S&T Bancorp Reports $33.4 Million Net Income for Q1 2025

S&T Bancorp, Inc. reported a net income of $33.4 million, or $0.87 per diluted share, for the first quarter of 2025, reflecting an increase from $31.2 million, or $0.81 per diluted share, in the same period of 2024. The company's net interest income remained relatively stable at $83.3 million, compared to $83.5 million in the prior year. The net interest margin on a fully taxable equivalent basis was 3.81%, slightly down from 3.84% a year earlier. The provision for credit losses showed a significant decrease, registering a negative $3.0 million, down from a positive $2.6 million in the previous year, primarily due to a reduction in specific reserves for individually evaluated loans.

Total assets for S&T Bancorp stood at $9.7 billion as of March 31, 2025, unchanged from December 31, 2024. The portfolio loans increased by $93.4 million to $7.8 billion, driven by growth in both commercial and consumer loan segments. The commercial loan portfolio rose by $81.6 million, while consumer loans increased by $11.8 million. The securities portfolio also saw an uptick, growing by $23.5 million to $1.0 billion, with a notable improvement in unrealized losses attributed to declining interest rates.

Customer deposits increased by $134.7 million to $7.7 billion, contributing to a total deposit growth of $109.8 million, or 1.4%, compared to the end of 2024. This growth allowed S&T Bancorp to reduce its reliance on higher-cost borrowings, with total borrowings decreasing by $55.0 million to $195.3 million. The bank's total shareholders' equity rose by $37.7 million to $1.4 billion, bolstered by net income and other comprehensive income, despite dividend payments totaling $13.1 million.

In terms of operational metrics, S&T Bancorp's allowance for credit losses decreased to $99.0 million, or 1.26% of total portfolio loans, down from $101.5 million, or 1.31%, at the end of 2024. Nonperforming assets also declined, with nonaccrual loans decreasing to $22.3 million from $27.9 million. The bank's effective tax rate for the quarter was 19.9%, slightly lower than the 20.2% reported in the previous year, primarily due to an increase in low-income housing tax credits.

Looking ahead, S&T Bancorp aims to continue focusing on growing its deposit franchise and enhancing core profitability while maintaining asset quality. The bank's strategic priorities for 2025 include improving customer engagement and expanding its service offerings in Pennsylvania and Ohio, where it operates. The management remains cautious about potential economic fluctuations and their impact on credit quality and overall financial performance.