S&T Bancorp’s fourth quarter results garnered a positive market response, with management attributing performance to commercial lending strength, disciplined deposit growth, and improved net interest margins. CEO Chris McComish highlighted the company’s ability to expand the net interest margin to 3.99%, the highest since 2023, and pointed to robust commercial and industrial (C&I) and commercial real estate (CRE) loan activity. The quarter also saw continued success in reducing criticized and classified loans, reflecting a focus on asset quality, while a new $100 million share repurchase program was announced, enabled by strong capital levels.
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) Q4 CY2025 Highlights:
- Revenue: $105.9 million vs analyst estimates of $103.8 million (11.5% year-on-year growth, 2% beat)
- Adjusted EPS: $0.89 vs analyst estimates of $0.88 (1.7% beat)
- Adjusted Operating Income: $43.02 million vs analyst estimates of $46.52 million (40.6% margin, 7.5% miss)
- Market Capitalization: $1.56 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 Q4 Earnings Call
- Justin Crowley (Piper Sandler) asked if loan growth could accelerate to a higher pace; President David Antolik said growth is constrained by asset quality standards and that hiring new bankers remains the top priority.
- Daniel Tamayo (Raymond James) inquired about funding loan growth with deposits; CEO Chris McComish stressed the importance of deposit growth and said incentives are aligned to support this strategy.
- Charlie (KBW, for Kelly Motta) questioned recent charge-offs related to nonperforming asset resolutions; Antolik confirmed these were tied to previously identified credits and highlighted ongoing reductions in criticized loans.
- Matthew Breese (Stephens) probed the impact of AI adoption on expenses and efficiency; McComish explained that while AI is saving millions in fraud prevention, material P&L impact is still several years away.
- Daniel Karthaus (Janney Montgomery Scott) asked about competitive deposit pressures; McComish described the market as rational, noting a responsive approach to pricing and confidence in deposit growth goals.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be paying close attention to (1) the pace of commercial loan growth and banker hiring, (2) the ability to fund asset growth through core deposit expansion rather than higher-cost alternatives, and (3) the execution of the announced $100 million share repurchase program. Additionally, we will monitor progress in reducing criticized loans and how effectively the company manages its net interest margin as rate conditions evolve.
S&T Bancorp currently trades at $41.70, in line with $41.94 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).
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