S&T Bancorp (STBA) investor relations material

Executive summary

• Net income for Q3 2025 was $35.0 million ($0.91 per share), with ROA at 1.42%, ROE at 9.48%, and ROTE at 12.81%, all improved from prior periods.

• Pre-provision net revenue (PPNR) rose to 1.89% of average assets, up 16 basis points sequentially.

• Tangible book value per share grew over 3% to $28.69, maintaining robust capital and flexibility for acquisitions or buybacks.

• Strategic repositioning of the balance sheet reduced asset sensitivity, supporting consistent net interest income growth.

• Focus remains on organic growth, with a clear path to surpassing $10 billion in assets in the coming quarters.

Financial highlights

• Net interest income rose by $2.6 million (3%) to $89.2 million; net interest margin expanded to 3.93%, up five basis points.

• Efficiency ratio improved to 54.41% due to well-managed expenses and revenue growth.

• Noninterest income was $13.8 million, up $0.3 million sequentially; noninterest expense declined by $1.7 million, mainly in salaries and professional services.

• Total assets remained at $9.8 billion at September 30, 2025.

• Net charge-offs were $2.4 million (0.12% of average loans), up from $1.2 million (0.06%) in Q2 2025.

Outlook and guidance

• Management highlights strong capital levels and financial flexibility for future growth, with a $50 million share repurchase authorization in place.

• Expect mid-single-digit loan growth in Q4, supported by strong CRE pipelines and stable consumer demand.

• Net interest margin expected to remain stable for the next three quarters, with flexibility to manage rate cuts.

• ROE above 1.40% is targeted as sustainable, assuming credit quality and margins hold.

• Asset growth projected to keep the company under $10 billion in assets through next quarter, with crossing expected in 2025.