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

, /PRNewswire/ -- S&T Bancorp, Inc. (S&T) (NASDAQ: STBA), the holding company for S&T Bank, announced net income of $31.9 million, or $0.83 per diluted share, for the second quarter of 2025 compared to net income of $33.4 million, or $0.87 per diluted share, for the first quarter of 2025 and net income of $34.4 million, or $0.89 per diluted share, for the second quarter of 2024. Second Quarter of 2025 Highlights: Strong return metrics with return on average assets (ROA) of 1.32%, return on average equity (ROE) of 8.91% and return on average tangible equity (ROTE) (non-GAAP) of 12.12% compared to ROA of 1.41%, ROE of 9.67% and ROTE (non-GAAP) of 13.29% for the first quarter of 2025. Pre-provision net revenue to average assets (PPNR) (non-GAAP) was solid at 1.73% for both the second and first quarters of 2025. Net interest income growth of $3.3 million, or 3.90%, and net interest margin on a fully taxable equivalent basis (NIM) (FTE) (non-GAAP) expansion of 7 basis points to 3.88% compared to 3.81% in the first quarter of 2025. Total portfolio loans increased $98.1 million, or 5.02% annualized, compared to March 31, 2025. Total deposits increased $28.0 million, or 1.42% annualized, compared to March 31, 2025. Nonperforming assets decreased $1.1 million to $21.3 million, or 0.27% of total loans plus other real estate owned (OREO), compared to $22.4 million, or 0.29%, at March 31, 2025. "We are pleased to report another strong quarter with excellent returns, driven by continued progress on our performance drivers," said Chris McComish, chief executive officer. "Net interest income growth was driven by net interest margin expansion and solid loan growth while asset quality metrics remain at very favorable levels. As we move into the second half of the year, we remain confident in our strategy, the strength and commitment of our team and our ability to capitalize on future growth opportunities." Net Interest IncomeNet interest income increased $3.3 million, or 3.90%, to $86.6 million in the second quarter of 2025 compared to $83.3 million in the first quarter of 2025. Average interest-earning assets increased $112.5 million to $9.0 billion in the second quarter of 2025 compared to $8.9 billion in the first quarter of 2025. NIM (FTE) (non-GAAP) expansion of 7 basis points to 3.88% compared to 3.81% in the prior quarter. The yield on average total interest-earning assets increased 6 basis points to 5.76% compared to 5.70% in the first quarter of 2025 primarily due to favorable asset repricing. Total interest-bearing liability costs decreased 3 basis points to 2.84% compared to 2.87% in the first quarter of 2025 mainly due to the repricing of certificates of deposits. Asset QualityAsset quality remained strong in the second quarter of 2025. The allowance for credit losses, or ACL, was $98.6 million, or 1.24% of total portfolio loans at June 30, 2025 compared to $99.0 million, or 1.26%, at March 31, 2025. The provision for credit losses was $2.0 million for the second quarter of 2025 compared to a negative $3.0 million in the first quarter of 2025. The negative provision in the first quarter of 2025 related to net recoveries and a $4.2 million decrease in specific reserves. Net charge-offs were $1.2 million, or 0.06% of average loans, compared to net recoveries in the first quarter of 2025. Nonperforming assets decreased $1.1 million to $21.3 million, or 0.27% of total loans plus OREO, compared to $22.4 million, or 0.29%, at March 31, 2025. Noninterest Income and ExpenseNoninterest income increased $3.1 million to $13.5 million in the second quarter of 2025 compared to $10.4 million in the first quarter of 2025. The increase primarily related to a $2.3 million realized loss recognized in the first quarter of 2025 