S&T Bancorp (STBA) AI Stock Analysis

• Market Cap: $1.47B
• Dividend Yield: 3.38%
• Average Volume (3M): 133.23K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.70
• Revenue Growth: -1.48%
• EPS Growth: -1.58%
• Country: US
• Employees: 1,206
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.89
• Shares Outstanding: 36,548,634
• 10 Day Avg. Volume: 137,390
• 30 Day Avg. Volume: 133,233
• PEG Ratio: 7.76
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 2.67
• P/FCF Ratio: 11.71
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 2.96
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 10.02
• 1Y Price Target: $45.50
• Price Target Upside: 13.18% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 3.62
• Revenue Forecast (FY): $426.69M

• Rating: 75 Outperform
• Price Target: $47.00 ▲(16.92% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

STBA scores well on fundamentals and valuation, supported by conservative leverage, solid profitability, and an attractive dividend with a moderate P/E. The score is tempered by normalization in growth/margins and uneven cash flow trends, plus mixed technicals and some credit-quality risk noted in the latest earnings update (higher charge-offs, NPAs uptick, and lower ACL).

Positive Factors

Conservative balance sheet

S&T's low leverage and improving debt-to-equity provide durable financial flexibility: supports lending through cycles, enables continued buybacks/dividends, and reduces insolvency risk. Conservatism in capital allows strategic optionality for M&A or capital returns without stressing reserves.

Stable profitability and margins

Sustained profitability, a near-4% NIM and steady net income underpin recurring cash generation. Even as growth normalizes, durable margins support dividend sustainability and internal capital funding, enabling predictable shareholder returns and reinvestment into the franchise.

Technology/AI investments driving efficiency

Targeted AI adoption reduces operating costs and strengthens risk controls—structural benefits that improve efficiency ratios and underwriting consistency. These gains are lasting: better fraud prevention and automated underwriting support scalable growth and lower cost of compliance over time.

Negative Factors

Rising charge-offs and reserve decline

Higher quarterly charge-offs and a falling allowance indicate heightened credit risk and reduced loss-absorbing cushions. If asset stress re‑emerges, provisions could rise materially, pressuring earnings, reducing capital headroom and constraining loan growth or shareholder distributions.

Uneven free cash flow conversion

Variability in free cash flow weakens the reliability of internal funding for buybacks, dividends and reinvestment. Persistent inconsistency complicates capital planning and may force more conservative capital buffers or reduce opportunistic shareholder returns under stress.

Deposit cost pressure and pipeline burn

Sticky CD costs and competitive deposit pricing compress NIM upside and raise funding costs structurally. Combined with elevated payoffs/refinancings that shrink the loan pipeline, this limits sustainable loan growth and operating leverage, reducing future net interest income momentum.

S&T Bancorp Business Overview & Revenue Model

Company Description

S&T Bancorp, Inc. operates as the bank holding company for S&T Bank that provides retail and commercial banking products and services. The company operates through six segments: Commercial Real Estate, Commercial and Industrial, Business Banking, Commercial Construction, Consumer Real Estate, and Other Consumer. The company accepts time and demand deposits; and offers commercial and consumer loans, cash management services, and brokerage and trust services, as well as acts as guardian and custodian of employee benefits. It also manages private investment accounts for individuals and institutions. In addition, the company distributes life insurance and long-term disability income insurance products, as well as offers title insurance agency services to commercial customers; and acts as a reinsurer of credit life, accident, and health insurance policies. As of December 31, 2021, it operated 73 banking branches and 5 loan production offices located in Western Pennsylvania, Eastern Pennsylvania, Northeast Ohio, Central Ohio, and Upstate New York. S&T Bancorp, Inc. was founded in 1902 and is headquartered in Indiana, Pennsylvania.

