S&t Bancorp, Inc. · NASDAQ:STBA
S&t Bancorp — Q1 2025 Earnings Presentation
35 slides from S&t Bancorp's earnings presentation, May 2, 2025
Slide 1: First Quarter 2025
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer First Quarter 2025
Slide 2: Forward Looking Statements and Risk Factors
Forward Looking Statements and Risk Factors This information contains or incorporates statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, result
Slide 3: Corporate Profile
3 • Founded in Indiana, PA in 1902 • $9.7 billion in assets • $7.9 billion in deposits • $7.8 billion in loans • $1.4 billion market cap • Stock symbol: STBA Corporate Profile
Slide 4: Geographic Footprint
Geographic Footprint 4 Serving more than 225,000 customers in Pennsylvania and Ohio Footprint comprises 9.6 million people and 215,000 businesses 1,200 team members providing award- winning customer satisfaction at more than 72 locations Akron Columbus Philadelphia Harrisburg Pittsburgh Indiana
Slide 5: Awards
Awards Award-winning performance and employee engagement 5 Forbes America’s Best Banks S&T was named on the Forbes America’s Best Banks list for a second consecutive year in 2025. This annual ranking is based on metrics measuring growth, credit quality and profitability, as well as stock performance
Slide 6: Strategic Path
6 Strategic Path VALUES PURPOSE DRIVERS Our Shared Future represents a journey that began three years ago focused on building a foundation that enables profitable and sustainable growth.
Slide 7: Performance Drivers and Targets
Performance Drivers and Targets 7 Enterprise Risk Management Talent & Engagement Deposit Franchise Loans/Deposits below median Cost of Deposits below median Core Profitability PPNR/Avg Assets top quartile NIM above median Asset Quality NCO/Loans below median NPA/Loans & OREO below median Valuation P
Slide 8: Strategic Priorities
Strategic Priorities Positioned to execute on customer growth strategies to improve operating leverage Maintain peer median asset quality enabling a greater focus on growth Strategically positioned to capitalize on targeted M&A opportunities
Slide 9: Organic Growth
Loan Highlights • Commercial pipelines double the size from one year ago • Commercial Banking team grew 15% in 2024 • Asset quality improvement allowed us to focus on growth Future Opportunities • Continue expanding our business and commercial banking teams and capabilities • Growth opportunities in
Slide 10: Mergers & Acquisitions
10 M&A Target Priorities • Existing or contiguous market expansion with institutions $1 ~ $6 billion in assets • Enhancement of deposit franchise • Access to growing markets • Alignment of cultures S&T Preparedness • Record levels of capital • Strong performer with solid return metrics • Infrastruct
Slide 11: Asset Quality
Asset Quality 11 0.23% 1.80% 2.92% (1) Median of proxy peer group. Peer data from S&P Global Market Intelligence. 1.32% 14.41% Maintain peer median asset quality enabling a greater focus on growth Asset Quality Highlights • Asset quality improvement positively impacted earnings in 1Q25 and 2024 with
Slide 12: First Quarter Overview
12 First Quarter Overview RETURN METRICS EARNINGS Net Income $33.4 million *Refer to appendix for reconciliation of non-GAAP financial measures EPS $0.87 ROA 1.41% ROE 9.67% ROTE* 13.29% PPNR* 1.73% HIGHLIGHTS • Strong earnings and return metrics • NIM increase of 4 basis points to 3.81% • Securitie
Slide 13: Performance
