S&T Bancorp Inc (STBA) Announces Q3 2023 Earnings: Net Income of $33.5 Million
S&T Bancorp Inc (NASDAQ:STBA) reports Q3 2023 net income of $33.5 million, a decrease from $34.5 million in Q2 2023.
Return on average assets (ROA) of 1.42%, return on average equity (ROE) of 10.84%, and return on average tangible equity (ROTE) of 15.78%.
Total portfolio loans increased by $196.3 million, or 10.6% annualized, compared to June 30, 2023.
Nonperforming assets decreased $1.6 million to $16.4 million, or 0.22% of total loans plus other real estate owned.
On October 19, 2023, S&T Bancorp Inc (NASDAQ:STBA) announced its Q3 2023 earnings, reporting a net income of $33.5 million, or $0.87 per diluted share. This represents a slight decrease from the net income of $34.5 million, or $0.89 per diluted share, reported in Q2 2023. Despite the decrease, the company maintains strong return metrics and a solid net interest margin.
Financial Performance and Highlights
The company's return metrics remained solid with ROA of 1.42%, ROE of 10.84%, and ROTE of 15.78%. The pre-provision net revenue to average assets (PPNR) was 1.99%, and the net interest margin (NIM) remains strong at 4.09%. Total portfolio loans increased by $196.3 million, or 10.6% annualized, compared to June 30, 2023. Total deposits of $7.2 billion remained relatively unchanged compared to June 30, 2023.
Nonperforming assets decreased by $1.6 million to $16.4 million, or 0.22% of total loans plus other real estate owned. Net charge-offs of $3.7 million, or 0.20% of average loans (annualized), were reported, compared to net charge-offs of $11.0 million, or 0.60% of average loans (annualized), in the second quarter of 2023.
CEO Commentary
Our third quarter performance was strong with solid return metrics," said Chris McComish, chief executive officer. "While recognizing there are challenges across the industry, we are very proud of the core earnings growth we have had in this rising interest rate environment. Our net interest margin remains strong at 4.09%. Deposit balances stabilized during the quarter and the shift in the mix of our deposits slowed considerably compared to earlier in the year. We believe our team's efforts around our customer-focused initiatives are paying off in this competitive environment."
Financial Condition
As of September 30, 2023, S&T Bancorp Inc (NASDAQ:STBA) reported total assets of $9.5 billion, an increase from $9.3 billion at June 30, 2023. The consumer loan portfolio increased by $112.8 million, with growth in residential mortgages of $97.4 million. The commercial loan portfolio increased by $83.5 million, with growth in commercial real estate of $62.1 million and commercial construction of $25.4 million. Total deposits increased by $81.7 million compared to June 30, 2023.
The company continues to maintain a strong regulatory capital position with all capital ratios above the well-capitalized thresholds of federal bank regulatory agencies.
This article first appeared on GuruFocus.