How the Company Makes Money

S&T Bancorp generates revenue primarily through net interest income and non-interest income. Net interest income is earned from the interest on loans and investments, which constitutes the bulk of the company's earnings. The company provides various loans, including commercial, consumer, and mortgage loans, generating interest income as borrowers repay these loans over time. Additionally, S&T Bancorp earns significant revenue from fees associated with deposit accounts, transaction services, and asset management, which contribute to non-interest income. The company also benefits from partnerships with local businesses and organizations that help create a stable customer base, as well as strategic investments in technology to enhance service delivery and operational efficiency, further solidifying its revenue streams.

S&T Bancorp Financial Statement Overview

Summary

Fundamentals are solid: profitability remains healthy and leverage is conservative (improved debt-to-equity), but revenue growth and margins have cooled from 2022–2023 peaks and free cash flow momentum has been uneven, tempering the score.

Income Statement

Revenue has grown strongly over the last several years (notably 2022–2023), and profitability remains solid, with net margins holding in the low-to-mid 20% range in 2024–2025. However, margins have stepped down from the peak levels seen in 2022–2023, and growth cooled sharply in 2024–2025 versus the prior surge—suggesting a more normalized earnings profile and less near-term operating leverage.

Balance Sheet

The balance sheet shows conservative leverage in the last two years, with debt-to-equity around 0.18 in 2024–2025 and improving materially versus 2022–2023. Returns on equity are steady near ~9%–10% recently (below the 2022–2023 peak), indicating stable but not exceptional capital efficiency. Overall, financial risk appears well-managed, with the main trade-off being a moderation in return generation versus prior highs.

Cash Flow

Cash generation is generally supportive: free cash flow closely tracks net income across years (roughly in-line in 2021–2025). That said, free cash flow growth has been uneven, including a decline in 2023 and a sharper drop in 2025, pointing to variability in year-to-year cash conversion and less consistent momentum despite solid reported profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	568.51M	564.96M	535.52M	399.01M	353.96M
Gross Profit	394.70M	383.76M	389.14M	365.68M	324.59M
EBITDA	175.05M	175.68M	186.32M	177.96M	147.15M
Net Income	134.23M	131.26M	144.78M	135.52M	110.34M
Balance Sheet
Total Assets	9.87B	9.66B	9.55B	9.11B	9.49B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.23B	1.20B	1.21B	1.83B
Total Debt	310.95M	250.31M	503.63M	439.19M	161.31M
Total Liabilities	8.41B	8.28B	8.27B	7.93B	8.28B
Stockholders Equity	1.46B	1.38B	1.28B	1.18B	1.21B
Cash Flow
Free Cash Flow	129.75M	170.37M	165.53M	236.57M	211.24M
Operating Cash Flow	133.62M	173.37M	171.75M	240.43M	214.85M
Investing Cash Flow	-314.80M	-118.29M	-444.22M	-398.68M	13.24M
Financing Cash Flow	99.80M	-43.87M	296.07M	-554.05M	464.46M

S&T Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 40.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STBA, the sentiment is Negative. The current price of 40.2 is below the 20-day moving average (MA) of 42.43, below the 50-day MA of 41.78, and above the 200-day MA of 38.62, indicating a neutral trend. The MACD of -0.62 indicates Positive momentum. The RSI at 37.20 is Neutral, neither overbought nor oversold. The STOCH value of 29.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STBA.

S&T Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STBA	75 Outperform	$1.47B	11.32	9.25%	3.38%	-1.48%	-1.58%
TCBK	70 Outperform	$1.52B	12.64	9.20%	2.83%	0.93%	5.65%
NBHC	68 Neutral	$1.75B	22.62	8.05%	3.07%	-2.46%	-1.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GABC	66 Neutral	$1.51B	12.80	10.75%	2.89%	30.45%	3.13%
MBIN	58 Neutral	$1.91B	5.76	9.89%	1.19%	-2.45%	-28.20%
TFIN	50 Neutral	$1.32B	58.33	1.11%	―	2.04%	-64.17%

S&T Bancorp Corporate Events

S&T Bancorp Updates Investor Presentation on Strategic Direction

S&T Bancorp has released an updated investor presentation outlining its financial profile and strategic direction, which management plans to use in ongoing meetings with investors and analysts and has made available on the company’s website. The materials underscore S&T’s focus on sustaining profitable growth through a more balanced, deposit-led strategy, stronger treasury management offerings and digital engagement, while maintaining disciplined asset quality, active capital management and performance targets tied to peer-based metrics such as core profitability, credit quality and shareholder returns.