PPNR / AVERAGE ASSETS * 2021 2022 2023 2024 1Q25 0.0% 0.6% 1.2% 1.8% 2.4% RETURN ON AVERAGE TANGIBLE EQUITY * 2021 2022 2023 2024 1Q25 0.0% 5.0% 10.0% 15.0% 20.0% RETURN ON AVERAGE ASSETS 2021 2022 2023 2024 1Q25 0.0% 0.4% 0.8% 1.2% 1.6% RETURN ON AVERAGE EQUITY 2021 2022 2023 2024 1Q25 0.0% 5.0% 10
Slide 14: Balance Sheet
14 Balance Sheet • Strong customer deposit growth of $134.7 million (7.23% annualized) • Reduction in borrowings of $55.0 million and brokered deposits of $24.9 million • Loan growth of $93.4 million (4.89% annualized) primarily commercial Dollars in millions 1Q25 4Q24 Var $ 212 $ 245 $ (33) 1,011 9
Slide 15: Loan Mix
Loan Mix Our loan portfolio is well-diversified: Dollars in millions 15 Amount % of Total CRE $3,462 44% Consumer 2,474 32% C&I 1,520 19% Construction 380 5% Total $7,836 100%
Slide 16: Deposit Mix
Deposit Mix We have a strong, well-diversified deposit base of more than 200,000 customers: Dollars in millions 16 Amount % of Total DDA $2,164 28% MM 2,210 28% CDs 1,823 23% Savings 886 11% Int Bear DDA 810 10% Total $7,893 100% Amount % of Total Average Account Size (in $000) Average Age (in years
Slide 17: Funding Sources
17 FUNDING SOURCES Funding Capacity • Strong liquidity position with well-diversified deposit base • Significant funding availability through FHLB and Federal Reserve • Insured and collateralized municipal deposits comprise 70% of total deposits • Funding availability meets liquidity needs in both n
Slide 18: Asset Quality
18 Asset Quality ACL Trend: Dollars in millions ASSET QUALITY TRENDS • ACL down 5 basis points to 1.26% compared to 1.31% at December 31, 2024 • Decrease in ACL related to a $4.2 million decline in specific reserves • NPAs decreased 7 basis points to 0.29% of total portfolio loans plus OREO • Active
Slide 19: Net Interest Income
19 Net Interest Income Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures $83.5 $83.6 $84.5 $83.3 $83.3 3.84% 3.85% 3.82% 3.77% 3.81% 3.12% 3.16% 3.23% 3.26% 3.38% NII NIM FTE* Peer 1Q24 2Q24 3Q24 4Q24 1Q25 Total Cost of Funds 0.15% 0.05% 0.07% (0.11)% (0.12)%
Slide 20: Noninterest Income
20 1Q25 1Q25 vs 4Q24 1Q25 vs 1Q24 Debit and Credit Card $4.2 ($0.4) $— Service Charges 4.0 (0.2) 0.1 Wealth Management 3.1 (0.1) — Loss on Sale of Securities (2.3) 0.3 (2.3) Other 1.4 (0.3) (0.2) Noninterest Income $10.4 ($0.7) ($2.4) Noninterest Income Dollars in millions • Repositioned $193.6 mill
Slide 21: Noninterest Expense
21 1Q25 1Q25 vs 4Q24 1Q25 vs 1Q24 Salaries & Benefits $29.9 ($0.9) $0.3 Data Processing 4.9 (0.4) — Occupancy 4.3 0.5 0.4 FF&E 3.5 0.2 — Other Taxes 1.5 (0.8) (0.4) Marketing 1.6 — (0.3) Professional Services 1.3 0.2 (0.4) FDIC 1.0 — — Other 7.1 0.9 1.0 Noninterest Expense $55.1 ($0.3) $0.6 Noninter
Slide 22: Securities
22 Securities • Securities portfolio is only 10% of total assets • 100% of securities portfolio is classified as available for sale • Average duration of 3.9 years • AOCI of $54.4 million related to securities portfolio, if realized, would decrease CET1 ratio by 72 basis points from 14.67% to 13.95%
Slide 23: Capital
23 Capital Dollars in millions; *Refer to appendix for reconciliation of non-GAAP financial measures TCE / TA* • We have strong capital levels and are well positioned for growth • TCE / TA higher from prior quarter due to lower AOCI and strong earnings 10.03% 10.21% 10.86% 10.82% 11.16% 1Q24 2Q24 3Q
Slide 24: Income Statement
Income Statement 1Q25 2024 2023 2022 2021 (Dollars in thousands, except per share data) Net Interest Income $83,323 $334,806 $349,410 $315,783 $276,112 Noninterest Income 10,429 49,083 57,620 58,259 64,696 Total Revenue 93,752 383,889 407,030 374,042 340,808 Noninterest Expense 55,091 218,938 210,33
