S&T Bancorp Reports Q2 2025 Financial Results with $31.9 Million Net Income

S&T Bancorp, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $31.9 million, or $0.83 per diluted share, compared to $34.4 million, or $0.89 per diluted share, in the same period of 2024. For the first half of 2025, net income totaled $65.3 million, down slightly from $65.6 million in the prior year. The bank's net interest income increased by 3.56% to $86.6 million for the quarter, driven by a favorable funding mix and lower interest rates on liabilities, resulting in a net interest margin of 3.88%, up from 3.85% a year earlier.

Total assets rose to $9.8 billion as of June 30, 2025, an increase of $152.1 million from the end of 2024. The growth was primarily attributed to a $191.5 million increase in portfolio loans, which reached $7.9 billion, with notable contributions from the commercial real estate and consumer loan segments. The bank's securities portfolio also expanded by $33.6 million, reflecting a decrease in unrealized losses due to declining interest rates. Customer deposits increased by $162.6 million, contributing to a total deposit base of $7.9 billion, while brokered deposits decreased by $24.8 million.

The provision for credit losses saw a significant increase to $2.0 million for the second quarter, up from $0.4 million in the same period last year, primarily due to higher provisions for unfunded loan commitments and increased loan charge-offs. However, the allowance for credit losses decreased to $98.6 million, or 1.24% of total loans, reflecting improved asset quality. Nonperforming assets also declined, with nonaccrual loans dropping to $21.3 million from $27.9 million at the end of 2024.

Operationally, S&T Bancorp has focused on enhancing its deposit franchise and core profitability. The bank's strategic priorities include growing its customer base and improving asset quality. The effective tax rate for the quarter was 20.2%, slightly higher than the previous year's rate, influenced by a decrease in tax-exempt interest income. Looking ahead, S&T Bancorp aims to maintain its strong capital position, with capital ratios exceeding regulatory requirements, and continues to monitor market conditions and interest rate risks closely.