5 Revealing Analyst Questions From S&T Bancorp’s Q4 Earnings Call

Regional banking company S&T Bancorp beat Wall Street’s revenue expectations in Q4 CY2025, with sales up 11.5% year on year to $105.9 million. Its non-GAAP profit of $0.89 per share was 1.7% above analysts’ consensus estimates.

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: $1.65 billion

StockStory’s Take

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.

Looking ahead, S&T Bancorp’s guidance is anchored in expectations for mid-single-digit loan growth, continued core deposit expansion, and stable asset quality. Management emphasized plans to grow the commercial banking team and sustain C&I momentum, while maintaining expense discipline. CFO Mark Kochvar stated, “Our more neutral interest rate risk management position and pricing discipline will mitigate any rate down impact,” suggesting net interest margins should remain resilient. The company also aims to balance organic growth with the flexibility to pursue mergers or acquisitions as opportunities arise.

Key Insights from Management’s Remarks

Management credited commercial loan growth, deposit gathering, and margin expansion as the main factors shaping the quarter, while noting progress in asset quality and capital deployment.

• Commercial lending momentum: Growth in C&I and CRE portfolios was driven by successful new customer acquisition and increased revolving balances. Asset-based lending activity was especially strong, with management noting several new clients in retail, utilities, and service sectors.
• Deposit growth focus: The company saw strong consumer deposit inflows, which offset some large, anomalous commercial outflows. Investments in technology and banker recruitment supported this deposit growth, and management reiterated the importance of core deposit funding to support profitable asset growth.
• Net interest margin expansion: Net interest margin improved by six basis points from the prior quarter, aided by declining funding costs and strategic deposit repricing as short-term interest rates fell. Management expects margin stability in the mid-to-high 3.9% range in 2026, citing disciplined rate management.
• Asset quality management: S&T Bancorp resolved several previously identified problem loans, resulting in higher charge-offs but a notable reduction in criticized and classified loan balances. Management stressed that the reduction in these riskier loans provides a stronger foundation for future asset quality.
• $100 million share repurchase authorization: The board approved a new $100 million share buyback program, underscoring the company’s strong capital position. Management indicated this will not impede its ability to pursue strategic opportunities, including potential M&A.

Drivers of Future Performance

S&T Bancorp’s outlook centers on commercial lending expansion, deposit growth, and maintaining stable margins amid evolving interest rates and credit conditions.

• Commercial team expansion: Management plans further hires in C&I and CRE banking to drive loan growth, emphasizing that new talent is being targeted across all geographies. This hiring initiative is expected to boost both loan originations and core deposit acquisition.
• Margin and funding discipline: The company’s neutral interest rate positioning and responsive pricing strategies on deposits are designed to preserve net interest margins. Management anticipates CD (certificate of deposit) rates will continue to decline, supporting lower overall funding costs despite competitive pressures.
• Expense control and efficiency: With most infrastructure investments completed, future expense growth is expected to be limited to revenue-generating roles. Management forecasts annual expense growth of approximately 3%, aiming to keep the efficiency ratio in the mid-50% range while leveraging technology and selective staff additions.

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 $43.16, up from $41.94 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

Regional banking company S&T Bancorp announced better-than-expected revenue in Q4 CY2025, with sales up 10.8% year on year to $105.3 million. Its GAAP profit of $0.89 per share was 1.7% above analysts’ consensus estimates.

S&T Bancorp (STBA) Q4 CY2025 Highlights:

• Net Interest Income: $90.96 million vs analyst estimates of $89.97 million (9.3% year-on-year growth, 1.1% beat)
• Net Interest Margin: 4% vs analyst estimates of 3.9% (8.7 basis point beat)
• Revenue: $105.3 million vs analyst estimates of $103.8 million (10.8% year-on-year growth, 1.4% beat)
• Efficiency Ratio: 54% vs analyst estimates of 55.2% (117.7 basis point beat)
• EPS (GAAP): $0.89 vs analyst estimates of $0.88 (1.7% beat)
• Tangible Book Value per Share: $29.11 vs analyst estimates of $29.25 (10.9% year-on-year growth, in line)
• Market Capitalization: $1.60 billion

"I'm extremely proud of the strong performance we delivered in the fourth quarter and across 2025. These results reflect disciplined execution of our strategy, continued momentum on our key business drivers and strong core profitability," said Chris McComish, chief executive officer.

Company Overview

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

Sales Growth

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Regrettably, S&T Bancorp’s revenue grew at a sluggish 3.4% compounded annual growth rate over the last five years. This was below our standard for the banking sector and is a rough starting point for our analysis.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. S&T Bancorp’s recent performance shows its demand has slowed as its revenue was flat over the last two years.

