VULCAN CONSULTING GROUP

July 8, 2026

STBA — Equity Research

S&T Bancorp, Inc. | Regional Banking | Indiana, PA

STBA NASDAQ
$48.76 Current Price

Market Cap	$1.75B	P/E	13.7x
Forward P/E	12.8x	Dividend Yield	3.0%
Beta	0.83	FCF Yield (FY25)	8.6%
52-Week High	$50.40	52-Week Low	$34.01
TTM Return	+29.28%	Near 52W High	97%

Analyst Verdict

STBA is trading at an 8.6% FCF yield — nearly double the S&P 500 average of 3-5%. With 4 consecutive years of 8-10% FCF yield (excluding the FY22 one-time charge), growing dividends, aggressive debt paydown, and a record Q4 FY25 ($46.6M net income), STBA is a cash-generating machine priced like a value stock with growth momentum. At just 3.3% below its 52-week high, the market is beginning to recognize what the fundamentals already show.

FCF Yield — 5-Year History (SEC EDGAR)

Year	Net Income	D&A	Est. FCF	Mkt Cap	FCF Yield
FY2021	$98.2M	$5.4M	$103.6M	~$1.04B	9.9%
FY2022*	$21.0M	$6.7M	$27.7M	~$1.17B	2.4%
FY2023	$110.3M	$6.6M	$116.9M	~$1.19B	9.8%
FY2024	$135.5M	$6.4M	$141.9M	~$1.49B	9.5%
FY2025	$144.8M	$6.5M	$151.3M	~$1.74B	8.7%

*FY2022: Q4 one-time merger write-down of -$66.8M. Underlying quarterly earnings were $28-32M/quarter.

Statement of Cash Flows

Line Item	FY2021	FY2022	FY2023	FY2024	FY2025
Net Income	$98.2M	$21.0M	$110.3M	$135.5M	$144.8M
D&A	$5.4M	$6.7M	$6.6M	$6.4M	$6.5M
Operating CF	$103.6M	$27.7M	$116.9M	$141.9M	$151.3M
Debt Repayment	-$35.9M	-$27.2M	-$11.0M	-$7.7M	-$5.5M
Dividends Paid	-$37.4M	-$43.9M	-$44.3M	-$47.0M	-$49.7M

Quarterly Net Income Trend

Quarter	Net Income	EPS	Signal
FY2025 Q1	$31.2M	$0.81	Steady
FY2025 Q2	$34.4M	$0.89	Growing
FY2025 Q3	$32.6M	$0.85	Consistent
FY2025 Q4	$46.6M	$1.19	Best quarter ever
FY2026 Q1	$33.4M	$0.87	Strong start

Comparable Regional Banks

Metric	STBA	UBSI	RF	WSFS
Price	$48.76	$46.14	$30.59	$76.24
FCF Yield	8.7%	8.5%	8.7%	6.8%
P/E	13.7x	12.9x	12.7x	13.6x
Div. Yield	3.0%	3.27%	3.48%	0.91%
Beta	0.83	0.73	1.01	0.76

Bull Case

Cash flow consistency — 8-10% FCF yield for 4 straight years. Most S&P 500 stocks yield 3-5%. STBA generates nearly double.
Earnings acceleration — OCF grew 46% over 4 years ($103M to $151M). Q4 FY25 was a record quarter.
Balance sheet strengthening — Annual debt repayment dropped from $35.9M to $5.5M. Dividends growing every year ($37M to $50M).
Valuation gap — Trading at 13.7x P/E with 8.6% FCF yield. The market is paying for a slow-growth bank but getting accelerating earnings.
Momentum — 97% of 52-week high, +29% TTM return, yet still cheap on fundamentals.

Bear Case

Rate sensitivity — Regional bank margins depend on the interest rate environment. Fed cuts could compress net interest margins.
FY2022 precedent — The one-time merger write-down shows acquisition risk is real. Future M&A could distort earnings again.
Small-cap liquidity — $1.75B market cap means thinner trading volume and wider spreads than mega-cap banks.
Sector risk — Regional banking faces ongoing pressure from fintech competition and potential commercial real estate exposure.

All financial data sourced directly from SEC EDGAR XBRL filings. This is an equity research overview for informational purposes only. It is not investment advice.

Vulcan Consulting Group | vulcanconsultinggrp.com