from the repositioning of securities into longer duration, higher-yielding securities. Additionally, debit and credit card fees and service charges on deposit accounts were seasonally higher compared to the first quarter of 2025. Total noninterest expense increased $3.0 million to $58.1 million compared to $55.1 million in the first quarter of 2025. Salaries and employee benefits increased $3.1 million primarily related to annual merit increases, higher incentives and medical costs compared to the first quarter of 2025. Financial ConditionTotal assets were $9.8 billion at June 30, 2025 compared to $9.7 billion at March 31, 2025. Total portfolio loans increased $98.1 million, or 5.02% annualized, compared to March 31, 2025. The commercial loan portfolio increased $67.3 million with growth in commercial real estate of $58.0 million and commercial construction of $17.7 million partially offset by a decrease in commercial and industrial of $8.4 million compared to March 31, 2025. The consumer loan portfolio increased $30.8 million compared to March 31, 2025. Total deposits increased $28.0 million, or 1.42% annualized, compared to March 31, 2025. Noninterest-bearing demand increased $17.9 million, money market $26.2 million and CDs $62.1 million, offset by decreases in interest-bearing demand deposits of $71.5 million and savings of $6.7 million compared to March 31, 2025. Total borrowings increased $55.0 million to $250.3 million compared to $195.3 million at March 31, 2025 to fund loan growth. S&T continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies. Conference CallS&T will host its second quarter 2025 earnings conference call live via webcast at 1:00 p.m. ET on Thursday, July 24, 2025. To access the webcast, go to S&T Bancorp Inc.'s Investor Relations webpage stbancorp.com. After the live presentation, the webcast will be archived at stbancorp.com for 12 months. About S&T Bancorp, Inc. and S&T BankS&T Bancorp, Inc. is a $9.8 billion bank holding company that is headquartered in Indiana, Pennsylvania and trades on the NASDAQ Global Select Market under the symbol STBA. Its principal subsidiary, S&T Bank, was established in 1902 and operates in Pennsylvania and Ohio. For more information, visit stbancorp.com or stbank.com. Follow us on Facebook, Instagram and LinkedIn. Forward-Looking StatementsThis 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, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, financial position and other matters regarding or affecting S&T and its future business and operations. Forward-looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," "believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as "will," "would," "should," "could" or "may." Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cybersecurity concerns; rapid technological developments and changes; operational risks or risk management failures by us or critical third parties, including fraud risk; our ability to manage our reputational risks; sensitivity to the interest rate environment, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight, including changes in regulatory capital requirements and our ability to address those requirements; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; changes in accounting policies, practices or guidance; legislation affecting the financial services industry as a whole, and S&T, in particular; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or costly than anticipated; containing costs and expenses; reliance on significant customer relationships; an interruption or cessation of an important service by a third-party provider; our ability to attract and retain talented executives and other employees; general economic or business conditions, including the strength of regional economic conditions in our market