The presentation also highlights the bank’s emphasis on enterprise risk management, talent engagement and the development of a robust deposit franchise, with goals of keeping loan-to-deposit and funding costs below peer medians. By pursuing deeper penetration in commercial and industrial lending within its existing footprint and selectively expanding commercial real estate relationships, S&T is seeking to enhance operating leverage and valuation, reinforcing its competitive positioning among regional banking peers and signaling continued attention to long-term, sustainable financial performance for stakeholders.

The most recent analyst rating on (STBA) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on S&T Bancorp stock, see the STBA Stock Forecast page.

S&T Bancorp Grants Temporary Waiver to Director Age Limit

Effective January 28, 2026, S&T Bancorp, Inc.’s board of directors granted a limited waiver of its age-72 mandatory retirement rule for Lead Independent Director Jeffrey D. Grube, allowing him to remain eligible for nomination through the 2028 annual shareholders meeting and to potentially serve on the board through the 2029 annual shareholders meeting, subject to annual board nomination and shareholder election. The board emphasized that this exception, which Mr. Grube did not vote on, is temporary and does not alter the retirement provisions of the bylaws or governance guidelines on a permanent basis, reflecting a targeted move to preserve leadership continuity that S&T believes is in the best interests of the company and its shareholders, while confirming that Mr. Grube does not qualify as a grandfathered director under the existing age policy.

The most recent analyst rating on (STBA) stock is a Hold with a $45.00 price target. To see the full list of analyst forecasts on S&T Bancorp stock, see the STBA Stock Forecast page.

S&T Bancorp Raises Quarterly Dividend, Boosting Shareholder Returns

On January 28, 2026, S&T Bancorp, Inc.’s board of directors approved a cash dividend of $0.36 per share, marking a 5.88 percent increase from the $0.34 per share dividend declared in the same period a year earlier. Based on the January 27, 2026 closing share price of $42.11, the new dividend represents an annualized yield of 3.42 percent, and it is scheduled to be paid on February 26, 2026 to shareholders of record as of February 12, 2026, underscoring the bank’s continued capital return to investors.

The most recent analyst rating on (STBA) stock is a Buy with a $46.00 price target. To see the full list of analyst forecasts on S&T Bancorp stock, see the STBA Stock Forecast page.

S&T Bancorp Announces Strong 2025 Results, New Buyback

On January 22, 2026, S&T Bancorp reported fourth-quarter 2025 net income of $34.0 million, or $0.89 per diluted share, slightly below the prior quarter but above the year-earlier period, and full-year 2025 net income of $134.2 million, or $3.49 per diluted share, up from 2024. The bank delivered higher net interest income and an expanding net interest margin for both the quarter and the year, supported by loan growth of 4.52% annualized in the fourth quarter and 4.25% year over year, as well as steady deposit growth and lower funding costs in a declining rate environment. Asset quality metrics showed some pressure, with nonperforming assets rising to $55.6 million and net charge-offs increasing in both the quarter and full year, though management characterized NPAs as manageable and the allowance for credit losses remained robust at 1.15% of total portfolio loans. S&T also continued returning capital to shareholders, repurchasing 948,270 shares for $36.2 million in the fourth quarter, and on January 22, 2026, the board authorized a new $100 million share buyback program effective January 26, 2026, replacing the existing program and underscoring confidence in the company’s earnings power and capital position.

The most recent analyst rating on (STBA) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on S&T Bancorp stock, see the STBA Stock Forecast page.