This quarter, S&T Bancorp reported year-on-year revenue growth of 10.8%, and its $105.3 million of revenue exceeded Wall Street’s estimates by 1.4%.

Net interest income made up 84.6% of the company’s total revenue during the last five years, meaning S&T Bancorp barely relies on non-interest income to drive its overall growth.

Our experience and research show the market cares primarily about a bank’s net interest income growth as non-interest income is considered a lower-quality and non-recurring revenue source.

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Tangible Book Value Per Share (TBVPS)

Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They’re also valued based on their balance sheet strength and ability to compound book value (another name for shareholders’ equity) over time.

Because of this, tangible book value per share (TBVPS) emerges as the critical performance benchmark. By excluding intangible assets with uncertain liquidation values, this metric captures real, liquid net worth per share. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.

S&T Bancorp’s TBVPS grew at an excellent 8.2% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 10.8% annually over the last two years from $23.70 to $29.11 per share.

Over the next 12 months, Consensus estimates call for S&T Bancorp’s TBVPS to grow by 8.2% to $31.50, paltry growth rate.

Key Takeaways from S&T Bancorp’s Q4 Results

It was good to see S&T Bancorp narrowly top analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates, leading to a slight EPS beat. Zooming out, we think this was a solid quarter. The stock remained flat at $41.94 immediately following the results.

Is S&T Bancorp an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).

Regional banking company S&T Bancorp will be reporting results tomorrow before market open. Here’s what to look for.

S&T Bancorp beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $103.6 million, up 6.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ tangible book value per share estimates.

Is S&T Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting S&T Bancorp’s revenue to grow 9.3% year on year to $103.8 million, a reversal from the 8.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. S&T Bancorp has missed Wall Street’s revenue estimates three times over the last two years.

Looking at S&T Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 17.2%, topping estimates by 5.3%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. S&T Bancorp is down 1.4% during the same time and is heading into earnings with an average analyst price target of $41.40 (compared to the current share price of $40.20).

Regional banking company S&T Bancorp will be reporting earnings this Thursday before market hours. Here’s what investors should know.

S&T Bancorp beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $103.6 million, up 6.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ tangible book value per share estimates.

Is S&T Bancorp a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting S&T Bancorp’s revenue to grow 9.3% year on year to $103.8 million, a reversal from the 8.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. S&T Bancorp has missed Wall Street’s revenue estimates three times over the last two years.

Looking at S&T Bancorp’s peers in the regional banks segment, some have already reported their Q4 results, giving us a hint as to what we can expect. ServisFirst Bancshares delivered year-on-year revenue growth of 22.9%, beating analysts’ expectations by 6.8%, and Simmons First National reported revenues up 15.9%, topping estimates by 4.1%.

Read our full analysis of ServisFirst Bancshares’s results here and Simmons First National’s results here.

Investors in the regional banks segment have had steady hands going into earnings, with share prices flat over the last month. S&T Bancorp is down 2.5% during the same time and is heading into earnings with an average analyst price target of $41.40 (compared to the current share price of $40.20).

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at East West Bank and the best and worst performers in the regional banks industry.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 101 regional banks stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3%.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

East West Bank

As the largest independent bank in the U.S. focused on bridging financial services between America and Asia, East West Bancorp operates a commercial bank that provides personal and business banking services with a unique focus on facilitating U.S.-Asia cross-border transactions.

East West Bank reported revenues of $745.8 million, up 13.5% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

Interestingly, the stock is up 17.9% since reporting and currently trades at $116.47.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $231.8 million, up 38.3% year on year, outperforming analysts’ expectations by 6.9%. The business had a stunning quarter with a solid beat of analysts’ net interest income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $78.19.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.7 million, up 38.8% year on year, falling short of analysts’ expectations by 9.9%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net interest income estimates.

The Bancorp delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 9.4% since the results and currently trades at $69.96.

Read our full analysis of The Bancorp’s results here.

S&T Bancorp

Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions.

S&T Bancorp reported revenues of $103.6 million, up 6.8% year on year. This result surpassed analysts’ expectations by 0.6%. However, it was a mixed quarter as its performance in some other areas of the business was disappointing.

The stock is up 8% since reporting and currently trades at $38.55.

Read our full, actionable report on S&T Bancorp here, it’s free for active Edge members.

KeyCorp

Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states.

KeyCorp reported revenues of $1.90 billion, up 17.5% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ tangible book value per share estimates and a narrow beat of analysts’ net interest income estimates.

The stock is up 18.8% since reporting and currently trades at $21.06.

Read our full, actionable report on KeyCorp here, it’s free for active Edge members.