area; ESG practices and disclosures, including climate change, hiring practices, the diversity of the work force and racial and social justice issues; deterioration of the housing market and reduced demand for mortgages; deterioration in the overall macroeconomic conditions or the state of the banking industry that could warrant further analysis of the carrying value of goodwill and could result in an adjustment to its carrying value resulting in a non-cash charge to net income; the stability of our core deposit base and access to contingency funding; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses and geopolitical tensions and conflicts between nations. Many of these factors, as well as other factors, are described in our Annual Report on Form 10-K for the year ended December 31, 2024, including Part I, Item 1A-"Risk Factors" and any of our subsequent filings with the SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made. Non-GAAP Financial MeasuresIn addition to traditional measures presented in accordance with GAAP, our management uses, and this information contains or references, certain non-GAAP financial measures, such as tangible book value, return on average tangible shareholder's equity, PPNR to average assets, efficiency ratio, tangible common equity to tangible assets and net interest margin on an FTE basis. We believe these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Although we believe that these non-GAAP financial measures enhance investors' understanding of our business and performance, these non-GAAP financial measures should not be considered alternatives to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with non-GAAP measures which may be presented by other companies. See Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures for more information related to these financial measures. S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited 2025 2025 2024 Second First Second (dollars in thousands, except per share data) Quarter Quarter Quarter INTEREST AND DIVIDEND INCOME Loans, including fees $117,696 $114,340 $119,564 Investment Securities: Taxable 10,846 10,073 8,761 Tax-exempt 35 157 168 Dividends 329 278 272 Total Interest and Dividend Income 128,906 124,848 128,765 INTEREST EXPENSE Deposits 39,056 38,354 39,629 Borrowings, junior subordinated debt securities and other 3,278 3,171 5,542 Total Interest Expense 42,334 41,525 45,171 NET INTEREST INCOME 86,572 83,323 83,594 Provision for credit losses 1,974 (3,040) 422 Net Interest Income After Provision for Credit Losses 84,598 86,363 83,172 NONINTEREST INCOME Loss on sale of securities — (2,295) (3,150) Debit and credit card 4,588 4,188 4,713 Service charges on deposit accounts 4,090 3,962 4,089 Wealth management 3,042 3,084 2,995 Other 1,780 1,490 4,658 Total Noninterest Income 13,500 10,429 13,305 NONINTEREST EXPENSE Salaries and employee benefits 32,907 29,853 30,388 Data processing and information technology 4,847 4,930 4,215 Occupancy 4,024 4,302 3,649 Furniture, equipment and software 3,352 3,483 3,382 Other taxes 2,088 1,494 1,433 Professional services and legal 1,739 1,286 1,403 Marketing 1,490 1,615 1,404 FDIC insurance 1,062 1,040 1,053 Other noninterest expense 6,605 7,088 6,681 Total Noninterest Expense 58,114 55,091 53,608 Income Before Taxes 39,984 41,701 42,869 Income tax expense 8,084 8,300 8,498 Net Income $31,900 $33,401 $34,371 Per Share Data Shares outstanding at end of period 38,345,448 38,261,299 38,256,204 Average shares outstanding - diluted 38,637,400 38,599,656 38,531,692 Diluted earnings per share $0.83 $0.87 $0.89 Dividends declared per share $0.34 $0.34 $0.33 Dividend yield (annualized) 3.60 % 3.67 % 3.95 % Dividends paid to net income 41.30 % 38.97 % 36.97 % Book value $37.70 $37.06 $34.54 Tangible book value (1) $27.90 $27.24 $24.71 Market value $37.82 $37.05 $33.39 Profitability Ratios (Annualized) Return on average assets 1.32 % 1.41 % 1.45 % Return on average shareholders' equity 8.91 % 9.67 % 10.61 % Return on average tangible shareholders' equity(2) 12.12 % 13.29 % 15.01 % Pre-provision net revenue / average assets(3) 1.73 % 1.73 % 1.82 % Efficiency ratio (FTE)(4) 57.73 % 56.99 % 54.94 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Six Months Ended June 30, (dollars in thousands, except per share data) 2025 2024 INTEREST AND DIVIDEND INCOME Loans, including fees $232,036 $238,141 Investment Securities: Taxable 20,919 17,356 Tax-exempt 192 361 Dividends 607 661 Total Interest and Dividend Income 253,754 256,519 INTEREST EXPENSE Deposits 77,410 76,291 Borrowings, junior subordinated debt securities and other 6,449 13,157 Total Interest Expense 83,859 89,448 NET INTEREST INCOME 169,895 167,071 Provision for credit losses (1,066) 3,049 Net Interest Income After Provision for Credit Losses 170,961 164,022 NONINTEREST INCOME Loss on sale of securities (2,295) (3,147) Debit and credit card 8,776 8,948 Service charges on deposit accounts 8,052 7,917 Wealth management 6,126 6,037 Other 3,270 6,380 Total Noninterest Income 23,929 26,135 NONINTEREST EXPENSE Salaries and employee benefits 62,760 59,900 Data processing and information technology 9,777 9,169 Occupancy 8,326 7,519 Furniture, equipment and software 6,835 6,854 Other Taxes 3,582 3,304 Marketing 3,105 3,347 Professional services and legal 3,025 3,123 FDIC insurance 2,102 2,102 Other noninterest expense 13,693 12,810 Total Noninterest Expense 113,205 108,128 Income Before Taxes 81,685 82,029 Income tax expense 16,384 16,419 Net Income $65,301 $65,610 Per Share Data Average shares outstanding - diluted 38,618,741 38,495,622 Diluted earnings per share $1.69 $1.70 Dividends declared per share $0.68 $0.66 Dividends paid to net income 40.11 % 38.60 % Profitability Ratios (annualized) Return on average assets 1.36 % 1.38 % Return on average shareholders' equity 9.28 % 10.17 % Return on average tangible shareholders' equity(5) 12.69 % 14.44 % Pre-provision net revenue / average assets(6) 1.73 % 1.79 % Efficiency ratio (FTE)(7) 57.37 % 55.57 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter ASSETS Cash and due from banks $203,118 $211,836 $246,310 Securities available for sale, at fair value 1,021,183 1,011,111 977,958 Loans held for sale — — 188 Commercial loans: Commercial real estate 3,520,294 3,462,246 3,347,699 Commercial and industrial 1,512,027 1,520,475 1,611,183 Commercial construction 397,785 380,129 380,128 Total Commercial Loans 5,430,106 5,362,850 5,339,010 Consumer loans: Residential mortgage 1,678,992 1,670,750 1,562,026 Home equity 681,143 660,594 642,225 Installment and other consumer 100,177 98,165 102,660 Consumer construction 44,016 43,990 67,649 Total Consumer Loans 2,504,328 2,473,499 2,374,560 Total Portfolio Loans 7,934,434 7,836,349 7,713,570 Allowance for credit losses (98,580) (99,010) (106,150) Total Portfolio Loans, Net 7,835,854 7,737,339 7,607,420 Federal Home Loan Bank and other restricted stock, at cost 15,817 13,445 12,056 Goodwill 373,424 373,424 373,424 Other Intangible assets, net 2,656 2,813 3,456 Other assets 358,017 368,308 414,650 Total Assets $9,810,069 $9,718,276 $9,635,462 LIABILITIES Deposits: Noninterest-bearing demand $2,182,346 $2,164,491 $2,206,589 Interest-bearing demand 738,251 809,722 789,317 Money market 2,236,298 2,210,081 2,008,486 Savings 879,254 886,007 906,794 Certificates of deposit 1,884,771 1,822,632 1,769,150 Total Deposits 7,920,920 7,892,933 7,680,336 Borrowings: Short-term borrowings 150,000 95,000 275,000 Long-term borrowings 50,856 50,876 39,034 Junior subordinated debt securities 49,448 49,433 49,388 Total Borrowings 250,304 195,309 363,422 Other liabilities 