S&T Bancorp Inc. Files Q2 2024 10-Q Report

TL;DR

STBA 10-Q filed for Q2 2024. Financials look steady.

AI Summary

S&T Bancorp Inc. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position during the second quarter of 2024. Key financial data and operational updates are provided for stakeholders.

Why It Matters

This report provides investors and analysts with a detailed look at S&T Bancorp's financial health and operational performance for the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial disclosures for S&T Bancorp Inc.

Key Players & Entities

• S&T Bancorp Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240801 (date) — Date of filing

FAQ

Key Financial Figures

• $2.50 — ange on which registered Common Stock, $2.50 par value STBA NASDAQ Global Select Mar

Filing Documents

• stba-20240630.htm (10-Q) — 3907KB
• exhibit311.htm (EX-31.1) — 9KB
• exhibit312.htm (EX-31.2) — 9KB
• exhibit32.htm (EX-32) — 6KB
• 0000719220-24-000073.txt ( ) — 17166KB
• stba-20240630.xsd (EX-101.SCH) — 40KB
• stba-20240630_cal.xml (EX-101.CAL) — 116KB
• stba-20240630_def.xml (EX-101.DEF) — 386KB
• stba-20240630_lab.xml (EX-101.LAB) — 679KB
• stba-20240630_pre.xml (EX-101.PRE) — 569KB
• stba-20240630_htm.xml (XML) — 4551KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets 2 Condensed Consolidated Statements of Comprehensive Income 3 Consolidated Statements of Changes in Shareholders' Equity 4 Condensed Consolidated Statements of Cash Flows 6

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 4.

Controls and Procedures

Controls and Procedures 45

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 46 Item 1A.

Risk Factors

Risk Factors 46 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 46 Item 3. Defaults Upon Senior Securities 46 Item 4. Mine Safety Disclosures 46 Item 5. Other Information 46 Item 6. Exhibits 47

Signatures

Signatures 48 1 Table of Contents S&T BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, 2024 December 31, 2023 (in thousands, except share and per share data) (Unaudited) (Audited) ASSETS Cash and due from banks, including interest-bearing deposits of $ 172,549 and $ 160,802 at June 30, 2024 and December 31, 2023 $ 246,310 $ 233,612 Securities available for sale, at fair value 977,958 970,391 Loans held for sale 188 153 Portfolio loans, net of unearned income 7,713,570 7,653,341 Allowance for credit losses ( 106,150 ) ( 107,966 ) Portfolio loans, net 7,607,420 7,545,375 Bank owned life insurance 84,187 84,008 Premises and equipment, net 46,959 49,006 Federal Home Loan Bank and other restricted stock, at cost 12,056 25,082 Goodwill 373,424 373,424 Other assets 286,960 270,475 Total Assets $ 9,635,462 $ 9,551,526 LIABILITIES Deposits: Noninterest-bearing demand $ 2,206,589 $ 2,221,942 Interest-bearing demand 789,317 825,787 Money market 2,008,486 1,941,842 Savings 906,794 950,546 Certificates of deposit 1,769,150 1,581,652 Total Deposits 7,680,336 7,521,769 Short-term borrowings 275,000 415,000 Long-term borrowings 39,034 39,277 Junior subordinated debt securities 49,388 49,358 Other liabilities 270,261 242,677 Total Liabilities 8,314,019 8,268,081 SHAREHOLDERS' EQUITY Common stock ($ 2.50 par value) Authorized— 50,000,000 shares Issued— 41,449,444 shares at June 30, 2024 and December 31, 2023 Outstanding— 38,256,204 shares at June 30, 2024 and 38,232,806 shares at December 31, 2023 103,623 103,623 Additional paid-in capital 409,874 409,034 Retained earnings 999,115 959,604 Accumulated other comprehensive loss ( 93,934 ) ( 90,901 ) Treasury stock — 3,193,240 shares at June 30, 2024 and 3,216,638 shares at December 31, 2023, at cost ( 97,235 ) ( 97,915 ) Total Shareholders' Equity 1,321,443 1,283,445 Total Liabilities and Shareholders' Equity $ 9,635,462 $ 9,551,526 See Notes to Consolid

