Updated 3/26
S&T Bancorp, Inc. (NASDAQ: STBA) doesn’t often make the front page of financial media, and that’s probably why some income investors appreciate it. Tucked away in western Pennsylvania, this regional bank has been around for more than 100 years, steadily operating with a focus on community banking and conservative lending. For those looking for stable dividend income without the drama, S&T’s slow-and-steady style holds real appeal.
With a moderate size and a calm presence in the market, it’s the kind of company that prioritizes consistency over rapid growth. And for dividend-focused investors, that’s a feature—not a flaw.
Recent Events
The past year brought a few noteworthy shifts for STBA. As of the end of 2024, the company had a market cap just north of $1.4 billion. Revenues came in at $383.76 million, essentially flat compared to the year before. While the top line didn’t move much, earnings were under a bit more pressure, slipping about 10.7% year-over-year.
Despite the dip in profits, the bank’s margin profile remained strong. Net profit margins sat above 34%, and return on assets held at a solid 1.37%. That kind of performance is nothing to scoff at in today’s banking environment, especially for a regional player without the scale of national giants.
The share price has moved up roughly 17% over the last twelve months, a respectable climb. However, it’s still well below the 52-week high of $45.79, giving long-term investors a window of opportunity if they believe in the business model and dividend consistency.
Key Dividend Metrics
💰 Forward Dividend Yield: 3.61%
📈 5-Year Average Dividend Yield: 4.01%
🔁 Dividend Growth (Annualized): Roughly 1.5%
🛡️ Payout Ratio: 39%
📅 Last Dividend Paid: $0.34 per share on February 27, 2025
⏳ Ex-Dividend Date: February 13, 2025
🏛️ Dividend Streak: 27 consecutive years
📊 EPS (TTM): $3.41
💸 Forward Annual Dividend: $1.36
Dividend Overview
S&T isn’t trying to be flashy. The bank pays out $1.36 per share annually, which translates into a dividend yield of about 3.6% at recent share prices. That puts it above average when compared to most equities and comfortably within the sweet spot for many income-focused investors.
This is a stock built for reliability. The company hasn’t missed a dividend payment in 27 years, and even though the increases have been small, they’ve been steady. Investors who prize uninterrupted income over high growth tend to find comfort in names like this.
The 39% payout ratio is particularly comforting. It leaves breathing room in case earnings fluctuate or economic conditions tighten. S&T has shown it doesn’t stretch to maintain payouts—it pays what it can comfortably afford.
Dividend Growth and Safety
When it comes to dividend growth, S&T plays it conservatively. The increases have been modest, typically in the low single-digit range, but they’ve been dependable. For investors focused on income safety rather than income growth, this approach works well.
The dividend is well-covered by earnings. With $3.41 in EPS over the trailing twelve months and just $1.36 paid out, the bank has plenty of cushion to continue distributions—even if earnings soften.
That low payout ratio also offers flexibility. Management isn’t forced to tap reserves or borrow just to meet dividend obligations. In a market where dividend cuts are becoming more common, that’s a reassuring metric.
Chart Analysis
Current Market Behavior
Looking at the STBA chart through late March 2025, the stock is in a transitional zone. After a strong rally in the summer of 2024 that peaked near the $45 mark, the price gradually pulled back and started forming lower highs and lower lows. This shift in price action indicates the stock moved out of a clear markup phase and entered what looks like a late-stage distribution followed by early markdown.
The 50-day moving average, which had been trending above the 200-day moving average for most of 2024, has now crossed below it. That bearish crossover—often referred to as a death cross—confirms that momentum has shifted to the downside. Price has been hovering under both averages for the past couple of months, signaling a lack of bullish conviction.
Volume Clues
Volume tells an interesting story here. The summer rally was supported by increasing volume, which confirms accumulation and genuine demand. But as the price topped out and started its descent, volume became choppier and less reliable. A few sharp spikes in red volume bars during the selloffs point to distribution, where institutional holders likely unloaded shares.