Slide 25: Financial Data: Balance Sheet
Financial Data 25 Balance Sheet 1Q25 2024 2023 2022 2021 (Dollars in thousands) Total Securities $1,011,111 $987,591 $970,391 $1,002,778 $910,793 Cash and Interest-bearing Deposits 211,836 244,820 233,612 210,009 922,215 Total Net Loans 7,737,339 7,641,464 7,545,528 7,082,645 6,902,936 Other Assets
Slide 26: Net Interest Margin
Net Interest Margin 1Q25 2024 2023 2022 2021 Securities - FTE(1) 3.59% 3.05% 2.61% 2.25% 2.18% Loans - FTE(1) 5.99% 6.24% 6.04% 4.50% 3.84% Total Interest-earning Assets - FTE(1) 5.70% 5.87% 5.64% 4.06% 3.37% Interest-bearing Deposits 2.77% 2.92% 1.92% 0.40% 0.20% Borrowings 5.01% 5.41% 5.59% 3.01%
Slide 27: Financial Data: Loan Portfolio
Financial Data 27 Loan Portfolio 1Q25 2024 2023 2022 2021 (Dollars in thousands) Commercial Real Estate $3,462,246 $3,388,017 $3,357,603 $3,128,187 $3,236,653 Commercial and Industrial 1,520,475 1,540,397 1,642,106 1,718,976 1,728,969 Commercial Construction 380,129 352,886 363,284 399,371 440,962 T
Slide 28: Asset Quality
Asset Quality 1Q25 2024 2023 2022 2021 (Dollars in thousands) Total Nonaccrual Loans $22,339 $27,937 $22,946 $19,052 $66,291 Nonaccrual Loans/Total Loans 0.29% 0.36% 0.30% 0.27% 0.95% Nonperforming Assets/Total Loans + OREO 0.29% 0.36% 0.30% 0.31% 1.13% Net Charge-offs/Average Loans(1) (—%) 0.11% 0.
Slide 29: Capital
Capital 1Q25 2024 2023 2022 2021 Tier 1 Leverage 12.09% 11.98% 11.21% 11.06% 9.74% Common Equity Tier 1 – Risk-Based Capital 14.67% 14.58% 13.37% 12.81% 12.03% Tier 1 – Risk-Based Capital 14.99% 14.90% 13.69% 13.21% 12.43% Total – Risk-Based Capital 16.57% 16.49% 15.27% 14.73% 13.79% Tangible Common
Slide 30: Non-GAAP Reconciliation: ROTE and PPNR
1Q25 (Dollars in thousands) Return on Average Tangible Shareholders' Equity (ROTE) (non-GAAP) Net income (annualized) $135,460 Plus: amortization of intangibles (annualized), net of tax 772 Net income before amortization of intangibles (annualized) $136,232 Average total shareholders' equity $1,400,
Slide 31: Non-GAAP Reconciliation: TCE and Efficiency Ratio
1Q25 4Q24 3Q24 2Q24 1Q24 (Dollars in thousands) Tangible Common Equity (TCE)/Tangible Assets (non-GAAP) Total shareholders' equity $1,418,034 $1,380,294 $1,375,754 $1,321,443 $1,295,074 Less: goodwill and other intangible assets, net of deferred tax liability (375,646) (375,837) (375,931) (376,154)
Slide 32: Non-GAAP Reconciliation: Annual ROTE
1Q25 2024 2023 2022 2021 (Dollars in thousands) YTD Return on Average Tangible Shareholders' Equity (ROTE) (non-GAAP) Net income(1) $135,460 $131,265 $144,781 $135,520 $110,343 Plus: amortization of intangibles, net of tax(1) 772 904 1,042 1,199 1,400 Net income before amortization of intangibles(1)
Slide 33: Non-GAAP Reconciliation: PPNR/Average Assets
1Q25 2024 2023 2022 2021 (Dollars in thousands) YTD PPNR/Average Assets (Non-GAAP) Income before taxes $41,701 $164,818 $178,804 $168,930 $135,668 Less: net losses (gains) on sale of securities 2,295 7,938 — (198) (29) Less: gain on Visa Class B-1 exchange — (3,492) — — — Plus: provision for credit
Slide 34: Non-GAAP Reconciliation: Net Interest Margin
1Q25 2024 2023 2022 2021 (Dollars in thousands) YTD Interest and Dividend Income Interest-bearing deposits with banks $1,416 $8,855 $7,344 $2,952 $973 Securities 8,875 29,665 25,207 22,449 17,432 Loans 114,891 476,083 442,675 314,774 270,460 Other earning assets 283 1,269 2,675 576 397 Total Interes
Slide 35: First Quarter 2025
Christopher J. McComish Chief Executive Officer Mark Kochvar Chief Financial Officer First Quarter 2025