193,352 212,000 270,261 Total Liabilities 8,364,576 8,300,242 8,314,019 SHAREHOLDERS' EQUITY Total Shareholders' Equity 1,445,493 1,418,034 1,321,443 Total Liabilities and Shareholders' Equity $9,810,069 $9,718,276 $9,635,462 Capitalization Ratios Shareholders' equity / assets 14.73 % 14.59 % 13.71 % Tangible common equity / tangible assets(9) 11.34 % 11.16 % 10.21 % Tier 1 leverage ratio 12.18 % 12.09 % 11.51 % Common equity tier 1 capital 14.59 % 14.67 % 13.89 % Risk-based capital - tier 1 14.91 % 14.99 % 14.21 % Risk-based capital - total 16.48 % 16.57 % 15.79 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter Net Interest Margin (FTE) (QTD Averages) ASSETS Interest-bearing deposits with banks $120,156 4.46 % $128,739 4.46 % $143,521 5.47 % Securities, at fair value 1,011,629 3.79 % 990,414 3.59 % 961,552 2.93 % Loans held for sale — 0.00 % — 0.00 % 27 7.37 % Commercial real estate 3,477,321 5.88 % 3,395,599 5.82 % 3,346,725 5.97 % Commercial and industrial 1,519,133 6.71 % 1,535,235 6.69 % 1,606,173 7.38 % Commercial construction 382,363 6.94 % 374,881 6.95 % 374,856 7.82 % Total Commercial Loans 5,378,817 6.19 % 5,305,715 6.15 % 5,327,754 6.52 % Residential mortgage 1,674,231 5.26 % 1,660,177 5.21 % 1,528,200 5.00 % Home equity 670,066 6.37 % 653,113 6.30 % 644,545 7.01 % Installment and other consumer 99,550 7.88 % 99,402 7.97 % 105,313 8.63 % Consumer construction 41,025 6.82 % 45,157 6.86 % 72,899 5.97 % Total Consumer Loans 2,484,872 5.69 % 2,457,849 5.64 % 2,350,957 5.75 % Total Portfolio Loans 7,863,689 6.03 % 7,763,564 5.99 % 7,678,711 6.29 % Total Loans 7,863,689 6.03 % 7,763,564 5.99 % 7,678,738 6.29 % Total other earning assets 16,537 7.70 % 16,768 6.74 % 20,087 7.04 % Total Interest-earning Assets 9,012,011 5.76 % 8,899,485 5.70 % 8,803,898 5.91 % Noninterest-earning assets 712,891 727,176 756,552 Total Assets $9,724,902 $9,626,661 $9,560,450 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing demand $763,687 1.01 % $779,309 1.00 % $822,671 1.13 % Money market 2,188,771 3.04 % 2,088,346 2.97 % 1,938,963 3.25 % Savings 880,448 0.69 % 884,636 0.66 % 915,768 0.70 % Certificates of deposit 1,872,329 4.07 % 1,860,840 4.29 % 1,774,037 4.55 % Total Interest-bearing Deposits 5,705,235 2.75 % 5,613,131 2.77 % 5,451,439 2.92 % Short-term borrowings 135,659 4.63 % 117,722 4.63 % 261,923 5.09 % Long-term borrowings 50,866 3.80 % 50,886 3.80 % 39,099 4.53 % Junior subordinated debt securities 49,439 7.12 % 49,423 7.17 % 49,379 8.18 % Total Borrowings 235,964 4.97 % 218,031 5.01 % 350,401 5.46 % Total Other Interest-bearing Liabilities 32,202 4.39 % 43,926 4.40 % 57,734 5.42 % Total Interest-bearing Liabilities 5,973,401 2.84 % 5,875,088 2.87 % 5,859,574 3.10 % Noninterest-bearing liabilities 2,315,213 2,350,574 2,397,606 Shareholders' equity 1,436,288 1,400,999 1,303,270 Total Liabilities and Shareholders' Equity $9,724,902 $9,626,661 $9,560,450 Net Interest Margin(10) 3.88 % 3.81 % 3.85 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Six Months Ended June 30, (dollars in thousands) 2025 2024 Net Interest Margin (FTE) (YTD Averages) ASSETS Interest-bearing deposits with banks $124,423 4.46 % $144,079 5.61 % Securities, at fair value 1,001,080 3.69 % 964,128 2.87 % Loans held for sale — — % 101 7.16 % Commercial real estate 3,436,686 5.85 % 3,355,933 5.95 % Commercial and industrial 1,527,139 6.70 % 1,616,403 7.37 % Commercial construction 378,643 6.94 % 369,972 7.76 % Total Commercial Loans 5,342,468 6.17 % 5,342,308 6.50 % Residential mortgage 1,667,242 5.23 % 1,503,405 4.97 % Home equity 661,636 6.34 % 646,405 7.00 % Installment and other consumer 99,476 7.93 % 108,106 8.64 % Consumer construction 43,080 6.84 % 71,288 5.79 % Total Consumer Loans 2,471,434 5.67 % 2,329,204 5.73 % Total Portfolio Loans 7,813,902 6.01 % 7,671,512 6.27 % Total Loans 7,813,902 6.01 % 7,671,613 6.27 % Total other earning assets 16,652 7.21 % 22,711 7.08 % Total Interest-earning Assets 8,956,057 5.73 % 8,802,531 5.89 % Noninterest-earning assets 719,996 747,147 Total Assets $9,676,053 $9,549,678 LIABILITIES AND SHAREHOLDERS' EQUITY Interest-bearing demand $771,455 1.01 % $825,883 1.13 % Money market 2,138,836 3.01 % 1,929,486 3.20 % Savings 882,531 0.68 % 927,618 0.66 % Certificates of deposit 1,866,616 4.18 % 1,706,548 4.46 % Total Interest-bearing deposits 5,659,438 2.76 % 5,389,535 2.85 % Short-term borrowings 126,740 4.63 % 335,137 5.26 % Long-term borrowings 50,876 3.80 % 39,160 4.53 % Junior subordinated debt securities 49,431 7.15 % 49,372 8.20 % Total Borrowings 227,047 4.99 % 423,669 5.54 % Total Other Interest-bearing Liabilities 38,032 4.39 % 54,986 5.42 % Total Interest-bearing Liabilities 5,924,517 2.85 % 5,868,190 3.06 % Noninterest-bearing liabilities 2,332,795 2,384,596 Shareholders' equity 1,418,741 1,296,892 Total Liabilities and Shareholders' Equity $9,676,053 $9,549,678 Net Interest Margin(8) 3.84 % 3.84 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter Nonaccrual Loans Commercial loans: % Loans % Loans % Loans Commercial real estate $3,967 0.11 % $3,441 0.10 % $15,090 0.45 % Commercial and industrial 5,459 0.36 % 6,749 0.44 % 7,075 0.44 % Commercial construction 869 0.22 % 1,006 0.26 % 4,960 1.30 % Total Nonaccrual Commercial Loans 10,295 0.19 % 11,196 0.21 % 27,125 0.51 % Consumer loans: Residential mortgage 7,239 0.43 % 6,957 0.42 % 4,698 0.30 % Home equity 3,593 0.53 % 3,968 0.60 % 2,804 0.44 % Installment and other consumer 185 0.18 % 218 0.22 % 230 0.22 % Total Nonaccrual Consumer Loans 11,017 0.44 % 11,143 0.45 % 7,732 0.33 % Total Nonaccrual Loans $21,312 0.27 % $22,339 0.29 % $34,857 0.45 % 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter Loan Charge-offs (Recoveries) Charge-offs $1,656 $884 $845 Recoveries (498) (911) (1,233) Net Loan Charge-offs (Recoveries) $1,158 ($27) ($388) Net Loan Charge-offs (Recoveries) Commercial loans: Commercial real estate ($16) ($146) ($379) Commercial and industrial 331 154 (658) Commercial construction 89 30 — Total Commercial Loan Charge-offs (Recoveries) 404 38 (1,037) Consumer loans: Residential mortgage 13 13 33 Home equity 160 19 274 Installment and other consumer 581 (97) 342 Total Consumer Loan Charge-offs (Recoveries) 754 (65) 649 Total Net Loan Charge-offs (Recoveries) $1,158 ($27) ($388) S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Six Months Ended June 30, (dollars in thousands) 2025 2024 Loan Charge-offs (Recoveries) Charge-offs $2,540 $7,784 Recoveries (1,409) (1,583) Net Loan Charge-offs $1,131 $6,201 Net Loan Charge-offs (Recoveries) Commercial loans: Commercial real estate ($162) $4,859 Commercial and industrial 485 292 Commercial construction 119 — Total Commercial Loan Charge-offs 442 5,151 Consumer loans: Residential mortgage 26 40 Home equity 179 379 Installment and other consumer 484 631 Total Consumer Loan Charge-offs 689 1,050 Total Net Loan Charge-offs $1,131 $6,201 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter Asset Quality Data Nonaccrual loans $21,312 $22,339 $34,857 OREO — 29 95 Total nonperforming assets 21,312 22,368 34,952 Nonaccrual loans / total loans 0.27 % 0.29 % 0.45 % Nonperforming assets / total loans plus OREO 0.27 % 0.29 % 0.45 % Allowance for credit losses / total portfolio loans 1.24 % 1.26 % 1.38 % Allowance for credit losses / nonaccrual loans 463 % 443 % 305 % Net loan charge-offs (recoveries) $1,158 ($27) ($388) Net loan charge-offs (recoveries) (annualized) / average loans 0.06 % (0.00 %) (0.02 %) Six Months Ended June 30, (dollars in thousands) 2025 2024 Asset Quality Data Net loan charge-offs $1,131 $6,201 Net loan charge-offs / average loans 0.03 % 0.16 % S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2025 2025 2024 Second First Second (dollars in thousands, except per share data) Quarter Quarter Quarter (1) Tangible Book Value (non-GAAP) Total shareholders' equity $1,445,493 $1,418,034 $1,321,443 Less: goodwill and other intangible assets, net of deferred tax liability (375,522) (375,646) (376,154) Tangible common equity (non-GAAP) $1,069,971 $1,042,388 $945,289 Common shares outstanding 38,345,448 38,261,299 38,256,204 Tangible book value (non-GAAP) $27.90 $27.24 $24.71 Tangible book value is a preferred industry metric used to measure our company's value and commonly used by investors and analysts. (2) Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $127,951 $135,460 $138,239 Plus: amortization of intangibles (annualized), net of tax 653 772 921 Net income before amortization of intangibles (annualized) $128,604 $136,232 $139,160 Average total shareholders' equity $1,436,288 $1,400,999 $1,303,270 Less: average goodwill and other intangible assets, net of deferred tax liability (375,572) (375,741) (376,285) Average tangible equity (non-GAAP) $1,060,716 $1,025,258 $926,985 Return on average tangible shareholders' equity (non-GAAP) 12.12 % 13.29 % 15.01 % Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance. (3) Pre-provision Net Revenue / Average Assets (non-GAAP) Income before taxes $39,984 $41,701 $42,869 Plus: net loss on sale of securities — 2,295 3,150 Less: gain on Visa Class B-1 exchange — — (3,156) Plus: Provision for credit losses 1,974 (3,040) 422 Total $41,958 $40,956 $43,285 Total (annualized) (non-GAAP) $168,293 $166,099 $174,091 Average assets $9,724,902 $9,626,661 $9,560,450 Pre-provision Net Revenue / Average Assets (non-GAAP) 1.73 % 1.73 % 1.82 % Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses, losses (gains) on sale of securities and gain on Visa exchange. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital. (4) Efficiency Ratio (non-GAAP) Noninterest expense $58,114 $55,091 $53,608 Net interest income per consolidated statements of net income $86,572 $83,323 $83,594 Plus: taxable equivalent adjustment 590 617 682 Net interest income (FTE) (non-GAAP) 87,162 83,940 84,276 Noninterest income 13,500 10,429 13,305 Plus: net loss (gain) on sale of securities — 2,295 3,150 Less: gain on Visa Class B-1 exchange — — (3,156) Net interest income (FTE) (non-GAAP) plus noninterest income $100,662 $96,664 $97,575 Efficiency ratio (non-GAAP) 57.73 % 56.99 % 54.94 % The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), adjusted to exclude losses (gains) on sale of securities and gain on Visa exchange. We believe the FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Six Months Ended June 30, (dollars in thousands) 2025 2024 (5) Return on Average Tangible Shareholders' Equity (non-GAAP) Net income (annualized) $131,684 $131,941 Plus: amortization of intangibles (annualized), net of tax 712 932 Net income before amortization of intangibles (annualized) $132,396 $132,873 Average total shareholders' equity $1,418,741 $1,296,892 Less: average goodwill and other intangible assets, net of deferred tax liability (375,656) (376,402) Average tangible equity (non-GAAP) $1,043,085 $920,490 Return on average tangible shareholders' equity (non-GAAP) 12.69 % 14.44 % Return on average tangible shareholders' equity is a key profitability metric used by management to measure financial performance. (6) Pre-provision Net Revenue / Average Assets (non-GAAP) Income before taxes $81,685 $82,029 Plus: net losses on sale of securities 2,295 3,147 Less: gain on Visa Class B-1 exchange — (3,156) Plus: Provision for credit losses (1,066) 3,049 Total $82,914 $85,069 Total (annualized) (non-GAAP) $167,202 $171,073 Average assets $9,676,053 $9,549,678 Pre-provision Net Revenue / Average Assets (non-GAAP) 1.73 % 