ABC Bank (ABC) has reported a notable enhancement in its net interest margin, which rose by 4 basis points to 3.81% during the first quarter of 2025. This is an improvement from the 3.77% recorded in the final quarter of 2024. The rise in net interest margin indicates the bank's increased efficiency in generating income from its interest-bearing activities.
The bank attributes this positive performance to robust growth in both customer deposits and loans, alongside maintaining excellent asset quality. This comprehensive growth strategy is part of ABC Bank's broader focus on supporting customer needs while pursuing key business drivers for sustained expansion.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for S&T Bancorp Inc (STBA, Financial) is $42.00 with a high estimate of $44.00 and a low estimate of $40.00. The average target implies an upside of 16.09% from the current price of $36.18. More detailed estimate data can be found on the S&T Bancorp Inc (STBA) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, S&T Bancorp Inc's (STBA, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for S&T Bancorp Inc (STBA, Financial) in one year is $34.77, suggesting a downside of 3.9% from the current price of $36.18. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the S&T Bancorp Inc (STBA) Summary page.
STBA Key Business Developments
Release Date: January 30, 2025
- Earnings Per Share (EPS): $3.41 for the full year 2024; $0.86 for Q4 2024.
- Net Income: $33 million for Q4 2024.
- Return on Tangible Common Equity (ROTCE): 13.25% for Q4 2024.
- Return on Assets (ROA): 1.37% for Q4 2024.
- Pre-Provision Net Revenue (PPNR): 1.72% for Q4 2024.
- Net Interest Margin: 3.77% for Q4 2024, down slightly from Q3.
- Loan Growth: 2.8% annualized for Q4 2024.
- Customer Deposit Growth: Over $75 million, more than 4% annualized for Q4 2024.
- Allowance for Credit Losses: Declined by almost $3 million, from 1.36% to 1.31% of total loans in Q4 2024.
- Nonperforming Assets (NPAs): Declined by $4 million, at 36 basis points of total loans in Q4 2024.
- Net Interest Income: Decreased by $1.2 million compared to Q3 2024.
- Non-Interest Income: Declined by about $8.8 million in Q4 2024.
- Non-Interest Expense: Expected to increase by approximately 3% in 2025 compared to 2024.
- Tangible Common Equity (TCE) Ratio: Decreased slightly by 4 basis points in Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- S&T Bancorp Inc (STBA, Financial) reported strong earnings of $3.41 per share for the full year 2024, maintaining excellent returns and record levels of capital.
- The company experienced significant customer deposit growth, with more than $75 million in new deposits, marking the sixth consecutive quarter of meaningful deposit growth.
- Asset quality improved with a decline in nonperforming assets and a reduction in criticized and classified loans by 31% in 2024.
- Loan growth was robust, particularly in commercial loans, with Q4 being the strongest loan production quarter in three years.
- The company has expanded its business and commercial banking teams by 15% in the past year, contributing to a doubling of loan growth pipelines year-over-year.
Negative Points
- Net interest income showed a slight contraction compared to Q3, and the net interest margin declined slightly to 3.77%.
- Non-interest income declined by about $8.8 million in the fourth quarter, partly due to a $2.6 million loss from securities repositioning.
- Higher payoffs in Q4 pressured loan growth, despite strong new loan production.
- The allowance for credit losses declined, but the company anticipates provisioning in 2025 to support growth, which could impact future earnings.
- Expenses are expected to increase by approximately 3% in 2025 as the company continues to invest in production capacity and customer experience.
