S&T Bancorp's Robust Q3 2024 Performance: A Deep Dive
Generated by AI AgentAinvest Technical Radar
Friday, Oct 18, 2024 8:01 am ET1min read
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S&T Bancorp, Inc. (S&T) (NASDAQ: STBA) recently announced its third-quarter 2024 results, showcasing a strong performance across various metrics. The holding company for S&T Bank reported net income of $32.6 million, or $0.85 per diluted share, compared to $34.4 million in the second quarter of 2024 and $33.5 million in the third quarter of 2023.
Net interest income increased by $0.9 million to $84.5 million for the third quarter of 2024, driven by a strong net interest margin (NIM) on a fully taxable equivalent basis (FTE) of 3.82%. This margin remained robust, despite a slight decrease from the previous quarter's 3.85%. The yield on total average loans increased to 6.30%, while total interest-bearing deposit costs rose to 3.04%.
Customer deposit growth of $100.5 million, or 5.42% annualized, was partially offset by lower brokered deposits of $126.0 million, resulting in a net decrease in total deposits of $25.5 million for the third quarter of 2024. This shift reflects a strategic focus on core deposits and a reduction in higher-cost brokered deposits.
Asset quality improved during the quarter, with the allowance for credit losses (ACL) decreasing to $104.3 million, or 1.36% of total portfolio loans, from $106.2 million, or 1.38%, in the previous quarter. The provision for credit losses improved by $0.9 million, with a negative $0.5 million provision for the third quarter, indicating a lower level of ACL primarily related to a decrease in qualitative reserve due to improvement in asset quality. Net loan charge-offs were $2.1 million, while nonperforming assets to total portfolio loans plus other real estate owned decreased to 0.41% from 0.45% in the previous quarter.
Noninterest income decreased by $1.4 million to $11.9 million, primarily due to changes in the value of Visa Class B-1 common stock and losses related to the repositioning of securities. Total noninterest expense increased by $1.8 million to $55.4 million, reflecting higher expenses in various areas.
S&T Bancorp's solid performance in the third quarter of 2024 was highlighted by strong return metrics, continued improvement in asset quality, and a fifth consecutive quarter of customer deposit growth. The company's capital levels continue to build, positioning it to take advantage of market opportunities. These results are a testament to the commitment and hard work of S&T Bancorp's teams, who remain focused on their people-forward purpose.
Net interest income increased by $0.9 million to $84.5 million for the third quarter of 2024, driven by a strong net interest margin (NIM) on a fully taxable equivalent basis (FTE) of 3.82%. This margin remained robust, despite a slight decrease from the previous quarter's 3.85%. The yield on total average loans increased to 6.30%, while total interest-bearing deposit costs rose to 3.04%.
Customer deposit growth of $100.5 million, or 5.42% annualized, was partially offset by lower brokered deposits of $126.0 million, resulting in a net decrease in total deposits of $25.5 million for the third quarter of 2024. This shift reflects a strategic focus on core deposits and a reduction in higher-cost brokered deposits.
Asset quality improved during the quarter, with the allowance for credit losses (ACL) decreasing to $104.3 million, or 1.36% of total portfolio loans, from $106.2 million, or 1.38%, in the previous quarter. The provision for credit losses improved by $0.9 million, with a negative $0.5 million provision for the third quarter, indicating a lower level of ACL primarily related to a decrease in qualitative reserve due to improvement in asset quality. Net loan charge-offs were $2.1 million, while nonperforming assets to total portfolio loans plus other real estate owned decreased to 0.41% from 0.45% in the previous quarter.
Noninterest income decreased by $1.4 million to $11.9 million, primarily due to changes in the value of Visa Class B-1 common stock and losses related to the repositioning of securities. Total noninterest expense increased by $1.8 million to $55.4 million, reflecting higher expenses in various areas.
S&T Bancorp's solid performance in the third quarter of 2024 was highlighted by strong return metrics, continued improvement in asset quality, and a fifth consecutive quarter of customer deposit growth. The company's capital levels continue to build, positioning it to take advantage of market opportunities. These results are a testament to the commitment and hard work of S&T Bancorp's teams, who remain focused on their people-forward purpose.
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