S&T Bancorp’s third quarter results were well received by the market, as the company delivered consistent revenue growth and a notable non-GAAP earnings per share beat. Management attributed performance to strategic repositioning of the balance sheet, which reduced asset sensitivity and enabled stronger net interest income through interest rate cycles. CEO Christopher McComish emphasized the benefit of maintaining a stable deposit mix, with noninterest-bearing deposits comprising 28% of total deposits, supporting net interest margin expansion. He also noted that while nonperforming assets increased, they remained within manageable levels and did not raise concern over specific asset classes or regions. Expenses were tightly managed, contributing to improved operating efficiency.
Is now the time to buy STBA? Find out in our full research report (it’s free for active Edge members).
S&T Bancorp (STBA) Q3 CY2025 Highlights:
- Revenue: $103.6 million vs analyst estimates of $102.7 million (7.5% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.91 vs analyst estimates of $0.86 (6% beat)
- Adjusted Operating Income: $44.44 million vs analyst estimates of $45.33 million (42.9% margin, 2% miss)
- Market Capitalization: $1.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From S&T Bancorp’s Q3 Earnings Call
- Justin Crowley (Piper Sandler) asked about the balance between loan originations and paydowns impacting growth. President Dave Antolik explained that higher paydowns and market uncertainty led to more modest growth, but construction pipelines should drive stronger performance ahead.
- Daniel Tamayo (Raymond James) inquired about competitive pressures on deposit pricing after recent rate cuts. CFO Mark Kochvar described increased competition for CDs but expects deposit betas and pricing discipline to maintain margin stability in the near term.
- David Bishop (Hovde Group) sought clarification on the bank’s approach to hiring and its impact on expenses. Antolik said new bankers are expected to contribute to growth and that productivity gains through technology will help control costs.
- Kelly Motta (KBW) questioned the sustainability of current asset quality and opportunities for core funding. CEO McComish emphasized a focus on proactive deposit gathering and maintaining a favorable loan-to-deposit ratio.
- Matthew Breese (Stephens) asked about the impact of additional rate cuts on net interest margin and timing of crossing the $10 billion asset threshold. Kochvar responded that the margin is protected in the near term, and McComish noted additional regulatory developments could affect future growth plans.
Catalysts in Upcoming Quarters
The StockStory team will be watching (1) the pace and composition of loan growth, especially in commercial real estate and C&I segments; (2) S&T Bancorp’s ability to sustain deposit mix and net interest margin in a competitive, rate-cut environment; and (3) the effectiveness of new banker hires and technological investments in driving productivity gains. Progress on regulatory changes and M&A opportunities could also influence growth trajectories.
S&T Bancorp currently trades at $35.96, in line with $35.64 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
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