Over the last couple of months, volume has dried up on green days and spiked on red days, reinforcing that the current phase is more about supply than demand.
Wyckoff Cycle Position
This chart appears to be in the markdown phase, specifically the early part of it. After a prolonged distribution range from late summer through early winter, the breakdown below key support levels brought in heavier selling. The recent inability to reclaim the 50-day moving average, despite multiple attempts, aligns with continued markdown behavior. There’s no sign yet of a selling climax or final capitulation, which would typically mark the start of a new accumulation phase.
The bounce in early February could be interpreted as an automatic rally after the initial markdown, but the failure to follow through and the rolling over of price action since then confirms weakness.
RSI Momentum
The relative strength index (RSI) dipped into oversold territory in the fall and has since tried to rebound. But it’s been stuck under the 60 level, suggesting momentum hasn’t fully returned. During uptrends, RSI tends to find support near 40 and rally above 70. STBA is nowhere near those zones right now. This muted RSI reading confirms that any recent upward price movement has been weak and likely corrective, not impulsive.
The Last Five Candles
Zooming in on the most recent five trading sessions, the candles are showing mixed signals. The price action is tight, hovering just under the 200-day moving average. Several of the candles have upper wicks, which indicates sellers are stepping in on intraday rallies. That shows hesitation and rejection of higher prices.
Volume during these sessions has been light to moderate, suggesting there’s no aggressive accumulation happening just yet. The market is testing support around the $37.50–$38 zone, but without strong follow-through from buyers, the setup looks indecisive at best.
Analyst Ratings
In recent months, S&T Bancorp (STBA) has been viewed with a steady hand by analysts, receiving mostly neutral outlooks. 🟡 The general consensus is a “Hold” rating, reflecting expectations that the stock will likely move in line with the broader market rather than significantly outperform it.
🎯 The average 12-month price target is around $42.25, which implies some upside from where the stock currently trades. Targets vary a bit, ranging from a more cautious $40.00 to a more optimistic $46.20. This spread suggests that while there’s some confidence in the bank’s fundamentals, analysts aren’t expecting fireworks in the near term.
📉 A few of the more reserved assessments are rooted in the recent softening of earnings. There’s been some concern around the slight year-over-year dip in net income and revenue, which signals pressure on the bank’s margins. The flat top-line growth, coupled with higher funding costs, appears to be a sticking point for some analysts.
📍 Another factor keeping sentiment grounded is S&T’s regional exposure. As a smaller bank with its footprint mostly in western and central Pennsylvania, it doesn’t have the geographic diversity of larger peers. Any economic slowdown in that region could have a disproportionate effect on earnings.
💸 On the flip side, analysts still point to the bank’s healthy dividend and strong capital position as reasons to remain patient. The consistency in dividend payments, combined with a conservative payout ratio, gives STBA a cushion even if earnings stay muted.
Overall, while no dramatic changes have come from the analyst community, the cautious tone reflects a wait-and-see attitude. There’s respect for S&T’s fundamentals, but not enough momentum just yet to warrant a more bullish stance.
Earnings Report Summary
A Softer Finish to the Year
S&T Bancorp wrapped up 2024 with net income of $33.1 million for the fourth quarter, or $0.86 per diluted share. That’s a touch higher than the prior quarter, but still down from $0.96 during the same time last year. For the full year, earnings came in at $3.41 per share, slipping from $3.74 in 2023. While not a dramatic drop, it does show the bank had to navigate a tougher environment this time around.
Net Interest Margins and Lending Activity
Net interest margin for the quarter came in at 3.77%, a slight dip from the previous quarter’s 3.82%. It’s not a huge move, but it does suggest some mild pressure on lending spreads. That said, S&T still saw some loan growth—about $53.9 million added to the portfolio, translating to an annualized growth rate of 2.79%. On the deposit side, things were solid. Total deposits grew by $128.3 million, with customer deposits contributing the bulk of that increase.
