S&T Bancorp Inc. Files Q3 2024 10-Q Report

TL;DR

STBA 10-Q filed for Q3 2024. Financials look solid.

AI Summary

S&T Bancorp Inc. reported its financial results for the period ending September 30, 2024. The company's filing details its financial performance and position as of the third quarter of 2024, with specific data points related to its operations and balance sheet.

Why It Matters

This 10-Q filing provides investors and analysts with crucial financial data for S&T Bancorp Inc., enabling them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing financial updates, not indicating any immediate or significant new risks.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which the financial data is reported.)
• 2024-09-30 — As of Date (The date as of which the financial statements are presented.)
• 2023-12-31 — Previous Year End (Provides a comparison point to the previous fiscal year-end.)

Key Players & Entities

• S&T BANCORP INC (company) — Filer of the 10-Q report
• 20240930 (date) — Conformed period of report
• 20241031 (date) — Filed as of date
• PA (location) — State of incorporation and business address
• 724-427-2347 (phone_number) — Business phone number

FAQ

Key Financial Figures

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

Filing Documents

• stba-20240930.htm (10-Q) — 3842KB
• exhibit311.htm (EX-31.1) — 9KB
• exhibit312.htm (EX-31.2) — 9KB
• exhibit32.htm (EX-32) — 6KB
• 0000719220-24-000091.txt ( ) — 17131KB
• stba-20240930.xsd (EX-101.SCH) — 41KB
• stba-20240930_cal.xml (EX-101.CAL) — 117KB
• stba-20240930_def.xml (EX-101.DEF) — 385KB
• stba-20240930_lab.xml (EX-101.LAB) — 689KB
• stba-20240930_pre.xml (EX-101.PRE) — 579KB
• stba-20240930_htm.xml (XML) — 4546KB

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 30 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 Item 4.

Controls and Procedures

Controls and Procedures 46

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 47 Item 1A.

Risk Factors

Risk Factors 47 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3. Defaults Upon Senior Securities 47 Item 4. Mine Safety Disclosures 47 Item 5. Other Information 47 Item 6. Exhibits 48

Signatures

Signatures 49 1 Table of Contents S&T BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) September 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 $ 139,618 and $ 160,802 at September 30, 2024 and December 31, 2023 $ 228,090 $ 233,612 Securities available for sale, at fair value 1,011,312 970,391 Loans held for sale 307 153 Portfolio loans, net of unearned income 7,689,054 7,653,341 Allowance for credit losses ( 104,321 ) ( 107,966 ) Portfolio loans, net 7,584,733 7,545,375 Bank owned life insurance 84,690 84,008 Premises and equipment, net 45,917 49,006 Federal Home Loan Bank and other restricted stock, at cost 11,484 25,082 Goodwill 373,424 373,424 Other intangible assets, net 3,173 4,059 Other assets 240,817 266,416 Total Assets $ 9,583,947 $ 9,551,526 LIABILITIES Deposits: Noninterest-bearing demand $ 2,157,537 $ 2,221,942 Interest-bearing demand 773,224 825,787 Money market 2,074,095 1,941,842 Savings 879,653 950,546 Certificates of deposit 1,770,332 1,581,652 Total Deposits 7,654,841 7,521,769 Short-term borrowings 225,000 415,000 Long-term borrowings 64,015 39,277 Junior subordinated debt securities 49,403 49,358 Other liabilities 214,934 242,677 Total Liabilities 8,208,193 8,268,081 SHAREHOLDERS' EQUITY Common stock ($ 2.50 par value) Authorized— 50,000,000 shares Issued— 41,449,444 shares at September 30, 2024 and December 31, 2023 Outstanding— 38,259,730 shares at September 30, 2024 and 38,232,806 shares at December 31, 2023 103,623 103,623 Additional paid-in capital 410,752 409,034 Retained earnings 1,019,033 959,604 Accumulated other comprehensive loss ( 60,508 ) ( 90,901 ) Treasury stock — 3,189,714 shares at September 30, 2024 and 3,216,638 shares at December 31, 2023, at cost ( 97,146 ) ( 97,915 ) Total Shareholders' Equity 1,375,754 1,283,445 Total Liabilities an

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: September 30, 2024 (dollars in thousands) Level 1 Level 2 Level 3 Total ASSETS Available-for-sale debt securities: U.S. Treasury securities $ 118,109 $ — $ — $ 118,109 Obligations of U.S. government corporations and agencies — 15,026 — 15,026 Collateralized mortgage obligations of U.S. government corporations and agencies — 565,312 — 565,312 Residential mortgage-backed securities of U.S. government corporations and agencies — 35,653 — 35,653 Commercial mortgage-backed securities of U.S. government corporations and agencies — 248,044 — 248,044 Obligations of states and political subdivisions — 24,713 — 24,713 Total Available-for-Sale Debt Securities 118,109 888,748 — 1,006,857 Equity securities 4,455 — — 4,455 Total Securities Available for Sale 122,564 888,748 — 1,011,312 Securities held in a deferred compensation plan 10,800 — — 10,800 Derivative financial assets: Interest rate swap contracts - commercial loans — 45,690 — 45,690 Interest rate lock commitments - mortgage loans — — 64 64 Total Assets $ 133,364 $ 934,438 $ 64 $ 1,067,866 LIABILITIES Derivative financial liabilities: Interest rate swap contracts - commercial loans $ — $ 46,156 $ — $ 46,156 Interest rate swap contracts - cash flow hedge — 7,115 — 7,115 Total Liabilities $ — $ 53,271 $ — $ 53,271 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 corporati

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 fin

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