1.79 % Pre-provision net revenue to average assets is income before taxes adjusted to exclude provision for credit losses, losses (gains) on sale of securities and gain on Visa exchange. We believe this to be a preferred industry measurement to help evaluate our ability to fund credit losses or build capital. (7) Efficiency Ratio (non-GAAP) Noninterest expense $113,205 $108,128 Net interest income per consolidated statements of net income $169,895 $167,071 Plus: taxable equivalent adjustment 1,208 1,375 Net interest income (FTE) (non-GAAP) 171,103 168,446 Noninterest income 23,929 26,135 Plus: net losses on sale of securities 2,295 3,147 Less: gain on Visa Class B-1 exchange — (3,156) Net interest income (FTE) (non-GAAP) plus noninterest income $197,327 $194,572 Efficiency ratio (non-GAAP) 57.37 % 55.57 % The efficiency ratio is noninterest expense divided by noninterest income plus net interest income, on an FTE basis (non-GAAP), adjusted to exclude losses (gains) on sale of securities and gain on Visa exchange. We believe the FTE basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry practice. (8) Net Interest Margin Rate (FTE) (non-GAAP) Interest income and dividend income $253,754 $256,519 Less: interest expense (83,859) (89,448) Net interest income per consolidated statements of net income 169,895 167,071 Plus: taxable equivalent adjustment 1,208 1,375 Net interest income (FTE) (non-GAAP) $171,103 $168,446 Net interest income (FTE) (annualized) $345,042 $338,743 Average interest-earning assets $8,956,057 $8,802,531 Net interest margin - (FTE) (non-GAAP) 3.84 % 3.84 % The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income. S&T Bancorp, Inc. Consolidated Selected Financial Data Unaudited Definitions and Reconciliation of GAAP to Non-GAAP Financial Measures: 2025 2025 2024 Second First Second (dollars in thousands) Quarter Quarter Quarter (9) Tangible Common Equity / Tangible Assets (non-GAAP) Total shareholders' equity $1,445,493 $1,418,034 $1,321,443 Less: goodwill and other intangible assets, net of deferred tax liability (375,522) (375,646) (376,154) Tangible common equity (non-GAAP) $1,069,971 $1,042,388 $945,289 Total assets $9,810,069 $9,718,276 $9,635,462 Less: goodwill and other intangible assets, net of deferred tax liability (375,522) (375,646) (376,154) Tangible assets (non-GAAP) $9,434,547 $9,342,630 $9,259,308 Tangible common equity to tangible assets (non-GAAP) 11.34 % 11.16 % 10.21 % Tangible common equity to tangible assets is a preferred industry measurement to evaluate capital adequacy. (10) Net Interest Margin Rate (FTE) (non-GAAP) Interest income and dividend income $128,906 $124,848 $128,765 Less: interest expense (42,334) (41,525) (45,171) Net interest income per consolidated statements of net income 86,572 83,323 83,594 Plus: taxable equivalent adjustment 590 617 682 Net interest income (FTE) (non-GAAP) $87,162 $83,940 $84,276 Net interest income (FTE) (annualized) $349,606 $340,423 $338,956 Average interest-earning assets $9,012,011 $8,899,485 $8,803,898 Net interest margin (FTE) (non-GAAP) 3.88 % 3.81 % 3.85 % The interest income on interest-earning assets, net interest income and net interest margin are presented on an FTE basis (non-GAAP). The FTE basis (non-GAAP) adjusts for the tax benefit of income on certain tax-exempt loans and securities and the dividend-received deduction for equity securities using the federal statutory tax rate of 21 percent for each period. We believe this to be the preferred industry measurement of net interest income that provides a relevant comparison between taxable and non-taxable sources of interest income. SOURCE S&T Bancorp, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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

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