S&T Bancorp Reports Mixed Q3 Results, Net Income Down 3% to $32.6M

S&T Bancorp, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. As of September 30, 2024, total assets increased to $9.6 billion from $9.3 billion a year earlier. Total deposits rose by $133.1 million (1.8%) to $7.65 billion, with customer deposits increasing by $333.4 million (4.7%).

For the three months ended September 30, 2024, S&T Bancorp recorded interest and dividend income of $131.5 million, up from $123.0 million in the same period of 2023. However, net interest income decreased to $84.5 million from $87.4 million, reflecting a decline in the net interest margin to 3.79% from 4.06%. For the nine months, total interest and dividend income rose to $388.0 million from $351.2 million, while net interest income fell to $251.5 million from $264.3 million.

Net income for the third quarter was $32.6 million, down from $33.5 million in the prior year, resulting in earnings per share of $0.85 compared to $0.88. For the nine months, net income decreased to $98.2 million from $107.7 million, with earnings per share dropping to $2.55 from $2.78. The effective tax rate increased to 21.4% for the third quarter, up from 18.9% in the same period of 2023.

Noninterest income for the third quarter decreased by $0.3 million (2.5%) to $11.9 million, while for the nine months, it fell by $1.5 million (3.9%) to $38.0 million. Notably, S&T Bancorp reported a loss on the sale of securities of $2.2 million for the third quarter and $5.3 million for the nine months.

Total noninterest expenses increased by $2.6 million (4.9%) for the third quarter and by $9.4 million (6.1%) for the nine months, primarily driven by higher salaries and employee benefits, which rose by $3.8 million and $10.7 million, respectively.

In terms of strategic developments, S&T Bancorp authorized a new $50 million share repurchase plan in January 2024, set to expire in May 2025. The plan allows for repurchases of common stock based on market conditions and financial performance.

The company’s allowance for credit losses decreased to $104.3 million (1.36% of total portfolio loans) as of September 30, 2024, from $108.0 million (1.41%) at the end of 2023. Nonaccrual loans increased to $31.9 million from $22.9 million, indicating a rise in nonperforming assets.