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 1. BASIS OF PRESENTATION Principles of Consolidation The interim Consolidated Financial Statements include the accounts of S&T Bancorp, Inc., or S&T, and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated in consolidation. Investments of 20 percent to 50 percent of the outstanding common stock of investees are accounted for using the equity method of accounting. Basis of Presentation The accompanying unaudited interim Consolidated Financial Statements of S&T have been prepared in accordance with generally accepted accounting principles, or GAAP, in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission, or SEC, on February 27, 2024 (2023 Form 10-K). In the opinion of management, the accompanying interim financial information reflects all adjustments, consisting of normal recurring adjustments, necessary to present fairly our financial position and the results of operations for each of the interim periods presented. Results of operations for interim periods are not necessarily indicative of the results of operations that may be expected for a full year or any future period. Reclassification A mounts in prior period financial statements and footnotes are reclassified whenever necessary to conform to the current period presentation. Reclassifications had no effect on our consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Recently Issued Accounting Standards Not Yet Adopted Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This update does not change how a public entity identifies its operating segments; however, it does require that an entity that has a single reportable segment provide all the disclosures required by the amendments in this update. The amendments in this update are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity should apply the amendments in this update retrospectively to all prior periods presented in the consolidated financial statements. Early adoption is permitted. We currently have one reportable operating segment, Community Banking. This ASU will not impact our consolidated financial statements and will have minimal impact to our disclosures, requiring identification of the chief operating decision maker and the information used to make operating decisions and to allocate resources. Income Taxes (Topic 740) Improvements to Income Tax Disclosures In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures to enhance the transparency and decision usefulness of the disclosures. The amendments in this update address investor requests for more transparency about income tax information through improvements to disclosures primarily related to the rate reconciliation and income taxes paid information. The amendments in this update are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual consolidated financial statements that have not yet been issued. This ASU

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3. FAIR VALUE MEASUREMENTS We use fair value measurements when recording and disclosing certain financial assets and liabilities. Debt securities, equity securities, securities held in a deferred compensation plan and derivative financial instruments are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record other financial instruments at fair value on a nonrecurring basis, such as loans held for sale, individually assessed loans, other real estate owned, or OREO, and other repossessed assets, mortgage servicing rights, or MSRs, and certain other assets. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction. In determining fair value, we use various valuation approaches, including market, income and cost approaches. The fair value standard establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, which are developed based on market data that we have obtained from independent sources. Unobservable inputs reflect our estimates of assumptions that market participants would use in pricing an asset or liability, which are developed based on the best information available in the circumstances. The fair value hierarchy gives the highest priority to unadjusted quoted market prices in active marke

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Assets and Liabilities Recorded at Fair Value on a Recurring Basis The following tables present our assets and liabilities that are measured at fair value on a recurring basis by fair value hierarchy level at the dates presented: June 30, 2024 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Available-for-sale debt securities: U.S. Treasury securities $ 113,449 $ — $ — $ 113,449 Obligations of U.S. government corporations and agencies — 24,786 — 24,786 Collateralized mortgage obligations of U.S. government corporations and agencies — 519,325 — 519,325 Residential mortgage-backed securities of U.S. government corporations and agencies — 35,298 — 35,298 Commercial mortgage-backed securities of U.S. government corporations and agencies — 256,540 — 256,540 Obligations of states and political subdivisions — 24,441 — 24,441 Total Available-for-Sale Debt Securities 113,449 860,390 — 973,839 Equity securities 4,119 — — 4,119 Total Securities Available for Sale 117,568 860,390 — 977,958 Securities held in a deferred compensation plan 10,503 — — 10,503 Derivative financial assets: Interest rate swaps - commercial loans — 70,313 — 70,313 Total Assets $ 128,071 $ 930,703 $ — $ 1,058,774 LIABILITIES Derivative financial liabilities: Interest rate swaps - commercial loans $ — $ 70,765 $ — $ 70,765 Interest rate swaps - cash flow hedge — 17,156 — 17,156 Total Liabilities $ — $ 87,921 $ — $ 87,921 December 31, 2023 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Available-for-sale debt securities: U.S. Treasury securities $ 133,786 $ — $ — $ 133,786 Obligations of U.S. government corporations and agencies — 32,513 — 32,513 Collateralized mortgage obligations of U.S. government corporations and agencies — 460,939 — 460,939 Residential mortgage-backed securities of U.S. government corporations and agencies — 38,177 — 38,177 Commercial mortgage-backed securities of U.S. government c

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Assets Recorded at Fair Value on a Nonrecurring Basis We may be required to measure certain assets and liabilities at fair value on a nonrecurring basis. Nonrecurring assets are recorded at the lower of cost or fair value in our consolidated financial statements. There were no liabilities measured at fair value on a nonrecurring basis at either June 30, 2024 or December 31, 2023. There were no assets measured at fair value on a nonrecurring basis as of June 30, 2024 and one Level 2 individually assessed loan measured at fair value on a nonrecurring basis as of December 31, 2023 for $ 5.9 million. Fair

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