S&T Bancorp Reports $131.3 Million Net Income for Fiscal Year 2024

S&T Bancorp, Inc. reported a net income of $131.3 million for the fiscal year ending December 31, 2024, a decrease from $144.8 million in 2023. This decline in profitability is attributed to a reduction in net interest income, which fell by 4.2% to $334.8 million, primarily due to rising interest expenses that outpaced interest income growth. The diluted earnings per share also decreased to $3.41 from $3.74 in the previous year. The net interest margin on a fully taxable equivalent basis decreased to 3.82%, down from 4.13% in 2023, reflecting the impact of higher interest rates on total interest-bearing liabilities.

In terms of operational changes, S&T Bancorp experienced a notable increase in total loans, which rose to $7.7 billion, a 1.2% increase from the previous year. This growth was primarily driven by a 5.8% increase in customer deposits, which reached $7.6 billion, allowing the bank to reduce its reliance on higher-cost borrowings. The bank's total assets increased to approximately $9.7 billion, up from $9.6 billion in 2023. The company also reported a decrease in its allowance for credit losses to $101.5 million, reflecting improved asset quality and a reduction in criticized and classified loans.

Strategically, S&T Bancorp has focused on enhancing its deposit franchise and core profitability. The bank's customer deposit growth was significant, with a $411.7 million increase in customer deposits, while brokered deposits decreased by 40% to $225.3 million. The bank's efficiency ratio, a measure of operating efficiency, increased to 55.99% from 51.35% in the previous year, indicating rising operational costs relative to income.

Looking ahead, S&T Bancorp aims to continue its growth strategy through both organic growth and potential acquisitions. The bank's management expressed optimism about improving loan pipelines and positioning for better results in 2025, despite the challenges posed by the current interest rate environment. The bank's capital ratios remain strong, with a leverage ratio of 11.98% and a common equity tier 1 ratio of 14.58%, both exceeding regulatory requirements. The company is committed to maintaining its well-capitalized status while navigating the evolving economic landscape.