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S&T Bancorp (NASDAQ:STBA) Surprises With Q2 Sales

By: StockStory

July 24, 2025 at 07:43 AM EDT

STBA Cover Image

Regional banking company S&T Bancorp (NASDAQ: STBA) announced better-than-expected revenue in Q2 CY2025, with sales up 2.6% year on year to $100.1 million. Its GAAP profit of $0.83 per share was 3% above analysts’ consensus estimates.

Is now the time to buy S&T Bancorp? Find out by accessing our full research report, it’s free.

S&T Bancorp (STBA) Q2 CY2025 Highlights:

Net Interest Income: $86.57 million vs analyst estimates of $85.7 million (3.6% year-on-year growth, 1% beat)
Net Interest Margin: 3.9% vs analyst estimates of 3.8% (6.9 basis point beat)
Revenue: $100.1 million vs analyst estimates of $98.63 million (2.6% year-on-year growth, 1.5% beat)
Efficiency Ratio: 57.7% vs analyst estimates of 56.5% (1.3 percentage point miss)
EPS (GAAP): $0.83 vs analyst estimates of $0.81 (3% beat)
Market Capitalization: $1.48 billion

Company Overview

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

Sales Growth

From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.

Over the last five years, S&T Bancorp grew its revenue at a mediocre 3.4% compounded annual growth rate. This was below our standard for the bank sector and is a rough starting point for our analysis.

We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. S&T Bancorp’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3% annually. S&T Bancorp Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, S&T Bancorp reported modest year-on-year revenue growth of 2.6% but beat Wall Street’s estimates by 1.5%.

Net interest income made up 84.1% 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.

S&T Bancorp Quarterly Net Interest Income as % of Revenue

Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.

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Tangible Book Value Per Share (TBVPS)

Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.

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. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.

S&T Bancorp’s TBVPS grew at an impressive 7.8% annual clip over the last five years. TBVPS growth has also accelerated recently, growing by 13.1% annually over the last two years from $21.83 to $27.90 per share.

S&T Bancorp Quarterly Tangible Book Value per Share

Over the next 12 months, Consensus estimates call for S&T Bancorp’s TBVPS to grow by 6.7% to $29.76, mediocre growth rate.

Key Takeaways from S&T Bancorp’s Q2 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. On the other hand, its EPS was in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $38.62 immediately following the results.

Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it’s free.

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