Credit Quality and Loan Losses
Credit performance showed some improvement. The bank recorded a negative provision for credit losses of $2.5 million, which is actually good news—it means fewer concerns about potential loan defaults. There was also a small net recovery of $0.1 million, a turnaround from $2.1 million in charge-offs the previous quarter. Nonperforming assets continued to edge lower, ending the quarter at just 0.36% of total loans.
Noninterest Items and Expenses
Noninterest income came in at $11.1 million for the quarter, a bit lower than the $11.9 million reported previously. That dip mostly came from a $2.6 million hit tied to repositioning securities into longer-term, higher-yielding assets. On the expense side, things stayed fairly steady. Total noninterest expenses were $55.4 million, with a slight drop in salaries and benefits helping to offset other rising costs.
Full-Year Trends and Dividends
For the full year, net interest income slipped by $14.6 million, landing at $334.8 million. Noninterest income also declined by $8.5 million to $49.1 million, again due to those repositioning losses. Operating expenses for the year were up about $8.6 million, driven mostly by higher payroll and benefits.
The board declared a quarterly dividend of $0.34 per share, payable in late February, which marked a 3% increase from last year’s payout. Total dividends for 2024 reached $1.33 per share, a modest step up from $1.29 the year before. The consistent raise reinforces the bank’s steady, income-oriented approach.
Financial Health and Stability
S&T’s balance sheet is in good shape. The bank reported $305 million in cash versus $368 million in total debt—very manageable, especially for a bank its size. Liquidity isn’t a concern here.
The return metrics are quietly strong. Return on equity came in at 9.86%, and return on assets at 1.37%. Those numbers might not jump off the page, but for a regional bank operating in a competitive lending environment, they reflect solid, consistent profitability.
Cash flow from operations totaled $173 million, more than enough to comfortably fund its dividend. And with no signs of strain in credit quality or asset risk, the bank seems well-positioned to maintain financial strength even through periods of uncertainty.
Valuation and Stock Performance
STBA currently trades at a price-to-earnings ratio of just over 11 on a trailing basis and a forward P/E closer to 14. While that forward multiple suggests analysts expect some earnings softening, the overall valuation remains reasonable, especially when factoring in the dividend.
The price-to-book ratio is right around 1.04. That’s a good sign—investors aren’t paying a massive premium over the bank’s net assets. It also hints that the market views S&T as a stable, well-managed institution with tangible value.
Over the past year, the stock has risen around 17%, outpacing the broader market. Still, with the price well below its 52-week high, there may be room for future appreciation. Short interest is low, and institutional ownership is high, indicating broad investor confidence.
Risks and Considerations
No stock comes without a few warning signs. For S&T, one of the bigger challenges is geographic concentration. Being a regional bank means a large portion of its loan portfolio is tied to specific areas in Pennsylvania. Any regional economic stress—particularly in real estate or employment—could have an outsized effect.
Revenue growth has also been sluggish. With top-line performance essentially flat and loan demand softening amid higher rates, it’s hard to see where near-term growth will come from. That’s not necessarily a dealbreaker for income-focused investors, but it is something to watch.
There’s also the issue of margin compression. Net interest margins can tighten in volatile rate environments, and with the Fed navigating a careful balance between inflation control and economic support, rate pressure could hit banks like STBA on both sides—raising funding costs and slowing loan growth.
Lastly, while dividend growth exists, it’s minimal. Investors seeking a growing income stream may find S&T’s approach too conservative for their needs.
Final Thoughts
S&T Bancorp doesn’t aim to impress with aggressive expansion or rapid earnings growth. Instead, it wins investor confidence through predictability and discipline. The stock offers a yield that’s higher than average, backed by a consistent 27-year payout history and a conservative balance sheet.
There’s a quiet confidence in how this bank operates. While its recent earnings decline and flat revenue growth are worth monitoring, none of the fundamentals point to immediate trouble—especially not for the dividend.
For investors looking to add a dependable income stream to their portfolios, S&T stands out as a company that does the basics well. It pays what it can afford, grows at a steady clip, and keeps things simple.
It may not be flashy, but for the right kind of investor, it’s exactly what they’re looking for.