Unveils Strategic Growth Plans
Positive
Feb 11, 2025
S&T Bancorp has released its investor presentation, outlining its strategic priorities and performance targets aimed at sustainable growth and enhanced profitability. The company emphasizes its foundational growth strategy, financial performance metrics, and its preparedness to leverage merger and acquisition opportunities, while focusing on maintaining asset quality and expanding customer growth strategies.
DividendsFinancial Disclosures
S&T Bancorp Reports 2024 Financial Results and Dividend Increase
Neutral
Jan 30, 2025
S&T Bancorp reported its financial results for the fourth quarter and full year 2024. In the fourth quarter of 2024, the company achieved a net income of $33.1 million, slightly higher than the third quarter, but lower than the previous year. Asset quality improved significantly with a reduction in nonperforming assets and net recoveries, while total deposits and portfolio loans increased. For the full year 2024, net income was $131.3 million, a decrease from 2023, attributed to higher funding costs despite a rise in interest income. The board declared a cash dividend increase, reflecting a 3.03% hike from the previous year.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.